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HomeMy WebLinkAbout8313RESOLUTION NO. 8313 A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND EXPRESS PERSONNEL SERVICES RELATING TO THE RENTAL OF 115 SQUARE FEET OF OFFICE SPACE LOCATED ON THE SOUTHEAST SIDE OF THE MAIN TERMINAL BUILDING AT THE PUEBLO MEMORIAL AIRPORT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME Be it resolved by the City Council of Pueblo that: SECTION 1 INTRODUCED January 12, 1998 A certain Lease Agreement, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the City Attorney, by and between the City of Pueblo, a Municipal Corporation, as Lessor, and Express Personnel Services, as Lessee, relating to the rental of 115 square feet of office space located on the southeast side of the main Terminal Building at the Pueblo Memorial Airport, be and the same is hereby approved, subject to the conditions as set forth in said Lease Agreement. SECTION 2 The President of the City Council is hereby authorized to execute said Lease Agreement on behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 3 All net proceeds derived from said Lease Agreement will be used for the operation, maintenance, and improvement of the Airport. BY: John Verna ATTEST: 1 APPROVED AS TO FORM: APPROVED: a Councilperson President of te City Q6uncil City Attorne : " Ptoo 0x'313 loQ,Oo&cL 1 -12 -W Council Agenda RESOLUTION APPROVING LEASE AGREEMENT TITLE: WITH EXPRESS PERSONNEL FOR SE OFFICE AGENDA ITEM # DEPARTMENT: PUEBLO MEMORIAL AIRPORT DATE: JANUARY 12, 1998 ISSUE Should the City Council approve a Resolution approving a Lease Agreement between the City of Pueblo and Express Personnel Services relating to the rental of office space located on the southeast side of the main Terminal Building at the Pueblo Memorial Airport. RECOMMENDATION Approval of this Resolution. BACKGROUND A public advertisement for bids was solicited for business support services and one proposal was received. This proposal was submitted by Express Personnel Services. The Lease Agreement between the City of Pueblo and Express Personnel Services shall be for a one (1) year term effective February 1, 1998. FINANCIAL IMPACT Terms of the Lease Agreement are as follows: 115 square feet of office space at $18.26 per square foot per year for a total of $2,099.90 annually. Right to renew for an additional term of one (1) year commencing February 1, 1999. PUEBLO MEMORIAL AIRPORT LEASE AGREEMENT A Lease Agreement entered into this 12th day of January , 1998 between the City of Pueblo, a Municipal Corporation, herein called "Lessor ", and Express Personnel Services, a Limited Liability Corporation herein called "Lessee ", WITNESSETH: THAT IN CONSIDERATION of the payment of rent hereinafter provided and the keeping and performance of each of the covenants and agreements of said Lease hereinafter set forth, said Lessor has and does hereby lease unto the said Lessee the following described premises situate in the Terminal Building at the Pueblo Memorial Airport, herein called "Airport ", in the County of Pueblo, State of Colorado, to -wit: Lessee shall have the immediate and entire use and occupancy of the following described premises: A room approximately 115 square feet (10' X 11''/2 ") on the southeast side of the main Terminal Building located east of the main entrance of said Terminal Building and adjacent to the present location of the Automobile Rental Area for the operation of a Business Support Service. To have and hold the same unto the said Lessee for a term of one (1) year, commencing February 1, 1998 and terminating January 31, 1999 For the privilege of operating a business support service in the Airport Terminal Building, Lessee shall pay a monthly rental fee based on a per annum fee of $ 18.26 per square feet. 1. RIGHTS AND PRIVILEGES OF LESSEE A. Lessee shall have the right to engage in and operate a business support service at and on the aforesaid premises for the convenience of patrons and tenants of the Airport, the Airport Industrial Park, and the General Public desiring such services at the Airport or Airport Industrial Park without limiting the generality hereof. B. Except as may be specifically authorized herein to the contrary, Lessee shall not, without the prior written approval of the Director of Aviation, make improvements, modifications, revisions, installation of signs or other alterations to the leased premises. Costs of approved improvements, modifications, revisions, signs and alterations shall be borne solely by Lessee and all such modifications, revisions, signs and alterations shall be borne. solely by the Lessee and all such improvements, modifications, revisions or alterations shall upon expiration of the original term or any renewal term or prior termination of this Lease for any reason, become and remain the property of the Lessor. C. Lessee, its employees and invitees shall have the right of ingress and egress between the main entrance of the Airport as the same now exists or may hereafter be relocated and the leased premises over, upon and through such streets and no other as from time to time shall be designated by the Director of Aviation. Driveways from existing streets into the leased premises shall be located as designated by the Director of Aviation. 