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2002 JUN 04 CC PACKETAGENDA EL SEGUNDO CITY COUNCIL COUNCIL CHAMBERS - 350 Main Street The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items Unless otherwise noted in the Agenda, the Public can only comment on City - retated business that is within the jurisdiction of the City Council and /or items listed on the Agenda during the Public Communications portion of the Meeting Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item The time limit for comments is five (5) minutes per person Before speaking to the City Council, please come to the podium and state Your name and residence and the organization you represent, if desired Please respect the time limits Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2 00 p m the prior Tuesday) The request must include a brief general description of the business to be transacted or discussed at the meeting Playing of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days Prior to the meetmq and they do not exceed five (5) minutes in length In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524 -2305 Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, JUNE 4, 2002 — 5:00 P.M. Next Resolution # 4262 Next Ordinance # 1346 5:00 P.M. SESSION CALL TO ORDER ROLL CALL CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, at seg) for the purposes of conferring with the City's Real Property Negotiator, and /or conferring with the City Attorney on potential and /or existing litigation, and /or discussing matters covered under Government Code Section §54957 (Personnel), and /or conferring with the City's Labor Negotiators, as follows CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956 9(a)) 1 City of El Segundo v South Bay Regional Public Communications Authority LASC, YC040688 2 City of El Segundo v State Water Resources Control Board, SWR CB /OCC No A- 1448(b) - ci 1 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code §54956 9(b) -1- potential case (no further public statement is required at this time), Initiation of litigation pursuant to Government Code §54956 9(c) none DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) — None. CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957 6) — None. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956 8) — None SPECIAL MATTERS — None 6;00 P.M. SESSION Interview candidates for the Recreation and Parks Commission, the Library Board of Trustees, the Planning Commission and the Senior Citizen Housing Corporate Board d2 AGENDA EL SEGUNDO CITY COUNCIL COUNCIL CHAMBERS - 350 Main Street The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items Unless otherwise noted in the Agenda, the Public can only comment on Crty- related business that is within the jurisdiction of the City Council and/or items listed on the Agenda during the Public Communications portion of the Meeting Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item The time limit for comments is five (5) minutes per person Before speaking to the City Council, please come to the podium and state Your name and residence and the organization you represent, if desired Please respect the time limits. Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2 00 p m the prior Tuesday) The request must include a brief general description of the business to be transacted or discussed at the meeting. Playing of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days Dnor to the meetina and thev do not exceed five (5) minutes in lenoth In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524 -2305. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, JUNE 4, 2002 — 7:00 P.M. Next Resolution # 4262 Next Ordinance # 1346 7:00 P.M. SESSION CALL TO ORDER INVOCATION — Pastor Mark Koukl of Hope Chapel Del Rey PLEDGE OF ALLEGIANCE — Council Member Kelly McDowell PRESENTATIONS — (a) Proclamation declaring June, 2002 as Skate Awareness Month in support of safe and responsible skating practices (b) Recognition of the El Segundo Community Cable as the recipient of the 15/ place STAR Award in Public Safety Category for "Every Fifteen Minutes" with one minute video clip M, (c) Recognition of Dina Cramer, Ei Segundo Senior Librarian, as one of ten recipients of the El Camino College 2002 Distinguished Woman Award and induction into the El Camino College's Women's Wall of Fame (d) Commendation to Liz West for her dedicated and outstanding service to the City of El Segundo as the 2001 -2002 President of the El Segundo Chamber of Commerce. (e) A five- minute Presentation of Worker's Compensation by Jody Gray, President of Southern California Risk Management Associates (SCRMA), the City's third party administrator for self- funded workers' compensation insurance. (Consent Item #6) ROLL CALL PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves poor to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed. A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. Recommendation — Approval B. SPECIAL ORDERS OF BUSINESS — PUBLIC HEARING Consideration and possible action regarding a lease between the City of El Segundo and 612 Twin Holdings LLC for 100 parking spaces in a new 176 space parking facility to be constructed at 121 W. Grand Avenue. The cost includes a one -time lease payment not to exceed $1,100,000 for the construction of the City's 100 parking spaces plus annual lease payments of $194,000 and operating and maintenance expenses for 34 years. Recommendation — (1) Open public hearing, (2) Discussion; (3) Reading of Resolution approving environmental determination by title only, (4) Approve the attached lease and authorize the Mayor to sign; (5) Alternatively, discuss and take other action related to this item. 4 f14 C. UNFINISHED BUSINESS 2. Consideration and possible action regarding approval of conceptual design for the Imperial Avenue Vista Upgrade (Imperial Avenue and Sheldon Street) — Project No. PW 01 -18 — Approved Capital Improvement Program. Recommendation — (1) Approve conceptual plans for Imperial Avenue Vista Upgrade; (2) Alternatively, discuss and take other action related to this item. D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS Consideration and possible action regarding the announcement of appointments to the various Committees, Commissions and Boards. Recommendation — (1) Announce appointments and respective terms of office; (2) Alternatively, discuss and take other action related to this item. E. CONSENT AGENDA All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for discussion of an item Is made, the item(s) will be considered individually under the next heading of business 4. Warrant Numbers 2525578 to 2525899 on Register No. 16 in the total amount of $1,274,751.50 and Wire Transfers from 5/1112002 through 05/2412002 in the amount of $1,068,611.56. Recommendation — Approve Warrant Demand Register and authorize staff to release. Ratify Payroll and Employee Benefit checks, checks released early due to contracts or agreement, emergency disbursements and /or adjustments; and wire transfers City Council Meeting Minutes of May 21, 2002. Recommendation — Approval 6. Monthly status report on Capital Improvement Program Projects — (No fiscal Recommendation — (1) Receive and file, (2) Alternatively, discuss and take other actions related to this item 05 7. Consideration and possible action regarding Workers' Compensation Presentation by Jody Gray, President of Southern California Risk Management Associates (SCRMA), the City's third party administrator for self funded workers' compensation insurance. Recommendation — (1) Receive and file; (2) Alternatively, discuss and take other action related to this item 8. Consideration and possible action regarding adoption of plans and specifications for traffic signal and intersection improvements for Sepulveda Boulevard at Grand Avenue and El Segundo Boulevard — Project No. PW 02 -15 — Approved Capital Improvement Program (Estimated Cost $783,000.00 - City share from Traffic Mitigation Fees $387,500.00). Recommendation — (1) Adopt plans and specifications, (2) Authorize staff to advertise the project for receipt of construction bids, (3) Alternatively, discuss and take other action related to this item. 9. Consideration and possible action for award of contract to Valley Crest Landscaping Company for the landscaping of Sepulveda Boulevard median islands, between Rosecrans Avenue and Imperial Highway — Project No. PW 0244 — Approved Capital Improvement Program (Contract Amount $585,340.00). Recommendation — (1) Reject the low bid of KCI Kadeskint -Crum, Inc., as being non- responsive, (2) Award contract to the lowest responsible bidder, Valley Crest Landscaping Company, (3) Authorize the City Manager to execute the construction contract on behalf of the City, (4) Authorize the City Manager to execute a Professional Services Agreement with CBM Consulting, Inc , to provide inspection services for an amount not to exceed $75,000 00, (4) Alternatively, discuss and take other action related to this item 10. Consideration and possible action for award of contract to Mariposa Horticultural Enterprises, Inc., for Acacia Park irrigation system replacement — Project No. PW 02 -13 — Approved Capital Improvement Program (Contract Amount $17,228.00). Recommendation — (1) Award contract to Manposa Horticultural Enterprises, Inc., in the amount of $17,228.00; (2) Authorize the City Manager to execute the contract on behalf of the City, (3) Alternatively, discuss and take other action related to this item. 11. Consideration and possible action regarding a request for the City Council to approve the authorization of AB 2766 funds to partially fund the purchase of a new alternative fuel shuttle bus (Fiscal Impact $5,000.00). Recommendation — (1) Authorize the approval to use AB 2766 funds to supplement the additional funds to purchase a new alternative (propane) power shuttle bus, (2) Alternatively, discuss and take other action related to this item. 6 n6 12. Consideration and possible action to reject all bids from RFP No. 02 -03 (Police Towing and Storage Services) and authodie the Police Department to issue a new RFP to additional vendors. Recommendation — (1) It is recommended that the City Council reject all bids submitted for RFP No 02 -03, (2) Alternatively, discuss and take other related to this item CALL ITEMS FROM CONSENT AGENDA NEW BUSINESS — F. REPORTS — CITY MANAGER — NONE G. REPORTS — CITY ATTORNEY — NONE H. REPORTS — CITY CLERK — NONE REPORTS — CITY TREASURER — NONE J. REPORTS — CITY COUNCIL MEMBERS Council Member McDowell — Council Member Gaines — Council Member Wernick — Mayor Pro Tern Jacobs — Mayor Gordon — PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council wig respond to comments after Public Communications is closed MEMORIALS 7 67 CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et sue) for the purposes of confemng with the City's Real Property Negotiator- conferring with the City Attorney on potential andlor existing litigation, andlor discussing matters covered under Government Code Section §54957 (Personnel), andlor conferring with the City's Labor Negotiators REPORT OF ACTION TAKEN IN CLOSED SESSION (If required) ADJOURNMENT °OSTED DATE TIME NAME Wo EL SEGUNDO CITY COUNCIL MEETING DATE: June 4, 2002 AGENDA ITEM STATEMENT AGENDA HEADING Special Orders of Business- Public Hearing AGENDA Consideration and possible action regarding a lease between the City of El Segundo and 612 Twin Holdings LLC for 100 parking spaces in a new 176 space parking facility to be constructed at 121 W Grand Avenue The cost includes a one -time lease payment not to exceed $1,100,000 for the construction of the City's 100 parking spaces plus annual lease payments of $194,000 00 and operating and maintenance expenses for 34 years RECOMMENDED COUNCIL ACTION. Open Public Hearing, Discussion, Reading of Resolution approving environmental determination by title only, Approve the attached lease and authorize the Mayor to sign, Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION On May 7, 2002, City Council directed the City Attorney to prepare a lease between the City of El Segundo and 612 Twin Holdings, LLC The terms of the lease provide for development of a 176 space parking structure at 121 W Grand Avenue of which 100 parking spaces will be available to the City This additional parking will help to fulfill the goals and objectives of the Downtown Specific Plan In addition, this lease meets the full intent of the Grand Avenue District by ensuring the development of a market to serve the community Continued ATTACHED SUPPORTING DOCUMENTS Exhibit A — Environmental Assessment No 581 Staff Report, Draft Resolution, and related attachments (Revised Initial Study, Interdepartmental Comments, and Plans) Exhibit B — Lease between the City of El Segundo and 612 Twin Holdings LLC FISCAL IMPACT Operating Budget $1,100,000 Infrastructure Replacement Fund; $194,000 annually General Fund for 34 years. Amount Requested $7,696,000 Account Number N/A Project Phase Approval of Parking Garage Lease Appropriation Required _X_ Yes _ No ($1, 100,000 FY 2002 -2003 Infrastructure Replacement Fund) ORIGINATED BY DATE S-/3o/ C-Z- J es M Hansen, Director of Community, Economic and Development Services IEy. .ED BY DATE s� M ry SiVn" ity M ger 91 R The developer, 612 Twin Holdings LLC, also intends to construct approximately 7,000 square feet of new retail on Grand Avenue and anticipates leasing the existing grocery store building to Cooke's Family Market for a minimum often years In the event Cooke's does not execute a lease with the owner, the City will have no obligation to take possession of the parking spaces unless the market is leased to first class, full service grocery supermarket for a ten year term and the City has approved of the operator The remaining 76 stalls in the parking structure would be used to meet the parking requirements of the market and retail development The developer would pay the cost of constructing those 76 parking stalls The City and 612 Twin Holdings, LLC would pay pro rata costs of operating and maintaining the parking facility, including such costs as personnel costs, janitorial services, repairs, insurance (including deductibles), utilities, landscaping, property taxes (to the extent such are imposed), etc Those costs have been estimated at $25,000 /annum If revenues from future parking fees related to the City's spaces do not cover the annual payment, general fund resources (Including the Economic Development Division's advertising /publishing account) will be utilized A program such as a Parking Business Improvement District (PBID) is currently under consideration that would generate revenue from parking demand resulting from the addition of second stories and new restaurants, for example Until such a program is formalized, the exact amount of revenue generated from new development is unknown. The term of the proposed lease Is 34 years and the City has the option to purchase the parking structure near the end of the lease term for $200,000 In addition to operating costs, the costs associated with the lease include a one -time lease payment, not to exceed $1,100,000 or $11,000 /space, for the construction of the city's 100 parking spaces, and an annual lease payment of $194,000 for the 34 year lease term for a combined total of $7,696,000 Staff has prepared an Environmental Assessment (EA No 581) attached as Exhibit A, which contains a full description of the proposed structures and an evaluation of the environmental Impacts Staff recommends that the City Council adopt the draft resolution approving a Mitigated Negative Declaration of Environmental Impacts for the construction of the proposed project and the leasing of parking spaces within the proposed parking structure by the City of El Segundo P \Planning & Building Safety \PROJECTS \576 - 599 \EA - 581 \EA -581 ais doc 1 n CITY OF EL SEGUNDO CITY COUNCIL STAFF REPORT PUBLIC HEARING: SUBJECT: APPLICANT. PROPERTY OWNER: DEVELOPER: REQUEST- PROPERTY INVOLVED: I. Introduction June 4, 2002 Environmental Assessment No. 581 City of El Segundo M & B Trust 612 Twin Holdings, LLC New 7,000 square foot commercial building, parking garage and lease of parking spaces by City. 121 W. Grand Avenue A developer, 612 Twin Holdings LLC, is proposing to construct a structure consisting of a one -story 7,000 square foot retail building and a 2.5 level parking garage with 176 parking spaces The proposed structure would be located on an existing surface parking lot The parking structure would provide 76 parking spaces for the required parking for the new retail budding and an existing vacant 16,530 square foot former grocery store budding on the property Additionally, the City of El Segundo would lease 100 parking spaces in the structure for public parking for the downtown area of El Segundo. A term of 34 years is proposed for the lease with the City The City would have the option to purchase the parking structure near the end of the term of the lease II Recommendation Staff recommends that the City Council review the facts as contained within this report, and adopt Resolution No _ (Exhibit A), approving Environmental Assessment No 581 III. Background The proposed parking structure would be approximately 27 feet tall at the northernmost portion facing the vacant grocery store building A portion of the structure facing Grand Avenue would have a second level above the new retail 1 t� 7,000 square foot retail structure The height of the structure along Grand Avenue would be approximately 17 feet Access to the lower level of the structure would be from Richmond Street and access to the upper levels would be from Grand Avenue The structure would be set approximately 20 feet from the face of the existing retail budding The project is located in the Grand Avenue District of the Downtown Specific Plan area 111. Analysis Site Description and Surrounding Land Uses The project site is currently developed with a one -story, 16,580 square foot commercial building that was most recently occupied by a Ralph's Grocery store The building has been vacant for approximately three years A surface parking lot with access from Richmond Street, Grand Avenue and an alley on the west side of the property occupy the rest of the site The property slopes down from south to north with a grade change of approximately seven feet. The proposed project site is generally surrounded by commercial and retail uses The areas located to the south, east and north of the proposed project site are comprised of low -rise commercial buildings with minimal landscaping. Directly across the alley to the west are older one -and two -story retail buildings To the south across Grand Avenue are two -story buildings containing a hotel and retail uses Farther to the south is the historic Richmond Street district, which contains many of the original brick buildings in the downtown area. To the west across Richmond Street are several one -story retail buildings and apartment buildings To the north of the project site is an apartment building and condominium development Surrounding land uses are as described in the following table 2 Land Use Zone North: Residential Multi -Family Residential (R -3) South: Commercial /Office Richmond Street District (RSD) East: Commercial /retail /Office Main Street District (MSD) West: Commercial /Residential North Richmond Street District (NRSD) 2 Zonino Consistenc The zoning designation for the property is Grand Avenue District. The General Plan land use designation for the property is Downtown Specific Plan. The General Plan Land Use designation is consistent with the zoning designations The following applicable site development standards apply to new projects in the GAD Zone 3 13 GAD ZONE PROPOSED REQUIREMENTS STANDARDS PROJECT Building Area 1.0 1 FAR 0.441 (Floor Area Ratio) Building Height 30' -45' max 27' Setbacks Front (Grand Avenue) 0' max 0' Side (East) 0' min 5' (West) 0' min 0' -12' Rear (North) 0' min 0' -20' (Existing) Landscaping a) Vehicular Use Area - 10,000 s f N/A for parking 5% of VUA structure b) Building perimeter - 5' N/A (.Io setback) c) Property perimeter Fully landscaped N/A N/A (no setback) Parking Spaces 46 spaces (Market) 23 spaces (new) 69 spaces total 76 spaces City Lease 100 spaces 176 total Loading Spaces 1 space 2 spaces 3 13 The GAD permits general retail uses The parking structure is considered as an accessory use providing the required on -site parking for the existing retail budding and the proposed retail building The City would lease extra parking spaces being designed into the garage structure This project will meet all development regulation and standards required for development in the GAD The City may sublease parking spaces in the new garage to downtown business owners and make general public parking available to the downtown area Additionally, property owners in the downtown area may also be permitted to locate their required on -site parking for future developments in the proposed parking structure in lieu of providing the parking on their own properties. This arrangement may lead to additional development in the downtown area that would not occur without the proposed lease of 100 parking spaces in the new garage This potential additional development in downtown would still be required to comply with all other development standards for new construction, including maximum densities As a result the potential provision of off -site parking to meet on -site parking requirements by the City would not increase the density permitted in the Downtown area The construction of a parking structure to serve downtown was envisioned in the implementation and financing chapter of the Downtown Specific Plan as a long -term solution to parking demand in the downtown area. Therefore, the lease of parking by the City for future use as required parking for other potential development would conform to the development guidelines in the Downtown Specific Plan. IV. Inter - Departmental Comments The project plans, were circulated to all inter- departmental staff and comments were received from the Police, Fire, and Public Works Departments and the Building Safety Division The Police Department provided recommendations for lighting and security features These comments have been incorporated into the draft resolution as conditions of approval The Fire Department commented on the fire access being from the east and west sides of the new structure and that fire sprinklers would not be required in the parking structure if it is an "open" parking garage The Fire Department also commented that Class III standpipes would be required if the structure is four levels These comments have been incorporated into the draft resolution as conditions of approval The Public Works Department commented on the need for a traffic analysis, relocation of a bus shelter on Grand Avenue, and the need to repair damaged sidewalk and alley pavement The City's traffic engineer consultant prepared trip generation estimates for the project, which indicate that the traffic from the proposed addition of 7,000 square feet of new commercial uses would not generate enough traffic to impact adjacent streets Staff has incorporated the bus shelter comment and pavement repair comments into the conditions of approval The Budding Safety Division commented that a geotechrncal report is required to 0 i A mitigate potential seismic ground shaking Impacts. Mitigation Measure No 3 has been Incorporated Into the conditions of approval to require the submittal of a geotechnical report V. Environmental Review A Draft Initial Study (Exhibit B) was prepared by staff for the project No significant adverse environmental Impacts were identified which could not be mitigated to an Insignificant level, and a Mitigated Negative Declaration of Environmental Impacts is proposed The Draft Initial Study was circulated for Inter - departmental review and comments, as required by City Council Resolution No. 3805 and State CEQA guidelines A Revised Draft Initial Study was prepared which incorporated additional evaluation by the City's traffic engineer consultant on the potential traffic impacts and comments from the Building Safety Division All departments have concurred with the staff recommendation to approve a Mitigated Negative Declaration of Environmental Impact VI. Conclusion Based on the analysis contained In this report, staff recommends that the City Council adopt Draft Resolution No , subject to the conditions contained therein VII. Exhibits A Draft Resolution No B Revised Draft Initial Study C Interdepartmental Comments D Plans Paul Garry, Senior Planner 4 es M Hansen, Director of Community, Eco mi nd Development Services P \Planning & Building Safety\PROJECTS \576 - 599 \EA- 581\EA -581 sr doc 5 15 RESOLUTION NO. _ A RESOLUTION ADOPTED BY THE EL SEGUNDO CITY COUNCIL REGARDING AN APPLICATION FROM THE CITY OF EL SEGUNDO APPROVING ENVIRONMENTAL ASSESSMENT NO. 581 FOR A NEW 176 SPACE PARKING STRUCTURE, 7,000 SQUARE FOOT BUILDING AND CITY LEASE OF 100 PARKING SPACES INSIDE THE PARKING STRUCTURE AT 121 WEST GRAND AVENUE. The City Council of the City of El Segundo does resolve as follows SECTION 1 The City Council finds and declares that A On Apni 22, 2002, the City of El Segundo initiated an application for environmental review of a new 2 5 level, 176 space parking structure, 7,000 square foot commercial budding, and the lease of 100 parking spaces within the new parking structure at 121 west Grand Avenue The developer of the project is 612 Twin Holdings LLC ( "developer"), B The City of El Segundo application was reviewed by City's Department of Community, Economic and Development Services for, in part, consistency with the General Plan and conformity with the El Segundo Municipal Code ( "ESMC ") and Downtown Specific Plan, C In addition, the City reviewed the project's environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq , "CEQA "), the regulations promulgated thereunder (14 Cal Code of Regulations § §15000, et seq., the "CEQA Guidelines "), and the City's Environmental Guidelines (City Council Resolution No 3805, adopted March 16, 1993), D The Department of Community, Economic and Development Services completed its review and scheduled a public hearing regarding the application before this Council for June 4, 2002; E On June 4, 2002, the City Council held a public hearing to receive public testimony and other evidence regarding the application including, without limitation, information provided to the Commission by the City of El Segundo as applicant and 612 Twin Holdings, LLC as developer; F. The City Council considered the information provided by City staff, public testimony, and 612 Twin Holdings, LLC representatives This Resolution, and its findings, are made based upon the evidence presented to the City Council at its June 4, 2002 hearing including, without limitation, the staff report submitted by the Department of Community, Economic and Development Services Page 1 of 9 SECTION 2 Factual Findings The Commission finds that the following facts exist A A developer, 612 Twin Holdings LLC, is proposing to construct a structure consisting of a one -story 7,000 square foot retail budding and a 2 5 level parking garage with 176 parking spaces. The proposed structure would be located on an existing surface parking lot The parking structure would provide 76 parking spaces for the required parking for the new retail building and an existing vacant 16,580 square foot former grocery store building on the property B The City of El Segundo would lease 100 parking spaces in the structure for public parking for the downtown area of EI Segundo A term of 34 years is proposed for the lease with the City The City would have the option to purchase the parking structure near the end of the term of the lease C The proposed parking structure would be approximately 27 feet tall at the northernmost portion facing the vacant grocery store budding. A portion of the structure facing Grand Avenue would have a second level above the new retail 7,000 square foot retail structure The height of the structure along Grand Avenue would be approximately 17 feet. Access to the lower level of the structure would be from Richmond Street and access to the upper levels would be from Grand Avenue The structure would be set approximately 20 feet from the face of the existing retail building. D The project is located in the Grand Avenue District (GAD) of the Downtown Specific Plan area The GAD permits general retail uses The parking structure is considered as an accessory use providing the required on -site parking for the existing retail budding and the proposed retail building The City would lease extra parking spaces being designed into the garage structure This project will meet all development regulation and standards required for development in the GAD. E The City may sublease parking spaces in the new garage to downtown business owners and make general public parking available to the downtown area Additionally, property owners in the downtown area may also be permitted to locate their required on -site parking for future developments in the proposed parking structure in lieu of providing the parking on their own properties F The project site is currently developed with a one -story, 16,580 square foot commercial budding that was most recently occupied by a Ralph's Grocery store The building has been vacant for approximately three years Page 2 of 9 17 SECTION 3 Environmental Assessment The City of El Segundo prepared an Initial Study and Mitigated Negative Declaration demonstrating that the Project would not cause any significant environmental impacts SECTION 4 Notice ofDeterminatron The City Manager, or designee, is directed to file a Notice of Determination in accordance with Pub Res Code §§ 21152, 21167(f), 14 CCR § 15094, and any other applicable law SECTION 5 General Plan and Zoning The proposed project conforms with the City's General Plan and the zoning regulations in the ESMC as follows A The zoning designation for the property is Grand Avenue District (GAD). The General Plan Land Use designation of Downtown Specific Plan is consistent with the zoning designations, B The GAD permits, among other things, general retail and restaurant uses. The parking structure is considered as an accessory use providing the required on- site parking for the existing retail budding and the proposed commercial budding The City would lease 100 extra parking spaces being designed into the garage structure C The construction of a parking structure to serve downtown was envisioned in the implementation and financing chapter of the Downtown Specific Plan as a long- term solution to parking demand in the downtown area. Therefore, the lease of parking by the City for future use as required parking for other potential development would conform to the development guidelines in the Downtown Specific Plan SECTION 6 Approval Subject to the conditions listed on the attached Exhibit "A," which are incorporated into this Resolution by reference, the City Council approves EA No 581 SECTION 7 This Resolution will remain effective until superseded by a subsequent resolution SECTION 8 The City Clerk is directed to mail a copy of this Resolution to 612 Twin Holdings, LLC and to any other person requesting a copy SECTION 9 This Resolution is the City Council's final decision and will become effective immediately upon adoption Page 3 of 9 PASSED AND ADOPTED this 4th day of June, 2002 Mike Gordon, Mayor City of El Segundo ATTEST STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five, that the foregoing Resolution No _ was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 4th day of June, 2002, and the same was so passed and adopted by the following vote AYES NOES ABSENT - ABSTAIN Cindy Mortesen, City Clerk APPROVED AS TO FORM By- Mark D Hensley, City Attorney P \Planning & Building Safety\PROJECTS \576 - 599 \EA- 581\EA -581 res -cc doc Page 4 of 9 19 CITY COUNCIL RESOLUTION NO. Exhibit A CONDITIONS OF APPROVAL In addition to all applicable provisions of the El Segundo Municipal Code ( "ESMC "), 612 Twin holdings, LLC agrees that it will comply with the following provisions as conditions for the City of El Segundo's approval of Environmental Assessment No 581 ( "Project Conditions ") Design Conditions 1 Before the issuance of a building permit, the developer will submit plans, which indicate that the project is in substantial conformance with plans and conditions approved and on file with the Department of Community, Economic and Development Services Any subsequent modification to the protect as approved will be referred to the Director of Community, Economic and Development Services for a determination regarding the need for City Council review of the proposed modification 2 Before issuance of a Certificate of Occupancy, the developer shall relocate the existing bus stop /shelter on Grand Avenue if it interferes with the proposed driveway entrance on Grand Avenue The Developer will coordinate the relocation options with the Director of Public Works and the Los Angeles County Metropolitan Transportation Authority before the issuance of a building permit 3 Before the issuance of a Certificate of Occupancy, the developer will submit a Master Sign Plan to ensure compatibility with the surrounding area, as well as to ensure that signs do not impede traffic or pedestrian safety The Master Sign Plan will be subject to the approval of the Director of Community, Economic and Development Services and Police Chief and all signs will be installed per the approved plan before the issuance of a Certificate of Occupancy. 4 Before approval of the building plans, plans will show the location and design of all proposed trash enclosures to the satisfaction of the Director of Community, Economic and Development Services and the Police Chief. Plans will also indicate that the trash area will incorporate adequate space for the collection of recyclable materials Service Fees 5 Before the issuance of a Certificate of Occupancy, the developer will pay a one- time Library Services Mitigation Fee of $0 03 per gross square foot of new building floor area Page 5 of 9 6 Before the issuance of a Certificate of Occupancy, the developer will pay a one- time Fire Services Mitigation Fee of $0 14 per gross square foot of new building floor area 7 Before the issuance of a Certificate of Occupancy, the developer will pay a one- time Police Services Mitigation Fee of $011 per gross square foot of new budding floor area 8 Before the issuance of a Certificate of Occupancy, the developer will pay a one- time Traffic Impact Mitigation Fee, in accordance with City Council Resolution No 3969 9 Before the approval of the building plans, the applicant will submit plans which demonstrate conformance with the elements outlined in the memo from the Police Department, dated May 15, 2002, which is on file in the Planning Division The security measures will be installed before the issuance of a Certificate of Occupancy or implemented prior to operation, as appropriate. Cultural Resources 10 In the event that paleontological or archaeological resources are encountered during the course of grading, all development must cease in these areas until the paleontological or archaeological resources are properly assessed and subsequent recommendations are determined by a qualified paleontologist or archaeological (MM -1) Geology and Soils 1 i The development will conform to the California Building Code (MM -2) 12 The developer wilt submit a Geotechnical Report to the Director of Community, Economic and Development Services for review and approval before the issuance of a grading or building permit The Geotechnical Report will be prepared by a State registered engineer, who will recommend mitigation measures to prevent structural damage to the proposed structures Structures will be designed by a State registered engineer to the latest building code adopted by the City of El Segundo (MM -3) Hydrology and Water Quality 13 The developer will ensure that an effective erosion control program is in place throughout the demolition and site preparation phases of the project (MM -4). 14 The developer will provide perimeter retainage around the site to minimize sediment runoff to the storm drain system (MM -5) Page 6 of 9 21 15 The developer will install fossil filters or other fuel /oil separators at all parking structure storm drain collectors (MM -6) 16 Landscape design will maximize rainwater detention in landscaped areas (MM- 7). 