HomeMy WebLinkAbout05 RENTAL AGREEMENT WITH KYA SERVICES, LLCDocusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
MEETING DATE
TO:
FROM:
SUBJECT:
SUMMARY:
Agenda Item 5
Initial
AGENDA REPORT Reviewed: a`L�
City Manager _
Finance Director
DECEMBER 2, 2025
ALDO E. SCHINDLER, CITY MANAGER
BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY
RENTAL AGREEMENT WITH KYA SERVICES, LLC
Request for approval of a new Rental Agreement with KYA Services, LLC for the 84,000-
square-foot, City -owned warehouse building located at 15171 Del Arno Avenue for the term
of August 2026 through July 2031.
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute the new
Rental Agreement between the City and KYA Services, LLC subject to any non -substantive
modifications as may be deemed necessary and/or recommended by the City Attorney.
FISCAL IMPACT:
Pursuant to the new Rental Agreement, KYA Services, LLC will pay the following annual
rent amounts to the City to be deposited into the General Fund:
- August 2026-July 2027: $1,395,924
- August 2027-July 2028: $1,521,552
- August 2028-July 2029: $1,597,632
- August 2029-July 2030: $1,677,516
- August 2030-July 2031: $1,761,396
City costs will be limited to capital improvements such as parking lot maintenance or roof
repairs (if needed) during the term of the Rental Agreement.
CORRELATION TO THE STRATEGIC PLAN:
The new Rental Agreement with KYA Services, LLC contributes to the fulfillment of the
City's Strategic Plan Goal C: Financial Strength. Specifically, this item implements Strategy
4, which is to explore opportunities for new or increased revenues and diversify revenue
sources beyond sales and property taxes.
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
City Council Agenda Report
Rental Agreement with KYA Services, LLC
December 2, 2025
Page 2
BACKGROUND AND DISCUSSION:
The City owns an 84,000-square-foot (SF) warehouse at the corner of Newport Avenue and
Del Amo Avenue that sits on a portion of a larger 6.5-acre City -owned parcel within the Pacific
Center East Specific Plan area. The City has leased the building to a variety of tenants since
2011. The current tenants are National Office Liquidators, which has been a tenant since
2011, and KYA Services, LLC, which has been a tenant since 2015. On May 2, 2023, the
City Council authorized the City Manager to execute three-year extensions with National
Office Liquidators and KYA Services, LLC that would terminate on July 31, 2026.
National Office Liquidators currently leases 28,000 SF, while KYA Services, LLC leases
56,000 SF. Together, both tenants are projected to generate approximately $1.3 million in
total revenue to the General Fund in Fiscal Year 2025-2026.
In early 2025, the Real Property Division initiated discussions regarding lease extensions for
National Office Liquidators and KYA Services, LLC beyond the July 31, 2026 termination
date and to adjust rental rates based on Fair Market Value. During discussions with National
Office Liquidators, the company informed the City that it did not desire to extend beyond the
current term and will vacate their portion of the building on July 31, 2026. During discussions
with KYA Services, LLC, the company indicated its desire to extend for an additional five (5)
years and to assume the 28,000 SF that will be vacated by National Office Liquidators.
Based on KYA Services, LLC request to lease all 84,000 SF of the building, the City and KYA
Services, LLC agreed that a new Rental Agreement would be the most effective way to
capture the full building and incorporate updated terms. The primary terms of the new Rental
Agreement are as follows:
- Term: Five (5) years: August 1, 2026 through July 31, 2031
- Termination Notice: Six (6) months' notice (either party)
- Monthly Rent:
o August 2026-July 2027: $116,327 per month ($1.38 PSF)
o August 2027-July 2028: $126,796 per month ($1.51 PSF)
o August 2028-July 2029: $133,136 per month ($1.58 PSF)
o August 2029-July 2030: $139,793 per month ($1.66 PSF)
o August 2030-July 2031: $146,783 per month ($1.75 PSF)
If approved, the new Rental Agreement will go into effect on August 1, 2026.
