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HomeMy WebLinkAboutMARINA PARK LEASES VOL. II111111111111111111111111111111 *NEW FILE* Marina Park Leases Vol 11 Leases for City Prope y MARINA PARK City Staff Responsible: 1770 West Balboa Blvd. Annual Rent: Newport Beach CA 92663 Factor: Mr. Joe Albano Manager Years Until CPI Phone: (949) 723-0206 Fax: Other Bill Meecham Contact Info: Benedetti Management Company 1176 Main St. Suite 100 Irvine, CA 92714 Assistant City Manager's Office 17 Payment Due Dates: Monthly Lease Start Date: 9130/85 Lease Exp. Date: Term of Lease: 3115/02 Currently under extension Lease Options: No Negotiations Underway Comments: *Rents Vary; Adj. On October 1, 2001 *Has Hold Harmless Clause Insurance N/A Requirements Current Copy Required on File ❑ Certificate Current? ❑ Certificate Exp. Date: Printed on 7/11/01 rd MARINAPARK to ' 1q/a 1770 WEST BALBOA BOULEVARD 1tul� NEWPORT BEACH, CALIFORNIA 92663 • caor COQ p st RENTAL AGREEMENT This Rental agreement ("Agreement") is entered into this day of 2003, by and between the CITY OF NEWPORT BEACH, a municipal corporation and Charter City (City or Owner) and (Tenant), and is made with reference to the recital and acknowledgments, the materiality and existence of which is stipulated and agreed by the Parties: - A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 151h Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Property). B. The City Council actively solicited proposals for non-residential uses at Marinapark and, as of February 2002, has deemed a non-residential use,of Marinapark the most appropriate land use for the property. The City is currently investigating an alternative use of the property and a decision to change the use of the property may be made at any time. Notification of any decision to change the use of the property will be given in accordance with the• Mobilehome Residency Law, Section 798.56 (g) and other applicable law.. C. California State Lands Commission staff has asserted that a portion of the Pf,operty consists of tidelands. City and Tenant have, in the past, claimed that all, or substantially all, of the Property leased for mobilehome residency purposes is uplands owned by City, and City and Tenant have discussed various bases to support that claim. D. The State Lands Commission staff has asserted that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, City and Tenant may dispute that claim. E. The terms and conditions of this Agreement are consistent, with the provisions of the Mobilehome Residency Law (Section 798 et. seq. of the California Civil Code). F. You acknowledge having received, read and understood a copy of: The attached Mobilehome Residency Law and Park Rules and Regulations each of which is incorporated by this reference. G. The terms of residency shall be solely governed by law and by the terms of this agreement. No salesperson, broker, financial institution or any person not specifically employed by owner has the authority or right to make statements on behalf of City. The resident managers have no authority to modify this agreement. This is the exclusive agreement between City and Tenant. H. A new Tenant warrants that Tenant has read, reviewed and executed a written disclosure statement provided by the management at least three (3) days prior to the execution of this rental agreement. The monthly rent may be adjusted at any time during the term of this agreement (whether the term selected is month -to -month, twelve months, or a term between one to twelve months), in the amount specified by the management, on not less than ninety (90) days advance written notice, as per Civil Code section 798.30. J. EQUAL HOUSING OPPORTUNITY: WE DO BUSINESS IN ACCORDANCE WITH THE STATE AND FEDERAL FAIR HOUSING LAWS. IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, HANDICAP OR DISABILITY, FAMILIAL STATUS SOURCE OF INCOME, NATIONAL ORIGIN OR ANCESTRY OR FOR ARBITRARY REASONS UNDER STATE LAW. NOW, THEREFORE, the Parties do hereby mutually agree as follows: 1. DESCRIPTION OF PREMISES: The City hereby rents to the Tenant, and Tenant accepts the rental of space number as shown on Exhibit "A" (Premises) in Marinapark, 1770 West Balboa Boulevard, Newport Beach, California 92663. 2. TERM: (select one option as provided) o The tenancy created under this Agreement shall be on a month -to -month basis and shall commence on ❑ The tenancy created under this Agreement shall be for a period of twelve (12) months and shall commence on unless sooner terminated in accordance with the terms of this Agreement; ❑ The tenancy created under this Agreement shall be for a period of months (from one month to twelve months) and shall commence on , unless sooner terminated in accordance with the terms of this Agreement. ctq Rental agreements of varying duration including a 12 month or less and month -to -month have been offered. It is acknowledged that this agreement is chosen from such alternatives. The 12 month or less agreement is and remains a continuing option for the tenant upon expiration of the rental agreement under which the tenant had been residing until the said expiration of its term. 3. RENT: A. The monthly rent is $ per month. Tenant shall pay as rent to Owner without deduction or offset (without waiving Civil Code Section 1942) and on the first day of each month: (1) the beginning rent • of $ per month (as it may be adjusted as specified herein); (2) all utility charges billed to Tenants by Owner during each month as described herein (please note: utility rates for utilities billed to Tenant by Owner are set by the Public Utilities Commission and other governmental agencies. Therefore, charges for these utilities may be increased at any time in accordance with the rates established by these entities and no advance notice of increases in such rates will be given to Tenant by Owner); and, (3) guest charges (with applicable exceptions pursuant to the Mobilehome Residency Law), of $ per day for any guest who stays more than twenty consecutive days or more than thirty days in a calendar year. The monthly rent 'may be adjusted at any time during the term of this agreement (whether the 'term selected is month -to -month, twelve months, or a term between one to twelve months), in the amount specified by the management; on not less than ninety (90) days advance written notice. B. Owner may charge a reasonable fee for services relating to the maintenance of the land and premises upon which the Mobilehome is situated in the event the Tenants fail to maintain such land or premises in accordance with the Rules And Regulations of the Park after written notification to the Tenants and the failure of the Tenants to comply within fourteen (14) days. Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner, unless by order within the final judgment of a court of competent jurisdiction. Such charges shall be billed as further rent or as a permissible fee at owner's option, and added to the monthly rent billing payable on the first of the month following the date of completion of the work performed by the management. C. Tenants shall pay when due all real property taxes attributable to Tenant's mobilehome and all improvements made by Tenant to Tenant's mobilehome space and all municipal, county, stale, federal and other taxes, fees, assessments and levies (except Owner's income taxes and franchise taxes) levied upon the Premises, or Tenant or Owner, in connection with the use and occupancy of the Premises by Tenant. 3 0 • D. All rent payable hereunder shall be paid in advance on the first day of each month together with all other charges set forth on the monthly billing statement, in full without deduction, offset, reduction, discount, claim of collateral debt or other obligation owing. Specifically, Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner by reason of any independent, collateral or other legal obligation or dispute. The entitlement to rent shall not be deemed cross -collateralized with or against any other legal obligation or dispute for which Owner is claimed to be responsible to Tenants. Payment shall be in the form of personal check, money order, or certified funds. Owner may however demand all prospective payments in cash, on not less than at least ten (10) days advance written notice. If the rent is not timely paid, demand notices to pay or quit may be served as soon as legally permitted. Rent and all other charges will be late if not paid in full by 5:00 p.m. on the 5th day of each month. Tenants must pay a late charge whenever rent or other charges are paid more than five (5) days after they are due in the amount of Thirty -Five dollars ($35.00) and a handling charge whenever a check is returned for any reason in "the amount of Twenty-five dollars ($25.00). Payment will be made at the Park Office. E. Monies received for rent or other charges may be applied to the earliest outstanding sums ("first in, first out") and to utilities first at Owner's discretion, despite payer's instructions or endorsements purporting to restrict application of payment to a specific month or time period, or purporting to pay -in -full, satisfy or extinguish the amount or arrearage due or portion thereof. Partial payments of monthly rents or other charges may be rejected and constitute a breach of this agreement. However, tender of a part payment shall not be construed as an accord and satisfaction or release of any indebtedness if accepted, despite Tenant's purported instructions or restrictive endorsements to the contrary. Acceptance of a part payment is not a waiver of the balance billed or due. The period of time prior to the imposition of the late charge is not a grace period or option to pay late. 4. UTILITIES: A. Owner shall provide and separately bill to Tenant the following utilities: natural gas at the beginning rate of $22.00. Water usage is included in monthly rent. B. City shall not provide electricity or telephone service. Tenant shall make arrangements directly with the utilities furnishing these services and pay such utilities directly for them. Tenant shall contract with and pay directly for all other utilities it may require. The charge for gas shall be paid when rent is due, and is in addition to the obligation to pay rent. In the event Tenant fails to pay the charge for water or gas service within ten (10) days after the amount is due, Tenant shall pay to City a late charge of thirty-five dollars ($35.00). In the event City provides both master meter and submeter service of utilities to Tenant, the cost of the charges for each billing period shall be separately stated and shall • 0 contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place. The charge to Tenant for gas service shall be the amount of the charges paid by Tenant as of June 1, 2002 ($22.00 per month). The charges for gas service may be increased or decreased on or after the first day of October. Owner further reserves the right to charge for any other separately -billed or submetered utilities or for services actually rendered under Civil Code §798.32 (without reduction of rent or other charges) or Civil Code §798.41 (with reduction in rent equal to cost of initial separate billing amounts). Such amounts shall also be deemed to constitute further monthly rent. - C. Owner shall not be liable for any loss or injury, and Tenant shall not be entitled to any abatement or reduction of rent by reason of Owner's failure to furnish any of the foregoing utilities when such failure is caused by accident, breakage, repairs, strikes, acts of third parties, labor disputes or by any other cause, similar or dissimilar beyond the reasonable control of Owner. (Please Note: The provisions of the paragraph below entitled "Indemnification" apply to this paragraph.) D. Tenant shall not connect, except through existing electrical or natural gas outlets or water pipes on the Premises any apparatus or device for the purpose of using electric current, natural gas, water or other utility. E. PLEASE READ CAREFULLY! FROM TIME TO TIME, THE SERVING PUBLIC UTILITY MAY SUFFER OR CAUSE POWER OUTAGES TO THE PREMISES. POWER OUTAGES ARE CAUSED BY MANY FACTORS: Storms, wind, heat, ice and high demand are the most common causes of widespread power outages; high power demand during heat waves and other times of unusually high demand may overburden electric cables, transformers, and other electrical equipment of Southern California Edison which then melt and fail. F. CAUTION: INTERMITTENT POWER INTERRUPTIONS ARE FOLLOWED BY RESTORATION OF ELECTRICITY WHICH MAY CAUSE SURGES IN ELECTRICAL POWER. POWER SURGES OFTEN AFFECT UNPROTECTED CONSUMER HOUSEHOLD APPLIANCES SUCH AS ELECTRONIC EQUIPMENT (COMPUTERS, STEREOS, RADIOS, ETC.). THE OWNER IS NOT RESPONSIBLE FOR THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES WHICH ARE CAUSED BY SOUTHERN CALIFORNIA EDISON. TENANT AGREES THAT OWNER IS FULLY AND UNCONDITIONALLY RELEASED AND DISCHARGED FROM ANY AND ALL LIABILITY WHICH ARISES AS A RESULT OF THE ACTS AND OMISSION OF THE UTILITY COMPANY. IT IS THE RESPONSIBILITY OF THE TENANT, EXCLUSIVELY, TO EXERCISE PRUDENT CARE FOR PROPERTY WHICH MAY BE AFFECTED BY DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE 5 G. H., PREMISES. ACCORDINGLY, TENANT HAS THE RESPONSIBILITY TO TAKE THE FOLLOWING PRECAUTIONS: 1. Tenant has the responsibility, always, TO USE SURGE PROTECTORS FOR THE PROTECTION OF TENANT'S PROPERTY, especially for computer equipment, stereo equipment, radios and other electrical appliances, devices and products which may be affected by disruptions, outages, surges, or other irregularities in the provision of electrical service. Unplug heat -producing items such as irons or portable heaters to prevent a fire when power is restored. 2. Turn off and unplug all appliances and other electrical equipment, except for a single light bulb, which will be the signal your power has been restored. This helps ensure against circuit 'overloading, which could delay restoration of service. 3. In the event of an outage, do not use candles for lighting during an outage, since they create a fire hazard. Use flashlights or battery - powered lanterns instead. 4. Check the neighborhood to see if others have their power. If they do, the problem may be a "tripped" circuit breaker. IT IS RECOMMENDED THAT TENANT OBTAIN A HOMEOWNER'S INSURANCE POLICY TO COVER DAMAGE, LOSS AND LIABILITY ASSOCIATED WITH THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES AND OTHER RISKS. TENANTS ARE RESPONSIBLE FOR MAKING SURE THAT THEIR MOBILEHOMES AND ALL APPLIANCES AND EQUIPMENT ARE COMPATIBLE WITH THE ELECTRIC SERVICE NOW AVAILABLE, AND OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY IF THE AVAILABLE ELECTRICAL SUPPLY IS INCOMPATIBLE OR INSUFFICIENT. TENANTS ARE RESPONSIBLE TO MATCH THE RATING FOR THE MOBILEHOME TO THE SERVICE PROVIDED AT THE PEDESTAL AND NOT EXCEED IT. TENANT PROMISES THAT THE MOBILEHOME SHALL NOT EXCEED SUCH RATING. TENANT RELEASES OWNER FROM FAILURE TO COMPLY WITH THE AMPERAGE RATING OR EXCEEDING AVAILABLE SERVICE. THIS RELEASE IS NOT INTENDED TO RELEASE OWNER FROM OWNER'S WILLFUL MISCONDUCT OR ACTIVE NEGLIGENCE, BUT ONLY TO THE EXTENT ALLOWED BY LAW. TENANT SHALL FORBEAR FROM CONSUMING'MORE AMPERAGE THAN THE EXISTING RATING FOR THE HOMESITE, TO AVOID DAMAGE TO OWNER'S PROPERTY AND TO THE PROPERTY OF OTHERS.. G I. IF THE MOBILEHOME, APPLIANCES AND EQUIPMENT IN THE MOBILEHOME ARE NOT COMPATIBLE WITH THE ELECTRIC SERVICE AND CAPACITY NOW AVAILABLE OR EXCEEDS AVAILABLE SUPPLY AT THE PEDESTAL, TENANT SHALL "DE -AMP" (REDUCE THE RATING FOR) THE MOBILEHOME OR DISCONTINUE EXCESS DEMAND TO ENSURE AGAINST ANY OVERLOADING OR CAUSING. ANY DISRUPTION IN SERVICE. OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY TO TENANT IF THE AVAILABLE ELECTRICAL SUPPLY IS INSUFFICIENT OR INCOMPATIBLE. TENANT IS .EXPRESSLY LIABLE FOR SERVICE DISRUPTIONS CAUSED BY EXCESSIVE DEMANDS ON THE ELECTRICAL SYSTEM WHICH SHALL FURTHER BE DEEMED A DEFAULT AND BREACH OF THE TENANTS' OBLIGATIONS UNDER THIS AGREEMENT. J. With respect to the provision of any services or facilities (including utilities) to Tenant, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to maintain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond owner's reasonable control, will excuse performance of these obligations for a time period equal to the delay. Tenants will remain responsible, without abatement or reduction, for the rent, utilities, and other charges to be paid per the terms of this Agreement. Owner will use reasonable efforts to reinstate or repair any services or facilities, including utilities, which have been interrupted as set forth hereinabove. If Tenants feel that Owner is not using reasonable efforts to reinstate such services or facilities, Tenants shall mediate the matter pursuant to the agreement or paragraph contained herein entitled "mediation and reference of disputes if and only if Tenants have consented to that provision or desire to do so by mutual agreement (at the time the dispute arises) which provides for an alternate dispute resolution procedure of such dispute. Owner will not be liable under any circumstances for loss of or injury to property, however occurring through or in connection with or incidental to the failure to furnish any services of facilities (including utilities). K. RESIDENT COVENANTS NOT TO CONSUME MORE AMPERAGE THAN THE EXISTING RATING FOR THE SPACE, SO AS TO AVOID DAMAGE TO OUR PROPERTY AND TO THE PROPERTY OF OTHERS. We will provide utilities and or services as specified on page one of this agreement. Any separate charges for natural gas, electricity and water as applicable will be on a submetered basis (if not separately charged at the inception of this agreement, owner reserves the right and power to do so on proper notice, with or without electing to reduce rent as per CC §798.41). Civil Code Sections 798.41 or 798.32 allow for further separated billing of utilities with corresponding reduction of rents and such option is reserved. 5. CIVIL CODE NOTICE RE: SERVICES AND IMPROVEMENTS: 7 • Owner is responsible for providing and maintaining the existing services and existing physical improvements located in the common facilities in good working order and condition and you agree that these responsibilities of the Park are as defined and limited by this Agreement. The services include the following: (i) Park Management Services and those items set forth on page one; (ii) Maintenance of the physical improvements of the park, including the streets, walkways, and, common areas. Management shall have a reasonable period of time, with respect to the physical improvements in the common facilities, to repair the sudden or unforeseeable breakdown or deterioration of these iniprovements and bring the improvements into good working order and condition after management knows or should have known of the breakdown or deterioration. The period of time to do so shall not exceed: as soon as possible where health and safety is affected, and thirty days except where exigent circumstances justify a delay; or, otherwise as specified by law. Such repairs or other appropriate action shall be accomplished as soon as possible in the event of any condition which may relate to health and safety. With respect to providing any services or facilities, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond the reasonable control of the Park, will excuse the Park's performance of these obligations for a time period equal to the delay. You will remain responsible, without abatement or reduction, for the rent, utilities, and other charges. A. Tenant agrees to notify management immediately of any breakdown, interruption, deterioration, or failure of any physical improvement, utility, amenity, facility or service so a response to promptly to fulfill maintenance responsibilities can be given. Management depends on notice to avoid and mitigate loss, damage, injury and other liability by Tenant's prompt notice when applicable. Tenant's good faith cooperation is important to enabling management to timely respond. B. Management's reasonable and conscientious efforts to maintain the Park, despite prudent effort, will probably not be perfect. From time to time, repairs and improvements may be needed, and Tenant may be inconvenienced. Management hopes Tenant will please cooperate and be patient. Management will reasonably endeavor to avoid material disruption and interference with quiet enjoyment, and to provide advance notice of substantial interruptions or interference which are planned or scheduled. Tenant agrees that a reasonable job in maintaining the Park fairly describes Tenant's expectation of 8 • management's duty to maintain the park. Management shall provide physical improvements and services in the Park. However, services, facilities, amenities, landscaping and other improvements in the common areas may change based upon conservation interests and concerns; such changes may include drought resistant landscaping, and additions, alterations or deletions of services and facilities without reduction, discount of other offset from monthly rents. Such changes will not alter other commitments under this Agreement. Tenant will have the opportunity to consult if desired. An average and habitable residential environment is provided, but not a perfect one as with any residential . neighborhood. Physical Improvements include existing common areas, office, streets, any recreational facilities, buildings and interior improvements, landscaping, meeting rooms, pools, related improvements and equipment. , 6. USE OF PREMISES: A. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. Tenant agrees not to do anything that will constitute waste, nuisance, or unreasonable annoyance. Tenant agrees to do nothing to cause damage to the space or park. Tenant agrees not to permit any act or maintain or permit to be maintained any condition on your space or mobilehome which may cause an increase in the rate of insurance City pays or increase costs of maintenance and repair. No activity shallbe permitted which requires the issuance of a business license or permit by any governmental agency, or which is inconsistent with community zoning and conditional use permits, which would increase the risk of harm to the management or to any other ,person or property, increase noise, dust, vibration, odors or fumes, smoke, or any other condition offensive to the senses or• which causes reasonable complaint, breaches the covenant of quiet enjoyment or reduces property values; which would increase foot or vehicular traffic, results in deliveries and delivery trucks, require storage of any thing outside the mobilehome, require additional employees or other persons on the space, or affect parking. Permitted occupants are: (i) Tenant; (ii) An additional person if Tenant is living alone; (iii) Family members and sub -lessees entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term "short term guest" shall mean any person who does not stay with Tenant for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may not occupy the Premises with the prior written consent of City. 9 0 • B. Tenant agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 7. CONSIDERATION: City reserves the right to take the position that the past rents have been below market and constitute consideration to be applied against relocation costs upon closure of the Park. Tenants reserve the right to dispute City's position. 8. RELEVANT STATUTES AND RULES: The Mobilehome Residency Law requires this Agreement to contain, among other things, the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Agreement by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 9. SALE OR ASSIGNMENT: Subject to the terms of this Section, Tenant may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Tenant under the 'Mobilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain on the Premises, or if Tenant proposes to assign Tenant's interest in this Lease to any person or persons who is (are) to reside on the Premises, Tenant and/or the proposed transferee must do the following: A. Tenant must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval, the transferee has executed a new rental agreement provided by City, and the transferee has expressly agreed to be bound thereto. C. Tenant agrees that occupancy of the Premises shall be limited as provided in this Agreement and Tenant agrees not to sublease or otherwise transfer any partial interest in this Agreement. D. The requirements for any mobilehome proposed to be installed on the space is as follows: Management must first approve a mobilehome before it may be installed in the park. No mobilehome which in excess of twelve feet in height may be installed in the park. The proposed mobilehome must fit upon the space in the position specified by management. Management reserves the right to require the largest possible mobilehome commercially available to be sited upon the space. Established set backs must be honored, and may not be changed. • Roof material must be non -glare composition or wood shake shingles for the mobilehome, awnings and any storage or other structures on the space. All installations and improvements must be approved by management before work is commenced to avoid damage to underground utilities. Management must further approve a written plan, to be submitted for approval as required by law, showing the proposed location with measurements and dimensions evidencing conformance'to all setback requirements required by law including Title 25 of the Code of Administrative regulations and local ordinances. A tie down system in compliance with §1336.3 of Paragraph (a) of Title 25 is required. A vapor retarding ground cover of six (6) mil polyethylene or equivalent over the ground, under the home is required. Under floor areas shall be ventilated 1 sq. ft. for each 150 sq. ft. of under floor area. Air conditioners, compressors and necessary accessories will be considered and approval of same shall be at management's sole discretion. No changes shall be made to the grade of the lot that would cause any runoff to adjacent space or common areas. Lot must meet HCD requirements for drainage. Only mobile homes manufactured in 1976 or later are permitted. No new cabanas may be constructed. Eaves are permitted only if applicable set back requirements can be met. Hitches must be removed from home and stored under the mobilehome. Porch, steps and ramps must be built to Title 25 Requirements. No aluminum porches are permitted, and shall not encroach set back requirements or required parking space. Any required handrail, porch, or step railing shall be wood, painted to match home/trim color. No upgrading or tampering with the electrical /gas service shall be permitted even by a licensed contractor. No mobilehome is permitted which is rated at higher amperage than the pedestal. Additional requirements are set forth in the rules and regulations. E. Notwithstanding any other provision in this Agreement, Tenant shall have the right to assign its interest in this Agreement to a spouse, son and/or daughter provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Agreement. F. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Agreement, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit "B"). 10. SUBLEASING: A. The Premises shall constitute Tenant's residence, whether primary or secondary. Tenant agrees not to sublease or rent the mobilehome or otherwise transfer any interest in this Lease, except to the extent that the right to sublet or transfer is specifically provided by this Agreement. B. Management shall permit a tenant to rent his or her mobilehome that serves as the homeowner's residence or sublet his or her space under the circumstances described in and in compliance with the provisions of AB 1410 effective January 1, 2003. Only one mobilehome may be subleased by the tenant though the tenant may own or control one or more mobilehomes or homesites in the Park.. Any sub -lease created in compliance with AB 1410 shall not create a landlord/tenant relationship as between City and sublessee. It is specifically agreed and understood that Sublessee cannot become a resident by attempting or purporting to pay City such monies. Receipt, retention, acceptance or possession of any monies from the sublessee shall only be on behalf of the Tenant. As between City and sublessee there is no privity of estate or contract. Tenant hereby further agrees to defend and indemnify City, at Tenant's sole expense, from any claims, liabilities, or actions brought by sublessee against the Park or for any action brought against the City by any person arising out of conduct related to Sublessee's conduct within the Park. 11. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS: Tenant shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Tenants also agree that all landscaping on the Premises shall be limited to three feet (3') ins height, to preserve views and open space. City may charge a reasonable fe'e for services relating to the maintenance of the Premises in the event Tenant fails to maintain the Premises in accordance with the provisions of this Agreement and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Tenant and Tenant's failure to comply within .fourteen (14) days from the date of written notice. The written notice shall contain all information required by the Mobilehome Residency Law. 12. PHYSICAL IMPROVEMENTS AND SERVICES: Tenant shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, non -restricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. 13. CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL IMPROVEMENTS AND SERVICES: 12 City retains the right to amend or modify the Marinapark Rules and Regulations, the Terms of this Agreement, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the Terms of this Agreement, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment without corresponding reduction or adjustment in rent. 14. RIGHT OF ENTRY: is. Tenant, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the premises for the purpose of inspecting, improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Subject to the obligation of City to exercise ordinary care, any damage, loss or injury to Tenant's home, property of Tenant or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Tenant, and City shall not be responsible for reimbursing any cost or expense incurred by Tenant as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. The rights and duties set forth in this paragraph are intended to implement and shall be exercised consistent with the Mobilehome Residency Law. Tlie California Department of Justice, county sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the California Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through this telephone service. 16. HOLD HARMLESS: A. Tenant covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, Tenant's use 13 and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Tenant, or Tenant's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Tenant, or Tenant's agents, employees, licensees and invitees and damage to their property or Tenant's property, except for any damage or injury of any kind arising out of the active negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. This section is intended to provide City with a release from liability to the fullest extent allowed by law and not exceeding the rights of the City to do so either under Civil Code section 1953 ("[a] Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive any of the following rights shall be void as contrary to public policy: ... [5] His right to have the landlord exercise a duty of care to prevent personal injury or personal property damage where that duty is imposed by law") or section 1668 ("All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law"). City does not admit the applicability of section 1953 to a mobilehome space. B. Tenant, as a material part of the consideration 'under this Agreement, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the active negligence or willful misconduct of City's representatives, officers, agents or employees. Tenant agrees to indemnify and hold City, and its representatives, officers, agents and employees, harmless from and on actcount of any and all damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Tenant, and Tenant's family or guests. C. ANY CLAIM OR SUIT BETWEEN THE PARTIES FOR DAMAGES FOR PERSONAL OR BODILY INJURY OR PROPERTY DAMAGE AND OTHER APPLICABLE CLAIMS MUST BE COMMENCED IN ACCORDANCE WITH THE PROCEDURES FOR MAKING CLAIMS AGAINST GOVERNMENTAL ENTITIES PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA GOVERNMENT CODE. D. The value of the mobilehome may decline. Since a substantial portion of the present value of Tenant's mobilehome or coach is attributable to the rent charged by this Lease, the value of the premises and the proximity of the premises to lower Newport Bay, you should investigate before purchasing. City's only obligation is to provide reasonable cost of relocation on closure of the park. Please investigate thoroughly before executing this agreement. 14 0 17. TERMINATION: A. Tenant may terminate this Agreement, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the mobilehome terminate their tenancy within that period and remove the mobilehome and all other improvements from the park B. City may terminate this Agreement for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. 18. ATTORNEYS' FEES: Should either City or Tenant be. required to employ counsel to enforce the terms, conditions and covenants of this .Agreement, the prevailing Party shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein pursuant to the Mobilehome Residency Law. 19. REMEDIES CUMULATIVE: The rights, powers, elections and remedies of the Parties contained in this Agreement shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of either Party's right to exercise any other. 20. NO WAIVER: A. No delay or omission of either Party to exercise any right or power arising from any omission, neglect or default of the other Party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Agreement. B. Acceptance of rent shall not reinstate or create a tenancy. Conditional acceptance of rent pending approval of tenancy shall not be deemed to create a tenancy or waive any requirements applicable to tenancy, purchaser application or approval requirements or assignment or transfer requirements. Acceptance of rent after service of a notice to terminate tenancy as specified in Civil Code §798.57 shall not waive, affect or prejudice the notice. Nor shall routine service of other notices, Management communications, or other actions or omissions of the Management waive, prejudice, or affect the right to 15 • 0 terminate tenancy, process a purchaser application and approve a tenant for tenancy, or otherwise affect the rights of Management. Possession of rent by the resident manager shall not be acceptance until actually approved by the park owner; accordingly, the receipt by or the tender of payment to the resident park manager shall be conditional and for custody purposes only until approved and accepted by the park owner. C. Owner may exercise any right under the terms of this agreement, or the Rules and Regulations as amended or modified, or any other right of the management under applicable law, and do so on or at any time subsequent to the date such right became effective hereunder, and do so retroactively to the date the right initially became effective or enforceable, by and upon demand for performance, including payment of any rent adjustments or other monies from or for the date such right first accrued through to and including the date -of the demand and thereafter. Any delay, forbearance, whether intentional or inadvertent, in enforcing any right of the management for which subsequent demand is made shall not be construed as a waiver, estoppel, release or acquittal thereof, accord and satisfaction thereof, settlement in whole or part thereof; shall not constitute [aches in respect thereto; and, shall not render any such right unenforceable or be a defense against enforcement of such rights from the time such right could first be exercised and thereafter. 21. COMPLIANCE WITH LAWS. A. Tenant covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City or any other governmental body or agency having lawful jurisdiction over the Premises and/or the Property. Tenants agree to abide and conform with all the terms and conditions of this Agreement, the Rules and Regulations, all rules, regulations, terms and provisions contained in any document referred to in this Agreement, and said rules, regulations terms, and provisions as may from time to time be amended modified or otherwise changed by Owner as permitted by the terms of this Agreement. B. Any violation of the Rules and Regulations shall be deemed a public nuisance. Tenants agree that a breach of this Agreement or any of the Rules and Regulations cannot reasonably or adequately be compensated in damages in an action of law, and therefore, Owner shall be entitled to injunctive relief including but not limited to restraining Tenants (or family members, guests or other invitees) from continuing to breach any such rules or regulations term or condition or to allow a condition violative of a rule or regulation term or condition to exist or continue to exist without proving irreparable harm or lack of adequate legal'remedy. 22. MOBILEHOME RESIDENCY LAW 1 ZONING AND USE PERMIT INFORMATION: 16 0 Pursuant to Civil Code section 798:27 ("(a) The management shall give written notice to all homeowners and prospective homeowners concerning the following matters: (1) the nature of the zoning or use permit under which the mobilehome park operates. If the mobilehome park is operating pursuant to a permit subject to a renewal or expiration date, the relevant information and dates shall be included in the notice.... "), Tenant is hereby notified as follows: A. Tenant acknowledges having received and read a copy of the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Marinapark Rules and Regulations (Exhibit "B"). B. The Property is currently zoned "Planned Community." There are no conditional use permits or other permits required to operate the Property as a mobilehome park. City owns the Property, but its use may be limited to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. 23. ENTIRE AGREEMENT: This Agreement and the documents referred to herein constitute the entire agreement between Tenant and Owner pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral. Paragraph titles are for identification and reference only and are not part of this Agreement and shall not be used to interpret this Agreement Each term and provision of this agreement to be performed by the Tenant or which is a duty of the Tenant shall be deemed to be both a condition and a covenant. Ayditionally, a breach of any each such term and provision shall also be d emed to constitute a rule and regulation for purposes of Civil Code section 79`8.56 and may constitute grounds for the termination of tenancy as a violation of a rule and regulation. 24. NOTICES: All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 17 0 With a copy to: City Clerk's Office City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have furnished to Tenant; and To Tenant: By delivering a copy to the Tenant personally; or Tenant be absent from the mobilehome, by leaving a copy -with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobile home and also sending a copy through the mail addressed to Tenant. Since a substantial portion of the present value of Lessee's mobilehome or coach Is attributable to the value of the premises and the and the proximity of the premises to lower Newport Bay, B. Following notice by City of any amendment, all other provisions of the Lease shall remain in full force and effect in their original form. 25. TIME OF ESSENCE: Time is of the essence in this Agreement and each and every provision hereof. 26, EMINENT DOMAIN: If the entire Park, or a portion thereof so that, in City's sole opinion, the balance remaining is not suitable for a mobilehome park, is taken under the power of eminent domain, or is sold to any authority having the power of eminent domain, either under threat of condemnation or while condemnation proceedings are pending, then this Agreement shall automatically terminate on proper notice as of the date the condemning authority takes possession, precondemns, notices its intent to condemn or files a condemnation action or other action which relates thereto. 27. INSURANCE: Owner does not carry public liability or property damage insurance to compensate Tenants, Residents, guests or any other person from any loss, damage or injury except those resulting from situations where Owner would be legally liable for such loss, damage or injury. If Tenants desire such or similar is insurance coverage, it should be obtained by Tenants, insuring against loss and casualty by fire, earthquake, flooding, theft, other liability and casualty which relates to the mobilehome, other improvements and contents to full insurable value, personal liability and such other insurance as is necessary and appropriate. Tenants are advised to obtain a homeowner's policy in accordance with the guidelines and requirements specified by a lender, and if no lender, then in such sums and for such coverage as would be so required if so financed. 28. PARTIAL INVALIDITY: Certain terms and provisions of this Agreement and other documents referred to in this Agreement refer to restate or summarize provisions of the Mobilehome Residency Law and .other applicable laws. Iri every instance it is intended that these references, restatements and summaries will accurately reflect the law and correctly set forth Tenants' and Owner's rights liabilities duties and obligations to one another and to other persons. The same is true of all of the other provisions of this Agreement and the other documents used by the Park. If any of the provisions of this Agreement or the other documents used by the Park fail in any way to meet the above criteria then it is unintentional and all such provisions shall be deemed to be automatically revised to correctly reflect the Owner's and Tenants' rights, liabilities, duties and obligations under the provisions of the Mobilehome Residency Law and all other applicable laws. Tenants agree to promptly notify Owner in writing of any instance where Tenants believe that any of the provisions of this Agreement or the other documents used by the Park fail to meet the above criteria. If any term or provision of this Agreement or any document referred to in this Agreement or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the remainder of this Agreement or the other document or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Agreement or the other document shall be valid and be enforced to the fullest extent permitted by law. 29. ENTIRE AGREEMENT: A. The resident manager, other personnel, mobilehome dealers, the sales person and seller from whom the mobilehome was purchased by Tenants and other persons are not authorized to make any representations or agreements with Tenants respecting the Community unless those agreements and representations are contained in this Agreement and the other documents and' posted signs referred to in it. Therefore, Tenants agree that this Agreement and the other documents and posted signs referred to in it are the entire agreement between Tenants and Owner regarding the subjects covered by this Agreement, other documents and signs. This Agreement, the rules and 19 regulations and the purchase agreement with Owner constitute the exclusive statement of the agreement and supersedes all prior and contemporaneous agreements, representations and understandings. B. Each party has relied on his own examination of this Agreement and counsel of his own advisers, and the warranties, representations and covenants in the Agreement itself. Failure or refusal of either party to inspect the premises or improvement, to read the Agreement or other documents or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention or claim that might have been based on such reading, inspection or advice. Additionally, in any interpretation of this Agreement it shall be deemed that this Agreement and its exhibits were written by both parties. C. It is further agreed by and between the "parties that the legal relationship that exists pursuant to this Agreement is a rental agreement, and that there are not other legal rights or relationships inferred. Tenants warrant and agree that they have no other rights, title or interest in the property upon which the Park is located or in the above described space other than that which is specifically set forth in this document. 30. DRAINAGE AND GRADING: A. The existing drainage pattern and grading of the space may not be changed without Management's consent. Tenant is responsible for maintaining the space so that water does not accumulate or stand under the mobilehome or on the Space. Water on the space is required to drain off the space in a fashion as to avoid runoff onto another mobilehome space. Tenant shall ensure the skirting attached to the mobilehome is not extended into the grade which would cause moisture or water to accumulate under the mobilehome. All watering ''S Fstems shall be installed, maintained and adjusted as necessary to avoid water run-off and standing water on the premises. Any berms on the space shall be installed and maintained to avoid the accumulation of water on the space or under the mobilehome. Any masonry skirting must contain sufficient openings as to prevent accumulation of water on the space or under the mobilehome. B. Homeowner warrants to that the mobilehome and areas under the mobilehome and homesite are free of and from mold. Homeowner is also responsible for mold cleanup. The mobilehome should be inspected by a competent home inspection contractor periodically. It is imperative to treat and remove all molds as if potentially harmful. Among the conditions to be checked should be presence of any mold in or about the mobilehome. The following are sources of indoor moisture that may cause problems: flooding, backed -up sewers, leaky roofs, humidifiers, mud or ice dams, damp crawl spaces, constant plumbing leaks, house plants -watering can generate large amounts of moisture, steam from cooking, shower/bath steam and leaks, wet clothes on indoor drying lines, 20 0 clothes dryers vented indoors, combustion appliances (e.g. stoves) not exhausted to the outdoors. Homeowner is responsible for avoiding any such condjtions and for remediation if same should occur. 31. NO THIRD -PARTY RIGHTS: Tenant is not a third -party beneficiary of any other agreement between Owner and anyone. The terms and provisions may differ between rental agreements and rules and regulations in force in the park, and no one may rely on the enforcement of any other's rental agreement or rules and regulations. There are no third party beneficiaries to this agreement. 32. NO RECORDING: No recording of this Agreement on any memorandum of this Agreement may be made without the prior written consent of Owner, which consent may be withheld in Owner's sole discretion. 33. LOT LINES: "Space" includes the area as defined by the perimeter of the mobilehome and its horizontal projections of its accessory structures. This understanding is based on the public ownership of the property on which the expectations of occupation which Tenant may use and enjoy. Therefore, Tenant may not rely on any markers to define the area of use and enjoyment to be expected due to the rights of the public entitled to entry within the park. 34. ALTERATIONS AND ADDITIONS: i Tenant agrees not to make any alterations, improvements, additions or utility installations to, on or about the homesite or mobilehome, nor install, remove or change any existing improvements, or modify the drainage or landscaping nor make any contract for such work without Owner's prior written consent and approval. Tenant is responsible for all conditions under the mobilehome including grading, compaction, subsidence, drainage, moisture, and ventilation. In giving or withholding consent to any such work, Owner may, at its option, consider and base consent or refusal of consent entirely upon aesthetic considerations and the compatibility of such changes to the Community. If Tenant fails to obtain prior written consent and approval, all such alterations, improvements, additions or utility installations shall be promptly removed at Tenant's sole expense, upon Owner request. 35. OPPORTUNITY TO REMEDY: If, at any time, Tenant believes owner has not fulfilled any legal obligations, Tenant agrees to immediately give owner written notice specifying what is 2.1 believed owner has failed to do and indicating what Tenant believes owner must do in order to fulfill these obligations. This notice shall be as detailed as possible so that owner may fully understand Tenant's concerns. Tenant agrees that owner will have at least ninety (90) days, or such longer period as is reasonably necessary, after receipt of Tenant's notice to remedy the problem(s) Tenant has identified. If Tenant fails to promptly give owner this written notice as soon as Tenant is aware of any problem(s), or Tenant fails to give owner a reasonable opportunity to remedy the problem(s), owner will have no liability to Tenant for any expense, cost, damage or injury which Tenant may sustain as a result of the problem(s). If owner fails to remedy the problem(s) within a reasonable time after receipt of written notice, the problem(s) will be subject to mediation if such an agreement has been reached between the Parties. 36. ENVIRONMENTAL PROTECTION: A. Proper "hazardous substances" and waste disposal is required of all Tenants. Typical hazardous substances include automobile, boat and motorcycle batteries, household batteries, cleaning fluids and solvents, gasoline, paint and other thinners, oils, brake fluids, transmission fluids, radiator fluids and coolants and petroleum products. No Tenants may keep or store, in any place including within or about the mobilehome, homesite, storage shed or elsewhere in the Community, any hazardous substances in excess of the quantities required for typical single family household use. Additionally, Tenants may not cause any environmental hazard, including any exposure to, contact with, spill or deposit of any hazardous substance or waste. Tenants are prohibited from violating any law relating to environmental protection, hazardous substances or waste. This includes, but is not limited to, for example, changing or discarding auto batteries, oil, brake and radiator fluids, automatic transmission fluid, air conditioning gases, or grease in any motor vehicle or machine. Tenants may not cause or allow hazardous substances or waste to be disposed of anywhere in the Community, including, but not limited to, trash cans, trash bins, the sewage disposal system, or any other trash or disposal area in the Community. Such substances must be physically removed from the Community and disposed of elsewhere in compliance with law. In the event of any spill or deposit of hazardous substances in the Community, Tenants are required by law to immediately notify management. Management reserves the right to inspect the homesite for hazardous substances. B. In addition to other remedies allowed by law, Tenants will indemnify and hold the Owner harmless for any such environmentally hazardous act or omission prohibited by this rule or law, including any compensatory damages, statutory damages, punitive damages, expense and attorney's fees and costs sustained by the Community. Tenants will also be required to reimburse the Community for any actual attorney's fees, litigation expenses, and costs incurred in defending any action against the Community as a result of any environmentally hazardous act or omission of Tenants, Residents, Guests, Contractors and 22 • invitees. For purposes of this rule, "hazardous substances" includes without limitation: (1) Those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in federal law including C.E.R.C.L.A., R.C.R.A., T.S.C.A., H.M.T.A., or under any other Environmental Law; (II) Those substances listed in the United States Department of Transportation (D.O.T.) Table [49 C.F.R. 172.101], or by the Environmental Protection Agency (E.P.A.), or any successor agency, as hazardous substances [40 C.F.R. Part 302]; (III) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (IV) Any material, waste, or substance that is: (V) a petroleum or refined petroleum product, (i) asbestos, (ii) polychlorinated biphenyl, (iii) designated as a hazardous substance pursuant to 33 U.S.C. § 1321 or listed pursuant to 33 U.S.C. § 1317, (VI) a flammable explosive, or (VII) a radioactive material. 37. COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute but one and the same instrument. 38. NON -RESPONSIBILITY OF PARK: Owner is not responsible to inspect and approve any work done by Tenant or for Tenant by others, including, but not limited to, the installation of the mobilehome, driveway, walkways, fences or any other equipment or improvements of any type. To the extent that Owner may inspect or approve something, it is for Owner's own purpose only and Tenant is not entitled to rely on, that inspection or approval to ensure that the item has been installed or constructed correctly or that the work has otherwise been done as required. Instead, Tenant is responsible for all required inspections and approvals and Tenant agrees to indemnify and hold Owner harmless from any work which is improperly done. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day and year first above written. Tenant By: IN CITY OF NEWPORT BEACH a municipal corporation. 23 CITY OF NEWPORT BEACH a municipal corporation. Homer Bludau, CA Manager APT D AS TO FORM: Ro ' -L�—L%uson, Assistant City Attorney MARINAPARK 1770 WEST BALBOA BOULEVARD NEWPORT BEACH, CALIFORNIA 92663 RENTAL AGREEMENT This Rental agreement ("Agreement') is entered into this day of 2003, by and between the CITY OF NEWPORT BEACH, a municipal , corporation and Charter City (City or Owner) and (Tenant), and is made with reference to the recital and acknowledgments, the materiality and existence of which is stipulated and agreed by the Parties: A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15th Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Property). B. The City Council actively solicited proposals for non-residential uses at Marinapark and, as of February 2002, has deemed a non-residential use of Marinapark the most appropriate land use for the property. The City is currently investigating an alternative use of the property and a decision to change the use of the property may be made at any time. Notification of any decision to change the use of the property will be given in accordance with the Mobilehome Residency Law, Section 798.56 (g) and other applicable law.. C. California State Lands Commission staff has asserted that a portion of the Property consists of tidelands. City and Tenant have, in the past, claimed that all or substantially all, of the Property leased for mobilehome residency purposes is uplands owned by City, and City and Tenant have discussed various bases to support that claim. D. The State Lands Commission staff has asserted that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, City and Tenant may dispute that claim. E. The terms and conditions of this Agreement are consistent, with the provisions of the Mobilehome Residency Law (Section 798 et. seq. of the California Civil Code). F. You acknowledge having received, read and understood a copy of: The attached Mobilehome Residency Law and Park Rules and Regulations each of which is incorporated by this reference. 1 i • 0 G. The terms of residency shall be solely governed by law and by the terms of this agreement. No salesperson, broker, financial institution or any person not specifically employed by owner has the authority or right to make statements on behalf of City. The resident managers have no authority to modify this agreement. This is the exclusive agreement between City and Tenant. H. A new Tenant warrants that Tenant has read, reviewed and executed a written disclosure statement provided by the management at least three (3) days prior to the execution of this rental agreement. EQUAL HOUSING OPPORTUNITY: WE DO BUSINESS IN ACCORDANCE WITH THE STATE AND FEDERAL FAIR HOUSING LAWS. IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, HANDICAP OR DISABILITY, FAMILIAL STATUS SOURCE OF INCOME, NATIONAL ORIGIN OR ANCESTRY OR FOR ARBITRARY REASONS UNDER STATE LAW. NOW, THEREFORE, the Parties do hereby mutually agree as follows: 1. DESCRIPTION OF PREMISES: The City hereby rents to the Tenant, and Tenant accepts the rental of space number as shown on Exhibit "A" (Premises) in Marinapark, 1770 West Balboa Boulevard, Newport Beach, California 92663. 2. TERM: (select one option as provided) ❑ The tenancy created under this Agreement shall be on a month -to -month basis and shall commence on January 14, 2003. ❑ The tenancy created under this Agreement shall be for a period of twelve (12) months and shall commence on January 14, 2003, unless sooner terminated in accordance with the terms of this Agreement; ❑ The tenancy created under this Agreement shall be for a period of months (from one month to twelve months) and shall commence on January 14, 2003, unless sooner terminated in accordance with the terms of this Agreement. Rental agreements of varying duration including a 12 month or less and month -to -month have been offered. It is acknowledged that this agreement is chosen from such alternatives. The 12 month or less agreement is and remains a continuing option for the tenant upon expiration of the rental agreement under which the tenant had been 2 residing until the said expiration of its term. 3. RENT: A. The monthly rent is $ per month. Tenant shall pay as rent to Owner without deduction or offset (without waiving Civil Code Section 1942) and on the first day of each month: (1) the monthly rent (as it may be adjusted as specified herein); (2) all utility charges billed to Tenants by Owner during each month as described herein (please note: utility rates for utilities billed to Tenant by Owner are set by the Public Utilities Commission and other governmental agencies. Therefore, charges for these utilities may be increased at any time in accordance with the rates established by these entities and no advance notice of increases in such rates will be given to Tenant by Owner); and, (3) guest charges (with applicable exceptions pursuant to the Mobilehome Residency Law), of $ per day for any guest who stays more than twenty consecutive days or more than thirty days in a calendar year. B. Owner may charge a reasonable fee for services relating to the maintenance of the land and premises upon which the Mobilehome is situated in the event the Tenants fail to maintain such land or premises in accordance with the Rules And Regulations of the Park after written notification to the Tenants and the failure of the Tenants to comply within fourteen (14) days. Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner, unless by order within the final judgment of a court of competent jurisdiction. Such charges shall be billed as further rent or as a permissible fee at owner's option, and added to the monthly rent billing payable on the first of the month following the date of completion of the work performed by the management. C. Tenants shall pay when due all real property taxes attributable to Tenant's mobilehome and all improvements made by Tenant to Tenant's mobilehome space and all municipal, county, stale, federal and other taxes, fees, assessments and levies (except Owner's income taxes and franchise taxes) levied upon the Premises, or Tenant or Owner, in connection with the use and occupancy of the Premises by Tenant. D. All rent payable hereunder shall be paid in advance on the first day of each month together with all other charges set forth on the monthly billing statement, in full without deduction, offset, reduction, discount, claim of collateral debt or other obligation owing. Specifically, Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner by reason of any independent, collateral or other legal obligation or dispute. The entitlement to rent shall not be deemed cross -collateralized with or against any other legal obligation or dispute for which Owner is claimed to be responsible to 3 Tenants. Payment shall be in the form of personal check, money order, or certified funds. Owner may however demand all prospective payments in cash, on not less than at least ten (10) days advance written notice. If the rent is not timely paid, demand notices to pay or quit may be served as soon as legally permitted. Rent and all other charges will be late if not paid in full by 5:00 p.m. on the 5th day of each month. Tenants must pay a late charge whenever rent or other charges are paid more than five (5) days after they are due in the amount of Thirty -Five dollars ($35.00) and a handling charge whenever a check is returned for any reason in the amount of Twenty-five dollars ($25.00). Payment will be made at the Park Office. E. Monies received for rent or other charges may be applied to the earliest outstanding sums ("first in, first out") and to utilities first at Owner's discretion, despite payer's instructions or endorsements purporting to restrict application of payment to a specific month or time period, or purporting to pay -in -full, satisfy or extinguish the amount or arrearage due or portion thereof. Partial payments of monthly rents or other charges may be rejected and constitute a breach of this agreement. However, tender of a part payment shall not be construed as an accord and satisfaction or release of any indebtedness if accepted, despite Tenant's purported instructions or restrictive endorsements to the contrary. Acceptance of a part payment is not a waiver of the balance billed or due. The period of time prior to the imposition of the late charge is not a grace period or option to pay late. 4. UTILITIES: A. Owner shall provide and separately bill to Tenant the following utilities: natural gas at the beginning rate of $22.00. Water usage is included in monthly rent. B. City shall not provide electricity or telephone service. Tenant shall make arrangements directly with the utilities furnishing these services and pay such utilities directly for them. Tenant shall contract with and pay directly for all other utilities it may require. The charge for gas shall be paid when rent is due, and is in addition to the obligation to pay rent. In the event Tenant fails to pay the charge for water or gas service within ten (10) days after the amount is due, Tenant shall pay to City a late charge of thirty-five dollars ($35.00). In the event City provides both master meter and submeter service of utilities to Tenant, the cost of the charges for each billing period shall be separately stated and shall contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place. The charge to Tenant for gas service shall be the amount of the charges paid by Tenant as of June 1, 2002 ($22.00 per month). The charges for gas service may be increased or decreased on or after the first day of October. Owner further reserves the right to charge for any other separately -billed or submetered utilities or for services actually rendered under Civil Code §798.32 rd (without reduction of rent or other charges) or Civil Code §798.41 (with reduction in rent equal to cost of initial separate billing amounts). Such amounts shall also be deemed to constitute further monthly rent. C. Owner shall not be liable for any loss or injury, and Tenant shall not be entitled to any abatement or reduction of rent by reason of Owner's failure to furnish any of the foregoing utilities when such failure is caused by accident, breakage, repairs, strikes, acts of third parties, labor disputes or by any other cause, similar or dissimilar beyond the reasonable control of Owner. (Please Note: The provisions of the paragraph below entitled "Indemnification" apply to this paragraph.) D. Tenant shall not connect, except through existing electrical or natural gas outlets or water pipes on the Premises any apparatus or device for the purpose of using electric current, natural gas, water or other utility. E. PLEASE READ CAREFULLY! FROM TIME TO TIME, THE SERVING PUBLIC UTILITY MAY SUFFER OR CAUSE POWER OUTAGES TO THE PREMISES. POWER OUTAGES ARE CAUSED BY MANY FACTORS: Storms, wind, heat, ice and high demand are the most common causes of widespread power outages; high power demand during heat waves and other times of unusually high demand may overburden electric cables, transformers, and other electrical equipment of Southern California Edison which then melt and fail. F. CAUTION: INTERMITTENT POWER INTERRUPTIONS ARE FOLLOWED BY RESTORATION OF ELECTRICITY WHICH MAY CAUSE SURGES IN ELECTRICAL POWER. POWER SURGES OFTEN AFFECT UNPROTECTED CONSUMER HOUSEHOLD APPLIANCES SUCH AS ELECTRONIC EQUIPMENT (COMPUTERS, STEREOS, RADIOS, ETC.). THE OWNER IS NOT RESPONSIBLE FOR THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES WHICH ARE CAUSED BY SOUTHERN CALIFORNIA EDISON. TENANT AGREES THAT OWNER IS FULLY AND UNCONDITIONALLY RELEASED AND DISCHARGED FROM ANY AND ALL LIABILITY WHICH ARISES AS A RESULT OF THE ACTS AND OMISSION OF THE UTILITY COMPANY. IT IS THE RESPONSIBILITY OF THE TENANT, EXCLUSIVELY, TO EXERCISE PRUDENT CARE FOR PROPERTY WHICH MAY BE AFFECTED BY DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES. ACCORDINGLY, TENANT HAS THE RESPONSIBILITY TO TAKE THE FOLLOWING PRECAUTIONS: 1. Tenant has the responsibility, always, TO USE SURGE PROTECTORS FOR THE PROTECTION OF TENANT'S PROPERTY, especially for computer equipment, stereo equipment, radios and other electrical 5 appliances, devices and products which may be affected by disruptions, outages, surges, or other irregularities in the provision of electrical service. Unplug heat -producing items such as irons or portable heaters to prevent a fire when power is restored. 2. Turn off and unplug all appliances and other electrical equipment, except for a single light bulb, which will be the signal your power has been restored. This helps ensure against circuit overloading, which could delay restoration of service. 3. In the event of an outage, do not use candles for lighting during an outage, since they create a fire -hazard. Use flashlights or battery - powered lanterns instead. 4. Check the neighborhood to see if others have their power. If they do, the problem may be a "tripped" circuit breaker. G. IT IS RECOMMENDED THAT TENANT OBTAIN A HOMEOWNER'S INSURANCE POLICY TO COVER DAMAGE, LOSS AND LIABILITY ASSOCIATED WITH THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES AND OTHER RISKS. H. TENANTS ARE RESPONSIBLE FOR MAKING SURE THAT THEIR MOBILEHOMES AND ALL APPLIANCES AND EQUIPMENT ARE COMPATIBLE WITH THE ELECTRIC SERVICE NOW AVAILABLE, AND OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY IF THE AVAILABLE ELECTRICAL SUPPLY IS INCOMPATIBLE OR INSUFFICIENT. TENANTS ARE RESPONSIBLE TO MATCH THE RATING FOR THE MOBILEHOME TO THE SERVICE PROVIDED AT THE PEDESTAL AND NOT EXCEED IT. TENANT PROMISES THAT THE MOBILEHOME SHALL NOT EXCEED SUCH RATING. TENANT RELEASES OWNER FROM FAILURE TO COMPLY WITH THE AMPERAGE RATING OR EXCEEDING AVAILABLE SERVICE. THIS RELEASE IS NOT INTENDED TO RELEASE OWNER FROM OWNER'S WILLFUL MISCONDUCT OR ACTIVE NEGLIGENCE, BUT ONLY TO THE EXTENT ALLOWED BY LAW. TENANT SHALL FORBEAR FROM CONSUMING MORE AMPERAGE THAN THE EXISTING RATING FOR THE HOMESITE, TO AVOID DAMAGE TO OWNER'S PROPERTY AND TO THE PROPERTY OF OTHERS.. IF THE MOBILEHOME, APPLIANCES AND EQUIPMENT IN THE MOBILEHOME ARE NOT COMPATIBLE WITH THE ELECTRIC SERVICE AND CAPACITY NOW AVAILABLE OR EXCEEDS AVAILABLE SUPPLY AT THE PEDESTAL, TENANT SHALL "DE -AMP" (REDUCE THE RATING FOR) THE MOBILEHOME OR DISCONTINUE EXCESS DEMAND TO ENSURE 11 AGAINST ANY OVERLOADING OR CAUSING ANY DISRUPTION IN SERVICE. OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY TO TENANT IF THE AVAILABLE ELECTRICAL SUPPLY IS INSUFFICIENT OR INCOMPATIBLE. TENANT IS EXPRESSLY LIABLE FOR SERVICE DISRUPTIONS CAUSED BY EXCESSIVE DEMANDS ON THE ELECTRICAL SYSTEM WHICH SHALL FURTHER BE DEEMED A DEFAULT AND BREACH OF THE TENANTS' OBLIGATIONS UNDER THIS AGREEMENT. J. With respect to the provision of any services or facilities (including utilities) to Tenant, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to maintain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond owner's reasonable control, will excuse performance of these obligations for a time period equal to the delay. Tenants will remain responsible, without abatement or reduction, for the rent, utilities, and other charges to be paid per the terms of this Agreement. Owner will use reasonable efforts to reinstate or repair any services or facilities, including utilities, which have been interrupted as set forth hereinabove. If Tenants feel that Owner is not using reasonable efforts to reinstate such services or facilities, Tenants shall mediate the matter pursuant to the agreement or paragraph contained herein entitled "mediation and reference of disputes" if and only if Tenants have consented to that provision or desire to do so by mutual agreement (at the time the dispute arises) which provides for an alternate dispute resolution procedure of such dispute. Owner will not be liable under any circumstances for loss of or injury to property, however occurring through or in connection with or incidental to the failure to furnish any services of facilities (including utilities). K. RESIDENT COVENANTS NOT TO CONSUME MORE AMPERAGE THAN THE EXISTING RATING FOR THE SPACE, SO AS TO AVOID DAMAGE TO OUR PROPERTY AND TO THE PROPERTY OF OTHERS. We will provide utilities and or services as specified on page one of this agreement. Any separate charges for natural gas, electricity and water as applicable will be on a submetered basis (if not separately charged at the inception of this agreement, owner reserves the right and power to do so on proper notice, with or without electing to reduce rent as per CC §798.41). Civil Code Sections 798.41 or 798.32 allow for further separated billing of utilities with corresponding reduction of rents and such option is reserved. 5. CIVIL CODE NOTICE RE: SERVICES AND IMPROVEMENTS: Owner is responsible for providing and maintaining the existing services and existing physical improvements located in the common facilities in good 7 working order and condition and you agree that these responsibilities of the Park are as defined and limited by this Agreement. The services include the following: (i) Park Management Services and those items set forth on page one; (ii) Maintenance of the physical improvements of the park, including the streets, walkways, and, common areas. Management shall have a reasonable period of time, with respect to the physical improvements in the common facilities, to repair the sudden or unforeseeable breakdown or deterioration of these improvements and bring the improvements into good working order and condition after management knows or should have known of the breakdown or deterioration. The period of time to do so shall not exceed: as soon as possible where health and safety is affected, and thirty days except where exigent circumstances justify a delay; or, otherwise as specified by law. Such repairs or other appropriate action shall be accomplished as soon as possible in the event of any condition which may relate to health and safety. With respect to providing any services or facilities, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond the reasonable control of the Park, will excuse the Park's performance of these obligations for a time period equal to the delay. You will remain responsible, without abatement or reduction, for the rent, utilities, and other charges. A. Tenant agrees to notify management immediately of any breakdown, interruption, deterioration, or failure of any physical improvement, utility, amenity, facility or service so a response to promptly to fulfill maintenance responsibilities can be given. Management depends on notice to avoid and mitigate loss, damage, injury and other liability by Tenant's prompt notice when applicable. Tenant's good faith cooperation is important to enabling management to timely respond. B. Management's reasonable and conscientious efforts to maintain the Park, despite prudent effort, will probably not be perfect. From time to time, repairs and improvements may be needed, and Tenant may be inconvenienced. Management hopes Tenant will please cooperate and be patient. Management will reasonably endeavor to avoid material disruption and interference with quiet enjoyment, and to provide advance notice of substantial interruptions or interference which are planned or scheduled. Tenant agrees that a reasonable job in maintaining the Park fairly describes Tenant's expectation of management's duty to maintain the park. Management shall provide physical M improvements and services in the Park. However, services, facilities, amenities, landscaping and other improvements in the common areas may change based upon conservation interests and concerns; such changes may include drought resistant landscaping, and additions, alterations or deletions of services and facilities without reduction, discount of other offset from monthly rents. Such changes will not alter other commitments under this Agreement. Tenant will have the opportunity to consult if desired. An average and habitable residential environment is provided, but not a perfect one as with any residential neighborhood. Physical Improvements include existing common areas, office, streets, any recreational facilities, buildings and interior improvements, landscaping, meeting rooms, pools, related improvements and equipment. 6. USE OF PREMISES: A. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. Tenant agrees not to do anything that will constitute waste, nuisance, or unreasonable annoyance. Tenant agrees to do nothing to cause damage to the space or park. Tenant agrees not to permit any act or maintain or permit to be maintained any condition on your space or mobilehome which may cause an increase in the rate of insurance City pays or increase costs of maintenance and repair. No activity shall be permitted which requires the issuance of a business license or permit by any governmental agency, or which is inconsistent with community zoning and conditional use permits, which would increase the risk of harm to the management or to any other person or property, increase noise, dust, vibration, odors or fumes, smoke, or any other condition offensive to the senses or which causes reasonable complaint, breaches the covenant of quiet enjoyment or reduces property values; which would increase foot or vehicular traffic, results in deliveries and delivery trucks, require storage of any thing outside the mobilehome, require additional employees or other persons on the space, or affect parking. Permitted occupants are: (i) Tenant; An additional person if Tenant is living alone; (iii) Family members and sub -lessees entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term "short term guest' shall mean any person who does not stay with Tenant for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may not occupy the Premises with the prior written consent of City. 0 B. Tenant agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 7. CONSIDERATION: City reserves the right to take the position that the past rents have been below market and constitute consideration to be applied against relocation costs upon closure of the Park. Tenants reserve the right to dispute City's position. 8. RELEVANT STATUTES AND RULES: The Mobilehome Residency Law requires this Agreement to contain, among other things, the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Agreement by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 9. SALE OR ASSIGNMENT: Subject to the terms of this Section, Tenant may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Tenant under the Mobilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain on the Premises, or if Tenant proposes to assign Tenant's interest in this Lease to any person or persons who is (are) to reside on the Premises, Tenant and/or the proposed transferee must do the following: A. Tenant must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval, the transferee has executed a new rental agreement provided by City, and the transferee has expressly agreed to be bound thereto. C. Tenant agrees that occupancy of the Premises shall be limited as provided in this Agreement and Tenant agrees not to sublease or otherwise transfer any partial interest in this Agreement. 10 D. The requirements for any mobilehome proposed to be installed on the space is as follows: Management must first approve a mobilehome before it may be installed in the park. No mobilehome which in excess of twelve feet in height may be installed in the park. The proposed mobilehome must fit upon the space in the position specified by management. Management reserves the right to require the largest possible mobilehome commercially available to be sited upon the space. Established set backs must be honored, and may not be changed. Roof material must be non -glare composition or wood shake shingles for the mobilehome, awnings and any storage or other structures on the space. All installations and improvements must be approved by management before work is commenced to avoid damage to underground utilities. Management must further approve a written plan, to be submitted for approval as required by law, showing the proposed location with measurements and dimensions evidencing conformance to all setback requirements required by law including Title 25 of the Code of Administrative regulations and local ordinances. A tie down system in compliance with §1336.3 of Paragraph (a) of Title 25 is required. A vapor retarding ground cover of six (6) mil polyethylene or equivalent over the ground, under the home is required. Under floor areas shall be ventilated 1 sq. ft. for each 150 sq. ft. of under floor area. Air conditioners, compressors and necessary accessories will be considered and approval of same shall be at management's sole discretion. No changes shall be made to the grade of the lot that would cause any runoff to adjacent space or common areas. Lot must meet HCD requirements for drainage. Only mobile homes manufactured in 1976 or later are permitted. No new cabanas may be constructed. Eaves are permitted only if applicable set back requirements can be met. Hitches must be removed from home and stored under the mobilehome. Porch, steps and ramps must be built to Title 25 Requirements. No aluminum porches are permitted, and shall not encroach set back requirements or required parking space. Any required handrail, porch, or step railing shall be wood, painted to match home/trim color. No upgrading or tampering with the electrical /gas service shall be permitted even by a licensed contractor. No mobilehome is permitted which is rated at higher amperage than the pedestal. Additional requirements are set forth in the rules and regulations. E. Notwithstanding any other provision in this Agreement, Tenant shall have the right to assign its interest in this Agreement to a spouse, son and/or daughter provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Agreement. F. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Agreement, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit "B"). 11 10. SUBLEASING: A. The Premises shall constitute Tenant's residence, whether primary or secondary. Tenant agrees not to sublease or rent the mobilehome or otherwise transfer any interest in this Lease, except to the extent that the right to sublet or transfer is specifically provided by this Agreement. B. Management shall permit a tenant to rent his or her mobilehome that serves as the homeowner's residence or sublet his or her space under the circumstances described in and in compliance with the provisions of AB 1410 effective January 1, 2003. Only one mobilehome may be subleased by the tenant though the tenant may own or control one or more mobilehomes or homesites in the Park.. Any sub- lease created in compliance with AB 1410 shall not create a landlord/tenant relationship as between City and sublessee. It is specifically agreed and understood that Sublessee cannot become a resident by attempting or purporting to pay City such monies. Receipt, retention, acceptance or possession of any monies from the sublessee shall only be on behalf of the Tenant. As between City and sublessee there is no privity of estate or contract. Tenant hereby further agrees to defend and indemnify City, at Tenant's sole expense, from any claims, liabilities, or actions brought by sublessee against the Park or for any action brought against the City by any person arising out of conduct related to Sublessee's conduct within the Park. 11. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS: Tenant shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Tenants also agree that all landscaping on the Premises shall be limited to three feet (T) in height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Tenant fails to maintain the Premises in accordance with the provisions of this Agreement and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Tenant and Tenant's failure to comply within fourteen (14) days from the date of written notice. The written notice shall contain all information required by the Mobilehome Residency Law. 12. PHYSICAL IMPROVEMENTS AND SERVICES: Tenant shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, non -restricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. 13. CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL 12 IMPROVEMENTS AND SERVICES: City retains the right to amend or modify the Marinapark Rules and Regulations, the Terms of this Agreement, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the Terms of this Agreement, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment without corresponding reduction or adjustment in rent. 14. RIGHT OF ENTRY: Tenant, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the premises for the purpose of inspecting, improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Subject to the obligation of City to exercise ordinary care, any damage, loss or injury to Tenant's home, property of Tenant or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Tenant, and City shall not be responsible for reimbursing any cost or expense incurred by Tenant as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. The rights and duties set forth in this paragraph are intended to implement and shall be exercised consistent with the Mobilehome Residency Law. 15. NOTICE REQUIRED BY CIVIL CODE SECTION 2079.10(a): The California Department of Justice, county sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the California Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through this telephone service. 16. HOLD HARMLESS: 13 A. Tenant covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, Tenant's use and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Tenant, or Tenant's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Tenant, or Tenant's agents, employees, licensees and invitees and damage to their property or Tenant's property, except for any damage or injury of any kind arising out of the active negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. This section is intended to provide City with a release from liability to the fullest extent allowed by law and not exceeding the rights of the City to do so either under Civil Code section 1953 ("[a] Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive any of the following rights shall be void as contrary to public policy: ... [5] His right to have the landlord exercise a duty of care to prevent personal injury or personal property damage where that duty is imposed by law") or section 1668 ("All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law"). City does not admit the applicability of section 1953 to a mobilehome space. B. Tenant, as a material part of the consideration under this Agreement, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the active negligence or willful misconduct of City's representatives, officers, agents or employees. Tenant agrees to indemnify and hold City, and its representatives, officers, agents and employees, harmless from and on account of any and all damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Tenant, and Tenant's family or guests. C. ANY CLAIM OR SUIT BETWEEN THE PARTIES FOR DAMAGES FOR PERSONAL OR BODILY INJURY OR PROPERTY DAMAGE AND OTHER APPLICABLE CLAIMS MUST BE COMMENCED IN ACCORDANCE WITH THE PROCEDURES FOR MAKING CLAIMS AGAINST GOVERNMENTAL ENTITIES PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA GOVERNMENT CODE. D. The value of the mobilehome may decline. Since a substantial portion of the present value of Tenant's mobilehome or coach is attributable to the rent charged by this Lease, the value of the premises and the proximity of the IM, premises to lower Newport Bay, you should investigate before purchasing. City's only obligation is to provide reasonable cost of relocation on closure of the park. Please investigate thoroughly before executing this agreement. 17. TERMINATION: A. Tenant may terminate this Agreement, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the mobilehome terminate their tenancy within that period and remove the mobilehome and all other improvements from the park B. City may terminate this Agreement for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. 18. ATTORNEYS' FEES: Should either City or Tenant be required to employ counsel to enforce the terms, conditions and covenants of this Agreement, the prevailing Party shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein pursuant to the Mobilehome Residency Law. 19. REMEDIES CUMULATIVE: The rights, powers, elections and remedies of the Parties contained in this Agreement shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of either Party's right to exercise any other. 20. NO WAIVER: A. No delay or omission of either Party to exercise any right or power arising from any omission, neglect or default of the other Party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Agreement. B. Acceptance of rent shall not reinstate or create a tenancy. Conditional acceptance of rent pending approval of tenancy shall not be deemed to create a tenancy or waive any requirements applicable to tenancy, purchaser 15 application or approval requirements or assignment or transfer requirements. Acceptance of rent after service of a notice to terminate tenancy as specified in Civil Code §798.57 shall not waive, affect or prejudice the notice. Nor shall routine service of other notices, Management communications, or other actions or omissions of the Management waive, prejudice, or affect the right to terminate tenancy, process a purchaser application and approve a tenant for tenancy, or otherwise affect the rights of Management. Possession of rent by the resident manager shall not be acceptance until actually approved by the park owner; accordingly, the receipt by or the tender of payment to the resident park manager shall be conditional and for custody purposes only until approved and accepted by the park owner. C. Owner may exercise any right under the terms of this agreement, or the Rules and Regulations as amended or modified, or any other right of the management under applicable law, and do so on or at any time subsequent to the date such right became effective hereunder, and do so retroactively to the date the right initially became effective or enforceable, by and upon demand for performance, including payment of any rent adjustments or other monies from or for the date such right first accrued through to and including the date of the demand and thereafter. Any delay, forbearance, whether intentional or inadvertent, in enforcing any right of the management for which subsequent demand is made shall not be construed as a waiver, estoppel, release or acquittal thereof, accord and satisfaction thereof, settlement in whole or part thereof; shall not constitute [aches in respect thereto; and, shall not render any such right unenforceable or be a defense against enforcement of such rights from the time such right could first be exercised and thereafter. 21. COMPLIANCE WITH LAWS. A. Tenant covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City or any other governmental body or agency having lawful jurisdiction over the Premises and/or the Property. Tenants agree to abide and conform with all the terms and conditions of this Agreement, the Rules and Regulations, all rules, regulations, terms and provisions contained in any document referred to in this Agreement, and said rules, regulations terms, and provisions as may from time to time be amended modified or otherwise changed by Owner as permitted by the terms of this Agreement. B. Any violation of the Rules and Regulations shall be deemed a public nuisance. Tenants agree that a breach of this Agreement or any of the Rules and Regulations cannot reasonably or adequately be compensated in damages in an action of law, and therefore, Owner shall be entitled to injunctive relief including but not limited to restraining Tenants (or family members, guests or other invitees) from continuing to breach any such rules or regulations term or condition or to allow a condition violative of a rule or regulation term or condition to exist or continue to exist without proving irreparable harm or lack of adequate legal remedy. 22. MOBILEHOME RESIDENCY LAW I ZONING AND USE PERMIT INFORMATION: Pursuant to Civil Code section 798.27 ("(a) The management shall give written notice to all homeowners and prospective homeowners concerning the following matters: (1) the nature of the zoning or use permit under which the mobilehome park operates. If the mobilehome park is operating pursuant to a permit subject to a renewal or expiration date, the relevant information and dates shall be included in the notice....'), Tenant is hereby notified as follows: A. Tenant acknowledges having received and read a copy of the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Marinapark Rules and Regulations (Exhibit "B"). B. The Property is currently zoned "Planned Community." There are no conditional use permits or other permits required to operate the Property as a mobilehome park. City owns the Property, but its use may be limited to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. 23. ENTIRE AGREEMENT: This Agreement and the documents referred to herein constitute the entire agreement between Tenant and Owner pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral. Paragraph titles are for identification and reference only and are not part of this Agreement and shall not be used to interpret this Agreement Each term and provision of this agreement to be performed by the Tenant or which is a duty of the Tenant shall be deemed to be both a condition and a covenant. Additionally, a breach of any each such term and provision shall also be deemed to constitute a rule and regulation for purposes of Civil Code section 798.56 and may constitute grounds for the termination of tenancy as a violation of a rule and regulation. 24. NOTICES: All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: 17 25. 26. A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 With a copy to: City Clerk's Office City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have furnished to Tenant; and To Tenant: By delivering a copy to the Tenant personally; or Tenant be absent from the mobilehome, by leaving a copy with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobile home and also sending a copy through the mail addressed to Tenant. Since a substantial portion of the present value of Lessee's mobilehome or coach Is attributable to the value of the premises and the and the proximity of the premises to lower Newport Bay, Following notice by City of any amendment, all other provisions of the Lease shall remain in full force and effect in their original form. TIME OF ESSENCE: Time is of the essence in this Agreement and each and every provision hereof. EMINENT DOMAIN: If the entire Park, or a portion thereof so that, in City's sole opinion, the balance remaining is not suitable for a mobilehome park, is taken under the power of eminent domain, or is sold to any authority having the power of eminent domain, either under threat of condemnation or while condemnation • i proceedings are pending, then this Agreement shall automatically terminate on proper notice as of the date the condemning authority takes possession, precondemns, notices its intent to condemn or files a condemnation action or other action which relates thereto. 27. INSURANCE: Owner does not carry public liability or property damage insurance to compensate Tenants, Residents, guests or any other person from any loss, damage or injury except those resulting from situations where Owner would be legally liable for such loss, damage or injury. If Tenants desire such or similar insurance coverage, it should be obtained by Tenants, insuring against loss and casualty by fire, earthquake, flooding, theft, other liability and casualty which relates to the mobilehome, other improvements and contents to full insurable value, personal liability and such other insurance as is necessary and appropriate. Tenants are advised to obtain a homeowner's policy in accordance with the guidelines and requirements specified by a lender, and if no lender, then in such sums and for such coverage as would be so required if so financed. 28. PARTIAL INVALIDITY: Certain terms and provisions of this Agreement and other documents referred to in this Agreement refer to restate or summarize provisions of the Mobilehome Residency Law and other applicable laws. In every instance it is intended that these references, restatements and summaries will accurately reflect the law and correctly set forth Tenants' and Owner's rights liabilities duties and obligations to one another and to other persons. The same is true of all of the other provisions of this Agreement and the other documents used by the Park. If any of the provisions of this Agreement or the other documents used by the Park fail in any way to meet the above criteria then it is unintentional and all such provisions shall be deemed to be automatically revised to correctly reflect the Owner's and Tenants' rights, liabilities, duties and obligations under the provisions of the Mobilehome Residency Law and all other applicable laws. Tenants agree to promptly notify Owner in writing of any instance where Tenants believe that any of the provisions of this Agreement or the other documents used by the Park fail to meet the above criteria. If any term or provision of this Agreement or any document referred to in this Agreement or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the remainder of this Agreement or the other document or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Agreement or the other document shall be valid and be enforced to the fullest extent permitted by law. 19 29. ENTIRE AGREEMENT: A. The resident manager, other personnel, mobilehome dealers, the sales person and seller from whom the mobilehome was purchased by Tenants and other persons are not authorized to make any representations or agreements with Tenants respecting the Community unless those agreements and representations are contained in this Agreement and the other documents and posted signs referred to in it. Therefore, Tenants agree that this Agreement and the other documents and posted signs referred to in it are the entire agreement between Tenants and Owner regarding the subjects covered by this Agreement, other documents and signs. This Agreement, the rules and regulations and the purchase agreement with Owner constitute the exclusive statement of the agreement and supersedes all prior and contemporaneous agreements, representations and understandings. B. Each party has relied on his own examination of this Agreement and counsel of his own advisers, and the warranties, representations and covenants in the Agreement itself. Failure or refusal of either party to inspect the premises or improvement, to read the Agreement or other documents or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention or claim that might have been based on such reading, inspection or advice. Additionally, in any interpretation of this Agreement it shall be deemed that this Agreement and its exhibits were written by both parties. . C. It is further agreed by and between the parties that the legal relationship that exists pursuant to this Agreement is a rental agreement, and that there are not other legal rights or relationships inferred. Tenants warrant and agree that they have no other rights, title or interest in the property upon which the Park is located or in the above described space other than that which is specifically set forth in this document. 30. DRAINAGE AND GRADING: A. The existing drainage pattern and grading of the space may not be changed without Management's consent. Tenant is responsible for maintaining the space so that water does not accumulate or stand under the mobilehome or on the Space. Water on the space is required to drain off the space in a fashion as to avoid runoff onto another mobilehome space. Tenant shall ensure the skirting attached to the mobilehome is not extended into the grade which would cause moisture or water to accumulate under the mobilehome. All watering systems shall be installed, maintained and adjusted as necessary to avoid water run-off and standing water on the premises. Any berms on the space shall be installed and maintained to avoid the accumulation of water on the space or under the mobilehome. Any masonry skirting must contain sufficient 20 openings as to prevent accumulation of water on the space or under the mobilehome. B. Homeowner warrants to that the mobilehome and areas under the mobilehome and homesite are free of and from mold. Homeowner is also responsible for mold cleanup. The mobilehome should be inspected by a competent home inspection contractor periodically. It is imperative to treat and remove all molds as if potentially harmful. Among the conditions to be checked should be presence of any mold in or about the mobilehome. The following are sources of indoor moisture that may cause problems: flooding, backed -up sewers, leaky roofs, humidifiers, mud or ice dams, damp crawl spaces, constant plumbing leaks, house plants -watering can generate large amounts of moisture, steam from cooking, shower/bath steam and leaks, wet clothes on indoor drying lines, clothes dryers vented indoors, combustion appliances (e.g. stoves) not exhausted to the outdoors. Homeowner is responsible for avoiding any such conditions and for remediation if same should occur. 31. NO THIRD -PARTY RIGHTS: Tenant is not a third -party beneficiary of any other agreement between Owner and anyone. The terms and provisions may differ between rental agreements and rules and regulations in force in the park, and no one may rely on the enforcement of any other's rental agreement or rules and regulations. There are no third party beneficiaries to this agreement. 32. NO RECORDING: No recording of this Agreement on any memorandum of this Agreement may be made without the prior written consent of Owner, which consent may be withheld in Owner's sole discretion. 33. LOT LINES: "Space" includes the area as defined by the perimeter of the mobilehome and its horizontal projections of its accessory structures. This understanding is based on the public ownership of the property on which the expectations of occupation which Tenant may use and enjoy. Therefore, Tenant may not rely on any markers to define the area of use and enjoyment to be expected due to the rights of the public entitled to entry within the park. 34. ALTERATIONS AND ADDITIONS: Tenant agrees not to make any alterations, improvements, additions or utility installations to, on or about the homesite or mobilehome, nor install, remove or change any existing improvements, or modify the drainage or landscaping nor 21 make any contract for such work without Owner's prior written consent and approval. Tenant is responsible for all conditions under the mobilehome including grading, compaction, subsidence, drainage, moisture, and ventilation. In giving or withholding consent to any such work, Owner may, at its option, consider and base consent or refusal of consent entirely upon aesthetic considerations and the compatibility of such changes to the Community. If Tenant fails to obtain prior written consent and approval, all such alterations, improvements, additions or utility installations shall be promptly removed at Tenant's sole expense, upon Owner request. 35. OPPORTUNITY TO REMEDY: If, at any time, Tenant believes owner has not fulfilled any legal obligations, Tenant agrees to immediately give owner written notice specifying what is believed owner has failed to do and indicating what Tenant believes owner must do in order to fulfill these obligations. This notice shall be as detailed as possible so that owner may fully understand Tenant's concerns. Tenant agrees that owner will have at least ninety (90) days, or such longer period as is reasonably necessary, after receipt of Tenant's notice to remedy the problem(s) Tenant has identified. If Tenant fails to promptly give owner this written notice as soon as Tenant is aware of any problem(s), or Tenant fails to give owner a reasonable opportunity to remedy the problem(s), owner will have no liability to Tenant for any expense, cost, damage or injury which Tenant may sustain as a result of the problem(s). If owner fails to remedy the problem(s) within a reasonable time after receipt of written notice, the problem(s) will be subject to mediation if such an agreement has been reached between the Parties. 36. ENVIRONMENTAL PROTECTION: A. Proper "hazardous substances" and waste disposal is required of all Tenants. Typical hazardous substances include automobile, boat and motorcycle batteries, household batteries, cleaning fluids and solvents, gasoline, paint and other thinners, oils, brake fluids, transmission fluids, radiator fluids and coolants and petroleum products. No Tenants may keep or store, in any place including within or about the mobilehome, homesite, storage shed or elsewhere in the Community, any hazardous substances in excess of the quantities required for typical single family household use. Additionally, Tenants may not cause any environmental hazard, including any exposure to, contact with, spill or deposit of any hazardous substance or waste. Tenants are prohibited from violating any law relating to environmental protection, hazardous substances or waste. This includes, but is not limited to, for example, changing or discarding auto batteries, oil, brake and radiator fluids, automatic transmission fluid, air conditioning gases, or grease in any motor vehicle or machine. Tenants may not cause or allow hazardous substances or waste to be disposed of anywhere in the Community, including, but not limited to, trash cans, trash bins, the 22 sewage disposal system, or any other trash or disposal area in the Community. Such substances must be physically removed from the Community and disposed' of elsewhere in compliance with law. In the event of any spill or deposit of hazardous substances in the Community, Tenants are required by law to immediately notify management. Management reserves the right to inspect the homesite for hazardous substances. B. In addition to other remedies allowed by law, Tenants will indemnify and hold the Owner harmless for any such environmentally hazardous act or omission prohibited by this rule or law, including any compensatory damages, statutory damages, punitive damages, expense and attorney's fees and costs sustained by the Community. Tenants will also be required to reimburse the Community for any actual attorney's fees, litigation expenses, and costs incurred in defending any action against the Community as a result of any environmentally hazardous act or omission of Tenants, Residents, Guests, Contractors and invitees. For purposes of this rule, "hazardous substances" includes without limitation: (1) Those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in federal law including C.E.R.C.L.A., R.C.R.A., T.S.C.A., H.M.T.A., or under any other Environmental Law; (II) Those substances listed in the United States Department of Transportation (D.O.T.) Table [49 C.F.R. 172.101], or by the Environmental Protection Agency (E.P.A.), or any successor agency, as hazardous substances [40 C.F.R. Part 302]; (III) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (IV) Any material, waste, or substance that is: (V) a petroleum or refined petroleum product, (i) asbestos, (ii) polychlorinated biphenyl, (iii) designated as a hazardous substance pursuant to 33 U.S.C. § 1321 or listed pursuant to 33 U.S.C. § 1317, (VI) a flammable explosive, or (VII) a radioactive material. 37. COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute but one and the same instrument. 38. NON -RESPONSIBILITY OF PARK: Owner is not responsible to inspect and approve any work done by Tenant or for Tenant by others, including, but not limited to, the installation of the mobilehome, driveway, walkways, fences or any other equipment or improvements of any type. To the extent that Owner may inspect or approve something, it is for Owner's own purpose only and Tenant is not entitled to rely 23 on that inspection or approval to ensure that the item has been installed or constructed correctly or that the work has otherwise been done as required. Instead, Tenant is responsible for all required inspections and approvals and Tenant agrees to indemnify and hold Owner harmless from any work which is improperly done. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day and year first above written. Tenant CITY OF NEWPORT BEACH a municipal corporation. Homer Blu au, City Manager APPROVED AS TO FORM: �! i,'� Robin L. Clauson, Assistant City Attorney F:\users\cat\s hared\cp-da\Projects\Mari naPark\010703.doc 24 0 • MARINAPARK 1770 WEST BALBOA BOULEVARD NEWPORT BEACH, CALIFORNIA 92663 RENTAL AGREEMENT Q,eo, seJ l ez �Y oa-CW q, I 2-03 memo This Rental agreement ("Agreement") is entered into this day of 2003, by and between the CITY OF NEWPORT BEACH, a municipal corporation and Charter City (City or Owner) and (Tenant), and 0 made with reference to the recital and acknowledgments, the materiality and existence of which is stipulated and agreed by the Parties: A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15`h Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Property). B. The City Council actively solicited proposals for non-residential uses at Marinapark and, as of February 2002, has deemed a non-residential use'of Marinapark the most appropriate land use for the property. - The City is currently investigating an alternative use of the property and a decision to change the use of the property may be made at any time. Notification of any decision to change the use of the property will be given in accordance with the. Mobilehome Residency Law, Section 798.56 (g) and other applicable law.. C. California State Lands Commission staff has asserted that a portion of the Property consists of tidelands. City and Tenant have, in the past, claimed that all'', or substantially all, of the Property leased for mobilehome residency p4poses is uplands owned by City, and City and Tenant have discussed various bases to support that claim. D. The State Lands Commission staff has asserted that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional. law. However, City and Tenant may dispute that claim. E. The terms and conditions of this Agreement are consistent, with the provisions of the Mobilehome Residency Law (Section 798 et seq. of the California Civil Code). F. You acknowledge having received, read and understood a copy of: The attached Mobilehome Residency Law and Park Rules and Regulations each of which is incorporated by this reference. G. The terms of residency shall be solely governed by law and by the terms of this agreement. No salesperson, broker, financial institution or any person not specifically employed by owner has the authority or right to make statements on behalf of City. The resident managers have no authority to modify this agreement. This is the exclusive agreement between City and Tenant. H. A new Tenant warrants that Tenant has read, reviewed and executed a written disclosure statement provided by the management at least three (3) days prior to the execution of this rental agreement. The monthly rent may be adjusted at jany time during the term of this agreement (whether the term selected is month -to -month, twelve months, or a term between one to twelve months), in the amount specified by the management, on not less than ninety (90) days advance written notice, as per Civil Code section 798.30. J. EQUAL HOUSING OPPORTUNITY: WE DO BUSINESS IN ACCORDANCE WITH THE STATE AND FEDERAL FAIR HOUSING LAWS. IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, 'HANDICAP OR DISABILITY, FAMILIAL STATUS SOURCE OF INCOME,. NATIONAL ORIGIN OR ANCESTRY OR FOR ARBITRARY REASONS UNDER STATE LAW. NOW, THEREFORE, the Parties do hereby mutually agree as follows: DESCRIPTION OF PREMISES: ,The City hereby rents to the Tenant, and Tenant accepts the rental of space number as shown on Exhibit "A" (Premises) in Marinapark, 1770 West Balboa Boulevard, Newport Beach, California 92663. 2. TERM: (select one option as provided) ❑ The tenancy created under this Agreement shall be on a month -to -month basis and shall commence on ❑ The tenancy created under this Agreement shall be for a period of twelve (12) months and shall commence on , unless sooner terminated in accordance with the terms of this Agreement; ❑ The tenancy created under this Agreement shall be for a period of months (from one month to twelve months) and shall commence on , unless sooner terminated in accordance with the terms of this Agreement. Rental agreements of varying duration including a 12 month or less and month -to -month have been offered. It is acknowledged that this agreement is chosen from such alternatives. The 12 month or less agreement is and remains a continuing option for the tenant upon expiration of the rental agreement under which the tenant had been residing until the said expiration of its term. 3. • RENT: A. The monthly rent is $ per month. Tenant shall pay as rent to Owner without deduction or offset (without waiving Civil Code Section 1942) and on the first day of each month: (1) the beginning rent - of $ per month (as it may be adjusted as specified herein); (2) all utility charges billed to Tehants by Owner during each month as described herein (please note: utility rates for utilities billed to Tenant by Owner are set by the Public Utilities Commission and other governmental agencies. Therefore, charges for these utilities may be increased at any time in accordance with the rates established by these entities and no advance notice of increases in such rates will be given to Tenant by Owner); and, (3) guest charges (with applicable exceptions pursuant to the Mobilehome Residency Law), of $ per day for any guest who stays more than twenty consecutive days or more than thirty days in a calendar year. The monthly rent may be adjusted at any time during the term of this agreement (whether the term selected is month -to -month, twelve months, or a term between one to twelve months), in the amount specified by the management, on not less than ninety (90) days advance written notice. B. Owner may charge a reasonable fee for services relating to the maintenance of the land and premises upon which the Mobilehome is situated in the event the Tenants fail to maintain such land or premises in accordance with the Rules And Regulations of the Park after written notification to the Tenants and the failure of the Tenants to comply within fourteen (14) days. Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner, unless by order within the final judgment of a court of competent jurisdiction. Such charges shall be billed as further rent or as a permissible fee at owner's option, and added to the monthly rent billing payable on the first of the month following the date of completion of the work performed by the management. C. Tenants shall pay when due ail real property taxes attributable to Tenant's mobilehome and all improvements made by Tenant to Tenant's mobilehome space and all municipal, county, stale, federal and other taxes, fees, assessments and levies (except Owner's income taxes and franchise taxes) levied upon the Premises, or Tenant or Owner, in connection with the use and occupancy of the Premises by Tenant. 3 D. All rent payable hereunder shall be paid in advance on the first day of each month together with all other charges set forth on the monthly billing statement, in full without deduction, offset, reduction, discount, claim of collateral debt or other obligation owing. Specifically, Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner by reason of any independent, collateral or other legal obligation or dispute. The entitlement to rent shall not be deemed cross -collateralized with or against any other legal obligation or dispute for which Owner is claimed to be responsible to Tenants. Payment shall be in the form of personal check, money order, or certified funds. Owner may however demand all prospective payments in cash, on not less than at least ten (10) days advance written notice. If the rent is not timely paid, demand notices to pay or quit may be served as soon as legally permitted. Rent and all other charges will be late if not paid in full by 5:00 p.m. on the 5th day of each month. Tenants must pay a late charge whenever rent or other charges are paid more than five (5) days after they are due in the amount of Thirty -Five dollars ($35.00) and a handling charge whenever a check is returned for any reason in 'the amount of Twenty-five dollars ($25.00). Payment will be made at the Park Office. E. Monies received for rent or other charges may be applied to the earliest outstanding sums ("first in, first out") and to utilities first at Owner's discretion, despite payer's instructions or endorsements purporting to restrict application of payment to a specific month or time period, or purporting to pay -in -full, satisfy or extinguish the amount or arrearage due or portion thereof. Partial payments of monthly rents or other charges may be rejected and constitute a breach of this agreement. However, tender of a part payment shall not be construed as an accord and satisfaction or release of any indebtedness if accepted, despite ..Tenant's purported instructions or restrictive endorsements to the contrary. Agceptance of a part payment is not a waiver of the balance billed or due. The period of time prior to the imposition of the late charge is not a grace period or option to pay late. 4. UTILITIES: A. Owner shall provide and separately bill to Tenant the following utilities: natural gas at the beginning rate of $22.00. Water usage is included in monthly rent. B. City shall not provide electricity or telephone service. Tenant shall make arrangements directly with the utilities furnishing these services and pay such utilities directly for them. Tenant shall contract with and pay directly for all other utilities it may require. The charge for gas shall be paid when rent is due, and is in addition to the obligation to pay rent. In the event Tenant fails to pay the charge for water or gas service within ten (10) days after the amount is due, Tenant shall pay to City a late charge of thirty-five dollars ($35.00). In the event City provides both master meter and submeter service of utilities to.Tenant, the cost of the charges for each billing period shall be separately stated and shall contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place. The charge to Tenant for gas service shall be the amount of the charges paid by Tenant as of June 1, 2002 ($22.00 per month). The charges for gas service may be increased or decreased on or after the first day of October. Owner further reserves the right to charge for any other separately -billed or submetered utilities or for services actually rendered under Civil Code §798.32 .(without reduction of rent or other charges) or Civil Code §798.41 (with reduction in rent equal to cost of initial separate billing amounts). Such amounts shall also be deemed to constitute further monthly rent. r C. Owner shall not be liable for any loss or injury, and Tenant shall not be entitled to any abatement or reduction of rent by reason of Owner's failure to furnish any of the foregoing utilities when such failure is caused by accident, breakage, repairs, strikes, acts of third parties, labor disputes or by any other cause, similar or dissimilar beyond the reasonable control of Owner. (Please Note: The provisions of the paragraph below entitled "Indemnification" apply to this paragraph.) D. Tenant shall not connect, except through existing electrical or natural gas outlets or water pipes on the Premises any apparatus or device for the purpose of using electric current, natural gas, water or other utility. E. PLEASE READ CAREFULLY! FROM TIME TO TIME, THE SERVING PUBLIC UTILITY MAY SUFFER OR CAUSE POWER OUTAGES TO THE PREMISES. POWER OUTAGES ARE CAUSED BY MANY FACTORS: Storms, wind, heat, ice and high demand are the most common causes of widespread power outages; high power demand during heat waves and other times of unusually high demand may overburden electric cables, transformers, and other electrical equipment of Southern California Edison which then melt and fail. F. CAUTION: INTERMITTENT POWER INTERRUPTIONS ARE FOLLOWED BY RESTORATION OF ELECTRICITY WHICH MAY CAUSE SURGES IN ELECTRICAL POWER. POWER SURGES OFTEN AFFECT UNPROTECTED CONSUMER HOUSEHOLD APPLIANCES SUCH AS ELECTRONIC EQUIPMENT (COMPUTERS, STEREOS, RADIOS, ETC.). THE OWNER IS NOT RESPONSIBLE FOR THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES WHICH ARE CAUSED BY SOUTHERN CALIFORNIA EDISON. TENANT AGREES THAT OWNER IS FULLY AND UNCONDITIONALLY RELEASED AND DISCHARGED FROM ANY AND ALL LIABILITY WHICH ARISES AS A,RESULT OF THE ACTS AND OMISSION OF THE UTILITY'COMPANY. IT IS THE RESPONSIBILITY OF THE TENANT, EXCLUSIVELY, TO EXERCISE PRUDENT CARE FOR PROPERTY WHICH MAY. BE AFFECTED BY DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE G. H.c PREMISES. ACCORDINGLY, TENANT HAS THE RESPONSIBILITY TO TAKE THE FOLLOWING PRECAUTIONS: Tenant has the responsibility, always, TO USE SURGE PROTECTORS FOR THE PROTECTION OF TENANT'S PROPERTY, especially for computer equipment, stereo equipment, radios and other electrical appliances, devices and products which may be affected by disruptions, outages, surges, or other irregularities in the provision of electrical service. Unplug heat -producing items such as irons or portable heaters to prevent a fire when power is restored. • r 2. Turn off and unplug all appliances and other electrical equipment, except for a single light bulb, which will be the signal your power has been restored. This helps ensure against circuit bverloading, which could delay restoration of service. In the event of an outage, do not use candles for lighting during an outage, since they create a fire hazard. Use flashlights or battery - powered lanterns instead. 4. Check the neighborhood to see if others have their power. If they do, the problem may be a "tripped" circuit breaker. IT IS RECOMMENDED THAT TENANT OBTAIN A HOMEOWNER'S INSURANCE POLICY TO COVER DAMAGE, LOSS AND LIABILITY ASSOCIATED WITH THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE ;PREMISES AND OTHER RISKS. TENANTS ARE RESPONSIBLE FOR MAKING SURE THAT THEIR MOBILEHOMES AND ALL APPLIANCES AND EQUIPMENT ARE' COMPATIBLE WITH THE ELECTRIC SERVICE NOW AVAILABLE, AND OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY IF THE AVAILABLE ELECTRICAL SUPPLY IS INCOMPATIBLE OR INSUFFICIENT. TENANTS ARE RESPONSIBLE TO MATCH THE RATING FOR THE MOBILEHOME TO THE SERVICE PROVIDED AT THE PEDESTAL AND NOT EXCEED IT. TENANT PROMISES THAT THE MOBILEHOME SHALL NOT EXCEED SUCH RATING. TENANT RELEASES OWNER FROM FAILURE TO COMPLY WITH THE AMPERAGE RATING OR EXCEEDING AVAILABLE SERVICE. THIS RELEASE IS NOT INTENDED TO RELEASE OWNER FROM OWNER'S WILLFUL MISCONDUCT OR ACTIVE NEGLIGENCE, BUT ONLY TO THE EXTENT ALLOWED BY LAW. TENANT SHALL FORBEAR FROM CONSUMING MORE AMPERAGE THAN THE EXISTING RATING FOR THE HOMESITE, TO AVOID DAMAGE TO OWNER'S PROPERTY. AND TO THE PROPERTY OF OTHERS.. I. IF THE MOBILEHOME, APPLIANCES AND EQUIPMENT IN THE MOBILEHOME ARE NOT COMPATIBLE WITH THE ELECTRIC SERVICE AND CAPACITY NOW AVAILABLE OR EXCEEDS AVAILABLE SUPPLY AT THE PEDESTAL, TENANT SHALL "DE -AMP" (REDUCE THE RATING FOR) THE MOBILEHOME OR DISCONTINUE EXCESS DEMAND TO ENSURE AGAINST ANY OVERLOADING OR CAUSING ANY DISRUPTION IN SERVICE. OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY TO TENANT IF THE AVAILABLE ELECTRICAL SUPPLY IS INSUFFICIENT OR INCOMPATIBLE. TENANT IS EXPRESSLY LIABLE FOR SERVICE DISRUPTIONS CAUSED BY EXCESSIVE DEMANDS ON THE ELECTRICAL SYSTEM WHICH SHALL FURTHER BE DEEMED A DEFAULT AND BREACH OF THE TENANTS' OBLIGATIONS UNDER THIS AGREEMENT. J. With respect to the provision of any services or facilities (including utilities) to Tenant, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to maintain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond owner's reasonable control, will excuse performance of these obligations for a time period equal to the delay. Tenants will remain responsible, without abatement or reduction, for the rent, utilities, and other charges to be paid per the terms of this Agreement. Owner will use reasonable efforts to reinstate or repair any services or facilities, including utilities, which have been interrupted as set forth hereinabove. If Tenants feel that Owner is not using reasonable efforts to reinstate such services or facilities, Tenants shall mediate the matter pursuant to the agreement or paragraph contained herein entitled "mediation and reference of disputes if and only if Tenants have consented to that provision or desire to do so by mutual agreement (at the time the dispute arises) which provides for an alternate dispute resolution procedure of such dispute. Owner will not be liable under any circumstances for loss of or injury to property, however occurring through or in connection with or incidental to the failure to furnish any services of facilities (including utilities). K. RESIDENT COVENANTS NOT TO CONSUME MORE AMPERAGE THAN THE EXISTING RATING FOR THE SPACE, SO AS TO AVOID DAMAGE TO OUR PROPERTY AND TO THE PROPERTY OF OTHERS. We will provide utilities and or services as specified on page one of this agreement. Any separate charges for natural gas, electricity and water as applicable will be on a submetered basis (if not separately charged at the inception of this agreement, owner reserves the right and power to do so on proper notice, with or without electing to reduce rent as per CC §798.41). Civil Code Sections 798.41 or 798.32 allow 'for further separated billing of utilities with corresponding reduction of rents and such option is reserved. 5. CIVIL CODE NOTICE RE: SERVICES AND IMPROVEMENTS: 7 Owner is responsible for providing and maintaining the existing services and existing physical improvements located in the common facilities in good working order and condition and you agree that these responsibilities of the Park are as defined and limited by this Agreement. The services include the following: Park Management Services and those items set forth on page one; (ii) Maintenance of the physical improvements of the park, including the streets, walkways, and, common areas. Management shall have a reasonable period of time, with respect to the physical improvements in the common facilities, to repair the sudden or unforeseeable breakdown or deterioratiorf of these improvements and bring the improvements into good working order and condition after management knows or should have known of the breakdown or deterioration. The period of time to do so shall not exceed: as soon as possible where health and safety is affected, and thirty days except where exigent circumstances justify a delay; or, otherwise as specified by law. Such repairs or other appropriate action shall be accomplished as soon as possible in the event of any condition which may relate to health and safety. With respect to providing any services or facilities, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond the reasonable control of the Park, will excuse the Park's performance of these obligations for a time period equal to the- delay. You will ,remain responsible, without abatement or reduction, for the rent, utilities, and ot,her charges. 1 A. Tenant agrees to notify management immediately of any breakdown, interruption, deterioration, or failure of any physical improvement, utility, amenity, facility or service so a response to promptly to fulfill maintenance responsibilities can be given. Management depends on notice to avoid and mitigate loss, damage, injury and other liability by Tenant's prompt notice when 'applicable. Tenant's good faith cooperation is important to enabling management to timely respond. B. Management's reasonable and conscientious efforts to maintain the Park, despite prudent effort, will probably not be perfect. From time to time, repairs and improvements may be needed, and Tenant may be inconvenienced. Management hopes Tenant will please cooperate and be patient. Management will reasonably endeavor to avoid material disruption and interference with quiet enjoyment, and to provide advance notice of substantial interruptions or interference which are planned or scheduled. Tenant agrees that a reasonable job in maintaining the Park fairly describes Tenant's expectation of management's duty to maintain the park. Management shall provide physical improvements and services in the Park. However, services, facilities, amenities, landscaping and other improvements in the common areas may change based upon conservation interests and concerns; such changes may include drought .resistant landscaping, and additions, alterations or deletions of services and facilities without reduction, discount of other offset from monthly rents. Such changes will not alter other commitments under this Agreement. Tenant will have the opportunity to consult if desired. An average and habitable residential environment is provided, but not a perfect one as with any residential . neighborhood. Physical Improvements include existing common areas, office, - streets, any recreational facilities, buildings and interior improvements, landscaping, meeting rooms, pools, related improvements and equipment. 6. USE OF PREMISES: A. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. Tenant agrees not to do anything that will constitute waste, nuisance, or unreasonable annoyance. Tenant agrees to do nothing to cause damage to the space or park. Tenant agrees not to permit any act or maintain or permit to be maintained any condition on your space or mobilehome which may cause an increase in the rate of insurance City pays or increase costs of maintenance and repair. No activity shall be permitted which requires the issuance of a business license or permit by any governmental agency, or which is inconsistent with community zoning and conditional use permits, which would increase the risk of harm to the management or to any other person or property, increase noise, dust, vibration, odors or fumes, smoke, or any other condition offensive to the senses ,or. which causes reasonable complaint, breaches the covenant of quiet enjoyment or reduces property values; which would increase foot or vehicular traffic, results in deliveries and delivery trucks, require storage of any thing outside the mobilehome, require additional employees or other persons on the space, or affect parking. Permitted occupants are: (i) Tenant; (ii) An additional person if Tenant is living alone; (III) Family members and sub -lessees entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term "short term guest" shall mean any person who does not stay with Tenant for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may not occupy the Premises with the prior written consent of City. G B. Tenant agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 7. CONSIDERATION: City reserves the right to take the position that the past rents have been below market and constitute consideration to be applied against relocation costs upon closure of the Park. Tenants reserve the right to dispute City's position. 8. RELEVANT STATUTES AND RULES: The Mobilehome Residency Law. requires this Agrdemerit to contain, among 'other things, the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Agreement by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 9. SALE OR ASSIGNMENT: Subject to the terms of this Section, Tenant may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Tenant under the 'Mpbilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain on the Premises, or if Tenant proposes to assign Tenant's interest in this Lease to any person or persons who is (are) to reside on the Premises, Tenant and/or the proposed transferee must do the following: A. Tenant must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval, the transferee has executed a new rental agreement provided by City, and the transferee has expressly agreed to be bound thereto. C. Tenant agrees that occupancy of the Premises shall be limited as provided in this Agreement and Tenant agrees not to sublease or otherwise transfer any partial interest in this Agreement. ID D. The requirements for any mobilehome proposed to be installed on the space is as follows: Management must first approve a mobilehome before it may be installed in the park. No mobilehome which in excess of twelve feet in height may be installed in the park. The proposed mobilehome must fit upon the space in the position specified by management. Management reserves the right to require the largest possible mobilehome commercially available to be sited upon the space. Established set backs must be honored, and may not be changed. • Roof material must be non -glare composition or wood shake shingles for the mobilehome, awnings and any storage or other structures on the space. All installations and improvements must be approved by management before work is commencedrto avoid damage to underground utilities. Management must further approve a written plan, to be submitted for approval as required by law, showing the proposed location with measurements and dimensions evidencing conformance to all setback requirements required by law including Title 25 of the Code of Administrative regulations and local ordinances. A tie down system in compliance with §1336.3 of Paragraph (a) of Title 25 is required. A vapor retarding ground cover of six (6) mil polyethylene or equivalent over the ground, under the home is required. Underfloor areas shall be ventilated 1 sq. ft. for each 150 sq. ft, of under floor area. Air conditioners, compressors and necessary accessories will be considered and approval of same shall be at management's sole discretion. No changes shall be made to the grade of the lot that would cause any runoff to adjacent space or common areas. Lot must meet HCD requirements for drainage. Only mobile homes manufactured in 1976 or later are permitted. No new cabanas may be constructed. Eaves are permitted only if applicable set back requirements can be met. Hitches must be removed from home and stored under the mobilehome. Porch, steps and ramps must be built to Title 25 Requirements. No aluminum porches are permitted, and shall not encroach set back requirements or required parking space. Any required handrail, porch, or step railing shall be wood, painted to match home/trim color. No upgrading or tampering with the electrical /gas service shall be permitted even by a licensed contractor. No mobilehome is permitted which is rated at higher amperage than the pedestal. Additional requirements are set forth in the rules and regulations. E. Notwithstanding any other provision in this Agreement, Tenant shall have the right to assign its interest in this Agreement to a spouse, son and/or daughter provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Agreement. F. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Agreement, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit "B"). 10. SUBLEASING: A. The Premises shall constitute Tenant's residence, whether primary or secondary. Tenant agrees not to sublease or rent the mobilehome or otherwise transfer any interest in this Lease, except to the extent that the right to sublet or transfer is specifically provided by this Agreement. B. Management shall permit a tenant to rent his or her mobilehome that serves as the homeowner's residence orsublet his or her space underthe circumstances described in and in compliance with the provisions of AB 1410 effective January 1, 2003. Only one mobilehome may be subleased by the tenant though the tenant may own or control one or more mobilehomes or homesiteg in the Park.. Any sub -lease created in compliance with AB 1410 shall not create a landlord/tenant relationship as between City and sublessee. It is specifically agreed and understood that Sublessee cannot become a resident by attempting or purporting to pay City such monies. Receipt, retention, acceptance or possession of any monies from the sublessee shall only be on behalf of the Tenant. As between City and sublessee there is no privity of estate or contract. Tenant hereby further agrees to defend and indemnify City, at Tenant's sole expense, from any claims, liabilities, or actions brought by sublessee against the Park or for any action brought against the City by any person arising out of conduct related to Sublessee's conduct within the Park. 11. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS: Tenant shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Tenants also agree that all landscaping on the Premises shall be limited to three feet (3') in height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Tenant fails to maintain the Premises in accordance with the provisions of this Agreement and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Tenant and Tenant's failure to comply within .fourteen (14) days from the date of written notice. The written notice shall contain all.information required by the Mobilehome Residency Law. 12. PHYSICAL IMPROVEMENTS AND SERVICES: Tenant shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, non -restricted parking areas, laundry facilities, restrooms and showers'located in the common areas and common facilities and designated for use by residents. 13. CHANGES IN MARINAPARK RULES AND REGULATI.ONS, PHYSICAL IMPROVEMENTS AND SERVICES: 12 A. The Premises shall constitute Tenant's residence, whether primary or secondary. Tenant agrees not to sublease or rent the mobilehome or otherwise transfer any interest in this Lease, except to the extent that the right to sublet or transfer is specifically provided by this Agreement. B. Management shall permit a tenant to rent his or her mobilehome that serves as the homeowner's residence or sublet his or her space under the circumstances described in and in compliance with the provisions of AB 1410 effective January 1, 2003. Only one mobilehome may be subleased by the tenant though the tenant may own or control one or more mobilehomes or homesitep in the Park.. Any sub -lease created in compliance with AB 1410 shall not create a landlord/tenant relationship as between City and sublessee. It is specifically agreed and understood that Sublessee cannot become a resident by attempting or purporting to pay City such monies. Receipt, retention, acceptance or possession of any monies from the sublessee shall only be on behalf of the Tenant. As between City and sublessee there is no privity of estate or contract. Tenant hereby further agrees to defend and indemnify City, at Tenant's sole expense, from any claims, liabilities, or actions brought by sublessee against the Park or for any action brought against the City by any person arising out of conduct related to Sublessee's conduct within the Park. 11. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS: Tenant shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Tenants also agree that all landscaping on the Premises shall be limited to three feet (3') in: height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Tenant fails to maintain the Premises in accordance with the provisions of this Agreement and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Tenant and Tenant's failure to comply within .fourteen (14) days from the date of written notice. The written notice shall contain all information required by the Mobilehome Residency Law. 12. PHYSICAL IMPROVEMENTS AND SERVICES: Tenant shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, non -restricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. 13. CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL IMPROVEMENTS AND SERVICES: 12 City retains the right to amend or modify the Marinapark Rules and Regulations, the Terms of this Agreement, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the Terms of this Agreement, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment without corresponding reduction or adjustment in rent. 14. RIGHT OF ENTRY: r 15. Tenant„ subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the premises for the purpose of inspecting, improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Subject to the obligation of City to exercise ordinary care, any damage, loss or injury to Tenant's home, property of Tenant or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Tenant, and City shall not be responsible for reimbursing any cost or expense incurred by Tenant as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. The rights and duties set forth in this paragraph are intended to implement and shall be exercised consistent with the Mobilehome Residency Law. Tf e California Department of Justice, county sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the California Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through this telephone service. 16. HOLD HARMLESS: A. Tenant covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, Tenant's use 13 and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Tenant, or Tenant's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Tenant, or Tenant's agents, employees, licensees and invitees and damage to their property or Tenant's property, except for any damage or injury of any kind arising out of the active negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. This section is intended to provide City with a release from liability to the fullest extent allowed by law and not exceeding the rights of the City to 4o so either under Civil Code section 1953 ("[a] Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive any of the following rights shall be void as contrary to public policy: . . .[5] His right to have the landlord exercise a duty of care to prevent personal injury or personal property damage where that duty is imposed by law") or section 1668 ("Ail contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law"). City does not admit the applicability of section 1953 to a mobilehome space. B. Tenant, as a material part of the consideration under this Agreement, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the active negligence or willful misconduct of City's representatives, officers, agents or employees. Tenant agrees to indemnify and hold City, and .its representatives, officers, agents and employees, harmless from and on account of any and all damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Tenant, and Tenant's family or guests. C. ANY CLAIM OR SUIT BETWEEN THE PARTIES FOR DAMAGES FOR PERSONAL OR BODILY INJURY OR PROPERTY -DAMAGE AND OTHER APPLICABLE CLAIMS MUST BE COMMENCED IN ACCORDANCE WITH THE PROCEDURES FOR MAKING CLAIMS AGAINST GOVERNMENTAL ENTITIES PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA GOVERNMENT CODE. D. The value of the mobilehome may decline. Since a substantial portion of the present value of Tenant's mobilehome or coach is attributable to the rent charged by this Lease, the value of the premises and the proximity of the premises to lower Newport Bay, you should investigate before purchasing. City's only obligation is to provide reasonable cost of relocation on closure of the park. Please investigate thoroughly before executing this agreement. 14 17. TERMINATION: A. Tenant may terminate this Agreement, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the mobilehome terminate their tenancy within that period and remove the mobilehome and all other improvements from the park B. City may terminate this Agreement for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. r 18. ATTORNEYS' FEES: Should either City or Tenant be. required to employ counsel to enforce the terms, conditions and covenants of this Agreement, the prevailing Party shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein pursuant to the Mobilehome Residency Law. 19. REMEDIES CUMULATIVE: The rights, powers, elections and remedies of the Parties contained in this Agreement shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of either Parry's right to exercise any other. 20. NO WAIVER: A. No delay or omission of either Party to exercise any right or power arising from any omission, neglect or default of the other Party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Agreement. B. Acceptance of rent shall not reinstate or create a tenancy. Conditional acceptance of rent pending approval of tenancy shall not be deemed to create a tenancy or waive any requirements applicable to tenancy, purchaser application or approval requirements or assignment or transfer requirements. Acceptance of'rent after service of a notice to terminate tenancy as specified in Civil Code §798.57 shall not waive, affect or prejudice the notice. Nor shall routine service of other notices, Management communications, or other actions or omissions of the Management waive, prejudice, or affect the right to 15 terminate tenancy, process a purchaser application and approve a tenant for tenancy, or otherwise affect the rights of Management. Possession of rent by the resident manager shall not be acceptance until actually approved by the park owner; accordingly, the receipt by or the tender of payment to the resident park manager shall be conditional and for custody purposes only until approved and accepted by the park owner. C. Owner may exercise any right under the terms of this agreement, or the Rules and Regulations as amended or modified, or any other right of the management under applicable law, and do so on or at any time subsequent to the date such right became effective hereunder, and do po retroactively to the date the right initially became effective or enforceable, by and upon demand for performance, including payment of any rent adjustments or other monies from or for the date such right first accrued through to and including the date -of the demand and thereafter. Any delay, forbearance, whether intentional or inadvertent, in enforcing any right of the management for which subsequent demand is made shall not be construed as a waiver, estoppel, release or acquittal thereof, accord and satisfaction thereof, settlement in whole or part thereof; shall not constitute laches in respect thereto; and, shall not render any such right unenforceable oi• be a defense against enforcement of such rights from the time such right could first be exercised and thereafter. 