CITY
CORNING CITY OF CORNING
CITY COUNCIL
CLOSED SESSION AGENDA
TUESDAY, AUGUST 12, 2025
CITY COUNCIL CHAMBERS
794 THIRD STREET
A. CALL TO ORDER: 5:00 p.m.
B. ROLL CALL:
Council: Dave Demo, Chuy Valerio, Shelly Hargens, and Lisa Lomeli Mayor: Robert Snow
The Brown Act requires that the Council provide the opportunity for people in the audience to briefly address the Council on the subjects) scheduled for tonight's closed session. Is there anyone wanting to comment on the subjects) the Council will be discussing in closed session? If so, please come to the podium, identify yourself and give us your comments.
C. PUBLIC COMMENTS:
D. REGULAR AGENDA:
1. Conference with Real Property Negotiations (54956.8) Property: APN 067-260-077-000
Agency Negotiator: City Manager Brant Mesker
Under Negotiation: Lease
E. ADJOURN TO REGULARLY SCHEDULED CITY COUNCIL MEETING AND REPORT ON CLOSED SESSION:
CORNING CITY OF CORNING
CITY COUNCIL
REGULAR MEETING AGENDA
TUESDAY, AUGUST 12, 2025
CITY COUNCIL CHAMBERS
794 THIRD STREET
This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law. Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C. 20250.
In compliance with the Americans with Disabilities Act and Title VI. If you need special assistance or translation services to participate in this meeting, please contact the City Clerk's Office at (530) 824-7033 or via email at [email protected]. Notification in advance of the meeting will enable the city to make reasonable arrangements to ensure accessibility to this meeting.
A. CALL TO ORDER: 5:30 p.m.
B. ROLL CALL:
Council: Dave Demo, Chuy Valerio, Shelly Hargens, and Lisa Lomeli Mayor: Robert Snow
C. PLEDGE OF ALLEGIANCE: Led by the City Manager.
D. INVOCATION: Led by Councilor Hargens.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER E. PROCLAMATIONS, RECOGNITIONS, APPOINTMENTS, PRESENTATIONS:
1. Proclamation: National Volunteer Firefighters Recognition Day-August 18th. Present to accept is the Fire Chief and members of the Corning Volunteer Fire Department.
F. PUBLIC COMMENTS AND BUSINESS FROM THE FLOOR: If there is anyone in the audience wishing to speak on items not already set on the agenda, please come to the podium, and briefly identify the matter. To ensure that all members of the public have an equal opportunity te address the City Council, public comments during the designated comment period will bi limited to three (3) minutes per speaker. Council will then determine if such matter will be place on the agenda for this meeting, scheduled for a subsequent meeting, or recommend other appropriate action.
G. CONSENT AGENDA: It is recommended that items listed on the Consent Agenda be acted on simultaneously unless a Councilmember or members of the audience request separate discussion and/or action.
1. Waive reading, except by title, of any Ordinance under consideration at this meeting for either introduction or passage, per Government Code Section 36934.
2. Waive the reading and approve the Minutes for the following:
a) July 22, 2025 Closed City Council Session meeting
b) July 22, 2025 Special City Council meeting
c) July 22, 2025 Regular City Council meeting
d) July 30, 2025 Special City Council meeting
3. August 7, 2025, Claim Warrant in the amount of $ 398,842.49
4. August 7, 2025, Business License Report
5. July 2025 Treasurer's Report
6. July 2025 Wages & Salaries: $496,089.84
7. July 2025 Building Permit Valuation Report in the amount of $302,724
8. July 2025 City of Corning Wastewater Operations Summary Report.
9. Consider waiver of Special Event Permit fee for the Corning Candlelight Walk to be held on October 8,2025.
H. ITEMS REMOVED FROM THE CONSENT AGENDA:
I. PUBLIC HEARINGS AND MEETINGS:
1. Consider adoption of resolution of necessity to authorize acquisition of easement over private property through eminent domain for the purpose of connecting utilities (Requires 4/5'h vote).
J. REGULAR AGENDA:
1. Approval of grant funds to be used to repaint utility boxes on Solano Street.
2. Authorize staff to execute the renewal lease with State Lands Commission for the outfall and bank protection at the Sacramento River.