2. RIGHTS AND PRIVILEGES OF LESSOR A. All rights not herein granted to the Lessee are reserved to the Lessor and nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. B. Lessor shall have full and unrestricted right to enter upon those portions of the Airport occupied and leased herein by the Lessee, and Lessor, its agents, or representatives shall be permitted to inspect the same at any reasonable hour. C. Lessor reserves the right to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, but shall not be obligated to the Lessee for any failure to so maintain or keep in repair. D. There is hereby reserved to the Lessor, its successors and assignees for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the premises hereby leased, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using such airspace for landing at, taking off from, or operation on Pueblo Memorial Airport. E. It is further understood and agreed that this Agreement is subject to the written prior approval of the Federal Aviation Administration and that the provisions hereof cannot be modified without prior written approval by said Federal Aviation Administration. 3. OBLIGATIONS OF LESSEE A. Lessee shall at its sole expense, maintain and keep the leased premises and any improvements presently existing or hereafter constructed thereon in good condition, appearance, and state of repair, normal wear excepted. (1) If Lessee should fail to keep and maintain the leased premises or improvements thereon in such good order and repair as is reasonably required, Lessor may enter the leased premises, without such entering causing or constituting a termination of the Lease, or an interference with the possession of the premises by Lessee, and perform the necessary maintenance or repairs to the leased premises to the condition required by the Lessor, and the costs of such maintenance or repairs by 2 the Lessor shall be paid by Lessee to the Lessor in addition to the reserved rents. B. Lessee agrees, except as may be otherwise provided in other contracts entered into between the Lessor and Lessee, not to engage in any business at the Airport other than that which is expressly authorized herein. C. The Lessee agrees to indemnify, defend, and save the Lessor, its agents, officers, representatives and employees, harmless from and against any and all penalties, liabilities or loss including costs and attorney fees resulting from claims or court action, whether civil, criminal or in equity, and arising directly or indirectly out of acts of the Lessee, his agents, employees, or servants through any injury or casualty occurring on the leased premises. D. Lessee shall maintain with insurance underwriters satisfactory to the Lessor, a standard form policy or policies of comprehensive general public liability insurance with limits not less than $600,000.00 for any one accident or for any one injury or death and $100,000.00 property damage and worker's compensation insurance as required by Colorado law. Such policies shall name the Lessor as an additional insured. (1) Lessee shall furnish a certificate from the insurance carrier or carriers showing such insurance to be in full force and effect during the term of this Agreement or extensions thereof. All said policies shall provide for a minimum of ten days notice to the Lessor in the event of cancellation, non - renewal, or material change in the terms thereof. (2) Lessee shall not hold, or attempt to hold, Lessor liable for any injury, including loss of life, to any person, or for damage to any property while on the leased premises or on the Airport, irrespective of how such injury or damage may have been caused or occasioned. 4. OBLIGATION OF LESSOR A. Lessor shall furnish heat, air conditioning, and electricity for said premises. 