Signed by: Signed by:
&VU
Atm&MLf
426 I �F�7IM&F16f J 6W 6Y&
Deputy City Manager — Real Property Management Analyst I I
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
City Council Agenda Report
Rental Agreement with KYA Services, LLC
December 2, 2025
Page 3
Attachments:
1. Rental Agreement with KYA Services, LLC
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
RENTAL AGREEMENT
(15171 Del Amo)
1. PARTIES: The parties to this Rental Agreement are the City of Tustin, a municipal
corporation ("City"), and KYA Services, LLC, a California limited liability corporation
("Tenant").
2. RECITALS: This Rental Agreement is made with reference to the following facts:
(a) The City owns the property commonly known as 15171 Del Amo Avenue, Tustin, CA
92780 ("Premises").
(b) Tenant desires to rent the Premises and may use and occupy the Premises for the purpose
of storage eg of equipment, material and warehousing use only. The Premises are restricted to Tenant
employees and retail sales are not permitted. Any other use of the Premises will constitute a breach
of this contract and may result in an eviction.
(d) By this Rental Agreement, the parties intend to establish a landlord/tenant relationship
between them and to specify the rights and duties of the respective parties with reference to the
Premises.
3. PREMISES: City does hereby rent to Tenant and Tenant hereby rents from City that
certain real property situated in the City of Tustin, County of Orange, State of California,
commonly known as 15171 Del Amo Avenue and as shown on Exhibit A. The land and buildings
are collectively referred to as the "Premises"
4. TERM: The term of this Rental Agreement shall commence on August 1, 2026,
("Commencement Date") and shall be in full force and effect through July 31, 2031, unless
otherwise terminated as provided herein ("Termination Date"). The City or Tenant may
terminate this Rental Agreement, for any reason, by providing six (6) months prior written notice
of termination to the other party. Tenant will not receive approval to occupy the Premises until
they have provided to City satisfactory evidence of all required insurance pursuant to Section 19.
Insurance. Tenant agrees to vacate the Premises on or before the Termination Date.
5. RENT:
5.1 During the Term of this Agreement, the Tenant shall pay to the City the Following
monthly sums for the Premises, payable in advance:
August 1, 2026-July 31, 2027:
$116,327/mo.
August 1, 2027-July 31, 2028:
$126,796/mo.
August 1, 2028-July 31, 2029:
$133,136/mo.
August 1, 2029-July 31, 2030:
$139,793/mo.
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
August 1, 2030-July 31, 2031: $146,783/mo.
5.2 Place of Payment. All payments due and owing shall be made by Tenant to the
City, or to another party at such other place as the City may designate in writing from time to time.
Make checks payable to: The City of Tustin, Finance Department, 300 Centennial Way, Tustin,
CA 92780.
5.3 Late Charge. If payment of or any part thereof to be made by Tenant to City become
overdue for a period in excess of ten (10) calendar days, a late charge equal to ten (10) percent of
such overdue amount shall be paid by Tenant for purposes of defraying the expense incidental to
handling such delinquent payment. Pursuant to California Civil Code section 1719, if Tenant
passes a check on insufficient funds, Tenant will be liable to the City for the amount of the check
plus a service charge of $25.00 for the first check passed on insufficient funds, and $35.00 for each
subsequent check passed on insufficient funds, or such other amounts as may be authorized by
California law. City may require future payments to be in a form other than a personal check in
the event of a returned check, at City's sole discretion.
5.4 No City Responsibilities. The Tenant hereby acknowledges and agrees that the City
is not responsible for any costs, charges, expenses, outlays or any nature whatsoever arising from
or relating to the Premises, or the use or occupancy thereof, of the contents thereof or the business
carried on therein, and that Tenant shall pay all charges, impositions, costs and expenses of every
nature and kind related to the Premises, including costs of maintenance and repair of the Premises,
all costs of insuring the Premises, and all taxes and assessments attributable to the Premises and
which might be associated with the possessory interest of said Rental Agreement and personal
property of the Tenant.