21. COMPLIANCE WITH LAWS. A. Tenant covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City or any other governmental body or agency having lawful jurisdiction over the Premises .and/or the Property. Tenants agree to abide and conform with all the terms acid conditions of this Agreement, the Rules and Regulations, all rules, regulations, terms and provisions contained in any document referred to in this Agreement, and said rules, regulations terms, and provisions as may from time to time be amended modified or otherwise changed by Owner as permitted by the terms of this Agreement. B. Any violation of the Rules and Regulations shall be deemed a public nuisance. Tenants agree that a breach of this Agreement or any of the Rules and Regulations cannot reasonably or adequately be compensated in damages in an action of law, and therefore, Owner shall be entitled to injunctive relief including but not limited to restraining Tenants (or family members, guests or other invitees) from continuing to breach any such rules or regulations term or condition or to allow a condition violative of a rule or regulation term or condition to exist or continue to exist without proving irreparable harm or lack of adequate legal remedy. 22. MOBILEHOME RESIDENCY LAW / ZONING AND USE PERMIT INFORMATION: 16 Pursuant to Civil Code section 798.27 ("(a) The management shall give written notice to all homeowners and prospective homeowners concerning the following matters: (1) the nature of the zoning or use permit under which the mobilehome park operates. If the mobilehome park is operating pursuant to a permit subject to a renewal or expiration date, the relevant information and dates shall be included in the notice.... "), Tenant is hereby notified as follows: A. Tenant acknowledges having received and read a copy of the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Marinapark Rules and Regulations (Exhibit "B"). B. The Property is currently zoned "Planned Community." There are no conditional use permits or other permits required to operate the Property as a mobilehome park. City owns the Property, but its use may be limited to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. 23. ENTIRE AGREEMENT: This Agreement and the documents referred to herein constitute the entire agreement between Tenant and Owner pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral. Paragraph titles are for identification and reference only and'are not part of this Agreement and shall not be used to interpret this Agreement Each term and provision of this agreement to be performed by the Tenant or which is a duty of the Tenant shall be deemed to be both a condition and a covenant. Additionally, a breach of any each such term and provision shall also be deemed to constitute a rule and regulation for purposes of Civil Code section 79'8.56 and may constitute grounds for the termination of tenancy as a violation of a rule and regulation. 24. NOTICES: All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 17 With a copy to: City Clerk's Office City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have furnished to Tenant; and To Tenant: r By delivering a copy to the Tenant personally; or Tenant be absent from the mobilehome, by leaving a copy -with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobile home and also sending a copy through the mail addressed to Tenant. Since a substantial portion of the present value of Lessee's mobilehome or coach Is attributable to the value of the premises and the and the proximity of the premises to lower Newport Bay, B. Following notice by City of any amendment, all other provisions of the Lease shall remain in full force and effect in their original form. 25. TIME OF ESSENCE: Time is of the essence in this Agreement and each and every provision hereof. 26; EMINENT DOMAIN: If the entire Park, or a portion thereof so that, in City's sole opinion, the balance remaining is not suitable for a mobilehome park, is taken under the power of eminent domain, or is sold to any authority having the power of eminent domain, either under threat of condemnation or while condemnation proceedings are pending, then this Agreement shall automatically terminate on proper notice as of the date the condemning authority takes possession, precondemns, notices its intent to condemn or files a condemnation action or other action which relates thereto. 27. INSURANCE: Owner does not carry public liability or property damage insurance to compensate Tenants, Residents, guests or any other person from any loss, damage or injury except those resulting from situations where Owner would be legally liable for such loss, damage or injury. If Tenants desire such or similar 18 insurance coverage, it should be obtained by Tenants, insuring against loss and casualty by fire, earthquake, flooding, theft, other liability and casualty which relates to the mobilehome, other improvements and contents to full insurable value, personal liability and such other insurance as is necessary and appropriate. Tenants are advised to obtain a homeowner's policy in accordance with the guidelines and requirements specified by a lender, and if no lender, then in such sums and for such coverage as would be so required if so financed. 28. PARTIAL INVALIDITY: r Certain terms and provisions of this Agreement and other documents referred to in this Agreement refer to restate or summarize provisions of the Mobilehome Residency Law and .other applicable laws. In every instance it is intended that these references, restatements and summaries will accurately reflect the law and correctly set forth Tenants' and Owner's rights liabilities duties and obligations to one another and to other persons. The same is true of all of the other provisions of this Agreement and the other documents used by the Park. If any of the provisions of this Agreement or the other documents used by the Park fail in any way to meet the above criteria then it is unintentional and all such provisions shall be deemed to be automatically revised to correctly reflect the Owner's and Tenants' rights, liabilities, duties and obligations under the provisions of the Mobilehome Residency Law and all other applicable laws. Tenants agree to promptly notify Owner in writing of any instance where Tenants believe that any of the provisions of this Agreement or the other documents used by the Park fail to meet the above criteria. If any term or provision of this Agreement or any document referred to in this Agreement or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the remainder of this Agreement or the other document or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Agreement or the other document shall be valid and be enforced to the fullest extent permitted by law. 29. ENTIRE AGREEMENT: A. The resident manager, other personnel, mobilehome dealers, the sales person and seller from whom the mobilehome was purchased by Tenants and other persons are not authorized to make any representations or agreements with Tenants respecting the Community unless those agreements and representations are contained in this Agreement and the other documents and posted signs referred to in it. Therefore, Tenants agree that this Agreement and the other documents and posted signs referred to in it are the entire agreement between Tenants and Owner regarding the subjects covered by this Agreement, other documents and signs. This Agreement, the rules and 19 regulations and the purchase agreement with Owner constitute the exclusive statement of the agreement and supersedes all prior and contemporaneous agreements, representations and understandings. B. Each party has relied on his own examination of this Agreement and counsel of his own advisers, and the warranties, representations and covenants in the Agreement itself. Failure or refusal of either party to inspect the premises or improvement, to read the Agreement or other documents or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention or claim that might have been based on such reading, inspection or advice. Additionally, in any interpretation of this Agreement it shall be deemed that this Agreement and its exhibits were written by both parties. C. It is further agreed by and between the "parties that the legal relationship that exists pursuant to this Agreement is a rental agreement, and that there are not other legal rights or relationships inferred. Tenants warrant and agree that they have .no other rights, title or interest in the property upon which the Park is located or in the above described space other than that which is specifically set forth in this document. 30. DRAINAGE AND GRADING: A. The existing drainage pattern and grading of the space may not be changed without Management's consent. Tenant is responsible for maintaining the space so that water does not accumulate or stand under the mobilehome or on the Space. Water on the space is required to drain off the space in a fashion as to avoid runoff onto another mobilehome space. Tenant shall ensure the skirting attached to the mobilehome is not extended into the grade which would cause moisture or water to accumulate under the mobilehome. All watering sVptems shall be installed, maintained and adjusted as necessary to avoid water run-off and standing water on the premises. Any berms on the space shall be installed and maintained to avoid the accumulation of water on the space or under the mobilehome. Any masonry skirting must contain sufficient openings as to prevent accumulation of water on the space or under the mobilehome. B. Homeowner warrants to that the mobilehome and areas under the mobilehome and homesite are free of and from mold. Homeowner is also responsible for mold cleanup. The mobilehome should be inspected by a competent home inspection contractor periodically. It is imperative to treat and remove all molds as if potentially harmful. Among the conditions to be checked, should be presence of any mold in or about the mobilehome. The following are sources of indoor moisture that may cause problems: flooding, backed -up sewers, leaky roofs, humidifiers, mud or ice dams, damp crawl spaces, constant plumbing leaks, house plants -watering can generate large amounts of moisture, steam from cooking, shower/bath steam and leaks, wet clothes on indoor drying lines, 20 4 . 0 clothes dryers vented indoors, combustion appliances (e.g. stoves) not exhausted to the outdoors. Homeowner is responsible for avoiding any such conditions and for remediation if same should occur. 31. NO THIRD -PARTY RIGHTS: Tenant is not a third -party beneficiary of any other agreement between Owner and anyone. The terms and provisions may differ between rental agreements and rules and regulations in force in the park, and no one may rely on the enforcement of any other's rental agreement or rules and regulations. There - are no third party beneficiaries to this agre(�ment. 32. NO RECORDING: No recording of this Agreement on any memorandum of this Agreement may be made without the prior written consent of Owner, which consent may be withheld in Owner's sole discretion. 33. LOT LINES: "Space" includes the area as defined by the perimeter of the mobilehome and its horizontal projections of its accessory structures. This understanding is based on the public ownership of the property on which the expectations of occupation which Tenant may use and enjoy. Therefore, Tenant may not rely on any markers to define the area of use and enjoyment to be expected due to the rights of the public entitled to entry within the park. 34. ALTERATIONS AND ADDITIONS: Tenant agrees not to make any alterations, improvements, additions or utility installations to, on or about the homesite or mobilehome, nor install, remove or change any existing improvements, or modify the drainage or landscaping nor make any contract for such work without Owner's prior written consent and approval. Tenant is responsible for all conditions under the mobilehome including grading, compaction, subsidence, drainage, moisture, and ventilation. In giving or withholding consent to any such work, Owner may, at its option, consider and base consent or refusal of consent entirely upon aesthetic considerations and the compatibility of such changes to the Community. If Tenant fails to obtain prior written consent and approval, all such alterations, improvements, additions or utility installations shall be promptly removed at Tenant's sole expense, upon Owner request. 35. OPPORTUNITY TO REMEDY: If, at any time, Tenant believes owner has not fulfilled any legal obligations, Tenant agrees to immediately give owner written notice specifying what is 21 believed owner has failed to do and indicating what Tenant believes owner must do in order to fulfill these obligations. This notice shall be as detailed as possible so that owner may fully understand Tenant's concerns. Tenant agrees that owner will have at least ninety (90) days, or such longer period as is reasonably necessary, after receipt of Tenant's notice to remedy the problem(s) Tenant has identified. If Tenant fails to promptly give owner this written notice as soon as Tenant is aware of any problem(s), or Tenant fails to give owner a reasonable opportunity to remedy the problem(s), owner will have no liability to Tenant for any expense, cost, damage or injury which Tenant may sustain as a result of the problem(s). If owner fails to remedy the problem(s) within a reasonable time after receipt of written nonce, the problem(s) will be subject to mediation if such an agreement has been reached between the Parties. 36. ENVIRONMENTAL PROTECTION: A. Proper "hazardous substances" and waste disposal is required of all Tenants. Typical hazardous substances include automobile, boat and motorcycle batteries, household batteries, cleaning fluids and solvents, gasoline, paint and other thinners, oils, brake fluids, transmission fluids, radiator fluids and coolants and petroleum products. No Tenants may keep or store, in any place including within or about the mobilehome, homesite, storage shed or elsewhere in the Community, any hazardous substances in excess of the quantities required for typical single family household use. Additionally, Tenants may not cause any environmental hazard, including any exposure to, contact with, spill or deposit of any hazardous substance or waste. Tenants are prohibited from violating any law relating to environmental protection, hazardous substances or waste. This includes, but is not limited to, for example, changing or discarding auto batteries, oil, brake and radiator fluids, automatic transmission fluid, air .conditioning gases, or grease in any motor vehicle or machine. Tenants may not cause or allow hazardous substances or waste to be disposed of anywhere in the Community, including, but not limited to, trash cans, trash bins, the sewage disposal system, or any other trash or disposal area in the Community. Such substances must be physically removed from the Community and disposed of elsewhere in compliance with law. In the event of any spill or deposit of hazardous substances in the Community, Tenants are required by law to immediately notify management. Management reserves the right to inspect the homesite for hazardous substances. B. In addition to other remedies allowed by law, Tenants will indemnify and hold the Owner harmless for any such environmentally hazardous act or omission prohibited by this rule or law, including any compensatory damages, statutory damages, punitive damages, expense and attorney's fees and costs sustained by the Community. Tenants will also be required to reimburse the Community for any actual attorney's fees, litigation expenses, and costs incurred in defending any action against the Community as a result of any environmentally hazardous act or omission of Tenants, Residents, Guests, Contractors and 22 invitees. For purposes of this rule, "hazardous substances" includes without limitation: (1) Those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant' in federal law including C.E.R.C.L.A., R.C.R.A., T.S.C.A., H.M.T.A., or under any other Environmental Law; (II) Those substances listed in the United States Department of Transportation (D.O.T.) Table [49 C.F.R. 172.101], or by the Environmental Protection Agency (E.P.A.), or any successor agency, as hazardous substances [40 C.F.R. Part 302]; (111) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (IV) Any material, 0aste, or substance that is: (V) a petroleum or -refined petroleum product, (i) asbestos, (ii) polychlorinated biphenyl, (III) designated as a hazardous substance pursuant to 33 U.S.C. § 1321 or listed pursuant to 33 U.S.C. § 1317, (VI) a flammable explosive, or (VII) a radioactive material. 37. COUNTERPARTS: 'This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute but one and the same instrument. 38. NON -RESPONSIBILITY OF PARK: Owner is not responsible to inspect and approve any work done by Tenant or for Tenant by others, including, but not limited to, the installation of the mobilehome, driveway, walkways, fences or any other- equipment or improvements of any type. To the extent that Owner may inspect or approve 'something, .it is for Owner's own purpose only and Tenant is not entitled to rely on, that inspection or approval to ensure that the item has been installed or constructed correctly or that the work has otherwise been done as required. Instead, Tenant is responsible for all required inspections and approvals and Tenant agrees to indemnify and hold Owner harmless from any work which is improperly done. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day and year first above written. Tenant By: CITY OF NEWPORT BEACH a municipal corporation. 23 0 CITY OF a munici PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, entered into this 20`h day of December, 2000, by and between CITY OF NEWPORT BEACH , a Municipal Corporation ("CITY"), and PACIFIC RELOCATION CONSULTANTS whose address is 100 West Broadway, suite 300, Long Beach, California, 90802-4432 ("CONSULTANT"), is made with reference to the following: RECITALS A. CITY is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of CITY. B. CITY considering options for redevelopment of Marinapark property in the CITY("Project"). C. CITY desires to engage CONSULTANT to prepare a Relocation Impact Report ("RIR") for the Project upon the terms and conditions contained in this Agreement. D. The principal members of CONSULTANT, are'for purpose of this Project, is Steve Oliver, Vice President and Edie Gulrich, Relocation Specialist. E. CITY has solicited and received a proposal from CONSULTANT, has reviewed the previous experience and evaluated the expertise of CONSULTANT, and desires to contract with CONSULTANT under the terms of conditions provided in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as follows: 1. TERM The term of this Agreement shall commence on the 1" day of June 2000, and shall terminate on the 151h day of January, 2001, or upon acceptance by the City Council of the RIR unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED CONSULTANT shall diligently perform all the duties set forth in the scope of services, attached hereto as -Exhibit "A" attached hereto and incorporated herein by reference. 1 r • 3. COMPENSATION TO CONSULTANT CITY shall pay CONSULTANT for the services in accordance with the provisions of this Section and the scheduled billing rates, attached hereto as Exhibit "B" and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without prior written approval of CITY. CONSULTANT's compensation for all work performed in accordance with this Agreement shall not exceed the total contract price of Thirteen thousand fifty dollars ($13,050.00). 3.1 CONSULTANT shall maintain accounting records of its billings which includes the name of the employee, type of work performed, times and dates of all work which is billed on an hourly basis and all approved incidental expenses including reproductions, computer printing, postage and mileage. 3.2 CONSULTANT shall submit monthly invoices to CITY payable by CITY within thirty (30) days of receipt of invoice subject to the approval of CITY. 3.3 CONSULTANT shall not receive any compensation for extra work without prior written authorization of CITY. Any authorized compensation shall be paid in accordance with Exhibit "B". 3.4 CITY shall reimburse CONSULTANT only for those costs or expenses which have been specifically approved in this Agreement, or specifically approved in advance by CITY. Such cost shall be limited and shall include nothing more than the following costs incurred by CONSULTANT: A. The actual costs of subCONSULTANTs for performance of any of the services which CONSULTANT agrees to render pursuant to this Agreement which have been approved in advance by CITY and awarded in accordance with the terms and conditions of this Agreement. B. Approved computer data processing and reproduction charges. C. Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by CONSULTANT in the performance of this Agreement. 3.5 Notwithstanding any other paragraph or provision of this Agreement, beginning on the effective date of this Agreement, CITY may withhold payment of ten percent (10%) of each approved payment as approved retention until all services under this Agreement have been substantially completed. V 4. STANDARD OF CARE 4.1 All of the services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with the community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by CITY nor have any contractual relationship with CITY. CONSULTANT represents and warrants to CITY that it has or shall obtain all licenses, permits, qualifications and approvals required of its profession. CONSULTANT further represents and warrants that it shall keep in effect all such licenses, permits and other approvals during the term of this Agreement. 4.2 CONSULTANT shall not be responsible for delay, nor shall CONSULTANT be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish timely information or to approve or disapprove CONSULTANT'$ work promptly, or delay or faulty performance by CITY, contractors, or governmental agencies, or any other delays beyond CONSULTANT's control or without CONSULTANT's fault. 5. INDEPENDENT PARTIES CITY retains CONSULTANT on an independent contractor basis and CONSULTANT is not an employee of CITY. The manner and means of conducting the work are under the control of CONSULTANT, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute CONSULTANT or any of CONSULTANT's employees or agents, to be the agents or employees of CITY. CONSULTANT shall have the responsibility for and control over the details in means of performing the work provided that CONSULTANT is compliance with the terms of this Agreement. Anything in this Agreement which may appear to give CITY the right to direct CONSULTANT as to the details of the performance of the services or to exercise a measure of control over CONSULTANT shall mean that CONSULTANT shall follow the desires of CITY only with respect to the results of the services. 6. COOPERATION CONSULTANT agrees to work closely and cooperate fully with CITY's designated Project Administrator, and any other agencies which may have jurisdiction or interest in the work to be performed. CITY agrees to cooperate with the CONSULTANT on the Project. 7. PROJECT MANAGER CONSULTANT shall assign the Project to a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to CITY at 3 all reasonable times during the Project term. CONSULTANT has designated Steve Oliver to be its Project Manager. CONSULTANT shall not bill any personnel to the Project other than those personnel identified in Exhibit "B", whether or not considered to be key personnel, without CITY's prior written approval by name and specific hourly billing rate. CONSULTANT shall not remove or reassign any personnel designated in this Section or assign any new or replacement person to the Project without the prior written consent of CITY. CITY's approval shall not be unreasonably withheld with respect to removal or assignment of non -key personnel. CONSULTANT, at the sole discretion of CITY, shall remove from the Project any of its personnel assigned to the performance of services upon written request of CITY. CONSULTANT warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 8. TIME OF PERFORMANCE Time is of the essence in the performance of the services under this Agreement and the services shall be performed by CONSULTANT in accordance with the schedule directed by the City Manager. The failure by CONSULTANT to strictly adhere to the schedule, may result in termination of this Agreement by CITY, and the assessment of damages against CONSULTANT for delay. Notwithstanding the foregoing, CONSULTANT shall not be responsible for delays which are due to causes beyond CONSULTANT's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 8.1 CONSULTANT shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition which purportedly causes a delay, and not later than the date upon which performance is due. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays, which are beyond CONSULTANT's control. 8.2 For all time periods not specifically set forth herein, CONSULTANT shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand delivery or mail. 9. CITY POLICY CONSULTANT will discuss and review all matters relating to policy and project direction with the Project Administrator in advance of all critical decision points in order to ensure that the Project proceeds in a manner consistent with CITY goals and policies. 0 10. CONFORMANCE TO APPLICABLE REQUIREMENT All work prepared by CONSULTANT shall conform to applicable CITY, county, state and federal law, regulations and permit requirements and be subject to approval of the Project Administrator and CITY. 11. PROGRESS CONSULTANT is responsible to keep the Project Administrator and/or his/her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 12. HOLD HARMLESS CONSULTANT shall indemnify, defend, save and hold harmless CITY, its CITY Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claims, allegations of liability, suits, costs and expenses for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, property damages, or any other claims arising from any and all negligent acts or omissions of CONSULTANT, its employees, agents or subcontractors in the performance of services or work conducted or performed pursuant to this Agreement, excepting only the sole negligence or willful misconduct of CITY, its officers or employees, and shall include attorneys' fees and all other costs incurred in defending any such claim. 13. INSURANCE Without limiting CONSULTANT's indemnification of CITY, and prior to commencement of work, CONSULTANT shall obtain and provide and maintain at its own expense during the term of this Agreement policy or policies of liability insurance of the type and amounts described below and satisfactory to CITY. Certification of all required policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with CITY prior to exercising any right or performing any work pursuant to this Agreement. Except workers compensation and errors and omissions, all insurance policies shall add CITY, its elected officials, officers, agents, representatives and employees as additional insured for all liability arising from CONSULTANT's services as described herein. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Bests Key Rating Guide: unless otherwise approved by the CITY Risk Manager. 5 A. Worker's compensation insurance covering all employees and principals of CONSULTANT, per the laws of the State of California. B. Commercial general liability insurance covering third party liability risks, including without limitation, contractual liability, in a minimum amount of $1 million combined single limit per occurrence for bodily injury, personal injury and property damage. If commercial general liability insurance or other form with a general aggregate is used, either the general aggregate shall apply separately to this Project, or the general aggregate limit shall be twice the occurrence limit. C. Commercial auto liability and property insurance covering any owned and rented vehicles of CONSULTANT in a minimum amount of $1 million combined single limit per accident for bodily injury and property damage. D. Professional errors and omissions insurance which covers the services to be performed in connection with this Agreement in the minimum amount of Dollars ($ ). Said policy or policies shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days' prior notice has been given in writing to CITY. CONSULTANT shall give CITY prompt and timely notice of claim made or suit instituted arising out of CONSULTANT's operation hereunder. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. CONSULTANT agrees that, in the event of loss due to any of the perils for which it has agreed to provide comprehensive general and automotive liability insurance, CONSULTANT shall look solely to its insurance for recovery. CONSULTANT hereby grants to CITY, on behalf of any insurer providing comprehensive general and automotive liability insurance to either CONSULTANT or CITY with respect to the services of CONSULTANT herein, a waiver of any right of subrogation which any such insurer of said CONSULTANT may acquire against CITY by virtue of the payment of any loss under such insurance. 14. PROHIBITION AGAINST TRANSFERS CONSULTANT shall not assign, sublease, hypothecate or transfer this Agreement or any for the services to be performed under this Agreement, directly or indirectly, by operation of law or otherwise without prior written consent of CITY. Any attempt to do so without consent of CITY shall be null and void. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of CONSULTANT, or of the interest of any general partner or joint venturer or syndicate member or cotenant if CONSULTANT is a partnership or joint -venture or syndicate or cotenancy, which shall result in changing the control of CONSULTANT, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power, or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. 15. OWNERSHIP OF DOCUMENTS Each and every report, draft, work product, map, record and other document reproduced, prepared or caused to be prepared by CONSULTANT pursuant to or in connection with this Agreement shall be the exclusive property of CITY. Documents, including drawings and specifications, ,prepared by CONSULTANT pursuant to this Agreement are not intended or represented to be suitable for reuse by CITY or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from CONSULTANT will be at CITY's sole risk and without liability to CONSULTANT. Further, any and all liability arising out of changes made to CONSULTANT's deliverables under this Agreement by CITY or persons other than CONSULTANT is waived against CONSULTANT and CITY assumes full responsibility for such changes unless CITY has given CONSULTANT prior notice and has received from CONSULTANT written consent for such changes. CONSULTANT shall, at such time and in such form as CITY may require, furnish reports concerning the status of services required under this Agreement. 16. CONFIDENTIALITY The information, which results from the services in this Agreement, is to be kept confidential unless the release of information is authorized by CITY. 17. CITY'S RESPONSIBILITIES In order to assist CONSULTANT in the execution of his responsibilities under this Agreement, CITY agrees to provide access to, and upon request of CONSULTANT, one copy of all existing of record information needed by Consultant to prepare the report. CONSULTANT shall be entitled to rely upon the accuracy of data information provided by CITY or others without independent review or evaluation. CITY will provide all such materials in a timely manner so as not to cause delays in CONSULTANT's work schedule. 7 18. ADMINISTRATION This Agreement will be administered by the Deputy City Manager, who shall be considered the Project Administrator and shall have the authority act for CITY under this Agreement. The Project Administrator or his/her authorized representative shall represent CITY in all matters pertaining to the services to be rendered pursuant to this Agreement. 19. RECORDS CONSULTANT shall keep records and invoices in connection with the work to be performed under this Agreement. CONSULTANT shall maintain complete and accurate records with respect to the costs incurred under this Agreement. All such records shall be clearly identifiable. CONSULTANT shall allow a representative of CITY to examine, audit and make transcripts or copies of such records during normal business hours. CONSULTANT shall allow inspection of all work, data, documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 20. WITHHOLDINGS CITY may withhold payment of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. CONSULTANT shall not discontinue work as a result of such withholding. CONSULTANT shall have an immediate right to appeal to the CITY Manager or his designee with respect to such disputed sums. CONSULTANT shall be entitled to receive interest on any withheld sums at the rate of seven percent (7%) per annum from the date of withholding of any amounts found to have been improperly withheld. 21. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of CONSULTANT which result in expense to CITY greater than would have resulted if there were not errors or omissions in the work accomplished by CONSULTANT, the additional design, construction and/or a restoration expense shall be borne by CONSULTANT. Nothing in this paragraph is intended to limit CITY's rights under any other sections of this Agreement. 22. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS CITY reserves the right to employ other CONSULTANTs in connection with the Project. 23. CONFLICTS OF INTEREST A. The CONSULTANT or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act"), which (1) requires such persons to disclose financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making decisions that will foreseeably financially affect such interest. B. If subject to the Act, CONSULTANT shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for termination of this Agreement by CITY. CONSULTANT shall indemnify and hold harmless CITY for any and all claims for damages resulting from CONSULTANT's violation of this Section. 24. SUBCONSULTANT AND ASSIGNMENT A. Except as specifically authorized under this Agreement, the services included in this Agreement shall not be assigned, transferred, contracted or subcontracted without prior written approval of CITY. 25. NOTICES All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from CONSULTANT to CITY shall be addressed to CITY at: Dave Kiff, Deputy City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92658-8915 949-644-3002 949-644-3020 (fax) �9 All notices, demands, requests or approvals from CITY to CONSULTANT shall be addressed to CONSULTANT at: Attention: Steve Oliver, Vice -President PACIFIC RELOCATION CONSULTANTS 100 West Broadway Suite 300 Long Beach, CA, 90802-4432 (562)590-8564 (562) 495-0889 (fax) 26. TERMINATION In the event either part hereto fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) days, or if more than two (2) days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the nondefaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 26.1 CITY shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) days' prior written notice to CONSULTANT as provided herein. Upon termination of this Agreement, CITY shall pay to the CONSULTANT that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. 27. COMPLIANCES CONSULTANT shall comply with all laws, state or federal and all ordinances, rules and regulations enacted or issued by CITY. 28. WAIVER A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 29. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the Parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or 10 E implied covenant shall be held to vary the provisions herein. Any modification of this Agreement will be effective only by written execution signed by both CITY and CONSULTANT. 30. PATENT INDEMNITY The CONSULTANT shall indemnify CITY, its agents, officers, representatives and employees against liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in CONSULTANT's drawings and specifications provided under this Agreement. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM AND CONT Robin Clauson. Assistant City Attorney ., -1 - 1-- LaVonne Harkless CITY Clerk F:\catkda\Ag\PacificRelocation.doc da\06-05-00 CITY OF NEWPORT BEACH A Municipal Corporation By. Q-- Homer L. Blud u, City Manager for the City of Newport Beach 11 0 0 Pacific Relocation Consultants - City of Newport Beach - Marinepark Agreement Exhibit "A" Scope of Services 1. Interview residents at the Marinepark property to ascertain their relocation needs and the impact of the project on displaced residents. 2. Survey local resources available for replacement housing. 3. Prepare a written Relocation Impact Report to conform with the section 65863.7 of the California Government Code. Pacific Relocation Consultants - City of Newport Beach - Marinepark Agreement Exhibit `B" Schedule of Billing Rates Corporate Officer $110.00/hour Senior Associate/Project Manager $90.00/hour Associate/Relocation Specialist $75.00/hour Technical Support $50.00/hour Administrative/Secretarial $35.00/hour t 3-/'C?-0-) Local 6. 0 EDITORIALS The O. .High. Newport living, Inland Valley prices Vs not hard to understand why residents of Marinapark on Newport Beach's Balboa ,peninsula are trying to stir a fuss about the city's plan to raise rents,on their beachfront, , bay -view mobile home lots. Who, wouldn't want to hang on to ev- ery last moment at that idyllic setting? At issue tonight at the City Council is whether to bring the subsidized rents up closer to mar- ket rates, which would mean a near -doubling of rents for those', who now pay as little as $865 a month for their sites. The plan would extend their lease for a year. • ,The rent increases would be a transition from the current sit- uation, in which "coach" owners enjoy subsidized bayfront views, to.the reality, in which the city reclaims land it first acquired in 1919. The city is pushing forward a.private development project that ,would lease,the land to a de-' velopei,-who would turn the site info a 147-rdom luxury hotel. . Some residents are complaining about the increases, and decrying the "unfairness" of what the city is doing to seniors. Some are lob- bying for a three-year lease ex- ' tension; and they are all hoping for long-term extension; such as . the one passed 17 years ago. But Marinapark residents are just de- laying the inevitable. : The city attempted, to take back its land in 1985, at which time residents first put up a fuss. As a. way to compensate owners for their investments in the site and provide plenty of time for owners to,make plans to leave the prop- erty,'the city approved 15-year leases at rental rates'•that were well below market prices. When the 15 years were up, the leases ' Were extended until March 31, 2002. 'q r .The owners knew wheh the end date would come: Once their leases expired, their homes had little value,'The long-term exten- sion granted them 17\y, azs to plan- for the future or to emay the subsidized rents. Many of the cu}'rent mobile -home owners bought their homes after 1985, with the full knowledge that it was a temporary situation. Think about how much it costs to rent a. beach house in Newport Beach for a week. No wonder some peo-' pie would still invest in a proper- ty knowing they could only enjoy it for a,few years. Furthermore, only about 15,of ; the park's 56 residentsIve three" full time. The latest lease1equires full-time'living, but nearly three-quarters of mobile kome owners there -use their properties as second homek-or even, in at .least one case, a third home. In some cases, it's the lives of the rich and famous that will, be in- convenienced, not a situation - where poor folks will be kicked out onto the street. Stephen Sutherland,.the New- port Beach developer who,is planning the liotel project,at the site, told -us he doesn't oppose -the one-year lease een that it wouldn't d a his prole . The hotel still must d- by the city's voters in, the ;wake of the Greenlight initiaiive, which requires a vote on major projects. W. Sutherland said'residents al- ready have been compensated for their investment in the',form.of r subsidized leases. for. many years. Even Stewart Berkshire, ;pzesi- . dent of the Marinapark.home owners association, admits that residents there have nothing much to complain about. The terms of their leases are clear: In fact, Mr. Berkshire bought•the place in 1987 knowing that he on- ly had 13 years left to live there before the land reverted back to ,the city. When an editorial writer suggested -that residents were liv- ing on the:bayfront at 6 price of Moreno Valley, he respb ded. "No question abouvit ; Then there,shouldn't We much debate tonight. lvlarinapaik has been a beautiful place,to live; but residents there know the score and have been well compensated thanks to thecity'&taxpayers.' The City Council should increase the Tents to market rates for a year, and residents need to begin ending new places to live, Page 1 of i Oborny, Shirley From: Bludau, Homer Sent: Wednesday, November 12, 2003 1:58 PM To: Kiff, Dave; Clauson, Robin; Wood, Sharon Cc: Oborny, Shirley; Lektorich, Debbie Subject: RE: Marinapark Rent Appraisal Sounds like we should. Both Robin and Sharon are off today, and Sharon for the rest of the week. I will get Debbie to coordinate a meeting. Homer -----Original Message ----- From: Kiff, Dave Sent: Wednesday, November 12, 2003 12:05 PM To: Clauson, Robin; Bludau, Homer; Wood, Sharon Cc: Oborny, Shirley Subject: Marinapark Rent Appraisal You may recall that we recently hired John Neet to give us an appraisal of what market rent should be at Marinapark. Here is his response along with current rent: . As and Bs -- Current = $1,550; Appraised = $2,400 . Cs and Ds -- $ 1,125; Appraised= $2,000 . Es -- $ 1,050; Appraised= $1,900 Wearing my income properties hat,1 would tend to advocate for the market rate increase. Doing so would mean a $567,000 increase in revenue annually ($1,417,200 proposed rent less $849,900 currentrent = $567,300 difference). But Robin knows it's not that simple, especially given the dialogue she has had with the tenants' counsel. Should we meet to talk about how we might apply a rent increase and at what level it should be? 11/17/2003 JOHN R NEET, mm APPRAISAL & CONSULTING SERVICES FOR MANUFACTURED HOUSING COMMUNITIES AND RV PARKS November 9, 2003 Mr. Dave Kiff, Assistant City Manager City of Newport Beach 3300 Newport Blvd, Newport Beach, CA 92553-3884 Re: MarinaPark Mobile Home Park, 1770 W. Balboa Blvd., Newport Beach, CA Market Site Rental Estimate fk)r", fil As requested and authorized, I have appraised the captioned property for the purposes of expressing my opinion of its market rental value as defined herein. As a result of my investigation and analysis, it is my conclusion that the market rental value of the subject property, as of October 15, 2003 and subject to the assumptions, certification, and limiting conditions stated herein, was TIERS A & B (Waterfront) ............................ $2,400/Month TIERS C & D (Partially Obstructed Water View) ..........$2,000/Month TIER E (Narrow Water View) .......................... $1,900/Month This appraisal has been made in conformity with the Standards of Professional Practice and Code of Ethics of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice (USPAP). The scope of the appraisal is defined as complete. The scope of appraisal services agreed to include the following investigation and analysis: • The mobile home park was inspected to determine the extent of its physical features, the quality of the water views available from each of the rented mobile home sites, and the physical condition of the park owned improvements. • Surveys of competitive, investor owned mobile home parks with similar locations and features were conducted to determine current rental rate ranges as wells as the rates charged for new move -ins and transfers. • This market data was analyzed and compared to the subject spaces to estimate the market rental value of the individual sites. This letter is part of the attached summary report, which contains summary descriptions of the subject property, summary of factual data considered, and a summary of my analysis of that data upon which the value conclusion is predicated. Please refer to the limiting conditions, certification, and assumptions attached to this letter. Respectfully submitted, John P. Neet, MAI California General Appraisal Cerflficate No. AG003494; Expires 3/14/2004 41919 MORENO ROAD, SUITE C P.O. Box 1379 TEMECULA, CA 92590 LAKE ELSINORE, CA 92531 (909) 695-0313 FAx (909) 494-4019 jpneet@inland.net r JoHN P. NEET, MAi Purpose and Intended Use of the Appraisal The purpose of the appraisal is to provide an estimate of market rental value as defined below. This appraisal does not meet the standard of a complete appraisal as set forward in the Uniform Standards of Professional Appraisal Practice, as it does not include an estimate of the market value of the property. The intended use of the limited appraisal is to determine market rent for the purposes of negotiations with the tenants of the property. This appraisal is not intended to be used in a federally related transaction. Definition of Value to be Estimated Market Rent -The rental income that a property would most probably command in an open market; formerly called economic rent.' Exposure Time Assumptions The market rent estimated herein presumes an exposure time of 30-60 days, which appears to be a reasonable assumption based on market data reviewed for this appraisal. Personal Property None considered in appraisal. Appraiser Competency The principal appraiser holds general appraiser certificates in this and other states, and is the holder of the MAI designation, indicating the base qualifications needed to appraise properties of this level of complexity. As pertaining to this property type, the principal appraiser has performed appraisal and counseling assignments involving over 800 mobile home parks and RV parks, and as a result of this experience is well qualified to complete this valuation assignment. Property Description The subject property consists of a 58-space mobile home park located on 4.34 acres of land with 924' of frontage on Newport Bay. This location is on Balboa Peninsula, an upscale residential and resort district with median detached housing price of $825,0002. A public beach area is located between the mobile home park and the Bay. On -site amenities and resident service facilities include a private parking area for tenants and guests and a single building housing restrooms, shower facilities and a laundry room. The park does not have a pool or central recreation facility, although city owned public tennis courts are located abutting the property. The physical condition of the park appears to be good, with no significant deferred maintenance noted. Rules enforcement is also considered good, with minimal negative factors noted on the individual rented sites. As of the date of inspection, 56 of the 58 spaces were occupied. The owner of the property (City of Newport Beach) has not marketed the vacant sites for rent due to the impending closure of the park Two spaces are located between the park exclusive parking area and the city owned public parking lot on Balboa Boulevard, and are not considered in this analysis, as these spaces are occupied by park personnel. One space included in the analysis (2E) is currently occupied by the park manager. There are 53 sites currently occupied by rent paying tenants. Market Rent Valuation -Survey of Comparable Parks Other water (beach and marina) oriented mobile home parks in central and southern Orange County were surveyed to determine current rental rates. A summary of those surveys is included on the following page. 1 Uniform Standards of Professional Appraisal Practice, 2003 Edition Z Source: Dataquick information Services 2 JOHN P. NE-r, MAI ... , PARK NAME Marina Park Cannery Village Lido Peninsula Bayside Village Dana Point Marina Laguna Terrace Capistrano Shores Resort MHP ADDRESS 1770 W. Balboa 700 Lido Park, 710 Lido Park, 300 E, Coast 34204 Del Obispo, 30802 S. Coast 1880 N. El Camino Blvd., Newport Newport Beach Newport Beach Highway, Newport Dana Point Hwy, Laguna Real, San NO.SPACES Beach 58 34 214 Beach 270 Beach Clemente APPROX. AGE +/-40 Eff. New 51 40 91 38 155 46 91 35 AGE RESTRICTION NAR NAR NAR NAR NAR NAR NAR OCCUPANCY 97% 50% 95% 99% 100% 100% 100% PARK SERVICES, FEATURES, Restrooms, Laundry, Manna,Spa & Recreation Center, Recrealub Cenler,2 Laundry, Playground, Recreation Center, Recreation Center, & AMENITIES Direct Beach Access Restrooms Pool, Spa, Direct Pools, 2 Spas, Marina Pool, Recreation Pool, Spa, Laundry Laundry, Direct Beach Beach Access Center Access RENTAL RATES: RENT RANGE -LOW $1,050.00 $990.00 $1,125.00 $1,200.00 $900.00 $800.00 $2,200.00 RENT RANGE -HIGH $1.550.00 $2.400.00 $3,780.00 $2,500.00 $1.275.00 $2,273.00 $2,400.00 APPROX.AVG.RENT $1,292.00 $1,363.00 $1,400.00 $1,400.00 $1,055.00 $1.300.00 $2,300.00 TRANSFER RATE -LOW $1,050.00 $990.00 $1,125.00 $1,400.00 $1,276.00 $1,300.00 $2,200.00 TRANSFER RATE -HIGH $1,550.00 $2,400.00 $3,380.00 $2,600.00 $1.275.00 $2.700.00 $2,400.00 NEW MOVE -IN RATE -LOW NA $990.00 $1.125.00 $1.400.00 $1,275.00 $1,300.00 $2,200.00 NEW MOVE -IN RATE -HIGH NA $2.700.00 $3,780.00 $2,600.00 $1,275.00 $2.700.00 $2,400.00 LESSOR PAID SERVICES None None Sewer,Trash Waler,Sewer,Tmsh None Trash Water, Sewer, Trash ADJUSTMENT $0.00 $0.00 -$30.00 -$45.00 $0.00 vs15.oD -$45.00 ADJUSTED RATES: RENT RANGE -LOW $1,050.00 $990.00 $1,095.00 $1,155.00 $900.00 $785.00 $2,155.00 RENT RANGE -HIGH $1,550.00 $2,400.00 $3,750.00 $2,455.00 $1,276.00 $2,258.00 $2,355.00 APPROX. AVG. RENT $1,292.00 $1,363.00 $1,370.00 $1,355.00 $1,055.00 $1,285.00 $2,255.00 TRANSFER RATE -LOW $1,050.00 $990.00 $1,095.00 $1,355.00 $1,275.00 $1,285.00 $2,155.00 TRANSFER RATE -HIGH $1,550.00 $2,400.00 $3,350.00 $2,555.00 $1,275.00 $2,685.00 $2,355.00 NEW MOVE -IN RATE -LOW $990.00 $1,095.00 $1,355.00 $1,275.00 $1,285.00 $2,155.00 NEW MOVE -IN RATE -HIGH $2,70D.00 $3.760.00 $2,555.00 $1,275.00 $2,685.00 $2,355.00 RENTAL AGREEMENT None Longterm leases Lon term lease 5,10,30 Yr leases 1 yr. lease 30 yr lease Month to Month INCREASES None in Annual CPI Annual CPI Annual Annual Annual Annual Agreement RENT CONTROL None None None None None None None QUALITY Average Good Good -Average -Average Ave -rage Average CONDITION Good Good Good Good Good Good Good COMMENTS - New mnsWction,All Combination of new 2 Former55+park, Beach access ma river Hillside location. Direct Twoberparkon new two story story manufactured overted to all age park channel. No views. ocean views. beach Second bet has manufactured homes homes and older in 2001 partiallyobscured trailers. ocean views. 3 1• LI 0 off N P. NEEr., mAi Valuation -Summary of Analysis In the analysis, an adjustment is made to account for the differences in utility provisions, and the adjusted rates are used as the basis of comparison. Three of the comparables are located in Newport Beach, and share that locational attribute with the subject. Both Lido Resort and Cannery Village are located on Newport Bay, similar to the subject. Bayside Village is located on Newport's Back Bay, considered a similar locale. Premium view locations in each of these properties are considered similar to the subject, although the views from the subject are somewhat more expansive. The less valuable locations in these comparables do not have the same view amenities as the second and third tier units in the subject. The Dana Point Marina sites are considered the absolute lower limit indicators due to the lack direct beach/marina access; for this park and lack of water views from the individual sites. The location is also considered less attractive than the location of the subject as it is located east of Coast Highway in a commercial locale with a municipal sewer plant located adjacent. Laguna Terrace has no direct access to the water, except via public access through a new oceanfront development located opposite Coast Highway. This park is located on a hillside east of Coast Highway, and many of the sites have spectacular views. These are considered a trade-off for the bay views in the subject, but the lesser beach access renders this an inferior alternative. Capistrano Shores is considered very similar to the subject in many respects, but does not have the Newport Beach location and address, a negative factor. Like the subject, this park is arranged in tiers, with the upper tier having partially obscured views relative to the beachfront tier. The view is of the open ocean, not the bay. Based on my analysis of these rentals, I have concluded the following market rental rates as appropriate for the sites in the subject: • Tier A & B sites are substantially similar to the direct water view sites in the Newport Beach alternative properties. By comparison, the primary negative factor associated with the subject is the lack of parking available on the individual homesite. Adequate parking is available in the development, and the impact of this item would have far less impact on market rental rates than the positive locational features, primarily the direct bay views and the direct beach access. I have concluded that a market rental rate of $2,400 per month based on the current expense arrangement is appropriate for these sites. • Tier C & D sites are considered inferior as the available water views from these sites are substantially obscured by the front tier site improvements. The bay views are indirect, but available. This marks the sites as superior to the non -view sites in the other Newport Beach parks, and an indication of the level of discounting is noted in the data from Capistrano Shores. I have concluded that a market rental rate of $2,000 per month based on the current expense arrangement is appropriate for these sites. Tier E sites are located lateral to the beachfront while the forward sites are located perpendicular to the beachfront. These sites are located further from the beach than the more forward sites, but due to the arrangement of sites, have a direct view over the common area to the water. As such, the views are more direct than the C & D sites, but from a greater distance. The Tier E sites do 3 Dana Pont Marina does offer a hiking trail along a drainage channel easement that reaches the public beach. 1 0 JOHN P. NEEr, MAI have closer proximity to the parking area, a convenience factor. I have concluded a market rental rate of $1,900 per month based on the current expense arrangement is appropriate for these sites. 5 JOHN P. Nor, MAI Certification I certify to the best of my knowledge and belief: • The statements of fact contained in this report are true and correct; • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions; • I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the property or the parties involved; • My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of a client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event; • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute and the Uniform Standards of Appraisal Practice (USPAP) with the exception of departures from specific requirements as noted; • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives; • As of the date of this report I, John P. Neet, MAI have completed the requirements of the continuing education program of the Appraisal Institute; • The appraiser has made a personal inspection of the property that is the subject of this report; • No person provided significant professional assistance to the signatory of the report, with the exception of Conan Egan, who assisted in the collection and verification of factual data. • The requirements of the competency provision of USPAP have been met for the purposes of this appraisal assignment. (;:A N, Jqfin P. Neet, MAI California General Appraisal Certificate No. AG003494; Expires 3/14/2004 6 r� oHN P. NEEr,, mAI Assumptions & Limiting Conditions The Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute requires the appraiser to "clearly and unequivocally set forth all facts, assumptions, and conditions upon which the appraisal is based." In compliance with this requirement, and to assist the reader in interpreting this report, the general assumptions and limiting conditions are set forth as follows: 1. The date to which the conclusions and opinions expressed in the report apply is set forth in the body of this report. Further, the dollar amount of any opinion herein rendered is based upon the purchasing power of the American dollar as of that date. 2. The information furnished by others is believed to be reliable, however, no warranty is given for its accuracy. Any income and expense records relating to the subject property that has been provided is assumed to be accurate as presented. 3. I reserve the right to make such adjustments to the analyses, opinions, and conclusions set forth in this report as may be required by consideration of additional data or more reliable data that may become available. 4. No opinion as to the validity of the title is rendered. Title is assumed to be marketable, free and clear of all liens and encumbrances, easements and restrictions, except those specifically discussed in the report. 5. The property is appraised assuming that is under responsible ownership and competent management. 6. All engineering is assumed to be correct. The illustrative material in this report is included only to assist the reader in visualizing the property. 7. It is assumed that there are no hidden or unapparent conditions of the property, the subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging the engineering studies that may be required to discover such conditions. 8. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless non-compliance is stated, defined, and considered in the appraisal report. 9. It is assumed that all zoning and use regulations and restrictions have been complied with, unless non -conformity is stated, defined, and considered in the appraisal report. 10. It is assumed that all licenses, certificates of occupancy, consents or other legislative or administrative authority from any national, state, or local government or private entity or organization have been or can be obtained for any use upon which the value estimate contained in this report is based. 11. It is assumed that the utilization of land and improvements is within the boundaries or property lines of the land described and that there is no trespass or encroachment except as noted in the report. 12. No opinion is expressed as to the value of the subsurface oil, gas, or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials, except as expressly stated. 13. No opinion is expressed for matters that require legal, engineering, or other specialized knowledge beyond that customarily employed by real estate appraisers. 14. No responsibility is assumed for determining the effect of possible natural disasters or other such occurrences upon the individual property. 7 JOHN P. NEFF, MAI 15. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 16. I am not required to give further consultation, testimony, or to be in attendance in court with reference to the property in question unless arrangements have been previously made. The client is notified that any such further consultation, testimony, or attendance in court will be at my discretion and will be predicated upon the payment of an additional fee. 17. No termite inspection report was provided. It is presumed that there is not significant termite damage or infestation unless otherwise stated. 18. No consideration has been given to the value of any personal property located upon the subject property, except as otherwise stated in the report. 19, The plans and specifications, upon which this valuation is predicated, are assumed to show the intent of the builder, but I assume no responsibility for the correctness, or for any undisclosed modifications. 20. The issue of compliance with the ADA (Americans with Disabilities Act) is beyond the scope of this appraisal. It is my recommendation that the client retain the services of a qualified expert in the field of ADA compliance to determine if the property conforms to the requirements of the ADA, and to determine the impact of noncompliance upon the use and utility of the subject improvements. The appraiser assumes the compliance of the subject property to the ADA, as such knowledge is beyond my knowledge and expertise. 21. ENVIRONMENTAL HAZARDS DISCLAMER-The following disclaimer is made in accordance with Guide Note 8 adopted by the Governing Council of the American Institute of Real Estate Appraisers on May 3, 1989 and Advisory Opinion G-9 issued by the Appraisal Standards Board of the Appraisal Foundation on December 8, 1992; and is intended to provide notice to the client of my lack of knowledge and expertise in the area of environmental hazards. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl's, petroleum leakage, or agricultural chemicals, which may or may not be present on the properly, or other environmental conditions, were not called to the attention of nor did I become aware of such during the inspection. I have no knowledge of the existence of such materials on or in the property unless otherwise stated. I am not qualified to test such substances or conditions. It is recommended that the client consult with an environmental hazard expert before making any decision regarding this property. The value estimated is predicated upon the assumption that there is no such condition on or in the property or in such proximity thereto that would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise of knowledge required to discover them. The appraiser is not an expert in the field of hazardous materials. This appraisal does not constitute an expert inspection of the property for environmental or health hazards. The only way to be certain as to the condition of the property with respect to "environmental hazards" is to have an expert in the field inspect the property. This appraisal should not be relied upon as to whether environmental hazards exist on or near the property. It is the appraiser's recommendation that a Phase 1 Environmental Assessment be obtained on this or any other property prior to making any monetary decision involving the property to determine the potential for environmental hazards. PROFESSIONAL QUALIFICATIONS/CURRICULUM VITAE 0 PROFESSIONAL QUALIFICATIONS JOHN P. NEET, MAI LICENSES AND MEMBERSHIPS: Appraisal Institute Member -Designation No. 7728; Currently certified under the Appraisal Institute's mandatory continuing education requirements Licensed Real Estate Appraiser California Certified General Appraiser No. AG003494, Certified through 3/2004 Arizona Certified General Appraiser No. 31052, Certified through 4/2005 Nevada Certified General Appraiser No. 04661, Certified through 5/31/2005 Temporary Certifications Obtained in Washington, Oregon, Texas Licensed Real Estate Broker Texas Brokers License No. 322708 1988-Present John P. Neet, MAI, Real Estate Appraiser & Consultant Owner of firm specializing in multi -disciplinary valuation and consultation. Areas of special emphasis include income producing properties with a primary concentration on manufactured housing communities and RV parks, public acquisition valuations, valuations for rated and un-rated bond issues and resident conversions, expert testimony, and appraisal review. Non -appraisal experience includes cash flow projections, rent control financial analysis and consultancy, market studies and analysis, and financial performance analysis for manufactured housing communities and RV parks. Qualified as an expert in United States District Court, in state courts in Orange, Riverside, San Diego, and San Bernardino Counties in California and Federal Bankruptcy Courts in California, Texas, and Nevada. 1981-1987 Terrence F. Wood & Co. Corpus Christi, Texas Appraisal and review of all types of properties; special emphasis on income producing, development, and resort properties; expert testimony in bankruptcy and foreclosure proceedings. Qualified as an expert in Nueces County district courts and Federal Bankruptcy Courts. 1978-1980 Home Savings and Loan Los Angeles, California Chief Appraiser, Conventional Loans -Manager in charge of training and review of appraisal staff. Staff Appraiser -valuation of single and multi -family properties. EDUCATION: CALIFORNIA STATE UNIVERSITY AT NORTHRIDGE Business Administration APPRAISAL INSTITUTE Courses 101, 102, and 201 (SREA) Courses 1-A, 1-B, 2-1, 2-2, 2-3 (AIREA) Courses 410, 420, 700 (AI) INTERNATIONAL RIGHT OF WAY ASSOCIATION Easement Valuation RECENT SEMINARS: USPAP Updates, FIRREA Requirements, Standards of Professional Practice Updates, Annual Litigation Seminars & Updates, Apartment Valuation, Appraiser Licensing and Certification, HP12-C Seminar, Land Regulation Workshop, Easement Valuation Seminars, Retail Workshop, Limited Appraisals and Report Writing Options, Annual Regional Economic Forecast Workshops & Seminars, Manufactured Housing Community Law Seminars and Operations seminars, Regression Analysis Sun Meadows Sun City, CA Sandalwood MHP Santa Ana, CA Sierra Vista MHP Palmdale, CA Huntington Valley Huntington Beach, CA Rialto Parksids Villas Rialto, CA Tokay Manor Mobile CC Fontana, CA The Valley MHP Beaumont, CA Buena Park Manor Buena Park, CA Castles La Verne MHP La Verne, CA Silver Spur Mobile Manor Palm Desert, CA Bahia Trailer Villa Garden Grove, CA Colonial Country Club Hemet, CA Cedar Village MHP Bloomington, CA Hilicrest Mob. Est Yucaipa, CA Lamplighler MHP Camarillo, CA The Park Estates Hemet, CA Windward Village Long Beach, CA Santiago Estates Sylmar, CA Diamond Valley Hemet, CA Lamplighter Oceanside, CA Rancho Brea Brea, CA Hyde Park MHP Santa Ana, CA Partial List Of Appraisal, Analysis, & Counseling Assignments Completed By John P. Neet, MAI Hemet West Mobile Est, Hemet, CA Huntington Valley MHP Huntington Beach, CA Mountain View Mob. Est. Upland, CA Villa Valencia Mob. Est Tustin, CA Calllente Sand MHP Cathedral City, CA Avalon MHP Yucaipa, CA Champagne Village MHP San Diego County Chaparral Heights MHP Rancho Cucamonga, CA Park Manor Mob. Est Glendora, CA Villa Cajon MHP San Diego, CA El Monte Mobilaire MHP So. El Monte, CA Crest Mobile Manor Pomona, CA Kimberly Gardens MHP Lake Forest, CA Bonanza Mob Est Yucaipa, CA Creekside MH Estates Riverside County Hacienda MHP Palcentia, CA Paradise Cove MHP Malibu, CA Gemstone MHP Acton, CA The Californian MHP Calimesa, CA Western Hills Est. MHP Chino Hills, CA Santiago Sunset Estates Kennewick, WA Santiago Cherry Hill Kennewick, WA Oxnard Shores MHP Oxnard, CA The Village MHP Apple Valley, CA Meadowlake CC Oxnard, CA Desert Rose MHP Rosamond, CA Country Squire Mob, Est Moreno Valley, CA Stoneddge MHP Santa Ana, CA Friendly Village MHP Lancaster, CA High Desert MHP Rosamond, CA Stallion Meadows MHP Acton, CA Plantation Mob. Est Anaheim, CA Summit Ridge Mob. Est. San Diego, CA Bellwood MHP Bellflower, CA Acacia Village MHP San Bernardino, CA Hide -Away Lake ValleyCenter, CA Mission Hills MHP Mumeta, CA Royal Oak MHP Los Alamitos, CA Rancho Glen MHP Fallbrook. CA Palomar Estates East San Marcos, CA Palomar Estates West San Marcos, CA Nu-WayTrailer Park Carson, CA Lakeside Village MHP Salem, OR Lakeview Mob. Est. San Marcos, CA Oxnard Shores MHP Oxnard, CA The Village MHP Apple Valley, CA Meadowlake CC Oxnard, CA Desert Rose MHP Rosamond, CA Country Squire Mob. Est. Moreno Valley, CA Stonendge MHP Santa Ana, CA Friendly Village MHP Lancaster, CA High Desert MHP Rosamond, CA Stallion Meadows MHP Acton, CA Plantation Mob. Est. Anaheim, CA Summit Ridge Est. San Diego, CA Bellwood MHP Bellflower, CA Acacia Village MHP San Bernardino, CA Hide -Away Lake ValleyCenter, CA Mission Hills MHP Munieta, CA Royal Oak MHP Los Alamitos, CA Rancho Glen MHP Fallbrook . CA Palomar Estates East San Marcos, CA Palomar Estates West San Marcos, CA Bonita Village National City, CA Valley of Dreams Trailer Pk Santiago Estates Leucadia, CA Bakersfield, CA Nu -Way Trailer Park Carson, CA Lakeview Mob Est San Marcos, CA La Verne Mobile CC La Verne, CA Berrydale Trailer Villa Garden Grove Rancho La Puente La Puente, CA Rancho Hermoso Sylmar, CA Windward Village Long Beach, CA Orcutt Ranch Orcult, CA Town 8 Country MHP Orcutt, CA Diamond Bar Estates Diamond Bar, CA South Grove MHP Garden Grove, CA Wildwood Mobile CC Hacienda Heights, CA Riverside Country Club Riverside, CA Best Trailer Park Long Beach, CA Maxxon Pines MHP El Monte, CA Ojai Oaks MHP Ojai, CA Lamplighter Oceanside Oceanside, CA Bayview MHP San Diego, CA Vista Meadows San Marcos, CA Plaza MHP Santa Ana, CA Cavalier MHP Oceanside, CA Carefree Ranch MHP Escondido, CA Ponderosamw Palmdale. CA Lakenjge Estates Lake Isabella. CA SumrtxxSelMob. Est Westminster, CA AztecMab ESL BeI1FOW,, CA The Woodlands Main FDI, CA Westward Ho MHP EI Cajon, CA Anonhtead MHP MCA CoastMI-P HadrorCity,CA Santiago Estates Morino Morenovatiey,CA Huntrglan Harbour Huatinglon Beath, CA BdAueMob. Est Yucaipa, CA Woodaeek Estates San DegoCounl ,,CA Caprshan o Valley San Juan Capistrano,CA HghtandsM P Sande, CA Carson Hartorwage Carsai, C4 DesertSandsMHP Soilage Springs, CA LaguraTenaosMHP LagunaBeachCA El Dorado Palms MHP Yucaipa, CA Ponderosa MHP Cahmesa, CA Hemet West MHP Hemet, CA Desert Sands MHP Lancaster, CA Cactus Country RV Park Tucson, AZ Partial List Of Appraisal, Analysis, & Counseling Assignments Completed By John P. Neet, MAI Rrverberid MHP Clackamas, OR Dale�Mcb. Est El Monte, CA Santiagocteeksidem-P Orange, C4 Cherryfield MHP Paramount, CA Sun Canyon Estates Palm Spri xA CA PangASantbgoMI-P Tustin, CA Desert Sands Estates LarxasN.t, CA Twin Palms MHP Pla enda, CA GoidenSands Estates PalmSpi'ux,Is,CA Oatsau Las Biisas Apple Valley, CA Chateau Barstw Barstow, CA Far Horizons MHP Tucson, AZ Whittier Downs MHP Whittier, CA Seacliffe MHP Newport Beach, CA Villa del Sol MHP Hemet, CA Friendly Village Milpitas, CA Estrella de Oro MHP Vista, CA Laguna Vista MHP Oceanside, CA Santiago Bonego Bonego Springs, CA The Californian Calmness, CA Countrywood Est. Coronae CA Westward He MHP El Cajon, CA Snug Harbor MHP Red Bluff, CA Sayview Heights MHP San Diego, CA Bonita Paradise MHP National City, CA Santiago Estates Las Vegas, NV The Meadows MHP Irvine, CA Del Norte Estates Lompoc, CA Highland Knolls Bakersfield, CA Casitas LaVeme MHP LaVeme, CA Knollwood MHP Yucaipa, CA Elms MHP La Puente, CA Northridge MHP Northridge, CA Charier Oaks MHP San Dimas, CA Sagetree MHP Palmdale, CA Mountain Springs MHP Banning, CA Ballerina Sunrise MHP Las Vegas, NV Mission Valley Village San Diego, CA Arabian Gardens Indio, CA Greencrest MHP Escondido, CA Aztec Mobile Est Yucca Valley, CA Wendover MHP West Wendover, NV Four Aces MHC San Jacinto, CA Cherry Estates Fontana, CA Siena MHP Vista Cascade MHP Mesa, AZ Vista, CA Huntington MHP Vista Manor MHP Huntington Beach, CA Vista, CA Villa Calmness MHP Montclair MHP Cahmesa, CA Montclair, CA EZ Living Trailer Park Shadow Hillis MHP San Marcos, CA Pacoima, CA Canyon Country MHP Arizona Trader Cent Canyon Country, CA Phoenix, AZ Tahoe Valley Campground Ballerina Sunrise MHP Lake Tahoe, CA Las Vegas, NV Pepper Tree MHP Bayscene MHP E;I Caton, CA Chula Vista, CA Sahara MHP Mulberry MHP Palm Spnngs, CA Santa Clarita, CA Queen Valley RV Park Ranchero MHP Queen Valley, AZ Sunnyvale, CA Parque La Quinta Escondido Terrace MHP Rialto, CA Escondido, CA Village of the 4 Seasons Park Santa Fe San Jose, CA Whittier, CA Travelodge Trailer Park Apache MHP Sacramento, CA Yucca Valley, CA Rancho del Arroyo MHP Starlight MHP Ocean, CA El Cajon, CA Bravo Estates Valle Verde MH Est Pedley, CA San Marcos, CA Grand view Mob. Est. Siena Mobile Estates Hesperia, CA Mesa„ AZ Silver Spur RV Park Apache Wells RV Resort Ocean, CA Mesa, AZ Las Palmas MHP Highland MHP Rialto, CA San Bernardino, CA Thunderbird MHP Vogue Mobile Village Sunnyvale, CA San Bernardino, CA Monterey Manor • Oaks Estates MHP Montclaire, CA Tulare, CA The Redlands Hacienda Mob. Est Redland, CA Lancaster, CA Valley View Capri MHP Yucaipa, CA Adelanto, CA Emerald Desert Orange MHP Palm Desert, CA Orange, CA Hacienda MHP Lancaster, CA Friendly Village MHP Lancaster, CA Redwood MHP El Cajon, CA Made's MHP Cathedral City, CA Villa del Arroyo MHP Moorpark, CA Tradewinds MHP Simi Valley, CA Santiago Vista Vista, CA Cactus Country RVP Tucson, AZ Westward Ho MPH El Cajon, CA Hemel Valley ME Hemet, CA Harbor Trailer Park Torrance, CA El Nor MHP Gardena, CA Villa del Arroyo Moorpark, CA Holiday Homes Barstow, CA Flamingo Trailer Pk. Bellflower, CA Bruin Trailer Park Big Bear Lake, CA Sierra Vista MHE Palmdale, CA Las Castles de Sonoma Rohnert Park, CA Contempo Merin San Rafael, CA DeAnzo Santa Crux Santa Cruz, CA TrailerRancho MHP Santa Maria, CA Woodaest MHE Santa Rosa, CA ! • Partial List Of AppmisA Analysis, & Counseling Assignments Completed By John P. Neet, MAI El Nor Trailer Park Gardena, CA Hemet Valley Mob. Est. Hemet, CA Date Palm Trailer Park Indio, CA Country View Estates Kennewick, WA Bridgewater Estates Kennewick, WA La Villa Vegas Las Vegas, NV Valley Ranchos LaVeme, CA Best Trailer Park Long Beach, CA Blue Hemn Mob. Est. Morro Bay, CA Sundse Village Palm Springs, CA Blue Fountain MHP San Jacinto, CA Tradewinds Mobile Pk. Simi Valley, CA Harbor MHP Torrance, CA Santiago Vista Vista, CA Lakeview MHP Yucaipa, CA Valley View MHP Yucaipa, CA Casa de Amigos Escondido, CA Meadow Lake Oxnard, CA Villa Grande MH Estate Santa Ana El Capitan El Cajon, CA Las Cashes de Sonoma Rohnen Park, CA Park Manor Mobil Estate Glendora. CA Tropics MHP Union City, CA Yucca Falls RV Park Yucca Valley, CA Delis Gardens Concord, CA American Canyon MHP American Canyon, CA Yucaipa Valley MHP Yucaipa, CA Lakeview Manor Spring Valley, CA Eastridge MHP San Jose, CA The Colony Rancho Mirage, CA The Orchard Santa Rosa, CA Indian Wells RV Park Indio, CA Sun City MHP Sun City, CA Western Skies Lancaster, CA Rancho Vallecitos San Marcos, CA Shamrock MHP Windsor, CA Riverview Tailer Pk. Kerrville, CA Rio Bend RV Resod El Centro, CA Elnor Trailer Park Gardena, CA Trade Winds MHP Simi Valley, CA Ventura Beach RV Resort Ventura, CA Riverside Meadow Riverside, CA Nu Way Carson, CA Arabian Garden Mobil Indio, CA Village Trailer Park Santa Monica, CA Momingside RVP San Juan, TX Aladdin Park Estates Yucaipa, CA Bonanza Mobile Estates Yucaipa, CA Avalon Mobile Home Est. Yucaipa, CA Vista Verde MHP Escondido, CA Quail Hollow Desert Hot Springs, CA Ridgecrest Lakeside, CA Casa de Amigos Escondido, CA La Made MHP Santa Maria, CA Meadow Lake Oxnard, CA. Villa Grande MH Estate Santa Ana, CA Grove Terrace MHP Moses Lake, WA Arrow Pines Azuza, CA El Capitan MHP EI Cajon, CA Escondido RVP Escondido, CA Las Casrtas MHP American Canyon, CA Village Green MHP San Diego, CA Arabian Villa Clovis Glendora MHP Glendora Rancho Palms MHP Rancho Mirage, CA Trails West MHP Tucson, AZ Granite Bay Mob. Est Granite Bay, CA Lamplighter San Jose San Jose, CA Mira Valle Community Ojai, CA The Redlands Redlands, CA Imperial Bncadmoor Mesa,AZ Rancho Vila PalrrxW , CA San Maiws Estates San Mai= CA Amm hesd MHP Glendora, CA RarchoSaroaYnez Sa12ng, CA SeminolaSpnrgs MHP Agoura, CA Park Vsta Estales Pomi CA LostH bMHP Lost Hills (Kem Ca), CA MssiondelAmo MtP Westmdl ,,CA Poling Hills Estates Palmdale, CA VstadeQo Hemet CA Barstav Village Barsmm, CA Avila Beach RV Park Avila Beach, CA Camelot RV Park Ramona, CA Villa Montclair Montclair, CA Tropicana MH Estates San Bernardino Bunions RV Park Blythe, CA Sequoia Plaza San Bernardino, CA Partial List Of Appraisal, Analysis, & Counseling Assignments Completed By Sohn P. Neet, MAI Ventura RVP Rancho del Amy MHP Glenoaks Mobile Manor Lumark MHP Glen Aire Mobile Estates Venture, CA Oceano, CA Pacoima, CA Sylmar, CA San Bernardino, CA Tredewinds Club Grandview East MHP Siesta MHP Santiago Ridgecrest Estates Fnendly Village Simi Valley, CA Yaca pa,CA Highland, CA Ridgecrest, CA San Bernardino, CA Castle Mobile Est. Rancho Del Sol South Mesa MHP Rancho Santa Ynez Estates Orangewood Estates Capitols, CA Yaceipa, CA Catimesa, CA Solvang San Bernardino, CA Las Palmas ME Trailer Rancho MHP Canyon View Willow Oaks MHP Pacific Palms Trailer Pk. El Paso, TX Santa Mana, CA Santa Clanta Hesperia, CA San Bernardino„ CA Emerald Desert Lost Oaks Satellite MHP Vista de Santa Barbara Rancho Meridian Palm Desert Atascadero, CA Anaheim, CA Carpinteria, CA San Bernardino, CA Village Trailer The Sands Mire Mar Roadrunner Club MHP Santa Fe Mobile Estates Santa Monica Desert Hot Springs, CA Oceanside Borrego Springs, CA El Monte, CA Mommgside RV Park Thunderbird Oaks Rancho Dominguez Kinnen MHP Rancho Mirage MHE San Juan, Tx. Thousand Oaks, CA Carson, CA Santa Clanta Lancaster, CA - Aladdin Park Estates Thunderbird Villa Glen Oaks MHP Westwinds Plantation Mobile Est Yucaipa, CA Southgate, CA Pacoima, CA Yucaipa, CA Anaheim, CA Boranza Mobile Estate Ranch Park Proposed MHP Rio Puente MHP The Californian RVP Yucaipa, CA. Thousand Oaks San Diego, CA Paramount, CA Acton, CA Avalon MH Estate Golden Palms Golden Sands Plantation MHP Green Valley MHP Yucalpa, CA Sacramento, CA Palm Springs, CA Anaheim, CA Encinitas, CA Vista Verda MHP Bobette MHP Rancho Vallecitos Terrace Gardens Lumark MHP Escondido, CA Las Vegas, NV San Marcos, CA Oceanside Sylmar, CA Quail Hollow Wishon Village RV Resort Mission Village (Proposed) Crescent Run Fiesta RVP Desert Hot Springs, CA Saver Lake, CA Riverside, CA Mesa, AZ Indio, CA Ridgecrest Escondido RV Resort Terrace Village RV Park Rancho del Bordo The Redlands MHP Lakeside, CA Escondido, CA Grand Terrace, CA Atascadero, CA Redlands, CA La Maria MHP Woodcrest MHP Liberty MHP South Hills MHP EI Rancho MHP Santa Made, CA Santa Rosa, CA Santa Ana, CA Glendora, CA Chino, CA Bit-O-Home Santiago Estates Rancho Goleta MHP Lemon Wood Stardust Mobile Estates Santa Ana, CA Ridgecrest CA Goleta, CA Venture, CA Venture, CA Plantation on the Lake Rancho Arroyo Laguna Terrace Friendly Village Modesto Rosedale Village Calimesa, CA Solvang, CA Laguna Beach, CA Modesto, CA Bakersfield, CA Grand Missouri MHP Arbor Trails Park Belfau MHP Napa Valley Silver Spur Mobile Manor Glendale, AZ Carpinteria, CA Bellflower, CA Napa Valley, CA Palm Desert, CA Mesa Verde Bonego Road Runner Club Poinsettia MHP Fnendly Village Santiago Pedley Estates Kingman, AZ Bongo Springs, CA Poway, CA Simi Valley, CA Riverside, CA Shadow Ridge Westwmd MHP Saddleback Mobile Lodge Vallecito Coronado MHP Glendale, AZ Yucalpa, CA Hemet, CA Thousand Oaks, CA Mesa, AZ Lost Oaks MHP Rio Puente Trailer Park Diamond K Estates Victor Villa Lake Elsinore West Atascadero, CA Paramount, CA Roseville, CA Victorville, CA Lake Elsinore, CA Startne Mobile Lodge Plantation Mobile Estates Carevilla MHP Fnendly Village Camino Real Fontana, CA Anaheim, CA Santa Cladla, CA West Covina, CA Oceanside, CA Las Casitas Rancho Vallecitos Estates Ponderosa MHP Vista del Lago Hillcrest MHP American Canyon, CA San Marcos, CA Escondido, CA Scotts Valley, CA Yucaipa, CA Partial List Of Appraisal, Analysis, & Counseling Assignments Completed By John P. Neet, MAI Casa Hermosa MHP Sahara MHP El Camino 76 Cavalier Ventu Estates/Park Villas Anaheim, CA Palm Springs, CA Oceanside, CA Oceanside, CA Newbury Park, CA Village Green Delta Hawaii MHP LACO MHP Knollwood CA-LACO MHP San Diego, CA Pittsburg, CA Carson, CA Yucaipa, CA Carson, CA Arabian Villa &Campus Tahoe Shores Arvin Estates Lone Hill Park Place MHP Clovis, CA Lake Tahoe, NV Arvin, CA San Dimas, CA Pems,CA Park Manor Don Luis Estates Whispering Meadows Vista Valencia Lake Park Glendora, CA Chula Vista, CA El Cajon, CA Tustin, CA Bellgower, CA Rancho Palm MHP Hacienda ME King Arlhurs Court Royal View Gardens Hacienda MHP Rancho Mirage, CA Pleasanton, CA Riverside, CA El Calons, CA Montclair, CA Trails West Vineyard ME Village MHP Valley Oaks Mobile Ranch Mobile Ritz Lodge Tusoon, AZ Pleasanton, CA Tustin, CA Fallbrook, CA Orange, CA Rio Bend Merced Estates Del Prado Alosta MHP The Woods MHP El Centro, CA Merced, CA Westminster, CA Glendora, CA San Diego, CA River Rancho MHP Sunburst MHP Alta Laguna Plantation MHP Estrella de Oro Viclorvdle, CA Hemet, CA Rancho Cucamonga, CA Anaheim, CA Vista, CA De Anna Moon Valley Tustin Village Caballero Las Lomas MHP Vista Manor Sonoma, CA Tustin, CA Riverside, CA San Diego, CA Vista, CA California MHP Faidane Mobile Lodge Heritage Parque La Quinta Rancho Brea Hemet, CA Garden Grove, CA Temecula, CA Rialto, CA Brea, CA Arroyo Fairways Park Lane MHP Friendly Village Village of the 4 Seasons El Dorado Palms Hemet, CA Santa Cladla, CA La Habra, CA San Jose, CA Yucaipa, CA Lumark Ocean Canyon Resort Lakefront Barstow Village Hacienda ME Sylmar, CA Avila Beach, CA Lakeside, CA Barstow, CA Lancaster, CA Friendly Village of Lancaster Palomar MHP Pl. Dume Estates Paradise Ranch MHP Clear Skies MHP Lancaster, CA Escondido, CA Malibu, CA Castaic, CA Lancaster, CA Rancho del Arroyo Royal Oaks Tropicana MHP Travel Country RVP Fiesta MHP Oceano, CA Davis, CA San Bernardino Garden Grove, CA San Bernardino, CA Franciscan/Twit & Cntry Contempo Mann Lonesome Cove MHP Sunrise MHP Newport Dunes Resort Fresno, CA San Rafael, CA Parker, AZ Livermore, CA Newport Beach, CA Woodward Bluffs Villa Fontana Fnendly Village Park Estates CountryVillage Fresno, CA Fontana, CA Tucson, CA Hemet, CA Marysville, CA Dana Point Marina Coast MHP University MHP Crane Lakeside Destiny Resorts Dana Point, CA Harbor City Loma Linda, CA Lake Elsinore, CA Denton, TX Villa Fresno Best MHP Manchester Village Windward Village MHP Destiny Resorts Fresno, CA Lang Beach, CA Bakersfield, CA Long Beach, CA Goodyear, AZ Villa Vista MHP Linda Vista MHP Copecabana MHP Crestview II MHP . Sandpiper Mobile Village San Marcos, CA Hemet, CA La Verne, CA Yucaipa, CA Carpinteria, CA Ventura Beach RV Resort Mobile Hacienda Palomar East Ponderosa MHP Edgeland MHP Ventura, CA Hemet, CA San Marcos, CA Escondido, CA Moreno Valley, CA Pacific MHP Capri Mobile Est. Palomar West Destiny Resorts Sky Trails MHP Huntington Beach, CA Fontana, CA San Marcos, CA Blythe, CA Moreno Valley, CA I . i A Partial List Of Manufactured Housing Community & RV Park Appraisal Clients John P. Neet. MAI • Aid Association for Lutherans aIndustry Mortgage Associates • American Capital Associates • J & H Asset Management Co. • American Commercial Bank 9Jackson Federal Bank • American Savings and Loan Jenner & Block ■ ARCS Commercial Mortgage Services • J. P. Morgan • Bank of America xJohnson Capital Corporation • Bank of Hemet ■ Joy & Associates • Bessire & Casenhiser • La Jolla Bank • Bloomfield Acceptance Corporation • L. J. Melody & Company • Bridget Capital, Inc. • Lehman Brothers Investments • Cal -Am Properties • Local Federal Savings Bank • California Bank & Trust • Low Income Housing Fund • California Federal Bank ■ Manufactured Housing Communities, Inc. • Caritas Corporation • Manufactured Housing Community Bankers. • Chateau Communities, Inc. ■ Millennium Housing • Citicorp Financial Services • National Home Communities, Inc. • City of Brea, CA Redevelopment Agency • New South Federal Savings Bank • City of La Verne, CA Redevelopment Agency • Newport Pacific Capital Corporation • City of Lancaster, CA Redevelopment Agency Nomura Capital Corporation • City of Palmdale, CA Redevelopment Agency • Onyx Capital • City of San Dimas, CA Redevelopment Agency AOrange Housing Corporation • City of San Marcos Redevelopment Agency • Pacific Legal Foundation • City of Seal Beach, CA • Pacific Mutual Life Insurance Co. ■ City of Union City, CA • Pacific Real Estate Capital ■ City of Yucaipa, CA • Prudential Insurance • Collateral Mortgage, Ltd. Quaker City Federal Savings and Loan • Column Financial, Inc. • Republic Thrift & Loan • Continental Wingate Inc. • Riverside County, CA • Credit Suisse -First Boston • Salomon Smith Barney • Deutche Bank aSantiago Management Company • East West Bank ftSouthern California Bank • FHLMC (Freddie Mac) SuuAmerica Life Insurance Co. • Financial Institutional Partners aThrivent Financial • Finova Realty Finance • The Westridge Group LLC • First Fidelity Bank • Thousand Trails, Inc. • First Fidelity Thrift & Loan • U. S. Internal Revenue Service • FNMA (Fannie Mae) Union Capital Investments • Ford Credit Universal Bank • GE Capital Corp. Unum Life Insurance Co. • GMAC Mortgage Vedder Communities, Inc. • Hart, King & Coldren Washington Mutual Bank • Hawthorne Savings Wells Fargo Bank • Imperial Capital Bank 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Marinapark Rents Bayside Lot $732 $761 $792 $823 $856 $891 $926 $963 $1,002 $1,020 $1.034 $1,052 $1.072 $1,090 $1.103 $1.129 $1.174 $1.221 Interior Bayview Lot $550 $572 $595 $619 $643 $669 $696 $724 $753 $770 $760 $795 $810 $823 $833 $853 $887 $923 Market Rent (average of Lido Peninsula and DeAnza Bayside Village) Bayside Lot $721 $784 $853 $927 $1,009 $1,098 $1,195 $1,301 $1,416 $1,541 $1.709 $1.880 $2,068 $2,276 $2.505 $2,700 $2,748 $2,748 Interior Bayview Lot* $547 $570 $594 $620 $646 $675 $704 $735 $768 $803 $830 $882 $938 $997 $1,062 $1,135 $1.275 $1,385 Difference between Market and Marinapark Rent (annualized, in constant dollars) Bayside Lot $269 $729 $1,249 $1,834 $2,490 $3,226 $4,050 $4,970 $6,258 $8,105 $9.933 $11.950 $14,227 $16,827 $18,852 $18.880 $4,579 $128,428 Interior Bayview Lot' ($24) ($8) $13 $37 $66 $100 $140 $185 $391 $606 $1.045 $1,532 $2,094 $2.746 $3,3a4 $4.655 $1,387 $18,350 Investment of Difference in Rent (6% interest, compounded annually) Years from 2002 16 15 14 13 12 11 10 9 6 7 6 5 4 3 2 1 0 Bayside Lots $4,732 $12,033 $19,232 $20,221 $32,873 $39,041 $44,550 $49,200 $55,068 $62,410 $65.559 $65,726 $62.600 $55.627 $41,474 $20.768 $4,579 $651y592 Interior Bayview Lot' ($416) ($125) $193 $528 $871 $1,212 $1,538 $1,836 $3.443 $4.663 $6.900 $8.428 $9,212 $9,061 $7,445 $5.120 $1,387 $61,297 Lido Peninsula Resort Bayside Lot $670 $737 $811 $892 $981 $1.079 $1,187 $1,306 $1,436 $1.580 $1.800 $2,016 $2,258 $2,529 $2,832 $3,200 $3.295 $3.295 Interior Bayview Lot* $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $000 $0.00 $000 $0.00 $0.00 Interior Lot $440 $462 $485 $509 $535 $562 $590 $619 $650 $683 $700 $763 $832 $907 $988 $1.070 $1,250 $1.470 DeAnza Bayside Village Bayside Lot $771 $830 $894 $963 $1.037 $1.117 $1,203 $1,296 $1,396 $1.503 $1,619 $1.744 $1,878 $2.022 $2,178 $2,200 $2,200 $2,200 Interior Bayview Lot* $0.06 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $000 $0.00 $0.00 $0.00 $000 $0.00 $000 $0.00 $000 Interior Lot $454_� $478 $503 $530 $558 $588 $619 $652 $686 $723 $761 $801 $844 $888 $936 $1,000 $1,100 $1.100 NOTE: ' Interior Bayview Lots like MP Cs, Ds, & Fs not available at LPR or DBV. For comparison, used average of Interior Lot rent at LPR/DBV and added $100 per month for the Bay view present in MP Cs, Ds, and Es. s 0 r -Told 0999 I9Z 6b6 • b0:0t FOOZ-ET-2IUW BENDETTI MANAGEMENT GROUP FACSIMILE TRANSMITTAL SHEET TO: PROM: Dave Kiff BillMecham COMPANY: DA'I'P; City of NewpottBeach 03/12/02 PAX NUMURR: • TCYrAl. NO. OR VA(:I15 INCLUDIM; (: IVI:R. (949) 644-3020 4 PIRINLNUAWRR( SPNOf:R'S 111WWUINCP NUMUIiR: (949) 644-3309 Ry.1 YOUR RBPLRLNCti NUMURR: ❑ URGPNT XFOR RRY)UM ❑ PLP.ASP. (:OMML' r ❑ PLPA51i RIDIN ❑ 1'I.I;A51; RRC:YC LE. NOTES/COMMaN7:ti• Here is a copy of the letter sent to Elaine Alston and an update on Bayside Village. If you have any questions or comments please contact me at (949) 261-6111 ext. 211. 1176 MAIN 51'RIMT SU17'R 1()U IRVI.NE. (:A 92614 A iL6 0999 T9Z 606 MOT E00z-ZT_2 W TO: ELAINE ALSTON Counsel fnr the City of Newport Beach FROM: BILL MECHAM Marinapark Agent for Owner DATE: January 28, 2002 SUBJECT: RENT SURVEY FOR MARINAPARK The following represents the results of our rent survey, conducted the week of January 21 thru January 25, 2002. We checked the three other parks in Newport Beach with bay exposure. Those properties are: $AYSIDE VILLAGE (949) 673-1331 300 East Coast Highway Newport Beach, CA 92660 270 spaces Manager, Patty Pemper Base rents range from $887 to $2200 Rents Include water, sewer,, trash -and basic cable Electric and gas are sub -metered 60 spaces on old 30 year transferable lease @ $887 to $998 105 spaces Interior #1 @ $1000 75 spaces Interior #2 @ $1100 10 spaces Waterfront #1 @ $1500 20 spaces Waterfront #2 @ $2200 Management was very confused about what exactly they have. LIDO PENINSULA RESORT (949) 673-6030 Manager, Don Funk 710 Lido Park Drive Newport Beach, CA 92663 r. �.r. vn i , •nnnnu ri i-vtunn •-� art! %96 0999 19Z 6b6 S0:0T 200Z-ZT-NOW RENT SURVEY January 28, 2002 Pag62 214 Spaces Base rents range from $1100 to $3295 Base rent includes sewer and Trash Electric, Gas and Water are sub -metered 15 . spaces Interior #1 @ $1100 S5 spaces Interior #2 @ $1155 8 spaces Corner interior #1 @ $1260 55 spaces Interior #3 @ $1470 8 spaces Comer Interior #2 @ $1575 12. spaces Beach Drive #1 @ $1695 13 spaces Beach Drive #2 @ $2300 6 spaces Waterfront #1 @ $2470 7 spaces Waterfront #2. @ $3090 5 spaces Waterfront Beach #1 @ $7630 S spaces Waterfront Beach #2 @ $3090 12 spaces Waterfront #3 @ $2985 13 spaces Waterfront #4 @ $3295 CANNERY VILLAGE ESTATAES (949) 723-5830 Manager, Sherry Bean .700 Lido Paris Drive Newport Beach, CA 92663 34-Spaces Base rents range from .$990 to $2700 Base includes trash Electric, gas and water are sub -metered 2 spaces Interior #1 @ $990 12. spaces interior #2 @ $1200 12 . spaces Interior #3 @ $1500 8 ' spaces Beach @ $2700 Fn•ti 7n nQQQ-T07-RfA:XRJ in(ZQH TI .G0'd %L6 0999 WE 606 MOT 4r MAR-2.1—.200212:21 PM MAR.. APARK 940 4�ASZ0 .�� �• t- 5 t Rird Nwwry (orpoend market nmUk single ttoiy hema) At De Anna UYN* Vi111to Yaet wRnrho,% ' WWAr4Ww NoWwde Soutluids 39Dg ;199S, ;1425. $1130. to;112s. SISD. —� P: 01 19" 12100. $1550. 11173.10$1195. • 2000 I=. S1650. 51230.10 $1275. $1000• 2001 $2200. $1750. S1350.to $1373, S1100. 20020 52500, $1950, S1400. to 61425. 51 LSO. •Fftiotiw Much 1, 2D02. Our m7erilt incrwo� ere tiro reWlt of emmuel mr rkot rutveyt amto ud b7 in&pwdm eanalUmg who we wt Affitieted with De AMR. loe, this lsfbe ywr info only. Plea" do not =print or dWribute it to your Mident& r o S31 hf1',4 OT:ti 7n, JBW n44a- T 1 1-411 9 •1 'R I wwly. acretw,c-. � t ;:•; Fil I illflilllllll:� f td li ' I 'AUNT 'WI 0 0 INTRODUCTION ................................... 1 I. HISTORY.......................................2 II. TENANT SURVEY ............................... 4 A. METHODOLOGY ........................... 4 B. SURVEY DATA ............................ 4 1) Demographics ............................ 5 2) Senior/Handicapped Households ............. 5 3) Income........6........................6 4) Dwelling Units - Project Site ................. 7 III. RELOCATION RESOURCES ...................... 8 A. METHODOLOGY ............................ 8 B. SURVEY RESULTS ........................... 9 1. Mobile Home Parks ....................... 9 2. Rental Housing - Orange County ............ 12 IV. RELOCATION IMPACTS AND ISSUES ............ 19 A. PHYSICAL RELOCATION COSTS AND ISSUES . 19 B. OFF SITE SPACE AVAILABILITY ............. 20 C. VALUE OF MODERATED RENT .............. 20 V. CONCLUSIONS AND RECOMMENDATIONS ...... 21 i 0 The Marinapark mobile home park ("the Park") located on a 4.34 acre parcel at 1770 West Balboa Boulevard on the Balboa Peninsula between 18'h and 15th Streets, has been owned and operated by the City of Newport Beach ("the City") since 1919. The Park has 58 mobilehome spaces and 924 feet of beach frontage facing Newport Bay (See Exhibit A). The Park currently accommodates twenty-seven (27) full-time resident households and thirty (30) vacation or weekend tenants. The approximately 108 full-time and part-time residents of the Park are predominantly senior citizens. The coaches that they occupy include units of various sizes, 7 to 45 years in age, ranging in space from 400 to 1836 square feet. After many years of weighing development possibilities for the site and informing residents of this in a series of leases dating back to 1973, the City has now elected to seriously entertain a proposed commercial project that would encompass the Park and require its abandonment. In anticipation of the selection of a specific development proposal, the City contracted with Pacific Relocation Consultants of Long Beach, California (PRC) to prepare a Relocation Impact Report ('Report") as described by California Government Code Section 65863.7 The mandate of Section 65863.7 is to "...report on the impact of the conversion, closure or cessation of use upon the displaced residents of the mobile home park to be converted or closed. In determining the impact of the conversion, closure, or cessation of use on displaced mobilehome park residents, the report shall address the availability of adequate replacement housing in mobilehome parks and relocation costs. In orderto prepare this Report, PRC conducted a survey of residents, a comprehensive study of mobile home park housing resources in orange County, and an analysis of physical relocation issues. This Report, describes the results of those efforts and presents recommendations consistent with Section 65863.7 with respect to relocation assistance and benefits. Page 1 The City of Newport Beach acquired Marinaparkfrom Pacific Electric Land Company in 1919. The initial use of the property after purchase was for a city campground. Campers paid $.75/day for waterfront camp areas and $.50/day for interior spaces. The park was later renovated in 1955 to a deluxe trailer court for 120 trailers. Accommodation of larger trailers put the park at today's capacity of 58 mobilehomes. The City and the residents at Marinapark ("Lessees") entered into a series of short- and medium -term leases relating to the Lessees' occupancy at Marinapark. As identified below, these leases explained that, in exchange for the right to occupy this real estate at below market rent, the tenants waived the right to relocation benefits. • 1973 Lease. The 1973 lease extended an existing lease to September30,1977 at which time all Lessees would "unconditionally and without contestvacate the premises, legal and otherwise. Lessees further agree to waive any relocation assistance or any other assistance from Lessor resulting from vacating the premises." The 1973 lease also dictated a new rental schedule through 1977. • 1976 Lease. A new 1976 Lease extended the Marinapark Lessees' tenancy through September 30,1985. The 1976 Lease offered an extension of five years "should the City Council find and determine ... that Marinapark is not required for any public trust purpose of other public purpose..." Rents at the time were set by the Lease and deemed to be "the fair market rental value" for the spaces. • 1985 Lease. The City Council did, indeed, state its intent that Marinapark should be converted "to a public recreation area" upon expiration of new 1985 Lease. The 1985 Lease - with an expiration date of March 15, 2000, said that "the most significant rights obtained by Lessee, and given by City..." The Lease describes these rights as follows. S Lessee's long-term right to occupy the Premises... S Lessee's payment of "moderate rent ... and the advantage of limited rental increases in the future, while City gives up the right to charge higher rents initially and the rightto impose future rental increases in excess of the cost -of -living index..." The 1985 lease also outlines the rights and benefits "given up" by the Lessee, including: Page 2 S City's right to convert Marinapark into a public recreational use upon Lease expiration. S the full waiver of any right of the Lessee to receive relocation benefits "or any other form of relocation assistance." • 2000 Amendment and Extension of Lease. On February 8, 2000, the City Council authorized the City to offer an amendment and extension ("Lease Extension") to the 1985 Lease. The Lease Extension acknowledge several things, some new, others a restatement of information in the 1985 Lease. The Lease Extension acknowledged (among other things): • Uncertainty over the status of the land upon which Marinapark sits. Arguably, if the California State Lands Commission determines that Marinapark sits on State-owned and City -managed tidelands, then the residential uses of Marinapark may not be appropriate land uses on these tidelands. • The City's pending review of up to eight responses to a Request for Proposal (RFP) for future uses and development of Marinapark, some of which envisioned the continuation of the mobilehome use. • The substantial and important benefit of the economic and personal rights of the Lessees under the 1985 Lease, including the Lessees' payment of below -market rent and the ongoing waiver of Lessees' claims to any relocation benefits. At the time of this report, all but one of Marinapark's Lessees have signed and are residing in Marinapark on a tenancy based upon the Lease Extension to the 1985 Lease. Page 3 A. METHODOLOGY To obtain information necessary for the preparation of this Report, an initial round of survey questionnaires was mailed on June 7, 2000 to all residents of the Park. As a follow-up to these questionnaires, door-to-door interviews with Park occupants were conducted during July and August, 2000. Ultimately, information was obtained from forty-six (46) of the fifty- seven (57) full-time and part-time households (80%). The survey form and correspondence to tenants is included as Exhibit B. The inquiries made of Park residents, during both interviews, referred to household size and composition, income, coach size and age, length and type of occupancy, and disabilities/health problems. In ten cases, general information concerning individual tenants was provided by the park manager after numerous efforts to contact these individuals proved unsuccessful. B. SURVEY DATA The Park contains fifty-eight (58) spaces for single-family, mobile home residences, fifty- seven (57) of which are currently occupied. One coach is city -owned and vacant. Among the fifty-seven (57) tenant households, who rent space at the Park, twenty-seven (27) consider themselves to be full-time occupants while the remaining thirty (30) report using their coaches as vacation or weekend home. Among the twenty-one (21) full-time residents who responded to the survey question concerning length of tenancy at the Park, the average is 19.9 years. The average for the twenty-two (22) part-time occupant survey respondents is 18.8 years . A synopsis of survey information is provided as Exhibit C in this report. Page 4 1) Demographics Information concerning household composition was obtained from fifty-two (52) or 91 % of the fifty-seven (57) Park tenants. Among the twenty-six (26) respondent full-time households were a reported fifty-eight (58) adults and no children. The twenty-six (26) part-time occupant respondents reported a total of fifty (50) adults and no children. A breakdown of the total number of tenants by household size and status is as follows: Table 1: Park Population by Household Size and Status Household Size Full-time Part-time 1 3 1 2 20 21 3 1 4 4 2 0 Table 2: Income Levels Among Full-time and Part-time Tenants Monthly Income $4,000 or less $6-10;000 $11-16,000 $16 - 20,000 Full-time 10 6 1 1 Part-time 9 7 0 0 3) Income Information specifically concerning income, was obtained from eighteen (18) of twenty-six (26) or 69% of full-time residents and fifteen (15) of thirty (30) or 50% of part-time tenants. The distribution of reported income by level and status is as illustrated below: Among the responses of full-time residents, fourteen (14) households have identified themselves as retired and nine (9) indicated having employment. The income level of retirees is "typically" $48,000 or less. One individual reported monthly income, however, less than $1,500. Among the nine (9) working households, there were six (6) responses to the income query. Among this group, one household reported income of $2,000 per month, three (3) indicated income in the range of $4,000 per month and two (2) claimed to have income greater than $5,000 per month. With respect to proximity to places of employment, five (5) respondents reported travel distances of ten or more miles while four (4) others indicated ranges of five miles or less. 4) Dwelling Units - Project Site Page 6 The fifty-six (56) mobile homes at the Park range in size from ten by forty feet (10' x 40': 400 square feet) to thirty-four by fifty-four feet (34' x 54': 1,836 square feet). Ages range from seven (7) years to forty-four (44) years corresponding with dates of manufacture from 1956 to 1993. Among Park units there are nine (9) single wide coaches with cabana additions, one (1) triple wide coach, and thirty (30).double wide coaches. There are eighteen (18) mobile homes that, because of incomplete registration information, could be considered as either single or double wide units. Representative photographs of Park coaches are presented as Exhibit D. The following table shows the age range of Park coaches among full-time and part-time occupants: Table 3: Mobile Home Ages within Marinapark Year built Quantity Full-time Part-time 1953to1960 5 3 2 1961to1970 4 2 2 1971to1980 22 12 10 1981to1990 11 11 4 7 1991to2000 2 2 0 Unknown 14 4 10 Although the age range of coaches in the Park is significant, it is often difficult, by exterior physical inspection, to make age distinctions because of the general level of upgrades and modifications observable throughout the Park. These modifications range from simple family room cabanas added to older single wide mobile homes to major interior design work in some of the double wide mobile homes. The exteriors of most coaches reflect a mix of various improvements including porches, painting, brick work, roofs, walkways and landscaping. Page 7 A requirement of California Government Code Section 65863.7 is to "...address the availability of adequate replacement housing in mobile home parks..:.. This Section addresses this issue by detailing the results of a survey of thirty-three (33) family and senior mobile home parks in Orange County. These thirty-three (33) parks were screened from a sample of ninety-two (92) parks on the basis of their overall quality relative to amenities, location, appearance and upkeep. In addition to the survey of mobile home parks, a separate analysis of rental housing in Orange County was conducted in order to examine the broadest range possible of housing options for Park residents. A. METHODOLOGY Surveyworkwas conducted during the months of July and August, 2000 using the following means and resources: S Survey of classified rental and purchase listings for mobile homes in daily and weekly newspapers serving the City of Newport Beach and surrounding communities. S Individual drive -through surveys of mobile home parks. S Telephone and field contact with real estate and property management companies specializing in the areas of rental housing and/or mobile home properties. Ninety-two (92) Orange County parks in an area bounded by Brea to the north, Tustin to the east; San Clemente to the south, and Buena Park on the west were personally visited. The thirty-three (33) parks that comprise the final survey list that follows were found among the cities of Anaheim, Brea, Buena Park, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, Orange, Placentia, San Clemente, San Juan Capistrano, Stanton, Westminster, and Yorba Linda. Page 8 B. SURVEY RESULTS I 1. Mobile Home Parks The following table provides specific references to parks, contact information, park type, space availability, pad rent, the number of for -sale listings in the park and the range of listing prices: Table 1: ORANGE COUNTY MOBILE HOME PARK RESOURCES 08-29.00 Mobile Address Family/ Space Pad rent Coaches Sales price Home Park Phone Number -Contact Senior available (Utilities not available ranges Included) Anaheim Shores Estates 1919 Coronet Ave., Anaheim Family 0 $585 & up 5 $60,000 & up 714-774-1360 Del Prado 1616 S. Euclid Ave, Anaheim Family 0 $734 & up 14 $22,000 Mobile Home Park 714-635-2322 - Sylvia $65,000 Sunkist Gardens 1400 Sunkist St., Anaheim Senior 0 $557 & up 3 $70,000 & up 714-772-3970 - Earline Crestmont Mobile Home 1051 Site Dr., Brea Family 0 $598 4 $35,000 & up Estates 714-529-4131-Deana Hollydale Mobile Home 5700 Carbon Canyon Rd., Brea Family 3 for new $550 & up 6 $99,500 Estates 714-528-7779 models $85,000 Lake Park Brea 625 North Puente St., Brea Senior 0 $579'& up 2 $80,000& 714-524-6960 - Nancy $96,000 Buena Villa Mobile 6741 Lincoln Ave., Buena Park Senior 0 $630 1 $49,000 Estates 714-995-3801 -Denise Fountain Valley Estates 9320 Talbert Av., Fountain Family 0 $690 2 $75,500 & Valley $79,000 714-962-2112 - Jack/LeAnn Rancho La Siesta Mobile 18194 Bushard St., Fountain Senior 0 $440& up 1 $29,900 Home Park Valley 714-962-3841-Jim Cedarhill 2851 Rolling Hills Dr., Fullerton Family 0 Land sold 11 $129,900 714-993-5000 -Miriam w/home $199,900 + assoc fee Rancho Fullerton Mobile 1201 W Valencia Dr., Fullerton Senior 0 $482 & up 5 $29,950 Home Estates 714-871-8701 -Elaine $99,000 Page 9 Table 1: ORANGE COUNTY MOBILE HOME PARK RESOURCES 08-29-00 Mobile Address Family/ Space Pad rent Coaches Sales price Home Park PhoneNumber- Contact Senior available (Utilities not available ranges Included) Magic Lamp 7700 Lampson Av.,Garden Senior 2 for new $507.33 2 $22,500 Grove models $27,500 714-994-3381 Del Mar aka Brookfield 19251 Brookhurst St., Senior 1 $500 0 0 Huntington Beach 714-968-0484- Pat Huntington Harbour 16400 Saybrook Ln., Senior 0 $625 & up 6 $44,900 & up Mobile Estates Huntington Beach 714-846-1010 - Judie Huntington Shorecliffs 20701 Beach Blvd., Huntington Senior 0 $482.13 10 $30,000 Beach $88,500 714-536-4417 Los Amigos Mobile Home 18601 Newland St., Senior 0 $500 5 $70,000 Park Huntington Beach $83,000 714-962-7422 - Jim Rancho Del Rey Mobile 16222 Monterey Ln. Senior 0 $575 13 $37,900 Home Estates Huntington Beach $95,000 714-846-1429 - Dorothy Rancho Huntington 19361 BrookhurstSt., Senior 0 $500 3 $49,000 Huntington Beach $69,000 714-962-7311- Bill The Meadows 14851 Jeffrey Rd., Irvine Senior 0 $551 & up 3 $32,500 714-551-3050 - Velma $61,500 Laguna Hills Estates 23301 Ridge Route Dr., Irvine 0 $550 & up 14 $55,000 & up 714-830-3900- Carriage Mobile Estates 201 W. Collins, Orange Family 0 $600 6 $73,000 & up 714-639-1934 - Karen Santiago Creek Estates 692 N Adele, Orange Senior 0 $570 3 $64,995 & up 714-639-4240 - Ms. Bagette Lake Park Placentia 255 E. Orangethorpe Senior 0 $597 & up 1 $67,500 Placentia 714-996-6200 Capistrano Shores 1880 El Camino Real Family 0 $2,100 3 $325,000 San Clemente $350,000 949-492-6616 - Tony Palm Beach Park 101 Palm Dr., San Clemente Senior 0 Land sold 6 $129,000 949-492-3344 - Colin/Lynda w/home $279,000 + assoc. fee Page 10 Table 1: ORANGE COUNTY MOBILE HOME PARK RESOURCES 08-29.00 Mobile Address Family/ Space Pad rent Coaches Sales price Home Park PhoneNumber- Contact Senior available (Utilities not available ranges Included) El Nido Mobile Estates 27703 Ortega Hwy. Senior 0 $350 & up 3 $94,900 San Juan Capistrano 949-493-2666 La Lampara Mobile Home 7271 Katella Ave., Stanton Senior 0 $500 & up 0 0 Club 714-527-1205 - Bill/Millie Parque Pacifico Mobile 12101 Dale St., Stanton Senior 0 $500 0 0 Home Park 714-539-5018 Jerry/Marlyse Plaza Pines Estates 11250 Beach Blvd., Stanton Senior 0 $350 & up 0 0 714-897-4900 - Gary Driftwood Park 15621 Beach Blvd., Senior 0 $480.00 6 $25,900 & up Westminster 714-893-1.166-Guy Regency Villa 15111 Bushard St., Senior 0 $500 &up 5 $45,000 & up Westminster 714-531-5444- Susan Summerset Mobile 9200 Westminster AV., Senior 0 $555 4 $48,500 & up Estates Westminster 714-894-7766 - Art Lake Park Yorba Linda 2700 Rose Dr., Yorba Linda Senior 0 $450 & up 7 $42,000 & up 714-524-3033 - Sue Page 11 2. Rental Housing - Orange County The following table specifies properties, contact phone numbers, total number of units, deposit information, the rent range for one and two bedroom apartments, the number of vacancies and the pet policy of eighty-five (85) apartment complexes in the cities of Newport Beach, Irvine, Costa Mesa, and Huntington Beach: TABLE 2: NEWPORT BEACH AREA AVAILABLE HOUSING SURVEY Name&Address Phone #Units Deposit Rent Range #Vacancies Pets 46ed 2 Bed 18ed 28ed 1 Las Brisas Apts 949.642.2566 54 $700 $1,150 $1,400 1 1 no 5515 River Ave. 2 Bayview 949.644.5555 64 $400(1) $1,190 $1,420 2 2 dog 1650 Marguerite Ave. $500 (2) $1,225 &cat $300 pet 3 Newport Seacrest Apts 949.722.0189 65 $800 N/A $995 N/A 1 no 843 W. 15'" 4 Bayport 949.644.5555 104 $400(1) $1,190 $1,420 2 2 dog 2650 San Joaquin $500(1) $1,225 $1,525 &cat Hills Rd. $300 pet 5 Mariner Square 949.645,0252 114 $200 N/A $1,530 0 1 dog 1244 Irvine Ave. $300 pet &cat 6 The Beach House 800.215.3167 226 $300 $975 N/A 3 NIA no 1433 Superior 949.646.8453 7 Baypofnte 949.640.7171 300 $400(1) $1,435 $1,550 3 5 dog 2500 Baypointe Dr. $500 (2) $1,650 $1,945 &cat $300 pet 8 Baywood 949.644.5555 388 $400(1) $1,190 $1,420 2 2 dog 1 Baywood Dr. $500 (2) $1,225 $1,525 &cat AHP* 9 Newport Ridge 886.882.9805 512 $700 $1,300 $1,650 4 12 dog 1 White Cap Lane $300 pet $1,700 $1,980 &cat AHP" 1 Promontory Point Apts. 949.675.8000 520 $500 $1,585 $1,715 10 10 dog 0 200 Promontory Drive &cat 1 Newport North 949.720.8765 570 $400 (1) $1,091 $1,291 2 7 dog 1 2 Milano $500 (2) $1,151 $1,511 &cat Af/pR $300 pet Page 12 TABLE 2: NEWPORT BEACH AREA AVAILABLE HOUSING SURVEY Name & Address Phone #Units Deposit Rent Range # Vacancies Pets 1 Bed 2 Bed 113ed 2Bed 1 Coronado at Newport 949.722.3898 715 $500 N/A $1,250 0 5 cat 2 South $300 pet 880 Irvine Ave. 1 Coronado at Newport 949.722.3896 732 $500 $1,100 N/A 5 0 cat 3 North $300 pet 880 Irvine Ave. 1 Newport Bluffs 877.275.3709 200 $600(1) $1,350 $1,730 1 2 dog 4 100VIIIagioAvenue $800(2) $1,610 $1,930 &cat $300 pet 1 Park NewportApts. 949.644.1900 1,306 $500 $1,085 $1,475 15 25 cat 5 1Park Newport $300 pet $1,595 $1,895 TOTALS 6,870 $960 $996 60 76 $1,700 $1,980 TABLE 3: IRVINE AREA AVAILABLE HOUSING SURVEY Name&Address Phone Units Deposit Rent Range #Vacancies Pets 1 Bed 2 Bed 1 Bed 2 Bed 1 San Paulo 949.756.0123 N/A $450(1) $1,060 $1,360 7 2 dog & 100 Duranzo $550(2) $1,175 $1,690 cat AHP* $300 pet 2 Cross Creek 949.733.0414 136 $500 N/A N/A none 0 dog & 22 Creek Rd $300 pet cat 3 Amherst Court 888.882.9823 162 $600 $1,050 $1,365 1 3 cat 100 Amherst Aisle $300 pet $1,125 $1,465 4 North Wood Park 949.552.0177 168 $400 (1) $990 $1,170 1 1 dog & 145 Roosevelt $500(2) $1,250 cat AHP* $300 pet 5 Cedar Creek 949.733.0404 176 $400(1) $1,020 $1,180 2 2 dog& 5051 Alton Pkwy $500(2) $1,055 $1,200 cat AHP* $300 pet 6 Newport Bay Terrace 714.545.4855 182 $300(1) $900 $1,100 2 2 no 1691 Mesa Drive $400 (2) 7 Windwood Glen 949.551.1577 196 $400 (1) $970 $1,195 1 2 dog & 97 Hearth Stone $500(2) $1,035 $1,255 cat $300 pet Page 13 r] E TABLE 3: IRVINE AREA AVAILABLE HOUSING SURVEY Name &Address Phone Units Deposit Rent Range #Vacancies Pets 1 Bed 2 Bed 1 Bed 2 Bed 8 Sonoma at Oak Creek 949.387.7000 196 $500 N/A $1,550 none 7 dog & 700 Sonoma Isle $300 pet $1,860 cat 9 Woodbridge Willows 888.824.3624 200 $400 (1) $1,065 $1,200 3 3 dog & 344 Knoliglen $500(2) $1,090 $1,235 cat $300 pet 10 San Marino 949.553.1662 200 $400(1) $1,110 $1,305 3 1 dog & 403 San Marino $500(2) $1,120 $1,330 cat AHP* $300 pet 11 One Park Place 949.474.4422 216 $400(1) $1,025 $1,516 1 1 no 18600 Jamboree Rd. $500(2) $1,347 $1,620 AHP* 12 Turtle Rock Canyon 888.619.9143 217 $450(1) N/A $1,535 0 4 dog & 100 Slonecliffe Aisle $550 (2) $1,875 cat $300 pet 13 Woodridge Pines 949.552,0400 220 $400 (1) $.1,020 $1,230 1 4 dog & 115 Pine Stone $500(2) $1,040 $1,270 cat $300 pet 14 Harvard Court& 949,854.4942 221 $600 N/A $1,300 none 2 cat Cornell Court AHP* $300 pet $1,375 146 Berkley Ave. 15 Windwood Knoll 949.551.3258 240 $400 (1) $985 $1,130 2 2 dog & 2 Flagstone#121 $500(2) $1,035 $1,170 cat $300 pet 16 San Leon 949.863.7050 248 $400(1) $1,130 $1,200 2 1 dog & 1 San Leon $500(2) $1.160 $1,485 cat AHP* $300 pet 17 San Remo Villa 949.474.5056 248 $400 (1) $1,115 $1,295 4 4 dog & 1011 San Remo $500(2) $1,125 $1,395 cat , AHP* $300 pet 18 Turtle Rock Vista 868.891.6557 252 $500 N/A $1,325 0 2 dog & 3 Rockview $300 pet $1,375 cat 19 Woodbridge Villas 949.786.5110 258 $400 (1) $985 $1,275 4 1 dog & 10 Thunder Run $500(2) $1,030 $1,320 cat AHP* $300 pet 20 San Mateo 877.848.2107 283 $450 (1) $1,210 $1,355 4 1 i dog & 100 Cantata 949.250.3331 $550(2) $1,275 $1,440 cat AHP* $300 pet Page 14 TABLE 3: IRVINE AREA AVAILABLE HOUSING SURVEY Name &Address Phone Units Deposit Rent Range #Vacancies Pets 1 Bed 2 Bed 1 Bed 2 Bed 21 Deer Field 949.559.5000 288 $400 (1) $885 $1,130 1 2 dog & 3 Bear Paw $500(2) $1,025 $1,320 cat $300 pet 22 Parkwood 949.786.0900 296 $400(1) $900 $1,190 2 4 cat 17560Jordon Ave. $500(2) $1,025 $1,250 $300 pet 23 Stanford Court 949.854.3288 320 $600 NIA $1,225 0 1 dog & 400 Stanford $300 pet $1,275 cat AHP' 24 Heritage Point 949.559.7000 340 $500(1) $975 $1,095 1 2 no 4 Austin $600 (2) 25 San Carlo Villa 949.833.7540 354 $535 N/A $1,265 none 1 dog ,& 15 Murica Aisle $300 pet $1,600 cat AHP' 26 Rancho San Joaquin 888.218.0892 360 $400(1) $1,050 $1,415 4 3 rat& 20 Pergola $500(2) $1,265 $1,695 dog 27 Woodbridge Meadows 714.551.6800 375 $400(1) $990 $1,200- 3 6 cat 500 East Shore $500(2) $1.050 $1,315 $300 pet 28 Santa Clara 949.552.6300 378 $400(1) $1,220 $1,400 2 2 cat 100 Santa Louisa $500(2) $1,365 $300 pet 29 Brittany at Oak Creek 888.222.0517 393 $400 (1) $1,100 N/A 1 0 dog & 100 St. Vincent $500(2) $1,325 cat $300 pet 30 The Charter 888.364.6933 403 $400 $1,200 $1,400 5 5 cat 2750 Kelvin Ave. $300 pet $1,250 $1,475 31 San Marco Villas 949.975.6300 426 $400 (1) $1,090 $1,250 5 10 dog & 101 Veneto $500(2) $1,135 $1,320 cat AHP• $300 pet 32 Villa Coronado 877.871.5211 513 $400(1) $1,220 $1,315 4 6 cat& 100Ambazar $500(2) $1,280 $1,600 dog $300 pet 33 Toscana 949-757-1111 560 $500 $1,240 $1,410 10 10 no 35Via Luca $1,380 $1,660 34 Santa Rosa 949.387.4800 575 $400 (1) $1,195 $1,395 5 7 dog & 500 Cardiff $500(2) $1,285 $1,710 cat 4300 pet Page 15 TABLE 3: IRVINE AREA AVAILABLE HOUSING SURVEY Name &Address Phone Units Deposit Rent Range #Vacancies Pets 1 Bed 2 Bed 1 Bed 2 Bed 35 Northwood Place 949.857.4100 604 $400 (1) $985 $1,210 1 3 dog & 1300 Hayes St. $500 (2) $1,275 cat AHP+ $300 pet 36 Park West Apts. 949.786-9200 880 $400(1) $1,025 $1,225 35 40 dog& 3883 Parkview Lane $500 (2) $1,080 $1,380 cat $300 pet TOTALS 11084 $885 1 $1;095 117 1 147 $1,380 $1,876 TABLE 4: COSTA MESA AREA AVAILABLE HOUSING SURVEY Name & Address Phone # Units Deposit Rent Range #Vacancies Pets 1 Bed 2 Bed 1 Bed 2 Bed 1 Seawind Apts, 714.631.0960 24 $350 $860 $980 1 2 cat 2250 Vanguard Way $1,005 2 Fox Hollow Village 949.631.4095 31 $250 pet N/A $1,050 none 2 dog & 621 Wilson St. I I I cat 3 Playa Mediterranean 714.960.6611 55 $300 $910 N/A 1 none cat 401 Atlantic Ave. $300 pet 4 Casa Granada 714.754.6703 65 $600 $825 $975 1 1 cat 400 Merrimac Way $200 pet $875 $995 5 Sea Pointe Villas 714.662.7368 72 $440 $1,060 $1,350 1 1 cat 1380 Village Way 4500 pet 6 Merrimac Woods 714.545.6300 123 $300 (1) $819 N/A 2 0 cat 425 Merrimac Way $400 (2) $929 4300 pet 7 Sea Palms 949.946.6787 138 $400 N/A $1,025- 0 1 cat 1850 WhittierAve. $300 pet $1,300 8 Pine Brook Village 949.979.5290 200 $300 (1) $900 $960 1 2 cat 1555 Mesa Verde Or E $400 (2) $925 $1,035 $500 pet 9 Park Plaza 714.545.1121 242 $200 N/A $940 none 1 no 805 W. Steven Ave. $1,060 Page 16 TABLE 4: COSTA MESA AREA AVAILABLE HOUSING SURVEY Name & Address Phone # Units Deposit Rent Range # Vacancies Pets 1 Bed 2 Bed 1,Bed 2 Bed 10 Wimbledon Glen 714.241.0500 244 $500(1) $1,065 $1,575 1 1 no 1142 Buckingham Dr. $700 (2) $1,105 $1,650 11 Adams Place 877,736.5639 250 $300 (1) $995 $1,195 3 3 cat 1250 Adams Ave. $400 (2) $300 pet 12 The Cape Apts. 714.556.9044 296 $400 (1) $980 $1,330 1 1 no 1000 S. Coast Dr. $600 (2) $1.050 $1,390 13 Mesa Verde Villas 949.540.8871 298 $500 $910 $1,130 1 1 cat 1555 Mesa Verde Or E $400pet $1,035 $1,295 14 Pine Creek Village 714.540.1300 380 $400 (1) $950 $1,160 1 1 cat 1300AdamsAve. $500(2) $1,000 $1,215 $500 pet 15 Harbor Greens 949.546.0370 384 $300(1) $895 $1,150 1 1 dog& 2700 Peterson Place $400(2) $1,225 cat $500 pet 16 South Point Apts. 714.662.3222 440 $500(1) $940 $1,150 2 1 no 655 Baker $600 (2) $995 $1,400 17 Vista Del Lago 949.540.1800 468 $300(1) $965 $1,115 3 3 no 2775 Mesa Verde Dr. East $400 (2) $1,175 $1,310 18 Mediterranean Village 800.291.0913 508 $250(1) $900 $1,100 5 1 cat 2400 Harbor Blvd. $500 (2) $985 $1,200 $300 pet 19 Martinique Apartments 949.540.5500 713 $450 $885 $1,225 1 5 cat 2855 Pine Creek Dr. $300 pet $1,100 $1,400 20 The Lakes at South Coast 888.889.4906 790 $500 $905 $1,465 4 4 cat 3400 Ave of the Arts $1,270 $1,975 TOTALS 5721 $819 $940. 30 32 $1,270 $1,975 Page 17 TABLE 5: HUNTINGTON BEACH AREA AVAILABLE HOUSING SURVEY Name & Address Phone # Units I Deposit Rent Range # Vacancies Pets 1 Bed 2 Bed 1 Bed 2 Bed 1 Harborscape 877.226.2016 88 $500 N/A $950 none 1 dog & 5152 Heil Avenue $500 pet $1,025 cat 2 Huntington Creek 714.848.1613 194 $250 $900 $1,135 2 1 no 8211 San Angelo Drive $910 $1,300 3 Casa Monterrey 714.847.8526 208 $250 $915 $1,155 1 0 cat 6551 WarnerAvenue $250 pet $965 $1,195 4 Huntington Vista 714.964.2343 220 $300 �$880 N/A 1 none cat 21551 Brookhurst $350 $905 $300 pet 5 The Windjammer 714.847.1269 263 $199 (1) $845 $1,040 3 2 cat 7701 Warner Avenue $299(2) $905 $1,090 $300 pet 6 The Huntington 714.847.9605 276 $300 (1) $885 $1,130 2 1 cat 8400 Edinger Avenue $400 (2) $930 $1,175 $300 pet 7 Seawind Village 714.750.0514 .277 $300 (1) $990 $1,010 2 6 none 15555 Huntington Village $400 (2) $1,075 $1,270 Lane 8 Ocean Breeze Villas 714.842.0629 290 $400 $895 $950 1 1 cat 6401 Warner Avenue $300 pet $995 9 Sunscape Apartments 888.202.4594 400 $400 N/A $960 none 1 no 16761 Viewpoint Lane $1,250 10 Sea Bridge Village 714.960.2418 344 $400 $1,035 $1,295 0 1 cat 20251 Cape Coral Ln $300 pet $1,055 $1,545 11 Avalon at Pacific Bay 888,839.00§4 304 $400 (1) $940 $1,140 2 1 cat 6700 Warner Avenue $500(2) $1,000 $1,240 $500 pet 12 Huntington Breakers 714.969.2463 342 $300(1) $950 $1,260 1 2 cat 21270 Beach Blvd $350(2) $1,000 $1,330 $500 pet 13 Casa Del Sol 714.962.6653 448 $300 (1) $880 $1,195 2 1 no 21661 Brookhurst $400(2) $900 _T Page 18 TABLE 5: HUNTINGTON BEACH AREA AVAILABLE HOUSING SURVEY Name&Address Phone #Units Deposit Rent Range #Vacancies Pets 1 Bed '2 Bed 1 Bed 2 Bed 14 Regency Palms 6762 Warner Avenue 714.847.6064 310 $400 (1) $500(2) $300 pet $849 $909 $949 $1,006 2 2 dog & cat TOTALS 3654 $846 $1,076 $949 $1,545 19 20 California Government Code Section 65863.7 obligates the entity or person responsible for a proposed mobilehome park closure "... to take steps to mitigate any adverse impact of the conversion ... or the ability of displaced mobilehome park residents to find adequate housing in a mobilehome park. The steps required to be taken to mitigate shall not exceed the reasonable costs of relocation..:'. The City believes that relocation benefits may not be warranted since the value of the below market rent may exceed any benefits. However, to ensure that the City fully complies with state law, this Section addresses the estimated relocation costs, the barriers to the physical relocation of coaches, and the availability of suitable replacement sites in parks surveyed for this report. It also compares the waived relocation benefits against the cumulative benefits which have accrued to Park residents since 1986 by virtue of the City's offer of below market rent tied to leasehold relocation assistance waiver provisions. A. PHYSICAL RELOCATION COSTS AND ISSUES For the purpose of establishing likely physical relocation costs of Park coaches, a professional mobilehome moving company, Cal -Set of Hawaiin Gardens, CA, was asked to perform an exterior physical survey throughout the Park and provide moving cost estimates. The handwritten worksheets furnished by Cal -Set are shown in the Report as Exhibit E. The written estimate submitted by Cal -Set places a range of $14,500 to $17,500 to teardown, move and re -install coaches to a replacement site within sixty (60) miles of the Park. Beyond the observations written into the cost estimate, the Cal -Set representative expressed concerns, verbally, regarding the effect of improvements and additions, particularly roof structures, and the cost and difficulty relocating many Park units. Matching materials and colors and maintaining structural integrity upon reassembly were mentioned as additional, potential.problem areas. Page 20 B. OFF SITE SPACE AVAILABILITY Data from Tables 1 through 5 in Section III (Relocation Resources) show six (6) vacant, available spaces in the thirty-three (33) parks surveyed. Of these six (6) spaces, only one (1) was available to a used move -on coach. The five (5) other spaces, according to park management representatives, were restricted to individuals purchasing new coaches from specific mobilehome brokers. While new coaches could be expected to cost in the area of $80,000 and their pad rents range from $500 to $900 per month. C. VALUE OF MODERATED -RENT The City's analysis of the 1985 Lease's moderated rent, set at market rate in 1985 and then inflated only at the CPI or equivalent, has determined that the residents of Marinapark have paida rent less than market since either 1986 or a -few years later, depending upon whether the lot was bayside or interior with a bay view. The City's estimate of the difference between rent paid or to be paid to 2002 by Marinapark Lessees and the market rent is as follows (assuming Lessee has been n+ nnarinonnrk sfAnriily cineP 19R5)• Table 1. Cash Value of Type of Lot Bayfront lots (A, B) Interior Bayview Lots (C, D, E) Marinapark residents may never be able to replicate their existing circumstances. The attraction of rock -bottom rent, ample living space and a serene beachfront setting in Newport Beach does not require a great deal ofexplanation; nor does it seem to be lost on eitherfull- time or part-time residents of the Park, that they are beneficiaries of those significant amenities. The terms of Section 65863.7 limit the financial mitigation obligation to the "reasonable cost of relocation." The cost to move the majority of Park coaches has been estimated by a professional mobilehome mover to be in the range of $14,500 to $17,500. Adding an additional $1,500 per unit to compensate for the move of personal effects would produce a reasonable relocation cost range of between $16,000 and $19,000. Another mitigation option that might be considered, since it does not appear likely that a significant number, if any, of the Park coaches are likely to be moved, would be forthe City to appraise and acquire coaches on the basis of their in -place value. This approach would probably result in higher levels of compensation and provide Park residents with a greater stake with which to secure replacement housing. Either of the two mitigation possibilities described above however, and any others that may be proposed by Park residents, need to be compared against the accrued value of past City concessions. In this context, it would not be.unreasonable, based upon the City's calculated value of moderate rent, to conclude that Park residents, with perhaps a few exceptions, have received their mitigation benefits, and more. The enforceability of the waiver provisions contained in Park leases extending through the most recent lease extension, represents a fundamental -issue with respect to tenant eligibility for assistance. The closure of Marninapark would have significant impacts on full-time Park residents, a large percentage of whom are retired senior citizens on modest fixed incomes. These impacts will be measured financially and personally. As important an asset as their coach may be, the most important asset put at risk by the proposed closure is, probably, the unique lifestyle in Marinapark. Page 22 On balance, it may be that the generosity and goodwill shown by the City cannot be ignored any more than the impacts of a park closure. Assuming the current dollar value of the below market rent for just the interior bayview lots ($58,312), the $19,000 coach and personal property relocation cost has been exceeded two times over. For residents of bayview lots, the ratio of value received to potential relocation benefits is nearly 33 to 1. In the absence of historical rent concessions and advisements to tenants concerning the potential development of the Park site, there would be no reason •to hesitate recommending financial mitigation measures for both full-time and part-time households. With the record as it is, however, the writers of this Report must conclude that Park residents have received all of the benefits and consideration that they might otherwise be entitled to under the provisions of the California Mobilehome Park Closure Law. Page 23 0 Page 24 MARINAPARK MAP 1770 W. B,A,LBOA BLVD. N':WPORT BEACH, C;4, 91.GG3 ttA,XAGkR JOB ALBANO 949-723-0206 Ln N m CO a 0 9 MARINAPARI I' MWba',boaAAd.Nr tmllb kCA MW t949)723d20; 30,ATWw,'ai WP TO: ALLRASH)BMTS FROM' BXLMECHAM DendettiManagement Group DATE. June 5, 2000 SlJH.1hC .. THE CITY 19 DOING A RELOCATION SMUDY In the ongoingproeess of making decisions about the future of Marinapark, the City has rctainedPacificRelocation Consultants (PRC) to do a Relocation Impact Report, The purpose ofthis study is to help the City best understand the dollar cost`, social impact and other issues related. to the potential closure of the Conuuuuity. Fuclused with this mein is an inkuncdian sheel frnm PRC. They we requestingthar you fill out the entire form,but they have highlighted several areas that are themost important. You can fill out the form and rtun it in the enclosed eavelope, or you can call Uic Gulricb at (562) 590.8564 extension 211 and complete the forty uwr the phone, or setup an appointment to meet+viUt bet. Thu deadline for completion of the fouu is Jauar 15, 2000. While you aro uotrequuva to wmplete this form, the mnre information the City has, the most informed and c anscientious they can make. Please. feel frcc to contact me., too, if you have any questions before ;roe complete the form. My number is (949) 261.6111 extension 211. Page 27 PACIFIC RELOCATION CONSULTANTS 100 WEST BROADWAY SUITE 300 LONG BEACH CALIFORNIA 90802-4432 TEL1562)590-6564 FAX (662)495.0889 OTHER OFFICES OAKLAND PALM SPRINGS SACRAMENTO SAN DIEGO (800) 400-RELO w pacml0.wm June 28, 2000 [name] [address] [city] Dear Resident: On June 6, 2000, a letter and a survey were sent to you in order to obtain the information necessary to produce a Relocation Impact Report requested by the City of Newport Beach. To date, we have not received your response. In order to have the clearest understanding possible of the circumstances at Marina Park in Newport Beach, it is vital that we hear from as many residents and park users as possible. Please take a few minutes to complete the enclosed survey and return it to us in the enclosed postage paid envelop. Your input is very important to this survey. Our target date to obtain the survey information is July 7, 2000. If a personal interview is preferable, please call 1-562-590-8564, extension 211 and we will be more than happy to set up a convenient appointment time. Thank you for your cooperation, we look forward to hearing from you in the very near future. Very Truly Yours, Edie Gulrich Relocation Specialist enclosures Page 28 • 0 RESIDENTIAL SURVEY FOR MARINA PARK RESIDENTS Please check • the circle, or respond • where it applies to you or your family Name: Full-time Address: Do you cwuider your Newport Beach Home as your: Local Address: Street: Space A* • Full-time residence • Second Home Esdinated yearly household income (before Cuyr Ct0'' taxes): State: Zip: State: Zip. • $5000.00-$10,000.00 • $10,000.00 - $24,000.00 Telephoner Telephone: • $24,000.00 - $36,000.00 • $36,000.00 - $48,000.00 • $48,000.00 and up The distance from our mobile bone to our place Number of adults in your ionic:_ Age of children of employment is: Number of adults over 62 yrs:_ List Schools: • one mile • five miles • ten miles • over ten miles Number of children in !tome:_ • Retired Besides here, where would you like to live?: Number of bedrooms in yourMabile hunts: Dimensions of Mobile Home: Monthly space rent. What is the condition and age of $ your mobile home: • 1 • 3 Width: Existing Mortgage? • Excellent Fair • 2 • Fourormore Yes • No • Good Poor Length: years old Please list any additional haproveinenis/aineniues that have been installed at How long have you lived in the park?: your space (le. Deck or gazebo): How long have you lived in the Newport Beach Area?: Please list any special needs or disabilities: When would you be availablefor a personal interview?., Additional Continents: Please sign, date, and return this survey in the enclosed postage paid return envelope X Date: We appreciate your time and cooperation in answering erns survey. rw imunnauuu wni Ua Page 29 kept confidential, and used to develop a Community Profile. Thank Youl Page 30 MAR[NAPARK RESIDENT SURVEY Page 31 MARINA PARK RESIDENT SURVEY (Identity Protected) 08-24-00 NAME UNIT # OF # Full-time MONTHLY COACH MORTGAGE COACH # TIME IN SPACE # PEOPLE 62+ OR SECOND INCOME SIZE YIN AGE BEDROOMS PARK RENT 2 2 Full-time 5 - 10 K 20 x 40 N 32 yrs. 2 24 yrs. 874.60 2 2 Second 4 K 24 x 48 N 15 yrs. 2 15 yrs. 874.60 2 2 Second 5 - 10 K 24 x 52 N 14 yrs. 3 30 yrs. 819.28 2 2 Second 5 - 10 K 24 x 50 UNK UNK 2 26 yrs. 1,151 A2 2 2 Second 5 -10 K 24 x 48 N 22 yrs. 3 9 yrs. 1,151.42 3 1 Temp 3 mo. 5- 10 K 24 x 48 Y 12 yrs. 2 3 mo. 874.60 2 2 Second UNK 24 x 48 N 24 yrs. UNK UNK 874.60 2 2 Second 5 - 10 K 20 x 52 N 17 yrs. 2 25 yrs. 819.28 2 2 Full-time > 4 K 20 x 48 N 32 yrs. 2 14 yrs. 1,129.42 2- 2 Full-time > 4 K 24 x 51 N 24 yrs. 2 43 yrs. 1,151.42 UNK Second UNK 34 x 58 UNK 20 yrs. UNK UNK 1,151.42 UNK Second UNK 10 x 40 UNK UNK UNK UNK 1,151.42 2 2 Full-time 10 - 24 K 24 x 48 N 10 yrs. 2 28 yrs. 1,151.42 UNK Second UNK 24 x 48 UNK UNK UNK UNK 874.60 2 1 Second < 5 K 24 x 48 N 24 yrs. 2 10 yrs. 874.60 4 Full-time UNK 18-x 44 N 44 yrs. 3 15 yrs. 819.28 2 2 Full-time > 4 K UNK N 30 yrs. 2 13 yrs. 1,151.42 2 2 Second UNK 24 x 49 UNK 25 yrs. UNK UNK 1,151.42 2 0 Full-time 3- 4 K UNK N 42 yrs. 2 3 mo. 874.60 UNK Full-time UNK 24 x 46 UNK 22 yrs. UNK UNK 874.60 2 Full-time UNK 19 x 32 UNK 44 yrs. UNK UNK 819.28 3 2 Second UNK 20 x 50 N 41 yrs. 2 14 yrs. 1,151.42 2 2 Second UNK 24 x 48 N 11 yrs. 2 11 yrs. 1,151 A2 Page 32 • • MARINA PARK RESIDENT SURVEY (Identity Protectec NAME UNIT # OF # Full-time # PEOPLE 62+ OR SECOND 2 1 Full-time 2 0 Second 2 1 Second 2 2 Second 2 2 Full-time 2 2 Second 2 2 Second 4 2 Full-time 2 0 Full-time 2 1 Full-time 3 2 Second 2 0 Full-time 2 2 Second 2 2 Second 2 1 Full-time 2 2 Full-time 3 2 2 2 Full-time Full-time 2 2 Full-time UNK Second 2 2 Second 2 2 Second UNK UNK Second Page 33 MARINA PARK RESIDENT SURVEY (Identity Protected) 08-24-00 NAME UNIT # OF # Full-time MONTHLY COACH MORTGAGE COACH # TIME IN SPACE # PEOPLE 62+ OR SECOND INCOME SIZE YIN AGE BEDROOMS PARK RENT 1 1 Full-time <-1500 20 x 54 N 20 yrs. 2 7 yrs. 819.28 2 1 Second UNK 24 x 52 UNK 10 yrs. 2 8 yrs. 1,151.42 2 2 Second > 4 K 24 x 54 N 13 yrs. 2 9 yrs. 1,151.42 1 1 Full-time UNK 24 x 4B UNK 22 yrs. 2 10 yrs. 874.60 1 1 Second UNK 24 x 50 UNK UNK UNK UNK 874.60 2+ 0 Full-time UNK 22 x 59 UNK 7 yrs. UNK UNK 819.28 1 0 Full-time 3- 4 K 24 x 51 N 14 yrs. 3 22 yrs. 1,151.42 3 1 Second UNK 21 x 50 n UNK 2 25 yrs. 1,151.42 2 2 Full-time 2- 3 K 24-x 48 N 7 yrs. 2 26 yrs. 874.60 2 2 Full-time UNK 24 x 51 N 30 yrs. 2 30 yrs. 874.60 2 0 Full-time. < 5 K 24 x 42 N 22 yrs. 1 2 25 yrs. 819.28 Page 34 • • MARINA PARK RESIDENT SURVEY (Identity Protected) 08-24-00 NAME UNIT # OF # Full-time MONTHLY COACH MORTGAGE COACH # TIME IN SPACE # PEOPLE 62+ OR SECOND INCOME SIZE YIN AGE BEDROOMS PARK RENT 2 1 Full-time 5 - 10 K 24 x 48 N 13 yrs. 3 25 yrs. 874.60 2 0 Second UNK 24 x 48 N 18 yrs. 2 12 yrs. 874.60 2 1 Second <5K 20 x 50 UNK 39 yrs. 2 5 yrs. 819.28 2 2 Second UNK 24 x 48 N 15 yrs. 3 25 yrs. 1,151.42 2 2 Full-time 15 K 24 x 48 N 24 yrs. 2 5 yrs. 1,151.42 2 2 Second 3- 4 K 24 x 48 N 14yrs. 3 30 yrs. 874.60 2 2 Second UNK 20 x 50 N 29 yrs. 2 15 yrs. 819.28 4 2 Full-time UNK 24 x 48 UNK 22 yrs. 3 12 yrs. 1,151.42 2 0 Full-time < 5 K 24 x 48 N 18 yrs. 2 15 yrs. 1,151.42 2 1 Full-time UNK 24 x 48 UNK UNK UNK UNK 874:60 3 2 Second > 4 K 24 x 48 N 24 yrs. 2 14 yrs. 874.60 2 0 Full-time UNK Sngl -UNK UNK UNK UNK 819.28 2 2 Second 5 -10 K 24 x 48 N 14 yrs. 3 24 yrs. 1,151.42 2 2 Second > 4 K 24 x 48 UNK 25 yrs. 2 30 1,151.42 2 1 Full-time 5 -10 K 24 x 48 Y 22 yrs. 2 10 yrs. 874:60 2 2 Full-time 2- 3.K 24 x 48 N 22 yrs. -2 30 yrs. 874.60 3 2 2 2 Full-time Full-time > 2 K 5 - 10:K 20 x 52 24 x 48 N N 23 yrs. 24 yrs. 2 2 9 yrs. 26 yrs. 819.28 1,151.42 2 2 Full-time 5 -10-K 24 x 48 N 14 yrs. 2 29 yrs. 1,151 A2 UNK Second UNK 22 x 52 UNK 33 yrs. UNK UNK 1,151.42 2 2 Second > 4 K 24 x 50 N 21yrs. 2 27 yrs. 1,629.42 2 2 Second > 4 K 22 x 45 N 35 yrs. 2 29 yrs. 874.60 UNK UNK Second UNK 24 x 48 UNK 20 yrs. 2 UNK 874.60 Page 33 0 • MARINA PARK RESIDENT SURVEY (Identity Protected) 08-24-00 NAME UNIT # OF # Full-time MONTHLY COACH MORTGAGE COACH # TIME IN SPACE # PEOPLE 62+ OR SECOND INCOME SIZE Y/N AGE BEDROOMS PARK RENT 1 1 Full-time < 1500 20 x 54 N 20 yrs. 2 7 yrs. 819.28 2 1 Second UNK 24 x 52 UNK 10 yrs. 2 8 yrs. 1,151.42 2 2 Second > 4 K 24 x 54 N 13 yrs. 2 9 yrs. 1,151.42 1 1 Full-time UNK 24 x 48 UNK 22 yrs. 2 10 yrs. 874.60 1 1 Second UNK 24 x 50 UNK UNK UNK UNK 874.60 2+ 0 Full-time UNK 22 x 59 UNK 7 yrs. UNK UNK 819.28 1 0 Full-time 3-- 4 K 24 x 51 N 14 yrs. 3 22 yrs. 1,151.42 3 1 Second UNK 21 x 50 n UNK 2 25 yrs. 1,151.42 2 2 Full-time 2- 3 K 24 x 48 N 7 yrs. 2 26 yrs. 874.60 2 2 Full-time UNK 24 x 51 N 30 yrs. 2 30 yrs. 874.60 2 0 Full-time < 5 K 24 x 42 N 22 yrs. 2- 25 yrs. 819.28 Page 34 L J 0 0 0 Page 36 0 0 Page 37 0 Page 38 I t _, - -- -*- « — Page 39 Page 40 Page 41 0 Page 41 6 11 /hUG30-00 Y0.8U nM VULVLI lov V4200VOI40 P.07 CAL - SET MOBILE • MODULAR HWAF INSTALLAI ION M1O.Be:t7ti, II7,AMta G[10lrc, GNfDmla.'Jtlt16 7N95`4221 7)41tlIQZ79 tti 60tl Z7S! jvt e-10A t'AeK. i 77o W Sf4+-'�,c�sl Spat:< 1 A I yE, 2-G; re %'a MLtcN LOOK Nge-Deb 70 Tenn LxwN Flan,- 4 POCPAtsE fbtt- StFtPY,nfr, keVW' t+RL E ANb iC1-G 1 Wpc:Y_ aj$Mt, ___. E�si lrt+LN'7Fh CO'4T 't ��J2 :Tfm 1-tMtf 1�LE. OTt1£SZ -CCAZ Tywr.1 Home ,oNlty 71La65 C�PRC��� �' 1'LxL�'S hS 13e.�DE,U. .�•�'i'I'�t ttCrc�lEs D M-A AccEs�t�t , SrLe�ra4, FV.c:Hcs � Aub AwNtn+Gs ESMMATrS� [p5r � . boo¢ r e Ot,Nf l2A°LtW1L1E. f+W -(-CAP,. cdnJ . `1SLWOf 4iPFS 4A!�LC4� Sit---r0MC Lue^L}I PCAYL'C.) DFAW :�K.t tL'T•i w7Cyr $4C15� AvJA r90".. N E`3T NT! eb COS-f* �ytcrv, Page 43 • 0 TO: Sharon Wood, Assistant City Manager FROM: Dave Kiff DATE: June 26, 2001 RE: Sutherland-TalWs Report for a Hotel at Marinapark I have a few comments based on the plans submitted and the text associated with the plans: - Water Quality Treatment. The project proponent appears to have effectively addressed a concern that I would have raised (and later the Coastal Commission and Regional Board) about including a Standard Urban Stormwater Mitigation Plan (SUSMP) that would catch, treat, and then remove dry weather runoff and the "first flush" of rainfall via the use of a clarifier. I missed the exact location of the clarifier within the complex, but I did see it on one of the diagrams provided. - Additional Water Quality Protections. There are additional devices and structures that the project proponent may wish to add to the proposal - these include: • a vessel pumpout station at each of the two marina facilities (since the current marina at the American Legion has one); • Permeable walking or driving surfaces - or, alternately - strips of permeable surfaces interwoven with paved surfaces where appropriate. Decomposed granite, short grasses, and other "breaks" in the pavement may lessen the load on the clarifier and may serve as an example to residents or business owners who may visit the property, later taking home and implementing the water quality ideas they saw at the Resort. • Use landscaping with low or no irrigation requirements; -- Access. Given that much of the property is state tidelands, there should be no limitation on access to public areas that says "Newport Beach residents only" or similar. Any lands, docks, courts, or facilities that are open to non-paying guests of the Resort must be open to anyone regardless of community of residency. -- Coach Removal. During the coach demolition and removal phase, the proponent will have to ensure that any coaches demolished are done so in accordance with the South Coast Air Quality Management Districts standards for asbestos, dust, and more. Those are my thoughts in advance of any further discussion.... 0 CITY OF NEWPORT BEACH G Oil Wells Beacon Bay Balboa Bay Club Marina Park Balboa Yacht Basin Regular BYB Temporary Slips Basin Marine Shipyard Garages Electricity Heritage Yach Broker Galley Cafe Apartments Total BYB Basin Marine w/o Basin Marine Moorings/Piers Live Aboard Permits SELECTED LEASE REVENUE 2001 Gen Fund Tidelands Totals 5624 $ - $ 967,992.00 $ 967,992.00 5412 $611,357.00 $ 652,294.00 $ 1,263,651.00 5475 $ - $1,851,514.20 $ 1,851,514.20 5670 $395,400.00 $ - $ 395,400.00 5421 $666,130.00 $ 588,400.00 $ 1,254,530.00 5422 $ 2,409.00 $ 2,136.00 $ 4,545.00 5423 $ 53,464.00 $ 47,411.00 $ 100,875.00 5424 $ 27,386.00 $ 23,982.00 $ 51,368.00 5426 $ 7,425.00 $ 6,584.00 $ 14,009.00 5427 $ 8,184.00 $ 7,614.00 $ 15,798.00 5428 $ 15,846.00 $ 17,188.00 $ 33,034.00 5429 $ 77,578.00 $ 99,681.00 $ . 177,259.00 $858,422.00 $ 792,996.00 $ 1,651,418.00 $ (53,464.00) $ (47,411.00) $_ (100,875.00) 4601 Pier Permits Reg. Fees 4650 Mooring Fees 4652 Pier Permits 4654 Total 1. OIL WELLS -16. $804,958.00 $ 745,585.00 $ 1,550,543.00 $ - $ 3,123.00 $ 3,123.00 $ - $ 444,715.00 $ 444,715.00 $ - $ 630,106.00 $ 630,106.00 $ - $ 46,413.00 $ 46,413.00 $ - $1,124,357.00 $ 1,124,357.00 2. BEACON BAY, AND # OF LEASES (71), AND APPROX. LAND AREA (414,641 sq ft. excluding right of way) fi '4101. �� f- lease LNCr4pl'C1 3. B.BAY CLUB, AND APPROX. LAND AREA (551,135 sq.ft.), AND IF THAT RENT GOES UP AFTER CONSTION IS COMPLETED - After April 25, 2003, or the issuance of the Certificate of Occupancy (whichever is first) the base rent is increased from $46,833.34/mo. to $93,750.00/mo plus percentage of gross rent. 4. MARINA PARK, # OF LEASES (55), AND APPROX. LAND AREA (424,590 sq.ft.), AND WHAT THE PROJECT 1 RENT WOLD BE FOR THE PARK FOR A FULL YEAR AT THE NEW PROPOSED HIGHER RENT RATES. Estimated rents = $1,326,800, Estimated expenses = $150,000, for a net income of $1,176,800. 5. BALBOA YACHT BASIN (EXCLUDING BASIN MARINE), AND # LEASES (171 slips, 33 garages, 4 apartments) AND APPROX. LAND AREA. (306,164 sq. ft., including water and Basin Marine property). 6. OFFSHORE MOORINGS, AND # OF LEASES. (598 offshore moorings - rental agreements (not leases)). w City of Newport Beach City Council Minutes November 14, 2000 added that the price may be less than $60,000. He indicated that the tarty may be able to do the change if Council modified the recommendation by authorizing a larger budget amendment and awarding the contract with direction to negotiate a change order to install additional panels to complete the project. If this cannot be done, staff will bring this back to Council for further direction. Motion by Council Member Debay to 1) approve the plans and specifications; 2) authorize an $80,000 appropriation from the Gas Tax Fund to Account No. 7181-05100563 (BA-013); 3) award the contract to A & M Construction with the direction that staff negotiate a change order to install additional panels to complete the project and authorized the Mayor and the City Clerk to execute the amended contract. Jim Hildreth, 120 The Grand Canal, suggested trying some of the television miracle products that claim they clear lenses. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None 15. AGREEMENT WITH SUTHERLAND TALLA HOSPITALITY TO DEVELOP PROJECT DESCRIPTION, PROCESS DEVELOPMENT PLAN, AND NEGOTIATE GROUND LEASE FOR MARINAPARK. INDEX In response to Council Member Glover's questions, Assistant City Manager Wood stated that the agreement is one step in the process and is in response to Council direction in August to prepare an agreement with Sutherland Tells to set the three year time period in which the City would work exclusively with them to develop a potential project for the site and to set the responsibilities for that time period. She pointed out that the agreement is not approving any kind of development or project and is not giving Sutherland Talla any guarantees that anything would be approved in the future. She emphasized that lease negotiations would begin only if a project is to be approved and pointed out that the City retains its full authority to approve, modify, or deny the project. "Skipper Tim" Bercovitz, 1240 "D" Balboa Boulevard, stated that he is a member of the Executive Board of American Legion Newport Harbor Post 291, and the Commodore of the American Legion Yacht Club. He requested that this item be continued until the next meeting since they were never noted that their interests were the subject of a vote tonight. He read the title from the agenda and noted that it does not even mention the Legion. He added that the map attached to the agreement erroneously describes the property which is occupied by the Legion as Marinapark, pointing out that they are only contiguous to the Marinapark Mobile Homes but are a completely different entity. Volume 53 - Page 680 C-3389 Marinapark (38173) City of Newport Beach City Council Minutes November 14, 2000 Mr. Bercovitz emphasized that the staff report states that Council encouraged Sutherland Tells to work with the Legion and stated that the concerns of the Legion should be specifically addressed in the agreement. He indicated that they only became aware of the report today and asked if the Legion can be placed on a mailing list so they can be notified of future reports. City Attorney Burnham stated that the agreement establishes a process that gives Council Bole and exclusive authority to determine what project would be considered for the Marinapark parcel. He indicated that he believes that Mr. Sutherland fully understands Council's direction regarding resolving issues with the Legion and noted that he told Council that the City does not have the legal authority to delegate the responsibility for zoning, planning, and project description decisions on City property to a third party. He stated that the agreement also establishes a process in which a draft project description is required to undergo at least one community forum sponsored by the City that includes Mr. Sutherland and all other interested parties. Mr. Burnham apologized for not sending a copy of the staff report to the American Legion as they are on the mailing list. INDEX Steven Sutherland, Sutherland Tells Hospitality, stated that he has had a number of meetings over the past two years with Legion officials, including current Commander Dennis Lahey. He indicated that he spoke with Mr. Lahey 10 days ago and tried to arrange a meeting with him and other Legion officials for last Friday, but it did not happen. He stated that he also spoke to Mr. Lahey today who told him he would not be attending tonight's meeting but agreed to arrange future meetings where they will continue discussions about the proposal, including the proposal for a new Legion facility that would be built and paid for by his company. He reported that the proposed Legion would still be on the waterfront and would allow them to maintain their yacht club and continue the festivities they have been putting on for the community. He stated that the agreement is the first step of many that started two years ago and expressed hope that it will be approved tonight. He pointed out that the City put out a Request for Proposal (RFP) for this property in November 1999, eight proposals were submitted and reviewed, further information was requested and supplied, and Council determined that only Sutherland Talla's proposal was complete. Mr. Sutherland reiterated that the approved agreement would be the first of many steps, adding that there would be many months of work involved in order to put together the resort project, including generating the site sections, all floor plans, elevations, roof plans, and scaled models. Following that, he stated that they would then conduct community outreach meetings and programs, come before Council again, and basically get a minimum of 10 approvals from City and State agencies. He added that, in addition to having the Legion in agreement with what they are proposing, the project would then be placed on a ballot to be voted on by the residents of the City. This would really be the final say as to whether or not a project will be built on that site. He requested that Council approve the agreement so they could at least begin this process, knowing full -well that it will be a long, hard process. Volume 63 - Page 681 City of Newport Beach City Council Minutes November 14, 2000 Mayor Noyes indicated that he is not inclined to continue this item because the City made it clear at the meeting a few months ago that this project would not happen unless the Legion approved the project and pointed out that Sutherland Tells realizes this. He stated that Council should do what they said they were going to do, which is to draft this agreement, adding that the Legion is not in any more jeopardy because of this agreement than they were before the agreement. Nancy Skinner, 1724 Highland Drive, expressed the opinion that the agreement being the first of many steps is the wrong first step. She stated that Council made it very clear that the very lust step should be an agreement with the Legion and recommended denying the agreement -with Sutherland Tells. Jim Hildreth, 120 The Grand Canal, stated that his grandparents and other family members were in the Navy and believed that the City should continue to pay respect to them by having a Legion. He pointed out that they have been moved once and do not need to be moved again. In response to Council Member Ridgeway's question regarding noticing requirements, Mr. Burnham stated that the City does not have any legal obligations to provide public notice of this agreement. He indicated that the agreement provides much more public participation in the development of a project description than the City has ever had before in any public project. He pointed out that, usually when the planning process begins, Council is presented with the project, however, in this situation, the community, users, and Sutherland Talla are going to develop the project description and then present it to Council. Council has every right to modify or deny the project. In response to Ms. Skinner's previous statement, Council Member Ridgeway reported that Council approved a two year lease extension agreement with the Legion at the last Council meeting. He expressed the opinion that it is going to be very difficult for Mr. Sutherland to reach a consensus, but indicated that he is satisfied that there are safety guards built into the process for the Legion. Motion by Council Member Rid¢ewav to approve the agreement. INDEX Mayor Pro Tern Adams asked Mr. Sutherland why the agreement needed to be approved prior to beginning discussions with the Legion. He indicated that he was comfortable with the agreement, but wanted the explanation aired out at this meeting. Mr. Sutherland stated that Council's direction was that there would be no project without Legion support, which does not mean there would be no initial agreement without Legion support. He indicated that he has started work on the site plan for the 181^ Street end of the property, including color renderings of what he is proposing for a new American Legion Hall. He noted that he has copies with him tonight, could provide one to Mr. Bercovitz, and has notified Mr. Lahey that they are complete. He stated that there is months of work to be done even before there could be complete agreement. Further, a true understanding of everything that is planned for the site cannot be reached without having all the information available. He expressed his understanding that he must Volume 53 - Page 682 City of Newport Beach City Council Minutes November 14, 2000 have the Legion in agreement approved. any Noting that the agreement is for three years, Mayor Pro Tom Adams noted that Mr. Sutherland could learn in two months that he has reached a stalemate with the Legion and expressed concern that the property would be tied up for three years. Mr. Burnham clarified that the agreement states that Sutherland Talla has 180 days to submit a draft project description to staff, staff and the community will then review it, the description is modified in response to community comments, and then it would come before Council. He noted that the agreement is clear that Council retains all of its discretion to do what it feels is appropriate with the parcel. Council Member O'Neil added that, under Measure S, the citizens could vote the project down if there is the perception that Council has not done its due diligence and has not properly reviewed the project through the entire process. He expressed the opinion that Sutherland Tells is taking a tremendous risk and spending a great deal of money with the full knowledge that this is what may happen to the project. Council Member Glover stated that she is not going to support the motion even though she believed that the project is a good project and the City should be proud to have a five star hotel. She noted that she has known the Sutherland family for about 16 years and added that she considers herself to be a capitalist and pro -business, and has great respect for Mr. Sutherland. However, she does not believe that this project will have community acceptance, which is something beyond just the Legion accepting it. She expressed the opinion that it is not worth it for the community to tear itself up, especially since the City has just went through Measure S. Mayor Noyes complimented Council Member Ridgeway for making the motion because he will be unfairly criticized for making it since there is so much emotion behind it. He stated that he believes he made the motion because he knows that it is the fair thing to do. He indicated that Mr. Sutherland deserves every right to move forward. The motion carried by the following roll call vote: Ayes: Thomson, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: Glover Abstain: None Absent: None 17. SWEARING IN DATE FOR NEW CITY COUNCIL MEMBERS. Mayor Pro Tem Adams stated that he pulled this item from the Consent Calendar so that the public is aware that the new Council Members will be sworn -in at the December 12 Council meeting. Motion by Council Member O'Neil to set Tuesday, December 12, 2000 as the date for the swearing in ceremony for new City Council Members. Volume 53 - Page 683 INDEX City Council Swearing -In (33) CITY OF NEWP ORT BEACH MEMORANDUM TO: Jay Elbettar, Building Director FROM: Dave Kiff, Deputy City Manager DATE: November 1, 2000 RE: Marinapark Coach Demolitions In anticipation of Marinapark's possible closure in March 2002, the City Council has directed me to purchase any coach that may become available for sale (if the price is reasonable). At my discretion, I may retain, remove, or direct the demolition of the coach upon purchase. As you are aware, I made a mistake regarding Space 10B's demolition by not directing our management company at Marinapark, Bendetti Property Management, to direct the demolition contractor to seek a demolition permit from the Building Department prior to any coach demolition. After speaking with your staff and with Mr. Dan Russell of the South Coast Air Quality Management District ("AQMD"), I have pledged to prepare this memo for you and for our property records to establish an appropriate procedure for us to follow prior to any coach demolitions. The procedure shall be as follows: 1- The contractor shall apply for a Demolition Permit on behalf of the City at least fourteen (14) days prior to any proposed demolition. 2 - Before issuing a demolition permit, the Building Department shall require: A - That the contractor acquire a current City Business License. B - That the contractor complete a "Notification of Demolition or Asbestos Removal" form per Rule 1403 of the South Coast AQMD (Attachment C - also available at www.agmd.gov/rules/html/rl403.htm1). This notification will also require the payment of a SCAQMD fee depending upon the size of the coach to be demolished. Forms and fees shall be sent to: SCAQMD Asbestos Notifications, File #55641 Los Angeles, California 90074-5641 C - That the contractor complete a Facility Survey (also per Rule 1403 - Attachment B). Per Rule 1403, if the Survey indicates the presence of asbestos, then the contractor must provide 10-days' notice of an asbestos abatement. If the coach will be demolished after the removal of the asbestos, then the contractor must provide a second 10-day notification. The two 10-day notifications may run almost simultaneously if the contractor chooses to use BOTH notices should the contractor City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659-1768 • Memo to Jay Elbettar November 1, 2000 Page 2 suspect that asbestos is, indeed, present. If the "facility survey" indicates there is no asbestos present, then only one 10-day notification is necessary for the demolition. D - That the contractor provide the City with signed copies of any notification forms. Such forms shall be filed with the Demolition Permit. E - That any asbestos abatement contractor be both State licensed and registered with Cal/ OSHA. 3 - When the above steps are complete and the contractor or the City has -received the go-ahead from AQMD, the Permit Technician may issue the demolition permit per his or her discretion. I have attached a map of Marinapark (Attachment A) for your staff to use and to update as the coach removals and demolitions continue. Two coach areas are marked as of the date of this memo, thus identifying Marinapark coaches that have been purchased and removed or demolished. If you have any questions about this memorandum, please contact me at 949-644-3002. Appropriate contacts at the South Coast AQMD include Dan Russell (909-396-2333), Sam Vergara (909-396-2318), or Mohan Nagavedu (909-396-3739). Attachments: A - Marinapark Map B - Rule 1403 & and related instructions C - Notification of Demolition or Asbestos Removal & related instructions cc: Jim Sinasek, Code Enforcement Supervisor Bill Mecham, Bendetti PropertyManagement w/attachments Mr. Dan Russell, South Coast AQMD Homer Bludau, City Manager w/out attachments Patty Temple, Director of Planning Dennis Danner, Administrative Services Director City of Newport Beach City Council Minutes August 22, 2000 Mayor Noyes announced that the purpose of the Web Site Review Ad Hoc Committee will be to review what should and shouldn't be allowed on the City's web site. Mayor Noyes appointed Council Member Ridgeway and Mayor Pro Tem Adams to the committee, with Council Member Thomson as the Chairman. Council Member Ridgeway requested that Management Information Systems Manager Paul Malkemus also be a member of the Committee. Motion by Council Member Glover to adopt Resolution No. 2000-79 establishing a Web Site Review Ad Hoc Committee; and confirm Mayor Noyes' appointment of Council Member Ridgeway, Mayor Pro Tem Adams and Council Member Thomson (Chairman) to the Web Site Review Ad Hoc Committee. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: Ridgeway Absent: None 22. SUPPLEMENTAL INFORMATION IN RESPONSE TO REQUEST FOR PROPOSALS FOR FUTURE USEIDEVELOPMENT OF MARINAPARK. Council Member Ridgeway stated that he would have to recuse himself from discussing or voting on the item at the current meeting. He stated that the City Attorney is attempting to determine if there is a conflict of interest or an economic impact on Council Member Ridgeway's property, since he lives within 1000 feet of the Marinapark property. Assistant City Manager Wood stated that the City received eight proposals in February in response to the City's request for proposals for future use or redevelopment of the Marinapark site. An economic analysis of the proposals was presented to the City Council at its meeting of May 9, 2000. And, at that time, the City Council asked that supplemental information be provided for all of the proposals. She stated that five of the proponents sent in the additional information requested by the July 17, 2000, deadline. Assistant City Manager Wood stated that the Parks, Beaches & Recreation Commission sent a letter reaffirming their interest in maintaining recreational and community facilities on the site. She stated that, recently, the American Legion informed the City that they did not supply supplemental information because they felt their original proposal was sufficient. Assistant City Manager Wood stated that staff reviewed all of the proposals and supplemental proposals, and found that Sutherland Tells Hospitality was the only one to provide all of the information requested. She stated that the dimension site plan and market feasibility study were most important, since they answered the questions about the possibility of all of the proposed uses being accommodated at the site and if the market demand was there for INDEX Ad Hoc Lommittee (24) Marinapark Proposals (73) Volume 53 - Page 565 City of Newport Beach City Council Minutes August 22, 2000 INDEX those uses. Assistant City Manager Wood stated that Terra Vista Management ranked a close second. She stated that although they did not provide all of the information requested, they maybe didn't necessarily have to since they were proposing to basically leave the property at status quo. Assistant City Manager Wood stated that the staff report includes a few options that the City Council might want to consider in regards to their action on the item at the current meeting. She added that there are two outstanding legal issues to keep in mind. They include the tideland boundary decision and the relocation impact study, if the mobile home park were eliminated. She added that one option at the current meeting would be to wait for these legal issues to be resolved. Assistant City Manager Wood stated that another option would be to narrow the field of proponents, without making a final decision on the use of the property. She stated that if this option is chosen, staff would recommend that Sutherland Talla Hospitality and Terra Vista Management be selected. Assistant City Manager Wood added that the City received a letter earlier in the day from RHO Communities. She stated that RHO Communities had originally proposed a mix of uses for the site, but the letter informed the City that they would also like to be considered if the property is left at status quo. Assistant City Manager Wood stated that another option for the City Council would be to determine that a hotel is appropriate for the site and direct staff to enter into more serious discussions with one of the hotel proponents. Per Mayor Noyes' request to provide some background on the item, City Attorney Burnham explained that the City sought proposals because it wanted to determine what the market would propose for the use of the Marinapark site. He added that the Marinapark tenant lease expired in April and was extended for two years. He stated that the City has been trying for eighteen months to two years to get a written determination from the State Lands Commission on the tideland boundary for the site. Council Member Debay confirmed with City Attorney Burnham that the previous lease and the lease extension with the Marinapark tenants included provisions that the Marinapark site may no longer maintain the mobile home park use. Council Member Debay requested that the Assistant City Manager explain a recent article in the Orange County Register that indicated that the City was intending to eliminate the American Legion and the Girl Scout house from the Marinapark site. Assistant City Manager Wood stated that there was a misunderstanding that the City had removed the American Legion proposal from further consideration. She explained that when a supplemental proposal was not received, the City assumed that the American Legion was not interested in being considered. She stated, however, that the problem may have been due to a change in leadership at the American Legion or their belief that if nothing from their original proposal had changed, they did not need to submit a supplemental. Regardless, when she learned that they did still want their original proposal to be considered, she suggested that the American Legion submit a letter explaining their intention. Assistant City Manager Wood stated that the letter was submitted and is included in the agenda packet. Volume 53 - Page 566 0 • City of Newport Beach City Council Minutes August 22, 2000 INDEX Council Member Debay further confirmed that the City Council and staff are not intending to get rid of the American Legion or the Girl Scout house. Mayor Pro Tem Adams confirmed with Assistant City Manager Wood that a letter asking for supplemental information to their proposal was sent to the American Legion. Assistant City Manager Wood felt that the problem may have been due to a change in leadership during that same time. Mayor Pro Tem Adams confirmed with City Attorney Burnham that the decision by the State Lands Commission on the tideland boundary may not effect some of the proposals either way. City Attorney Burnham added that the location of the tideland boundary is only relevant to those projects that include some residential use of the site. Mayor Pro Tem Adams asked for a list of the requirements that would follow if the City Council chose a proposal at the current meeting, including the entitlement process and the California Environmental Quality Act (CEQA). He specifically asked about the identification and analysis of alternative uses in the environmental documentation process, and suggested that the alternative uses would possibly include the proposals not selected. Assistant City Manager Wood confirmed that if the project selected required an environmental impact report (EIR), alternative uses would have to be analyzed as a part of that process. She added that one alternative would be the status quo. Mayor Pro Tem Adams asked for a definition of status quo in this case, since the leases have expired. City Attorney Burnham stated that the status quo would be the current uses. Mayor Pro Tem Adams asked for an outline of what would take place from the time the City Council selected a proposal to an actual change in the use at the site. City Attorney Burnham stated that the list would include a project description, an initial study, a general plan amendment, a zoning designation, an environmental document and a coastal development permit. Assistant City Manager Wood added that it would also include an amendment to the Local Coastal Program (LOP). She stated that one of the " first steps would be an in-depth study of the economic proposals to make sure that what is being proposed will generate the lease and tax revenue expected. Mayor Pro Tem Adams asked how the options being considered for the Marinapark site compare to the previous request of the Cultural Arts Center in regards to giving the exclusive rights to pursue entitlement for a portion of a site. City Attorney Burnham explained that the Cultural Arts Center request would have reserved a particular piece of land for a specific purpose, which is a land use decision. He stated that in the case of the Marinapark site, the options before the City Council related to selecting a proposal are with the understanding that a specific project for the site is not being selected. City Attorney Burnham stated that the direction to staff would be to bring back an agreement that would include the provision to negotiate exclusively with the project proponent, once the approval process was completed. Mayor Pro Tem Adams confirmed that the project proponent would have the opportunity to modify the land use proposals, and he Volume 53 - Page 567 City of Newport Beach City Council Minutes August 22, 2000 INDEX specifically asked if the details regarding any possible relocation of the American Legion could be resolved during the entitlement process. City Attorney Burnham stated that some issues could be resolved at staff level with the project proponent, but it would be the City Council that would make the final determination about what project would be approved. Mayor Pro Tem Adams further confirmed that if the City Council selected a proposal at the current meeting, there would still be flexibility and control over the project. Council Member Debay further clarified that the City Council is not selecting a specific project at the current meeting or determining that the site wouldn't remain at the status quo, but only considering the selection of a proposal which would give that project proponent the exclusive right to negotiate with the City. City Attorney Burnham added that the City Council's action would only direct staff to draft an agreement and wouldn't give the project proponent exclusive rights until that agreement is approved and executed. Council Member Glover confirmed that the project proponent would only be given the authority to work with various groups. She further confirmed with City Attorney Burnham that a timeframe for accomplishing the requirements of the process could be included in the agreement provisions. Council Member Glover asked if there was the possibility of the EIR process beginning before the City Council approved a project. City Attorney Burnham stated that the requirement for an EIR couldn't even be determined until a firm project was decided upon. Council Member Glover asked what an appropriate timeframe might be for a project proponent to present a project to the City Council. Assistant City Manager Wood suggested that ninety days might be appropriate. Council Member Glover asked if the relocation study and a plan for its implementation, as well as the negotiations with the parties currently on the site, could be accomplished in that amount of time. Assistant City Manager Wood stated that the City is requesting a relocation impact report, which would provide information on what the economic impacts to the residents would be. Mayor Pro Tem Adams asked if the decision at the current meeting would lead to a development agreement. City Attorney Burnham stated that the action would only give the developer the exclusive right to negotiate with the City relative to construction of the project, assuming that all approvals and documentation were completed. He stated that the agreement would also include timeframes for the completion of the requirements, leading up to environmental documentation, a general plan amendment, an LCP amendment and a zone change. He stated that the agreement would not include approval of a project. Mayor Pro Tem Adams suggested that there might be two sets of timeframes. Council Member Glover stated that a project could not be approved until a general plan amendment were approved by the Planning Commission and the City Council. City Attorney Burnham added that the steps would include the general plan amendment, the LCP amendment, the zoning designation and any other specific land use approvals that might be needed to implement the project. Assistant City Manager Wood stated that the Volume 53 - Page 568 0 City of Newport Beach City Council Minutes August 22, 2000 INDEX process is not uncommon. She stated that often a negotiating agreement is followed by a disposition agreement, which would include the project description, the financial arrangements and the schedule for accomplishing all of the entitlement approvals. City Manager Bludau added that staff could come back to the City Council with what components should be included in an agreement. Council Member Debay asked if the cost of relocation for those tenants using the mobile home park as their second homes is included in the impact study. Assistant City Attorney Clauson stated that the relocation impact report would only be done if the City Council decided to close the mobile home park. She stated that the report would include information on the costs to relocate the homes, the existing conditions of the homes and whether they are primary or secondary residences. She added that the focus is on the relocation of residents of the park and the options available. Assistant City Attorney Clauson stated that the report would also consider the factor in the lease that was entered into in 1985 that indicated to the residents that they acknowledged the fact that they are getting reduced rents to help pay for the relocation impact costs. She stated that the report is still required so that the City Council is made aware of the impacts of closing the park. Chris Shingleton, President of the Girl Scout Council of Orange County, thanked the City for the cooperative relationship with the Girl Scouts program center and boating program. She stated that any loss of the Girl Scout program center on Balboa Boulevard would be a tremendous impact to the Girl Scouts. She requested that the City Council make a commitment by requiring that any proposal accommodate the Girl Scout program center. She stated that the facility has been a major part of Girl Scout life in Newport Beach since 1947. She stated that there are currently over 900 girls in 65 troops that use the facility. Ms. Shingleton noted that the Sutherland Talla Hospitality proposal does preserve the program center, but the Terra Vista Management proposal does not guarantee it. Mayor Pro Tem Adams asked if Ms. Shingleton supported the Sutherland Talla Hospitality proposal. She responded by stating that the Girl Scouts support any proposal that preserves and protects the program center. She added that it .would also be appreciated if a proposal included the enhancement of the facility. Mike Johnston, 641 St. James Road, stated that he couldn't understand how the City Council could state that they're not interested in moving the American Legion when some of the proposals being considered propose to do so. He additionally stated that if a proposal is selected at the current meeting, a project is really being selected also. Mr. Johnston stated that he heard someone say that the City shouldn't support the American Legion because many its members don't live in Newport Beach. He stated his concern for people who do not have service records and may underestimate the debt owed to the legionnaires. Mr. Johnston stated that a promise was made to the American Legion by a previous administration that they would not have to move. He stated that Post 291 is unique because it is the only post that is also a recognized yacht club. He stated that membership in the American Legion must be earned. He stated that when there are no longer Volume 53 - Page 569 • City of Newport Beach City Council Minutes August 22, 2000 INDEX legionnaires to man Post 291, then the City would have the entitlement to reclaim the site. Council Member Debay stated that no one on the City Council is denigrating the American Legion. Mayor Noyes stated that the comment Mr. Johnston heard about someone not supporting the American Legion did not come from a council member. Mayor Noyes stated that the City Council desires to include the American Legion in the negotiation process. Tod White, 1120 E. Balboa Blvd., President of the Balboa Peninsula Point Association, stated that three years ago, he conducted a survey of association members regarding the alternative uses for the Marinapark site. He stated that the responses were 70 to 95% in favor of keeping the American Legion, the Girl Scout house and the public parks. He stated that there was no support for increased traffic or a hotel. He suggested that a resident quality of life analysis be done for the proposals, as well as the economic analysis and environmental impact analysis already being planned. Mr. White asked that the City Council give great weight to the opinions and feelings of the residents on the peninsula. Tom Hyans, President of the Central Newport Beach Community Association, stated that the mobile home park is a resident friendly, problem free, revenue -generating asset. He read from a letter written in February of 1997 that states the Association's support of continuing with the existing uses at the Marinapark site. It also stated that the Association supports public access to the beach and does not support any decentralization of commercial uses on the peninsula. Mr. Hyans stated that he heard that the traffic attributed to the proposed resort was underestimated and he asked Assistant City Manager Wood to explain the error. In conclusion, he stated that the proposed project on the Marinapark site is just another project to be placed on the City's waterfront, and he listed several other projects on the bay. Council Member Glover asked Mr. Hyans about the number of people that utilize the beach at the Marinapark site. Mr. Hyans stated the beach gets a lot of use on the weekends, especially by families with young children. Mayor Noyes stated that the responsibility and obligation of the City Council is to make sure that the Marinapark site, which is City -owned property, is serving the citizens of Newport Beach in a profitable way while offering the highest use. He stated that allowing the current tenants to pay half of the market rate is giving a gift of the land. Virginia Herberts, Balboa Peninsula Point Association, stated that she and her community association are in favor of a quiet use of the property, as currently exists. She stated that she heard there would be an additional 652 trips per day if a hotel was put on the property. Ms. Herberts stated her dissatisfaction with the current traffic and stated that she doesn't want to see any more traffic. She stated that there is no room for the current residents at the beaches or parks, and she doesn't want to see an increase in Volume 53 - Page 570 City of Newport Beach City Council Minutes August 22, 2000 tourists. Per Council Member Glover's request, Assistant City Manager Wood explained that the May 9, 2000, report to the City Council included a rough projection by the Public Works Department of the traffic that would be generated from each proposal. She stated that an actual traffic study has not been done. Assistant City Manager Wood stated that the mobile home park generates roughly 300 trips, on a daily average. In the report, she stated that the Sutherland Talla Hospitality proposal was estimated to generate 946 average daily trips. She stated, however, that staff incorrectly deducted the 300 trips for the mobile home park twice, meaning that the net new trips for the Sutherland Talla Hospitality proposal should have been 652, not the 358 listed in the report. Per Council Member Adams' request, Assistant City Manager Wood stated that the peak hour trips were minimal for all of the proposals. She stated that the Sutherland Talla Hospitality proposal was estimated to produce 40 additional trips in each the morning and the evening peak hours. Bob Schoonmaker, 19 Canyon Island Drive, stated that he is a City Council candidate for District 5. He stated that he noticed in the Sutherland Talla Hospitality letter of intent that the proposal was to sublease the American Legion facility. Mr. Schoonmaker stated that a lease and a sublease differ in that a sublease is subject to termination. He stated that the land should be leased directly from the City to the American Legion. Additionally, Mr. Schoonmaker stated his support for the Greenlight initiative and his belief that City funds and resources are being wasted on projects that the public doesn't want. He stated that the City Council needs to get the message and should wait on any development until after the election on November 7, 2000. Allan Beek stated that he supports the proposal made by Ficker & Stevens, and agrees that City property should be used to serve City purposes. He stated that the Mayor's earlier comment about.getting the highest use out of the property really means he wants the most lucrative use of the property. Mr. Beek stated that the citizens of Newport Beach are not complaining about taxes, fees or assessments, they're complaining about the traffic and the loss of marine facilities. He stated that the Economic Development Committee and the Conference & Visitors Bureau both seem to only create more traffic. He concluded by stating that Ficker & Stevens has done an excellentjob. George Grupe, P. O. Box 834, stated that he is a member of the American Legion, which has been in Newport Beach for seventy years and was even used by the Nation's first cub scouts. He stated his understanding for the City wanting to construct Bay Avenue, but he stated that the trade for the land with the American Legion should be upheld. He stated that the City Council and staff should have access to, and study the book, entitled Legion Leases 1924 to 1998. He asked why the State Lands Commission is waiting so long to give a reasonable answer to the City's question about the tidelands. He stated that the property was to be held evermore for the American Legion. Mr. Grupe asked if the City Council is planning to move Volume 53 - Page 571 City of Newport Beach City Council Minutes August 22, 2000 INDEX the American Legion and the Girl Scout house. Lastly, Mr. lrupe stated that the City hosted the Congressional Medal of Honor Association in 1987 and it required the cooperation of the City and the American Legion. He stated that he was also a part of the ten-year anniversary of the event and that required the American Legion facility also. Pat Dolan, local resident, stated that he was before the City Council approximately six years prior, as the Commander of the American Legion, to request that the park be renamed to Veterans Memorial Park. He stated that the support was overwhelming and he hoped that the sentiment had not changed. Mr. Dolan stated that the American Legion began in 1923 with 37 members. He stated that the American Legion received a firm commitment from the City that the current site would be their permanent home. He stated that everything on the site was paid for or done by the hands of American Legion members. Mr. Dolan read from Terrance Phillips' August 21, 2000 column in the Daily Pilot. Mr. Dolan stated that the citizens of Newport Beach seem to have some distrust in the direction the leaders are taking the City. He stated that the City has the duty to provide for the access to emergency care by not allowing more traffic. Mr. Dolan stated that college -educated people in the planning process don't learn about pride in a community or the importance of listening to the citizens. Council Member Debay asked what Mr. Dolan thought of the Sutherland Talla Hospitality proposal to move the American Legion to 1811, Street, building a new facility, constructing a new kitchen and providing a park. Mr. Dolan responded by stating that there is a lot of pride in the current facility. Elaine Linhoff, 176o E. Ocean Blvd., stated her agreement with many of the comments made at the current meeting. She pointed out that the City is in the process of initiating changes to the general plan. She stated that the City shouldn't consider developing the Marinpark site until the general plan update is completed. She stated that the Marinapark site is the last of the City -owned sites on the waterfront. Ms. Linhoff also stated that hotels are risky investments. She pointed out that hotels were filing bankruptcy throughout California ten years prior. Madeline Levy, a senior at Corona del Mar High School, stated that Mayor Noyes earlier in the current meeting stated that one of the most prime considerations when looking at the proposals is finding the most profitable one for the City. Mayor Noyes stated that he actually stated that it was the consideration for the highest use of the property or what is best for the community. Ms. Levy stated that she agreed and wanted to point out that there are other types of profit than just the monetary kind. She continued by stating that the City Council and the speakers in the audience should be given their due respect. She stated that those in the audience who wished to be heard should come to the podium and state their opinion rather than commenting from their seats anonymously. Volume 53 - Page 572 City of Newport Beach City Council Minutes August 22, 2000 INDEX John McDaniel stated his agreement with the comments made by Mr. Dolan. He pointed out that the Sutherland Talla Hospitality proposal did not include providing a marina for the American Legion at the new site. He stated that the Newport Beach Post is the only American Legion in the world that provides a yacht club. He stated that it would be devastating to lose their yacht club. He added that the Southern California Yachting Association recognized the American Legion Yacht Club as the best yacht club during five of the previous six years. Mr. McDaniel suggested that the American Legion site be made a memorial to all veterans. Dennis Lahey, 4 Latitude Court, Commander of the American Legion, suggested that if the Marinapark site were left as is, the City could save a lot of money in studies. He thanked Assistant City Manager Wood for her understanding of the communication problem regarding the supplemental proposal and Deputy City Manager Kiff for providing copies of the extended lease. He stated that the situation of possibly moving the American Legion is an emotional issue. He stated that tradition is important and the legionnaires want to stay exactly where they are. Mr. Lahey added that the American Legion feels it has the moral, legal and political right to remain on the current site. He stated that the American Legion was the first community organization and has over 3,000 members, with over 42% of them being Newport Beach residents. He stated that, legally, the trade made in 1938 was permanent and there are many avenues of law that the American Legion can pursue. Additionally, Mr. Lahey stated that, politically, over 90% of the Newport Beach residents polled support leaving the American Legion where it is currently located. He concluded by stating that the American Legion serves the City and it is difficult to be in adversary position, but they will fight if need be. He stated that the American Legion has the support of the community. John Rettberg, 1770 W. Balboa Blvd., representing Terra Vista Management, stated that they worked very hard on their proposal. He stated that the mobile home park lease is not a gift, as mentioned earlier in the current meeting by Mayor Noyes. He stated that the tenants offered to increase the lease to market value three years prior. Mr. Rettberg additionally stated that the Terra Vista Management proposal is not a status quo proposal, but doubles the rents, opens the park to the users of the tennis facilities, provides for better access to the beach and improves parking. He stated that the increase in income is also substantial and is risk free. Mr. Rettberg added that 60% of the people that own a mobile home at Marinapark, live there full-time. He stated that many of the tenants are elderly. He concluded by thanking the City and staff for their cooperation. He stated that Terra Vista Management wants to continue working with the City and requested that the City Council not narrow the selection to only one developer. Tim Bercovitz, 1240 Balboa Blvd., Commodore of the American Legion Yacht Club, stated that the American Legion facility in its present location is possibly one of the City's most community -oriented organizations. He mentioned the Character Boat Parade and how proud the American Legion is of the event. He stated his concern for what would happen to the American Legion if it had to be closed for a year during construction, if it had Volume 53 - Page 573 City of Newport Beach City Council Minutes August 22, 2000 M. to move. He added that they are also very proud of their yacht club. Mr. Bercovitz stated that the American Legion veterans have helped to make the way of life all enjoy possible. Stephen Sutherland, Principal Partner, Sutherland Talla Hospitality, stated that he is a Newport Beach resident. He introduced Bill Weatherby, Executive Vice President of the Sportsclub Company, and Ruth Ormsby, Director of Development for Regent International Hotels, both in attendance at the current meeting. Mr. Sutherland stated that the Sutherland Talla Hospitality proposal is for the development of a Regent Resort on the Marinapark site. He stated that the Regent Resort is designed to be a five- star luxury resort, consisting of 156 guestrooms and suites. He stated that they also plan to acquire and restore two yachts, to serve as floating suites. He stated that the project will be low density and high quality. He stated that the guestroom and lobby structures will total approximately 123,000 square feet, with the coverage for the overall parcel at 23%. Mr. Sutherland stated that the traffic study prepared by City staff shows five additional, daily peak trips over the existing use, although he understands that this figure will be corrected. He stated that there is more to the project than revenue, such as view corridors, extensive landscaping, utilization of the marina and guest docks, a new boardwalk, improved public access to the beach, a sailing and rowing club, a spa and a new park. He stated that the property and its facilities will be open to the public. Mr. Sutherland stated that the initial request for proposals was issued in November of 1999, with supplemental information requested in May of 2000. He stated that if the City Council recognizes that the Sutherland Talla Hospitality proposal was the only one submitted that included all of the required information, he asked that it be advanced to the next level. Mr. Sutherland stated that there is great concern over what will happen to the American Legion under the Sutherland Talla Hospitality proposal. He stated that he began meeting with the American Legion officials over eighteen months ago to let them know what was planned and how it could affect the American Legion. He stated that through the various meetings with the American Legion officials, he has an understanding of where the American Legion stands. Mr. Sutherland added that he issued a binding letter of intent to the American Legion that says if the Regent Resort is built, a new American Legion facility will be built on the waterfront. He stated that Sutherland Talla Hospitality will complete all work for the project, dedicate the facility to the American Legion and sublease that portion of the site. He stated that since the letter was submitted, he's heard that the American Legion may have a problem with a sublease. Mr. Sutherland stated that he would not oppose a direct lease with the City, but that the proposal is for a $1 per year sublease. Mr. Sutherland added that the Sutherland Talla Hospitality proposal has also included the Girl Scout house. He stated that the plan is to leave the existing facility as is, but he'd be happy to talk about additional improvements with the Girl Scouts. Lastly, Mr. Sutherland pointed out that Regent International Hotels is a world class hotel operator. He stated that they continue to have an interest in being involved with the project and the development process. They have stated that they will work to ensure that the Regent Resort meets the five- Volume 53 - Page 574 City of Newport Beach City Council Minutes August 22, 2000 star luxury standards. Mr. Sutherland concluded by stating that the proposal submitted by Sutherland Talla Hospitality was the only complete proposal received by the City, and included a marketing analysis by PKF Consulting. Mayor Noyes stated that a major key to the project is to make sure that the American Legion is happy. He knows that they don't want change, but he also acknowledged the significant reduction in rent that Sutherland Talla Hospitality is proposing. He noted that the American Legion currently pays $100,000 per year and Sutherland Talla Hospitality is proposing a $1 per year sublease. -Mayor Noyes also noted that the City Council has been elected to be fair and honest to all citizens, and to manage City property in an appropriate way. He asked Mr. Sutherland to express his viewpoints on the matter. Mr. Sutherland stated that the three commanders he has met with have been open in discussing the project, although they have expressed their concerns about moving. He added that only a few of the American Legion officials have discussed the project. Mr. Sutherland stated that it is important to inform the other members of the plan and to show what the benefits to the American Legion and the community might be. He stated that it would also be important to meet with the various residential groups in the area. Mr. Sutherland stated his belief that once people see how the project is laid out, there will be less opposition to it. He stated that the project is a tremendous revenue source to the City, but is also a small hotel without a tremendous influence on traffic. He stated that he believes the project can receive support. Council Member Debay confirmed with Mr. Sutherland that the reason the American Legion would need to be moved is so that 15th Street, because of its width, could be used for the entrance to the resort. She requested that Mr. Sutherland include discussions about the importance of the yacht club and the sharing of the marina in his negotiations with the American Legion. Mr. Sutherland stated that the letter of intent does not propose a marina at the site, but he stated that it could be included in the discussions. Mayor Pro Tem Adams suggested that some type of incorporation of dock facilities should be a part of the plan. He stated that it would be up to Mr. Sutherland to figure out how they would be built. Mayor Pro Tem Adams further suggested that since the current American Legion facility has such sentimental value, possibly the existing structure could be moved to the new site. Mr. Sutherland stated that it has been discussed and is a possibility. Mayor Noyes asked for a definition of peak hour traffic. Mayor Pro Tem Adams stated that the numbers that were quoted earlier were for weekday peak hour periods. Mr. Sutherland noted that the check - in and check-out times for a hotel are not during the peak hour periods. Assistant City Manager Wood added that a traffic study has not been performed. Pat Harrison, 2270 Channel Road, stated that she doesn't want to see the American Legion move, but that her main concern is the traffic. She noted Volume 53 - Page 575 L7 E City of Newport Beach City Council Minutes August 22, 2000 INDEX the heavy traffic on the peninsula up to 15th Street and the difficulty for emergency vehicle access. Mayor Noyes stated that he used to live on the peninsula also and understands the unique situation. Rachelle Foster stated that she attended the City Council meeting three years ago when the mobile home park tenants offered to increase the rent they pay. She added that she doesn't understand why another hotel is needed. She stated that she surveyed the hotels on the peninsula at that time and the average occupancy during the winter was 50%. Ms. Foster stated that other matters should be handled by the City Council such as the traffic, the number of people that visit the beach, the bay and ocean water quality, the lack of restrooms on the beach and fire truck access on the peninsula. She stated that the traffic is difficult and the City Council needs to consider this before adding another hotel. Dan Purcell, 3 Canyon Lane, stated that he sees a community outreach problem relative to the City Council. He wondered how people are getting their information and if they're getting enough of it. He stated that in the current situation, he can't understand why some of the American Legion members don't have access to the plans for the proposed project. Mr. Purcell thanked the City staff for their professionalism. Council Member Glover stated that Newport Beach is blessed because of its beaches. She noted that when people are blessed with something nature provides, they have to share it. She stated that the peninsula has a traffic problem and probably always will, but she stated that the people that live down there are probably some of the most blessed people in the world. Mayor Pro Tem Adams stated that the mobile home park has been on the site for 45 years, enjoying the use of public lands for a limited term lease. He stated that the lease was structured with low lease payments over the final years in expectation that the mobile home park would be eliminated when the lease expired. Mayor Pro Tem Adams stated that a determination needs to be made on the best use of the land. He stated that some parameters exist on what can be put on the land, depending upon the upland or tideland designation. He stated that the proposal from Sutherland Talla Hospitality is the best one and provides the best use of the land for the City. He stated that the City does not have a five-star hotel and he compared it to the Ritz Carlton and its staying power. Mayor Pro Tem Adams stated that the proposal is for a small, intimate hotel with low density. He stated that it represents a huge investment in the peninsula. He stated that the traffic generated from the project will be low and it will be a quiet use of the property, as some local residents are requesting. He stated that the facility would also bring in a different type of visitor to the City and those that would be an asset to the community. Mayor Pro Tem Adams stated that the City could be proud of the resort. Mayor Pro Tem Adams stated his understanding for people not wanting change, but he stated that new traditions and landmarks can be created without negatively impacting the quality of life. He stated that he Volume 53 - Page 576 City of Newport Beach City Council Minutes August 22, 2000 INDEX understands the traditions and history of the City and he feels comfortable that the proposed resort can fit in. He stated that the project should only be considered if the American Legion members can be satisfied that it's the right thing for them. He hoped that, during negotiations, the American Legion might see the project as being in the best interest of the City and would possibly offer a compromise. He also commented about the sentimental value of the structure and felt that strong consideration should be given to moving the existing structure, if relocation were determined to be necessary. He added that everything should also be done to preserve the marina component of the American Legion. Mayor Pro Tem Adams agreed with comments made earlier by Council Member Glover and the traffic that has always existed on the peninsula due to beach visitors. He stated that he didn't feel that the environmental analysis would show a significant traffic impact for the proposed project, but if it did, he wouldn't be in support of the project. Mayor Pro Tem Adams stated that the financial benefits are secondary, with land use being the primary concern. He stated his belief that the proposed resort could improve the entire area. He stated that the peninsula has limited revenue and the revenue generated from the development should be reinvested in the peninsula and the surrounding areas. He stated that he could support moving forward with the Sutherland Talla Hospitality proposal, allowing them to negotiate with the American Legion and the Girl Scouts and proceed with environmental documentation. He added that maybe the environmental process will show that the project won't work, but he stated that he believes that once people understand the project, they will appreciate the benefits. Council Member Thomson stated that if the decision were his alone to make, he would vote for leaving the American Legion and the Girl Scout house and adding a view park. He stated, however, that the City Council understands that it needs to optimize the property and select a developer that is the most equipped to complete the process. He stated bis support for letting Sutherland Talla Hospitality proceed, as long as they can make the American Legion and the Girl Scouts happy. Council Member Thomson asked for an explanation from the City Attorney about the obligation of the City if the City Council were to select a developer to proceed with the process. City Attorney Burnham stated that it would depend upon the terms of the agreement, which would come back to the City Council for approval. He stated that the terms and conditions of the agreement would have to be met, and the Planning Commission, City Council and Coastal Commission would also have to review and approve the project. City Attorney Burnham added that the agreement could prohibit the assignment of any interest that the agreement might create. Council Member Thomson stated that he agreed that a small hotel, like the one proposed, would not cause a significant impact on traffic. Motion by Mayor Pro Tem Adams to direct staff to prepare an agreement with Sutherland Talla Hospitality for City Council review and possible approval on September 12, 2000, that would designate Sutherland Talla Hospitality as the sole entity with which the City will participate with Volume 53 - Page 577 City of Newport Beach City Council Minutes August 22, 2000 W1113 respect to any redevelopment of Marinapark provided they fully comply with the terms of the agreement and that all discretionary approvals for redevelopment are granted by all agencies with jurisdiction over the site; that the agreement would also establish the obligations of Sutherland Talla Hospitality with respect to each phase of the planning process including the preparation of all studies, documents, plans and reports necessary to obtain all required permits and approvals for any redevelopment; and that the agreement shall specifically prohibit any assignment of the rights or duties created by the agreement. City Attorney Burnham clarified that the motion does not approve the project or make any land use approvals, but allows the City tb deal exclusively with Sutherland Talla Hospitality subject to their ability to meet and comply with the obligations of the agreement. Mayor Pro Tem Adams also suggested that the agreement include timeframes for when various requirements would need to be met. City Attorney Burnham added that the agreement can be written to protect the American Legion as much as possible, but he pointed out that the City Council does not have the legal authority to delegate to the American Legion, or any other private party, the responsibility of making the land use decisions. He stated that these can only be made by the City Council. Mayor Pro Tem Adams stated that Sutherland Talla Hospitality could be encouraged to work with the American Legion. Mayor Noyes added that if the American Legion won't go along with the proposed project, it won't happen, but that Sutherland Talla Hospitality deserves the opportunity. City Attorney Burnham stated that he will attempt to structure the agreement to acknowledge the political realities involved with the proposal. Council Member O'Neil reminded everyone that what is leading the discussion is the necessity to make a decision on property that is being occupied under short-term extended leases. He stated that the City Council is trying to find the appropriate future use the property, whether it is to extend the current leases or put a different type of use there. He stated that the City Council owes it to the current tenants and the citizens in the community to make a decision, which is why the request for proposals process was begun. Council Member O'Neil stated that Sutherland Talla Hospitality was the most responsive and he felt they should be given the chance to perform. He stated that he is not motivated by economic benefits so much as the potential for the tremendous use of the property and the chance to revitalize the peninsula. Council Member Debay apologized for her comments earlier in the meeting to Mr. Johnston. She explained that she felt he was saying that the City Council held a disregard or lack of concern for the American Legion. She stated that she supports the American Legion, but also feels that the project could help the peninsula a great deal. Volume 53 - Page 578 0 City of Newport Beach City Council Minutes August 22, 2000 Mayor Noyes stated that the City holds the opinion of the American Legion in high regards and thinks they feel the same way about the City. He asked Mr. Sutherland if he fully understood how the City Council felt and if he was still willing to take on the responsibility. Mr. Sutherland stated that he was and feels that the project has a lot of merit for the City and the area. He stated that he has been treated well by the American Legion officials and he intends to continue meeting with them as well as the other members. He stated that he'd like the opportunity to discuss the possibilities of the American Legion and the Regent Resort being neighbors. Mr. Sutherland concluded that the project is worthwhile and worth doing. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: Ridgeway Absent: None Mayor Noyes complimented Ms. Levy for her comments earlier in the meeting and he thanked the audience for their patience and testimony. CURRENT BUSINESS 23. CORONA DEL MAR STREET LIGHT BANNERS Item continued. MOTION FOR RECONSIDERATION— None. ADJOURNMENT — 10:10 p.m The agenda for the Regular Meeting was posted on August 16, 2000, at 4:10 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk UfiUPTN i Corona del Mar Street Light Banners (74) Volume 53 - Page 579 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Marinapark Rents Bayside Lot $ 732 $ 761 $ 792 $ 823 S 856 S 891 $ 926 $ 963 $ 1,002 S 1,020 $ 1,034 $ 1,052 $ 1,072 $ 1,090 $ 1,103 $ 1,129 $ 1,174 S 11221 Interior Bayview Lot' $ 550 $ 572 $ 595 $ 619 $ 643 $ 669 $ 696 $ 724 $ 753 $ 770 $ 780 $ 795 $ 810 $ 823 $ 833 $ 853 S 887 $ 923 Market Rent (average of Lido Peninsula and DeAnza Bayside Village) Bayside Lot $ 721 $ 784 $ 853 $ 927 $ 1,009 $ 1,098 $ 1,195 $ 1,301 $ 1,416 $ 1,541 $ 1,709 $ 1,880 $ 2,068 $ 2,276 $ 2,505 $ 2,700 $ 2,977 $ 3,283 Interior Bayview Lot $ 547 $ 570 $ 594 $ 620 $ 646 $ 675 $ 704 $ 735 $ 768 $ 803 $ 830 $ 882 $ 938 $ 997 $ 1,062 $ 1,135 $ 1,226 $ 1,326 Difference between Market and Marinapark Rent (annualized, in constant dollars) Bayside Lot $ 269 $ 729 $ 1,249 $ 1,834 $ 2,490 $ 3,226 $ 4,050 $ 4,970 $ 6,258 $ 8,105 $ 9,933 $ 11,950 $ 14,227 $ 16,827 $ 18,852 $ 21,630 $ 6,186 • $ 132.785 Interior Bayview Lot' $ (24) $ (8) $ 13 $ 37 $ 66 $ 100 $ 140 $ 185 $ 391 $ 606 $ 1,045 $ 1,532 $ 2,094 $ 2,746 S 3,384 $ 4,063 $ 1,209 $ 17,579 Investment of Difference in Rent (6% interest, compounded annually) Years from 2002 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 ' Bayside Lots $4,560 $11,595 $18,632 $25,267 $31,678 $37,621 $42,930 $47,411 $53,065 $60,141 $63,175 $63.336 $60,324 $53,508 $39,966 $22,928 $6,186 $ 642,223 , Inledor Bayview Lot' -$401 -$120 $186 $509 $840 $1,168 $1,482 $1,769 $3,318 $4,493 $6,649 $8,121 $8,877 $8,732 $7,174 $4,307 $ 1,209 S .68,312 Lido Peninsula Resort Bayside Lot $ 670 $ 737 $ 811 $ 892 $ 981 $ 1,079 $ 1,187 $ 1,306 $ 1,436 $ 1,580 $ 1,800 $ 2,016 $ 2,258 $ 2,529 $ 2,832 S 3,200 $ 3,584 $ 4,014 Interior Lot $ 440 S 462 $ 485 $ 509 $ 535 $ 562 $ 590 $ 619 $ 650 $ 683 S 700 S 763 $ 832 $ 907 $ 988 $ 1,070 $ 1,198 $ 1,342 DeAnza Bayside Village Of Bayside Lot $ 771 $ 830 $ 894 $ 963 $ 1,037 $ 1,117 $ 1,203 $ 1,298 $ 1,396 $ 1,503 S 1,619 $ 1,744 $ 1,878 $ 2,022 $ 2,178 $ 2,200 $ 2,369 $ 2,552 Interior Lot $ 454 $ 478 $ 503 $ 530 $ 558 S 588 $ 619 $ 652 $ 686 $ 723 $ 761 $ 801 $ 844 $ 888 $ 936 $ 1,000 $ 1,053 $ 1,109 NOTE: ' Interior Bayview (arguably not available at LPR or DBV) = Interior lot at LPR/DBV plus $100 per month for bay view `f • • • City of Newport Beach City Council Minutes May 9, 2000 INDEX update based on the feedback. The committee could use the information to refine their recommendation and develop a draft work program for Council to consider and identify necessary resources to accomplish the work. He stated that, if Council then determines to commence with the General Plan update, the committee can form the basis for a steering committee, bring in more stakeholders on an "as needed" basis, and provide guidance to staff and consultants on what areas of the General Plan need to be looked at for changes. Mayor Noyes requested that this item be brought back at the next meeting so that Council can form the General Plan Update Committee and he can appoint members to the committee. 19. ECONOMIC ANALYSIS OF PROPOSALS FOR FUTURE USE/DEVELOPMENT OF MARINAPARIL Assistant City Manager Wood stated that, in addition to the economic analysis, a traffic impact analysis and the types of planning entitlements that would be required for the proposals are included in the staff report. She reported that the maximum average daily tripe that any of the proposals would generate are a little over 7,000 and that there would not be significant traffic impacts since a majority of the trips would not occur during the morning and evening peak hours. With the exception of proposals from the American Legion and the Parke, Beaches and Recreation Commission (PB&R), she reported that the other proposals would require amendments to the General Plan and the Local Coastal Program, as well as a Planned Community Development Plan. Additionally, the projects requiring redevelopment would also require compliance with the Traffic Phasing Ordinance. Ms. Wood stated that, if Council follows the recommendation to narrow the proponent list, staff feels it would be helpful if Council also provide direction relative to the retention of public and quasi -public uses, goals for a public marina, determine the minimum ground lease if one is set, and the entitlement issue with the State Lands Commission. She clarified that the relocation impact report has been started and is expected to be completed by August. Stephen Copenhaver, GRC Associates, Inc., utilized a Power Point presentation throughout his report. He stated that the property is about 8.8 acres and that the request for proposals (RFP) included goals to seek high quality development, a secure revenue stream, development that is sensitive to the adjacent properties and government regulations, a feasible project, and a catalyst for the peninsula. He added that the RFP asked detailed questions relative to experience and financing capabilities, project description, development preforms, schedule, and consultant team; however, he believed that none of the proposals met all the requirements of the RFP. Mr. Copenhaver highlighted the eight proposals as outlined in the staff • report, adding that Ficker and Stevens did not put together a real proposal; RHC Communities did not provide a proforma and an explanation of how the buildings would be funded; PB&R would probably require more than the Volume 63 - Page 355 Marinapark Use and Development (73) s City of Newport Beach City Council Minutes May 9, 2000 INDEX . proposed 2.5 acres; Terra Vista Management suggested that the City would receive five percent of the resale value of any mobile home and they would receive about six to eight percent; the American Legion can afford a much higher lease rate since it has an increasing membership, strong revenue stream, and the marina can create substantial revenue; Ayres Hotel Group values the lots on Balboa Boulevard at a much lower rate than those that have harbor views; Bendetti Company may be trying to do too much on the property and there is a concern about having retail business that is not visible from Balboa Boulevard; and Sutherland Talla Hospitality provided no real market feasibility information in the proposal. He indicated that the proposed revenues range from $1 million to more than $3 million; however, he believed that the City could not make any type of decision based on the information in the RFPs. Mr. Copenhaver reported that residential uses lend the highest land value to the area. The City would receive about $19,500 in land lease proceeds for each residential unit that is constructed on the site and $16,500 for mobile homes. However, a hotel would be the greatest revenue generator for the City because the City nets nine percent from the Transient Occupancy Tax (TOT). Assuming a room rate of $175 a night with 72 percent occupancy, he stated that each hotel room would generate about $4,100 a year in TOT. He added that GRC suggests that not much emphasis be placed on retail uses or office development. • Mr. Copenhaver stated that GRC recommends that the City short list, but not discard proposals that restructure the leases as suggested by the American Legion and Terra Vista Management. However, the City should short list at least to the two developers that are suggesting redevelopment and provide them time to respond with a more detailed proposal. He added that narrowing the list will also give the City better proposals. He reported that many of the proposals did not discuss the topics involved with leasing property. Regarding public uses, he pointed out that many of the proposals assumed that the American Legion had to be included in either the same building or a new building, rent free. Further, the concept of a visitor marina was included in many of the plans since past studies discussed it. He believed that the City should clarify the American Legion issue and whether the City desires a visitor marina. Regarding the tidelands boundary, he reported that the City hired an engineer to study this and emphasized that the boundaries could have an immense impact on the proposals. He strongly suggested getting the results of that effort from the engineer before requesting the proponents to produce more detailed plans. He recommended that the minimum rent be $1.25 million a year, based on the range of land uses, prior studies, and developer concepts. Mayor Pro Tem Adams asked how much flexibility the short listees will have to change their proposals. Mr. Copenhaver believed that the proposals should be substantially in compliance with the original proposal. He indicated that it would be difficult to keep the revenue stream calculation in substantial compliance since real proformas were not included. . Noting that the State and the City have about $20 million worth of property in this site, Council Member Thomson reported that the return is only a Volume 63 - Page 856 • C, City of Newport Beach City Council Minutes May 9, 2000 INDEX • little more than six percent if the minimum rent is $1.26 million a year and asked if this could be increased to ten percent. Mr. Copenhaver pointed out that the amount of developable land is reduced when public uses are included. Council Member Ridgeway stated that he lives a block from Marinapark and that the property is in his district. He indicated that he cannot agree with GRC's recommendations, reporting that the RFP was not responded to well and that he does not want to cut anyone out at this point by short listing. He noted that this will start to become very expensive for the proponents since they need to prepare a specific site plan, detailed proforma of cost and rent, and take the political environment into consideration. He indicated that he met with each of the proponents and believed that a strong direction needs to go back to them. He reported that he believes PB&R will not compete and that the American Legion probably will not compete either. He expressed the opinion that the City should have a long term income stream. Regarding the State Lands Commission, Council Member Ridgeway believed that the tidelands issue will be resolved in hopefully six months and noted that the City Attorney has been given clear direction on clarifying that matter through a court process. He concluded by stating that he believes that any proposal should include open space since many of the amenities are shared with the peninsula and that everyone is on notice that they will have to spend time, money, and effort to bring back a bankable proposal. • Mayor Pro Tom Adams stated that he agreed with short listing after reading the report. However, if a short list does not happen, he expressed concern about the investment that all the proponents would have to make. He indicated that he would not be willing to short list the Bendetti Company since their proposal is too dense for the peninsula. Council Member O'Neil stated that everyone has their opinions about this property and how to use it. He emphasized that the City has to deal with the problem of the two existing uses on the property (American Legion and mobile home park) and noted that the American Legion remained a permitted use on all the proposals but the mobile home park was only included in some of the proposals. He believed that Council does not have a problem with giving the proponents direction on the American Legion, but the mobile home park residents will probably not voluntarily agree to abandon the site. He emphasized that appropriate uses and the tidelandstuplands issue should be resolved prior to requiring any of the proponents to conduct studies and invest the money and effort that is required to zero -in on something that Council can better evaluate. He questioned how they would be able to make a proposal without this information. He indicated that he is not in favor of eliminating anyone because it is still undecided on what can be placed on the site. Council Member O'Neil. pointed out that the report indicated that none of the proposals provided a sufficient level of information to fully evaluate the project. He agreed that Council needs to provide direction and guidance to the proponents, but they are not in a position to do that now because of the • tidelands issue. He reiterated that he favors not short listing the proposals or getting further information while the City is involved in developing a relocation plan in the event the mobile home park is closed and involved in Volume 53 - Page 367 City of Newport Beach City Council Minutes May 9, 2000 • the legal effort to define tidelands and uplands boundaries. He belie it would not be fair or right to eliminate anybody in the interim. Council Member Ridgeway stated that he reminded all the proponents that the area is a residential neighborhood and that the project should be compatible with the neighborhood. He reported that a hotel is compatible, but a highly dense commercial project is not since the peninsula is overzoned for retail, commercial, and office. He believed that Council should look at rezoning other areas in the peninsula for more residential zoning and that a timeframe should be set to get further financial statements and more specificity to the programs so that the proponents can be eliminated as the process moves forward. Council Member Thomson believed that no possible uses should be eliminated since the City may be six months away from receiving a decision from the State Lands Commission and that another developer may come forward. He added that Council should not just narrow the list down to the individuals who responded to the RFP. In response to Council Member Debay's question, Mr. Copenhaver believed that it would be premature to have the proponents bring back a more detailed proposal when the City has not received a decision about the tidelands issue which determines what can be placed on the site. Regarding Council Member Debay's request that a traffic study be included in a future . study, he noted that there are no dimension drawings. She expressed the opinion that the site is underutilized and indicated that the best use for the residential nature and for the benefit of the City would figure into any decision she makes. Motion by Council Member Ridgeway to continue to consider all proposals (no short listing) and request financial statements, a specific proposal plan, and preliminary proformae on revenue to the City. Dr. Patricia Froatholm, 1805 W. Bay Avenue, provided Council with correspondence which indicates that she and her husband stand to be most affected by a change from the quiet residential area to a hotel since they live very near to the site. She reported that they currently suffer from the noise from the Best Western Hotel located at the back of them. She believes that it was a'big mistake for Council to permit Best Western to add two unite since they actually built five unite and only created two parking spaces. She expressed the opinion that the site should be used to build a community center and public park. Noting that most people cannot afford to stay at an expensive hotel, she expressed hope that Council will utilize the site so that everyone can enjoy it and stated that their decision will affect the soul of the community forever. Regarding the American Legion, Dr. Frostholm. stated that the City let them use the land because they were grateful for the sacrifices made by these people in World War II and that the City would be very ignorant and mean to take that away from them. . Val Skoro stated that he agreed with Council Member Debay's statement that the site is a jewel and believed that it should be a benefit to the entire City. He indicated that, as years have passed, views have eroded throughout Volume 63 - Page 858 • City of Newport Beach City Council Minutes May 9, 2000 INDEX the City, but that it would be beautiful if there was still an open window to view the bay and boats while driving down Balboa Boulevard. He added that he understands the need for a revenue stream, but believed that no rational decision can be made until the tidelands issue is resolved. In response to Ms. Wood's question regarding a timeframe, Council Member Ridgeway amended his motion to also direct staff to bring this back at the July 25 Council meeting. In response to Council Member Ridgeway's question, Public Works Director Webb stated that the City does not have boundary surveys but has a GIS system that includes the tract boundaries and shows a fairly good record of the dimensions of the property. City Attorney Burnham added that he does not believe that a tract map has even been filed. In response to concerns relative to the proponents spending additional funds, Council Member Ridgeway indicated that he has been involved in these types of processes and that it would be easy to spend $25,000 even though they are still in a competition. He asked if it would be appropriate to do a boundary survey, but Mr. Webb indicated that it would not do the City any good until the tideland boundaries are determined. Mr. Burnham added that the City has a report which assists them to place a line on the map that is consistent with what is believed to represent the line of mean high tide. Regarding planning purposes, Mr. Webb reiterated that the GIS mapping • system will give the dimensions, plus or minus five to ten feet. Ms. Wood stated that she did not think that Council was requesting dimension drawings at this point, but just requesting financial information. Council Member Ridgeway concurred, but noted that dimension site plans are needed to do an accurate preforms so that all costa can be calculated. The amended motion carried by the following roll call vote: Ayes: Thomson, Glover, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: Adams Abstain: None Absent: None 20. RENEWAL OF McFADDEN PLACE FARMERS MARKET AGREEMENT. Motion by Council Member Ridgeway to approve the First Amendment to the Encroachment Agreement, which allows for annual renewal by the City Manager for up to three one-year terms and to reduce the monthly lease payment to $130 year round. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None . Abstain: None Absent: None Volume 58 - Page $59 C-3098 Farmers Market Agreement (38) r') 11 City of Newport Beach City Council Minutes March 14, 2000 maintenance. However, when asked if the City was doing the right things at BYB, he, Deputy Fire Chief Melum, and Code Enforcement Officer Sinasek came to the consensus that no one is doing the right thing. He emphasized that he was not picking on BellPort and does not see them as violators. The motion carried by the following roll call vote: Ayes: Thomson, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: Glover, Adams Abstain: None Absent: None 28. RESPONSES TO MARINAPARK REQUEST FOR PROPOSALS. Assistant City Manager Wood stated that staff issued a request for proposals (RFP) as directed by Council for future use or redevelopment of the Marinapark site. She reported that the City received proposals from 17 parties and that the staff report includes a brief summary. She pointed out that there is a great variety of proposals in terms of uses and revenue, and noted that this will be a very significant and complex policy decision. She indicated that staff is suggesting a few alternatives for Council consideration on how to review the proposals and move forward with the analysis. She stated that staff believes that an economic analysis needs to be conducted and a relocation impact report needs to be completed if Council wants to make a decision soon. Additionally, a quick look at the requirements for land use entitlement and traffic impacts also needs to be conducted. She stated that all the proposals can be reviewed or Council can narrow the proposals down. She indicated that Council may also choose to delay taking action on the proposals until there is some action that resolves the tidelands boundary issue. Council Member Ridgeway recommended that the City conduct an economic evaluation of all the proposals and conduct a relocation analysis to be brought back to Council with recommendations. He also requested that Council direct the City Attorney's office to file an action for a judicial determination regarding the uplands issue. Me. Wood estimated that the analysis would cost less than $10,000. Council Member Ridgeway hoped that is would cost less than $6,000. INDEX Stewart Berkshire, 1770 West Balboa Boulevard, #7A, President of the Marinapark Association, thanked Council for extending their lease for two years and also thanked Deputy City Manager Mff and Assistant City Attorney Clauson for coming to City Hall on their days off to talk with them about the new lease. He added that they appreciate Council's active support of their case before the State Lands Commission. He indicated that using the judicial arena is not unheard of, noting that this is how the high tide line was determined in 1927 or 1928. Mr. Berkshire reported that they presented their case to the State Lands Commission and the City subsequently voted to join them in urging the Commission to straighten the high tide line across their property the same as it is with the adjacent properties on either aide. He expressed appreciation also for pledging to give consideration to the tenants when evaluating the proposals. He stated that this could get emotional when tenants think they will be moved out of their Volume 63 - Page 254 Marinapark Proposals (78) 0 City of Newport Beach City Council Minutes March 14, 2000 Motion by Council Member Rid¢eway to direct staff to hire a consultant to conduct an economic evaluation of each of the proposals and to conduct a relocation analysis to be brought back to Council at a future meeting; and direct the City Attorney to come back with the pros and cons associated with seeking a judicial determination on the uplands issue. City Manager Bludau believed that the economic evaluation can be conducted in about three weeks, but the relocation analysis would probably take two months to complete. Mayor Noyes recommended receiving the reports in increments. City Attorney Burnham indicated that he will bring a report back relative to a judicial determination at a closed session. Council Member Glover took issue with the consultant cost, believing that the City will not get much for only $1,200 per proposal. Ms. Wood noted that $10,000 was just an estimate based on what other analyses have cost the City. Mr. Bludau indicated that the City will be hiring someone who has previously worked with these types of proposals and is business savvy to raise questions that would help Council in evaluating the proposals further. Mayor Pro Tom Adams pointed out that the major economic benefits have already been outlined in the chart provided in the staff report and assumed that Council is talking about looking at secondary economic benefits, i.e. • sales tax and economic stimulus to the area. Ms. Wood clarified that the City needs someone who does economic analysis of development proposals all the time and has a better understanding of the market. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None MOTION FOR RECONSIDERATION 530. BALBOA BAY CLUB (BBC) LEASE OPTION EXTENSION REQUEST PROPOSED AMENDMENT. Motion by Council Member Thomson to reconsider Item No. S30 so that he could abstain from voting on it. Council Member Glover asked and received clarification from City Clerk Harkless that the agendas are available on the City's website. Council Member Glover indicated that she thought this issue was placed under current business, not the consent calendar. Council Member Thomson asked if there was a policy that prohibits • supplemental items from being placed on the consent calendar. Mayor Noyes indicated that he is not aware of such a policy. City Manager Bludau indicated that the direction from Council is to only place items that are absolutely necessary on a supplemental agenda. Council Member Thomson Volume 63 - Page 255 9 �EwPORr e CITY OF NEWPORT BEACH ^w�'FORN.P Dave Kiff, Deputy City Manager 949/644-3002 949/644-3020 (fax) TO: Linda Brown, Senator Johnson s Office dkiff@city.newport-beach.ca.us FR: Dave Kiff DATE: January 19, 2000 RE: Legislative Counsel Bill Drafting Request -- Marinapark Linda - As you and Senator Johnson•are aware, the City owns a 10-acre parcel off of Balboa Boulevard (between 15th and 18th Streets) that is home to several land uses, including an American Legion hall, a meeting room for local Girl Scout troops, and a 60-space mobile home park called "Marinapark." The State Lands Commission will soon make a determination on the tidelands boundary near Marinapark. At issue is whether the boundary falls beneath all or some of the mobile homes. If the Commission sets the boundary far back into the park, the mobile home uses may not be acceptable tidelands uses under the Beacon Bay bill (which dictates the City's use of State-owned tidelands as being visitor -serving and harbor -related). As we await the Commissions determination, the City must prepare for all options associated with the park's tenants. Each of the 60 or so leases (I'll call them the "1985 Leases") at Marinapark expires on March 15, 2000. Given that we will probably not be able to reach a community -oriented conclusion about Marinapark's continued use before then, the City may extend the leases via a new lease agreement or via month -to -month tenancy. The 1985 Leases are written such that they relieve the City from providing relocation assistance in exchange for the City charging lower -than -market rent. After a cursory and non-lawyerly review of State law, I'm not certain that the 1985 Leases - regardless of how strong the terms are -- will allow us to avoid paying some form of relocation assistance. I would still like the City to get some "credit" - maybe via slightly lower relocation requirements - given that (a) we've charged a lower rent and (b) the tidelands decision - and not a direct City decision - will have forced the relocation in the first place. Thus this request to submit a request to Legislative Counsel that Counsel prepare language within state relocation law (probably Government Code §7260 et seq) that might allow for this type of credit where the two "givens" above exist. Please note that we have not determined whether or not to ask the Senator to carry a bill for us in this regard - assuming you agree to put this to Leg Counsel for us, we will consult with you further as bill introduction deadline approaches. Thanks for your consideration of this request -- please direct any questions to me (949/644-3002) or Ken Emanuels (916/444-6789). cc: Homer Bludau, City Manager Ken Emanuels, Legislative Advocate Robin Clauson, Assistant City Attorney ',.P CITY OF NEWPORT BEACH =' OFFICE OF THE CITY ATTORNEY December 8, 1999 TO: File FROM: Robin L. Clauson, Assistant City Attorney RE: MARINAPARK —CLOSURE PROCEDURES This memo will outline thi another use, the City's relocation legal/successful conversion. 1. NOTICE notice requirements requirements to convert a mobilehome park to responsibilities and issues that must be addressed for a Civil Code Section 798.56 of the Mobilehome Residency Law contains the bulk of the notice requirements to convert a mobilehome park to another l,Jhax'F "`�i0 use. It provides that to terminate a tenancy due to a conversion of the park, the "management' must follow notice procedures in subdivision (g) which areas follows: A. Fifteen (16) days notice to the homeowners that... "the management will be appearing before a local governmental board, to request permits for a change of use of the mobilehome park; B. Six (6) months notice after all required permits to change the use have been approved; or, if no permits are required, twelve (12) months notice prior to determination that the change in use of the park will occur; C. Notice to all proposed new homeowners prior to a new tenancy that a change in use has been requested and/or granted; D. If a change in use actually occurs, sixty (60) days notice of termination. Therefore a sample timeline would be: E. Notice to each homeowner in the park fifteen (15) days before a hearing by the City Council on the responses to the RFP� If the Council chooses to change the use of the property and processes permits for a the chosen use, another six (6) months notice follows after all the permits have been issued and then a sixty (60) day notice to terminate tenancy at the end of the six (6)'month: The only change in this timeline would be if no permits were necessary then a twelve (12) month notice would be required after the City's decision to change the use of the property to a chosen use. 2. RELOCATION OBLIGATIONS File December 8, 1999 Prior to conversion of a mobilehome park to another use, Government Code Section 65863.7 requires a report, "on the impact of the conversion, closure or cessation of use upon the displaced residents of the mobilehome park to be converted or closed ...the report shall address the availability of adequate replacement housing in mobilehome parks and relocation costs." This requirement is applicable to the City under subsection (1) which reads as follows: "This section is applicable when the closure, cessation, or change of use is the result of a decision by a local governmental entity or planning agency not to renew a conditional use permit or a zoning variance under which the mobilehome park has operated, or as a result of any other zoning or planning decision, action, or inaction. In this case, the local governmental agency is the person proposing the change in use for the purposes of preparing the impact report required by this section and is required to take steps to mitigate the adverse impact of the change as may be required in subdivision (e)." There are two (2) significant issues with regards to this section. The first is that section 798.56(h) requires that this report be provided to the mobilehome residents at the "same time notice is required [under 798.56(g)]." Conservatively, I believe this applies to notice as early as the first fifteen (15) day notice requirement. Therefore, we should have a relocation impact report prepared and provided to each resident fifteen (15) days prior to, when the City Council has a hearing on the responses to the RFP or a hearing on a decision to convert the use of the park. There is an alternative interpretation that would indicate the report should be provided at the six (6) month or twelve (12) month notice but it involves reading section 65863.7(c) as a typo. "When the impact report is filed .... the ...entity proposing the change shall provide a copy of the report ... at the same time the notice is provided pursuant to paragraph [798.56 (f)(2))." Section 798.56(f)(2) does not exist. But (g)(2) exists and provides for the 6 or 12 month notice. However, In my opinion this interpretation does not fulfill what I believe the report was intended for: a disclosure document to the legislative body so that they know the impact of closure before they make a decision to close. The second issue is that the City is probably required to take steps identified in the report to mitigate the Jrnpact on the change in use or the ability of the residents to find adequate replacement housing in a mobilehome park. '\3. LEGAL ISSUES X Does Government Code Section 7260 apply? Government Code Section 7260 et. seq. requires a public agency to pay relocation costs to "displaced persons." I have not seen this issue addressed in any of Brent Swanson's \' legal memorandums to us, so I do not know whether it was considered. In File December 8, 1999 my opinion Government Code Section 7260 may not apply because the definition of displaced person in 7260(c)(1) specifically excepts, in subsection (2)(b), "Any person whose right of possession at the time of moving arose after the date of the public entitys acquisition of the real property." Since the City has always owned the real property and is the lessor of the real property, all the tenants right of possession arose after the acquisition. Because the definition of "displaced person" is so broad, that without this subsection (2)(b) and my interpretation of it, 7260 would apply. Therefore, I would like to get a confirming opinion from an experienced redevelopment attorney or from another equally experienced attorney. B. The next series of issues are related to the relocation benefits the mobilehome residents may be entitled to and what should be studied as part of the report" (i) . What are the required relocation benefits? Is the rent reduction in the Lease sufficient? If not is it applicable? What are "reasonable costs of relocation?" What steps can mitigate adverse impact on ability to find adequate housing in a mobilehome park? (ii) Who is entitled to them? Section 65863.7 states that the report must be on the impact of the conversion upon the "displaced residents" of the mobilehome park. The term displaced residents is not defined in this section. The Mobilehome Residency Law defines the term "resident" in section 798.11 as a homeowner or other person who lawfully occupies a mobilehome. A "homeowner" is defined as a person who has a tenancy in a mobilehome park under a rental agreement. Under the Mobilehome Residency Law, the notice is required to be given to homeowners. As indicated above, homeowner is a more restrictive definition and includes only those persons that have the tenancy under a rental agreement. Therefore, a possible interpretation of these sections is that while the notice provisions of 798.56(g) only require notice to be given to homeowners, the impact report must cover and be given to residents, therefore, the report must study the impacts on the more inclusive residents which arguably includes subtenants. iii. How the impact report should handle homeowners versus other persons who lawfully occupy a mobilehome. Since subtenants are prohibited by the lease are they lawfully occupying the mobilehome? What effect if the City has not enforced Lease provision? �j iv. How the impact report should handle the provisions of the Lease that give reduced rents as consideration for waiver of all right to receive relocation benefits or any other form or relocation assistance. File December 8, 1999 C. We will need to discuss with the Marinapark management how they have been handling notice to new mobilehome owners over the years with regards to the Lease and the content of the Lease. D. Do we need to look at the impact of the change of the mobilehome park on the low and moderate income requirements of the City's land use element? Does Government Code 65990 and our Coastal Residential Development Permit apply? E. How to handle the extension of the Lease which is to expire in March of 2000. What is the manner that the Lease should be extended, whether by written amendment, or consideration of a month -to -month holdover provisions in State law. The Lease itself does not provide holdover provision and I need to look into how the Mobilehome Residency Law handles it. ii. Also, can we, and if we can, how should we restrict the ability of tenants to place a manufactured home on the property. F. Other issues that will come up. RECOMMENDATIONS Due to lack of experience with closures, I recommend we hire outside counsel to assist with these and other issues that the park residents will raise. I have only identified two local attorneys with park closure experience. Rochelle Browne of Richards, Watson & Gershon and Phil Kohn of Rutan, & Tucker. While mostly related to rent control — Rochelle Brown probably has more experience than Phil. Also we will need to hire a consultant to prepare the relocation report. Steve Oliver of Pacific Relocation Consultants has helped us before and I recommend using them. An alternative firm is PRS Group that did the report on Treasure Island, and were selected by Laguna over Pacific R tion CLAUSON s tv.. lar�isl�- RC:da F:\cat\shared\projects\IMadnaPark\Memo\FileClosure. doe f� City of Newport Beach City Council Minutes November 8,1999 discussion of Item No. 4 to take place during the Public Hearing section. The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None ITEMS REMOVED FROM THE CONSENT CALENDAR 3. CORPORATE PLAZA — A REQUEST FOR PC TEXT AMENDMENTS TO INCREASE THE PERMITTED SQUARE FOOTAGE ENTITLEMENT IN THE CORPORATE PLAZA PLANNED COMMUNITY 'BY TRANSFERRING APPROXIMATELY 45,000 SQUARE FEET OF EXISTING ENTITLEMENT FROM FASHION ISLAND AND BLOCK 600 OF NEWPORT CENTER IN CONJUNCTION WITH THE CONSTRUCTION OF A NEW OFFICE BUILDING. Council Member Glover stated that she had received some phone calls about the parking at 22 Corporate Plaza and that the real estate agent said he had spoken to Associate Planner Myers about the issue. She asked who determines the parking ratios and Planning Director Temple responded that they are governed by the planned community text. She added that the common area parking lot is looked at since very few of the buildings have their own on -site parking. When asked how the parking ratio at 22 Corporate Plaza compares to those on Mariners Mile, Planning Director Temple stated that the parking at the Corporate Plaza site is established on a pool formula with the ratios being reduced as the planned community gets larger. She added that this is common in the airport area and Newport Center. In response to Council Member Glover's question about ratio comparisons, Planning Director Temple stated that it depends upon the size of the development but that additional parking is required with new development. Council Member Glover stated that she thought the parking ratios were common throughout the City. Motion by Council Member Noyes to adopt Ordinance No. 99-27. The motion carried by the following roll call vote: Ayes: Adams, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: Glover Abstain: None Absent: None 16. MARINAPARK REQUEST FOR PROPOSALS (RFP). Council Member Ridgeway stated that he understands that the City • Manager is looking for the Council's direction on the City Project Goals, as listed in the staff report. He also suggested that Council Policy F-7, Income Property, be included as an attachment to the Request for Proposals (RFP). Volume 53 -Page 70 Ord 99-27 22 Corporate Plaza/ Amendment 889 (94) Marinapark (73) y • • City of Newport Beach City Council Minutes November 8, 1999 • Motion by Council Member Ridgeway to approve the RFP for distribution incorporating Council Policy F-7, Income Property, as an attachment. Referring to the Form of Disposition in the staff report that states that the City would accept separate proposals for portions of the property, Council Member Glover stated that she would prefer a management team approach to the entire property. Council Member Ridgeway stated that there are fifty-eight separate leases in the mobile home park. Council Member Glover stated that the management team that runs the mobile home park, however, could manage the entire property. Paul Curtis, 215 E. 1501 Street, Commander American Legion Post 291, began by thanking the City Council for extending the lease of the American Legion for one year, at its previous meeting. He stated that Post 291 was recently honored as the Yacht Club of the Year. Mr. Curtis stated his support for Council Member Ridgeway's motion, and he said that there is historical value to the American Legion property. He said 794 members live in the City of Newport Beach and that the American Legion is an asset to the community. Mr. Curtis understands the City's need to generate revenue from the property, and he requested that Council Policy F-7 be attached to . the RFP. He said the American Legion continues the desire to work with the City in creating a more desirable community. For Council Member Glover, City Attorney Burnham defined income property as property that the City owns or controls, which generates revenue to the City. He said this would include the tideland properties. Council Member Adams confirmed with Council Member Ridgeway that Council Policy F-7 would be attached as an information item only, and would not be an actual part of the RFP. The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 17. REQUEST FOR PROPOSALS — VISITOR INFORMATION KIOSKS. Council Member Glover asked if the location of the kiosk had been determined. Deputy City Manager Kiff stated that the location mentioned in the staff report, at McFadden Square, is only a suggestion. He added that the location can be determined when the item returns to the City Council for . final selection from the proposala submitted. Motion by Council Member Glover to authorize staff to issue a Request Volume 53 - Page 71 Visitor Information Moak System RFP (52) City of Newport Beach Study Session Minutes October 25, 1999 2. MARINAPARK HOTEL PROPOSAL. City Manager Bludau stated that the item is before the City Council because the City received a development proposal from Sutherland Talla Hospitality, and he felt that a Study Session would be the appropriate way to introduce it. City Manager Bludau stated that his intent is for the City Council to focus on the policy issues and the process for looking at the proposal, rather than the details of the proposal itself. He stated that, for this reason, the staff report includes information on the background and use of the property, as well as the status of the current leases. City Manager Bludau referred to the information in the staff report about the mobile home park, the American Legion, City Council Policy F-7 (Income Property), the Marinapark Revenue Study, and the history of the prior Council authorizations and action by the City regarding the property site. He also noted the six possible alternatives listed in the staff report that the Council might want to consider. Stephen Sutherland, Principal Partner, Sutherland Tells Hospitality, stated that he has spent ten months looking at options for resort development on the Marinapark site. He stated that the proposal submitted to the City describes a redevelopment of the property into a 166-room five star resort to be operated by Regent International Hotels. Mr. Sutherland stated that he was available to answer any questions. Tom Hyans, Central Newport Beach Community Association (CNBCA), stated that he spoke with W. Sutherland regarding the proposal in July. He stated that the CNBCA has, for years, supported the long-term renewal of the American Legion and mobile home park leases. He stated that the CNBCA has reviewed and discussed the conversion of the property to public use for recreation, such as described in the Marinapark Planning Study dated June 20, 1972, but has never adopted a policy to support the conversion of the property to full recreational use. The CNBCA also opposes the increase of hotel capacities and new hotel construction within its boundaries or near the beach or other recreational areas of the Peninsula. W. Hyans added that the CNBCA also opposes any change in use in the City -owned area between 16W and 19tb Streets, on the bayside of Balboa Boulevard. He stated that he personally remembers that Sections D and E in the mobile home park leases, as mentioned in the staff report, were included only to circumvent liability for compensation to the lessees. He concluded by stating that he feels that the proposed project location would upset the fragile balance of the residential and public neighborhoods in a negative way. Paul Curtis, Commander, American Legion Newport Harbor Post 291, stated that many years ago, the American Legion traded a piece of property with the City for the lease they currently have. He stated that, although he recognizes that the current City Council may not be legally bound by the terms and conditions of the original transaction, he wanted to present the American Legion's position. Mr. Curtis stated that Post 291 has 2,000 Volume 53 - Page 34 INDEX Marinapark Hotel Proposal (73) City of Newport Beach Study Session Minutes October 25,1999 • members, a ladies auxiliary with 503 members, the Sone of the American Legion with 350 members, and the American Legion Yacht Club with 766 members. He stated that the Post attracts quality members and is the second largest post in the State of California. He stated that the Post was recently honored as being the most generous Post in giving to the needs of disabled veterans, and that they strive to be a good neighbor in a number of ways. Mr. Curtis mentioned the fundraisers held at the facility, the sharing of the use of the facility, the hosting of disabled veterans who are otherwise bedridden, the Old Glory Character Boat Parade, the law and order program, and the sailing program for the visually impaired. Mr. Curtis asked that the City Council commence negotiations for the long-term renewal of the American Legion lease at the current location. He concluded by stating that Post 291 is ready to work with the City in creating a more desirable community. Val Skoro, 1601 Bayadere Terrace, Vice Chairman, Parks, Beaches & Recreation Commission (PB&R Commission), stated that in October of 1997, the PB&R Commission voted to recommend to the City Council that the area, including Marinapark but excluding the American Legion, be used for recreational purposes at the expiration of the leases on the site. He said he understands that the City needs to generate revenue, but he wanted to point out that the PB&R Commission has provided its recommendation on the matter. Peter Tarr, P. 0. Box 2231, Newport Beach, stated that the Peninsula and • the West Newport areas are already crowded areas and difficult to access. He stated that the upcoming lease expirations provide the City with the opportunity to provide additional public access to the bay and the recreational facilities. He stated that he believes that the Girl Scout House and the American Legion should be left at the site. He added that he does not feel that a hotel is an appropriate use of the site due to the present traffic situation, and could be placed elsewhere on the Peninsula. Mr. Tarr concluded by stating that eliminating public access to the area would be a poor decision. Cary Lowe, Attorney, Jenkens & Gilchrist, 12100 Wilshire Blvd., representing the Marinapark Homeowners Association, stated that the Association recognizes that the City will consider other uses for the site. He stated, however, that he's surprised with the process that is taking place. Mr. Lowe stated that until there is a resolution of the possible tidelands status, it'a questionable about what uses will be permitted. He said that the policies of the State Lands Commission and the Coastal Commission would disallow an exclusive luxury hotel on the site with beach access limited to guests of the hotel, if any of the site is determined to be tidelands. Mr. Lowe stated that, in the meantime, it does not justify consideration of the current proposal, which is only showing pretty pictures and no backup regarding financial commitment. He added that the City's own policy provides for a competitive open bid process when looking at a proposal for leasing City property. He stated that he also foresees strong environmental opposition to . the hotel proposal. He said that it is critical to decide what to do with the current tenants, regardless of what use of the site is decided upon. He Volume 53 - Page 35 City of Newport Beach Study Session Minutes October 26,1999 . suggested extending the leases for the current users of the property. Mr. Lowe concluded by stating that the City can certainly continue looking at alternatives for the site, but it should table any particular focus on the hotel proposal. Council Member Ridgeway confirmed that the City cannot take any definite action for the site until the determination is made by the State Lands Commission, but he asked Mr. Lowe why the City wouldn't want to request proposals from all of the current lessees. Mr. Lowe responded that a broader evaluation of future uses for the site is not a waste of time, but it must be recognized that it all depends upon what the State Lands Commission decides. He additionally disagreed with the staff report's reference to residential use not being allowed at the site if it is determined to be tidelands, and said there are other locations in the state that have mobile home parks on similar trust properties. He said the issue is how the public access is maximized on these lease trust lands. Council Member Ridgeway stated that he had hoped the current meeting would only consist of a presentation on the historical and current status of the property. He confirmed with Mr. Lowe that he feels the City should look at proposals from the current lessees. Council Member Ridgeway said that considering proposals while the State Lands Commission is making its determination helps to reduce the uncertainty of what will happen to the property in the future. Mr. Lowe agreed and suggested that the current leases be extended for that reason. He said that the Association will want to • participate in the broader look at uses for the site. Joanne Walker, 307 Balboa Island, stated her concern for any project that would bring more people from outside the City onto the Peninsula when it is already so overcrowded. She stated that Newport Beach is a beautiful place and should be more residential -friendly. She said that she would be willing to pay higher taxes to save her privacy and to keep the streets and beaches from being overcrowded. Ms. Walker stated that the current uses at the site should remain and increased revenues should be looked for elsewhere. John McDaniel, 1770 W. Balboa Blvd., stated his opposition to a hotel being built on the American Legion site. He said there is a lot of history at the American Legion and it honors the people who served our country in war. He said the location includes a memorial listing all the members who have been given the Congressional Medal of Honor. He said the site also includes the American Legion Yacht Club, which is the only one in the world and has been recognized by the Southern California Yachting Association as the Yacht Club of the Year, four of the last five years. He said the American Legion has been a good neighbor and prior City Councils have recognized its importance. He said it is unacceptable to move the American Legion from its current site. Martha Durkee, Balboa, stated that if the proposed hotel is constructed, it will be at a cost to the Newport Beach taxpayers and residents. She stated . that the playground, the tennis courts and the bay beach would become unavailable to the public. She said that the mobile home park tenants have Volume 63 -Page 36 � of 0 City of Newport Beach Study Session Minutes October 25,1999 INDEX offered to pay higher rent, while keeping the area clean, welcoming the public's use of the beach, having a low crime rate and adding few car trips to the area's roadways. She said that the American Legion has offered their site for public meetings and has been a good member of the community. Ms. Durkee expressed her frustration with the traffic complaints in the City and the need to welcome the visitor to the City, while forgetting the residents. She concluded by saying that facilities that serve the citizens should be considered as being the beat use of the site. She said that a hotel won't honor our veterans or provide any service to the residents. Stewart Berkshire, 1770 W. Balboa Blvd., stated that he has been involved with the issue since 1992 or 1993, when the renewal of the mobile home park lease was discussed. He said that the lease negotiated in 1985 was at fair market value, with provisions for increases each year in connection with the cost of living. He stated that, two years ago, the residents offered to enter into a new lease with the City. And, the residents, at their own expense, conducted an analysis of rental properties of mobile home parks around the bay and determined fair market value. He said that nothing has been done since, pending the decision of the State Lands Commission. He said that the Keyser Marston study concluded that a hotel would produce the most revenue to the City for the site, per square foot. Mr. Berkshire stated that using square feet is misleading and a statistical lie. He concluded by stating that the income to the City from the mobile home park lease is guaranteed, and not dependent on the economic success of an individual enterprise. • Council Member Noyes asked about the rate increase offered by the mobile home park residents. Mr. Berkshire explained that he personally offered the City $5,000 in August or September of 1997, if the City would start negotiations. He said that the fair market study done by the residents concluded that $5,000 was the additional rent the City would realize per year if the mobile home park rents were brought up to fair market value. He further confirmed that the rent offered by the residents at the time would've brought the City $1 million per year. Mildred Litke, Harbor Island Drive, stated that she sees several problems with a hotel being built at the site. She said that the number one issue is traffic and parking, which would be made worse by a hotel. She said that a hotel is not a viable economic option, and cited the four properties that she'd contacted earlier in the day and their high rate of vacancies, including some which were half empty. She said that the mobile home park revenue is guaranteed. Ms. Litke stated that there is also the philosophical issue in deciding if the City wants to cater to its residents or become a commercial entity. She said that she would like to continue enjoying the bay beach. Mr. Sutherland responded to several of the statements made by the speakers. He stated that he also contacted several hotels in the area, and said that the Four Seasons, with room rates beginning at $390 per night, was i00% occupied for the upcoming weekend. He stated that the Ritz Carlton, which he considers would be the proposed hotel's main competition • and charges $650 per night for a standard room with ocean view, is also 100% occupied for the upcoming weekend. He said that the Hyatt Regency Volume 53 - Page 87 City of Newport Beach Study Session Minutes October 25,1999 • was also nearly full the weekend prior. Mr. Sutherland stated that he has met with representatives of the American Legion and is very understanding of their situation. He has offered to negotiate with them in moving them to a different location, which would provide a structure, either existing or new, of at least the same size as the current structure and would also be located on the waterfront. Mr. Sutherland stated that the mobile home park has only fifteen Newport Beach residents that live there fulltime. He said that the property has the ability to generate at least $2.8 million, annually. He said a hotel could provide funds that could be used to enhance the services offered by the City. Mr. Sutherland also clarified that the proposed project would rebuild the tennis courts, double their number and that they would remain available for free use to all residents of Newport Beach. He said that the existing playground would be moved to a site adjacent to the Girl Scout House, and it also would be improved, enlarged and remain open to the public. He concluded that the proposal does benefit the residents of Newport Beach, it maintains access to the property and provides revenue to the City. He asked that the City Council approve Option #2 in the staff report, analyzing and considering the Sutherland Tells proposal. Virginia Herberts, Balboa Peninsula Point Association, stated that the Association's board supports the continuation of the current leases and uses . of the property. She stated that they are opposed to the use of the property for a hotel. Council Member Ridgeway clarified with City Manager Bludau that the City Council is only being asked to provide direction at the current meeting, and not take formal action. City Manager Bludau stated that the City Council could decide to take more definite action, if it desired. Council Member Ridgeway expressed his concern regarding prior City Council discussions and the decision to not take action at study sessions. Council Member Adams stated that he did not see any problem with the City Council providing staff with guidance, but that he would be concerned with making policy decisions at study sessions. He added that he was uncomfortable considering the current proposal on its own, and that the State Lands Commission ruling needs to comes first. Council Member Adams said that the issue is one of land use, not just of revenue. He stated that he thinks the City should first decide what land use would be appropriate for the site and then solicit proposals for that type of use. He said the process should include the Planning Commission, and hearing its recommendation for the land use, or uses, on the site. Council Member Noyes stated that everything will still be held up until the State Lands Commission makes its ruling. He suggested that maybe the City should focus on receiving that ruling first. • Council Member Ridgeway disagreed with Council Member Adams that the Volume 63 - Page 38 City of Newport Beach Study Session Minutes October 26,1999 . issue is one of land use. He stated that he sees it as a policy decision issue, and disagrees that the Planning Commission should make the land use recommendation. Council Member Ridgeway stated that he has been attempting to clean up the Peninsula while, at the same time, rejuvenating it. He said that he doesn't feel that a hotel in that location would generate the kind of income suggested in the proposal. Council Member Ridgeway thinks that proposals from all lessees should be requested and more than revenue should be considered, although he also understands that the City needs to look at ways to create income. He said the City Council will eventually have to make the tough decision of what to do with the property, and he has had several people ask that the City Council do what's best for the Peninsula. He added that since there is resistance to two-story mobile home parks, the residents of Marinaparkahould make their proposal on the basis of a single story mobile home park. He said that all of the various land use options need to be looked at, and the people who will be affected by the decision need to be considered. He concluded by stating that it is a very complicated issue. Council Member Glover agreed with Council Member Ridgeway's comments about putting the issue into local context and how it affects the residents on the Peninsula. She stated that the Coast Highway/Newport Boulevard intersection is the heaviest traveled intersection in the County and in her district. She stated that for this reason, her interest in the Peninsula and the type of traffic that it attracts has increased. Council Member Glover said that everyone always complains about too much traffic and not enough • parking, but that she won't know what impact a hotel would have until all of the facts are presented. She said that the City Council must consider revenue when making these types of decisions. She suggested that the City Council direct staff to proceed with Options 2, 3, 4 and 6 in the staff report. She said this will give everyone the right to bring forward a proposal, and give the City an opportunity to see what the effects of the various options would be. She said that she's not certain that the decision by the State Lands Commission will greatly affect what is decided for the property and that the Coastal Commission is concerned about public access to the beaches, which a hotel property could provide. Mayor O'Neil stated his support for Options 2, 3, 4 and 6; which would direct staff to analyze and consider the Sutherland Talla proposal, request proposals from other lessees, request proposals from other potential developers, and consider them all together. Mayor O'Neil also agreed that the State Lands Commission issue should possibly be agendized, but pointed out that the City has already gone on record to support the uplands interpretation. He agreed further that residential uses have been allowed on tidelands and could be done. Mayor O'Neil concluded by stating that there is a lot of flexibility in what can be done and the City should look at all the various options, and then make the decision based on what is best for the community and what is best for the City in the future. He said it may be determined that what is currently at the site may remain, but the City won't know if that's the beat choice until all of the possible uses have been looked • at. He said that if the State Lands Commission determines that the site is tidelands, it may end up in court. He said the issue is very confusing and he Volume 53 - Page 39 f City of Newport Beach Study Session Minutes October 25,1999 • is totally open minded about what happens at the site, whether it is public open space or providing more revenue to the City, Mayor O'Neil stated that while the various proposals are being looked at, he feels that the mobile home park lease should be extended for one year as is being proposed for the American Legion at the evening meeting (Item 13). He knows the final decision on the property will be a tough one, as it always is when trying to balance economic interests with quality of life. City Manager Bludau confirmed with Mayor O'Neil that the Sutherland Tells proposal would be analyzed and considered with all of the other proposals, after they come in. He continued by stating that staff will request proposals from other lessees, as well as other potential developers. 3. BALBOA PIER PARKING LOT REDESIGN. Public Works Director Webb introduced Tony Brine, Senior Civil Engineer, to give the presentation on the process that the City has gone through in looking at the Balboa Pier parking lot area. Mr. Brine stated that he would provide a summary of the report that was prepared by Austin -Foust Associates. He stated that the goals of the study were to look at the existing parking lot and determine if a redesign could be done to improve vehicle circulation and pedestrian access. He stated that the goals also included determining if the number of parking spaces could be • increased, if a bus layover area could be provided, and if the landscaping could be improved. Mr. Brine stated that the process incorporated three public workshops to solicit input from residents and business owners in the Balboa area. He stated that seven alternative plans were developed and reviewed, and that he would go through each of the alternatives. Mr. Brine provided an overhead illustration of the existing parking lot plan, and pointed out the inefficient use of space. He then showed Alternative 1, which was recommended as a result of a study done in 1991. He said there is a net gain of 84 parking spaces with Alternative 1. Council Member Glover confirmed with Mr. Brine that one of the goals of the study was to look at potential ways to increase the number of parking spaces in the lot. It was further confirmed that the parking spaces, both inside and outside the lot, would be available to visitors of both the beach and the village area. Council Member Ridgeway stated that he has read the staff report, that the matter has been reviewed by PROP (Ad Hoc Committee to Promote the Revitalization of the Balboa Peninsula) and that he favors looking more closely at Alternatives 1 and 6A. He stated that unless any of the council members disagree, he did not need to hear the history of Alternatives 2, 3, 4 or 5 at the current meeting. • Council Member Noyes agreed and stated that it has been a thorough two- Volume 53 - Page 40 C-3209(A) Balboa Pier Parking Lot Redesign (38) City of Newport Beach City Council Minutes February 22,1999 operate a contract. Council Member Adams suggested adding language to the motion relative to assisting with the Duffield Foundation grant application process.. Council Member Ridgeway agreed to add authorizing the Mayor to draft a letter to facilitate a grant application to the Duffield Foundation as part of the motion. Dianne Pfaff -Martin, 2001 Port Albans Cir., The Community Animal Network of Newport Mesa, stated that she publishes The Community Animal Report and has sent everyone a copy. She discussed her operation and stated that since they have few animals in their shelter, they have expanded to include Costa Mesa. She stated that there is confusion that there is no Newport Beach shelter since it is in Costa Mesa and that The Community Animal Report has been able to give visibility to the Newport Beach shelter to help with adoptions. She agreed that the possibility of a no kill shelter that is funded by a non-profit group should be looked at, however, she believed that the focus should be on increasing adoptions in the current shelter and working on a strong volunteer program that allows people adopting the animals to understand what kind of animal they are actually adopting. Council Member Ridgeway suggested that the group lobby Comcast to have a one night a week, half hour program that shows the adoptable animals in the facility. Christienne Morgan, 216 Via Eboci, thanked Council for their support of TAGS' endeavors as it will make it easier to approach the Duffield Foundation for funds. In response to Council Member Debay's question, Me. Morgan stated that she is not sure how much the Duffield Foundation will grant, but that it has been published throughout the country that they will initially donate a hefty amount and increase it if proven that every adoptable animal can be adopted. Mayor O'Neil clarified that Council cannot commit the City to providing funds, land, a building, and staff without knowing what would be involved; however, the City can submit a letter in support of the grant application. Ms. Morgan asked if staff can help find a location for the shelter in the meantime. Council Member Adams clarified that his vote is that the ultimate net operating cost to the City would be roughly equal to what the City is doing now. Without objection, the motion, as amended, carried by acclamation. 3. MARINAPARR PARCEL - TIDELANDS BOUNDARY. City Attorney Burnham reported that the tidelands boundary for most of the area abutting the lower bay were adjudicated in 12 superior court cases filed Volume 52 -Page 359 INDEX Marinapark Parcel - Tidelands Boundary (40/73) f � � • City of Newport Beach City Council Minutes February 22,1999 • in the late 1920's. However, those cases did not resolve the tidelands boundaries for City -owned parcels; therefore, the Bay Club parcel, the City/County dock parcel, and the Marinapark parcel were not subject to those cases. To date tidelands boundaries that have not been adjudicated are determined by reviewing old surveys. In 1996, the City retained Bud Uzes to conduct a tidelands boundary survey (attached to the staff report) of the Marinapark parcel. Mr. Burnham indicated that Mr. Uzes was not happy with the accuracy of any of the surveys. However, Mr. Uzes believed that the Finley survey was the most representative of the line of mean high tide, known as the U.S. Government Meander Line, and that, to some extent, there is some support for Mr. Uzes' conclusion that the Meander Line represents the best approximation of the mean high tide line. Mr. Burnham stated that the Marinapark lessees conducted their own research, believing that Mr. Uzes' report is not the definitive report and that there is evidence that suggests the park is uplands. He noted that one of their key points is that the boundary on the adjacent parcels was established, noting that the line of mean high tide was determined for the east side of the Marinapark parcel (Orange County Superior Court Case 23679 and 23682) and for the west side (with different cases). Mr. Burnham stated that it is fair to say that there is some evidence that the parcel is uplands and there is some evidence that a majority of the parcel is tidelands. He indicated that it would be in the City's best interest if the • parcel was designated uplands to give Council greater flexibility in protective use of the parcel. Any revenues derived from the parcel would then go into the General Fund. In response to Mayor O'Neil's question, Mr. Burnham stated that he believes that the State Lands Commission has substantially all the information. Mayor O'Neil clarified that Council will not be making a determination tonight on whether the parcel is uplands or tidelands as that is up to the State Lands Commission. He stated that Council can suggest sending a delegation to Sacramento or instruct the City Attorney to write a letter indicating that Council supports the position that the parcel is uplands. Council Member Ridgeway noted that he resides on Parcel 12 (east of the property) but that he does not feel there is a conflict of interest since that parcel was adjudicated in the 1920's. Council Member Noyes stated that he remembered when this issue came up and believed there were at least 3 Council Members that were not comfortable with the recommendation that it was tidelands. He indicated that some type of ordinance was going to be introduced to state it was tidelands and that he and Mayor Pro Tem Thomson supported the parcel being uplands because of the value to the City. Council Member Ridgeway stated that he requested that this be brought up. • He indicated that he supports Council recommending to the State Lands Commission that this parcel be designated as uplands and stated that the land use issue will follow. Volume 52 - Page 360 INDEX City of Newport Beach City Council Minutes February 22,1999 • Council Member Glover stated that it does not concern her whether the money goes into a tidelands fund at all and she would not be looking at this issue just so it goes into the General Fund since both funds are being used positively for the citizens. Mr. Burnham agreed, believing that the tideland expenditures are always for the public good and that the State Lands Commission has acknowledged that the City does an outstanding job administering tidelands. He clarified that his point in the staff report was that placing the funds in the General Fund gives the City more flexibility regarding land use issues and usage of revenue. Mayor O'Neil added that, if the State Lands Commission determines that the parcel is uplands, it would allow residential uses, such as a mobile home park. However, he emphasized that Council will not be taking any action on whether the, City will be extending the lease of the Marinapark residents. A decision first needs to be made in Sacramento but Council seems to want to support a determination that the parcel is uplands. Council Member Glover expressed concern that homes in the Bayside Village will be expanding to second levels and requested that this be addressed. Mr. Burnham stated that, if the property were tidelands, that type of use would not be permitted. If it were uplands, in his opinion, the City could decide how properties can be used. However, he clarified that, if the property is owned by someone else, the City has no regulatory authority over the type of housing. • John Rettberg, 1770 W. Balboa Blvd., Marinapark resident, stated that he supports Council's efforts to show that the area is uplands. He stated that they thought that when the State Lands Commission was approached that, because the land to the east and west were not tidelands, it would be uplands. He noted that the residents over the last year have been gathering information and believes that the research in the staff report will show that Marinapark is not on tidelands. He thanked Council Member Ridgeway for spending time with the residents and for taking action when he saw that the research they pulled together is in the best interest to the City. Cary Lowe, 12100 Wilshire Blvd., Los Angeles, Marinapark Attorney, stated that they put together quite a lot of material that has been submitted to the State Lands Commission staff. After several telephone discussions and one lengthy meeting, they were impressed with what was provided and are waiting for a final letter from him and his clients. He stated that they are holding out sending the letter to see how the discussion today came out, but was hoping to report to them that the City Council is in support of at least pursuing their position. Mr. Lowe stated that they are not advocating this because it is the expedient thing to do but because it seems to also be the right thing to do. He indicated that, legally, there is so much evidence amassed that supports that the site is uplands that it makes sense to ask the State to affirm that position. He pointed out that First American Title Insurance Company already issued a title policy insuring title in the property in the name of the City of Newport Beach without any qualification . for tidelands status. This is a strong indication of the strength of the information compiled. He requested that Council support their request and Mr. Burnham's recommendation. Volume 52 - Page 361 City of Newport Beach City Council Minutes February 22, 1999 • Peter Anderson, 1610 W. Oceanfront, stated that, if the City moves forward and asks the State to make the parcel uplands, the City will be under tremendous pressure to maintain Marinapark. He hoped the entire area will be looked at in another context, believing that the area should be used by the entire City. He expressed the opinion that the community would vote to have the area used for the entire community if the option were brought forward. Mr. Anderson stated that the last lease indicated that the area would specifically be used for a recreational area and that the residents would be expected to leave after the lease expired. He added that there are people in the community who do not believe that this is the beat use for the community. Council Member Noyes noted that the City will not need to come up with options once the lease expires, adding that there is already a lot of pressure to put other uses on that property. Motion by Council Member Ridgeway to authorize the Mayor to send a letter to the State Lands Commission that supports a determination that the entire parcel is uplands. Without objection, the motion carried by acclamation. PUBLIC COMMENTS - None • ADJOURNMENT - 5:47 p.m. The agenda for the Study Session was posted on February 17, 1999, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. P V,kmo RecordingSecretar`y,� �% ,d.-- 0 l2`L2.�Y Mayor Volume 52 -Page 362 0* City of Newport Beach City Council Minutes August 25, 1997 Abstain: None Council Member Noyes explained that he voted not to hire a consultant since he is unclear about the selection process used to select the consultant. Assistant City Manager Wood explained that the consultant team will consist of three members and one of the members, Lee Ann Kirby, volunteered her time and worked with the committee throughout the process, so she is familiar with the issues that need to be addressed and the recommendations that the committee has made. The other two members are design consultants and each one has specific areas of expertise, i.e. landscaping, urban design, and signage. Council Member Glover reported that this has been worked on for about eight years. She explained the process and different groups that have been involved over the years. She said that a sub -group identified areas of expertise that they felt was needed, therefore the team is a collaborative that was put together for that purpose. She said the committee felt there were specific skills needed and part of the process will be for the team to help people when they're renovating their buildings or working on facades, etc. She reiterated that this isn't a large scale project and the plan is to work with the businesses. She said that currently Mariner's Mile brings in just under $1 million annually in revenue to the City. Mr. Murphy explained that there are a variety of ways that the City selects consultants. He said that in most cases it is put out for proposals, but in this particular case, there was someone that had been involved and understood the local situation, therefore staff felt that if persons with the architectural background could be added in order to make a complete team, it would be the most effective way to proceed. If proposals were sought, the City would have to pay for them to get up to speed with the project. He said the key thing that staff was looking for was an architectural perspective. Council Member Thomson explained that he is not against the Mariner's Mile proposal, however he had concerns about the team. He clarified that the person that did the volunteer work did not know ahead of time that she would be awarded a contract. Without objection, the motion carried by acclamation. 11. MARINAPARKREVENUE STUDY. Assistant to the City Manager Ducey explained that tonight the Council is being asked to consider a fiscal analysis on the City -owned property between 15th Street and 19th Street bayward of Balboa Boulevard. Currently on the property is the American Legion Hall from which the City receives $300 per month for the lease on the hall, 40% of the marina gross revenues, 50% of the dry boat storage revenue and 100%n of the parking revenues. The Girl Scout house is currently used for troop meetings, weekend campouts, and volunteer adult meetings. It was built by the Girls Scouts in the 1950's and Volume 51 • Page 393 Marinapark Revenue Study (40) City of Newport Beach City Council Minutes August 25,1997 Othey currently lease it from the City for $1 per year. The City acquired the Marinapark Mobile Home Park in 1919. It began as a campground and was converted to a travel trailer park in 1945 and in 1955 it was converted to the current mobile home park usage. There are 60 coaches in the park, two of which are occupied by managers and assistant managers. All of the leases expire in March 2000. The City's income property policy requires that the City evaluate any income property as to the highest and best use before embarking on any new lease negotiations. Pursuant to that policy the City retained Keyser Marston Associates to perform the study, but before beginning the study it was necessary to do two things. The first thing was to look at the value of the property and have appraisals conducted. To do that it was necessary to look at the highest and best use and what would be allowable on the property, therefore the first study that was completed was a tidelands boundary report. Boundaries Unlimited was retained to review the history of the property and the location of the boundary. They recommended a tidelands boundary that actually bisects the property laterally so about two-thirds of the property is in tidelands and one-third in uplands. The report puts Marinapark and the American Legion in the tidelands area. The State Lands Commission attended the Finance Committee meeting and reviewed tidelands state regulations and law and determined that the American Legion was an allowable use on the tidelands property, but pursuant to current state law, given that tidelands are to be visitor serving, residential use on tidelands, which would include Marinapark, is not an allowable use. Once the Boundaries Unlimited study O and the appraisals were completed, Keyser Marston used that information to do their economic analysis. when this was reviewed by the Finance Committee on August 1, 1997, they approved the staff recommendations to receive and file the report, to begin negotiations with the American Legion to extend their lease, to direct staff to prepare a Request for Proposals (RFP) to actually develop the site, excluding the American Legion portion of the property, and to invite the existing lessees to submit a response to the RFP once it is released. In addition to this motion, the Finance Committee also asked staff to do a number of other things. The first thing was to prepare a legal opinion on relocation benefits for Marinapark. The City Attorney's office has determined that the City would not be obligated to pay relocation expenses to Marinapark if in fact the leases were not renewed. The second thing staff was directed to do was to prepare an ordinance actually establishing the tidelands boundary. Per the City Attorney's office a resolution was prepared since he felt that was the more appropriate vehicle. The committee also directed staff to estimate what necessary capital improvements might be needed from Marinapark if the leases were extended. That analysis has been completed and it is estimated that about $345,000-$350,000 in capital improvements would be necessary. The Finance Committee also requested that Keyser Marston review an economic analysis that was submitted by Marinapark representatives on the Keyser Marston report. Late Friday City staff met with Marinapark representatives who presented an alternate proposal that would permit Marinapark to remain on the property and according to them would net the City between $900,000- $1,000,000 annually. Keyser Marston has reviewed that proposal and will O respond to it orally. Volume 51- Page 394 1] City of Newport Beach City Council Minutes August 25,1997 Cal Hollis, Senior Principal, Keyser Marston Associates, summarized the Marinapark Revenue Study prepared at the request of the City, their review of the information presented by Marinapark to the Finance committee, as well as some additional information that was submitted subsequent to the Finance Committee meeting and a brief review of the conceptual proposal discussed by representatives of Marinapark and City staff on Friday, August 22, 1997. He reiterated that currently there is a mobile home -park with 58 spaces on the property. 58 of the spaces are rented and two spaces are occupied by managers. 