5. GENERAL CONDITIONS A. The terms and conditions of this Lease and Lessee's rights hereunder are hereby made subject to the provisions of Title III Chapter I of the 1971 Code of Ordinances of the City of Pueblo and as same may by subsequently amended. In the event of conflict between said Code of Ordinances and any provisions herein, said Code shall control. B. The Lessee, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this Lease for the purpose for which a Department of Transportation program 3 or activity is extended or for another purpose involving the provision of similar services or benefits, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non - discrimination in Federally- assisted programs of the Department of Transportation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. (1) The Lessee, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (1) no person on the grounds of race, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of leased premises, that (2) in the construction of any improvements on, over, or under the leased premises and the furnishing of services thereon, no person on the grounds of race, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the Lessee shall use the leased premises in compliance with all other applicable requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non - discrimination in Federally- assisted programs of the Department of Transportation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. (2) That in the event of breach of any of the above non - discrimination covenants, Lessor shall have the right to terminate this Lease and to re- enter and repossess said land and the facilities thereon, and hold the same as if said Lease had never been made or issued. C. The Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations before construction of any future structure or building upon the leased premises or before any modification or alteration of any present or future building or structure situated on the leased premises is commenced. D. Lessee shall furnish its services and accommodations on a fair, equal, and not unjustly discriminating basis to all users thereof and it shall charge fair, reasonable, and not unjustly discriminating prices for each unit of service, provided that the Lessee may be permitted to make reasonable and nondiscriminatory discounts, rebates, or other similar price reductions to employees or volume purchasers. E. The Lessee by accepting this Lease expressly agrees for itself, its successors, and assigns that it will not make use of the leased premises in any manner which might interfere with the landing and taking off of aircraft from Pueblo Memorial Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the premises 4 hereby leased and cause the abatement of such interference at the expense of the Lessee. F. This Lease and all the provisions hereof are subject to all rights the United States Government now has, or in the future may have, or acquire, affecting the control, operation, regulation, re -entry upon and taking over of the said Airport including the leased premises. G. The Lessee shall observe faithfully all rules and regulations affecting the use of the Airport, whether established by the Director of Aviation, by the City or other political subdivision having jurisdiction, by the State of Colorado or the United States, or agencies thereof, including but not limited to rules affecting the operation of motor vehicles upon, to, and from the Airport. H. The Lessee, and all officers, agents, and employees of Lessee, hereby agree to be bound by and subject to all the Police Ordinances of Pueblo, a Municipal Corporation; at all times while on the Airport, whether acting in course of Lessee's business or otherwise, to all intents and purposes the same as though the leased premises where located within the City Limits of Lessor. I. The Lessee represents that it has inspected the Airport and all its premises and facilities and that it accepts the condition of same and fully assumes the risk incident to the use thereof. The Lessor shall not be liable to the Lessee for any damages or injuries to the property or personnel of the Lessee which result from hidden, latent, or other dangerous conditions on the Airport or leased premises. 6. DEFAULT HOLDOVER AND NON - PERFORMANCE CONDITIONS A. That if, after the expiration of the term of this Lease, Lessee shall remain in possession of the leased premises and continue to pay rent without any express written agreement as to such holding over, then Lessee agrees that all terms and covenants of this Lease shall remain in effect, except that the Lessee shall be a tenant from month to month at a monthly rent equal to 150 percent of the rent for the last month payable hereunder. B. That if the Lessee shall be declared insolvent and bankrupt, or if any assignment of the Lessee's property shall be made for the benefit of creditors or otherwise, or if Lessee's leasehold interest herein shall be levied upon under execution, or seized by virtue of any writ of any Court of Law, or a Trustee in Bankruptcy or a Receiver appointed for the property of the Lessee, whether under the operation of the State or the Federal Statutes, then and in any such case, the Lessor may, at his option, immediately with or without notice, notice being expressly waived, terminate this Lease and immediately retake possession of said premises without the same working any forfeiture of any accrued obligations of the Lessee hereunder. C. That if the above rent, or any part thereof, shall be