5.5 Security Deposit. Tenant previously provided a security deposit to City of $64,680
prior to occupying said premises which shall be refundable upon termination of the Rental
Agreement provided that the Premises is returned to the City upon termination in the condition in
which it was first received. No part of this deposit is to be considered an advance payment of rent,
including last month's rent, nor is it to be used or refunded prior to the leased premises being
permanently and totally vacated by the Tenant.
6. PROTECTION, MAINTENANCE, AND REPAIRS: Unless otherwise agreed to in
writing by the parties, the City will not make any modifications, alterations, improvements or
repairs to the Premises of any nature whatsoever and the Premises is rented to Tenant in an "As -Is
Where Is, With ALL Faults basis", in its present state and condition with all faults. Tenant
acknowledges that the City has made no representations or warranties of any kind whatsoever,
either express or implied in connection with any matters with respect to the Premises, or any
portion thereof. Tenant shall be allowed no credit by the City for costs of any repair work
performed or ordered by Tenant to the Premises. Tenant shall, at Tenant's own expense, maintain
and repair the Premises in good order and condition as the same were on Commencement Date.
The degree of such maintenance and repair to be furnished by Tenant shall be that which is
sufficient to maintain protection from fire hazards, elimination of safety and health hazards which
may arise during the term of this Rental Agreement. The City, upon due notice, may inspect the
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
Premises to insure performance of the maintenance required. Further, Tenant shall be responsible
for the repair and maintenance of all interior utility systems and those exterior utility systems,
distribution lines, connections and equipment which support the Premises.
6.1. Security and Fire Protection. Tenant shall provide for all security and safety within
the Premises, unless otherwise agreed to in writing by the parties.
6.2. No additions to, alterations or improvements ("Tenant Improvement(s)") of the
Premises shall be made by the Tenant without the prior written consent of the City in each
and every instance. If, and only if, City consents in writing to the Tenant Improvement(s),
Tenant shall be required to secure all required approvals from all governmental agencies,
including but not limited to the City of Tustin Community Development Department, and
Public Works Department, prior to commencing such Improvement(s). In the event that
Tenant desires to make Tenant Improvement(s), Tenant shall first submit to City a written
description of the proposed work, and if City requires, plans and specifications relating
thereto, and shall obtain City's written approval prior to commencing such work. Any
digging or subsurface activities of any kind on the Premises shall also require prior written
approval from the City, and if applicable, a grading permit from the City's Building
Division.
7. BAILEE DISCLAIMER: Tenant acknowledges and agrees that City has granted its
permission for use of the Premises only for the purposes and in accordance with the provisions of
this Agreement. By entering into this Agreement, City is not agreeing in any manner to accept
obligations or responsibility for the safekeeping of the vehicles or other property of Tenant or of
Tenant's agents, contractors, officers, employees or invitees. This Agreement is not a contract for
bailment or deposit of goods for safekeeping and City in no manner whatsoever purports to be a
bailee.
8. WAIVERS:
8.1 Waiver of Claims. Neither the City nor any of its officers, agents, representatives
and employees will be liable and Tenant waives all claims for damage to persons or property
sustained by Tenant or any occupant of the Premises resulting from the Premises or any part of it,
becoming out of repair, resulting from any accident in or about the Premises or resulting directly
or indirectly from any act or neglect of Tenant, occupant or of any other person including Tenant's
agents and employees. All property belonging to Tenant or any occupant of the Premises will be
there at the risk of Tenant or such other person only and City will not be liable for damages, theft
or misappropriation.
8.2 Relocation and Compensation waivers. Tenant by signing this Rental Agreement
is waiving any and all rights of any kind or amount for relocation benefits including but not limited
to any such or similar rights prescribed by any state, federal or local law and/or regulation and
waiving any and all rights to just compensation under U.S. and California constitutions, and
agreeing and acknowledging that they waive any rights to payments for Loss of Goodwill.