3. Authorize the purchase of a backhoe for the Public Works Department in the amount of $174,624.89
K. ITEMS PLACED ON THE AGENDA FROM THE FLOOR:
L. COMMUNICATIONS, CORRESPONDENCE, AND INFORMATION:
M. REPORTS FROM MAYOR AND COUNCIL MEMBERS: City Councilmembers will report on attendance at conferences/meetings reimbursed at City expense (Requirement of Assembly Bill 1234).
N. ADJOURNMENT:
Posted: Friday, August 8, 2025
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: E-1
NATIONAL VOLUNTEER FIREFIGHTERS RECOGNITION DAY
AUGUST 18, 2025
members and as a seir i apple of of ones, made up an or dey spide HEREAS, these men answer the call at all hours, leaving their homes, their jobs, an heir families to respond to fires, medical emergencies, accidents, and disasters—ofter putting themselves in harm's way to protect others; and HEREAS, our volunteer firefighters not only save lives and safeguard property, but also dedicate countless hours to training, fire prevention education, and community service, strengthening the safety and resilience of Corning; and best of who we are as a come see neighbors selling neighbor botherby trust, compassion, and courage; and
WHEREAS, August 18, 2025, is set aside as National Volunteer Firefighters Recognition Day, a time for communities across the nation to honor and express gratitude for the volunteer firefighters whose dedication keeps us safe; and NOW, THEREFORE, I, Robert Snow, Mayor of the City of Corning, do hereby proclaim August 18, 2025, as National Volunteer Firefighters Recognition Day in the City of Corning, and urge all residents to join in thanking our Volunteer Fire Department for their extraordinary service, bravery, and steadfast commitment to our community.
IN WITNESS WHEREOF, 1 have
hereunto set my hand and caused the
Seal of the City of Corning to be affixed
this 12th day of August 2025.
Robert Snow, Mayor
Rubi Ordaz, City Clerk
CORNING
Item No.: G-a
CITY OF CORNING
CITY COUNCIL
CLOSED SESSION MINUTES
TUESDAY, JULY 22, 2025
CITY COUNCIL CHAMBERS
794 THIRD STREET
A. CALL TO ORDER:
The meeting was called to order at 5:15pm by Mayor Snow.
B. ROLL CALL:
Councilmembers present:
Shelly Hargens
Dave Demo
Jose "Chuy" Valerio
Mayor- Robert Snow
Absent: Lisa Lomeli
Staff present: City Manager Brant Mesker
City Attorney Collin Bogener
C. PUBLIC COMMENTS: No audience. No comments.
D. REGULAR AGENDA:
1. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to § 54956.9(c): (one case) E. ADJOURN TO REGULARLY SCHEDULED CITY COUNCIL MEETING AND REPORT ON CLOSED SESSION: The closed session ended at 5:25pm. Mayor Snow stated there were no reportable actions.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER CITY
CORNING Item No.: G-2b
CITY OF CORNING
SPECIAL
CITY COUNCIL MEETING MINUTES
TUESDAY, JULY 22, 2025
CITY COUNCIL CHAMBERS
794 THIRD STREET
A. CALL TO ORDER:
The meeting was called to order at 5:30pm by Mayor Snow.
ROLL CALL:
Councilmembers present:
Jose "Chuy" Valerio
Shelly Hargens
Dave Demo
Lisa Lomeli
Mayor- Robert Snow
Absent:
Staff present: City Manager Brant Mesker
City Attorney Collin Bogener
City Clerk Rubi Ordaz
Public Works Director Eli Stanley
Fire Chief Tom Tomlinson
Police Chief Craig Bassett
Building Official Ben Mierzwak
City Engineer Robin Kampmann
B. PLEDGE OF ALLEGIANCE: Led by the City Manager.
C. INVOCATION: Led by Councilor Hargens
D. PROCLAMATIONS, RECOGNITIONS, APPOINTMENTS, PRESENTATIONS: None E. PUBLIC COMMENTS AND BUSINESS FROM THE FLOOR:
Paul Freund, Manager for Tehama County Solid Waste Management, announced a couple of events coming up: The influence of recycling at the Corning Library and Swap Shop at the Tehama County Landfill.