17 The developer shall incorporate all applicable design measures set forth in the Standard Urban Storm Water Mitigation Plan for Los Angeles County and Cities in Los Angeles County (MM -8) Public Services 18 Fire sprinklers are not required in the new `open" parking garage so long as there is provided a twenty foot square opening, every 50 lineal feet, or fraction thereof, on each side of the parking structure that features fire access roadways These roadways will be accessible to the fire department from the exterior and shall not be obstructed in a manner that firefighter or rescue cannot be accomplished from the exterior (MM -9) 19 A Class III standpipe system is required (1 -1/2 inch hose and 2 -1/2 inch outlet for structure with four levels 20 The developer shall install full Safety Alarm Systems (MM -11) 21 The developer will provide for review of site plans by the El Segundo Fire Department for placement of on -site fire hydrants and fire access lanes (MM -12). 22 During construction, the entire project site will be enclosed by a six -foot high chain link fence Gates for site fencing will not open over sidewalk/public right -of- way A fencing plan will be submitted by the applicant and reviewed and approved by the Director of Community, Economic and Development Services before installation 23 All work within the City public right -of -way will be in accordance with the latest edition of the Standard Specifications for Public Works Construction and City of El Segundo Standard Specifications No work will be performed in the public right -of -way without first obtaining a Public Works permit 24 Before approval of the budding plans, plans will indicate that all proposed utilities will be placed underground to the satisfaction of the City Engineer The applicant will assume the costs for the relocation of all utilities, including but not limited to, light poles, electrical vaults, and fire hydrants which are affected by the proposed project 25 Encroachment permits must be obtained from the Engineering Division of the Public Works Department for demolition haul -off Permits must be obtained at the same time the permit for demolition is issued. An encroachment permit for Page 7 of 9 grading is also required when import or export of dirt exceeds fifty cubic yards. Demolition and grading may be listed on one encroachment permit 26 If new sewer laterals are required and constructed in the public right -of -way, they will be a minimum of six inches inside diameter Material will be "vitreous clay pipe " Each lateral will have a six -inch clean -out brought to grade at the property line and securely capped A B9 size box shall be placed around the clean -out for protection. The box will have a cover emblazoned with the word "sewer." If in a traffic area, cover will be traffic approved. All planned sewer connections will be checked for elevation prior to starting construction. Existing sewer laterals will be plugged at the sewer mainline and capped at the property line. Existing six -inch wyes may be reused if approved by the Director of Public Works 27 No material storage is allowed in the public right -of -way except by permit issued by the Engineering Division of the Public Works Department. If material storage is allowed in the public right -of -way it will be confined to parkway areas and street parking areas, as long as safe and adequate pedestrian and vehicular passage is maintained at all times Storage beyond these areas in the public right -of -way requires prior approval of the Public Works Department and will be limited to a maximum period of 24 hours 28 Before the issuance of a Certificate of Occupancy, new curbs, sidewalk, driveway approaches, wheelchair ramps and A C pavement, including alleys, will be constructed /reconstructed by the developer as required by the Director of Public Works Existing driveways and other concrete work not to be incorporated into the construction will be removed and replaced with standard curb and sidewalk. Miscellaneous Conditions 29 612 Twin Holdings, LLC agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City's approval of Environmental Assessment No 581 Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the City approval of Environmental Assessment No. 581, 612 Twin Holdings, LLC agrees to defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise For purposes of this section "the City" includes the City of El Segundo's elected officials, appointed officials, officers, and employees 30 612 Twin Holdings, LLC must acknowledge receipt and acceptance of the Project Conditions by executing the acknowledgement below Page 8 of 9 2: By signing this document, 612 Twin Holdings, LLC certifies that it has read, understood, and agrees to the Project Conditions listed in this document. By 612 Twin Holdings, LLC fIf Corporation or similar entity, need two officer signatures or evidence that one signature binds the company} P \Planning & Building Safety\PROJECTS\576 - 599 \EA- 581\EA -581 res-cc doc Page 9 of 9 City of El Segundo DEPARTMENT OF COMMUNITY, 350 Main Street ECONOMIC AND DEVELOPMENT SERVICES El Segundo, CA 90245 (310) 524 -2300 FAX (310) 3224167 www.elsegundo.org REVISED INITIAL STUDY/ ENVIRONMENTAL CHECKLIST FORM PROJECT No. EA No 581 BACKGROUND Project Title 2. Lead Agency Name and Address: City of El Segundo, 350 Main Street, Ell Segundo, CA 90245 3. Contact Person and Phone Number: Paul Garry, Senior Planner, (310) 524 -2342 4 Project Location: 121 West Grand Avenue 5 Project Sponsor's Name and Address- City of El Segundo 350 Main Street El Seoundo, CA 90245 6 General Plan Designation: Downtown Specific Plan Zoning Grand Avenue District (GAD) Description of Project: (Describe the whole action involved, including but not limited to later phases of the project, and any secondary, support, or off -site features necessary for its implementation Attach additional sheets if necessary) A developer, 612 Twin Holdings LLC, is proposing to construct a structure consisting of a one - story 7,000 square foot retail building and a 2 5 level parking garage with 176 parking spaces The proposed structure would be located on an existing surface parking lot The parking structure would provide 76 parking spaces for the required parking for the new retail building and an existing vacant 16,530 square foot former grocery store budding on the property Additionally, the City of El Segundo would lease 100 parking spaces in the structure for public parking for the downtown area of El Segundo A term of 34 years is proposed for the lease with the City The City would have the option to purchase the parking structure near the end of the term of the lease The proposed parking structure would be approximately 27 feet tall at the northernmost portion facing the vacant grocery store building A portion of the structure facing Grand Avenue would have a second level above the new retail 7,000 square foot retail structure The height of the structure along Grand Avenue would be approximately 17 feet. Access to the lower level of the structure would be from Richmond Street and access to the upper levels would be from Grand 25 Avenue The structure would be set approximately 20 feet from the face of the existing retail budding The project is located in the Grand Avenue District of the Downtown Specific Plan area Surrounding Land Uses and Setting: (Briefly describe the project's surroundings) The project site is currently developed with a one -story, 16,580 square foot commercial budding that was most recently occupied by a Ralph's Grocery store The budding has been vacant for approximately three years A surface parking lot with access from Richmond Street, Grand Avenue and an alley on the west side of the property occupy the rest of the site The property slopes down from south to north with a grade change of approximately seven feet The proposed protect site is generally surrounded by commercial and retail uses The areas located to the south, east and north of the proposed project site is composed of low -rise commercial buildings with minimal landscaping Directly across the alley to the west are older one -and two -story retail buildings To the south across Grand Avenue are two -story buildings containing a hotel and retail uses Farther to the south is the historic Richmond Street district, which contains many of the original brick buildings in the downtown area. To the west across Richmond Street are several one -story retail buildings and apartment buildings. To the north of the protect site is an apartment building and condominium development Other Public Agencies Whose Approval is Required (e g, permits, financing approval, or participation agreement) None 2 II. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below ( X ) would be potentially affected by this project, involving at least one impact that is a DPotentially Significant Impacto as indicated by the checklist on the following pages. III DETERMINATION: On the basis of this Initial Study of Environmental Impact, the Planning Commission of the City of El Segundo finds the following. I find that the proposed project COULD NOT have a significant effect on the environment, and a Aesthetics NEGATIVE DECLARATION will be prepared Hazards & Hazardous Materials I find that although the proposed protect could have a significant effect on the environment, there will Public Services not be a significant effect in this case because revisions in the project have been made by or agreed Agricultural Resources to by the project proponent A MITIGATED NEGATIVE DECLARATION will be prepared Hydrology/Water Quality I find that the proposed project MAY have a significant effect on the environment, and an Recreation ENVIRONMENTAL IMPACT REPORT is required Air Quality I find that the proposed project MAY have a "potential significant impact' or "potentially significant Land Use /Planning unless mitigated" impact on the environment, but at least one effect (1) has been adequately Transportation/Traffic analyzed in an earlier document pursuant to applicable legal standards, and (2) has been addressed Biological Resources I by mitigation measures based on the earlier analysis as described on attached sheets An Mineral Resources ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to Utilities /Service Systems be addressed Cultural Resources I find that although the proposed project could have a significant effect on the environment, because Noise all potentially significant effects (a) have been analyzed in an earlier EIR or NEGATIVE Mandatory Findings of Significance DECLARATION pursuant to applicable standards and (b) have been avoided or mitigated pursuant to Geology /Soils that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are Population /Housing imposed upon the proposed project, nothing further is required III DETERMINATION: On the basis of this Initial Study of Environmental Impact, the Planning Commission of the City of El Segundo finds the following. I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared I find that although the proposed protect could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed X to by the project proponent A MITIGATED NEGATIVE DECLARATION will be prepared I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required I find that the proposed project MAY have a "potential significant impact' or "potentially significant unless mitigated" impact on the environment, but at least one effect (1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and (2) has been addressed I by mitigation measures based on the earlier analysis as described on attached sheets An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required f �r �1JUZL 1j - May 21,2002 lames MM Hansen Date ;tor of Community, Economic and Development Services, and, etary of the Planning Commission City of El Segundo 27 IV. EVALUATION OF ENVIRONMENTAL IMPACTS 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question A "No Impact" answeris adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e g the project falls outside a fault rupture zone) A "No Impact" answer should be explained where it is based on project - specific factors as well as general standards (e g the project will not expose sensitive receptors to pollutants, based on a project - specific screening analysis) 2) All answers must take account of the whole action involved, including off -site as well as on -site, cumulative as well as project - level, indirect as well as direct, and construction as well as operational impacts 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant "Potentially Significant Impact" is appropriate if there is substantial evidence that an effect maybe significant if there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required 4) "Negative Declaration Potentially Significant Unless Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section 17, "Earlier Analysis," may be cross - referenced) 5) Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration Section 15063 (c) (3) (d) In this case, a brief discussion should identify the following (a) Earlier Analysis Used Identify and state where they are available for review (b) Impacts Adequately Addressed Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis (c) Mitigation Measures For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site - specific conditions for the project 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e g general plans, zoning ordinances) Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated 7) Supporting Information Sources A source list should be attached, and other sources used or individuals contacted should be cited in the discussion 8) This is only a suggested form, and lead agencies are free to use different formats, however, lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected g) The analysis of each issue should identify (a) the significance criteria or threshold used to evaluate each question, and (b) the mitigation measure identified, if any, to reduce the impact to less than significance 4 Issues and Supporting Information Potentially Less than Less Than lib Impact Significant Significant Significant Impact With Impact Mitigation Incorporated AESTHETICS Would the project a) Have a substantial adverse effect on a scenic vista? X b) Substantially damage scenic resources, Including, but not limited to trees, rock outcroppings, and historic buildings within a state scenic X highway? c) Substantially degrade the existing visual character or quality of the site X and its surroundings? d) Create a new source of substantial light or glare which would adversely X affect day or nighttime views in the area? A project- related significant adverse effect could occur if the project were to Introduce Incompatible visual elements within a field of view containing a scenic vista However, the proposed project site is located in a developed commercial area within the City of El Segundo No scenic vistas currently exist in this area No Impacts related to scenic vistas would occur A project- related significant adverse effect could occur if the project were to Introduce Incompatible visual elements on the project site or visual elements which would be Incompatible with the character of the area surrounding the project site The proposed project replaces the existing surface parking lot with a retail building and parking structure with a maximum height of 27 feet The proposed project would be located In an area of the City of El Segundo characterized by similar, predominantly commercial, land uses, along with similar building height and mass The proposed project would be visually compatible with the appearance of the downtown area No impacts related to visual compatibility would occur A project- related significant adverse effect could occur if the project were to Introduce new sources of light or glare on the • ,iiect site which would be incompatible with the areas surrounding the project site or which would pose a safety hazard otonsts utilizing adjacent streets The existing lighting for the surface parking lot would be removed and replaced with a parking structure, which would include lighting within the structure Such lighting would be less likely to create offsite glare than the existing light sources on the property In addition, although traffic levels would increase somewhat under the proposed project, increased light generation from headlights would likely not be perceptible because of existing low volume of traffic expected from the project Under the proposed project, existing levels of light and glare generation would not be expected to change substantially from current conditions No new hazards from lighting or glare would be introduced Impacts would be less than significant No mitigation is required 2. AGRICULTURE RESOURCES In determining whether impacts to agricultural resources are significant I environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Department of Conservation as an optional model to use in assessing impacts on agriculture and farmland Would the project? a) Convert Prime Farmland, Unique Farmland or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to X the Farmland Mapping and Monitoring Program of the California Resources Agency to non - agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? X c) Involve other changes in the existing environment which, due to their location or nature, could result In conversion of Farmland, to non- X agricultural use? 29 Issues and Supporting Information Potentially Less than Less Than No Impact Significant significant Significant Impact With Impact , Miaganon Incorporated A significant impact may occur If the proposed project were to result in the conversion of state - designated agricultural land from agricultural use to another non - agricultural use The California Department of Conservation, Division of Land Protection, lists Prime Farmland, Unique Farmland, and Farmland of Statewide Importance under the general category of "Important Farmland " The Extent of Important Farmland Map Coverage maintained by the Division of Land Protection Indicates that the project site is not Included In the Important Farmland category ' The proposed project site has been developed for its current office uses since 1965 The project site is located In a developed commercial corridor in the City of El Segundo and does not Include any state - designated agricultural lands No impact on farmland or agricultural resources would occur The proposed project is located in the Grand Avenue District (GAD) Therefore, it will not convert any farmland or otherwise affect any farmland There Is no Williamson Act contracted land in the City of El Segundo 3 AIR QUALITY Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations Would the project a) Conflict with or obstruct implementation of the applicable air quality plan? X b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation X C) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non - attainment under an applicable federal or state ambient air quality standard (including X releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? X e) Create objectionable odors affecting a substantial number of people? X State of California Department of Conservation Division of Land Resource Protection, Extent of Important Farmland Map Cot erage 1996 at http / /www consry ca gov /d /rp /FMMP(rnfo htm #Farmland Map Categories and http / /www consry ca got All? p/FMMP/imagesistatus %20map %201996 him r, Issues and Supporting Information Significant Impact Las than Significant With Mitigation Less Than Na Significant Impact significant Impact may occur if the project is not consistent with the applicable Air Quality Management Plan (AQMP) or would in some way represent a substantial hindrance to employing the policies or obtaining the goals of that plan The City of El Segundo is located on the western edge of the South Coast Air Basin (Basin), within the jurisdiction of the South Coast Air Quality Management District (SCAQMD) SCAQMD has adopted criteria for consistency with regional plans and the regional AQMP in its CEQA Air Quality Handbook (Handbook) These include 1) identifying whether the project I would increase frequency or severity of existing air quality violations or cause or contribute to new air quality violations, and 2) identifying whether the project would exceed the assumptions utilized in preparing the AQMP A significant impact may occur if a project is inconsistent with the growth assumptions upon which the regional AQMP was based The most current version of the AQMP was adopted in 1997 and was based upon population, housing and employment growth projections adopted by the Southern California Association of Governments (SCAG) The proposed project consists of approximately 7,000 square feet of retail space The proposed project site would result in employment growth within a plan - designated Downtown Specific Plan area (see Section 12) The SCAG projections for the City of El Segundo are based upon adopted City plans, and the proposed project is consistent with adopted City plans Therefore, the project- generated employment would be within SCAG and AQMP growth projections for the area The proposed project thus would not be in conflict with nor would it obstruct implementation of the 1997 AQMP The project would have a less than significant impact with regard to air quality plans A significant effect related to air quality could occur if the proposed project were to generate air emissions during construction or operations that could affect sensitive receptors The South Coast Air Quality Management District (SCAQMD), in its CEQA Air Quality Handbook (SCAQMD Handbook), has established screening thresholds for determining whether a project has the potential to result in significant air quality impacts According to Table 6 -2 of the SCAQMD Handbook, a potentially significant air quality impact may occur if a commercial shopping center is larger than 22,000 square feet Since the proposed project would include a retail building which would total approximately 7,000 Square feet, no significant air quality impacts related to operation of the proposed project would occur According to Table of the SCAQMD Handbook, a potentially significant construction air quality impact could occur if a shopping center act is larger than 975,000 square feet Since the proposed project would be smaller than these thresholds, no significant impacts related to construction air quality would occur Air quality impacts of the proposed project would be below SCAQMD significance thresholds and would be less than significant A significant impact related to air movement, moisture, or temperature, or climatic change would occur only if the proposed project were of sufficient size, and included activities or processes that resulted in temperature or humidity changes, that could potentially result in the creation of a "micro - climate" that would have the potential to result in larger scale climatic changes The proposed project consists of urban development that does not include activities or processes I that would have the potential to produce such effects No impact would occur i A project- related significant adverse effect could occur if construction or operation of the project would result in generation of odors, which would be perceptible in adjacent sensitive areas The proposed project would consist of urban development that does not include activities or processes that would generate substantial odors Moreover, no sensitive uses are presently located adjacent to the existing use No impact would occur - 'W[­W�Ii AL Kt5(JURCES Would the project �Uustanuai aaverse effect, either directly or through habdat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U S Fish and Wildlife Service? b) Have a substantially adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or U S lildlife Service? al Issues and Supporting Information potentia5y Less than Less Than No Impact Significant Significant Significant Impact With Impact Mitigation IncO opted c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (Including, but not limited X to, marsh, vernal pool, coastal, etc ) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any resident or migratory fish or wildlife species or with established native resident migratory X wildlife corridors, or Impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological X resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Conservation Community Plan, other approved local, regional, X or state habitat conservation plan? A significant impact would occur where the proposed project would remove or modify habitat for any species identified or designated as a candidate, sensitive, or special status species In local or regional plans, policies, or regulation, or by the state or federal regulatory agencies cited The proposed project site Is located in an area, which has been previously disturbed through its construction as a parking lot, and Is also within the urbanized area of El Segundo No riparian or other sensitive habitat areas are presently located on or adjacent to the project site Implementation of the proposed project would not result In any adverse Impacts to endangered, threatened, or rare species or their habitats No Impact would occur A unn,firanf imnart wru dri nrrt it whoa tho nrnnneeri nrn,prt wn, dfi romnua nr mnrithr hnhdat fnr nnk, enun,uc ,r{e..l.6n.i ... designated as a candidate, sensitive, or special status species in local or regional plans, policies, or regulation, or by the state or federal regulatory agencies cited The proposed project site Is located In an area, which has been previously disturbed through its construction as a parking lot, and Is also within the urbanized area of El Segundo No riparian or other sensitive habitat areas are presently located on or adjacent to the project site No locally designated species are found on the proposed project site Implementation of the proposed project would not result In any adverse Impacts to locally designated species No Impact would occur A significant Impact would occur where riparian habitat or any other sensitive natural community Identified locally, regionally, or by the state and federal regulatory agencies cited were to be adversely modified without adequate mitigation The proposed project site Is located In an area, which has been previously disturbed through Its construction as a parking lot, and is also within the urbanized area of El Segundo No riparian or other sensitive habitat areas are presently located on or adjacent to the project site No locally designated species are found on the proposed project site Implementation of the proposed project would not result In any adverse Impacts to locally designated natural communities No Impact would occur A stgmflcant Impact would occur where federally protected wetlands as defined by Section 404 of the Clean Water Act would be modified or removed without adequate mitigation The proposed project site Is located in an area, which has been previously disturbed through Its construction as a parking lot, and is also within the heavily urbanized area of EI Segundo No riparian or other sensitive habitat areas, such as wetland habitats, are presently located on or adjacent to the project site Implementation of the proposed project would not result In any adverse Impacts to wetland habitats No impact would occur A significant Impact would occur If the proposed project would Interfere or remove access to a migratory wildlife corridor or Impede the use of native wildlife nursery sites The proposed project site Is located in an area, which has been previously disturbed through Its construction as a lot, and Is also within the urbanized area of El Segundo No wildlife dispersal or migration corridors areas are presently located on or adjacent to the project site Implementation of the proposed project would not result in any adverse impacts to wildlife dispersal or migration corridors No impact would occur A significant impact may occur if the proposed project used non - renewable resources In a wasteful and Inefficient manner The proposed project represents an urban infill project, which would not result in the consumption of non - renewable resources at a rate greater than any other urban development project In the City of El Segundo or the Southern California Issues and Supporting Information Potentially Significant Less than significant Less Than Signtficam No Impact X Impact With Impact b) Cause a substantial adverse change in the significance of an Mitigation X archaeological resources pursuant to Section 15064 5? into orated on The land upon which the proposed project would be developed is already in urban development and is planned lul development as proposed under the project No impact would occur A significant impact may occur if the proposed project site is located in an area used or available for extraction of a regionally- important mineral resource and the project converted an existing or potential future regionally- important mineral extraction use to another use or if the project affected access to a site used or potentially available for regionally- important mineral resource extraction The General Plan designation for the project site does not identify the project site as a potential location for future mineral resource recovery The proposed project site has never been used for mineral resource recovery There would be no impact to the loss of availability of a known mineral resource There are no known rare, unique or endangered plant or animal species associated with the proposed project or within the immediate vicinity Therefore, the proposed project will not produce significant changes to the number of rare or endangered plant species in the project area (including trees, shrubs grass, crops, and micro flora) nor would it impact wetlands, migratory corridors, or conservation plans 5 CULTURAL RESOURCES Would the project a) Cause a substantial adverse change in the significance of a historical X resource as defined in Section 15064 5? b) Cause a substantial adverse change in the significance of an X archaeological resources pursuant to Section 15064 5? c) Directly or indirectly destroy a unique paleontological resource or site or X ' unique geologic feature d) Disturb any human remains, including those interred outside of formal I cemeteries gnificant impact may occur if grading or excavation activities associated with the proposed project would disturb paleontological resources or geologic features which presently exist within the project site No unique geologic features currently exist within the project site, which has been previously disturbed through its construction as a surface parking lot Limited grading would be associated for the construction of the proposed project No impacts to paleontological resources would occur While there is no evidence that paleontological resources are located on the project site, there is still the possibility that the construction phase of the proposed office building could encounter paleontological resources, which in turn could result in potentially significant paleontological resource impacts However, provided the mitigation measure listed below is implemented, the project would not have any potential to cause a substantial adverse change in significant paleontological resources A significant impact may occur if grading or excavation activities associated with the proposed project would disturb archaeological resources or geologic features which presently exist within the project site No unique geologic features currently exist within the project site, which has been previously disturbed through its construction as an office building and surface parking lot While there is no evidence that archaeological resources are located on the project site, there is still the possibility that the construction phase of the project office building could encounter archaeological resources, which in turn could result in potentially significant archaeological resources impacts However, provided the mitigation measure listed below is implemented, the proposed project would not have any potential to cause a substantial adverse change in significant archaeological resources Section 15064 5 of the State CEQA Guidelines defines an historical resource as (1) a resource listed in or determined to be eligible by the State Historical Resources Commission, for listing in the California Register of Historical Resources, (2) a resource listed in a local register of historical resources or identified as significant in an historical resource survey meeting certain state guidelines, or (3) an object, building, structure, site, area, place, record or manuscript which a lead -ncy determines to be significant in the architectural, engineering, scientific, economic, agricultural, educational, social, cal, military or cultural annals of California, provided that the lead agency's determination is supported by substantial evidence in light of the whole record A project- related significant adverse effect could occur if the proposed project would adversely affect an historical resource meeting one of these definitions Currently the proposed project site is developed 33 Issues and Supporting Information Potentially Less than Less Than No Impact Significant Significant Significant Impact With Impact Mitigation Incorporated with a surface parking lot and an existing retail budding No buildings presently listed m, or Identified as eligible for listing in, the California Register of Historical Resources are located on the project site Similarly no resources listed in a local register of historical resources or within a historical resources survey are located within the project site Finally, the existing structure has never contributed to the architectural, engineering, scientific, economic, agricultural, educational, social, political, military or cultural annals of California The project would thus not have any potential to affect significant historical resources as defined In Section 15064 5 A significant Impact may occur if a proposed project was located In an area where it could cause a physical change, which would affect a unique ethnic community or culture The proposed project site is located in an urbanized area of the City of El Segundo, which does not have cultural or ethnic significance No impacts would occur A significant impact may occur if a proposed project was located in an area where it could Impact religious or sacred uses The proposed project site is located in an urbanized area of the City of El Segundo, which does not have religious or sacred significance No impacts would occur However, provided the mitigation measure listed below is Implemented, the proposed project would not have any potential to cause a substantial adverse change In significant paleontological and archeological resources MM -1 In the event that paleontological or archaeological resources are encountered during the course of grading, all development must cease in these areas until the paleontological or archaeological resources are properly assessed and subsequent recommendations are determined by a qualified paleontologist or archaeological 6 GEOLOGY AND SOILS Would the project a) Expose people or structures to potential substantial adverse effects, including the risk of loss, Injury or death Involving (i) Rupture of a known earthquake fault, as delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map Issued by the State Geologist for the area or based on other substantial evidence X of a known fault? Refer to Division of Mines and Geology Special Publication 42 (u) Strong seismic ground shaking? X (w) Seismic- related ground failure, including liquefaction? X (iv) Landslides? X j b) Result In substantial soil erosion or the loss of topsoil? X c) Be located on a geologic unit or sod that is unstable, or that would become unstable as a result of the project, and potentially result In on- or off -site landslide, lateral spreading, subsidence, liquefaction or X collapse? d) Be located on expansive soil, as defined in Table 18 -a -B of the Uniform Building Code (1994), creating substantial risks to life or property? X e) Have sods incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not X available for the disposal of waste water? A significant Impact may occur it a project site is located within a state - designated Alquist - Priolo Zone or other designated fault zone, and appropriate building practices are not employed The project site is located In the vicinity of the Newport- inglewood Fault Zone