PROPERTY MANAGEMENT AGREEMENT
Mission Square)
This PROPERTY MANAGEMENT AGREEMENT ( this Agreement is datedasof this day of _______________, 20____ ( the Effective Date between The City of Riverside, a California chartercity andmunicipal corporation ( Owner andG& E Real Estate Management Services, Inc., a Delaware corporation dba Newmark ( Property Manager Owner owns certain real property and improvements in Riverside, California, commonly known as the Mission Square Building and adjacent parking garage located at 3750 University Avenue, Riverside, California 92501, asmore particularly describedin Exhibit A attachedhereto and incorporated herein ( the Property Owner desires to engage Property Manager to manage, lease, operate, and maintain the Property.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agreeasfollows:
1. COMMENCEMENT AND TERMINATION DATES.
1.1. Commencement and Termination. Property Manager s duties and responsibilities under this Agreement shall begin on the Effective Date and shall continue for an initial term of five ( 5) years, unlessearlier terminated asprovided in Section 10. The term of this Agreement may be extended, upon mutual written consent of the parties, for an additional period( s) not to exceedfive ( 5) years.
2. PROPERTY MANAGER S RESPONSIBILITIES.
2.1. Statusof Property Manager. Owner and Property Manager do not intend to form a joint venture, partnership or similar relationship. Instead, the parties intend that Property Manager shall act solely in the capacity of an independent contractor for Owner. Nothing in this Agreement shall cause Property Manager and Owner to be joint venturers or partners, and neither shall have the power to bind or obligate the other party by virtue of this Agreement, except as expressly provided in this Agreement. Nothing in this Agreement shall deprive or otherwise affect the right of either party to own, invest in, manage, or operate, or to conduct businessactivities which compete with, the Property.
2.2. Management. Property Manager shall manage, operate and maintain the Property in an efficient, economic, and satisfactory manner and shall manage the performance of everything reasonably necessaryfor the proper operation of the Property for the tenantsthereof, subject to ( a) applicable governmental requirements and ( b) the terms and provisions of this Agreement, and in accordance with the Budget ( as defined below). At the expenseof Owner, Property Manager shall keep the Property clean and in good repair, shall order and supervise the completion of such repairs as may be required and shall generally do and perform, or causeto be done or performed, all things necessary, required or desirable for the proper and efficient management, operation, andmaintenanceof theProperty, provided Owner, in amannerreasonably satisfactory to Property Manager, makes available to Property Manager sufficient sums to pay the costs thereof. Property Manager shall perform all services in a diligent and professional manner and in accordance with the Budget.
2026 ----------
UPDATED VERSION TO REFLECT EXECUTION DATE OF 17TH DAY OF FEBRUARY 2026 2 2.3. Employees/Independent Contractors of Property Manager. Property Manager shall employ, directly or through third party contractors (for example, an employee leasing company or on-site property manager), at all times, a sufficient number of capable employees and/ or independent contractors to enable Property Manager to properly, adequately, safely and economically manage, operateand maintain the Property. All matters pertaining to the supervision of such employees shall be the responsibility of Property Manager. All salaries and benefits and positions of employeeswho perform work in connection with the Property shall be in accordance with the Budget ( as defined in Section 2.5).
2.4. Compliance with Laws, Mortgages and Other Matters
2.4.1. Property Manager shall use reasonable efforts to comply, and cause the Property to be in compliance, with any deedof trust, mortgageor other loan documentsevidencing loans secured by the Property as have been provided to Property Manager ( the Loan Documents and all applicable governmental requirements relative to the performance of its duties hereunder, ordinances, rules, regulations, and requirements. Property Manager may implement suchprocedureswith respectto the Property asProperty Manager may deemadvisable for the more efficient and economic managementand operation thereof. Property Manager shall pay from the Operating Account ( defined in Section 6.2) expensesincurred to remedy violations of laws; provided, if such expenses cause the Property expenses to exceed the Budget, Property Manager shall obtain Owner s consentprior to paying suchexpenses. However, Property Manager shall not be obligated to remedy violations of law if sufficient funds are not available in the Operating Account or if Owner doesnot provide sufficient additional funds to do so.
2.4.2. Property Manager shall furnish to Owner, promptly after receipt, any notice of violation of any governmental requirement or order issued by any governmental entity, any notice of default from the holder of any mortgage or deed of trust encumbering the Property, or any notice of termination or cancellation of any insurancepolicy.
2.5. Budgets and Operating Plan.
2.5.1. Property Manager will prepare and submit to Owner herewith an initial capital and operating budget for the promotion, operation, repair, maintenance and improvement of the Property for the initial term of this Agreement. The Budget is and shall be presentedon a monthly, accrual basis. The Budget shall be subject to the approval of Owner, however, until Owner approvesany new Budget, the then-current Budget shall remain in effect. The capitalized term Budget used herein shall refer to the most recent budget prepared by Property Manager and approved by Owner. Property Manager shall provide Owner with such information regarding the Budget as may be, from time to time, reasonably requested by Owner. Property Manager may at any time submit a revised budget to Owner which shall become effective only after Owner s approval.
2.5.2. Property Manager shall charge all expenses to the proper account as specified in the Budget, provided that Property Manager may reallocate savings from one line item to other line items, for the benefit of Owner.
3 2.5.3. Together with the submission of the Budget, Property Manager shall submit to Owner an operating plan for the general operation of the Property, including a proposedlist of improvements to the Property, general insurance plan, and plan for the general operation and maintenance of the Property for the initial term of this Agreement. The Operating Plan shall be subject to Owner s approval, and the capitalized term Operating Plan used herein shall refer to the most recent Operating Plan preparedby Property Manager and approved by Owner. Property Manager may submit a revised Operating Plan to Owner at any time which shall becomeeffective only after Owner s approval.
2.5.4. Property Manager shall at all times operatethe Property in accordancewith the Budget.
2.6. Collection of Rents and Other Income. Property Manager shall bill all tenants and shall use its commercially reasonable efforts to collect all rent and other charges including any possessoryinterest taxesdueand payablefrom any tenantor from othersfor services provided in connection with the Property. Property Manager shall deposit all monies so collected in the Operating Account unlessdirected otherwise by Owner.
2.7. Repairs and Maintenance. Property Manager shall maintain the buildings, appurtenancesandgrounds of the Property, other than areaswhich arethe responsibility of tenants, including, without limitation, all repairs, cleaning, painting, decorations and alterations, for example electrical, plumbing, carpentry, masonry, elevators and such other routine repairs as are necessary or reasonably appropriate in the course of maintenance of the Property ( subject to the limitations of this Agreement). Property Manager shall pay actual and reasonableexpensesfor materials and labor for such purposes from the Operating Account and in accordancewith the Budget provided that any single expenditure in excessof $9,999 must be supported by obtaining a minimum of 3 written bids and approved by Owner. Property Manager shall take reasonable precautionsagainstfire, vandalism, burglary and trespassto the Property.