in default, or in case of a breach by the Lessee of any of the covenants or agreements herein, the said 5 Lessor may declare this Lease terminated, and after the expiration of three days from the date of the service of a written notice to that effect, be entitled to the possession of said premises without any further notice or demand. If the Lessor shall become entitled to the possession of said premises either by the expiration of this Lease or by any violation of any term or provision as herein provided, the said Lessor may, without further notice or demand, enter into and upon said premises, or any part thereof, and take possession thereof and repossess them, and expel, remove and put out of possession the Lessee, using such help, assistance, and force in so doing as may be needful and proper, without prejudice to any remedy allowed by Law, available in such cases. D. That in case said premises are left vacant and any part of the rent herein reserved be due and unpaid, then the Lessor may, without in anyway being obligated to do so, and without terminating this Lease, retake possession of said premises and rent the same for such rent, and upon such conditions as the Lessor may think best, making such changes and repairs as may be required, giving credit for the amount of rent so received less all expenses of such changes and repairs, and said Lessee shall be liable for the balance of the rent herein reserved until the expiration of the Lease. E. In the event the Lease Agreement is terminated as herein provided, Lessor should have and is hereby given a lien upon Lessee's equipment, fixtures, furniture, and inventory located in or upon the leased premises for all rent, expenses, attorney fees, and costs due or to become payable by Lessee hereunder, and such lien may be enforced by the taking and sale of such property in the same manner and as provided for the disposition of collateral under the Colorado Uniform Commercial Code. F. Lessee agrees to pay to Lessor all costs, including a reasonable Attorney Fee, incurred by Lessor in recovering any rent or other money due and unpaid under the terms of this Lease or to recover possession of the leased premises after termination hereof. 7. SPECIAL CONDITIONS A. If not in default hereunder and Lessee desires to continue the operation covered by this Agreement beyond the date herein stated as the termination date, Lessee shall so notify the Lessor in writing addressed to the Director of Aviation, at least sixty (60) days before the termination of this Lease. The Lessee shall, subject to the approval of the Lessor, thereupon have the option to renew this Lease for an additional term of one (1) year commencing February 1, 1999 and terminating January 31, 2000 upon the same terms and conditions, except that the size and location of the leased premises and /or rent for the full renewal shall be negotiated at the time of renewal. This option to renew will terminate and expire if Lessor does not agree in writing to such renewal. R 8. MISCELLANEOUS PROVISIONS A. That no assent, expressed or implied, to any breach of any one or more of the covenants and agreements hereof, shall be deemed or taken to be a waiver of any succeeding or other breach. B. The Lessee shall not assign or sublet this Agreement, or any right, privilege or interest thereunder without the written permission of the Director of Aviation. C. This Lease Agreement shall inure to the benefit of and be binding upon the successors, subleasees, and assigns of the parties hereto. ATTEST: PUEBLO, A MUNICIPAL CORPORATION mar-offi 71 by OtUll President of h City Council APPROVED AS TO FORM: EXPRESS P" NNEL SERVICES, L.L.C.: by CityAttorney v `. Jim illen Ow r 101 COUNCIL AGENDA - BACKGROUND PAPER TITLE: DEPARTMENT DATE: A resolution approving the purchase of the property located at 1231 East Orman Office of City Manager January 12, 1998 ISSUE: The City of Pueblo was approached by the owners of this property and given the opportunity to purchase at the appraised value of the property. The property was appraised at $43,500. The property is being purchased with the intent of demolishing the existing home and constructing a parking lot to ease the parking burden placed on the neighborhood from the employees at Matrixx. The City has already purchased the properties at 1219 and 1223 East Orman with the same intent of using them as parking. FINANCIAL IMPACT: Funds not to exceed $45,000 will be disbursed from the Half -Cent Sales Tax. RECOMMENDATION: Approval of the resolution. SECURITY UNION Title Insurance Company POLICY OF TITLE INSURANCE 06 0720 106 1946 SECURITY UNION TITLE INSURANCE COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, SECURITY UNION TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of date of policy shown in Schedule A, against loss or damage, not exceeding the amount of insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title. 