and the Elysian Thrust Fault Zone (see Environmental and Public Facilities Maps Alquist -Priolo 10 Issues and Supporting Information Potentially Less than Less Than No Impact Significant significant Significant Impact With Impact Mitigation Incorporated ;vial Study Zones and Fault Rupture Study Areas in the City of Los Angeles) The Newport- Inglewood Fault Zone is i o km in length with a probable magnitude of 6 5 -7 4 The potentially active Elysian Thrust Fault Zone is 34 km in length with a probable magnitude of 6 7 The project will be required to comply with current codes which reduce seismic risks to an acceptable level, thus, the proposed project will have a less than significant Impact with regard to fault rupture A significant impact may occur if a proposed project represents an increased risk to public safety or destruction of property by exposing people, property or infrastructure to seismically induced ground shaking hazards that are greater than the average risk associated with locations In the Southern California region As with all properties In the seismically active Southern California region, the project site is susceptible to ground shaking during a seismic event Potential impacts from seismic ground shaking are present throughout Southern California and would be of comparable intensity at the project site as it would be for large parts of the City of El Segundo and the region The project will be required to comply with existing codes which reduce seismic risks to an acceptable level, thus, the proposed project will have a less than significant impact with regard to seismic ground shaking Additionally, through the imposition of the mitigation measure described below, the proposed project would be constructed in compliance with a Geotechnical Report, which would evaluate the soil conditions, and ensure that the structure would be designed to accommodate the soil conditions on the site With mitigation, impacts would be less than significant A significant impact may occur if a proposed project is located In an area identified as having a high risk of liquefaction and mitigation measures required within such designated areas are not incorporated into the project Liquefaction is a condition where the soil undergoes continued deformation at a constant low residual stress due to the build -up of high porewater pressures The possibility of liquefaction occurring at a given site is dependant upon the occurrence of a significant earthquake in the vicinity, sufficient groundwater to cause high pore pressures, and on the grain size, relative density, and confining pressures of the soil at the site The regional groundwater is approximately 110 feet below ground surface in the vicinity of the proposed project site The proposed project site is located in a zone of the City that is considered to have a low potential for liquefaction based upon on -site soil types and topographic and subsurface conditions There would a less than significant impact involving seismic ground failure, including liquefaction , gnificant impact may occur if the proposed project site was sufficiently close to the ocean to be potentially at risk of the effects of seismically induced tidal phenomena (seiche and tsunami) The proposed project site is located approximately one mile from Santa Monica Bay and the Pacific Ocean The coastal portion of the City and adjacent portions of the City of Los Angeles are identified by the State as tsunami hazard areas, and as a result, there is the potential for damage to Edison and Chevron facilities, and the Hyperion Treatment Plant However, the residential portions of the City and the proposed project site are located above the potential hazard area and are not at high risk There are no volcanic hazards within the proposed project area or region Impacts involving seiche, tsunami, or volcanic hazards would be less than significant A significant impact may occur if the proposed project site were located in a hillside area with soil conditions that would suggest high potential for sliding The proposed project site is not located in a hillside area and therefore would not be subject to potential landslide conditions A significant impact may occur if the proposed project site would expose large areas to the erosional effects of wind or water for a long period of time The proposed project area is highly developed and the project site is entirely paved The potential for substantial erosion or changes in topography would therefore not be present under the proposed project No impact would occur A significant impact may occur if the proposed project would cause subsidence of the land The proposed project site is completely paved and developed The proposed project would involve the demolition of the existing office building, no major site preparation activities would be required No withdrawals of subsurface fluids, which could potentially cause subsidence, would be associated with the proposed project In addition, the regional groundwater is approximately 110 feet below the ground surface of the vicinity of the proposed project site No impact would occur The Cin,, of Los Angeles Environmental and Public Facilities Maps (September 1 1996) are available for review during normal business haws at the Ciry of El Segundo Community, Economic and Development Services Department, 350 Man Street, Et Segundo, CA 90245 11 35 Issues and Supporting Information Potentially Less than Less Than No Impact Significant Significant Significant Impact With Impact Mitigation Into orated A significant impact may occur if the proposed project would be built In an area characterized by expansive soils orother unstable soil conditions without proper site preparation or design features to provide adequate foundations for project buildings, thus posing a hazard to life and �roperty The proposed project site is charactenzed as having groundwater tables underlain by sand dune formations Construction must comply with the California Building Code, which is designed to assure safe construction, including building foundation requirements appropriate to site conditions Therefore, the proposed project will have less than significant impacts Involving expansive sods A significant impact may occur if the proposed project site or immediate surrounding area contained unique geological or physical features The proposed project site is located in an area, which has been previously disturbed through Its construction as an office building and parking structure, and is also within the urbanized area of El Segundo There are no unique geologic or physical features in the area No impact would occur With incorporation of the mitigation measures listed below, impacts would be less than significant MM -2 The City development shall conform to the California Building Code j MM -3, The Developer will submit a Geotechnical Report to the Director of Community, Economic and Development Services for review and approval before the issuance of a grading or budding permit The { Geotechnical Report will be prepared by a State registered engineer, who will recommend mitigation measures to prevent structural damage to the proposed structures Structures will be designed by a State registered engineer to the latest building code adopted by the City of El Segundo 7 HAZARDS AND HAZARDOUS MATERIALS Would the project? a) Create a significant hazard to the public or the environment through the X routine transport, use or disposal of hazardous materials b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the X likely release of hazardous materials Into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one - quarter mile of an exiting or proposed school? X d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result would it create a significant hazard to the public or the X environment's e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people X residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project X area? g) Impair implementation of, or physically interfere with an adopted emergency response plan or emergency evacuation plan? X h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wddlands are adjacent to X urbanized areas or where residences are intermixed with wildlands? ' El Segundo General Plan 1992 12 Issues and Supporting Information Potentially significant Less than Significant Less Than Significant No Impact A significant impact may occur if the proposed project were to interfere with roadway operations used in conjunction with Impact With Impact plan or emergency evacuation plan Project impacts to area traffic would have no significant Impacts on nearby roadways or intersections (see Section 15, below) The traffic circulation on -site would also remain the similar with access from Richmond Street and Grand Avenue Vehicular access from the alley on the west side of the property would be Mniganon No impact would occur The proposed project would not interfere with an emergency response plan or emergency evacuation plan No impact would occur A significant impact may occur If a proposed project Involves use or disposal of hazardous materials as part of its routine operations and would have the potential to generate toxic or otherwise hazardous emissions that could adversely affect Incorponated apartments, located to the west and north of the property There are also residential units In the two -story building across the alley to the east However, there will not be and hazardous materials associated with the use of the new retail building A significant impact may occur if a proposed project utilizes substantial quantities of hazardous materials as part of its routine operations and could potentially pose a hazard to nearby sensitive receptors under accident or upset conditions The proposed project would use, at most, minimal amounts of hazardous materials for routine office cleaning and landscaping and therefore would not pose any substantial potential for accident conditions Involving the release of hazardous materials No impact would occur A significant impact may occur if the proposed project were to interfere with roadway operations used in conjunction with an emergency response plan or emergency evacuation plan or would generate sufficient traffic to create traffic congestion that would Interfere with the execution of such a plan Construction of the proposed project would not substantially impede public access or travel upon public rights -of -way and would not interfere with any adopted emergency response plan or emergency evacuation plan Project impacts to area traffic would have no significant Impacts on nearby roadways or intersections (see Section 15, below) The traffic circulation on -site would also remain the similar with access from Richmond Street and Grand Avenue Vehicular access from the alley on the west side of the property would be eliminated The proposed project would not interfere with an emergency response plan or emergency evacuation plan No impact would occur The proposed project would not interfere with an emergency response plan or emergency evacuation plan No impact would occur A significant impact may occur If a proposed project Involves use or disposal of hazardous materials as part of its routine operations and would have the potential to generate toxic or otherwise hazardous emissions that could adversely affect sensitive receptors Uses sensitive to hazardous emissions (I e , sensitive receptors) in the area include some residential apartments, located to the west and north of the property There are also residential units In the two -story building across the alley to the east However, there will not be and hazardous materials associated with the use of the new retail building and parking structure gnificant impact may occur if a proposed project involved the exposure of people to existing sources of potential health _ards There are no known sources of potential health hazards on the project site or in the Immediate surrounding area A significant impact may occur if a proposed project increased fire hazards in areas with flammable brush, grass, or trees The proposed project site is located in an urbanized portion of the City of El Segundo that does not include wildlands or high fire hazard terrain or vegetation All areas of the project site are paved and developed, No impact would occur on increased fire hazards 8 HYDROLOGY AND WATER QUALITY Would the project a) Violate any water quality standards or waste discharge requirements') X b) Substantially degrade groundwater supplies or Interfere substantially with groundwater F echarge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e g , the production rate of pre - existing nearby wells would drop to a level X which would not support existing land uses or planned uses for which permits have been ranted c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off - X site'� d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or surface runoff in a manner which X •could result in flooding on- or off site? 13 37 Issues and Supporting Information Potentially Less than Less Than I No Impact significant Signficant Significant Impact With Impact Minganon Incorporated. e) Create or contribute runoff which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial X additional sources of polluted runoff's f) Otherwise substantially degrade water quality? X g) Place housing within a 100 -year floodplain, as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood X hazard delineation map? h) Place within a 100 -year flood hazard area structures which would X impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee X or dam? j) Inundation by seiche, tsunami, or mudflow? X A significant impact may occur if the proposed project resulted In increased runoff volumes during construction or operation of the project, which would result in flooding conditions affecting the project site or nearby properties No stream or river courses are currently located in the vicinity of the project site The proposed project would reduce the amount of impervious surface on the project site because it will replace existing paved and developed surfaces within the project site with urban landscaping The proposed project would increase the quality, quantity and variety of plant material and landscape currently at the site While the proposed project site at present is occupied virtually in its entirety by buildings or paved surfaces, the proposed project would include minimal new landscaped areas adjacent to the retail building and parking structure Therefore, the proposed project would not generate any additional storm water runoff to the storm drain system and would likely reduce storm water runoff to the storm drain system Impacts would be less than significant A significant impact may occur if the proposed project resulted in exposure of people or property to water related hazards such as flooding The proposed project is located within Flood Hazard Zone C of the National Flood Insurance Program (i e , not at risk of a 100 -year or 500 -year flood) and there are no major dams or waterways located near proposed project site No impact would occur A significant impact may occur if the proposed project included potential sources of water pollutants, which would have the potential to degrade water quality During construction of the proposed project, demolition of the existing parking lot would take place and the proposed project site could be exposed to precipitation, which could increase runoff of eroded materials The project will be required to comply with the applicable regulations of the General Construction Activity Storm Water Permit issued by the Los Angeles Regional Water Quality Control Board and administered by the Los Angeles County Department of Public Works and the City of El Segundo However, by incorporating the relevant Best Management Practices (BMPs) set forth in this permit for erosion control into the project construction process, impacts on water quality from construction runoff would be limited With implementation of the mitigation measures set forth below, impacts of the proposed project related to construction runoff would be less than significant During operations, the proposed project would use, at most, minimal amounts of hazardous materials for routine office cleaning and landscaping Vehicular activities associated with the proposed project could result in the deposition of materials within the parking structure and on surrounding roadways would have the potential to contribute metals, oil and grease, solvents, hydrocarbons and suspended solids to storm water runoff The proposed project would be subject to design criteria set forth in the Standard Urban Storm Water Mitigation Plan for Los Angeles County and cities in Los Angeles County, as administered by the City of El Segundo and the County of Los Angeles These design measures would minimize the conveyance of pollutants in storm water runoff Therefore, with implementation of the mitigation measures set forth below, the proposed project would not substantially degrade water quality A significant impact may occur if the proposed project resulted in changes in the amount of surface water in any water body The proposed project would involve the demolition of a surface parking lot and the development of a new structure with retail uses and parking garage in a densely developed portion of the City of El Segundo There would be negligible change in the amount of impervious surface within the project site with the construction of new landscaped areas There 14 Issues and Supporting Information Potentially Significant Less than Significant Less Than Significant No Impact Impact With Impact Mitigation incorporated Ild be no alterations to the amount of surface water as the nearest body of water is one mile away, the Santa Monica bay and the Pacific Ocean No impact would occur A significant impact may occur if the proposed project resulted in changes in currents, or the course or direction of water movements The proposed project would involve the demolition of a surface parking lot and the development of a new structure with retail uses and parking garage in a densely developed portion of the City of El Segundo There would be no changes in currents, or the course or direction of water movements as the nearest body of water is one mile away, the Santa Monica Bay and the Pacific Ocean as a result of either scenario No impact would occur A significant impact may occur if a proposed project included deep excavations which had the potential to interfere with groundwater movement or included withdrawal of groundwater or paving of existing permeable surfaces important to groundwater recharge The proposed project site is presently covered entirely with impermeable surface (I e., structures, concrete and asphalt) The proposed project would not materially alter the amount of permeable surfaces through increased landscaped area There would be some excavation on the site to construct the lower level of the parking structure, but construction would not interfere with groundwater movement Therefore, the proposed project would have no effect on groundwater quality or recharge A significant impact may occur if the proposed project includes potential sources of water pollutants that would have the potential to substantially degrade water quality The proposed project would use, at most, minimal amounts of hazardous materials for routine office cleaning and landscaping; the proposed project does not include other potential sources of contaminants, which could potentially degrade water quality Therefore, the proposed project would not degrade water quality No impact would occur A significant impact may occur if the proposed project included deep excavations, which had the potential to substantially reduce the amount of groundwater otherwise available for public water supplies The proposed project site would not include minor subsurface excavation Thus, the proposed project would not substantially reduce the amount of indwater, which would otherwise be available for public water supplies No impact would occur Impacts would be less than significant with mitigation measures incorporated MM -4 The project applicant shall ensure that an effective erosion control program is in place throughout the demolition and site preparation phases of the project MM -5 The project applicant shall provide perimeter retainage around the site to minimize sediment runoff to the storm drain system MM -6 The project applicant shall install fossil filters or other fuel /oil separators at all parking structure storm drain collectors MM -7 Landscape design shall maximize rainwater detention in landscaped areas MM -8 The project applicant shall incorporate all applicable design measures set forth in the Standard Urban Storm Water Mitigation Plan for Los Angeles County and Cities in Los Angeles County 9 LAND USE AND PLANNING Would the project a) Physically divide an established community? X b) Conflict with an applicable land use plan, policy or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) X adopted for the purpose of avoiding or mitigating an environmental �ffect? 15 39 Issues and Supporting Information Potentially Less than Less Than No Impact communities conservation plan'? Significant significant Sigmfican[ X A significant impact may occur if the proposed project is inconsistent with the General Plan or zoning designations Impact With Impact Municipal Code is "Grand Avenue District (GAD) " The GAD permits general retail uses The parking structure is considered as an accessory use providing the required on- site parking for the existing retail building and the proposed retail building The City would lease extra parking spaces Mitigation development in the GAD The City may sublease parking spaces in the new garage to downtown business owners and make general public parking available to the downtown area Additionally, property owners in the downtown area may also be permitted to locate their required on -site parking for future developments in the proposed parking structure in lieu of providing the parking on their Incorporated the proposed lease of 100 parking spaces in the new garage This potential additional development in downtown would still be required to comply with all other development standards for new construction, including maximum densities As a c) Conflict with any applicable habitat conservation plan or natural communities conservation plan'? X A significant impact may occur if the proposed project is inconsistent with the General Plan or zoning designations currently applicable to the project site and would cause adverse environmental effects, which the General Plan and zoning ordinance are designed to avoid or mitigate The project site is located within the City of El Segundo The El Segundo General Plan land use designation for the project site is Downtown Specific Plan The sites zoning in the El Segundo Municipal Code is "Grand Avenue District (GAD) " The GAD permits general retail uses The parking structure is considered as an accessory use providing the required on- site parking for the existing retail building and the proposed retail building The City would lease extra parking spaces being designed into the garage structure This project will meet all development regulation and standards required for development in the GAD The City may sublease parking spaces in the new garage to downtown business owners and make general public parking available to the downtown area Additionally, property owners in the downtown area may also be permitted to locate their required on -site parking for future developments in the proposed parking structure in lieu of providing the parking on their own properties This arrangement may lead to additional development in the downtown area that would not occur without the proposed lease of 100 parking spaces in the new garage This potential additional development in downtown would still be required to comply with all other development standards for new construction, including maximum densities As a result the potential provision of off -site parking to meet on -site parking requirements be the City would not increase the density permitted in the Downtown area Potential development associated with the adoption of the Downtown Specific Plan analyzed the impacts of additional development as part of a Mitigated Negative Declaration of Environmental Impacts (Environmental Assessment No 474) There fore, the lease of parking by the City for future use as required parking for other potential development would conform to the development guidelines in the Downtown Specific Plan and would not create any new significant impacts on the environment A project- related significant adverse effect could occur if the proposed project site were located within an area governed by a habitat conservation plan or natural community conservation plan The project site and its vicinity are not part of any draft or adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional or state habitat conservation plan The project site is located in an area, which has been previously disturbed through the construction of a parking structure and an office building, and is also within an urbanized area of El Segundo No project impact to any adopted habitat or conservation plans would occur No impact would occur A significant impact may occur if a proposed project would be incompatible with adjacent sensitive land uses (i e , residential) The proposed new retail budding and parking structure would be compatible and integrate with adjacent land uses The downtown area currently consists of a mix of residential and commercial uses in an urban setting No impact to sensitive land uses would occur 10 MINERAL RESOURCES Would the project a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state x b) Result in the loss of availability of a locally - important mineral resource recovery site delineated on a local general plan, specific plan or other X land use plan A significant impact may occur if the proposed project used non - renewable resources in a wasteful and inefficient manner The proposed project represents an urban infill project, which would not result in the consumption of non - renewable t resources a a rate greater than any other urban development project in the City of El Segundo or the Southern California region The land upon which the proposed project would be developed is already in urban development and is designated in the General Plan for development as proposed under the project No impact would occur A significant impact may occur if the proposed project site is located in an area used or available for extraction of a regionally- important mineral resource and the project converted an existing or potential future regionally- important mineral 16 Issues and Supporting Information Potentially Significant Less than Significant Less Than Significant No Impact Impact With Impact standards established in the local general plan or noise ordinance, or Mitigation X applicable standards of other agencies? hicolporated b) Exposure of persons to or generation of excessive groundborne action use to another use or if the project affected access to a site used or potentially available for regionally - important 1 mineral resource extraction I ne general clan designation for the project site does not identify the project site as a potential location for future mineral resource recovery The proposed project site has never been used for mineral resource recovery There would be no impact to the loss of availability of a known mineral resource 11 NOISE Would the project result in a) Exposure of persons to or generation of noise levels In excess of standards established in the local general plan or noise ordinance, or X applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne X vibration or groundbome noise levels? c) A substantial permanent increase in ambient noise levels in the project X vicinity above levels existing without the project? d) A substantially temporary or periodic Increase In ambient noise levels in X the project vicinity above levels existing without the project e) For a project located within an airport land use plan, or, where such a plan has not been adopted, within two miles of a public airport or public X use airport, would the project expose people residing or working In the project area to excessive noise levels? f) For a project within the vicinity of a pnvate airstrip, would the project expose people residing or working In the project area to excessive X noise levels? proposed project site Is located in an urban developed environment The existing noise environment Is characterized by the mix of land uses within It, which Includes commercial developments, residences and the Los Angeles International Airport (LAX) The project site is outside the 65 dBA noise contour of LAX The primary source of noise in the vicinity of the project site Is vehicular noise on the surrounding streets and noise from LAX The criteria for determination of a significant noise impact are set forth in the City of El Segundo Noise Ordinance' A project would normally have a significant operational noise impact if the project causes the ambient noise level measured at the property line of affected uses to increase by 5 dBA in Community Equivalent Noise Level (CNEL) above the accepted ambient noise level of 65 dBA CNEL CNEL is a 24 -hour weighted noise measurement, in which noise during evening and nighttime hours is given an increased weight to account for increased sensitivity to noise during those hours For the proposed project, the predominant noise source is anticipated to be additional vehicular traffic The greatest impacts would occur at sensitive receptors located near the project The two closest such receptors are (1) residential units on the second floor of the building across the alley to the east of the project site a 105 -113 East Grand Avenue, and (2) a residential units on the west side of the 200 block of Richmond Street across the street from the project site The resulting noise levels, with the addition of project- related traffic, would not be expected to increase Operational noise impacts would be less than significant A significant Impact may occur if the proposed project if there are severe noise levels to be generated during project construction Construction activities would require the use of numerous noise - generating types of equipment such as jack hammers, pneumatic impact equipment, saws and tractors However, given the duration of the construction activities and the distance from the site to sensitive noise receptors, construction noise impacts are expected to be less than the City significance threshold of 5 dBA Construction noise impacts would be less than significant 12 POPULATION AND HOUSING. Would the project I ' El Segundo Municipal Code Section 7 -2 -4 17 41 Issues and Supporting Information Potentially Significant Less than Significant Less Than Significant No Impact a) Fire protection? Impact With Impact X b) Police protection? Mitigation X c) Schools? Incorporated X d) Parks? a) Induce substantial population growth in an area, either directly (for X e) Other public facilities? example, by proposing new homes and businesses) or indirectly (for X X example, through extension of roads or other infrastructure)? fire stations, the Headquarters Station, located at 314 Main Street and Station 2, located at 2161 East El Segundo Boulevard Headquarter Station has two engine companies and a rescue team Station 2 has an engine company, rescue team and a truck company Existing staffing levels are not ex ected to be adversel im acted b fh b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? X c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? X A significant impact may occur if the proposed project cumulatively exceeded the official regional or local population projections The City of El Segundo's General Plan Objective ED1 -1, Policy ED1 -1 1, to maintain economic development as one of the City's and the business and residential communities' top priorities, would be implemented through the development of the proposed project The proposed retail development and City parking lease would create jobs, expand business, and create additional revenue for the City The proposed project would not include residential development and would not include permanent population growth in the City Therefore, the proposed project would not exceed official regional or local population projections No Impact would occur A significant impact may occur if a proposed project were to locate new development such as homes, businesses or infrastructure, with the effect of substantially inducing growth that would otherwise not have occurred as rapidly or in as great a magnitude The proposed project is located in an urbanized area, with all major urban Infrastructure systems already in place As discussed Ion Section 9 above, the City's lease of 100 parking spaces may make it more possible for additional development to occur in the downtown area Some of this additional development could be residential land uses, since owner - tenant occupied residential uses are permitted in the Downtown Specific Plan Therefore, to the extent that residential development is permitted in the Downtown Specific Plan, and the impacts of additional development were already determined in Environmental Assessment No 474, no additional impacts on population and housing would occur as a result of the lease of 100 parking spaces in the proposed project by the City of El Segundo Under this project, a 7,000 square foot retail building, consistent with the zoning for the site, would be replaced a surface parking lot Therefore, the proposed project would not induce substantial growth be developing in an undeveloped area or extension of major infrastructure No impact would occur A significant impact may occur if a proposed project would result in displacement of existing housing units, necessitating construction of replacement housing elsewhere The proposed ptoject would Involve the replacement of a parking lot with etad hndd nn and n2r4,nn ­rave The nronosed nrn ect wc-,!d not rlmnloce ex st!nn hnnc,r.n horanm .. ....a.._�._r uses are presently associated with the proposed project site, No impact would occur 13 PUBLIC SERVICES Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered government facilities, need for new or physically altered government facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services a) Fire protection? X b) Police protection? X c) Schools? X d) Parks? X e) Other public facilities? X A significant impact may occur if the City of El Segundo Fire Department (ESFD) could not adequately serve the proposed project based upon response time, access or fire hydrant/water availability The proposed project site is served by two fire stations, the Headquarters Station, located at 314 Main Street and Station 2, located at 2161 East El Segundo Boulevard Headquarter Station has two engine companies and a rescue team Station 2 has an engine company, rescue team and a truck company Existing staffing levels are not ex ected to be adversel im acted b fh P Y p y e proposed it] Issues and Supporting Information Potentially significant Less than significant Less Than significant No Impact Impact With Impact Mmgatton into anted tect Through the Imposition of Mitigation Measure No 9 and 10, firefighting access to the protect site will be maintained A significant Impact may occur if a proposed protect resulted in an Increase in demand for police services that would exceed the capacity of the police department responsible for serving the site Police service for the proposed protect site Is provided by the El Segundo Police Department (ESPD), which is located at 348 Main Street, in the City of El Segundo The proposed protect would slightly increase on -site population, which could generate a demand for additional security The extent of additional protection needed would vary in accordance with the type of use and expected number of %sitars and employees on -site The proposed protect would have less than significant impacts on police service A significant Impact may occur if a proposed protect Includes substantial employment or population growth, which could generate demand for school facilities that exceeds the capacity of the school district(s) responsible for serving the protect site The Impact of additional residential development in the Downtown Specific Plan was evaluated in EA No 474 and determined to have