Property Manager shall also be responsible for the management, oversight, coordination and point of contact for all tenant improvement projects, as well as for any and all building maintenance or construction projects initiated by Owner in accordance with section 9.1 outlined below.
2.8. Prevailing Wage. Pursuant to Section 1771 of the California Labor Code, Property Manager and all vendors are required to pay the general prevailing rates of per diem wages, overtime and holiday wages as determined by the Director of the Department of Industrial Relations and implemented by Resolution No. 13346 of the City Council of the City of Riverside.
The Director s determination of prevailing wage rates is available on-line at www. dir.ca.gov/dlsr/DPreWageDetermination.htm, and is referred to and made a part hereof as though fully set forth herein. Per SenateBill 854 (2014), Property Manager and all vendors shall register with the Department of Industrial Relations in order to bid and perform public works projects. Property Manager and all vendors on all public works projects shall submit electronic certified payrolls to the Labor Commissioner and City unless excused from this requirement.
Property Manager is aware of and stipulates that Property Manager will also comply with the following sections of the California Labor Code:
4 a. Section 1775 prescribing sanctionsfor failure to pay prevailing wage rates; b. Section 1776 requiring the making, keeping and disclosing of detailed payroll records and prescribing sanctionsfor failure to do so; c. Section 1777. 5 prescribing the terms and conditions for employing registeredapprentices;
d. Section1810 providing that eight hours of labor shall be a day s work; e. Section 1813 prescribing sanctions for violations of the provisions concerning eight- hour work days and forty- hour work weeks; and f. Sections 1725.5 and 1771.1 requiring all general contractors and subcontractors to be registered with DIR. Registration can be accomplished through the DIR website by using this link: http://www. dir.ca.gov/Public- Works/PublicWorks. html.
2.9. Capital Expenditures. Property Manager shall not make any capital expenditures without first obtaining written consent from Owner.
2.10. Service Contracts, Supplies and Equipment.
2.10.1. Property Manager may enter into or renew any customary contract for cleaning, maintenance, repairing or servicing the Property or any of the constituent parts of the Property ( including contracts for fuel oil, security or other protection, extermination, landscaping, architects or engineering services) contemplatedby the Budget and/or the Operating Plan with any unrelated third party with the prior written consent of Owner; provided such contracts are terminable on thirty days notice andareon terms reasonablein the local market. Eachsuchservice contract shall be in the name of Property Manager, as agent for Owner, and be assignableto the transfereeof Owner.
2.10.2. If this Agreement terminates pursuant to Section 10, Property Manager, at the option of Owner, shall assign to the nominee of Owner all of Property Manager s interest in the service agreementspertaining to the Property.
2.10.3. At the expense of Owner and in accordance with the Budget, Property Manager shall purchase, provide, and pay for all needed janitorial and maintenance supplies, tools and equipment, restroom and toilet supplies, light bulbs, paints, and similar supplies necessaryto the efficient and economical operation and maintenance of the Property. Such supplies and equipment shall be the property of Owner. All such supplies, tools, and equipment generally shall be delivered to and stored in the Property and shall be used only in connection with the management, operation, and maintenanceof the Property.
2.10.4. Property Manager shall use reasonable efforts to purchase all goods, supplies or services at the lowest cost reasonably available from reputable sources in the metropolitan areawhere the Property is located. In making any contract or purchasehereunder, Property Manager shall use reasonableefforts to obtain favorable discounts for Owner and all 5 discounts, rebates or commissions under any contract or purchase order made hereunder shall inure to the benefit of Owner. Property Manager shall make paymentsunder any suchcontract or purchase order to enable Owner to take advantage of any such discount if Owner provides sufficient funds therefor.
2.11. Taxes and Mortgages. Property Manager, unlessotherwise requested, shall obtain and verify bills for real estateand personalproperty taxes, generaland special real property assessmentsincluding possessory interest taxes and other like charges (collectively Taxes which are, or may become, liens against the Property. Property Manager may appeal such Taxes with Owner s prior written consent. Property Manager shall report any such Taxes that materially exceed the amounts contemplated by the Budget to Owner prior to Property Manager s payment thereof. Property Manager, if requestedby Owner, will cooperate to prepare an application for correction of the assessedvaluation to be filed with the appropriategovernmental agency. Property Manager shall pay, within the time required to obtain discounts, from funds provided by Owner or from the Operating Account, all utilities, Taxes and payments due under each lease, mortgage, deed of trust or other security instrument, if any, affecting the Property. To the extent such payments are in accordancewith the Budget and/or the Operating Plan (as either may be revised from time to time), Property Manager may make any such payments without the approval of Owner.
2.12. Tenant Relations; Compliance. Property Manager will useits bestefforts to develop and maintain good relations with the tenants in the Property. At all times during the term hereof, Property Manager shall use its best efforts to retain existing tenants in the Property.
Property Manager shall use its reasonableefforts to secure compliance by the tenants with the terms and conditions of their respectiveLeases.
2.13. Miscellaneous Duties. Property Manager shall ( a) maintain at Property Manager s office addressasset forth in Section 12.1 and readily accessibleto Owner, or at one of Property Manager s centralized accounting locations, orderly files containing rent records, insurance policies, leases and subleases, correspondence, receipted bills and vouchers, bank statements, canceled checks, deposit slips, debit and credit memos, and all other documents and papers pertaining to the Property or the operation thereof; ( b) provide information about the Property necessary for the preparation and filing by Owner of income or other tax returns required by any governmental authority, including annual statements and other information reasonably requestedby Owner; (c) consider and record tenantservice requestsin systematicfashion showing the action taken with respectto each, and thoroughly investigate and report to Owner in a timely fashion with appropriate recommendations all complaints of a nature which might have a material adverseeffect on the Property or the Budget; (d) supervise the moving in and out of tenants and subtenants; arrange, to the extent possible, the dates thereof to minimize disturbance to the operation of the Property and inconvenience to other tenants or subtenants; and render an inspection report, an assessment for damages and a recommendation on the disposition of any deposit held as security for the performance by the tenant under its lease with respect to each premises vacated; ( e) check all bills received for the services, work and supplies ordered in connection with maintaining and operating the Property and, except asotherwise provided in this Agreement, pay such bills when due and payable and in accordance with the Budget; and ( f) not permit the use of the Property for any purpose that might void any policy of insurance held by 6 Owner or which might render any loss thereunderuncollectible. All such records are the property of Owner and will be delivered to Owner upon request.
2.14. Right to Subcontract Property Management Functions. Property Manager reserves the right, subject to Owner s approval, to subcontract some or all of the property management functions described herein to local property managers and certain other parties.
However, except asexpressly provided herein, the fees to be paid to Property Manager under this Agreement are inclusive of fees payable to such third parties.