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
8.3 No Waivers. The failure or omission of City to terminate this tenancy for any
violation of any of its terms, conditions or covenants, shall not be deemed to be a consent by City
to such violation and shall not bar, stop or prevent City from terminating this Agreement thereafter,
either for such or for any subsequent violation of any such term condition or covenant. The
acceptance of rent under this Agreement shall not be or be construed to be a waiver of any breach
of any term covenant or condition of this Agreement. Nothing contained in this Agreement shall
be construed as limiting City from performing all acts required by City in connection with the
relocation of occupants of the Premises, or taking such steps as it may deem necessary to remove
occupants of the Premises at any time.
9. CLEANLINESS AND WASTE: Tenant will keep the Premises and the walks/alley
adjacent to it at all times in a neat, clean and sanitary condition, free from waste or debris and will
neither commit nor permit any waste or nuisance on the Premises nor store, treat, or dispose of any
toxic or materials hazardous to health or safety, including any materials that are explosive,
flammable or pyrotechnic in nature. Trash disposal shall comply with CR&R Incorporated and
City of Tustin standards. At termination, the Premises shall be left without containers, tenant's
equipment, and other undesirable materials, and in an acceptably clean condition.
10. VACATION OF PREMISES: Tenant will give the City immediate notice of his/her
intention to move or vacate the Premises, and on that vacation agrees to leave same in good
condition, clear of all debris, hazardous materials and personal property.
11. DAMAGE TO PREMISES: Any damage to the Premises in excess of above ordinary and
normal usage may be charged to the Tenant.
12. NUISANCE AND WASTE: Tenant shall not commit, suffer or permit any nuisance or
waste in or about the Premises, and shall not permit the use of the Premises for any illegal or
immoral purpose. Tenant further agrees to comply with all State and Federal laws and local
ordinances concerning the Premises and the use of the Premises.
13. INSPECTION BY CITY: City by and through its employees or agents, shall have the
right to enter upon the Premises at all reasonable times during the term of this tenancy for the
purpose of inspecting the same, making such repairs as City may deem desirable, and conducting
any investigation, study or remediation activity the City may deem desirable upon providing
Tenant with reasonable advance notice, whenever practicable.
14. PERSONAL PROPERTY LEFT ON PREMISES: City shall have the right, WITHOUT
NOTICE, to sell, destroy or otherwise dispose of any personal property left on the Premises by
Tenant after he/she has vacated or abandoned the Premises, or when this tenancy has been
terminated, or when Tenant may be evicted from the Premises.
15. DEFAULT AND TERMINATION UPON DEFAULT:
15.1 Events of Default. The following events shall constitute events of default under
this rental agreement:
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
(a) A default by Tenant in payment when due of any rent or other sum payable under this
Agreement and the continuation of this default for five (5) or more days after notice of the
default by the City.
(b) A default by Tenant in the performance of any of the terms, covenants, or conditions
of the Agreement, other than a default by Tenant in the rent payment, and the continuation
of the default beyond fifteen (15) days after notice by City, or if the default is curable and
would require more than fifteen days, then such reasonable time to cure as authorized by
the City.
(c) The bankruptcy or insolvency of Tenant.
(d) The appointment of a receiver for a substantial part of Tenant's assets.
(e) Tenant's abandonment of the Premises.
(f) The levy upon this Rental Agreement by attachment or execution and the failure to have
the attachment or execution vacated within thirty (30) days.
15.2 Termination Upon Default. On the occurrence of any event of default by Tenant,
City may, in addition to any other rights and remedies given here or by law, terminate this Rental
Agreement and exercise remedies relating to it without further notice or demand in accordance
with the following provisions:
(a) So long as the event of default remains uncured, City shall have the right to give
notice of termination to Tenant, and on the date specified in the termination notice, this
Rental Agreement shall terminate.
(b) If this Rental Agreement is terminated, City may, by judicial process, reenter the
Premises, remove all persons and property, and repossess and enjoy the Premises, all
without prejudice to other remedies that City may have because of Tenant's default or the
termination.
(c) If this Rental Agreement is terminated, City shall have all of the rights and remedies
of a landlord provided by Civil Code section 1951.2, in addition to any other rights and
remedies City may have.