a no significant impact on school facilities or school demand The City's lease of 100 parking spaces in the proposed parking structure could facilitate the development of additional residential units in the Downtown Specific Plan area, but would not create any additional demand for school facilities not analyzed in the mitigated negative declaration for the Downtown Specific Plan Therefore, the proposed protect would not result in a significant indirect increase in permanent residential population, which could affect local schools No impact on schools would occur A significant impact may occur if a proposed protect includes substantial employment or population growth, which could generate a demand for new or altered government service The addition of 7,000 square feet of commerciallretail land use would not significantly increase employment growth in the City. Additionally, the potential employment and population growth due to the City's lease of 100 parking spaces in the proposed garage would not create any additional demands for service that were not evaluated as part of the mitigated negative declaration for the Downtown Specific Plan As a result no impact would occur and no mitigation is required gnificant impact may occur if a proposed protect includes substantial employment or population growth, which could erate a demand for other public facilities (such as libraries), which exceeds the capacity available to serve the protect site As detailed above, the addition of 7,000 square feet of commercial/retail land use would not significantly increase employment growth in the City Additionally, the potential employment and population growth due to the City's tease of 100 parking spaces in the proposed garage would not create any additional demands for service that were not evaluated as part of the mitigated negative declaration for the Downtown Specific Plan Therefore, the proposed protect itself would not increase permanent residential population within the City of El Segundo With no increase of permanent residential ipopulation created by the proposed protect there would not be a significant increase in the demand for government services No impact would occur While significant impacts are not anticipated, the mitigation measures below restate protect design features and City requirements, which would assure less than significant protect impacts 4 MM -9 Fire sprinklers are not required in the new "open" parking garage so long as these is provided a twenty foot square opening, every 50 lineal feet, or fraction thereof, on each side of the parking structure that features fire access roadways These roadways will be accessible to the fire department from the exterior and shall not be obstructed in a manner that firefighter or rescue cannot be accomplished from the exterior (MM -9) MM -10 A Class III standpipe system is required (1 -112 Inch hose and 2 -1/2 inch outlet for structure with four levels MM -11 The protect applicant shall install full Safety Alarm Systems MM -12 The protect applicant shall provide for review of site plans by the El Segundo Fire Department for placement of on -site fire hydrants and fire access lanes RECREATION 19 43 Issues and Supporting Information Potentially Less than Less Than No Impact parks or other recreational facilities such that substantial physical significant significant significant X deterioration of the facility would occur or be accelerated? Impact With Impact b) Does the protect Include recreational facilities or require the Mitigation construction or expansion of recreational facilities which might have an hico orated X a) Would the protect Increase the use of existing neighborhood or regional parks or other recreational facilities such that substantial physical X deterioration of the facility would occur or be accelerated? b) Does the protect Include recreational facilities or require the construction or expansion of recreational facilities which might have an X adverse physical effect on the environment? A significant impact may occur if a proposed protect includes substantial employment or population growth, which could generate demands for public park facilities that exceed the capacity of existing parks, and causes premature deterioration of the park facilities As stated in Section No 13 above, the protect itself would not increase permanent residential population within the City of El Segundo Maintenance of public parks and public recreational facilities in El Segundo are funded largely through the City general fund As demand for park services by the proposed protect is considered to have no impact, impacts on maintenance of those facilities would likewise not be significant The protect would not Increase the demand for neighborhood or regional parks or other recreational facilities No impact would occur A significant impact may occur if a protect includes the construction or expansion of park facilities and such construction would have a significant adverse effect on the environment The proposed protect involved the construction of a commercial protect and not the construction of parks No Impact would occur on existing recreational opportunities 15 TRANS PORTATION/TRAFFIC. Would the protect a) Cause an increase in the traffic which is substantial in relation to the existing traffic load and capacity of the street system (I e , result in a X substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at Intersections)? b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for X designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change In location that results In substantial safety X risks? d) Substantially increase hazards to a design feature (e g , sharp curves or X dangerous intersections) or incompatible uses (e g farm equipment)? A) Result in inadequate emergency access? X f) Result in inadequate parking capacity? X g) Conflict with adopted policies or programs supporting alternative X transportation (e g , bus turnouts, bicycle racks)? A significant impact related to traffic conditions would occur if a proposed protect generated traffic that exceeded the significance threshold of the jurisdiction in which a potentially affected intersection were located The City of El Segundo has established a significance threshold for traffic impacts within the City that identifies a significant impact whenever either of the following occurs (1) a protect causes an intersection to decline from LOS D or better to LOSE or worse, or 1(2) a protect contributes traffic that causes the volume /capacity (V /C) ratio at an intersection that is forecast to operate at { LOS E or LOS F to Increase by 0 02 or more If either of these two thresholds is exceeded, the Impact is considered significant The city's consultant Traffic Engineer prepared trip generation estimates for the proposed addition of 7,000 square feet of commercial use on the protect site Since it is not known exactly what types of uses would occupy the new building, an average trip generation rate, based on several Institute of Transportation Engineer's land use categories, was developed to estimate the trip generation potential for commercial and restaurant uses Based on average AM, PM and average daily trip rates of 3 7, 7 65, and 76 04, respectively, the proposed 7,000 square foot building is expected to generate 1 approximately 7B AM peak period vehicle trips, 53, PM peak period trips and a total of 532 average dally trips Accordin g 20 Issues and Supporting Information Potentially Less than Less Than No Impact significant significant significant Impact With Impact Mitigation Inco orated rarric counts conaucted by the City as part of the previous Circulation Element update process, the nearest signalized intersection of Main Street/Grand Avenue operates at LOS A The addition of the estimated trips from the proposed project would not significantly add to traffic All projected increases would be below the 0 02 threshold and would be less than significant A project- related significant adverse effect could occur if inadequate parking areas were provided during construction or operation of the proposed project such that employee and visitor parking would spill over into adjacent areas During construction of the proposed structure, the vacant market would remain unoccupied Thus construction would not interfere with the required parking for the existing building Upon completion of the project and re- occupancy of the vacant building, 76 parking spaces would be provided for the existing building and the new 7,000 square foot commercial building This would exceed the 69 parking spaces required by the Zoning Code for the existing building (46 spaces, based on a grocery store use with 12,480 square feet of sales area and 4,103 square feet of storage area for a total area of 16,583) and the new retail building (23 spaces) A project- related significant adverse effect could occur if project design did not allow for emergency access meeting the requirements of the Fire Department such that an existing hazard to the project and adjacent uses would be exacerbated Access to the project site would be provided from Richmond Street and Grand Avenue, which would be consistent with Fire Department requirements for two separated access points to the site No impacts related to emergency access would occur A project- related significant adverse effect could occur if the project included new roadway design or introduced a new land use into an area with specific transportation requirements and characteristics, which had not been previously experienced in that area The proposed project does not include any new roadways The proposed project would also include commercial retail land uses, which are consistent with the urban development already existing in this area of the City of El Segundo Automobile and truck traffic associated with these uses would be consistent with existing traffic oatterns No impact would occur )roject- related significant adverse effect could occur if the project were to increase traffic hazards in such a manner as to pose safety hazards or otherwise preclude pedestrian and bicycle movements As noted above, the proposed project would increase traffic at certain intersections within the City of El Segundo However, these intersections are currently signalized and /or provide crosswalks and pedestrian crossing signals to ensure pedestrian safety The proposed project would not impact these signals and would thus not impact pedestrian safety The proposed project would not significantly impact any intersections in the area and thus the proposed project would not preclude the use of the roadway system by bicycles Impacts to pedestrian and bicycle movements under the proposed project would be less than significant A project- related significant adverse effect could occur if the project would involve modification of existing alternative transportation facilities located on- or off -site An existing bus shelter on Grand Avenue may require repositioning due to the construction of the driveway access to the parking structure on Grand Avenue No other off -site construction would be associated with the proposed project On -site construction would occur in areas that do not include any existing alternative transportation facilities No impacts related to alternative transportation facilities would occur A project- related significant adverse effect could occur if the project included rail, port or airport facilities, or had the potential to impact such facilities The proposed project is a commercial development that does not include any rail, port or airport facilities The proposed project would not include any development that would infringe upon or otherwise impact the railroad right -of -way The proposed project is sufficiently distant from LAX that it would not impact operations at that facility No impacts would occur 16 UTILITIES AND SERVICE SYSTEMS Would the project a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Boards X b) Require or result in construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? X 21 Issues and Supporting Information Potentially Significant Less than Significant Less Than Significant No Impact impact With Impact Mitigation Incorporated c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which X could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded X entitlements needed? e) Result in a determination by the wastewater treatment provider which services or may serve the project determined that it has adequate capacity to serve the project's projected demand in addition to the X provider's existing commitments? ` f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? X g) Comply with federal, state, and local statues and regulations related to solid waste X A significant impact may occur if a proposed project includes substantial employment or population growth, which could generate a demand for new systems or substantial alterations to power or natural gas The Southern California Gas Company (TGC) provides natural gas to the City of El Segundo, including the proposed project site The proposed project site is located in TGC's Pacific Region, which includes all coastal areas between Long Beach and Ventura The availability of natural gas is based upon present conditions of gas supply and regulatory policies As a public utility, TGC is under the jurisdiction of the California Public Utilities Commission, but can also be affected by actions of federal regulatory agencies Should these agencies take any action, which affects gas supply or the conditions under which service is available, gas service would be provided in accordance with those revised conditions No impact would occur A significant impact may occur if a proposed project includes substantial employment or population growth, which could generate a demand for new systems or supplies, or substantial alterations to communications systems Pacific Bell provides local telephone service in the City of El Segundo Pacific Bell regularly upgrades its system as demands for service increase There would be no need for new systems, new supplies, or substantial alterations to the existing communications systems No impact to communications systems would occur A significant impact may occur if a proposed project would increase water consumption or wastewater generation to such a degree that the capacity of facilities currently serving the project site would be exceeded The City of El Segundo supplies water to proposed project site, from groundwater wells located within the Los Angeles Basin, which is blended with water purchased from the Metropolitan Water District (MWD) These lines are 5oth capable of handling the increase in water consumption generated by the proposed project Water supplies for the Los Angeles Region are considered ample enough to serve existing and planned development in the area, including the proposed project The increase of water consumption generated by the proposed project would not require or result in the construction of new water treatment facilities or expansion of existing facilities No impact to water treatment facilities would occur The City of El Segundo Public Works Department also provides wastewater service to the project area The increase in wastewater would be treated at the Los Angeles County Sanitation Districts Joint Water Pollution Control Plant (JWPCP) The JW PCP has a design capacity of 385 million gallons per day (mgd) and currently processes an average flow of 328 8 mgd There are an 8 -inch wastewater mains in Richmond Street and the alley on the east side of the property Both wastewater mains have sufficient capacity remaining to handle the increase generated by the proposed project The increase in wastewater generation by the proposed project can be served by existing treatment facilities and would not result in the construction of substantial new or expanded wastewater treatment facilities No impact to wastewater treatment facilities would occur A significant impact may occur if a proposed project would increase wastewater generation to result in a need for new systems or supplies, or substantial alterations to sewer or septic tanks This question would apply to the proposed project only if it were located in an area not served by an existing sewer system The proposed project site is located in a developed area of the City of El Segundo, which is served, by a wastewater collection, conveyance and treatment system i4] Issues and Supporting Information Potentially Less than Less Than cw tmpact Significant Significant Significant Impact With Impact Mitigation li Inca orated rated by the City with adequate capacity to serve the project No septic tanks or alternative disposal systems are necessary, nor are they proposed No impact to sewer or septic tanks would occur A significant impact may occur if the volume of storm water runoff increases to a level exceeding the capacity of the storm drain system serving the proposed project site Runoff from the proposed project would be collected on the site and directed towards existing storm drains in the project vicinity Runoff would be remain essentially the same because the amount of permeable surface within the project site would not be significantly altered Because the amount of storm water runoff to the storm drain system would remain virtually unchanged, no impacts to the storm drain system would occur No deficiencies in affected infrastructure exist now, nor are any anticipated with implementation of the proposed project No substantive changes to storm drain facilities would be required as a result of the proposed project No significant impact would occur A significant impact may occur if a proposed project were to increase solid waste generation to a degree that existing and projected landfill capacity would be insufficient to accommodate the additional solid waste Solid waste generated in the project area is typically disposed at the Puente Hills Landfill, in Whittier and the Nu -Way Live Oak Landfill, in Irwindale, however, other landfills serving commercial properties located within the City are also available for solid waste disposal Facility expansions and new landfills are being sought as existing facility capacity diminishes Also, mandatory City waste reduction and recycling programs, such as the Source Reduction and Recycling Program (in compliance with the September 1989 California Integrated Solid Waste Management Act, SB 939) are greatly reducing the amount of waste that would otherwise have entered area landfills A significant impact may occur if a proposed project were to increase water consumption to such a degree that new water sources would need to be identified, or that existing resources would be consumed at a pace greater than planned for by purveyors, distributors and service providers The Department of Public Works is anticipated to be able to meet the water ,remand for the proposed project, as described in Section 8, above No impact to water service would occur 17 MANDATORY FINDINGS OF SIGNIFICANCE. a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self - sustaining levels, threaten to eliminate a plant or animal community, reduce the X number or restrict the range of a rare or endangered plant or animal, or eliminate important examples of the major periods of California history or prehistory? b) Does the protect have impacts that are individually limited, but cumulatively considerable? ( "Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in X connection with the effects of the past projects, the effects of other current projects, and the effects of probable future projects)? C) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or X indirectly A significant impact may occur only if a project would have an identified potentially significant impact for any of the above issues, as discussed in the preceding sections The proposed project is located in a densely populated urban area The proposed project would have no unmitigated significant impacts provided the mitigation measures listed above are implemented The proposed project would not degrade the quality of the environment, reduce or threaten any fish or wildlife species (endangered or otherwise), or eliminate important examples of the major periods of California history or history A significant impact would occur only if a proposed project were to result in short-term environmental effects that would substantially affect or preclude the ability of a jurisdiction to achieve long -term environmental goals The proposed project 23 47 Issues and Supporting Information Potentially Less than Less Than No Impact Significant Significant Significant Impact With Impact Mitigation Incorpotated does not include any significant short-term environmental effects that cannot be mitigated and therefore would not impact to achievement of long -term environmental goals No impact would occur A significant impact may occur if a project, in conjunction with other related projects In the area of the project site, would result in impacts, which are less than significant when viewed separately, but would be significant when viewed together Although there are other past, current and probable future projects in the area surrounding the project site, the project's contribution to cumulative traffic, air quality, and other impact areas would be de minimis (i e , environmental conditions would essentially be the same whether or not the proposed project is implemented) A significant impact may occur if a project has the potential to resuk in significant impacts, as discussed to the preceding sections As noted in the evaluations above, the proposed project would not result in any unmitigated significant impacts Thus, the proposed project would not have the potential to result in substantial adverse effects on human beings 24 A R Draft Mitigation Measures Cultural Resources MM -1 In the event that paleontological or archaeological resources are encountered during the course of grading, all development must cease in these areas until the paleontological or archaeological resources are properly assessed and subsequent recommendations are determined by a qualified paleontologist or archaeological Geology and Soils MM -2 The development shall conform to the California Building Code MM -3, The Developer will submit a Geotechnlcal Report to the Director of Community, Economic and Development Services for review and approval before the Issuance of a grading or building permit The Geotechnlcal Report will be prepared by a State registered engineer, who will recommend mitigation measures to prevent structural damage to the proposed structures Structures will be designed by a State registered engineer to the latest building code adopted by the City of El Segundo Hydrology and Water Quality MM -4 The project applicant shall ensure that an effective erosion control program Is In place throughout the demolition and site preparation phases of the project MM -5 The project applicant shall provide perimeter retainage around the site to minimize sediment runoff to the storm drain system MM -6 The project applicant shall install fossil filters pr other fuel /oil separators at all parking structure storm drain collectors MM -7 Landscape design shall maximize rainwater detention in landscaped areas MM -8 The project applicant shall Incorporate all applicable design measures set forth In the Standard Urban Storm Water Mitigation Plan for Los Angeles County and Cities In Los Angeles County Public Services MM -9 Fire sprinklers are not required in the new "open" parking garage so long as there is provided a twenty foot square opening, every 50 lineal feet, or fraction thereof, on each side of the parking structure that features fire access roadways These roadways will be accessible to the fire department from the exterior and shall not be obstructed in a manner that firefighter or rescue cannot be accomplished from the exterior MM -10 A Class 111 standpipe system is required (1 -1/2 inch hose and 2 -1/2 Inch outlet for structure with four levels MM -11 The project applicant shall Install full Safety Alarm Systems MM -12 The project applicant shall provide for review of site plans by the El Segundo Fire Department for placement of on -site fire hydrants and fire access lanes P \Planning & Building Safety\PROJECT51576- 599 \EA- 581\EA -581 Initial Study revised doc 25 49 City of El Segundo Inter - Departmental Correspondence May 15, 2002 To: Jim Hansen, Director of Community, Economic & Development Services From: Jack Wayt, Chief of Police 6yd� Subject: Environmental Assessment No 581 New commercial building and parking structure Address 121 West Grand Avenue Applicant: City of EI Segundo Property Owner M & B Trust Prior to approval, the plans must indicate the revisions or corrections listed below. To the left of the corrections, please indicate the sheet number of the plans on which the correction has been made • CLOUD ALL CORRECTIONS ON PLANS • NOTES ARE NOT ACCEPTABLE The Police Department has reviewed the plans for EA No 581 1the parking structure only, and returns them with the following comments' LIGHTING: A maintained minimum of one footcandle of light on the ground surface shall be provided around all sides of the parking structure during hours of darkness. Aisles, passageways and recesses related to and within all sides of the building complex shall be illuminated with a maintained minimum of 25 -.50 footcandles during hours of darkness. Lighting devices shall be enclosed and protected by weather and vandal resistant covers Passing from light to dark areas creates a problem for drivers because of the eye's inability to adjust rapidly Therefore, a transitional lighting plan within the parking structure shall be established with a maintained minimum of two footcandles of light on the ground surface Light must be put into the edges of parking stalls rather than lust onto driving aisles Lighting fixtures should be placed over vehicles vs down aisles Florescent, high- pressure sodium or mercury vapor lighting is recommended. White staining concrete is a cost - effective method of increasing general brightness, and when applied to ceilings, walls and beam soffits, reflects light, thereby increasing uniformity and creating a sense of well -being A PHOTOMETRIC STUDY, WHICH INCLUDES ALL OF THE ABOVE, MUST BE PROVIDED PRIOR TO APPROVAL. EL SEGUNDO POLICE DEPARTMENT CRIME PREVENTIONISECURITY CHECKLIST PAGE TWO ADDRESSING The addressing shall be a minimum of 4 " -6" high, visible from the street, of contrasting color to the background and illuminated during hours of darkness BIKE RACK Will there be a bike rack? If so, it shall be located in a busy, well -lit location This will provide optimum security for persons and property LANDSCAPING All landscaping shall be low profile around the perimeter of the structure and it's entranceslexits, taking special care not to limit visibility Floral or grass ground cover is recommended Bushes shall be trimmed to 1 to 2 feet and away from buildings Dense bushes should not be clumped together, this provides a hiding place for criminal activity Trees should be trimmed up to 7 feet If there are exit doors leading from the stairs, they shall have a vision panel TRASH DUMPSTERS Where will the trash dumpster(s) for retail buildings 1A and 1 B be located? If they are located inside the parking structure, they shall be fully enclosed The gate to the dumpster enclosure shall be locked and a wall pack placed directly over the dumpster This will provide employees maximum visibility when they are taking out trash during hours of darkness SECURITY CAMERAS Will there be security cameras in the parking structure? SECURITY PERSONNEL Will there be on -site security personnel? ADDITIONAL PARKING STRUCTURE SECUR17 Y CONCERNS: Will the parking structure be secured after business hours? If it is not, this structure may become a place where juveniles congregate for the purpose of skateboarding, partying or selling drugs In addition, vehicles parked overnight will attract auto burglars and thieves TRAFFIC DIVISION CONCERNS See attached memo from Traffic Sgt Roger Stephenson 51 Fire Department Comments for 121 W Grand Fire Access Roads The approved Fire Department access for this parking structure is the Alley, to the East, and Richmond Street, to the West. NOTE; The driveway access that runs East and West, in front of the market, is too close to both, the parking structure and the market to be considered for fire access No on- site fire lanes are required, however, parking will be prohibited on Richmond Street, adjacent to the parking structure as this will be considered the required access to the parking structure, as currently configured. 2 Automatic Fire Sprinklers Automatic fire sprinklers are required to be installed in the market and are already provided The system was certified in 2001 Fire Spnnklers are not required in the open parking garage so long as there is provided a 20 square foot opening, every 50 lineal feet, or fraction thereof, on each side of the parking structure that features fire access roadways These openings shall be accessible to the fire department from the exterior and shall not be obstructed in a manner that firefighting or rescue cannot be accomplished from the exterior Standpipes A class III standpipe system is required (1 -1/2 inch hosed and 2 -1/2 inch outlets for structure with four levels This structure appears to have four levels 4 These requirements are general Specific requirements will be based upon a review of plans and information submitted under a building permit application �unSU MAY 2 21002, U PLANNING DiVIS10N CITY OF EL SEGUNDO INTER- DEPARTMENT MEMORANDUM DATE February 28, 2002 TO Sandra Lane Economic Development Manager FROM Bellur Devaraj City Engineer SUBJECT Proposed Parking Garage at 121 West -Grand Avenue The following comments were made by Public Works at the. February 27, 2002, DSG meeting A traffic study should be conducted by the applicant to evaluate traffic impacts on the alley and adjacent streets, and on the stop sign intersection of Grand Avenue and Richmond Street The need for a traffic signal at this intersection as a mitigation measure should be evaluated as part of the study. 2. The existing bus stop /shelter on Grand Avenue may need to be relocated to construct the entrance driveway. The applicant should coordinate the relocation options with the Metropolitan Transportation Authority 3. Replace all damaged sidewalks abutting the property and construct handicapped access ramps at abutting street comers 4 Re- construct the alley pavement abutting the property More detailed comments will be made after preliminary design drawings have been developed BKD dr cc Andres Santamana, Director of Public Works N VJEAIOSPA W G W GE AT 121 WEST GI P AVENUE �IE CE9VED MAY 2 0 2001, PLANNING DIVISION 51 El St� INTER- DEPARTMENTAL CORRESPONDENCE TO: Paul Gary, Senior Planner FROM: Vimone Jurjis, Building Safety Manager DATE: May 21, 2002 SUBJECT: Comments to Initial Study 121 West Grand Avenue 1 Item 6 GEOLOGY AND SOILS a) (u) Strong seismic ground shaking? This item should be changed to Less than Significant Impact With Mitigation Incorporated Applicant shall submit geotechrucal report for review prior to issuance of any grading or building permit Geotechmcal report shall be done by a registered engineer allowed by the state, who shall recommend mitigating measures to prevent structural damage to proposed structures Structure shall be designed by a registered engineer allowed by the sate to the latest burldmg code adopt by the City of El Segundo 2 Item 8 HYDROLOGY AND WATER QUALITY a) Violate any water quality standards or waste discharge requirements? This item should be changed to Less than Significant Impact G 4 m D m CO O D r "0 -�_-1 7 D Z Z� Q W n� �O C Z M0 CJ) cr) -� --q c:1) OM �i � � o 3 N ° � o N 0 m �y r�►+ 4J 0P m n � 55 06 -02 -02 02 -310 • International ,� Parking Design, Inc {r 128- 0 63 —0' 63 —0" 1 -0' k r N VON �f 1 � RAW up UP \� 4 I s — 4w 1 1 ON UP ON UP - � Ut 1 i a 2 D 8 2 m i + P oN uP w+ UP w N 1 II � IJ O O � I Q � — o I I � N N i O _ O�Ir GROUND LEVEL 56 05 -02 -02 02 -3t6 •� Intemarional Parkin OS -02 -02 02 -3I0 •� J Intemational C 0 Q- 0 C M. r J W W O � m �o og om 4`\ O ^ Ca tjfj U Z: a Q) En 'a.Gl w N O o 1 O � � a o � _ z 0 F- Q w I w F- W 59 W J J W p< D U O ^ Ca tjfj U Z: a Q) En 'a.Gl w N O o 1 O � � a o � _ z 0 F- Q w I w F- W 59 w o- O-- 01 Cc N p Ca o IZ r Y CC F.r'i Qy Q W 0 3 O N � O O • z O r Q w J W Q W fl NORTH ELEVATION SOUTH ELEVATION 05-02 -02 02-310 4 • International Parking 'N Design, Inc. Al.hlt.~. Engl ... 