17 of those units are occupied year round by tenants and- the others are essentially used as vacation homes. The existing uses on the property are: 70 metered parking spaces, the Girl Scout House, the Balboa Community Center, the Marinapark Mobile Home Park, Las Arenas Park and tennis courts, and the American Legion Hall and marina. He explained the methodology they followed. First, they determined what the market support for various commercial uses for the property might be. They estimated the land value generated by each of those uses and the likely ground rent that would be generated by those uses. In their definition of revenue, they included local taxes that would accrue to the City as a result of particular ground uses, as well as ground rent. They projected what both the revenue and the rent would be over the maximum term of the lease and they discounted those to present value. They then converted those revenue ® amounts to present value and to present value per square foot. The purpose of doing that was to see which use generated the highest revenues on a per square foot basis and to use that information to come up with mixed uses to maximize the value of the property to the City. He explained that it has been determined that two-thirds of the site is in Tidelands (the bayfront two- thirds) and the Balboa frontage third of the site is not part of the Tidelands. The City's Charter reserves the beachfront for public beach use and they presumed there would not be a charter amendment to change that. The Local Coastal Plan (LOP) currently requires recreational and open space and the General Plan is consistent with the LOP. Based upon their review of the real estate markets in the Newport Beach area, they settled on the following as likely uses for the property: a hotel (an 85-room small scale hotel); ownership housing on the Balboa frontage; restaurant uses; convenience retail; and rental housing. They also looked at the existing uses as a benchmark in order to compare the value of the existing uses with the value of the alternative uses. He said they also looked at parking as a use to see if that was an appropriate use. On the square foot value stage, they concluded that the highest combination of local tax revenues and ground rent would be generated by a hotel (about $63.00 sf); ownership housing would be $47.50 sf; restaurants at $45.50 sf; convenience retail at $41.00 sf; and rental housing at $25.00 sf; and existing uses if brought to market would average $24.00 sf. The mobile home park portion generates about $44.00 sf. The overall value is low because there are a number of non -revenue generating uses on the property. Parking generated the lowest value. Using those per square foot values, they developed some different development scenarios for O the site. They identified three scenarios they felt were reasonable. The first scenario is what they called the baseline scenario, which assumes that the current uses and all existing uses stay, with an assumption that the mobile Volume 51 • Page 395 �1 I City of Newport Beach City. Council Minutes August 25, 1997 W home park rents are brought up to market. There would be no change to the lease agreement with the Girl Scouts, no change in the income generated by the community center, park use or parking, and the American Legion lease would remain as is except the slip rents and the dry storage rents would be brought up to market. In summary, everything would be brought to current rates, however the basic lease agreements would remain as is. Scenario A assumes a partial reconstruction wherein the mobile home park is eliminated and all other uses remain. This could be an alternative if the Council determines that the mobile home park usage is inconsistent with Tidelands, however wants to retain the other uses. The mobile home park would be replaced by a restaurant and an 85-room hotel. All the other uses would remain. From a business standpoint the marina and boat storage operation would be transferred from the American Legion to the City, so rather than sharing the revenues the City would be responsible for all the expenses and would be the beneficiary of all of the revenues. This scenario also brings the other rents up to market. Scenario B assumes all existing uses except the American Legion are eliminated, the marina and boat storage are transferred to the City, a hotel and restaurant are placed in the Tidelands area and 30 ownership lots are created along Balboa and they are leased for development. The result of the analysis is that under the baseline if everything were brought up to market and all of the uses were left as they are today, the annual revenue in the first year would be approximately $821,000. They would value that over a 50-year period at $10.3 million. This was determined by increasing the revenue stream by inflation and discounting it back to the current year. Scenario A has a value of about $11.6 million and Scenario B has a value of just under $16 million. Under the baseline scenario, he explained that there is very little tax revenue generated as a result of those uses and it is virtually all ground rent income. Under Scenario A there are tax revenues generated by the hotel and the restaurant (TOT and sales tax). Scenario B has the same kind of taxes generated by the proposed uses. The conclusion is that compared to the baseline, Scenario A generates about $1.3 million in additional value for the term of the lease and Scenario B generates about $5.6 million in additional value. To the extent that the density of uses that have been proposed are reduced, the value is reduced. He said they have assumed that the current height limitation (26 feet - 2 stories) would be maintained. The development on the water side of the property has been limited to enhance the value of the residential lots on the Balboa side of the property. He said they believe there are other combinations than what they have illustrated, however it would warrant a market test. He said they have assumed in their analysis and their projections of revenue for Scenario B that there is a substantial discount to the value of those residential lots as a result of them being available for a O ground lease as opposed to them being sold. They have allowed for a substantial 3090 reduction in the value of the lots because they would be available for long-term ground lease and not a fee simple sale. He stated Volume 51- Page 396 City of Newport Beach City Council Minutes August 25, 1997 Athat this may be an overly conservative assumption. The other assumption that was made that tends to reduce the results of the value for Scenario B is that leases for those residential lots would have very low escalation, significantly less than the CPI. Mr. Hollis reported that a meeting was held on August 20, 1997 with representatives of the mobile home park to review their analyses. The tenant's conclusion that was presented was that the revenue generated by the mobile home use had a value of $23 million as opposed to Keyser Marston's value of approximately $8.2 million. The representatives of the mobile home park concluded that the value of the restaurant and the hotel property and the revenue generated by that property had a value of $2.5 million, and they valued it at $7.5 million. He indicated that there are two reasons for the wide discrepancies. The first of those has to do with the discount rate applied. The discount rates that Keyser Marston used in their analysis were meant to mirror discount rates applied by the real estate market in valuing ground lease income. They discounted the revenues between 9% in the case of the ownership housing to 10.5% in the case of the mobile home park rent, hotel rent and other rent, and 12% for the tax revenue. The tenant's analysis discounts the mobile home park rents at 6% and the hotel and restaurant at 21% and 2417o respectively. He explained that the lower the discount rate, the higher the value, so by discounting rents at 6% you get a substantially higher value than if you discount the e rents at 10.5%. He said that in their opinion the discount rent (651o) applied to the mobile home park in the tenant's analysis is inappropriately low and is, in fact, lower than the rate of return received in a 30-year government bond. He said they believe there are risks associated with ownership of property, risks associated with rent collection, and risks associated with operating expenses, therefore those risks need to be taken into account in the discount rate. He said that they would conclude that the 21% and 24% discount rates applied to the restaurant and hotel rents are not supported by discount rents applied to ground rents in any situations that they are aware of. He said the presumption in all these analyses is that these ground leases are non -subordinated, which means that you are paid before the lender is paid so there is substantial security that you will be paid. The failure to pay would mean that they would lose the leasehold and any improvements on them. The difference in discount rates amounts to two-thirds of the difference in their valuation. The other third of the difference in the valuation relates to the mobile home park. The tenants assumed that the mobile home park rents would be increased on the average 70% when the lease is renewed in the year 2000. He said they believe that would take the rents substantially above market and their analysis assumed an increase to what they believe current market rents would be. He said he believes the representatives of the mobile home park have concentrated their analysis on the 4.27 acres by the mobile home park and Keyser Marston'a analysis is on the entire 8 acres. He said decisions made as to what to do with the 4.27 acres impacts the value of the remaining portions of the property and that impact on the remaining property is not taken into account in the tenant's Oanalysis. He reported that late Friday afternoon they were advised that Volume 51 • Page 397 O City of Newport Beach City Council Minutes August 25,1997 representatives of the mobile home park had met with City staff and presented a conceptual proposal, so they were asked to review that proposal and submit comments (memorandum dated 8/24197). The tenant's proposal essentially would increase the rent the City would receive by the year 2000 equal to a net income of $900,000 per year. It would be increased on a CPI basis and in the event of any transfers of those leases the City would be paid $20,000 (currently the fee is $2,500). He said that their analysis is that the rents proposed would be substantially above market. The non -view lots would increase from $743/mo. to $1189/mo., compared to the Lido lots at $1100. He said that based on the superior view spaces at Lido, they would consider these rents to be above market. Using the numbers utilized in the original report and using these rents, the result is that the new baseline scenario results in a value that is equivalent to Scenario B. He said they are concerned with the analysis being done based upon rents above market and even though the current owners are willing to pay these rents there is no assurance that these rents can be maintained in the future by new owners. He also noted that agreement has not been obtained by all of the tenants to pay these rents and this is a conceptual proposal put forth by representatives of the tenants. He said their primary concern is the ability to sustain market rents that are above market over a long period of time. He said they believe that continued use of Marinapark as a mobile home park will limit options available for the use of the rest of the property. He noted that the analysis makes no opinion as to the permissibility of those uses by the State Lands Commission. In response to questions raised by Council, Mr. Hollis reported that 1004 .occupancy levels were assumed for the tenant's analysis, however voiced concerns with the proposed rental rates that are above market and said he would expect there to be higher vacancies. He said they valued the lots facing Balboa Boulevard under a lease basis at about $7.3 million so if 30% were added you would add about $2-2.5 million to that value. He stated that Keyser Marston used a 12% rate for tax revenues because they are volatile and subject to the economy, a 10.690 rate for the commercial rents, including the mobile home parks, the restaurant and the hotel, and a 9% rate for the ground rent achieved by the residential lots. If the City were to respond to the tenant's proposal, Mr. Hollis explained that the difficulty with this kind of property is the fact that there are 58 individual leases, so each tenant makes a decision each month about paying their rent. He said he doesn't know of a mechanism the City can use to assure receipt of the rent except putting a lien against the mobile home. He said that normally a non - subordinated lease has investment by the tenant in the property, which keeps the tenant motivated to pay the rent. In this case the security the City has is that it is difficult, but not impossible, for the tenant to leave and take his trailer with him. The tenant could be forced to vacate the premises. Stewart Berkshire, 1770 W. Balboa Boulevard, Space 7A, speaking on behalf of the Marinapark residents, explained that discount rates are a function of risk and the higher the risk the higher the discount rate you want to use on e a future stream of income. He said that Keyser Marston used the same discount rate for Marinapark rents as for rents for a hotel and a restaurant. For the ground rent situation alone, he submitted that the rents have been Volume 51- Page 398 O City of Newport Beach -City Council Minutes August 25,1997 paid for 45 years without the City losing a dollar, which is a very low risk use of that property for a ground rent purpose. He said he inquired about what the City receives for normal long-term investments and was advised that it is 6%q therefore he used the 6% as the discount rate for future rents for Marinapark. He said he increased them by 3% per year because there has always been a cost of living escalation clause in the lease. He pointed out that more than half of the income from the hotel use comes from other uses (TOT, sales tax, etc.), and they are subject to the economy. He noted that the City may not get -the income promised if the economy is down. He said that he can get a 12-14910 return from a mutual fund investment and he believes a hotel use is a greater risk, so he increased the discount rate. He said he believes agreement can be made as to what the bottom line is for the City from a risk and a cash flow standpoint. He said that common sense would tell you that there is a greater risk on the revenue stream from a hotel and restaurant since these facilities fail regularly, than from Marinapark. He said it is also obvious that no income will be received from the hotel and restaurant until at least the year 2000 and until someone else takes possession of the property, and even then revenues will start off lower than in the Keyser Marston report. He said that increased income from Marinapark can start before that date. He said they have conducted their own surveys of market rents and after comparing their figures determined that the rents that must be paid to be at market will result in income to the City of a quite substantially larger figure than the Keyser Marston report states. He distributed a handout entitled "Comparative Revenues" and explained that for the hotel the land revenue is $180,000 and the total revenue is $440,000 with the difference being the tax revenue that results from the economy. He noted that the total revenue would be $774,000, however that revenue would not start until at the earliest the year 2002. By comparison, Marinapark revenues today (with no raises) results in a return to the City of $530,000 net, plus the revenue from the alternate uses ($16,002), for a total of $546,002. By accepting Marinapark's offer of "fair market" rents, plus other lease provisions, they anticipate the revenue to the City will be in the range of $900,000 to $1 million, some of which could begin as early as 1998. He said they will need forty-five (45) days to fine tune their offer, to address some of the concerns expressed by staff and to meet with the 58 homeowners to obtain a consensus. He explained that their offer includes a willingness to start paying increased rents as soon as agreement is reached, possibly two years prior to the expiration of their current leases, which is money the City had no expectation of receiving under any of the alternatives talked about. The extra revenue starting in 1998 of approximately $200,000 per year in rent plus the value incentive participation, will be ample to defray the cost of all the infrastructure improvements referenced in the staff report. He said they are prepared to make the City an offer of around $1 million per year and to do it in 45 days, therefore he has a check for $5,000 to back up this statement. He will turn it over to the City and if it is agreed that if they come in with their offer as stated in the 45-day period, the City will return the check and deal in good faith to negotiate a lease on their behalf. The staff could analyze their proposal within thirty days after receipt and it could be back before Council by November of 1997. If it is unsatisfactory, nothing would be lost. He asked the Council to approve items 1 and 2 of the recommendations on the Volume 51- Page 399 City of Newport Beach City Council Minutes August 25,1997 ® agenda, but begged the Council to defer any action concerning Tidelands and the RFP, including items 3, 4 & 5 for 45-60 days. He said he understands there is a move underway to address a letter to the State Lands Commission asking the obvious question about whether that body should approve the extension of their leases. He said the assumption should not be made that they are on Tidelands because they are investigating that matter themselves and they need the time to do so. If it is determined that the park is on Tidelands, they would become illegal responders to the RFP and therefore couldn't bid. He urged the Council to consider the merits of their offer and if it is favorable to the City as they state, then to stand behind the stated duty to obtain the highest and best use of this land and to approach the Lands Commission in the role of an active advocate of their position. He said the City did this for Balboa Bay Club and Beacon Bay, therefore it can be done for them. He said that under their proposal the rent per unit would go up in the order of 50%, which they feel is consistent with what they see at the other mobile home parks. He said they expect to hire an appraiser to look at this and come up with an objective figure about what the fair market rents are. He said that the bylaws of their association give them the right to approve a lease with the City with the approval of two-thirds of the members (39), and they believe they have 39 votes to do this. He explained the transfer fee, which they have termed Value Incentive Participation (VIP), and noted that when they sell their property that a third or less of the amount it is sold for is the value of the coach and the rest is the value of the lease on the ground it sits on. He said that with a new lease the owners O stand to gain, therefore they are proposing that the City participate in this gain. Val Skoro, 1601 Bayadere Terrace, noted that the focus to date seems to be on the dollars. He said that Marinapark is a park, there are four tennis courts on the property and if they are removed that result in a loss of 25% of the courts in the City. He said the area needs some greenery and the bottom line is the quality of life to the City not the dollars that can be derived from this venture. He said the access to the beach is very narrow and whatever is done the public recreation aspects of the area should be retained. He requested that the Parks, Beaches and Recreation Commission be consulted before any final decisions are made so that the recreation aspect and the tennis courts can be retained. Philip Bettencourt, 1824 Baypointe Drive, said that he speaks from experience as the City's former interim City Manager and property manager. He said he was at the podium more than twenty years ago as a City official seeking to reclaim and preserve this vital window to the bay. He said he recommended then, along with the PB&R Commission, that the Marinapark leases not be extended and that this enclave of private and second homes be honorably and fairly removed from the public bay, beaches, and tidelands. He said he is here tonight with the same suggestion and recommendation. He said the issue is the Council's stewardship of the Tidelands trust, the Council's guardianship of Newport Harbor, the compliance with the Coastal O Act, and the vision for the 21st century. He said his vision for this property is white sand, blue water, green grass and small boats. He said the voices that need to be heard are the small boat sailor, the moms at the Tot Lot, the Volume 51- Page 400 City of Newport Beach City Council Minutes August 25, 1997 75 R: users of the tennis courts, and those that walk along the bay beaches. He said he supports the staffs recommendations and believes it is time the City reclaimed the window to the bay. William F undenberg, 808 W. Balboa Boulevard, stated that the proposed resolution proposes a .boundary line which lie contends is the wrong boundary and the mechanism is not the accurate way to arrive at the correct boundary. He said it is the obligation of the State Lands Commission and not really the obligation of the City to pass the resolution. He said the City should be requesting that the proper surveys be taken first in order to arrive at the proper way of determining the mean high water line. The proposed resolution is based on Boundaries Unlimited's study, where the surveyor who wrote the study looked at whatever available materials there were. There were no studies determining the high water mark, so the surveyor arrived at the selection using a 108 year old survey (the 1889 Finley meander line). If the Council were to adopt the resolution with that line, it would result in setting the City boundary of this property about 200-250 feet southward of the adjacent properties towards the east and the west. He said the idea that is in the Boundaries Unlimited study that you must find the ordinary high water mark as it existed prior to the dredge and fill that took place between 1919 and 1920, is not required by the law. He said the land where that ebb and flow has been going on has had the same waterline basically since the dredging was completed in about 1921, which is about 20 O years before the act that created the State Lands Commission and gave them the requirement of resolving this type of boundary line. He said that line has been there for about 70 years. If the resolution is adopted, as well as Scenario B, at least two lots in the area for ownership or rental housing would encroach into the Tidelands area. He said.it would be appropriate to defer passage of this resolution until some further study can be conducted, He said he wants to be convinced that the line is in the proper place and the City is not giving back property that it owns to the State. Bob Wynn, 1617 Port Abbey Place, said that he worked with Mr. Bettencourt during the 1973 renewal of the Marinapark leases. The main thing that the Marinapark representatives would hope the Council would do is take the action on the agenda, but delete any action with respect to determining high tide and permit them 46 days to come in with a more definitive proposal. He compared the situation to the undergrounding of utilities and said something similar may be worked out here to guarantee that Marinapark could remain fully occupied. If the resolution is adopted regarding Tidelands or if a letter is sent to the State Lands Commission without being convinced that the mobile home park may provide the highest and greatest return to the City, their answer will more than likely be "no" than if they knew that this is what the City wanted to do. In 1985 when the lease was renewed with Marinapark, meetings were held with the State Lands Commission and they indicated that the City of Newport Beach was the local governmental entity that should make the decision and were thus required to make certain findings and with those findings they would be satisfied with the report. e Subsequently the State Lands Commission had no adverse comments about the leases. He noted that the line to the west of the mobile home park was fixed and adjudicated by a 1929 court case that made a finding that the Volume 51- Page 401 City of Newport Beach City Council Minutes August 25,1997 ® tidelands line had moved from the old Finley line through natural attrition. The State Lands Commission explained to the Finance Committee that if the tideland line moved through natural attrition then the tideland line moved with that. If it changed because of human fill, then the tidelands line remains where it is. There are a number of properties on tidelands property, the Balboa Bay Club and the Beacon Bay Club. If the marinapark residents cannot satisfy the City's desires within 45 days, the resolution can be adopted at that time and if the City approve their proposal it can be implemented as early as 1998, or two years prior to the expiration of the leases. He stated that in 1985 they did not have to deal with the Coastal Commission. . Mr. Murphy explained that if the City makes any changes to the land use the Local Coastal Plan would need to be amended, which would require going to the Coastal Commission, and if there are any changes to the developments it would require a Coastal Development Permit, which would also go to the Coastal Commission. If the City were to renew the lease, it would not require Coastal Commission action. Based on the length of time it will take to develop the RFP, Mr. Murphy said the 45 days that Marinapark is requesting will not present any problems. Don Donaldson, 1517 W. Balboa Blvd, President of the American Legion, said he concurs with recommendation 2, to authorize the staff to begin O negotiations with the American Legion to renew their lease. Tom Hyans, President of the Central Newport Beach Community Association, reported that he delivered a letter to the City Clerk. He read the letter which states that their members support the long-term continuation of the current uses of the City land at both the Marinapark and the American Legion properties. He said this position is also supported by the residents represented by the Balboa Peninsula Point Association. The letter states that revenue should not be the only issue here and the highest and best use includes public benefit from public recreation, from use by non- profits such as the Girl Scouts, Sea Scouts, Orange Coast College, the American Legion and others. The letter urges that the negotiations with the Marinapark residents and American Legion be continued and that the Council ignore any attempt to fix a mean high tide line. The letter questions who will respond to the RFP on behalf of the residents for the purpose of proposing that the public facilities and access to the City's largest lower bay beach remain as they are. John Rettberg, 1770 W. Balboa Blvd., said that if the residents of Marinapark are right, what is at stake for the City of Newport Beach is somewhere between $2.5-$3 million over the next ten years. He said the cash flows for Scenario A and their proposal would basically be the same for the first ten years. He requested that the Council give them a chance to come forward with a proposal and that no action be taken as far as requesting ,judgements from the state that will jeopardize their ability to submit the Oproposal. Don Hunter, 666 W. 19th Street, Apt. 1102, Costa Mesa, said he has been a Volume 51 • Page 402 City of Newport Beach City Council Minutes August 25, 1997 ® mobile home consumers advocate for about 38 years and has lived in mobile home parks until the last two years and most of that time was in Newport Beach. He said he no longer lives in a mobile home park because he cannot economically afford to. Be reported that four mobile home parks in Newport Beach have closed and other uses have been established on the sites. He said there are only five parks left in Newport Beach. He referenced an article in "The Orange Coast Magazine" about mobile home parks and the fact that more and more of them are closing. He questioned what will happen to the residents that live there and what happened to the ones that used to live there. He pointed out that the homes that are in Marinapark are not mobile homes, but are manufactured housing and they are no longer mobile. He said there isn't any place to move the homes to, it will cost an average of $10,000 to move them and questioned who will pay the cost to relocate them. In reference to Mayor Pro Tem Edwards' question about public recreation uses being included in the RFP, Mr. Murphy indicated that this is something that staff will need to look at. He stated that there are tennis courts at that location, a tot lot in the front portion of the property, and there is certainly an opportunity for all or some of these uses to remain at this particular site. As part of the RFP there is also an opportunity to look at the possible relocation of the tennis courts. He said that Sunset Ridge is one potential future open space site for the west end of the City. He said staff is looking for Council direction as to what to include in the RFP and whether to retain O some or all of the site for the uses addressed by Mr. Bettencourt and others. Motion by Council Member Hedees to: 1) Receive and file the Marinapark Revenue Study and follow-up reports prepared by Keyser Marston. 2) Authorize staff to begin negotiations with the American Legion to renew and extend their lease with the negotiations contemplating bringing the American Legion lease rates up to market rates either with the City or Legion operating the Marina. 8) Authorize staff to prepare a Request for Proposals for the remaining portions of the site; authorized the Finance Committee to review and approve the RFP prior to its distribution by October 27, 1997 and to receive the proposals and make recommendations to the City Council. The RFP to include the two broad outlines contemplated by Keyser Marston and also the inclusion of a public use/access component. The existing lessees to be given the opportunity to respond to the RFP and propose to remain on the site. 4) Direct the Mayor to prepare and forward a request, as well as the Boundaries Unlimited report, to the State Lands Commission asking them to evaluate the report as to its adequacy for determining the tidelands boundary; and asking them to confirm in writing the status of a use such as Marinapark on State Tidelands and whether it is consistent with the City's O 'responsibilities as the trustee. Also to ask advice from. the State Lands Commission on the responsibilities of a trustee of public tidelands and the potential consequences of violation of that public trust. The response from Volume 51- Page 403 City of Newport Beach City Council Minutes August 25, 1997 Othe State Lands Commission to be obtained prior to distribution of the RFP. 5) Defer the action on the proposed resolution until October 27, 1997 or sooner pending a response from the State Lands Commission. Without objection, the motion carried by acclamation. 12. COMMUNICATION FROM LEAGUE OF CALIFORNIA CITIES - LEAGUE ANNUAL CONFERENCE - OCTOBER 12.14, 1997 IN SAN FRANCISCO. Motion by Mayor Pro Tem Edwards to designate Mayor Debay as 'the City's Voting Delegate for the Conference and Council Member Noyes as the Voting Alternate. Without objection, the motion carried by acclamation. 13. RECONSIDERATION OF THE ACTION TAKEN ON JULY 28, 1997 TRANSFERRING $5,950 FROM THE ARTS AND CULTURAL DIVISION BUDGET TO THE LIBRARY DIVISION FOR THE ESTABLISBIVIENT OF ANAMERICAN HISTORY COLLECTION. Community Services Director Moritz reported that the nine members of the O Arts Commission have worked diligently to provide a basis for development of a broader cultural arts program in the City. Their planning has two elements: 1) the development of a Cultural Arts Plan and 2) the establishment of a not -for -profit foundation. The Commission has initiated the establishment of a not -for -profit Newport Arts Foundation. The paperwork to establish the foundation is almost complete and they anticipate that this will provide the vehicle so there can be more funding for cultural arts for projects such as the art in public places and for broader cultural programs in the community. The second element was the Cultural Arts Plan. A contract was awarded to L.A. Consultants to write a cultural arts plan. The initial contract was only for phase one and additional funding is needed for phases two and three, which was what the plan was with the extra $5,950. In developing the staff report, three alternatives have been suggested: 1) to transfer the money back; 2) sustain the original action; or 3) to find new money to fund the cultural arts plan 1br the Arts Commission. In response to Mayor Debay, Ms. Mentz reported that the Library budget contains funds for materials collections, but funds were not placed in the budget particularly for extensive development of an American History collection. She said staff has direction from the Library Board to do as much retrospective collection development as possible. When funds are donated to the Library throughout the year, the donors primarily want the money to go towards book collections. She reported that the library does have an American History collection, albeit it is not designated as a separate collection and identified in one place. There are over 8,000 volumes in the four libraries. OMotion by Council Member O'Neil to approve recommendation #2 to reallocate the amount of $5,950 from the Library Division budget back to the Volume 51- Page 404 League of Calif Cities (61) Budget (40) Date e? (1-7 ('-I�" tR DeP tITY'OF NEWPORT",6EAR Centrall,Waeehouselt4quisffidn Work-,Order,No;. Budget No. 0 kO.q�C) No. c0if 4."i[IMT ligg F L AGA ISO Authorized Signature \I�v t• v J Y V V Jun-86 Jun-87 Jun-88 Jun-89 Jun-90 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Gold, Gorman • $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 $4,746 $5,030 $5,332 $5,652 Jacobs $2,500 $2,675 $2,836 $3,006 $3,186 $3,377 $3,580 $3.795 $4,022 $4,264 $4,519 - $4,791 $5,078 $5,383 Arons $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 $4,746 $5,030 Minky, McDaniel $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 $4,746 Wood $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 Bogin $2,500 $2,600 $2,756 $2,921 $3,097 $3,282 $3,479 $3,688 $3,909 $4,144 $4,393 Elliott, Brownstein $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 Berry $2,500 $2,6501 $2,8091 $2,978 $3,1561 $3,346 $3,546 $3,759 $3,985 Erickson $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $2,500 $2,650 $2,809 $2,978 $3,156 $3,345 Rettberg $2,500 $2,650 $2,809 $2,978 $3,156 Proctor $2,500 $2,625 $2,783 $2,949 $3,126 Dowden $2,500 $2,650 $2,809 $2,978 $2,500 $2,650 $2,809 $2,500 $2,650 $2,500 0411� Jl. T" , 1 0 • MARINA PARK CURRENT RESIDENTS Space Number Resident Date Amount 1-B Minky 4-7-89 $2,500 1-D Arons 11-19-88 $2,500 1-E Dowden 4-14-97 $2,500 2-B Rettberg 5-31-96 $2,500 3-A McDaniel 5-15-89 $2,500 3-E Berry 6-1-92 $2,500 3-B Elliott 5-15-91 $2,500 8-D Wood 9-16-90 $2,500 8-E Gold 6-8-86 $2,500 9-B Proctor 10-18-96 $2,500 10-E Erickson 3-30-93 $2,500 11-B Brownstein 6-4-91 $2,500 11-C Bogin 11-29-90 $2,500 S -` .11 Y- Jacobs 4-10-87 $2,500 h .3-E-� Gorman 7/86 $2,500 ???? 777 MARINA PARK CURRENT RESIDENTS Space Number Resident Date Amount 1-B Minky 4-7-89 $2,500 1-1) Arons 11-19-88 $2,500 1-E Dowden 4-14-97 $2,500 2-B Rettberg 5-31-96 $2,500 3-A McDaniel 5-15-89 $2,500 3-E Berry 6-1-92 $2,500 3-B Elliott 5-15-91 $2,500 8-D Wood 9-16-90 $2,500 8-E Gold 6-8-86 $2,500 9-B Proctor 10-18-96 $2,500 10-E Erickson 3-30-93 $2,500 11-B Brownstein 6-4-91 $2,500 11-C Bogin 11-29-90 $2,500 11-E Jacobs 4-10-87 $2,500 3-E Gorman 7/86 $2,500 ???? MARINAPARK Record of Refund Space # Resident's Names 2000 Credit Due 2000 July 2000 August 2000 September 2000* October 2000 November 2000 December 2001 January 2001 Februaff 2001 March 2001 Aril 2001 May 4-A Gorman 5652.00 1129.42 1129.42 1129.42 1171.20 1092.54 0.00 0.00 0.00 0.00 0.00 0.00 1-8 Minky 4746.00 1129.42 1129.42 1129.42 1171.20 186.54 0.00 0.00 0.00 0.00 0.00 0.00 3-A McDaniel 4746.00 1129.42 1129.42 1129.42 1171.20 186.54 0.00 0.00 0.00 0.00 0.00 0.00 8-B Wood 4477.00 1129.42 1.129.42 1129.42 1088.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Elliott 4224.00 1129.42 1129.42 1129:42 835.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11-B Brownstein 4224.00 1129.42 1129.42 1129.42 835.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2-B Reffberg 3156.00 1129.42 1129.42 897.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9-13 Proctor 3126.00 1129.42 1129.42 867.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1-D jArons 5030.00 852.60 852.60 852.60 884.14 884.14 705.30 0.00 0.00 0.00 0.00 0.00 11-0 Bogin 4393.00 852.60 852.60 852.60 884.14 884.14 66.92 0.00 0.00 0.00 0.00 0.00 8-13 Crawford 4224.00 852.60 852.60 852.60 884.14 782.06 0.00 0.00 0.00 0.00 0.00 0.00 1-E Dowden 2978.00 797.28 797.28 797.28 586.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3-E Berry 3985.00 797.28 797.28 797.28 826.77 766.39 0.00 0.00 0.00 0.00 0.00 0.00 AQ-E Erickson 3759.00 797.28 797.28 797.28 826.77 540.39 0.00 0.00 0.00 0.00 0.00 0.00 E Gold 5652.00 797.28 797.28 797.28 826.77 826.77 826.77 595.85 0.00 0.00 0.00 0.00 5-E Jacobs 5383.00 797.28 797.28 797.28 826.77 826.77 510.85 0.00 0.00 0.00 0.00 0.00 1-A Morhar 5652.00 0.00 0.00 1129.42 1171.20 1171.20 1008.98 0.00 0.00 0.00 0.00 0.00 2-E Kern 5652.00 0.00 0.00 797.28 826.77 826.77 826.77 826.77 826.77 720.87 0.00 0.00 TotalE-4 a 81059.00 15579.56 15579.56 1 17011.74 14817.45 8974.25 3945.50 1422.62 826.77 720.87 0.00 0.00 SPFCIAL NOTE: * DENOTES ANNUAL RENT INCREASE OF 3.7% AS OF OCTOBER 01, 2000 MARINA PARK 0361 I7A'1'li INVOI( Ii No. I CONEY AMOUNT DISCOUNT ND:"1ANTOLINI" 08/10/00 JUL00 PAY TO THE ORDER OF 000361 08/10/00 CITY OF NEWPORT BEACH MARINA PARK 1176 MAIN STREET, SUITE 100 IRVINE, CA 92714 PH. (949) 261-6111 29,127.00 00 29,127.00 =I 29,127.00 BANKOFAMERICA 0361 NEWPORT BEACH, CA 92663 16-66I1220 000361 *TWENTY NINE THQUSAND ONE HUNDRED TWENTY SEVEN DOLLARS AND NO CENTS DATE CHECK AMOUNT 08/10/00 ****29,127.00* CITY OF NEWPORT BEACH AITTR ORIZED SIGNATURE B SECURRY FEATURES INCLUDED. DETAILS ON BACKS „ n'kObO 3'6 hill -I: 12 2.000'66 4-1: 0' 20 2 21110 3 71 LIIF MARINAPARK 1770 W. Balboa Blvd, Newport Beady CA 92663 (949) 723-0206 Ice Albano, Manager TO: Bill Mecham: TOTAL OF RENT CREDITS GIVEN BY CITY FOR MONTH OF JULY / 2000 BASE RENT'S ONLY, GAS WILL CONTINUE TO BE BILLED (4-A) GORMAN $1,129.42 (1-B) MINKY $19129.42 (3 -A) Mc DANIEL $1,129.42 (8-B) WOOD $1.1129.42 (3-B) ELLIOTT $15129.42 (II-B) BROWNSTEIN $1.1129.42 (2-B) RETTBERG $19129.42 (9-13) PROCTOR $19129.42 (1-D.) ARONS $852.60 (II-C) BOGIN $852.60 (8-D) CRAWFORD $852.60 (1-E) DOWDEN $797.28 (3-E) BERRY $797.28 (10-E) ERICKSON $797.28 (8-E) GOLD $797.28 (5-E) JACOBS $797.28 $15,579.56 TOTAL CREDITS Joe @ Marinapark CC: Pacific States Billing Co. 07-11 00 09:09 MRRINRPRRK NORTBERCH T:71w0939 P:01 _k_ 1770 W. Balboa Blvd., Newport Sewb, CA 92"3 (949) 723-0206 Joe Albano, Ma uqp TO: SHERYL STEVENS FOR AUGUST - 2000 BILLING Ili Sheryl: JULY I I, 2000 16 residents that are getting relLnds from the City in the form of rent credit. + One address change CREDITS (SAME AMOUNTS AS LAST MONTH) (8-8)... Gold ........... $797.28 (4-A)... Gorman....... $1,129,42 (5-E)... Jacobs ......... $797.28 (1-D)... Arons........ $852.60 (1-13)... Minky... ... S1,129.42 (3-A),,, Mc Daniel .... $1,129.42 •(8-tl)... Wood .......... S1,129.42 +; (II-C),.Bogin......... .5852.60 • (3-B)... Elliott. . 11,129,42 ' (11-0)„Brown3tein .SIJ29.42 (3-E)... Deny . , . , .... , . .S797.28 (I0-P)..Erickson........ $797.29 (2-B)... Romberg ... S1,129,42 (9-B)... Proctor... , .. S1,129.42 (1-F) ..Dowden........ S797.28 (8-D)... Crawford $852.60 $15,579.56 TOTAL CREDIT AMOUNT ADDRESS CHANGE FOR (I I-C) TO: STONEY E. BOGIN S5S0 OW ENSMOUTH AVE. APT, 3I5 WOODLAND ]ILLS, CA 91367 ffffflffRff RRRt\■R}RftfflftfffftfffifffflfffffR}}fR1ft}tR/RR1Rf Rff\ff\f///e\f/\!/ffffffiRfRftIRtHR MANAGERS MESSAGE 1 WANT TO THANK ALL OF YOU THAT ARE FIXING, PAINTING, LANDSCAPING AND CLEANING UP. YOUR HOMES ARE LOOKING BEAUTIFUL of f fi f itffiff ff utf }\f f uffff ff ff Rfff ff}RYRf Mflf\MfOf /RRef Ut////ff ff MfRffRfRRfRRRR}RtHHt1t\ PLEASE CALL ME IF YOU HAVE ANY QUESTIONS Joe @ the beach t Manager: Joe Albano 7-A BERKSHIRE 7-B WILLIAMS 7-F WHITEHEAD 8-A PEAKE 8-B WOOD 8-C SHAMES 8-D CRAWFORD 8-E GOLD 9-A SEYMOUR 9-B PROCTOR 9-C O'BRYAN 9-D AMTHOR 9-E SPAULDING 10-A WEINFURTNER 10-B RAINBOLT 10-C WESTERGART 10-D NORDQUIST 10-E ERICKSON 11-A BROWNE 11-B BROWNSTEIN 11-C BOGIN 11-D ROSTON 11-E BOYAR 12-A LITKE 12-B HARTUNIAN 12-C HOROWITZ 12 D MUSLIN 12-E KEYES Y]TAI_ 1 1 1 797 1129. 797 797 797 MARINAPARK RENT ROLL 1 1 }7 797 1129 1151 1151 1151 1727. 1151 1616.56 1151.42 2280.84 1727.20 874.60 819.28 1151.42 1151.42 July 2000 1129.42 1151.42 1151.42 1151.42 22.00 874.60 22.00 22.00 1151.42 22.00 874.60 874.60 819.28 1151.42 1151.42 874.60 874.60 22.D0 1151.42 22.00 22.00 874.60. 819.28' 115I A21 1151.42 • E Manager: Joe Albano MARINAPARK RENT ROLL July 2000 SPACE RESIDENT RENT GAS RENT CR. LATE FEE NSF CK BAL FWD TOTAL PAID 1-A MORHAR 1129.42 a.00 1151.42 1111:42 1-B MINKY 1129.42 22.00 1129.42 2280.. .00 1-C ALBERT 852.60 22.00 874.60 874.60 1-D ARONS 852.60 22.00 862.60 1727.20 22.00 1-E DOWDEN 797.28 22.00 979.28 1798.56 22.00 2-A LAWSON 1129.42 22.00 1151.42 1151.421 2-B RETTBERG 1129.42 22.00 1129.42 2280.84 22.00 2-C VACANT 0.00 0.00 0.00 0.00 2-D BLUM 852.60 22.00 874.60 874.60 2-E KERN 797.28 22.00 819.28 819.28 3-A MC DANIEL 1129.42 22.00 1129A2 2280.84 22.00 3-B ELLIOTT 1129.42 22.00 1129.42 2280.84 22.00 3-C HALE 852.60 22.00 874.60 874.60 3-D SWIFT 852.60 22.00 874.60 874:60 3-E BERRY 797.28 22.00 797.28 1616.56 22.OD 4-A GORMAN 1129.42 22.00 1129.42 2280.84 22.00 4-B BRENNER 1129.42 22.00 1151.42 1151.42 4-C NICKELSON 852.60 22.00 874.60 874.60 4-D MELTZNER 852.60 22.00 874.60 874.60 4-E DILLION 797.28 22.00 819.28 819.28 5-A SHONHOLTZ 1129.42 22.00 1151.42 1151.42 5-B WOLMAN 1129.42 22.00 1151.42 1161.42 5-C COWAN 852-80 22.00 874.60 874.60 5-D BERGER 852.60 22.00 874.60 874.60 5-E JACOBS 797.28 22.00 797.28 1616.56 22.OD 6-A GOLDBERG 1129.42 22.00 1151.42 1151.42 6-B BROWN 1129.42 22.00 1151.42 1151.42 6-C CAMPBELL / RYBUS 852.60 22.00 874.60 874.60 6-D FELDMAN 852.60 22.00 874.60 874.60 6-E ESENSTEN 797.28 22.00 819.28 819.28 • 0 1 REGISTRAnONVAUOFROM TYPE LICENSENUMBER fRLR 05/31/2012 TO 05/31/2013 40 1LB9757 VEHICLE IDENTIFICATION NUMBER 6352641 NAYFLL"NE BODY TYPE MODEL MS. DATE FIRSTEOLD CLASS .1 YCMOEd CCH 00/00/1956 AW 1956 PATEIBBUED I I I TYPEVEH. I MP I AX I WG I UNLADENIGICOW TOTALFEESPAID 08/03/2012 42T 5137 3000 'E CITY OF NEWPORT BEACH GO 3300 NEWPORT BLVD sN NEWPORT BEACH CA 92663-3816 T E E R R E D L =YIH. w., R0069c D 0 142072320121152 E R STATE OF CALIFORNIA DEPARTMENT OF MOTOR VEHICLES L04 0 4 8 4 9 VALIDATED REGISTRATION CARD READ REVERSE SIDE• IMPORTANT INSTRUCTIONS as TO REMOVE THE STICKER FROM THE BACKING, BEND STICKER AT SLILAND PEEL SLOWLY. INSTRUCTIONS FOR APPLYING STICKER TO LICENSE PLATE 1, CLEAN SURFACE THOROUGHLY. SCRAPE OFF ACCUMULATED STICKERS (STICKER WILL NOT STICK IF WET OR DIRTY). 2. PUT STICKER ON REAR LICENSE PLATE AS SHOWN BELOW: MOTORCYCLES: Right Half of This Wall —y t• f♦ CAL ALL OTHERS; I lA0000 In Top Right Corner _y t♦CALIFORNIAM EXCEPT: 1 SAM 123 Truck Tractors And Commercial Vehicles With A Declared Gross Vehicle Weight of 10,001 Its. or More —Must Apply Sticker To Front Plate y mrearousoavu RAW A Public Service Agency RENEWAL NOTICE FOR VEHICLE REGISTRATION RENEW VIA RENEWAL via Internet or Telephone (1-800-921-1117) is an option available to you (see insert). INTERNET OR Your Renewal Identification Number Is 381164. TELEPHONE DMV's Internet address is WWW.DMV,CA.GOV Please Note: If the location of your trailer has changed, you must complete the address change box on the lower part of this form and renew your registration BY MAIL. RENEW To register this vehicle, you must mail the bottom portion of this notice with a check or money order In the enclosed envelope to: DMV RENEWAL, Sacramento, CA. Do not forget any certificates or clearance If requested. Make your check or money order payable to DMV BY MAIL and write the license number on the back of the check. FEES AND TAX INFORMATION (May be an Income Us deduction) (Your county or district has requestod those Uee•) Total Due On or Before 05/31/2012 LATE Fnvj�d" pal fOmT7t.;; .1 TOTAL LATE PAYMENT AFTER 05/31/12 THROUGH 06/10/12 $96 RENEWAL/ 11pt,11apF • TOTAL LATE PAYMENT AFTER 06/10/12 THROUGH 06/30/12 $106 PNO :.p4a6t1 TOTAL LATE PAYMENT AFTER 06/30/12 $137 THIS TRAILER MUST BE REGISTERED WHETHER OR NOT IT IS USED, OCCUPIED OR MOVED OVER CALIFORNIA HIGHWAYS. DMV records show that this trailer Is located at: SAME AS MAILING ADDRESS If this trailer is no longer at this location, please complete the box on the return part of this notice. $75 DETACH AND MAIL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ For DMV Use Only 020400 01211109070507 0007500 15220502060000 Change of Address (see back) nnn'n"nlnnn nnnnnnacnn nAn7aaRR Al n111112T CO22812PO2 16475 Poo= FrFor DMV Use Only NEW i, -r- -----_____ _ F ___-- ifl ?,l,(titPSlleN,;ll�ltcl'[ft+aC;nHol_heN',jaddibss,/4ase�,ou"till�kt'e_:E,I, .. r'c4,'•rr =-ar Aif,.E �ICiwNSEiN�, ��I�,tu„uliul•rfx',��a�N�, �r„li 1 LB9757 MAYFL ADDRESS where troller is kept 8352641 CITY STATE ZIP 05/31/2012 $75 u Ildunld111udluullndlduluul611ullud6mllul -- CITY OF NEWPORT BEACH 3300 NEWPORT BLVD NEWPORT BEACH CA 92663-3816 i DMV RENEWAL P.O. BOX 942897 SACRAMENTO CA 94297-0897 'I��lu��ltd�'II�'��I'Il'�11'��Ilu�luq�ll'Il�ll�"�I�tudhl 020400012111090705070007500152205020600000005040100000000062003603698861 s J 2.."a.A Pa'Jil'^'.YWI;OIM4u`OE: A Public Service Agency Mw��M.Pa+�.-tc�lar THIS VALIDATED REGISTRATION CARD OR A FACSIMILE COPY IS TO BE KEPT WITH THE VEHICLE FOR WHICH IT IS ISSUED. THIS REQUIREMENT DOES NOT APPLY WHEN THE VEHICLE IS LEFT UNATTENDED. IT NEED NOT BE DISPLAYED. PRESENT IT TO ANY PEACE OFFICER UPON DEMAND. IF YOU DO NOT RECEIVE A RENEWAL NOTICE, USE THIS FORM TO PAY YOUR RENEWAL FEES OR NOTIFY THE DEPARTMENT OF MOTOR VEHICLES OF THE PLANNED NON -OPERATIONAL STATUS (PNO) OF A STORED VEHICLE. RENEWAL FEES MUST BE PAID ON OR BEFORE THE REGISTRATION EXPIRATION DATE OR PENALTIES WILL BE DUE PURSUANT TO CALIFORNIA VEHICLE CODE SECTIONS 9552 - 9554. NOTE: TRAILER COACHES MUST BE A STATUS OF PLANNED NON AND ARE NOT ELIGIBLE FOR FILING SURFKA EVIDENCE OF LIABILITY INSURAN @ROM YOURS SPURANCE COMPANY MUST BE PROVIDED TO THE DEPARTMENT WITH THE PT �F R f� \T,F,EES. EVIDENCE OF LIABILITY INSURANCE IS NOT REQUIRED WI 3GT rIT ,�R AL OF OFF -HIGHWAY VEHICLES, TRAILERS, VESSELS, OR IF YO ?�� 1. r El r&EHICLE. WHEN WRITING TO DMV, ALWAYS YOE-FULL TT�YM� , PRESENT ADDRESS, AND THE VEHICLE MAKE, LICENSE, AND ID RS. ************** DO NOT DETACH - REGISTERED OWNER INFORMATION ************** C. ^t92:TI4N'JSi F�. Ui•tt A Public Service Agency REGISTRATION CARD VALID MAKE YR MODEL YR 1ST SOLD VLF CLASS MAYFL 1956 1956 AW BODY TYPE MODEL MP MO CCH SY TYPE VEHICLE USE DATE ISSUED CC/ALCO TRAILER 11/01/11 30 REGISTERED OWNER CITY OF NEWPORT BEACH 3300 NEWPORT BLVD NEWPORT BEACH CA 92663 LIENHOLDER FROM: 05/31/2011 TO: 05/31/2012 TYPE VEH TYPE LIC LICENSE NUMBER 42T 40 1LB9757 VEHICLE ID NUMBER 6352641 DT FEE RECVD PIC STICKER ISSUED 10/12/11 9 P1090858 PR EXP DATE: 05/31/2011 AMOUNT PAID $ 131.00 WOUNT REND H00 179 06 0013100 0011 PS H00 110111 40 1LB9757 641 VEHICLE REGISTRATION AND DRIVER LICENSE INFORMATION Immediately notify DMV when you change your address, sell your vehicle, orare involved in an accident causing injury,death, orover $750 in damage. California law requires that evidence of financial responsibility, e.g., liability insurance, be carried in a vehicle at all times and presented to a peace officer upon request or when involved in a motor vehicle accident. Involvement in an uninsured reportable accident will result in the suspension of your driver license. in addition, failure to provide or maintain evidence of financial responsibility will result in the suspension of vehicle registration. To requestforms, make an appointment, orfor information, you maycontact DMV at www.dmv.ca.govorcall 1-800-777.0133. You may also write DMV at: Vehicle Registration P.O. Box 942869, Sacramento, CA 94269.0001 Financial Responsibility (concerning vehicle registration) P.O. Box 825391, Sacramento, CA 94232-5391 DriverLicense P.O. Box 942890, Sacramento, CA 94290-0001 Financial Responsibility (concerning driver license) P.O. Box 942884, Sacramento, CA 94284-0001 NOTE: Vehicle Registration Financial Responsibility Services are not available at DMV field offices. VESSEL INFORMATION Vessel owners are required to notify the Department of Motor Vehicles in person or in writing, at P.O. Box 942869, Sacramento, CA 94269.0001 a. Upon sale of vessel and/or change of address. b. Upon documentation of vessel. c. If the vessel is destroyed, lost or abandoned (in any manner), return this document with the Certificate of Ownership to DMV. In addition, vessel owners should notify a local law enforcement agency upon the theft of a vessel, and must report the recovery of a vessel. - oaao,4m 1.800-777.0133 Did✓95AIREV 9 200,1 VEHICLE REGISTRATION AND DRIVER LICENSE INFORMATION Immediately notify DMV when you change youraddress, sell yourvehicle, orare involved in an accident causing injury, death, or over $750 in damage. California law requires that evidence of financial responsibility, e.g., liability insurance, be carried in a vehicle at all times and presented to a peace officer upon request or when involved in a motor vehicle accident. Involvement in an uninsured reportable accident will result in the suspension of your driver license. In addition, failure to provide or maintain evidence of financial responsibility will result in the suspension of vehicle registration. To request forms, make an appointment, or forinformation, you may contact DMV at wwtv.dmv.ca,govorcall 1-800-777-0133. You may also write DMV at: Vehicle Registration P.O. Box 942869, Sacramento, CA 94269-0001 Financial Responsibility (concerning vehicle registration) P.O. Box 825391, Sacramento, CA 94232-5391 DriverLicense P.O. Box 942890. Sacramento, CA 94290.0001 Financial Responsibility (concerning dnverlicense) P.O. Box 942884, Sacramento, CA 94284-0001 NOTE: Vehicle Registration Financial Responsibility Services are not available at DMV field offices. VESSEL INFORMATION Vessel owners are required to notify the Department of Motor Vehicles in person or in writing, at P.O. Box 942869, Sacramento, CA 94269-0001 a. Upon sale of vessel and/or change of address. b. Upon documentation of vessel. c. If the vessel is destroyed, lost or abandoned (in any manner), return this document with the Certificate of Ownership to DMV. In addition, vessel owners should notify a local law enforcement agency upon the theft of a vessel, and must report the recovery of a vessel. --- 05ar•1777.1 0,1V95A(9U 9-006) NOTICE-OF'DELINf�UE'NT REGISTRATION FINA NOTICE nrteum mn / A Public Service Agency LICENSE NUMBER: 1LB9757 VIN: 6352641 The Department of Motor Vehicles has not received a response to the original notice of delinquent registration. Law enforcement may seize and impound vehicles found on highways,.public lands or.offstreet parking facilities, with expiration dates in excess of six months. ----- To prevent collection action by the,Franchise Tax Board (FTB), you must respond to this notice immediately. FTB may garnish your wages, attach your bank account, attach real property you own,'or seize and sell your real property. If this vehicle has been sold or is currently registered in another state, complete the NOTICE OF RELEASE OF LIABILITY or the OUT -OF STATE VEHICLE REGISTRATION certificate on the reverse side of this notice and mail it using the enclosed envelope. "PLEASE MAKE A COPY OF THIS NOTICE FOR YOUR RECORDS." --------------------------------------------------------------------------------------------- FEES AND PENALTIES ARE DUE AND PAYABLE IN THE AMOUNT SHOWN BELOW. Mail the bottom portion of this notice with a check or money order (DO NOT SEND REGISTRATION CASH) in the enclosed envelope to: DMV, P-.O. BOX 932325, SACRAMENTO CA AND PAYMENT 94232-3250. QUESTIONS? CONTACT YOUR LOCAL DMV OFFICE OR CALL 1-800- INSTRUCTIONS 777-0133. If payment has been submitted within the past 15 days, please disregard this notice. After payment, the registration for this vehicle is valid for one year from the expiration date shown below. (Exception: Off -Highway vehicles are valid for two years from the expiration date.) --------------------------------------------------------------------------------------------- BEFORE YOU RENEW PIC.Sc .sa,d _,�G deacy,. -----------------------------------------------=--------------------------------------------- FEE WEIGHT FEE $ 0 NOTICE DATE 09/28/2011 INFORMATION VEHICLE LICENSE FEE (VLF) 6 LICENSE NUMBER 1LB9757 REGISTRATION FEE 54 REGISTRATION EXPIRATION 05/31/2011 OTHER AGENCY FEES 0* MAKE MAYFL VIN 641 PENALTIES 64 *PARKING BAIL 5 '0 OTHER FEES- 7 *TOLL EVASION FEES S 0 *BAR SMOG FEES $ 0 ISo OR (NEW 1/2000) NE TOTAL FEES DUE S 131 — — — ^ — ISDO7R(NEW1/2000) — — — PAYMENT __ — — — — — — — — — — — — SECTION I� — - — — — — — — CUiORTEARHERE NOTICE DATE: SEPTEMBER 28, 2011 CITY OF NEWPORT BEACH 3300 NEWPORT BLVD NEWPORT BEACH CA 92663 FINAL NOTICE 10615 REGISTRATION EXPIRATION 05/31/2011 LICENSE NUMBER 1LB9757 VIN 6352641 MAKE MAYFL AMOUNT DUE S 131 RETURN TO: DMV PO BOX 932325 SACRAMENTO CA 94232-3250 290400012111090705070013100151105020600000005040100000000064003603698961 Mato, Hortensia From: Mato, Hortensia Sent: Monday, October 10, 2011 2:28 PM To: 'Bill Mecham' Cc: Tseng, Evelyn Subject: Delinquent DMV Notice Attachments: Delinquent DMV Notice 10-10-2011.pdf Importance: High Hello Mr. Mecham, Evelyn asked me to forward the attached Notice of Delinquent Registration sent to the City by the Department of Motor Vehicles. I am sending the notice by email in case you wish to pay the past due registration immediately. The paper copy will follow in the mail. Please call me if you have any questions. Thank you, Hortensia Mato I Revenue Auditor City of Newport Beach I Revenue Department (949) 644-31431(949) 723-3540 fax I hmato(ftewoortbeachca.cov, STATE OF CALIFORNIA - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT REGISTRATION CARD Manufactured Home Decal No: AAR3776 Manufacturer ID/Name SKYLINE Trade Name SKYLINE Model 1 DOM 00/00/1971 DFS 05/01/1971 RY 1971 Exp. Date Jul 31, 2013 Serial Number LabellInsignia Number Weight Length Width SPC SC C Exempt Use Type SCS11954XX 478431 48' 10, ACD 30 SFD ILT SCS11954XXU 478432 48' 10, Issued Total Fees Paid Jul 10, 2012 $65.00 Addressee CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Registered Owner(s) CITY OF NEWPORT BEACH 3300 NEWPORT BL ' NEWPORT BEACH, CA 92663 Situs Address 1770 W BALBOA BLVD 2A NEWPORT BEACH, CA 92663 ATTENTION OWNER: THIS IS THE REGISTRATION CARD FOR THE UNIT DESCRIBED ABOVE. PLEASE KEEP THIS CARD IN A SAFE PLACE WITHIN THE UNIT. INSTRUCTIONS FOR RENEWAL: REGISTRATION FOR THIS UNIT EXPIRES "ON THE -DATE INDICATED ABOVE IN THE BOX LABELED "Exp. Date". THERE ARE SUBSTANTIAL PENALTIES FOR DELINQUENCY. IF YOU DO NOT RECEIVE A RENEWAL NOTICE WITHIN 10 DAYS PRIOR TO THE EXPIRATION DATE, CONTACT H.C.D. FOR RENEWAL INSTRUCTIONS. IMPORTANT THE OWNER INFORMATION SHOWN ABOVE MAY NOT REFLECT ALL LIENS RECORDED WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AGAINST THE DESCRIBED UNIT. THE CURRENT TITLE STATUS OF THE UNIT MAY BE CONFIRMED THROUGH THE DEPARTMENT. DTN: 7296260 R 07102012- 124 MaOML WW- STATE OF CALIFORNIA - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT REGISTRATION CARD Manufactured Home Decal No: AAR3776 Manufacturer ID/Name SKYLINE Trade Name SKYLINE Model DOM 00/00/1971 DFS 05/01/1971 1 RY 1971 Exp. Date Ju131, 2012 Serial Number Labelllnslgnla Number Weight Length Width SPC SCC I Exempt Use I Type SCS11954XX 476431 48' 10, ACD 30 SFD ILT SCS11954XXU 478432 48' 10, , Issued Total Fees Paid Aug 08, 2011 $84.00 Addressee CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Registered Owner(s) CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Situs Address 1770 W BALBOA BLVD 2A NEWPORT BEACH, CA 92663 ATTENTION OWNER: THIS IS THE REGISTRATION CARD FOR THE UNIT DESCRIBED ABOVE. PLEASE KEEP THIS CARD IN A SAFE PLACE WITHIN THE UNIT. INSTRUCTIONS FOR RENEWAL: REGISTRATION FOR THIS UNIT EXPIRES ON THE DATE INDICATED ABOVE IN THE BOX LABELED "Exp. Date". 3 THERE ARE SUBSTANTIAL PENALTIES FOR o DELINQUENCY. IF YOU DO NOT RECEIVE A RENEWAL NOTICE WITHIN 10 DAYS PRIOR TO THE EXPIRATION DATE, CONTACT H.C.D. FOR RENEWAL INSTRUCTIONS. IMPORTANT THE OWNER INFORMATION SHOWN ABOVE MAY NOT REFLECT ALL LIENS RECORDED WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AGAINST THE DESCRIBED UNIT. THE CURRENT TITLE STATUS OF THE UNIT MAY BE CONFIRMED THROUGH THE DEPARTMENT. DTN: 6798883 R 08082011. 195 STATE OF CALIFORNIA - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT REGISTRATION CARD Manufactured Home Decal No: AAR3776 Manufacturer lD/Name SKYLINE Trade Name SKYLINE Model 1 DOM 00/00/1971 1 DFS 06/01/1971 RY 1971 Exp. Date Jul 31, 2009 Serial Number Label/Insignia Number Weight Length Width SPC SC C Exempt Use Type SCS11954XX 478431 48' 10, ACD 30 SFD ILT SCS11954XXU 478432 48' 10, • Issued Total Fees Paid ' Jan 08, 2009 $41.00 Addressee CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Registered Owner(s) CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Situs Address 1770 W BALBOA BLVD 2A NEWPORT BEACH, CA 92663 ATTENTION OWNER: THIS IS THE REGISTRATION CARD FOR THE UNIT DESCRIBED ABOVE. PLEASE KEEP THIS CARD IN A SAFE PLACE WITHIN TIIE UNIT. INSTRUCTIONS FOR RENEWAL: REGISTRATION FOR THIS UNIT EXPIRES ON THE DATE INDICATED ABOVE IN THE BOX LABELED "Exp. Date". THERE ARE SUBSTANTIAL PENALTIES FOR DELINQUENCY. IF YOU DO NOT RECEIVE A RENEWAL NOTICE WITHIN 10 DAYS PRIOR TO THE EXPIRATION DATE, CONTACT H.C.D. FOR RENEWAL INSTRUCTIONS. IMPORTANT THE OWNER INFORMATION SHOWN ABOVE MAY NOT REFLECT ALL LIENS RECORDED WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AGAINST THE DESCRIBED UNIT. THE CURRENT TITLE STATUS OF THE UNIT MAY BE CONFIRMED THROUGH THE DEPARTMENT. D1N. $287496 01082009. 102 EYet)N's c" nAtW4A PAta1C SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement ("AGREEMENT') is entered into as of September 7, 2007, by and between the CITY OF NEWPORT BEACH, a municipal corporation and charter city ("CITY"), the MARINAPARK HOMEOWNERS ASSOCIATION ("HOA" ), those persons, exclusive of the CITY, that own mobile homes located at the Marinapark Mobile Home Park located at 1770 West Balboa Boulevard on the Balboa Peninsula between 15th and 18th Streets (hereinafter the "PARK") and whose names are set forth on Exhibit A, which is attached hereto and incorporated herein by this reference (hereinafter "OWNERS"), and those persons whose names are set forth on leases with the City and/or who have resided for any period of time in any mobile home belonging to OWNERS and whose names are set forth on Exhibit B, which is attached hereto and incorporated by this reference (hereinafter ("RESIDENTS") (hereinafter the HOA, OWNERS and RESIDENTS will be collectively referred to as ("CLAIMANTS") and the CITY and CLAIMANTS shall be collectively referred to as the ("PARTIES")) with reference to the following definitions and recitals: RECITALS: A. The CITY Is the owner of the PARK and has owned the PARK since 1919. The Initial use of the PARK after it was purchased by the CITY was for a CITY campground. The PARK was later renovated in 1955 to a trailer court for 120 trailers. Accommodation of larger mobile homes put the PARK at today's maximum capacity of 58 mobile homes. A depiction of the PARK and the PARK boundaries is attached hereto as Exhibit C and incorporated herein by this reference. B. On March 14, 2006, the City Council for the CITY held a public hearing to consider changing the use of the PARK from a residential use to an Interim open space condition. After reviewing all material submitted and considering the public testimony, the City Council adopted Resolution No. 2006-23, which is attached hereto Page t of 28 Madnapark Agreement and Release as Exhibit D and incorporated herein by this reference ("RESOLUTION"), which, among other things: 1. Approved and adopted the Mitigated Negative Declaration. 2. Resolved that the notice of hearing and a copy of the Relocation Impact Report were served on all residents and others in conformance with California law and that the Relocation Impact Report and proposed relocation benefit options are legally sufficient. A copy of the Relocation Impact Report Is attached hereto as Exhibit E and incorporated herein by this reference ("REPORT"). 3. Resolved that the change of use of the PARK to an interim open space condition would be conditioned on the CITY providing the relocation benefit options set forth in the REPORT and RESOLUTION. 4. Resolved that the replacement of all or any portion of the dwelling units occupied by low or moderate Income persons or families which would -be removed from the PARK as a result of the change of use, was not feasible and could not be accomplished in a successful manner within a reasonable period of time, taking Into account economic, environmental, social and technical factors. C. On or about May 19, 2006, the HOA submitted a claim, which Is attached hereto as Exhibit F and incorporated herein by this reference ("CLAIM"), alleging, among other things, that the CITY's adoption of the RESOLUTION and the approval of the REPORT were inappropriate because: 1. The REPORT violated the Uniform Relocation Act (Government Code Section 7260 et seq.). 2. The CITY violated Section 20,51.060 of the Newport Beach Municipal Code. 3. The REPORT underestimated the cost of relocation and did not conform to the requirements of the Mobile Home Residency Law (Civil Code 798 et seq.) or Government Code Sections 65863.7 and 65863.8. Page 2 of 28 Marinapark Agreement and Release I I 4. The CITY violated the Mello Act (Government Code Section 65590 et seq.). Quality Act. 5. The CITY violated the provisions of the California Environmental 6. The true cost of relocation and other damages sustained by each member of the HOA were in excess of TWO HUNDRED THOUSAND DOLLARS AND NO CENTS ($200,000.00) and that the CITY was required to pay this amount under the applicable law. D. A dispute has developed between the CITY and CLAIMANTS in that the CITY denies each of the contentions set forth in the CLAIM and Recital C above, Specifically, among other things, the CITY contends that: 1. The CITY complied with all provisions of law including, but not limited to: (a) the Mobile Home Residency Law (Civil Code 798 et seq); (b) the California Environmental Quality Act; (c) Government Code Sections 65863.7 and 65863.8; (d) the Mello Act (Government Code Section 65590 et seq.); and (a) the Newport Beach Municipal Code. 2. The CITY had no obligation to pay relocation benefits under the Uniform Relocation Act (Government Code Section 7260 et seq.). 3. The REPORT did not underestimate the cost of relocation. 4. The CLAIMANTS are only entitled to those relocation benefits set forth in the RESOLUTION. E. The CLAIMANTS dispute each and every contention of the CITY and contend that each and every one of the CLAIMANTS is entitled to additional relocation benefits and damages. Hereinafter, the contentions, claims and denials set forth in RECITALS A through E as well as any and all claims that could have been made, which are known or unknown, In conjunction with the closure of the PARK, the adoption of the RESOLUTION, the approval of the REPORT and the amount of Page 3 of 28 Marinapark Agreement and Release relocation benefits stemming from the change of use and PARK closure shall be referred to as the "DISPUTE". F. The DISPUTE resulted in CLAIMANTS filing a lawsuit against CITY which is entitled Abramowitz vs. City of Newport Beach, Orange County Superior Court Case No.07CC10012 ("CIVIL ACTION"). G. . The PARTIES understand and agree that the DISPUTE and CIVIL ACTION arose out of and relates to the CITY's decision to change the use of and close the PARK. The PARTIES desire to resolve all of the issues raised in the DISPUTE and CIVIL ACTION enter into this AGREEMENT, to FINALLY, FULLY and COMPREHENSIVELY settle the DISPUTE and CIVIL ACTION so as to allow the PARTIES to continue their pursuits having fully, finally, comprehensively and conclusively resolved the DISPUTE and CIVIL ACTION as between these settling PARTIES. AGREEMENT: In consideration of the covenants herein contained, and for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the PARTIES hereto hereby agree as follows, in full and complete settlement of the DISPUTE and CIVIL ACTION. 1. CLAIMANTS represent and warrant as a material term of this AGREEMENT that CLAIMANTS have not heretofore assigned, transferred, released or granted, or purported to assign, transfer, release or grant, any claim disposed of by this AGREEMENT. In executing this AGREEMENT, CLAIMANTS further warrant and represent that none of the claims released by CLAIMANTS hereunder will In the future be assigned, conveyed, or transferred in any fashion to any other person and/or entity. Nothing herein shall be deemed as a waiver or release of the warranties, representations, rights and obligations set forth in this paragraph. Page 4 of 28 Madnapark Agreement and Release 2. The CLAIMANTS hereby represent and warrant as a material term of this AGREEMENT that: A. The SETTLEMENT AMOUNT, defined below, includes any and all compensation due in conjunction with the CITY'S decision to change the use of and close the PARK, fully compensates the CLAIMANTS for any and all benefits, costs, damages, and expenses including, but not limited to, relocation benefits now due or owing under the RESOLUTION or otherwise, or that may hereafter accrue, ' under any statute, ordinance, regulation, rule and law of any governmental entity including, but not limited to, federal, state, county and municipal government, whether now in force or hereinafter enacted. i B. CLAIMANTS are the only persons who have resided at any time in any mobile home located at the Park that OWNERS and/or RESIDENTS have any property or other interest in. C. The OWNERS are the current owners of the mobile homes located at the PARK and no person besides OWNERS has any interest in the mobile homes located at the PARK that are owned by OWNERS. D. That CLAIMANTS will not challenge or file a claim, lawsuit or take other action related to any project, or interim project (such as the demolition or removal of the mobile homes and the planting of grass at the PARK site), for the conversion of the PARK to a public use. E. The CLAIMANTS have not and will not file any document with the Orange County Recorder that would encumber the CITY'S title to the PARK property or mobile homes purchased pursuant to this AGREEMENT. The CLAIMANTS hereby agree that they shall indemnify and defend and hold the CITY and their elective and appointive boards, commissions, officers, agents, attorneys, representatives, and employees, harmless from any and all liability, loss, expense, damage, or claims which may arise directly or indirectly from or in Page 5 of 28 Marinapark Agreement and Release I connection with any allegation that the warranties and representations made in this paragraph are false and/or for the breach of any of the terms and conditions of this paragraph, whether or not there is concurrent passive negligence on the part of the CITY or their elective and appointive boards, commissions, officers, agents or employees. Nothing herein shall be deemed as a waiver or release of the warranties, representations, rights and obligations set forth in this paragraph. 3. The CITY agrees to pay to the CLAIMANTS a total of ONE MILLION EIGHT HUNDRED AND FIFTY-FIVE THOUSAND DOLLARS AND NO CENTS ($1,855,000.00) (i.e. THIRTY FIVE THOUSAND DOLLARS AND NO CENTS $35,000.00 multiplied times 53 mobile home units) (the "SETTLEMENT AMOUNT"). The SETTLEMENT AMOUNT shall be paid in accordance with the terms of the Purchase and Sale Agreement and Escrow Instructions attached hereto as Exhibit G which is incorporated herein by this reference ("PURCHASE AND SALE AGREEMENTS"). 4. As part of the consideration for this AGREEMENT, the CLAIMANTS hereby agree to convey their entire interest in the mobile homes and Improvements Including, but not limited to, porches, additions, fences, steps, planters, air conditioning units, sheds, landscaping and appurtenant structures, located at the PARK (hereinafter "MOBILE'HOMES AND IMPROVEMENTS") to the CITY free and clear of all [lens and encumbrances. To effectuate this agreement, the PARTIES have agreed that at the time this AGREEMENT Is executed, the CITY and the OWNERS shall execute and agree to be bound by the PURCHASE AND SALE AGREEMENTS, In addition, CLAIMANTS hereby agree that upon the closure of escrow as set forth in the PURCHASE AND SALE AGREEMENTS, the CITY shall become the owner of all MOBILE HOMES AND IMPROVEMENTS, 5. The PARTIES agree that OWNERS who are selling their mobile homes to the CITY pursuant to this AGREEMENT and the PURCHASE AND SALE MadnaparkAgreement and Release Page 6 of 28 AGREEMENTS shall have the option of repurchasing their mobile home sold, to the CITY in accordance with the terms and conditions set forth in the option to repurchase " attached hereto as Exhibit H and incorporated herein by this reference ("OPTION TO PURCHASE"). 6. As part of the consideration for this AGREEMENT, the CITY has agreed to lease the mobile homes acquired pursuant to the PURCHASE AND SALE AGREEMENTS to those persons whose names are set forth in the leases, attached hereto as Exhibit 1 and incorporated herein by this reference ("LEASE"), subject to the terms and conditions set forth therein. To effectuate this agreement, the PARTIES have agreed that at time this AGREEMENT is executed, the PARTIES shall execute and agree to be bound by the LEASE and shall agree to terminate the existing lease by executing the termination of lease attached hereto as Exhibit J and incorporated herein by this reference (hereinafter "TERMINATION OF LEASE"). 7. Except as provided in Section 8 below, as part of the consideration for this AGREEMENT, the CLAIMANTS have agreed that the LEASE shall expire and the CLAIMANTS will be required to fully vacate the PARK on September 1, 2009. The PARTIES agree that the LEASE shall be extended and will become a month to month LEASE if the CITY is not ready to move forward with a project for the conversion of the PARK to a public use. The PARTIES agree that even an interim project (such as the demolition or removal of the mobile homes and the planting of grass at the PARK site) shall be considered a sufficient project which would result in the LEASE not being extended and which would require the residents to vacate the PARK by September 1, 2009. The PARTIES agree that CITY shall be deemed to be ready to move forward with a project for the conversion of the PARK site to a public use if the CITY has approved a plan for an interim project or other project, allocated funds in the budget for the interim project or other project, and obtained any necessary permits. Page 7 of 28 Marinapark Agreement and Release 8. As part of the consideration for this AGREEMENT, those persons who reside in units 12 A-E at the PARK, and whose names are set forth in Exhibit K, which is attached hereto and incorporated herein by this reference (hereinafter "RESIDENTS OF 12A-E"), have agreed that the CITY shall have the option of terminating the RESIDENTS OF 12 A-E LEASE as of September 1, 2008 or at any time thereafter, If. A. The CITY approves a project for the expansion of the marina, allocates funds for a marina expansion project and obtains any necessary permits; B. The CITY provides the RESIDENTS OF 12 A-E with at least ninety (90) days prior notice that the CITY has approved a project for the expansion of the marina, allocated funds for the marina expansion project, obtained any necessary permits and that the lease will terminate at the end of the notice period; C. The CITY pays a total of ONE THOUSAND TWO HUNDRED FIFTY DOLLARS ($1,250.00) per unit (i.e. unit 12A, 126, 12C, 12D and 12E would each be a separate unit), per month for each month that the RESIDENTS OF 12 A-E are required to move before September 1, 2009 (hereinafter "ADDITIONAL PAYMENT') which ADDITIONAL PAYMENT shall be paid via check within ten (10) working days after the RESIDENTS OF 12 A-E have vacated the PARK. If the CITY does not provide notice pursuant to this section by May 1, 2009, the RESIDENTS OF 12 A-E will be treated the same as all other CLAIMANTS and be required to vacate the premises in accordance with Section 7 of this AGREEMENT. 9. Within ten (10) days of the close of escrow as provided for .in the PURCHASE AND SALE AGREEMENTS, the CiTY shall cause to be paid to Enderrian, Lincoln, Turek & Heater LLP a payment in the amount of NINETY THOUSAND DOLLARS AND NO CENTS ($90,000.00), in the form of a check made payable to "Endeman, Lincoln, Turek & Heater LLP" to be mailed to 600 8 Street, Suite 2400, San Diego, California 92101 via certified mail return receipt requested. Marinapark Agreement and Release p Page 8 of 28 10. At the time that Ms, Phyllis Racine executes this AGREEMENT, Ms. Phyllis Racine as an individual and as Trustee of the Phyllis M. Racine Revocable Trust, shall execute the Quitclaim Deed attached hereto as Exhibit L, which is incorporated herein by this reference, transferring any and all interest she may have in 1 the property described therein to the CITY. 11. Each of the PARTIES agree and represents that they have made such investigation of the facts pertaining to this AGREEMENT and all matters pertaining hereto as they have determined reasonable and necessary. This AGREEMENT Is intended to be final and binding among the PARTIES hereto, regardless of any claims or misrepresentations, promises made without the intention of performing them, mistakes of fact or law, or any other circumstances whatsoever, and under no circumstances shall any party be entitled to set aside this AGREEMENT, either in whole or in part. Except as expressly provided herein or in the Exhibits hereto, in entering into this AGREEMENT, each party assumes the risk of any misrepresentation, concealment or mistake, whether or not any party should subsequently discover or assert for any reason that any fact relied upon by such a party in entering into these releases was untrue, or that any fact was concealed from any party hereto, or that such party's understanding of the facts or of the law was Incorrect or incomplete, 12. CLAIMANTS, and each of them, for themselves and all of their predecessors, successors, assigns, representatives, attorneys, employees, officers, and agents, do hereby fully and forever release and discharge the CITY and all of its predecessors, successors, assigns, representatives, attorneys, agents, elective and appointive boards, commissions, officers, and employees of and from any and all actions, claims, demands, rights, damages, costs, litigation expenses, attorneys fees, expert fees, consultant fees, other fees, Interest, the value of the leasehold interest, the loss of goodwill, any inverse condemnation claims, any claims for the taking of Page 9 of 28 Marinapark Agreement and Release I property, relocation benefits including, but not limited to, relocation benefits under the Mobile Home Residency Law (Civil Code 798 et seq.), Government Code Section 66863.7, the Uniform Relocation Act (Government Code Section 7260 et seq.), the Newport Beach Municipal Code or other Federal, State or local law, statute, ordinance, rule or regulation, any other damages, costs or expenses arising from any and all actions of the CITY, and compensation of any nature whatsoever, which CLAIMAINTS have or may hereafter accrue, Including without Ilmitation, any and all known and unknown, foreseen and unforeseen claims, damage and Injury, relating to, or in any way, directly or indirectly, involving or arising out of any facts or circumstances related to the change of use and closure of the PARK, the DISPUTE, and the CIVIL ACTION. 13, It is the intention and understanding of the CLAIMANTS, in executing this instrument, that It shall be effective as,a full and final accord and satisfaction and compromise and release, of each and every settled or released matter. In furtherance of this intention, the CLAIMANTS acknowledge that they are familiar with Section 1542 of the Civil Code of the State of California which provides as follows: "A general release does not extend to claims which the creditor does not know or suspects to exist in his favor at the time of executing the release, which, if known by him, must have materially affected his settlement with the debtor." CLAIMANTS hereby expressly waive or relinquish any right or benefit which they have, or might have, under Section 1542 of the Civil Code of the State of California and all other similar provisions of law of other jurisdictions to the fullest extent allowed by law. In connection with such compromise, waiver and relinquishment, CLAIMANTS acknowledge that they are aware that they may hereafter discover facts in addition to or different from those which they now know or believe to be true with respect to the subject matter of this instrument, but that, except as is otherwise provided herein, it is their intention hereby to fully, finally and forever Page 10 of 28 Marinapark Agreement and Release settle and release all matters, disputes and differences, known or unknown, suspected or unsuspected, which do now exist, may exist, or heretofore have existed, and that in furtherance of such intention, the release actually given herein shall be and remain in effect as a full and complete general release, notwithstanding the discovery or existence of any such additional or different facts. CLAIMANTS, expressly agree that they have reviewed this provision and had the consequences thereof explained to them by their attorney set forth below and/or have had the opportunity to discuss this provision with their attorney of choice. 14. Within ten (10) calendar days of the execution of this Agreement by all parties, CLAIMANTS shall dismiss the CIVIL ACTION with prejudice. 15. The PARTIES agree to seek court approval of this Agreement and request that the court retain jurisdiction pursuant to Code of Civil Procedure § 664.6 to enforce Its terms. CLAIMANTS will file a statement of non -opposition to such request, execute a stipulation for such request, and/or take any necessary action to have such request approved by the Court. OTHER TERMS AND PROVISIONS: 1. Governing Law, This AGREEMENT shall be governed and Interpreted In accordance with the laws of the State of California. Each party hereto agrees that the laws of the State of California shall apply and that any action brought hereunder shall be subject to the laws and statutes of the State of California. The PARTIES expressly agree that any disputes, disagreements or actions shall be venued with the Superior Court of Orange County, State of California. The PARTIES stipulate that they are subject to the jurisdiction of the Orange County Superior Court and hereby expressly waive any defense to assertion of jurisdiction by that court in such an action. 2. Integrated Agreement. This AGREEMENT contains the entire understanding and agreement between the PARTIES, and the terms and conditions contained herein shall Inure to the benefit of, and be binding upon, the heirs, Page 11 of 28 Madnapark Agreement and Release representatives, successors and assigns of each of the PARTIES hereto. No other representations, covenants, undertakings, or other prior or contemporaneous agreements, oral or written, respecting such matters, which are not specifically incorporated herein, shall be deemed in any way to exist or bind any of the PARTIES hereto. The PARTIES hereto acknowledge that this AGREEMENT has been executed without reliance upon any such promise, representation, or warranty not contained herein. 3. Modification. No supplement, modification or amendment of this AGREEMENT shall be binding unless executed in writing by all of the PARTIES. No waiver of any of the provisions of this AGREEMENT shall be deemed to constitute a waiver of any other provision -whether or not similar, nor shall waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the PARTIES making the waiver. 4. Binding on Successors. This AGREEMENT and the covenants and conditions contained herein shall obligate, bind, extend to and inure to the benefit of the PARTIES in each of their respective successors in Interest, including, but not r limited to, their administrators, executors, owners, partners, officers, directors, shareholders, legal representatives, assignees, attorneys, successors, and agents or employees of the PARTIES hereto. 5. Representation of CLAIMANTS. CLAIMANTS affirmatively represents that it has been represented by Endeman, Lincoln, Turek & Heater LLP, of San Diego, i California, who are attorneys at law of its own choosing. CLAIMANTS have read this AGREEMENT and have had the terms used herein and the consequences thereof explained by their above -named attorneys of choice. 6. Representation of CITY. CITY affirmatively represents that it has been represented by the Office of the City Attorney who are attorneys at law of its own Page 12 of 28 Marinapark Agreement and Release choosing. CITY has read this AGREEMENT and has had the terms used herein and the consequences thereof explained by its above -named attorneys of choice_ 7. Construction, This AGREEMENT shall not be construed against the party preparing it, but shall be construed as if all PARTIES jointly prepared this AGREEMENT. Any uncertainty and ambiguity shall not be interpreted against any one party. This AGREEMENT Is to be performed in California and it is to be interpreted, enforced, and governed by and under the laws of the State of California. Language in all parts of the AGREEMENT shall be in all cases construed as a whole according to its very meaning. 8, Attorneys' Fees and Costs. Except as expressly provided for herein, all attorneys' fees, litigation expenses, and costs Incurred through the date of this AGREEMENT shall be borne by the respective PARTIES and each party agrees to waive any claim, or claims, against any of the other PARTIES for the reimbursement of all, or any portion of said fees, expenses or costs. Should suit be brought to enforce or interpret any part of this AGREEMENT, the prevailing party shall be entitled to recover reasonable attorneys' fees. 9. Authority. Each party represents to the other that It has the right to enter Into this AGREEMENT, and that it is not violating the terms or conditions of any other agreement which they are a party or by which they are bound by entering into this AGREEMENT. The PARTIES represent that they will obtain all necessary approvals to execute this AGREEMENT. it Is further represented and agreed that the individuals signing this AGREEMENT on behalf of the respective PARTIES have actual authority to execute this AGREEMENT and, by doing so, bind the party on whose behalf this AGREEMENT has been signed. 10, Gender Neutral. Whenever in this AGREEMENT the context may so require, the masculine, feminine and neutral genders shall be each deemed to Include the other and the singular and the plural shall refer to one another. Page 13 of 28 Marinapark Agreement and Release I I I 1 11, Future Cooperation. The PARTIES expressly agree to execute documents, provide information, and to cooperate in good faith to effectuate the purpose of this AGREEMENT. 12. Counterparts. This AGREEMENT may be executed in duplicate counterparts, each of which shall be deemed an original and all of which shall constitute an agreement to be effective as of the date of signing. Further, signatures transmitted and memorialized by facsimile shall be deemed to have the same weight and effect as an original signature. The PARTIES may agree that an original signature will be substituted at some later time for any facsimile signature. 13. Captions and Interpretatlons. The paragraph titles and captions are inserted in this AGREEMENT as a matter of convenience. As such, the paragraph titles or captions are not intended to define or describe the scope of any provision. 14. Invalid Claugg May Be Severed. If any provision, clause, or part of the AGREEMENT is adjudged illegal, invalid or unenforceable, the balance of this AGREEMENT shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGES] Marinapark Agreement and Release Page 14 of 28 c I 0 N CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY November 20, 2003 John E. Buttolph, Esq. 5020 Campus Drive Newport Beach, CA 92660 Re: Section 423 of the City Charter Proposed Marinapark Resort Dear Mr. Buttolph: The Mayor has asked me to respond to your letter dated November.,13, 2003 since I was the one who prepared the staff report and the agreement that forms the basis of your inquiry. As you ow, the City Council has decided to submit the Marinapark Resort project (koject) to the voters at the November 2004 regular municipal election. The City Council has the authority to submit matters to the voters (a) pursuant to Section 423 of the City Charter; (b) pursuant to provisions of the Elections Code; and (c) pursuant to plenary powers derived from the Charter and the State 'Constitution. The City Council did not make a determination as to whether the project would be submitted pursuant to Section 423 or its plenary powers but the decision, the process leading up to the election and the election itself fully comply with the letter, spirit and intent of Section 423 of the City Charter. The Project will be -processed in a manner identical to any general plan amendment although the City Council has added features to the process that will provide the voters with more information about the Project than is normally prepared and made available. The City is preparing a full Environmental Impact Report (EIR) pursuant to the California Environmental Quality Act. The Project and the EIR will be considered — at public hearings — by the Planning 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92658-8915 Telephone: (949) 644-3131 • Fax: (949) 644-3139 - www.city.newport-beach.ca.us Commission and City Council. However, unlike- the typical general plan amendment, the process adopted by the City Council will provide the voters with a thorough fiscal impact report and the likely terms and conditions of a lease of the property if the Project is approved. Section 423 does not require the City to provide this additional information and data reflecting a project's fiscal impact is typically not prepared or available to the public relative during the course of a typical general plan amendment. The Project will also be presented to the voters at the time, and in the manner, specked in Section 423 of the City Charter. The Project will -be placed on the ballot for the regular municipal election along with candidates for offices ranging from City Council to President — assuring high voter turnout. The ballot measure will be a "separate and distinct" item and will be worded so "that a YES vote approves the amendment and a NO vote rejects the amendment." You have also inquired about the Measure S Guidelines and some background may be helpful to clearly understand our response.- As you know, Section 423 of the Charter establishes three thresholds .for determining when a "major amendment" requires voter approval. I'm sure you are also aware that Measure S invited the City Council to adopt guidelines to implement its provisions. The City Council held numerous meetings/hearings prior to adopting the Measure S Guidelines (Guidelines) in March 2001. I am confident that everyone involved in those discussions realized that various provisions of Measure S were — like virtually every document — subject to a number of different interpretations. In fact, Measure S proponents argued for a more liberal interpretation of certain provisions _ such as the requirement to "look back" ten years — than the Measure S opponents (the City Council adopted staffs recommendations — which were consistent with the position of the proponents - on the "look back" provisions). One of the many issues discussed during these meetings/hearings was the fact that Land Use Element entitlement for certain uses — such as hotels, marinas and theaters — is expressed in terms of rooms, boat slips or seats. The Land Use Element statistical tables arbitrarily assign approximately 1000 square feet to each hotel room but the City has historically looked to the text for purposes of determining entitlement. The Guidelines adopted by the City Council, with the full participation and apparent blessing of Measure S proponents, provide that projects entitled through descriptors other than floor area or dwelling units (such as hotels and marinas) would be evaluated solely in terms of peak hour traffic generation. In my opinion, and I realize we disagree in this regard, the Guidelines are consistent with the express purpose and intent of Measure S — to 0 require voter approval of general plan amendments that generate a certain amount of additional traffic- in comparison to existing entitlement.. In the case of future general plan amendments, and assuming the City Council follows the Measure S Guidelines, a hotel project would require voter approval if (a) the project generated more than 100 peak hour trips; or (b) if the text of land use element amendment expressed entitlement in terms of floor area (or floor and hotel rooms) and the increase in floor area compared with any existing entitlement exceeds 40,000 square feet. Hopefully this letter is responsive to your inquiry.. Sincerely, Robert Burnham City Attorney 0MEMORANDUM 0 TO: DAVE KIFF ROBIN CLAUSEN FROM: BILL MECHAM DATE: September 12, 2003 SUBJECT: MARINAPARK The Increasing volume of home sales in Marinapark has created circumstances that require, in my opinion, further direction from the City. The issues involved are: i. There have been 12 homes sold since June 1 of this year. The prices for the homes, against any logic, are increasing. Two homes on the front row have sold for $90,000 plus in the last two weeks. The average sale price for these 12 sales is $62,000 plus. A complete listing of these sales is attached. 2. The lease, as offered beginning last March, has language in paragraph 9.13 on page 10 that requires us to issue a new rental agreement to a purchaser. The only agreement available does not have a clause for a rent Increase. That means that every sale that taken place has moved any rent increase out to 12 months from the turnover date. 3. We have two spaces that never returned a signed lease. Both are now interested in selling. We have discussed raising the rent on these spaces as they have no rental agreement to control their rent. 4. The owner of unit 3B agreed to sell their unit to the City for $12,050 in late April of this year. The finalization of that sale has been delayed by HCD's bureaucracy but has now been completed (I will .be asking for a check to complete the sale in the next few days). We will have title in our hands in the next week or so. The seller has been under intense pressure from current residents to back out of the sale because it, in their opinion, weakens their position on site. The seller even received an offer In writing to purchase. 5. The president ofthe homeowners association Ps Indicated verbally to the park manager that if we try to rent space 3B their lawyers will seek to challenge our action. 6. Under current law, we must offer a 12 month rental agreement to a resident. The vast majority of residents did not sign their rental current agreements until some time in April 2003. The offer of another 12 month agreement in 2004 will put their tenancy past the March 2005 closure date the City has published. 1 have discussed the lease agreement situation with Terry Dowdall and he has suggested new language that indicates there is a rent increase possible during the 12 month term with a 90 day notice. This new language will give us flexibility to increase any new purchasers at the same time as the balance of the residents. As of today we will have at least 10 new agreements .that will not allow an increase until some time in June through September 1 of 2004. RECOMMENDATIONS: A. Adopt new language in the rental agreement that will allow for an Increase at any time during the 12 month period of the lease. B. Use the new rental agreement with the two spaces that never returned an original agreement. Raising the rent at this time is, according to my conversations with Robin and Dave, subject to possible council action. C. I believe we have sufficient research from Terry Dowdall on the question of whether or not we can rent a home. We should move forward with the repairs to space 3B and rent the home as an apartment. D. I believe we should ask Terry Dowdall to do further research on the question of whether or not we must offer a 12 month agreement under the closure scenario. I have also been asked to provide proposals from appraisers familiar with manufactured housing to do a rent study and recommendation for a rental rate for an increase in March of 2004. I should have proposals available by late next week. MA0RINAPARK HOME SARS June 1, to September 1112003 June 2 5-13 Proctor to Jerome Thompson Whitehead to Doug Kunnel and Johnathan Morrison $52,500 65,000 June 6 June 12 7-F 4-A Gorman to Jim Whitaker 27,000 5,000 July 2 12-B Hartunian to Julio Salas 69,000 July 18 July 18 5-E 12-C Jacob to Larry Davis Horowitz to Marilyn Pettett ,000 July 24 2-A Lawson to Phyliss Racine 48,000 962 Sept 1 11-B Brownstein to John Chase ,500 Sept 2 6-C Campbell/Rybus to Howell Tyson ,00 Pending: and Tom Telliard 60,000 Sept 11 11-C Bogin to Tony el, Morrison and Thompson 92,000 Sept 11 12-A Grossman to Kimm The last two were scheduled to come in to sign documents 9-11. 1 delayed those meetings until I could gain further direction, Key: A and B homes are front row on the bay with current rent of $5 50 C, D and 7-F are second row with current rent of 11125 25 E homes are third row with current rent of F HOUSING A STATE OF CAI,IFORNIA•EPARTR GISTRAT ON CARD -� Manufactured Home Manufacturer IOIName SKYLINE Seriel Number SCS11954xx SCSI Ib54XXU Addressee CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Registered Owner(s) CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Situs Address 1770 W BALBOA BLVD 2E NEWPORT BEACH, CA 92663 ATTENTION OWNER: Trade Name I Model Labelllneignla Number I Weight Length 478431 48: 476432 48 THIS IS THE REGISTRATION CARD FOR THE UNIT DESCRIBED ABOVE. PLEASE KEEP THIS CARD IN A SAFE PLACE WITHIN THE UNIT, . INSTRUCTIONS FOR RENEWAL: • ISTRATION FOR THIS UNIT EXPIRES ON THE DATE INDICATED ABOVE IN THE BOX LABELED "Exp. Date". THERE ARE SUBSTANTIAL PENALTIES FOR DELINQUENCY, IF YOU DO NOT RECEIVE A RENEWAL NOTICE WITHIN 10 DAYS PRIOR TO THE'EXPIRATION DATE, CONTACT H.C.D. FOR RENEWAL INSTRUCTIONS. DEVELOPMENT I Decal No: AAR3776 00M DFS RY Exp. Dato 0010011971 05/0111971 1971 Ju131, 2000 Width SPC SCC Exempt Use Type 10' ACD 30 SFD ILT 10, Issued Total Fees Paid Mar 10, 2003 1 $556.00 IMPORTANT THE OWNER INFORMATION SHOWN ABOVE MAY NOT REFLECT ALL LIENS RECORDED WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AGAINST THE DESCRIBED UNIT. THE CURRENT TITLE STATUS OF THE UNIT MAY BE CONFIRMED THROUGH THE DEPARTMENT. o119 DTN' 2783837 'STATE OF CALIFORNIA&EPARTMENT OF HOUSING AN*OMMUNITY DEVELOPMENT CERTIFICATE OF TITLE Manufactured Home Decal No: AAR3776 Manufactuier ID/Name SKYLINE Trade Name SKYLINE Model DOM 01/1111971 DFS 05101/11171 RY 1 1971 I Ezp. Data Jul 31, 2003 Serial Number LabeVlnsignla Number Weight Length Width SPC SCC I Exempt Use Type SCS11954XX 478431 48' 10, ACD 30 SFD ILT SCS11954XXU 478432 48' 10, Issued Total Fees Paid Mar 10, 2003 $558.00 Addressee CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Registered Owner(s) CITY OF NEWPORT BEACH 3300 NEWPORT BL NEWPORT BEACH, CA 92663 Situs Address 1770 W BALBOA BLVD 2E NEWPORT BEACH, CA 92663 [iuT_Eii711�1►YI 1. THE OWNER INFORMATION SHOWN ABOVE MAY NOT REFLECT ALL LIENS RECORDED WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AGAINST THE DESCRIBED UNIT. THE CURRENT TITLE STATUS OF THE UNIT MAY BE CONFIRMED THROUGH THE DEPARTMENT. DTN: 2783837 03102003. 120 order on the date of sale. 'T/We cenify that the manufactured home, mobile ome, To smoke detector which is in proper working is equipped with an operable smoke detector on the date of transfer." . - > „ I/We further agree to indemnify and save harmless the Director of the State of California, Department of Housing, and n e of n Cal Community Da velopment of d s ubscovering purchasers of said unit, for any loss they may suffer resulting from registration of the unit in California, or from, the same. Me certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed Ia. Releasing Signature of Registered Owner lb. Releasing Signature of Registered Owner Date of Release Date of Release ❑ Release . ❑ Retain * ❑ Assign Interest 3a. 3c. New Registered Owners Name New Registered Owners Name 3d. 3b. New Registered Owners Name New Registered Owners Name If more than one New Owner going auto title, Please check the appropriate Co-owner tens box. *O T ❑ Joint Tenants with Right of Survivorship (JTRS) ❑ Tenants In Common OR (TENCOM OR) ("Ifdubox s chated-ComPkte aCD 4766n) Irdes W is ❑ Tenants In Common AND (TENCOM AND) ❑ Community Property (COMPRO) 4. City/State /State Zip Code y Mailing Address of New Registered Owner — 5' City/State Zip Code Actual Location Address of Unit 6. Purchase Dale or Transfer Date Purchase Price or check box if Gift-O 7c. 7a• Signature of New Registered Owners Signature of New Registered Owners 7d. 7b• Signature of New Registered Owners Signature of New Registered Owners - - NEW LEGAL OWNER -Please Print or Type Clearly 8b. 8a, New Legal Owners Name New Legal Owners Name If more than one New Lender going onto title, please check the approprime Co-owner term box below. *❑ Truss ❑ Joint Tenants with Right of Survivorship(JTRS) ClTenants In Common OR (TENCOM OR) box istec(s) If rust/TrusecF.edLmnplelc HCD.176.6a) Cl Tenants In Common AND (TENCOM AND) ❑ Community Property (COMPRO) 9------- Cny/State Zip Code Mailing Address of New Legal Owner Clearly NEW JUNIOR LIENHOLDER -Please Print or Type 10b. 10a. New Junior Lienholder Name New Junior Lienholder Name 12. Pont Dwkn Name and Dekr Number ED gignalu¢of SeWng Draler State of California �INESS, TRANSPORTATION AND HOUSING AG DEPARTMENT OF HOUSING AND COMMUNITY DEVELO ENT DIVISION OF CODES AND STANDARDS REGISTRATION AND TITLING PROGRAM PO Box 2111 Swramento CA 95612.2111 180 952 N httpJAvww.had.ca.gov/oodaL"htm NOTICE OF SALE OR TRANSFER In order to process your Notice of Transfer, please complete the following sections: SECTION I: Please enter the Unit description information pertaining to your Mobilehome. Remember to include your DecaVLicense plate number(s), Serial(s) number, and Trade name of Unit. SECTI N II: Complete all information requested for the sale of the Mobilehome, include purchase price and date of sale. SECTION III: Please provide new owner Information, including full name and address. SECTION IV: Please date; enter City and Sate. Remember to include your signature and printed name. nr nnn,rirry mi. mrrn . n^vr r rame•n A nnncom __ _ -- .. - - ' - -- --- .. UrUIN rilrbWJV1\. �}J�A�EA/1LE1\ 1V Lil�!]pVi•G•G1V fTY�]c+/a/i�N�• SECTION 1. ' DESCRIPTION OF UNIT Decal Number(s) Serial Number(s) Trade Name SECTION II. SALE OR TRANSFER INFORMATION For the sum of ,S the receipt of which is hereby acknowledged, Vwe did sell, transfer and deliver to the purchaser/owner named below, on my/our right title and interest in the unit described above. Dare ofTiarufer Name: Address: City: State: Zp Code: Uwe certify under penalty of perjury under the laws of the State of California that: 1) I/We are the lawful owner(s) of the unit, and 2) I/We have the right to sell it, and 3) I/We guarantee and will defend the title to the unit against the claims and demands of any and all persons arising prior to this date, and 4) the unit is free of all liens and encumbrances I/We certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed On at Date City Star Signature of Sellers: Printed Name: HCD 476.8 (06/00) l CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. January 14, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Robin Clauson, Assistant City Attorney (949) 944-3131 or rclauson@city.newport-beach.ca.us Dave Kiff, Assistant City Manager (949) 644-3002or dkiff@city.newport-beach.ca.us SUBJECT: Rental Agreement with Tenants of Marinapark RECOMMENDATION: Approve a one-year (January 14, 2003 through January 13, 2004) Rental Agreement to lease spaces for mobilehomes on City property known as Marinapark (between 151h and 18th Street on the Balboa Peninsula). DISCUSSION: Brief Background In 1985, the City Council approved a 15-year Lease for spaces in the Marinapark Mobile home site on City property located between 15th Street and 18th Street on the Balboa Peninsula. The 1985 Lease expired in March of 2000. The Lease was extended for an additional 2 years through March of 2002 (the "2000 Extension"). In early 2002, the City embarked on negotiations with the tenants and the tenants' legal counsel to negotiate a Second Extension of the 1985 Lease. At the conclusion of negotiations, the City Council approved the Second Extension on May 28, 2002. That same evening, the City Council also approved a rent increase to be effective September 1, 2002. We based the rent increase upon an Appraisal of Fair Rental Value (dated April 1, 2002) conducted by Mr. William Hansen of William Hansen and Associates. Following 90-day notice of increased rent, we increased rent on 9-01-02 as shown in Exhibit A: • Marinapark Leases January 14, 2003 Page 2 Exhibit A afta " a , y Onmal $1,225 $1,550 26.52% $1,612 $925 $1,125 21.64% $1,170 $865 $1,050 21.42% $1,092 . assumes 4% CPI change As a reminder, Bay -adjacent lots are As or Bs. Lots one coach in from the Bay are Cs and Ds. Lots two coaches in from the Bay are Es (see Exhibit B). Exhibit B plNl4vReN,'f 5GL71oN— • iYi�l� iYi� 11► ii�i�� ����� ��� ^:ii� r7[�i i.���• Y•����!� Yn° nungnnmm �iltYYnYYt i Apt (.SMOG L EGOOH [>✓d/,°aKOMnG°aP/°JRK COoMPLCY,, @U792 MAN 30Nhp 9^a d(9' Rejection of the 2"d Amendment and Extension. Immediately following the Council's May 28, 2002 meeting, we delivered the Second Extension to each of the tenants. Several of the tenants then retained a new attorney (George Kaelin of Endeman, Lincoln, Turek & Heater to review the Second Extension that had been approved by their prior legal counsel (Cary Lowe of Jenkens and Gilchrist, LLP). Mr. Kaelin advised the tenants -- and they concurred -- to reject the Second Extension and requested that the City reopen negotiations to change many of the terms and conditions of the Lease. • • Marinapark Leases January 14, 2003 Page 3 The Second Extension of the 1985 Lease was rejected by the tenants and has no further effect. The Tenants have occupied the spaces on a holdover basis under the 2000 Amendment. Upon advice of City's outside legal counsel, Mr. Terry Dowdell, and with his assistance, we have prepared and negotiated the terms of a new one-year Rental Agreement, which, if approved by the City Council tonight, will be effective January 14, 2003 through January 13, 2004. The Rental Agreement will reflect rental amounts that Council approved May 28, 2002 and which took effect September 1, 2002. The one-year agreement (shown as Attachment A) will provide the Council with flexibility as it considers its options for reuse of the City property. The major changes between the May 28, 2002 version of the 2"d Amendment and Extension and this Rental Agreement are as follows: The Rental Agreement has a single one-year term that expires on January 13, 2004. The previously proposed Extension had one one-year term with two one- year options. Deletion of language expressly waiving tenants' rights to relocation benefits. Our legal counsel and the tenants' counsel have agreed upon these changes. Additional Background & History Marinapark sits today on a 4.34 acre parcel at 1770 West Balboa Boulevard on the Balboa Peninsula between 18th and 15th Streets. Marinapark has 58 mobile home spaces and 924' of beach frontage facing Newport Bay. The City acquired Marinapark from Pacific Electric Land Company in 1919. The initial use of the property after purchase was for a city campground (where campers paid 75¢/day for waterfront camp areas and 50¢/day for interior spaces) and later (in approximately 1955) to a "deluxe trailer court" for 120 trailers. A later renovation of Marinapark to accommodate larger trailers put the park at today's capacity of 58 mobile homes. Today 56 of the coach spaces are occupied with a coach. The City contracts with a private property management firm -- Bendetti Property Management -- to manage the park. Bendetti has a manager and an assistant manager onsite. The City and the residents at Marinapark ("Lessees") have entered into a series of leases of varying terms relating to the Lessees' occupancy at Marinapark. A summary follows: . 1973 Lease. The 1973 Lease extended an existing lease to September 30, 1977 at which time all Lessees would "unconditionally and without contest vacate the premises without contest, legal and otherwise... Lessees further agree to waive any 1: • Marinapark Leases January 14, 2003 Page 4 relocation assistance or any other assistance from Lessor resulting from vacating the premises." The 1973 Lease also dictated a new rental schedule through 1977. • 1976 Lease. A new 1976 Lease extended the Marinapark Lessees' tenancy through September 30, 1985. The 1976 Lease offered an extension of five years "should the City Council find and determine ... that Marinapark is not required for any public trust purpose or other public purpose..." Rents at the time were set by the Lease and deemed to be "the fair market rental value" for the spaces. 1985 Lease. The City Council stated its intent that Marinapark should be converted "to a public recreation area" upon expiration of a new 1985 Lease. The 1985 Lease — with an expiration date of March 15, 2000 — said that "the most significant rights obtained by Lessee, and given up by City..." were: -- Lessee's long-term right to occupy the Premises... -- Lessee's payment of "moderate rent ... and the advantage of limited rental increases in the future, while City gives up the right to charge higher rents initially and the right to impose future rental increases in excess of the cost -of -living index..." The 1985 Lease also outlines the rights and benefits "given up" by the Lessee, including: -- City's right to convert Marinapark to a public recreational use at Lease expiration; and - The waiver of any right of the Lessee to receive relocation benefits "or any other form of relocation assistance." • 2000 Amendment and Extension of Lease. On February 8, 2000, the City Council authorized the City to offer an amendment and extension ("Lease Extension") to the 1985 Lease. The Lease Extension acknowledged several things — some new, others a restatement of information in the 1985 Lease. The Lease Extension acknowledged (among other things): -- Uncertainty over the tidelands status of the land upon which the park sits — arguably, if the land is State-owned and City -managed "tidelands," then the residential uses at Marinapark may not be appropriate, because tidelands are intended to be visitor -serving; -- The City's (at that time) review of up to eight responses to a Request for Proposals (RFP) for future uses and development of Marinapark, some of which envisioned the continuation of the mobilehome use; and -- The "substantial and important benefit" of the economic and personal rights of the Lessees under the 1985 Lease, including the Lessees' payment of moderated rent and the ongoing waiver of Lessees' claims to any relocation benefits. • Marinapark Leases January 14, 2003 Page 5 . Proposed (but later rejected) 2002 2nd Amendment and Extension. As noted, while the Council approved a 2002 2"d Amendment and Extension in May 2002, the tenants and their second legal counsel rejected it. The 2"d Extension would have provided for a one-year term with two one-year options exercisable at the City's discretion to March 15, 2005. The Council's action that night also allowed for the rent increase mentioned above and for the City to apply additional rent increases to new tenants upon sale of the coach and assignment of the Lease either 1.50 or 1.30 per Mr. Hansen's appraisal. These latter two actions have taken effect and are in place today. No coaches have transferred ownership (except one coach purchased in December 2002 by the City itself) since the Council's May 2002 action. With the September 1, 2002 rent increase (and less the management fee paid to Bendetti Property Management), the City receives about $800,000 in revenue annually from Marinapark. Environmental Review: Section 15061 of the CEQA Guidelines provides that no environmental review is necessary where it can be seen with certainty that there is no possibility the activity will have a significant effect on the environment. This rental agreement is a continuation of existing conditions with no change in the physical environment. Public Notice: No specific public notice is required for approval of this agreement. The tenants have been notified through their attorney through their attorney that this item has been placed on agenda. Prepared by: Robin Clauson, Assistant City Attorney Dave Kiff, Assistant City Manager Attachment: Attachment A -- Proposed Rental Agreement HAMy DocumentsWarinapark -- 2003\03-01-14 AI MP Rental Agreements.doc u MARINAPARK 1770 WEST BALBOA BOULEVARD NEWPORT BEACH, CALIFORNIA 92663 RENTAL AGREEMENT This Rental agreement ("Agreement") is entered into this day of 2003, by and between the CITY OF NEWPORT BEACH, a municipal corporation and Charter City (City or Owner) and (Tenant), and is made with reference to the recital and acknowledgments, the materiality and existence of which is stipulated and agreed by the Parties: A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15th Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Property). B. The City Council actively solicited proposals for non-residential uses at Marinapark and, as of February 2002, has deemed a non-residential use of Marinapark the most appropriate land use for the property. The City is currently investigating an alternative use of the property and a decision to change the use of the property may be made at any time. Notification of any decision to change the use of the property will be given in accordance with the Mobilehome Residency Law, Section 798.56 (g) and other applicable law.. C. California State Lands Commission staff has asserted that a portion of the Property consists of tidelands. City and Tenant have, in the past, claimed that all or substantially all, of the Property leased for mobilehome residency purposes is uplands owned by City, and City and Tenant have discussed various bases to support that claim. D. The State Lands Commission staff has asserted that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, City and Tenant may dispute that claim. E. The terms and conditions of this Agreement are consistent, with the provisions of the Mobilehome Residency Law (Section 798 et. seq. of the California Civil Code). F. You acknowledge having received, read and understood a copy of: The attached Mobilehome Residency Law and Park Rules and Regulations each of which is incorporated by this reference. G. The terms of residency shall be solely governed by law and by the terms of this agreement. No salesperson, broker, financial institution or any person not specifically employed by owner has the authority or right to make statements on behalf of City. The resident managers have no authority to modify this agreement. This is the exclusive agreement between City and Tenant. H. A new Tenant warrants that Tenant has read, reviewed and executed a written disclosure statement provided by the management at least three (3) days prior to the execution of this rental agreement. EQUAL HOUSING OPPORTUNITY: WE DO BUSINESS IN ACCORDANCE WITH THE STATE AND FEDERAL FAIR HOUSING LAWS. IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, HANDICAP OR DISABILITY, FAMILIAL STATUS SOURCE OF INCOME, NATIONAL ORIGIN OR ANCESTRY OR FOR ARBITRARY REASONS UNDER STATE LAW. NOW, THEREFORE, the Parties do hereby mutually agree as follows: 1. DESCRIPTION OF PREMISES: The City hereby rents to the Tenant, and Tenant accepts the rental of space number as shown on Exhibit "A" (Premises) in Marinapark, 1770 West Balboa Boulevard, Newport Beach, California 92663. 2. TERM: (select one option as provided) o The tenancy created under this Agreement shall be on a month -to -month basis and shall commence on January 14, 2003. ❑ The tenancy created under this Agreement shall be for a period of twelve (12) months and shall commence on January 14, 2003, unless sooner terminated in accordance with the terms of this Agreement; ❑ The tenancy created under this Agreement shall be for a period of months (from one month to twelve months) and shall commence on January 14, 2003, unless sooner terminated in accordance with the terms of this Agreement. Rental agreements of varying duration including a 12 month or less and month -to -month have been offered. It is acknowledged that this agreement is chosen from such alternatives. The 12 month or less agreement is and remains a continuing option for the tenant upon expiration of the rental agreement under which the tenant had been IA M r residing until the said expiration of its term. 3. RENT: A. The monthly rent is $ per month. Tenant shall pay as rent to Owner without deduction or offset (without waiving Civil Code Section 1942) and on the first day of each month: (1) the monthly rent (as it may be adjusted as specified herein); (2) all utility charges billed to Tenants by Owner during each month as described herein (please note: utility rates for utilities billed to Tenant by Owner are set by the Public Utilities Commission and other governmental agencies. Therefore, charges for these utilities may be increased at any time in accordance with the rates established by these entities and no advance notice of increases in such rates will be given to Tenant by Owner); and, (3) guest charges (with applicable exceptions pursuant to the Mobilehome Residency Law), of $ per day for any guest who stays more than twenty consecutive days or more than thirty days in a calendar year. B. Owner may charge a reasonable fee for services relating to the maintenance of the land and premises upon which the Mobilehome is situated in the event the Tenants fail to maintain such land or premises in accordance with the Rules And Regulations of the Park after written notification to the Tenants and the failure of the Tenants to comply within fourteen (14) days. Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner, unless by order within the final judgment of a court of competent jurisdiction. Such charges shall be billed as further rent or as a permissible fee at owner's option, and added to the monthly rent billing payable on the first of the month following the date of completion of the work performed by the management. C. Tenants shall pay when due all real property taxes attributable to Tenant's mobilehome and all improvements made by Tenant to Tenant's mobilehome space and all municipal, county, stale, federal and other taxes, fees, assessments and levies (except Owner's income taxes and franchise taxes) levied upon the Premises, or Tenant or Owner, in connection with the use and occupancy of the Premises by Tenant. D. All rent payable hereunder shall be paid in advance on the first day of each month together with all other charges set forth on the monthly billing statement, in full without deduction, offset, reduction, discount, claim of collateral debt or other obligation owing. Specifically, Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner by reason of any independent, collateral or other legal obligation or dispute. The entitlement to rent shall not be deemed cross -collateralized with or against any other legal obligation or dispute for which Owner is claimed to be responsible to 3 Tenants. Payment shall be in the form of personal check, money order, or certified funds. Owner may however demand all prospective payments in cash, on not less than at least ten (10) days advance written notice. If the rent is not timely paid, demand notices to pay or quit may be served as soon as legally permitted. Rent and all other charges will be late if not paid in full by 5:00 p.m. on the 5th day of each month. Tenants must pay a late charge whenever rent or other charges are paid more than five (5) days after they are due in the amount of Thirty -Five dollars ($35.00) and a handling charge whenever a check is returned for any reason in the amount of Twenty-five dollars ($25.00). Payment will be made at the Park Office. E. Monies received for rent or other charges may be applied to the earliest outstanding sums ("first in, first out") and to utilities first at Owner's discretion, despite payer's instructions or endorsements purporting to restrict application of payment to a specific month or time period, or purporting to pay -in -full, satisfy or extinguish the amount or arrearage due or portion thereof. Partial payments of monthly rents or other charges may be rejected and constitute a breach of this agreement. However, tender of a part payment shall not be construed as an accord and satisfaction or release of any indebtedness if accepted, despite Tenant's purported instructions or restrictive endorsements to the contrary. Acceptance of a part payment is not a waiver of the balance billed or due. The period of time prior to the imposition of the late charge is not a grace period or option to pay late. 4. UTILITIES: A. Owner shall provide and separately bill to Tenant the following utilities: natural gas at the beginning rate of $22.00. Water usage is included in monthly rent. B. City shall not provide electricity or telephone service. Tenant shall make arrangements directly with the utilities furnishing these services and pay such utilities directly for them. Tenant shall contract with and pay directly for all other utilities it may require. The charge for gas shall be paid when rent is due, and is in addition to the obligation to pay rent. In the event Tenant fails to pay the charge for water or gas service within ten (10) days after the amount is due, Tenant shall pay to City a late charge of thirty-five dollars ($35.00). In the event City provides both master meter and submeter service of utilities to Tenant, the cost of the charges for each billing period shall be separately stated and shall contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place. The charge to Tenant for gas service shall be the amount of the charges paid by Tenant as of June 1, 2002 ($22.00 per month). The charges for gas service may be increased or decreased on or after the first day of October. Owner further reserves the right to charge for any other separately -billed or submetered utilities or for services actually rendered under Civil Code §798.32 9 (without reduction of rent or other charges) or Civil Code §798.41 (with reduction in rent equal to cost of initial separate billing amounts). Such amounts shall also be deemed to constitute further monthly rent. C. Owner shall not be liable for any loss or injury, and Tenant shall not be entitled to any abatement or reduction of rent by reason of Owner's failure to furnish any of the foregoing utilities when such failure is caused by accident, breakage, repairs, strikes, acts of third parties, labor disputes or by any other cause, similar or dissimilar beyond the reasonable control of Owner. (Please Note: The provisions of the paragraph below entitled "Indemnification" apply to this paragraph.) D. Tenant shall not connect, except through existing electrical or natural gas outlets or water pipes on the Premises any apparatus or device for the purpose of using electric current, natural gas, water or other utility. E. PLEASE READ CAREFULLY! FROM TIME TO TIME, THE SERVING PUBLIC UTILITY MAY SUFFER OR CAUSE POWER OUTAGES TO THE PREMISES. POWER OUTAGES ARE CAUSED BY MANY FACTORS: Storms, wind, heat, ice and high demand are the most common causes of widespread power outages; high power demand during heat waves and other times of unusually high demand may overburden electric cables, transformers, and other electrical equipment of Southern California Edison which then melt and fail. F. CAUTION: INTERMITTENT POWER INTERRUPTIONS ARE FOLLOWED BY RESTORATION OF ELECTRICITY WHICH MAY CAUSE SURGES IN ELECTRICAL POWER. POWER SURGES OFTEN AFFECT UNPROTECTED CONSUMER HOUSEHOLD APPLIANCES SUCH AS ELECTRONIC EQUIPMENT (COMPUTERS, STEREOS, RADIOS, ETC.). THE OWNER IS NOT RESPONSIBLE FOR THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES WHICH ARE CAUSED BY SOUTHERN CALIFORNIA EDISON. TENANT AGREES THAT OWNER IS FULLY AND UNCONDITIONALLY RELEASED AND DISCHARGED FROM ANY AND ALL LIABILITY WHICH ARISES AS A RESULT OF THE ACTS AND OMISSION OF THE UTILITY COMPANY. IT IS THE RESPONSIBILITY OF THE TENANT, EXCLUSIVELY, TO EXERCISE PRUDENT CARE FOR PROPERTY WHICH MAY BE AFFECTED BY DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES. ACCORDINGLY, TENANT HAS THE RESPONSIBILITY TO TAKE THE FOLLOWING PRECAUTIONS: 1. Tenant has the responsibility, always, TO USE SURGE PROTECTORS FOR THE PROTECTION OF TENANT'S PROPERTY, especially for computer equipment, stereo equipment, radios and other electrical 5 • appliances, devices and products which may outages, surges, or other irregularities in service. Unplug heat -producing items such a to prevent a fire when power is restored. be affected by disruptions, the provision of electrical s irons or portable heaters 2. Turn off and unplug all appliances and other electrical equipment, except for a single light bulb, which will be the signal your power has been restored. This helps ensure against circuit overloading, which could delay restoration of service. 3. In the event of an outage, do not use candles for lighting during an outage, since they create a fire hazard. Use flashlights or battery - powered lanterns instead. 4. Check the neighborhood to see if others have their power. If they do, the problem may be a "tripped" circuit breaker. G. IT IS RECOMMENDED THAT TENANT OBTAIN A HOMEOWNER'S INSURANCE POLICY TO COVER DAMAGE, LOSS AND LIABILITY ASSOCIATED WITH THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES AND OTHER RISKS. H. TENANTS ARE RESPONSIBLE FOR MAKING SURE THAT THEIR MOBILEHOMES AND ALL APPLIANCES AND EQUIPMENT ARE COMPATIBLE WITH THE ELECTRIC SERVICE NOW AVAILABLE, AND OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY IF THE AVAILABLE ELECTRICAL SUPPLY IS INCOMPATIBLE OR INSUFFICIENT. TENANTS ARE RESPONSIBLE TO MATCH THE RATING FOR THE MOBILEHOME TO THE SERVICE PROVIDED AT THE PEDESTAL AND NOT EXCEED IT. TENANT PROMISES THAT THE MOBILEHOME SHALL NOT EXCEED SUCH RATING. TENANT RELEASES OWNER FROM FAILURE TO COMPLY WITH THE AMPERAGE RATING OR EXCEEDING AVAILABLE SERVICE. THIS RELEASE IS NOT INTENDED TO RELEASE OWNER FROM OWNER'S WILLFUL MISCONDUCT OR ACTIVE NEGLIGENCE, BUT ONLY TO THE EXTENT ALLOWED BY LAW. TENANT SHALL FORBEAR FROM CONSUMING MORE AMPERAGE THAN THE EXISTING RATING FOR THE HOMESITE, TO AVOID DAMAGE TO OWNER'S PROPERTY AND TO THE PROPERTY OF OTHERS.. I. IF THE MOBILEHOME, APPLIANCES AND EQUIPMENT IN THE MOBILEHOME ARE NOT COMPATIBLE WITH THE ELECTRIC SERVICE AND CAPACITY NOW AVAILABLE OR EXCEEDS AVAILABLE SUPPLY AT THE PEDESTAL, TENANT SHALL "DE -AMP" (REDUCE THE RATING FOR) THE MOBILEHOME OR DISCONTINUE EXCESS DEMAND TO ENSURE I AGAINST ANY OVERLOADING OR CAUSING ANY DISRUPTION IN SERVICE. OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY TO TENANT IF THE AVAILABLE ELECTRICAL SUPPLY IS INSUFFICIENT OR INCOMPATIBLE. TENANT IS EXPRESSLY LIABLE FOR SERVICE DISRUPTIONS CAUSED BY EXCESSIVE DEMANDS ON THE ELECTRICAL SYSTEM WHICH SHALL FURTHER BE DEEMED A DEFAULT AND BREACH OF THE TENANTS' OBLIGATIONS UNDER THIS AGREEMENT. J. With respect to the provision of any services or facilities (including utilities) to Tenant, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to maintain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond owner's reasonable control, will excuse performance of these obligations for a time period equal to the delay. Tenants will remain responsible, without abatement or reduction, for the rent, utilities, and other charges to be paid per the terms of this Agreement. Owner will use reasonable efforts to reinstate or repair any services or facilities, including utilities, which have been interrupted as set forth hereinabove. If Tenants feel that Owner is not using reasonable efforts to reinstate such services or facilities, Tenants shall mediate the matter pursuant to the agreement or paragraph contained herein entitled "mediation and reference of disputes" if and only if Tenants have consented to that provision or desire to do so by mutual agreement (at the time the dispute arises) which provides for an alternate dispute resolution procedure of such dispute. Owner will not be liable under any circumstances for loss of or injury to property, however occurring through or in connection with or incidental to the failure to furnish any services of facilities (including utilities). K. RESIDENT COVENANTS NOT TO CONSUME MORE AMPERAGE THAN THE EXISTING RATING FOR THE SPACE, SO AS TO AVOID DAMAGE TO OUR PROPERTY AND TO THE PROPERTY OF OTHERS. We will provide utilities and or services as specified on page one of this agreement. Any separate charges for natural gas, electricity and water as applicable will be on a submetered basis (if not separately charged at the inception of this agreement, owner reserves the right and power to do so on proper notice, with or without electing to reduce rent as per CC §798.41). Civil Code Sections 798.41 or 798.32 allow for further separated billing of utilities with corresponding reduction of rents and such option is reserved. 5. CIVIL CODE NOTICE RE: SERVICES AND IMPROVEMENTS: Owner is responsible for providing and maintaining the existing services and existing physical improvements located in the common facilities in good 7 working order and condition and you agree that these responsibilities of the Park are as defined and limited by this Agreement. The services include the following: (i) Park Management Services and those items set forth on page one; (ii) Maintenance of the physical improvements of the park, including the streets, walkways, and, common areas. Management shall have a reasonable period of time, with respect to the physical improvements in the common facilities, to repair the sudden or unforeseeable breakdown or deterioration of these improvements and bring the improvements into good working order and condition after management knows or should have known of the breakdown or deterioration. The period of time to do so shall not exceed: as soon as possible where health and safety is affected, and thirty days except where exigent circumstances justify a delay; or, otherwise as specified by law. Such repairs or other appropriate action shall be accomplished as soon as possible in the event of any condition which may relate to health and safety. With respect to providing any services or facilities, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond the reasonable control of the Park, will excuse the Park's performance of these obligations for a time period equal to the delay. You will remain responsible, without abatement or reduction, for the rent, utilities, and other charges. A. Tenant agrees to notify management immediately of any breakdown, interruption, deterioration, or failure of any physical improvement, utility, amenity, facility or service so a response to promptly to fulfill maintenance responsibilities can be given. Management depends on notice to avoid and mitigate loss, damage, injury and other liability by Tenant's prompt notice when applicable. Tenant's good faith cooperation is important to enabling management to timely respond. B. Management's reasonable and conscientious efforts to maintain the Park, despite prudent effort, will probably not be perfect. From time to time, repairs and improvements may be needed, and Tenant may be inconvenienced. Management hopes Tenant will please cooperate and be patient. Management will reasonably endeavor to avoid material disruption and interference with quiet enjoyment, and to provide advance notice of substantial interruptions or interference which are planned or scheduled. Tenant agrees that a reasonable job in maintaining the Park fairly describes Tenant's expectation of management's duty to maintain the park. Management shall provide physical A improvements and services in the Park. However, services, facilities, amenities, landscaping and other improvements in the common areas may change based upon conservation interests and concerns; such changes may include drought resistant landscaping, and additions, alterations or deletions of services and facilities without reduction, discount of other offset from monthly rents. Such changes will not alter other commitments under this Agreement. Tenant will have the opportunity to consult if desired. An average and habitable residential environment is provided, but not a perfect one as with any residential neighborhood. Physical Improvements include existing common areas, office, streets, any recreational facilities, buildings and interior improvements, landscaping, meeting rooms, pools, related improvements and equipment. 6. USE OF PREMISES: A. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. Tenant agrees not to do anything that will constitute waste, nuisance, or unreasonable annoyance. Tenant agrees to do nothing to cause damage to the space or park. Tenant agrees not to permit any act or maintain or permit to be maintained any condition on your space or mobilehome which may cause an increase in the rate of insurance City pays or increase costs of maintenance and repair. No activity shall be permitted which requires the issuance of a business license or permit by any governmental agency, or which is inconsistent with community zoning and conditional use permits, which would increase the risk of harm to the management or to any other person or property, increase noise, dust, vibration, odors or fumes, smoke, or any other condition offensive to the senses or which causes reasonable complaint, breaches the covenant of quiet enjoyment or reduces property values; which would increase foot or vehicular traffic, results in deliveries and delivery trucks, require storage of any thing outside the mobilehome, require additional employees or other persons on the space, or affect parking. Permitted occupants are: (i) Tenant; An additional person if Tenant is living alone; (III) Family members and sub -lessees entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term "short term guest' shall mean any person who does not stay with Tenant for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may not occupy the Premises with the prior written consent of City. 4 B. Tenant agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 7. CONSIDERATION: City reserves the right to take the position that the past rents have been below market and constitute consideration to be applied against relocation costs upon closure of the Park. Tenants reserve the right to dispute City's position. B. RELEVANT STATUTES AND RULES: The Mobilehome Residency Law requires this Agreement to contain, among other things, the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Agreement by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 9. SALE OR ASSIGNMENT: Subject to the terms of this Section, Tenant may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Tenant under the Mobilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain on the Premises, or if Tenant proposes to assign Tenant's interest in this Lease to any person or persons who is (are) to reside on the Premises, Tenant and/or the proposed transferee must do the following: A. Tenant must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval, the transferee has executed a new rental agreement provided by City, and the transferee has expressly agreed to be bound thereto. C. Tenant agrees that occupancy of the Premises shall be limited as provided in this Agreement and Tenant agrees not to sublease or otherwise transfer any partial interest in this Agreement. 10 D. The requirements for any mobilehome proposed to be installed on the space is as follows: Management must first approve a mobilehome before it may be installed in the park. No mobilehome which in excess of twelve feet in height may be installed in the park. The proposed mobilehome must fit upon the space in the position specified by management. Management reserves the right to require the largest possible mobilehome commercially available to be sited upon the space. Established set backs must be honored, and may not be changed. Roof material must be non -glare composition or wood shake shingles for the mobilehome, awnings and any storage or other structures on the space. All installations and improvements must be approved by management before work is commenced to avoid damage to underground utilities. Management must further approve a written plan, to be submitted for approval as required by law, showing the proposed location with measurements and dimensions evidencing conformance to all setback requirements required by law including Title 25 of the Code of Administrative regulations and local ordinances. A tie down system in compliance with §1336.3 of Paragraph (a) of Title 25 is required. A vapor retarding ground cover of six (6) mil polyethylene or equivalent over the ground, under the home is required. Under floor areas shall be ventilated 1 sq. ft. for each 150 sq. ft. of under floor area. Air conditioners, compressors and necessary accessories will be considered and approval of same shall be at management's sole discretion. No changes shall be made to the grade of the lot that would cause any runoff to adjacent space or common areas. Lot must meet HCD requirements for drainage. Only mobile homes manufactured in 1976 or later are permitted. No new cabanas may be constructed. Eaves are permitted only if applicable set back requirements can be met. Hitches must be removed from home and stored under the mobilehome. Porch, steps and ramps must be built to Title 25 Requirements. No aluminum porches are permitted, and shall not encroach set back requirements or required parking space. Any required handrail, porch, or step railing shall be wood, painted to match home/trim color. No upgrading or tampering with the electrical /gas service shall be permitted even by a licensed contractor. No mobilehome is permitted which is rated at higher amperage than the pedestal. Additional requirements are set forth in the rules and regulations. E. Notwithstanding any other provision in this Agreement, Tenant shall have the right to assign its interest in this Agreement to a spouse, son and/or daughter provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Agreement. F. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Agreement, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit "B"). 11 10. SUBLEASING: A. The Premises shall constitute Tenant's residence, whether primary or secondary. Tenant agrees not to sublease or rent the mobilehome or otherwise transfer any interest in this Lease, except to the extent that the right to sublet or transfer is specifically provided by this Agreement. B. Management shall permit a tenant to rent his or her mobilehome that serves as the homeowner's residence or sublet his or her space under the circumstances described in and in compliance with the provisions of AB 1410 effective January 1, 2003. Only one mobilehome may be subleased by the tenant though the tenant may own or control one or more mobilehomes or homesites in the Park.. Any sub- lease created in compliance with AB 1410 shall not create a landlord/tenant relationship as between City and sublessee. It is specifically agreed and understood that Sublessee cannot become a resident by attempting or purporting to pay City such monies. Receipt, retention, acceptance or possession of any monies from the sublessee shall only be on behalf of the Tenant. As between City and sublessee there is no privity of estate or contract. Tenant hereby further agrees to defend and indemnify City, at Tenant's sole expense, from any claims, liabilities, or actions brought by sublessee against the Park or for any action brought against the City by any person arising out of conduct related to Sublessee's conduct within the Park. 11. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS: Tenant shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Tenants also agree that all landscaping on the Premises shall be limited to three feet (T) in height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Tenant fails to maintain the Premises in accordance with the provisions of this Agreement and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Tenant and Tenant's failure to comply within fourteen (14) days from the date of written notice. The written notice shall contain all information required by the Mobilehome Residency Law. 12. PHYSICAL IMPROVEMENTS AND SERVICES: Tenant shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, non -restricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. 13, CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL 12 2 v + IMPROVEMENTS AND SERVICES: City retains the right to amend or modify the Marinapark Rules and Regulations, the Terms of this Agreement, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the Terms of this Agreement, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment without corresponding reduction or adjustment in rent. 14. RIGHT OF ENTRY: Tenant, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the premises for the purpose of inspecting, improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Subject to the obligation of City to exercise ordinary care, any damage, loss or injury to Tenant's home, property of Tenant or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Tenant, and City shall not be responsible for reimbursing any cost or expense incurred by Tenant as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. The rights and duties set forth in this paragraph are intended to implement and shall be exercised consistent with the Mobilehome Residency Law. 15. NOTICE REQUIRED BY CIVIL CODE SECTION 2079.10(a): The California Department of Justice, county sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the California Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through this telephone service. 16. HOLD HARMLESS: 13 A. Tenant covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, Tenant's use and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Tenant, or Tenant's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Tenant, or Tenant's agents, employees, licensees and invitees and damage to their property or Tenant's property, except for any damage or injury of any kind arising out of the active negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. This section is intended to provide City with a release from liability to the fullest extent allowed by law and not exceeding the rights of the City to do so either under Civil Code section 1953 ([a] Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive any of the following rights shall be void as contrary to public policy: ... [5] His right to have the landlord exercise a duty of care to prevent personal injury or personal property damage where that duty is imposed by law") or section 1668 ("All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law"). City does not admit the applicability of section 1953 to a mobilehome space. B. Tenant, as a material part of the consideration under this Agreement, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the active negligence or willful misconduct of City's representatives, officers, agents or employees. Tenant agrees to indemnify and hold City, and its representatives, officers, agents and employees, harmless from and on account of any and all damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Tenant, and Tenant's family or guests. C. ANY CLAIM OR SUIT BETWEEN THE PARTIES FOR DAMAGES FOR PERSONAL OR BODILY INJURY OR PROPERTY DAMAGE AND OTHER APPLICABLE CLAIMS MUST BE COMMENCED IN ACCORDANCE WITH THE PROCEDURES FOR MAKING CLAIMS AGAINST GOVERNMENTAL ENTITIES PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA GOVERNMENT CODE. D. The value of the mobilehome may decline. Since a substantial portion of the present value of Tenant's mobilehome or coach is attributable to the rent charged by this Lease, the value of the premises and the proximity of the 14 premises to lower Newport Bay, you should investigate before purchasing. City's only obligation is to provide reasonable cost of relocation on closure of the park. Please investigate thoroughly before executing this agreement. 17. TERMINATION: A. Tenant may terminate this Agreement, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the mobilehome terminate their tenancy within that period and remove the mobilehome and all other improvements from the park B. City may terminate this Agreement for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. 18. ATTORNEYS' FEES: Should either City or Tenant be required to employ counsel to enforce the terms, conditions and covenants of this Agreement, the prevailing Party shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein pursuant to the Mobilehome Residency Law. 19. REMEDIES CUMULATIVE: The rights, powers, elections and remedies of the Parties contained in this Agreement shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of either Party's right to exercise any other. 20. NO WAIVER: A. No delay or omission of either Party to exercise any right or power arising from any omission, neglect or default of the other Party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Agreement. B. Acceptance of rent shall not reinstate or create a tenancy. Conditional acceptance of rent pending approval of tenancy shall not be deemed to create a tenancy or waive any requirements applicable to tenancy, purchaser 15 application or approval requirements or assignment or transfer requirements. Acceptance of rent after service of a notice to terminate tenancy as specified in Civil Code §798.57 shall not waive, affect or prejudice the notice. Nor shall routine service of other notices, Management communications, or other actions or omissions of the Management waive, prejudice, or affect the right to terminate tenancy, process a purchaser application and approve a tenant for tenancy, or otherwise affect the rights of Management. Possession of rent by the resident manager shall not be acceptance until actually approved by the park owner; accordingly, the receipt by or the tender of payment to the resident park manager shall be conditional and for custody purposes only until approved and accepted by the park owner. C. Owner may exercise any right under the terms of this agreement, or the Rules and Regulations as amended or modified, or any other right of the management under applicable law, and do so on or at any time subsequent to the date such right became effective hereunder, and do so retroactively to the date the right initially became effective or enforceable, by and upon demand for performance, including payment of any rent adjustments or other monies from or for the date such right first accrued through to and including the date of the demand and thereafter. Any delay, forbearance, whether intentional or inadvertent, in enforcing any right of the management for which subsequent demand is made shall not be construed as a waiver, estoppel, release or acquittal thereof, accord and satisfaction thereof, settlement in whole or part thereof, shall not constitute laches in respect thereto; and, shall not render any such right unenforceable or be a defense against enforcement of such rights from the time such right could first be exercised and thereafter. 21. COMPLIANCE WITH LAWS. A. Tenant covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City or any other governmental body or agency having lawful jurisdiction over the Premises and/or the Property. Tenants agree to abide and conform with all the terms and conditions of this Agreement, the Rules and Regulations, all rules, regulations, terms and provisions contained in any document referred to in this Agreement, and said rules, regulations terms, and provisions as may from time to time be amended modified or otherwise changed by Owner as permitted by the terms of this Agreement. B. Any violation of the Rules and Regulations shall be deemed a public nuisance. Tenants agree that a breach of this Agreement or any of the Rules and Regulations cannot reasonably or adequately be compensated in damages in an action of law, and therefore, Owner shall be entitled to injunctive relies including but not limited to restraining Tenants (or family members, guests or other invitees) from continuing to breach any such rules or regulations term or 16 condition or to allow a condition violative of a rule or regulation term or condition to exist or continue to exist without proving irreparable harm or lack of adequate legal remedy. 