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. ISSUED BY: VALLEY TITLE COMPANY 1104 N. Main Pueblo, Colorado 81003 SECURITY UNION TITLE INSURANCE COMPANY (719) 546 - 1801 FAX (719) 544 - 5222 By: President jj V/' f -A C lz�i-- - � ..... ............... Authorized Signature By: 2* Secretary ALTA OWNER'S POLICY (10- 17 -92) Reorder Form No. 12653 (Rev. 10- 17 -92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (1) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. PREMIUM TRANS SI INF. REISSUE AMOUNT TYPE IND. END. CODE CODE CODE CODE CODE AMOUNT $236.50 OP 4040 $22,000.00 SCHEDULE A OFFICE FILE POLICY DATE OF AMOUNT OF NUMBER NUMBER POLICY INSURANCE 36654 06 0720 106 1946 March 5, 1998 $43,500.00 at 10:30 A.M. 1. Name of Insured: PUEBLO, A Municipal Corporation 2. The estate or interest in the land described herein and which is covered by this Policy is: Fee Simple 3. Title to the estate or interest in the land is vested in: PUEBLO, A Municipal Corporation 4. The land herein described is encumbered by the following mortgage or trust deed, and assignments: and the mortgages or trust deeds, if any, shown in Schedule B hereof. 5. The land referred to in this policy is described as follows: Lot 31 and the South 1/2 of Lot 32, Block 11, COLLEGE HILLS, Second Filing, County of Pueblo, State of Colorado CTY 101 SCHEDULE A Owners Form This policy valid only if Schedule B is attached. SCHEDULE B Policy No. 06 0720 106 1946 EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: General Exceptions: (1) Rights or claims of parties in possession not shown by the public records. (2) Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises including, but not limited to, insufficient or impaired access or matters contradictory to any survey plat shown by the public records. (3) Easements, or claims of easements, not shown by the public records. (4) Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records. (5) (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof, (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. (6) Taxes or special assessments which are not shown as existing liens by the public records of any taxing authority that levies taxes or assessments on real property records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. (SPECIAL EXCEPTIONS SHOWN ON NEXT PAGE) SCHEDULE B (STANDARD COVERAGE) Schedule B of this Policy consists of 2 pages. Owners Form - (10- 17 -92) SCHEDULE B (CONTINUED) Policy Number: 06 0720 106 1946 Special Exceptions: The mortgage, if any, referred to in Item 4 of Schedule A. 7. Any and all unpaid taxes, assessments and unredeemed tax sales. 8. Liquor Covenants and Conditions as contained in various deeds in the chain of title. ITEMS 1, 2, 3, 4, 5 AND 6 ARE HEREBY DELETED SCHEDULE B (STANDARD COVERAGE) Schedule B of this Policy consists of 2 pages. Owners Form - (10- 17 -92) CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. (b) "insured claimant ": an insured claiming loss or damage. (c) "knowledge" or "known ": actual knowledge, not constructive knowl- edge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart construc- tive notice of matters affecting the land. (d) "land ": the land described or referred to in Schedule A, and improve- ments affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but noth- ing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage ": mortgage, deed of trust, trust deed, or other security instrument. (f) "public records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "4nmarketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest, as insured, and which might cause loss or dam- age for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE (a) Upon written request by the insured and subject to the options con- tained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph. it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent juris- diction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prose- cute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or pro- ceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obliga- tion to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 3 of these Condi- tions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obliga- tion to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reason- able times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any autho- rized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspon- dence and memoranda in the custody or control of a third party, which reason- ably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reason- ably requested information or grant permission to secure reasonably neces- sary information from third parties as required in this paragraph shall termi- nate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized bythe Company, up to the time of payment or tender of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or con- tinue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against underthis policy, togetherwith any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prose- cute or continue any litigation. 