1w C.n.Wtlnq Ul O U W/ V/� /J V Z J D m o CZ Z U g O 3 c v) c N � O O e I N � 0 0 W� CJm 4 mU 2—C m 62 LA92363 3 LEASE AGREEMENT by and between 612 TWIN HOLDINGS, LLC as Landlord and THE CITY OF EL SEGUNDO as Tenant DRAFT si 9 ATIM LEASE AGREEMENT This LEASE AGREEMENT (the "Lease "), dated for reference purposes only as of , 2002 (the "Effective Date "), is made and entered into by and between 612 TWIN HOLDINGS, LLC, a California limited liability company, ( "Landlord "), and THE CITY OF EL SEGUNDO, a municipal corporation ( "Tenant "), who agree as follows RECITALS. This Lease is made with reference to the following facts and circumstances A Landlord is currently in escrow to acquire that certain real property consisting of approximately twenty -eight thousand eight hundred forty (28,840) square feet, located in the City of El Segundo, and more particularly described on Exhibit "A" attached hereto, together with all rights and mterests, if any, of Landlord in and to the land lying in the streets and roads in front thereof and adjoining thereto and in and to any easements and other tights appurtenant thereto (collectively, the "Property") B Landlord proposes to construct improvements on the Property consisting of (i) a two story, three level parking structure (the "Parking Structure ") containing approximately filly -eight thousand five hundred (58,500) square feet and containing one hundred seventy -six (176) automobile parking spaces, and (u) certain retail space (the "Retail Space ") containing approximately an additional seven thousand (7,000) square feet of ground floor area, all to be constructed by Landlord as more particularly set forth in the Construction Agreement (the "Construction Agreement') to be entered into by and between Landlord and Tenant in the form of Exhibit `B" attached hereto C Landlord desires to lease to Tenant and Tenant desires to lease from Landlord a portion of the Parking Structure consisting of one hundred (100) passenger motor vehicle parking spaces to be located within the Parking Structure (the "Premises ") The exact configuration -and location of the Prermses will be as set forth in the Approved Plans and Specifications (as defined in the Construction Agreement) and the parties agree that a site plan showing the configuration and location of the Premises will be attached to this Lease promptly following final preparation of the Approved Plans and Specifications The Tenant shall be assignea ten (10) parking spaces on the ground floor level of the Parkmtr Structure Except as otherwise defined in this Lease, capitalized terms used in this Lease have the following meanings "Affiliate" means any person or entity (including, without Limitation, any governmental entity or agency) (collectively, a "Person ") which (1) directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, the Tenant or Landlord or (2) directly or indirectly owns twenty -five percent (25 %) or more of the equity interest of which is held beneficially or of record by the Tenant or Landlord, as the context may require "Control" means the possession, directly or indirectly, of the power to cause the direction of the Lk92363 3 C 4 -1- U DRAFT management and policies of a Person, whether through the ownership of voting securities, by contract, family relationship or otherwise "Hazardous Materials" means any flammable explosives, radioactive materials, asbestos, PCB's, hazardous wastes, toxic substances or related materials, including, without limitation, all substances, wastes, pollutants and contaminants now or hereafter included within such (or any similar) term under any federal, state or local statute, ordinance, code, rule or regulation now existing or hereafter enacted or amended "Interest Rate" means the rate of interest to be charged under the provisions of this Lease, which, unless expressly stated otherwise, shall be four percent (4 %) above the annualized rate of interest publicly announced from time to time by Bank of America National Trust and Savings Association in San Francisco, California (or its successor), as its "reference rate" and such interest shall be computed on the basis of monthly compounding with actual days elapsed compared to a 365 -day year, provided, however, in no event shall the Interest Rate exceed the maximum lawful rate of interest in the state in which the Property is located "Indemnified Parties" means either the Landlord Indemnified Parties or the Tenant Indemnified Parties, as applicable, an "Indemnified Party" means any individual within either such group, as applicable "Landlord's Estate" means all of Landlord's right, title and interest in its fee estate in the Property all right, title and interest in all improvements located thereon, including, without limitation, the Parking Structure, and all other Rent and benefits due Landlord hereunder "Lease Year" means each successive period of twelve (12) calendar months during the tetra of this Lease, commencing on the Commencement Date "Legal Requirements" means all present and future laws, statutes, requirements, ordinances, orders, judgments, regulations, administrative or judicial determinations, even if unforeseen or extraordinary, of every governmental or quasi - governmental authority, court or agency claiming jurisdiction over the Parking Structure now or hereafter enacted or in effect (including but not limited to environmental laws and those relating to accessibility to, usability by, and discnmination against, disabled individuals), and all covenants, restrictions and conditions now or hereafter of record which may be applicable to all or any portion of the Parking Structure, or to the use, occupancy, possession, operation, maintenance, alteration, repair or restoration of any of the Parking Structure, even if compliance therewith necessitates structural changes to the Parking Structure or the making of improvements, or results in interference with the use or enjoyment of any of the Parking Structure "Operating and Maintenance Costs" means all reasonable, out -of- pocket costs and expenses paid or incurred by Landlord in operating, lighting, providing utility services to, insuring, repairing and maintaining the Parking Structure, provided, that Operating and Maintenance costs shall not exceed the cost of operating, lighting, providing utility services to, insuring, repairing and maintaining similar parking structures within Los Angeles County, California Operating and Maintenance Costs shall include, but shall not be limited to, the following, without duplication water, sewer, electricity and refuse removal, salaries and wages (including employment taxes) of L�62363 3 �+ C _2 f• 1 DRAFT those persons performing services, and the cost of maintenance contracts, exclusively pertaining to the operation, servicing, repair and maintenance of the Parking Structure, premiums for liability, property damage and workers' compensation insurance (without duplication of any insurance prermums charged under Article 8), including any deductible amounts paid by Landlord under such insurance policies, costs and expenses of planting, replanting and maintaining landscaped areas, repainting, restnping, reparnng and resurfacing parking areas, the cost of permits required for operation of the Common Areas, or any part thereof, rental costs of equipment used exclusively in connection with the operation, servicing, repair and maintenance of the Common Areas, and an administrative fee of not to exceed ten percent (10 %) of Operating and Maintenance Costs (exclusive of Real Property Taxes and insurance premiums), whether such administration is performed by Landlord or a third party employee or management company All Operating and Maintenance Costs of a capital nature shall be amortized, on a straight -line basis, over their full useful life in accordance with generally accepted accounting principles Notwithstanding anything in this Lease to the contrary, Operating and Maintenance Costs shall not include costs and expenses incurred in connection with the original construction of the Parking Structure or in correcting defects in the original construction of the Parking Structure, costs and expenses for which any other tenant or occupant of the Parking Structure is not charged, and, to the extent not covered by insurance costs and expenses incurred in repairing or replacing any portion of the Parking Structure damaged as a result of the negligence or willful misconduct of Landlord or any other tenant or occupant of the Property or its or their respective agents, employees, contractors or representatives, except that the amount of insurance deductibles paid by Landlord, if any, in connection with the repairing or replacing of any portion of the Parking Structure damaged as a result thereof shall be included in Operating and Maintenance Costs ` Real Property Taxes" means all real property taxes and assessments (whether general or special) levied or assessed on the Parking Structure and the land underlying the Parking Structure for each fiscal tax year or portion thereof during the term of this Lease and includes taxes imposed on Landlord a,ainst or measured by rents or rental income payable pursuant to this Lease levied or assessed in lieu of or as a direct substitute for real property taxes and assessments levied or assessed on the Property and/or any improvement located thereon, but excludes any net income tax, inheritance tax or estate tax of Landlord "Rent" means the Monthly Rent and all other sums due and payable to Landlord by Tenant hereunder "Sublease" means any sublease of any of the automobile parking spaces located in the Premises (but not the Premises itself), entered into in accordance with Article 12 below, and any modification, extension or termination of any of the foregoing entered into in accordance with Article 12 below "Subtenant" means any person or entity entitled to the use of any of the parking spaces located in the Premises under any Sublease "Tenant's Contribution" has the meaning assigned to that term in the Construction Agreement "Tenant's Estate" means all of Tenant's right, title and interest in its leasehold estate in the LA92363 3 DRAFT Premises and its interest under this Lease "Tenant's Pro Rata Share" means a fraction, the numerator of which is 100 and the denominator of which 176 "Termination Payment" means the amount determined by multiplying the Tenant's Contribution times a fraction, the numerator of which is the number of full and partial calendar quarters which remain during the term of the Lease at the date of calculation and the denominator of which is the total number of full and partial calendar quarters during the term of the Lease ARTICLE 1. LEASE. 1 1 Demise On and subject to the terms and provisions of this Lease, Landlord hereby leases to Tenant and Tenant leases from Landlord the Premises, together with all easements, rights of access, ingress and egress and all other rights appurtenant thereto 12 Memorandum of Lease This Lease shall not be recorded, however, to establish the status of Tenant's title and to establish the priority of this Lease as a condition of title, Landlord and Tenant agree to execute and acknowledge a short form Memorandum of this Lease, in the form attached hereto as Exhibit "C ", which shall be recorded in the Official Records of Los Angeles County, California on the Effective Date 1 3 "AS -IS" Lease Except as otherwise provided in this Lease and in the Construction Agreement Tenant acknowledges that as of the Commencement Date it shall have made such inspections as deemed necessary by Tenant, and Tenant shall accept possession of the Premises in its "AS -IS" "WHERE -IS" condition existing as of the Commencement Date Notwithstanding the foregoing to the contrary, Landlord warrants and covenants that (a) It has full right and authority to enter into this Lease and that prior to the commencement of construction of the Parking Structure, Landlord shall have good and marketable title to the Property (b) As of the Commencement Date (as defined in Section 2 2), Landlord will deliver the Prenvses to Tenant free from all claims to possession, use or occupancy thereof by all persons, other than Tenant and persons claiming by, under or through Tenant (c) At the Commencement Date of the term of this Lease, there will be no Hazardous Materials located in, on, under or about the Premises (d) Provided that no Event of Default (as that term is defined in Section 13 1, below) has occurred under the terms of this Lease and has continued beyond all applicable cure periods as set forth in this Lease, Tenant shall quietly have, hold and enjoy the Premises throughout the entire term of this Lease without interruption or disturbance by Landlord and those claiming under or through Landlord ARTICLE 2. TERM. 2 1 Len--t h Unless sooner terminated as provided in this Lease, the term of this Lease shall LA92363 3 67 DRAFT be thirty -four (34) years Unless otherwise expressly indicated, whenever reference is made in this Lease to the term of this Lease, such reference shall include any extensions of the term of this Lease 22 Commencement Subject to the provisions of Article 21, the term of this Lease shall commence on the date (the "Commencement Date ") which is the last to occur of (i) the date on which the final Certificate of Occupancy for the Parking Structure (including the Premises) has been issued by the City of El Segundo (the "City"), and (u) the date on which the Approved Supermarket Operator (as hereafter defined) first opens for business to the general public in the Supermarket Space (as hereafter defined) The term "Approved Supermarket Operator" means a lessee which has been approved in writing by Tenant and which is leasing the Supermarket Space from Landlord pursuant to a lease having an initial term of at least ten (10) years and under which the lessee is obligated to open a first - class, full- service grocery supermarket in the Supermarket Space (In this connection, it is agreed by Tenant that Jerry Preston, operator of Cooke's Family Market of Malibu, California, is deemed to be an Approved Supermarket Operator) The term "Supermarket Space" means the supermarket budding located on the land which is adjacent to the Property and which is more particularly described in Exhibit "D" attached hereto Landlord agrees that, if at any time during the ten (10) year period beginning on the Commencement Date, the lease to the Approved Supermarket Operator of the Supermarket Space has been surrendered, cancelled or otherwise terminated, Landlord will use its best efforts to re -lease the Supermarket Space for use as a grocery supermarket and on terms substantially similar to those which were contained in the lease to the Approved Supermarket Operator 2 3 Acknowledsment of Commencement Date On the Commencement Date, or within a reasonable time thereafter, Landlord and Tenant shall execute two copies of a written "Acknowledgment of Commencement of Term" in the form attached hereto as Exhibit "E" for the purpose of acknowledging and confirming the Commencement Date ARTICLE 3. RENT. 3 1 Payment All Rent payable to Landlord hereunder shall be paid without demand or offset to Landlord in lawful money of the United States of America, in immediately available funds, at Landlord's address set forth herein or at such other place as Landlord may designate in writing from time to time If any Rent payment date (including the Commencement Date) falls on a day of the month other than the first day of such month or if any payment of Rent is for a period which is shorter than one month, the Rent for any fractional month shall accrue on a daily basis for the period from the date such payment is due to the end of such calendar month or to the end of the Term at a rate per day which is equal to 1/365 of the applicable annual Rent All other payments or adjustments required to be made under the terms of this Lease that require proration on a time basis shall be prorated on the same basis 3 2 Monthly Rent Landlord is entitled to payment of monthly rent (the "Monthly Rent ") from Tenant during the entire term of this Lease, in advance on or before the first day of each and every calendar month during the term, in an amount equal to Sixteen Thousand One Hundred Sixty -Six and 67/100 Dollars ($16,166 67) per calendar month 3 3 Direct Payment to Lender Landlord and Tenant acknowledge that concurrent with the execution of this Lease, Landlord has encumbered its fee interest in the Property with a loan LA913b3 3 (the "Fee Loan "} from a thin DRAFT FT that upon notice to Ten d patty lender (the "Fee I� the consent of I, ant from the Lender) Landlord under tins anadlosdne to to the ee Lender allanorhali have the right, wi yagr� Lease Tenant hereby Promissory note and deed necessary to sans such shout not, to the Fee of trust f' Landlord's Portion Of the Monthl 0e to or Tenant underetlusr by Tenant which evidence the F y Payment Obligations Y Rent due Lease for s' such amounts shall e Loan t Of under the uch calendar all be credited a upon Aayment p month against the Monthl such amounts Y Rent payable by 41 ARTICLE 4. OP :_ :��GAND Landlord's Mamt n rd P and maintain the Parton ante Landlord, as a INTF1� F OSTS order, condition g Structure part of Operating Landlord and repay (Including thearid every Part thereof,incl and Maintenance Co under this Section 4 1 Includes sts, shall nonstructural repairs withoutn� of necessary replacceemgen s Premises, in fast -class Premises, and replacements limnanon, the ) The gbh Structure are caused however, that to theee arkIng Structure °f au necessary stru of To defined in Section 7 2, Y the acts or extent such re n part thereo and below) and omissions of Tena pairs or replacements to Mcludutg the amounts), then Tenant nt or the Of such re shall are not covered he Par pairs or re Landlord ant Parties king Pay to en Costs Placements , within fifteen {1 S surance (including (as that term is Tenant hereby and such cost ) days ofde a any dedu and Sections y waives any and all co shall not be included in O mand therefor, ctible ordmanCe 194I and 1942 of the 'hts under t the cost now or here California he benefits O f Subsection e ng and Maintenance after in effect Civil Code or under 1 of Section 19,2 42 Y similar. law, fusr d Tenant's Payment statute, a�' of each Mont the der COtencin monthly an O g an the Co peratino during the term, Tenant mmencement Date and contra an amount reasonabl and Maintenance Ch shall the Operating and y estimated by Landlord to' e (the Operating pay as additional on the Landlord Maintenance Costs for be O °e- twelfth Maintena Rent, may adjust the monthly the then current ofTen nCe Char Year on the basis ofL , Y Operator uiTent calendar ant's Pro Rata Share in ninety (90) days after theeord s reasonabl $and Maintenance Year (January 1 - D haze of such O nd of each y anticipated costs for Charge at the end of eCember;l) Operating- and Maintenance calendar the followin each calendar and Maintenance Char Costs Year, Landlord shall g calend Costs shall be Charges Paid b (the "Statement of „h'rnrsh to Tenant star Within Tenant's pro certified b Y Tenant to Landlord for Costs ), and t ant a statement of Rata Share Y the authonzed such calendar year total of the Operating Operating of the op °fftcer Partner or Landlord the d Mamten erating and Maintenance agent oFLandlord The Statement of deficient ante Charges paid b Costs for an as be Tenant's Pr Y within fift Y Tenant for Y calendar mg correct the O are of the ) days after such calendar Year exceeds the ° to Sh een (15 c Peranng and Maimen Operatin the receipt of the year, Tenant shall P, the amount of the ante Charg g and Maintenance Costs for an Statement of unless it is the end excess from the ps Paid g Tenant for such y calendar Costs If time the of the to Peratin calendar year is less than Statement of Costsd which case g and Maintenance y�> Tenant may delivered to T Tenant shall reimburse ges next due Y deduct ant Ten h such excess to TenLandlord, Tenant's ob gation to reimburse ant at the Landlord and 69 DRAFT maintained true and complete books of account, containing a record of all Operating and Maintenance Costs for each calendar year for a period of at least thirty -six (36) months after the end of such calendar year Upon at least ten (10) days' prior written notice to Landlord, given within thirty -six (36) months after the close of a given calendar year, such books of account for such calendar year shall be made available to Tenant and its employees and accountants for examination, provided, that no more than one (1) such examination shall be made respecting any given calendar year Tenant's failure to give such written notice of request within thirty -six (36) months after the close of a given calendar year shall be deemed to be Tenant's final and conclusive acceptance of and agreement with the amount of Operating and Maintenance Costs paid by Tenant for such calendar year If an examination detemnnes that a previously submitted Statement of Costs was maccurate and that a portion Operating and Mamtenance Costs were therefore erroneously paid or unpaid, then there shall be an adjustment so that the correct amount of Operating and Maintenance Costs will have been paid Each party agrees to pay to the other, on demand, such amount as may be necessary to effectuate any such adjustment If an examination determiries that a previously submitted Statement of Costs was overstated by five percent (5 %) or more of the actual Operating and Maintenance Costs for a given calendar year, then Landlord shall reimburse Tenant for Tenant's reasonable costs and expenses (including, without limitation, outside auditor's fees) in conducting the examination ARTICLE 5. USE. COMPLIANCE WITH LAW. 5 1 Use The Premises may be used for the parking of one hundred (100) passenger motor .ehicles and for no other purpose 5 2 Compliance with Laws Landlord, as a part of Operating and Maintenance Costs, shall comply with all Legal Requirements respecting the design, layout, materials, structure, use, occupation, control and enjoyment of the Parking Structure and in the prosecution and conduct of its business thereon Landlord shall have the right to contest or review by appropriate legal or adm iustrative proceeding the validity or legality of any such Legal Requirement so long as such contest or review has the effect of staying the enforcement of, or of tolling Landlord's obligation to comply with, such Legal Requirement during the pendency of such contest or review 5 3 Covenant aEzainst Liens Tenant has no authority or power to cause or permit any lien or encumbrance of any kind whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be placed upon the Property or Parking Structure and any and all bens and encumbrances created by Tenant shall attach to Tenant's Estate only and in no way shall encumber Landlord's Estate ARTICLE 6. TAXES AND UTILITIES. 61 Real Property Taxes Throughout the term of this Lease, Landlord shall pay, prior to delinquency, all Real Property Taxes and Tenant shall pay to Landlord its Pro Rata Share of the amount thereof Landlord shall fi=sh to Tenant a copy of the Real Property Tax bill(s) Tenant shall make payment, as additional Rent, to Landlord of its Pro Rata Share of the Real Property Taxes within thirty (30) days after receipt by Tenant of such copy of the Real Property Tax bill(s) or ten (10) days prior to delinquency, whichever is later Real Property Taxes shall not be included as a part of Maintenance and Operating Costs L-02363 z -7- n DRAFT 62 Real Property Taxes Payable in Installment paid by Tenant under this Lease shall be permitted to be paid mRinstst�ents, the ewh�e or not Landlord elects to pay such Real Property Taxes in installments , Tenant shall only be obligated to pay the portion of such Real Property Taxes which would have been payable by Tenant under this Landlord elected to pay such Real Property Taxes in installments Lease hail 6 3 Real Pro ertv Tax Increases Notwithstanding any provision of this Lease to the contrary, except as set forth in this Section 6 3, below, Tenant shall not be liable for any increase is Real Property Taxes which results from the sale, transfer or other disposition of the Property or any part thereof or any interest of Landlord therein which constitutes a change in ownership which would require or allow the reassessment of the Property or any part thereof by any tax authorities (a "Change in Ownership Reassessment ") In such case, Tenant shall remain liable only for the increases in Real Property Taxes which would normally occur annually had there not been a Change in Ownership Reassessment (the "Normal Increases ") For purposes of this Lease, the amount of each annual Normal Increase is defined as a Real Property Tax increase of two percent (2 %) per year, or, to the extent that Proposition 13 is repealed or modified, the amount of the annual Normal Increase as permitted pursuant to such successor statute or proposition (collectively, the "Successor Statute ") After any Change in Ownership Reassessment, the sum thereafter payable by Tenant for Real Property Taxes under this Lease shall not exceed for any year the sum that would have been due for that year if Real Property Taxes had increased at the rate of two percent (2 °,o) compounded annually, or, if applicable, the annual Normal Increase permitted under the Successor Statute, from the tax fiscal year immediately preceding the tax fiscal year for which a Change in Ownership Reassessment is effective Notwithstanding the foregoing, at the option of Landlord, upon written notice to Tenant given within Landlord's receipt of a tax bill reflecting a Change in Ownership Reassessment nt' the Provisions of this Section 6 3 shall not apply to, and Tenant shall be responsible for the increase in Real Property Taxes attributable to, such Change in Ownership Reassessment, provided, that Landlord may only exercise such option (a) with respect to one (1), and no more than one (1), Change in Ownership Reassessment during the initial fifteen (15) Lease Years of the term of this Lease and (b) with respect to one (1), and no more than one (1), Change in Ownership Reassessment attributable to the last nineteen (19) Lease Years of the term of this Lease 64 Real Property Tax Contest Landlord shall have the right to contest the amount or validity of any Real Property Tax In the event Landlord contests the amount or validity of any Real Property Tax and obtains a refund, Landlord shall reimburse to Tenant Tenant's Pro Rata Share of such refund following deduction by Landlord of expenses incurred in prosecuting such contest of the Real Property Tax It being acknowledged that Tenant is a public entity, Tenant shall have the right, at Tenant's sole cost and expense, to apply for a waiver of the obligation to mare a portion of the Real Property Tax payments due to the use of a portion of the Parking Structure by Tenant and, if required by Tenant, Landlord shall, at Tenant's sole cost and expense, cooperate with Tenant in applying for such a waiver If Tenant is successful in obtaining such waiver of a the RPaI Prnnartv Tavac ac a rPCnit of the neP of a nnminn of the Parin nnnt nv Ctnlrtl— by Tp t of pant thin 71 DRAFT and effect 65 Personal Property Taxes Tenant shall pay before delinquency all taxes and assessments levied or assessed on the trade fixtures, equipment and all other personal property of Tenant, if any, situated on or installed in the Premises 66 Utilities Landlord, as a part of Operating and Maintenance Costs, shall pay all charges for water, gas, electricity, sewer service, refuse removal and all other utilities and services supplied to the Parking Structure during the term of this Lease, together with any taxes thereon ARTICLE 7. INDEMNIFICATION, 71 Landlord's General Indemnity Landlord, at its sole cost and expense and not as a part of Operating and Maintenance Costs, shall protect, indemnify, defend (by counsel reasonably acceptable to Tenant) and hold harmless the Tenant, Tenant's Affiliates and its and their respective partners, members, shareholders, trustees, beneficiaries, officials, officers, directors, employees, agents, heirs, representatives, successors and assigns (collectively, the "Tenant Indemnified Parties ") from and against all claims, liabilities, penalties, fines, judgments, forfeitures, losses, costs, or expenses (including reasonable attorneys', consultants' and expert fees) (collectively, "Claims ") ansmg from, relating to, or in connection with (i) the breach of its obligations under this Lease, and (u) the negligence or willful misconduct of Landlord (whether or not such misconduct constitutes a violation of applicable Legal Requirements or of this Lease) or its members, officers, agents, employees, servants, contractors or representatives, except to the extent such injury, loss, claims or damage is caused by the negligence or willful misconduct of Tenant or the Tenant Indemnified Parties 72 Tenant's General Indemnity Tenant shall protect, indemnify, defend (by counsel reasonably acceptable to Landlord) and hold harmless the Landlord, Landlord's Affiliates and its and their respective partners, members, shareholders, trustees, beneficiaries, officers, directors, employees, agents, heirs, representatives, successors and assigns (collectively, the "Landlord Indemnified Parties ") from and against all Claims arising from, related to, or in connection with (i) the breach of its obligations under this Lease, and (n) the negligence or willful misconduct of Tenant (whether or not such misconduct constitutes a violation of applicable Legal Requirements or of this Lease) or its Subtenants or their respective members, officers, agents, employees, servants, contractors, representatives, guests, invitees or permittees, except to the extent such injury, loss, claims or damage is caused by the negligence or willful misconduct of Landlord or the Landlord Indemnified Parties 7 3 Hazardous Materials Indemnity Landlord, at its sole cost and expense and not as a part of Operating and Maintenance Costs, shall protect, indemnify, defend (by counsel reasonably acceptable to Tenant) and hold harmless the Tenant Indemnified Parties, and each of them, from and against all Claims ansmg from, relating to, or in connection with (a) the use, generation, storage, disposal, release or threatened release of Hazardous Materials m, on, under or about the Property due to the acts or omissions of Landlord, its members, officers, agents, employees, servants, contractors or representatives, and (b) any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such action is required or necessary prior to or following the Commencement Date of the term of this Lease, to the full extent that such action is attributable, 1_1,92163 3 -9- DRAFT directly or indirectly, to the presence, use, generation, storage, disposal, release or threatened release of Hazardous Materials in, on, under or about the Property due to the acts or omissions of Landlord, its members, officers, agents, employees, servants, contractors or representatives Tenant shall protect, indemnify, defend (by counsel reasonably acceptable to Landlord) and hold harmless the Landlord Indemnified Parties, and each of them, from and against all Claims arising from, relating to, or in connection with (a) the use, generation, storage, disposal, release or threatened release of Hazardous Materials in, on, under or about the Property due to the acts or omissions of Tenant, its members, officers, agents, employees, servants, contractors, representatives, guests, mvitees or permmees, and (b) any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such action is required or necessary prior to or following the Commencement Date of the term of this Lease, to the full extent that such action is attributable, directly or indirectly, to the presence, use, generation, storage, disposal, release or threatened release of Hazardous Materials m, on, under or about the Property due to the acts or omissions of Tenant, its members, officers, agents, employees, servants, contractors, representatives, guests, invitees or permittees 74 Actions Against Indemnified Parties In the event that any action or proceeding is brought against any of the Indemnified Parties by reason of any or all of the foregoing liabilities, the indemnifying party, upon written notice from any Indemnified Party, will, at the indemnifying party's sole cost and expense, resist or defend such action or proceeding with counsel selected by such indemnifying party, subject to the Indemnified Party's prior approval, or if the indemnifying party shall fail to do so, fund or reimburse such Indemnified Party for the reasonable cost for such Indemnified Party to do so Each of Landlord and Tenant, as the case may be, shall, promptly after receipt of written notice thereof, give the other party written notice of any claims, actions or proceedings brought against any of the Indennrufied Parties to which such party believes the inderimfymg party's indemnification obligations apply 7 5 Survival Each party's indemnity obligations under this Article 7 and elsewhere in this Lease arising prior to the expiration, termination or assignment of this Lease shall survive such expiration, termination or assignment ARTICLE S. INSURANCE. 8 1 Landlord's Insurance Throughout the term of this Lease, Landlord shall maintain in full force the insurance coverages required by this Section 8 1 and Tenant shall reimburse Landlord for the prennums for such insurance as provided in tlus Section 8 1 (a) Landlord shall maintain on the Parking Structure, the Retail Space and all other improvements from time to time located on the Property (collectively, the "Improvements ") a policy or policies of casualty insurance providing protection against any peril included within the classification "All Risks," including, without limitation, fire and extended coverage, vandalism coverage and malicious rmschief, coverage for sprinkler and flood damage, to the extent of at least one hundred percent (100 %) of the full replacement value thereof, without deduction for depreciation, but excluding the replacement value of underground utilities, foundations and subsurface footings The foregoing pohcy(ies) shall also include coverage for earthquake and acts of terrorism if required by any lender holding a first priority mortgage or deed of trust on the Property, in which event the premium attributable to such coverage LA9'_363 3 l0 73 shall be included in Operating and Maintenance Costs, otherwise, the foregoing pohcy(ies) shall only include coverage for earthquake and acts of terrorism if required by Tenant, in which event the premium attributable to such coverage shall be paid for by Tenant Such policy or policies may be subject to a total deductible of not to exceed Ten Thousand Dollars ($10,000) Any and all proceeds of such insurance shall be used for the repair and restoration of the Improvements as provided by Article 10 hereof From time to time during the term of tins Lease, Landlord or Tenant may request that the company or companies issuing the insurance pohcy(ies) required to be maintained under this Section 81 redetermine the full replacement value of the Improvements on the Property, and the insurance pohcy(ies) shall be adjusted according to such redetermination (b) Landlord shall maintain commercial general liability insurance for bodily injury, death, personal injury and property damage (including completed operations and broad form contractual liability coverage) with coverage limits of not less than Five Million Dollars ($5,000,000) combined single limit, per occurrence and in the aggregate, and subject to a total deductible of not to exceed Ten Thousand Dollars ($10,000), insuring Landlord and Tenant against any and all Lability of the insured with respect to the Property or ansing out of the maintenance, use or occupancy thereof All such personal injury Lability insurance and property damage liability insurance shall specifically insure the performance by Landlord of its indemnity obligations under Section 7 1, but the Lrmts of such insurance shall not limit Landlord's obligations under Section 7 1 Not more often than each five (5) years, at the request of Tenant, the amount of such insurance shall be adjusted to the amount commonly prevailing in Los Angeles County, California for similar coverages respecting similar properties and uses, all as Landlord and Tenant shall mutually agree, which agreement shall not be unreasonably withheld (c) Landlord shall maintain rental interruption insurance equal to an amount equal to twelve (12) months Monthly Rent, Operating and Maintenance Costs and Real Property Taxes (d) Tenant shall make payment, as additional Rent, to Landlord of its Pro Rata Share of the premiums required to be paid by Landlord for maintaining the insurance required by this Section 8 1 within thirty (30) days after Tenant receives from Landlord a copy of the premium notice 82 Tenant's Insurance Throughout the term of this Lease, at Tenant's expense, Tenant shall maintain in full force the insurance coverages required by tins Section 8 2 (a) Tenant shall maintain a policy or policies of fire and extended coverage insurance, with vandalism and malicious endorsements, to the extent of at least one hundred percent (100 %) of the full replacement value of all leasehold improvements and personal property, if any, installed or kept by Tenant in the Premises 8 3 General Requirements All policies of insurance provided for herein shall be issued by insurance companies with a general policyholder's rating of not less than A and a financial rating of not less than "VIII" as rated in the most current available "Best's" Insurance Reports, qualified to do business in the state of California, provided, that the insurance required to be maintained by Tenant may be maintained through Tenant's membership in a California joint powers authority organized for the purpose of providing insurance protections to it members The policies of insurance under Section 8 1(a) shall each contain a cross - liability endorsement and, at Landlord's 1.492363 3 _11_ a A election, shall name Landlord and Landlord's mortgagees or trust deed beneficiaries as "additional insureds " Executed copies of all policies of insurance required hereunder or certificates thereof shall be delivered by each party to the other concurrently with the execution of this Lease, and thereafter executed copies of renewal policies or certificates thereof shall be delivered by each parry to the other within thirty (30) days prior to the expiration of the term of each such policy As often as any policy shall expire or terminate, renewal or additional policies shall be procured and maintained by the parties in like manner and to like extent All policies of insurance delivered hereunder must contain a provision that the company writing said policy will give to the recipient (and any other additional insureds) thirty (30) days' advance written notice of any cancellation, lapse, reduction or other adverse change respecting such insurance All public liability, property damage or other casualty policies required to be maintained by Landlord shall be written as primary policies, not contributing with or secondary to coverage which Tenant may carry The obligations of the each party to carry the insurance provided for in this Article 8 may be satisfied by means of a so- called blanket policy or policies of insurance earned and maintained by such party, provided, however, that that the coverage afforded and required by this Article 8 will not be reduced or diminished by reason of the use of such blanket policies of insurance, and provided further that the requirements set forth in this Article 8 are otherwise satisfied Each party agrees to permit the other at all reasonable times to inspect any policies of insurance which such party has not delivered to the other party 84 Waiver of Subrogation Landlord and Tenant each hereby waive any rights they may have against the other and their respective sublessees, partners, members, directors, officers, employees, agents, successors and assigns on account of any loss or damaged occasioned to Landlord or Tenant, as the case may be, from any risk which is covered by the insurance policies required to be maintained under this Article 8, provided that nothing set forth herein shall limit the liability of Landlord or Tenant to the other party hereto for any liability assumed under this Lease to the extent that the same is not covered in full by the insurance maintained by the applicable party to this Lease Landlord and Tenant also agree that the insurance policies required to be obtained by them pursuant to this Article 8 shall contain endorsements waiving any right of subrogation which the insurer may acquire against them and their respective sublessees, partners, directors, officers, employees, agents, successors and assigns ARTICLE 9. ALTERATIONS. 