3. INSURANCE.
3.1. Workers CompensationInsurance. By executing this Agreement, Property Manager certifies that Property Manager is aware of and will comply with Section 3700 of the Labor Code of the State of California requiring every employer to be insured against liability for workers compensation or to undertake self-insurance before commencing any of the work.
Property Manager shall carry the insurance or provide for self-insurance required by California law to protect said Property Manager from claims under the Workers Compensation Act.
Prior to City s execution of this Agreement, Property Manager shall file with City either 1) a certificate of insurance or self-insurance evidencing that such insurance is in effect, or that Property Manager is self-insured for such coverage; or ( 2) a certified statement that Property Manager has no employees, and acknowledging that if Property Manager does employ any person, the necessarycertificate of insurancewill immediately be filed with City.
Contractor s workers compensation carrier shall be authorized to transact insurance businessin the Stateof California with a policy holder s rating of A- or higher and a Financial Class VII or larger.
3.2. Commercial General Liability and Automobile Liability Insurance. Prior to City s execution of this Agreement, Property Manager shall secure, and shall thereafter maintain until termination of this Agreement, such commercial general and automobile liability insurance as shall protect Property Manager from claims for damages for personal injury, including accidental death, aswell asfrom claims for property damagewhich may arise from or which may concern operations under this Agreement.
All liability insuranceshall be issuedby an insurancecompany or companiesauthorized to transact liability insurance business in the State of California with a policy holder s rating of A or higher and a Financial Class of VII or larger and shall cover: (1) commercial general liability for both bodily injury ( including death) and property damage, including but not limited to aggregate products, aggregate operations, and contractual liability; and (2) automobile liability covering bodily injury ( including death) and property damage, with the following respective minimum limits:
Commercial General $ 1,000,000 per occurrence
2,000, 000 aggregate
Automobile $ 1,000, 000 per accident, combined single limit 7 Coverage: Coverageshall be asbroad asthe following.
Commercial General Liability. Insurance Services Office Commercial General Liability Coverage (occurrenceForm CG 0001). This coverageshall include:
a. Broad form property damage in any case where the Contractor has any property belonging to the City in the Contractor s care, custody, or control, b. Blanket contractual liability,
c. Products and completed operations coverage.
If Commercial General Liability Insuranceor other form with a generalaggregatelimit or products-completed operations limit is used, the general aggregatelimit and products-completed operations aggregate limit shall be twice the required occurrence limit.
Automobile Liability. Coverageshall be at least asbroad asthe following:
Coverage ( Form CA 0001), covering Symbol 1 ( any auto) or Symbols 8 and 9 ( hired and non-owner autos). This coverageshall include:
Coveragefor owned, non-owned, and hired automobiles
3.3 Additional Requirements. Original certificates of insurance along with additional insured endorsementreasonably acceptableto City, evidencing the coverage required by this Agreement for both commercial general and automobile liability, shall be filed with City and shall include City as an additional insured solely with regard to claims arising out of this Agreement. The policy or policies shall be in the usual form of public liability insurance, but shall also include the following provisions:
Solely for Servicesperformed by and on behalf of the Property Manager for the City of Riverside, it is agreedthat the City of Riverside and its officers and employees are added as additional insureds under the Commercial General Liability and Automobile Liability policies.
The Commercial General Liability insurance policy shall also comply with the following provisions:
a. Policies shall include premises/operations, products completed operations, broad form contractual, personal injury, and broad form property damage. b. The policy shall be endorsedto waive any right of subrogation against the City and its subcontractors, employees, officers, agents and directors for work performed under this Agreement.
c. If policies are written on a claims made basis, the certificate should so specify and the policy must continue in force for one year after completion of the project. The retroactive dateof the coveragemust also be listed. 8 d. The policy shall specify that the insurance provided by Property Manager will be considered primary and not contributory to any other insurance available to the City of Riverside. Contractor shall provide Form No. CG 20010413 to City.
e. Property Manager shall notify Owner within ten ( 10) days prior to the expiration, termination or cancellation of any insurance required herein. f. The insurance set forth in this Agreement must be maintained at all times during the term of this Agreement.
3.4 Errors and Omissions Insurance. Prior to Owner s execution of this Agreement, Property Manager shall obtain, and shall thereafter maintain during the term of this Agreement, errors and omissions/ professional liability insurance in the minimum amount of 1,000,000 per claim and aggregate.
3.5 Reporting. Property Manager shall investigate and submit, as soon as reasonablypossible, a written report to the insurancecarrier and Owner asto all accidents, claims for damage relating to the ownership, operation and maintenance of the Property, any damage to or destruction of the Property and the estimated costs of repair thereof, and prepareand file with the insurance company in a timely manner required reports in connection therewith. Property Manager shall, with Owner s prior written consent, settle all claims against insurance companies arising out of any policies, including the execution of proofs of loss, the adjustment of losses, signing and collection of receipts and collection of money.
3.6 Additional Insurance. Any insurance obtained by Property Manager for its own account, and not for the benefit of Owner, or the Property, shall be at Property Manager s own expenseand any insurancepaymentsshall be for Property Manager s sole benefit.
3.7 Contractor sandSubcontractor sInsurance. Property Managershall require all contractors and subcontractors entering upon the Property to perform services to have insurance coverage at the contractor s or subcontractor s expense, in the following minimum amounts: (a) workers compensation - statutory amount; ( b) employer s liability ( if required) - $ 1,000, 000; and c) comprehensive general liability insurance, including comprehensive auto liability insurance covering the useof all owned, non-owned and hired automobiles, with bodily injury and property damagelimits of $1,000,000 per occurrenceconsistent with the provisions of Section 3.2 above.
Property Manager shall obtain and keep on file a certificate of insurance which shows that each contractor and subcontractoris so insured.
3.8 Waiver of Subrogation. To the extent available at commercially reasonable rates, all insurance policies required hereunder by contractors and sub-contractors shall contain language whereby the insurance carrier thereunder waives any right of subrogation it may have with respectto Owner or Property Manager.
9 4. FINANCIAL REPORTING AND RECORD KEEPING.
4.1. Books of Accounts. Property Manager shall maintain adequateandseparate books and records for the Property with the entries supported by sufficient documentation to ascertain their accuracy with respect to the Property. Such books and records shall contain a separateaccounting of all items of income and all items of expensesfor the Property. Owner agrees to provide to Property Manager any information reasonably requestedby Property Manager to carry out its services hereunder. Property Manager shall maintain such books and records at Property Manager s office set forth in Section 12.1. Property Manager shall ensure such control over accounting and financial transactions as is necessaryto protect Owner s assetsfrom theft, error or fraudulent activity by Property Manager s employees. Property Manager shall bear losses arising from such instances, including, without limitation, the following: ( a) theft of assetsby Property Manager s employees, principals, or officers or thoseindividuals associatedor affiliated with Property Manager; (b) overpayment or duplicate payment of invoices arising from either fraud or gross negligence, unless credit is subsequently received by Owner; ( c) overpayment of labor costsarising from either fraud or grossnegligence, unlesscredit is subsequentlyreceived by Owner; (d) overpayment resulting from payment from suppliers to Property Manager s employees or associatesarising from the purchaseof goods or servicesfor the Property; and (e) unauthorized use of facilities by Property Manager or Property Manager s employees or associates.