If any rent shall be due or unpaid, or if default shall be made in any of the provisions otherwise
contained in this Rental Agreement on the part of Tenant to be observed and performed, City may
exercise any and all remedies provided by law or equity by reason of such default, including
without limitation the right at City's option of terminating this tenancy. Each and all of the
remedies of City shall be construed as cumulative and no one of them as exclusive of the other or
as exclusive of any remedy provided by law or equity.
16. UTILITIES AND TAXES: Tenant is responsible for the activation and payment of all
utilities used at the Premises. Tenant shall open accounts in their own name for these utilities and
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
pay all bills when due during the term of this Rental Agreement.
17. DAMAGE BY FIRE: In the event the Premises are destroyed or so damaged by fire or
other casualty or act of God, then this Rental Agreement shall terminate, and any advance or
unearned rent that may have at such time been paid will be refunded to the Tenant on a pro rata
basis.
18. ASSIGNMENT AND SUBLETTING: Tenant shall not, without City's prior written
consent: (i) assign, convey, mortgage, pledge, encumber or otherwise transfer (whether voluntarily
or otherwise) this Agreement, nor any right or interest under it; or (ii) allow any transfer of or any
lien upon Tenant's interest by operation of law; or (iii) sublet the Premises or any part thereof; or
(iv) permit the use or occupancy of the Premises or any part thereof by anyone other than Tenant,
its officers, employees, agents, servants, guests, invitees, volunteers, contractors of Tenant, and
any City -approved subleases. In the event of a breach of this condition, City shall have the power
to immediately declare this Rental Agreement terminated and will then be entitled to immediate
possession of the Premises.
19. INSURANCE:
19.1 Insurance. Tenant shall provide and maintain in full force and effect at its own
expense during the Term of this Rental Agreement the following insurance covering its operations
under this Rental Agreement. Such insurance shall be provided with insurers licensed to do
business in the State of California, with a rating of at least A VII, according to the latest Best's Key
Rating Guide or A-X (if offered by a surplus line carrier that is non -admitted). Evidence of such
insurance shall be delivered to City prior to the Commencement Date, including provision of
certificates of insurance and required insurer endorsements. Insurance endorsements (or a copy of
the policy, if applicable) shall be provided as evidence of meeting the requirements of this Section.
If self -insured for workers compensation, Tenant shall submit to the Lessee a copy of its
certification of self-insurance issued by the Department of Industrial Relations. The Insurers shall
specifically identify this Rental Agreement and shall contain express conditions. Such insurance,
shall include an endorsement that coverages are to be primary to and not contributing with any
other insurance maintained by City, and an endorsement shall name the City, and their respective
officers, officials, employees, agents and contractors as additional named insured (except for
workers' compensation insurance) and by an endorsement provide that all losses shall be payable
notwithstanding any act or failure to act or negligence of City, or any other person. All insurance
shall be maintained on an occurrence basis. Insurer or Insurer's agent and Tenant shall give the
City thirty (30) days advance written notice of any written material modification or termination of
any insurance required under the provisions of this Rental Agreement. Failure of Tenant to provide
such notice shall be deemed a material breach of this Rental Agreement.
19.1.1 Comprehensive General Liability Insurance. Comprehensive general
liability and property damage insurance covering the rented Premises, contractual, broad
form property damage, and bodily injury or death, with a combined single limit of not less
than $1,000,000 per occurrence with respect to personal injury or death, and $1,000,000
per occurrence with respect to property damage.
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
The general liability policy is to contain, or be endorsed to contain, the following
provisions:
(1) The City and their respective officers, officials, employees, agents
and contractors are to be covered as additional named insureds as respects: liability arising
out of use of the Premises. The coverage shall contain no special limitations on the scope
of protection afforded to the City, its officers, officials, employees, agents or contractors.
(2) The Tenant's insurance coverage shall be primary insurance as
respects the City, and their respective officers, officials, employees and contractors. Any
insurance or self-insurance maintained by the City shall be in excess of the Tenant's
insurance and shall not contribute with it.
(3) Any failure to comply with reporting or other provisions of the
policies including breaches of warranties shall not affect coverage provided to the City, its
officers, officials, employees, agents, or contractors.