91 Tenant Alterations Tenant shall not make any alterations, additions or improvements to the Prerruses without Landlord's prior written consent, which consent Landlord agrees will not be unreasonably withheld (a) General Requirements All alterations, additions and improvements made by Tenant to the Premises shall be done in a good and workmanlike manner and in compliance with all applicable laws, ordinances, rules and regulations of all governmental authorities have jurisdiction Tenant shall pay all costs and expenses in connection vnth any such alterations, additions or improvements and shall keep the Premises and the Property free and clear of all hens of mechanics and matenalmen providing labor and material in connection therewith Tenant shall have the right to contest, in the name of Landlord or Tenant, at Tenant's expense, the validity or the amount of any mechanics' or matenalmen's hens by such judicial or other proceedings as may be appropnate in the jurisdiction, and 75 DRAFT withhold or defer payment of such mechanics' or materialmen's liens, provided, that Tenant shall protect Landlord and the Premises and the Property from any such lien by adequate surety bond or other appropriate security and shall not allow any foreclosure proceedings against the Premises or the Property to be commenced because of such withholding or deferral of payment In connection with any such alterations, additions or improvements, Landlord shall have the right to go upon the Premises to post and keep posted thereon notices of nonresponsibihty, or such other notices which Landlord may deem to be proper for the protection of Landlord's interest in the Premises and the Property 92 Landlord Alterations Landlord acknowledges that Tenant will be making the Tenant Contribution and that Tenant is being granted the Purchase Option pursuant to Article IS of this Lease Landlord further acknowledges, therefore, that Tenant has a material interest in the Property and its utility, condition and value As such, Landlord agrees to the following provisions respecting the making by Landlord of any alterations, additions or improvements to the Property (a) Tenant Consent Except in the event of an emergency which poses an imminent threat of injury to any Person or property, Landlord shall not make any structural alterations, additions or improvements (the "Landlord Alterations ") to the Property without Tenant's prior written consent, which consent Tenant agrees will not be unreasonably withheld In determining whether to grant its consent to the making of any Landlord Alterations, and without limiting any other reasonable bases on wluch Tenant may withhold its consent, it shall be reasonable for Tenant to consider whether the proposed Landlord Alterations will unreasonably interfere with Tenant's use of the Premises, will donnish or adversely affect the suitability of the Parking Structure as an automobile parking garage, or will result in a diminution in the value of the Property over its value Immediately before the making of the Landlord Alterations ARTICLE 10. DAMAGE AND DESTRUCTION. 101 Destruction Due to Insured Risk If, during the term of this Lease, the Property is totally or partially damaged or destroyed from any risk covered by the insurance maintained or required to be maintained by Landlord under Section 8 1, Landlord shall, subject to the provisions of this Article 10, at its cost and expense, forthwith repair and restore the same to substantially the same condition existing immediately prior to said damage or destruction with all reasonable dispatch and diligence Provided that the insurance required to be maintained by Landlord under Section 8 1 has been maintained in full force, if the cost of repair and restoration exceeds the amount of the proceeds received from such insurance, Landlord may elect to terminate this Lease by giving notice to Tenant within thirty (30) days after deterrmmng that the cost of repair and restoration will exceed the amount of insurance proceeds If Landlord so elects to terminate this Lease Tenant, within thirty (30) days after receiving Landlord's notice to terminate, can elect to contribute the difference between the amount of insurance proceeds and the cost of the repair and restoration, in which case Landlord shall repair and restore the Property as herein required Landlord shall give Tenant satisfactory evidence that all sums contributed by Tenant as provided in this Section 10 1 have been expended by Landlord in paying the cost of repair and restoration If Landlord elects to terminate this Lease and Tenant does not elect to contribute toward the cost of repair and restoration as provided in this Section 10 1, this Lease shall terminate and Landlord and Tenant shall be released from all liabilities and obligations under this Lease, except for such as have 102 Destruction Due to Uninsured Risk If, during the term of this Lease, the Property is totally or partially damaged or destroyed from a risk not covered by the insurance maintained or required to be maintained by Landlord under Section 8 1, Landlord shall, subject to the provisions of this Article 10, at its cost and expense, forthwith repair and restore the same to substantially the same condition existing immediately prior to said damage or destruction with all reasonable dispatch and diligence If the cost of repair and restoration exceeds ten percent (10 %) of the then replacement value of the Property, Landlord can elect to terminate this Lease by giving notice to Tenant within thirty (30) days after determming the cost of repair and restoration and the then replacement value If Landlord elects to terminate this Lease, Tenant, within thirty (30) days after receiving Landlord's notice to terminate, can elect to contribute the difference between ten percent (10 %) of the then replacement value of the Property and the cost of repair and restoration, in which case Landlord shall repair and restore the Property as herein required Landlord shall give Tenant satisfactory evidence that all sums contributed by Tenant as provided in this Section 10 2 have been expended by Landlord in paying the cost of repair and restoration If Landlord elects to terminate this Lease and Tenant does not elect to contribute toward the cost of repair and restoration as provided in this Section 10 2, this Lease shall terrmnate and Landlord and Tenant shall be released from all liabilities and obligations under this Lease, except for such have accrued prior to the date of termination 10 3 Termination Payment If this Lease is terminated as provided in this Article 10, at the time of such termination, Landlord shall pay to Tenant an amount equal to the Termination Payment calculated as of the date of termination of this Lease 104 Scope of Repair/Restoration Obligations All repairs and restorations required to be performed under this Article 10 shall be made in compliance with all applicable laws, ordinances, rules and regulations of all governmental authorities having jurisdiction and performed by qualified contractors selected by Landlord All such repairs and restorations shall be performed diligently and in a good and workmanlike manner, using materials as nearly like original materials in kind and quality as may then be reasonably procured 105 Abatement of Rent If, during the term of this Lease, the Property or any part thereof is damaged or destroyed from any cause (whether insured or not) and this Lease is not terminated as provided in this Article 10, Monthly Rent shall be equitably abated (according to the nature, extent and duration of any of the required repair and restoration and its effect upon the suitability of the Premises for Tenant's use) between the date of the damage or destruction and the date of completion of the repairs and restorations 106 Tenant's Option Notwithstanding anything in this Article 10 or elsewhere in this Lease to the contrary, if Landlord elects to terminate this Lease as provided in Section 10 1 or 10 2 at any time prior to the commencement of the Option Period (as defined in Section 15 2), Tenant shall be entitled, at its option, to exercise its Purchase Option granted pursuant to Article 15 by giving an Exercise Notice within thirty (30) days after receiving Landlord's notice to terminate If Tenant so gives its Exercise Notice, the parties shall proceed with the purchase and sale of the Property in accordance with Article 15, except that (a) Tenant shall purchase the Property in its damaged or destroyed condition, (b) Landlord shall assign to Tenant all of its rights, if any, to any insurance proceeds __...I_Ll.. -- - .,....J. _O - .._ A ------ —_ .._A I-% at.. T. ...L..... Tl_.... / -„ A.,G_.,A l_ •1 'y DRAFT remaining unpaid under this Lease on the closing date (as defined in Section 15 4) calculated using a discount rate equal to the annualized rate of interest publicly announced from time to time by Bank of America National Trust and Savings Association in San Francisco, Cahforma (or its successor), as its "reference rate" 10 7 Tenant hereby waives any rights now or hereafter conferred upon it by statute or other law to surrender this Lease or to quit or surrender the Property or any part thereof, or to receive any suspension, diminution, abatement or reduction of the rent or other sums and charges payable by Tenant hereunder on account of any such destruction or damage other than as expressly provided in this Article 10 Tenant hereby waives the provisions of Section 1932, Subdivision 2, and Section 1933, Subdivision 4, of the California Civil Code, and the provisions of any similar law hereinafter enacted ARTICLE 11. CONDEMNATION. 11 1 Definitions Whenever used in this Article 11, the following words shall have the following respective meanings (a) "Condemnation" or "Condemnation Proceedings" shall mean any action or proceeding brought by competent authority, including, without limitation, the City, for the purpose of any taking of the Property or any part thereof as a result of the exercise of the power of eminent domain, including a voluntary sale to such authority either under threat of or in lieu of condemnation or while such action or proceeding is pending (b) "Taking" shall mean the event of vesting of title to the Property or any part thereof in such competent authority pursuant to Condemnation or the date upon which an order for immediate possession is entered in the Condemnation Proceedings, whichever is sooner (c) "Vesting Date" shall mean the date of the Taking 11 2 Total Taking In case of a Taking of all of the Property, this Lease shall termmnate as of the Vesting Date and the Rent under this Lease shall abate as of, and be apportioned to the date of termination 11 3 Partial Taking In case of a Taking of less than all of the Property (other than for a temporary use), Landlord and Tenant shall mutually determine, within sixty (60) days after the Vesting Date, whether the remaining portion of the Property after Restoration (as hereinafter defined) can economically and feasibly be used by Tenant If it is determined that the remauung portion of the Property cannot be economically and feasibly used by Tenant, either Landlord or Tenant may, at its option, termnate this Lease by delivery of written notice to the other within thirty (30) days after such determination Upon any such temunation, the Rent shall be apportioned to the date of termination, which date, for purposes of apportioning rental, shall be determined by mutual agreement of the parties If neither party elects to terminate this Lease within the period aforementioned, this Lease shall continue in full force and effect as to the remaining portion of the Property subject to a reduction in the Rent proportionately with the degree to which Tenant's use of the Property is impaired L- 192363 3 -15- 79 LA91 -363 3 11 4 Allocation of Award In the event of a Total or Partial Taking, Landlord shall be entitled to all damages and compensation awarded in the Condemnation Proceedings, provided, that Tenant shall have the right to file for any separate claim available to Tenant for (i) the taking of Tenant's personal property and fixtures belonging to Tenant and removable by Tenant upon the expiration of the term of this Lease pursuant to the terms of this Lease, (u) moving expenses and (iii) one hundred percent (100 %) of the "bonus value" of the leasehold estate in connection therewith, which bonus value shall be equal to the difference between the Monthly Rent payable under this Lease and the sum established by the condemning authority as the award for such compensation (Landlord being entitled to the portion of the award allocable to the leasehold estate which is not considered "bonus value "), and, further provided, that if this Lease is terminated pursuant to the provisions of this Article 11, Landlord shall also pay to Tenant the Termination Payment calculated as of the Vestmg Date If this Lease is not terminated as provided in this Article 11 and a Restoration (as that term is defined in Section 11 5, below) is to be performed, all damages and compensation awarded to Landlord shall be deposited with the holder of the first mortgage or first deed of trust on the Property, if either is an institutional lender, or if not or if neither is an institutional lender, with any bank, trust or title company agreed to by Landlord and Tenant, as trustee, for the repair and restoration of the Premises as provided in this Article 11 Any damages and compensation awarded to Landlord which remain following the Restoration shall be the sole property of Landlord 11 5 Restoration If, in the event of a Partial Taking, this Lease is not terminated pursuant to tlus Article 11, Landlord shall, subject to the provisions of this Article 11, at its cost and expense, forthwith repair and restore the Premises to a complete architectural unit or units All such repair and restoration work shall be referred to in this Article 11 as `Restoration" If the cost of Restoration exceeds the amount of the award to which Landlord is entitled under Section 114, Landlord may elect to terrnate this Lease by giving notice to Tenant within fifteen (15) days after determining that the cost of Restoration will exceed such amount If Landlord so elects to terminate this Lease, Tenant, within fifteen (15) days after receiving Landlord's notice to terminate, can elect to contribute the difference between the amount of such award and the cost of the Restoration, in which case Landlord complete the Restoration as required herein Tenant shall be entitled to receive satisfactory evidence that all sums contributed by Tenant as provided in this Section 115 have been expended in paying the cost of Restoration If Landlord elects to terminate this Lease and Tenant does not elect to contribute toward the cost of Restoration as provided in this Section 11 5, this Lease shall terminate and Landlord and Tenant shall be released from all liabilities and obligations under this Lease, except for such as have accrued prior to the date of termination 116 Scone of Repair/Restoration Obligations All Restorations required to be performed under this Article 11 shall be made in compliance with all applicable laws, ordinances, Hiles and regulations of all governmental authorities having jurisdiction and performed by qualified contractors selected by Landlord All such repairs and restorations shall be performed diligently and in a good and workmanlike manner, using materials as nearly like original materials in kind and quality as may then be reasonably procured 11 7 Abatement of Rent If� in the event of a Partial Taking, this Lease is not terminated as provided in this Article 11, Monthly Rent shall be equitably abated (according to the nature, extent and -16- 79 DRAFT duration of the required Restoration and its effect upon the suitability of the Premises for use by Tenant, taking into account any loss of access to the Premises) between the Vesting Date and the date of completion of the Restorations 118 Effect on Rent If, in the event of a Partial Taking, this Lease is not terinmated pursuant to this Article 11, on the Vesting Date the Monthly Rent shall be reduced (and as so reduced, abated to the extent provided in Section 11 8) by an amount that bears the same ratio to Monthly Rent as the total number of motor vehicle parking spaces in the Premises taken bears to 176 11 9 Settlement Landlord shall not make any settlement with the condemning authority (except where such authority is the City) or convey any portion of the Property to such authority (except where such authority is the City) in heu of Condemnation or consent to any Taking without the consent of Tenant, which consent will not be unreasonably withheld 11 10 Waiver Except as otherwise expressly set forth herein, Tenant waives any rights now or hereafter conferred upon it by statute or otherwise to quit or surrender this Lease or the Property or any suspension, diminution, abatement or reduction of Rent on account of any Taking Tenant hereby waives any and all rights it may otherwise have pursuant to Section 1265 130 of the California Code of Civil Procedure However, it is understood and agreed that Tenant is in no way waiving its rights as a public agency to exercise powers of eminent domain or to pursue Condemnation Proceedings ARTICLE 12. ASSIGNMENT AND SUBLETTING. 12 1 Consent Tenant acknowledges that the economic consideration and rental rates set forth in this Lease were negotiated by Landlord and Tenant in consideration of, and would not have been granted by Landlord but for (i) the first class reputation and financial strength of Tenant (it being acknowledged that Landlord's primary concern is with the quality and reputation of the parking operations located on the Property and, therefore, the character and quality of Tenant's operation are of paramount concern to Landlord and have strongly influenced Landlord's selection of Tenant), and (ii) the specific nature of the leasehold interest granted to Tenant hereunder, as such interest is limited and defined by various provisions throughout this Lease, including, but not limited to the provisions of this Article 12 which define and limit the transferability of such leasehold interest Accordingly, based upon the foregoing, Landlord and Tenant have agreed to the provisions of this Article 12, and have agreed that Tenant shall not voluntarily or by operation of law assign, transfer, mortgage or otherwise encumber all or any part of Tenant's interest to this Lease or in the Premises, and shall not sublet or license all or any part of the Premises (except to the extent provided in Section 12 2 below for Subleases of parking spaces in the Premises), without the prior written consent of Landlord in its sole and absolute discretion, and any attempted assignment, transfer, mortgage, encumbrance, subletting or license without such consent shall be wholly void 122 Tenant's Right to Sublease Notwithstanding anything to the contrary contained in Section 12 1 above, Tenant shall have the right to enter unto any Sublease (for parking spaces only and not for all or any portion of the Premises) with any Subtenants during the term of this Lease without the written consent of Landlord, subject to the requirements set forth in this Article 12, and L492363 3 -17- R n provided that Tenant delivers written nonce of such Sublease to Landlord promptly after the full execution of such Sublease (a) Required Sublease Terms Each Sublease shall contain the following terms and conditions (i) The Sublease shall state that it is subject and subordinate to the terms, conditions and covenants of this Lease and to any extension, modifications or amendments of this Lease, unless Landlord specifically requires that such Sublease be prior and superior to this Lease, and (ii) That in the event of the cancellation or termination of this Lease prior to the expiration of the term of this Lease, at Landlord's option, either the Sublease shall be deemed terminated or the Subtenant under such Sublease shall make full and complete attornment to Landlord for the balance of the term of such Sublease with the same force and effect as though said Sublease were originally made directly from Landlord to the Subtenant 12 3 Obbizations under Lease No Sublease or assignment, even with the consent of Landlord shall relieve or release Tenant from its obligation to pay the Rent and to perform all of the other obligations to be performed by Tenant hereunder The acceptance of rent by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any assignment or other transfer Consent to one assignment or other transfer shall not be deemed to constitute to any subsequent assignment or other transfer The covenants and conditions contained in this Article 12 shall apply to and bind the heirs, successors, executors, administrators and assigns of Tenant ARTICLE 13. DEFAULT. [TO BE DISCUSSED] 13 1 Events of Default A breach of this Lease by Tenant shall exist if any of the following events (individually an "Event of Default" and collectively "Events of Default ") shall occur (a) Tenant shall have failed to pay Rent under the terms of this Lease within ten (10) business days of when due and such failure shall not have been cured within ten (10) business days after receipt of written notice from Landlord respecting such overdue payment, or (b) Tenant shall have failed to perform any term, covenant, or condition of this Lease to be performed by Tenant, except for the payment of Rent, and Tenant shall have failed to cure same within thirty (30) days after written notice from Landlord, delivered in accordance with the provisions of this Lease, where such failure could reasonably be cured within said thirty (30) day period (subject to the occurrence of a Force Majeure Event (as defined in Section 21 3, below)), provided, however, that where such failure could not reasonably be cured within said thirty (30) day period, then Tenant shall not be in default unless it has failed to promptly commence and thereafter be continuing to make diligent and reasonable efforts to cure such failure as soon as L %92363 3 18 �1 DRAFT practicable (subject to the occurrence of a Force Maleure Event) 13 2 Notice to Certain Persons Landlord shall, before pursuing any remedy, give notice of any Event of Default to Tenant Each notice of an Event of Default shall specify the Event of Default and shall describe any damage resulting from any such act 13 3 Riahts of Landlord Following an Event of Default by Tenant, then in addition-to any other remedies available to Landlord at law or in equity, Landlord shall have the immediate option to terrmnate this Lease and all rights of Tenant hereunder by giving written notice to Tenant of such intention to terrmnate In the event that Landlord shall elect to so terminate this Lease, then Landlord may recover from Tenant (a) The worth at the time of award of any unpaid Rent which had been earned at the time of such termination, plus (b) The worth at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the time of award exceeds the amount of such Rent loss Tenant proves could have been reasonably avoided, plus (c) The worth at the time of award of the amount by which the unpaid Rent for the balance of the Lease Term after the time of award exceeds the amount of such Rent loss that Tenant proves could be reasonably avoided, plus (d) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of events would be likely to result therefrom including, without limitation, all costs and expenses incurred by Landlord in (i) retaking possession of the Property, including reasonable attorneys fees, (u) maintaining or preserving the Property, (in) preparing the Property for a new tenant, including repairs or alterations to the Property, and (iv) leasing commissions, plus (e) Such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable state law As used in subsections (a) and (b) above, the "worth at the time of award" is computed by allowing interest at the Interest Rate As used in subsection (c) above, the "worth at the time of award" is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1 %) 13 4 Landlord's Right of Re -entry Following an Event of Default by Tenant, Landlord shall also have the right, with or without terininating this Lease, to re -enter the Premises pursuant to legal proceedings or pursuant to any notice provided by law and elect all parties in possession therefrom Without terminating this Lease and with or without re- entering the Premises, Landlord may, at any time and from time to time following an Event of Default, either recover all Rent provided for hereunder as it becomes due or re -let the Premises, or any part or parts thereof, for the account of Tenant, or otherwise, receive and collect the rents therefor, applying the same first L 192363 3 -19- L x92363 3 to the payment of such expenses as Landlord may have paid, assumed or incurred in recovering possession of the Premises, including reasonable costs, expenses and attorneys' fees, and for placing the same in good order and condition, or preparing or altering the same for re- letting, and all other expenses, commissions and charges paid, assumed or incurred by Landlord in or in connection with re- letting the Premises, and then to the fulfillment of the covenants of Tenant to be performed under this Lease 13 5 No Automatic Termination No reentry or taking possession of the leased Premises by Landlord pursuant to Section 13 4 shall be construed as an election to terminate this Lease or Tenant's liability for the payment of Rent or other charges due or accruing hereunder, or as an acceptance of.Tenant's surrender of the Prerrnses, unless a written notice of such intention is given to Tenant or unless the termination thereof is decreed by a court of competent jurisdiction Notwithstanding any reletting without termination by Landlord because of any default by Tenant, Landlord may at any time after such reletting elect to terminate this Lease for any such default 13 6 Personal Property Upon the occurrence of an Event of Default, all of the Tenant's equipment and personal property (exclusive of motor vehicles), if any, shall remain on the Premises and, continuing during the length of said Event of Default, Landlord shall have the right to take exclusive possession of same and to use the same free of rent or charge until all defaults hav cured or, at its option, to require Tenant to remove the same forthwith e been 13 7 No Waiver The waiver by Landlord of any breach of any term, covenant or condition contained in this Lease shall not be deemed a waiver of such term, covenant or condition of any subsequent breach thereof, or of any other term, covenant or condition contained in this Lease Landlord's subsequent acceptance of partial Rent or performance by Tenant shall not be deemed to be an accord and satisfaction or a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease or of any right of Landlord to a forfeiture of this Lease by reason of such breach, regardless of Landlord's knowledge of such preceding breach at the time of Landlord's acceptance No term, covenant or condition of this Lease shall be deemed to have been waived by Landlord unless such waiver is in writing and signed by Landlord 13 8 Right to Cure If Tenant fails, refuses or neglects to perform any obligation under this Lease in the time and manner required herein, Landlord shall have the right, but not the obligation, to do the same at the expense and for the account of Tenant The amount of money so expensed or obligation so incurred by Landlord, together with interest thereon at the Interest Rate, shall be repaid to Landlord as additional rent within five (5) days of Tenant's receipt of writt en notice thereof Landlord's performance of such obligations shall not waive any default by Tenant hereunder 13 9 Landlord Defaults If Landlord shall neglect or fail to perform or observe any of the terms, covenants or conditions contained in this Lease on its part to be performed or observed within thirty (30) days after written notice of default or, when more than thirty (30) days shall be required because of the nature of the default, if Landlord shall fail to proceed diligently to cure such default after written notice thereof, then Landlord shall be liable to Tenant for any and all damages sustained by Tenant as a result of Landlord's breach, provided, however, it is expressly understood and agreed that (a) any money judgment resulting from any default or other claim ansing under this -70- RI �A Lease shall be satisfied only out of Landlord's interest in the Property, (b) no other real, personal or mixed property of Landlord, wherever located, shall be subject to levy on any such judgment obtained against Landlord, (c) if Landlord's interest in the Property is insufficient to satisfy such judgment, Tenant will not institute any further action, suit, claim or demand, in law or in equity, against Landlord (or any of the partners, officers, directors or members of Landlord) for or on the account of such deficiency, (d) such neglect or failure shall not constitute consent by Landlord for Tenant to perform or observe such terms, covenants or conditions at Landlord's expense and (e) Tenant shall not have the right to terminate this Lease as a result of any such default Tenant hereby waives, to the extent permitted by law, any right to satisfy said money judgment against Landlord except from Landlord's interest in the Property 13 10 Notice to Lenders If Landlord's Estate in the Property or any part thereof are at any time subject to any mortgage or deed of trust and tlus Lease or the Rent due from Tenant hereunder are assigned to such mortgagee, trustee or beneficiary (called "Assignee" for purposes of this Section 13 10 only) and Tenant is given written notice thereof, including the post office address of such Assignee, then Tenant shall give written notice to such Assignee, specifying the default m reasonable detail, and affording such Assignee a reasonable opportunity to cure such default for and on behalf of Landlord If and when such Assignee has performed on behalf of Landlord, such default shall be deemed cured ARTICLE 14. SURRENDER OF THE PREMISES. On the expiration of the term of this Lease or earlier termination of this Lease pursuant to the pro,,isions hereof, Tenant shall quit and surrender the Premises to Landlord and in good order, condition and repair, ordinary wear and tear (and damage and destruction or condemnation if this Lease is terminated pursuant to either Articles10 or 11) excepted Such surrender of the Premises shall be accomplished without the necessity for any payment therefor by Landlord Notwithstanding anything to the contrary contained in this Article 14, no such surrender shall cause or be deemed to cause a merger of Landlord's Estate and Tenant's Estate, unless Landlord expressly so agrees in writing ARTICLE 15. TENANT'S OPTION TO PURCHASE PROPERTY. Landlord hereby grants to Tenant an option to purchase the Property (including Landlord's Estate) and the interest of Landlord under this Lease ( "Purchase Option ") upon the following terms and conditions 15 1 Option Pnce The purchase price for the Property ( "Option Purchase Price ") shall be Two Hundred Thousand and No /100 Dollars ($200,000 00) No portion of any Rent payment due or paid under this Lease shall be applied to the Option Purchase Price 15 2 Exercise of Option The Purchase Option shall be exercised, if at all, by Tenant giving to Landlord, no earlier than the first day of the thirty-third QJ'd) Lease Year and no later than one hundred twenty (120) days prior to the expiration of the term of this Lease (the "Option Period "), (i) written notice of Tenant's election to exercise the Purchase Option ( "Exercise Notice ") and (u) Twenty -Five Thousand and No /100 Dollars ($25,000 00) in cash, by cashier's L1,923G3 3 check or by wire transfer of immediately available funds (the "Purchase Option Deposit ") The Purchase Option Deposit shall be applied to the Option Purchase Price upon the closing date Except as provided below in this Section 15 2, Tenant's failure to deliver its Exercise Notice and the Purchase Option Deposit during the Option Period shall result in an automatic termination of the Purchase Option without further need of any documentation In the event Landlord requests Tenant to execute any documents necessary to evidence the termination of such option, Tenant agrees to do so promptly Landlord agrees that, unless Tenant has previously given an Exercise Notice, Landlord will give Tenant a notice (the "Reminder Notice ") advising Tenant that the Option Period will expire one hundred twenty (120) days prior to the expiration of the term of this Lease The Reminder Notice shall be given no sooner than two hundred ten (210) and no later than one hundred eighty (180) days prior to the expiration of the term of this Lease If Landlord fails to so give the Reminder Notice, the Option Period shall be automatically extended until and including the expiration date of the term of this Lease and the closing date (as defined in Section 15 4) shall be extended until the date which is one hundred twenty (120) days following the giving, if any, by the Tenant of the Exercise Notice 15 3 Escrow In the event that the Purchase Option is duly exercised, the parties shall open an escrow at the offices of First American Title Insurance Company located at the corporate office in Santa Ana, California or at the offices of such other title or escrow company as is mutually satisfactory to the parties (the "Escrow Holder ") no later than mnety (90) days prior to the expiration of the term of this Lease This Section 15 3 shall constitute Escrow Holder's instructions In addition, Escrow Holder shall prepare, and the parties hereby agree to execute, such reasonable and customary supplemental instructions and instruments, as may be reasonably required by the parties and Escrow Holder in order to clarify its duties hereunder and facilitate an orderly sale of the Property to Tenant To the extent of any inconsistency between the provisions of such supplemental instructions and the provisions of this Purchase Option, the provisions of this Purchase Option shall control 15 4 Ciosin o For purposes of this Purchase Option, the "closing date" shall be defined as the date the grant deed ( "Deed "), in a form provided by Landlord, conveying the Property to Tenant, is recorded in the official records of Los Angeles County, California Title to the Property shall be conveyed to Tenant on the closing date subject to such liens, claims and encumbrances as are then of record against the Property, provided, that notwithstanding the foregoing or any othe, provision of this Lease to the contrary, title to the Property shall be free of the lien of any deed of trust, mortgage, security instrument or other monetary encumbrance, mechanics' and matenalmen's liens, options or rights of first refusal to purchase, and any leasehold interests or other rights to occupancy by any Person other than as provided in Section 15 9 below The closing date shall occur on the date on which the term of this Lease expires, or such earlier or later date as the parties may mutually agree upon Tenant's obligation to pay Rent to Landlord shall terminate on the earlier of the closing date or the expiration of the term of this Lease At least one (1) day prior to the closing date, Tenant shall deposit into escrow by cashier's check or wire transfer of immediately available funds any remaining amounts due and owing under the Lease and all other amounts for 85 Deed, documentary transfer or stamp taxes, or intangible taxes, shall be paid by Tenant on the closing date 15 5 OPTION CONSIDERATION/LIQUIDATED DAMAGES IN THE EVENT TENANT TERMINATES THE ESCROW, DEFAULTS OR OTHERWISE FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY FOR ANY REASON OTHER THAN LANDLORD'S BREACH, LANDLORD'S SOLE REMEDY SHALL BE TO RETAIN AS OPTION CONSIDERATION AND LIQUIDATED DAMAGES, THE PURCHASE OPTION DEPOSIT, AND TENANT'S PURCHASE OPTION SET FORTH IN THIS ARTICLE 15 SHALL TERMINATE AND HAVE NO FURTHER FORCE OR EFFECT BY INITIALING