4.2. Financial Reports. On or before the 15th day after the end of eachmonth, Property Manager shall furnish to Owner a report of all transactions occurring during such prior month, including statementsof income, balance sheetand other financial statementsand reports.
The statement of income and expenses, the balance sheet, and all other financial statementsand reports shall be prepared on an accrual basis and in compliance with all reporting requirements relating to the operating of the Property.
4.3. Supporting Documentation. Property Manager shall maintain and make available at Property Manager soffice, assetforth in Section 12.1, or at oneof Property Manager s centralized accounting locations, copies of the following: ( a) all bank statements, bank deposit slips, bank debit and credit memos, canceled checks, and bank reconciliations; ( b) detailed cash receiptsanddisbursementrecords; (c) detailed trial balancefor receivablesandpayablesand billed and unbilled revenue items; ( d) rent roll of tenants; ( e) paid invoices ( or copies thereof); ( f) summaries of adjusting journal entries as part of the annual accounting process; (g) supporting documentation for payroll, payroll taxes and employee benefits for Property Manager s employees; (h) appropriate details of accrued expenses and property records; ( i) information regarding the operation of the Property necessary for Owner s records; and ( j) market study of competition ( quarterly only). In addition, Property Manager shall deliver to Owner with the monthly financial statement copies of the documents described in ( a) ( statements and reconciliations only), ( b), (c), (d), and (h) above.
5. RIGHT TO AUDIT. Owner and its representatives may, upon reasonable notice to Property Manager, during normal business hours, and at Owner s sole cost and expense, examine all books, records and files maintained for Owner by Property Manager. Owner may perform any audit or investigations relating to Property Manager s activities at any office of Property Manager if such audit or investigation relates to Property Manager s activities for Owner.
Should Owner discover defects in internal control or errors in record keeping, Property Manager 10 shall undertake with all due diligence to correct such discrepancies upon discovery. Property Manager shall inform Owner in writing of the action taken to correct any audit discrepancies.
6. BANK ACCOUNTS.
6.1. Bank Account. Property Manager shall establish and maintain, in reputable banks or financial institutions designatedby Property Manager and approved by Owner, separate bank accounts in trust for, or in the name of, Owner ( the Bank Accounts Subject to any applicable Loan Documents, all moneys collected from, or in connection with, the Property shall be deposited in the Bank Accounts. Any bank accounts maintained by a third party property managershall be designatedasa real estatetrust account or shall be in trust for, or in the nameof, Owner.
6.2. Operating Account. Property Manager shall be permitted to deposit and make withdrawals from a master Bank Account ( such master account together with and any interest earned thereon, shall hereinafter be referred to as the Operating Account Property Manager shall maintain the Operating Account so that an amount at least as great as the budgeted expensesfor such month is in the Operating Account as of the first of each month. Property Manager shall pay from the Operating Account the operating expensesof the Property and any other paymentsrelating to the Property as required by this Agreement and in accordancewith the Budget. If more than one bank account is necessary to operate the Property, each account shall have a unique name.
6.3. Security Deposit Account. If requested by Owner or if required by applicable law, Property Manager will open a separate account at a reputable bank or other financial institution. Property Manager shall maintain such account in accordance with applicable law. Property Manager shall usethe accountonly to maintain security depositson behalf of Owner.
Property Manager shall inform the bank or financial institution to hold the funds in trust for Owner.
Property Manager shall maintain detailed records of all security deposits deposited, and allow Owner or its designee(s) accessto such records. Property Manager may return such deposits to any tenant in the ordinary course of businessin accordancewith the terms of the applicable lease and applicable law, and as determined and directed by Owner.
6.4. Access to Account. As authorized by signature cards, representatives of Property Manager shall have access to and may draw upon all funds in the accounts described in Sections 6.1, 6.2 and 6.3 without the approval of Owner, but in accordancewith the Budget and this Agreement.
7. PAYMENTS OF EXPENSES.
7.1. Costs Eligible for Payment from Operating Account. Property Manager shall pay, in accordancewith the Budget, all expensesof the operation, maintenanceand repair of the Property directly from the Operating Account or shall be reimbursed by Owner, subject to the conditions setforth in Section 2.5 and 2.8 including the following: ( a) costsof the grosssalary and wages or proportional shares thereof, payroll taxes, workers compensation insurance, and all other benefits of all on-site personnel required to manage, operateand maintain the Property properly, adequately, safely and economically, subject to this Agreement, with Owner s prior consent if the 11 on-site building engineer and property managersalary allocation exceeds $11,839 per month, for year 1 in accordancewith Exhibit B Fee Schedule , provided that Property Manager shall not pay suchemployeesin advance; (b) cost to correct the violation of any governmental requirement relating to the leasing, use, repair and maintenance of the Property, or relating to the rules, if such cost is not the result of Property Manager s grossnegligence or willful misconduct; (c) actual and reasonablecost of making all repairs, decorations and alterations if such cost is not the result of Property Manager sgrossnegligenceor willful misconduct; (d) costincurred by Property Manager in connection with all service agreements; ( e) cost of collection of delinquent rents collected by a collection agency or attorney; ( f) unlawful detainer fees of attorneys; ( g) cost of capital expenditures subject to the restrictions in Section 2.9 and in this Section; ( h) cost of printed checks for each account required for the Property and Owner; (i) cost of utilities; ( j) ; ( k) cost of printed forms and supplies required for use at the Property; ( l) management compensation set forth in Section 9; (m) the cost of tenantimprovements to the Property; (n) broker s commissions; (o) debt service; ( p) the cost of utilities, services, contractors and insurance; ( q) reimbursement of Property Manager s out-of-pocket costs and expensesto the extent not prohibited by Section 8 below; ( r) cost of forms, papers, ledgers, and other supplies and equipment used in connection with the Property for the preparation of reports, information and returns to be prepared by Property Manager under the terms of this Agreement; ( s) all expenses of Property Manager s on- site office; and (t) all other costsincurred on site anddirectly relatedto the Property, including, but not limited to, communication costs ( telephone, postage, etc.), computer rentals or time, supplies ( paper, envelopes, businessforms, checks, payroll forms andrecord cards, forms for governmentalreports, etc.), printing, insurance, fidelity bonds, taxes and license fees, and general office expenses allocable to the Property. All other amountsnot directly related to the Property or Owner shall be payable solely by Property Manager, and shall not be paid out of the Operating Account or reimbursed by Owner.