(4) Coverage shall state that the Tenant's insurance shall apply
separately to each additional insured against whom claim is made or suit is brought, except
with respect to the limits of the insurer's liability.
(5) Each insurance policy shall include an endorsement that the Insurer
waives any right of subrogation against the City which may arise by reason of any activities
of Tenant, City or payments under a policy.
19.1.2 Workers Compensation Insurance. Workers compensation
insurance shall be in an amount and form meeting all applicable requirements of the
California Labor Code, covering all persons providing services by or on behalf of Lessee
and all risks to such persons. The worker's compensation is to contain, or be endorsed to
contain, a waiver of subrogation against the City.
19.2 Tenant acknowledges that City has agreed not to require that Tenant provide and
maintain property insurance for the Premises. In consideration therefor, Tenant, on behalf of itself,
its members, principals, officers, elected officials beneficiaries, trustees, shareholders, partners,
heirs, personal representatives, invitees, contractors, subcontractors, successors and assigns
(collectively, the "Releasing Parties"), as the case may be, hereby waives the right to recover from
and fully and irrevocably releases City, the City of Tustin and the Successor Agency to the Tustin
Community Redevelopment Agency and their officers, elected officials, employees, consultants,
agents, representatives and contractors (collectively, the "Released Parties"), from and against any
and all liabilities, claims, demands, damages, losses, claimed or anticipated profits, expenses,
disbursements, professionals' or consultants' fees and expenses, obligations, fines, penalties,
actions, causes of action, suits and costs, known or unknown, matured or unmatured, including,
without limitation, attorneys' fees and costs and expenses of litigation, of every kind and nature
(collectively, "Claims") that each of the Releasing Parties may now have or hereafter acquire
arising from or related to the damage or destruction of any improvements located on the Premises,
excepting from the foregoing release only those Claims which arise from the willful misconduct
or gross negligence of a Released Party. This release includes Claims of which the Releasing
Parties are presently unaware or which the Releasing Parties do not presently suspect to exist
which, if known by the Releasing Parties, would materially affect the Releasing Parties' decision
to release the Released Parties. The Releasing Parties specifically waive the protection of
California Civil Code Section 1542, which provides as follows:
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED THIS SETTLEMENT WITH THE DEBTOR."
In this connection and to the extent permitted by law, the Releasing Parties realize and
acknowledge that factual matters now unknown to it may have given or may hereafter give rise to
Claims or controversies which are presently unknown, unanticipated and unsuspected, and the
Releasing Parties further agree that the waivers and releases herein have been negotiated and
agreed upon in light of that realization and that the Releasing Parties nevertheless hereby intend to
release, discharge and acquit the Released Parties from any such unknown Claims.
TENANT HAS AGREED TO ENTER INTO THIS RENTAL AGREEMENT AND HAS
GIVEN THE RELEASED PARTIES MATERIAL CONCESSIONS REGARDING THIS
TRANSACTION IN EXCHANGE FOR THE RELEASED PARTIES AGREEING TO THE
PROVISIONS OF THIS SECTION 19.2 BY INITIALING BELOW, TENANT
ACKNOWLEDGES THAT (A) IT HAS READ AND FULLY UNDERSTANDS THE
PROVISIONS OF THIS SECTION 19.2, (B) IT HAS HAD THE CHANCE TO ASK
QUESTIONS OF ITS COUNSEL ABOUT ITS MEANING AND SIGNIFICANCE, AND (C) IT
HAS ACCEPTED AND AGREED TO THE TERMS SET FOR IN T I CTION 19.2.
CITY TENANT
Notwithstanding anything to the contrary hereinabove contained, and irrespective of any
insurance carried by Tenant, Tenant shall defend, with counsel acceptable to City, indemnify,
protect, and save harmless City and their respective officers, officials, employees, agents and
contractors from, and shall pay all costs, expenses and reasonable attorney fees for all trial and
appellate levels and post judgment proceedings in connection with and from any and all demands,
claims, actions, proceedings, suits, losses, liens, costs, judgments, damages or liabilities of any
kind and nature whatsoever, including expenses incurred in defending against legal actions, for
death or injury to persons or damage to property and for civil fines and penalties arising , or for
any violation or alleged violation of local, state or federal law or regulation at the Premises, or for
any breach of this Rental Agreement growing out of, or in connection, or in any manner predicated
upon the use of, occupancy of and/or operations carried on upon the Premises by Tenant, its
officers, officials, employees, agents, servants, guests, invitees, or contractors.