22. MOBILEHOME RESIDENCY LAW / ZONING AND USE PERMIT INFORMATION: Pursuant to Civil Code section 798.27 ("(a) The management shall give written notice to all homeowners and prospective homeowners concerning the following matters: (1) the nature of the zoning or use permit under which the mobilehome park operates. If the mobilehome park is operating pursuant to a permit subject to a renewal or expiration date, the relevant information and dates shall be included in the notice....'), Tenant is hereby notified as follows: A. Tenant acknowledges having received and read a copy of the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Marinapark Rules and Regulations (Exhibit'B"). B. The Property is currently zoned "Planned Community." There are no conditional use permits or other permits required to operate the Property as a mobilehome park. City owns the Property, but its use may be limited to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. 23. ENTIRE AGREEMENT: This Agreement and the documents referred to herein constitute the entire agreement between Tenant and Owner pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral. Paragraph titles are for identification and reference only and are not part of this Agreement and shall not be used to interpret this Agreement Each term and provision of this agreement to be performed by the Tenant or which is a duty of the Tenant shall be deemed to be both a condition and a covenant. Additionally, a breach of any each such term and provision shall also be deemed to constitute a rule and regulation for purposes of Civil Code section 798.56 and may constitute grounds for the termination of tenancy as a violation of a rule and regulation. 24. NOTICES: All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: 17 25. 26. A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 With a copy to: City Clerk's Office City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have furnished to Tenant; and To Tenant: By delivering a copy to the Tenant personally; or Tenant be absent from the mobilehome, by leaving a copy with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobile home and also sending a copy through the mail addressed to Tenant. Since a substantial portion of the present value of Lessee's mobilehome or coach Is attributable to the value of the premises and the and the proximity of the premises to lower Newport Bay, Following notice by City of any amendment, all other provisions of the Lease shall remain in full force and effect in their original form. TIME OF ESSENCE: Time is of the essence in this Agreement and each and every provision hereof. EMINENT DOMAIN: If the entire Park, or a portion thereof so that, in City's sole opinion, the balance remaining is not suitable for a mobilehome park, is taken under the power of eminent domain, or is sold to any authority having the power of eminent domain, either under threat of condemnation or while condemnation 1U. proceedings are pending, then this Agreement shall automatically terminate on proper notice as of the date the condemning authority takes possession, precondemns, notices its intent to condemn or files a condemnation action or other action which relates thereto. 27. INSURANCE: Owner does not carry public liability or property damage insurance to compensate Tenants, Residents, guests or any other person from any loss, damage or injury except those resulting from situations where Owner would be legally liable for such loss, damage or injury. If Tenants desire such or similar insurance coverage, it should be obtained by Tenants, insuring against loss and casualty by fire, earthquake, flooding, theft, other liability and casualty which relates to the mobilehome, other improvements and contents to full insurable value, personal liability and such other insurance as is necessary and appropriate. Tenants are advised to obtain a homeowner's policy in accordance with the guidelines and requirements specified by a lender, and if no lender, then in such sums and for such coverage as would be so required if so financed. 28. PARTIAL INVALIDITY: Certain terms and provisions of this Agreement and other documents referred to in this Agreement refer to restate or summarize provisions of the Mobilehome Residency Law and other applicable laws. In every instance it is intended that these references, restatements and summaries will accurately reflect the law and correctly set forth Tenants' and Owner's rights liabilities duties and obligations to one another and to other persons. The same is true of all of the other provisions of this Agreement and the other documents used by the Park. If any of the provisions of this Agreement or the other documents used by the Park fail in any way to meet the above criteria then it is unintentional and all such provisions shall be deemed to be automatically revised to correctly reflect the Owner's and Tenants' rights, liabilities, duties and obligations under the provisions of the Mobilehome Residency Law and all other applicable laws. Tenants agree to promptly notify Owner in writing of any instance where Tenants believe that any of the provisions of this Agreement or the other documents used by the Park fail to meet the above criteria. If any term or provision of this Agreement or any document referred to in this Agreement or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the remainder of this Agreement or the other document or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Agreement or the other document shall be valid and be enforced to the fullest extent permitted by law. 19 29. ENTIRE AGREEMENT: A. The resident manager, other personnel, mobilehome dealers, the sales person and seller from whom the mobilehome was purchased by Tenants and other persons are not authorized to make any representations or agreements with Tenants respecting the Community unless those agreements and representations are contained in this Agreement and the other documents and posted signs referred to in it. Therefore, Tenants agree that this Agreement and the other documents and posted signs referred to in it are the entire agreement between Tenants and Owner regarding the subjects covered by this Agreement, other documents and signs. This Agreement, the rules and regulations and the purchase agreement with Owner constitute the exclusive statement of the agreement and supersedes all prior and contemporaneous agreements, representations and understandings. B. Each party has relied on his own examination of this Agreement and counsel of his own advisers, and the warranties, representations and covenants in the Agreement itself. Failure or refusal of either party to inspect the premises or improvement, to read the Agreement or other documents or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention or claim that might have been based on such reading, inspection or advice. Additionally, in any interpretation of this Agreement it shall be deemed that this Agreement and its exhibits were written by both parties. C. It is further agreed by and between the parties that the legal relationship that exists pursuant to this Agreement is a rental agreement, and that there are not other legal rights or relationships inferred. Tenants warrant and agree that they have no other rights, title or interest in the property upon which the Park is located or in the above described space other than that which is specifically set forth in this document. 30. DRAINAGE AND GRADING: A. The existing drainage pattern and grading of the space may not be changed without Management's consent. Tenant is responsible for maintaining the space so that water does not accumulate or stand under the mobilehome or on the Space. Water on the space is required to drain off the space in a fashion as to avoid runoff onto another mobilehome space. Tenant shall ensure the skirting attached to the mobilehome is not extended into the grade which would cause moisture or water to accumulate under the mobilehome. All watering systems shall be installed, maintained and adjusted as necessary to avoid water run-off and standing water on the premises. Any berms on the space shall be installed and maintained to avoid the accumulation of water on the space or under the mobilehome. Any masonry skirting must contain sufficient EN openings as to prevent accumulation of water on the space or under the mobilehome. B. Homeowner warrants to that the mobilehome and areas under the mobilehome and homesite are free of and from mold. Homeowner is also responsible for mold cleanup. The mobilehome should be inspected by a competent home inspection contractor periodically. It is imperative to treat and remove all molds as if potentially harmful. Among the conditions to be checked should be presence of any mold in or about the mobilehome. The following are sources of indoor moisture that may cause problems: flooding, backed -up sewers, leaky roofs, humidifiers, mud or ice dams, damp crawl spaces, constant plumbing leaks, house plants -watering can generate large amounts of moisture, steam from cooking, shower/bath steam and leaks, wet clothes on indoor drying lines, clothes dryers vented indoors, combustion appliances (e.g. stoves) not exhausted to the outdoors. Homeowner is responsible for avoiding any such conditions and for remediation if same should occur. 31. NO THIRD -PARTY RIGHTS: Tenant is not a third -party beneficiary of any other agreement between Owner and anyone. The terms and provisions may differ between rental agreements and rules and regulations in force in the park, and no one may rely on the enforcement of any other's rental agreement or rules and regulations. There are no third party beneficiaries to this agreement. 32. NO RECORDING: No recording of this Agreement on any memorandum of this Agreement may be made without the prior written consent of Owner, which consent may be withheld in Owner's sole discretion. 33. LOT LINES: "Space" includes the area as defined by the perimeter of the mobilehome and its horizontal projections of its accessory structures. This understanding is based on the public ownership of the property on which the expectations of occupation which Tenant may use and enjoy. Therefore, Tenant may not rely on any markers to define the area of use and enjoyment to be expected due to the rights of the public entitled to entry within the park. 34. ALTERATIONS AND ADDITIONS: Tenant agrees not to make any alterations, improvements, additions or utility installations to, on or about the homesite or mobilehome, nor install, remove or change any existing improvements, or modify the drainage or landscaping nor 21 M make any contract for such work without Owner's prior written consent and approval. Tenant is responsible for all conditions under the mobilehome including grading, compaction, subsidence, drainage, moisture, and ventilation. In giving or withholding consent to any such work, Owner may, at its option, consider and base consent or refusal of consent entirely upon aesthetic considerations and the compatibility of such changes to the Community. If Tenant fails to obtain prior written consent and approval, all such alterations, improvements, additions or utility installations shall be promptly removed at Tenant's sole expense, upon Owner request. 35. OPPORTUNITY TO REMEDY: If, at any time, Tenant believes owner has not fulfilled any legal obligations, Tenant agrees to immediately give owner written notice specifying what is believed owner has failed to do and indicating what Tenant believes owner must do in order to fulfill these obligations. This notice shall be as detailed as possible so that owner may fully understand Tenant's concerns. Tenant agrees that owner will have at least ninety (90) days, or such longer period as is reasonably necessary, after receipt of Tenant's notice to remedy the problem(s) Tenant has identified. If Tenant fails to promptly give owner this written notice as soon as Tenant is aware of any problem(s), or Tenant fails to give owner a reasonable opportunity to remedy the problem(s), owner will have no liability to Tenant for any expense, cost, damage or injury which Tenant may sustain as a result of the problem(s). If owner fails to remedy the problem(s) within a reasonable time after receipt of written notice, the problem(s) will be subject to mediation if such an agreement has been reached between the Parties. 36. ENVIRONMENTAL PROTECTION: A. Proper "hazardous substances" and waste disposal is required of all Tenants. Typical hazardous substances include automobile, boat and motorcycle batteries, household batteries, cleaning fluids and solvents, gasoline, paint and other thinners, oils, brake fluids, transmission fluids, radiator fluids and coolants and petroleum products. No Tenants may keep or store, in any place including within or about the mobilehome, homesite, storage shed or elsewhere in the Community, any hazardous substances in excess of the quantities required for typical single family household use. Additionally, Tenants may not cause any environmental hazard, including any exposure to, contact with, spill or deposit of any hazardous substance or waste. Tenants are prohibited from violating any law relating to environmental protection, hazardous substances or waste. This includes, but is not limited to, for example, changing or discarding auto batteries, oil, brake and radiator fluids, automatic transmission fluid, air conditioning gases, or grease in any motor vehicle or machine. Tenants may not cause or allow hazardous substances or waste to be disposed of anywhere in the Community, including, but not limited to, trash cans, trash bins, the �� sewage disposal system, or any other trash or disposal area in the Community. Such substances must be physically removed from the Community and disposed of elsewhere in compliance with law. In the event of any spill or deposit of hazardous substances in the Community, Tenants are required by law to immediately notify management. Management reserves the right to inspect the homesite for hazardous substances. B. In addition to other remedies allowed by law, Tenants will indemnify and hold the Owner harmless for any such environmentally hazardous act or omission prohibited by this rule or law, including any compensatory damages, statutory damages, punitive damages, expense and attorney's fees and costs sustained by the Community. Tenants will also be required to reimburse the Community for any actual attorney's fees, litigation expenses, and costs incurred in defending any action against the Community as a result of any environmentally hazardous act or omission of Tenants, Residents, Guests, Contractors and invitees. For purposes of this rule, "hazardous substances" includes without limitation: (1) Those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in federal law including C.E.R.C.L.A., R.C.R.A., T.S.C.A., H.M.T.A., or under any other Environmental Law; (11) Those substances listed in the United States Department of Transportation (D.O.T.) Table [49 C.F.R. 172.101], or by the Environmental Protection Agency (E.P.A.), or any successor agency, as hazardous substances [40 C.F.R. Part 302]; (III) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (IV) Any material, waste, or substance that is: (V) a petroleum or refined petroleum product, (i) asbestos, (ii) polychlorinated biphenyl, (III) designated as a hazardous substance pursuant to 33 U.S.C. § 1321 or listed pursuant to 33 U.S.C. § 1317, (VI) a flammable explosive, or (VII) a radioactive material. 37. COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute but one and the same instrument. 38. NON -RESPONSIBILITY OF PARK: Owner is not responsible to inspect and approve any work done by Tenant or for Tenant by others, including, but not limited to, the installation of the mobilehome, driveway, walkways, fences or any other equipment or improvements of any type. To the extent that Owner may inspect or approve something, it is for Owner's own purpose only and Tenant is not entitled to rely 23 on that inspection or approval to ensure that the item has been installed or constructed correctly or that the work has otherwise been done as required. Instead, Tenant is responsible for all required inspections and approvals and Tenant agrees to indemnify and hold Owner harmless from any work which is improperly done. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day and year first above written. Tenant M 0 CITY OF NEWPORT BEACH a municipal corporation. Homer Bludau, City Manager APPROVED AS TO FORM: Robin L. Clauson, Assistant City Attorney F:\users\cat\shared\cp•da\Projects\Ma ri n aPa rk\010703.doc 24 4 0 PAYMENT AUTHORIZATION Vendor: Morton and Gladys Kern Address: Marinapark 1770 W. Balboa Blvd, Space 2E Newport Beach, CA 92663 i CITY OF �EwPORr NEWPORT� @� z BEACH SPECIAL Date: 11/26/2002 Dept. City Manager Amount: $8,900.00 Item of Expenditure Invoice No. I Budget No. Amount Purchase of Mr. & Mrs. Kern's coach 0110-8080 ; $8,900.00 located at space 23,in-Marinapark I FreighC Tax! TOTAL! $8,900.00 Comments/Special Instructions: Please route check to Shirley Oborny for Prepared by Shirley Oborny r Department Approw Fiscal Svcs Manager Admin Svc Director I pickup on Monday, December 2, 2002. Thank vou. Date: November 26, 2002 Date: Date: ��'o S'�— a • Page 1 of Oborny, Shirley From: Kiff, Dave Sent: Monday, November 25, 2002 3:33 PM To: Oborny, Shirley Subject: RE: Marinapark Coach Purchase Yes -- and use 0110-8080 for the funds. Thanks! -----Original Message ----- From: Oborny, Shirley Sent: Friday, November 22, 2002 4:03 PM To: Kiff, Dave Subject: FW: Marinapark Coach Purchase Can I call Mr. Mecham and find out who the check should be made out to? -----Original Message ----- From: Bludau, Homer Sent: Friday, November 22, 2002 8:08 AM To: Kiff, Dave; Clauson, Robin Cc: Oborny, Shirley Subject: RE: Marinapark Coach Purchase Let's do it. -----Original Message ----- From: Kiff, Dave Sent: Thursday, November 21, 2002 2:52 PM To: Clauson, Robin; Bludau, Homer Cc: Oborny, Shirley Subject: Marinapark Coach Purchase Mort Kern and Bill Mecham have negotiated a price of $8,900 for a well -conditioned coach at Space 2E in Marinapark. With your consent, I'll ask Shirley to process the check and get this one in our hands. Dave 11/25/2002 • • CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 (949) 644-3131 November 19, 2002 George H. Kaelin, III ENDEMAN, LINCOLN TUREK & HEATER LLP 600 "B" Street Suite 2400 San Diego, CA 92101-4582 RE: Marinapark Mobilehome Dear Mr. Kaelin: Enclosed, please find a copy of a proposed Rental Agreement for the City's Marinapark property. I have made some modifications to the draft in response to your September 19, 2002, letter as will be described below. To begin, let me explain that the reason the rent was left blank is that this Is draft agreement and the space rent is different for different sections of the property. The rents for the spaces are as provided in the Notice of Rent Increase that was delivered May 31, 2002. The new rent became effective September 1, 2002. 1 understand that the tenants are paying the new rent at this time pursuant to the notice. With regard to your request to remove recitals C and D in the Agreement we decline to do so. I do not agree that they are factual misstatements and are certainly legally relevant as notice to the tenants that there is the potential the property will be deemed tidelands. However, we have agreed to modify the recitals. We have also agreed to delete the primary residence requirement. I have clarified in paragraph 10 that the continued restriction on renting or subletting remains, with one new exception to subletting provided for in AB 1410 which will become effective January 1, 2003 Regarding the Consideration paragraph, the City disputes that various provisions of the leases were against public policy. We also dispute the 1985 or 2000 lease were "illegal documents". Nevertheless, we have agreed to use your suggested wording to reserve our rights. Next, with regards to the Hold Harmless paragraph, we decline to delete the provisions of paragraph (a) and (b). We have agreed to delete the provisions of sub -paragraphs (c) and (d) and have included a new paragraph (c) that recognizes the requirements of the Government Claims Act with regards to the filing of any claims for money damages against the City and (d) that warns of the potential for lost value of the mobilehome. 3300 Newport Boulevard, Newport Beach George H. Kaelin, III November 19, 2002 Page 2 We have made the modifications you suggested to the Attorneys Fees paragraph. The paragraph regarding zoning information has not been deleted. The Mobilehome Residency Law requires such disclosure and there is no prohibition from making such disclosure in the lease itself. Therefore, the paragraph has been modified to detail that requirement. We have chosen not to delete the eminent domain paragraph. City property and public property is subject to eminent domain. In fact the Federal Government has in the past condemned City tidelands property. Finally, there is no requirement for the City to add a provision to the lease that would require the City to keep the residents informed as decisions are made regarding the future closing date. Generally, the City has provided information well in advance to the tenants. We have in the past, provided public meetings specifically for the tenants to attend at the City Hall to provide them information. There has no been effort to hide any information from the tenants with regards to the intent of the City to close the park. After you have reviewed this letter and the Agreement please call me so we can discuss. Very truly yours, —Xlt7� — Robin L. Clauson, Assistant City Attorney RC:cp Enc. cc: Dave Kiff, Assistant City Manager (w/enc.)' Terry Dowdall, Esq. (w/enc.) FAusers\cat\shared\Projects\MadnaParkVetter\GK111 a.doc w 0 MARINAPARK 1770 WEST BALEQA BOULEVARD NEWPORT BEACH, CALIFORNIA 92663 RENTAL AGREEMENT This Rental agreement ("A reement") is entered into this day of 200 by and between the CITY OF NEWP�ORT BEACH, a municipal corp�on an a er i (C or Owner) and (Tenant), and is made with reference o e recital an ac now a §men s, a materiality an existence o which is stipulated and agreed by the Parties: A. City is the owner, and is in possession and coVol, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15 Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Property). B. The City Council actively solicited proposals for non-residential uses at Marinapark and as of February 2002, has deemed a non-residential use of Marinapark the most appropriate land use for the property. The City is currently investigating an alternative use of the property and a decision to change the use of the propperty,may. be made at any time. Notification of anydecision to change the use of the property will be given in accordance with the Mobilehome Residency Law, Section 798.56 (g) and other applicable law.. C. California State Lands Commission staff has asserted that a portion of the Property consists of tidelands, Cityy and Tenant have, in the past, claimed that all. or substantially all, of --the Property leased, for m1lehome residency purposes is uplands owned by City, and City and Tenant have discussed vanous bases to support that claim. D. The State Lands Commission staff has asserted that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, City and Tenant may dispute that claim. E. The terms and conditions of this Agreement are in compliance, and consistent, with the provisions of the Mobilehome Residency Law (Section 798 et. seq. of the California Civil Code) and shall not be otherwise construed. F. You acknowledge having received, read and understood a copy of: The attached Mobilehome Residency Law and Park Rules and Regulations each of which is incorporated by this reference. G. The terms of residency shall be solely governed by law and by the terms of this agreement. No salesperson, broker, financial institution or any person not specifically employed by owner has the authority or right to make statements on behalf of City. The resident managers -have no authority to modify this agreement. This is the exclusive agreement between City and Tenant. H. A new.Tenant warrants that Tenant has read, reviewed and executed a written disclosure statement provided by the management at least three (3) days prior to the execution of this rental agreement. I. EQUAL HOUSING OPPORTUNITY: WE DO BUSINESS IN ACCORDANCE WITH THE STATE AND FEDERAL FAIR HOUSING LAWS. IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, HANDICAP OR DISABILITY FAMILIAL STATUS SOURCE OF INCOME, NATIONAL ORIGIN OR ANCESTRY OR FOR ARBITRAi IY' REASONS UNDER STATE LAW. NOW, THEREFORE, the Parties do hereby mutually agree as follows: DESCRIPTION OF PREMISES: The City hereby rents to the Tenant, and Tenant accepts the rental of. space number as shown on Exhibit A' (Premises) in Marinapark, 1770 West Balboa Boulevard, New—r Beach, California 92663. 2. TERM: (select one option as provided) ❑ The tenancy created under this Agreement shall be on a month -to -month basis and shall commence on: _ 200_ ❑ The tenancy created under this Agreement shall be for a period of twelve (12) months and shall commence on: , 200 , unless sooner terminated in accordance with the terms of this greement; ❑ The tenancy created under this Agreement shall be for a period of months (from one month to twelve months) and shall commence on: 200_, unless sooner terminated in accordance with the terms of is greement. Rental agreements of varying. duration including a 12 month or less and month -to -month have been offered. It is acknowledged that this agreement is chosen from such alternatives. The 12 month or less agreement is and remains a continuing option for the tenant upon expiration of the rental agreement under which the tenant had been residing until the said expiration of -its term. 3. RENT: A. The monthly rent is $ Per month. Tenant shall pay as rent to Owner without deduction or offset (wit out waroing ivi Code Section 1942) and on the first day of each month: (1) the monthly rent (as it may be adjusted _as specified herein); (2) all utility charges billed to tenants by Owner during each month as described herein (please note: utility rates for utilities billed to Tenant by Owner are set by the Public Utilities Commission and other governmental agencies. Therefore, charges for these utilities may be increased at any time in accordance with the rates established by these entities and no advance notice of increases in such rates will be given to Tenant b Owner); and (3) guest charges (with applicable exceptions pursuant to the Mobilehome Residyency Law), of $ per day for any guest who stays more than twenty consecutive days or more than thiamin a calendar year. B. Monthly rent may be increased at any time upon 90 days advance written notice. C. Owner may chargge a reasonable fee for services relating to the maintenance of the land and premises upon char the Mobilehome is situated in the event the Tenants fail to maintain such land or premises in accordance with the Rules And Regulations of the Park after written notification to the Tenants and the failure of the Tenants to comply within fourteen (14) days. Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner, unless by order within the final judgment of a court of competent jurisdiction. Such charges shall be billed as further rent or as a permissible fee at owner's option, and added to the monthly rent billing payable on the first of the month following the date of completion of the work performed by the management. D. Tenants shall pay when due all real property taxes attributable to Tenant's mobilehome and all improvements made by Tenant to Tenants mobilehome space and all municipal, county, stale federal and other taxes, fees, assessments and levies (except Owner's income taxes and franchise taxes) levied upon the Premises, or Tenant or Owner, in connection with the use and occupancy of the Premises by Tenant. E. All rent pa able hereunder shall be paid in advance on the first day of each month together with all other charges set forth on the monthly billing statement, in full without deduction, offset, reduction, discount, claim of collateral debt or other obligation owing. Specifically, Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner by reason of any independent, collateral or other legal obligation or dispute. The entitlement to rent shall not be deemed cross -collateralized with or agairist any other legal obligation or dispute for which Owner is claimed to be responsible to Tenants. Payment shall be in the form of personal check, money order, or certified funds. Owner may however demand all prospective payments in cash, on not less than at least ten (10) days advance written notice. If the rent is not timely paid, demand notices to pay or quit may be served as soon as legally permitted. Rent and all other charges will be late if not paid in full by 5:00 p.m. on the 5th day of each month. Tenants must pa a late charge whenever rent or other char es are paid more than five (5) days after they are due in the amount of Thirty, -Five dollars ($,5.00) and a handling charge whenever a check is returned for any reason in the amount of Twenty-five dollars ($25.00). Payment will be made at the Park Office. F. Monies received for rent or other charges may be applied to -the earliest outstanding sums ("first in, first out') and to utilities first at Owner's discretion, despite payor's instructions or 2 .,.. 4-,. omon#c nnrnorting to restrict applicat oil purporting Eo pay -in -full, satisty or exanguwr, u- a„ Partial payments of month )y rents or other charges m; this agreement. However, tender of aupart ayment restrictive endo release toythe contrary A ceptance period obilledoptior to pey latepenod of time prior to the in 4, UTILITIES: A. beginning mate of $22.00 Water usage Is included in B. City shall not provide electricity P cerrVicesoand pay . Im and nr or rates t to specific month or time penoo, or t or arrearage due or portion thereof. is rejected and constitute a breach of I not be construed as an accord and :spite Tenant's purported instructions or a part payment is not a waiver of the ition of the late charge is not a grace the following utilities: natural gas at the monthly rent. e. Tenant shall make arrangements directly such utilities directly for them. Tenant shall mayy require. The charge for gas shall be lion to pay rent. In the event Tenant falls to i'l rievs after the amount is due, Tenant shall to une or submefered utilities or Tor serwgeb a�..a„ of rent or other charges) or Civil Code 798.41 (with reduction In rent separate billing-arrounts). Such amounts s arrlllyl also be deemed to constitute further monthly rent. C. o Wreduction of rent bylreaaoh of Owner sgufailure toefurnish anynooft he entitled egoing util'Itles pwhen or byfany, other cause, slmtlar or dissimltaa beyond the reasonable control of Owner.l(Please Notte I to this paragraph.) The provisions of the paragraph below entitled "Indemnification" app y D. Tenant shall not connect,aratustor ro is forttha purposelofrus rig elleCtrie current, water pipes on the Premises any app water or other utility. E. SUFFER OR CAUSE POWER OUTAGES TO THE PREMISES POWERIOUTAGES ARE CAUSED BY MANY FACTORS: Storms, wind, night powerademand dunrip heat waves and common causes of widespread power outages; other times of unusually demand o may Edison Which electric hen melt and �allrans ormers, and other F. 1, Tenant has the responsibility, alwayys TO U5t JLIM-1a- PqROTECTION OF TENANT'S PROPERTY, especially, for computer equipment, stereo be affect d bt radios and outageses rgesaoplotherlr'regularlttes in the pdrovlsion lof electrical service. Uynplug heat -producing items such as irons or portable heaters to prevent a fire 3 .p when power 3rrestored. •q p Turn which will be the appliances ignal coinpower haelectrical h beenarestoredeThis helpsf ens re aganst circuit overloading, which couidydelay restoration of service. 3. create a firethazard.Usegflashlights or battery powered lanterns instead utage, since they 4. Check the neighborhood to see if others have their power._ If they do, the problem may be a "tripped" circuit breaker. G. COVER DAMAGE RECOMMENDED AND LIABILITYOASSOCIATED WIDTH THE DISRUPT ONS, OUTAGES SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES AND OTHER RISKS. H. 2. J. With [no the provision or stoppage tain labor or ations or conti ns for a time r luction, for the reaso mediate the matter p and reference of disl so by mutual agreen resolution procedure or injury to property, furnish any services on a sui reserves per CC utilities % or rea; orders, d ownei to the ( or otner iar substitutes d or other n qOT TO CONSUME MORE SO AS TO AVOID DAMAGE Ne will provide utilities and or :e charges for natural gas, ele< not separately charged at the to do so on proper notice wit le Sections 798.41 or 799.32 :duction of rents and such optic IM any i or !as) to Tenant, gutes, acts of pm, governm disaster or case excuse perform an 4MPERAGE THAN THE EXISTING TO OUR PROPERTY AND TO THE services as specified on page one of tricity and water as applicable will be inception of this agreement, owner i or without electing to reduce rent as allow for further separated billing of n is reserved. v 5. CIVIL CODE NOTICE RE: SERVICES AND IMPROVEMENTS: Owner is responsible for providing and maintaining the, existing services and existing physical improvements located inthe common facilities in good working order and condition and you agree that these responsibilities of the Park are as defined and limited by this Agreement. The services include the following: (1) Park Management Services and those items set forth on page one; (ii) Maintenance of the physical improvements of the park, including the streets, walkways, and, common areas. Management shall have a reasonable period of time, with respect to the physical improvements in the common facilities to repair the sudden or unforeseeable breakdown or deterioration of these improvements and bring the improvements into good working order and condition after management knows or should have known of the breakdown or deterioration. The period of time to do so shall not exceed: as soon as possible where health and safety is affected, and thirty days except where exigent circumstances justify a delay; or, otherwise as specified by law. Such repairs or other appropriate action shall be accomplished as soon as possible in the event of any condition which may relate to health and safetv. With respect to providing any services or facilities,__ any prevention, delay, ,or, stoppage due, to A or am, or i ley, controls, judicial orders, fire/flood or other causes beyond the reasonable control of ins for a time period equal to the delay. You rent, utilities, and other charges. -uption, deterioration, or a response to promptly on notice to avoid and /hen applicable. nely respond. Mananamant's reasonable and conscientious efforts to maintain the Park, RC to U interests and concerns; sucn cnanges may mciuee arougrn iebibiam lCmUouni alterations or deletions of services and facilities without reduction, discount monthly rents. Such changes will not alter other commitments under this 1nr have the opportunity to consult if desired. An average and habitable resides provided, but not a perfect one as with any residential neighborhood. Phy include existing common areas, office, streets, any recreational facilities, bi improvements, landscaping, meeting rooms, pools, related improvements and 6. USE OF PREMISES: A. shall be c0 dut shall on the Premises. r Tenant algreesonot to do no that N nuisance, or unreasonable annoyance. Tenant agrees to do nothing tocal space or park. Tenant agrees not to permit any act or maintain or permit to condition on your space or mobilehome which may cause an increase in the re pays or increase costs of maintenance and repair. No activity shall be perm the issuance of a business license or permit by any governmental agency, or v with community zoning and conditional use permits, which would increase the management or, to any other person or property, increase noise, dust, vibrati, smoke, or any other condition offensive to the senses or which causes ree breaches the covenant of quiet enjoyment or reduces property values- which or vehicular traffic, results m'delivenes and delivery trucks, require storage c the mobilehome, require additional employees or other persons on the space Permitted occupants are: E prudent effort e needed, and and be patient. :rice with ,quiet any or e or to �v 7 8. -03 (1) Tenant; (ii) An additional person if Tenant is living alone; (III) Family members and sub -lessee's entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term "short term guest". shall mean any person who does not stay with Tenant for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may not occupy the Premises with the prior written, consent of City. B. Tenant agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. City reserves the right to take the position that the past rents have been below market and constitute consideration to be applied against relocation costs upon closure of the Park. RELEVANT STATUTES AND RULES: The Mobilehome Residency Law requires this Agreement to contain, among other things the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. the Rules and Regulations of Marinapark are attached as Exhibit "B the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Agreement by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C;" respectively, when effective. SALE OR ASSIGNMENT: Subject to the terms of this Section, Tenant may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Tenant under the Mobilehome Residency Law and any other applicable statutes. if the mobilehome that is the subject of the sale or transfer is to remain on the Premises, or if Tenant proposes to assign Tenant's interest in this Lease to any person or persons who is (are) to reside on the Premises, Tenant and/or the proposed transferee must do the following: A.' Tenant must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval, the transferee has executed a new rental agreement provided by City, and the transferee has expressly agreed to be bound thereto. C. Tenant agrees that occupancy of the Premises shall be limited as provided in this Agreement and Tenant agrees not to sublease or otherwise transfer any partial interest in this Agreement. D. The requirements for any mobilehome proposed to be installed" on the space is as follows: Management must first approve a mobilehome before it may be installed in the park. No mobilehome which in excess of twelve feet in height may be installed in the park. The proposed mobilehome must fit upon the space in the position specified by management. Management reserves the right to require the largest possible mobilehome commercially available to be sited upon the space Established set backs must be honored, and may not be changed. Roof material must be non -glare composition or wood shake shingles, for the mobilehome, awnings and any storage or other structures on the space. All installations and improvements must be approved by management before work is commenced to avoid damage to underground utilities. Management must further approve a written plan, to be submitted for approval as required by law, showing the proposed location with measurements and dimensions evidencing conformance to all setback requirements required by law including Title 25 of the Code of Administrative regulations and local ordinances. A tie down system in compliance with §1336.3 of Paragraph (a) of Title 25 is required. A vapor retarding ground cover of six (6) mii ppolyethylene or equivalent over the ground, under the home is required. Under floor areas shall be ventilated 1 sq. ft. for each 150 sq. ft. of under floor area. Air conditioners, compressors and necessary accessories will. be considered and approval of same shall be at management's sole discretion. No changes shall be made to the li+ grade of the lot that would drainage. Only mob(lethomescmanufactu• common 7or later acre must meet HCD requirements for requirements aeen beamet. cHt chest must besremovedr rom home iandpstored underbthe porchesoere permitted tend shall ramps must be built oencocbstecto requie25 emenseorirequiretd parking aluminum Any required handrail, porch, or stepp railingg shall be wood, painted to match home/tryyim color. ed contracltor. No mobil homehshpe mitterd whchsiseated at higher amperage thanbthe pedestal. Additional requirements are set forth in the rules and regulations. E. i�ter2l9tsirai thisgAgreementloos spousehsonfiend/or daughtertprovided �howeve' the assign emises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions ofthisAgreement. F. Citargesllend rotherwiseucomplysfwithfthe termseandhcondtions ofathisil�Agreement eprovided however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit .i 10. SUBLEASING: ther or secondary. Tenant agrees A. The Premises not to sublease hall co thenstitut b lehotmeror otherwise transferrany�inte interest in this Lease, except to the extent that the right to sublet or transfer is specifically provided by this Agreement. that serves as the homeowner's me B. residence or s bletphisnit or her space under the circumstancesa tnant to rent his or her mobio described in and in compliance with the provisions of AB 1410 effective January 1, 2003. Only one mobilehome may be subleased by the tenant though the tenant may own or control one or more mobilehomes or homesites in the Pak.: Any sub -lease created in compliance with AB 1410 shall not create a landlord/tenant relationship as between City and sublessee. It is specifically agreedsuchand umon monid that Sublessee es. Receipt, Receipt, retention, cannot acceptance eor resident by attempting or purporting to pay City from the sublessee shall only be on behalf of the Tenant. As between possession of any monies privity of estate or contract. Tenant hereby further agrees to defend and City and sublessee there is from indemnify City, at Tenant's sole expense, from any claims, liabilities, atiising broughtout of by subuctlessee against the Park or for any action brought against the City by any person to Sublessee's conduct within the Pak. 11. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS: other improvat em its located on the Premisesai Tenants alsood oeagre that IandsCapinilgge oynnthe cabana emglses shall be limited to three feet ST) in heigght, to preserve enan a of he Premiand ses inpthe eace.v nt Tenant fails to reasonable fee for services relating to th' maintain the Premises in accordance with the provisions of this Agreement and the Rules and Regulations of ourteen (14Exhi Exhibit the datenof written nnnoitice. The fication owrttentnotice shalltcontain all comply yy :..r..r,,,o+1nn rani,ired by the obilehome Residency Law. 12. PHYSICAL IMPROVEMENTS AND SERVICES: Tenant tMarriinapark,t ncluding but notllimiteduto stlreets, the restricted pakingcommon areas nlaundtry facilities restrooms and showers located in the common areas and common facilities and designated for use by residents. 13. CHANGES IN MAR SERVICES: City retains the right Agreement, and the n the provisions of the Terms of this Agreen services to be provide physical improvement adjustment in rent. 14. RIGHT OF ENTRY: 15. 16. amend or modify the Me •e of the ph sical improver bilehome Residency Law the Marinapark Rules a V City include, without limit immon area, common fact spark Rules and Regulations, the Terms of this Is or services to be provided, after complying with i other applicable law. The right to amend the Regulations and the physical improvements and n, the right to reduce the size of, or eliminate, any or equipment without corresponding reduction or Tenant, subject to the right of revocation as set forth in the Mobilehome Residency Law, t written consent to City to enter the premises for the purpose of inspecting, improving, repairing or replacing gas, water and sewage systems owned and maintained by City. obligation of City to exercise ordinary, care, any damage, loss or injury to Tenant's home Tenant or the Premises which results from efforts of City to maintain, repair, improve or reF water or sewage systems shall be the sole responsibility of Tenant, and City shall not be re reimbursing any cost or expense incurred by Tenant as a result of such efforts, nor responsible for repairing, replacing or otherwise restoring the mobilehome, the Pren improvements thereon to the state or condition immediately prior to the maintenance, re repair efforts. The rights and duties set forth in this paragraph are intended to implement exercised consistent with the Mobilehome Residency Law. NOTICE REQUIRED BY CIVIL CODE SECTION 2079.10(a): The California Department of Justice, county sheriffs departments jurisdictions of 200,000 or more and many other local law enforcement access a data base of the locations of persons required to register subdivision (a) of Section 290.4 of the California Penal Code. The data basis and is a source of information about the presence of these individ Department of Justice maintains a Sex Offender Identification Line individuals may be made. This is a "900" telephone service. Callers must individuals they are checking. Information regarding neighborhoods telephone service. HOLD HARMLESS: t to the )erty of le gas, dbie for amity be or any nent or ;hall be ice departments serving iorities maintain for public uant to paragraph (1) of is updated on a quarterly in any neighborhood. The gh which inquiries about specific information about :)t available through this A. Tenant covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, Tenant's use and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Tenant, or Tenant's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Tenant, or Tenants agents, employees, licensees and invitees and damage to their property or Tenant's property, except for any damage or in uryof any kind arising out of the active negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. This section is intended to provide City with a release from liability to the fullest extent allowed by law and not exceeding the rights of the City to do so either under Civil Code section 1953 ("[a] Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive any of the following rights shall be void as contrary to public policy: ... (5] His right to have the landlord exercise a duty of care to prevent personal injury or personal property damage where that duty is imposed by law") or section 1668 ("All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property, of another, or violation of law, whether willful or negligent, are against the policy of the law"). City does not admit the applicability of section 195 to a mobilehome space. B. Tenant, as a material part of, the consideration under this Agreement, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the active negligence or willful misconduct of City's representatives, officers, agents or employees. Tenant agrees to indemnify and hold City, and its r representatives, officersys, agents and employees, harmless from and on account of any and all f oma a or injury tonealioence of Tperson ers aor nd Tenant � family or the estmobilehome arising from any cause or C. A The value of the mobilehome may decline. Since a substantial portion of the present value or Tenant's mobilehome or coach is attributable to the rent charged by this Lease, the value of the premises and the proximity of the premises to lower Newport Bay, you should investigate before purchasing City is not responsible for any loss or diminution m value, lack of marketability, lack of alternate homesites in other parks, and loss of value cost of the raiocathon on closure of the park 'sPl Please investigate thion is oroughly provide eoexecut executing this agreement. 17. TERMINATION: A. wrritten notice terminate anduponconditionAgreement, allnpersonsroccu�lpttying hto e.mobilehome }erminate their tenancy within that period and remove the mobilehome and all other improvements from the park yy B. foirth Inatheermin eh this ii e Agreement reeme t for reasons specified, and according to the procedures set 18. ATTORNEYS' FEES: Should either City or Tenant be required to employ counsel to enforce the terms, conditions and covenants of this Agreement, the prevailing Party shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein pursuant to the Mobilehome Residency Law, 19. REMEDIES CUMULATIVE: The cumulative and'nol one of themrshaltlbe considerediexclusive of the othergorexclusive shall lf any rights or impair ior be deemed law, dr of eexer ither Party of to exercise any other' elections or remedies shall not 20. NO WAIVER: A' negleolt or r om t of the of ther Party syhell impair any an uehgnght oP poweror shall be construed asna waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Agreement. e of B. Acceptance appproval oft nancyoshallreinstate not be deemeor d to ce a tenancy. eate a tenancy Conditional rr waive anyrequirements applicable to tenancy, purchaser application or approval requirements or assignment or transfer requirements. Acceptance of rent after service of a notice to terminate tenancy as specified in Civil Code §798.57 shall not waive, affect or prejudice the notice. Nor shall routine service of other notices, Management communications, or other actions or omissions of the Management waive, prejudice, or affect the right to terminate tenancy, process a purchaser application and approve a tenant for tenancy, or otherwise affect the rights of Management. Possession of rent by the resident manager shall not be acceptance until actual) den park by the park owner; accordingly, custody receipt poses only until app roved and accepted by therpa manager wshall be conditional and for 21. 22. 23. C. Owner may exercise any right under the terms of this agreement, or the Rules and Regulations as amended or modified, or any other right of the management under applicable law, and do so on or at any time subsequent to the date such right became effective hereunder, and do so retroactively to the date the right initially became effective or enforceable, by and upon demand for performance, including payment of any rent adjustments or other monies from or for the date such right first accrued through to and including the date of the demand and thereafter. Any delay, forbearance, whether intentional or inadvertent, in enforcing any right of the management for which subsequent demand is made shall not be construed as a waiver, estoppel, release or acquittal thereof, accord and satisfaction thereof, settlement in whole or part thereof; shall not constitute lathes in respect thereto; and, shall not render any such right unenforceable or be a defense against enforcement of such rights from the time such right could first be exercised and thereafter. COMPLIANCE WITH LAWS. A. Tenant covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City or any other governmental body or agency having lawful 1urisdiction over the Premises and/or the Property. Tenants agree to abide and conform with all the terms and conditions of this Agreement, the Rules and Regulations, all rules, regulations, terms and provisions contained' in any document referred to in this Agreement, and said rules, regulations terms, and provisions as may from time to time be amended modified or otherwise changed by Owner as permitted by the.terms, of this Agreement. B. Any violation of the Rules and Regulations shall be deemed a public nuisance. Tenants agree'that a breach of this Agreement or any of the Rules and Regulations cannot- reasonably or adequately be compensated in damages in an action of law, and therefore, Owner shall be entitled to injunctive relief including but not limited to restraining Tenants (or family members, guests or other invitees) from continuing to breach any such rules or regulations term or condition or to allow a condition violative of a rule or regulation term or condition to exist or continue to exist without proving irreparable harm or lack of adequate legal remedy. MOBILEHOME RESIDENCY'LAW / ZONING AND USE PERMIT INFORMATION: Pursuant to Civil Code section 798.27 ("(a) The management shall give written notice to all homeowners and prospective homeowners concerning the following matters: (1) the nature of the zoning or use permit under which the mobilehome park operates. If the mobilehome park is operating pursuant to a permit subject to a renewal or expiration date, the relevant information and dates shall be included in the notice.. 2, Tenant is hereby notified as follows: A. Tenant acknowledges having received and read a copy of the provisions of the Mobilehome Residency Law (Exhibit "C') as presently constituted, and the Mannapark Rules and Regulations (Exhibit "B"). B. The Property is currently zoned "Planned Community."There are no conditional use permits or other permits required to operate the Property as a mobilehome park. City owns the Property, but its use may be limited to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. ENTIRE AGREEMENT: This Agreement and the documents referred to herein and Owner oertaininq to the subject matter con agraph titles are for identification and reference sed to interpret this Agreement Each term and ant or which is a duty of the Tenant shall be c ally, a breach of any each such term and provis in for purposes of Civil Code section 798.56 ar as a violation of a rule and regulation. 10 istitute the entire a ed herein and rstandings of the ly and are not part ovision of this agn med to be both a shall also be deer may constitute grc nent between Tenant cedes all prior and s, whether written or Agreement and shall it to be performed by ition and a covenant. i constitute a rule and for the termination of 24. NOTICES: 1. yy United Statesmail, postage prepaid, and sbe hallibe deemed eshall ffectivenatthe first ofssevmy-two (72) hours after the day of mailing addressed: A. To Lessor: City Manager Cityy of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 With a copy to: City Clerk's Office City of Newport Beach 33 0 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have furnished to Tenant; and To Tenant: pp By delivering a withy to the Tenant p esohof suitablle aga Tenant be ab nddsctowhfrom ay be occupying the leaving a copy p y on thle Premises or mobile home end also sendinxi ageOpYphroutgghh thetimailnoaconspicuous h I sad ib Tenant g essee s mobilehome or coach Is attributable to Since a substantial portion of the present value of L the valueggof the preymises and tyhe and the proximity of the premises to lower Newport Bay, se shall remain in full B. foice aind effect in their orig'nal form. ail other provisions of the Lea 25. TIME OF ESSENCE: Time is of the essence in this Agreement and each and every provision hereof. 26. EMINENT DOMAIN: f rthe a mob lehomePark, park, is taken under the that twer of eminent domain, ores sold to aremaining y a thority is havinng thle pending, eminent domain hall automatically terminate on properr Poticeatasnof the date the condemning authority takes possession, precondemnfiles a s, notices its intent to condemn or condemnation action "or other action which relates thereto. Any award for any taking shall be the property of Owner. 27. INSURANCE: Owner does not carry public liability or property damage insurance. xcthose resulting frate om situationsiwhere guests or any other person from any loss, damage or injury p Owner would be legally liable for such loss, damage orginjury. If Tenants desire such or similar insurance Gavefl gethefthotherliabityisnd casualtynwhichsrelateale ithelmobliehome, o{hebimprov mentgs ane� approp late Tenants area advised to obtain lalhomeowner's policyand sio ineaccordanee with the guidelines and requirements specified by a lender, and if no lender, then in such sums and for such coverage as would be so required if so financed. 28. PARTIAL INVALIDITY: Certain terms and provisionsof this Agreement and other documents referred to in this Agreement refer to restate or summarize provisions of the Mobileli me Residency Law and other applicable laws. In every instance it is intended that these references, restatements and summies will accurately reflect the law and correctly set forth Tenants' and Owner's rights liabilities duties and obligations to one another and to used by the Park If any ois f the provislions of this Agreement or ts of he o her documenment ts usedtbyye the documents fto ail in any way to meet the above criteria then it is unintentional and all such provisions shall be deemed be automatically revised to correctly reflect the Owners and Tenants' rights, liabilities, obligations under the provisions of the Mobilehome Residency Law and all other applicable of lathe ws. provisionsgof this Agreement notify ythOe other documents used by the Park fail ere to meet the above criteria. If any term or provision of this Agreement or any document referred to in this Agreement or the applicatiof on this Agreementeorotherother document shall to aapplication of such or meor provision ble to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected enforced t d each fullest exand tent provision permitted of this Agreement or the other document shall be valid and be 29. ENTIRE AGREEMENT: A. whom the mobmarlil home'was purchased by Tenants and other persons the lare not authorzedand ltormaka agreements and orepresentations are contained in n thisants AgreementandOthe. othelrydocumentthose posted signs referred to in it. Therefore, Tenants agree that this Agreement and the other Ownereresggarding tries sub�ectsr cfoveredoblyn this rAgreemehite otheredoeumen se and Tenants This egolusiventstatemelnt of dtheguagrleemena erid psupersedesrealm p oWltandwcontempoiraneous agreements, representations and understandings. of his own B. and thpe warrantlelsetleppresientat nsaanldpacovenants ngthe Agegreegment itself.) Failure or efusalrof either obtaartorpother advice mises or 1var to this transactiondcon ti utes a waiver other rany documents on, contention legal claim that might have been based on such reading, inspection or advice. Additionally, in any interpretation of this Agreement it shall be deemed that this Agreement and its exhibits were written by both parties. C. this Agreement isda by between eemente parties that there arenotlegialtigahts or rt exists elationships nships inferred. ch Tenants Park is locatedeorhint the abovendescribed hspace other than than erest in the that which ris specifically which et forth istl its document. Tenants have no right to control the use of the real property upon 30. DRAINAGE AND GgRADING: p gg an A. Manage�m existing consent. Tenant is resppon grading for ma staining the spacetso that waterddoeis not drain off the sp ce n a underthe as to avoid runoe or ff onto the SanotherVmobilehome specs Tenant shall molsturehor wiategtottaccumulate underlltfie mobilehometeAl wetenng systemadewhich shall be would cause maintained and adjusted as necessary to avoid water run off and standing water on the premises. Any berms on the space shall be installed and maintained to avoid the accumulation ni water on the space or under the mobllehome. Any masonry skirting must contain sufficient openings as to prevent accumulation of water on the space or under the mobllehome. B. free of and from mold t HohmeohWnems lalsonresponsible for mold cleanupit The mob lie to tr should removeeall dmolds competent s ipf pot ntialey iharmful.nAmong thepconditions to l be check checked shouldabe presence of any mold in or about the mobllehome. The following are sources of indoor moisture that may cause problems: flooding, backed -up sewers, leaky roofs, humidifiers, mud or ice dams, nerof moisturel,ssteam fromt000kping, sihowerlbethosteamaandWeakenwet cloaoltdamounts thesnnorying lines, clothes dryers vented indoors, combustion appliances (e.g. stoves) not exhausted to the 12 outdoors. Homeownris responsible for avoiding any such coitions and for remediation if same should occur. 31. 32. 33. 34. 35. 36. NO THIRD -PARTY RIGHTS: Tenant is not a third -party beneficiary of any other agreement between Owner and anyone. The terms and provisions may differ between rental agreements and rules and regulations in force in the park, and no one may rely on the enforcement of any other's rental agreement or rules and regulations. There are no third party beneficiaries to this agreement. NO RECORDING: No recording of this Agreement on any memorandum of this Agreement may be made without the prior written consent of Owner, which consent may be withheld in Owner's sole discretion. LOT LINES: "Space" includes the area as defined by the perimeter of the mobilehome and its horizontal projections of its accessory structures. This understanding is based on the public ownership of the property on which the expectations of occupation which Tenant may use and enjoy. Therefore, Tenant may not rely on any markers to define the area of use and enjoyment to be expected due to the rights of the public entitled to entry within the park. ALTERATIONS AND ADDITIONS: Tenant agrees not to make any alterations, the homesite or mobilehome, nor install, re drainage or landscaping nor make any cost approval. Tenant is responsible for all cond subsidence, drainage, moisture, and ventil Owner may, at its option, consider and b considerations and the compatibility of suc' written consent and approval, all such alters promptly removed at Tenant's sole expense, OPPORTUNITY TO REMEDY: wements, additions or utility i or change any existing iml or such work without Owner', under the mobilehome inch In giving or withholding ci consent or refusal of conse inges to the Community. If ;. imorovements, additions or upon Ions to, on or about ants, or modify the Nritten consent and •ading, compaction, to any such work, •ely upon aesthetic fails to obtain prior istallations shall be If, at any time, Tenant believes owner has not fulfilled any legal obligations, Tenant agrees to immediately give owner written notice specifying what is believed owner has failed to do and indicating what Tenant believes owner must do in order to fulfill these obligations. This notice shall be as detailed as possible so that owner may fully understand Tenant's concerns. Tenant agrees that owner will have at least ninety (90) da s, or such longer period as is reasonably necessary, after receipt of Tenant's .notice to remedy the prob�em(s) Tenant has identified. If Tenant fails to promptly give owner this written notice as soon as Tenant is aware of any problem(s), or Tenant fails to give owner a reasonable opportunity to remedy the problem(s), owner will have no liability to Tenant for any expense, cost, damage or injury which Tenant may sustain as a result of the problem(s). If owner fails to remedy the problem(s) within a reasonable time after receipt of written notice, the problem(s) will be subject to mediation if such an agreement has been reached between the Parties. ENVIRONMENTAL PROTECTION: A. Propet hazardous substances and waste disposal is required of all Tenants. Typical hazardous substances include automobile, boat and motorcycle batteries, household batteries, cleaning fluids and solvents, gasoline, paint and other thinners, oils, brake fluids, transmission fluids, radiator fluids and coolants and petroleum products. No Tenants may keep or store, in any place including within or about the mobilehome, homeSite, storage shed or elsewhere in the Community, any hazardous substances in excess of the quantities required for typical single family household use. Additionally, Tenants may not cause any environmental hazard, including any exposure to, contact with, spill or deposit of any hazardous substance or waste. Tenants are prohibited from violating any law relating to environmental protection, hazardous substances or waste. This includes, but is not limited to, for example, changingor discarding auto batteries, oil, brake and radiator fluids, automatic transmission fluid, air conditioning gases, or grease in any motor vehicle or machine. Tenants may not cause or allow hazardous substances or waste to be disposed of anywhere in the Community, including, but not limited to, trash cans, trash bins, the sewage disposal system, or any other trash or disposal area in the Community. Such substances must be physically removed from the Community and disposed of elsewhere in compliance with 13 a law. In the event of apy spill orde°management us s stanein the C the ghtytTenants e ants the required by law to immediately homesite for hazardous substances. to aleosnluinl indemnify sB. aluiladohazarosactormslonpohI dby tand hl,rur law, including for environmentally and costs sustained by thestCoumtunlry agTenants I wiltl alsog be erequiredato relmbursef the Community for any actual attorney's fees, litigation expenses, and costs Incurred In defending any action against the Community as a result of any environmentally hazardous act or omission Tenants, Residents, Guests, Contractors and invitees. For purposes of this rule, substances" includes without limitation: (1) Tho hazardotuscmaterialded'toxicl substanceitionsolld "hazardous substance;" "hazardous waste, waste M.T.A.,rorpundertanry other EnvironmentalrLaw; I(II) Those ub tances' listed in the United States Department of Transportation (D.O.T.) Table [49 C.F.R. 172.101], or by the Environmental Protection Aggency (E.P.A.), or any successor agency, as hazardous sub4jula;tanes [40 C.F.R. Part hazec erdiou ;°or toxic under fed re altestate, ials or local lnd wasaws ortregulatiare or ons; nd r(IV)IAny matenal,lwaste, or substance that is: (V) a petroleum or refined petroleum product, (I) asbestos, (ul polychlorinated biphenyl, ( ii desinated as a hazardous substance pursuant to33 U.S.C. § 13 IictPri pursuant to 33 U.S.C. § 1917, (VI) a flammable explosive, or (VII) a radioactive material. 37. COUNTERPARTS: This Agreement eentogether shalexecuted a cutedti butunt( and the same instrument. 11 be deemed an original, but all of one 38. NON -RESPONSIBILITY OF PARK: Owner is not responsible to inspect and approve any work done, by Tenant or for Tenant a others, including, but not limited to, the Installation of the moblfehome, driveway, walkways, fences or an other y royal, to ensure equipment or Improvements of any type. To the extent that Owner may inspect or approve val to fng, e is for Owners own purpose only and Tenant is not entitled to rel on that ins ectlon or approval that the Item has been installed or constructed correctly or that the work as otherwise been done as required. Instead, Tenant is responsible for all required inspections and approvals and Tenant agrees to indemnify and hold Owner harmless from any work which is improperly done. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day and year first above written. Tenant By: By: CITY OF NEWPORT BEACH a municipal corporation. Homarsluurau, City Manager APPROVED AS TO FORM: 0 In auson, Assjstant City Attorney F:\users\cat\shared\cp\Projects\MadnaPark\TdowdallLease1115.do 14 CITY`FF NEWI'ORT BFICH OFFICE OF THE CITY ATTORNEY P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 (949) 644-3131 August 30, 2002 George H. Kaelin III, Esq. Endeman, Lincoln, Turek & Heater L.L.P. 600 "B" Street Suite 2400 San Diego, CA 92101-4582 RE: MARINAPARK RENTAL AGREEMENT Dear Mr. Kaelin: This letter responds to your recent correspondence to me and to Dave Kiff and to our meeting last month. The City Council has given considerable thought to the many issues you have raised involving the lease extension negotiations. Your advice to the tenants to reject the offered Lease Extension has assisted in bringing these issues into sharp focus, and raised issues never before discussed during negotiations by the tenants' prior legal counsel. 4 I should note that the City Council was surprised and disappointed to learn of the rejection of the latest lease extension which was believed to have been acceptable. Similar agreements, in concept and content had always been agreeable to the tenants and their counsel in the past. After analyzing the many concerns of all the parties, it would appear fair to say that we will have to spend some more time to reach consensus, if consensus is ever possible, between the City and the tenant community as a whole. For these reasons, we have been directed by the City Council to move forward in two general directions. These are as follows: 1. The Council has directed us to provide rental agreements compliant with the requirements of the Mobilehome Residency Law. Therefore, a Rental Agreement offer pursuant to Civil Code Section 798.18 shall be made to all tenants. 2. The Council has authorized us to continue to seek resolution of the terms of an acceptable longer -term lease and explore the ways and means of achieving resolution of current concerns pending the eventual closure of Marinapark. 3300 Newport Boulevard, Newport Beach George H. Kaelin III, Esq. August 30, 2002 Page 2 1 — RENTAL AGREEMENTS The Rental Agreement to be implemented is enclosed for your review. It offers a'term of twelve months, a term of one month (month -to -month) and a term of the tenants' choice of one month to twelve months. This offer is made pursuant to Civil Code Section 798.18. Upon expiration of this Agreement, each tenant will have the continuing offer of the Agreement on like terms until park closure. One proposal you made in your July 23, 2002 correspondence was in respect to the earlier agreement of the parties that a deeply discounted rent would constitute a fair sum for relocation assistance on closure of Marinapark. You agreed that the lease extension states that the City would be capable of utilizing such evidence in the consideration of appropriate relocation assistance. As a reminder, the 1985 Lease first raises the- tenants' and the City's agreement that, among the "most significant" rights given up by the City via the 1985 Lease involved a quid pro quo as follows (Section 4[B][2] of the 1985 Lease): "(2) Lessee's right to occupy the premises is subject to the payment of the moderate rent specified in this Lease and Lessee also obtains the advantage of limited rental increases in the future, while City gives up the right to charge higher rents initially and the right to impose future rental increases in excess of the'cost of living index; ..." We believe the tenants have collectively received hundreds of thousands of dollars in benefits from the reduced rents. The sales of the mobilehomes have reflected prices that are several multiples of book value, which is of course indicative of severely under -market rents. Many tenants have capitalized these placement premiums upon the sale of their mobilehomes all due and pursuant to the prior Lease Agreements. Nevertheless, the City Council has directed that the new Rental. Agreement contain terms which substitute the formerly proposed language with your proposed concept. Accordingly, you will see that the reference to under -market rents may be used as evidence of relocation assistance but shall not conclusively bar any legally mandated obligation of the City under applicable law for reasonable costs of relocation. The proposed lease offered a right of first refusal in the sale of mobilehomes in the park. This right has never been exercised, and has indeed been largely ignored in any event by all parties. We have consented to deleting this term in the new Agreement. In light of the short term nature of the Agreement, it would appear that none of the further points you have raised, all of which relate to the potential for along term understandings of the parties under negotiation, need to be addressed at this interim time in respect to this Agreement. Of course, I would expect that any continuing dialogue relating to a lease extension will allow us to revisit all these issues. Thus; discussion regarding such matters as rent increase limitations during the course of tenancy and on resale need not be addressed here. Further, the Rental Agreement } • 0 George. H. Kaelin III, Esq. August 30, 2002 Page 3 has no commitment for rent increase restrictions on sale of a mobilehome which we may revisit in further dialogue about a lease extension. The Rental Agreement does continue to contain • disclosures concerning the possibility of future closure of Marinapark. We feel compelled to make these disclosures in the interests of the public, the tenants, and any prospective buyer of a home in Marinapark. Certainly, it cannot be deemed fair to any interested mobilehome buyer to not be informed of the continued intent of the City to change the use of the property and the potential for the property to be limited in use by a Tidelands designation. This should be clearly brought to the attention of every prospective purchaser. When the Rental Agreement is provided to the parties, it will also contain an attached copy of the Mobilehome Residency Law and other exhibits referred to therein. We are always interested in any further comments you may have concerning the enclosed Rental Agreement. Please feel free to provide us your comments at any time. 2 -- LEASE NEGOTIATIONS At the present, the City Council has no counteroffer to the proposal last communicated by the Marinapark tenants. • While the City Council continues to remain receptive to an ongoing dialogue regarding a lease extension, this willingness will certainly wane as alternate uses for the property are explored and come into focus. Once an alternate use of the property is identified and relocation impact reports have been completed, such an opportunity will no longer exist and the formal notification and procedure for closure shall commence. I must stress again that, since as far back as 1985, the priorities of the City to close Marinapark have been made clear to the tenants and to the community and offered in all candor. The ensuing 17 years of enjoyment of Bayfront living at half or less than market rents constitute a largesse enjoyed in very few mobilehome communities across California. The City Council believes that the tenants must recognize the benefit of moderated rents. The post hoc rationalization for discounting the import and significance of the past and enormously valuable benefit bestowed on the tenant community, while understood and considered, fails with all due respect to adequately address the substantive merit of this benefit and to offer alternatives satisfactory to the City to account for it. While there are certainly many other issues that might be resolved, a core concern for the City remains the ability of the parties to successfully resolve this issue. George H. Kaelin III, Esq. August 30, 2002 Page 4 However, the reasonable cost of relocation will be addressed procedurally and substantively pursuant to applicable law. There are many other issues that would be required to be re -negotiated in light of current developments for an extension agreeable to the City, and we will continue to consider all proposals that are advanced in due course on behalf of the tenant community. I wish to thank you for your time and efforts on behalf of the tenant community in this regard. Please feel free to contact me if you should have any further questions or comments. Very Truly Yours, k4sIr Robin L. Clauson, Assistant City Attorney RLC:da Enc. cc: Members of the Newport Beach City Council (w/Enc.) Homer Bludau, City Manager (w/Enc.) Dave Kiff,-Assistant City Mahager (w/Enc.) *` Terry Dowdall, Esq. (w/Enc.) Bill Mecham, Bendetti Property Management (w/Enc.) 0 JAI - 1770 WEST BALBOA BOULEVARD NEWPORT BEACH, CALIFORNIA 92663 RENTAL AGREEMENT This Rental agreement ("Agreement") is entered into this day of . 200_ by and between the CITY OF NEWPORT BEACH, a municipal corporation and Charter City (City). and (Tenant), and is made with reference to the recital and acknowledgments, the materiality and existence of which is stipulated and agreed by the Parties: A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15th Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Properly). B. The City Council actively solicited proposals for non-residential uses at Marinapark' and, as of February 2002, has deemed a non-residential use of Marinapark the most appropriate land use for the property. As such, City Council intends to close the mobile home park no later than March 15, 2005. C. The Parties acknowledge that, subsequent to the effective date of the 1985 Lease, California State Lands Commission staff has discovered evidence that a portion of the Property consists of tidelands. City and Tenant have, in the past, claimed that all or substantially all, of the Property leased for mobilehome residency purposes is uplands owned by City, and City and Tenant have discussed evidence to support that claim. D. State Lands Commission staff has indicated that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, ,City and'Tenant may dispute that position. E. The terms and conditions of this Agreement are in compliance, and consistent, with the provisions of the Mobilehome Residency Law (Section 798 at. seq. of the California Civil Code) and shall not be otherwise construed. F. You acknowledge having received, read and understood a copy of The attached Mobilehome Residency Law and Park Rules and Regulations each of which is incorporated by this reference. G. The terms of residency shall be solely governed by law and by the terms of this agreement. No salesperson, broker, financial institution or any person not specifically employed by owner has the authority or right to make statements on behalf of owner. The resident managers have no authority to modify this agreement. This is the exclusive agreement between us. H. A new Tenant warrants that Tenant has read, reviewed and executed a written disclosure statement provided by the management at least three (3) days prior to the execution of this rental agreement. I. EQUAL HOUSING OPPORTUNITY: WE' DO BUSINESS IN ACCORDANCE WITH THE STATE AND FEDERAL FAIR HOUSING LAWS. IT IS ILLEGAL TO DISCRIMINATE AGAINST ANYPERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, HANDICAP OR DISABILITY, FAMILIAL STATUS SOURCE OF INCOME, NATIONAL ORIGIN OR ANCESTRY OR FOR ARBITRARY REASONS UNDER STATE LAW. MARINAPARK RENTAL AGREEMENT PAGE 1 0 NOW, THEREFORE, the Partias do, hereby mutually agree as follows: 1. DESCRIPTION OF PREMISES. The City hereby rents to the Tenant, and Tenant accepts the rental of space number as shown on Exhibit "A" (Premises) in Marinapark, 1770 West Balboa Boulevard, Newport Beach, California 92663. 2. TERM. (select one option as provided) The tenancy created under this Agreement shall be on a month -to -month basis and shall commence on: - 200_ The tenancy created under this Agreement shall be for a period of twelve (12) months and shall commence on: 200. unless sooner terminated in accordance with the terms of this Agreement; The tenancy created under this Agreement shall be for a period of months (from one month to twelve months) and shall commence on: 200_, unless sooner terminated in accordance with the terms of this Agreement. Rental agreements of varying duration including a 12 month or less and month -to -month have been offered. It is acknowledged that this agreement is chosen from such alternatives. The 12 month or less agreement Is and remains a continuing option for the tenant upon expiration of the rental agreement under which the tenant had been residing until the said expiration of its term. Notice of Intent of Park Closure. City plans to close this park in the near future. In accordance with the Mobilehome Residency Law, Section 798.56 (g) and other applicable law, such notification may be given at any time. 3. RENT: A. The beginning monthly rent is $ per month. Tenant shall pay as rent to Owner without deduction or offset (without waiving Civil Code Section 1942) and on the first day of each month: (1) the monthly rent (as it may be adjusted as specified herein); (2) all utility charges billed to Tenants by Owner during each month as described herein (please note;'utility rates for utilities billed to Tenant by Owner are set by the Public Utilities Commission and other governmental agencies. Therefore; charges for these utilities may be increased at any time in accordance with the rates established by these entities and no advance notice of increases in such rates will be given to Tenant by Owner); and, (3) guest charges (with applicable exceptions pursuant to the Mobilehome Residency Law), of $ per day for any guest who stays more than twenty consecutive days or more than thirty days in a calendar year. B. Monthly rent may be increased at any time upon 90 days advance written notice. C. Owner may charge a reasonable fee for services relating to the maintenance of the land and premises upon which the Mobilehome is situated in the event the Tenants fail to maintain such land or premises in accordance with the Rules And Regulations of the Park after written notification to the Tenants and the failure of the Tenants to comply within fourteen (14) days. Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner, unless by order within the final judgment of a court of competent jurisdiction. Such charges shall be billed as further rent or as a permissible fee at owner's option, and added to the monthly rent billing payable on the first of the month following -the date of completion of the work performed by the management. MARINAPARK RENTAL AGREEMENT PAGE 2 'D. Tenants shall pay when due all real property taxes attributable to Tenant's mobilehome and all improvements made by Tenant to Tenant's mobilehome space and all municipal, county, stale, federal and other taxes, fees, assessments and levies (except Owner's income taxes and franchise taxes) levied upon the Premises, or Tenant or Owner, In connection with the use and occupancy of the Premises by Tenant. E. All rent payable hereunder shall be paid in advance on the first day of each month together with all other charges set forth on the monthly billing statement, in full without deduction, offset, reduction, discount, claim of collateral debt or other obligation owing. Specifically, Tenants are not entitled to offset or deduct rent, or reduce the amount of rent by reason of any claim against Owner by reason of any independent, collateral or other legal obligation or dispute. The entitlement to rent shall not be deemed cross -collateralized with or against any other legal obligation or dispute for which Owner is claimed to be responsible to Tenants. Payment shall be in the form of personal check, money order, or certified funds. Owner may however demand all prospective payments in cash, on not less than at least ten (10) days advance written notice. If the rent is not timely paid, demand notices to pay or quit may be served as soon as legally permitted. Rent and all other charges will be late if not paid in full by 5:00 p.m. on the 5th day of each month. Tenants must pay a late charge whenever rent or other charges are paid more than five (5) days after they are due in the amount of Thirty -Five dollars ($35.00) and a handling charge whenever a check is returned for any reason In the amount of Twenty-five dollars ($25.00). Payment will be made at the Park Office. F. Monies received for rent or other charges may be applied to the earliest outstanding sums ('first in, first out") and to utilities first at Owner's discretion, despite payor's instructions or endorsements purporting to restrict application of payment to a specific month or time period, or purporting to pay -in -full; satisfy or extinguish the amount or arrearage due or portion thereof. Partial payments of monthly rents or other charges may be rejected and constitute a breach of this agreement. However, tender of a part payment shall not be construed as an accord and satisfaction or release of any indebtedness if accepted, despite Tenant" purported instructions or restrictive endorsements to the contrary. Acceptance of a part payment is not a waiver of the balance billed or due. The period of time prior to the imposition of the late charge is not a grace period or option to pay late. 4. UTILITIES. A. Owner shall provide and separately bill to Tenant the following utilities: natural gas at the beginning rate of $22.00. Water usage is included in monthly rent. B. City shall not provide electricity or telephone service. Tenant shall make arrangements directly with the utilities furnishing these services and pay such utilities directly for them. Tenant shall contract with and pay directly for all other utilities it may require. The charge for gas shall be paid when rentjs due, and.is in addition to the obligation to pay rent. In the event Tenant fails to pay the charge for water or gas service within ten (10) days after the amount is due, Tenant shall pay to City a late charge of thirty-five dollars ($35.00). in the event City provides both master meter and subtneter service of utilities to Tenant, the cost of the charges for each billing period shall be separately stated and shall contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place. The charge to Tenant for gas service shallbe the amount of the charges paid by Tenant as of June 1, 2002 ($22.00 per month). The charges for gas service may be increased or decreased on or after the first day of October. Owner further reserves the right to charge for any other separately -billed or submetered utilities or for services actually rendered under Civil Code §798.32 (without reduction of rent or other charges) or Civil Code §798.41 (with reduction in rent equal to cost of initial separate billing amounts). Such amounts shall also be deemed to constitute further monthly rent. C. Owner shall not be liable for any loss or injury, and Tenant shall not be entitled to any abatement or reduction of rent by reason of Owner's failure to furnish any of the foregoing utilities when such failure is caused by accident, breakage, repairs, strikes, acts of third parties, labor disputes or by any other cause, similar or dissimilar beyond the reasonable control of Owner. (Please Note: The provisions of the paragraph below entitled "Indemnification" apply to this paragraph.) MARINAPARK RENTAL AGREEMENT PAGE 0 D. Tenant shall not connect, except through existing electrical or natural gas outlets or water pipes on the - Premises any apparatus or device for the purpose of using electric current, natural gas, water or other utility. E. PLEASE READ CAREFULLYI FROM TIME TO TIME, THE SERVING PUBLIC UTILITY MAY SUFFER OR CAUSE POWER OUTAGES TO THE PREMISES. POWER OUTAGES ARE CAUSED BY MANY FACTORS: Storms, wind, heat, ice and high demand are the most common causes of widespread power outages; high power demand during heat waves and other times of unusually high demand may overburden electric cables, transformers, and other electrical equipment of Southern California Edison which then melt and fail. F. CAUTION: INTERMITTENT POWER INTERRUPTIONS ARE FOLLOWED BY RESTORATION OF ELECTRICITY WHICH MAY CAUSE SURGES IN ELECTRICAL POWER. POWER SURGES OFTEN AFFECT UNPROTECTED CONSUMER HOUSEHOLD APPLIANCES SUCH AS ELECTRONIC EQUIPMENT (COMPUTERS, STEREOS, RADIOS, ETC.). THE OWNER IS NOT RESPONSIBLE FOR THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES WHICH ARE CAUSED BY SOUTHERN CALIFORNIA EDISON. TENANT AGREES THAT OWNER IS FULLY AND UNCONDITIONALLY RELEASED AND DISCHARGED FROM ANY AND ALL LIABILITY WHICH ARISES AS A RESULT OF THE ACTS AND OMISSION OF THE UTILITY COMPANY. IT IS THE RESPONSIBILITY OF THE TENANT, EXCLUSIVELY, TO EXERCISE PRUDENT CARE FOR PROPERTY WHICH MAY BE AFFECTED BY DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES. ACCORDINGLY, TENANT HAS THE RESPONSIBILITY TO TAKE THE FOLLOWING PRECAUTIONS: 1. Tenant has the responsibility, always, TO USE SURGE PROTECTORS FOR THE PROTECTION OF TENANTS PROPERTY, especially for computer equipment, stereo equipment, radios and other electrical appliances, devices and products which may be affected by disruptions, outages, surges, or other irregularities in the provision of electrical service. Unplug heat_producing items such as irons or portable heaters to prevent a fire when power is restored. 2. Turn off and unplug all appliances and other electrical equipment, except for a single light bulb, which will be the signal your power has been restored. This helps ensure against circuit overloading, which could delay restoration of service. 3. In the event of an outage; do not use candles for lighting during an outage, since they create a fire hazard. Use flashlights or battery�_powered lanterns instead. 4. Check the neighborhood to see if others have their power. If they do, the problem may be a "tripped" circuit breaker. G. IT IS RECOMMENDED THAT TENANT OBTAIN A HOMEOWNER'S INSURANCE POLICY TO COVER DAMAGE, LOSS AND LIABILITY ASSOCIATED WITH THE DISRUPTIONS, OUTAGES, SURGES, OR OTHER IRREGULARITIES IN THE PROVISION OF ELECTRICAL SERVICE TO THE PREMISES AND OTHER RISKS. H. TENANTS ARE RESPONSIBLE FOR MAKING SURE THAT THEIR MOBILEHOMES AND ALL APPLIANCES AND EQUIPMENT ARE COMPATIBLE WITH THE ELECTRIC SERVICE NOW AVAILABLE, AND OWNER SHALL HAVE NO LIABILITY OR RESPONSIBILITY IF THE AVAILABLE ELECTRICAL SUPPLY IS INCOMPATIBLE OR INSUFFICIENT. TENANTS ARE RESPONSIBLE TO MATCH THE RATING FOR THE MOBILEHOME TO THE SERVICE PROVIDED AT THE PEDESTAL AND NOT EXCEED IT. TENANT PROMISES THAT THE MOBILEHOME SHALL NOT EXCEED SUCH RATING. TENANT RELEASES OWNER FROM FAILURE TO COMPLY WITH THE AMPERAGE RATING OR EXCEEDING AVAILABLE SERVICE. THIS RELEASE IS NOT INTENDED TO RELEASE OWNER FROM OWNER'S WILFUL MISCONDUCT OR ACTIVE NEGLIGENCE, BUT ONLY TO THE EXTENT ALLOWED BY LAW. TENANT SHALL FORBEAR FROM CONSUMING MORE AMPERAGE THAN THE MARINAPARK RENTAL AGREEMENT PAGE 4 • EXISTING RATING FOR THE HOMESITE, TO AVOID DAMAGE TO OWNER'S PROPERTY AND TO THE - PROPERTY OF OTHERS.. I. IF THE MOBILEHOME, APPLIANCES AND EQUIPMENT IN THE MOBILEHOME ARE NOT COMPATIBLE WITH THE ELECTRIC SERVICE AND CAPACITY NOW AVAILABLE OR EXCEEDS AVAILABLE SUPPLY AT THE PEDESTAL, TENANT SHALL "DE AMP" (REDUCE THE RATING FOR) THE MOBILEHOME OR DISCONTINUE EXCESS DEMAND TO ENSURE AGAINST ANY OVERLOADING OR CAUSING ANY DISRUPTION IN SERVICE. OWNER SHALL HAVE No LIABILITY OR RESPONSIBILITY TO TENANT IF THE AVAILABLE ELECTRICAL SUPPLY IS INSUFFICIENT OR INCOMPATIBLE. TENANT IS EXPRESSLY LIABLE FOR SERVICE DISRUPTIONS CAUSED BY EXCESSIVE DEMANDS ON THE ELECTRICAL SYSTEM WHICH SHALL FURTHER BE DEEMED A DEFAULT AND BREACH OF THE TENANTS' OBLIGATIONS UNDER THIS AGREEMENT. J. With respect to the provision of any services or -facilities (including utilities) to Tenant, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to maintain labor or materials or reasonable substitutes for them, governmental restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond owner's reasonable control, will excuse performance of these obligations for a time period equal to the delay. Tenants will remain responsible, without abatement or reduction, for the rent, utilities, and other charges to be paid per the terns of this Agreement. Owner will use reasonable efforts to reinstate or repair any services or facilities, including utilities, which have been interrupted as set forth hereinabove. If Tenants feel that Owner is not using reasonable efforts to reinstate such services or facilities, Tenants shall mediate the matter pursuant to the agreement or paragraph contained herein entitled "mediation and reference of disputes" if and only if Tenants have consented to that provision or desire to do so by mutual agreement (at the time the dispute arises) which provides for an alternate dispute resolution procedure of such dispute. Owner will not be liable under any circumstances for loss of or injury to property, however occurring through or in connection with or incidental to the failure to furnish any services of facilities (including utilities). K. RESIDENT COVENANTS NOT TO CONSUME MORE AMPERAGE THAN THE EXISTING RATING FOR THE SPACE, SO AS TO AVOID DAMAGE TO OUR PROPERTY AND TO THE PROPERTY OF OTHERS. We will provide utilities and or services as specified on page one of this agreement. Any separate charges for natural gas, electricity and water as applicable will be on a submetered basis (if not separately charged at the inception of this agreement, owner reserves the right and power to do so on proper notice, with or without electing to reduce rent as per CC §798.41). Civil Code Sections 798.41 or 798.32 allow for further separated billing of utilities with corresponding reduction of rents and such option is reserved. 5. CIVIL CODE NOTICE RE: SERVICES AND IMPROVEMENTS: Owner is responsible for providing and maintaining the existing services and existing physical improvements located in the common facilities in good working order and condition and you agree that these responsibilities of the Park are as defined and limited by this Agreement. The services include the following: (i) Park Management Services and those items set forth on page one; (ii) Maintenance of the physical improvements of the park, including the streets, walkways, and, common areas. Management shall have a reasonable period of time, with respect to the physical improvements in the common facilities, to repair the sudden or unforeseeable breakdown or deterioration of these improvements and bring the improvements into good working order and condition after management knows or should have known of the breakdown or deterioration. The period of time to do so shall not exceed: as soon as possible where health and safety is affected, and thirty days except where exigent circumstances justify a delay; or, otherwise as specified by law. Such repairs or other appropriate action shall be accomplished as soon as possible in the event of any condition which may relate to health and safety. With respect to providing any services or facilities, any prevention, delay, or stoppage due to strikes, walkouts, or other labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes for them, governmental MARINAPARK RENTAL AGREEMENT PAGE 5 restrictions, regulations or controls, judicial orders, fire/flood or other natural disaster or casualty, breakage, repairs, and other causes beyond the reasonable control of the Park, will excuse the Park's performance of these obligations for a time period equal to the delay. You will remain responsible, without abatement or reduction, for the rent, utilities, and other charges. A. Tenant agrees to notify management immediately of any breakdown, interruption, deterioration, or failure of any physical improvement, utility, amenity, facility or service so a response to promptly to fulfill maintenance responsibilities can be given. Management depends on notice to avoid and mitigate loss, damage, injury and other liability by Tenant's prompt notice when applicable. Tenant's good faith cooperation is important to enabling management to timely respond. B. Management's reasonable and conscientious efforts to maintain the Park, despite prudent effort, will probably not be perfect. From time to time, repairs and improvements may be needed, and Tenant may be inconvenienced. Management hopes Tenant will please cooperate and be patient. Management will reasonably endeavor to avoid material disruption and interference with quiet enjoyment, and to provide advance notice of substantial interruptions or interference which are planned or scheduled. Tenant agrees that a reasonable job in maintaining the Park fairly describes Tenant's expectation of management's duty to maintain the park. Management shall provide physical improvements and services in the Park. However, services, facilities, amenities, landscaping and other improvements in the common areas may change based upon conservation interests and concerns; such changes may include drought resistant landscaping, and additions, alterations or deletions of services and facilities without reduction, discount of other offset from monthly rents. Such changes will not alter other commitments under this Agreement. Tenant will have the opportunity to consult if desired. An average and habitable residential environment is provided, but not a perfect one as with any residential neighborhood. Physical Improvements include existing common areas, office, streets, any recreational facilities, buildings and interior improvements, landscaping, meeting rooms, pools, related improvements and equipment. 6. USE OF PREMISES. A. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. You agree not to do anything that will constitute waste, nuisance, or unreasonable annoyance. You agree to do nothing to cause damage to the space or park. You agree not to permit any act or maintain or permit to be maintained any condition on your space or mobilehome which may cause an increase in the rate of insurance Owner pays or increase costs of maintenance and repair. No activity shall be permitted which requires the issuance of a business license or permit by any governmental agency, or which is inconsistent with community zoning and conditional use permits, which would Increase the risk of harm to the management or to any other person or property, increase noise, dust, vibration, odors or fumes, smoke, or any other condition offensive to the senses or which causes reasonable complaint, breaches the covenant of quiet enjoyment or reduces property values; which would increase foot or vehicular traffic, results in deliveries and delivery trucks, require storage of any thing _outside the mobilehome, require additional employees or other persons on the space, or affect parking. Permitted occupants are: (1) , Tenant; (11) An additional person if Tenant is living alone; (Ili) Family members entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (Iv) Short term guests. The term "short term guest" shall mean any person who does not stay. with Tenant for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may occupy the Premises with the prior written consent of City. B. Tenant agrees, that the primary residence requirement is fundamental to this lease, stipulates that the residency requirement will not constitute an undue burden or hardship on Tenant. Tenant agrees that the MARINAPARK RENTAL AGREEMENT PAGE 6 •. • Premises shall be Tenant's primary residence unless this requirement is waived by the City Council due to hardship. Tenant shall provide satisfactory proof of residency to City. C. Tenant agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 7. CONSIDERATION. A. City and Tenant agree that the terms and conditions of the 1985 Lease, the 2000 Amendment and this Agreement preserve and protect substantial and important rights and benefits, economic and personal, that each Party would not otherwise be entitled to receive. These economic and personal rights and benefits are the consideration for the 1985 Lease and the 2000 Amendment. The more important rights and benefits gained and given up by each Party are specified in this section and the Parties agree that, like the 1985 Lease, this Agreement should be interpreted such that each Party receives the rights and benefits identified in this Section. B. Consideration to Tenant. Tenant agrees and acknowledges that City is entitled to convert the Property to a different use. If City chooses to close the mobilehome park on the Property it may do so with the obligation to pay relocation benefits or provide other forms of relocation assistance. The moderated rent provided for within the 1985 Lease and the 2000 Amendment is acknowledged by Tenant herein and shall be taken into consideration by City and Tenant in determining City's obligation, if any, for Tenant's reasonable costs of relocation. C. Provisions related to Consideration. This Agreement constitutes notice that City reserves the right to give notice of intent to close the Park at any time in accordance with the provisions of the Mobilehome Residency Law. 8. RELEVANT STATUTES AND RULES. The Mobilehome Residency Law requires this Agreement to contain, among other things, the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Agreement by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and mod cations shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 9. SALE OR ASSIGNMENT. Subject to the terms of this Section, Tenant may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Tenant under the Mobilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain on the Premises, or if Tenant proposes to assign Tenant's interest in this Lease to any person or persons who is (are) to reside on the Premises, Tenant and/or the proposed transferee must do the following: A. Tenant must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval, the transferee has executed a new rental agreement provided by City, and the transferee has expressly agreed to be bound thereto. C. Tenant agrees that occupancy of the Premises shall be limited as provided in this Agreement and Tenant agrees not to sublease or otherwise transfer any partial interest in this Agreement. MARINAPARK RENTAL AGREEMENT PAGE 7 D. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Agreement, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit "B"). E. The requirements for any mobilehome proposed to be installed on the space is as follows: Management must first approve a mobilehome before it may be installed in the park. No mobilehome which in excess of twelve feet in height may be installed in the park. The proposed mobilehome must fit upon the space in the position specked by management. Management reserves the right to require the largest possible mobilehome commercially available to be sited upon the space. Established set backs must be honored, and may not be changed. Roof material must be non -glare composition or wood shake shingles for the mobilehome, awnings and any storage or other structures on the space. All installations and improvements must be approved by management before work is commenced to avoid damage to underground utilities. Management must further approve a written plan, to be submitted for approval as required by law, showing the proposed location with measurements and dimensions evidencing conformance to all setback requirements required by law including Title 25 of the Code of Administrative regulations and local ordinances. -A tie down system in compliance with §1336.3 of Paragraph (a) of Title 25 is required. A vapor retarding ground cover of six (6) mil polyethylene or equivalent over the ground, under the home is required. Under floor areas shall be ventilated 1 sq. ft. for each 150 sq. ft. of under floor area. Air conditioners, compressors and necessary accessories will be considered and approval of same shall be at management's sole discretion. No changes shall be made to the grade of the lot that would cause any runoff to adjacent space or common areas. Lot must meet HCD requirements for drainage. No new cabanas may be constructed. Eaves are permitted only if applicable set back requirements can be met. Hitches must be removed from home and stored under the mobilehome. Porch, steps and ramps must be built to Title 25 Requirements. No aluminum porches are permitted, and shall not encroach set back requirements or required parking space. Any required handrail, porch, or step railing shall be wood, painted to match home/tdm color. No upgrading or tampering with the electrical /gas service shall be permitted even by a licensed contractor. No mobilehome is permitted which is rated at higher amperage than the pedestal. Additional requirements are set forth in the rules and regulations. F. Notwithstanding any other provision in this Agreement, Tenant shall have the right to assign its interest in this Agreement to a spouse, son and/or daughter provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Agreement. 10. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS. Tenant shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Tenants also agree that all landscaping on the Premises shall be limited to three feet (3) in height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Tenant fails to maintain the Premises in accordance with the provisions of this Agreement and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Tenant and Tenant's failure to comply within fourteen (14) days from the date of written notice. The written notice shall contain all information required by the Mobilehome Residency Law. 11. PHYSICAL IMPROVEMENTS AND SERVICES. Tenant shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, nonrestricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. 12. CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL IMPROVEMENTS AND SERVICES. MARINAPARK RENTAL AGREEMENT PAGER City retains the right to amend or modify the Marinapark Rules and Regulations, the Terms of this Agreement, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the Terms of this Agreement, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment without corresponding reduction or adjustment in rent. 13. RIGHT OF ENTRY. Tenant, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the Premises and Tenant's mobilehome for the purpose of inspecting, improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Subject to the obligation of City to exercise ordinary care, any damage, loss or injury to Tenant's home, property of Tenant or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Tenant, and City shall not be responsible for reimbursing any cost or expense incurred by Tenant as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. The rights and duties set forth in this paragraph are intended to implement and shall be exercised consistent with the Mobilehome Residency Law. Tenant initials to grant consent to enter: 14. NOTICE REQUIRED BY CIVIL CODE SECTION 2079.10(a). The California Department of Justice, county sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the California Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through this telephone service. 15. HOLD HARMLESS. A. Tenant covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising.out of, or incident to, Tenant's use and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any Injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Tenant, or Tenant's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Tenant, or Tenant's agents, employees, licensees and invitees and damage to their property or Tenant's property, except for any damage or injury of any kind arising out of the sole negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. B. Tenant, as a material part of the consideration under this Agreement, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the active negligence or willful misconduct of City's representatives, officers, agents or employees. Tenant agrees to indemnify and hold City, and its representatives, officers, agents and employees, harmless from and on account of any and all damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Tenant, and Tenant's family or guests. - MARINAPARK RENTAL AGREEMENT PAGE C. Continuing Occurrences: Tenant agrees to forever release and discharge Owner from claims, demands, actions, and all liability for injuries, accidents, damage and loss of any kind which are caused or contributed to by those acts or omissions which are (or are capable of being) ongoing, continuing, or recurring over a period of time, and which can be avoided if Tenant exercises the absolute right to terminate this Agreement and quit. Examples of continuing occurrences include but are not limited to: common area maintenance and condition, enforcement of rules and regulations, general living conditions and happenings the law defines as a continuing or permanent nuisance or breach of quiet enjoyment, or habitability. Excluded examples include but are not limited to: a slip and fall accident, and other sudden, non repetitive mishaps resulting in bodily injury caused by active negligence, and other claims to which this provision is or may be unenforceable, including foregoing examples if a court so adjudicates. Any such occurrence is agreed not to be a continuing nuisance. - D. Tenant may terminate tenancy at any time, for any reason, upon 60 day notice, with no,continuing future obligdtion whatsoever: Tenant therefore has the power to completely avoid the effects of any continuing claimed or existing defects, disputes, injury, damage, or breach. Owner, however, has no such discretion. It would not be fair to "pile up" claims of injury or damage from continuing occurrences when Tenant has the absolute right to cancel at any time. THEREFORE, AS TO ANY "CONTINUING OCCURRENCE," ANY CLAIM OR SUIT BETWEEN THE PARTIES MUST BE COMMENCED IN ACCORDANCE WITH THE PROCEDURES FOR MAKING CLAIMS AGAINST GOVERNMENTAL ENTITIES PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA GOVERNMENT CODE. E. NOTE TO NEW TENANTS: The value of the mobilehome may decline. The value will probably decline upon closure of the Park. Investigate before purchasing. The purchase of a mobilehome, like the purchase of any product or financial investment, involves risk. As an investment, a mobilehome purchase is similar to investing in a used vehicle which deteriorates and loses value. The value may change based on the economy, rent levels which rise to market rates, closure of the park, and the age and condition of the mobilehome. There is a risk that mobilehome values may decline, no matter how well Tenants care for it and whatever the condition and appearance of the Community. Management encourages Tenants to take the time to carefully conduct their own independent investigation of these issues. Tenants agree to indemnify and hold Owner and management free and harmless from all loss, diminution in value, lack of marketability, lack of alternate homesites in other parks, and loss of value of the mobilehome for any reason, other than Owner's duty to provide reasonable cost of relocation on closure of the park. This indemnification shall also be construed as a release of all damage, consequential damage and loss to the fullest lawfully permitted extent. It is a wise choice to carefully evaluate all housing choices before purchasing. Please investigate thoroughly before executing this agreement. 16. TERMINATION. A. Tenant may terminate this Agreement, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the Premises terminate their tenancy within that period and remove the mobilehome and all other improvements from the Premises. B. City may terminate this Agreement for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. C. In addition to the rights specified in subparagraph B, City further reserves the right to terminate this Agreement and/or close the park in the event: (1) a court of competent jurisdiction determines that residential use of the Property is inconsistent, or is in conflict, with the provisions of the public trust imposed upon those portions of the Property that constitute state tidelands, or that the residential use is inconsistent with any provision of the State Constitution or State law; or (2) there is a major failure in one or more of the public utilities furnished to Tenant by City, and, in the opinion of City, the cost of repairing the system is excessive when viewed in light of the highest and best use of the Property. MARINAPARK RENTAL AGREEMENT PAGE 10 • 0. 17. ATTORNEYS' FEES. Should either City or Tenant be required to employ counsel to enforce the terms, conditions and covenants of this Agreement, the prevailing Party shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein whether or not court proceedings were commenced. Such amounts shall be deemed to constitute additional rent subject to 90 day advance written notice served at anty time during the course of this agreement. 18. REMEDIES CUMULATIVE. The rights, powers, elections and remedies of the Parties contained in this Agreement shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not Impair or be deemed a waiver of either Party's right to exercise any other. 19. NO WAIVER. A. No delay or omission of either Party to exercise any right or power arising from any omission, neglect or default of the other Party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed as a waiver of any succeeding breach. of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Agreement. B. Acceptance of rent shall not reinstate or create a tenancy. Conditional acceptance of rent pending approval of tenancy shall not be deemed to create a tenancy or waive any requirements applicable to tenancy, purchaser application or approval requirements or assignment or transfer requirements. Acceptance of rent after service of a notice to terminate tenancy as specified in Civil Code §798.57 shall not waive, affect or prejudice the notice. Nor shall routine service of other notices, Management communications, or other actions or omissions of the Management waive, prejudice, or affect the right to terminate tenancy, process a purchaser application and approve a tenant for tenancy, or otherwise affect the rights of Management. Possession of rent by the resident manager shall not be acceptance until actually approved by the park owner; accordingly, the receipt by or the tender of payment to the resident park manager shall be conditional and for custody purposes only until approved and accepted by the park owner. C. Owner may exercise any right under the terms of this agreement, or the Rules and Regulations as amended or modified, or any other right of the management under applicable law, and do so on or at any time subsequent to the date such right became effective hereunder, and do so retroactively to the date the right initially became effective or enforceable, by and upon demand for performance, including payment of any rent adjustments or other monies from or for the date such right first accrued through to and including the date of the demand and thereafter. Any delay, forbearance, whether intentional or inadvertent, in enforcing any right of the management for which subsequent demand is made shall not be construed as a waiver, estoppel, release or acquittal thereof, accord and satisfaction thereof, settlement in whole or part thereof; shall not constitute laches in respect thereto; and, shall not render any such right unenforceable or be a defense against enforcement of such rights from the time such right could first be exercised and thereafter. 20. COMPLIANCE WITH LAWS. A. Tenant covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City, or any other governmental body or agency having lawful jurisdiction over the Premises and/or the Property. Tenants agree to abide and conform with all terms and conditions of this Agreement, the Rules and Regulations, all rules, regulations, terms and provisions contained in any document referred to in this Agreement, and said rules, regulations terms, and provisions as may from time to time be amended modified or otherwise changed by Owner as permitted by the terms of this Agreement. MARINAPARK RENTAL AGREEMENT PAGE 11 • B. Any violation of the Rules and Regulations shall be deemed a public nuisance. Tenants agree that a breach of this Agreement or any of the Rules and Regulations cannot reasonably or adequately be compensated in damages in an action of law, and therefore, Owner shall be entitled to injunctive relief including but not limited to restraining Tenants (or family members, guests or other invitees) from continuing to breach any such rules or regulations term or condition or to allow a condition violative of a rule or regulation term or condition to exist or continue to exist without proving irreparable harm or lack of adequate legal remedy. 21. MOBILEHOME RESIDENCY LAW / ZONING AND USE PERMIT INFORMATION. A. Tenant acknowledges having received and read a copy of the 1985 Lease, the 2000 Amendment and this Agreement, the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Marinapark Rules and Regulations (Exhibit "B"). B. The Property is currently zoned "planned community." There are no conditional use permits or other permits required to operate the Property as a mobilehome park. City owns the Property, except to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. 22. ENTIRE AGREEMENT. This Agreement and the documents referred to herein constitute the entire agreement between Tenant and Owner pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the parties, whether written or oral. Paragraph titles are for identification and reference only and are not part of this Agreement and shall not be used to interpret this Agreement Each term and provision of this agreement to be performed by the Tenant or which is a duty of the Tenant shall be deemed to be both a condition and a covenant. Additionally, a breach of any each such term and provision shall also be deemed to constitute a rule and regulation for purposes of Civil Code section 798.56 and may constitute grounds for the termination of tenancy as a violation of a rule and regulation. 23. NOTICES. All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 To Tenant: With a copy to: City Clerk's Office City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have furnished to Tenant; and By delivering a copy to the Tenant personally; or Tenant be absent from the mobilehome, by leaving a copy with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobile home and also sending a copy through the mail addressed to Tenant. B. Following notice by City of any amendment, all other provisions of the Lease shall remain in full force and effect in their original form. MARINAPARK RENTAL AGREEMENT PAGE 12 24. TIME OF ESSENCE. Time is of the essence in this Agreement and each and every provision hereof. 25. EMINENT DOMAIN. If the entire Park, or a portion thereof so that, in Owner's sole opinion, the balance remaining is not suitable for a mobilehome park, is taken under the power of eminent domain, ,or is sold to any authority having the power of eminent domain, either under threat of condemnation or while condemnation proceedings are pending, then this Agreement shall automatically terminate on proper notice as of the date the condemning authority takes possession, precondemns, notices its intent to condemn or files a condemnation action or other action which relates thereto. Any award for any taking shall be the property of Owner. 26. INSURANCE. Owner does not carry public liability or property damage insurance to compensate Tenants, Residents, guests or any other person from any loss, damage or injury except those resulting from situations where Owner would be legally liable for such loss, damage or injury. if Tenants desire such or similar insurance coverage, it should be obtained by Tenants, insuring against loss and casualty by fire, earthquake, flooding, theft, other liability and casualty which relates to the mobilehome, other improvements and contents to full insurable value, personal liability and such other insurance as is necessary and appropriate. Tenants are advised to obtain a homeowner's policy in accordance with the guidelines and requirements specified by a lender, and if no lender, then in such sums and for such coverage as would be so required if so financed. 27. PARTIAL INVALIDITY. Certain terms and provisions of this Agreement and other documents referred to in this Agreement refer to restate or summarize provisions of the Mobilehome Residency Law and other applicable laws. In every instance it is intended that these references, restatements and summaries will accurately reflect the law and correctly set forth Tenants' and Owner's rights liabilities duties and obligations to one another and to other persons. The same is true of all of the other provisions of this Agreement and the other documents used by the Park. if any of the provisions of this Agreement or the other documents used by the Park fail in any way to meet the above criteria then it is.unintentional and all such provisions shall be deemed to be automatically revised to correctly reflect the Owner's and Tenants' rights, liabilities, duties and obligations under the provisions of the Mobilehome Residency Law and all other applicable laws. Tenants agree to promptly notify Owner in writing of any instance where Tenants believe that any of the provisiohs of this Agreement or the other documents used by the Park fail to meet the above criteria. If any term or provision of this Agreement or any document referred to in this Agreement or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the remainder of this Agreement or the other document or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Agreement or the other document shall be valid and be enforced to the fullest extent permitted by law. 28. ENTIRE AGREEMENT. A. The resident manager, other personnel, mobilehome dealers, the sales person and seller from whom the mobilehome was purchased by Tenants and other persons are not authorized to make any representations or agreements with Tenants respecting the Community unless those agreements and representations are contained in this Agreement and the other documents and posted signs referred to in it. Therefore, Tenants agree that this Agreement and the other documents and posted signs referred to in it are the entire agreement between Tenants and Owner regarding the subjects covered by this Agreement, other documents and signs. This Agreement, the rules and regulations and the purchase agreement'with Owner constitute the exclusive statement of the agreement and supersedes all prior and contemporaneous agreements, representations and understandings. MARINAPARK RENTAL AGREEMENT PAGE 13 B. This Agreement and the documents referred to herein constitute the entire agreement between Tenants and Owner pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements representations and understanding of the parties, whether written or oral, No promise, representation, warranty or covenant, whether written or oral, not included in this Agreement has been or Is relied on by either party. Each party has relied on his own examination of this Agreement and counsel of his own advisers, and the warranties, representations and covenants in the Agreement itself. Failure or refusal of either party to inspect the premises or improvement, to read the Agreement or other documents or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention or claim that might have been based on such reading, inspection or advice. Additionally, in any interpretation of this Agreement it shall be deemed that this Agreement and its exhibits were written by both parties. C. It is further agreed by and between the parties that the legal relationship that exists pursuant to this Agreement is a rental agreement, and that there are not other legal rights or relationships inferred. Tenants warrant and agree that they have no other rights, title or interest in the property upon which the Park is located or in the above described space other than that which is specifically set forth in this document. Tenants have no right to control the use of the real property upon which the Park is located. 29. DRAINAGE AND GRADING: A. The existing drainage pattern and grading of the space may not be changed without Management's consent. Tenant is responsible for maintaining the space so that water does not accumulate or stand under the mobilehome or on the Space. Water on the space is required to drain off the space in a fashion as to avoid runoff onto another mobilehome space. Tenant shall ensure the skirting attached to the mobilehome is not extended into the grade which would cause moisture or water to accumulate under the mobilehome. All watering systems shall be installed, maintained and adjusted as necessary to avoid water run-off and standing water on the premises. Any berms on the space shall be installed and maintained to avoid the accumulation of water on the space or under the mobilehome. Any masonry skirting must contain sufficient openings as to prevent accumulation of water on the space or under the mobilehome. B. Homeowner warrants to that the mobilehome and areas under the mobilehome and homesite are free of and from mold. Homeowner is also responsible for mold cleanup. The mobilehome should be inspected by a competent home inspection contractor periodically. It is imperative to treat and remove all molds as if potentially harmful. Among the conditions to be checked should be presence of any mold in or about the mobilehome. The following are sources of indoor moisture that may cause problems: flooding, backed —up sewers, leaky roofs, humidifiers, mud or ice dams, damp crawl spaces, constant plumbing leaks, house plants _ watering can generate large amounts of moisture, steam from cooking, shower/bath steam and leaks, wet clothes on indoor drying lines, clothes dryers vented indoors, combustion appliances (e.g. stoves) not exhausted to the outdoors. Homeowner is responsible for avoiding any such conditions and for remediatipn if same should occur. 30. NO THIRD -PARTY RIGHTS. Tenant is not a third -party beneficiary of any other agreement between Owner and anyone. The terms and provisions may differ between rental agreements and rules and regulations in force in the park, and no one may rely on the enforcement of any other's rental agreement or rules and regulations. There are no third party beneficiaries to this agreement. 31. NO RECORDING. No recording of this Agreement on any memorandum of this Agreement may be made without the prior written consent of Owner, which consent may be withheld in Owner's sole discretion. 32. LOT LINES: "Space" includes the area as defined by the lot lines recognized by the local enforcement agency or as legally modified, and includes permanent landscaping and responsibility for drainage and MARINAPARK RENTAL AGREEMENT PAGE14 • surface/subsurface conditions. Actual and apparent use of a space defines the expectations of occupation which Tenant may use and enjoy. Tenant is responsible for space maintenance within the area defined by the lot line markers. Tenant shall maintain your lot line markers as they currently exist and Tenant shall promptly notify management if lot line markers are lost, moved or destroyed. The foregoing defines the enforceable expectations of use, occupation and enjoyment to which Tenant is entitled. Lot line markers and lot lines In the park are for the purpose of establishing the separation and set -backs for installation of mobilehomes, accessory structures and equipment, utilities and appliances as defined by applicable codes and standards and for no other purpose. Therefore, Tenant may not rely on the lot line markers to define the area of use and enjoyment to be expected. Owner reserves the right to modify any lot line at any time provided that such modification does not violate any applicable law. If Tenant or any prior Tenant of the space or any adjoining space has installed landscaping or other improvements that have been discovered to encroach across a lot line over a course of time of previously -established consistent usage, then Tenants of any adjoining spaces agree to continue to allow the use of the area encroached upon as was expected before such discovery. This use of the encroached_ upon area will not, however, affect the location of the lot line markers. Tenant shall maintain the lot line markers as they currently exist. Tenant agrees to indemnify and hold harmless owner and owner's agents, employees, representatives, assigns and successors, against any loss, cost, damage, expense (including attorneys' fees) or other liability incurred or imposed by reason of any person, association, firm or corporation claiming to have an interest in the event that the lot line markers are lost, moved or destroyed. 33. ALTERATIONS AND ADDITIONS. Tenant agrees not to make any alterations, improvements, additions or utility installations to, on or about the homesite or mobilehome, nor install, remove or change any existing improvements, or modify the drainage or landscaping nor make any contract for such work without Owner's prior written consent and approval. Tenant is responsible for all conditions under the mobilehome including grading, compaction, subsidence, drainage, moisture, and ventilation. In giving or withholding consent to any such work, Owner may, at its option, consider and base consent or refusal of consent entirely upon aesthetic considerations and the compatibility of such changes to the Community. if Tenant fails to obtain prior written consent and approval, all such alterations, improvements, additions or utility installations shall be promptly removed at Tenant's sole expense, upon Owner request. 34. OPPORTUNITY TO REMEDY. If, at any time, Tenant believes owner has not fulfilled any legal obligations, Tenant agrees to immediately give owner written notice specifying what Is believed owner has failed to do and indicating what Tenant believes owner must do in order to fulfill these obligations. This notice shall be as detailed as possible so that owner may fully understand Tenant's concerns. Tenant agrees that owner will have at least ninety (90) days, or such longer period as is reasonably necessary, after receipt of Tenant's notice to remedy the problem(s) Tenant has identified. if Tenant fails to promptly give owner this written notice as soon as Tenant is aware of any problem(s), or Tenant fails to give owner a reasonable opportunity to remedy the problem(s), owner will have no liability to Tenant for any expense, cost, damage or injury which Tenant may sustain as a result of the problem(s). If owner fails to remedy -the problem(s) within a reasonable time after receipt of written notice, the problem(s) will be subject to mediation if such an agreement has been reached between the Parties. 35. ENVIRONMENTAL PROTECTION. A. Proper "hazardous substances" and waste disposal is required of all Tenants. Typical hazardous substances include automobile, boat and motorcycle batteries, household batteries, cleaning fluids and solvents, gasoline, paint and other thinners, oils, brake fluids, transmission fluids, radiator fluids and coolants and petroleum products. No Tenants may keep or store, in any place including within or about the mobilehome, homesite, storage shed or elsewhere in the Community, any hazardous substances in excess of the quantities required for typical single family household use. Additionally, Tenants may not cause -any environmental hazard, including any exposure to, contact with, spill or deposit of any hazardous substance or waste. Tenants are prohibited from violating any law relating to environmental protection, hazardous MARINAPARK RENTAL AGREEMENT PAGE 15 substances or waste. This includes, but is not limited to, for example, changing or discarding auto batteries, oil, brake and radiator fluids, automatic transmission fluid, air conditioning gases, or grease in any motor vehicle or machine. Tenants may not cause or allow hazardous substances or waste to be disposed of anywhere in the Community, including, but not limited to, trash cans, trash bins, the sewage disposal system, or any other trash or disposal area in the Community. Such substances must be physically removed from the Community and disposed of elsewhere in compliance with law. In the event of any spill or deposit of hazardous substances in the Community, Tenants are required by law to immediately notify management. Management reserves the right to inspect the homesite for hazardous substances. B. In addition to other remedies allowed by law, Tenants will indemnify and hold the Owner harmless for any such environmentally hazardous act or omission prohibited by this rule or law, including any compensatory damages, statutory damages, punitive damages, expense and attorney's fees and costs sustained by the Community. Tenants will also be required' to reimburse the Community for any actual attorney's fees, litigation expenses, and costs incurred in defending any action against the Community as a result of any environmentally hazardous act or omission of Tenants, Residents, Guests, Contractors and invitees. For purposes of this rule, "hazardous substances" includes without limitation: (1) Those substances included within the definitions of "hazardous substance," "hazardous waste, "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in federal law including C.E.R.C.L.A., R.C.R.A., T.S.C.A., H.M.T.A., or under any other Environmental Law; (II) Those substances listed in the United States. Department of Transportation (D.O.T.) Table [49 C.F.R. 172.101], or by the Environmental Protection Agency (E.P.A.), or any successor agency, as hazardous substances (40 C.F.R. Part 302]; (III) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (IV) Any material, waste, or substance that is: (V) a petroleum or refined petroleum product, (I) asbestos, (ii) polychlorinated biphenyl, (III) designated as a hazardous substance pursuant to 33 U.S.C. § 1321 or listed pursuant to 33 U.S.C. § 1317, (VI) a flammable explosive, or (VII) a radioactive material. 36. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute but, one and the same instrument. 37. NON -RESPONSIBILITY OF PARK. , Owner is not responsible to inspect and approve any work done by Tenant or for Tenant by others, including, but not limited to, the installation of the mobilehome, driveway, walkways, fences or any other equipment or Improvements of any type. To the extent that Owner may inspect or approve something, it is for Owner's own purpose only and Tenant is not entitled to rely on that inspection or approval to ensure that the item has been installed or constructed correctly or that the work has otherwise been done as required. Instead, Tenant is responsible for all required inspections and approvals and Tenant agrees to indemnify and hold Owner harmless from any work which is improperly done. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day and year first above written. Tenant By: By: MARINAPARK RENTAL AGREEMENT PAGE16 •- ! CITY OF NEWPORT BEACH a municipal corporation. Homer Bludau, City Manager APPROVED AS TO FORM: Robin L. Clauson, Assistant City Attorney F.\users\cat\shared\da\Projects\MadnaparMAg\083002.doc MARINAPARK RENTAL AGREEMENT PAGE 17 C.Gw't A;,-P 2C Caruso 9B Proctor 6C Rebus/Campbell 9D Amthor 9C O'Brian 10A Balov 9D Amthor 6D Vargas (family) 8A McPherson 12E Goldberg 12A Grossman 3C Stout Given to City and demolished. October, 1996 $175,000.00 July, 1999 $24,000.00 March, 2000 $9,000.00 April, 2000 $15,000.00 July, 2000 $50,000.00 October, 2000 $5,000.00 (offered to us) November, 2000 $20,000.00 July, 2001 $50,000.00 August, 2001 $48,000.00 December, 2001 $60,000.00 January, 2002 $50,000.00 F:\users\cat\sh ared\cp\Cynd i\Robin\Robin\Letter\RobinM isc.doc BENDETTI ilt%MANAGEMENT GROUP Mobile Home Parlx Management .Services 1176 Main Street Suite 100 Irvine CA 92614 4W August 6, 2002 Mrs. Marlon Hartunlan 18625 Sierra Madre Glendora, CA 91741 Dear Mrs. Hartunian, W- This letter is a request to meet to discuss the current status of your home located on space 12�8. As the property manager, I am concerned that we both have a clear understanding of what is happening and what the requirements of the Park are. Please call me to set up a meeting as soon as possible. You can reach me at (949) 261-6111 extension 211. If you get my recording please leave a message or dial extension 206 and talk to my assistant, Raini. Thank you for you cooperation. Sincerely, BILL- MECHAM Agent for Owner CC: City of Newport Beach (949) 261-6111x211 (949) 261-6660 FAX MARINA PARK :. UnrF. Irvvu¢'F. No. ContnutNr Amocrvr Dlscocrvr Nr.r Anun�rvr 08/08/02 JULG246,292.81 .00 I PAY TO THE ORDER OF 000895 08/'08/02 CITY OF NEWPORT BEACH MARINA,PARK 1176 MAIN STREET,SUITE 100 IRVINE,.CA 92714 PH. (949) 261.611.1 BANKOFAMERICA NEWPORT BEACH; CA 92663 16.6611220 46,292.81 8,95 D:008.95•_ *FORTY SIX THOUSAND TWO HUNDRED NINETY TWO,DOLLARS AND 8'1 CENTS DATE •CHECK •A -MOUNT 08/08/'02 ****46,292.81* CITY OF NEWPORT BEACH ?,.UTHORIZED SIGNATURE 8 SECURRY FEATURES INCLUDED. DETAILS ON BACN.B 11'00089.5i1' 1: 12 200066 11: 0 20 2 2st10 3 7 1 in' JULY 31, 2002 Assets Current Assets Petty Cash: mpmhp Cash -Checking: mpmhp TOTAL Current Assets Fixed Assets $400.00 46,292.81 Site Improvements 53,160.00 Sprinkler System 22,991.00 Equipt/Furn/Fixtures 2,005.68 Furniture/Fixtures/Equipt: mpm 5,720.25 TOTAL Fixed Assets TOTAL Assets 46,692.81 83,876.93 $130,569.74 JULY 31, 2002 Liabilities AND Equity Current Liabilities Accounts Payable: mpmhp TOTAL Current Liabilities $295.94 295.94 TOTAL Liabilities 295.94 Equity Distributions (4,134,535.86) RETAINED EARNINGS - PRIOR 4,219,102.30 Retained Earnings -Current Year 45,707.36 TOTAL Equity 130,273.80 TOTAL Liabilities AND Equity $130,569.74 --- Page: T User. CS / Christine Volanti THE 1 PERIOD ENDED JULY 31, 2002 Revenue Rent -Space: mpmhp Gas,Income TOTAL Revenue Gross Profit Expenses: Operating Expenses Janitorial Supplies/Srvcs Maintenance -Landscape Repairs & Maintenance Trash Disposal Utilties-Electric Utilities -Gas TOTAL Operating Expenses General & Administration Expen Computer Equipment/Services: m Cable Service Insurance-Medical/Life: mpmhp Insurance -Workers Comp Office Expense Postage/Delivery Property Management Fee Salaries Taxes -Payroll Telephone: mpmhp Travel Training/Education TOTAL General & Administration TOTAL Expenses Net Income from Operations Earnings before Income Tax Net Income (Loss) PERIOD TO DATE YEAR TO DATE ACTUAL PERCENT ACTUAL PERCENT $57,526.84 97.9 % 57,526.84 97.9 1,210.00 2.1 1,210.00 2.1 58,736.84 100.0 58,736.94 91.07 1,150.00 369.07 522.40 491.14 620.39 100.0 .2 2.0 .6 .9 .8 1.1 3,244.07 5.5 58,736.84 100.0 58,736.84 91.07 1,150.00 369.07 522.40 491.14 620.39 3,244.07 100.0 .2 2.0 .6 .9 .8 1.1 78.30 .1 78.30 .1 44.96 .1 44.96 .1 797.55 1.4 797.55 1.4 2,579.06 4.4 2,579.06 4.4 656.71 1.1 656.71 1.1 38.56 .1 38.56 .1 2,936.84 5.0 2,936.84 5.0 2,150.00 3.7 2,150.00 3.7 176.88 .3 176.88 .3 241.95 .4 241.95 .4 41.40 .1 41.40 .1 43.20 .1 43.20 .1 9,785.41 16.7 9,785.41 16.7 13,029.48 22.2 13,029.48 22.2 45,707.36 77.8 45,707.36 77.8 45,707.36 77.8 45,707.36 77.8 $45,707.36 77.8 % 45,707.36 77.8 User. CB I Christine Wad GENERAL LEDGER DETAIL REPORIM DETAIL PO PINGS FOR PERIOD 01 ENDING 07131102 ACCOUNTNOJ PER DATE JOURNAL POSTINGREMARKS BEGINNING DAL DEBIT CREDIT NET CHANGE ENDING BAL 1010 Petty Cash: mpmhp 400.00 .00 .00 .00 400.00 400.00 .00 .00 .00 400.00 1020 Cash-Clmckmg: mpmhp 48,890 55 48,890.55 01 07/01/02 CD-110001 A/P C14ECK REGISTER/DIV: 00 2,797.55 46,093.00 01 07/01/02 GJ-J0001 DEP 117-1 17,49125 63,584.25 01 07/01/02 01-10002 DEP 07-1 17,491.25 81,075.50 Ol 07/01/02 GJ-J0003 DEP 117-2 9,542.38 90,617.88 01 07/03/02 GI-J0004 DEP N7.3 8,235.27 98,853.15 01 07/08/02 GJ40005 DEP N7-4 16,748.69 115,601.84 01 07/09/02 CD-R0002 AIP CHECK REGISTER/DIV: 00 48,890.55 66,711.29 OI 07/10/02 CD-110001 A/P CHECK REGISTER/DIV: 00 1,910.76 64,800.53 01 07/11/02 CD-R0002 A/P CHECK REGISTER/DIV. 00 1,163.44 63,637.09 01 07/11/02 G1-10001 DEP 47.5 5,334.65 68,971.74 01 07/11/02 GJ-J0002 DEP 07.6 1,38460 70,356.34 01 07/17/02 CD-R0003 AIP CHECK REGISTER/DIV: 00 522.40 69,833.94 01 07/18/02 CD-R0004 A/P CHECK REGISTER/DIV: 00 2,579.06 67,254.98 01 0724/02 CD-110005 A/P CHECK REGISTER/DIV: 00 2,307.38 64,947.50 01 0729102 CD-R0006 A/P CHECK REGISTER/DIV: 00 1,163A4 63,784.06 Ol 07/31/02 GJ-J0008 REVERSE DUP ENTRY DEP 87-1 17,491.25 46,292.81 48,890.55 76,228.09 78,825.83 2,597.74CR 46,292.81 1550 Site lmpmvcmwns 53,160.00 .00 .00 .00 53,160.00 53,160.00 .00 .00 .00 53,160.00 1560 Sprinkler System 22,991.00 .00 .00 .00 22,991.00 22,991.00 .00 .00 .00 22,991.00 1650 Equipt/Fum/Ftatums 2,005.68 .00 .00 .OD 2,005.68 2,005.68 .00 .00 .00 2,005.68 1700 Fmnture/riximes/Equipc mpm 5,720.25 00 .00 .00 5,720,25 5,720.25 .00 00 00 5,720.25 1800 Deposit -Workers Camp 447.80 447.80 01 07/19/02 GJ40005 WRITE OFT DEPOSIT 447.80 .00 447.80 .00 447.80 447.80CR .00 1900 Suspense 183.30 183.30 Ol 07/19/02 GI-J0004 WRITE OFF 9/00 ENTRY 183.30 .00 133.30 .00 183.30 183 30CR .00 2010 Accounts Payable. mpmhp 341.59CR 341.59CR Ol 07/01/02 AP-R0001 A/P INVOICE ENTRY/DIV: 00 BATCH. ALL 2,797.55 3,139.14CR 01 07/01/02 CD-ROODI A/P CHECK REGISTER/DIV: 00 2,797.55 341.59CR 01 07/03/02 AP-R0002 A/P INVOICE ENTRY/DIV: OO BATCH: ALL 8.10 349.69CR 01 07/09/02 AP-110005 A/P INVOICE ENTRY/DIV: 00 BATCH. ALL 48,890.55 49,240.24CR 01 07/09/02 CD-R0002 A/P CHECK REGISTER/DIV: 00 48,890.55 349.69CR 01 07/10/02 AP-R0001 A/P INVOICE ENTRY/DIV: OO DATCH, ALL 1,561.07 1,910.76CR 01 07/10/02 CD-110001 AIP CHECK REGISTER/DIV: 00 1,910.76 .00 Ol 07/11/02 AP-R0002 A/P INVOICE ENTRY/DIV: OO BATCH. ALL 1,163.44 1,163.44CR 01 07/I1/02 CD-R0002 A/P CHECK REGISTER/DIV: 00 I,I63A4 .00 01 07/17/02 AP-R0003 A/P INVOICE ENTRY/DIV: 00 BATCH: ALL 522AO 522.40CR 01 07/17/02 CD-R0003 A/P CHECK REGISTER/DIV: 00 522AO .00 OI 07/18/02 AP-R0004 A/P INVOICE ENTRY/DIV: 00 BATCH: ALL 2,579.06 2,579.06CR 01 07/18/02 AP-R0005 A/P INVOICE ENTRY/DIV: 00 BATCH: ALL 936,84 3,515.90CR 01 07/18/02 CD-R0004 A/P CHECK REGISTER/DIV: 00 2,579.06 936.84CR 01 0722102 AP-R0006 NP INVOICE ENTRY/DIV: 00 BATCH: ALL 1,370.54 2,307.38CR Ot 0724/02 CD-110005 A/P CHECK REGISTER/DIV: 00 2,307.38 .00 01 0729102 AP-R0007 A/P INVOICE ENTRY/DIV: 00 BATCH: ALL 1,163A4 1,163A4CR 01 0729/02 CD-110006 A/P CHECK REGISTER/DIV: 00 1,163.44 .00 01 07/31/02 AP-R0009 AIP INVOICE ENTRY/DIV: 00 BATCH. ALL 172.68 172.68CR 01 07/31/02 AP-ROO12 A/P INVOICE ENTRY/DIV: OO BATCH- ALL 7830 250.98CR 01 07/31/02 AP-ROO13 A/P INVOICE ENTRY/DIV: OO BATCH: ALL 44.96 295.94CR System Date: 08/OB/02 / 2:37 pm Page:1 Application Date: 07/31/02 User, CS I Christine Volanti DETAIL POSTINGS FOR PERIOD 01 ENDING 07131102 ACCOUNTN01 PER DATE JOURNAL POSTING REMARKS BEGINNING BAL DEBIT CREDIT NET CHANGE ENDING 13AL 2010 Accounts Payable: mpmhp (Continued) 341.59CR 61,334,58 61,288.93 45.65 295.94CR 3150 Distributions 4,085,645.31 4,085,645.31 01 07/09/02 AP-R0005 OOCITYND JUN02 48.890.55 4,134,53586 4,085,645.31 48,890.55 .00 48,890.55 4,134,535.86 3200 RETAINED EARNINGS -PRIOR 4,219,102.30CR 00 .00 .00 4,219,102.30CR 4,219,102.30CR 00 .00 .00 4,219,102.30CR 4000 Rent -Space: rnpmhp 00 .00 OI 07/12/02 GJ-J0003 JUL02 CR TO INCOME ACCTS 58,773.92 58,773.92CR OI 07/12/02 0140003 JUL02 CR TO INCOME ACCTS 1,247.08 57,526.84CR .00 1,247.08 58,773.92 57,526.84CR 57,526 84CR 4030 Gas Income .00 .00 01 07/12/02 GJ-10003 JUL02 CR TO INCOME ACCTS 1,210.00 1,210.000R .00 .00 1,210.00 1,210.000R 1,210.000R 4900 Income Hold Accomd .00 .00 01 07/01/02 GJ40001 DEP 117-1 17,491.25 17,491.25CR 01 07/01/02 GJ-J0002 DEP U74 17,491.25 34,982.50Cl2, 01 07/01/02 GJ-J0003 DEP 117-2 9,542.38 44,524,88CR 01 07/03/02 GJ-J0004 DEP 97-3 8,23527 529760.15CR 01 07/09/02 GJ-J0005 DEP 87-4 16,748.69 69,508,84CR 01 07/11/02 GJ.J0001 DEP 117-5 5,33465 74,843A96R 01 07/11/02 GJ-10002 DEP Jl7-6 1,384.60 76,228.09CR Ol 07/12102 GJ•J0003 JUL02 CR TO INCOME ACCTS 58,736 84 17,491.25CR 01 07/31/02 GJ-30008 REVERSE DUP ENTRY DEP N7d 17,491.25 .00 .00 76,228,09 76,228.09 .00 .00 5050 Jamlonnl Supplies/Srvcs .00 .00 01 07/22/02 AP-R0006 OOPCASH PCASH0717 91.07 91.07 .00 91.07 .00 91.07 91.07 5100 Mantenance- audsmpe .00 .00 01 07/10/02 AP.R0001 OOLANDMA 1932 JUN02 1,150.00 1,150.00 .00 1,150.00 .00 1,150.00 1,150.00 5130 Ration &Maintenance .00 .00 01 07/10/02 AP.R0001 OOGRIFFIN BOARDWALK 220.00 220.00 01 07/10/02 AP.R0001 OOPCASH PCASH0708 149.07 369.07 .00 369.07 .00 369,07 369.07 5300 Trash Disposal .00 .00 Ol 07/17/02 AP-R0003 OOCR&R 43377 522.40 522.AO .00 522.40 .00 52240 522AO 5310 Ulildes-Elcctne .00 .00 01 07122/02 AP-R0006 OOSCE 810628JUL2 491.14 491.14 .00 491.14 .00 491.14 491.14 5320 Utilities -Gas .00 .00 01 07/22/02 AP-R0006 OOSCG 097009JUL2 290A7 290.47 01 07/22/02 AP-R0006 OOSCG 099109JUL2 149.93 440.40 System Date: 08108102 12:37 pm Page, 2 Appllcallon Dale: 07131/02 User, CS / Chrlstine Volanti GENFERAL LEDGER DETAIL REPORIW • DETAIL PO TINGS FOR PERIOD 01 ENDING 07131102 ACCOUNTNO.I PER DATE JOURNAL POSTING REMARKS BEGINNING BAL DEBIT CREDIT NETCHANGE ENDING BAL 5320 Utilities -Gas (Continued) 01 07/22/02 AP-R0006 OOSCG 101209JUL2 179.99 1 620.39 .00 620.39 .00 620,39 620.39 6120 Computer Equipment/Services: in .00 .00 01 07/31/02 AP-ROO12 OOPACIPIC 702285 7830 78.30 .00 78.30 .00 78.30 78.30 6170 Cable Service .00 .00 01 07/31/02 AP-R0013 OOADELPH 263199JUL2AMGR 44.96 44.96 .00 44.96 .00 44.96 44.96 6240 Insurance-Medical/Life: mpmhp 00 .00 01 07/01/02 AP-R0001 OOBENDET JUL02 797.55 797.55 00 797.55 00 797.55 797.55 6280 Insurance -Workers Comp .00 .00 01 07/18/02 AP-R0004 OOPRC•FER 1066842 2,579.06 2,579.06 00 2,579.06 .00 2,579,06 2,579.06 6360 Office Expense .00 .00 01 07/19/02 GJ-J0004 WRITE OFF 9100 ENTRY 18330 183.30 01 07/19/02 GJ-J0005 WRITE OFF DEPOSIT 44780 631.10 01 07/22/02 AP-R0006 OOPCASH PCASH0717 25.61 656.71 .00 656.71 .00 656.71 656.71 6380 Postage/Delivery .00 .00 01 07/10102 AP-R0001 OOPCASH PCASH0708 .60 .60 Ol 07/22/02 AP-R0006 OOPCASH PCASH0717 29.60 30.20 01 07/31/02 AP-R0009 OOBENDET POSTAGIUL2 836 38.56 .00 3856 00 38.56 38.56 6400 Property Management Fee .00 .00 01 07/01/02 AP-R0001 00BMG JUL02 2,000.00 2,000.00 01 07/18/02 AP-R0005 OOBMG JUL02 936.84 2,936.84 .00 2,936.84 .00 2,936.84 2,936.84 6440 Salaries .00 .00 01 07/11/02 AP-R0002 OOBENDET PR071502 1,07500 1,075,00 01 0729/02 AP-R0007 OOBENDET PR073102 1,075.00 2,150.00 00 2,150.00 .00 2,150.00 2,15000 6460 Truces -Payroll .00 .00 OI 07/11/02 AP-R0002 OOBENDET PRO71502 88.44 88.44 01 07/29/02 AP-R0007 OOBENDET PR073102 88.44 176.89 .00 176.88 .00 176.88 176.88 6490 Telephone: rnpmhp .00 .00 01 07/03/02 AP-R0002 OOBENDET 813706JUL2 8.10 8.10 01 0722/02 AP-R0006 OOBENDET 755313JUL2 69.53 77.63 01 07131/02 AP-R0009 OOPACBEL 949723JUL2 164.32 241.95 .00 241.95 .00 241.95 241.95 System Dale: 08/08102 / 2:37 pan - Page: 3 Application Date: 07/31/02 User. CB / Chdsgne Volantl FOR PERIOD 01 ENDING 07131102 I ACCOUNT N01 PER DATE JOURNAL POSTINGREMARKS 6500 Travel 01 07/10/02 AP-R0001 OOPCASH PCASH0708 6520 Training/Education 01 07/22/02 AP-R0006 OOPCASII PCAS110717 REPORT TOTAL: BEGINNING DAL DEBIT CREDIT NETCHANGE ENDING DAL .00 .00 41.40 41.40 .00 41.40 .00 41AO 41AO .00 .00 43.20 43,20 .00 43.20 .00 43.20 43.20 .00 276,957.87 276,957 87 .00 00 System Dale: 08/OBl02 / 2:37 pm Page. 4 Appllcahon Date: 07/31/02 User: CB / Christine Volantl r DONALD R LINCOLN ENDEMAN, LINCOLN, TUREK & HEATER LLP KENNE H C. TUREK ATTORNEYS AT LAW HENRY E. HEATER DAVID SEMELSBERGER 600 "B"STREET, SUITE 2400 JAMES C. ALLEN SAN DIEGO, CALIFORNIA 92101-4582 GEORGE H. KAELIN III LINDA B. REICH ERIN M. WINDSOR KIMBERLY K. HARRIS July 23, 2002 OF COUNSEL RONALD L. ENDEMAN Robin L. Clauson, Esq. David Kiff City of Newport Beach Office of the City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 Re: Marinapark Lease Changes Dear Ms. Clauson and Mr. Kiff: TELEPHONE (619) 544-0123 FACSIMILE (619)544-9110 WEB SITE www.elthlaw.com EMAIL ghk@elthlaw.com VIA FACSIMILE AND U.S. MAIL Thank you for lunch the other day. This letter follows our conversation regarding the proposed Marinapark lease. During that conversation, we discussed the apparent disconnect between the City's proposed intent and the actual terms of the proposed lease. You had requested that I forward to you the terms that should be either removed or modified. Before doing so, there are a few items that I would like to address briefly: 1. The City has permanently removed homes from spaces 2C and 10A. During our meeting, it was represented that the removal of these homes and permanent vacant status of the spaces was not related to the pending closure of the park. Instead, it was represented that it was nearly physically impossible to install a new home on these spaces. However, space 2C has a wide access point that appears readily able to support the installation of a home. In addition, I spoke to residents with beachfront spaces similar to 10A who have had homes pulled in by a tractor over the beach and installed by simply removing and replacing the ivy that borders the beach. That type of installation has been successfully completed within the past eight years. Could you please send to me any estimates or contrary advice you have received from companies who install mobilehomes. If you do not have any such information, you may find that installation of homes into these spaces is easier than you think. 