1) Approve the new lease with Yvonne Yamashita for Annie’s Stand at Abalone Cove Shoreline Park; and 2) authorize the Mayor and City Clerk to execute the lease agreement.

James Ishibashi and his family have operated a produce and flower stand at Abalone Cove Shoreline Park since 1978. The original lease was executed on May 30, 1978 between Los Angeles County and Mr. Ishibashi shortly after the County acquired the property as a public park. The lease was renewed on September 3, 1981 for an initial term of two years and then converted to a month-to-month arrangement. In 1983, the City entered into an agreement with the County to operate and maintain the Abalone Cove property. On January 10, 1984, the City sent a letter to Mr. Ishibashi indicating that the terms of the County lease would continue to remain in effect under the City’s management. In 1988, the City assumed ownership of the property from the County. The City’s records show that the amount of rent that has been paid for use of this property is $275.00 per month, or $3,300 per year.

Following the passing of Mr. Ishibashi earlier this year and the fact that Annie’s Stand has been closed for some time, staff felt that it was an appropriate time to review the status of the current lease. On June 18, 2002, staff sent a letter to Yvonne Yamashita, James Ishibashi’s daughter, regarding that status of Annie’s Stand. Ms. Yamashita has worked at the family’s produce stand for many years and has been managing the stand with her father for the last several years. Ms. Yamashita indicated to staff that she is interested in entering into a new lease with the City and continuing to operate the produce stand at Abalone Cove. Although the stand has been closed for much of this year, Ms. Yamashita has kept current with the rental payments and is currently paid up through June 30, 2002.

Based on Ms. Yamashita’s desire to continue to operate Annie’s Stand, staff has prepared and the City Attorney’s Office has reviewed the draft lease agreement, which is attached for the Council’s review.

Once the most predominant land use activity on the Palos Verdes Peninsula, agriculture has diminished over the last few decades to only a few remaining areas. Entering into new lease with Ms. Yamashita for Annie’s Stand at Abalone Cove Shoreline Park would preserve the last remaining roadside produce stand in the City. Perpetuating this use of the City’s property would be consistent with the policies of the General Plan to "encourage continued operation of existing produce and flower stands" (General Plan Page 100).

The total rent that the City receives for the use of property at Abalone Cove Shoreline Park is $3,300 per year. By entering into new lease agreements with Mr. Ishibashi’s daughter, Yvonne Yamashita, the City will continue to receive $3,300 in General Fund revenue per year for the use of this property. Due to the City’s long-term relationship with the Ishibashi family and the fact that this is the last remaining produce stand in the City, staff is not recommending an increase in rent.

Respectfully submitted:

Carolynn Petru

Assistant City Manager

Reviewed,

Les Evans

City Manager

Draft Lease Agreement for Annie’s Stand at Abalone Cove Shoreline Park

THIS LEASE AGREEMENT ("Lease"), is made and executed as of the ___ day of ________________, 2002, by and between the City of Rancho Palos Verdes, a municipal corporation of the State of California, hereinafter called "City" and Ms. Yvonne F. Yamashita, hereinafter called "Lessee," who agree as follows:

1. City shall lease a portion of the Abalone Cove Shoreline Park property, located at 5970 Palos Verdes Drive South, including the structure known as "Annie’s Stand," hereinafter called "Premises," that is depicted on the plan designated as Exhibit "A" attached hereto and incorporated by reference herein.
2. The term of the lease is for 60 months, commencing on July 1, 2002, and ending on June 30, 2007.
3. The annual rental payment shall be $275.00 per month, payable in advance. Payment shall be made to the City of Rancho Palos Verdes.
4. Lessee shall neither transfer nor assign this lease or any property being leased from City without prior permission in writing from the City Manager of the City.
5. Lessee accepts the Premises in its present state and condition and waives any and all demand upon City for alteration, repair, or improvement thereof. No new structures of any kind shall be placed on the site, and the existing structure shall not be altered (except normal repairs and maintenance), expanded or moved on the property without prior written consent of the City Manager of the City. Lessee shall remove any personal property installed or placed on the Premises by Lessee prior to the termination of this Agreement, and in the event of the failure to do so, title thereto shall vest in City or shall become the property of City upon the termination of this Agreement.
6. Use of Premises shall be limited to a roadside produce stand selling fruit, vegetables and flowers only. Hours of operation shall be limited to 9:00 AM and 5:00 PM each day that the stand is open. Lessee shall chain and lock the driveway entrances to the Premises parking area when the produce stand is closed and shall provide City with the lock combination or a copy of the key. No person shall be permitted to reside on the Premises.
7. Lessee shall assume the risk of loss, damage or destruction due to theft, fire and casualty of any and all fixtures and personal property belonging to Lessee that are installed or placed on the Premises.
8. Lessee shall not change or alter the existing advertising signs or add new signage on the Premises without prior permission in writing from the City Manager of the City.
9. City may inspect Premises at any time and for any purpose.
10. Lessee agrees to defend, indemnify and hold harmless City, its officers, agents and employees from any and all claims for loss, damages, injury or death to persons or damage to or loss of property, including attorney’s fees and court costs, arising out of the use of the Premises by Lessee, or by his employees, guests and visitors.
11. Lessee shall obtain and keep in full force and effect during the term of this Agreement workers' compensation insurance, in accordance with the requirements of the California Labor Code and any other applicable laws, and a policy of general liability insurance. In addition, Lessee shall obtain and keep in full force and effect insurance in an amount sufficient to cover all equipment, inventory and other personal property of Lessee that is kept on the Premises in accordance with the provisions of this Agreement. All such insurance policies shall be issued by insurance companies admitted to do business in the State of California with a Best’s rating of at least A. The policy of liability insurance shall: (a) name City and its officers, agents and employees as additional insureds; (b) shall insure and protect City and its officers, agents, and employees from and against any and all liability arising out of or connected with the use by the Lessee of the Premises; (c) shall provide a combined single limit for the liability covered in the amount of $500,000; and (d) be noncancellable without thirty days prior written notice thereof to City. Lessee shall file with the City Clerk either certified copies of said policies or a certificate of insurance for each of the required policies executed by the company issuing the policy certifying that the policy is in force and providing the following information with respect to said policy:

1. The policy number;
2. The date upon which the policy will become effective and the date upon which it will expire;
3. The names of the named insured and any additional insureds;

d.The subject of the insurance;

e.The type of coverage provided by the insurance;

1. The amount or limit of coverage provided by the insurance;
2. A description of all endorsements that form a part of the policy; and
3. An endorsement stating that City and its officers, agents and employees are named as additional insureds under the liability policy. Lessee's authorized activities on the premises shall be suspended during any period that Lessee fails to maintain said policies in full force and effect.

1. Lessee agrees to comply with all applicable regulations of City and to maintain the Premises in a clean and sanitary condition. Lessee shall be responsible for insuring that the Premises will be protected against damage or destruction by fire or other causes. Lessee shall repair any and all damage to the Premises arising out of Lessee’s activities thereon. Lessee shall provide and pay for all utilities required to conduct the activities permitted by this Agreement. Lessee shall remove all equipment and other personal property from the Premises upon the termination of this Agreement and shall leave the Premises in the manner in which it was found, ordinary wear and tear excepted, and damage or destruction not caused by the use of the property by Lessee excepted.
2. Lessee agrees to pay before delinquency all lawful taxes, assessments, fees or charges which at any time may be levied by the State, County, or any tax or assessment-levying body upon the right of use acquired by this Agreement, as well as all taxes, assessments, fees and charges on the equipment used and merchandise sold in connection with the authorized activities on the premises.
3. This Agreement contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any subsequent modification to this Agreement shall be in writing and executed by both of the parties hereto.
4. Any waiver by City of any breach of any one or more of the terms of this Agreement shall not be construed as a waiver of any subsequent or other breach of the same or of any other term thereof, nor shall failure on the part of City to require exact, full, and complete compliance with any of the terms of this Agreement be construed as in any manner as changing the terms thereof or estopping City from the enforcement thereof.
5. If any of the provisions in this Agreement are unenforceable, the balance shall be enforced.
6. In the event of any controversy or dispute regarding this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable attorney's fees and court costs.
7. This Agreement shall be interpreted under the laws of the State of California.
8. Either party may terminate this Agreement by giving the other party written notice at least thirty (30) days prior to the date when the termination is to become effective.
9. Address for payments of rent and notices shall be sent to:

City:City of Rancho Palos Verdes

30940 Hawthorne Boulevard

Rancho Palos Verdes, California 90275

Attention: City Manager

Lessee:Ms. Yvonne F. Yamashita

5521 Palos Verdes Drive South

Rancho Palos Verdes, California 90274

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written.

Dated: ________________LESSEE

By: __________________________

Yvonne F. Yamashita

Date: _________________CITY OF RANCHO PALOS VERDES:

By: ___________________________

Mayor

ATTEST:

By: _____________________

City Clerk