7.2. Operating Account Deficiency. If there are not sufficient funds in the Operating Account to make any such payment, Property Manager shall notify Owner, if possible, at least thirty ( 30) days prior to any delinquency so that Owner has an opportunity to deposit sufficient funds in the Operating Account to allow for such payment prior to the imposition of any penalty or late charge.
8. PROPERTY MANAGER S COSTS NOT TO BE REIMBURSED.
8.1. Non-reimbursable Costs. The following expensesor costsincurred by or on behalf of Property Manager in connection with the managementand leasing of the Property shall be at the sole cost and expense of Property Manager and shall not be reimbursed by Owner: ( a) cost attributable to lossesarising from grossnegligence, fraud or willful misconduct on the part of Property Manager, Property Manager s associates or employees; ( b) cost of insurance purchased by Property Manager for its own account; and (c) Property Manager s cost of overhead, salaries and other items except as expressly provided in Section 7.1.
8.2. Litigation. Property Manager will be responsible for and hold Owner harmless from, all fees, costs, expenses, and damages relating to disputes with employees for worker s compensation (to the extent not covered by insurance), discrimination or wrongful termination, including legal fees and other expenses.
12 9. COMPENSATION/ PROPERTY MANAGEMENT FEE. Owner shall pay the Property Management Fee described below monthly in arrears. Property Manager shall receive, for its servicesin managingtheProperty in accordancewith the termsof this Agreement, a monthly management fee ( the Property Management Fee of Three Thousand Two Hundred Dollars 3,200.00) per month or two percent (2%) of the Property s monthly grosscashreceipts from the operations of the Property, whichever is greater, which Property Management Fee shall be in addition to on-site personnel costs that are reimbursable pursuant to Section 7 which will be an additional Eleven Thousand Eight Hundred Thirty- None Dollars ($ 11,839. 00) per month for the salary allocation of said building engineer and property manager, for year 1 in accordancewith Exhibit B Fee Schedule, and any other fees provided in this Agreement. The Property Management Fee shall be payable monthly, following calculation thereof, upon submission of a monthly statementfrom the Operating Account or from other funds timely provided by Owner.
Upon termination of this Agreement, the parties will prorate the Property Management Fee on a daily basis to the effective date of such cancellation or termination. If Property Manager engages local property managersor other parties to provide property managementservices in accordance with Section 2.14, Property Manager shall be obligated to pay such third parties, it being intended that the Property Management Feeshall be inclusive of such third- party fees.
9.1. Project Management Fee. Property Manager, shall receive, for its project management services for construction- related management, a project management fee as following:
i) For projects having a total cost of less than $ 500, 000, five percent ( 5%) of the total cost of the project.
ii) For projects having a total cost of $ 500,000, but less than 750,000, five percent (5%) of the total cost of the project for the first $ 500, 000, then four percent ( 4%) in excess of the $500,000.
iii) For projects having a total cost that exceeds $ 750, 000, but less than $ 1,000, 000, ( ii) above applies then the excess of 750, 000 shall be subject to a three percent ( 3%) fee. iv) For projects having a total cost that exceeds $ 1,000, 000, Owner and Property Manager shall agree to a price in
advance and shall be subject to a not to exceed 3% fee.
The Project Management fee must be approved by Owner in writing prior to commencement of any construction work by a contractor. For purposes of this Agreement, " cost of construction" shall include: all labor and supervision costs; costs of materials and supplies; contract price for all construction work performed by general contractors and subcontractors; fees, taxes or other charges levied by governmental or quasi- governmental agencies in connection with the issuance of all authorizations, approvals, licensesand permits necessaryto undertake construction of the project; costs 13 of all equipment and fixtures provided for in drawings and specifications; concrete, welding and other testing expenses; and all architectural and engineering fees or costs. a) Property Manager shall act as project manager for capital improvements only when authorized by Owner in writing in advance of performance of construction work and as set forth in the approved Budget or approved by Owner and all extraordinary repair and maintenance to the Property as approved by Owner in advance of the performance of the extraordinary repair and maintenance work. As project manager, Property Manager shall ( i) review and recommend for approval or disapproval by Owner all plans and specifications for any authorized construction ( which review shall include a determination of whether such plans and specifications comply with Owner' s building rules, regulations and standards); ( ii) if required by Owner, solicit competitive bids and review such bids with Owner;
iii) if requestedby Owner, enter into contracts on behalf of Owner, as Owner's agent, in form and content satisfactory to Owner, with the bidders approved by the Owner; (iv) schedule and coordinate the performance of all authorized construction ( including oversight or administration of required inspections); ( v) ensure that adequateinsurance coverage is maintained consistent with the requirements of Owner; ( vi) obtain, review and recommend for approval or disapproval by Owner all draw requestsand lien waivers from the general contractor and all subcontractors;
vii) obtain or causeto be obtained all permits required for the construction and occupancy of the Property; and (viii) provide progress reports to Owner from time to time or as may be requested by Owner.
b) Property Manager shall act as project manager for any tenant alterations and improvements to be performed by Owner only when authorized by Owner in advance of the performance of such work. Property Manager shall ( i) review and recommend for approval or disapproval by Owner all plans and specifications for any authorized tenant construction ( which review shall include a determination of whether such plans and specifications comply with Owner' s building rules, regulations and standards); ( ii) solicit competitive bids; ( iii) if requested by Owner, enter into contracts on behalf of Owner as Owner' s Agent, in form and content satisfactory to Owner, with the successful bidders; ( iv) schedule, coordinate and supervise the performance of such alterations and improvements from inception to completion ( including oversight or administration of required inspections); ( v) obtain and review all draw requests and lien waivers from the general contractors and all subcontractors; vi) obtain or causeto be obtained all permits required for the construction and occupancy of the Prope1iy; and (vii) ensure that adequateinsurance coverage is provided consistent with each tenant' s lease prior to commencement of any such alterations or improvements.
With respectto alterations and improvements not provided for in tenant leases, Manager is authorized to review and consent to such work provided that (i) such alterations and improvements are made at the tenant' s expense in accordance with all applicable laws and ordinances, (ii) such alterations and improvements do not affect the structure of the 14 Property and do not unreasonablyinterfere with building servicesto other tenantsand (iii) conform to the specifications and limitations of the Property. c) For its project management services under either subsections ( a) or b) of Section 9.1 above, Property Manager shall receive the Project Management Fees.
The Project Management Feesshall be paid upon Owner' s receipt of each draw request made by Property Manager based upon the project costs subject to that draw request.
10. TERMINATION. The parties shall have the right to terminate this Agreement as provided below.
10.1. Termination by Owner. Owner shall have the right to terminate this Agreement upon thirty ( 30) days prior written notice to Property Manager for any reason or cause.