2. Currently, the owner of space 12B is trying to sell the home. She had a significant offer which was revoked when the buyer was informed that the City was claiming a right of first Robin L. Clauson, Esq. David Kiff July 23, 2002 Page 2 buyer was informed that the City was claiming a right of first refusal and that the rent was going to escalate by 50%. Because of the City's involvement with the sale at space 12B, that owner is going to be forced to sell to the City for pennies on the dollar. In the event you decide to keep the right of first refusal and rent escalation in the lease, could you please explain a motive other than gaining control of the space for future closure. 3. I would also like to address your outside counsel's position that the relocation rights under Government Code section 65863.7 could be waived. I urge you to personally review the relevant Mobilehome Residency Law ("MRL") section (798.56(g), the Government Code section (65863.7) and the case of Keh v. Walters (1997) 55 Cal.App.4th 1522. In Keh, the park owner attempted to close the park one space at a time in compliance with Civil Code section 798.56(g). The actions, however, were not in compliance with Government Code section 658653.7. The park owner argued that the two statutes should be applied separately. The Court responded: "Such an interpretation is untenable. The two statutes were clearly intended to function together as an integrated scheme, as is evidenced by the cross references contained in Civil Code section 798.56(h) and Government Code sections 65863.7(c) and 65863.8." Id. at 1535. Section 798.56(h) of the MRL further cross-references specifically Government Code section 65863.7(i) which deals with a local governmental agency's obligation "to take steps to mitigate the adverse impact of a change of use." Based upon this cross-reference and the finding in Keh that such cross-reference results in the application of both statutes as "an integrated scheme", I� do nor understand how your outside counsel can take the position that the statutes can be applied and waived independent of one another. I suggest that you get their position in writing if you plan to adopt it. Moreover, I again request any written analysis that is contrary to the above. 4. Finally, during our meeting it was suggested that the tenants had agreed in the past to give up relocation rights in exchange for lower rents. Further, it was questioned as to why the residents agreed to a waiver and now are questioning that waiver. First, I would invite you to review all of the old leases. I have done so. The waiver was in exchange for the City's agreement to offer a lease. The MRL, however, requires that a lease be offered. Hence, I think you have a consideration issue. Lower rent is never mentioned as being related to the H Robin L. Clauson, Esq. David Kiff July 23, 2002 Page 3 issue. Second, at the time of the initial purported waiver, it was represented in that lease that the park was to be eventually closed if converted "to a public recreational use." Many tenants did not think that such a use was a reality. Indeed, the proposed uses they are hearing now are quite different. Hence, many thought the waiver was not going to affect them at all. Turning to the specific provisions of the lease that should be either deleted or modified, we request the following: 1. Recital F - amend to read "... a portion of the Property MAY consist of tidelands." 2. Recital J - add "Nothing in this lease is intended to waive or alter any of the rights of Lessee with respect to the Mobilehome Residency Law or the State Zoning and Planning Act. It is the intent of City to comply with such laws with respect to the change of use of the Property contemplated in this lease." 3. Section 2B - amend to read: "...If the City does not provide notice in compliance with Civil Code section 798.56(g) to Lessee by September 15, 2002, of City's intent to close the Park...." 4. Section 3B - delete in its entirety. See Relocation study by the City. 5. Section 3C - delete unless reasonable rules not inconsistent with the lease are actually attached. 6. Section 4A - delete. It is ambiguous what consideration is being referenced for what. 7. Section 4B(iii) - delete the acknowledgment that the rent is "less than market rent for this space based upon a survey of similar beachfront properties." The City had William Hansen set the rental amount at the Fair Rental Value. Moreover, the appraiser found that to have "market rent" the property must be "available in a competitive open market." The appraiser found that element lacking at Marinapark. Therefore, it is not accurate to say that the rent is below "market rent." The City has effectively killed the market. I am informed that during a conversation between Dave Kiff and John Rettberg, Dave Kiff conceded this fact in light of his comments to the City counsel. Robin L. Clauson, Esq. David Kiff July 23, 2002 Page 4 8. Section 4C - delete the entire provision including both' the acknowledgments and waiver language. Moreover, you may wish to replace that with: "City reserves the right to take the position that, through the 1985 Lease and the 2000 Amendment, any adverse impact of the upcoming change of use has been compensated. Lessee disagrees with such assertion." 9. Section 4D(i) - delete or make in compliance with Section 798.56(g) of the MRL. I am curious how you give such notice when it was represented in our meeting that the City is not necessarily closing the park at any time. Rather, the City is supposedly merely "investigating alternative uses." 10. Section 4D(ii) - delete or amend to read: "In the event City proceeds in accordance with the Mobilehome Residency Law and the State Zoning and Planning Act to change the use of the property, Lessee shall remove his or her home in compliance with such laws." 11. Section 5 - delete the last paragraph which increases the rent by a factor of 30 to 50% upon sale. 12. Paragraphs 8B and 8F - delete. 13. Paragraph 15 - delete last paragraph which requires indemnity related to change of use obligations. 14. Paragraph 16C - delete. 15. Paragraph 16D - delete. 16. Paragraph 21B - delete. 17. Final waiver below signature block - delete. After you have reviewed this letter and modified the lease, please forward a modified lease for my review. In the event you have any questions regarding the above, please give me a call. Sincerely, eeor H. Kaelin, III GHK:smb 5461.001\City 07 23 02 JL11 12 02 03:35p ELTH 6195449110 p.1 ENDEMAN, LINCOLN, TUREK & HEATER LLP TELEPHONE DONALD R. LINCOLN KE`METH C. TUREK ATTORNEYS AT LAW (619) 544-0123 HENRY E. HEATCR 600 ,So STREET, SUITE 2400 FACSIMILE DAVID SBMELSBERGER SAN DIEGO, CALIFORNIA 92101-4552 (619) 544-9110 IAMES C. ALLEN GEORGE H. KAELUI lit WEB SITE LINDA B. REICH NYW W.Blthlaa'.cmn ERIN M. WINDSOR KIMBERLY K. HARRIS OF COUNSEL RONALD L ENDEMAN FACSIMILE COVER LETTER PLEASE DELIVER THE FOLLOWING TO: NAME: Robin L. Clauson, Esq. FAX PHONE: (949) 644-3139 FROM: George H. Kaelin, III DATE: July 12, 2002 CLIENT NUMBER: 5.461.001 TOTAL NUMBER OF PAGES 7, INCLUDING THIS COVER PAGE, AND DOCUMENTS AS FOLLOWS: Letter dated July 12, 2002, addressed to Robin L. Clauson and David Kiff IF YOU DO NOT RECEIVE ALL OF THE PAGES, PLEASE CONTACT Sharon IMMEDIATELY. PHONE: (619) 544-0123 FAX PHONE: (619) 544-9110 UNLESS OTHERWISE INDICATED OR OBVIOUS FROM THE NATURE OF THE TRANSMITTAL, THE INFORMATION CONTAINED IN THIS E'ACSIHFLE MESSAGE IS ATTORNEY -CLIENT PRIVILEGED OR CONFIDENTIAL INFORMATION AND EXEMPT FROM DISCLOSURE, INTENDED FOR THE SOLE USE OF THE"INDIVIDUAL OR ENTITY NAMED ABOVE. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE TO DELIVER IT TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED IMMETHIS IATEL C014HU I ATION IN ERROR US COLLECT OR AREONOT SURE WHETHER IT IS PRIVILEGED OR CONFIDENTIAL, PLEASE AND RETURN THE ORIGINAL MESSAGE TO US AT THE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE AT OUR EXPENSE. THANK YOU- JUL-12-2002 15:47 6195449110 961/ ME JL(I 12 02 03:35p ELTH • 6195449110 0 P.2 DONALD R. LINCOLN KENNETH C. TUREK HENRY E. HEATER DAVID SEMELSHERGL•R DAMES C. ALLEN GEORGE H. KAELIK III UNDA H. REICH ERIN M. WINDSOR KI MBERLY K. HARRIS OF COUNSEL RONALD L ENDEMAN ENDEMAN, LINCOLN, TUREK & HEATER LLP ATTORNEYS AT LAW 600 "B" STREET, SUITE 2400 SAN DIEGO, CALIFORNIA 92101-4582 July 12, 2002 Robin L. Clauson, Esq. David Kiff City of Newport Beach Office of the City of Newport Beach PO Box 1768 Newport Beach CA 92658-a915 RE: Marinapark Lease Extension Dear Ms. Clauson and Mr. Kiff: TELEPHONE (619)544.0123 FACSIMILE (619) 544-9110 WEB SITE www.clthlaw.com EMAIL ghk@ellhlaw.com VIA FACSIMILE AND U.S. MAIL My firm has recently been retained to review the current proposed Marinapark lease. Our review has resulted in a finding of numerous provisions in the proposed lease which are directly contrary to the Mobilehome Residency Law ("MRL"). We currently have a meeting scheduled with you to discuss our views on July 16, 2002. This letter is in response to your request to have our analysis in writing prior to that meeting. I apologize for not getting this letter to you sooner. However, I was out of the country for the past two weeks. In addition, after returning, I spent two days taking my wife to and from urgent care due to an - illness she acquired during our travels. The following provisions of the lease are contrary to the MRL: 1. SECTIONS 4CSD AND 16: These sections of the -lease require each resident to waive their relocation rights. That is directly contrary to Civil Code' Section 798.19 which states that "no rental agreement shall contain a provision by which the homeowner waives his or her rights under the provisions of Article 1 to 8, inclusive of this Chapter.' Any such waiver shall be deemed contrary to public policy and void." As explained below, notice and payment of relocation benefits are integral aspects of the change of use laws embodied in the MRL, the Government Code and City of Newport Beach local ordinance. Case law explained below holds that these laws were 'All references are to the Civil Code unless otherwise indicated. JUL-12-2002 15:48 6195449110 96 WEE a41 1.2 02 03:36p ELTH SISS449110 p.3 • • Robin L. Clauson, Esq. David Kiff July 12, 2002 Page 2 "clearly intended to work together as an integrated scheme" which cannot be waived. First, in closing Marinapark, the City will be required to evict the tenants. Section 798.55 (Article 6 of the MRL) contains the legislative intent that mobilehome residents shall be entitled to "unique protection" regarding actual and constructive evictions. Section 798.56 (Article 6 of the MRL) states that there are only seven authorized reasons to terminate a tenancy. The Section applicable to your proposed closure of Marinapark is Section 798.56(g). The City is only entitled to evict a tenant in conjunction with a closure/change'of use of the Park if the City has complied with the "requirement's of California Government Code Section 65863.7 and those of the "local governmental board, commission., or body." Recently, in Keh v. Walters (1997) 55 Cal.App.4th 1522, a park owner attempted to avoid relocation requirements by construing Section 798.56 and Gov. Code Section 65863.7 separately. Id. at 1534-1535. The court flatly rejected that argument: Such an interpretation is untenable. The two statutes were clearly intended to function together as an integrated scheme, as is evidenced by the cross-references contained in Civil Code section 798.56, subdivision (h)) and Government Code Section 65863.7, subdivision (c) and 65663.8" Id. at 1535. The Court further explained the rational of such an "integrated scheme": "The.purposes of Government Code Section 65863.7 are tc ensure that the local governmental body reviews the impact on the mobilehome tenants of a change of use'o£ the property, that mitigation measures are considered and that the tenants are involved in the process." Id. at 1535 (emphasis added) Your lease attempts to force residents to waive rights which Government Code Section 65863.7 (as incorporated into the non -waive able MRL) was intended to provide. Indeed, Government Code Section 65863.7(a) specifically refers to the "relocation costs" and notice requirements for the benefit of displaced residents. It requires the local agency to determine the relocation benefits necessary to mitigate the "adverse impact" of relocation. Moreover, Section 798.56 (g)(2) of the MRL specifically cross references the local governmental ordinance on permitting for closure. Hence, there can be no doubt that the local ordinance regarding closure is also part of the "integrated scheme" on the relocation issues. JUL-12-2002 15:48 6195449110 96i P.03 Jyl 12 02 03:36p ELTH 6195449110 p.4 Robin L. Clauson, Esq. David Kiff July 12, 2002 Page 3 Here, the City of Newport Beach has a local ordinance on the issue. That is Section 20.51.060 which mandates that a mobilehome park "relocate or appropriately compensate" each displaced resident. Apparently, the City of Newport Beach has calculated the costs related to such relocation under its own ordinance for Marinapark. Please consider this letter the second formal request on behalf of the residents to be provided with a copy of the relocation study for Marina Park. In the event you feel that as the local legislative body you may garner some different treatment under the above laws, I would direct you to Government Code Section 65863.7(i) which states that the above laws (as integrated by Keh v. Walters) apply when the local governmental body's decision results in the closure or change of use. "in this case, the local governmental agency is the person proposing the change of use £or purposes of preparing the impact report required by this section and is required to take steps to mitigate the adverse impact of the change of use..." Ibid (emphasis added). Again, this subdivision (i) of the Government Code Section 65863.1 is specifically incorporated by reference into the non -waive able Article 6 of the MRL (Section 798.56(h). In a nutshell, regardless of how bold the type, the waiver of relocation rights is unenforceable under Civil Code Section 798.19. For the City to convince a judge otherwise, it will have to argue that residents who are entitled to "unique protection" are able to be presented with a lease that they must sign to remain in a park which requires waiver of rights which case law finds to be part of an "integrated scheme" that cannot be waived. In addition, the City would have to convince a judge that Keh v. Walters was wrong when it found that the legislative intent of a superior legislative body was to prevent the very conduct of the City (i.e., prevent the residents from having the adverse impact of closure calculated and compensated). Keh v. Walters at 1535 (purpose of Government Code Section was to "ensure that the local governmental agency" assess the impact of relocation and consider appropriate "mitigation measures"). Finally, any effort of the City to avoid paying relocation benefits by such a waiver would run afoul of further parts of the opinion of Keh v. Walters which specifically references the interpretation of the relocation laws in a way to close "loopholes" that would allow park owners to avoid compliance with relocation laws. Id. at 1539. JUL-12-2002 15:49 6195449110 96% P.04 Jv'l 12 02 03:36p ELT 618549110 p.5 Robin L. Clauson, Esq. David Kiff July 12, 2002 Page 4 Having spent more than four months in a continuous trial on closure issues and having been involved in the closure of numerous parks (both on the tenant and developer/city side), I would be interested to hear an analysis which would allow a park owner or city to avoid paying relocation benefits via a simple waiver. 2. SECTIONS 5 AND 8: Sections 5 and 8 of the lease interfere with the residents right to sell their home in -place. They do so by: 1) requiring a Purchaser to sign a waiver against public policy as set forth above and expressly disallowed in Civil Code Section 198.77 related to new purchasers; 2) giving the City the right of first refusal (who is going to bid on a home that can be purchased out from under them once they agree upon a price with the seller); and 3) requiring a 30 to 50 percent monthly rental increase ($315 to $775 charge) in order to sell or transfer a home in -place (Section 5). Sections 5 and 8 of the lease are in violation of the intent of Sections 798.72 and 798.73 of the MRL and the laws regarding relocation compliance. Sections 5 and 8 of the lease contain an unveiled effort by the City to eliminate.spaces from being rented in the Park. The City is attempting to do so by interfering with sales in the park. Section 798.72 entitled "NO TRANSFER OR SELLING FEE" prohibits the charging of a fee as a condition of allowing a sale. Section 798.73 mandates that a tenant shall be allowed to sell his or her home and have it remain in the park. Sections 5 and 8 of the lease require a payment of $335 to $775 per month as a condition for allowing a new purchaser. That is impermissible in light of the fact that the City is attempting to close the park. Indeed, if the law allowed rent increases on sale that bore no relation to actual increased operating costs, any park owner could avoid closure laws by merely increasing rents to force residents out and thereby avoid paying relocation assistance. Your counsel may be relying on case law to get around the intent of the MRL. Namely, the case of Vance v. Villa Park (1995) 36 Cal.App.4th 698. In that case, park rent increased 10% upon sale to a third party. The court upheld this practice by. the park owner because: 1) "The rent increases bear a reasonable relationship to costs"; 2) the homeowner was free to reject that provision of the lease; and 3) the parties were free to adopt a different method of timing Iof increases. Here, the City is not "freely" negotiating with the tenants a method of rental increase JUL-12-2002 15:50 6195449110 96% P.05 Jyd 12 02 03:36p ELTH 6195449110 p.6 6 • Robin L. Clauson, Esq. David Kiff July 12, 2002 Page 5 for the City to recapture capital expenditure costs. Rather, the City is charging a 50% of rent fee in an unveiled attempt to PREVENT a sale and to avoid payment of relocation benefits. The residents have been given the impression that they will be evicted or otherwise penalized if they don't agree. Any judge will see that the current lease is attempting to use the Vance case to accomplish a less expensive closure of the park and not a legitimate rental increase as in Van Moreover, the above interference with sales has resulted in the City taking title to two homes which have been taken off the rental market. You should be aware that the City cannot close this park one space at a time in order to he relocation obligations. Keh v. Walters at 1535. The City may wish to pull the documentation related to the case of Earle v. Wong if it intends to keep the above provisions in this lease. In that case, my partner James Allen and I obtained a $12 million dollar judgment (upheld on appeal) against a park owner who used interference with the right to sell in place as his means of closing a park one space at a time. The use of escalating rent to accomplish closure is but another shade of the conduct found unlawful in the -Wong case. In addition to having the above infirmities, the proposed leases require tenants to make factual admissions that are not accurate. These relate to primary residence, tideland issues, and findings of fair market rent which conflict with actual findings of your own staff. It is apparent that your counsel is inserting these provisions to strengthen your eventual closure case. Again, the laws regarding compliance with relocation/ closure laws are not amenable to circumvention by such means. Moreover, you cannot evict a tenant for failing to sign off on an erroneous factual finding. Indeed, the law provides:. "the cis for eviction should be limited to those which are groun critical, such as non-payment of rent, detrimental conduct by the tenant etc.." Keh v. Walters at 1533. The bottom line is that the lease is clearly intended to set up an eventual closure of the park without compliance with the relocation laws. The lease should therefore be re -written in a manner which recognizes the relocation rights of the tenants in the event the City takes steps to legally change the use of the park. JUL-12-2002 15:51 6195449110 96 -,J,;11 12 02 03:37p ELTH 6195449110 p.7 il Robin L. Clauson, Esq. David Kiff July 12, 2002 Page 6 I look forward to meeting with both of you. If you have any questions prior to the meeting, give me a call. GHK:smb 5461.001 Sincerely, 04A H. Kaelin, III JUL-12-2002 15:51 6195449110 98% P.07 CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 (949) 644-3131 June 28, 2002 Cary D. Lowe JENKINS & GILCHRIST, LLP 55 South Lake Avenue Suite 650 Pasadena, CA 91101 RE: Marinapark-Lease Extensions Dear Cary: VIA FACSIMILE (626) 304-9711 AND U.S. REGULAR MAIL This letter is in response to your revised letter dated June 27, 2002, requesting an extension of time for the Marnapark tenants to review, sign and return the proposed lease extension. As you have represented that the tenants did not receive the new leases until June 20, 2002, 1 would agree that the timeframe to sign and return those leases should be extended to July 20, 2002. I recognize that this request for extension is due to concerns raised by a new attorney that was recently brought in to review the lease. While Staff does not believe that there is anything irregular or illegal about the terms of the lease I have requested a written explanation as soon as practicable before our meeting on July 16, 2002. Please forward any correspondence to both myself and to Dave Kiff as soon as you receive lt. Very truly yours, Robin L. lauson, Assistant City Attorney RC:cp cc: Dave Kiff, Assistant City Manager F:\users\cat\shared\Projects\MarinaparkMetter\CUeaseext.doc 3300 Newport Boulevard, Newport Beach 6 0 CITY OF NEWPORT BEACH MEMORANDUM TO: Marinapark Resident FROM: Dave Kiff, Assistant City Manager DATE: June 7, 2002 RE: The 2nd Amendment and Extension of Lease Sb oks 10 QKWA- /lMoc &d +0 As you are aware, on Tuesday, May 28, 2002, the Newport Beach City Council approved a 2nd Amendment and Extension of Lease ("Lease Extension") to your tenancy at Marinapark. The Lease Extension is attached for your review and signature. Joe Albano and Bill Mecham of Bendetti Property Management will be distributing and collecting the Lease Extensions and this memo for us. Please read the entire Lease Extension before signing it. Pertinent provisions include, but are not limited to: • Term. A one-year term starting March 16, 2002 and extending until March 15, 2003 with two additional one-year optional terms that the City would exercise at its discretion. • Options. By September 15, 2002, the City must notify residents of its intent to close Marinapark. If we do not so notify residents, the first one-year option will be deemed enacted. In other words, you would have until at least March 15, 2004 unless you're told differently by September 15, 2002. The second one-year option is exercised similarly. • Waiver of Relocation Benefits. The Lease Extension continues your current waiver of any relocation assistance at the time the Park closes. • Rent Increase. Rents will be raised effective September 1, 2002 to the amounts shown in Table 1. Rents may increase again by the consumer price index effective March 31, 2003. Furthermore, if you decide to sell your coach, the rent paid by the buyer will increase by a factor of 1.5 for A, B, and F sites and by 1.3 for C and D sites also as shown in Table 1. City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659.1768 6 Marinapar* rw June y, 2002 Page 2 Table Current Monthly Rent 1 $ 1225 $ 925 $ 865 Monthly Rent 09/01/02 to $ 1,550 $ 1,125 $ 1,050 03131/03 Monthly Rent Paid by New Buyer 2,325 $ 1,463 $ 1,365 Upon Sale of CCoach$ Please note that we did not attach Exhibit B (the Rules and Regulations) or Exhibit C (the Mobllehome Residency Law) to these versions of the Lease Amendment. Bill Mecham will be working with your representatives to re -write and update the Rules and Regulations. Once finalized, the revised Rules and Regulations will be attached to the document that we place in the City's official files. Similarly, you have already received a copy of the Mobllehome Residency Law - rather than redistribute those many pages, we will add them to the City's official files as a Master Copy. If you'd like another copy of Exhibit C at any time, you can call Bill at 949/261-6111. Please direct any questions you may have about this Lease Extension to us at 949-644-3002. Joe and Bill will be able to assist you as well. Please sign the Lease Extension by July 1, 2002. Please make a copy of the lease for your own files. When you've made your copy, please give the signed lease to Joe at the Park. If you decide not to sign, you will be deemed in a holdover phase and may be subject to a higher rent payment. I recognize that the discussions and delays surrounding this Lease Extension have been difficult for you. And despite Marinapark's uncertain future, we will do all we can to make your remaining tenancy pleasant and reflective of the great quality of life that has been a hallmark of Marinapark. ATTACHMENT: 2W Ametdaunt and Exlemlonof Lease SECOND AMENDMENT AND EXTENSION OF LEASE This Second Amendment and Extension of Lease (Amended Lease), entered into this day of June, 2002 by and between the CITY OF NEWPORT BEACH, a municipal corporation and Charter City (City) and (Lessee), is made with reference to the following facts, the materiality and existence of which is stipulated and agreed by the Parties: A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15t' Street and 18th Street in Newport Beach, commonly known as Madnapark, generally described in Exhibit "A" (Properly). B. The Property was under lease prior to the effective date of the Charter of the City of Newport Beach and, pursuant to the provisions of Section 1402 of the City Charter, the City Council is empowered to authorize execution of this Lease by the Mayor. C. Prior to the effective date of this Amended Lease, City leased 58 mobilehome spaces on the Property pursuant to a standard -lease dated March 24, 1976, (hereinafter "1976 Lease"), which would have expired on September 30, 1985, subject to the right of the Lessee to extend the tens for a five (5) year period under certain conditions. D. Prior to the expiration of the 1976 Lease, City leased the same 58 mobile home spaces on the Property pursuant to a lease that would have expired on March 15, 2000 (1985 Lease) but for an Amendment and Extension of Lease which expires March 15, 2002 (2000 Amendment). E. The City Council actively solicited proposals for non-residential uses at Marinapark and, as of February 2002, has deemed a non-residential use of Madnapark the most appropriate land use for the property. As such, City Council intends to close the mobile home park no later than March 15, 2005. F. The Parties acknowledge that, subsequent to the effective date of the 1985 Lease, California State Lands Commission staff has discovered evidence that a portion of the Property consists of tidelands. City and Lessee have, in the past, claimed that all or substantially all, of the Property leased for mobilehome residency purposes is uplands owned by City, and City and Lessee have discussed evidence to support that claim. 0 i G. State Lands Commission staff has indicated that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, City and Lessee may dispute that position. H. The City Council finds and declares that'the terms and conditions of this Amended Lease comply, and are consistent, with the Charter of City, including, without limitation, the provisions of Sections 200 and 1402 of the Charter. The City Council also finds and declares that the provisions of this Amended Lease are consistent with the plans, policies, rules and ordinances of City. The City Council also finds that this Amended Lease Is consistent with the General Plan and the Land Use Plan of the Local Coastal Program. J. The terms and conditions of .this Amended Lease are in compliance, and consistent, with the provisions of the Mobilehome Residency Law (Section 798-et seq. of the California Civil Code) and the State Zoning and Planning Act (Sections 65863.7 and 65863.8 of the California Government Code). K. The purpose and intent of the Parties is to amend, and extend the term of, the 1985 Lease and the 2000 Amendment so that the Lessee may continue to.reside on the Property for the year commencing March 15, 2002 while the process of preparing the Property for a different use continues. City may allow short extensions of this Second Amended Lease but not past March 15, 2005. NOW, THEREFORE, the Parties.do hereby mutually agree as follows: 1. The City leases, and Lessee accepts the lease of, the portion of the Property described as space as shown on Exhibit W (Premises). 2. TERM. A. Term. The tenancy created by this Amended Lease shall extend the expiration date of the 1985 Lease as modified by the 2000 Amendment, to March 15, 2003 (Term), unless extended as provided in subsection B below, or earlier terminated in accordance with the terms of this Amended Lease and the Mobilehome Residency Law. B. Notice of Park Closure. If City does not provide notice to Lessee by September 15, 2002 of City's intent to close the park, then the Amended Lease is deemed extended until March 15, 2004. During the first one-year extension, if City does not provide notice to Lessee by September 15, 2003 of City's intent to close the park, then the Amended Lease is deemed extended until March 15, 2005. If the Amended Lease is not extended for any reason, there shall be no holdover. 2 3. USE OF PREMISES. A. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. Permitted occupants are: (i) Lessee; (ii) An additional person if Lessee is living alone; (iii) Family members entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term'short term guest' shall mean any person who does not stay with Lessee for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may occupy the Premises with the prior written consent of City. B. Lessee agrees that the primary residence requirement is fundamental to this lease, stipulates that the residency requirement will not constitute an undue burden or hardship on Lessee in light of the time allowed for compliance in the 1985 Lease, and, subject to the provisions of Section 8 of this Amended Lease, Lessee agrees that the Premises shall be Lessee's primary residence unless this requirement is waived by the City Council due to hardship. Lessee shall provide satisfactory proof of residency to City. C. Lessee agrees to comply with the Rules and Regulations of. Madnapark (Exhibit "B") and further agrees these Rules and Regulations. may be amended as provided in the Mobilehome,- Residency Law or other relevant statute. 4. CONSIDERATION. X Introduction. City and Lessee agree that the terms and conditions of the 1985 Lease, the 2000 Amendment and this Amended Lease preserve and protect substantial and important rights and benefits, economic and personal, that each Party would not otherwise be entitled to receive. These economic and personal rights and benefifs are the consideration for the 1985 Lease, the 2000 Amendment and this Amended Lease. The more important rights and benefits gained and given up by each Party are specified in this 3 0 C. section and the Parties agree that, like the Lease should be interpreted such that each benefits Identified in this Section. B. Consideration to Lessee. 1985 Lease, this Amended Party receives the rights and (1) As consideration for Lessee's approval of this Amended Lease, City commits to maintain the Property as a mobilehome park until March 15, 2003. (ii) The City also commits that, If it decides to lease this space as a mobilehome space during the period from March 15, 2003 through March 15, 2005, it will not terminate or fail to renew this Amended Lease with the Lessee and instead lease the Premises to another person. (111) Additional consideration for Lessee's approval of this Amended Lease is the right to occupy the Premises subject to the payment of rent in the sum of through August 31, 2002 at which time the rent shall be Although this sum is higher than the rent paid under the 1985 Lease and the Amended Lease, it Is less than the market rent for this space based upon a survey of similar beach front properties. Consideration to City. As consideration to City, Lessee agrees and acknowledges that City may convert the Property to a different use upon expiration of this Amended Lease, or shortly thereafter. Lessee agrees that, If City chooses to close the mobilehome park on the Property it may do so without obligation to pay relocation benefits or provide other forms of relocation assistance. Lessee acknowledges that the terms of the 1985 Lease, the 2000 Amendment and this Amended Lease constitute full and adequate mitigation of any adverse impact on Lessee of any conversion of the Property to a non-mobilehome use, and the extended term of the 1985 Lease and this Amended Lease gives Lessee sufficient time to secure replacement space In another mobilehome park or other aitemative housing. Accordingly, LESSEE HEREBY WAIVES, GIVES UP THE RIGHT TO RECEIVE, AND RELEASES CITY FROM ANY OBLIGATION TO PAY, RELOCATION BENEFITS, OR ANY OTHER FORM OF RELOCATION ASSISTANCE OR OTHER PAYMENT OR CONSIDERATION THAT ARISE OUT OF, OR ARE IN ANY WAY RELATED TO: (1) •THIS 1EASE OR ANY FUTURE TENANCY; 4 (2) THE ULTIMATE TERMINATION OF LESSEE'S TENANCY PURSUANT TO THE 1985 LEASE, THE 2000 AMENDMENT OR THIS AMENDED LEASE, OR THE TERMINATION OR EXPIRATION OF ANY SUBSEQUENT TENANCY HOWEVER CREATED; (3) THE CONVERSION OF THE PREMISES TO ANY USE OTHER THAN A MOBILEHOME USE; (4) THE DISPLACEMENT OF LESSEE FROM HIS AND/OR HER PRIMARY RESIDENCE; (5) ANY FEDERAL, STATE OR LOCAL LAW, PLAN & POLICY OR RULE WHICH RELATES TO SUCH DISPLACEMENT, OR REQUIRES THE MITIGATION OF THE IMPACTS CAUSED BY DISPLACEMENT. THIS RELEASE BY LESSEE, NOTWITHSTANDING SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES THAT: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR," RELEASES ALL CLAIMS OR LOSSES, WHETHER KNOWN, UNKNOWN, FORESEEN OR UNFORESEEN, WHICH LESSEE MAY HAVE AGAINST CITY. LESSEE UNDERSTANDS AND ACKNOWLEDGES THE SIGNIFICANCE AND CONSEQUENCE OF THIS RELEASE AND OF THIS SPECIFIC WAIVER OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE AND ASSUMES FULL RESPONSIBILITY FOR ANY DAMAGES, LOSS OR CLAIM THAT LESSEE MAY INCUR AS A RESULT OF THE CONVERSION, TERMINATION AND/OR DISPLACEMENT REFERRED TO ABOVE. LESSEE IS FREELY AND VOLUNTARILY EXECUTING THIS AMENDED LEASE, AND LESSEE, IN EXECUTING THIS RELEASE, HAS NOT RELIED UPON ANY INDUCEMENTS, PROMISES OR REPRESENTATIONS MADE BY CITY OR ITS OFFICERS, AGENTS, REPRESENTATIVES OR EMPLOYEES, OTHER THAN THE COMMITMENTS AND COVENANTS CONTAINED WITHIN THIS AMENDED LEASE. D. Provisions related to Consideration. (i) This Amended Lease constitutes notice that City reserves the right to physically convert the Premises to a non-mobilehome use on or about March 16, 2003. 5 5. (ii) Upon expiration of the term of this Amended Lease, Lessee shall, within sixty (60) days, remove any mobilehome or recreational vehicle, structure, improvement, personal property or equipment located upon the Premises. Upon the expiration of this sixty (60) day period, City shall have the right to remove and dispose of any and all property improvement structures, personal property (including the mobilehome) or any accessory equipment that remain on the Premises. The cost of removing such shall be bom by the Lessee unless the Lessee has given written notice to Citynot less than thirty (30) days prior to the expiration of this Amended Lease or applicable renewal thereof, whichever is later, of Lessee's desire to abandon the mobilehome and transfers all title and interest in the mobilehome, clear of all liens and encumbrances, to City and the documents, necessary to effectuate such transfer are delivered on or before the date of termination. If City receives such written notice from Lessee, City shall bear the cost of removing and disposing of all property improvement structures, personal property (including the mobilehome) or any accessory equipment that remain on the Premises. RENT. Lessee shall pay as rent, without deduction or offset, on the 1st day of April 2002, and on the first day of each month through August 2002 the sum of As of September 1, 2002 the rent shall be and shall be paid on the first of each month thereafter without deduction or offset. Lessee stipulates and agrees that this Amended Lease constitutes the ninety (90) day written notice of rental increases required by the Mobilehome Residency Law and Lessee acknowledges that no additional written notice need be given by City; provided, however, City may provide Lessee with,ninety (90) days written notice of the precise amount of any rental Increase authorized by this paragraph and City and Lessee agree that such notice shall not constitute a waiver of City's right to rely upon the adequacy of the notice provisions in this paragraph. Lessee acknowledges that this Amended Lease may create a possessory interest subject to property taxation and that Lessee may be subject to the payment of property taxes levied on such interest. Lessee shall pay, in addition to rent and before delinquency, all taxes, assessments, license fees and other charges (Taxes) that are, during the Term, levied or assessed against Lessee's interest in the Premises pursuant this Amended Lease and against any personal property installed on the Premises. City agrees that, once the rental rater which commences September 1, 2002 becomes effective, the rent will not be raised during the period from September 1, 2002 to March 31, 2003. If City offers a renewal of this Amended Lease, rent shall be increased effective April 1, 2003, and if renewed again, on April 1, 2004, A based on the percentage change in the cost of doing business as measured by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI), for all urban consumers for the Los Angeles, Long Beach, Anaheim areas, all items (1967=100) for the preceding twelve (12) months of the most recently published CPI.' Lessee agrees that during the term of the Amended Lease or the term of any extension, if Lessee sells or assigns this Amended Lease as provided in Section 8 below, the rent shall be increased by multiplying the rent for the month before the assignment by factor of 1.50 for the A & B pads and 1.30 for C,D and E pads. The increased rent shall commence the 15f day of the month after the assignee or transferee has executed an assignment of lease form provided by City and has signed a new Amended Lease and shall continue for the remainder of the term or any extended term. This adjusted rent is subject to CPI increases as provided above. 6. RELEVANT STATUTES AND RULES. The Mobilehome Residency Law requires this Amended Lease to contain, among other things, the Rules and Regulations of Madnapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Amended Lease by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 7. LATE CHARGE. If the entire rent owed by Lessee is not received by City by the 6th day following its due date, then, without any requirement for notice to Lessee, Lessee shall pay to City a late charge of thirty five dollars ($35.00). The Parties agree that such a late charge represents a fair and reasonable estimate of the costs City will incur by reason of any late payment of rent. An Acceptance of a late charge by City shall not constitute a waiver of Lessee's default with respect to rent, or prevent City from exercising any of the rights or remedies granted by this Amended Lease. 8. ' SALE OR ASSIGNMENT. Subject to the terms of this Section, Lessee may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Lessee under -the Mobilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain on the Premisest or if Lessee proposes to assign Lessee's interest in this Lease to any 7 person or persons who is (are) to reside on the Premises, Lessee and/or the proposed transferee must do the following: A. Lessee must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval and waived its First Right of Refusal in Section 8(F) of this Amended Lease, the transferee has executed an assignment of lease form provided by City, and the transferee has expressly agreed to be bound by the waivers and releases provided in this Amended Lease. C. Lessee agrees that occupancy of the Premises shall be limited as provided in Section 3 of this Amended Lease and Lessee agrees not to sublease or otherwise transfer any partial interest in this Amended Lease. D. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Amended Lease, provided, however', City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Madnapark (Exhibit "B"). E. City shall not approve any transfer or assignment of any interest in this Amended Lease that would permit the installation of any mobilehome or structure that exceeds twelve (12) feet in height. F. Subject to Section 8(G) of this Amended Lease, City shall have right of first refusal (First Right of Refusal). Before Lessee sells or agrees to sell or otherwise transfer Lessee's interest in this Amended Lease, Lessee shall offer to sell its interest to City, in writing and on terms and conditions Identical to those proposed for the sale of Lessee's interest to a third party. The third party must have previously fully and truthfully completed an application for residency in'the Premises that has either been approved subject to this First Right of Refusal or has not been acted upon by City within fifteen (15) days after delivery to City. The third party must . acknowledge and declare that he/she/they have an intent to reside in the Premises on a full-time basis. Lessee must notify City of the essential terms of the sale, which shall include, at a minimum, the following information: (i) the purchase price proposed for the sale to the third party; (ii) the method of purchase price payment; (i11) the amount and terms of any proposed Lessee financing in connection with the proposed purchase; (Iv) the time and location for the close of escrow; (v) the name of the proposed purchaser, and (vi) the other material terms and conditions of the proposed sale. 9 City shall have ten (10) days (Acceptance Period) from the date of the notification to inform Lessee that City will be purchasing the lease interest. If accepted, City thereafter shall enter into an agreement on the terms and conditions set forth in the notification. If the City chooses not to accept the offer, the third party may then purchase the lease interest on the terms and conditions set forth in the notification to City. Should any of the terms and conditions be altered, then City once again shall have the Right of First Refusal and City shall have the right to refuse to grant tenancy to the proposed buyer if the terms and conditions of sale differ in any significant manner from those in the notification. However should City deny tenancy, City thereafter must purchase the lease interest on the new terms and conditions. G. Notwithstanding any other provision in this Amended Lease, Lessee shall have the right to assign its interest in this Amended Lease to a spouse, son and/or daughter without any requirement that City be given the First of Right of Refusal to acquire the interest, provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Amended Lease, including, without limitation, the waiver of relocation assistance. 9. UTILITIES. A. City shall not provide electricity or telephone service. Lessee shall make arrangements directly with the utilities fumishing the services and promptly pay all charges. B. City shall provide Lessee with water and gas service. The charge to Lessee for such services shall be the amount of the charges paid by Lessee as of June 1, 2002. The charges for gas and water service may be increased or decreased on the first day of October. C. The charge for gas and water service shall be paid when rent is due, and is in addition to the obligation to pay rent. In the event Lessee fails to pay the charge for water or gas service within ten (10) days after the amount is due, Lessee, shall pay to City a late charge of thirty-five dollars ($35.00). D. In the event City provides both master meter and submeter service of utilities to Lessee, the cost of the charges for each billing period shall be separately stated and shall contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place. E. City shall not be liable for any loss, damage or injury, and Lessee shall not be entitled to any abatement or reduction of rent, by reason of City's failure to fumish any utility or service if the failure is caused by accident, 9 breakage, repairs, maintenance or any other cause beyond the reasonable control of City. 10. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS. It is the responsibility of City to provide and maintain the physical improvements in the common facilities of the Property in good working order and condition, and management shall have a reasonable period to repair any sudden and unforeseeable breakdown or deterioration and bring the improvements into good working order and condition, after management knows or should have known of the breakdown. Such period shall be not more than thirty (30) days unless there exist exigent circumstances Justifying a delay, and the required work shall be completed as soon as possible in any event as to items affecting health and safety. Lessee shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Lessees also agree that all landscaping on the Premises shall be limited to three feet (3) in height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Lessee fails to maintain the Premises in accordance with the .provisions of this Amended Lease and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Lessee and Lessee's failure to comply within fourteen (14) days from the date of written notice. The written notice shall contain all information required by the Mobilehome Residency Law. 11. PHYSICAL IMPROVEMENTS AND SERVICES. Lessee shall have the nonexclusive right to use all of the common areas and common facilities located within Madnapark, including but not limited to streets, nonrestricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. The services to be provided by City during the Term of this Amended Lease Include the services to be provided by the Marinapark property manager and other representatives, agents, employees and officers of City, the utilities to be provided by City specified in Section 9 of this Amended Lease and the maintenance of all common areas and common facilities in good condition pursuant to Section 10 of this Amended Lease. It is the responsibility of the property manager to provide and maintain physical improvements in the common areas and facilities in good working order and condition. It is understood by all Parties hereto that this mobilehome park may close as early as March 15, 2003 and therefore, in exchange for City's concession in offering this IN 12. Amended Lease, it is agreed that City need not invest any funds in repairing or replacing any facility so that it lasts longer than the Term hereof, provided that no facility which affects health and safety will be ceased during the Term of this Amended Lease. City retains the right to amend or modify the Marinapark Rules and Regulations, the Terms of this Amended Lease, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the Terms of this Amended Lease, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment; provided, however, no changes shall be made to the provisions of this Amended Lease, including the Term or the rent to be charged, unless those changes or amendments are permitted by other provisions hereof. 13. RIGHT OF ENTRY. Lessee, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the Premises and Lessee's mobilehome for the purpose of improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Subject to the obligation of City to exercise ordinary care, any damage, loss or injury to Lessee's home, property of Lessee or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Lessee, and City shall not be responsible for reimbursing any cost or expense incurred by Lessee as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. City also reserves the right to enter the Premises for other purposes as specified in the Mobilehome Residency Law. 14. NOTICE REQUIRED BY CIVIL CODE SECTION 2079.10(a). The California Department of Justice, county sheriffs departments, police departments serving, jurisdictions of 200,000 or more and many other local law enforcement authorities maintain ,for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the California Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex 11 • Offender Identification Line through which Inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about Individuals they are checking. Information regarding neighborhoods is not available through this telephone service. 15. HOLD HARMLESS. Lessee covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, Lessee's use and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any Injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Lessee, or Lessee's agents, employees, licensees and/or invitees, Including, without limitation, injury or death of Lessee, or Lessee's agents, employees, licensees and invitees and damage to their property or Lessee's property, except for any.damage or injury of any kind arising out of the sole negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. Lessee, as a material part of the consideration under this Amended Lease, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the negligence, fraud or willful misconduct of City's representatives, officers, agents or employees. Lessee agrees to Indemnify and hold City, and its representatives, officers, agents and employees, harmless from and on account of any and all damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Lessee, and Lessee's family or guests. Since a substantial portion of the present value of Lessee's mobilehome or coach is attributable to the value of the Premises and the proximity of the Premises to. Newport Bay, and not solely to the value of the structural improvements, Lessee, in addition to the other commitments specified in paragraph 4 of this Amended Lease, agrees to Indemnify and hold City, and Its representatives, officers, agents and employees, harmless from any and all loss or injury of any nature whatsoever arising out of or attributable to future change of use of the Premises and the requirement that Lessee remove his/her mobilehome and other property from the Property. 16. TERMINATION. A. Lessee may terminate this Amended Lease, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the Premises terminate their tenancy within that period 12 17 18. 19. and remove the mobilehome and all other improvements from the Premises. B. City may terminate this Amended Lease for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. C. in addition to the rights specified in subparagraph B, City reserves the right to terminate this Amended Lease in the event: (1) a court of competent jurisdiction determines that residential use of the Property is inconsistent, or is in conflict, with the provisions of the public trust imposed upon those portions of the Property that constitute state tidelands, or that the residential use is inconsistent with any provision of the State Constitution or State law; or (2) there is a major failure in one or more of the public utilities furnished to Lessee by City, and, in the opinion of City, the cost of repairing the system is excessive when viewed in light of the highest and best use of the Property. D. The waivers and releases relative to relocation benefits or assistance shall operate to preclude recovery of same by Lessee in the event this Lease is terminated pursuant to the provisions of this Section 16. ATTORNEYS'FEES. , Should either City or Lessee be required to employ counsel to enforce the terms, conditions and covenants of the 1985 Lease, the 2000 Amendment, or this Amended Lease the prevailing Party shall recover all reasonable attomeys' fees (and court costs if applicable) incurred therein whether or not court proceedings were commenced. REMEDIES CUMULATIVE. The rights, powers, elections and remedies of the Parties contained in this Amended Lease shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of either Party's right to exercise any other. NO WAIVER. No delay or omission of either Party to exercise any right or power arising from any omission, neglect or default of the other Party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Amended Lease shall be construed as a waiver of any 13 20. 21 22. succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Amended Lease. COMPLIANCE WITH LAWS. Lessee covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City or any other governmental body or agency having lawful jurisdiction over the Premises and/or the Property. MOBILEHOME RESIDENCY LAW/ZONING AND USE PERMIT INFORMATION. A. Lessee acknowledges having received and read a copy of the 1985 Lease, the 2000 Amendment and this Amended Lease, the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Madnapark Rules and Regulations (Exhibit "B"). B. The Property is currently zone use permits or other permits mobilehome park. City owns Property is determined to be applicable to tidelands. ENTIRE AGREEMENT. d unclassified and there are no conditional required to operate the Property as a the Property, except to the extent the tidelands and subject to the public trust This Amended Lease and the documents referred to in this Amended Lease represent the entire agreement between City and Lessee. 23. NOTICES. All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 With a copy to: City Clerk's Office City of Newport Beach 14 0 0 3300 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have fumistied to Lessee; and To Lessee: By delivering a copy to the Lessee personally; or Lessee be absent from the mobilehome, by leaving a copy with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobile home and also sending a copy through the mail addressed to Lessee. B. Following notice by City of any amendment, all other provisions of the Lease shall remain in full force and effect in their original form. 24. TIME OF ESSENCE. Time is of the essence in this Amended Lease and each and every provision hereof. 25. EFFECTIVE DATE. The Parties agree that the effective date of this Amended Lease is March 15, 2002, whether executed before or after that date. IN WITNESS WHEREOF, the Parties have caused this Amended Lease to be executed the day and year first above written. LESSEE By: M UWE ACKNOWLEDGE AND AWARE AWARE OF THE PROVISIONS OF THIS AMENDED LEASE INCLUDING THE RELEASE AND WAIVER PROVISIONS OF SECTION 4 15 CITY OF NEWPORT BEACH a municipal corporation. Homer Blud u, City Manager APPROVED AS TO FORM: Robin L. Clauson, Assistant City Attomey F:1Users1catlsharedldalProjectsWadnaPark\LeaseVX\052802flnol.doc iiR v r L ��a � alga p1f� �� plea ah� rpIII 1�� y �uunuuuum m rn � CIVIC LEGION MARINA PARK C01'1PLEX SITS PLAN M A' MM m/ r m A m m m m r A m A m m m m x W D 0 NOV-f5-2002 03:08 PM MARINAPARK 949 723 0539 P.01 NOTICE OF RENT INCREASE May 31, 2002 Per the action of the City of Newport Beach City Council on Tuesday May 28, 2002 your rent shall be increased to the amount indicated below. This increase shall become effective September 1, 2002. This increase is limited to the amount below contingent to your acceptance of the one year lease which will be presented to you In the next week or two. SPACE NUMBER NEW RENT (effective September 1, 2002) If you have any questions concerning this matter feel free to call Bill Mecham at (949) 261-6111 ext. 211. ITEM 22 v: iviernmrs of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager Robin Clauson, Assistant City Attorney SUBJECT: Marinapark Leases RECOMMENDED • 1— Approve the 2nd Amendment and Extension of Lease for the tenants at ACTIONS: Marinapark and authorize the City Manager to execute individual documents on behalf of the City; 2 — Maintain rent at the current level until September 1, 2002, 3 -- Authorize the City Manager or his designee to issue a 90-day Notice to Increase Rent based on the April 4, 2002 Appraisal of Fair Market Rental Value offered by Mr. William Hansen; and 4 -- Authorize the City Manager to increase rent after the 90-day Notice to the amounts set forth by the Appraisal. 5 -- Authorize the City Manager to, at any time during the Lease, apply a rent adjustment (increase) factor upon the sale of any home of 1.5x (for As and Bs) and 1.3x (for Cs, Ds, and Es). WHAT'S NEW: At the March 12, 2002 Council meeting, your Council adopted the following motion: "...authorize that a 31parhj appraiser review the rent amounts using the proposed lease terms and bring the facts back to Council. " The City discussed its appraisal options with three firms, including William Hansen and Associates. Mr. Hansen then conducted what he called an Appraisal of Fair Rental Value on April 1, 2002. Mr. Hansen's opinion of fair rental value is not a formal appraisal of fair market value of the Marinapark lease sites, but rather an opinion of a fair rent the City could charge with consideration to the interests of both the City and the Lessees and the relatively short term of the extension. Hansen came back with several rent values based on different lease durations: • • Page 2 We have calculated the approximate revenue generated by the rental values proposed by Hansen by lease duration — they are as follows: Current $ 685,380 N/A 1 Year Lease $ 849,900 $ 164,520 $ 930,960 $ 245,580 $ 1,225,200 $ 539,820 AGWYsu $ 1.351,800 $ 666,420 $ 1,325,400 $ 640,020 Hansen stated that the rents should be subject to an annual CPI adjustment. Adjustment Upon Sale or Assignment. Hansen also — at our suggestion — examined what an "appropriate" lease rent adjustment would be should a current tenant sell to a new tenant that had not received any of the moderated rent benefit provided in the 1985 and 2000 Leases. Upon sale of a coach, and assignment of the Lease to the new owner Hansen suggests that: • Rent for the As and Bs be adjusted by a factor of 1.50 • Rent for Cs, Ds, and Es be adjusted by a factor of 1.30 For example, if a person occupying an A space near the bay (at $1,550.00 per month) sold to a new owner, the rent would become $2,325.00 per month. Mr. Hansen's appraisal was provided to the tenants representatives and is available in the City Manager's office should any resident or Council member wish to review it. This Agenda Item asks the Council to authorize the City Manager to execute separate 2"d Amendment and Extensions of Lease with the Marinapark tenants that include: • A one-year term with two one-year options exercisable at the City's discretion to March 15, 2005; • Rent increases effective September 1, 2002 to Hansen's 1-year rental value with further rent increases annually starting March 15, 2003 by CPI; • Rent increases upon sale of the coach and assignment of the Lease either 1.50 or 1.30 per Mr. Hansen's appraisal. DETAILED In recent months, the Council has discussed and heard testimony about a BACKGROUND: proposal to extend the current leases for the coaches at the Marinapark Mobile Home Park at 1770 West Balboa Avenue. Parks and Lease History The Marinapark mobile home park ("Marinapark") sits today on a 4.34 acre parcel at 1770 West Balboa Boulevard on the Balboa Peninsula between 18d< and 15th Streets. Marinapark has 58 mobile home spaces and 924' of beach frontage facing Newport Bay. Page 3 The City of Newport Beach acquired Marinapark from Pacific Electric Land Company in 1919. The initial use of the property after purchase was for a city campground (where campers paid 75¢/day for waterfront camp areas and 50C/day for interior spaces) and later (in approximately 1955) to a "deluxe trailer court" for 120 trailers. A later renovation of Marinapark to accommodate larger trailers put the park at today's capacity of 58 mobile homes. Today 56 of the coach spaces are occupied with a coach. The City and the residents at Marinapark ("Lessees") entered into a series of short- and medium -term leases relating to the Lessees' occupancy at Marinapark. An abbreviated schedule follows: • 1973 Lease. The 1973 Lease extended an existing lease to September 30,1977 at which time all Lessees would "unconditionally and without contest vacate the premises without contest, legal and otherwise. Lessees further agree to waive any relocation assistance or any other assistance from Lessor resulting from vacating the premises." The 1973 Lease also dictated a new rental schedule through 1977. • 1976 Lease. A new 1976 Lease extended the Marinapark Lessees' tenancy through September 30,1985. The 1976 Lease offered an extension of five years "should the City Council find and determine ... that Marinapark is not required for any public trust purpose or other public purpose..." Rents at the time were set by the Lease and deemed to be "the fair market rental value" for the spaces. • 1985 Lease. The City Council did, indeed, state its intent that Marinapark should be converted "to a public recreation area" upon expiration of a new 1985 Lease. The 1985 Lease - with an expiration date of March 15, 2000 - said that "the most significant rights obtained by Lessee, and given up by City..." were: Lessee's long-term right to occupy the Premises... Lessee's payment of "moderate rent ... and the advantage of limited rental increases in the future, while City gives up the right to charge higher rents initially and the right to impose future rental increases in excess of the cost -of -living index..." The 1985 Lease also outlines the rights and benefits "given up" by the Lessee, including: City's right to convert Marinapark into a public recreational use upon Lease expiration. The full waiver of any right of the Lessee to receive relocation benefits "or any other form of relocation assistance." • 2000 Amendment and Extension of Lease. On February 8, 2000, the City Council authorized the City to offer an amendment and.extension ("Lease Extension") to the 1985 Lease, The Lease Extension acknowledged several things -some new, others a restatement of information in the 1985 Lease. The Lease Extension acknowledged (among other things): -- Uncertainty over the tidelands status of the land upon which the park sits - arguably, if the land is State-owned and City -managed "tidelands," then the residential uses at Marinapark may not be appropriate, because tidelands are intended to be visitor -serving. Page 4 The City s (at that time) review of up to eight responses to a Request for Proposals (RFP) for future uses and development of Marinapark, some of which envisioned the continuation of the mobilehome use. The "substantial and important benefit" of the economic and personal rights of the Lessees under the 1985 Lease, including the Lessees' payment of moderated rent AND the ongoing waiver of Lessees' claims to any relocation benefits. Current Rent and Residency. In 2000, the City believed that, of the 58 coaches occupied at the time: • 16 of the coaches were full-time residences for lessees; • 6 of the coaches were full-time residences for persons other than the lessees, • 36 coaches were part-time residences for lessees. Rents at Marinapark are the following: Space 11D (didn't sign 2000 Extension) $1,362.60/month Bay -adjacent lots (As and Bs) $1,225.08/month One lot distance from Bay (Cs and Ds) $ 924.83/month Two lot distances from Bay (Es) $ 864.80/month Marinapark space rentals earn the City about $600,000 annually. Bendetti Property Management of Irvine manages Marinapark for the City at a fee of about $2,980 per month, Bendetti has been on a month -to -month contract since March 2000. Residents have been generally quite happy with Bendetti's on -site manager, Joe Albano, and its off -site manager, Bill Mecham. I have been very pleased with Bendetti's service over the past 4 years. The proposed 211d Amendment and Lease Extension is Attachment A to this document. A map of Marinapark appears in Exhibit A to Attachment A. ATTACHMENT: Attachment A — Proposed 2nd Amendment and Extension of Lease SECOND AMENDMENT AND EXTENSION OF LEASE This Second Amendment and Extension of Lease (Amended Lease), entered into and effective this of day of , 2002 by and between the CITY OF NEWPORT BEACH, a municipal corporation and Charter City (City) and (Lessee), is made with reference to the following facts, the materiality and existence of which is stipulated and agreed by the Parties: A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15i' Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Property). B. The Property was under lease prior to the effective date of the Charter of the City of Newport Beach and, pursuant to. the provisions of Section 1402 of the City Charter, the City Council is empowered to authorize execution of this Lease by the Mayor. C. Prior to the effective date of this Amended Lease, City leased 58 mobilehome spaces on the Property pursuant to a standard lease dated March 24, 1976, (hereinafter "1976 Lease"), which would have expired on September 30, 1985, subject to the right of the Lessee to extend the term for a five (5) year period under certain conditions. D. Prior to the expiration of the 1976 Lease, City leased the same 58 mobile home spaces on the Property pursuant to a lease that would have expired on March 15, 2000 (1985 Lease) but for an Amendment and Extension of Lease which expires March 15, 2002 (2000 Amendment). E. The City Council actively solicited proposals for non-residential uses at Marinapark and, as of February 2002, has deemed a non-residential use of Marinapark the most appropriate land use for the property. As such, City Council intends to close the mobile home park no later than March 15, 2005. F. The Parties acknowledge that, subsequent to the effective date of the 1985 Lease, California State Lands Commission staff has discovered evidence that a portion of the Property consists of tidelands. City and Lessee have, in the past, claimed that all or substantially all, of the Property leased for mobilehome residency purposes is uplands owned by City, and City and Lessee have discussed evidence to support that claim. G. State Lands Commission staff has indicated that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, City and Lessee may dispute that position. H. The City Council finds and declares that the terms and conditions of this Amended Lease comply, and are consistent, with the Charter of City, including, without limitation, the provisions of Sections 200 and 1402 of the Charter. The City Council also finds and declares that the provisions of this Amended Lease are consistent with the plans, policies, rules and ordinances of City. The City Council also finds that this Amended Lease is consistent with the General Plan and the Land Use Plan of the Local Coastal Program. J. The terms and conditions of this Amended Lease are in compliance, and consistent, with the provisions of the Mobilehome Residency Law (Section 798 et. seq. of the California Civil Code) and the State Zoning and Planning Act (Sections 65863.7 and 65863.8 of the California Government Code). K. The purpose and intent of the Parties is to amend, and extend the term of, the 1985 Lease and the 2000 Amendment so that the Lessee may continue to reside on the Property for the year commencing March 15, 2002 while the process of preparing the Property for a different use continues. City may allow short extensions of this Second Amended Lease but not past March 15, 2005. NOW, THEREFORE, the Parties do hereby mutually agree as follows: 1. DESCRIPTION OF PREMISES. The City leases, and Lessee accepts the lease of, the portion of the Property described as space as shown on Exhibit "A" (Premises). 2. TERM. A. Term. The tenancy created by this Amended Lease shall extend the expiration date of the 1985 Lease as modified by the 2000 Amendment, to March 15, 2003 (Term), unless extended as provided in subsection B below, or earlier terminated in accordance with the terms of this Amended Lease and the Mobilehome Residency Law. B. Notice of Park Closure. If City does not provide notice to Lessee by September 15, 2002 of City's intent to close the park, then the Amended Lease is deemed extended until March 15, 2004. During the first one-year extension, if City does not provide notice to Lessee by September 15, 2003 of City's intent to close the park, then the Amended Lease is deemed extended until March 15, 2005. If the Amended Lease is not extended for any reason, there shall be no holdover. 2 3. 0 USE OF PREMISES. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. Permitted occupants are: (i) Lessee; (ii) An additional person if Lessee is living alone; (iii) Family members entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term "short term guest" shall mean any person who does not stay with Lessee for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may occupy the Premises with the prior written consent of City. B. Lessee agrees that the primary residence requirement is fundamental to this lease, stipulates that the residency requirement will not constitute an undue burden or hardship on Lessee in light of the time allowed for compliance in the 1985 Lease, and, subject to the provisions of Section 8 of this Amended Lease, Lessee agrees that the Premises shall be Lessee's primary residence unless this requirement is waived by the City Council due to hardship. Lessee shall provide satisfactory proof of residency to City. C. Lessee agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 4. CONSIDERATION. A. Introduction. City and Lessee agree that the terms and conditions of the 1985 Lease, the 2000 Amendment and this Amended Lease preserve and protect substantial and important rights and benefits, economic and personal, that each Party would not otherwise be entitled to receive. These economic and personal rights and benefits are the consideration for the 1985 Lease, the 2000 Amendment and this Amended Lease. The more important rights and benefits gained and given up by each Party are specified in this section and the Parties agree that, like the 1985 Lease, this Amended Lease should be interpreted such that each Party receives the rights and benefits identified in this Section. 3 B. Consideration to Lessee. (i) As consideration for. Lessee's approval of this Amended Lease, City commits to maintain the Property as a mobilehome park until March 15, 2003. (ii) The City also commits that, if it decides to lease this space as a mobilehome space during the period from March 15, 2003 through March 15, 2005, it will not terminate or fail to renew this Amended Lease with the Lessee and instead lease the Premises to another person. (iii) Additional consideration for Lessee's approval of this Amended Lease is the right to occupy the Premises subject to the payment of rent in the sum of through August 31, 2002 at which time the rent shall be . Although this sum is higher than the rent paid under the 1985 Lease and the Amended Lease, it is less than the market rent for this space based upon a surrey of similar beach front properties. C. Consideration to City. As consideration to City, Lessee agrees and acknowledges that City may convert the Property to a different use upon expiration of this Amended Lease, or shortly thereafter. Lessee agrees that, if City chooses to close the mobilehome park on the Property it may do so without obligation to pay relocation benefits or provide other.forms of relocation assistance. Lessee acknowledges that the terms of the 1985 Lease, the 2000 Amendment and this Amended Lease constitute full and adequate mitigation of any adverse impact on Lessee of any conversion of the Property to a non-mobilehome use, and the extended term of the 1985 Lease and this Amended Lease gives Lessee sufficient time to secure replacement space in another mobilehome park or other alternative housing. Accordingly, LESSEE HEREBY WAIVES, GIVES UP THE RIGHT TO RECEIVE, AND RELEASES CITY FROM ANY OBLIGATION TO PAY, RELOCATION BENEFITS, OR ANY OTHER FORM OF RELOCATION ASSISTANCE OR OTHER PAYMENT OR CONSIDERATION THAT ARISE OUT OF, OR ARE IN ANY WAY RELATED TO: (1) THIS LEASE OR ANY FUTURE TENANCY; (2) THE ULTIMATE TERMINATION OF LESSEE'S TENANCY PURSUANT TO THE 1985 LEASE, THE 2000 AMENDMENT OR THIS AMENDED LEASE, OR THE TERMINATION OR EXPIRATION OF ANY SUBSEQUENT TENANCY HOWEVER CREATED; (3) THE CONVERSION OF THE PREMISES TO ANY USE OTHER THAN A MOBILEHOME USE; (4) THE DISPLACEMENT OF LESSEE FROM HIS AND/OR HER PRIMARY RESIDENCE; 4 0 0 (5) ANY FEDERAL, STATE OR LOCAL LAW, PLAN & POLICY OR RULE WHICH RELATES TO SUCH DISPLACEMENT, OR REQUIRES THE MITIGATION OF THE IMPACTS CAUSED BY DISPLACEMENT. THIS RELEASE BY LESSEE, NOTWITHSTANDING SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES THAT: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR," RELEASES ALL CLAIMS OR LOSSES, WHETHER KNOWN, UNKNOWN, FORESEEN OR UNFORESEEN, WHICH LESSEE MAY HAVE AGAINST CITY. LESSEE UNDERSTANDS AND ACKNOWLEDGES THE SIGNIFICANCE AND CONSEQUENCE OF THIS RELEASE AND OF THIS SPECIFIC WAIVER OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE AND ASSUMES FULL RESPONSIBILITY FOR ANY DAMAGES, LOSS OR CLAIM THAT LESSEE MAY INCUR AS A RESULT OF THE CONVERSION, TERMINATION AND/OR DISPLACEMENT REFERRED TO ABOVE. LESSEE IS FREELY AND VOLUNTARILY EXECUTING THIS AMENDED LEASE, AND LESSEE, IN EXECUTING THIS RELEASE, HAS NOT RELIED UPON ANY INDUCEMENTS, PROMISES OR REPRESENTATIONS MADE BY CITY OR ITS OFFICERS, AGENTS, REPRESENTATIVES OR EMPLOYEES, OTHER THAN THE COMMITMENTS AND COVENANTS CONTAINED WITHIN THIS AMENDED LEASE. D. Provisions related to Consideration. (i) This .Amended Lease constitutes notice that City reserves the right to physically convert the Premises to a non-mobilehome use on or about March 16, 2003. (ii) Upon expiration of the term of this Amended Lease, Lessee shall, within sixty (60) days, remove any mobilehome or recreational vehicle, structure, improvement, personal property or equipment located upon the Premises. Upon the expiration of this sixty (60) day period, City shall have the right to remove and dispose of any and all property improvement structures, personal property (including the mobilehome) or any accessory equipment that remain on the Premises. The cost of removing such shall be born by the Lessee unless the Lessee has given written notice to City not less than thirty (30) days prior to the expiration of this Amended Lease or applicable renewal thereof, whichever is later, of Lessee's desire to abandon the mobilehome and transfers all title and interest in the mobilehome, clear of all liens and encumbrances, to City and the documents necessary to effectuate such transfer are delivered on or before the date of termination. If City 5 receives such written notice from Lessee, City shall bear the cost of removing and disposing of all property improvement structures, ,personal property (including the mobilehome) or any accessory equipment that remain on the Premises. 5. RENT. Lessee shall pay as rent, without deduction or offset, on the 1st day of April 2002, and on the first day of each month through August 2002 the sum of . As of September 1, 2002 the rent shall be and shall be paid on the first of each month thereafter without deduction or offset. Lessee stipulates and agrees that this Amended Lease constitutes the ninety (90) day written notice of rental increases required by the Mobilehome Residency Law and Lessee acknowledges that no additional written notice need be given by City; provided, however, City may provide Lessee with ninety (90) days written notice of the precise amount of any rental increase authorized by this paragraph and City and Lessee agree that such notice shall not constitute a waiver of City's right to rely upon the adequacy of the notice provisions in this paragraph. Lessee acknowledges that this Amended Lease may create a possessory interest subject to property taxation and that Lessee may be subject to the payment of property taxes levied on such interest. Lessee shall pay, in addition to rent and before delinquency, all taxes, assessments, license fees and other charges (Taxes) that are, during the Term, levied or assessed against Lessee's interest in the Premises pursuant this Amended Lease and against any personal property 'installed on the Premises. City agrees that, once the rental rate which commences September 1, 2002 becomes effective, the rent will not be raised during the period from September 1, 2002 to March 31, 2003. If City offers a renewal of this Amended Lease, rent shall be increased effective April 1, 2003, and if renewed again, on April 1, 2004, based on the percentage change in the cost of doing business as measured by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index (CPI), for all urban consumers for the Los Angeles, Long Beach, Anaheim areas, all items (1967=100) for the preceding twelve (12) months of the most recently published CPI. Lessee agrees that during the term of the Amended Lease or the term of any extension, if Lessee sells or assigns this Amended Lease as provided in Section 8 below, the rent shall be increased by multiplying the rent for the month before the assignment by factor of 1.50 for the A & B pads and 1.30 for C,D and E pads. The increased rent shall commence the 1st day of the month after the assignee or transferee has executed an assignment of lease form provided by City and has signed a new Amended Lease and shall continue for the remainder of the term or any extended term. This adjusted rent is subject to CPI increases as provided above. 0 6. RELEVANT STATUTES AND RULES. The Mobilehome Residency Law requires this Amended Lease to contain, among other things, the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Amended Lease by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 7. LATE CHARGE. If the entire rent owed by Lessee is not received by City by the 6th day following its due date, then, without any requirement for notice to Lessee, Lessee shall pay to City a late charge of thirty five dollars ($35.00). The Parties agree that such a late charge represents a fair and reasonable estimate of the costs City will incur by reason of any late payment of rent. An Acceptance of a late charge by City shall not constitute a waiver of Lessee's default with respect to rent, or prevent City from exercising any of the rights or remedies granted by this Amended Lease. 8. SALE OR ASSIGNMENT. Subject to the terms of this Section, Lessee may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Lessee under the Mobilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain on the Premises, or if Lessee proposes to assign Lessee's interest in this Lease to any person or persons who is (are) to reside on the Premises, Lessee and/or the proposed transferee must do the following: A. Lessee must give notice of the sale or assignment to City prior to close of escrow. B. The sale or assignment shall not be effective unless City has given prior written approval and waived its First Right of Refusal in Section 8(F) of this Amended Lesae, the transferee has executed an assignment of lease form provided by City, and the transferee has expressly agreed to be bound by the waivers and releases provided in this Amended Lease. C. Lessee agrees that occupancy of the Premises shall be limited as provided in Section 3 of this Amended Lease and Lessee agrees not to sublease or otherwise transfer any partial interest in this Amended Lease. D. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Amended Lease, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit "B"). 7 E. City shall not approve any transfer or assignment of any interest in this Amended Lease that would permit the installation of any mobilehome or structure that exceeds twelve (12) feet in height. F. Subject to Section 8(G) of this Amended Lease, City shall have right of first refusal (First Right of Refusal). Before Lessee sells or agrees to sell or otherwise transfer Lessee's interest in this Amended Lease, Lessee shall offer to sell its interest to City, in writing and on terms and conditions identical to those proposed for the sale of Lessee's interest to a third party. The third party must have previously fully and truthfully completed an application for residency in the Premises that has either been approved subject to this First Right of Refusal or has not been acted upon by City within fifteen (15) days after delivery to City. The third party must acknowledge and declare that he/she/they have an intent to reside in the Premises on a full-time basis. Lessee must notify City of the essential terms of the sale, which shall include, at a minimum, the following information: (i) the purchase price proposed for the sale to the third party; (ii) the method of purchase price payment; (Ili) the amount'and terms of any proposed Lessee financing in connection with the proposed purchase; (iv) the time and location for the close of escrow; (v) the name of the proposed purchaser; and (vi) the other material terms and conditions of the proposed sale. City shall have ten (10) days (Acceptance Period) from the date of the notification to inform Lessee that City will be purchasing the lease interest. If accepted, City thereafter shall enter into an agreement on the terms and conditions set forth in the notification. If the City chooses not to accept the offer, the third party may then purchase the lease interest on the terms and conditions set forth in the notification to City. Should any of the terms and conditions be altered, then City once again shall have the Right of First Refusal and City shall have the right to refuse to grant tenancy to the proposed buyer if the terms and conditions of sale differ in any significant manner from those in the notification. However should City deny tenancy, City thereafter must purchase the lease interest on the new terms and conditions. G. Notwithstanding any other provision in this Amended Lease, Lessee shall have the right to assign its interest in this Amended Lease to a spouse, son and/or daughter without any requirement that City be given the First of Right of Refusal to acquire the interest, provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Amended Lease, including, without limitation, the waiver of relocation assistance. 9. UTILITIES. A. City shall not provide electricity or telephone service. Lessee shall make arrangements directly with the utilities furnishing the services and promptly pay all charges. B. City shall provide Lessee with water and gas service. The charge to Lessee for such services shall be the amount of the charges paid by Lessee as of June 1, 8 2002. The charges for gas and water service may be increased or decreased on the first day of October. C. The charge for gas and water service shall be paid when rent is due, and is in addition to the obligation to pay rent. In the event Lessee fails to pay the charge for water or gas service within ten (10) days after the amount is due, Lessee shall pay to City a late charge of thirty-five dollars ($35.00). D. In the event City provides both master meter and submeter service of utilities to Lessee, the cost of the charges for each billing period shall be separately stated and shall contain opening and closing readings of the meter. In such event, City shall post rates charged by the appropriate utility in a conspicuous place. E. City shall not be liable for any loss, damage or injury, and Lessee shall not be entitled to any abatement or reduction of rent, by reason of City's failure to furnish any utility or service if the failure is caused by accident, breakage, repairs, maintenance or any other cause beyond the reasonable control of City. 10. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS. It is the responsibility of City to provide and maintain the physical improvements in the common facilities of the Property in good working order and condition, and management shall have a reasonable period to repair any sudden and unforeseeable breakdown or deterioration and bring the improvements into good working order and condition, after management knows or should have known of the breakdown. Such period shall be not more than thirty (30) days unless there exist exigent circumstances justifying a delay, and the required work shall be completed as soon as possible in any event as to items affecting health and safety. Lessee shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Lessees also agree that all landscaping on the Premises shall be limited to three feet (3') in height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Lessee fails to maintain the Premises in accordance with the provisions of this Amended Lease and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Lessee and Lessee's failure to comply within fourteen (14) days from the date of written notice. The written notice shall contain all information required by the Mobilehome Residency Law. 11. PHYSICAL IMPROVEMENTS AND SERVICES. Lessee shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, nonrestricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. The services to be provided by City during the Term of this Amended Lease include the services to be provided by the Marinapark property manager and other 9 12. representatives, agents, employees and officers of City, the utilities to be provided by City specified in Section 9 of this Amended Lease and the maintenance of all common areas and common facilities in good condition pursuant to Section 10 of this Amended Lease. It is the responsibility of the property manager to provide and maintain physical improvements in the common areas and facilities in good working order and condition. It is understood by all Parties hereto that this mobilehome park may close as early as March 15, 2003 and therefore, in exchange for City's concession in offering this Amended Lease, it is agreed that City need not invest any funds in repairing or replacing any facility so that it lasts longer than the Term hereof, provided that no facility which affects health and safety will be ceased during the Term of this Amended Lease. City retains the right to amend or modify the Marinapark Rules and Regulations, the Terms of this Amended Lease, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the Terms of this Amended Lease, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment; provided, however, no changes shall be made to the provisions of this Amended Lease, including the Term or the rent to be charged, unless those changes or amendments are permitted by other provisions hereof. 13. RIGHT OF ENTRY. Lessee, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the Premises and Lessee's mobilehome for the purpose of improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City. Subject to the obligation of City to exercise ordinary care, any damage, loss or injury to Lessee's home, property of Lessee or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Lessee, and City shall not be responsible for reimbursing any cost or expense incurred by Lessee as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. City also reserves the right to enter the Premises for other purposes as specified in the Mobilehome Residency Law. 10 14. NOTICE REQUIRED BY CIVIL CODE SECTION 2079.10(a). The California Department of Justice, county sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the California Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through this telephone service. 15. HOLD HARMLESS. Lessee covenants to indemnify, defend and hold City, and its representatives, officers, agents and employees, harmless from any and all ,claims or demands of any name or nature whatsoever arising out of, or incident to, Lessee's use and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Lessee, or Lessee's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Lessee, or Lessee's agents, employees, licensees and invitees and damage to their property or Lessee's property, except for any damage or injury of any kind arising out of the sole negligence, fraud or willful misconduct of City, its representatives, officers, agents or employees. Lessee, as a material part of the consideration under this Amended Lease, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the negligence, fraud or willful misconduct of City's representatives, officers, agents or employees. Lessee agrees to indemnify and hold City, and its representatives, officers, agents and employees, harmless from and on account of any and all damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Lessee, and Lessee's family or guests. Since a substantial portion of the present value of Lessee's mobilehome or coach is attributable to the value of the Premises and the proximity of the Premises to Newport Bay, and not solely to the value of the structural improvements, Lessee, in addition to the other commitments specified in paragraph 4 of this Amended Lease, agrees to indemnify and hold City, and its representatives, officers, agents and employees, harmless from any and all loss or injury of any nature whatsoever arising out of or attributable to future change of use of the Premises and the requirement that Lessee remove his/her mobilehome and other property from the Property. 11 16. TERMINATION. A. Lessee may terminate this Amended Lease, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the Premises terminate their tenancy within that period and remove the mobilehome and all other improvements from the Premises. B. City may terminate this Amended Lease for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. C. In addition to the rights specified in subparagraph B, City reserves the right to terminate this Amended Lease in the event: (1) a court of competent jurisdiction determines that residential use of the Property is inconsistent, or is in conflict, with the provisions of the public trust imposed upon those portions of the Property that constitute state tidelands, or that the residential use is inconsistent with any provision of the State Constitution or State law; or (2) there is a major failure in one or more of the public utilities furnished to Lessee by City, and, in the opinion of City, the cost of repairing the system is excessive when viewed in light of the highest and best use of the Property. D. The waivers and releases relative to relocation benefits or assistance shall operate to preclude recovery of same by Lessee in the event this Lease is terminated pursuant to the provisions of this Section 16. 17. ATTORNEYS' FEES. Should either City or Lessee be required to employ counsel to enforce the terms, conditions and covenants of the 1985 Lease, the 2000 Amendment, or this Amended Lease, the prevailing Party shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein whether or not court proceedings were commenced. 18. REMEDIES CUMULATIVE. The rights, powers, elections and remedies of the Parties contained in this Amended Lease shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of either Party's right to exercise any other. 19. NO WAIVER. No delay or omission of either Party to exercise any right or power arising from any omission, neglect or default of the other Party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other Party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Amended Lease shall be construed as a waiver of any 12 succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Amended Lease. 20. COMPLIANCE WITH LAWS. Lessee covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California. and City or any other governmental body or agency having lawful jurisdiction over the Premises and/or the Property. 21. MOBILEHOME RESIDENCY LAW/ZONING AND USE PERMIT INFORMATION. A. Lessee acknowledges having received and read a copy of the 1985 Lease, the 2000 Amendment and this Amended Lease, the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Marinapark Rules and Regulations (Exhibit "B"). B. The Property is currently zoned unclassified and there are no conditional use permits or other permits required to operate the Property as a mobilehome park. City owns the Property, except to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. 22. ENTIRE AGREEMENT. This Amended Lease and the documents referred to in this Amended Lease represent the entire agreement between City and Lessee. 23. NOTICES. All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 With a copy to: City Clerk's Office City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 or at such other addresses as Lessor shall have furnished to Lessee; and 13 To Lessee: By delivering a copy to the Lessee personally; or Lessee be absent from the mobilehome, by leaving a copy with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobile home and also sending a copy through the mail addressed to Lessee. B. Following notice by City of any amendment, all other provisions of the Lease shall remain in full force and effect in their original form. 24. TIME OF ESSENCE. Time is of the essence in this Amended Lease and each and every provision hereof. 25. EFFECTIVE DATE. The Parties agree that the effective date of this Amended Lease is March 15, 2002, whether executed before or after that date. IN WITNESS WHEREOF, the Parties have caused this Amended Lease to be executed the day and year first above written. LESSEE By: M IIWE ACKNOWLEDGE AND AM/ARE AWARE OF THE PROVISIONS OF THIS AMENDED LEASE INCLUDING THE RELEASE AND WAIVER PROVISIONS OF SECTION 4 14 CITY OF NEWPORT BEACH a municipal corporation. Homer Bludau, City Manager APPROVED AS TO FORM: Robin L. Clauson, Assistant City Attorney 15 Y - uzu.rrr. MWIPti. Ll ' aIA�AtlfS q f�1IW gillyL f�IIF! 1-11 t«iIIFi�Alaii �� u�1i iu.� >�� � �ii � :ii� FAi 't um r,.::. sil,ntnut� nnunnnum f htYt v,.:• �. , �am6Q 9^s agQf `05:24 2aa2 15:aS FAi 162Sa0' "1 JENSENS & GILCHRIST PAS °• (0002 jex�kens � Gilchrist, LLB' (612)40- 00 aac.wo,bcwou (312) 42S39ao 55SOTPS'IILAKEAVE. (2114)o � SLmR650 Hoy=4zu 3?ASADE9A, CALSOMIA 91101 (71�3) e9t51.330D IAS"M i%C v OANal (310) 820.8800 (626) 578.7400 MWX0 x.Nsw%oax UyD.Lowe PACsumE(626) 304-9711 SANAxmt+to 0S (626) 57B•7421 (21a) W-5000 clnwc0,jettkens.eom www.ici*ens.coni 1VAStlw= 'DX, (20%)'326•)SOo May 22, 2002 vU U.S. MAIL & IA.CSD6= (9491644-3139) City Attorney Bob Burnham City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 NewportBeach, Califbmia 92659-1768 Re: Marinapark Property Extension of Leases rpl. I appreciated the opportunity to meet with you and Robin Clausen recently to discuss the proposed terms of extension of the residential leases at Marinapark I understand that you are preparing a report to the City Council, and that the Council will consider the issue at the meeting of May 23, 2002. In.preparation for that discussion, I would like to clarify a few points. I discussed with the tenants your, suggestion that they join with the City in proposing a settlement with the State Lands Commission regarding the alleged tidelands status of the Marinapark site, including a phaseout of the current residential use of the site, accompanied by a lease extension for the duration of such a phaso•out period. The tenants wish to defer participating in any such settlement discussions, at least until such time as we have had an opportunity to review the opinion being prepared by Commission counsel Curtis Fossum. In light of the significant effort and expense which the tenants have devoted to building a case for the site being classified as uplands, they do not want to concede this issue prematurely. I spoke with Curtis shortly after our meeting, and he reassured me that he would allow both you and us an opportunity to review and comment on his opinion before he finalizes and releases it. It seems to us that prevailing on this isa" w would be in the City's best long -terra interest, regardless of whether the site remains in its ennua use for = extendod period of Eme, so we hope that the COuntil anal City staff will continue to work with us in seeking that outcome. Pv4,,40bWA 1370V1 41760.00001 MAY-24-2002 16:11 16263049711 97i P.02 '-bSi24/2002 16:00 FAX 16203001 JMTJMNS & GILCHRIST PASJJ 180w JJenkens & Gilchrist, LLP City Attorney Bob Burnham City ofNevTort Beach May 22, 2002 Page 2 With regard to the lease extension, the tenants reiterate their request for an extended term of at least three years. All parties aclalowledge that it is highly unlikely that the City will be prepared to rnako any other use of the site sooner than that, even if the current proposal for a hotel development proceeds. On the other hand, if the City subsequently should elect to move more quickly to convert use of the site, the longer lease term would not preclude the City from giving notice of closure of Marinapark at art earlier date. The longer term, however, would provide the tenants with greater certainty and stability, and provide an incentive for them to continue investing in the maintenance and imprcvernent of their units, to the benefit of both the residents themselves and the community as a whole, We understand that Citystaff is recommending tbatrents be adjusted based on the Appraisal of Fair Rental Value, dated April 4, 2002, prepared for the City by William :Hansen, MAT. The tenants are satisfiedwith W. Harsen's qualifications and support his conclusions. We further understand that the proposed lease extension will include a provision allowing staff to limit rent adjustmentsfortenants who demonstrate genuine hardship. While this is something that will affect only a few tenants, we appreciate the City addressing the issue. The is another "hardship" issue which remains to be addressed, however. The proposed lease extension provides for a very significant rent increase for any successors to current tenants, apparently as a means of bringing rents up to full market level. "While we are net contestrm this provision as a general rule, we are concerned tbat it will cause considerable hardship in those occasional eases where a tenant is forced to terminate their occupancy for personal reasons outside their control. This is a special concern given the advanced age of many of the tenants. In such a case, the resulting greatly increased rent level would be a major burden for their family evenif the latter opt to occupy the unit and would greatly inhibit their ability to sell the coach unit. After considerable discussion, the tenants propose that, rather than trying to define a,hardship exception, the City instead defer implementing this provision for a period of one year, to allow those tenants who fear their units tray become subject to this rule an opportunity to sell and relocate in advance. Finally, T would like to reiterate the tenants' request for a copy of the relocation study that was performed for the City with regard to Marinapark. You initially indicated that the study was still in draft form and therefore not a public document, but there does not appear to be -any action being taken to refine it further and we understand that it has been shared with both Council members and members of the press. Accordingly, as the parties most directly impacted by the study, the tenants would like an opportunity to review it at the earliest possible time. rp,SAUENA 1374+141750.00001 MPY-24-2002 16:11 16263949711 971*1 P.03 ' GS/24.2002 15:06 PA% 102650w1 JEN$ENS & GILCHRIST PAS, U004 f erikens & Gilchrist, LLB' City ACtomry Bob Burnham City of Newport Beach May 22, 2002 Page 3 I will be happy to discuss any of these items with you or ocher City staff in advance of the upcoming City Councilmeeting. Thank$ for your Consideration. Sincerely, 7ENKENS & GILCMUST, u.v Cary D. Lowe CDI :mh cc: Stewart Berkshire, President, Marinaparld4omeowners Association PASADSNA 13 0vi 4MO-O ' MR'r-24-2002 16�11 16263049711 97Y P.04 06/24/2002 15:05 PAS 16263049711 JEMNS & GILCERIST PASA 91002 Jenkens & Gilchrist, LLP (M)4993 00 CA=W, tLWW (312)415.39°° 55 SOUTH LAKE AVE. (z1A 4" j 4 sTVW OO SUITE 650 11OP o". Tn s PASADENA, C'ALIFOP NIA 91101 (713) 951.3300 LosAN=Zs, C =0"M (310)U0.3300 (626) 578.7400 NTWY0w4NrWY0uc Cary D.Lowe FAQsD&LE (626) 304-9711 $141A1r)° 00 mna�: (626) 578-7421 (210) 246.6000 clowe(MiLnkens.corn www.icnkens.com wnsum=N,D.C. (20Z) 3245-)500 May 22, 2002 VIA U.S. MAIL & FACSI1vII A (949/644-3139) City Attorney Bob Burnham City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 Newport Beach, California 92659-1768 Re: Marinapark Property Extension of Leases Dear Bob: I appreciated the opportunity to meet with you and Robin Clauson recently to discuss the proposed terms of extension of the residential leases at Marinapark. I understand that you are preparing a report to the City Council, and that the Council will consider the issue at the meeting of May 28, 2002. In preparation for that discussion, I would like to clarify a few points. I discussed with the tenants your suggestion that they join with the City in proposing a settlement with the State Lands Commission regarding the alleged tidelands status of the Marinapark site, including a phase -out of the current residential use of the site, accompanied by a lease extension for the duration of such a phase -out period. The tenants wish to defer participating in any such settlement discussions, at least until such time as we have had an opportunity to review the opinion being prepared by Commission counsel Curtis Fossum. In light of the significant effort and expense which the tenants have devoted to building a case for the site being classified as uplands, they do not want to concede this issue prematurely. I spoke with Curtis shortly after our meeting, and he reassured me that he would allow both you and us an opportunity to review and comment on his opinion before he finalizes and releases it. It seems to us that prevailing on this issue would be in the City's best long-term interest, regardless of whether the site remains in its current use for an extended period of time, so we bope that the Council and City staff will continue to work with us in seeking that outcome. PASADMA 13749V) 41750A0001 MAY-24-2002 16:11 16263049711 97Y P.02 05/24/2002 15:08 FAX 10203049711 JEMNS & GILCERIST PASA r3003 v jenkens 8C Gilchrist, LLP City Attorney Bob Burnham City ofNewport Beach May 22, 2002 Page 2 With regard to the lease extension, the tenants reiterate their request for an extended term of at least three years. All parties acknowledge that it is highly unlikely that the City will be prepared to make any other use of the site sooner than that, even if the current proposal for a hotel development proceeds. On the other hand, if the City subsequently should elect to move more quickly to convert use of the site, the longer lease term would not preclude the City from giving notice of closure of Marinapark at an earlier date. The longer term, however, would provide the tenants with greater certainty and stability, and provide an incentive for them to continue investing in the maintenance and improvement of their units, to the benefit of both the residents themselves and the community as a whole. We understand that City staff is recommending that rents be adjusted based on the Appraisal of Fair Rental Value, dated April 4, 2002, prepared for the City by William Hansen, MAI. The tenants are satisfied with W. Hansen's qualifications and support his conclusions. We further understand that the proposed lease extension will include a provision allowing staff to limit rent adjustments for tenants who demonstrate genuine hardship. While this is something that will affect only a few tenants, we appreciate the City addressing the issue. There is another "hardship" issue which remains to be addressed, however. The proposed lease extension provides for a very significant rent increase for any successors to current tenants, apparently as a means of bringing rents up to full market level. While we are not contesting this provision as a general rule, we are concerned that it will cause considerable hardship in those occasional cases where a tenant is forced to terminate their occupancy for personal reasons outside their control. This is a special concern given the advanced age of many of the tenants. In such a case, the resulting greatly increased rent level would be a major burden for their family even if the latter opt to occupy the unit and would greatly inhibit their ability to sell the coach unit. After considerable discussion, the tenants propose that, rather than trying to define a hardship exception, the City instead defer implementing this provision for a period of one year, to allow those tenants who fear their units may become subject to this rule an opportunity to sell and relocate in advance. Finally, I would like to reiterate the tenants' request for a copy of the relocation study that was performed for the City with regard to Marinapark. You initially indicated that the study was still in draft form and therefore not a public document, but there does not appear to be any action being taken to refine it further and we understand that it has been shared with both Council members and members of the press. Accordingly, as the parties most directly impacted by the study, the tenants would like an opportunity to review it at the earliest possible time. PASAnr'.NA 1370A 41750.000oi MAY-24-2002 16:11 16263049711 97% P.03 05/24/2002 15:08 FAX 10263049711 JENKENS & GILCHRIST PASA Z 004 jenkens & Gilchrist, LLP City Attorney Bob Burnham City of Newport Beach May 22, 2002 Page 3 I will, be happy to discuss any of these items with you or other City staff in advance of the upcoming City Council meeting. Thanks for your consideration. Sincerely, JENKENS & GELCMUST, ur Cary A. Lowe CDL:mh cc: Stewart Berkshire, President, Marinapark homeowners Association FASAI)ENA13749YI417"-NW1 MAY-24-2002 16:11 16263049711 9?Y P.04 05/24/2002 15:05 FAX 10263049711 JENKENS & GILCHRIST PASA 0001 ", M-zAvjP-AA . jenkens & Gilchrist, LLP 55 Sclum LAKE AVE. S= 650 PASADENA, CALIFORNIA 91101 FROM THE DESK OF: (626) 578.7400 Cary D. Lowe FACSIMILE (626) 304-9711 (626)578-7421 www.ienkens.com RECIPIENT COMPANY Fax No. 1. Dave Kiff, Asst. City City of Newport Beach 949-644-3020 Manager • MESSAGE Au mjafts cwceco, a„Nors DALLA TDW HousTON,'1= LOSANGD7.a5, CAMORMA NRWYORK, Nsw Yo= SANAWM0,TWS WA6NTN=N, D.C. PRoNE No. 949-644-3002 ATTACHMENT: Copy of letter to City Attorney Bob Burnham regarding issues in proposed Marinapark lease extension Please distribute copies of the attached letter to the Mayor and Members of the City Council prior to the meeting of May 28, 2002. Call if you have any questions regarding the issues raised in the letter. Thank you. NOTICE OF CONFIDENTIALITY The information contained in and transmitted with this facsimile is 1. SUBJECT TO THE ATTORNEY -CLIENT PRIVILEGE; 2. ATTORNEY WORK PRODUCT; OR 3. CONFIDENTIAL. It is intended only for the individual or entity designated above. You are hereby notified that any dissemination, distribution, copying, or use of or reliance upon the information oonmined in and transmitted with this facsimile by or to anyone other than the recipient designated above by the sender is unauthorized and strictly prohibited. If you have received this facsimile in error, please bettimmedin ately returned to the sender by U.S. Mhone atail, or if 626) uthorizaa400 �one sigranytAbbyfacsimile dr, erroneously transmitted to you should Time: 3:01 PM Date: May 24, 2002 PASADENA 13776A 41750-00001 MAY-24-2002 16.10 Emp #: 3463 16263049711 Bluing #: 41750-00001 97% Total Pages (+ Cover): 4 litol r] STATE OF CALIFORNIA _ _ _ (.t, 2,AeA STATE BOARD OF EQUALIZATION JOHAN KLEHS 450 N STREET, SACRAMENTO, CALIFORNIA Fiat District, Heyward PO BOX 942879, SACRAMENTO, CALIFORNIA 94279.0080 DEAN ANDAL DAVID ROSENTHAL (916) 324.2952 Second District, Stockton FAX (916) 322.2958 CLAUDE PARRISH www.boo.ca.A0v Third District Torrance JOHN CHIANG Fouts 013tn4 Los Angeles KATHLEEN CONNELL State Controlter, Se ramento March 27, 2002 — JAMES I— SPEED Executive DPector TO INTERESTED PARTIES: CALIFORNIA CODE OF REGULATIONS TITLE 18. PUBLIC REVENUES DIVISION 2. STATE BOARD OF EQUALIZATION CHAPTER 4. SALES AND USE TAX REGULATION 11660, LEASES OF TANGIBLE PERSONAL PROPERTY -IN GENERAL Following a scheduled public hearing on September 26, 2001, the State Board of Equalization amended Sales and Use Tax Regulation 1660, Leases of Tangible Personal Property -In General. The amendment is effective January 5, 2002. Enclosed for your information is a final printed copy of the regulation. If you have any questions regarding the content of this regulation, please contact Mr. David Rosenthal (916) 324-0293. If you wish extra copies of this regulation, please write to State Board of Equalization, Supply Publications, 3920 West Capitol Avenue, West Sacramento, CA 95691. Sincerely, Deborah Pellegrini, Chief Board Proceedings Division DP:dgo Enclosure State of California BOARD OF EQUALIZATION SALES AND USE TAX REGULATIONS Regulation 1660. LEASES OF TANGIBLE PERSONAL PROPERTY —IN, GENERAL. Reference: Sections 6006, 6006.1, 6006.3, 6006.5, 6009, 6010, 6010.1, 6010.65, 6010.7, 6011, 6012, 6012.6, 6016.3, 6092.1, 6094, 6094.1, 6243.1, 6244, 6244.5, 6379, 6390, 6391, 6407, and 6457, Revenue and Taxation Code. (a) DEFINITIONS. (1) LEASE. The term "lease" includes rental, hire, and license. It includes a contract under which a person secures for a consideration the temporary use of tangible personal property which, although not on his or her premises, is operated by, or under the direction and control of, the person or his or her employees. "Lease," however, does not include a use of tangible personal property for a period of less than one day for a charge of less than twenty dollars ($20) when the privilege to use the property is restricted to use thereof on the -premises or at a business location of the grantor of the privilege (see (a) below). (2) SALE UNDER A SECURITY AGREEMENT. (A) Where a contract designated as a lease binds the 'lessee" for a fixed term and the 'lessee" is to obtain title at the end of the term upon completion of the required payments or has the option to purchase the property for a nominal amount, the contract will be regarded as a sale under a security agreement from its inception and not as a lease. The option price will be regarded as nominal if it does not exceed $100 or 1 percent of the total contract price, whichever is the lesser amount. (B) In the case of a contract designated as a lease with any state or local government, the governmental agency designated as a lessee shall be treated as bound for a fixed term notwithstanding any right it may have to terminate the contract to the extent that sufficient funds are not appropriated to pay amounts due under the contract. Such transactions are subject to tax as sales under a security agreement at their inception. (3) SALE AND LEASEBACK TRANSACTIONS. (A) General. Transactions structured as sales and leasebacks will be treated as financing transactions if (1) the lease" transaction would be regarded as a sale at inception under paragraph (a)(2) of this regulation, (2) the purchaser -lessor does not claim any deduction, credit or exemption with respect to the property for federal or state income tax purposes, and (3) the amount which would be attributable to interest, had the transaction been structured originally as a financing agreement, is not usurious under California law. Transactions treated as financing transactions are not subject to sales or use tax. (B) Special Application. Transactions structured as sales and leasebacks will also be treated as financ- ing transactions if all of the following requirements are met: 1. The initial purchase price of the property has not been completely paid by the seller -lessee to the equipment vendor. 2. The seller -lessee assigns to the purchaser -lessor all of its right, title and interest in the purchase order and Invoice with the equipment vendor. 3. The purchaser -lessor pays the balance of the original purchase obligation to the equipment ven- dor on behalf of the seller -lessee. 4. The purchaser -lessor does not claim any deduction, credit or exemption with respect to the property for federal or state income tax purposes. 5. The amount which would be attributable to interest, had the transaction been structured originally as a financing agreement, is not usurious under California law. 6. The seller -lessee has an option to purchase the property at the end of the lease term, and the option price is fair market value or less. Regulation 1660. (Continue (C) Tax Benefit Transactions. Tax does not apply to sale and leaseback transactions entered into in accordance with former Internal Revenue Code Section 168(f)(8), as enacted by the Economic Recovery Tax Act of 1981 (Public Law 97-34). (D) Acquisition Sale and Leaseback Transactions. No sales or use tax applies to the transfer of title to, or the tease of, tangible personal property pursuant to an acquisition sale and leaseback, which is a transac- tion satisfying all of the following conditions: 1. The seller/lessee has paid California sales tax reimbursement or use tax with respect to that person's purchase of the property. 2. The acquisition sale and leaseback is consummated within 90 days of the seller/lessee's first func- tional use of the properly. (This 90 day period does not begin to run until the first functional use of the property; a period of storage after purchase, but before the first functional use, Is not used to calculate the 90 day period). S. The -acquisition sale and leaseback transaction Is consummated on or after January 1, 1991. The sale of the property at the end of the lease term is subject to sales or use tax. Any lease of the property by the purchaser/lessor to any person other than the seller/lessee would be subject to use tax measured by rentals payable. A lease to the seller/lessee at the end of the original lease term is subject to use tax measured by rentals payable unless such lease is pursuant to an election to exercise amoption to extend the lease term, which option was contained in the original lease agreement. (b) LEASES AS SALES OR PURCHASES. (1) IN GENERAL. Any lease of tangible personal properly in any manner whatsoever for a consideration is a "sale" as defined in section 6006 of the Revenue and Taxation Code, and a "purchase" as defined in section 6010 of the Revenue and Taxation Code, except a lease of: (A) Motion picture films and video tapes, including television films and video tapes, whether or not they are productions complete in themselves. See, however, subdivision (d)(2) below for application of tax for periods on and after September 1, 1983, to leases of video cassettes, videotapes, and videodiscs for private use under which the lessee or renter does not obtain or acquire the right to license, broadcast, exhibit, or reproduce the video cassette, videotape, or videodisc. (B) Linen supplies and similar articles, including such items as towels, uniforms, coveralls, shop coats, dust cloths, caps and gowns, etc., when an essential part of the tease is the furnishing of the recurring service of laundering or cleaning of the articles [eased. (C) Household furnishings with a lease of the living quarters in which they are to be used. The lessor of the household furnishings must also be the lessor of the living quarters. The living quarters must be real property rather than tangible personal property. (D) Mobile transportation equipment for use in transportation of persons or property (see regulation 1661 (18 CCR 1661)). (E) Tangible personal property leased in substantially the same form as acquired by the lessor or leased In substantially the same form as acquired by a transferor as to which the lessor or his or her transferor acquired the property in a transaction that was a retail sale with respect to which the lessor or the transferor has paid sales tax reimbursement or as to which the lessor or the transferor has timely paid use tax measured by the purchase price of the property. As used herein, "transferor" means: 1. A person from whom the lessor acquired the property in a transaction described in section 6006.5(b) of the Revenue and Taxation Cade, or 2. A decedent from whom the lessor acquired the property by will or by law of succession. For purposes of 1. above, the transaction will qualify if the properly is acquired in a transfer of all or substantially all of the tangible personal properly held or used by the transferor in all of his or her activities requiring the holding of a seller's permit or permits or in an activity or activities not requiring the holding of a seller's permit or permits, and the ownership of the tangible personal property is substantially similar after the transfer. Regulation 1660. (Continue* • (F) Tangible personal property occurring on or after January 1, 1997 described in sections 17053.49 or 23649 of the Revenue and Taxation Code by the manufacturer of that property when leased to a qualified person; as described in sections 17053.49 or 23649 of the Revenue and Taxation Code, in a form not substantially the same as acquired as -to which the manufacturer made a timely election to report and pay tax measured by the cost price of that -property as defined in section 6244.5 of the Revenue and Taxation Code and Regulation 1525.3. (G) A mobilehome, as defined in sections 18008(a) and 18211 of the Health and Safety Code, other than a mobilehome originally sold new prior to July 1, 1980 and not subject to local property taxation. (2) LEASES AS CONTINUING SALES AND PURCHASES. In the case of any lease that is a "sale" and "purchase" under subdivision (b)(1) above, the granting of possession by the lessor to the lessee, or to another person at the direction of the lessee, is a continuing sale in this state by the lessor, and the possession of the property by a lessee, or by another person at the direction of the lessee, is a continuing purchase for use in this state by the lessee, as respects any period of time the leased property is situated in this state, irrespective of the time or place of delivery of the property to the lessee or such other persons. The application of tax to such leases Is set forth below. (c) GENERAL APPLICATION OF TAX. (1) NATURE OF TAX. In the case of a lease that is a "sale" and "purchase" the tax is measured by the rentals payable. Generally, the applicable tax is a use tax upon the use in this state of the property by the lessee. The lessor must collect the,tax from the lessee at the time rentals are paid by the lessee and give him or her a receipt of the kind called for in Regulation 1686 (18 CCR 1686). The lessee is not relieved from liability for the tax until he or she is given such a receipt or the tax is paid to the state. When the lessee is not subject to use tax (for example, insurance companies), the sales tax applies. The sales tax is upon the lessor and is measured by the rentals payable. Neither the sales tax nor the use tax applies to.leases to the United States and its instrumentalities unless federal law permits taxing the instrumentality. For a more complete explanation regarding sales to the United States and its instrumentalities see Regulation 1614 (18 CCR 1614). The "rentals" subject to the tax include any payments required by the lease, including amounts paid for personal property taxes on the leased property, whether assessed directly against the lessee or against the lessor, but does not include amounts paid to the lessor for: (A) Collection costs, including attorney's fees, court costs, repossession charges, and storage fees; but tax does apply to any delinquent rental payments, including those collected by court action; (B) Insuring, repairing or refurbishing the leased property following a default; (C) Cost incurred in defending a court action or paying a tort judgment arising out of the lessee's operation of the leased property, or any premiums'paid on insurance policies covering such court actions or tort judgments; (D) Cost incurred in disposing of the leased property at expiration or earlier termination of the lease; (E) Late charges and interest thereon for failing to pay the rentals timely; (F) Separately stated optional insurance charges, maintenance or warranty contracts; (G) Personal property taxes assessed against personal property where a bank or financial corporation is the lessor. (2) PROPERTY LEASED IN FORM ACQUIRED. No� sales or use tax is due with respect to the rentals charged for tangible personal property leased in substantially the same form as acquired by the lessor, or by his or her transferor, as to which the lessor or transferor has paid sales tax reimbursement or has paid use tax measured by the purchase price. If such tax has not been so paid, and the lessor desires to pay tax measured by the purchase price, it must be reported and paid timely with the return of the lessor for the period during which the property is first placed in rental service. A timely return is a return filed within the time prescribed by sections 6452 or 6455 of the Revenue and Taxation Code, whichever is applicable. Regulation 1660. (Continue 0 (3) PROPERTY PURCHASED TAX PAID. In the case of property ultimately leased in substantially the same form as acquired, payment of tax or tax reimbursement measured by the purchase price -at the time the property is acquired constituted an irrevocable election not to pay tax measured by rental receipts. The lessor may not change his or her election by reporting tax on rental receipts and claiming a tax -paid -purchase -resold deduction. (4) PROPERTY ACQUIRED IN EXEMPT TRANSACTIONS. (A) A purchaser of tangible personal property acquired in a transaction defined as an occasional sale in section 6006.5(a) of the Revenue and Taxation Code and leased in substantially the same form as acquired by him or her, may elect to pay use tax measured by the purchase price of the property in lieu of tax measured by rental receipts. (B) A purchaser of tangible personal property acquired in a transaction which qualifies under section 6006.5(b) of the Revenue and Taxation Cade and leased In substantially the same form as acquired by his or her transferor may elect to pay use tax measured by his or her transferor's purchase price of the property in lieu of tax on rental receipts. This provision has application where the transferor did not pay tax or tax reimbursement when he or she acquired the property. For purposes of this provision, the transaction will qualify If the property is acquired in a transfer of all or substantially all of the tangible personal property held or used by the transferor in all of his or her activities requiring the holding of a seller's permit or permits or in an activity or activities not requiring the holding of a seller's permit or permits and the ownership of the tangible personal property is substantially similar after the transfer (see also (b)(1)(E) above). (C) The election provided for in subdivisions (c)(4)(A) and (c)(4)(B) above shall be exercised by the lessor in a timely return filed for the period in which the property is first leased by him or her. (5) PROPERTY SUBLEASED. Tax does not apply to receipts from subleases of tangible personal property which is leased in substantially the same form as acquired by the prime lessor where the prime lessor has paid sales tax reimbursement or use tax measured by his or her purchase price. Also, tax does not apply to subleases of tangible personal property if the tax is paid on rental receipts derived under the prime lease, or any prior sublease. (6) USE OF PROPERTY BY LESSOR. If a lessor, after leasing property and collecting and paying use tax, or paying sales tax, measured by rental receipts, makes any use of the property in this state, other than an incidental use, he or she is liable for use tax measured by the purchase price of the property. He or she may, however, apply as a credit against the tax so computed, the amount of tax previously paid to the Board with respect to rentals of the property. If the credit is less than the tax, he or she must pay the difference with his or her return, but may apply the amount of such payment against his or her liability for tax on subsequent rentals of the property. Effective January 1, 1973, through December 31, 1978, any amount collected as tax or tax reimbursement by the lessor from the lessee on such subsequent rentals will be regarded as excess tax reimbursement to the extentthat the lessor is permitted by the foregoing provisions to apply the amount of his or her payment for use tax against his or her liability for tax on subsequent rentals of the property. An incidental use, e.g., a brief loan of property which otherwise is leased by the lessor pursuant to leases which are continuing sales, subjects the lessor to liability for use tax measured by the fair rental value of the property during the period of the incidental use. (See Regulation 1669.5(b)(7) (18 CCR 1669,5(b)(7)).) (7) OPTIONS TO PURCHASE. An agreement providing for the lease of tangible personal property and grant- ing the lessee an option to purchase the property results in a sale when the option is exercised. The tax applies to the amount required to be paid by the purchaser upon the exercise of the option. (8) TAX PAID TO ANOTHER STATE. A lessor who leases property in substantially the same form as acquired and who has paid a retail sales or use tax, or reimbursement therefor, imposed with respect to that property by any other state, political subdivision thereof or the District of Columbia prior to leasing the property in this state may credit the payment against any use tax imposed on him or her by this state because of such lease. However, to be entitled to the credit the lessor must make a timely election to measure any tax liability for the property by its purchase price, unless the out-of-state tax equals or exceeds the tax Imposed on him or her by this state. If the out-of-state tax equals or exceeds the tax Imposed on him or her by this state, the lessor will be deemed to have made a timely election and the rental receipts will not be subject to tax provided the property is leased in Regulation 1660. (Continue* • substantially the same form as acquired. If a timely election is not made, no credit will be allowed,because the tax due will be a use tax measured by rental receipts and imposed directly against the lessee, a person other than the one who paid the out-of-state tax or tax reimbursement. if the lessee is not subject to use tax and the lessor does not make a timely election to pay tax measured by his or her purchase price, he or she may not credit the amount of the out-of-state tax against the tax due on the rental receipts because the tax due is a sales, tax rather than a use tax. A credit otherwise permitted by the foregoing provisions shall not be allowed against taxes which are measured by periodic payments made under a lease, to the extent that taxes imposed by any other state, political subdivision or the District of Columbia were also measured by periodic payments made under a lease prior to the lease of the property in this state. (9) ASSIGNMENT OF LEASES. (A) In General — Status of Assigned Leases. The situations described in (B), (C), and (D) below involve existing leases which are "sales" and "purchases" subject to tax measured by rental payments. When such a lease is assigned, whether or not title to the leased property is transferred, the rental payments remain subject to tax, without any option to measure tax by the purchase price. An assignee -purchaser who uses the property after termination of the lease is subject to use tax measured by the purchase price as provided in subdivision (c)(6) above. Generally, when an existing lease that is not a "sale" and "purchase" is assigned, whether or not title to the leased property is transferred, the rental payments are not subject to tax. If title is transferred, tax applies measured by the sales price. For rules relating to the assignment of leases of mobile transportation equipment coming within the exclusions provided in sections 6006(g)(4) and 6010(e)(4) of the Revenue and Taxation Code, see Regulation 1661 (18 CCR 1661). (B) Assignment of a Right and Creation of a Security Interest. This type of assignment is an assign- ment by the lessor of the right to receive the rental payments together with the creation of a security interest in the leased property which is designated as such. The assignee has recourse.against the assignor. The assignee in this situation does not have the rights of a lessor and is not obligated to collect or pay the tax measured by the rental payments. The lessor remains subject to the obligation of collecting and reporting the tax even if he or she does not receive the rental payments directly from the lessee. The assignee, however, is obligated to remit to the Board any amounts paid to him or her by the lessee as tax. If the assignee enforces the security agreement and takes title to the property, the assignee as lessor becomes responsible for collecting and reporting the tax. (C) Assignment of Contract with Transfer of Right, Title, and Interest for Security Purposes. This type of assignment Is an assignment by the lessor of the lease contract together with the transfer of the right, title, and interest in the leased property for security purposes. After the termination of the lease, the property usually reverts to the original lessor. The assignment contract may specify that the transfer is for security purposes, or the circumstances may otherwise demonstrate it (e.g., a separate agreement that the property will be returned to the assignor at the termination of the lease). The assignee has recourse against the assignor. In this situation, the assignee has assumed the position of a lessor. He or she is required to hold a seller's permit and is obligated to collect, report and pay the tax to the Board. The assignor should obtain a resale certificate, covering the property in question, from the assignee. (D) Assignment of Contract and All Right, Title, and Interest. This type of assignment is an assign- ment by the lessor of the lease contract together with the transfer of all right, title, and interest in the leased property. The assignment is not for security purposes, and the assignor does not retain any substantial ownership rights in the contract or the property. The assignee has no recourse against the assignor. In this situation, the assignee has assumed the position of a lessor. He or she is required to hold a seller's permit and is obligated to collect, report and pay the tax to the Board. The assignor should obtain a resale certificate, covering the property in question, from the assignee. Regulation 1660. (Conflnuel 11 (d) PARTICULAR APPLICATIONS. (1) PORTABLE TOILETS. A lease of a portable toilet unit is a sale or purchase and tax applies measured by the lease or rental price regardless of whether the unit is leased in substantially the same form as acquired and regardless of whether sales tax reimbursement or use tax has been paid. Charges for mandatory maintenance or cleaning services of portable toilet units are subject to tax as part of the rental price. Charges for optional maintenance or cleaning services of portable toilet units are not part of the rental price of the portable toilet units and are not subject to tax. Maintenance or cleaning services are mandatory within the meaning of this regulation when the lessee, as a condition of the lease or rental agreement, is required to purchase the maintenance or cleaning service from the lessor. Maintenance or cleaning services are optional within the meaning of this regulation when the lessee is not required to purchase the maintenance or cleaning service from the lessor. Charges for maintenance or cleaning services will be considered mandatory and therefore part of the taxable rental price, unless the lessor provides documentary evidence establishing that such charges are optional. The terms of the lease or rental agreement determine whether the maintenance or service charges are mandatory or optional. in the absence of a lease or rental agreement, or in the absence of language in the lease or rental agreement specifying whether the maintenance or service charges are mandatory or optional, an invoice stating that the maintenance or cleaning charges are optional, and separately stating these charges from the rental charge, will be sufficient to support the exemption from tax. Other documentary evidence may be accepted by the Board to establish that the maintenance or cleaning is performed at the option of the lessee. When the maintenance or cleaning services are subject to tax, the supplies used to perform these services are considered to be sold with the services and may be purchased for resale. When the maintenance or cleaning services are not subject to tax, the provider of these services is the consumer of the supplies, and tax generally applies to the sale to or the use of these supplies by the provider of the maintenance or cleaning services. (2) VIDEO CASSETTES, VIDEOTAPES, VIDEODISCS. On and after September 1, 1983, the rental or lease of a video cassette, videotape, or videodisc for private use under which the lessee or renter does not obtain or acquire the right to license, broadcast, exhibit, or reproduce the video cassette, videotape, or videodisc is a sale or purchase and tax applies measured by rental receipts. Tax applies measured by rental receipts regardless of whether the property is leased in substantially the same form as acquired and regardless of whether sales tax reimbursement or use tax has been paid by the lessor with respect to the purchase price of the video cassette, videotape, or videodisc. If the property was rented, leased or otherwise used prior to September 1, 1983, no refund, credit, or offset for any sales tax reimbursement or use tax paid on the purchase price will be allowed against the tax measured by the lease or rental price after September 1, 1983. (3) LEASE OF AN ANIMAL. A lease of any form of animal life of a kind the products of which ordinarily constitute food for human consumption is not subject to tax. (4) COMPOSED TYPE, REPRODUCTION PROOFS, IMPRESSED MATS. Tax does not apply to leases of composed type or reproduction proofs thereof by a typographer to another person for use in the preparation of printed matter or to leases of such reproduction proofs or impressed mats to a printer or publisher for use in printing, except when the reproduction proof is a component part of a "paste-up," "mechanical" or "assembly." (5) REPAIR PARTS. Sales tax does not apply to sales of repair parts to a lessor which are used by him or her In maintaining the leased equipment pursuant to a mandatory maintenance contract where the rental receipts are subject to tax. Such repair parts are regarded as being part of the sale of the leased item and may be purchased for resale. The amount paid by the lessee under the mandatory maintenance contract is regarded as part of the rental payments. (6) NEON SIGNS. A lease of a neon sign that is personal property is subject to the provisions of the Sales and Use Tax Law as any other lease of personal property. (7) PROPERTY AFFIXED TO REALTY. For the purpose of this regulation, 'tangible personal property' in- cludes any leased fixture affixed to realty if the lessor has the right to remove the fixture upon breach or Regulation 1660. (Continue* • termination of the lease agreement, unless the lessor of the fixture is also the lessor of the realty to which the fixture is affixed. The term fixture as used herein has the same meaning as the term 'fixture" in Regulation 1521 (18 CCR 1521). Leases of structures together with the component parts of such structures, e.g., plumbing fixtures, air conditioners, water heaters, etc., will be treated as leases of real property. Accordingly, tax applies to contracts to construct such structures and the attached components in accordance with Regulation 1521 (18 CCR 1521). On and after September 26, 1989, leases of factory -built school buildings (relocatable classrooms) as defined in paragraph (c)(4)(B) of Regulation 1521 (18 CCR 1521), "Construction Contractors", will be treated as leases of real property with the lessor to the school or school district as the consumer. If the lessor is the manufacturer, tax applies to the manufacturer's costs of all tangible personal property used in constructing the factory -built school building. If the lessor is other than the manufacturer, tax applies to 40% of the sales price of the factory -built school building to such lessor. For purposes of this section, "structure" does not include any prefabricated mobile homes or similar items which are registered with the Department of Motor Vehicles. It also does not include a portable building, such as a shed or kiosk, which is moveable as a unit from its site of installation, unless the building is physically attached to the realty, upon a concrete foundation or otherwise. Such a building resting in place by its own weight, whether upon the ground, a concrete slab, or sills or piers, is not a "structure." A prefabricated or modular building similar in size to, but which is not, a factory -built, school building (relocatable classroom) is a "structure" whether the building rests in place by its own weight or is physically attached to realty. Those fixtures which are essential to the structure such as heating and air conditioning units, sinks, toilets, and faucets, which are leased by the lessor of the structure to which they are attached are considered part of the structure and therefore improvements to real property. On the other hand, those fixtures which although being a component part of the structure are leased by other than the lessor of the structure, will be considered tangible personal property. Accordingly, the tax consequences with respect to such fixtures will be the same as with respect to any other lease of tangible personal property. (8) MOSILEHOMES. (A) The leasing of any mobilehome purchased by a retailer without payment of sales tax reimbursement or use tax and first leased prior to July 1, 1980, is a continuing sale and tax is due measured by the periodic lease payments unless the mobilehome becomes subject to local property taxation, in which event the lease of the property is thereafter exempt from the sales and use tax. (B) The lease of a new mobilehome purchased by a retailer without payment of sales tax reimbursement or use tax and first leased on or after July 1, 1980, is excluded from classification as a continuing sale and the lessor's use of such property by leasing is subject to the use tax. If the use of the property is for occupancy as a residence then the tax is measured by an amount equivalent to 75 percent of the purchase price paid by the lessor's vendor. In the absence of satisfactory evidence of the vendor's purchase price it shall be presumed that the measure of use tax is an amount equivalent to 60 percent of the sales price of the mobilehome to the lessor unless the vendor is also the manufacturer. If such mobilehome is purchased by the lessor from the manufacturer, the measure of the use tax liability is 75 percent of the purchase price of the mobilehome to the lessor. If the use of the property is not for occupancy as a residence, then the tax is measured by the full retail sales price to the lessor. (C) The subsequent lease of a used mobilehome which was first sold new in this state after July 1, 1980, is exempt from the sales and use tax. (e) GRANT OF PRIVILEGE TO USE WHICH IS NOT A LEASE. (1) IN GENERAL. Certain restricted grants of a privilege to use property are excluded from the term "lease." To fall within the exclusion, the use must be for a period of less than one continuous 24-hour period, the charge must be less than $20, and the use of the property must be restricted to use on the premises or at a business location of the grantor of the privilege to use the property. 