F. REGULAR AGENDA:
1. Approve plans and specifications and authorize staff to solicit bids for the City of Corning City Plaza Project.
Presented by City Manager, Brant Mesker. Staff is looking to move forward with the City Plaza Project. Council would need to approve the plans and specifications and authorize the solicitation of bids for the $10.15 million City Plaza Project, which includes a new recreation center, community park with water features, amphitheater, and other amenities. The project is funded through Proposition 68, CDBG, and local funds, and meets State grant requirements for accessibility, cultural representation, and community use.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-2b
Councilor Demo moved to approve the plans and specifications for the City of Corning City Plaza project and authorize staff to advertise and solicit bids for construction. Councilor Snow seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
Moved to the regular meeting at 5:35pm
K. ITEMS PLACED ON THE AGENDA FROM THE FLOOR: Addressed at the regular meeting.
L. COMMUNICATIONS, CORRESPONDENCE, AND INFORMATION: Addressed at the regular meeting.
M. REPORTS FROM MAYOR AND COUNCIL MEMBERS: Addressed at the regular meeting.
N. ADJOURNMENT: Special meeting adjourned at 5:35pm and moved on to the regular meeting.
Attest:
City Clerk, Rubi Ordaz
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-c
CORNING
CITY OF CORNING
CITY COUNCIL
REGULAR MEETING MINUTES
TUESDAY, JULY 22, 2025
CITY COUNCIL CHAMBERS
794 THIRD STREET
A. CALL TO ORDER:
The meeting transitioned from the special meeting to the regular meeting at 5:45pm.
B. ROLL CALL:
Councilmembers present:
Shelly Hargens
Lisa Lomeli
Dose Chuy Valerio
Mayor- Robert Snow
Absent:
Staff present: City Manager-Brant Mesker
City Attorney - Collin Bogener
City Clerk Rubi Ordaz
Public Works Director Eli Stanley
Fire Chief Tom Tomlinson
Police Chief Craig Bassett
Building Official
Benjamin Mierzwak
City Engineer- Robin Kampmann
C. PLEDGE OF ALLEGIANCE: Led by the City Manager. -Done during the special meeting D. INVOCATION: Led by Councilor Hargens.-Done during the special meeting E. PROCLAMATIONS, RECOGNITIONS, APPOINTMENTS, PRESENTATIONS: Done during the special meeting
F. PUBLIC COMMENTS AND BUSINESS FROM THE FLOOR: Done during the special meeting.
Transitioned to this regular meeting after public comment.
G. CONSENT AGENDA: It is recommended that items listed on the Consent Agenda be acted on simultaneously unless a Councilmember or members of the audience request separate discussion and/or action.
1. Waive reading, except by title, of any Ordinance under consideration at this meeting for either introduction or passage, per Government Code Section 36934.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-c
2. Waive the reading and approve the Minutes of June 24, 2025, regular City Council meeting with any necessary corrections.
3. July 17, 2025, Claim Warrant in the amount of $ 1,553,956.09
4. July 17, 2025, Business License Report
5. June 2025 Treasurer's Report
6. June 2025 Wages & Salaries: $453,668.67
7. June 2025 Building Permit Valuation Report in the amount of $778,750
8. June 2025 City of Corning Wastewater Operations Summary Report.
9. Approve Corning Municipal Airport Ground Lease Hangar #4 transfer to Johnsen Commercial Services
Councilor Valerio moved to approve consent items 1-9; Councilor Hargens seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
H. ITEMS REMOVED FROM THE CONSENT AGENDA: None
I. PUBLIC HEARINGS AND MEETINGS: None
J. REGULAR AGENDA:
1. Informational presentation regarding mobile food truck vendors and City Ordinance Presented by City Manager, Brant Mesker. At the request of a council member, staff is seeking direction on whether Ordinance 708 should be revisited, specifically regarding the 300-foot distance requirement between mobile food trucks and between mobile vendors and brick-and- mortar food businesses. The ordinance may be revised depending on Council's input, and any proposed changes would go through the Planning Commission before returning to Council for final approval.
No motion was required, but 4 of the 5 City Council members agreed to leave the Ordinance as is.
2. Accept Notice of Completion and authorize release of retention funds in the amount of $23,916.98 to VSS International, Inc. for the Tehama Street Rehabilitation Project.