BELOW, LANDLORD AND TENANT AGREE THAT SUCH AMOUNT CONSTITUTES REASONABLE OPTION CONSIDERATION AND A FAIR AND REASONABLE ESTIMATION OF THE DAMAGES WHICH LANDLORD WILL SUSTAIN IN THE EVENT THAT TENANT DOES NOT CONCLUDE THE PURCHASE OF THE PROPERTY THIS SECTION 15 5 SHALL APPLY ONLY TO THE PURCHASE OPTION AND SHALL NOT IN ANY WAY LIMIT OR RESTRICT LANDLORD'S RIGHTS IN CONNECTION WITH ANY BREACH OR DEFAULT OF TENANT'S OTHER OBLIGATIONS UNDER THE LEASE Initials Landlord Tenant 15 6 Default (a) Effect of Default Tenant shall have no right to exercise this Purchase Option or to close the transaction contemplated by such Purchase Option at any time after an Event of Default pursuant to Section 13 1 has occurred The Option Period shall not be extended or delayed by reason of Tenant's inability to exercise this Purchase Option as a result of the provisions of this Section (b) Termination of O tD top This Purchase Option shall be subordinate and subject to the provisions of this Lease, and if this Lease shall be terminated for any reason whatsoever, such termination shall concurrently terminate this Purchase Option and this Purchase Option shall be of no further force or effect 15 7 "AS -IS" Tenant acknowledges that it will have been occupying and operating the Property for thirty -four (34) years prior to the closing date Except as otherwise expressly provided in this Article 15,Tenant represents, warrants and agrees that it is acquiring the Property "AS -IS" "WHERE -IS" without any representation or warranty of Landlord express, implied or statutory, as to the nature or condition of title to the Property or its fitness for Tenant's intended use of same Based on Tenant's rights under the Lease, Tenant, as of the closing date, will be familiar with the condition of the Property and will have conducted its own independent inspection, investigation and analysis of the Property as it deems necessary or appropriate in acquiring the Property, including, without limitation, an analysis of any and all matters concerning the condition of the Property and its suitability for Tenant's intended purposes, and a review of all applicable laws, ordinances, rules and governmental regulations (including, but not hunted to, those relative to building, zoning and land use) affecting directly or indirectly the development, use, occupancy or enjoyment of the Property Provided that title to the Property is effectively transferred to Tenant LA92363 3 rf on the closing date in accordance with the terms of this Article 15, and except for Landlord s obligations of indemnity under this Lease (which shall survive the closing date and shall not be merged into the Deed), Tenant further agrees to release Landlord and its respective agents, employees, officers, directors, shareholders, joint venturers and partners from, and this agreemem shall fully and finally settle, all demands, charges, claims, accounts or causes of action of any nature, including without hmitation, both known and unknown claims and causes of action which Tenant had or now has or hereafter can, shall, or may have against any of the other parties ansing out of or in connection with the condition of the Property With respect to the releases set forth in tits Section 15 7 above, Tenant acknowledges that it has been advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows L-92363 3 "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE 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" THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVE ALL RIGHTS THEY MAY HAVE THEREUNDER AS WELL AS ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT PERTAINING TO THE RELEASES SET FORTH HEREIN Tenant represents and warrants to Landlord that it has executed this Lease with full knowledge of any and all rights which they may have by reason of any of the matters described herein Tenant further assumes the risk of mistake of fact in connection with the true facts involved in connection with the matters described herein, and with respect to any facts which are now unknown to them relating thereto The waiver and release by Tenant set forth in this Section 15 7 shall survive the closing of the transaction and the recordation of the Deed 15 8 1031 Exchanse Tenant acknowledges that Landlord may engage in a tax - deferred exchange ( "Exchange ") pursuant to Section 1031 of the Internal Revenue Code if Tenant elects to exercise its Purchase Option To effect this Exchange, Landlord may ass.gn its rights in, and delegate its duties under, this Article 15, as well as the transfer of its interest in the Property, to any exchange accommodator which Landlord selected by Landlord As an accommodation to Landlord, Tenant agrees to cooperate with Landlord in connection with its Exchange, including delaying the closing date for a reasonable period of time as requested by Landlord, including, without limitation, the execution of documents therefor, upon the following terms and conditions (a) Landlord's Duties Not Affected All representations, warranties, covenants and obligations of Landlord set forth in this Lease shall not be affected or limited prior to the closing by Landlord's use of an exchange accommodator (b) Accommodator Not Liable No assignee of Landlord pursuant to the Exchange or otherwise will be obligated to assume the duties or obligations of Landlord under this Lease, except for purposes of effectuating the Exchange -24- F 7 (c) No Additional Costs to Tenant Tenant shall in no way be obligated to pay any additional escrow costs, brokerage commissions, title costs, survey costs or other recording costs incurred with respect to any exchange property and/or the Exchange 159 Lease to Landlord As a condition precedent to Tenant's exercise of the Purchase Option and the closing thereof, and in consideration of Landlord's granting of the Purchase Option to Tenant, Landlord, as tenant, and Tenant, as landlord, shall enter into a lease (the "Retail Lease ") pursuant to which Landlord, as tenant, shall lease the Retail Space for a term of ninety rune (99) years, on a triple net basis, at a base rental rate of One and No/ 100 Dollar ($160) per year for each of the ninety nine (99) years of the lease term As part of the Retail Lease, Tenant, as landlord, shall record against the Property a covenant to lease Landlord or any tenants of Landlord under subleases of the Retail Lease, twenty three (23) parking stalls in the Parking Structure for a period equivalent to the term of the Retail Lease, subject to an additional payment of One and No /100 Dollar ($1 00) per year for the use of such twenty three (23) parking stalls In addition, an easement (the "Parking Easement ") shall be recorded against the Property in favor of Landlord, as owner of the Supermarket Space, and any tenants of the Supermarket Space, for the use of fifty (50) parking stalls in the Parking Structure Landlord, as tenant of the Retail Lease and owner of the Supermarket Space, shall be and remain obligated to pay its pro rata share of Operating and Maintenance Costs and Real Property Taxes for the Parking Structure in connection with its use of the parking stalls in the Parking Structure If Landlord defaults in its obligation to pay its pro rata share of such Operating and Maintenance Costs and Real Property Taxes, the Parking Easement shall automatically be terminated and released, prodded, that at the request and expense of Tenant, Landlord shall promptly execute, acknowledse and deliver to Tenant such documents and instruments as are necessary to terminate and release the Parking Easement ARTICLE 16. TRANSFERS BY LANDLORD. Subject to Tenant's option to purchase as set forth in Article 15, above, Landlord may sell, assign, convey, or otherwise transfer all or any portion of Landlord's Estate at any time Landlord shall be released from any ongoing obligations hereunder from and after Vie date of any such transfer of Landlord's Estate provided the party to which Landlord has assigned Landlord's Estate assumes in writing all obligations of Landlord hereunder ansing after the date of such transfer ARTICLE 17. NOTICES. Any notice, approval, demand or other communication required or desired to be given pursuant to this Lease shall be in writing and shall be personally served (including by means of professional messenger service or air express service using receipts) or in heir of personal service, deposited in the Umted States mail, postage prepaid, certified or registered mail, return receipt requested, and, if personally served, shall be deemed received upon delivery, and unless sooner received, each mailed notice shall be deemed received seventy -two (72) hours after same shall have been so deposited in the Uruted States marl addressed as set forth below L-i92363 3 �.o a C3 -29- W If to Landlord c/o 612 Twin Holdings, LLC 1141 Highland Avenue, Suite 203 Manhattan Beach, California 90266 -5326 Attention Mr Mark A Neumann with a copy to Allen Matkins Leck Gamble & Mallory LLP 1901 Avenue of the Stars, Suite 1800 Los Angeles, California 90067 Attention John M Tipton, Esq Ifto Tenant City of El Segundo 350 Main Street El Segundo, California 90245 -3895 Attention City Manager With a copy to Burke, Williams & Sorensen, LLP 611 West Sixth Street, Suite 2500 Los Angeles, California 90017 Attention Mark D Hensley, Esq Either Landlord or Tenant may change its respective address by giving written notice to the other in accordance with the provisions of this Section ARTICLE 18. SUBORDINATION. ESTOPPEL CERTIFICATES. 181 Subordination Upon the prior request of Landlord, Tenant will execute such reasonable instruments providing for the subordination of this Lease to the lien of any mortgage or deed of trust, or the lien resulting from any other similar method of financing or refinancing, in force against the Property (as used in this Article 18, collectively, "Lien "), and providing for the attornment by Tenant to the holder of such Lien as landlord under this Lease, if any such instrument of subordination and attornment shall contain the agreement of the holder of such Lien to the following, which agreement may be conditioned upon this Lease being in full force and effect and Tenant not being in default under this Lease (a) No foreclosure of deed given in lieu of foreclosure, or sale under such Lien, and no steps or procedures taken under such Lien shall disturb Tenant's right to possession of the Premises or affect any of Tenant's rights and options under this Lease, and any resulting purchaser or other transferee of the Property shall be subject to this Lease and shall recognize Tenant's rights and options under tlus Lease (b) This Lease may be amended with the prior written consent of the holder of such Lien, which consent shall not be unreasonably withheld or withheld for the purpose of effectuating a change in the terms of the Lien or this Lease (c) Tenant shall not be named in any foreclosure action or other proceeding related to the Lien L- \n2363 3 26 .29 W 182 Estoppel Certificates Tenant agrees promptly following request by Landlord or the holder of any deed of trust, mortgage or other encumbrance on Landlord's Estate to execute and deliver an Estoppel Certificate to whichever of them has requested the same Landlord agrees promptly following request by Tenant or any proposed Subtenant to execute and deliver an Estoppel Certificate to whichever of them has requested the same The term "Estoppel Certificate" shall mean an estoppel certificate, certifying (a) that this Lease is unmodified and in full force and effect, or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect and the date to which the Rent and other charges are paid m advance, if any, (b) that, to the knowledge of the responding party, there are no uncured defaults on the part of Landlord and Tenant hereunder, or if there exist any uncured defaults on the part of Landlord and /or Tenant hereunder stating the nature of such uncured defaults on the part of Landlord and /or Tenant, and (c) the correctness of such other information respecting the status of this Lease as may be reasonably required by the party hereto requesting execution of such Estoppel Certificate A party's failure to so execute and deliver an Estoppel Certificate within ten (10) business days following written request as required above, shall be conclusive upon such parry that as of the date of said request for the same (a) that this Lease is in full force and effect, without modification except as may be represented by the party hereto requesting execution of such Estoppel Certificate, (b) that there are no uncured Events of Default in Landlord's or Tenant's obligations under this Lease except as may be represented by the party hereto requesting execution of such Estoppel Certificate, and (c) that no Rent has been paid in advance except as may be represented by the party hereto requesting execution of such Estoppel Certificate ARTICLE 19. ENFORCEMENT AND ATTORNEYS' FEES. In any proceeding or controversy associated with or ansing out of this Lease or a claimed or actual breach hereof, the prevailing party shall be entitled to recover from the other party as a part of the prevailing party's costs, such party's actual attorneys', appraiser's and other professionals' fees and court costs The award for legal expenses shall not be computed in accordance with any court schedule, but shall be as necessary to fully reimburse all attorneys' and other professionals' fees and other expenses actually incurred in good faith, regardless of the size of the Judgment, it bean, the intention of the parties to fully compensate the prevailing party for all the attorneys' and other professionals' fees and other expenses paid in good faith ARTICLE 29. NO MERGER. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shalt not work a merger and shall, at the option of Landlord, operate as an assignment to Landlord of any or all Subleases of Subtenants ARTICLE 21. TENANT'S CONDITIONS PRECEDENT. Until June 21, 2002 (the "Investigation Period "), Tenant shall have the right, at its sole cost and expense, to conduct such examinations, inquiries, investigations, tests and studies respecting the environmental condition of the Property and the condition of the title to the Property (collectively, the "Investigations ") as Tenant deems necessary or appropriate in its sole Judgment If as a result of the Investigations, Tenant is dissatisfied with any aspect of the environmetal U492363 3 -27- condition of the Property or the condition of the title to the Property, Tenant may terminate this Lease by giving written notice of termination to Landlord within five (5) days following the end of the Investigation Period ARTICLE 22. GENERAL. 22 1 Captions The captions used in this Lease are for the purpose of convenience only and shall not be construed to limit or extend the meaning of any part of this Lease 22 2 Counterparts Any executed copy of this Lease shall be deemed an original for all purposes This Lease may be executed in one or more counterparts, each of which shall be an original, and all of which together shall constitute a single instrument 22 3 Time of Essence Time is of the essence for the performance of each covenant and term of this Lease Notwithstanding the foregoing, any non - monetary obligation of Tenant or Landlord which cannot be satisfied due to war, strikes, acts of God or other events, whether similar or dissimilar to the foregoing, which are beyond the reasonable control of Tenant or Landlord, as the case may be (each, a 'Force Majeure Event "), shall be excused until the cessation of such Force Maleure Event 224 Severability If any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceabrhty shall not affect any other provision of this Lease, but this Lease shall be construed as if such invalid, illegal or unenforceable provision had not been contained herein 22 5 Interpretation This Lease shall be construed and enforced in accordance with the laws of the State of California The language in all parts of this Lease shall in all cases be construed as a whole according to its fair meaning, and not strictly for or against either Landlord or Tenant When the context of this Lease requires, the neuter gender includes the masculine, the fenumne, a partnership or corporation or joint venture or other entity, and the singular includes the plural 226 Successors and Assigns The covenants and agreements contained in this Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted heirs, successors, and assigns 22 7 Waivers The waiver of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained 22 8 Remedies All remedies herein conferred shall be deemed cumulative and no one remedy shall be exclusive of any other remedy herein conferred or created by law 229 Good Faith Except where a party hereto is specifically permitted to act in its sole and absolute discretion, each party hereto agrees to act reasonably and in good faith with respect to the performance and fulfillment of the terms of each and every covenant and condition contained in this Lease LA9 ^_363 3 -29- 9 i 22 10 No Partnership The parties hereto agree that nothing contained in this Lease shall be deemed or construed as creating a partnership, lomt venture, or association between Landlord and Tenant, or cause the other party to be responsible in any way for the debts or obligations of the other party, and neither the method of computing rent nor any other provision contained to this Lease nor any acts of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other than the relationship of landlord and tenant 22 11 Integration This Lease, and the Exhibits attached hereto constitute the entire agreement between the parties, and there are no agreements or representations between the parties except as expressed herein All prior negotiations and agreements between Landlord and Tenant with respect to the subject matter hereof are superseded by this Lease Except as otherwise provided herein, no subsequent change or addition to this Lease shall be binding unless in writing and signed by the parties hereto 22 12 Commissions Landlord and Tenant each represent and warrant to the other that they have employed no broker, finder or other person in connection with the transactions contemplated under this Lease which might result in the other party being held liable for all or any portion of a commission hereunder Tenant acknowledges, however, that Landlord has been represented by Mark A Neumann (the, "Broker ") in connection with the negotiation of this Lease, provided, that Landlord shall be solely responsible for the payment of any commission due such Broker in connection therewith Landlord and Tenant each hereby agree to mdemmfy and hold the other free and harmless from and against all claims and liability arising by reason of the incorrectness of the representations and warranties made by such parry in this Section, including, vt nhout limitation. reasonable attorneys' fees and litigation costs 22 13 General Covenants, Representations And Warranties Of Landlord Landlord hereby represents and warrants that Landlord has due authority to enter into this Lease and that the individuals signing this Lease on behalf of Landlord are authorized to execute this Lease and that, upon such execution, this Lease shall be legally binding upon Landlord, that prior to the commencement of construction of the Parking Structure, Landlord shall hold fee title to the Property free and clear of any restrictions that would prevent Landlord from entering into this Lease or prevent Tenant from operating the Premises, once constructed, in the manner contemplated by this Lease In the event Landlord does not acquire title to the Property on or before October 15, 2002, Landlord shall have the option to deliver to Tenant notice so stating, and upon delivery of such notice to Tenant, this Lease shall terminate, be of no further force or effect and the parties hereunder shall be relieved of all of their respective duties and obligations to one another 22 14 Survival Notwithstanding anything to the contrary contained in this Lease, the provisions (including, without limitation, covenants, agreements, representations, warranties, obligations and liabilities described therein) of this Lease which from their sense and context are intended to survive the expiration or earlier termination of this Lease (whether or not such provision expressly provides as such) shall survive such expiration or earlier termination of this Lease and continue to be binding upon the applicable party L192363 3 -29- n 1 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the Effective Date "LANDLORD" "TENANT" 612 TWIN HOLDINGS, LLC, a California THE CITY OF EL SEGUNDO, limited liability company a municipal corporation By By Name Name Title Title Attest By Name Title Approved as to Form Mark D Hensley City Attorney L A92363 3 DRAFT LEGAL DESCRIPTION That certain real property located in the State of Calrforma, County of Los Angeles more particularly described as THE SOUTHERLY 6 FEET OF LOT 16 AND LOTS 17 THROUGH 24 IN BLOCK 43 OF EL SEGUNDO, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 20, PAGES 22 AND 23 OF MAPS, rN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY LA92363 3 01 , �` EXHIBIT `°B" CONSTRUCTION AGREEMENT This Construction Agreement ( "Agreement ") is entered as of _ , 2002, by and between 612 TWIN HOLDINGS, LLC, a California limited liability company ( "Landlord "), and THE CITY OF EL SEGUNDO, a municipal corporation ( "Tenant "), which Agreement sets forth the terms and conditions relating to the construction of the Parking Structure on the Property (as those terms are defined in the Lease Agreement between Landlord and Tenant, dated as of 2002 ( "Lease ")) 1 Approved Plans and Specifications Tenant has reviewed those certain concept drawings relating to the Parking Structure prepared by International Parking Design, Inc ( "Landlord's Architect "), dated May 2, 2002, Job No 02 -310 (the "Concept Drawings ") Following the full execution and delivery of the Lease and Tenant's waiver of its condition precedent in Section 21 of the Lease, Landlord shall exercise due diligence in causing Landlord's Architect to prepare proposed final design drawings for the construction of the Parking Structure, provided that such proposed final drawings shall be materially consistent with the size of the Parking Structure represented in the Concept Drawings The proposed final design drawings shalt include all details normally required by the City in final design drawings, including without limitation, details respecting the building materials to be used on the exterior portion of the Parking Structure, as well as proposed landscaping details Tenant, in its capacity as a City, shall review the final design drawings on the same basis it would review other construction projects within the City, including but not limited to, performing design review and code compliance review with respect to the Tenant's Municipal Code and applicable building and safety codes The City shall exercise due diligence in performing such review "Approved Plans and Specifications" shall refer to the final design drawing for the Parking Structure that have been approved by Tenant Landlord shall cause the Parking Structure to be constructed in accordance with the Approved Plans and Specifications and the terms set forth herein 2 Contractor and Subcontractors Landlord shall select a contractor ( "Contractor ") to construct the Parking Structure, provided that, in doing so, Landlord shall either (1) competitively bid the construction of the Parking Structure to a minimum of two (2) qualified contractors, and select the lowest bid (after adjusting the bids for any inconsistent assumptions), or (ii) select a Contractor based on such Contractor's agreed upon general conditions and fees, competitively bid each trade of work in connection with the construction of the Parking Structure to a minimum of two (2) qualified subcontractors, and select the lowest subcontractor bid for each trade of work (after adjusting the bids for any inconsistent assumptions) Landlord shall cause the contractors and subcontractors constructing the Parking Structure to pay prevailing wage with respect to such construction activities 3 Development Budget, Tenant's Payment Prior to the commencement of construction of the Parking Structure, Landlord shall submit to Tenant a detailed development budget ( "Budget ") setting forth the budgeted costs for the construction of the Parking Structure Tenant shall not have any approval rights in connection with the Budget and shall pay to Landlord Tenant's Payment (defined below) in accordance with the terms of Section 6 below "Tenant's Payment" shall mean all costs incurred by Landlord for the design and construction of 95 J. = e that the 100 parking spaces allotted to Tenant under the terms of the Lease bears to the 176 total parking spaces in the Parking Structure), provided however, in no event shall Tenant's Payment exceed One Million One Hundred Thousand and No /100 Dollars ($1,100,00000) (the "Cap ") In the event Tenant's allocated share of the actual costs for the design and construction of the Parking Structure would exceed the Cap (the "Excess "), Landlord may elect, at its sole option, (A) to pay such Excess (in which event the Lease shall continue in full force and effect), or (B) to not pay such Excess If Landlord elects option (B), above, then Landlord shall deliver notice to Tenant (the "Excess Notice ") so stating, in which event Tenant may elect, at its sole option, within thirty (3O) days following receipt from Landlord of the Excess Notice (1) to pay Tenant's allocated portion of such Excess or (ii) terminate the Lease 4 Permits Landlord shall exercise due diligence in obtaining from the City of El Segundo all applicable building permits necessary to allow the Contractor to commence and fully complete the construction of the Parking Structure (the "Permits ") 5 Construction Landlord shall diligently pursue the construction of the Parking Structure to completion It is anticipated that construction of the Parking Structure will be completed within ten (10) months following the initial commencement of construction, subject to delay for any Force Majeure Events 6 Completion of Construction "Substantial Completion" of the Parking Structure shall occur on the later of (i) the substantial completion of construction of the Parking Structure, as evidenced by the receipt of a certificate of occupancy, temporary certificate of occupancy, or a legal equivalent thereof issued by the applicable agency allowing legal occupancy of the Parking Structure and (u) the opening for business by the tenant in the Supermarket Space (as that term is defined in the Lease) Upon Substantial Completion of the Parking Structure, Landlord shall so notify Tenant and Tenant shall deliver to Landlord, within fifteen (15) days thereafter, Tenant's Payment (including any Excess which Tenant agreed to pay pursuant to the terms of Section 3, above) IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above Landlord 612 TWIN HOLDINGS, LLC a California limited liability company By (Print Name) (Print Title) �uao'_ Ji tt1� Tenant CITY OF EL SEGUNDO, a municipal corporation m (Print Name) (Print Title) DRAFT EXHIBIT "C" FORM OF MEMORANDUM OF LEASE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO MEMORANDUM OF LEASE THIS MEMORANDUM OF LEASE ( "Memorandum ") is made as of this day of , 2002 by and among 612 TWIN HOLDINGS, LLC, a California limited liability company ( "Landlord "), and THE CITY OF EL SEGUNDO, a municipal corporation ( "Tenant ") 1 Landlord and Tenant have entered into that certain Lease Agreement dated , 2002 (the "Lease ") pursuant to which Landlord has leased to Tenant and Tenant has leased from Landlord a portion of that certain parking structure to be constructed by Landlord on that certain real property located in the City of El Segundo, County of Los Angeles, State of California, and more particularly described on Exhibit "1" attached hereto (the "Property "), for a term of thirty -four (34) years, commencing as provided in the Lease, for the rental and subject to the terms and covenants set forth in the Lease 2 The Lease further provides that Tenant shall have an option to purchase the Property pursuant to terms further set forth in the Lease 3 The purpose of this Memorandum is to give notice of the existence of the Lease and of the option referred to in paragraph 2 above To the extent that any provision of this :Memorandum conflicts with any provision of the Lease, the Lease shall control 4 This Memorandum may be executed in counterparts, each of which shall be deemed an onginal, but all of which, together shall constitute one and the same instrument [SIGNATURES ARE ON THE NEXT PAGE] La923633 1 97 IN WITNESS WHEREOF, the parties hereto have executed this Memorandum as of the day and year first above written "LANDLORD" 612 TWIN HOLDINGS, LLC, a California limited habihty company "TENANT" By _ Name Title THE CITY OF EL SEGUNDO, a municipal corporation By _ Name Title L %923633 2 q h' LEGAL DESCRIPTION OF SUPERMARKET SPACE That certain real property located in the State of California, County of Los Angeles more particularly described as THE NORTHERLY 19 FEET OF LOT 16 AND LOTS 10 THROUGH 15 IN BLOCK 43 OF EL SEGUNDO, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 20, PAGES 22 AND 23 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY L192363 3 99 I�:II�Y1lIlolY FORM OF ACKNOWLEDGMENT OF COMMENCEMENT OF TERM Reference is made to that certain Ground Lease Agreement ( "Lease "), dated as of 2002, by and between 612 TWIN HOLDINGS, LLC ( "Landlord ") and THE CITY OF EL SEGUNDO ( "Tenant "), respecting the leasing by Landlord to Tenant of certain premises located in the City of El Segundo, County of Los Angeles, State of California Landlord and Tenant hereby acknowledge and agree that the Commencement Date of the Lease, as provided in Section 2 3 of the Lease, is 200 Landlord 612 TWIN HOLDINGS, LLC a California limited liability company M (Print Name) (Print Title) Tenant CITY OF EL SEGUNDO, a municipal corporation a (Print Name) (Print Title) L 92363 3 100 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION MEETING DATE: June 4, 2002 AGENDAHEADING• Unfinished Business Consideration and possible action regarding approval of conceptual design for the Imperial Avenue Vista Upgrade (Imperial Avenue and Sheldon Street) — Approved Capital Improvement Program — Project No PW 01 -18 RECOMMENDED COUNCIL ACTION: Recommendation — (1) Approve conceptual plans for Imperial Avenue Vista Upgrade, (2) Alternatively discuss and take other action related to this item, BACKGROUND & DISCUSSION On April 16, 2002, the City Council reviewed the Imperial Vista Upgrade Conceptual Plan A thirty (30) day review period was initiated to allow the public to comment on the proposed plan (Discussion & background continued on the next page....) ATTACHED SUPPORTING DOCUMENTS Location map Conceptual plan FISCAL IMPACT, None at this time Capital Improvement Program- Amount Requested, Account Number Protect Phase. Appropriation Required $72,00000 $72,00000 301 -400- 8203 -8483 Approved of conceptual drawings No ORIGINATED BY- DATE May 24, 2002 Andres Santamana, Director of Public Works LOUNLIWUNE" 03 IFMn OLt 2 00PM 101 9 BACKGROUND & DISCUSSION (continued) One letter was received from a resident The concerns expressed were- A resident sent a letter expressing support for improving the area and for naming the area "Bird Watcher's Park' The resident also objected to an observation deck due to liability issues and people drinking alcoholic beverages, and objected to installation of telescopes due to installation and maintenance costs The observation deck will be an extension of the sidewalk and, as such, should not present any further liability issues The Police Department will enforce the local laws concerning drinking of alcoholic beverages The telescopes will facilitate the viewing of the planes at the airport The cost and maintenance for this installation would not be significant compared to the public use anticipated A plaque will be installed at this location once the project is completed and appropriate wording is approved It is staffs recommendation that the conceptual plans be approved and that final working drawings be completed for advertising GWNC NME"MtF -1OfiR 2WPMI N W J W t9 z 4 N J 1 •i31VAltld)— �"''^"�J'L �l,;N ErM i. AVM 53NJfW n 63111v S = S IUGd8V •aAle S U 1S AGl3S G ¢ W 7 = W N co = o f u IZiI t. M 1r' I S 41 L] W N lG rNrIONI Mill N S it M rIDNI X 15 'N" V o 19 M M > j 15 N010NIN" ` e 15 Sr SNrf v f W �B O W 15 rtNuoillr] S NYOdIIrD B i 15 N003Y0 U E07 a 15 rOrn3N E0 U 15 Yi1N30 } N 'YO MOlr/7Nf1Y 2 15 0Nrl1YrN LU Ix „4 U ^� B 1S r11W0'I i r11NOl L IB F::l ®® y 15 rYY 315 � 1] A ltlr7 �N C �i ^ ❑ ED== ® 1S NN3d I > 15 NOOl3NG _W B ® U 15 rN3Yr N - Q 15 OYrONrlG � 1 3dd3d 15 NtrN Y 15 ONONN]Itl YO l FI B�Fe S15 DYD]ND] 15 N10Yln 1S NIIIMM LLLJJJ F`-- -.517 15 '115tH a1/D1 O1 J c rwol ❑O f z t m I U W o i W J 11 is 153Y7911N 6 ] f 3 N JN is = = 15 f Jf_ W C 153 is v33nL ' MAP \—AjoPunag AII7 lsoffi EKES I �s a in p QF a Z a U W _ U O � U a 103 a µ L I J 4 EL SEGUNDO CITY COUNCIL MEETING DATE. June 4, 2002 AGENDA ITEM STATEMENT AGENDA HEADING. COMMITTEES, COMMISSIONS & BOARDS AGENDA DESCRIPTION. Consideration and possible action regarding the announcement of appointments to the various Committees, Commissions and Boards RECOMMENDED COUNCIL ACTION: (1) Announce appointments and respective terms of office, (2) Discuss and take other action related to this Item. Commlttee/Cor) mission & Board # of Openings A000�ntee(s) Recreation & Parks Commission Library Board of Trustees Planning Commission Senior Citizen Housing Corporation Bd Community Cable Advisory Committee 2 2 Term Exoire(s) _ 05/30/05' 05/30/06 06/30/05 _ 06/30/05 _ 06/30/06 _ 06/30/06 _ 10/31/05 10/31/06** (`) Short term due to resignation (' *) Term of Resignee Dave Reeves expires in current year on 10131/02 BRIEF SUMMARY The above are the positions filled after the Interviews at 6.00 p m , June 4, 2002. ATTACHED SUPPORTING DOCUMENTS N/A FISCAL IMPACT N/A ORIGINATED Julia O Abreu, Executive Assistant Date: May 24, 2002 REVIEWED BY Mary Strenn, City Manager Date. May 28, 2002 f �/L ,an w¢cbC002 \060302 A6enA announcon of aPPmnnu to CC&c Z O� �m �m wa m 0 L � Q) Z F Q U K 3 ' o 3 W xF� LL O 2 N F N Z � $W 6 F 4 mi �3 J W t O U O < O O O O O O d H H H (Y Y Y Q W W W � U U U H W 0 0 0 f O > > j Z *P4 K m evarve °m iI$ $ 2 w N� ry m o' m ry' gy m ry m m m o ` �' Z< v w° ¢ m � u ° LL EEi�yE` LL z w¢ WE ' ' °¢ s n nm" 3' a u w o Ew 'u 0 LL of Nz o`o u E $gg$b n < 2 z Z 4Z O 2 w M $ N q 8 q zo 00 z LLu i woo m o 8 Fa ¢> uzz� °zo LLx:.~a- Fgz, -„ uwu'iz w h LLLL F ° 3 a£ ¢wi i"i¢� o : v3u3i 3y3 i i 3 z" w w rc i > m m 8 a t-C za z LL d3 z m LL N W¢ J z U 33 W i Q N j 7 W oz .0 W m N 4 A ~ = C > N YI °N 2 s a c� Z¢ w° o `o A A- _ ➢ L 8 E. wg F = a agPi� cl?i tQiws¢'u�5 u'lo N 5 m m8& H' is sm g w `o E uFl 3`' 4 4a O 032` ' = Ey 2 E$E m$ 6 s o` = =� m ci8 a cis x'° 'y O / O c 0 � O � EL CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 05/11/2002 THROUGH 05/24/2002 Date Amount Description 5/13102 West Basin 722,632 96 H2O payment 5/13/02 Park Vista 2,205 73 1st Qtr interest 5/14/02 Union Bank 36,896 93 PGC -El Segundo, LLC payroll 5/15/02 Health Comp 46930 Weekly claims 5/10 5/22/02 Health Comp 1,35000 Weekly claims 5/17 5123102 Employment Development 32,313 61 State Taxes PR 24 5/23/02 IRS 171,726 83 Federal Taxes PR 24 5/11- 05/24/02 Workers Comp Activity 101,016 20 SCRMA checks issued 1,068,611 56 DATE OF RATIFICATION. 06/4/02 TOTAL PAYMENTS BY WIRE Certified as to the accuracy of the wire transfers by L11 19 Deputy reasu rr Date erector of Administrative Service Date City Ma �` Dat� 1,068,611 56 Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo fin^ MINUTES OF THE REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 21, 2002 — 5:00 P.M. 5:00 P.M. SESSION CALL TO ORDER — Mayor Gordon at 5 00 p.m ROLL CALL Mayor Gordon Present Mayor ProTem Jacobs Absent Council Member Gaines Present at 5.03 p.m Council Member McDowell Present Council Member Wernick Present CLOSED SESSION: The City Council may move Into a closed session pursuant to applicable law, Including the Brown Act (Government Code §54960, at seg) for the purposes of conferring with the City's Real Property Negotiator, and/or conferring with the City Attorney on potential and /or existing litigation, and /or discussing matters covered under Government Code §54957 (Personnel), and /or conferring with the City's Labor Negotiators, as follows CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956 9(a)) 1 Glover v City of El Segundo, LASC No YC039465 2 City of El Segundo v Stardust, LASC No YCO31364 3 City of El Segundo v South Bay Regional Public Communications Authority LASC, YC040688 4 City of El Segundo v. State Water Resources Control Board, SWR CB /OCC No. A- 1448(b) CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code §54956 9(b) -1- potential case (no further public statement Is required at this time), Initiation of litigation pursuant to Government Code §54956 9(c) -1- matter DISCUSSION OF PERSONNEL MATTERS (Government Code §54957) — None. CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Government Code §54957 6) — None. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code §54956.8) — None. SPECIAL MATTERS — None RECESS —The City Council recessed at 6 55 p m to convene In Open Session MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 7, 2002 PAGE NO 7 1 ,98 - 5 MINUTES OF THE REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 21, 2002 — 7 :00 P.M. Next Resolution # 4259 Next Ordinance # 1346 7:00 P.M. SESSION CALL TO ORDER INVOCATION — Minister Greg Barentine of Community of Christ PLEDGE OF ALLEGIANCE — Council Member Nancy Wernick PRESENTATIONS — Council Member Gaines invited interested persons to view the new MAX bus parked outside City Hall on Main Street ROLL CALL Mayor Gordon Present Mayor ProTem Jacobs Absent Council Member Gaines Present Council Member McDowell Present Council Member Wernick Present PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed Shirley Conger, Corona Del Mar, commented about Orange County's recent voter approval of Measure W which changed the zoning of El Toro from an airport to a park and suggested that such action would negatively impact other area airports. Jim Coyle, resident, commented about the June 15, 2002 Dog Park Open House celebration and also spoke about the Senior Golf League at The Lakes Golf Course A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. MOVED by Council Member Wernick, SECONDED by Council Member Gaines, to read all ordinances and resolutions on the Agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0, MAYOR PRO TEM JACOBS ABSENT. MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 7, 2002 PAGE NO 2 1.99 B. SPECIAL ORDERS OF BUSINESS — None. C. UNFINISHED BUSINESS — None D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS Consideration and possible action regarding the setting of a date and time for Interviewing candidates to the various Committees, Commissions and Boards The Council Members concurred to set the date for interviews of candidates to the Recreation and Parks Commission, the Library Board of Trustees, the Planning Commission and the Senior Citizen Housing Corporation Board, for 6:00 p m., Tuesday, June 4, 2002 E. CONSENT AGENDA All items listed are to be adopted by one motion without discussion and passed unanimously if a call for discussion of an item is made, the item(s) will be considered individually under the next heading of business 2. Approved Warrant Numbers 2525178 to 2525576 on Register No. 15 in the total amount of $1,360,992.62, and Wire Transfers in the amount of $290,497.07, and authorized staff to release Ratified Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and /or adjustments; and wire transfers 3 Approved City Council Meeting Minutes of May 7, 2002, as submitted 4. Approved addendum to U.S Landscapes, Inc contract for maintenance of Freedom and Independence Parks, and authorized the City Manager to execute the addendum on behalf of the City (Fiscal Impact- $26,400) 5. PULLED FOR DISCUSSION BY COUNCIL MEMBER MCDOWELL 6. Approved the purchase of three (3) thermal imaging cameras -from Special -T Fire Equipment for the Fire Department (Fiscal Impact —Not to exceed $74,800.00). PULLED DUE TO A POTENTIAL CONFLICT BY MAYOR GORDON. Approved acceptance of the road deed from OMP Douglas Property Company for Duley Road, and authorized the City Manager to accept the deed on behalf of the City 9. Adopted Resolution No 4260 to authorize continued participation in the Los Angeles Urban County Community Development Block Grant (CDBG) Program, from July 1, 2003 through June 30, 2006, and authorized the Mayor to execute the Cooperation Agreement on behalf of the City 10. Adopted Resolution No 4261 to establish a City of El Segundo space policy MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 7, 2002 PAGE NO 3 1 in 11. Approved the SPCA contract for animal sheltering services and authorized the City Manager to execute it on behalf of the City (Fiscal Impact- $26,400) 12. Approved Assignment of Right, Title and Interest in Public Service Agreement No. 2798 between the City of El Segundo and Just Right Help 11, Inc to AccentCare, Inc., and authorized the City Manager to execute the request on behalf of the City. MOVED by Council Member Gaines, SECONDED BY Council Member Wemick to approve Consent Agenda Item Nos. 2, 3, 4, 6, 8, 9, 10, 11, and 12. MOTION PASSED BY UNANIMOUS VOICE VOTE. 410. MAYOR PRO TEM JACOBS ABSENT. CALL ITEMS FROM CONSENT AGENDA 5. Consideration and possible action regarding the authorization to issue a purchase order for the City's mandated "Harassment in Employment" training. MOVED by Council Member McDowell, SECONDED by Council Member Wernick to authorize the City Manager to approve a purchase order to Liebert, Cassidy & Whitmore in the amount of $12,500 for citywide "Harassment in Employment" training on June 17, 19, 24, 26 and 28, 2002. MOTION PASSED BY UNANIMOUS VOICE VOTE. 410. MAYOR PRO TEM JACOBS ABSENT. 7. Consideration and possible action regarding adoption of a resolution establishing "NO STOPPING — TOW AWAY ZONE" for the west side of Sepulveda Boulevard (State Highway Route 1) between Holly Avenue and Palm Avenue. MOVED by Council Member Gaines, SECONDED by Council Member McDowell to adopt Resolution No 4259 to establish a "NO STOPPING — TOW AWAY ZONE" for the west side of Sepulveda Boulevard (State Highway Route 1) between Holly Avenue and Palm Avenue, and authorize staff to forward a copy of the resolution to Caltrans for posting of the parking regulation signs MOTION PASSED BY VOICE VOTE OF 3/0/1. MAYOR PRO TEM JACOBS ABSENT AND MAYOR GORDON DID NOT PARTICIPATE DUE TO A POTENTIAL CONFLICT. NEW BUSINESS 13 Consideration and possible action authorizing Shute, Mihaly and Weinberger to consult with counsel for the El Toro airport proponents to ensure that regional airport interests are incorporated into pending and future litigation (Fiscal Impact - $50,000) MOVED by Council Member Wemick, SECONDED by Council Member Gaines to authorize Shute, Mihaly and Weinberger to consult with the proponents of the proposed El Toro airport on issues related to strategy and current and future litigation MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0. MAYOR PRO TEM JACOBS ABSENT. F. REPORTS — CITY MANAGER — None G. REPORTS — CITY ATTORNEY — Reported on the Settlement and General Release Agreement between the City and Lionel Glover. MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 7, 2002 PAGE NO 4 III H. REPORTS — CITY CLERK — None I. REPORTS — CITY TREASURER — None J. REPORTS — CITY COUNCIL MEMBERS Council Member McDowell — Advised that he has resumed Saturday office hours in the park, commencing May 25, from 10am to noon. Council Member Gaines — Spoke regarding the MAX buses and invited those present to view them outside in front of City Hall Council Member Wernick — Spoke about the volunteer picnic and Super CPR Saturday Mayor Gordon — (1) Announced that a sound studio is being constructed in El Segundo to film a new television series spin -off of CIS and cited anticipated residual benefits it will bring to the business community. (2) Indicated he would be going to Sacramento to testify on behalf of the City regarding AB2333 (3) Extended thanks to the Committee and Staff members responsible for the successful Volunteer Picnic (4) Reported on a meeting he attended last Saturday concerning Boeing. PUBLIC COMMUNICATIONS — (Related to City Business Oniv — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves pnor to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed Anne Marie Wallace, Regional Representative of The League of Cities, discussed its Grassroots Network, recently established to address major issues of concern to cities and to generate local advocacy MEMORIALS The City Council adjourned the meeting in memory of Stephen Rich, a long -time resident of the community and father -in -law of Recreation & Parks Commissioner Colleen Glynn -Rich CLOSED SESSION —None The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, at seo ) for the purposes of confemng with the City's Real Property Negotiator, and /or confemng with the City Attorney on potential and/or existing litigation, andlor discussing matters covered under Government Code Section §54957 (Personnel), andlor conferring with the City's Labor Negotiators REPORT OF ACTION TAKEN IN CLOSED SESSION — None. ADJOURNED at 7 34 p�m Caroline del-lamas, Interim Deputy City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 7, 2002 PAGE NO 5 1 1 1 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION MEETING DATE June 4,2002 AGENDA HEADING: Consent Agenda Monthly status report on Capital Improvement Program Protects - (No fiscal Impact) RECOMMENDED COUNCIL ACTION Recommendation — (1) Receive and file, (2) Alternatively discuss and take other actions related to this item BACKGROUND & DISCUSSION This monthly report will provide the status of various protects approved in the Capital Improvement Program The report will be updated on a monthly basis with input from other impacted Departments ATTACHED SUPPORTING DOCUMENTS- Schedules FISCAL IMPACT None Capital Improvement Program- Amount Requested* Account Number Project Phase. Apprcpnation Required ORIGINATED BY Andres Santa REVIEWED BY Strenn, Director of Public Works DATE: May 24, 2002 DATE' E COUNCIL JUNSMONTXLY 5IFIDS REPORT CIP PROJECTS 113 f \ / \ � \ / � I\ \ \ . � r } } } ® f ` z » • | | � \+ !� I! EEC ,§ \! + \� !! A-z-1; ! } , � -- -- -� -� ƒ | � \ k � \ z z i T9 m T9 M In ® f ` z » • | | � \+ !� I! EEC ,§ \! + \� !! A-z-1; i N 2 LL n 9 m r o, c s 8_ e 'a a o a o o L lam^ 'a E- dE o u� g, s s 0 a 2 i m � eN n 2 6 m U 2 N O m U 2 i c, 8 sE S E c � E e 5 e I � � S 115 8 s `a E 2 LL n 9 m r s c s c, 8 sE S E c � E e 5 e I � � S 115 8 s `a n 9 > I° c, 8 sE S E c � E e 5 e I � � S 115 8 s `a , � � \ , � I � / � % { , ! I - - ! ! - , | � \ 2 � } � . . i' b _ | � �� § � .; \_ \ } [ � a | | �� ; � � -2 . | ; $ I |{ \$ � � - - -� -- - - -- — ( § \ { ) } } � ) ; | I !} , : ; , ; : ! ! ! • ; ! ! ! {�� � �� �j ; i i \ ( ) § | §� � r ! � . i ! ! ! _ • , , :} § ` �� /� � � � � ` � � ( ( _ � -^ - � � ` ` � � / 'r I _ » f . { . } } � ! / \ \ \ \ \ \ / } \_} } \ , � �����_ ��m m m g m m m m | , � � , . . . , _ . _ _ . ) . , _ � ¥ , ` , , : � � . _ � ` � ' : „/ 117 I | � > , � . \ [ ' l \ _ . � � ] _67 !| \ ! !! 1. § } ! _) ! ; ] ) v7,� m m m n m m Cl m m m ) 119 a, "s= 0 = 3 - Pg w� o �E V S _ _ _ w 9 9 9 e a 90 121) R s P 3 A 8 �I 1 � � r E E y 5 e 3 � a � i M a" �g p Zi V� rm¢ a O 4 a in Um t0 d 2 01'J m 1 lm 1 M —M- 121) R s P 3 A 8 �I 1 � � r E E y 5 e 3 � a � i M a" sl 6I g 3 a o - h i ' yY � is O U� A 8— x c S _ w o — a ; � w i I� a Q N a li N u 5 p m mm2 O m U 2 m� w � X1'1 rl m e � o c i 0 N a 3 N O IS R 8 I i i g � e I i ') 1) e 0 S g p 3 la Ib ey " C e a i ') 1) 0 0 F e a ♦ °t z �E o V� — V 8� E 3 i s a_♦ a� a it �I I E s � Y 9 3 C � P y s s n E s 9 d w � I I i E y 5 e n o P y f- I $ 9 a s g U B C � P � n c+ m - a r U p m U $ Q V;1 IL LL On 9 d w � I I i E y 5 e n o P y f- I $ 9 a s g U B 125 �IH S Ise z 0 o I'1 CI Cl f'I ('1 CI rl CI D � "a 8^ a z o — 8 L rv' i z ♦ ♦ ♦ Li — Y do y _ Ala P g' r rvF - E r E y m n a 3 ; S a -ry _ 3 o ry ry p Y sv o e o 0 0 0 0 0 0 125 o I'1 CI Cl f'I ('1 CI rl CI D � "a 125 EL SEGUNDO CITY COUNCIL MEETING DATE: June 4, 2002 AGENDA ITEM STATEMENT AGENDA HEADING. Consent Calendar AGENDA DESCRIPTION: Consideration and possible action regarding Workers' Compensation Presentation by Jody Gray, President of Southern California Risk Management Associates (SCRMA), the City's third party administrator for self- funded workers' compensation insurance RECOMMENDED COUNCIL ACTION. 1 Receive and file presentation 2 Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION At the Town Meeting held on January 31, 2002, several city business owners and administrators voiced concern over the ongoing rising costs of Workers' Compensation coverage and claims Council members directed the Administrative Services staff to provide an information report to City Council on Workers' Compensation issues Staff then requested a formal presentation from Southern California Risk Management Associates, with emphasis on privately -owned & operated businesses ATTACHED SUPPORTING DOCUMENTS Presentation prepared by Jody Gray, President, Southern California Risk Management Associates FISCAL IMPACT Operating Budget Amount Requested Account Number. Pro)ect Phase Appropriation Required —Yes X No Bret M Plumlee, Director of Administrative Services REVIEWED BY, DATE: Manager Agenda 392 126 7 June 4, 2002 CITY OF EL SEGUNDO Workers' Compensation Volatility How to Control and Mitigate Costs Presented by. Jody A. Gray, W.0 C P., AR M. President, SCRMA, Inc. 127 State of California Workers' Compensation Today * Average insurer rates increased 26% from 1999 to 2000. 19% from 2000 to 2001 * The State Insurance Commissioner approved an 18.5% pure premium rate increase for the year 2000, a 10 1% in 2001, a 10.2% in 2002, with a mid -year increase anticipated for 2002 * AB 749, effective January 1, 2003, dramatically increases workers' compensation benefits and affords very little in the way of "system reform " * 5_5, independent insurers or insurer groups which collectively wrote one -fourth of the total California workers' compensation market in 1994, are currently under regulatory action by the Department of Insurance as a result of financial insolvency * The State Compensation Insurance Fund (SCIF) and the California Insurance Guarantee Fund (CIGA) are estimated to have 75% of the California market share * Trickle -down effect of 9/11 and weakening economy 128 How Did Workers' Compensation Get this Way? History of the Industry * Direct relationship between insurance and the stock market - Bull market means soft market Bear market means hard market * In 1994, the legislature opened the door to carriers to set their own rates for insurance premiums (open rating) * Competition for market share resulted in price bidding for business * The average cost of a workers' compensation indemnity claim has escalated from $15,646 in 1994 to $38,397 in 2000 * Market impact on employers Current market turmoil -Losses exceed premiums collected -Revenues cannot be made up by investments -Only a few healthy carriers /reinsurers are left to quote -Carriers can pick and choose employers to write -Assessment CICA increased from 5% to 2% - another increase pending Current workers' compensation renewals •35% to 100 +% increases have been experienced -Carriers expect 25% to 40% premiums above expected actuarial confidence levels Limited renewal options -No multi -year rate guarantees -Mandated loss - sensitive programs -Mid-year program rate increases as a result of AB 749 trn What Can Employers Do to Contain and Mitigate Costs? * Implement cost containment programs Return to work or "Transitional Duty" programs: Prepare to take advantage of employer reimbursements from the State, effective July 1, 2004 Fee negotiations with preferred provider clinics /vendors File reviews Cost allocation plans within locations Implement and document Safety and Training Plans Compensation and incentive programs linked to employee safety on the fob If Insured: * Comprehensive and timely underwriting information Complete all requested information about your business Provide comprehensive and detailed loss runs for 5 -7 years and stratified reports Provide sample policies and programs directed at costs reduction Cite specific examples of well managed (large exposure) claims Submit quality and timely application Make sure that your business's "Ex -Mod" has been filed and that it is correct 130 If Self- Insuring: Know your business's costs for risk Actuarially project loss trends (at approximately 70% confidence level at net present value) Add cost of claims administration Add cost of excess insurance - Add other ancillary costs to self -fund program 131 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION' MEETING DATE: June 4, 2002 AGENDAHEADING• Consent Agenda Consideration and possible action regarding adoption of plans and specifications fortraffic signal and Intersection improvements for Sepulveda Boulevard at Grand Avenue and El Segundo Boulevard - Approved Capital Improvement Program — Project No PW 02 -15 (estimated cost = $783,000.00 — City share from Traffic Mitigation t=ees = $387,500 00) RECOMMENDED COUNCIL ACTION: Recommendation — (1) Adopt plans and specifications, (2) Authorize staff to advertise the project for receipt of construction bids; (3) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION On September 26, 2000, the City Council approved a City- Caltrans Cooperative Agreement to implement several Improvements to the Sepulveda Boulevard Intersections with Grand Avenue and El Segundo Boulevard (Background & discussion continued on the next page.....) ATTACHED SUPPORTING DOCUMENTS Location map FISCAL IMPACT. Capital Improvement Program Amount Requested* Account Number Project Phase- Appropriation Required: .L , I $387,50000 702 -400- 8141 -8948 Adoption of plans and specifications No Andres Santamana, Director of Public Works DATE: May 24, 2002 coUNG`4u.E0 01 iF.ry0YIY0 2wpM) 132 R BACKGROUND & DISCUSSION (continued) These improvements include the following* (a) Grand Avenue l Sepulveda Boulevard Intersection: Double left turn lanes of westbound Grand Avenue and southbound Sepulveda Boulevard, left tum arrow for eastbound Grand Avenue and reconstruction of the north -west corner of the intersection to improve turning radius (Caltrans has obtained the necessary right -of -way at this corner) The installation of double left turn lanes includes removal of a portion of existing median islands and relocation of existing median street lights to the adjacent sidewalk areas (b) EI Segundo Boulevard / Sepulveda Boulevard intersection Left turn arrow for eastbound El Segundo Boulevard. The City - Caltrans agreement provides for a Caltrans participation of $395,500.00 (which includes right -of -way acquisition costs) and a City participation of $387,500.00 for a total estimated project cost of $783,000 00 The design of the proposed improvements has been approved by Caltrans and the project is ready for advertising LOUNGL JUNE W 01 (F.ry M.M 200 P M � 1 1 A1Nf10] 53130Ntl 501 A4i 3NYOHIMYH i0 All] o O' = 1 cpw 00310 NYS = H C .d3N]sa Yl W 1 I� I11` NI II 'nI IwI . 3M flf\ � •n. h LJ IJ LJ� LJ l�l.l� r_��m �J ^ • O!~ .� Owl9 MOIlY1N Y f 3 Y 1 ti¢� WM 113 IYO 6 O ¢ t 3M OOM003tl J r a 2 < B M1Ya1 AYE O A3'n0 r n = O ? 3601 N33N9 : OY13Y/ MCI. ¢ Y lYN YYIa Z LM4Y11 AVA Y W N TM T ♦ m j AYMvsaiIj = i a � v is liras s 1YOarr awli N � F MYI SSl m 2 •mwlwaas M91Y Sfl S li Mtlll !M•pM1 �' 3M M all a ® ll D . RMSMIN M 1 Inklm. oww l] t 14 f.4NfY !LLSwI YIa I" Y Lf YWY l•] � M WWI U all a � i � is Naa) 9M Tllala 1f !O!w)M i O Y wI llY011 Y31Mla w011flYla � O�u J if ONtl1Yl11 y1 � w a VY A)MMOIf _ .1100, �� B ®a 1) •11X0, „ 3S IYYJIf 0 ❑j"jiljl� ❑� ® 1) MM91 Y )MaNlli J , 11L`�1111 \ \LYR.WWII 13 MObl3NC � 2 .N]Y• IF W N O N -I . - fN wt 33 OY.OM•14 w N e if *"a ` (`1J��0� ❑EBRB 1f ONOFMaIY w; why _ is o4oa4oa y 9 V e aoa���e� 14 f1 15 dMI11M! IS .lflw 1.01 YNOI is as3YT,M O 2 1 151..x- L IN at • W r W N LaiO hs .aanl �p `ES 0 J i W •" a a o pf c LL j a Ni V U 134 V U U Q N d EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION- MEETING DATE: June 4, 2002 AGENDAHEADING. ConsentAgenda Consideration and possible action for award of contract to Valley Crest Landscaping Company for the landscaping of Sepulveda Boulevard median Islands, between Rosecrans Avenue and Imperial Highway — Project No PW 02 -14 - Approved Capital Improvement Program (contract amount = $585,340 00) RECOMMENDED COUNCIL ACTION: Recommendation — (1) Reject the low bid of KCI Karleskint -Crum, Inc, as being non- responsive, (2) Award contract to the lowest responsible bidder, Valley Crest Landscaping Company, (3) Authorize the City Manager to execute the construction contract on behalf of the City, (4) Authorize the City Manager to execute a Professional Services Agreement with CBM Consulting, Inc , to provide inspection services for an amount not to exceed $75,000.00, (4) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION. On March 19, 2002, the City Council adopted plans and specifications and authorized staff to advertise the project for competitive bids (Background & discussion continued on the next page....) ATTACHED SUPPORTING DOCUMENTS 1 Letter from KCI - Karleskint -Crum, Inc , dated May 9, 2002. 2 Location map FISCAL IMPACT: Capital Improvement Program Amount Requested Account Number. Project Phase: Appropriation Required $766,00000 $678,000 00 (Grant Amount) $ 88,000 00 (City Funds) 301 -400 -8203 -8636 Award of contract No ORIGINATED BY DATE* May 24, 2002 Andres Santamana, Director of Public Works REVIEWED BY Strenn, DATE: �f - f /�27 °L CONNCIL4UNF W M(FMO OYL 2WPM, 135 � 1 BACKGROUND & DISCUSSION (continued) On May 7, 2002, the City Clerk received and opened the following bids, 1 KCI Karleskint -Crum, Inc * $497,17000 2 Valley Crest Landscaping Company ** $585,340.00 3 S & M Landscape, Inc $598,95000 4 Terra -Cal Construction, Inc $614,26500 5 Zondiros Corporation $666,678.72 6 Los Angeles Engineering, Inc $707,551 00 7. SKS Construction $745,560.00 8 Bennett Landscape $805,341.00 The bidder has requested that it be allowed to withdraw its bid due to a mistake in the bid proposal (attached letter) Staff recommends that this bid be rejected as non - responsive ** Staff recommended award of contract to the lowest responsible bidder. The construction of the project in the heavily traveled State Highway in compliance with Caltrans requirements needs a full time construction inspector. Staff contacted several consultants and recommends retaining CBM Consulting, Inc , to provide the inspection services for $75 50 /hour, at a not to exceed cost of $75,000 00 CBM Consulting, Inc, has offered an inspector who has prior experience in inspecting projects on a State Highway These expenditures are eligible for reimbursement from the State Grant. Staff also intends to utilize this inspector to oversee the forthcoming project for Sepulveda Boulevard signal improvements, which will be under construction concurrently with this landscaping project. COUNCIL -JUNE W IN IRMay 05OYM 3 W P M 1 1IF / Kadeskht- Crum. Inc. May 9, 2002 City of El Segundo Public Works Dgmrl'ment 350 Main Street El Segundo, Ca 90245 -3895 ATTN.- Maryam Jonas RE: Landscaping ofMedianTdnds Project No. PW 02-14 Bid Date May 7, 2002 • ♦ s,•«- 1• • •\u ••- ••• 11 ! u :.•111 w nu Inr, bereby requests reHef 1 • 11 • submitted • 1 the r • referenced project. We make this request due to a okncd error that led to a mixterml mistake. 1 4 M 4 • IP: \ • 1 •1• • 1 1 •1 - 111.11 P:1 1•p•• :1 • \II• \ 1 p • w :• •i •11'J 1• ' • •1 :-1. -1I♦ 1 U 141•n 11 �1 •• \• 1 1 i11• ' • r • .1•IH 11 • i N =1i w 1,' Il \ 1• •tl "11 bull -\ ••. ! • • y,l dh• `J 1 • • • \i 1 :1 1n: 1 :1 'n49 I• • r 111111: y W. t1 1 1 • 1 1 111 - •: II • • ' . If .1■ • -1yro I I "YO 0 A i 1 • M • 11 - 1 1 - • • 11 ■ • 1 - •1 • 1 • :.� 1 1 L L 1 • I I I6 • } I . I \ • 1 • 1 1. 1 •1 11!11 • 1111 1 1 - • w ■ 1 \ 1.11 L • Cunt Bou"VeU Vice President / General Manager 137 CONTRACTORS Landscape - Erasion Control - Engineering • CA*247631 P. Q Bm 5358. San tus0blspo. CA 93403 a (805) 5433304 • FAY M)543 38Z/ J , W U Q 1] H O J ,C W N - 0 V 0 x M(11I i qV IY#N �E5 n o pP 00111,1 3NNOH1M11H 910 All? m 00]10 NYt = W W asl �\ •'s g g xaill A, ww au u. 0 a rxNwNl n li fIOMITI LS MO1xNIMiM 1S i1, iNYN if VYIYOII 11O 15 NOD3Ya li YOVA]M if YP1N3O 'YO #OlVptlli 13 ONILYVN 1[ YIINOI is YYY]If IS NN34 is NCO13N1I is ,N3YY A is OYVON Yls 15 N13N ]S ONOA.olw Ls =N0] LS ,MIOYU 1s 3NIi1N# 1s list. V.01 is 14;3Y3111N z Q u w U LL Q u M YI tl M Qftl Stl 3 m 7 " = L only IA1Nno0 53139NV sv 3 OW m r t IPNYe o: J Z o � only F 3 a. Q LL � a J; a J ¢ r 4VV s o ' � 138 Z 'm It 'at -j F 2 J , W U Q 1] H O J ,C W N - 0 V 0 x M(11I i qV IY#N �E5 n o pP 00111,1 3NNOH1M11H 910 All? m 00]10 NYt = W W asl �\ •'s g g xaill A, ww au u. 0 a rxNwNl n li fIOMITI LS MO1xNIMiM 1S i1, iNYN if VYIYOII 11O 15 NOD3Ya li YOVA]M if YP1N3O 'YO #OlVptlli 13 ONILYVN 1[ YIINOI is YYY]If IS NN34 is NCO13N1I is ,N3YY A is OYVON Yls 15 N13N ]S ONOA.olw Ls =N0] LS ,MIOYU 1s 3NIi1N# 1s list. V.01 is 14;3Y3111N z Q u w U LL Q u M YI tl M Qftl Stl 3 m 7 " = L only ,. m r t IPNYe o: J L o � m 3 3 a. Q LL � a O a J ¢ r 4VV s o ' � 138 Z 'm F 2 vmA1n33s � Y' m j AYM 333 1mIY1 z � ¢ w v ii ♦v13s N Cl O J N J , W U Q 1] H O J ,C W N - 0 V 0 x M(11I i qV IY#N �E5 n o pP 00111,1 3NNOH1M11H 910 All? m 00]10 NYt = W W asl �\ •'s g g xaill A, ww au u. 0 a rxNwNl n li fIOMITI LS MO1xNIMiM 1S i1, iNYN if VYIYOII 11O 15 NOD3Ya li YOVA]M if YP1N3O 'YO #OlVptlli 13 ONILYVN 1[ YIINOI is YYY]If IS NN34 is NCO13N1I is ,N3YY A is OYVON Yls 15 N13N ]S ONOA.olw Ls =N0] LS ,MIOYU 1s 3NIi1N# 1s list. V.01 is 14;3Y3111N z Q u w U LL Q u M YI tl M Qftl Stl 3 m 7 M w — A N r # In — N M ' r —/ -\,� O !rN AUTO = IYM :7 Q \� J L W m a. Q LL � O a t3 y- r 4VV !- qu 23 138 4 2 vmA1n33s � -11A, !vO M 013 Cl a 111114 lM 111nT# y .41300" r $L •Y all, U At 31YtN Y Ar 13,011 a° 91, 111NYNI11 0, 2,0,,14 M w — A N r # In — N M ' r —/ -\,� O Z :7 \� J L W a. Q LL � O t3 y- r 4VV !- qu 23 138 EL SEGUNDO CITY COUNCIL MEETING DATE: June 4, 2002 AGENDA ITEM STATEMENT AGENDAHEADING: ConsentAgenda AGENDA DESCRIPTION Consideration and possible action for award of contract to Mariposa Horticultural Enterprises, Inc , for Acacia Park Irrigation system replacement — Project No PW 02 -13 - Approved Capital Improvement Program (contract amount = $17,228 00) RECOMMENDED COUNCIL ACTION- Recommendation — (1) Award contract to Mariposa Horticultural Enterprises, Inc , in the amount of $17,228 00, (2) Authorize the City Manager to execute the contract on behalf of the City, (3) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION: On April 16, 2002, the City Council adopted plans and specifications and authorized staff to advertise the project for receipt of competitive bids The project includes replacing the existing non - functioning irrigation system with a new system On May 21, 2002, the City Clerk received and opened six (6) bids as shown on the bid summary sheet ATTACHED SUPPORTING DOCUMENTS 1 Bid summary sheet 2 Location map FISCAL IMPACT Capital Improvement Program $35,50000 Amount Requested $17,22800 Account Number: 301 -400- 8202 -8642 Protect Phase Award of contract Appropriation Required- No ORIGINATED BY DATE. May 24, 2002 Andres Santamana, Director of Public Works COUNM JANE M 02 (Fm 6 24 2NPMI O 139 BID SUMMARY SHEET Company Manposa Horticultural Enterprises, Inc. Azteca Landscape US Landscape, Inc S & M Landscape, Inc Green Giant Landscape, Inc West Point Development Zondiros Bid Amount $17,228.00 $18,000.00 $18,74700 $18,808.00 $19,890.00 $23,480.00 $27,625.00 COUNCIL JUNE M M (FWI 05.2402 2 W G M, Ian YAl/ U LJUU L —jg.0 1 Y) YOIISIA. tl 1S S L. 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Consent Ager Consideration and possible action regarding a request for the City Council to approve the authorization of AB 2766 funds to partially fund the purchase of a new alternative fuel shuttle bus (Fiscal Impact = $5,000 00) RECOMMENDED COUNCIL ACTION, Recommendation — (1) Authorize the approval to use AB 2766 funds to supplement the additional funds to purchase a new alternative (propane) power shuttle bus, (2) Alternatively discuss and take other action related to this item. BACKGROUND 8L DISCUSSION. On March 6, 2002, the City Council approved the replacement of one (1) shuttle bus for replacement of unit 6471 The cost is included in the Equipment Replacement Fund was $59,74000 (Background & discussion continued on the next page....) ATTACHED SUPPORTING DOCUMENTS, FISCAL IMPACT. Operating Budget* Amount Requested $5,00000 Account Number, 115 - 400 - 0000 -8104 Project Phase Purchase Appropriation Required Yes ORIGINATED BY: DATE: May 24, 2002 Andres Santamaria, Director of Public Works COUNCIL JUNEINNE W 0 (FM.10WM Z W P N 1n2 BACKGROUND & DISCUSSION (continued) Currently, all City shuttle buses are gasoline powered. The State and AQMD mandates that government agencies pursue alternative powered equipment when available. Staff received two (2) bids from a State contract for one (1) new alternative (propane powered vehicle) Creative Bus Sales $64,283.17 A -Z Bus Sales $64,724.41 Due to the increase in cost for propane powered vehicles, the City Equipment Replacement Fund requires a supplement of $5,000 00 in order to purchase the new bus The City receives State funds (AB 2766) based upon vehicle registration from each residential driver The funds may be used for emission reduction programs and projects based on the City's needs and the State requirements, such as purchase of alternative fuel vehicles, shuttle programs, and bike paths in order to reduce vehicle emissions. Currently, the City of El Segundo has $46,000 00 in AB 2766 funds and the City receives approximately $16,000 00 annually from AQMD The staff is recommending the use of $5,000 00 to supplement the purchase of the new propane powered vehicle This purchase will allow the City to stay within compliance of all State mandates and also help reduce vehicle emissions COUNCIL JUNEUUNE M 05(FWW0 QM W PM) 143 EL SEGUNDO CITY COUNCIL MEETING DATE: June 4, 2002 AGENDA ITEM STATEMENT AGENDA HEADING. Consent AGENDA DESCRIPTION: Consideration and possible action to reject all bids from RFP No. #02 -03 (Police Towing and Storage Services) and authorize the police department to issue a new RFP to additional vendors RECOMMENDED COUNCIL ACTION (1) It is recommended that the City Council reject all bids submitted for RFP #02 -03 (2) Alternatively discuss and take other action related to this item Currently, the City contracts with a towing company to provide towing and storage for vehicles that are impounded due to illegal parking, traffic accidents, arrest, stolen vehicles, and other assorted reasons The City typically orders 55 -60 tows per month The City collects a 10% administrative surcharge that the contractor pays from the gross receipts for all tow services, charges, and vehicle storage Continued on Page Two ATTACHED SUPPORTING DOCUMENTS. FISCAL IMPACT. Operating Budget: N/A Amount Requested: 0 Account Number N/A Project Phase N/A Appropriation Required. _Yes x No L UEyt, � Jack rNEi0f Police REVIEWED BY. DATE. ary S nn, City Manager zoL 144 12 El Segundo City Council Meeting Date June 4, 2002 AGENDA DESCRIPTION- Consideration and possible action to reject all bids from RFP #02 -03 (Police Towing and Storage Services) Page —2— BACKGROUND & DISCUSSION' On January 18, 2002, staff solicited proposals from three companies Two responses (S &W Towing and Storage, and Jim & Jack's Auto Body) were received and evaluated upon the following criteria contractor's experience, facilities, background, bid responses, and ability to meet the City's needs In the process of evaluating a towing company, the cost of towing and storage is only one of the considerations because the cost of towing and storage is borne by the registered owner of the vehicle, not the City Staff also focused on factors that are considered critical in selecting contractors who will represent the City throughout the towing process, from proper damage -free vehicle handling to customer service Once bids were received, staff evaluated them and a background investigation was conducted on both companies As a result, staff determined that it was not in the City's interest to contract with either bidder at this time One company's background and references was unsatisfactory, and the other did not appear to meet the RFP's requirements Based on the background investigation conducted by the police department and the city attorney, it is recommended the City Council reject all bids for RFP #02 -03 and authorize the police department to issue a new RFP The new RFP would be slightly modified to attract a greater number of bidders for the City's towing contract 1419 CITY OF EL SEGUNDO MEMORANDUM DATE: May 22, 2002 TO: Honorable Mayor and Members of the City Council Mary Strenn, City Manager FROM: Cindy Mortesen, City Clerk RE: Potential Conflicts of Interest on Matters on June 4, 2002 Agenda The following Council Agenda Item(s) may have a potential conflict of interest for the Mayor, Mayor Pro Tern or the Council Members Item No. 1 Consideration and possible action regarding a lease between the City of El Segundo and 612 Twin Holdings LLC for 100 parking spaces in a new 176 space parking facility to be constructed at 121 W Grand Avenue. The cost includes a one -time lease payment not to exceed $1,100,000 for the construction of the City's 100 parking spaces plus annual lease payments of $194,000 00 and operating and maintenance expenses for 34 years Item No. 8 Consideration and possible action regarding adoption plans and specifications for traffic signal and intersection improvements for Sepulveda Boulevard at Grand Avenue and El Segundo Boulevard — Approved Capital Improvement Program — Project No PW 02 -15 (estimated cost = $387,500 00) POTENTIAL CONFLICT — MAYOR MIKE GORDON Item No. 9 Consideration and possible action for award of contract to Valley Crest landscaping Company for the landscaping of Sepulveda Boulevard median islands — Project No PW 02 -14 — Approved Capital Improvement Program (contract amount = $585,340 00) POTENTIAL CONFLICT — MAYOR MIKE GORDON CITY OF EL SEGUNDO INTER - DEPARTMENT MEMORANDUM DATE May 29, 2002 TO Mary Strenn City Manager FROM James M. Hanse Director of Com conomic and Development Services SUBJECT Potential Conflict of Interest Items for the City Council Meeting of Tuesday, June 4, 2002 The following Council Agenda item may have a potential conflict of interest for the Mayor or the Council Members Special Orders of Business — Public Hearing: Consideration and possible action regarding a lease between the City of El Segundo and 612 Twin Holdings LLC for 100 parking spaces in a new 176 space parking facility to be constructed at 121 W Grand Avenue The cost includes a one -time lease payment not to exceed $1,100,000 for the construction of the Gay's 100 parking spaces plus annual lease payments of $194,000 00 and operating and maintenance expenses for 34 years POTENTIAL CONFLICT - MAYOR PRO TEM SANDRA JACOBS There are no other potential conflicts with City Council agenda items from the Community, Economic and Development Services Department JH pg cc 'Jessie LeMay, City Manager's Office Cathy Domann, Deputy City Clerk P \Planning & Building Safety\PROJECTS \576 - 599\9A- 58 1 \CONFLICT MEMO DOC CITY OF EL SEGUNDO INTER - DEPARTMENT MEMORANDUM DATE May 22, 2002 TO Mary Strenn City Manager FROM Andres Santamana a Director of Public Works SUBJECT Potential Conflict of Interest Items for the City Council Meeting of Tuesday, June 4, 2002 The following Council Agenda items may have a potential conflict of interest for the Mayor or the Council Members Consent Agenda: Consideration and possible action regarding adoption of plans and specifications for traffic signal and intersection improvements for Sepulveda Boulevard at Grand Avenue and El Segundo Boulevard - Approved Capital Improvement Program — Project No PW 02 -15 (estimated cost = $783,000 00 — City share = $387,500 00) POTENTIAL CONFLICT - MAYOR MIKE GORDON Consideration and possible action for award of contract to Valley Crest Landscaping Company for the landscaping of Sepulveda Boulevard median islands — Project No PW 02 -14 - Approved Capital Improvement Program (contract amount = $585,340 00) POTENTIAL CONFLICT - MAYOR MIKE GORDON There are no other potential conflicts with City Council agenda ttemsfrom the Public Works Department AS dr cc Mishia Jennings, City Manager's Office Cathy Domann, Deputy City Clerk COUNCIL JUNE,IUNE 4 CONFLICT MEMO