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
21. NOTICES: Any notice shall be personally delivered or placed in a sealed envelope
postage paid, addressed to the person on whom it is to be served with return receipt requested and
deposited in the United States Mail. Personal service shall be deemed complete upon delivery and
service by mail shall be deemed complete upon receipt as reflected by the return receipt. The
address to be used for any notice served by mail shall be as follows:
Tenant
Kya Services, LLC
C/O Brooks Berry, CFO and Director
1522 Brookhollow Drive, Ste. 3
Santa Ana, CA 92705
Qiy
City Manager
City of Tustin
300 Centennial Way
Tustin, CA 92780
Attention: Aldo E. Schindler, City Manager
22. REFUND OF RENT: In the event Tenant vacates the Premises and terminates this tenancy
before expiration of the rental term for which rent has been paid, City shall refund the pro rata
portion of such rent which is unearned at the time of vacancy.
23. ANTI -DISCRIMINATION: Tenants agrees that this rental Agreement is made and
accepted on and subject to the following conditions: That there will be no discrimination against
or segregation of any person or group of persons, on account of race, color, sex, age, handicap,
marital status, religion, national origin or ancestry in the use, occupancy, tenure or enjoyment of
the Premises, nor will Tenant or any person claiming under or through it establish or permit any
practice or practices of discrimination or segregation with reference to the Premises.
24. ATTORNEY FEES: If as a result of a breach or default under this Rental Agreement,
City uses an attorney to secure compliance with Agreement provisions to recover damages, to
terminate this Agreement, or to evict Tenant, Tenant shall reimburse City, on demand, for all
reasonable attorney fees and expenses incurred by City.
25. KEYS: Tenant agrees on vacating the Premises that Tenant will deliver all keys to the
Premises in the Tenant's possession to the City at the address stated in Section 5.1, and on failure
to deliver the keys, Tenant agrees that rent for the Premises will continue to be paid to the City
until such time as the keys are delivered.
26. OCCUPATIONAL SAFETY: The Tenant shall comply with all requirements of the
Occupational Safety and Health Administration.
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
27. NOISE: All requirements of the City's Noise Ordinance (Chapter 6 of the Tustin City
Code) shall be met at all times. Tenant shall provide City with the cell phone number of one or
more individuals, at least one of whom will have authority to take corrective measures to ensure
compliance with the noise ordinance in the event that City receives complaints regarding noise
from others.
28. BUSINESS LICENSE: Tenant is required to obtain and maintain a current business
license from the City of Tustin.
29. TIME OF ESSENCE. Time is of the essence in this Rental Agreement and all of its
provisions.
30. ENTIRE AGREEMENT: It is understood that there are no oral agreements between the
parties affecting this Rental Agreement and this Rental Agreement supersedes and cancels any and
all previous negotiations and understanding, if any, between the parties and none will be used to
interpret or construe this Agreement.
[Signatures on Following Page]
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
IN WITNESS WHEREOF, City has authorized this Rental Agreement between the City
of Tustin and KYA Services LLC to be executed for and on behalf of the City of Tustin, and
Tenant has caused the same to be executed by its duly authorized officer on the date identified
below.
ATTEST
Erica N. Yasuda
City Clerk
APPROVED AS TO FORM
Fned by:
Z
David8rM6 ifffg
City Attorney
/ nsd/
CITY OF TUSTIN
"CITY"
Aldo E. Schindler, City Manager
Date
KYA Services, LLC
"TENANT"
By: q-�J`
Brooks Berry, CFO a Direc or
4D.ocuesignEnvelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
. ji
kv
it
31
.! F �FI.R�F'.y •.vy S s
• � 4
s
r '•
e�
a •t ' f
� L r