Presented by Public Works Director, Eli Stanley. The Tehama Street Rehabilitation Project has been completed, inspected, and approved by City staff. Staff recommends that the City Council accept the Notice of Completion, authorize its filing with the Tehama County Clerk and Recorder, and approve the release of $23,916.98 in retention funds to VSS International, Inc. The project remained within budget and under the authorized change order limit, with a final cost of $478,339.55.
Mayor Snow asked about a low spot that was pooling water. City engineer, Robin, clarified it was due to the city sprinklers, but that they will monitor that area.
Councilor Hargens moved to approve accept and direct the Public Works Director to sign the Notice of Completion, and authorize City Clerk to file notice with the Tehama County for recording; and authorize the release of retention funds to VSS International, inc. in the amount of $23,916.98; Councilor Demo seconded the motion.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-c
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
3. Accept Notice of Completion and authorize release of retention funds in the amount of $29,135.32 to VSS International, Inc. for the Almond and Fig St. Rehabilitation Project.
Presented by Public Works Director, Eli Stanley. The Almond and Fig Street Rehabilitation Project has been completed, inspected, and approved by City staff. Staff recommends that the City Council accept the Notice of Completion, authorize its filing with the Tehama County Clerk and Recorder, and approve the release of $29,135.32 in retention funds to VSS International, Inc. The final project cost was $582,706.43, remaining within the approved budget and change order limits.
Councilor Demo moved to approve accept and direct the Public Works Director to sign the Notice of Completion, and authorize City Clerk to file notice with the Tehama County for recording; and authorize the release of retention funds to VSS International, Inc. in the amount of $29, 135.32; Councilor Valerio seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
4. Approve plans and specifications and authorize staff to solicit bids for the Toomes Avenue Waterline Infill Project.
Presented by Public Works Director, Eli Stanley. Staff recommends that the City Council approve the plans and specifications and authorize the solicitation of bids for the Toomes Avenue Waterline Infill Project, which involves installing approximately one mile of new water main to close a gap in the City's distribution system. The project is funded through a state grant under the Small Community Drought Relief Program, and staff will return to Council with a construction contract recommendation after evaluating submitted bids.
Councilor Hargens moved to approve plans and specifications; and authorize staff to solicit bids for the Toomes Avenue waterline infill project; Councilor Valerio seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
5. Award and authorize the City Manager to sign a 3-year janitorial contract for janitorial services with Aguilar Cleaning Services.
Presented by Public Works Director, Eli Stanley. The City's current janitorial services contract expires on July 31, 2025. In preparation, staff issued a Request for Proposals and received seven submissions, three of which met all minimum requirements. After evaluating the proposals based on cost, experience, scope, and service approach, staff recommends awarding the new three- year janitorial services contract with two optional one-year extensions to Aguilar Cleaning Services, who provided the best overall value. Funding for janitorial services has been included in the Fiscal Year 2025/2026 budget.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-c
oract for janitoria series with gular Ceaning Serial a per i Valerio seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
6. Approve agreement with Tehama County Solid Waste Management Agency for temporary use of the city property for monthly Household Hazardous Waste Collection Events.
Presented by City Manager, Brant Mesker. The Tehama County Solid Waste Management Agency plans to host monthly Household Hazardous Waste (HHW) collection events in Corning to improve local access to proper hazardous waste disposal. The City of Corning has agreed to temporarily allow use of its Park and Ride lot for these events from July 1 through December 31, 2025. The Agency will handle all event logistics, costs, and regulatory compliance, while the City will provide notifications of any issues. Either party may end the agreement with 30 days' notice.
This temporary use will continue until a permanent HHW facility is established in the area.
Councilor Demo moved to approve the Agreement between the City of Corning and the Tehama County Solid Waste Management Agency for the temporary use of City-owned property- commonly known as the "Park and Ride" lot on Third Street-for monthly Household Hazardous Waste (HHW) Collection Events; and Authorize the City Manager to sign and execute the Agreement; Councilor Valerio seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
7. Approve contract with Lechowicz & Tseng Municipal Consultants to conduct a water and sewer rate study in the amount not to exceed $50,000.