7 Regulation 1660. (Continuo 0 (2) DEFINITIONS. (A) "Grantor of the privilege" means a person who allows another person to use the personal property. (0) "Use" includes the possession of, or the exercise of any right or power over personal property by a grantee of a privilege to use the personal property. (C) "Premises" or "business location" means a building or specific area owned or leased by a grantor or to which a grantor has an exclusive right of use or a space occupied by the personal property which a grantor allows other persons to use in place. For example: 1. A place in a depot at which a grantor places a coin -operated amusement device pursuant to a contract with the management of the depot. 2. An area in an apartment house or motel where a grantor has a right to place coin -operated washing machines and dryers for use by occupants of the apartment house or motel. 3. A laundromat owned or leased by a person who places therein coin -operated washing machines and dryers for use by customers. 4. A riding stable at which horses are furnished to the public at'an hourly rate with a restriction that the horses be. ridden within a specific area owned or leased by a grantor of the privilege. The "specific area" might be an enclosed arena or other place the exterior boundaries of which are defined by walls, fences or otherwise in such a manner that the area readily can be recognized and distinguished from -adjoining or surrounding property. S. A golf course owned or leased by a golf club which owns or leases golf carts that it furnishes to persons for use in playing the course, or a golf course under the supervision and control of a golf professional who owns or leases golf carts that he or she furnishes to persons for use in playing the course. (3) EXAMPLES OF SITUATIONS WHICH DO NOT QUALIFY FOR EXCLUSION FROM THE TERM "LEASE". (A) One of several rental firms permitted by a -hospital to do so rents a portable television set and stand to a hospital patient for a charge of $4.00 per day for a period of six days. This situation does not qualify for the exclusion because the period of "use" is not for less than one day, the total rental is not less than $20 and the place of use is not the "premises" or "business location" of the rental firm since it does not have "exclusive right of use" of the hospital as regards the placing of its rental units therein nor is the space regularly occupied by it for use in place. (B) Rental of a canoe for a period of eight hours for a total charge of $4 when the customer will use the canoe on the Russian River. This situation does not qualify for the exclusion because the river is not the premises or business location of the grantor of the privilege. (C) Rental of tools to be used on the premises of the owner of the tools for a period of eight hours invoiced as follows: 1 Portable lamp ............ ................ $4 1 Wheel pulley...............................4 1 Portable hoist ..............................4 1 Sander.........................................4 1 Spray gun....................................5 Total rental ....... ....................... $21 This situation does not qualify for the exclusion because the agreement for rental of the property is a single agreement involving rental charges of $21 and does not meet the requirement that the charge be less than $20. (D) An equipment rental firm rents a cement mixer to a customer who takes the mixer to his or her home and uses it for less than one day. The rental charge is $9. The mixer is of a type which must be firmly "in place" during the cement mixing operation. Regulation 1660. (Continued* Cl This situation does not qualify for the exclusion because although the mixer is firmly "in place" during the mixing operation, it is not in a space regularly occupied by it for use in place by customers of the grantor. (4) APPLICATION OF TAX TO SITUATIONS QUALIFYING FOR EXCLUSION FROM THE TERM "LEASE". The grantor of the privilege to use property under the conditions described in (e)(1) above is the consumer of the property. Accordingly, charges by him or her for the privilege to use the property are not subject to tax. Tax applies to the sale of the property to him or her by a retailer or to his or her use of the property, measured by his or her purchase price, when the property is purchased from a retailer in California under a resale certificate or from a retailer at an out-of-state location. If the property is acquired through an "occasional sale" as defined in section 6006.5 of the Revenue and Taxation Code, or other exempt transaction, no tax applies to the acquisition or use of the property by the grantor nor to his or h6sr charges for the privilege to use the property. History., Amended November 3, 1969, applicable on and after November 10, 1969 Amended November 5, 1970, effective December 10, 1970. Amended and renumbered November 3, 1971, effective December 3, 1971. Amended December 15, 1971. applicable on and after December 15, 1971. Amended February 16,1972, effective March 25, 1972. Amended November 15, 1972, effective December 21, 1972. Amended June 24, 1976, effective July 30, 1976. In (c)(7) added and defined "incidental use." Amended August 17, 1976, effective September 19, 1976. Noted that sales tax on United States or Its Instrumentalities Is legal only when permitted by federal law Amended August 17, 1976, effective October 23, 1976 Added part of (c)(1) previously deleted in error. Amended December 7, 1978, effective January 28, 1979. Deletes language pertaimng to excess lax reimbursement; amends subsection (b)(1)(E) which provides when leases of tangible personal property are not considered sales; and amends subsection (c)(1) to provide that after 1/1/79 leases of tangible personal property to the United States are subject to sales tax. Amended March 7, 1979, effective May 16, 1979. Altered definition of "lease"„operative 1/1179. Amended February 6, 1980, effective March 29,1980. Added Sections 6092.1, 6243.1 and 6381.5 to references. In (c)(1) deleted "state and national banks," and substituted "a federally -chartered bank exempt from direct slate taxation under federal law," and added four conditions forexemption from sales tax; in (0)(8) deleted "bank"and substituted "federally -chartered bank exempt from direct stale taxation under federal law"; in (c)(9)(A) deleted sentences referring to Section 6094 (d) and 6244 (d); added final paragraph. Amended August 1, 1980, effective August 22, 1980, operative July 1, 1980. In (b), added (1)(F), in (d), added (8), Amended November 19, 1980, effective January 16,1981.In (d)(8)(B) added provisions regarding manufacturer, added paragraph re measure when property not used as residence. Amended April 1, 1981, effective August 19, 1981. In (b)(1)(E) deleted requirement that lessors prove Thal retailer paid lax to the Board; substituted "lessor or the transferor has paid sales tax reimbursement." in (c)(2) added "has paid sales tax reimbursement"; deleted "or their vendor has paid sales tax measured by gross receipts." Amended October 26, 1983, effective November 17, 1983. Added last sentence to subparagraph (b)(1)(A) and new subparagraph (2) to subdivision (d), and renumbered former subparagraphs (2) through (8) to (3) through (9). Amended May 9,1985, effective September 22,1985. In Subdivision (c)(1), deleted references Indicating that sales tax applies to leases to the United Slates and its tax-exempt instrumentalities. In subdivision (c)(1), added definitions of "rentals subject to tax" and provided for the exclusion of certain other charges by the lessor which are not part of rentals. In subdivision (c)(8), deleted references to the United States and Its tax-exempt instrumentalities and added reference to the lessee who Is "not subject to use tax". Amended May 10, 1989, effective July 26, 19119. Amended to include changes necessitated by AS 4417, Chapter 825, Statutes of 1986, and by the holding in Cedars -Sinai Medical Centerv. State Board of Equalization, 162 Cal.App.3d 1182 (1984). See subdivisions (a)(2)(B) and (a)(3)(A), (B) and (C). Also amended subdivisions (d)(1), (d)(3) and (a) to delete unnecessary language and subdivision (d)(8) to correct a typographical error. Amended June 5, 1991, effective August 22, 1991. Deleted explanation of the application of tax to leases of certain structures which were entered into prior to 1971, Amended paragraph (b)(1)(F) to limit definition of "mobilehome" for purposes of this regulation to paragraph (a) of Section 18008 and to paragraph 18211. Health and Safety Code. Amended paragraph (d)(8) to delete outdated information and to clarify treatment of leases of factory -built school buildings. Amended August 1, 1991, effective August 27, 1991. Amended pursuant to Chapter 85, Statutes of 1991, and Chapter 88, Statutes of 1991, to repeal an exemption from sales and use lax for tax an the sale or use of a photograph when possession but not title of the photograph is transferred forthe purpose of being reproduced one time only in a newspaper regularly issued at average intervals not exceeding three months. Subparagraphs of paragraph (b) were renumbered. Amended May 3, 1994, effective July 30, 1994. Added subdivision (a)(3)(D) to define acquisition sale and leaseback, the period of time the provision will be used, and interprets its application to various post -lease transactions. Regulation 1660. (Contfnl* Amended June 22, 1995, effective July 22. 1995. Deleted subparagraph (a)(3)(D)4. as provided In Statutes of 1994, Chaptor266. Amended November 5,1997,effectivoDecembor5, 1997. Added new subdivision (b)(1)(F) to incorporate provisions of Chapter954, Statutes of 1996, and renumbered the following subdivision. Amended February 23, 2000, effective May 25, 2000. Added subdivision (c)(1)(0). Amended Sootamber26.2001. offecliveJanuarv5 2002.Subdivislon(d)(1)—'chomicat'changedio"portablo.'Newunnumbaredparagmphs added. Regulations are issued by the State Board of Equalization to Implement, interpret or make specific provisions of the California Sales and Use Tax Law and to aid in the administration and enforcement of that law. If you are In doubt about how the Sales and Use Tax Law applies to your specific activity or transaction, you should write the nearest State Board of Equalization office. Requests for advice regarding a specific activity or transaction should be In writing and should fully describe, the facts and circumstances of the activity or transaction. 10 w BACKGROUND AND QUALIFICATIONS Scott A. Lidgard, MAI President of LIDGARD AND ASSOCIATES INCORPORATED Full service appraisal firm encompassing all types of real property including commercial, industrial, complex residential, and special use properties. Scott A. Lidgard has over 15 years experience in the appraisal of real property for various clients Including public agencies, corporations, law firms in connection with litigation support, accountants, and private clients. OFFICE ORGAANIZATIONAL STRUCTURE: Principal Appraiser: Market Research Analyst: Market Research Analyst: Market Research Assistant: Market Research Assistant: Office Administrator: Office Assistant: Scott A. Lidgard Wesley E. Haugen Chris T. Groseclose Tamara R. Montague Melissa C. Cook Sarah A. Petty Kelly M. Lidgard PROFESSIONAL ORGANIZATION AFFILIATIONS: MAI Designated Member of the Appraisal Institute (Member No. 11715). Candidate Member of the CCIM Institute pursuing the Certified Commercial Investment Member (CCIM) designation (Member No. 6646655). STATE CERTIFICATION: Certified General Real Estate Appraiser by the Office of Real Estate Appraisers, State of California. Certificate No. AGO04014. BROKER'S LICENSE: Licensed California Real Estate Broker (License No. 00825141). EXPERT WITNESS: Qualified as an expert on Real Property Valuation in the Los Angeles, Orange, and Riverside County Superior Courts, and Federal Bankruptcy Court. LIDGARD AND ASSOCIATES APPRAISERS CONSULTANTS BACKGROUND AND QUALIFICATIONS (Continued) ACADEMIC BACKGROUND California State University, Fullerton B.S., Business Administration, major emphasis in real estate finance. Successfully completed various educational courses and seminars sponsored by the Appraisal Institute, as well as other real estate and business organizations. BUSINESS AFFILIATIONS: Appraisal Experience: President, Lidgerd and Associates, Inc., Orange, California, established October 1, 1997. Vice President, R. P. Laurain & Associates, Inc„ Long Beach, California, between 1984 and 1997. Real Estate Sales Associate, Merrill Lynch Realty, Placentia, California, between 1982 and 1984. APPRAISAL SERVICES RENDERED: Real estate appraisal services performed on projects for the following public agencies and private corporations, since 1984: Cities: City of Azusa City of Baldwin Park City of Bell City of Bellflower City of Bell Gardens City of Carson City of Cathedral City City of Costa Mesa City of Diamond Bar City of Garden Grove City of Hawaiian Gardens City of Huntington Park City of Indio City of La Mirada City of La Quinta City of Long Beach City of Lynwood City of Mission Viejo City of Monterey Park City of Ontario City of Palm Desert City of Palm Springs City of Pasadena City of Pico Rivera City of Placentia City of Pomona City of Rancho Mirage City of Redondo Beach City of Rialto City of Riverside City of Santa Ciarita City of San Clemente City of San Bernardino City of San Juan Capistrano City of Santa Ana City of Signal Hill City of Whittier City of Yorba Unda LIDGARD AND ASSOCIATES nPPRA 1Sr RS� CONS ULTANTS r-1 L E ga-gKqROUND AND QUALIFICATIONS (Continued) AppRA1SAL sERVICES RENDERED (Continued) Redevelopment Agencies: Baldwin Park Redevelopment Agency Bell Redevelopment Agency Bell Gardens Redevelopment Agency Buena Park Redevelopment Agency Carson Redevelopment Agency Cathedral City Redevelopment Agency El Monte Redevelopment Agency Garden Grove Redevelopment Agency Glendale Redevelopment Agency Huntington Beach Redevelopment Agency Huntington Park Redevelopment Agency La Puente Redevelopment Agency Long Beach Redevelopment Agency Los Angeles Community Redevelopment Agency Norwalk Redevelopment Agency Ontario Redevelopment Agency Rialto Redevelopment Agency Riverside Redevelopment Agency San Bernardino Redevelopment Agency Signal Hill Redevelopment Agency Whittier Redevelopment Agency Yorba Linda Redevelopment Agency Other Government Agencies: County of Los Angeles, Internal Services Division Inland Empire Utilities Agency Long Beach Unified School District Los Angeles Unified School District Port of Long Beach Port of Los Angeles Resolution Trust Corporation U. S. Department of Navy Financial Institutions: Farmers and Merchants Bank First Federal Bank Harbor Bank Long Beach Bank Mineral King National Bank LIDGARD AND ASSOCIATES AP P IA A IS ER S -CONS I ri,TA NTS 0 BACKGROUND AND QUALIFICATIONS (Continued) &RERAISAL SERVICES RENDERED (Continued) Financial Institutions: (Continued) Northern Trust Bank Queen City Bank Sumitomo Bank, Ltd. Union Bank Asset Management Companies: Amresco, Inc. American Residential Mortgage Corporation BEI Management, Inc. Emerson International Equitable Real Estate Investment Management EQ Services Icon Associates Independence One Pacific Southwest Partners Private Companies/Corporations: Allstate insurance Company Bridgestone/Firestone, Inc. Burke, Williams & Sorenson, LLP Carl Karcher Enterprises Eastman Kodak Company Ferro Corporation Fiscal Federal Credit Union Flagstar Companies Guild Financial Harbor Chevrolet Inland Partners Corporation Kaufman and Broad Latham & Watkins Madden, Jones & Cole, Attorneys at Law Oliver, Vase, Sandifer, Murphy & Lee Pan Pacific Development Rutan & Tucker, LLP Scotsdale Insurance Snell & Wilmer, Attorneys at Law T.R.W. The Trust for Public Land Westport Packers Windes and McClaughry, Accountancy Corporation Wise, Wiezorek, Timmons & Wise, Attorneys at Law LIDGARD AND ASSOCIATES AYYRAISURS CONSULTANTS March 13, 2002 t Mr. David Kiff Assistant City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 Dear Mr. Kiff: I have been following the media reports regarding the rental dispute at the Marinapark Mobile Home Park. Our firm has been involved in ap- Long Office: praising several mobile home park properties in the greater Southern 3353Linde Avenue California area. We recently completed an appraisal study of the 90 Suite 200 space oceanfront Capistrano Shores Park in the City of San Clemente. Long Beach, A p Y 90807-4503 It is understood that the City Council has requested that an appraisal be conducted of the Marinapark facility. In the event an appraiser has not been selected for the rental value study, I would appreciate the opportu- nity of submitting a proposal. A resume of our background and qualifi- Orange county 2808 cations is enclosed herewith for your review. Suite 107atetta Suite 07 Orange, CA Very truly yours, 92867 - 5246 LIDGARD AND Telephone: o . ' gar , AI (714)633 (562) - Sc633 - Certified General Real Estate Appraiser California Certification No. AG 004014 Facsimile: (714) 633 - SAL:sp / Enclosure LIDGARD AND ASSOCIATES INCORPORATED Real Estate Appraisal Consultation 0 ITEM 11s TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager SUBJECT: 2nd Amendment & Lease Extension -- Marinapark Residences RECOMMENDED 1— Authorize the City Manager to execute the 2nd Amendment and Lease ACTIONS: Extension with the tenants at Marinapark (including authorization for a rent increase); 2 — Authorize the City Manager to, under consultation with a 3rd Party specialist, offer an economic "hardship" rent credit for those persons meeting appropriate standards. BACKGROUND: At the City Council's February 26, 2002 meeting, the Council discussed and heard testimony about a proposal to extend the current leases for the coaches at the Marinapark Mobile Home Park at 1770 West Balboa Avenue. This Agenda Item, if approved, would authorize Mayor Ridgeway to execute new Lease Extensions with each resident that: Extend the terms of the leases by one year, with the City's option of two additional one-year extensions; and Raise rents to near market rates as of July 1, 2002. Parks and Lease History. The Marinapark mobile home park ("Marinapark") sits today on a 4.34 acre parcel at 1770 West Balboa Boulevard on the Balboa Peninsula between 18dh and 15db Streets. Marinapark has 58 mobilehome spaces and 924' of beach frontage facing Newport Bay. The City of Newport Beach acquired Marinapark from Pacific Electric Land Company in 1919. The initial use of the property after purchase was for a city campground (where campers paid 75¢/day for waterfront camp areas and 501/day for interior spaces) and later (in approximately 1955) to a deluxe trailer court" for 120 trailers. A later renovation of Marinapark to accommodate larger trailers put the park at today's capacity of 58 mobilehomes. Today 56 of the coach spaces are occupied with a coach. The City and the residents at Marinapark ("Lessees") entered into a series of short- and medium -term leases relating to the Lessees' occupancy at Marinapark. An abbreviated schedule follows: • 1973 Lease. The 1973 Lease extended an existing lease to September 30,1977 at which time all Lessees would "unconditionally and without contest vacate the premises without contest, legal and otherwise. Lessees further agree to waive any relocation assistance or any other assistance from Lessor resulting 0 0 from vacating the premises." The 1973 Lease also dictated a new rental schedule through 1977. • 1976 Lease. A new 1976 Lease extended the Marinapark Lessees' tenancy through September 30,1985. The 1976 Lease offered an extension of five years "should the City Council find and determine ... that Marinapark is not required for any public trust purpose or other public purpose..." Rents at the time were set by the Lease and deemed to be "the fair market rental value' for the spaces. • 1985 Lease. The City Council did, indeed, state its intent that Marinapark should be converted "to a public recreation area" upon expiration of a new 1985 Lease. The 1985 Lease - with an expiration date of March 15, 2000 - said that "the most significant rights obtained by Lessee, and given up by City..." were: Lessees long-term right to occupy the Premises... — Lessee's payment of "moderate rent ... and the advantage of limited rental increases in the future, while City gives up the right to charge higher rents initially and the right to impose future rental increases in excess of the cost -of -living index..." The 1985 Lease also outlines the rights and benefits "given up" by the Lessee, including: City's right to convert Marinapark into a public recreational use upon Lease expiration. — The full waiver of any right of the Lessee to receive relocation benefits "or any other form of relocation assistance." • 2000 Amendment and Extension of Lease. On February 8, 2000, the City Council authorized the City to offer an amendment and extension ("Lease Extension') to the 1985 Lease. The Lease Extension acknowledged several things - some new, others a restatement of information in the 1985 Lease. The Lease Extension acknowledged (among other things): Uncertainty over the tidelands status of the land upon which the park sits - arguably, if the land is State-owned and City -managed "tidelands," then the residential uses at Marinapark may not be appropriate, because tidelands are intended to be visitor -serving. — The City's (at that time) review of up to eight responses to a Request for Proposals (RFP) for future uses and development of Marinapark, some of which envisioned the continuation of the mobilehome use. — The "substantial and important benefit" of the economic and personal rights of the Lessees under the 1985 Lease, including the Lessees' payment of moderated rent AND the ongoing waiver of Lessees' claims to any relocation benefits. Current Rent and Residency. In 2000, the City believed that, of the 58 coaches occupied at the time: • 16 of the coaches were full-time residences for lessees; • 6 of the coaches were full-time residences for persons other than the lessees; • 36 coaches were part-time residences for lessees. Rents at Marinapark are the following: Space 11D (didn't sign 2000 Extension) $1,362.60/month Bay -adjacent lots (As and Bs) $1,225.08/month One lot distance from Bay (Cs and Ds) $ 924.83/month Two lot distances from Bay (Es) $ 864.80/month Marinapark space rentals earn the City about $600,000 annually. Bendetti Property Management of Irvine manages Marinapark for the City at a fee of about $2,980 per month. Bendetti has been on a month -to -month contract since March 2000. Residents have been generally quite happy with Bendetti's on -site manager, Joe Albano, and its off -site manager, Bill Mecham. I have been very pleased with Bendetti's service over the past 4 years. Lease Recommendation. Because of the uncertainty in timing with any re -use or redevelopment of the Marinapark site, we recommend the following: • Extending tenancy at Marinapark for one year (to March 15, 2003) under substantially similar lease terms as the 1985 Lease as extended by the 2000 Lease Extension, with two additional one-year options (ending March 15, 2004 and March 15, 2005, respectively) that are exercisable at the City's sole discretion; • Authorize the City to receive and fund the removal of any coaches remaining at Marinapark at the end of the Lease term on behalf of the coach owners, should the coach owners desire us to do so. • Following a March 31, 2002 Notice of 90-day Rent Increase, raise all rents to the rates listed below (which we believe to be slightly below market). These rents would be effective between July 1, 2002 and March 15, 2003: Bay -adjacent lots (As and Bs) $ 2,300.00/month One lot distance from Bay (Cs and Ds) $ 1,850.00/month Two lot distances from Bay (Es) $ 1,700.00/ month Rents at this level would generate about $1,150,000 for the City annually, an increase of about $550,000. Discussions at the February 26, 2002 Meetine. Council members and residents raised the following issues at the February 26, 2002 Council meeting — some of these issues were elaborated upon further by Cary Lowe, the attorney for the residents (letter is Attachment C): Value of Moderated Rent. Marinapark residents and Council members discussed the extent to which rent paid by Marinapark tenants had been moderated (some said "reduced") since 1985 (a year in which rents at Marinapark roughly equalled "market" for the region). At no time were Marinapark rents decreased from one year to the next - each year did see an increase based on the Consumer Price Index. However, this Index significantly lagged the market value of rental housing in Orange County, especially Bay -adjacent mobile home parks in Newport Beach (like DeAnza and Lido Peninsula Resort). The below chart illustrates the changes since 1985: ' I Bay -adjacent lots at Marinapark then underpaid market rent by about 132 000 (in constant dollars) since 1985. C, D, and E lots underpaid market rent by at least 17 500 during that same period, though the underpayment is likely to be even greater given that few comparable parks have the blue - water views held by the C, D, and E lots at Marinapark. The City Clerk's search of Council minutes about rent rates (requested by Council Member Glover) shows the following: ♦ Minutes of August 25,1997 (Discussion of Keyser-Marston's Marinapark Revenue Study results): "the tenants' proposal essentially would increase the rent the City would receive by the year 2000 equal to a net income of $900,000 per year. By accepting Marinapark's offer of "fair market" rent, plus other lease provisions, (Marinapark tenants) anticipate the revenue to the City would be in the range of $900,000 to $1 mullion, some ofwhich could begin as early as 1998." (Mr. Berkshire) explained that their (Marinapark tenants') offer includes a willingness to start paying increased rents as soon as agreement is reached, possibly two years prior to the expiration of their current leases... under their proposal the rent per unit would go up in the order of 50%..." ♦ Minutes of October 25,1999 (Discussion of Marinapark Hotel Proposal): "... (Mr. Berkshire) further confirmed that the rent offered by the residents at the time (Fall 1997) would've brought the City $1 million per year." ♦ Minutes of August 22, 2000 (Discussion of Marinapark RFP): "...(Mr. Rettberg) stated that the tenants offered to increase the lease to market value three years prior." ♦ Minutes of January 22, 2002 (Discussion of Sutherland-Talla General Plan Amendment Initiation): "...(Mr. Berkshire) added that the residents offered to have their rents increased, several years ago, but their offer was never responded to... • Term of the Extension. Marinapark tenants seek at least 3 years for any extension, arguing that the proposed redevelopment for the site will take at least that long to occur. Allowing three years, they say, will encourage residents to make minor improvements to their coaches (painting, carpeting, etc) that they may not make under year-to-year tenancy. We believe that the City still needs the discretion to end the least in 2003, 2004, or 2005 in case the State directs us to do so or the Council chooses a redevelopment option that calls for a faster park closure. Marinapark As/Bs /mo $732 $891 $1,034 $1,129 Local Average/month a/month $721 $1,098 $1,709 $2,700 Difference permonth $11 $207 $675 $1,571 Rent @Treasure Island, LB Month -to -Month Tenancy. The 2nd Amendment and Lease Extension offers the tenants a 12 month lease as required by law. There is a no provision in the current 2000 Extension for holdover at a month -to -month tenancy. However, those persons not wishing to stay for a full 12 months may still sign the 2nd Amendment and Lease Extension and use its 60-day notice provision to end tenancy early. • Rent Survey, Rent Amount. The tenants argue that the rent we have proposed for July 1, 2002 through March 15, 2003 should be reconsidered using a 3Td Party appraiser. They also questioned our use of Bendetti Property Management, the current Park managers, as the firm recommending the rent levels to the City. We believe that the review completed by Bendetti to arrive at the rents proposed for July 1, 2002 was appropriate and that no further review is needed. We believe, too, that monthly rental rates are best determined by the location and amenities associated with a leased space than by the term remaining on a lease (arguably, a very short-term lease, like a weekend rental, commands a higher rental rate). A coach's resale value is affected much more by a lease's remaining term than the spaces rental rate is affected by the term. Rental Credit for Persons with Economic Hardships. We have proposed within the Recommended Action that your Council allow tenants to appeal to the City Manager if they believe they have a valid economic hardship (i.e. on fixed income with limited assets, park is primary residence, more) associated with the proposed rent increases. The City Manager would evaluate a rental credit policy and standards in cooperation with an independent 3rd Party like the Manufactured Housing Educational Trust (MHET). The proposed 211d Amendment and Lease Extension is Attachment A to this document. A map of Marinapark appears in Exhibit A to Attachment A. ATTACHMENT: Attachment A — Proposed 2nd Amendment and Lease Extension. Attachment B -- Letter from Cary Lowe dated February 27, 2002. The Marinapark Lease will be distributed on Friday, March 8, 20020 s " FEH-27-2002 17140 �NKENS & GILCHRIST, LLP • 626 304 9711 P.03/03 Attachment B Jenkens & Gilchrist, LLP I1 VO NORTH LAKE AVENUE SUITE 830 PASADENA, CA 91101-4176 (626) 304-7803 Cary D. Lowe FACSIMILE (626) 304-9711 (626)356-4211 cloweZienkens.com www.ienkens.corn February27, 2002 VXA U.S. N AIL & FACSXMXLE Mayor and Members of the City Council City ofNewport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Re: Marinapark -- Lease AmendmenVExtension Honorable Mayor and Members of the City Council: AusnN,Tow (512) 490.3800 CHICAGO, IL.INOIS (310) 42S-3900 DALLAS. TExns (214) 855.4500 HOUSTON, TEXAS 913) 951-3300 Los ANro-ES, CALIFORNIA (310) a20.Sa00 NcwXonx, NEW YOalf (212) 704-6000 SAN'ANTON10. Tsx&s (210) 245000 WASHINGTON, D.C. (202) 326.1500 On behalf of our client, the Marinapark Homeowners Association (the "Association"), we would like to provide you with some comments and suggestions regarding the proposed Second Amendment and Extension of Lease (the "Amendment') with the residents of the Marinapark mobilehome park ("Marinapa&D. This letter is intended to support and expand on the comments which I presented at the City Council meeting of February 26, 2002. The Amendment proposes a one-year extension of the existing Lease, along with a substantial upward adjustment in rent levels and various other less significant revisions. We request that you reconsider two particular aspects of the Amendment: 1. Term of Extension. The Association requests that the term be extended to a minimum of three years. The Amendment implicitly acialowledges that the proposed redevelopment of the site which is currently under consideration is unlikely to occur sooner than that. In fact, the Amendment goes so far as to specify that the City may unilaterally extend the term for that additional period. The residents would appreciate greatly the certainty and stability which would be derived from specifying a longer term in the fast place. This would allow them to plan in a more orderly way for the eventual closing of Marinapark It also would provide an incentive for the residents to invest in improvements to their respective units, rather than performing the minimal maintenance associated with a short -terns tenancy. By cooperating with the residents in this manner, the City Council would bestow a useful benefit to the residents, with ancillary benefits to the surrounding community, at no cost to the City. LOSANGELES 21W4v141750-00001 TOTAL P.03 n n� Z0'd 66 TUG 00£ 9Z9 LZ:BS Z00Z-LZ-H3d Jenkens &. Gilchrist, LLP Mayor and Members of the City Council Cityof Newport Beach February27, 2002 Page 2 2. Rent Levels. The Association requests that the proposed new rent levels be reconsidered and better substantiated as being actual `market rate' rents. Based on its own research and analysis, the Association believes that the proposed rent levels for the various classes of units are in excess of market rate. The residents are not seeking a subsidy from the City in the form of below -market rents, but simply rent levels which can be validated as representing ourrent market levels. The City's staff report indicates that the proposed rent levels are based on an analysis performed by Bendetti Property Management, the firm engaged by the City to manage Marinapark. The Association requests a new rent analysis by a third party not otherwise involved in the operation or management of Marinapark, and we urge you to instruct staff to have such an analysis performed. In addition to any other factors which establish the appropriate rent levels, the residents assume that a longer Lease term would justify higher rents, whereas a mere one-year term should result in rents at a discounted -level. In addition to the comments above, we are transmitting a mark-up of the Amendment to City staff, making various other, more technidal suggestions. Please give our comments your immediate consideration, and provide appropriate direction to City staff in connection with their revision of the Amendment, in preparation for action on the proposal at the City Council meeting of March 12, 2002. Thank you, Sincerely, JBNKENS & G1J C ST, LLH Cary . Lowe CDLsh cc: Stewart Berkshire, President, Marinapark Homeowners Association Assistant City Manager David Kid City of Newport Beach Assistant City Attorney Robin Clauson, City of Newport Beach LOSANGELES 210464YI 41750.OMI SECOND AMENDMENT AND EXTENSION OF LEASE This Amendment and Extension of Lease (Amended Lease), entered into this of day of , 2002 by and between the CITY OF NEWPORT BEACH, a municipal corporation and charter city (City) and (Lessee), is made with reference to the following facts, the materiality and existence of which is stipulated and agreed by the parties: A. City is the owner, and is in possession and control, of a parcel of real property, located northerly of Balboa Boulevard and between approximately 15t' Street and 18th Street in Newport Beach, commonly known as Marinapark, generally described in Exhibit "A" (Property); B. The Property was under lease prior to the effective date of the Charter of the City of Newport Beach and, pursuant to the provisions of Section 1402 of the City Charter, the City Council is empowered to authorize execution of this Lease by the Mayor; C. Prior to the effective date of this Amended Lease, City leased 58 mobilehome spaces on the Property pursuant to a standard lease dated March 24, 1976, (hereinafter "1976 Lease"), which would have expired on September 30, 1985, subject to the right of the Lessee to extend the term for a five (5) year period under certain conditions; D. Prior to the expiration of the 1976 Lease, City leased the same 58 mobilehome spaces on the Property pursuant to a lease that would have expired on March 15, 2000 (1985 Lease) but for an Amendment and Extension of Lease which expires March 15, 2002; (2000 Amendment); E. The City Council actively solicited proposals for non-residential uses at Marinapark and, as of February 2002, has deemed a non-residential use of Marinapark the most appropriate land use for the property. As such, the City Council intends to close the mobilehome park no later than March 15, 2005. F. The Parties acknowledge that, subsequent to the effective date of the 1985 Lease, California State Lands Commission staff has discovered evidence that a portion of the Property consists of tidelands. City and Lessee have, in the past, claimed that all or substantially all, of the Property leased for mobilehome residency purposes is uplands owned by the City, and City and Lessee have discussed evidence to support that claim. G. State Lands Commission staff has indicated that permanent residential use of tidelands is inconsistent with State statutory, decisional and constitutional law. However, the City and Lessee may dispute that position. H. The City Council finds and declares that the terms and conditions of this Amended Lease comply, and are consistent, with the Charter of the City including, without limitation, the provisions of Sections 200 and 1402 of the Charter, The City Council also finds and declares that the provisions of this Amended Lease are consistent with the plans, policies, rules and ordinances of the City. The City Council also finds that this Amended Lease is consistent with the General Plan and the Land Use Plan of the Local Coastal Program; J. The terms and conditions of this Amended Lease are in compliance, and consistent, with the provisions of the Mobilehome Residency Law (Section 798 et seq. of the Civil Code) and the State Zoning and Planning Act (Sections 65863.7 and 65863.8 of the Government Code). K. The purpose and intent of the Parties is to amend, and extend the term of, the 1985 Lease and the 2000 Amendment so that the Lessee may continue to reside on the property for the year commencing March 15, 2002 while the process of preparing the property for a different use continues. The City may allow short extensions of this Second Amended Lease but not past March 15, 2005. NOW, THEREFORE, the Parties do hereby mutually agree as follows: DESCRIPTION OF PREMISES. The City leases, and Lessee accepts the lease of, the portion of the Property described as space as shown on Exhibit "A" (Premises). 2. TERM. The tenancy created by this Amended Lease shall extend the expiration date of the 1985 Lease as modified by the 2000 Amendment, to March 15, 2003 (Term), unless earlier terminated in accordance with the terms of this Amended Lease and the Mobilehome Residency Law. There shall be no holdover on this Second Amended Lease. However, the City, at its sole option, may offer Lessee an extension of this Amended Lease. Such offer will be made, if at all, no later than by January 15th of the year the lease term expires, on such terms and conditions as the City then establishes. If no such offer is made, then there shall be no holdover. 3. USE OF PREMISES. A. The Premises shall be used only for residential purposes, and no business or commercial activity shall be conducted on the Premises. Permitted occupants are: (i) Lessee; (ii) An additional person if Lessee is living alone; (iii) Family members entitled to occupy the premises pursuant to the Mobilehome Residency Law; and (iv) Short term guests. The term "short term guest' shall mean any person who does not stay with Lessee for more than a total of twenty (20) consecutive days or a total of thirty (30) days in any calendar year. Other persons may occupy the premises with the prior written consent of the City. B. Lessee agrees that the primary residence requirement is fundamental to this lease, stipulates that the residency requirement will not constitute an undue burden or hardship on Lessee in light of the time allowed for compliance in the 1985 Lease, and, subject to the provisions of Section 8, Lessee agrees that the Premises shall be Lessee's primary residence unless this requirement is waived by the City Council due to hardship. Lessee shall provide satisfactory proof of residency to the City. C. Lessee agrees to comply with the Rules and Regulations of Marinapark (Exhibit "B") and further agrees these Rules and Regulations may be amended as provided in the Mobilehome Residency Law or other relevant statute. 4. CONSIDERATION: A. Introduction. The City and Lessee agree that the terms and conditions of the 1985 Lease, the 2000 Amendment and this Amended Lease preserve and protect substantial and important rights and advantages, economic and personal, that each Party would not otherwise be entitled to receive. These economic and personal rights and benefits are the consideration for the 1985 Lease, the 2000 Amendment and this Second Amended Lease. The more important rights and benefits gained and given up by each Party are specified in this paragraph and the Parties agree that, like the 1985 Lease, this Amended Lease should be interpreted such that each party receives the benefits and advantages identified in this section. 3 B. Consideration to Lessee. (1) As consideration for Lessee's approval of this Amended Lease, City commits to maintain the Property as a mobilehome park until March 15, 2003. (2) The City also commits that if it decides that it desires to continue to let this space as a mobilehome space during the period from March 15, 2003 through March 15, 2005 that it will not terminate or fail to renew this Lease with the Lessee and instead let the Premises to another person. (3) Additional consideration for Lessee's approval of this Amended Lease is the right to occupy the Premises subject to the payment of rent in the sum of through June 30, 2002 at which time the rent shall be C. Consideration to City. As consideration to the City, Lessee agrees and acknowledges that City may convert the Property to a different use upon expiration of this Amended Lease, or shortly thereafter. Lessee agrees that, if City chooses to close the mobilehome park on the Property it may do so without obligation to pay relocation benefits or provide other forms of relocation assistance. Lessee acknowledges that the terms of the 1985 Lease, the 2000 Amendment and this Amended Lease constitute full and adequate mitigation of any adverse impact on Lessee of any conversion of the Property to a non-mobilehome use, and the extended term of the 1985 Lease and this Amended Lease gives Lessee sufficient time to secure replacement space in another mobilehome park or other alternative housing. Accordingly, LESSEE HEREBY WAIVES, GIVES UP THE RIGHT TO RECEIVE, AND RELEASES CITY FROM ANY OBLIGATION TO PAY, RELOCATION BENEFITS, OR ANY OTHER FORM OF RELOCATION ASSISTANCE OR OTHER PAYMENT OR CONSIDERATION THAT ARISE OUT OF, OR ARE IN ANY WAY RELATED TO: (1) THIS LEASE OR ANY FUTURE TENANCY; (2) THE ULTIMATE TERMINATION OF LESSEE'S TENANCY PURSUANT TO THE 1985 LEASE, THE 2000 AMENDMENT OR THIS AMENDED LEASE OR THE TERMINATION OR EXPIRATION OF ANY SUBSEQUENT TENANCY HOWEVER CREATED; V. (3) THE CONVERSION OF THE PREMISES TO ANY USE OTHER THAN A MOBILEHOME USE. (4) THE DISPLACEMENT OF LESSEE FROM HIS AND/OR HER PRIMARY RESIDENCE; (5) ANY FEDERAL, STATE OR LOCAL LAW, PLAN & POLICY OR RULE WHICH RELATES TO SUCH DISPLACEMENT, OR REQUIRES THE MITIGATION OF THE IMPACTS CAUSED BY DISPLACEMENT. THIS RELEASE BY LESSEE, NOTWITHSTANDING SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES THAT: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED THE SETTLEMENT WITH THE DEBTOR," RELEASES ALL CLAIMS OR LOSSES, WHETHER KNOWN, UNKNOWN, FORESEEN OR UNFORESEEN, WHICH LESSEE MAY HAVE AGAINST CITY. LESSEE UNDERSTANDS AND ACKNOWLEDGES THE SIGNIFICANCE AND CONSEQUENCE OF THIS RELEASE AND OF THIS SPECIFIC WAIVER OF SECTION 1542 AND ASSUMES FULL RESPONSIBILITY FOR ANY DAMAGES, LOSS OR CLAIM THAT LESSEE MAY INCUR AS A RESULT OF THE CONVERSION, TERMINATION AND/OR DISPLACEMENT' REFERRED TO ABOVE. LESSEE IS FREELY AND VOLUNTARILY EXECUTING THIS AMENDED LEASE AND LESSEE, IN EXECUTING THIS RELEASE, HAS NOT RELIED UPON ANY INDUCEMENTS, PROMISES OR REPRESENTATIONS MADE BY CITY OR ITS OFFICERS OR EMPLOYEES, OTHER THAN THE COMMITMENTS AND COVENANTS CONTAINED WITHIN THIS LEASE. D. Provisions related to Consideration (1) This Amended Lease constitutes notice that City reserves the right to physically convert the Premises to a non-mobilehome use on or about March 16, 2003. • (2) Upon expiration of the term of this Amended Lease, Lessee shall, within sixty (60) days, remove any mobilehome or recreational vehicle, structure, improvement, personal property or equipment located upon the Premises. Upon the expiration of this sixty (60) day period, the City shall have the right to remove and dispose of any and all property improvement structures, personal property (including the mobilehome) or any accessory equipment that remain on the Premises. The cost of removing such shall be bom by the Lessee unless the Lessee has given written notice to City not less than thirty (30) days prior to the expiration of this Amended Lease or applicable renewal thereof, whichever is later, of Lessee's desire to abandon the mobilehome and transfers all title and interest in the mobilehome, clear of all liens and encumbrances, to City and the documents necessary to effectuate such transfer are delivered on or before the date of termination. If City receives such written notice from Lessee, City shall bear the cost of removing and disposing of all property improvement structures, personal property (including the mobilehome) or any accessory equipment that remain on the Premises. 5. RENT. Lessee shall pay as rent, without deduction or offset, on the 1st day of April 2002, and on the first day of each month through June 2002 the sum of As of July 1st, 2002 the rent shall be and shall be paid on the first of each month thereafter without deduction or offset. Rent for any fractional part of any month between the commencement date and the first date of the first full calendar month within the Term shall be prorated, and paid by Lessee to City along with the first full month of rent due hereunder. Lessee stipulates and agrees that this Amended Lease constitutes the ninety (90) day written notice of rental increases required by the Mobilehome Residency Law and Lessee acknowledges that no additional written notice need be given by City; provided, however, City may provide Lessee with ninety (90) days written notice of the precise amount of any rental increase authorized by this paragraph and Cityand Lessee agree that such notice shall not constitute a waiver of City's right to rely upon the adequacy of the notice provisions in this paragraph. Lessee acknowledges that this Amended Lease may create a possessory interest subject to property taxation and that Lessee may be subject to the payment of property taxes levied on such interest. Lessee shall pay, in addition to rent and before delinquency, all taxes, assessments, license fees 9 and other charges (Taxes) that are, during the Term, levied or assessed against Lessee's interest in the Premises pursuant this Amended Lease and against any personal property installed on the Premises. The City agrees that, once the rental rate which commences, July 1, 2002 becomes effective, the rent will not be raised during the period from July 1, 2002 to March 15, 2003. If City offers a renewal of this Amended Lease, City reserves the right to increase rent at such time. 6. RELEVANT STATUTES AND RULES. The Mobilehome Residency Law requires this Amended Lease to contain, among other things, the Rules and Regulations of Marinapark and the language of the Mobilehome Residency Law. The Rules and Regulations of Marinapark are attached as Exhibit "B," the provisions of the Mobilehome Residency Law are attached as Exhibit "C," and both documents are incorporated into this Amended Lease by reference. The Marinapark Rules and Regulations and the Mobilehome Residency Law may be amended or modified from time to time, and these amendments and modifications shall be deemed to be incorporated into the documents attached as Exhibits "B" and "C," respectively, when effective. 7. LATE CHARGE. If the entire rent owed by Lessee is not received by City by the 6th day following its due date, then, without any requirement for notice to Lessee, Lessee shall pay to City a late charge of thirty five dollars ($35.00). The parties agree that such a late charge represents a fair and reasonable estimate of the costs City will incur by reason of any late payment of rent. An Acceptance of a late charge by City shall not constitute a waiver of Lessee's default with respect to rent, or prevent City from exercising any of the rights or remedies granted by this Amended Lease. 8. SALE OR ASSIGNMENT. Lessee may sell the mobilehome located on the Premises pursuant to the rights, and subject to the obligations, of Lessee under the Mobilehome Residency Law and any other applicable statutes. If the mobilehome that is the subject of the sale or transfer is to remain in the park, or if Lessee proposes to assign Lessee's interest in this Lease to any person or persons who is (are) to reside on the Premises, Lessee and/or the proposed transferee must do the following: A. Lessee must give notice of the sale or assignment to City prior to close of escrow. 7 B. The sale or assignment shall not be effective unless City has given prior written approval, the transferee has executed an assignment of lease form provided by City, and the transferee has expressly agreed to be bound by the waivers and releases provided in this Amended Lease. C. Lessee agrees that occupancy of the Premises shall be limited as provided in Section 3 and Lessee agrees not to sublease or otherwise transfer any partial interest in this Amended Lease. D. City shall approve any such transfer, if the transferee has the financial ability to pay the rent and charges and otherwise comply with the terms and conditions of this Amended Lease, provided, however, City may withhold approval if it determines that, based upon the transferee's prior tenancies, the transferee will not comply with the Rules and Regulations of Marinapark (Exhibit "B"). E. City shall not approve any transfer or assignment of any interest in this Amended Lease that would permit the installation of any mobilehome or structure that exceeds twelve feet in height. F. The City shall have rights of first refusal. Before Lessee sells or agrees to sell or otherwise transfer Lessee's interest in this Amended Lease, Lessee shall offer to sell its interest to City, in writing and on terms and conditions identical to those proposed for the sale of Lessee's interest to a third party. The third party must have previously fully and truthfully completed an application for residency in the Property that has either been approved subject to this First Right of Refusal or have been given to park management for more than 15 days without an acceptance, rejection. The third person must acknowledge and declare that he/she/they have an intent to reside in the Property on a full time basis. The Lessee must notify the City of the essential terms of the sale which shall include at a minimum, the following information: (i) the purchase price proposed for the sale to the third party; (ii) the method of purchase price payment; (iii) the amount and terms of any proposed Lessee financing in connection with the proposed purchase; (iv) the time and location for the close of escrow; (v) the name of the proposed purchaser; and (vi) the other material terms and conditions of the proposed sale of the Property. City shall have ten (10) days (Acceptance Period) from the date of the notification to inform the Lessee that the City will be purchasing the property. The City shall thereafter enter into a agreement on the terms and conditions set forth in the notification. If the City chooses not to accept the offer the third person may then purchase the home on the terms and conditions as set forth in the notification to the City. Should any of the terms and conditions be altered then the City once again as has the right of first refusal and the City has the right to refuse to grant tenancy to the proposed buyer if the terms and conditions of sale differ in any significant manner. However should the City deny tenancy the City must thereafter purchase the home on new terms and conditions. G. Notwithstanding any other provision in this Amended Lease, Lessee shall have the right to assign its interest in this Amended Lease to a spouse, son and/or daughter without any requirement that City be given the right of first refusal to acquire the interest, provided, however, the Premises shall be used as the primary residence of the assignee and the assignee shall be bound by all provisions of this Amended Lease, including, without limitation, the waiver of relocation assistance. 9. UTILITIES. A. City shall not provide electricity or telephone service. Lessee shall make arrangements directly with the utilities furnishing the services and promptly pay all charges. B. City shall provide Lessee with water and gas service. The charge to Lessee for such service shall be the amount of the charges paid by Lessee as of February 1, 2002. The charges for gas and water service may be increased or decreased on the first day of October. C. The charge for gas and water service shall be paid when rent is due, and in addition to the obligation to pay rent. In the event Lessee fails to pay the charge for water or gas service within ten days after the amount is due, Lessee shall pay to City a late charge of thirty-five dollars ($35.00). D. In the event City provides both master meter and submeter service of utilities to Lessee, the cost of the charges for each billing period shall be separately stated and shall contain opening and closing readings of the meter. In such 'event, City shall post rates charged by the appropriate utility in a conspicuous place. E. City shall not be liable for any loss, damage or injury, and Lessee shall not be entitled to any abatement or reduction of rent, by reason of City's failure to furnish any utility or service if the failure is caused by accident, breakage, repairs, maintenance or any other cause beyond the reasonable control of City. 10. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS. It is the responsibility of City to provide and maintain the physical improvements in the common facilities of the Property in good working order and condition, and, with respect to sudden and unforeseeable breakdowns, management shall have a reasonable period to repair any sudden and 9 • unforeseeable breakdown or deterioration and bring the improvements into good working order and condition, after management knows or should have known of the breakdown. Such period shall be not more than thirty (30) days unless there exist exigent circumstances justifying a delay, and the required work shall be completed as soon as possible in any event as to items affecting health and safety. Lessee shall, at its cost and expense, maintain in good order and condition any mobilehome, cabana or other improvement located on the Premises. Lessees also agree that all landscaping on the Premises shall be limited to three feet (T) in height, to preserve views and open space. City may charge a reasonable fee for services relating to the maintenance of the Premises in the event Lessee fails to maintain the Premises in accordance with the provisions of this Amended Lease and the Rules and Regulations of Marinapark (Exhibit "B"), after giving written notification to Lessee and Lessee's failure to comply within fourteen (14) days from the date of notice. The notice shall contain all information required by the Mobilehome Residency Law. 11. PHYSICAL IMPROVEMENTS AND SERVICES. Lessee shall have the nonexclusive right to use all of the common areas and common facilities located within Marinapark, including but not limited to streets, nonrestricted parking areas, laundry facilities, restrooms and showers located in the common areas and common facilities and designated for use by residents. The services to be provided by City during the term of this Amended Lease include the services to be provided by the Marinapark manager and other employees and officers of City, the utilities to be provided by City specified in Section 9 and the maintenance of all common areas and common facilities in good condition pursuant to Section 10. It is the responsibility of the property manager to provide and maintain physical improvements in the common facilities in good working order and condition. It is understood by all parties hereto that this mobilehome park may close as early as March 15, 2003 and therefore, in exchange for City's concession in offering this Amended Lease, it is agreed that City need not invest any funds in repairing or replacing any facility so that it lasts longer than the Term hereof, provided that no facility which affects health and safety will be ceased during the Term Amended Lease. we, 12. City retains the right to amend or modify the Marinapark Rules and Regulations, the terms of this Lease, and the nature of the physical improvements or services to be provided, after complying with the provisions of the Mobilehome Residency Law and other applicable law. The right to amend the terms of this Amended Lease, the Marinapark Rules and Regulations and the physical improvements and services to be provided by City include, without limitation, the right to reduce the size of, or eliminate, any physical improvement, common area, common facility or equipment; provided, however, no changes shall be made to the provisions of this Amended Lease, including the Term or the rent to be charged, unless those changes or amendments are permitted by other provisions hereof. 13. RIGHT OF ENTRY. Lessee, subject to the right of revocation as set forth in the Mobilehome Residency Law, hereby grants written consent to City to enter the Premises and Lessee's mobilehome for the purpose of improving, maintaining, repairing or replacing gas, water and sewage systems owned and maintained by City subject to the obligation of City to exercise ordinary care. Any damage, loss or injury to Lessee's home, property of Lessee or the Premises which results from efforts of City to maintain, repair, improve or replace the gas, water or sewage systems shall be the sole responsibility of Lessee, and City shall not be responsible for reimbursing any cost or expense incurred by Lessee as a result of such efforts, nor shall City be responsible for repairing, replacing or otherwise restoring the mobilehome, the Premises or any improvements thereon to the state or condition immediately prior to the maintenance, replacement or repair efforts. City also reserves the right to enter the Premises for other purposes as specified In the Mobilehome Residency Law. 14. NOTICE REQUIRED BY CIVIL CODE §2079.10(a). The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code.. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. 11 Information regarding neighborhoods is not available through this telephone service. 15. HOLD HARMLESS. Lessee covenants to indemnify, defend and hold City, and its officers, agents and employees, harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, Lessee's use and occupancy of the Premises, and to indemnify City for any cost, liability or expense caused by or arising out of any injury or death of persons or damage to property which may occur upon or about the Premises or caused by or arising out of any activities or omission of Lessee, or Lessee's agents, employees, licensees and/or invitees, including, without limitation, injury or death of Lessee, or Lessee's agents, employees, licensees and invitees and damage to their property or Lessee's property, except for any damage or injury of any kind arising out of the sole negligence, fraud or willful misconduct of City, its officers, agents or employees. Lessee, as a material part of the consideration under this Amended Lease, hereby waives all claims against City for any damage or loss from any cause arising at any time, including, but not limited to fire, theft, Acts of God, vandalism or any physical damage while the mobilehome remains on the Property, unless caused by the negligence, fraud or willful misconduct of City's agents, officers or employees. Lessee agrees to indemnify and hold City, and its officers, agents and employees, harmless from and on account of any damage or injury to any person or equipment in or on the mobilehome arising from any cause or from the negligence of Lessee, and Lessee's family or guests. Since a substantial portion of the present value of Lessee's mobilehome or coach is attributable to the value of the Premises and the proximity of the Premises to Newport Bay, and not solely to the value of the structural improvements, Lessee, in addition to the other commitments specified in paragraph 4, agrees to indemnify and hold City, and its officers agents and employees, harmless from any and all loss or injury of any nature whatsoever arising out of or attributable to future change of use of the Premises and the requirement that Lessee remove his/her mobilehome and other property from the Property. 16. TERMINATION. A. Lessee may terminate this Amended Lease, without any further liability to City, upon sixty (60) days written notice to City and upon condition that all persons occupying the Premises terminate their tenancy within that period and remove the mobilehome and all other improvements from the Premises. 12 1 .L B. City may terminate this Amended Lease for the reasons specified, and according to the procedures set forth in the Mobilehome Residency Law. C. In addition to the rights specified in subparagraph B, City reserves the right to terminate this Amended Lease in the event: (1) a court of competent jurisdiction determines that residential use of the property is inconsistent, or is in conflict, with the provisions of the public trust imposed upon those portions of the Property that constitute state tidelands, or that the residential use is inconsistent with any provision of the state constitution or state law; or (2) there is a major failure in one or more of the public utilities furnished Lessee by City, and, in the opinion of City, the cost of repairing the system is excessive when viewed in light of the highest and best use of the Property. D. The waivers and releases relative to relocation benefits or assistance shall operate to preclude recovery of same by Lessee in the event this Lease is terminated pursuant to the provisions of this paragraph. 17. ATTORNEYS' FEES. Should either City or Lessee be required to employ counsel to enforce the terms, conditions and covenants of the 1985 Lease the 2000 Amendment, or this Amended Lease, the prevailing parry shall recover all reasonable attorneys' fees (and court costs if applicable) incurred therein whether or not court proceedings were commenced. 18. REMEDIES CUMULATIVE. The rights, powers, elections and remedies of the parties contained in this Amended Lease shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of either parry's right to exercise any other. 19. NO WAIVER. No delay or omission of either party to exercise any right or power arising from any omission, neglect or default of the other parry shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Amended Lease shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Amended Lease. 13 20. COMPLIANCE WITH LAWS. Lessee covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California and City or any other governmental body or agency having lawful jurisdiction over the Premises and/or the Property. 21. MOBILEHOME RESIDENCY LAW/ZONING AND USE PERMIT INFORMATION. A. Lessee acknowledges having received and read a copy of the 1985 Lease, the Amended Lease and this Second Amended Lease, the provisions of the Mobilehome Residency Law (Exhibit "C") as presently constituted, and the Marinapark Rules and Regulations (Exhibit "B"). B. The Property is currently zoned unclassified and there are no conditional use permits or other permits required to operate the Property as a mobilehome park. The City of Newport Beach owns the Property, except to the extent the Property is determined to be tidelands and subject to the public trust applicable to tidelands. 22. ENTIRE AGREEMENT. This Amended Lease and the documents referred to in this Amended Lease represent the entire agreement between City and Lessee. 23. NOTICES. All notices and other communications shall be in writing, shall be sent by first class registered or certified United States mail, postage prepaid, and shall be deemed effective at the expiration of seventy-two (72) hours after the day of mailing addressed: A. To Lessor: City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 With a copy to: City ClerKs Office City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 14 or at such other addresses as Lessor shall have furnished to Lessee; and To Lessee: By delivering a copy to the Lessee personally; or Lessee be absent from the mobilehome, by leaving a copy with some person of suitable age and discretion who may be occupying the mobilehome; or no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises or mobilehome and also sending a copy through the mail addressed to Lessee. B Following notice by City of any amendment, all other provisions of the Lease shall remain in force and effect in their original form. 24. TIME OF ESSENCEError! Bookmark not defined.. Time is of the essence in this agreement and each and every provision thereof. 25. EFFECTIVE DATE The Parties agree that the effective date of this Amended Lease is March 15, 2002, whether executed before or after that date. IN WITNESS WHEREOF, the parties have caused this Lease to be executed the day and year first above written. LESSEE By: By: IIWE ACKNOWLEDGE AND AMIARE AWARE OF THE PROVISIONS OF THIS AMENDED LEASE INCLUDING THE RELEASE AND WAIVER PROVISIONS OF SECTION 4 15 u CITY OF NEWPORT BEACH a municipal corporation. 0 Homer Bludau, City Manager APPROVED AS TO FORM: Rob Assl F:\users\cat\sF u, 1 V p••y" d� D n L Bar. -47IWT( DU14gIEK. C en c lt," N flll�'[ii'W�y11� � 1 1 uu 1 !i ii 'r7[�1 10 YOU �j��IIAI i . IIIIIIItlllllllll' Illtll Yh 1 i �0�9UC LEGOOM MG°aU3EMnG°JPARK COOMM E�,A AuITO R.� 3 Amg .0"s fa. 0 E fi ra A � • i November 26, 2001 Sharon Wood Assistant City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92660 Ret: Regent Newnart Beach Resort Modified DPD Additional Information Needed / Answers 1.There is a discrepancy between the project description narrative and the plans regarding the number of units. Please make sure that the plans and the narrative description are consistent. We need to know how many "keys," or guestrooms will be available for separate rental. Please refer to Plan 2. There is an error in the building area tabulations. Make sure that the building area tabulations are based upon gross floor area and that the tabulations on the plans correspond to the project description narrative. Please refer to Plan 3. Label each building uniquely and indicate the number of stories, height, number of guest rooms and square footage. Please refer to Plan 4. Explain the proposed changes to the marina, including the number of existing and proposed new slips. Explain how the slips will be used. For example, how many for boats in transit, how many as guestrooms, etc? There are 49 existing slips. The new design will have 9 piers that extend from the concrete bulkhead to the pier line. The slips will be side fie. The two hotel ` ioatinlg suites" will utilize one pier. Four piers will be utilized for "yachts in transit". two piers will be used for visiting boaters from the local areas to "tie up" while visiting the property and two piers will be used for the resorts sailing club, rowing club and for sailing programs for the community and the girl scouts. 5. Describe the two yacht suites and how they will operate more fully. What will be their size and capacity? The two Yacht suites will be vintage and restored to bristol condition. They will be in the 65 to 75 foot range. They will each be sold as a single "key". 6. Use of all the facilities on the property by hotel guests, American Legion members, hotel- and City -sponsored tennis and sailing programs, and the community need to be better defined to determine traffic impacts, parking requirements and impacts on public access to the site. 7. Show storage location for City and hotel boats. Please refer to Plan. 8. More detailed plans are needed to show fire access within 150 feet of all portions of building. Please refer io Plan 9. Identify on the site plan all public access points (lateral and vertical), and where access Will be limited to hotel guests only. Please refer to Plan 10.Show location and height of all wall/fences between proposed facilities and public streets. Please refer to Plan 4500 Campus Drive, Suite650, Newport Beach, CA 92660, (949) 757-1662 Fax (949) 553-1411 f .. 11. Indicate that public boat launch at 18th Street is to remain. Please refer to Plan 12. Show location of dinghy storage for mooring users. Same as existing 13. Provide elevationlrendering from Balboa Boulevard, showing parking, tennis courts, and Girl Scout house in foreground of hotel. Please refer to elevation submitted Public Access 1. Because much of the properly is State tidelands, and all of it is publicly owned, access to public areas may not be limited to Newport Beach residents or American Legion members. Any land or facilities open to people other than guests of the resort, including slips at the proposed American Legion facility, must be open to anyone, regardless of community of residency. 2. Staff and the public have commented that the proposed project design will be perceived as providing less public access to the site than is available today. We suggest you begin discussing your plan, and this issue in particular, with Coastal Commission staff. Community Programs 1. Describe all City programs that will remain on site, and where they will be accommodated. Tile cities sailing program will continue in its current location. The cities tennis program will continue on the rebuilt tennis courts. We are currently discussing with the Girl Scouts a co -share of the new Girl Scoutfacility with tilt cities Community Services Department for their dance and other indoor programs 2. Describe all proposed sharing of facilities with other users (hotel, Girl Scouts, American Legion) and provide agreements from them. The agreements are still in process. Construction 1. Explain need to import soil. We are elevating the pads of the rear guestroom buildings by three feet and the pads for the beachside buildings by one foot 2. Schedule and phasing need to provide for interim facilities for American Legion (including marina), Girl Scouts, and City recreation programs to be retained during construction. We are negotiating with the parties involved The comments above describe the information needed for the City to conduct environmental and other review of your project, if the Planning Commission and City Council decide to initiate the process. In addition to addressing these specific issues, City staff encourage you to meet individually with the various departments to receive guidance on more detailed planning of your project. Attached is a list of departments, their areas of expertise, and contact information. CITY OF NEWPORT BEACH !n u, z <� FO V-Vo August 10, 2001 Mr. Stephen Sutherland Sutherland Talla Hospitality 4500 Campus Drive Suite 650 Newport Beach, CA 92660 Dear Mr. Sutherland: Pursuant to the agreement between the City and your partnership for development of the Marinapark site, the City has reviewed your Draft Project Description, and conducted a community forum on it on July 9. In addition, the Parks, Beaches and Recreation Commission reviewed your proposal at their meeting of July 3. I am enclosing copies of my notes on the comments made at the forum, minutes of the Parks, Beaches and Recreation Commission meeting, and a letter from the Chairman of the Commission. Included in this letter are comments from City staff. Additional Information Needed 1. There is a discrepancy between the project description narrative and the plans regarding the number of units. Please make sure that the plans and the narrative description are consistent. We need to know how many "keys," or guestrooms will be available for separate rental. 2. There is an error in the building area tabulations. Make sure that the building area tabulations are based upon gross floor area and that the tabulations on the plans correspond to the project description narrative. 3. Label each building uniquely and indicate the number of stories, height, number of guest rooms and square footage. 4. Explain the proposed changes to the marina, including the number of existing and proposed new slips. Explain how the slips will be used. For example, how many for boats in transit, how many as guestrooms, etc? 5. Describe the two yacht suites and how they will operate more fully. What will be their size and capacity? 6. Use of all the facilities on the property by hotel guests, American Legion members, hotel- and City -sponsored tennis and sailing programs, and the community need to be City Hall • 3300 Newport Boulevard • Newport Beach, California 92663-3884 e better defined to determine traffic impacts, parking requirements and impacts on public access to the site. 7. Show storage location for City and hotel boats. 8. More detailed plans are needed to show fire access within 150 feet of all portions of buildings. 9. Identify on the site plan all public access points (lateral and vertical), and where access will be limited to hotel guests only. 10. Show location and height of all walls/fences between proposed facilities and public streets. 11. Indicate that public boat launch at 18'h Street is to remain. 12. Show location of dinghy storage for mooring users. 13. Provide elevation/rendering from Balboa Boulevard, showing parking, tennis courts, and Girl Scout house in foreground of hotel. Public Access 1. Because much of the property is State tidelands, and all of it is publicly owned, access to public areas may not be limited to Newport Beach residents or American Legion members. Any land or facilities open to people other than guests of the resort, including slips at the proposed American Legion facility, must be open to anyone, regardless of community of residency. 2. Staff and the public have commented that the proposed project design will be perceived as providing less public access to the site than is available today. We suggest you begin discussing your plan, and this issue in particular, with Coastal Commission staff. Community Proerams 1. Describe all City programs that will remain on site, and where they will be accommodated. 2. Describe all proposed sharing of facilities with other users (hotel, Girl Scouts, American Legion) and provide agreements from them. Construction 1. Explain need to import soil. 2. Schedule and phasing need to provide for interim facilities for American Legion (including marina), Girl Scouts, and City recreation programs to be retained during construction. The comments above describe the information needed for the City to conduct environmental and other review of your project, if the Planning Commission and City Council decide to initiate the process. In addition to addressing these specific issues, City staff encourage you to meet individually with the various departments to receive guidance on more detailed planning of your project. Attached is a list of departments, their areas of expertise, and contact information. 2 r Please call me if you have questions on any of the comments above. I look forward to receiving your Modified Draft Project Description by September 24. Sincerely, At �C,fA,A9 Sharon Z. Wood Assistant City Man er Cc: Homer Bludau, City Manager Robert Burnham, City Attorney Dave Kiff, Assistant City Manager Steve Badum, Public Works Director Jay Elbettar, Building Director LaDonna Kienitz, Community Services Director Bob McDonell, Police Chief Dave Niederhaus, General Services Director Tim Riley, Fire Chief Patricia Temple, Planning Director Rich Edmonston, Development Services Manager Faisal Jurdi, Deputy Building Director Dennis Lockard, Fire Marshall Lary Kolbo, Field Maintenance Superintendent Marcelino Lomeli, Park & Tree Superintendent Andrea McGuire, Senior Recreation Manager Steve Shulman, Police Sergeant Andi Querry, Crime Prevention Specialist City of Newport Beach P.O. BOX 1763, 3300 NEWPORT BLVD COMMUNITY SERVICES NEWPORT BEACH, CA 92658.8915 August 6, 2001 Mayor Et Members of the City Council 3300 Newport Boulevard Newport Beach CA 92663 Re: MarinaPark Dear Mayor Et Members of the City Council, PHONE 949.644.3151 FAX 949.644.3155 At the July 3, 2001 meeting of the Parks, Beaches and Recreation Commission, Mr. Sutherland of Sutherland-Talla Hospitality made a presentation of their proposal for MarinaPark. As previously indicated to the City Council (letter dated July 17 from the Parks, Beaches and Recreation Commission addressed to Sharon Wood with copies to the City Council) the MarinaPark site is a critical hub in the City's recreation programs. The highly used facilities include: • 4 tennis courts (two, lighted) • 1 tot lot • 1 half -basketball court • 1 Community Center (approximately 2,760 square feet) • 1 Girl Scout House (approximately 3,000 square feet) • 2 sailing bases - one at 18`h street, one at 16th street Obviously the Parks, Beaches and Recreation Commission feel that it is mandatory that these facilities should be retained even though they would be probably be rebuilt and in some cases relocated on the MarinaPark site. Questions or concerns expressed by the Parks, Beaches and Recreation Commission or staff at the July 3 meeting relative to the Sutherland-Talla proposal included the following: • It appears the project focuses on recreational use for hotel guests and causes concern that the City's current and future recreational programs will not be accommodated. • Control of the tennis courts and scheduling must remain with the City. Limitation of time for City tennis classes provides no room for expansion. • A room on the 2nd floor of the proposed relocated legion hall would not adequately replace the existing community center and would be a problem since classes scheduled are aerobics, dancing and youth groups that would cause noise in the legion hall. • Any new facility such as the proposed Girl Scout house should be designated shared use as a community center for maximum use of the valuable site. • The City fleet of sailboats must remain at their existing location and there must be public access for the City sailing programs. • Proximity of tennis courts and sailing facilities is crucial for continuation of the very popular sailing and tennis class. Re: MarinaPark Page 2 It is noted that upgrades to the existing community center have been held in abeyance awaiting a decision on the MarinaPark design. Other questions that arose at the meeting were: • Has a decision had been reached if the area of Marinapark is tidelands or not? • Has the American Legion approved the Sutherland-Talla proposal. Additionally the undersigned questioned the loss of a window to the bay from Balboa Boulevard, which was originally proposed (or expressed) by Sutherland-Talla, as well as concern that the most aesthetically unpleasing aspects of the development (Tennis Courts and parking structure) face Balboa Boulevard, while the architecturally pleasing high -end villas and landscaping face the bay. Hopefully the above concerns will be considered in the development of Marinapark with the emphasis on maintaining and enhancing the recreational facilities that are so important to this City. Sincerely, .photo Val Skoro, Chair Parks, Beaches and Recreation Commission cc: Homer Bludau, City Manager Sharon Wood, Assistant City Manager Steve Sutherland, Sutherland-Talla Planning Commission 0 Marinapark Public Forum Comments 7/9/01 Is Veterans Memorial Park dedicated? To whom? Can that use be changed? Loss of public parking Relocation of pumpout station — does Legion want it at 18th St.? Needs state agency approval. People wait 20 years to get a mooring and usually have to buy the boat — can Sutherland Talla buy 20 for American Legion? Balboa Penninsula Point Association has taken a poll and residents don't want hotel. Concern about buffering noise from tennis courts Will hotel be viable in this area? Concern about height of parking structure and visibility of cars from Balboa Blvd. What kind of barrier will there be to keep cars from coming on Balboa Blvd.? Who would own American Legion slips? Would City recreation programs continue? Interest in a website to get information Concern about increases in traffic Ability of paramedics and ambulances to get on and off Peninsula with increased traffic from hotel How will the public and visitors, other than hotel guests, know they can use tot lot and tennis courts? How much dry storage will be lost? Concern about lighting on parking structure 1 Vilelle Place — Will traffic come from America Legion parking lot and add traffic on that alley? How will employee parking be handled? Shuttle? From where? 5-star hotel and amount of public use proposed seem inconsistent. Existing American Legion Yacht Club and Post 291 are historic buildings. Will there be functions (e.g. weddings) and what will their traffic impacts be? What will limits on use of boardwalk be (dogs, bikes, etc.)? Where will mobile home park residents be relocated? Who's responsible? Val Skoro and Pat Beek — PB&R concerns from meeting of 7-3-01 There are no more places to dance. Hotels inhibit public use of beach. Visual impact of new American Legion dock @ 15t" Street City should have provided written proposal and recorded forum. Net increase of 72 parking spaces — parking structure would need to be larger to handle demand. Can parking be extended under tennis courts, park, Girl Scout House? American Legion has high parking demand on holidays (Memorial Day, July 4th) Concern about effects of moving on elderly residents of mobile home park Where's parking for community center? Cumulative impacts of functions at American Legion and hotel occuring at same time 2 There are 67 slips in American Legion marina. American Legion Yacht Club has its own building now (35' X 20�. 3 0 0 CITY OF NEWPORT BEACH March 13, 2001 Mr. and Mrs. Derrick Elliott 1770 West Balboa Boulevard, Unit 3B Newport Beach, California 92663 Dear Mr. and Mrs. Elliott: I received your letter of March 12, 2001 regarding my proposal to refund you $2,500 via a rental rebate without interest. As you know, your letter said that "the City (was) trying to take advantage of you" since I did not offer to include interest. Please note the following: 1-- You have yet to provide me with any evidence that you paid the transfer fee for your sale of Space 4C to Mr. John Nicholson. A cancelled check will suffice here. 2 -- You provided me with an unsigned copy of a statement by Mr. Nicholson that you paid the fee for the sale of Space 4C. Mr. Nicholson s signature on that same statement - along with a statement by Mr. Nicholson that he waives any right to the transfer fee - should suffice here. 3 -- You have not provided me with any evidence of the date of sale for Space 4C. With all due respect, how can I calculate interest on the rebate when I don't know what date the coach was sold? I am trying to do what's fair. I cant be granting rebates without any evidence that they are deserved. But I stand willing to consider any documentation listed above in an attempt to provide you with a fair rebate. If I don t receive 1, 2, and/ or 3, I can't offer you anything at all. Sincerely, Dave f Deputy City Manager cc: Bill Mecham, Bendetti Property Management ";ity Hall 9 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659-1768 .4 • 0 CITY OF NEWPORT BEACH February 15, 2001 Mr. Michael Reed Carl Warren and Company Post Office Box 25180 Santa Ana, California 92799-5180 Dear Mr. Reed: Per your "SPECIAL REQUEST" of February 9, 2001(your file #S110479MR), attached is: - A copy of my letter to Mr. Elliott - A copy of the Excel spreadsheet I used to determine rebates. I could not find any e-mails associated with Mr. Elliott's claim in my files. The spreadsheet provides rebate amounts as of 5-15-2000 for persons residing at Marinapark. Note that Mr. Elliott made a request - and received a $4,224 rebate - for one transfer fee. On October 30, 2000, he sought another rebate for a second coach. The close of the fiscal year (June 30, 2000) was the closing date for rebates. I do not recall authorizing any new rebates past that date unless a claimant could show me how they either in good faith missed the news of the rebates and/or called me before June 30, 2000 and told me that they were still searching for records that showed that they were due a rebate. Mr. Elliot clearly knew about the rebates early on (since he was in the May 15, 2000 rebate offer). He did not notify me that he was seeking a rebate for a second coach nor did he --- even in October 2000 — provide me with a copy of a canceled check or title or transfer documents associated with this second coach: Please let me know what other additional information you may require (949-644-3002). Sincerely, L/ DAVID A. KIFF Deputy City Manager cc: Bill Mecham, Bendetti Property Management Robin Clauson, Assistant City Attorney City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659-1768 0 CITY OF NEWPORT BEACH November 13, 2000 Mr. Derick Elliott Marinapark, Space 3B 1770 West Balboa Boulevard Newport Beach, California 92663 Dear Mr. Elliott: Thank you for your letter of October 30, 2000 relating to Space 4C and the coach now owned by Mr. John Nicholson. The period during which the City reviewed and authorized new rent credits has expired. If you still believe that you are due a credit, such disputes are dealt with via the City's claims process as managed by the City Clerk. Any claim filed with the Clerk should be appropriately substantiated. Sincerely, DAVID A. KIFF Deputy City Manager cc: Bill Mecbam, Bendetti Property Management Robin Clauson, Assistant City Attorney LaVonne Harkless, City Clerk City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659-1768 • L Jun-86 Jun-87 Jun-88 Jun-89 Jun-90 Jun-91 Jun-92 Jun-93 I Jun-94 Jun-95 Jun-96 Jun-97 I Jun-98 Jun-99 Jun-00 Gold, Gorman, MolnE $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 $4,7461 $5,030 $5,332 $5,652 Jacobs $2,500 $2,675 $2,836 $3,006 $3.186 $3,377 $3,580 $3,795 $4,022 $4,264 $4,5191 $4,791 $5,078 $5,383 Arons $2,500 $2,650 $2.809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 $4,746 $5,030 Minky, McDaniel $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 $4,746 Wood $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 $4,477 Bogin, Crawford $2,500 $2,600 $2,756 $2,921 $3,097 $3,282 $3,479 $3,688 $3,909 $4,144 $4,393 Elliott, Brownstein $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 $4,224 Berry $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $3,985 Erickson $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $3,759 $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 $3,546 $2,500 $2,650 $2,809 $2,978 $3,156 $3,346 Rehberg $2,500 $2,650 $2,809 $2,978 $3.156 Proctor $2,500 $2,625 $2,783 $2,949 $3,126 Dowden $2,500 $2,650 $2,809 $2,978 $2,500 $2,650 $2,809 - $2,5001 $2,650 $2,500 00-05-15 Marinapark Rental Rebates.xls 0 February 9, 2001 SPECIAL REQUEST— City of Newport Beach Attention: Mr. David A. Kiff, Deputy City Manager RE: Principal City of Newport Beach D/Event 11/13/00 Claimant Derick Elliott Our File S110479 MR Dear Mr. Kiff- In order to complete our investigation on behalf of the City, we need your assistance with the following information: ❑ May we have a copy of any underlying contract in this matter? ❑ May we have copies of related background information such as a -mails and memos outlining the reasons for this alleged non-payment? ❑ Any thing else that may be helpful for the defense of this matter. ❑ Your thoughts on the legitimacy of the fee reimbursement and as well, the legitimacy of the "period within which the City authorizes new rent credits." We appreciate your assistance and cooperation in this regard and continue in our efforts on your behalf. Very TXly Yours, Warren & Company cc: City of Newport Beach, Risk Management CARL WARREN & CO. CLAIMS MANAGEMENT•CLAIMS ADJUSTERS 750 The City Drive • Ste 400.Orange, CA 92868 Mall: P.O. Box 25180. Santa Ana, Ca 92799.5180 Phone: (714) 740-7999 • (800) 572.6900 • fax: (714) 740-9412 r CITY OF NEWPORT BEACH November 13, 2000 Mr. Derick Elliott Marinapark, Space 3B 1770 West Balboa Boulevard Newport Beach, California 92663 Dear Mr. Elliott: Thank you for your letter of October 30, 2000 relating to Space 4C and the coach now owned by Mr. John Nicholson. The period during which the City reviewed and authorized new rent credits has expired. If you still believe that you are due a credit, such disputes are dealt with via the City s claims process as managed by the City Clerk. Any claim filed with the Clerk should be appropriately substantiated. Sincerely, DAVID A. KIFF Deputy City Manager cc: Bill Mecham, Bendetti Property Management Robin Clauson, Assistant City Attorney LaVonne Harkless, City Clerk City Hall 9 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659-1768 V 11 0 0 October 30, 2000 Dave Kiff Assistant City Manager Newport Beach City Hall 3300 Newport Blvd. Newport Beach, Ca. 92663 Reference: Marinapark, 1770 West Balboa Blvd. Newport Beach California 92663 Dear Mr. Kiff; When we moved to our present location 3B in Marinapark, we'sold our other coach which was 4C to John Nicholson at that time we paid the transfer fee of $2,500.00. At this time we have not received the credit. Please review and credit to our existing unit 3B. I have enclosed a letter from John Nicholson confirming our payment of this fee. Please note we are currently getting credit for 3B which we paid that transfer fee also. Thank you £ youx sta Brick Elliott Telephone: 949/673-4945 760/773-9548 d 0 October 30, 2000 Newport Beach City Hall 3300 Newport Beach, Ca. 92663 To whom it may concern: This is to confirm that when we bought our unit 4C, located at Marinapark, 1770 West Balboa Blvd. Newport• Beach, Ca. 92663 from Derick Elliott they paid the $2,500.00 transfer fee. John Nicholson 0 February 19, 2001 LaVonne Harkness, City Clerk City Hall Newport Beach P.O.Box 1768 Newport Beach, Ca. 92659 Attention City Clerk: We have made numerous telephone calls and directed letters to City Hall regarding our request for a refund of the monies we paid for the transfer fee of $2,500 when we purchased our home 3D located in Marinapark, We understand other residents have received a refund of the money that should not have been collected and are wondering about the delay in receiving ours. Sincerely Betty & Frank Swift 1770 West Balboa Blvd. 3D Newport Beach, Ca. 92663 Telephone: (818) 243-3926 c/oIYWty Cif Manager.A ; D A:'I :- �v,�a also, 915- PM 20 APw.-f- Q- k# - Aar ., S'Z�SA-4 i5r3 1 a, r'• *n R:l (?eL , gAG�9 IIlL„IrII,I)I,+I)blislil,IIIIEI,IIII Hill IIJ1„1z111111111 �t9.-�-�- �O�e, � �� � � a ez� �"o 8/B- af13-&q z& 11 0 i �Jr9cc � 7� D� ez flo A ,`� �/�// �% G� � e��•L�G�✓ CPiJ�J vj�tGitCll,��e clo �.1 m A JOE FOREMAN REAL ESTATE & DEVELOPMENT 4304 Valley Meadow Rd., Encino, CA 91316 (818)995-6655 August 21, 1986 Received from Frank Swift, a cashier's check for $10,000.00 as deposit on the sale of'the mobile home at 1770 W. Balboa Blvd., 3D. The balance of $105,000..00 to be paid by August 26, 1986 with a cashier's check. Deposit is non- refundable if the balance.is not paid according to this agreement to consummate the sale. I agree to the above terms. a Frank Swif or Betty wift Ti, E i To Dave H.lff, Deputy City i1anager 3300 Newport Boulevaro Newport Beach, CA 92659-1768 FROM: Frank Swift, Marinapark 3D DATE: February 28, 2000 We are the homeowners in space .3-D at Marinapark and we appreciate your meeting with us last Saturday and your up-to-date input on our new lease Some time back, realizing that our lease would soon run out and might not be renewed, we obtained written permission from the the Marinapark manager to sublease our mobile home on a yearly basis and purchased a home in fee simple on 26 th st in Newport Beach Our tenant was a single man who stayed for several years. When he moved out the current management thought it best not to give us permission ro lease it again. We can fully understand the merits in regulating the occupancy in the park. However, the two year extention on the lease does put a financial burden on us in that we will have to continue to pay the ground rent without any revenue to compensate if it has to remain vacant We would be glad to have the parr rnanager screen any applicant and to put any restrictions he might deern reasonable or even to act as our leasing agent for a fee if you felt that was, appropriate Anyway, we would respectfully ask that some consiaeration be given to our request to lease our mobile home after we have signed the new lease Sincerely Frank and Betty Swift W0i 0 /LS/�ZEI/%i ✓ / (/ti t' 6J'riW LLCLG�' � t c � 8/8 O'l43- r ORIGINAL r I v AGREEMENT REGARDING TRANSFER OF MOBILEHOME SPACE AND COMPENSATION FOR SERVICES AND COSTS NEWPORT MARINAPARK (Mobilehome Space No.3-D ) WHEREAS, the City of Newport Beach, a chartered municipal corporation, is the Lessor"of certain mobilehome spaces in the park known as Newport Marinapark; and WHEREAS, pursuant to the Lease between Jose}h Foreman (hereinafter "Lessee") and the -City of Newport Beach, executed on October 1, 1985 r (hereinafter "Lease") a Lessee of a mobilehome space in Marinapark.cannot transfer the mobilehome space without 1. the prior written approval of `the City Council of the City of Newport Beach; and WHEREAS, pursuant to_the Lease, Lessee has requested _. _ the transfer of a mobilehome space and also requested that the City perform certain services and incur certain administrative Y0. costs o±;the in connec ion with the trans -for _mobilehome space; and WHEREAS, when this document is executed, it will represent the consent of the City of Newport Beach for the transfer of Mobilehome Space No. 3-D in Marinapark and agreement of Lessee to compensate the City for services performed and costs incurred in connection with the transfer. NOW, THEREFORE, the City of Newport Beach hereby consents to Lessee's transfer of all right and interest to 3 D -- to --F-rank C or Betty M G�•» fr _�� —-Niob i-Teriome--Sp-a-ce- No. -' - - as Vendee. Lessee agrees to pay to the C}Ilty of Newport Beach $2,500.00 to reimburse the City for performance of certain services and cover administrative costs'as provided in the -1- J Lease. Lessee Wees that said sum is rea! able compensation for the performance of services and reimbursement for administrative costs in connection with the transfer of the mobilehome space. �eS4dee hZrety aekstoviledges that Yeadee has received a copy of and read in its entirety,'specifically consents to and agrees to comply with all of the terms, covenants and conditions ; including but not limited to the Section pertaining to Term of the Lease, a copy of which is attached hereto,. IN WITNESS WHEREOF, the parties //hereto have caused this Agreement to be made and executed the day of August , 19 86 ATTEST Assist. City G1 er LESSEE 9/a Oa- 0 CITY OF NEWPORT BEACH A unic1,a1'Cor/pRr`ation -2- I / ! 60t�wolpoxl � �e c/4 J T j 7, ,r-Ci 0 /— SIDNEY E. BOGIN 16-4/12M 1.639 EMILY M. BOGIN 22 9375 SAN FERNANDO RD. 818-768.33 q� SUN VALLEY, CA-61352 — /Jd — ' 19_L- — — C. 4 00 + PAORDEROFE C I T/ oI- Nj-;Vru�l- &&_-71'17Crah----I $ - . _ —i—. / 2"7A Cam./ / I L L A R S 9ECUi JTY PACIFIC NATIONA1 .0IAN_.K X ' --* Sun Valle 011lce a0187_ _ 010801050 Q�i1 D 13.49.0000002d06353 sees alley,un OAX1 ✓� �, Sun Valley, CA 81352 ,e O/✓ 1EM6 :L22000043�:-iE3gl�`i87��-1E5360.'0000250000�' G_ .9 Wa B.O.Q.nC . ROCES ED NO '9wRN miYNQdCo „• on Owmc am cy cm, t 1CA 90006 C L{2794BO-7276 o m 0 0 2 0 m0 9 -1 N �p m m m om m m ' NOV 29 '90 I -A _ ►OR "POSIT ONLY w TREASURER CITY OF ,--:NEWPORT BEACH, CALIF. 026-063531 ii r o��govP°R CITY OF NEWPORT BEACH G cq�i Foa��P December 8, 2000 Mr. Bill Mecham Bendetti Property Management 1770 West Balboa Boulevard Newport Beach, Califorriia 92663 Dear Bill: Mr. Stewart Berkshire of Space #7A has presented evidence to me - apparently provided to my office but misplaced prior to the August 2000 cut-off date for requests - - that he should receive a rental rebate associated with a transfer fee paid for Space #7A in 1987. As you are aware, the City offered these rebates in conjunction with the signing of the Lease Extensions to the 1985 Marinapark Leases. Please direct Joe to apply a $5,383 rebate to Mr. Berkshire's rent for Space #7A. Sincerely, DAVID A. KIFF Deputy City Manager cc: Mr. Stewart Berkshire City Hall • 3300 Newport Boulevard 9 Post Office Box 1768 • Newport Beach, California 92659-1768 STEWART BERKSIURE 1770 W. BALBOA BLVD. #7A NEWPORT BEACH, CA 92663 f e �� -c-tA l I f l G.�`,s?i'�� -' �-C�� i�},•r,...•••+.•'U r?7°c.' '; f)�-'.. ,l"":.••. � Y{_.a D"CQ( �(_ye—'L.� l � ' 1. • PHONE: 949-723-0630 E-MAIL: BALPEN@AOL.COM FAX: 949-723-4345 4 September 15, 1987 Mrs. Eva Heisler c/o Jack Sinder 1002- 16055 Ventura Blvd. Encino, CA 91436 Dear Mrs. Heisler: This is to confirm the telephone conversation of 9/14/87 between the undersigned buyers and Jack Sinder, representing the seller, Eva Meisler. As of 9/16/87, buyers remove all contingencies heretofore placed on the agreement to purchase the mobile home located at 1770 W. Balboa Blvd., P7A, Newport Reach, CA and hereby accept the seller's conditions of sale as described in the letter dated 9/9/87 with the following exceptions, verbally agreed upon between buyer and seller: 1. Seller has agreed to pay the transfer fee from the City of Pe!";port Reach in the amount of $2,500.00 in full. 2. Ruyer assumes responsibility for all repairs necessary to mobile home to make it habitable, including pest control work. 3. It is mutually agreed that the value of the mobile home is approximately $15,000 and the value of the personal property is approximately S2,000 and the balance is the value of the location. Seller will deliver to buyer a Bill of Sale reflecting these amounts. 4. bate of transfer to be 9/18/87. Sincerely, u P, r JIN CeJ+ �• _ - -- ACC@PTANC-c. _ I 10 Acr-rplt d Ica n' rt day rl••bu n t Accepted for p+is ddshnanun alter Uep•.:'' velar deadline for neni day delivery. therefonr ?una;e for delivery by second day g Fecs fCa�ariirmn rocai fxdr9sg Nml Noxlbrn Surmro - dnm Inq Inr JaI1 rCrt JCarll nJ. (N tld(f+u"( rlm(.nabu n. (Using •11, nulnddmd a- 1-1 II ACCOntNumber (if any) Indicalcaposta90Acid Was Paid) Express Mail Corporate Account No Federal Agency Control No.' = FROM: OM: Sg E U Label II-B (March 1985) CUSTOMER RECEIPT w . • V k CITY OF NEWPORT BEACH MEMORANDUM TO: Jay Elbettar, Building Director FROM: Dave Kiff, Deputy City Manager DATE: November 1, 2000 RE: Marinapark Coach Demolitions In anticipation of Marinapark's possible closure in March 2002, the City Council has directed me to purchase any coach that may become available for sale (if the price is reasonable). At my discretion, I may retain, remove, or direct the demolition of the coach upon purchase. As you are aware, I made a mistake regarding Space 10B's demolition by not directing our management company at Marinapark, Bendetti Property Management, to direct the demolition contractor to seek a demolition permit from the Building Department prior to any coach demolition. After speaking with your staff and with Mr. Dan Russell of the South Coast Air Quality Management District ("AQMD"), I have pledged to prepare this memo for you and for our property records to establish an appropriate procedure for us to follow prior to any coach demolitions. The procedure shall be as follows: 1- The contractor shall apply for a Demolition Permit on behalf of the City at least fourteen (14) days prior to any proposed demolition. 2 - Before issuing a demolition permit, the Building Department shall require: A - That the contractor acquire a current City Business License. B - That the contractor complete a "Notification of Demolition or Asbestos Removal" form per Rule 1403 of the South Coast AQMD (Attachment C - also available at www.aqmd.gov/rules/html/rl4O3.httnl). This notification will also require the payment of a SCAQMD fee depending upon the size of the coach to be demolished. Forms and fees shall be sent to: SCAQMD Asbestos Notifications, File #55641 Los Angeles, California 90074-5641 C - That the contractor complete a Facility Survey (also per Rule 1403 - Attachment B). Per Rule 1403, if the Survey indicates the presence of asbestos, then the contractor must provide 10-days' notice of an asbestos abatement. If the coach will be demolished after the removal of the asbestos, then the contractor must provide a second 10-day notification. The two 10-day notifications may run almost simultaneously if the contractor chooses to use BOTH notices should the contractor City Hall 9 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659-1768 • • Mento to Jay Elbettar November 1, 2000 Page 2 suspect that asbestos is, indeed, present. If the "facility survey" indicates there is no asbestos present, then only one 10-day notification is necessary for the demolition. D - That the contractor provide the City with signed copies of any notification forms. Such forms shall be filed with the Demolition Permit. E -That any asbestos abatement contractor be both State licensed and registered with Cal/OSHA. 3 - When the above steps are complete and the contractor or the City has received the go-ahead from AQMD, the Permit Technician may issue the demolition permit per his or her discretion. I have attached a map of Marinapark (Attachment A) for your staff to use and to update as the coach removals and demolitions continue. Two coach areas are marked as of the date of this memo, thus identifying Marinapark coaches that have been purchased and removed or demolished. If you have any questions about this memorandum, please contact me at 949-644-3002. Appropriate contacts at the South Coast AQMD include Dan Russell (909-396-2333), Sam Vergara (909-396-2318), or Mohan Nagavedu (909-396-3739). Attachments: A - Marinapark Map B - Rule 1403 & and related instructions C - Notification of Demolition or Asbestos Removal & related instructions cc: Jim Sinasek, Code Enforcement Supervisor Bill Mecham, Bendetti Property Management w/attachments Mr. Dan Russell, South Coast AQMD Homer Bludau, City Manager w/out attachments Patty Temple, Director of Planning Dennis Danner, Administrative Services Director z ft Ib Udlb Exhibit A �,nL b o ^ U7I1.11,( - BUI VRO44, i L i • r 1 LJ R! nftlblCUvmfr.w N A` x ASBESTOS/DEMOLITION RULE 1403 GENERAL INFORMATION SURVEY REQUIREMENT: Asbestos surveys are required prior to all renovation and demolition. For renovations asbestos must be removed prior to activities that may disturb it. All asbestos must be removed prior to demolition. NOTIFICATION REQUIREMENTS: Postmark notifications fourteen (14) calendar days prior to starting any asbestos removal of 100 sq. ft or greater or any demolition. Notifications shall be filled, signed, paid, submitted and mailed by the contractor performing the removal and/or demolition job. Notifications without signature(s) will be returned. Renovations without asbestos do not require notification. Los Angeles City and Palm Springs Fire Departments, and CALOSHA require separate Notifications. FEE REQUIREMENT: Rule 301 requires all notifications to be submitted with appropriate fees. Fees are per notification and are not refundable. Notifications submitted without appropriate fees will be returned, deemed incomplete, and referred to the compliance unit for follow-up. Projects conducted without a valid notification are subject to local and federal enforcement. Cancellation of notifications and removal projects less than 100 square feet are exempt from fees; however other requirements may apply. MAILING REQUIREMENT: Mail all notifications to SCAQMD, ASBESTOS NOTIFICATIONS, FILE # 55641, LOS ANGELES, CA 90074-5641. Mail the notification, do not hand carry. Mailing saves time, money and reduces traffic and air pollution. REVISIONS: Update the notifications as necessary, pencil in the changes, write the reason for the revision at the top of the notification, and fax it to 909-396-3342. Changes in asbestos amount of plus or minus 20% of the previously notified amount require a revision, and a fee for the additional amount if applicable. Fees are per notification. See Fax Notification requirements. EMERGENCY NOTIFICATIONS: These are for immediate asbestos removals due to unsafe conditions, such as equipment breakdowns, flood, earthquake, fire, and site contamination. For emergency removals submit a letter from the person or agency authorizing the emergency. For Ordered Demolitions submit a copy of the legal notice or Building and Safety "red tag". For emergency site contamination clean-up submit a Procedure 5 for prior written approval. FAX NOTIFICATIONS: Fax notifications are accepted for Emergencies, Ordered Demolitions, Electronic Notifications, and Cancellations. Fax notifications to 909-396- 3342 and postmark/mail the Original Notification with fee, within 48 hours of fax to SCAQMD, ASBESTOS NOTIFICATIONS, FILE # 55641, LOS ANGELES, CA 90074-5641. Fax notifications are not in lieu of the Original signed notification required by local and federal law. For Emergencies include the letter authorizing the Emergency. For Ordered Demolitions include proof of asbestos survey, removal and disposal. For Ordered demolitions without prior asbestos removal submit a Procedure 5 Plan for prior written AQMD approval. Cancellations do not require mail follow-up. DEMOLITIONS require 4 PRIOR steps: I Asbestos Survey, 2 Asbestos Removal, 3 AQMD Notification, 4 B&S permit. � x ALL demolitions require a notification by the contractor doing the demolition. Demolitions without prior asbestos removal require written approval from AQMD (See Procedure 5 Plan). Demolition is defined as the wrecking or taking out of a load -supporting structural member of a facility or the intentional burning of a structure. Dismantling of partitions and installation of windows and doors through load -supporting walls without asbestos is exempt from notification. DEMOLITION BY INTENTIONAL BURNING require 4 prior steps above plus 2 more steps: 5 Call AQMD 800- 288-7664 to provide the Rule 444 "training burn notification' the day prior to burning, and 6 conduct the training burn on a burn day. Fire departments are responsible for obtaining an asbestos clearance, copies of the demolition notification, phoning AQMD the Rule 444 notification the day prior to the training bum, and coordinating with the demolition contractor to clean the site right after the training burn. RENOVATION is the removal, stripping, or altering of asbestos containing materials, and/or any activity involving the associated disturbance of asbestos in a facility. Renovations require an asbestos survey and removal prior to any activity that would disturb the asbestos. Remodeling or renovations without asbestos do not require notification. PLANNED RENOVATION NOTIFICATIONS (PR11): There are two kinds of PRN, The first kind is to notify for Nonscheduled Asbestos Removals (AKA annual notifications), where less than 100 square feet is removed, each time, due to equipment breakdown or maintenance requirements. Nonscheduled Asbestos Removals are expected to occur based on past experience, but no exact date can be predicted for them. These notifications account for the cumulative asbestos amounts removed from a facility in a calendar year in increments of less than 100 square feet due to nonscheduled asbestos removals. These notifications must be postmarked by December 17th. Individual Removals of 100 square feet or more require separate notification. The second kind is to notify for a series of Scheduled Asbestos Removals within a facility, where each removal is greater than 100 square feet. These notifications are for projects extending over 3 months and require an attachment listing the individual projects planned within the facility detailing the removal locations, contractor, dates, and asbestos amount (any schedule change require a Revision). Planned Renovations that exceed one year in duration require annual progress reports by December 17. PROCEDURE 4/5 PLANS: These plans require prior approval by AQMD. To obtain approval fax the plan and notification to 909-393-3342 attention Asbestos Supervisor. For after hours fax and leave a message at 1-800-CUTSMOG for asbestos supervisor. Within 48 hrs of Plan approval, mail hard copies of the plan, notification, and fees. Procedure 4 Plans are for dry removals. Procedure 5 plans are required for asbestos site clean-ups, decontaminations, excavations, and demolitions with asbestos. KEEP A COPY OF YOUR NOTIFICATION: State law requires you give a copy of the demolition notification to Building and Safety before issuance of a demolition permit. This law does not require proof of receival or approval by AQMD. For your convenience, please mail the notification and do not hand carry to SCAQMD because there is no designated staff to receive it. Mailing saves you time, money, gasoline, wear and tear in your car, and reduces traffic, energy use and air pollution. For questions call the asbestos hotline at 909-396-2336. go s instruction$, and �ule1403 can by obt fined from w b ite http:llw�vrv.agmd.gov (S c�ns3rMiice\wmword\temolateffl instcoc REV2009i10T IMPORTANT NOTICE June 6, 2000 TO COMPANIES AND CONTRACTORS THAT HANDLE ASBESTOS CONTAINING MATERIALS, RENOVATE OR DEMOLISH ANY STRUCTURE SCAQMD Regulation III — Fee amendments for year 2000, include a 2.9% across-the-board California Consumer Price Index increase in fees for Notifications of Asbestos Removals and Demolition of structures. The following fees apply to notifications of: Asbestos removal, require a fee based on the amount of asbestos to be removed, in square feet; Demolition, require a fee based on the building size, in square feet; Demolition of buildings of less than 100 square feet in size, require a fixed fee of $26.96; Asbestos removal at owner -occupied, single -unit dwelling, require a fixed fee of $26.96; Refinery and/or Chemical unit Demolition, the fee is based on the structure's footprint surface area, in square feet; Postmarked less than 14 calendar days prior to project start date, require an additional $25.73 special handling fee. Effective July 1, 2000, the notification fee schedule is as follows: • Demolition of structures of less than 100 square feet $26.96 • Asbestos removal and Demolition of 100 to 1,000 square feet $26.96 • Asbestos removal and Demolition of 1,001 to 5,000 square feet $82.42 • Asbestos removal and Demolition of 5,001 to 10,000 square feet $192.93 • Asbestos removal and Demolition of more than 10,000 square feet $302.53 • Asbestos removal at owner -occupied, single -unit dwelling $26.96 • Procedure 4 or 5 notification, there is fixed fee for all project sizes $302.53 • Special handling fee for notifications postmarked less than 14 days of start date $25.73 • Returned check charge $26.75 • Revision of notification $10.91 • Cancellation of notification $0.00 Mail all notifications and fees to: SCAQMD, ASBESTOS NOTIFICATIONS, FILE # 55641, LOS ANGELES CA 90074-5641 For your convenience please mail your notification and do not hand carry to SCAQMD because there is no designated staff to receive it. Mailing saves time, money, gasoline, wear and tear on vehicles, and reduces traffic, energy use and air pollution. Notifications should be completed, signed, mailed and fees paid by the contractor performing the removal and/or demolition project. Notifications submitted without appropriate fees are deemed incomplete and they will be returned to sender and referred to the Air Toxics Compliance Unit. Notification forms, instructions, and Rule 1403 can be obtained from SCAQMD web site at HTTP://WWW.AQMD.GOV. For copies of the form and Rule, click on Compliance Program, look for Reporting Forms. Any questions call the Asbestos Hot Line at 909-396-2336. (feeinf2000.doc SV200601) (Adopted October 6, 1989)(Amended April 8, 1994) RULE 1403. ASBESTOS EMISSIONS FROM DEMOLITION/RENOVATION ACTIVITIES (a) Purpose The purpose of this rule is to specify work practice requirements to limit asbestos emissions from building demolition and renovation activities, including the removal and associated disturbance of asbestos -containing materials (ACM). The requirements for demolition and renovation activities include asbestos surveying, notification, ACM removal procedures and time schedules, ACM handling and clean- up procedures, and storage, disposal, and landfilling requirements for asbestos - containing waste materials (ACWM). All operators are required to maintain records, including waste shipment records, and are required to use appropriate warning labels, signs, and markings. (b) Applicability This rule, in whole or in part, is applicable to owners and operators of any demolition or renovation activity, and the associated disturbance of asbestos -containing material, any asbestos storage facility, or any active waste disposal site. (c) Definitions For the purpose of this rule, the following definitions shall apply: (1) ACTIVE WASTE DISPOSAL SITE is any disposal site that receives, or has received or processed ACWM within the preceding 365 calendar days. (2) ADEQUATELY WET is the condition of being sufficiently mixed or penetrated with amended water to prevent the release of particulates or visible emissions. The process by which an adequately wet condition is achieved is by using a dispenser or water hose with a nozzle that permits the use of a fine, low-pressure spray or mist. (3) AMENDED WATER is water to which a chemical wetting agent or surfactant has been added to improve penetration into ACM. (4) ASBESTOS is the asbestiform varieties of serpentine (chrysotile), riebeckite (crocidolite), cummingtonite-grunerite (amosite), anthophyllite, actinolite or tremolite. 1403-1 Rule 1403 (Cont.) (Amended April 8,1994) (5) ASBESTOS -CONTAINING MATERIAL (ACM) is both friable asbestos - containing material or Class I nonfriable asbestos -containing material. (6) ASBESTOS -CONTAINING WASTE MATERIAL (ACWM) is any waste that contains commercial asbestos and that is generated by a source subject to the provisions of this rule. ACWM includes, but is not limited to, ACM which is friable, has become friable, or has a high probability of becoming friable, or has been subjected to sanding, grinding, cutting, or abrading, and the waste generated from its disturbance, such as asbestos waste from control devices, particulate asbestos material, asbestos slurries, bags or containers that previously contained asbestos, used asbestos -contaminated plastic sheeting and clothing, and clean-up equipment waste, such as cloth rags or mop heads. (7) ASBESTOS HAZARD EMERGENCY RESPONSE ACT (AHERA) is the act which legislates asbestos -related requirements for schools (40 CFR 763, Subpart E). (8) CLASS I NONFRIABLE ASBESTOS -CONTAINING MATERIAL is material containing more than one percent (1%) asbestos as determined by paragraph (h)(2), and that, when dry, can be broken, crumbled, pulverized, or reduced to powder in the course of demolition or renovation activities. Actions which may cause material to be broken, crumbled, pulverized, or reduced to powder include physical wear and disturbance by mechanical force, such as, but not limited to, sanding, sandblasting, cutting or abrading, improper handling or removal or leaching of matrix binders, Class I nonfriable asbestos -containing material includes, but is not limited to, fractured or crushed asbestos cement products, transite materials, mastic, roofing felts, roofing tiles, cement water pipes and resilient floor covering. (9) CLASS II NONFRIABLE ASBESTOS -CONTAINING MATERIAL is all other material containing more than one percent (1%) asbestos as determined by paragraph (h)(2), that is neither friable nor Class I nonfriable. (10) COMMERCIAL ASBESTOS is any material containing asbestos that is extracted from asbestos ore. (11) CUTTING is penetrating with a sharp -edged instrument and includes sawing, but does not include shearing, slicing, or punching. (12) DEMOLITION is the wrecking or taking out of any load -supporting structural member of a facility and related handling operations or the intentional burning of any facility. 1403 - 2 5 A Rule 1403 (Cont.) (Amended April 8,1994) (13) EMERGENCY DEMOLITION is any demolition or remedial action under order of a state or local governmental agency. Such an order is generally issued for a structurally unsound facility in danger of imminent collapse. (14) EMERGENCY RENOVATION is any renovation that was not planned and results from a sudden unexpected event that results in unsafe conditions. Such events include, but are not limited to, renovations necessitated by non -routine failures of equipment, earthquake or fire damage. (15) ENCAPSULATION is the treatment of ACM with a material that surrounds or embeds asbestos fibers in an adhesive matrix to prevent the release of fibers, as the encapsulant creates a membrane over the surface (bridging encapsulant) or penetrates the material and binds its components together (penetrating encapsulant). (16) FACILITY is any institutional, commercial, public, industrial or residential structure, installation, or building; any ship; and any active waste disposal site. (17) FACILITY COMPONENT is any part of a facility including equipment. (18) FRIABLE ASBESTOS -CONTAINING MATERIAL is material containing more than one percent (1%) asbestos as determined by paragraph (h)(2), that, when dry, can be crumbled, pulverized, or reduced to powder by hand pressure. (19) GLOVEBAG is a sealed compartment with attached inner gloves used for handling ACM. When properly installed and used, glove bags provide a small work area enclosure used for small-scale asbestos stripping operations. Information on glovebag installation, equipment, and supplies, and work practices is contained in the Occupational Safety and Health Administration's final rule on occupational exposure to asbestos (Appendix G to 29 CFR 1926.58). (20) HIGH EFFICIENCY PARTICULATE AIR (HEPA) FILTER is a filter capable of trapping and retaining at least 99.97 percent of all monodispersed particles of 0.3 micrometer in diameter or larger. (21) INSTALLATION is any building or structure or any group of buildings or structures at a single demolition or renovation site that are under the control of the same owner or operator (or owner or operator under central control). (22) ISOLATED WORK AREA is the immediate enclosed containment area in which the asbestos abatement activity takes place. (23) LEAK -TIGHT is the condition whereby any contained solids or liquids are prevented from escaping or spilling out. 1403-3 a • ti Rule 1403 (Cont.) (Amended April 8,1994) (24) NONSCHEDULED RENOVATION OPERATION is a renovation operation necessitated by the routine failure of equipment, which is expected to occur within a given calendar year based on past operating experience, but for which an exact date cannot be predicted. (25) OUTSIDE AIR is air outside of the facility or outside of the isolated work area. (26) OWNER or OPERATOR OF A DEMOLITION OR RENOVATION ACTIVITY is any person who owns, leases, operates, controls or supervises activities at the facility being demolished or renovated; the demolition or renovation operation; or both. (27) PERSON is any individual, firm, association, organization, partnership, business, trust, corporation, company, contractor, supplier, installer, user or owner, or any state or local government agency or public district or any other officer or employee thereof. PERSON also means the United States or its agencies to the extent authorized by Federal law. (28) PLANNED RENOVATION is a renovation operation, or a number of such operations, in which the amount of ACM that will be removed or stripped within a given period of time can be predicted. Individual nonscheduled renovation operations are included if a number of such operations can be predicted to occur during a given period of time based on operating experience. (29) PROJECT is any renovation or demolition activity, including site preparation and clean-up activity. (30) REMOVAL is the taking out of ACM or facility components that contain or are covered with ACM from any facility. (31) RENOVATION is the altering of a facility or the; removing or stripping of one or more facility components in any way, including, but not limited to, the stripping or removal of ACM from facility components, retrofitting for fire protection, and the installation or removal of heating, ventilation, air conditioning (HVAC) systems. Activity involving the wrecking or taking out of load -supporting structural members are demolitions. (32) RESIDENTIAL SINGLE UNIT DWELLING is a structure that contains only one residential unit. Apartment buildings, townhouses, and condominiums are not residential single unit dwellings. (33) RESILIENT FLOOR COVERING is asbestos -containing floor tile, including asphalt and vinyl floor tile, and sheet vinyl floor covering containing more than one percent (1%) asbestos as determined by paragraph (h)(2). Rl1xa Rule 1403 (Cont.) (Amended April 8,1994) (34) STRIPPING is the taking off of ACM from any part of a facility or facility component. (35) STRUCTURAL MEMBER is any load -supporting member of a facility, such as beams and load -supporting walls; or any nonload-supporting member, such as ceilings and nonload-supporting walls. (36) WASTE GENERATOR is any person who owns or operates a source subject to the provisions of this rule according to section (b), and whose act or process produces ACWM. (37) WASTE SHIPMENT RECORD is the shipping document, required to be originated and signed by the waste generator, used to track and substantiate the disposition of ACWM as specified by the provisions of subdivision (f). (38) WORKING DAY is Monday through Friday and includes holidays that fall on any of the days Monday through Friday. (d) Requirements A person subject to this rule shall prevent emissions of asbestos to the outside air by complying with the following requirements: (1) Demolition and Renovation Activities The owner or operator of any demolition or renovation activity shall comply with the following requirements: (A) Facility Survey The affected facility or facility components shall be thoroughly surveyed for the presence of asbestos prior to any demolition or renovation activity. The survey shall include the inspection, identification, and quantification of all friable, and Class I and Class II non -friable asbestos -containing material, and any physical sampling of materials. The survey shall be documented with the following information: (i) The name, address, and telephone number of the person who conducted the survey; (ii) A written statement of the qualifications of the person who conducted the survey, demonstrating compliance with paragraph (i)(4); (iii) The dates the survey was conducted; 1403 - 5 t, ; Rule 1403 (Cont.) (Amended April 8,1994) (iv) A listing of all suspected materials containing any asbestos and samples taken; (v) The name, address, and telephone number of any laboratory used to conduct analyses of materials for asbestos content; and (vi) A statement of qualification of the laboratory which conducted the analyses, demonstrating compliance with paragraph (h)(2). (vii) A list of the test methods used, demonstrating compliance with subdivision (h), including sampling protocols and laboratory methods of analysis, test data, and any other information used to identify or quantify any materials containing asbestos. (viii) Persons conducting asbestos surveys in accordance with subparagraph (d)(1)(a) shall be certified by CaVOSHA pursuant to regulations required by subdivision (b) of Section 9021.5 of the Labor Code, and shall have taken and passed an EPA -approved Building Inspector Course and conform to the procedures outlined in the Course. (B) Notification The District shall be notified of the intent to demolish or renovate any facility. Notifications shall be submitted on District -approved forms, and shall be provided in accordance with the following requirements: (i) Time Schedule (I) Demolition or Renovation Activities The District shall be notified by typewritten notification postmarked or delivered no later than 10 working days before any demolition or renovation activities other than emergency demolition, emergency renovation, or planned renovations involving individual nonscheduled renovation operations begin. (II) Planned Renovation - Annual Notification The District shall be notified by typewritten notification postmarked or delivered by December 17 of the year preceding the calendar year for which notice is being given for planned renovation activities which involve individual nonscheduled renovation operations. 1403-6 L- t Rule 1403 (Cont.) (Amended April 8,1994) (III) Emergency Demolition or Renovation The District shall be notified by telephone, as soon as possible, but prior to any emergency demolition or renovation activity. The telephone notification shall be confirmed with a follow-up typewritten notification to the District postmarked or delivered within 48 hours of the telephone notification or the following business day. (ii) Telephone and Written Notification Required Information All telephone and written notifications shall include the following information: (I) An indication of whether the notice is the original or a revised notification; (II) Name, address and telephone number of both the owner and operator of the facility, supervising person, and the asbestos removal contractor, owner or operator; (III) Address and location of the facility to be demolished or renovated and the type of operation: demolition or renovation; (IV) Description of the facility or affected part of the facility to be demolished or renovated including the size (square meters or square feet and number of floors), age, and present or prior uses of the facility; (V) The specific location of each renovation or demolition at the facility and a description of the facility components or structural members contributing to the ACM to be removed or stripped from the facility; (VI) Scheduled project starting and completion dates of demolition or renovation. Notifications shall also include the ACM removal starting and completion dates for demolition or renovation; planned renovation activities involving individual nonscheduled renovation operations need only include the beginning and ending dates of the report period as described in subclause (d)(1)(B)(i)(II); 1403 - 7 41 x Rule 1403 (Cont.) (Amended April 8,1994) (VII) Brief description of work practices and engineering controls to be used to comply with this rule, including asbestos removal and waste handling emission control procedures; (VIII) A separate estimate for each of the amounts of friable, Class I, and Class II nonfriable asbestos -containing material to be removed from the facility in terms of length of pipe in linear feet, surface area in square feet on other facility components, or volume in cubic feet if off the facility components. The total as equivalent surface area in square feet shall also be reported; (IX) Name and location of waste disposal site where ACWM will be deposited. Telephone notifications may consist of a combination of verbally and electronically communicated information if the electronic portion is transmitted and received in a legible, District -approved format. (iii) Written Notification Additional Required Information All written notifications shall include the following additional information: (I) Description of procedures to be followed in the event that unexpected ACM is found or Class H nonfriable asbestos - containing material becomes crumbled, pulverized, or reduced to powder; (II) California State Contractors License Certification number; (III) Cal/OSRA Registration number; (IV) Name and location address of off -site storage area for ACWM; (V) Name, address, and telephone number of transporters used to transport ACWM off -site; (VI) Procedures, including analytical methods, used to detect the presence of friable and nonfriable asbestos -containing material; and 1403 - 8 A Rule 1403 (Cont.) (Amended April 8,1994) (VII) Signed certification that at least one person trained as required in subparagraph (d)(1)(G) will supervise the stripping and removal described by this notification. (iv) Emergency Demolition Additional Information Telephone and written notification of all emergency demolition activities shall include the following additional information: (I) The agency, name, title, telephone number and authority of the representative who ordered the emergency demolition; and (II) A copy of the order, and the date on which the demolition was ordered to begin. (v) Emergency Renovation Additional Information Telephone and written notification of all emergency renovation activities shall include the following additional information: (1) The name and phone number of the responsible manager or authorized person who is in charge of the emergency renovation; and (II) The date and hour that the emergency occurred, a description of the sudden, unexpected event, and an explanation of how the event caused an unsafe condition, or would cause equipment damage or an unreasonable financial burden. (vi) Notification Updates All written notifications shall be updated when any of the following conditions arise: (I) Change in Quantity of Asbestos A change in the quantity of affected asbestos of 20 percent or more from the notified amount shall be reported to the District by telephone, or by facsimile, as soon as the information becomes available. The telephone, or facsimile, notification shall be followed by a typewritten notification to 1403 - 9 '- A Rule 1403 (Cont.) (Amended April 8,1994) the District, postmarked or delivered within 48 hours or the following business day. (II) Later Starting Date A delay in the starting date of any demolition or renovation activity shall be reported to the District by telephone as soon as the information becomes available. The telephone notification shall be followed by a typewritten notification to the District submitted as soon as possible and postmarked no later than the original start date. (III) Earlier Starting Date A change in the starting date of any demolition or renovation activity to an earlier starting date shall be reported to the District by typewritten notification, postmarked no later than 10 working days before any demolition or renovation activities begin. (IV) Completion Date Change Planned changes in the completion date shall be reported to the District by typewritten notification, postmarked at least 2 calendar days before the original scheduled completion date. In the event planned renovations or demolitions are delayed or completed ahead of schedule, the District shall be notified by telephone, as soon as possible, but no later than the following business day. The telephone notifications shall be followed by typewritten notification to the District postmarked or delivered, within 48 hours of the telephone notification or the following business day. (V) Planned Renovation Progress Report Notifications for on -going planned renovation operations in which the scheduled starting and completions dates are more than 1 year apart shall be updated, by typewritten notification, postmarked or delivered every year of operation by December 17, unless the most recent written notification update was postmarked or delivered after October 1 of that 1403 -10 '' ; Rule 1403 (Cont.) (Amended April 8,1994) year. The amount of ACM removed and the amount of ACM remaining to be removed shall be reported. (C) Asbestos Removal Schedule Material containing asbestos shall be removed from a facility according to the following schedule: (i) Burning Demolitions All ACM and Class II asbestos -containing material shall be removed from a facility prior to any demolition by intentional bunting. (ii) Renovations and Non -Burning Demolitions All ACM shall be removed from a facility being demolished or renovated before any non -burning demolition or renovation activity begins that would break up, dislodge, or similarly disturb the material or preclude access to the material for subsequent removal. ACM not accessible for testing or not discovered until after demolition activities begin may be removed after the start of non -burning demolition activities. Notwithstanding the above, asbestos -containing packings, gaskets, resilient floor covering, and asphalt roofing products which are not friable and are not crumbled, cut, abraded, or otherwise not damaged and in good condition, may be removed after the start of non -burning demolition activities if prior approval from the District is obtained (Procedure 5). If the demolition activity involves any mechanical force such as, but not limited to, sanding, sandblasting, cutting, or abrading and thus would render the materials friable, they must be removed prior to demolition. (D) Removal Procedures One or more of the following procedures shall be used when removing or stripping ACM: (i) Procedure 1 - HEPA Filtration Remove ACM within an isolated work area. The following techniques shall be used during Procedure 1 ACM removal activities: 1403 -11 '~ ` Rule 1403 (Cont.) (Amended April 8,1994) (I) All stationary objects and surfaces not intended for removal or stripping of ACM shall be covered with plastic sheeting; (II) All air passageways, such as doors, windows, vents and registers in the work area, shall be covered and rendered air tight with plastic sheeting or hard wooden barn—ers with studded support. Air passageways used to provide makeup air for the isolated work space need not be covered; (III) All sources of air movement, including the air -handling system, shall be shut off or temporarily modified to restrict air movement into the work zone; (IV) The barriers used for the construction of the isolated work area shall be equipped with transparent viewing ports which allow outside observation of all stripping and removal of ACM; (V) The isolated work area shall be vented, with negative air pressure to a HEPA filtration system, which shall be operated continuously from the commencement of removal activities through the final clean-up of the work area; (VI) The HEPA filter shall be free of tears, fractures, holes or other types of damage and shall be securely latched and properly situated in the holding frame to prevent air leakage from the filtration system; and (VII) ACM shall be adequately wet during the removal process. (ii) Procedure 2 - Glovebag Remove by the glovebag method or minienclosures designed and operated according to 29 CFR Section 1926.58, Appendix G, and current Cal/OSHA requirements. (iii) Procedure 3 - Adequate Wetting Remove ACM using the following techniques: 1403 -12 ' Rule 1403 (Cont.) (Amended April 8,1994) (I) All exposed ACM shall be adequately wet during cutting or dismantling procedures. (II) ACM shall be adequately wet while it is being removed from facility components and prior to its removal from the facility. (III) Drop cloths and tenting shall be used to contain the work area to the extent feasible. (iv) Procedure 4 - Dry Removal Obtain written approval from the Executive Officer's designee prior to using dry removal methods for the control of asbestos emissions when adequate wetting procedures in the renovation work area would unavoidably damage equipment or present a safety hazard. Dry removal methods may include one or more of the following: (I) Use of a HEPA filtration system, operated in accordance with clause (d)(1)(D)(i), within an isolated work area; (II) Use of a glovebag system, operated in accordance with clause (d)(1)(D)(ii); or (III) Use of leak -tight wrapping or an approved alternative, to contain all ACM removed in units or sections prior to dismantlement. (v) Procedure 5 - Approved Alternative Use an alternative combination of techniques and/or engineering controls. Written approval from the Executive Officer or his designee shall be obtained prior to the use of Procedure 5 ACM removal activities. (E) Handling Operations All ACWM shall be collected and placed in leak -tight containers or wrapping. Such containers or wrappings shall be transparent no later than August 12, 1994. The following techniques shall be used: (i) ACM shall be carefully lowered to the ground or a lower floor without dropping, throwing, sliding, or otherwise damaging or disturbing the ACM; 1403 -13 0 ! ' Rule 1403 (Cont.) (Amended April 8,1994) (ii) ACM which has been removed or stripped more than 50 feet above ground level and was not removed as units or in sections shall be transported to the ground via leak -tight chutes or containers; (iii) ACWM shall be collected and sealed in leak -tight containers. ACWM shall be adequately wet prior to and during collection and packaging. Alternatively, areas of Class I nonfriable asbestos -containing material which have become friable or have been subjected to sanding, grinding, cutting, or abrading, may be sealed via encapsulation; and (iv) All surfaces in the isolated work area shall be cleaned, with a vacuum system utilizing HEPA filtration, wet mopping and wipe down with water, or by an equivalent methods, prior to the dismantling of plastic barriers or sealed openings within the work area. (F) Freezing Temperature Conditions When the temperature at the point of wetting is below OoC (320F), the wetting provisions of subparagraph (d)(1)(D) or (d)(1)(F) shall be superseded by the following requirements: (i) Facility components containing, coated with, or covered with ACM shall be removed as units or in sections to the maximum extent possible; and (ii) The temperature in the area containing the facility components shall be recorded at the beginning, middle, and end of each workday during periods when wetting operations are suspended due to freezing temperatures. Daily temperature records shall be available for inspection by the District during normal business hours at the demolition or renovation site. Records shall be retained for at least 2 years. (G) On -Site Representative At least one on -site representative, such as a foreman, manager, or other authorized representative, trained in accordance with the provisions of paragraphs (i)(1) and (i)(3), shall be present during the stripping, removing, handling, or disturbing of ACM. Evidence that 1403 -14 0 • ' - Rule 1403 (Cont.) (Amended April 8,1994) the required training has been completed shall be posted at the demolition or renovation site and made available for inspection by the Executive Officer's designee. (H) On -Site Proof On -site proof of the following shall be provided upon request: (i) California State Contractor's License certification number; and (ii) Cal/OSHA Registration number. Proof shall be consistent with the most recently updated information submitted in the notification. (I) On -Site Storage On -site storage of leak -tight containers shall be maintained within an enclosed storage area prior to transportation. Contents of the storage containers shall not be accessible to the general public and shall be locked when not in use. (J) Disposal All ACWM shall be disposed of at a waste disposal site that is operated in accordance with paragraph (d)(3) of this rule. (K) Container Labelling Leak -tight containers which contain ACWM shall be labelled as specified in subdivision (e). (L) Transportation Vehicle Marking Vehicles used to transport ACWM shall be marked, as specified in subdivision (e), during the loading and unloading of ACWM. (M) Waste Shipment Records Waste Shipment Records shall be prepared and handled in accordance with the provisions of paragraph (f)(1). (l) Recordkeeping Records shall be kept as specified in subdivision (g). (2) ACWM Storage Facilities The owner or operator of any ACWM storage facility shall comply with the following requirements: 1403 -15 " Rule 1403 (Cont.) (A) (i) (iii) (Amended April 8,1994) Maintenance and Handling ACWM shall be stored in leak -tight containers; All leak -tight containers shall be labelled as specified in paragraph (e)(1); and ACWM shall be stored in an enclosed locked area. (B) Transportation Vehicle Marking Vehicles used to transport ACWM shall be marked, as specified in paragraph (e)(3), during the loading and unloading of ACWM. (C) Waste Shipment Records Waste Shipment Records shall be handled in accordance with the provisions of paragraph (1)(2). (D) Recordkeeping Records shall be maintained as specified in paragraph (g)(2). (3) Active Waste Disposal Sites The owner or operator of any waste disposal site where ACWM is being deposited shall comply with the following requirements: (A) Maintenance and Handling (i) ACWM shall be in leak -tight containers; (ii) Warning signs, as specified in paragraph (e)(2), shall be displayed at all entrances and at intervals of 330 feet or less along the property line of the site or along the perimeter of the sections of the site where ACWM is being deposited; (iii) Access to the general public shall be deterred by maintaining a fence along the perimeter of the site or by using a natural barrier; (iv) All ACWM shall be maintained in a separate disposal section; (v) ACWM deposited at the site shall be covered with at least six (6) inches of nonasbestos-containing material at the end of normal business hours. The waste shall be compacted only after it has been completely covered with nonasbestos-containing material. A low pressure water spray or nontoxic dust suppressing chemical shall be used for any surface wetting after compaction; and 1403 -16 a. • • '' Rule 1403 (Cont.) (Amended April 8,1994) (vi) ACWM shall be covered with a minimum of an additional thirty (30) inches of compacted nonasbestos-containing material prior to final closure of the waste disposal site, and shall be maintained to prevent exposure of the ACWM. (B) Transportation Vehicle Marking Vehicles used to transport ACWM shall be marked, as specified in paragraph (e)(3), during the loading and unloading of ACWM. (C) Waste Shipment Records Waste Shipment Records shall be handled in accordance with the provisions of paragraph (f)(2). (D) Recordkeeping Records shall be maintained as specified in paragraph (g)(3). (e) Warning Labels, Signs, and Markings Warning labels, signs, and markings used to identify asbestos -related health hazards shall comply with the following requirements: (1) Leak -Tight Containers Leak -tight containers shall be labelled according to the following requirements: (A) Warning labels for leak -tight containers and wrapping shall have letters of sufficient size and contrast as to be readily visible and legible, and shall contain the following information, or as specified by Occupational Safety and Health Standards of the Department of Labor, Occupational Safety and Health Administration (OSHA) under 29 CPR 1910.10010)(2) or 1926.58(k)(2)(iii), or current Cal/OSHA requirements: 1403 -17 Rule 1403 (Cont.) (Amended April 8,1994) CAUTION Contains Asbestos Fibers Avoid Opening or Breaking Container Breathing Asbestos is Hazardous to Your Health or DANGER CONTAINS ASBESTOS FIBERS AVOID CREATING DUST CANCER AND LUNG DISEASE HAZARD (B) Leak -tight containers that are transported off -site shall be labeled with the name of the waste generator and the location at which the waste was generated. (2) Active Waste Disposal Sites Warning signs for active waste disposal sites shall: (A) Be displayed in such a manner and location that a person can easily read the legend; (B) Conform to the requirements for 51 cm x 36 cm (20 inch x 14 inch) upright format signs specified in 29 CFR 1910.145 (d)(4) and this paragraph; (C) Display the following legend in the lower panel with letter sizes and styles of a visibility at least equal to those specified in this subparagraph: 1403 -18 Rule 1403 (Cont.) (Amended April 8,1994) Legend Notation 2.5 cm (1 inch) Sans Serif, Asbestos Waste Disposal Site Gothic or Block 1.9 cm (3/4 inch) Sans Serif, Do Not Create Dust Gothic or Block Breathin Asbestos is Hazardous to Your Health 1'4 Point Gothic ; and (D) Have spacing between any two lines at least equal to the height of the upper of the two lines. (3) Transportation Vehicles Markings for transportation vehicles shall: (A) Be displayed in such a manner and location that a person can easily read the legend; (B) Conform to the requirements for 51 cm x 36 cm (20 inch x 14 inch) upright format signs specified in 29 CFR 1910.145 (d)(4) and this paragraph; and (C) Display the following legend in the lower panel with letter sizes and Rule 1403 (Cont.) (D (D) (Amended April 8,1994) Have spacing between any two lines at least equal to the height of the upper of the two lines. Waste Shipment Records Waste Shipment Records shall be prepared and handled in accordance with the following: (1) Waste Generators A waste generator shall comply with the following: (A) Waste shipment information shall include, but not be limited to, the following: (i) The name, address, and telephone number of the waste generator; (ii) The name, address, and telephone number of the South Coast Air Quality Management District; (iii) The quantity of ACWM in cubic meters or cubic yards; (iv) The name and telephone number of the disposal site owner and operator; (v) The name and physical site location of the disposal site; (vi) The date transported; (vii) The name, address, and telephone number of the transporter; and (viii) A signed certification that the contents of this consignment are fully and accurately described by proper shipping name and are classified, packed, marked, and labeled, and in proper condition for highway transport according to applicable federal, state, and local regulations. (B) A copy of the Waste Shipment Record shall be provided to the disposal site owner or operator at the same time the ACWM is delivered to the disposal site. (C) If a copy of the Waste Shipment Record, signed by the owner or operator of the designated disposal site, is not received within 35 days of the date the ACWM was accepted by the initial transporter, the transporter and/or the owner or operator of the designated disposal site shall be contacted to determine the status of the waste shipment. 