10.2. Termination by Property Manager. Property Manager shall the right to terminate this Agreement upon ninety ( 90) days prior written notice to Owner for any reason or cause.
10.3. Termination on Sale. This Agreement shall automatically terminate upon the sale of the entire Property or any portion thereof (as to such portion only) without payment of any fee.
10.4. Final Accounting. Within forty- five ( 45) days after the expiration or earlier termination of this Agreement for any reason, Property Manager shall deliver to Owner the following: ( a) a final accounting, setting forth the balance of income and expenses on the Property as of the date of termination; (b) any balanceor monies of Owner or tenant security depositsheld by Property Manager with respectto the Property; and (c) all materials and supplies, keys, books and records, contracts, leases, receipts for deposits, unpaid bills and other papers or documents which pertain to the Property, whether stored as computer files, in electronic form, on paper or otherwise. For a period of thirty ( 30) daysafter suchexpiration or cancellation for any reasonother than Owner s default, Property Manager shall be available, through its senior executives familiar with the Property, to consult with and advise Owner or any personor entity succeedingto Owner as owner of the Property or such other person or persons selected by Owner regarding the operation and maintenance of the Property. In addition, Property Manager shall cooperate with Owner in notifying all tenants of the Property of the expiration or termination of this Agreement, and shall usereasonableefforts to cooperatewith Owner to accomplish an orderly transfer of the operation and managementof the Property to a party designatedby Owner. Property Manager shall receive its monthly Property Management Fee for such services. Property Manager shall, at its cost and expense, promptly remove all signs wherever located indicating that it is the Property Manager and replace and repair any damageresulting therefrom. Termination of this Agreement shall not release either party from liability for failure to perform any of the duties or obligations as expressed herein and required to be performed by such party for the period prior to the termination.
11. CONFLICTS. Property Manager shall not deal with or engage, or purchase goods or servicesfrom, any subsidiary or affiliated company of Property Manager in connection with the management of the Property for amounts above market rates. 15 12. NOTICES.
12.1. Notices. All notices, demands, consents, approvals, reports and other communications provided for in this Agreement shall be in writing and shall be given to Owner or Property Manager at the address set forth below or at such other address as they may specify hereafter in writing:
Owner: Riverside Public Utilities
Attn: David Garcia, General Manager
3750 University Avenue, 6thFloor
Riverside, CA 92501
With a copy to: City of Riverside
Attn: Benjamin Morales, Real Property ServicesManager
3900 Main Street, 2ndFloor
Riverside, CA 92522
Property Manager: G& E Real EstateManagementdba Newmark 18401 Von Karman, Suite 150
Irvine, CA 92612
Attn: Annais Patton
With a copy to: G& E Real EstateManagement dba Newmark
18401 Von Karman, Suite 150
Irvine, CA 92612
Attn: Legal Department
Such notice or other communication may be delivered by a recognized overnight delivery service providing a receipt, facsimile transmission or mailed by United Statesregisteredor certified mail, return receipt requested, postageprepaid if depositedin a United StatesPost Office or depository for the receipt of mail regularly maintained by the post office. Notices sent by overnight courier shall be deemedgiven one (1) businessday after mailing; notices sent by registered or certified mail shall be deemed given two ( 2) business days after mailing; and notices sent by facsimile transmission shall be deemedgiven as of the date sent (if sent prior to 5:00 p.m. (Eastern time) and if receipt hasbeenacknowledged by the operator of the receiving machine).
13. MISCELLANEOUS.
13.1. Assignment. Property Manager may not assign this Agreement without the prior written consent of Owner, which consent may be withheld in Owner s sole and absolute discretion.
13.2. Gender. Each gender shall include each other gender. The singular shall include the plural and vice versa.
13.3. Amendments. Each consent, waiver, amendment, addition or deletion to this Agreement shall not be effective unless approved by the parties hereto in writing. 16 13.4. Governing Law; Venue. This Agreement shall be governed by and construed in accordancewith the internal laws of the State of California without regard to any choice of law rules. Any action relating to or arising out of this Agreement shall be tried in Riverside County.
13.5. Headings. All headingsare only for convenienceand easeof referenceand are irrelevant to the construction or interpretation of any provision of this Agreement.
13.6. Representations. Property Managerrepresentsandwarrants that it is or shall be prior to entering into any transaction fully qualified and licensed, to the extent required by law, to manage and lease real estate and perform all obligations assumed by Property Manager hereunder. Property Manager shall use reasonable efforts to comply with all such laws now or hereafter in effect.
13.7. Indemnification by Property Manager. Property Manager shall indemnify, defend and hold Owner and its shareholders, officers, directors, and employeesharmlessfrom any and all claims, demands, causes of action, losses, damages, fines, penalties, liabilities, costs and expenses, including reasonableattorneys feesand court costs, sustainedor incurred by or asserted against Owner which arise out of its gross negligence, fraud or willful misconduct of Property Manager, its agentsor employees or Property Manager s breach of this Agreement, except those which arise from Owner s gross negligence, fraud or willful misconduct. If any person or entity makesa claim or institutes a suit againstOwner on a matter for which Owner claim the benefit of the foregoing indemnification, then ( a) Owner shall give Property Manager prompt notice thereof in writing; ( b) Property Manager may defend such claim or action by counsel of its own choosing provided such counsel is reasonably satisfactory to Owner; ( c) neither Owner nor Property Manager shall settle any claim without the other s written consent; and (d) this subsection shall not be construed to release Owner or Property Manager from any liability to the other for a breach of any of the covenantsagreedto be performed under the terms of this Agreement.
13.8. Limitation of Liability. As used in this Agreement, Property Manager meansonly G& E Real EstateManagementServices, Inc. No principal, manager, member, officer, director, employee, or partner ( general or limited) of Property Manager shall have any personal liability under any provision of this Agreement. If Property Manager defaults in the performance of any of its obligations under this Agreement or otherwise, Owner shall look solely to Property Manager s assets, and not to the assets, interest, or rights of any principal, manager, member, officer, director, employee, or partner (generalor limited) of Property Manager for satisfaction of Owner s remedies. In any event, Property Manager s total liability hereunder, regardlessof the nature of the claim made against Property Manager shall not exceed the greater of: ( i) the total annual Property ManagementFeeactually paid to Property Manager; or (ii) the available proceeds of any applicable insurance policy or policies Property Manager is required to maintain under this Agreement.
13.9. Complete Agreement. This Agreement shall supersede and take the place of any andall previous agreementsenteredinto betweenthe partieswith respectto the management of the Property.
17 13.10. Severability. If any provisions of this Agreement or application to any party or circumstances shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement, where the application of such provisions or circumstances other than those as to which it is determined to be invalid or unenforceable shall not be affected thereby, and eachprovision hereof shall be valid and shall be enforced to the fullest extent permitted by law.