Presented by City Manager, Brant Mesker. The City has faced ongoing concerns with its Water and Sewer funds, highlighted again during the 2025/2026 budget process. While past rate increases were approved, they did not fully account for future operational and infrastructure needs. To address this, the City plans to hire a professional consultant to conduct a comprehensive Water and Sewer Rate Study. The consultant will help determine appropriate rates, assist with implementation, and guide the City through the required Prop 218 public Councilor Demo moved to authorize City Manager to sign a contract with Lechowicz & Tseng municipal consultants to conduct a water and sewer rate study in the amount not to exceed $50,000; Councilor Hargens seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-c
8. Approve agreement between the City of Corning and Corning Union Elementary School District for School Resource Officer services.
Presented by Police Chief, Craig Bassett. The Corning Elementary School District has requested the assignment of a School Resource Officer (SRO) from the Corning Police Department to serve all district campuses. A proposed three-year agreement, starting with the 2025/2026 school year, would fund the promotion of a trained Community Service Officer to the SRO position through a Memorandum of Understanding. The SRO will support campus safety and foster a positive learning environment. The District will cover the officer's salary and benefits, totaling $88,852.79 in Year One, $92,721.32 in Year Two, and $96,806.10 in Year Three.
Snow moved to approve the School Resource Officer job description; approve the amended position allocation list by adding one new full time school resource officer allocation; approve the memorandum of understanding between the City of Corning Police Department and the Corning Elementary School District for School Resource Officer (SRO) and funding for three years, through the end of the 2027/2028 school year; and recognize the revenue and make the required budget appropriations for the addition of the School Resource Officer; Councilor Demo seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
9. Approve the purchase of one new 2025 Police Interceptor from Napa Ford.
Presented by Police Chief, Craig Bassett. Due to ongoing delays in acquiring Ford Police Interceptors, the Corning Police Department identified an available vehicle at Napa Ford that meets its needs. Funding for one new patrol vehicle and upfitting was approved in the 2025/2026 budget. To expedite the purchase, staff recommends waiving the formal bid process under the City's Purchasing Policy, as the vehicle is immediately available and reasonably priced. The total cost of the vehicle is $62,122.91, and the remaining budget will cover upfitting to integrate the vehicle into the fleet.
Snow moved to approve that City Council determines that this purchase is exempt from the city's purchasing policy per section 3.12.082 a-6 of the Corning Municipal Code; and authorize the City Manager to sign necessary purchasing documents for one new ford police interceptor without going out for formal bid, for a total cost of $62,122.91; Councilor Demo seconded the motion.
Ayes: Snow, Demo, Lomeli, Valerio, and Hargens
Absent: None
Abstain/Opposed: None
Result: Motion was approved by a 5-0 vote
K. ITEMS PLACED ON THE AGENDA FROM THE FLOOR: None
L. COMMUNICATIONS, CORRESPONDENCE, AND INFORMATION: None M. REPORTS FROM MAYOR AND COUNCIL MEMBERS:
Demo: Attended a Senior Center meeting, and everything is going well. The Senior Center is looking to hire a coordinator to plan events for Senior as well as fundraisers. There will be more events coming and asks the community to attend the events and support the Senior Center.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-c
Lomeli: No meetings.
Valerio: The 78' Annual Corning Olive Festival & Car Show will be October 11, 2025 at Corning Community Park and Lennox Fields. The Chamber of Commerce will be holding a meeting next month.
Hargens: Attended a Tehama County Landfill meeting. She also attended the ice cream social at the Senior Center.
Snow: Will be attending the CVFD family picnic.
in the dunk tank.
N. ADJOURNMENT: 6:53pm
Attest:
City Clerk, Rubi Ordaz
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-2d
CORNING
CITY OF CORNING
SPECIAL
CITY COUNCIL MEETING MINUTES
WEDNESDAY, JULY 30, 2025
CITY COUNCIL CHAMBERS
794 THIRD STREET
A. CALL TO ORDER:
The meeting was called to order at 4:30 p.m. by Mayor Snow.
B. ROLL CALL:
Councilmembers present:
Staff members:
Eli Stanley
Benjamin Mierzwak
Christina Meeds
C. PLEDGE OF ALLEGIANCE: Led by the City Manager.
D. INVOCATION: Led by Councilor Hargens
E. PROCLAMATIONS, RECOGNITIONS, APPOINTMENTS, PRESENTATIONS: None F. PUBLIC COMMENTS AND BUSINESS FROM THE FLOOR: No audience members.