1403 - 20 d Rule 1403 (Cont.) (Amended April 8,1994) (D) If a copy of the Waste Shipment Record, signed by the owner or operator of the designated disposal site, is not received within 45 days of the date the ACWM was accepted by the initial transporter, a written report shall be submitted to the District and shall include the following: (i) A copy of the Waste Shipment Record for which a confirmation of delivery was not received; and (ii) A signed cover letter explaining the efforts taken to locate the ACWM shipment and the results of those efforts. (2) Storage and Active Waste Disposal Facilities The owner or operator of any storage facility or active waste disposal site shall comply with the following requirements: (A) Waste shipment information shall be filled out on the Waste Shipment Record forms provided by the waste generator, for all ACWM received from an off -site facility, and shall include, but not be limited to, the following: (i) The name, address, and telephone number of the waste generator; (ii) The name, address, and telephone number ofthe transporter; (iii) The quantity of ACWM received in cubic meters or cubic yards; and (iv) The date of receipt. (B) No shipment of ACWM shall be received from an off -site facility unless it is accompanied with a Waste Shipment Record signed by the waste generator. (C) If there is a discrepancy between the quantity of ACWM designated in the Waste Shipment Record and the quantity actually received, and if the discrepancy cannot be resolved with the waste generator within 15 days of the date the ACWM was received, a written report shall be filed with the District. The report shall include the following: (i) A copy of the Waste Shipment Record; and (ii) A signed cover letter explaining the discrepancy, and the attempts to reconcile it. (D) If any shipment of ACWM is not properly containerized, wrapped, or encapsulated, a written report shall be filed with the District. The 1403 - 21 I ! 0 Rule 1403 (Cont.) (Amended April 8,1994) report shall be postmarked or delivered within 48 hours after the shipment is received, or the following business day. (E) A signed copy of the Waste Shipment Record shall be provided to the waste generator no later than 30 calendar days after the ACWM is delivered to the disposal site. (g) Recordkeeping The following records shall be maintained for not less than three (3) years and made available to the District upon request: (1) Demolition and Renovation Activities The owner or operator of any demolition or renovation activity shall maintain the following information: (A) A copy of all survey -related documents; (B) A copy of all submitted notifications. A copy of the most recently 5pdated written notification submitted in accordance with the provisions of this rule shall be maintained on -site; (C) A copy of all permits, or written approvals obtained under the requirements of subparagraph (d)(1)(D); (D) A copy of all Waste Shipment Records; (E) All training informational materials used by an owner or operator to train supervisors or workers for the purposes of this rule; and (F) A copy of all supervisors and workers training certificates and any annual reaccreditation records which demonstrate EPA -approved or state accreditation to perform asbestos -related work. (2) Storage Facilities The owner or operator of any storage facility shall maintain a copy of all Waste Shipment Records. (3) Active Waste Disposal Sites The owner or operator of an active waste disposal site shall maintain the following information: (A) A description of the active waste disposal site, including the specific location, depth and area, and quantity, in cubic meters or cubic yards, 1403 - 22 Rule 1403 (Cont.) (Amended April 8,1994) of ACWM within the disposal site on a map or diagram of the disposal area; (B) A description of the methods used to comply with waste disposal requirements; and (C) A copy of all Waste Shipment Records. (4) In lieu of the requirements of paragraph (g)(1), the owner or operator of a renovation activity at any facility, in which less than 100 square feet of surface area of ACM on facility components is removed or stripped, shall maintain the following information: (A) A copy of all survey -related documents; (B) Records containing an estimate of the amount of ACM removed or stripped at each renovation subject to this paragraph; (C) Type of removal controls used for each renovation; and (D) A copy of all Waste Shipment Records. (h) Sampling Protocols and Test Methods (1) Sampling of materials suspected to contain asbestos shall be conducted following the provisions of 40 CFR Part 763.107- (2) Analysis of materials for asbestos shall be determined by using SCAQMD Method 300-91 as detailed in the District's Laboratory Methods of Analysis for Enforcement Samples manual, or by using the Method specified in Appendix A, Subpart F, 40 CFR Part 763, Section 1, Polarized Light Microscopy. Asbestos analyses performed to comply with this rule must be undertaken by laboratories accredited by the National Voluntary Laboratory Accreditation Program (NVLAP). (i) Training Requirements The owner or operator performing the demolition or renovation activity shall provide asbestos -related training as follows: (1) On -site supervisory personnel shall successfully complete the Asbestos Abatement Contractor/Supervisor course pursuant to the Asbestos Hazard Emergency Response Act (AHERA), and obtain and maintain accreditation as an AHERA Asbestos Abatement Contractor/Supervisor. 1403 - 23 Rule 1403 (Cont.) (Amended April 8,1994) (2) Workers shall successfuly complete the Abatement Worker course pursuant to the AHERA. (3) Supervisory personnel and workers shall be trained on the provisions of this rule as well as on the provisions of 40 CFR Part 61.145, 61.146, 61.147 and 61.152 (Asbestos NESHAP provisions) and Part 763, and the means by which to comply with these provisions. 6) Exemptions (1) The notification requirements of subparagraph (d)(1)(13) and the training requirements of subdivision (i) shall not apply to renovation activities, other than planned renovation activities which involve non-scheduled renovation operations, in which less than 100 square feet of surface area of ACM are removed or stripped. (2) The notification requirements of subparagraph (d)(1)(B) and the training requirements of subdivision (i) shall not apply to planned renovation activities which involve non-scheduled renovation operations, in which the total quantity of ACM to be removed or stripped within each calendar year of activity is less than 100 square feet of surface area. (3) Subparagraph (d)(1)(A)(v), (vi) and (vii) and subclause (d)(1)(B)(iii)(VI) shall not apply to the owner or operator of any renovation or demolition activity, when the suspected material is removed, stripped, collected, and handled as ACM and disposed of in accordance with the provisions of this rule. (4) Subclauses (d)(1)(A)(viii), (d)(1)(B)(iii)(H), (d)(1)(B)(iii)(III) and subparagraph (d)(1)(H) requiring proof of Cal/OSHA Registration and California State Contractors license certification shall not apply to persons performing work not subject to the registration requirements under the Labor Code, Section 6501.5 and Section 9021.5, and Business and Professions Code, Section 7058.5, respectively. (5) The provisions of subparagraph (1)(2)(E) shall not apply to storage facilities that do not meet the definition of an active waste disposal site as defined by paragraph ©(1). (6) The handling requirements of subclause (d)(1)(D)(i)(II), (d)(1)(D)(i)(V), and (d)(1)(D)(i)(VI), the training requirements of paragraph (i)(1) and (i)(2), the reporting of training certificate requirement of subclause (d)(1)(B)(iii)(VII), 1403 - 24 �+. Rule 1403 (Cont.) (Amended April 8,1994) and the on -site proof of training requirement of subparagraph (d)(1)(G) and subdivision (i) shall not apply to the exclusive removal of asbestos -containing packings, gaskets, resilient floor covering and asphalt roofing products which are not friable, have not become friable, and have not been subjected to sanding, grinding, cutting, or abrading. (7) The provisions of this rule shall not apply to an owner -occupant of a residential single -unit dwelling who conducts a renovation activity at that dwelling. (8) The survey requirements of subparagraph (d)(1)(A) shall not apply to renovation activities of residential single -unit dwellings in which less than 100 square feet of surface area of ACM are removed or stripped. • • Aj'(MLAVt 19,%3c CG INSTRUCTIONS FOR THE ASBESTOS - DEMOLITION NOTIFICATION FORM COMPLETED BY: Type the company business name and DBA (if any), name and phone number of the person completing the notification form, the date, check number, fee amount, and the contractor's project number (if any). NOTIFICATION TYPE: Circle ORIGINAL for first time notification. Circle REVISION DATES to change the start or end removal and project schedule dates. Circle REVISION OTHER to change any other information in the notification. Revision -of site location requires a new notification. Circle CANCELLATION to cancel a prior notification. PROJECT TYPE: Circle a project description. For annual notifications and progress reports circle PLANNED RENOVATIONS. SITE INFORMATION: Provide detailed information about the facility site and/or building(s) where the asbestos removal or demolition is to occur, including a cross street. DESCRIBE WORK AND LOCATION by providing the specific work and areas within the facility or building. Examples: remove VAT from main lobby, demo Monroe Hall, remove mastic from kitchen of Bldg. #2, PRESENT AND PRIOR USE: Circle the present and prior use of the facility. For condominiums and apartments circle Public Bldg. For rental property circle Commercial. Circle House only for single family homes. SITE OWNER: Name and address of the site legal owner, and name and telephone number of owner or contact person for owner. REQUIRED BUILDING INFORMATION: Circle a YES or NO answer for each question, Asbestos Surveys are required prior to renovation and demolition. Asbestos must be removed prior to activities that may disturb it and/or prior to ALL demolitions. PROJECT DATES: The actual start and end dates and work shifts of the Asbestos Removal or Demolition project. This includes set-up and clean-up. Changes of Renovation or Demolition project dates require a Revision Notification. * ASBESTOS AMOUNT TO BE REMOVED: Enter the amount (in square feet) in the boxes labeled Friable, Class I, and Class II, and add the row to calculate the TOTAL REMOVED. Fee varies according to the total asbestos amount to be removed. To convert linear feet to square feet multiply the factor 3.14 times the pipe diameter times the pipe length, all in feet. *ASBESTOS REMOVED FROM: Circle surfaces, pipes or components to indicate from where the asbestos to be removed. *DESCRIBE TYPE & AMOUNT OF ASBESTOS: Enter the amount(s) under each type of material(s) to be removed. e • • 10ONTRACTOR INFORMATION: Name and DBA (if any). Company physical address (No Post Office Boxes). Notifications should be filled and submitted by the contractor performing the actual removal or demolition. Provide your California Contractor State License Board (CSLB), Cal/OSHA Registration, and AQMD identification numbers. CSLB Abatement License and OSHA Registration are required to perform asbestos removal. The AQMD identification number can be found in the contractor's District permits or invoices. For your convenience mail your notification and do not hand carry to AQMD because there is no designated staff to receive it. Mailing saves you valuable time, money for gasoline, wear and tear on your car, and reduces traffic and air pollution. *WASTE TRANSPORTS: Name the companies transporting the asbestos waste to a landfill or any off -site storage. LANDFILL: Name and address of the landfill where the waste will be sent. This includes demolition construction waste. *WASTE STORAGE SITE For contractors that store asbestos at their company site before sending it to a landfill, provide the interim site storage information. *CONTROLS: Enter the Rule 1403 Procedure Number (1, 2, 3, 4, or 5) or describe the asbestos work practices and engineering controls. Procedure i is required for removing friables (i.e., acoustic, linoleum, stucco, etc.) Procedure 2 is for small-scale, short duration jobs. Procedure 3 is for manual removal methods. Procedures 4 and 5 require PRIOR written AQMD approval. *ASBESTOS DETECTION PROCEDURES: Describe the methods and procedures used to determine whether asbestos is present at the facility, including a description of the analytical methods used. For DEMOLITIONS state when and who removed the asbestos. Demolitions require proof of prior asbestos survey and removal. ORDERED DEMOLITIONS require a copy of the government agency legal notice ordering the demolition. Ordered demolitions require proof of prior asbestos survey, removal, and disposal; and/or prior written approval from AQMD. See Procedure 5 Plan. *EMERGENCY REMOVAL: Give name and phone number of the person authorizing the emergency, and explain reasons. CONTINGENCY PLAN: List actions to be followed if unexpected asbestos is found or nonfriable asbestos is rendered friable. TRAINING AND INFORMATION CERTIFICATION: Use a "wet" or stamp signature to confirm that your company provided the required asbestos and regulatory training to the persons at the work site, and that the information given in the notification form is complete and accurate. Notifications must be signed by.the contractor doing the work, or its authorized company representative. KEEP A COPY OF YOUR NOTIFICATION. STATE LAW REQUIRES THAT YOU PROVIDE A COPY OF THE DEMOLITION NOTIFICATION TO BUILDING AND SAFETY BEFORE ISSUANCE OF A DEMOLITION PERMIT. ' _ SOT COAST AIR QUALITY MANAGEMENT DISTRICT NOTIFICATION OF DEMOLITION OR ASBESTOS REMOVAL 21865 E. Copley Drive, Diamond Bar, CA 91765-4182 (909) 396-2000 MAIL FORM AND FEE TO SCAQMD, ASBESTOS NOTIFICATIONS, FILE # 55641, LOS ANGELES CA 90074.5641 AQMD USE ONLY SCREEN BY RECEIVED POSTMARK ENTERED BY NOTIFICATION # COMPLETED BY COMPANY PHONE DATE CHECK# FEE$ PROJECT# NOTIFICATION TYPE ORIGINAL REVISION DATES REVISION OTHER (highlight) CANCELLATION PROJECTTYPE DEMOLITION ORDERED DEMOLITION RENOVATION (removal) EMERGENCY REMOVAL PLANNED RENO(annual) SITE INFORMATION SITE NAME SITE ADDRESS CROSS STREET CITY STATE ZIP COUNTY DESCRIBE WORK AND LOCATION BUILDING SIZE (SO FT) NUMBER OF FLOORS BUILDING AGE (YEARS) NUMBER OF DWELLING UNITS BLDG PRIOR I PRESENT USE COMMERCIAL HOSPITAL INDUSTRIAL Other OFFICE PUBLICBLDG. HOUSE SCHOOL SHIP UNIVICOLLEGE SITE OWNER ADDRESS CITY STATE ZIP CONTACT PHONE REQUIRED BUILDING INFORMATION ASBESTOS PRESENT? YES NO ASBESTOS YES NO SURVEY? * ASBESTOS REMOVED? YES NO BUILDING TO BE YES NO DEMOLISHED? PROJECT DATES START END WORK SHIFT (day, swing, night) ASBESTOS AMOUNT TO BE REMOVED (in square feet) FRIABLE CLASS I CLASS II TOTAL AMOUNT (add row) ASBESTOS REMOVAL FROM SURFACES PIPES COMPONENTS AMOUNT OF EACH TYPE OF ACOUSTIC CEILING I LINOLEUM I INSULATION I FIRE PROOFING I DUCTING STUCCO MASTIC ASBESTOS (in square feet) FLOOR TILES (VAT) DRYWALL PLASTER TRANSITE I ROOFING I OTHER (describe) CONTRACTOR INFORMATION I CSLB LICENSE # OSHA REG # AQMD ID # NAME ADDRESS CITY STATE ZIP SITE SUPVR PHONE WASTE TRANSPORTER #1 LANDFILL ADDRESS ADDRESS CITY STATE ZIP CITY STATE ZIP * Asbestos surveys are required pdorto Demolition and Renovation Forms, instructions, and the Rule 1403 can be obtained from AQMD web site http://www.agmd.gov Page 1 of 2 Form REV 200610 Owe > SCAQMD NOTIFICATION OF DEMOLITION OR ASBESTOS REMOVAL MAIL ORIGINAL TO SCAQMD, ASBESTOS NOTIFICATIONS, FILE # 55641, LOS ANGELES CA 90074-5641 WASTE TRANSPORTER #2 WASTE STORAGE SITE ADDRESS ADDRESS CITY STATE ZIP CITY STATE ZIP CONTROLS: DESCRIBE WORK PRACTICES AND CONTROLS TO BE USED AT THE RENOVATION AND DEMOLITION SITE. Procedure # 1, 2, 3, 4, 5 or Other. For,asbeslos removals circle the combination of Rule 1403 procedures used. Procedure 4 and 5 submit plans for AQMD prior approval. ASBESTOS DETECTION PROCEDURE: CIRCLE THE PROCEDURES AND ANALYTICAL METHODS USED TO DETERMINE ASBESTOS IN THE BUILDING: Bulk Sampling, Inspection, Survey, PLM, PCM, TEM, Assumed as Asbestos, Describe Other: FOR DEMOLITIONS GIVE THE COMPANY NAME AND DATES OF THE ASBESTOS REMOVAL: FOR ORDERED DEMOLITION SEND A COPY OF THE ORDER AND GIVE THE AGENCY NAME & PHONE # AUTHORIZING PERSON: TITLE DATE OF ORDER: DATE ORDERED TO BEGIN: FOR EMERGENCY ASBESTOS REMOVAL GIVE THE NAME AND PHONE NUMBER OF THE PERSON DECLARING/AUTHORIZINGTHE EMERGENCY, DATE AND HOUR OF EMERGENCY AND DESCRIBE THE SUDDEN, UNEXPECTED EVENT: EXPLAIN HOW THE EVENT WOULD CAUSE UNSAFE CONDITIONS, EQUIPMENT DAMAGE OR UNREASONABLE FINANCIAL BURDEN: CONTINGENCY PLAN: DESCRIBE ACTIONS AND PROCEDURES TO BE FOLLOWED IF UNEXPECTED ASBESTOS IS FOUND DURING DEMOLITION OR NONFRIABLE ASBESTOS MATERIAL BECOME CRUMBLED, PULVERIZED, OR REDUCED TO POWDER. TRAINING CERTIFICATION: I certify that an Individual trained In the provisions of regulation AQMD Rule 1403 and NESHAP will be on site during the removal and evidence that the required training has been accomplished by this person will be available for inspection during normal business hours. Company Name Print name of owner/operator Signature of ownerloperator Tittle of owner/operator Date INFORMATION CERTIFICATION: I certify that the above information is correct and I have enclosed any required attachments. Company Name Print name of owner/operator Signature of owner/operator Tittle of owner/operator Date Notifications can not be accepted without the required fee (AQMD Rule 301). Asbestos removals of less than 100 square feet are exempt from notification and fees. Please make checks payable to 'SCAQMD'. Fees are per notification, not refundable, and vary according to the project size. Fees are as follows: DEMOLITION OR ASBESTOS REMOVAL PROCEDURE 4 OR 5 PLAN $ 302.53 $ 25.73 FROM 100 TO 1,000 SQUARE FEET $ 26.96 SPECIAL HANDLING FEE FROM 1,001 TO 5,000 SQUARE FEET $ 82A2 REVISION OF NOTIFICATION $10.91 FROM 5,001 TO 10,000 SQUARE FEET $192.93 RETURNED CHECK CHARGE $ 26.75 $ 0.0 MORE THAN 10,000 SQUARE FEET $302.53 CANCELLATION OF NOTIFICATION DEMOLITION OF LESS THAN 100 SQ FT $ 26.96 RESIDENTIAL ASBESTOS REMOVAL ' $ 26.96 owneroccu led, single -unit dwelling ATTENTION: Keep a copy of your notification. State law requires that you provide a copy of the demolition notification to Building and Safely before issuance of a demolition permit. For questions call 909-396.2336. For your convenience please mail the form and fee and do not hand carry to AQMD. MAIL FORM AND FEE TO: SCAQMD, ASBESTOS NOTIFICATIONS, FILE # 55641, LOS ANGELES CA 90074.5641 TELEPHONE: (909) 396.2336 FAX: (909) 396.3342 . Form REV 200610 Page 2 of 2 FORMS, INSTRUCTIONS, AND THE RULE 1403 CAN BE OBTAINED FROM AQMD WEB SITE AT HTTP:IIWWW.AQMD.GOV CITY OF NEWPORT BEACH July 31, 2000 Ms. June S. Miller 2724 Bottlebrush Drive Los Angeles, CA 90077 Dear Ms. Miller: As you are aware, the City of Newport Beach recently provided a 2-year Lease Extension ("Extension') to the current residents ("Lessees") of the Marinapark Mobile Home Park ("Park"). As a part of the City's discussions with the Lessees regarding the Extension, the City agreed to credit certain Lessees' rental obligations in amounts equal to transfer fees (plus accumulated interest estimated at 6% per annum) paid by the Lessees as a part of their residential purchase at the Park. At least seven individuals so far - including yourself -- who no longer reside at the Park have asked for a direct cash refund of their transfer fees. I have asked the City Attorneys Office to assist me in determining whether such a refund is an appropriate use of public funds given that these refunds would not be provided as a part of the Lease Extension discussions and not as a credit against future rent payments. The City Attorney's initial determination is that -- because no claim was filed within any applicable limitations period — such a refund is likely to be prohibited per the California Constitution's ban on gifts of public funds (Article XVI, Section 6). As such, the City is unable to offer a refund to you for any transfer fee not paid by a current Lessee who has agreed to sign the Lease Extension. I know that this will be disappointing news to you, but the City Attorney and I believe it to appropriately reflect the City's,obligation to follow the California Constitution. Please feel free to contact me with any questions about this determination (949-644-3002). Sincerely, Cit �r F DA A.ICIFF D Deputy City Manager cc: Members of the Newport Beach City Council Homer Bludau, City Manager Robin Clauson, Assistant City Attorney Bill Mecham, Bendetti Property Management City Hall 9 3300 Newport Boulevard • Newport Beach, California 92663-3884 u �! o Mr. Henry C. Casden Anderholt, Bonnheim & Casden LLP 45-200 Club Drive, Suite A Indian Wells, CA 92210-8860 Dear Mr. Casden: CITY OF NEWPORT BEACH July 31, 2000 As you are aware, the City of Newport Beach recently provided a 2-year Lease Extension ("Extension") to the current residents ("Lessees") of the Marinapark Mobile Home Park ("Park"). As a part of the City's discussions with the Lessees regarding the Extension, the City agreed to credit certain Lessees' rental obligations in amounts equal to transfer fees (plus accumulated interest estimated at 6 % per annum) paid by the Lessees as a part of their residential purchase at the Park. At least seven individuals so far - including yourself -- who no longer reside at the Park have asked for a direct cash refund of their transfer fees. I have asked the City Attorneys Office to assist me in determining whether such a refund is an appropriate use of public funds given that these refunds would not be provided as a part of the Lease Extension discussions and not as a credit against future rent payments. The City Attorneys initial determination is that — because no claim was filed within any applicable limitations period — such a refund is likely to be prohibited per the California Constitutions ban on gifts of public funds (Article XVI, Section 6). As such, the City is unable to offer a refund to you for any transfer fee not paid by a current Lessee who has agreed to sign the Lease Extension. I know that this will be disappointing news to you, but the City Attorney and I believe it to appropriately reflect the City's obligation to follow the California Constitution. Please feel free to contact me with any questions about this determination (949-644-3002). Sincerely, t�"J, G V DAVID A. KIFF Deputy City Manager cc: Members of the Newport Beach City Council Homer Bludau, City Manager Robin Clauson, Assistant City Attorney Bill Mecham, Bendetti Property Management City Hall • 3300 Newport Boulevard • Newport Beach, California 92663-3884 CITY OF NEWPORT BEACH July 31, 2000 Mr. & Mrs. Allen Jacobs 10750 Wilshire Blvd., #1003 Los Angeles, CA 90024-4477 Dear Mr. & Mrs. Jacobs: As you are aware, the City of Newport Beach recently provided a 2-year Lease Extension ("Extension') to the current residents ("Lessees') of the Marinapark Mobile Home Park ("Park"). As a part of the Citys discussions with the Lessees regarding the Extension, the City agreed to credit certain Lessees' rental obligations in amounts equal to transfer fees (plus accumulated interest estimated at 6 % per annum) paid by the Lessees as a part of their residential purchase at the Park. At least seven individuals so far - including yourself -- who no longer reside at the Park have asked for a direct cash refund of their transfer fees. I have asked the City Attorney's Office to assist me in determining whether such a refund is an appropriate use of public funds given that these refunds would not be provided as a part of the Lease Extension discussions and not as a credit against future rent payments. The City Attorney's initial determination is that -- because no claim was filed within any applicable limitations period — such a refund is likely to be prohibited per the California Constitution's ban on gifts of public funds (Article XVI, Section 6). As such, the City is unable to offer a refund to you for any transfer fee not paid by a current Lessee who has agreed to sign the Lease Extension. I know that this will be disappointing news to you, but the City Attorney and I believe it to appropriately reflect the City's obligation to follow the California Constitution. Please feel free to contact me with any questions about this determination (949-644-3002). Sincerely, (r,. ll� DAVID A. IQFF Deputy City Manager cc: Members of the Newport Beach City Council Homer Bludau, City Manager Robin Clauson, Assistant City Attorney Bill Mechem, Bendetti Property Management City Hall • 3300 Newport Boulevard 9 Newport Beach, California 92663-3884 i 0 Ve PW,w-v>�- u 0 oa Mr. & Mrs. Robert D. Spurgeon 73-106 Ajo Lane Palm Desert, CA 92260 Dear Mr. & Mrs. Spurgeon: CITY OF NEWPORT BEACH July 31, 2000 As you are aware, the City of Newport Beach recently provided a 2-year Lease Extension ("Extension') to the current residents ("Lessees") of the Marinapark Mobile Home Park ("Park"). As a part of the City�s discussions with the Lessees regarding the Extension, the City agreed to credit certain Lessees' rental obligations in amounts equal to transfer fees (plus accumulated interest estimated at 6% per annum) paid by the Lessees as a part of their residential purchase at the Park, At least seven individuals so far - including yourself — who no longer reside at the Park have asked for a direct cash refund of their transfer fees. I have asked the City Attorney's Office to assist me in determining whether such a refund is an appropriate use of public funds given that these refunds would not be provided as a part of the Lease Extension discussions and not as a credit against future rent payments. The City Attorney's initial determination is that— because no claim was filed within any applicable limitations period -- such a refund is likely to be prohibited per the California Constitutions ban on gifts of public funds (Article XVI, Section 6). As such, the City is unable to offer a refund to you for any transfer fee not paid by a current Lessee who has agreed to sign the Lease Extension. I know that this will be disappointing news to you, but the City Attorney and I believe it to appropriately reflect the City's obligation to follow the California Constitution. Please feel free to contact me with any questions about this determination (949-644-3002). Sincerely, rlal— V-/�\ DAVID A. KIFF Deputy City Manager cc: Members of the Newport Beach City Council Homer Bludau, City Manager Robin Clauson, Assistant City Attorney Bill Mecham, Bendetti Property Management ITL T.I 6. b+zrp,� ��4 wk\� taw- zyo k A%;.w — 9. j l%i V"Ov 6,00A 1^uwS V U keLiow OW/ f vK.a±�L cav K"4. City Hall • 3300 Newport Boulevard • Newport Beach, California 92663-3884 • ktu: CITY OF NEWPORT BEACH July 31, 2000 Mr. Leon Benveniste 10128 Rossbury Place Los Angeles, CA 90064 Dear Mr. Benveniste: As you are aware, the City of Newport Beach recently provided a 2-year Lease Extension ("Extension") to the current residents ("Lessees') of the Marinapark Mobile Home Park ("Park"). As a part of the City's discussions with the Lessees regarding the Extension, the City agreed to credit certain Lessees' rental obligations in amounts equal to transfer fees (plus accumulated interest estimated at 6% per annum) paid by the Lessees as a part of their residential purchase at the Park. At least seven individuals so far - including yourself -- who no longer reside at the Park have asked for a direct cash refund of their transfer fees. I have asked the City Attorney's Office to assist me in determining whether such a refund is an appropriate use of public funds given that these refunds would not be provided as a part of the Lease Extension discussions and not as a credit against future rent payments. The City Attorney's initial determination is that — because no claim was filed within any applicable limitations period — such a refund is likely to be prohibited per the California Constitutions ban on gifts of public funds (Article XVI, Section 6). As such, the City is unable to offer a refund to you for any transfer fee not paid by a current Lessee who has agreed to sign the Lease Extension. I know that this will be disappointing news to you, but the City Attorney and I believe it to appropriately reflect the City's obligation to follow the California Constitution. Please feel free to contact me with any questions about this determination (949-644-3002). Sincerely, `� \VN DAVID A. KIFF Deputy City Manager cc: Members of the Newport Beach City Council Homer Bludau, City Manager Robin Clauson, Assistant City Attorney Bill Mecham, Bendetti Property Management City Hall • 3300 Newport Boulevard • Newport Beach, California 92663-3884 G RAYCA RY• 401 B Street, Suite 1700 San Diego, CA 92101-4297 Office: 619.699-2874 Fax: 619-236-1048 Cell: 619.890-2874 Pager: 619-338-3515 Email: cblack@graycary.com wvvw.graycary.com Charles E. Black Admitted to practice In California Our File No. 105696-111111 July 26, 2000 Robert Burnham, Esq. City Attorney City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Re: Marina Park Reuse Plan Dear Mr. Burnham: We have been asked by our client, RHC Communities, to comment on the City's consideration of the future use and development of Marina Park ("Park"). Our client made this request because of our firm's recent experience in the closure of mobilehome parks in Southern California and our involvement in the litigation resulting from such closures. One example of such a closure is the Treasure Island in Laguna Beach. In that matter, our firm represented the park owner, Treasure Island Associates, in which an affiliate of RHC Communities was a partner. In our experiences with mobilehome park closures, two facts have become clear. First, the obligations imposed on the party proposing the closure to mitigate adverse impacts to the tenants (such as relocation) can be extremely onerous. Second, the statutory framework defining the closure proponent's obligations to tenants is sufficiently vague that litigation is guaranteed. THE CITY'S ONEROUS OBLIGATIONS UNDER SECTION 65863.7 OF THE CALIFORNIA GOVERNMENT CODE Section 65863.7, subdivision (a) of the California Government Code provides in relevant part: Prior to conversion of a mobilehome park to another use ... or prior to closure of a mobilehome park or cessation of use of the land as a mobilehome park, the person or entity proposing the change in use shall file a report on the impact of the SILICON VALLEY SAN DIEGO SAN DIEGO/GOLDEN TRIANGLE SAN FRANCISCO AUSTIN SEATTLE SACRAMENTO LAJOLLA Gray Cary Ware & Frei�nrich U.P • Robert Burnham, Esq. July 25, 2000 Page 2 conversion, closure, or cessation of use upon the displaced residents of the mobilehome park to be converted or closed. In determining the impact of the conversion, closure or cessation of use on displaced mobilehome park residents, the report shall address the availability of adequate replacement housing in mobilehome parks and relocation costs. (Gov't Code, § 65863.7(a).) (Italics added.) Under Section 65863.7, subdivision (i), if the "closure, cessation, or change of use is the result of a decision by a local governmental entity or planning agency not to renew a conditional use permit ... under which the mobilehome park has operated[,] ... the local governmental agency is the person proposing the change in use." (Gov't Code, § 65863.7(i).) The City, therefore, would be the responsible party for purposes of preparing the impact report required by Section 65863.7, subdivision (a) and undertaking measures to mitigate the adverse impact of the change as may be required under Section 68863.7, subdivision (e). b. Reasonable Costs of Relocation The mitigation measures required to be taken by the City under Section 65863.7, subdivision (e) are to be measured against the reasonable costs of relocation to find adequate housing in.a mobilehome park for the displaced residents. (Gov't Code, § 65863.7(e).) Such reasonable costs of relocation present a potentially burdensome financial obligation on the City should it decide to close the Park. The meaning of reasonable costs of relocation was explored in depth in the litigation resulting from the closure of Treasure Island. In that case, the relocation impact report disclosed that there were few, if any, spaces available in comparable parks (defined as coastal parks in Southern California). Thus, the preparer of the relocation impact report concluded that "reasonable costs of relocation" would include the physical relocation of a mobilehome coach to another park if a space is available, or if no space is available, the acquisition cost of a comparable replacement coach and appurtenant structures in a comparable park. The relocation impact report sampled the in -place acquisition cost of coaches in comparable parks and, as a result of that sampling calculated the "reasonable costs of relocation" for Treasure Island tenants at approximately $125,000 on an average per coach basis. The Laguna Beach City Council initially approved the recommendations of the relocation impact report in spite of the owners' contention that "reasonable costs of relocation" should be limited to the costs of physically relocating a coach to a comparable park. The difference of opinions manifested itself in dozens of lawsuits, cross actions and appeals which nearly took 4 years to be resolved and more than two years of lost rent. The primary lawsuit dealing with "reasonable costs of relocation" Section 65863.7 was Treasure Island v City of Laguna Beach (Sup. Ct. Orange County, 1994, No. 727255). The trial court determined that the reasonable cost of relocation legitimately included relocation benefits to cover either (1) the relocation of the coach and appurtenant structures and improvements to a relocation park selected by the coach owner or to a mutually agreeable park, all at the expense of the park owner, (ii) the acquisition of a comparable replacement coach and appurtenant structures and improvements located or to be located in a relocation park selected by the coach owner or to a mutually agreeable park, all at the expense of the park owner, or (111) the payment of relocation ' Gray Cary Ware & FrelarIch LLP • Robert Burnham, Esq. July 25, 2000 Page 3 benefits based on the amount corresponding to the cost of acquisition of a comparable replacement coach located or to be located in a relocation park selected by the coach owner or in a mutually agreeable park and the cost of relocating the coach owner, all at the expense of the.park owner. In total, the relocation benefits amounted to approximately $23 million. In light of the example set by Treasure Island and depending on the number of residents currently residing in the Park, reasonable costs of relocation can amount to an oppressive financial liability, presenting a tremendous financial blow to the City's taxpayers. 2. THE CITY'S ADDITIONAL OBLIGATIONS UNDER SECTION 65590 OF THE CALIFORNIA GOVERNMENT CODE Because the Park is in a coastal zone, Section 65590 of the California Government Code imposes additional obligations on the City should it decide to close the Park. Under Section 65590, for persons and families of low or moderate income who are consequently deprived of their coach housing due to the Park closure, the City will be required to either (1) construct replacement housing on the subject property, or (ii) construct replacement housing within three (3) miles of the coastal zone. Such replacement housing must also be available within three (3) years of the date upon which work commenced on the conversion or demolition of their coach housing. (Gov't Code, § 66590.) The City's obligations under Section 65590 present an additional financial onus to be borne by the City's taxpayers. 3. CEQA REQUIREMENTS Under the California Environmental Quality Act ("CEQA"), an Environmental Impact Report ("EIR") must be prepared if a proposed project may have a significant effect on the environment. (Pub. Res. Code, § 21100(b)(1).) A significant effect on the environment can include effects of a proposed project that "will cause substantial adverse effects on human beings, either directly or indirectly." (Pub. Res. Code, § 15065.) An example of such substantial adverse effects on human beings can be found in the case of Friends of "B" Street v Ci!y of Hayward (1980) 106 Cal. App. 3d 988. In Friends of "B" Street, the project's displacement of twelve (12) families from their residences formed a basis upon which the court found significant effects on the environment, thereby necessitating the preparation of an EIR. jd at 1003. Here, the potential displacement of an even greater number of families will result in a more substantial adverse effect on human beings for purposes of CEQA. In light of Friends of 3" Street, the closure of the Park will probably require that an EIR be prepared by the City. Our experiences in mobilehome park closure in Laguna Beach are similar to the experiences of the Cities of Huntington Beach and Garden Grove where the cities were required to pay relocation costs of $75,000 per space and $40,000 per space, respectively. Clearly, mobilehome park closure is an alternative that should be approached carefully and only after evaluation of all of the potential costs to the City. Gray Cary Ware & Fref nrich uLP 0 Robert Burnham, Esq. July 25, 2000 Page 4 If you have any questions regarding this letter or the topic of mobilehome park closure, please call at your convenience. Very truly yours, Gray Cary Ware & Freidenrich LLP By: ajj�� C • &" /t- Charles E. Black CEBlbmc Gray Cary1S M75761.1 cc: RHC Communities The Honorable John Noyes, Mayor The Honorable Gary Adams, Mayor ProTem The Honorable Jan Debay, Councilmember The Honorable Norma Glover, Councilmember The Honorable Dennis O'Neil, Councilmember The Honorable Tod Ridgeway, Councilmember The Honorable Tom Thompson, Councilmember Mr. Homer Bludau, City Manager Ms. Sharon Wood, Assistant City Manager Mr. Dave Kiff, Deputy City Manager N • Ficker & Stevens 301 Shipyard Way, Newport Beach, California 92663 949.723,7780 r;i b oo Date July 10, 2000 Copies Sent To: ayor O uncil Member ,1� manager r� 3: � Honorable Members of the City Council P�SrOkt� City of Newport Beach�� — City Hall V Ya ;- 3300 Newport Blvd. p m� "' Newport Beach, CA 92663 == n Dear Ladies and Gentlemen of the Council, As you know, Bill Ficker and I are one of the groups that have made a proposal for the Marina Park Project. We have been working with Sharon Wood who has been very helpful. Unfortunately, the direction that we have taken does not fit your RFP format. I'm taking this opportunity to communicate with you directly because we think the city has a better way to approach this very complicated and important situation. This property is one of the remaining major assets that the City controls so it is very important that it be developed with long-range city needs in mind. Bill and I have been closely involved with Newport Beach for over eighty years, between us, most particularly focused on waterfront property and activities, so we feel that we have a good grasp of what makes this city so great. It is our belief that the entire selection process has one or more major flaws. Essentially what has been done is to say to the business community "Give us your ideas and what you're willing to pay" as the basis for the ultimate selection process. We think this is the wrong way to go about it and urge you to scrap everything to date and start over in a different direction. It is our belief that the city should take the lead and determine what is in the best interest for the community at large instead of reacting to others. Hopefully, the end result will produce substantial revenue, but the plan that you determine to serve Newport best may not produce the same revenues as a Hotel. However, as you well know, we have the mandates of the Coastal Commission, State Lands and others that make community needs more important than revenue in most cases. The present RFP format leads to a determination of the best of the commercial proposals from a few people whereas the broader potential benefits for the use of the property to the community at large is perhaps overlooked. For example: The reality is that most of the marine service businesses in Newport Beach are in jeopardy. This is no secret and it has been slowly eroding our ability to properly service our boating community over a number of years and is changing our community environment, from a water oriented marine residential community to a Jiffy-Lube mentality. The land owners who lease to shipyards and other support facilities that not only serve the boating public but also provide an important element of our harbor environment, will keep disappearing because of increasing environmental concerns and the economic reality that they cannot afford to pay the ground rent that other users will. This will be an unfortunate and tragic loss as they move out one by one. Another example is the proper support for those people who rent the public moorings. In large part, they have never had land side facilities available to them and generally have no place to park their cars, use toilet facilities, do their laundry, etc. This is not a healthy or satisfactory solution. We feel it is incumbent upon the city to change this and in one fashion or another make parking, storage for dinghies, showers, and adequate trash disposal facilities available and mandatory for the occupancy of these moorings. To do all of this obviously requires some land and investment. We feel that this is a typical example of things that the city should be doing with its land. Marina Park is an ideal location to provide support for a large number of the moorings. It is also an ideal location for the creation of a marina service center, including haul -out facilities, space for marine service operations, etc. The Seawall adjacent to the Cannery Restaurant is serving as a City Dock for a number of boating needs but is not a good location and poses problems when barges or large boats come into the Rhine to use it. Marina Park could fill this need. There are numerous other important demands that need to be met. Bill and I feel strongly that the Marina Park property should be utilized for a number of these important activities. We think they are more important to Newport Beach than another Hotel or preservation of a mobile home park serving a small group of people, or any of the other uses currently proposed. What we suggest is that the city cancel the RFP and hire a consultant who can properly evaluate the broader needs and possible uses of this important property. This consultant would work to interview and analyze the ideas and desires of various groups including marine service companies, shipyards, environmentally sensitive groups, and waterfront landowners, including the residential community at large. We think it would be of great value to the council in your deliberations. Upon acceptance of the consultant's report, then you would be in a position to issue a specific RFP or to undertake development yourself and make this property do a multitude of tasks. We are including a very simplistic sketch of one approach that would: A) Preserve the American Legion and the Scouts. B) Provide marine service facilities that can be rented out at reasonable rates C) Preserve the beach. D) Provide support facilities for the mooring users, including parking, dinghy storage, restrooms, etc. E) Provide up to 1100 lineal feet of additional guest slips that would serve visitors to our harbor (a much needed service). F) Provide several attractive restaurant locations to enable local residents as well as visitors to enjoy a truly marine waterfront environment. G) Preclude the need for any dredging or need for additional bulk heading. H) Provide a public recreation area including a relocated children's play area. 1) Protect harbor vistas. J) Preserve the tennis courts. K) Provide parking to meet code. L) Create a public yacht club (a first). M) Provide haul out for boat repair. N) Increase the beach area. We respectfully recommend that the council consider this alternative approach in your deliberations. The multitude of facilities and services cited above are much needed and will serve as a valuable asset for the public. Our belief In this general approach is the reason that we are unable to draw a definitive plan because it is our belief that the right plan will evolve after a consideration of the needs of all of the elements above. The attached sketch is intended to show you how it might work, but could and would change after public input. We urge your consideration of this proposal. Richard S. Stevens William P. Ficker LEGEND IDENTIFICATION 1. American Legion 2. Not a part of this project 3. Public Y.C. and facilities for slips & offshore moorings 4. Dry storage 5. Float and landing for offshore moorings 6. Recreation and play area 7. Scouts - Boy and Girl 8. Tennis Courts-4 Parking Under 9. Retail 10. Restaurant 11. Retail 12. Restaurant 13. Retail 14. Water and beach sports 15. Parking -two story 16. Boatslips - 900 LF 17. Boatslips - 610 LF 18. Shipyard 19. Existing slips Reference Total AREAS PARKING 7,500 50 5,400 35 10 5,000 20 8 7,500 25 5,000 50 2,500 10 6,500 75 7,000 25 4,500 30 15 10 20 10 50,900 SF 393 Note total parking shown = 404 FICKER / STEVENS - CONCEPT PLAN n l L_a --- L4 . L4 H W LA L W i-4 w U H '• - 5 • hh II (j II �7 II j 7 �1 j� it j� 11 �j II , K 0 I 0 50 '00 H LL LL N 2 F- Z W W LL 17 BALBOA BOULEVARD � t JUN. 9.2000 9:52AM PACIFIC RELOCATION 562 495 0889 NO.551 P.1/4 �' ` ' a 47PACIFIC RELOCATION CONSULTANTS r 100 west Broadway, Suite 300, Lang Beach, CA 90802-4432 TEL (562) 590-8564 FAX (562) 495-0889 From: Date: Tme: Pages: NdmeTtle: Agency/Company: Fax Number: &al am • pm (including this page) ,/a- ;Z-00 THIS MESSAGEIS INTENDED ONLYFOR THE USE OFTHE INWIDUALORENTI THAT IS PRMLEGED. CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNC THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THATANY PISSEMI1' STRICTLYPRORISITED. IF YOU HAVE RECENED THIS COMMUNICATION IN I RETURN THE ORIGINAL MESSAGE TO US ATTHEASOVE ADDRESS VIA THE As requested Hard copy to follow Please review and call back For your review/processinglft'le HICH ITMADORESSEO,AND MAY CONTAIN INFORMATION UCABLE LAW, IFTHE REAOFR OF THIS MESSAGE IS NOT DISTRIBUTION OR COPYING OFTHIS COMMUNICATION IS pLEASE NOTIFY Us IMMEDIATELY BY TELEPHONE. AND STATES POSTAL SERVICE THANK YOU. JUN-09-2000 10:14 562 495 0889 98/. P.01 * JUN. 9.2000 9:54AM PACIFIC RELOCATION 562 495 0889 NO.551 P.2/4 i MARINAPARK 1770 W. Balboa Blvd, Newport Beacl , CA 92663 (949) 723-0206 Joe Albano, Manager TO: ALL RESIDENTS FROM: BILL MECHAM Bendetti Management Group DATE: June 5, 2000 SUBJECT: THE CITY IS DOING A RELOCATION STUDY In the ongoing process of making decisions about the future of Marinapark, the City has retained Pacific Relocation Consultants (PRC) to do a Relocation Impact Report. The purpose of this study is to help the City best understand the dollar costs, social impact and other issues related to the potential closure of the Community. Enclosed with this memo is an information sheet from PRC. They are requesting that you fill out the entire form, but they have highlighted several areas that are the most important. You can fill out the form and return it in the enclosed envelope, or you can call Edie Gulrich at (562) 590-8564' extension 211 and complete the form over the phone, or set up an appointment to meet with her. The deadline for completion of the form is June 152 2000, While you are not required to complete this form, the more I information the City has, the most -informed and conscientious they can make.. 'Please feel free to contact me, too, if you'have any questions before you complete the form, My number is (949) 261-61.11 extension 211. I I JUN-09-2000 10:14 562 495 0889 98: P•02 r JUN. 9.2000 v 9:54AM PACIFIC RELOCATION 562 495 0889 • CJ NO.551 P.3/4 PACIFIC RELOCATION CONSULTANTS 100 WEST BROADWAY SUITE 300 LONG BEACH CALIFORNIA 90602.4462 TEL (562) 5904564 FAX (562) 496-0089 OTHER OFFICES. OAMLAND PALM SPRINGS SACRAMENTO SAN DIEGO (000) 400•RELO www.paarelacam Date ➢ June 6, 2000 From > Edie Gulrich, Relocation Specialist To �- Residents of MarinaPark, Newport Beach Subject > Residential Survey Forms Thank you in advance for your attention to this matter. All of the information requested on this form is very important, so for our purposes, please consider the entire form to be highlighted. If you would prefer to give the information over the phone or have me visit you at the park, please call and leave your name and number where you can be reached and I will call you to set up an appointment at a convenient time for both of us. Please contact me at 1-562-590-8564, extension 211. Again thahk you for your time in completing'this Interview Form, the information we compile from these forms will enable the City of Newport Beach to have a more complete picture of the situation and help them, In. their future plans, regarding MarinaPark. JUN-09-2000 10:15 562 495 0889 98% P.03 ` JUN. 9.2000 9:55AM PACIFIC RELOCATION 562 495 0889 0 NO.551 P.414 li'{1lA XNYA I Please check. ✓the circle, or respond 4*wheree it applies to you nr your family Nye; PermanentAddress: Do you consider your Newport Beach Home as your: Local Address: Street: O Permanent residence Space #.', O Second Home Estimated monthly household income (before taxes): City. City' State. Zip: State: Zip: O $5000.00 - $10,000.00 O $10,000.00 - $24,000.00 Telephone: Telephone: O $24,000.00 - $36,000.00 O $36,000,00 - $48,000,00 O $48,000.00 and up The distance from our mobile home to our place of employment is: Number of adults in your home:_ Number of adults over 62 yrs:_ Age of children List Schools: O one mile O five miles O ten miles O over ten miles Number of children in home.- 0 Retired Besides here, where would you like to live?. Number of bedrooms in your Dimensions of Mobile Mobile home: Home: Monthly space rent: $ What is the condition and age of your mobile home: O Excellent O Fair Existing Mortgage? O Yes O No 01 03 Width: 02 0 Four or more Length: O Good O Poor years old. Please list any additional improvements/amenities that have How long have you lived in the park?: been installed at your space (ie. Deck or gazebo): How long have you lived in the Newport Beach Area?: Please list any special needs or disabilities: When would you be available fora personal .interview?: Additional Comments: Please sign, date, and return this survey in the enclosed postage paid return envelope X Date: :II L- We appreciate your time antl cooperation in answering mis survey. ew nuui 1114uurn W1 W� kept confidential, and used to develop a Community Proflle, Thank You[ ::j JUN-09-2000 10:15 562 495 0889 98% P.04 MP t 400 CITY OF NEWPORT BEACH May 26, 2000 Ms. Vickie Talley Talley and Associates, Incorporated 500 North State College Boulevard, Suite 1020 Orange, California 92868 RE: CONSULTANT SERVICES - MARINAPARK RELOCATION IMPACT REPORT Dear M 1T ey: Thank you again for your advice regarding the City's potential closure of the Marinapark Mobilehome Park at 1770 West Balboa Avenue in Newport Beach. I appreciated your insight into the City's potential alternatives regarding the Park. I also appreciate your patience with our decision -making process relating to the selection of a , Relocation Impact Report consultant. My workload often prevents me from spending the time I'd like to spend on projects like Marinapark. As such, I know I need to do a better job communicating about, deliberating upon, and organizing the City s income property portfolio. The attached $750.00 is intended to compensate you and your firm for the professional services rendered to the City to date for Marinapark assistance. Sincerely, Dave Kiff Deputy City Manager cc: Homer Bludau, City Manager Robin Clauson, Assistant City Attorney City Hall • 3300 Newport Boulevard • Post Office Box 1768 9 Newport Beach, California 92659-1768 �It CITY OF NEWPORT BEACH 3175( ORGANIZATION ACCOUNT PURCHASE ORDER INVOICE NUMBER AMOUNT DESCRIPTION 0310 Soso 750.00 MARINA PARK PLEASE DETACH THIS STATEMENT THIS CHECK IS TENDERED IN 7944 BEFORI!rWMklIgIN%CII OCIATES PAYMENT OF ITEMS LISTED s;. 14N'EV)71'ORT BEACH NEWPORT N T16 AL,Ii N`R'p 4� ;„ : 317 5'0 , 'x•. ';' "A, '3300+N WPOATBkVID. CITY acAIt fAL,BANK.:Z" ' b i 4888 MacAFiTNI'r8',CQ�JFI}<Y,?µ'; 't ,<c;%rbi' • ` �•,•i:'t:" :.. :' < NEGJPQRS:BE'ACHOALIFORNIA•:92663, NEW TBEAbo,cn t"b" ' CK' ' 4 . (919j'64F3917 (l{�137j-585� ' f`:':ia":.<. S%i1>$00%< CAW y' z` AN�QCliYI -cr,:� ;:Mr#x sal *75`0'. 00*4,. ; y* �Q10 AF"I:E1 �90�D'AYS ' PAY l-F ' „ >.; . ;• ;; , ::. ;SSV N, HUNDRED FTY '.DOLLARS. 6 Z"UP-ICE'NT,S ;a` '» :;'`> „i�e t6 THE LEY^:` A5$DC T Y41L! <•. , 7`"F `a $ h ,Y•. ORDER._..L500'_.NORTH 'STl1TF'-COLL'EtC�E""BL•V :' <t ;': �F ', .� _''S�'r •t'\J�-�• .. -h•A,;.�,<.•i•:�d'��:.�a =`°ii'� ��, <;."y.� y•.,_ `�.• .,C,A• 92s6B;.�„�ri}�a��-y�a.4+��=<:<r�e';�, :..;-,.:�-,r<,Ig:Y '• , r,;,f � "b�R.. 4.r k^.+�.�1: L:• s sY. � i✓y4 �„�'* •y, ',e_•• •i v -_ s'tyr:?�,1r. ,1.; ":_. ..i ., {,�'.",�ar.jJ1 (q,. LL(�� :+fist d•', .. '• . •� r. �.. A ' i' uAry `•i11.1.i Y__ 'J. ��'%9?M31� ` �;�Y���,µ 4#n• yp� •�,• •••� - <��r 1113175000 I: L 2 20 i60661: 0 2311169683SP 0 i POR CITY OF NEWPORT BEACH Hearing Date: May 9, 2000 ��gW n COMMUNITY AND ECONOMIC Agenda Item DEVELOPMENT °'��r ` DEPARTMENT No.: 19 PLANNING Staff Person: Sharon Z. Wood 3300 NEWPORT BOULEVARD (949) 644-3222 NEWPORT BEACH, CA 92658 (714) 644-3200; FAX (714) 644-3250 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Economic Analysis of Proposals for Future Use/Development of Marinapark SUGGESTED ACTIONS: 1. Continue to consider proposals, and request additional information from: a. Terra Vista Management b. American Legion c. Ayres Group d. Sutherland Talla Hospitality 2. Provide direction to these proponents on the following issues: a. Retention of public and quasi -public uses on site b. Goals for marina c. Minimum ground lease d. Land use entitlements On March 14, 2000, the City Council reviewed a summary of the eight proposals in response to the Request for Proposals (RFP) for Marinapark, and gave staff direction on review of the proposals. This report provides the economic analysis of the proposals, as well as their estimated traffic impacts and the land use entitlements that would be required. The relocation impact report has been started, and is expected to be complete by Economic Analysis Staff retained the firm of GRC Associates, Inc, to perform the economic analysis. This firm has extensive experience in reviewing development proposals for redevelopment agencies, and is very familiar with the development potential of property, development costs, proformas, and financing. The report from GRC is attached and Stephen Copenhaver, who prepared it, will be at the meeting to answer questions from the Council. Staff is providing this report to all the parties who responded to the RFP. GRC contacted or attempted to contact those proponents from whom additional proposal information was needed for analysis. Even with this effort, GRC found that three of the proposals do not satisfy all the RFP requirements, and was unable to analyze them further. The PB&R Commission's proposal is in this category because it does not have economic impacts for the City. However, staff recommends that the City still consider this proposal, as the Commission's intent is to retain the City's recreational facilities along with other use of the remainder of the site. GRC placed the remaining proposals into two categories for further analysis: those that accommodate existing uses, and those that propose to redevelop the site. The analysis concludes that a combination of the two proposals to accommodate existing uses, Terra Vista Management (mobile home park) and the American Legion, could significantly increase City revenue with very low risk to the City. The redevelopment proposals could generate higher revenue, but with greater risk. GRC believes the Ayres Group and Sutherland Talla Hospitality proposals have a reasonable level of risk associated with their revenue potential, and should be considered further by the City, along with the existing use proposals. For the-City's further consideration of this shortiist of proposals, GRC is recommending that the City request more detailed proposals, to include more evidence of market support for the proposed uses, specific lease terns, more accurate site plans, more detailed budgets, financing plans, equity investment and lease guarantees. GRC also is suggesting that the City provide additional direction to the proponents for the next phase of consideration. The areas in which additional City guidance would assist in the preparation of more detailed proposals are the need to retain the public and quasi -public uses on site, the City's goals for a visitors' marina and marina facilities, establishment of a minimum ground lease payment, and resolution of the land use questions associated with the tidelands boundary. Traffic Impacts Public Works staff has done a preliminary analysis of the traffic impacts that would result from each of the proposals, which is included as Attachment 2 to this report. The net number of average daily trips ranges from a reduction of 286 with the PB&R Commission proposal and no new uses, to an increase of 7,031 with the Bendetti proposal. For all of the proposals, the majority of trips would occur outside of the a.m. and p.m. peak hours. Citv Land Use Entitlements Planning staff reviewed the proposals to determine their requirements for City land use entitlement, and a summary of those is shown on Attachment 3. Only building permits would be required for the American Legion and PB&R Commission proposals. All other proposals would require amendments to the General Plan and Local Coastal Program, as well as approval of a Planned Community development plan. The proposals involving redevelopment of the site rather than continuation of existing uses also would be subject to the Traffic Phasing Ordinance. SHARON Z. WOOD Assistant City Manager D Attacltments: 1. Report from GRC Associates, Inc. 2. Traffic Projections 3. Entitlement Process 4. Proposals Summary 0 Page 2 ECONOMIC DEVELOPMENT • Memorandum To: From: REDEVELOPMENT Date: REAL ESTATE CONSULTING Subject: �r A::'-JlM�� I Sharon Wood, Assistant City Manager Stephen Copenhaver, GRC Associates April 27, 2000 Marinapark Proposals AFFORDABLE HOUSING Pursuant to your direction, GRC has reviewed the Request For Proposals prepared by your office and the responses received from the entities expressing interest in the property. Our review also included inspecting the subject property and the surrounding property in the field, securing comparables for the various land uses addressed in the proposals and reviewing past analysis of the property prepared for the City. We reviewed the summaries of the proposals prepared by the City staff. We also attempted to speak to the companies submitting proposals when further explanation or detail to reasonably interpret the results was required. Businesses in the immediate vicinity of the subject property were also contacted. Our review did not consider property factors pertaining to the Local Coastal Plan or the exact boundaries of the developable land. The Tidelands issue is currently being reviewed by an engineering firm for the City and it is beyond the scope of our review. Our basic assumption is that with sufficient effort, the appropriate plans could be amended and approvals secured for the chosen development and if approvals were not forthcoming that development plans could be amended while keeping the basic concept intact. Review of the subject proposals presents an interesting challenge because the level of detail addressed in the proposals varies dramatically and suggested land uses ranged from institutional to residential uses. This outcome should be expected because the RFP was structured to be a flexible document not designed to limit the creativity of the project proponents but encourage the "highest and 1340 VALLEY VISTA DRIVE best use" analysis from each perspective. As a consequence, proposals SUITE 120 were submitted by developers, property management entities, leasehold interests, a municipal department, and institutional uses. D BAR, CA 91765 This range of interests in the property provide the City a broad range of alternatives to consider. None of the proposals provided a sufficient T. (909) 396.7714 F: (909) 396-7913 • • Sharon Wood April 27, 2000 Page 2 level of detail, nor the required tenant and financial commitments to be selected on .the basis of the materials presented. Consequently, we envision that this review will assist in narrowing the options and helping to define the shortcomings of each proposal. Our approach to the review consisted of first separating those proposals which were not responsive to the requirements of the RFP. Three of the proposals fell into this category. Following this determination, the remaining proposals were divided into those proposals that revolved around restructuring existing or expired leases with some redevelopment and the third category were proposals that set forth development schemes that would introduce new uses to the majority of the site. Responses Deemed Unresponsive to RFP Requirements The following submittals were judged as not having sufficient detail to be considered responsive to the intent of the RFP requirements. 1. Ficker & Stevens. This proposal is very conceptual and outlines a public/private partnership between the City and the private entities. However, the proposal does not attempt to define square footages, revenues, and financing methods. The proponents suggest that the appropriate use for the property would be a combination of public and marine uses including a visitors marina; public shipyard, marine oriented retail, restaurants and service facilities to support the visitors marina. The proponents point out that they are very qualified in the management of complex projects and that they would serve as the general partners and assume responsibility for securing the necessary partners and financing for the project. -The venture addresses the need for a 50-year lease and that net profits would be allocated with the City receiving one-half of all revenues generated by the development. The proponents bring with them very impressive design, development and marine experience, but the proposal does not reflect the effort and detail of the other proposals and, in our judgment, it does not begin to meet the minimum requirements of the RFP. I* H:1PR0J GCTS W GWP0RTIFINALDOC Sharon Wood April 27, 2000 Page 3 2. RHC Communities. This proposal is based on a concept of a boutique hotel, retention of the mobile home park, construction of new building spaces for the American Legion, Girl Scouts and the Balboa Community Center, a parking structure, park uses for children and adults, community boating facilities and even low income housing if desired by the City. The proposal sets forth the obligations of RHC and the City but does not address the development and financing of several of the project elements including the hotel, the marina improvements, institutional buildings and certain public facilities. The project proponents have attempted to develop a "plan" more than a development concept. The plan addresses a very -wide range of the potential interests in the subject property, but it does not provide any indication of how the plan would be implemented and paid for. The only financial provision within the proposal is for a 55-year ground lease with a base rent of $1.1 million per year. Additionally, there is a reference to a potential for transient occupancy tax of $280,000 and restaurant sales tax equal to $80,000 per year. The base rent has a relationship to the revenue produced by the mobile home park lease, but lease rates per space are not addressed in the proposal. The economics of the hotel and other project elements or the responsibility for developing these elements are not addressed. RHC is a very experienced manager of mobilehome parks and is becoming increasingly active in the apartment community. In total, they own several thousand units. The background documents do not indicate any non-residential development experience. Overall, this proposal was deemed unresponsive to the minimum requirements of the RFP because the proposal was very conceptual and did not include specific budgets or adequate detail on projected costs and revenues. 3. Newport Parks Beaches and Recreation Commission. This proposal from a municipal entity saves the institutional uses and expands the park and public uses on the site. The proposal states that approximately 2.5•acres of the site would be used for the park uses, but the conceptual site plan and the text don't appear to be totally consistent. The site plan indicates that the proposed public uses and HN'ROJRCfSWI WPORNJNALDOC Sharon Wood April 27, 2000 Page 4 the modified- American Legion property occupy all of the site between 15' Street and 17'' Street which is approximately two-thirds of the available property. A detailed budget is included in the proposal and financing for the park improvements, estimated at $2.0 million, is based on anticipated revenues from Proposition 12 recently approved by California voters. Operating costs are not addressed. This proposal, although containing elements that the City may wish to pursue, is not consistent with the goal set forth in the RFP to identify a secure future revenue stream from the property even though it addressed only a portion of the site. Proposals Accommodating the Existing Uses Two proposals were submitted that essentially restructure prior leases at current market rates. These two proposals provide some additional enhancements to the existing development with options for minor expansion. Neither proposal reflects significant new investment in comparison to the proposals calling for redevelopment of the site. Also, these two proposals could be based on shorter term lease commitments from the City and they reflect substantially less risk than the proposals that call for the redevelopment of the site that would require significant financing, pre -leasing, entitlements and outside management companies. The following summarizes the two proposals. Although not planned for by the proponents of the two proposals they could work together to address the entirety of the property. 1. Terra Vista Management. This proposal is based on two alternative plans. The first is simply the maintenance of the existing uses with certain other specified uses. These include the expansion of the public restroom facilities, improvements to the boat launch, landscaping, the adoption of new standards for upgrading the mobile homes and approximately 40 new metered parking stalls on the American Legion site and 18'" Street and Balboa Boulevard, improved public access to the bay and minor improvements to the Boardwalk. The second alternative provides for the reconstruction of the tennis courts, elimination of the City Community Services and the Girl Scout buildings and the addition of 12 new home sites. 0 HNPROIEC'MNEW PORMINALDOC Sharon Wood April 27, 2000 Page 5 Terra Vista met the requirements of the RFP through the provision of detailed operating budgets and development plans. The company also characterized their proposal as a joint proposal with the mobile home park homeowners association and the proposal included a letter of support from the president of the organization. The proposal effectively doubles the rent to the homeowners and provides for annual increases equal to the full percentage change in the CPI. The specific proposal for the first alternative plan is to ground lease the mobile home site for an amount equal to the greater of 75% of the gross lease revenue or $1,000,000 per year plus 5% of sales price of all mobile homes sold in the park. The proposal sets forth a rental schedule of $2,300 for waterfront as opposed to the current rate of approximately $1,150. Water view lots are $1,800 and tennis view lots would be $1,600 per month. Both the minimum rent and the percentage rents would increase with the CPI. No term is set forth in the proposal. The projected monthly rental rates were based on the rents charged by Terra Vista at the Bayside Village mobile home park which are $100 less per month than those proposed. The Maririapark facility has a superior location. Private investment required to achieve the first alternative is $25,000 and the second alternative, which includes rebuilding the tennis courts, would require an investment of $400,000 to accomplish. The development provides that the proponents would receive a credit against lease payments for this additional investment. This proposal provides for minimum private investment but also minimum return to Terra Vista. The proforma indicates that the park operating costs plus the ground lease rate to the City equal the gross rents of the park except for 5% off -site management fees and Terra Vista's participation in resale values which is approximately 7% to 8% of the sales price. This level of operating costs is consistent with our experience in reviewing the operation of mobile home parks. The second alternative increases the cost of the project but also increases the base ground rent approximately $80,000 per year due to the increased number of home sites. The credit for the $400,000 in leasehold improvements for this second alternative would consume the increased ground lease revenue for 7 years at a 9% interest rate. MTROJECTS W EW PORW INALDOC • 0 Sharon Wood April 27, 2000 Page 6 Terra Vista agrees that a significant number of the mobile homes require upgrades. Their proposal indicates that they are willing to adopt standards for upgrading the homes upon re -sale or upon entering into a new lease with the homeowners once they take over the park and the existing two-year extension expires. The company appears to be very qualified to manage mobile home communities and they currently manage over 1,600 units in California and Nevada. 2. American Lesion Post 291. This proposal is very straightforward. The American Legion desires a long term lease or the relocation to a comparable facility in close proximity. They are willing to invest up to $500,000 in the existing building improvements to bring them up to current codes and they are willing to make lease payments based on the appraised value of the site which apparently would take into consideration some of the public benefits offered by the Legion. The proposal gives no indication of value and only points out that Post 291 continues to grow 5% to 10010 per year and that because of their large membership basis that they are financially capable of fulfilling a new lease with the City. We would anticipate that an appraisal of fair market value that disregards the "public benefits" would be equal to the value of the marina at market lease rates plus the value of the 1.35-acre site. Based on the projected revenue for these facilities in a prior City sponsored study, the value would be approximately $1.5 million; however, the real estate market has improved in the last two years and an appraisal could easily exceed this amount. The preceding two proposals represent significantly less risk to the City than redeveloping the site. Revenues are effectively assured, the terms could be less than one-half the term required to finance new development and the uses do not require any additional financing. Ptoposals to Redevelop Marinaparkc The following proposals are unique in that they take a much more aggressive look at the site and essentially look to redevelop all or major portions of the Marinapark with a range of new and existing uses. MUIROIGM MORTFINALOOC Sharon Wood April 27, 2000 Page 7 Three proposals fall within this category and they address developments with hotel, restaurant, retail and residential uses. The proposals all were deemed to meet the minimum requirements of the RFP. Although meeting these minimum requirements, they vary significantly in detail and quality, particularly with respect to the substantiation of values utilized, property comparables and project economics. The three proposals range from a low -density hotel and marina proposal to a proposal for a small hotel and residential development to a proposal that has retail, residential, hospitality, office and marina uses. Each of these proposals vary from the preceding proposals in that they address secondary income from transient occupancy tax and sales tax as an additional attraction of their proposals. The following summaries address the specifics of each of the three proposals. 1. Ayres Hotel Group. This proposal incorporates a 83-room boutique hotel on the bay front plus 49 residential lots to be located on the bay front or Balboa Boulevard. The hotel would include a restaurant and lobby area fronting on Balboa Boulevard for visibility and exposure. The proposal does not attempt to capture any land from the American Legion, expand the marina facilities nor eliminate the municipal park or tot lot, but it does eliminate the tennis courts, the Community Services and Girl Scout buildings in favor of residential lots. The proposal provides alternatives for the purchase of the residential lots at $15.75 million or annual lease payment equal to $1,102,360. Ground lease payments for the hotel are noted as negotiable. However, the hotel proforma included in the proposal indicates an escalating ground lease payment of approximately $230,000 annually during the first five years of the project. Average daily room rates are estimated at $170 per night the first full operating year. Lease rates during the 10-month construction period are not addressed and the term of the required ground lease is not addressed. A very detailed operating budget is provided for the hotel, but development proformas for the residential development and the hotel were not provided. The proposal makes reference to a hotel development budget of $20 million. This is substantially in excess of the amount that 0 would be required to develop the proposed project. H:NROJECPSW EWPORYTFINALDOC • • Sharon Wood April 27, 2000 Page 8 Combining the different revenue generating elements of the proposal indicates that municipal ground lease revenue, room tax revenue, restaurant sales tax revenue (GRC estimate) is approximately $1.75 million per year. The proposal is not sufficiently detailed to precisely define the specific terms of the proposal and additional information needs to be provided by the developer. This is especially true with respect to the proposed restaurant use. If the residential lots were sold, the proposed project generates additional one time value and less ground lease value; however, if the sale proceeds were invested at the approximate City reinvestment rate of 7%, the lease rate and the for -sale value are equivalent. We believe the valuation of the residential lots is appropriate based on our review of housing values in the area. With respect to development experience, the Ayres Group lists five hotels developed in the last three years in southern California and a total of 14 projects that they have completed. Several of the projects are located in Orange County. They also have two hotels currently under construction. They manage their own projects. Although the proposal does not address the firm's residential experience, the Ayres family and business entities have developed large residential developments throughout southern California. 2. The Bendetti Company. This proposal is by far the most complex of the proposals and it addresses the full range of land uses including: a) maintaining 52 of the 58 mobile homes on the site; b) developing 17 new single-family residences (2,400 sq. ft.) and 24 new townhouses (1,500 sq. ft.); c) 34 boat slips for a visitor marina; d) on- shore facilities for showers, restroorns and laundry; e) a .44-room luxury inn; f) 12,000 square feet of conventional, marine and seaside oriented retail; g) 9,000 square feet of office space; h) a 5,400-square foot restaurant; i).2,400-square foot coffee shop; j) a new 8,600-square foot American Legion facility, k) 200 parking spaces; and 1) an enhanced bay front boardwalk, street furniture, theme lighting, large theme based architectural features at the boarders of the project along the waterfront. To accomplish the .proposed development, the developer believes that it will require a 65-year lease and a 40=month timeline. The proposed ground lease payment to the City is $2.0 million per year with PA HAPROJ EMNEW PORTTINALDOC Sharon Wood April 27, 2000 Page 9 payments commencing upon the completion of construction. The City is to receive all revenue from the mobile home park and marina during the construction period. Following completion of the development, the proposal offers in addition to the $2.0 million ground lease payment, 60% of the net cash flow generated by the proposed development. This is estimated by the developer to be just shy of $1.0 million to the City per year. A third source of revenue to the City consisting of one-half the one-time profit generated by selling the homes and the townhomes estimated at nearly $3.0 million will also go to the City. The proposal contains a number of drawings illustrating homes, commercial buildings and architectural features with a strong Cape Cod and cottage design theme. The proforma indicated that the cost of the project would be approximately $41.0 million including the residential components and $24.0 million without the residential uses. After the ground lease payments, the proforma submitted by the developer provides for nearly a 16% return on costs and net cash flow the first stabilizedyear of $1.62 million. Lease rates for the mobile home park are very similar to the rates found at the Bayside Village mobile home park. Residential prices are approximately $302 per square foot for the single family on leased land and $283 per square foot for the townhouse and stacked units. Ground lease payments for these units are 3% of the sales price per year or approximately $1,813 for the single family and $1,063 for the attached housing. Boat slip revenues are based on $15 to $18 rates per lineal foot for the private marina and approximately $2.00 per foot per day for slips for visiting yachtsmen. Restaurant space is estimated at a lease rate of $1.95 triple net. Bay front office space at $1.95 per square foot triple net ($2.25 gross). Retail is estimated at $1.75 triple net. American Legion rental rates are set at $0.00 and no contribution towards construction costs of the 8,500-square foot facility is required under the proposal. The qualifications statement for Bendetti indicates that they have been in business for 51 years and have developed over 3.5 million square feet of commercial space. The developer's recent experience includes a 1.02 million square foot industrial park in Cerritos built in 1971; a 305-unit mobile home park built in Cypress in 1968; Fernwood mobile home park in Stanton built in 1975; Americana mobile home park in Downey; a 248,000-square foot business center in Ontario built HAPROJECTS W C• W PORTONALDOC Sharon Wood April 27, 2000 Page 10 . in 1989; and a 262,000-square foot business center in Paramount built in 1970. Two current projects including a golf course with 641 units in Cathedral City is in the planning stage for the company and a 221,000 square foot distribution center in Ontario is under construction. This proposal is very difficult to review because the site plan needs to be developed further, particularly with respect .to the American Legion proposal and the parking solution for both the commercial/hotel/office and residential sections of the project. It is our opinion that the retail development proposed without Balboa Boulevard frontage may not be feasible. Retail areas on the Peninsula have not been that strong and with limited visibility and premium rental rates it would be even more difficult to have a viable development, The developer informed us that they are willing to undertake a market study to determine the demand for retail space. An operator for the hospitality element of the project is another step that the developer wouldidentify in the future if selected by the City. With respect to the potential revenues, the developer is definitely on the aggressive side. For instance, the room rates exceed the prior proposal by $43 per room night but the capital cost of the hotel is substantially less. Restaurant space is at relatively low cost and the residential components at a direct cost of between $165 and $200 are at a very high cost even for smaller units. The ground lease rate for the single-family, homes is equivalent to adding $243,000 to the acquisition cost which would bring the cost of the single-family homes up to slightly less than $975,000 for a 2,000 to 2,400 square foot home on Balboa Avenue but probably with a second story view to the Bay. The attached housing is also priced on the aggressive side at the equivalent of approximately $569,000 and the interior units are stacked units. The highest value residences in the immediate vicinity of the site are directly to the east on Bay Avenue. Realtors in the area informed us that Waterfront values are from $1.2 million and up and the second tier homes are from $800,000 and up. These are for larger homes some with second units. In comparison, the Bendetti proposal is suggesting a higher sales price per square foot in an environment not as attractive as Bay Avenue. 3. Sutherland Talla Hospitality. This proposal takes a very • different approach than the mixed -use proposals. The proposal H:WROJ ECTSWCWPOR7 VINALDOC Sharon Wood April 27, 2000 Page 11 suggesting a higher sales price per square foot in an environment not as attractive as Bay Avenue. 3. Sutherland Talla Hospitality. This proposal takes a very different approach than the mixed -use proposals. The proposal describes a five star hotel use complemented by marina facilities for visiting yachtsmen and two restored vintage yachts to be added to the guess room count. The proposed resort requires the entirety of the site and is a very low -density project configured in 18 Italian style villas. Two restaurant spaces are provided, hospitality rooms for visiting yachtsmen and a modest amount of hotel serving commercial is included. The project also includes a meeting and banquet area of 7,600 square feet and a spa. The proposal relocates the playground and park to the 18th Street side of the property and reconfigures the tennis courts into. a Racquet Club for the use of the hotel guests and Newport Beach residents. The proposal does contain one alternative to construct a new American Legion hall on the 18th Street frontage at no cost to the Post and at a ground sub -lease rate of $1.00 per year. The proposal reserves the right to dedicate up to 20 of the 156 guestrooms for fractional ownership as long as the City receives compensation for the loss of room tax. The proposal identifies the hotel operator as Regent International Hotels, an operator of high line resort hotels. Regent International included a letter in the proposal indicating their interest in the project. The term of the proposed lease is 60 years and the developer is offering the City ground lease payments of $800,000 for the first two years, $1.2 million for the third lease year and $1.4 million for years 4 through 10. The lease is to be adjusted every 10 years thereafter based on the CPI increase but it is capped at 2% per year. The proposal also defines the potential transient occupancy tax and the sales tax that the City may receive from the development of the project. Over the first 10 years of the project, the developer estimates that the City's 9% share will vary between $1,222,000 and $2,151,300 per year and that sales tax will vary between $46,000 and $71,600 per year. The developer's commitment to implement the project is conditioned upon the completion of an acceptable market feasibility study. The proposal also indicates that the developer will be seeking undefined concessions towards the cost of building permits and fees. CAWINDOWMTOMPTINAL DOC Sharon Wood April 27, 2000 Page 12 relocation of the park facilities, or the tennis courts. These costs may be addressed in the overall site costs but the costs do not appear to be a complete summary of potential hard and soft development and financing costs. With respect to average daily room rates, the project is structured at between $325 per room night for the junior suites and double queens and $425 per night for the suites. The visitor's marina projects 10 yachts in transit for 50% of the year at an average of $225 revenue per yacht. The projected average room rates for the hotel exceeds the rates of any local hotels by a very wide margin. The developer included correspondence from the Four Seasons, Ritz -Carlton and the Beverly Wilshire to illustrate that the proposed room rates are in -line with the best hotels in southern California. A subsequent letter submitted by the developer points out that the proposed room rates are actually low because they were based on off-season rates and that the Four Seasons is a four star rather than a five star hotel which is reflected in the lower room rates. The proposal contained yearly gross revenue projections but did not include a traditional hotel operating statement for the project. is The project proponents consist of Stephen Sutherland, the owner of an architectural, engineering and construction management firm that has been involved in a wide range of resorts in Mexico, San Francisco and Texas. Michael Talla is the financial partner in Sutherland Talla Hospitality. Mr. Talla is the majority stockholder in the Sports Club Company, Inc. noted in the proposal as a $160.million company that is involved in the development of athletic clubs throughout the nation. A letter of interest from Burham Capital Markets was also included in the proposal as a potential loan broker. This firm represents a wide range of insurance companies and underwriters and they secured funding for two Orange County hotels in the past year. Analysis Implementation and Market Risks The proposals represent a wide range of landlord risks to the City. Principally, these include the strength of the market demand for the proposed projects, the risk of implementing the proposals and securing entitlements. HAPROJECTSW EWPORMNALDDC Sharon Wood April 27, 2000 Page 13 We suggest that any analysis of the subject proposals would eliminate the three proposals that were not responsive to the requirements set forth in the RFP. Of the remaining two categories of proposals, the City is facing an interesting risk -reward equation. The combination of the existing mobile home park and a rent -paying American Legion could generate significantly more income than currently received by the City and the term of the lease could be limited to a relatively short period of 10 to 20 years depending on negotiations. Lease revenue would be easily administered and any default could be readily cured through cancellation of the lease. The market risk of implementing this revised lease structure with the existing uses is very low because there is a direct comparable to indicate the market lease rates for a mobile home park on the Peninsula. The development proposals on the other hand vary in risk from the Ayres proposal which incorporates conservative product to the other two proposals by Bendetti and Sutherland Talla which contain very unique products. The Ayres proposal values waterfront lots at approximately $625,000 and Balboa Boulevard lots at $200,000 and includes a hotel to be developed by a group with significant local hotel experience in both building and operating developments. This proposal carries with it a significant entitlement risk because of the waterfront homes and the tidelands issue but a modest market demand risk. The value of the residential lots was based on data that the firm secured from local realtors active in the local market and it appears to be consistent with residential values in the area. The proposal from the Bendetti Company carries with it a design risk because the site plan is not sufficiently developed and a development risk that the proponents can achieve the project. The submitted qualifications did not indicate that they have any experience in the implementation of mixed -use projects. This project also has market risk, due to the commercial development included in the proposal. The one significant area where the Bendetti Company proposal minimized risk is that the majority of the mobile home park remains so that it is unlikely the tenants would attempt to mount a legal effort similar to what has occurred in other locations. The strength of this proposal is the treatment of the marina facilities and the weakness is the 0 commercial component which consists of substantial square footage in HAPROIECTS W E W PORTPINALDOC • 0 s Sharon Wood April 27, 2000 Page 14 a secondary location with poor visibility. The parking solution needs additional design work, The Sutherland Talla Hospitality proposal, although well prepared and perhaps as comprehensive as any of the proposals, is based on a five star hotel concept. This proposal also needs additional work in order to address project costs, parking and the market for such a project at Marinapark. The drawings in the proposal for a low -density very high - quality project are extremely attractive. We reviewed room rates at the Surf and Sand in Laguna, the smaller hotels on the Peninsula and received some guidance from PKF on appropriate comparable hotels and we are not comfortable with the proposed room rates. Even at lower room rates this project is very attractive. However, we feel that the project needs to evolve and the issue of the American Legion needs to be resolved. Furthermore, budgets need to be prepared with greater precision. The development team appears to be very strong from the design and financial capability perspectives but they are not an established development company and this, would be the first project with the proposed partners. In terms of market demand and the difficulty of implementation, disregarding tidelands issues, we feel that Ayres' proposal would represent the lowest risk and the Bendetti project would represent the highest risk. Municipal Revenue The projected municipal lease and tax revenue projected by the developers varies significantly with the specific proposals. Assuming that each project proponent would be successful in implementing the proposed developments, the City would approximately receive the following revenues illustrated in Table 1. These projections are based on the developer's estimates as provided in their proposal. In general, we do not believe that the proposals have evolved to the point that meaningful revenue projections can be made except in a couple of instances. The proposals do clearly indicate that a hospitality use will generate the maximum amount of tax revenue per acre. The proposals vary in occupancy rates and room rental rates but assuming a conservative 72% occupancy and $175 average room rate each hotel room HAPROJL•CTS W CWPORMNALDOC Sharon Wood April 27, 2000 Page 15 potentially would generate approximately $4,140 in transient occupancy tax per year. Additionally the property tax valuation of a hotel room per square foot of building area is substantially higher than other commercial and office uses. With respect to ground lease revenue, residential uses appear to generate the highest value per square foot of available land: The new residential units in the proposals average ground lease payments of slightly less than $19,500 per unit and the mobile home park generates approximately $16,500 per unit per year after operating costs. We are riot convinced that retail other than strong destination retail uses (i.e. the kayak store on Balboa Boulevard) can be successful at the subject location. The hotel and marina uses support only a modest amount of retail square footage and the limited off-peak population base presents difficulties in supporting existing retail areas on the Peninsula. The Marina income is not being maximized by many of the proponents and this can be a source of additional municipal revenue if operated as part of an overall development or if operated by the City. The addition of the visitors marina as suggested by two of the developers appears to be a good revenue source that could look forward to generating significant public and private revenue with the proper management. Recommendations Secure More Detailed Proposals From Developer Shortlist The proposals at this stage are in very rough form. This is understandable from the perspective of companies not wishing to invest too much time and effort into a process open to any interested party. It would be our recommendation to narrow the list of developers and to secure more detailed proposals. The one proposal that is essentially in final form other than the specifics of the lease terms and the .issue of two-story mobile homes is the Terra Vista proposal to maintain the existing uses at current market rates. The other proposals need to be developed further with more evidence of market support for the proposed uses, specific lease terms, far more accurate . site plans and more detailed budgets. It is our recommendation to invite the Sutherland Talla Group and the Ayres Group to continue in H:NROIECTSW EWFORTTINALDOC Sharon Wood April 27, 2000 Page 16 the process and develop more detailed submittals and to have the Terra Vista Group clarify some of the offered lease terms. A reasonable time frame for developers to submit adequately detailed proposals would be not less than 90 to 120 days. Requirements for a subsequent proposal round would include dimensioned site plans, detailed financing plans, hotel operator commitments and additional feasibility analysis in support of proposed development. Additionally, it would be expected that offered lease terms and conditions would be more comprehensive than the City received in the first round. Clarify Need for Public and Quasi Public Uses We believe that the City would get the best results from clarifying certain policy issues on the need to maintain the public and institutional uses currently on the site. This would permit consistent proposals, that can be more readily compared. We also believe that the American Legion should, be paying a reasonable rent which they state they can afford based on their extensive membership. Several of the proposals were based on the assumption that the American Legion needs to be located in the existing building or even a new building at effectively no rent. Define Potential Marina Options and Goals The quality of the proposals would also increase if the marina options were more well defined in terms of municipal goals for a visitors' marina and the scope of the marina facilities that could be added adjacent to the site. Clarify Financing Plans, Subordination Issues and Lease Guarantees Topics that received very little attention from the developers were the method of financing the developments, the level of equity investment required, the ability to achieve the desired development on the basis of an un-subordinated ground lease and the offered lease guarantees. These are all very important topics that should be addressed before any developer selection occurs. The City may also wish to consider a minimum annual ground lease payment on the order of $1.2 million to $13 million for the site which would serve as the base rent. 0 H.TROJ EM W L• W PORMNAI-000 0 • Sharon Wood April 27, 2000 Page 17 Entitlement Issues Some of.the more difficult entitlement issues need to be clarified with respect to the tidelands boundaries and the status of the various plans that impact use of the site. This work is currently in progress by the City. Any level of clarification would help in the process of defining the best alternative for the property. These issues could alter the proposals significantly and consequently the revenue available to lease the site. N:IPROJECTS W EWPORTPINALDOC Table No.1 Developer Revenue Projection 3rd Year Other Annual One -Time Proposal Lease Revenue Participation Participation Terra Vista $1,040,400 $29,131 American Legion appraisal req. Ayres $1,331,160 $15,750,000 1) Bendetti $2,000,000 $972,000 $2,861,000 2) Sutherland Talla $1,200,000 TOT Sales Property Projection Tax Valuation 41 $453,971 $6,000,000 $213,965 n.a. 3) $41,000,000 $1,420,227 $50,869 $29,685,000 footnotes: 1) Value of residential lots if sold rather than ground leased 2) eendetti proposal provides profit particiaption in the sale of residential lots and commercial cash flow 3) No sales tax projection included in proposal 4) Does not include valuation of mobile home park r� u 0 9 0 • Land Use ADT AM Pk PM Pk ADT AM Pk PM Pk Reference _ A. American Legion Rate Rate Rate Trips Trips Trips - Maintain existing facilities, slips, etc..-- B. Ayres Group -- -- 83 room hotel American Legion to remain 8.7 _ 0.67 _ 0.76 _ 722 56 63 NBTAM - Hotel Remove 49 mobile homes Net New trips 6 0.6 0.7 -294 428 -29 26 -34 29 NBTAM - Mobile Home - - C. Bendetti Co. 44 room seaside inn 8.7 0.67 0.76 383 29 33 NBTAM - Hotel Add 9,000 sf office 17 single family du's 24 townhome du's Remove 6 mobile homes Add 34 boat slips Add 12,000 sf marine/conventional retail Add 5,400 sf restaurant Add 2,450 sf coffee shop/diner Net New trips 14.03 11 8.1 6 0.51 45 95.99 177.87 1.9 0.9 0.66 0.6 1.1 0.87 14.81 1.87 1.1 0.83 0.7 3.9 7.39 12.92 126 187 194 -36 17 540 5183 436 7031 17 15 16 -4 50 47 _ 36 207 17 19 20 -4 _ 47 __ 399 _ 32 562 NBTAM - Office NBTAM - Res Low (SFD) NBTAM - Res Med (SFA) NBTAM - Mobile Home NBTAM - Marina NBTAM -General Commercial NBTAM - Restaurant NBTAM - Family Restaurant -- D. PB & R Commission Remove 58 mobile homes Demo Scout house, community ctr (5,000 sf) Add new 7,000 sf community center Net New trips 6 4 4 0.6 0.2 0.2 0.7 0.4 0.4 -294 -20 28 -286 -29 -1 1 -29 -34 -2 3 -34 NBTAM - Mobile Home _ NBTAM - Youth Ctr/Service NBTAM - Youth CU/Service E. Ficker & Stevens - Remove 58 mobile homes Remove 49 boat slips (from Am Legion) Maintain American Legion 6 0.5 _ 0.6 _ 0.7 _ -294 -25 - -29 _ -34 -- NBTAM - Mobile Home _ NBTAM -Marina ---- Marina/service assume 2,000 sf w/100 slips Add Marine retail, assume 2,000 sf Add Restaurants, assume 7,000 sf Net New trips 0.5 45 95.99 1.1 0.87 3.9 7.39 50 90 672 493 2 6 -21 8 52 25 NBTAM - Marina NBTAM - General Commercial NBTAM - Restaurant iid/Planrnng/Marinapark Trip Scenarios S F. RHC Communities R&R American Legion facility R&R Girl Scout & Community Ctr facilities 100 room hotel Expand marina - assume 20 slips Net New trips 8.7 0.5 0.67 0.76 870 10 880 67 67 76 76 NBTAM - Hotel NBTAM - Marina G. Sutherland Talla Hospitality 156 Villa -style Resort Hotel Remove 58 mobile homes 6 6 0.3 0.6 0.5 0.7 936 294 47 -29 78 -34 NBTAM -Resort Hotel NBTAM - Mobile Home Build 20 additional visitor slips 0.5 10 NBTAM - Marina Relocate American Legion in same area _ Remove 58 mobile homes Net New trips 6 0.6 0.7 -294 358 -29 -12 -U 9 NBTAM - Mobile Home H1. Terra Vista Management Maintain existing H2. Terra Vista Management Add max of 12 mobile homes Demo Scout house, community ctr (5,000 so Add new 7,000 sf community center Net New trips 6 4 4 0.6 0.2 0.2 0.7 0.4 0.4 72 -20 28 80 7 -1 1 8 8 -2 3 9 NBTAM - Mobile Home NBTAM - Youth Ctr/Service NBTAM -Youth Ctr/Service NET&Ind -a t `)5& K,,4e.(c' ild/Planning/Marinapark Trip Scenarios Is U pei 0,+e s 9 LI ,f • i Marina Park Proposals Entitlement Process Mobile Home/ Project Description Residenital Units A. American Legion Renovation & extended lease of existing No Change. building. B. Ayres Group 83 room - 2 story hotel, keeps Legion Hall and g mobile homes removes 49 mobile home sites. Removes 6 mobile home sites. Builds new on - site Legion Hall. Adds new detached and 52 mobile homes, 17 C. Bendetti Company attached housing, boat slips, 44 room seaside single family homes, inn with a restaurant and diner, and 21,000 s.f. and 24 townhouses. of retail/office space. D. PB & R Commission Proposes to reserve at least 2.5 acres of No mobile homes or recreation/open space in any redevelopment. residential units. Retains the American Legion without the slips, builds new visitors marina and service facility, E. Ficker & Stevens repair shipyard, marine related retail, and No mobile homes or several restaurants. Possible future site for the residential units. Newport Nautical Museum. O Processing Requirements Building Permits General Plan, LCP Amendments, PC Plan, TPO, Environmental General Plan, LCP Amendments, PC Plan, TPO, Environmental Building Permits General Plan, LCP Amendments, PC Plan, TPO, Environmental (A Keeps all mobile home sites. Builds new on -site Legion Hall. Adds a boutique 100 room hotel, F. RHC Communities restaurant, two story parking garage, reconfigures recreation areas, and limit expansion of the existing marina. Proposes a 156 villa styled resort hotel, restaurant, limited retail, redeveloped marina G. Sutherland Talla Hospit with additional visitor docks. Up to 20 of the rooms could be used as time share units subject to TOT. Would pay up to $500,000 to relocate American Legion or relocate onsite. 58 mobile homes. No mobile homes or residential units. General Plan, LCP Amendments, PC Plan, TPO, Environmental General Plan, LCP Amendments, PC Plan, TPO, Environmental Continuation of the mobile home use with some General Plan, LCP H1. Terra Vista Manageme minor improvements to landscaping, beach 58 mobile homes. Amendments, PC Plan access, and additional public parking. Same as above but would reconfigure tennis H2. Terra Vista Manageme courts and add new mobile home sites where 68 to 70 mobile General Plan, LCP the Girl Scout House and City maintenance homes. Amendments, PC Plan building are currently located. Notes. (1) Existing General Plan is for Recreational and Environmental Open Space, for use as an aquatic facility, beach, and community facilities. (2) Determination of TPO Requirements to be confirmed with final project description. LA 0 i • 0 0 Marina Park Proposals Propcsof Summary Project Desorption A. American Legion Renovation & extended lease of existing building Mobile HomNResldcnital ONts Lease Revenue Other Revenue No Change. No Change. None. Development Costs 5500,000 B. Ayres Group 83 room-2 story hotel, keeps Legion Hall and removes 49 9moble homes 5162,205 to 5328,060(1) TOT of S360,511 to $20,000,000 mollehomesles. $653,160 Removes 6 moble home sites. Bultls new on -site Legion 52 mobile homes, 17 single There would be a one C. Bendelli Company Hall. Adds new detached and attached housing, boat slips, farmly homes, and 24 S2.000.000 time developmentWhen $41,323,300 44 room seaside Inn with a restaurant and diner, and townhouses 53,000,000(1) Paid to thlof $2 B million paid 1p the 21.000 s f. of relailloffice space. City. D. PB&RComrnissin Proposestoreserve at least 2.5 acres of recrealiontmen No mobile homes or Does not apply. 549,OOOt $2,000,000 space in any redevelopment. resitlential units. Retains the American Legion without the slips, builds new E. Mcker & Stevens instors marina and service facility, repair shipyard, mane No mobile homes or Not Included. 50%of the net profits(2). SIS.000,000 related retail, and several restaurants Possible future ste residential units. for the Newport Nautical Museum. Keeps all mobile home sites. Builds new on -site Legion F. RHO Communities Hall- Adds a boutique 100 room hotel. restaurant. two 58 mobile homes. S100,000 down payment. TOT and sales lazes of $4 700,000(3' story parking garage, reconfigures recreation areas, and 5700,000 to$1.100,000(l) 5360,000. , limit expansion of the existing manna Proposes a 156 villa styled resod hotel, restaurant, limited retail. redeveloped manna with additional visilpr docks. Up No moble homes or TOTandsaleslaxesof G. Sutherland Talla Hospitality to 20 of the rooms could be used as time share units residential units 5800,000 to SI.400,000 SI.268,184 to S2,222.852 530,000,000 subject to TOT. Would pay up to S500,000 to relocate Amemmn Legion or relocate onsde Conhnuanon of the mobile home use with some minor 75%of the grass Income of 5% of the gross sales H1. Term Vista Management Improvements to landscaping. beach access, and 58 mobile homes. the property we minimum price of all mobile home $25,000 additional public parkinq of S1,000,000. sales. Same as above but would reconfigure tennis courts and 75%of the gross Income of 5%of the gross sales H2. Term Vista Management add new mobile home sites where the Gid Scout House 68 to 70 mobile homes the propenyors minimum pnceofalimoWehome 5400,000(4) and City maintenance building are currently located. of51,130,000(4), sales Notes. (1) Them would also be revenue generefedfrom the remaining motile hone sites (2) Assumes that the City wood take a 50%ownership In the pm)ect (a) Does cat lnclWe hotN development roses. (4) Daveloper ivoidd request a rent crein to cover dre capital and finanong c as s, Implementation Schedule As seen as lease Is signed. 10 months for construction 2 years for entitlement and 16 months for construction. Not Included. Operating ProForma Lease Terms Exislmg. Longterm Lease. Included. Lease. (No tern given) Included. 65Year Lease. Partial mati mialm Infon. Does not apply. Not Included. Noltntluded. SOYear Lease. 2 Years. Nollncluded 55Year Lease. 2 Years, 3 Months Included. 60 Year Lease. As soon as lease is Included. Lease. (No term signed. given) Months. Included. Lease. (No term given) • 0 MEMORANDUM DATE: April 10, 2000 TO: David Kiff, Deputy City Manager Robin Clauson, Assistant City Attorney FROM: Vickie Talley, Principal Talley and Associates, Inc. RE: Relocation Impact Report Preparation for Marinapark Mobilehome Park Introduction/Professional Services Agreement We have had an opportunity to review the expired tenant lease and a draft (may not be the final) of a proposed amendment and lease extensions you gave us when we met in February. Additionally, we have received and reviewed the Professional Services Agreement you sent us in March. We have the following issues with the draft Professional Services Agreement that will need to be remedied prior to our beginning the project. Page 1 A Scope of Services needs to be agreed upon and attached as Exhibit "A". Our preference is to conduct the project in two phases as noted on the attached April 10 Draft Scope of Work. Page 1 The Term needs to be modified. See Draft,Scope of Work or modify. Page 2 We are unable to quote a not to exceed figure less -than $75,000 without having the opportunity of performing some preliminary research on the project that will require approximately 20 - 30 hours of work rats fee and expenses not to exceed $5,000. The benefit of an initial due diligence period (Phase I) will enable us to provide a not to exceed fee and a realistic time frame for the preparation of a complete relocation impact report. It is anticipated that as a result of Phase I we could recommend that an independent economic financial analyst for inclusion in the relocation impact (closure) report conduct a study. If the current contract were used, the cost of this consultant as a subcontractor to Talley and Associates, Inc. would make up a considerable portion of the $75,000 not to exceed fee. Our preference would be to have the City contract independently with a consultant to provide this information for the relocation impact report. Page 5 #12 - Hold Harmless clause is unacceptable. Page 8 #23 (B) - Indemnify and Hold Harmless City unacceptable. Page 10 #31- Patent Indemnity unacceptable Scope of Work We are recommending that the work be done in two phases, as follows: Phase I Fee not to exceed $5,000 Consultant will evaluate the level of difficulty anticipated in the preparation of the report and in the success of finalizing closure and make specific recommendations on the estimated time to prepare the report and close the park It is anticipated that an outside economist may need to be retained to perform a comprehensive and independent study on the actual amount of money saved. Phase ll Fee set at not to exceed amount determined dwin Phase I. Research and work with the city and enants to ermine the steps necessary and required to close the park The report will analyze vanou ure options and make recommendations and most likely include an independent economic study/analysis by an outside economist. PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, entered into this day of March, 2000, by and between CITY OF NEWPORT BEACH, a Municipal Corporation (hereinafter referred to as "City"), and Talley and Associates, Incorporated whose address is 500 North State College Boulevard, Suite 1020, Orange, California, 92868,- (hereinafter referred to as "Consultant"), is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Consultant to develop a Relocation Impact Report for the property known as Marinapark and related services upon the terms and conditions contained in this Agreement. ' C. The principal member of Consultant is, for -purpose of this Project, Vicky Talley. D. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to contract with Consultant under the terms of conditions provided in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as follows: 1. TERM The term of this Agreement shall commence on the _th Day of March, 2000, and shall terminate on the _th Day of June, 2000, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the duties set forth in the scope of services, attached hereto as Exhibit "A" attached hereto and incorporated herein by reference. 3. COMPENSATION TO CONSULTANT City shall pay Consultant .for the services in accordance with the provisions of this Section and the scheduled billing rates, attached hereto .as Exhibit "B" and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without prior written approval of City. Consultant's compensation for all work performed in accordance with this Agreement shall not exceed the total contract price of dollars ($_). The Deputy City Manager shall have the authority to authorized work beyond this amount, not to exceed an additional $ 3.1 Consultant shall maintain accounting records of its billings which includes the name of the employee, type of work performed, times and dates of all work which is billed on an hourly basis and all approved incidental expenses including reproductions, computer printing, postage and mileage. 3.2 Consultant shall submit monthly invoices to City payable by City within thirty (30) days of receipt of invoice subject to the approval of City. 3.3 Consultant shall not receive any compensation- for extra work without prior written authorization of City. Any authorized compensation shall be paid in accordance with Exhibit" B". 3.4 City shall reimburse Consultant only for those costs or expenses which have been specifically approved in this Agreement, or specifically approved in advance by City. Such cost shall be limited and shall include nothing more than the following costs incurred by Consultant: A. The actual costs of subconsultants for performance of any of the services which Consultant agrees to render pursuant to this Agreement which have been approved in advance by City and awarded in accordance with the terms and conditions of this Agreement. B. Approved computer data processing and reproduction charges. C. Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Consultant in the performance of this Agreement. 3.5 Notwithstanding any other paragraph or provision of this Agreement, beginning on the effective date of this Agreement, City may withhold payment of ten percent (10%) of each approved payment as approved retention until all services under this Agreement have been substantially completed. r 4.. STANDARD OF CARE 4.1 All of the services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with the community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by City nor have any contractual relationship with City. Consultant represents and warrants to City that it has or shall obtain all licenses, permits, qualifications and approvals required of its profession. Consultant further represents and warrants that it shall keep in effect all such licenses, permits and other approvals during the term of this Agreement. 4.2 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed, to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's work promptly, or delay or faulty performance by City, contractors, or governmental agencies, or any other delays beyond Consultant's control or without Consultant's fault. 5. INDEPENDENT PARTIES City retains Consultant on an independent contractor basis and Consultant is not an employee of City. The manner and means of conducting the.work are under the control of'Consultant, except to the extent they are limited by statute, rule or'regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control• over the details in means of performing the work provided that Consultant is compliance with the terms of this Agreement. Anything in this Agreement which may appear to give City the right to direct Consultant as to the details of the performance of the services or to exercise a measure of control over Consultant shall mean that Consultant shall follow the desires of City only with respect to the results of the services. 6. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator, and any other agencies which may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Consultant on the Project. 7. PROJECT MANAGER Consultant shall assign the Project to a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Project term. Consultant has designated Vicky Talley to be- its Project Manager. Consultant shall not bill any personnel to the Project other than those personnel identified in Exhibit "B", whether or not considered to be key personnel, without City's prior written approval by name and specific hourly billing rate. Consultant shall not remove or reassign any personnel designated in this Section or assign any new or replacement person to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to removal or assignment of non -key personnel. Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 8. TIME OF PERFORMANCE Time is of the essence in the performance of the services under this Agreement and the services shall be performed by Consultant in accordance with Exhibit A. The failure by Consultant to strictly adhere to the schedule, may result in termination of this Agreement by City, and the assessment of damages against Consultant for delay. Notwithstanding the foregoing, Consultant shall not be responsible for delays which are due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the services to'be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 8.1 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition which purportedly causes a delay, and not later than the date upon, which performance is due. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays, which are beyond Consultant's control. 8.2 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand delivery or mail. 9. CITY POLICY Consultant will discuss and review all matters relating to policy and project direction with the Project Administrator in advance of all critical decision points in order to ensure that the Project proceeds in a manner consistent with City goals and policies. 10. CONFORMANCE TO APPLICABLE REQUIREMENT All work prepared by Consultant shall conform to applicable city, county, state and federal law, regulations and permit requirements and be subject to approval of the Project Administrator and City. 4 11. PROGRESS. Consultant is responsible to keep the Project Administrator and/or his/her duly authorized designee informed on a regular basis regarding the status and progress of the work, activities performed and planned, and any meetings that have been scheduled or are desired. 12. HOLD HARMLESS Consultant shall indemnify, defend, save and hold harmless City, its City Council, boards and commissions, officers and employees from and against any and all loss, damages, liability, claiyns, allegations of liability, suits, costs and expenses for damages of any nature what 6ever, including, but not limited to, bodily injury, death, personal injury, property da ages, or any other claims arising from any and all acts or omissions Of Consultant, its mployees, agents or subcontractors in the performance of services or work conducte or performed pursuant to this Agreement. This indemnity shall apply even in the a ent of negligence of City, or its employees, or other contractors, excepting only the so negligence or willful misconduct of City, its officers or employees, and shall include orneys' fees and all other costs incurred in defending any such claim. Not ' g in this indemnity shall be construed as authorizing, any award of attorneys' fees in'any action on or to enforce the terms of this Agreement. 13. INSURANCE Without limiting consultant's indemnification of City, and prior to commencement of work, Consultant shall obtain and provide and maintain at its own expense during the term of this Agreement policy or policies of liability insurance of the type and amounts described below and satisfactory, to City. Certification of all required policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be .filed with City prior to exercising any right or performing any work pursuant to this Agreement. Except workers compensation, all insurance policies shall add City, its elected officials, officers, agents, representatives and employees as additional insured for all liability arising from Consultant's services as described herein. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Bests Key Rating Guide: unless otherwise approved by the City Risk Manager, A. Worker's compensation insurance covering all employees and principals of Consultant, per the laws of the State of California. B. Commercial general liability insurance covering third party liability risks, including without limitation, contractual liability, in a minimum amount of $1 million combined single limit per occurrence for bodily injury, personal 5 • injury. and property damage. If commercial general liability insurance or other form with a general aggregate is used, either the general aggregate shall apply separately to this Project, or the general aggregate limit shall be twice the occurrence limit. C. Commercial auto liability and property insurance covering any owned and rented vehicles of Consultant in a minimum amount of $1 million combined single limit per accident for bodily injury and property damage. Said policy or policies shall be endorsed to state that coverage shall- not be canceled by either party, except after thirty-(30) days' prior notice has been given in writing to City. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of Consultant's operation hereunder. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. Consultant agrees that, in the event of loss due to any of the perils for which it has agreed to provide comprehensive general and automotive liability insurance, Consultant shall look solely to its insurance for recovery. Consultant hereby grants to City, on behalf of any insurer providing comprehensive general and automotive liability insurance to either Consultant or City with respect to the services of Consultant herein, a waiver of any right of subrogation which any such insurer of said Consultant may acquire against City by virtue of the payment of any loss under such insurance. 14. PROHIBITION AGAINST TRANSFERS Consultant shall not assign, sublease, hypothecate or transfer this Agreement or any for the services to be ,performed under this Agreement, directly or indirectly, by operation of law or otherwise without prior written consent of City., Any attempt to do so without consent of City shall be null and void. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint -venture or syndicate or cotenancy, which shall result in changing the control of Consultant, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power, or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. 15. OWNERSHIP OF DOCUMENTS Each and every report, draft, work product, map, record and other document reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection with this Agreement shall be the exclusive property of City. N Documents, including drawings and specifications, prepared by, Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. Consultant shall, at such time and in such form as City may require, furnish reports concerning the status of services required under this Agreement. 16. CONFIDENTIALITY The information, which results from the services in this Agreement, is to be kept confidential unless the release of information is authorized by City. 17. CITY'S RESPONSIBILITIES In order to assist Consultant in the execution of his responsibilities under this Agreement, City agrees to provide the following: A. Access to, and upon request of Consultant, one copy of all existing record information on file at City. Consultant shall be entitled to rely upon the accuracy of data information provided by City or others without independent review or evaluation. City will provide all such materials in a timely manner so as not to cause delays in Consultant's work schedule. B. Blueprinting, CADD plotting, copying reproduction company for each of the be required to coordinate the required company. All other reproduction will and as defined above. 18. ADMINISTRATION and other services through City's required submittals. Consultant will submittals with City's reproduction be the responsibility of Consultant This Agreement will be administered by the City Manager's Office. David Kiff, Deputy City Manager, shall be considered the Project Administrator and shall have the authority act for City under this Agreement. The Project Administrator or his authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 19. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records during normal business hours. Consultant shall allow inspection of all work, data, documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 20. WITHHOLDINGS City may withhold payment of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or his designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of seven percent (7%) per annum from the date of withholding of any amounts found to have been improperly withheld. 21. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than would have resulted if there were not errors or omissions in the work accomplished by Consultant, the additional expense shall be borne by Consultant. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 22. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ, other consultants in connection with the Project. 23. CONFLICTS OF INTEREST A. The Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act"), which (1) requires such persons to disclose financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making decisions that will foreseeably financially affect such interest. B. If subject to the Act, Consultant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for termination of this Agreement by City. Consultant shall indemnify and 6 hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. 24. SUBCONSULTANT AND ASSIGNMENT A. Except as specifically authorized under this Agreement, the services included in this Agreement shall not be assigned, transferred, contracted or subcontracted without prior written approval of City. 25. NOTICES All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in, the United States mail, postage prepaid, first class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: City of Newport Beach City Manager's Office P. O. Box 1768 Newport Beach, CA, 92658-8915 949-644-3002(phone) 949-644-3020 (fax) All notices, demands, requests or approvals from City to Consultant shall be addressed to Consultant at: Talley and Associates 500 North State College Blvd, Suite 1020 Orange, CA 92868 714-935-1999 (phone) 714-935-1145 (fax) 26. TERMINATION In the event either part hereto fails or refuses to perform any of the provisions hereof at the time'and in the manner required hereunder, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) days, or if more than two (2) days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the nondefaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. M • •, 26.1 City shall have the option, at its sole discretion and without cause, of ,terminating this Agreement by giving seven (7) days' prior written notice to Consultant as provided herein. Upon termination of this Agreement, City shall pay to the Consultant that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. 27, COMPLIANCES Consultant shall comply with all laws, state or federal and all ordinances, rules and regulations enacted or issued by City. 28. WAIVER A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 29. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the Parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. Any modification of this Agreement will be effective only by written' execution signed by both City and Consultant.. 30. OPINION OF COST Any opinion of the construction cost prepared by Consultant represents his judgment as a design professional and is supplied for the general guidance of City. Since Consultant has no control over the cost,of labor and material, or over competitive bidding or market conditions, Consultant does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. 31. PATENT INDEMNITY The Consultant Irll'in emnlfy City, employees against li bility, include costs, ft patent, -d mark, or copyright infix emen , drayvings and specifications provided ridetl officers, represe tatives and it of any United Cates' letters sts, contained in Consultant's 10 6 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: By: Robin Clauson Assistant City Attorney for the City of Newport Beach ATTEST: By: LaVonne Harkless City Clerk CITY OF NEWPORT BEACH A Municipal Corporation -By: Homer L. Bludau City Manager for the City of Newport Beach CONSULTANT By: EiE r .t CITY OF NEWPORT BEACH MEMORANDUM TO: Marinapark Homeowner FROM: Dave Kiff, Deputy City Manager DATE: March 17, 2000 RE: Revised Amendment and Extension of Lease ("Lease Amendment") If you were able to attend our "all hands" meeting on February 26, 2000, you will recall that we talked about sending you a revised Amendment and Extension of Lease ("Lease Amendment") that reflects some of the things we discussed that Saturday morning. The City Council approved our changes as proposed within a new Lease Amendment at Tuesday night's meeting (3/14). I have enclosed two documents with this memo - the first document is a "strikeout and insert" version (blue cover sheet) that shows how and where we changed the first version of the Lease Amendment. Please use this document only for your review and information. The second document is the Lease Amendment (green cover sheet) that I'd like you to sign. This document (without the strike -outs) reflects the "clean' version of the first document. To restate, please review the first (blue) to see what we did, but sign the second (green). Before you get to the signature page, please print your name in the blank near the top of the first page (we'll add the date when we execute it) and write your space number in the blank on page two. Please note that we did not attach Exhibit B (the Rules and Regulations) or Exhibit C (the Mobilehome Residency Law) to these versions of the Lease Amendment. Bill Mecham of Bendetti Management will be working with your representatives to re -write and update the Rules and Regulations. Once finalized, the revised Rules and Regulations will be attached to the document that we place in the City's official files. Similarly, you have already received a copy of the Mobilehome Residency Law - rather than redistribute those many pages, we will add them to the City's official files as a Master Copy. If you'd like another copy of Exhibit C at any time, you can call Bill at 949/261-6111. Please sign the Lease Amendment by March 31, 2000. Please make a copy of the lease for your own files. When you ve made your copy, please either mail the signed lease to us at the below address OR drop it by City Hall (same address) OR give it to Joe Albano at the Park. The address for mailing is: Continued on other side.... City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659-1768 �. i+f _1�_+ Marinapark Menio March 17, 2000 Page 2 City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 ATTN: Dave Kiff, Deputy City Manager As we have discussed, those homeowners who do not wish to sign the Lease Amendment will be "held over' on the 1985 Lease on a month -to -month basis. If you choose not to sign the Lease Amendment, you will not have the protection against rent hikes that is provided for in the 1985 Lease and the Lease Amendment. As always, please feel free to call me questions or concerns at 949/644-3002. Finally, please accept my sincere thanks for your cooperation and patience through this process. cc: Members of the Newport Beach City Council Homer L. Bludau, City Manager Robin Clauson, Assistant City Attorney Bill Mecham, The Bendetti Company • • • 9nwbziw A."..A. TALLEY&ASSOCIATES, INC. Governmental Relations Management Services - Public Affairs AGREEMENT FOR SERVICES This Agreement, effective as of February 25, 2000, is between TALLEY AND ASSOCIATES, INC., whose address is 500 North State College Boulevard, Suite 1020, Orange, California, 92868 ('TALLEY"), and THE CITY OF NEWPORT BEACH ("CLIENT"), whose address P. O. Box 1768, Newport Beach, CA 92658- 8915,. TALLEY and CLIENT agree as follows: Services. TALLEY agrees to provide to CLIENT advisory services to assist CLIENT in closing the Marinapark mobile home park, including: • Development and implementation of strategies to accomplish CLIENT's goals including the closure of the park. • The preparation of a Relocation Impact Report and other reports as deemed necessary by CLIENT. 2. Compensation. CLIENT agrees to pay TALLEY for the services rendered as part of this Agreement at the following hourly rates: Principal $145.00 Associate $75.00-85.00 Support Staff $45.00 3. Expenses. As part of the services provided, TALLEY will include the costs of all local telephone charges and travel within Orange county. TALLEY will bill CLIENT the actual costs for long distance telephone and faxing calls, $0.35 per mile for out -of -area travel and $0.10 per copy for copies made in-house and the actual costs for copies made elsewhere, and for any necessary supplies or other expenses. 4. CLIENT's Representative. CLIENT's representative for the purpose of this Agreement is Ms. Robin Clausen, Assistant City Attorney. CLIENT's representative is responsible for providing TALLEY with any direction required regarding the services to be provided by TALLEY. TALLEY agrees to comply with reasonable direction and requests of CLIENT's representative. �42U'5.1999 7114.935.1145 i%'l.Q�L�i 600_North State College_Boulevard., Suite.1020 Orange, California 92868 FROM FAX NO. : 7149351145 Jan. 25 2000 02:55PM P2 • January 25, 2000 Robin Clauson Assistant City Attorney City of Newport Beach P O Box 1768 Newport Beach, CA. 92658-8915 ► 0 WUaD TALLEY&ASSOCIATES, INC. Gomnrucnul Relations • Management Services • Public Aftnirs 14--sr 4iwtX-4, IF r, tJh,r bdryp;�.,l Rer Letter of Qualification Mobile Home Park Closure • Marina Park S,-W(,A. ut.J1r Dear Ms. Clauson: rl, �'' fir' d+6PdJZ This letter responds to your request for information regarding Talley and Associates, Inc.'s experience in the mobile home park industry and specifically mobile home park closures; Talley and Associates, Inc. provides governmental relations and association management services to a variety of real estate oriented clients. I established the firm in 1981 and have specialized in providing services to the mobile home park industry since its inception. We manage a regional and a state wide mobile home park owners' trade association, publish an industry newsletter, and provide a wide range of services to mobile home park owners, iricluding tenant relations, entitlement processing; newsletters, landlord -tenant dispute resolution and park closure coordination. In addition, I am a qualified expert witness on.mobile home park. closures, Bill Talley and L Principals of the firm, are former public officials who maintain our relationships with elected and appointed officials• to better service our clients. I am attaching a partial list of clients. The firm has provided management services to the owners of the following mobile home parks closed in Orange and: Los Angeles. counties: The Change Tree and Lary Living Mobile Home parks in Anaheim, Avalon Mobile Home Park in Carson, Driftwood Mobile Home Park in Huntington Beach, Treasure Island in Laguna Beach, and Oasis Mobile Home Park in Garden Grove. References are of course available. We have provided advisory services to owners considering closures in several other cities. We have assisted a•number of cities in the purchase of eight mobile home parks and -are involved in the potential purchase of a number of mobile home parks by non-profit corporations with the assistance of cities. You specifically asked about the preparation of the conversion impact report according to existing state laws. We can prepare the report and bill on either an hourly or project basis, Our fees are: Principals, S145/hour; Associates, $75-85/hour, and support staff, F45/hour. I will be please to meet with you And discuss how Talley and Associates, Inc. can be of value to your project. Please contact• me at (949) 935-1999. ySincerely, • Vickie M. Talley Principal � 149"5.I999 p4.915.1140 Attachment �!!).�%l r; /"' i• i. 1/600 North Stale College antl yard • Sukc 1020 01 an8e, 0,101 ni, 92848 JAN-25-2000 15:03 7149351145 99% P•02 FROM +: FAX NO. 7149351145 Jan. 25 2000 02:56PM P3 . Ida R Y TALLEY&ASSOCIATES, INC. • _ . , • - _ _ - • • . ' • - • • ; - Gcvcrnmcntal+Relations • 141anagcmenr Scrvicca • Public Affairs 3MMulti Media Advantage Management Affoi*ble Housing Solutions Allen, Matkins, Leek, Gamble•&Mallory Aloha Palms Mobile Home Park Americana Land Company and D.L. Bendetti Company Arnel Development Beachwood Mobilehome•Park BYCO Developers Californians forMobilehome Pairaws; Prcp'1.99-(1'996) California Mobilchome Parkowners Association (CMPA) California Manufactured Musing Community Advocates Campanula Properties Champion -Development Company Charles Abbott Associates, Inc. City of Anaheim City of chino Hills City of Dana Point City of Garden Grove City of Mission Viejo City of Oceanside CityofRanc6oMirage' City of Rancho Santa Margarita Collage, The Wagner House Community Housing Foundation C3press Economic Development Council' (CEDC9 D. Wong, Avalon Carson MHP DelPrado Company Dunex, Inc, Tustin Village MHP FYiendly village Mobile•Home,Park Gartner Properties Huntington Itcach Company imperial Escondido Mobile Estates Inland Empire -Mobile Home Park Owners jiffy Lube Kort and Scott Investments La Habra School District Magnolia Lane Mobilehome Park , Manor Mobile Home Park Manufactured Housing Educational Trust 0111M Meadowlark Mobile Home Park Mel Mack Company MHBT Political Action Committee NAIOPPoltical Action Committee, Orange County Chapter National -Association of industrial and office Propertres, Orange County (NAIOI) Nossman, Guthner, Knox & Elliott OlanderEnterprises Orange County Housing Providers (OCHP) Pountney&Associates, Inc. Ralphs Grocery Company RHC Commutufies SAFCO,Development Properties, Inc. Sandalwood Mobilehome Park SeaAlra•Mobile Home- Park Sierra Management Group St. Clair Property Management Stooraa, Ziegaus & Metrger TAWA Supermarket, Inc. The Orange Tree Mobile Home Park/Stawrest, Inc. The Richard A'. Hall' Company and TYeasure Island Associates The Wessell Company Union Bank Urban Land Institute, Orange County District Council (UL() Vista Equities LLC Warland properties Waste Management of Orange County WEBSCO Properties Western Waste / I F5.1999 114.9i6.1145 9//.(fir 600 N0,11, stntc Collage Buuluvartl • suite 1020 JAN-25-2000 15:03 7149351145 99i P.03 FROM ' FAX NO. : 7149351145 h r J TALLEY& ASSOCIATES, INC. Covemmental Relations • Management Services • Public Affairs 500 North State College Boulevard • Suite 1020 Orange, California 92868 714.935.1999 - 714.935.1145 T o . 20&40 CJa to e7n-- FaxNumber:94(9 6q'13/39 Froze: M e s s a g e: (Q/L( ct�r7 GG�P.2 P Jz j1�P�n Aa . S. l'Yt� Jan. 25 2000 02:55PM P1 Date: I as=GO P a Q' e s : ✓ aneluding covor shoot) If you do not receive all pages, please call Immediately. Unless otherwise indicated or obvious from the nature of this transmittal, the information contained in this facsimile message is privileged and confidential information intended for the use of the individual or entity named above. If the reader of this message is not the intended recipient, employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error or are not sure whether it is privileged, please immediately notify us by telephone, and return the original messages to us at the above address. Thank you. JAN-25-2000 15:02 7149351145 P.01 t • !ice `3 a� vww� � - Rout bS b%W h; w4- RI bW 0 CITY OF NEWPORT BEACH MEMORANDUM TO: Marinapark Homeowner FROM: Dave Kiff, Deputy City Manager DATE: February 15, 2000 RE: Proposed Amendment and Extension of Lease On February 8, 2000, the Newport Beach City Council agreed to offer you and your neighbors at Marinapark an extension to your lease (first entered into in 1985 for many Marinapark residents). The enclosed Amendment and Extension of Lease (" Lease Extension") would, with your signature, extend your tenancy at Marinapark for a period of two years. The Council also indicated its interest in maintaining the current property management firm, The Bendetti Company, for the duration of the Lease Extension. The terms and conditions of the Lease Extension are very similar to the 1985 Lease. The Lease Extension preserves the rental and utility rate structure of the 1985 Lease and eliminates the March 15, 2000 park closure provision of the 1985 Lease. The Lease Extension also commits the City to cooperate with the tenants in efforts to convince the State Lands Commission that Marinapark is "uplands" and to fairly consider proposals for a continuation of the mobilehome use of Marinapark. Please note that the Lease Extension also continues the language in the 1985 Lease that specifically exempts the City from providing relocation assistance upon the Lease Extension's cessation in 2002. Those homeowners that do not wish to sign this the Lease Extension will be"held over" on the 1985 Lease on a month -to -month basis. If you choose not to sign the Lease Extension, you will not have the protection against rent hikes that is provided for in the 1985 Lease and the Lease Extension. I realize that all of this may raise questions as to what's best for you. As such, we have scheduled a Marinapark Homeowners' Meeting for Saturday, February 26 at 10:00 a.m. at the City Council Chambers at 3300 Newport Boulevard. In the meantime (and after the meeting, too), please feel free to direct questions or concerns to me at 949/644-3002. Please sign and return the Lease Extension to me on or before March 15, 2000. cc: Members of the Newport Beach City Council Homer L. Bludau, City Manager Robin Clauson, Assistant City Attorney Robert Bendetti and Bill Meecham, The Bendetti Company City Hall • 3300 Newport Boulevard • Post Office Box 1768 . Newport Beach, California 92659.1768