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE This policy is a contract of indemnity against actual monetary loss or dam- age sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT If the land described in Schedule A consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or dam- age until there has been a final determination by a court of competent jurisdic- tion, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter ex- ecuted by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. PAYMENT OF LOSS (a) No payment shall be made without producing this policy for endorse- ment of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and reme- dies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impair- ment by the insured claimant of the Company's right of subrogation. (b) The Company's Rights Against Non - insured Obligors. The Company's right of subrogation against non - insured obligors shall exist and shall include, without limitation, the rights of the insured to indem- nities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subroga- tion rights by reason of this policy. 14. ARBITRATION Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connec- tion with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitra- tion pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Com- pany. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at the issuing office or to: Security Union Title Insurance Company Claims Department P.O. Box 2233 Los Angeles, California 90051 WARRANTY DEED TMS DEED, Made on March 4, 1998 111111111111111111111111111111111111111 III 111111111 IN 1207970 03/05/1998 10:29A B3093 P666 WD 1 of 1 R 6.00 D 0.00 Pueblo Cty Clk & Rec. between JOSEPH P. COSTANZA AND CARMEN J. BUCCIARELLI, III of the County of PUEBLO and State of COLORADO grantor, and PUEBLO, A Municipal Corporation whose legal address is of the County of PUEBLO and State of COLORADO ,grantees: WITNESS, That the grantor, for and in consideration of the sum of * *ONE DOLLAR AND OTHER CONSIDERATION************* * * * * * * * * * * * * * * * * * * * * * * llOLLAItS, the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey and confirm unto the grantees, their heirs and assigns forever, not in tenancy in common but in joint tenancy, all the real property, together with improvements, if any, situate, lying and being in the County of PUEBLO and State of Colorado, described as follows: Lot 31 and the South 1/2 of Lot 32, Block 11, COLLEGE HILLS, Second Filing, County of Pueblo, State of Colorado as known by street and number as: 1231 EAST ORMAN PUEBLO,CO.,81004 TOGETHER with all and singular the hereditaments and appurtenances thereunto belonging, or in anywise appertaining and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all die estate, right, title, interest, claim and demand whatsoever of the grantor, either in law or equity, of, in and to the above bargained premises, with die heredilanents and appurtenances. TO HAVE AND TO IIOLD the said premises above bargained and described, with the appurtenances, unto die grantees, their heirs and assigns forever. And the grantor, for himself, his heirs, and personal representatives, does covenant, grant, bargain, and agree to and with die grantees, their heirs and assigns, that at die time of the ensealing and delivery of these presents, he is well seized of die premises above conveyed, had good, sure, perfect, absolute and indefeasible estate of inheritance, in law, in fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in manner and form aforesaid, and that the same are free and clear from all former and other grants, bargains, sales, liens, taxes, assessments, encumbrances and restrictions of whatever kind or name soever,except General Taxes for the current year and subsequent years, easements, restrictions, reservations and protective covenants of record, if any. The grantor shall and will WARRANT AND FOREVER DEFEND the above - bargained premises in the quiet and peaceable possession of the grantees, their heirs and assigns, against all and every person or persons lawfully claiming die whole or any part thereof. The singular number shall include the plural, the plural the singular , and the use of any gender shall be applicable to all genders. IN WITNESS WHEREOF, the grantor has executed this deed on the date set forth ab�ve . OS PH P. COST A /CARMEN J. BUCCIARELLI, III by } Ss. before me this ' day of D CARMEN J. BUCCIARELLI, III COLORADO 19 Witness my hand and official seal. _ My Commission expires y - N,,., n,nnv r Nn. 921A. Rev. 3 -55 Warranty Deed(To Joint Tenants) vi Camndsa m Elkins June 4,1901