G. REGULAR AGENDA:
1. Request City Council direction on extension of pool season to August 28, 2025.
Presented by City Manager, Brant Mesker. Staff has had requests to extend the pool season like in years past. This would require to run on a different schedule to be able to safely operate. The modified schedule would allow for lap swim, water aerobics, lifeguard breaks, and evening swim on Tuesday and Thursdays as well as Saturday day swim.
Councilor Valerio would like a rough estimate on how many people will be attending during the extended time. This would be data to look at next year to determine if it is worthwhile to take on the cost to operate.
Councilor Demo moved to authorize the City Pool to remain open through August 28, 2025 following the aforementioned schedule; and directed staff that there is no fee; Councilor Hargens seconded the motion.
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-2d
Ayes: Snow, Demo, Valerio, and Hargens
Absent: None
Abstain/Opposed: Lomeli
Result: Motion was approved by a 4-1 vote
K. ITEMS PLACED ON THE AGENDA FROM THE FLOOR: None
L. COMMUNICATIONS, CORRESPONDENCE, AND INFORMATION: None M. REPORTS FROM MAYOR AND COUNCIL MEMBERS: None
N. ADJOURNMENT: 4:44pm
Attest:
Rubi Ordaz, City Clerk
THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER Item No.: G-3
CITY OF
CORNING
MEMORANDUM
TO: HONORABLE MAYOR & COUNCIL
FROM: Lori Sims
Accounting Technician
DATE: August 7, 2025
SUBJECT: CASH DISBURSEMENT DETAIL REPORT FOR COUNCIL MEETING:
Tuesday, August 12, 2025
PROPOSED CASH DISBURSEMENTS FOR YOUR APPROVAL CONSIST OF THE FOLLOWING:
A. Cash Disbursements Ending 07-31-2025 $355,158.54
B. Cash Disbursements Ending 08-07-2025 $43,683.95
GRAND TOTAL $398,842.49
REPORT.: Jul 31 25 Thursday CITY OF CORNING PAGE:
UN....: Jul 31 2 Time: 15:14
un By.: LORI SIM Check Listing for 07-25 thru 07-25 Cot absen 0025 Arount.: 1020 Check Check Vendor
Number Date Amount Invoice # Description
...-
039549 07/21/25 DEVELOPMENT COMPLIANCE SO 1300.00 25-094 PROF SCS-BLD& SAFETY (7/14/25-7/20/25 039550 07/21/25 GAYO2 GAYNOR TELESYSTEMS, INC 2390-69
SWA351624
Check Total.. 3590.69
039551 07/21/25 GRE06 GREG'S HEATING & A/C 1480.00 27475 BLD MAINT-LIBRARY 039552 07/21/25 HOL04 HOLIDAY MARKET #32 436.80 003204763 MAT & SUPPLIES- 039553 07/21/25 IMAO2 IMAGE TREND 5350.00 INV117219 COMP/EQUIP/SOFT-FIRE 039554 07/21/25 PAC29 PACE ANALYTICAL SERVICES, 05.0 25280525: PROF SCS AT DEPT
39.3 252805254
Check Total 344.30
039555 07/21/25 PGE01 PG&E 46746.37 250710 Electricity General City- 039556 07/21/25 PGEO9 PG&E 234.56 250715 ELECT-STONEFOX L&L-Z1, D2 039557 07/21/25 PGEZA PG&E 55.48 2500715 ELECT-BLUE HERON CT 039558 07/21/25 RIVOZ RIVERVIEW INTERNATIONAL 141.46 197180 VEH OP/MAINT- 039559 07/21/25 SCPOO SCP DISTRIBUTORS LIC SN136784 MAT & SUES BOOL - 930. 33 SN136982C