13.11. No Waiver. The failure by any party to insist upon the strict performance of, or to seekremedy of, any one of the terms or conditions of this Agreement or to exerciseany right, remedy, or election set forth herein or permitted by law shall not constitute or be construed as a waiver or relinquishment for the future of such term, condition, right, remedy or election, but such item shall continue and remain in full force and effect. All rights or remedies of the parties specified in this Agreement and all other rights or remediesthat they may have at law, in equity or otherwise shall be distinct, separate and cumulative rights or remedies, and no one of them, whether exercised or not, shall be deemed to be in exclusion of any other right or remedy of the parties.
13.12. Binding Effect. This Agreement shall be binding and inure to the benefit of the parties and their respectivesuccessorsand assigns.
13.13 Enforcement of Property Manager s Rights. In the enforcement of its rights under this Agreement, Property Manager shall not seekor obtain a money judgment or any other right or remedy against any shareholders or disclosed or undisclosed principals of Owner. Property Manager shall enforce its rights and remediessolely againstthe estateof Owner in the Property or the proceedsof any saleof all or any portion of Owner s interest therein.
13.14 Nondiscrimination. During Property Manger s performance of this Agreement, Property Manager shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, genetic information, gender, gender identity, gender expression, sex or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Property Manager agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement.
13.15 Business Tax. Property Manager understands that the work performed under this Agreement constitutes doing businessin the City of Riverside, and Property Manager agrees that it will register for and pay a business tax pursuant to Chapter 5.04 of the Riverside Municipal Code and keep such tax certificate current during the term of this Agreement.
13.16 Digital and Counterpart Signatures. Each party to this Agreement intends and agrees to the use of digital signatures that meet the requirements of the California Uniform Electronic TransactionsAct (Civil Code §§ 1633.1, et seq.), California Government Code § 16.5, and California Code of Regulations Title 2 Division 7 Chapter 10, to execute this Agreement. The parties further agree that the digital signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as 18 manual signaturesfor purposesof validity, enforceability, and admissibility. For purposesof this section, a digital signature is defined in subdivision ( d) of Section 16.5 of the Government Code and is a type of electronic signature asdefined in subdivision (h) of Section 1633.2 of the Civil Code. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each certified or authenticated electronic copy of an encrypted digital signature shall be deemed a duplicate original, constituting one and the sameinstrument and shall be binding on the parties hereto.
SIGNATURES ON FOLLOWING PAGE.]
19 IN WITNESS WHEREOF, the parties hereto have executed this Property Management Agreement the dateand year first above written.
PROPERTY MANAGER:
G& E REAL ESTATE MANAGEMENT
SERVICES, INC. a Delaware corporation dba
NEWMARK
By:______________________________________
Name: Ryan Cox
Title: Vice President, Property Management
OWNER:
CITY OF RIVERSIDE, a California charter city
and municipal corporation
By:______________________________________
Title: City Manager
ATTESTED TO:
By:_____________________________________
Title: City Clerk
Certified asto Availability of Funds:
By:_________________________________
Chief Financial Officer
APPROVED AS TO FORM:
By:_____________________________________
Title: Senior Deputy City Attorney
312924 RMS 12/17/25
EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Riverside, County of Riverside, State of California, described as follows:
PARCELA: APN: 215-371-001
THAT PORTIONOF PARCELMAP14855 AS SHOWNBYMAPON FILE IN BOOK75, PAGES37 AND 38 OF PARCEL MAPS, RECORDSOF RIVERSIDECOUNTY, CALIFORNIA, BEINGMOREPARTICULARLYDESCRIBEDASFOLLOWS:
BEGINNINGAT THE MOST EASTERLYCORNEROF PARCEL1; THENCESOUTH29° 02' 49" WESTALONGTHE SOUTHERLYLINEOFSAID PARCEL1, A DISTANCEOF135.90 FEET; THENCENORTH60° 56' 23" WESTTHROUGH PARCELS1 AND 4 OF SAID PARCELMAP14855, A DISTANCEOF 330.98 FEETTO THENORTHWESTERLYLINE OF SAID PARCEL4; THENCENORTH29° 02' 06" EASTALONGTHE NORTHWESTERLYLINE OF PARCELS4 AND 2, A DISTANCEOF 110.39 FEET TO THE BEGINNINGOF A TANGENTCURVE, HAVING A RADIUS OF 26.00 FEET; THENCENORTHEASTERLYALONGSAID CURVE, CONCAVESOUTHERLYTHROUGHA CENTRALANGLEOF 78° 46' 14", AN ARCDISTANCEOF35.75 FEETTO A POINTIN THENORTHEASTERLYLINE OFPARCEL2 OFSAID PARCEL MAP14855, A RADIALLINE TO SAID POINT BEARSNORTH17° 48' 20" EAST; THENCESOUTH60° 56' 23" EAST ALONGTHE NORTHEASTERLYLINES OF PARCEL2, 4 AND 1, A DISTANCEOF 310.07 FEETTO THE POINT OF BEGINNING.
PARCELB: APN(S): 215-371-002 AND 215-371-004
THOSEPORTIONSOF PARCELS1, 3 AND 4 OF PARCELMAP 14855 AS SHOWNBY MAP ON FILE IN BOOK75, PAGES 37 AND 38 OF PARCEL MAPS, RECORDSOF RIVERSIDE COUNTY, CALIFORNIA, BEING MORE PARTICULARLYDESCRIBEDAS FOLLOWS:
COMMENCINGAT THE MOSTEASTERLYCORNEROF PARCEL1; THENCESOUTH29° 02' 49" WESTALONGTHE SOUTHEASTERLYLINE OFSAID PARCEL1, A DISTANCEOF 135.90 FEETTO THEPOINTOFBEGINNING; THENCE CONTINUINGSOUTH29° 02' 49" WESTALONGTHE SOUTHEASTERLYLINE OF SAID PARCEL1, A DISTANCEOF 194.87 FEETTO THE MOST SOUTHERLYCORNERTHEREOF; THENCENORTH 60° 56' 29" WEST ALONGTHE SOUTHWESTERLYLINE OFSAID PARCEL1, A DISTANCEOF45.08 FEETTO A POINT "A"; THENCENORTH29° 03' 37" EASTA DISTANCEOF 38.92 FEET; THENCENORTH60° 56' 23" WEST, A DISTANCEOF 20.11 FEET; THENCE NORTH29° 03' 37" EAST, A DISTANCEOF30.42 FEET; THENCENORTH60° 56' 23" WEST, A DISTANCEOF265.78 FEET TO THE NORTHWESTERLYLINE OF SAID PARCEL3; THENCENORTH 29° 02' 06" EAST, ALONG THE NORTHWESTERLYLINE OF PARCELS3 AND 4, A DISTANCEOF 125.53 FEET; THENCESOUTH60° 56' 23" EAST, A DISTANCEOF 330.98 FEETTO THEPOINTOF BEGINNING.