Check Total..: 4213.97
039564 07/22/25 ATT13 AT&T 723.18 250711 COMMUNICATIONS -DISPATCH 039565 07/22/25 COROT CORBIN WILLITS SYSTEMS, I 876.55 000C50715 EQUIP MAINT-FINANCE 039566 07/22/25 FEROZ FERGUSON WATERWORKS #1423 1393.53 1898723 MAT & SUPPLIES-WTR 039567 07/22/25 GAYO2 GAYNOR TELESYSTEMS, INC 5811.88 46293 CCTV SECURITY CAMERA SYSTEM-DISPATCH 039568 07/22/25 GLADO GLATFELTER PUBLIC ENTITIE 701. 30033513 1993. 30033713
Check Total..........: 78694.43
039569 07/22/25 H0M03 HOME DEPOT 2216.89 250721 CREDIT CARD CHARGES- 039570 07/22/25 K0E01 KOEFRAN 250.00 666040 PROF SVCS-ACO 039571 07/22/25 PAC29 PACE ANALYTICAL SERVICES, 105.00 252805338 PROF SVCS-WTR DEPT 039572 07/22/25 PITO1 PITNEY BOWES 186.29 310731026 RENT/LEASES-FINANCE 039573 07/22/25 SCH01 LES SCHWAB TIRE CENTER 1327.73 00552508 VEH OPR/MAINT-POLICE 039574 07/22/25 UNDO1 UNDERGROUND SERVICE ALERT 1181.47 202511371 USA SERV ALERTS-STR MAINT 039575 07/22/25 WEL06 WELLS FARGO VENDOR FINANC 1658.90 503508370 COMMUNICATIONS- 039578 07/23/25 COMO1 COMPUTER LOGISTICS, INC 3720.00 86399 EQUIP MAINT- 039579 07/23/25 EWIOO EWING 1010.14 26870192 MAT & SUPPLIES-PARKS 1068.12 26903840 MAT & SUPPLIES -PARK:
Checktotal.: ***2078-26
039580 07/23/25 TEHOB COUNTY OF TEHAMA 60.00 07232025 PROF SVCS- 039582 07/25/25 AQUOO AQUA-METRIC SALES COMPANY 863.29 0109408 WIR METER REPLAC-WTR CAP IMPROV 039583 07/25/25 CORZA TERESA LAMB 75.00 42353 MAT & SUPPLIES-REC 039584 07/25/25 EST01 ESTES, LISA 45.00 20250724 TRAINING/EDUCATION-POLICE 039585 07/25/25 G1O02 GLOBAL OFFICE, INC. 237.14 GN16660 EQUIP MAINT- 039586 07/25/25 HOLO4 HOLIDAY MARKET #32 27.07 003201518 MAT & SUPPLIES-POOL 039587 07/25/25 INFOO INFRAMARK, LLC 78663.33 154688 PROF SVCS- 039588 07/25/25 LAMOS LAMB UNLIMITED GENERAL EN 453.75 440 MACH EQUIP-STR MAINT 039589 07/25/25 PAC29 PACE ANALYTICAL SERVICES, 219:30 25280542 25280542
.. . .
Check Total..... ....: 684.30
039590 07/25/25 QUIO2 QUILL CORPORATION 648.44 44881768 OFFICE SUPPLIES-
18.41 44881947 OFFICE SUPPLIES-DISPATCH
226.22 44977133 OFFICE SUPPLIES-DISPATCH
113.51 44997155 OFFICE SUPPLIES-FINANCE
Check Total...: 1006-50
039594 07/25/25 MIDOG BARAJAS, JULIAN 845.75 INVO001 BLD MAINT-POLICE REPORT Sul 31 25 Tue 15:24 CITY OF CORNING PAGE:
RUN.. Jul 31 25 ash Disbursement Detail Repor
neck Listing for 07-25 thru 07-25 Bank Account.: 102 CTu.: COR Check Check endo Net
Number Date Jumbe Name Amount Invoice# Description
3959 07/28/25 NAPO3 NAPA VALLEY FORD LINCOLN 62122.91 24086 VEN REPLAC-CAP PROV 039596 07/28/25 COMO1 COMPUTER LOGISTICS, INC 4520.00 36490 COMPUTER PORCELACE 1428.99
Check Iotal 5948.99
039597 07/28/25 NOR47 NORTHSTAR 7995.50 84020 PROF SVCS- 039598 07/28/25 PGE01 PG&E 189.50 250724 ELECT-CORNING COMMUNITY PARK 039599 07/28/25 PGE2B PG&E 11511.41 250724 ELECT - WWTP 039600 07/28/25 SPOO SCP DISTRIBUTORS LIC 2153.32 SN137262 MAT & SUPPLIES-WTR 4546.03 SN137336 MAT & SUPPLIES-POOL