TOGETHERWITH THOSEPORTIONSOFPARCELS3 AND4 OFSAIDPARCELMAP14855, DESCRIBEDASFOLLOWS:
COMMENCINGAT SAID POINT "A" HEREINBEFOREDESCRIBED; THENCEALONGTHESOUTHWESTERLYLINE OF SAID PARCELS1 AND 4, NORTH 60° 56' 29" WEST 126.00 FEET TO THE POINT OF BEGINNING; THENCE CONTINUEALONGSAID SOUTHWESTERLYLINE AND ALONGTHE SOUTHWESTERLYLINE OF SAID PARCEL3, NORTH60° 56' 29" WEST61.36 FEET; THENCENORTH29° 03' 37" EAST38.92 FEET; THENCESOUTH60° 56' 23" EAST61.36 FEET; THENCESOUTH29° 03' 37" WEST38.92 FEETTO THEPOINTOF BEGINNING.
PARCELC: APN: 215-371-003
THOSEPORTIONSOF PARCELS1, 3 AND 4 OF PARCELMAP14855, AS SHOWNON MAPON FILE IN BOOK75, PAGES37 AND 38 OFPARCELMAPS, RECORDSOFRIVERSIDECOUNTY, CALIFORNIA, DESCRIBEDASFOLLOWS:
COMMENCINGAT THE MOSTSOUTHERLYCORNEROF SAID PARCEL1; THENCEALONGTHE SOUTHWESTERLY LINE OF SAID PARCEL1, NORTH60° 56' 29" WEST45.08 FEETTO THEPOINT OF BEGINNING; THENCENORTH 29° 03' 37" EAST38.92 FEET; THENCENORTH60° 56' 23" EAST20.11 FEET; THENCENORTH29° 03' 37" EAST
30.42 FEET; THENCENORTH60° 56' 23" EAST265.78 FEETTO THENORTHWESTERLYLINE OF SAID PARCEL3; THENCEALONGSAID NORTHWESTERLYLINE, SOUTH29° 02' 06" WEST60.35 FEETTO THEMOSTNORTHERLY CORNEROF THE LAND DESCRIBEDAS PARCEL2 IN THE DEED TO THE CITY OF RIVERSIDE, RECORDED DECEMBER17, 1982 AS INSTRUMENT NO. 82-218727 OF OFFICIAL RECORDSOF RIVERSIDE COUNTY, CALIFORNIA; THENCESOUTHERLYALONGTHE EASTERLYLINE OF SAID PARCEL2, BEINGA CURVECONCAVE EASTERLYHAVINGA RADIUSOF 9.00 FEETTHROUGHA CENTRALANGLE89° 58' 35", AN ARCDISTANCEOF
14.13 FEET TO THE SOUTHWESTERLYLINE OF SAID PARCEL3; THENCEALONG THE LAST MENTIONED SOUTHWESTERLYLINE, SOUTH 60° 56' 29" EAST 89.50 FEET TO A POINT THAT IS DISTANT ALONG THE SOUTHWESTERLYLINE OF SAID PARCELS1, 4 AND 3, NORTH60° 56' 29" WEST187.36 FEETFROMTHE POINT OF BEGINNING; THENCENORTH29° 03' 37" EAST38.92 FEET; THENCESOUTH60° 56' 23" EAST61.36 FEET; THENCESOUTH29° 03' 37" WEST38.92 FEETTO SAID SOUTHWESTERLYLINE OF PARCEL4; THENCEALONG SAID SOUTHWESTERLYLINE OF PARCELS4 AND 1, SOUTH60° 56' 29" EAST126.00 FEETTO THE POINT OF BEGINNING.
EXCEPTINGTHEREFROMTHAT PORTION WHICH LIES BETWEENTHE VERTICALSPACEWITH THE BOTTOM PLANEHAVINGAN ELEVATIONOF 841.73 FEETAND THE TOP PLANEHAVINGAN ELEVATIONOF 854.00 FEET.
U.S. COASTAND GEODETICSURVEYSEALEVELDATUMOF 1929, 1970 SOUTHERNCALIFORNIAADJUSTMENT,
THROUGHTHE MEDIUM OF THE CITY OF RIVERSIDE, PRECISELEVELNET ON FILE IN THE OFFICEOF THE
COUNTYENGINEER, BENCHMARKREFERENCEFORTHIS DESCRIPTIONIS A PARKER-KALON (PK) NAIL IN THE TOP OF CURB, 12 FEETSOUTHEASTERLYOF THE MOSTSOUTHERLYCURBRETURNAT THE INTERSECTIONOF 10TH STREETAND MARKETSTREET, HAVING AN ELEVATIONOF 840.914 FEETAS SHOWNIN THE CITY OF RIVERSIDEFIELDBOOK975 PAGE10 ASCONVEYEDTO THEPARKINGAUTHORITYOF THECITY OF RIVERSIDE BY DEEDRECORDEDAUGUST13, 1984 AS INSTRUMENTNO. 84-175601 OF OFFICIALRECORDSOF RIVERSIDE COUNTY, CALIFORNIA.
EXHIBIT B
FEE SCHEDULE
Property Management Fee Property Manager Building Engineer 3% Annual Increase 3% Annual Increase 3% Annual Increase Monthly Annual Monthly Annual Monthly Annual
Year 1 $ 3,200 $ 38,400 Year 1 $ 4,018 $ 48,216 Year 1 $ 7,821 $ 93,852 Year 2 $ 3,296 $ 39,552 Year 2 $ 4,139 $ 49,668 Year 2 $ 8,056 $ 96,672 Year 3 $ 3,395 $ 40,740 Year 3 $ 4,263 $ 51,156 Year 3 $ 8,298 $ 99,576 Year 4 $ 3,497 $ 41,964 Year 4 $ 4,391 $ 52,692 Year 4 $ 8,547 $ 102, 564 Year 5 $ 3,602 $ 43,224 Year 5 $ 4,523 $ 54,276 Year 5 $ 8,803 $ 105,636 Year 6 $ 3,710 $ 44,520 Year 6 $ 4,659 $ 55,908 Year 6 $ 9,067 $ 108, 804 Year 7 $ 3,821 $ 45,852 Year 7 $ 4,799 $ 57,588 Year 7 $ 9,339 $ 112, 068 Year 8 $ 3,936 $ 47,232 Year 8 $ 4,943 $ 59,316 Year 8 $ 9,619 $ 115,428 Year 9 $ 4,054 $ 48,648 Year 9 $ 5,091 $ 61,092 Year 9 $ 9,908 $ 118, 896 Year 10 $ 4,176 $ 50,112 Year 10 $ 5,244 $ 62,928 Year 10 $ 10,205 $ 122,460