-580.00 SN137433C MAT & SUPPLIES-POOL
-455.00 SN137434C MAT & SUPPLIES-WTR
Check Total. ....: 5664.35
039601 07/28/25 UNDO1 UNDERGROUND SERVICE ALERT 399.20 113715 USA SERV ALERTS-STR MAINT 039602 07/29/25 ATTO2 AT&T 129.97 23821365 COMMUNICATIONS- 039603 07/29/25 ATT15 AT&T MOBILITY 1245.07 250719 COMMUNICATIONS - 039604 07/29/25 CAL35 CALIFORNIA BUILDING STAND 103.60 250630 SB1473/ BLDG & SAFETY 039605 07/29/25 COP01 COPWARE, INC. 115.00 250729 TRAINING/ED -POLICE 039606 07/29/25 CORO8 CORNING LUMBER CO INC 432.74 250725 MAT & SUPPLIES- 039607 07/29/25 DOW01 DOWN RANGE 136.56 781299 UNIFORMS/CLOTH-POLICE 039608 07/29/25 NAPOL NAPA AUTO PARTS 1120.36 250725 VAH OP/MAINT- 039609 07/29/25 SOCO3 SOCAL WATER PRO LLC 6000.00 250231 PROF SVCS- 039610 07/30/25 ADPOO ADP, INC. 567.04 696215603 PROF SVCS-FINANCE 039611 07/30/25 DEVO1 DEVELOPMENT COMPLIANCE SO 1300.00 25-101 PROF SVCS-BLD & SAFETY (7/21/25-7/27/25) 039612 07/30/25 GRAO2 GRAINGER, W.W., INC 46.14 958913496 BLD MAINT-BLD MAINT 039613 07/30/25 PET03 PETTY CASH 200.77 250729 PROF SVCS- 039614 07/30/25 SCHO1 LES SCHWAB TIRE CENTER 1502-22 90553350 EH OP/MAINT 055343 EH OP/MAINT-POLIC
Check Total... 1730.66
039615 07/30/25 VESOO VESTIS GROUP, INC. 101-520 901302 MAT & SUPPLIES-BLD MAINT 906674 MAT & SUPPLIES-BLD MAINT
103.52 912255 MAT & SUPPLIES-BLD MAINT
103.52 917649 MAT & SUPPLIES-BLD MAINT
103.52 922996 MAT & SUPPLIES-BLD MAINT
Check Total... $17.60
039616 07/30/25 WCPOO WEST COAST PAPER CO INC 350.33 41417€ MAT & SUPPLIES 41417€ AT & SUPPLIES
Check Total. 509.09
039617 07/31/25 |C132 ARMANDO CHAVEZ-PANO 50.00 000C50701 MO CUSTOMER REFUND FOR CHAO129 039618 07/31/25 IM169 ALYSSA MCMILLAN ....23.13 000C50701 MO CUSTOMER REFUND FOR MCM0007 Cash Account Total...:
Total Disbursements.....:
REPORT.: Aug 07 25 Thursday CITY OF CORNING PAGE:
RUN.. Time: 10:25 ish Disbursement Detail Repor
eck Listing for 08-25 thru 08-25 Bank Account.: 10 CTL.: COR Check Check
Number Date Amount Invoice # Description
. . . .
039619 08701/25 CoRD9 CORNING CHAMBER OF COMMER 1000.00 000C508011 EngChamberComm. Economic 039620 08/01/25 NELOO NELSON, JEFFREY NEIL 54.70 000C508011 PROF SVCS-FIRE DEPT 039621 08/01/25 OCH01 ALEJANDRA OCHOA 4655.00 000C508011 JANITORIAL SERVICES- 039622 08/01/25 SCH16 SCHLERETH, DAYMON WAYNE 104.70 000C508011 PROF SVCS-FIRE DEPT 039623 08/05/25 AIROO AIRGAS USA, LIC 102.74 551845533 MAT & SUPPLIES-FIRE 039624 08/05/25 ALVOO ALVAREZ, CARLOS 250.00 250804 REC INSTRUCTOR-REC (FLAG FOOTBALL COORDINATOR) 039625 08/05/25 BUTIO BUTTE COLLEGE 52.70 2889 TRAINING/ED-POLICE 039626 08/05/25 CUROO CURIEL, EDUARDO 534.00 20250804 TRAINING/ED-POLICE 039627 08/05/25 DM001 DM-TECH 119.90 202508011 COMMUNICATIONS -GEN CITY 039628 08/05/25 FIR16 FIRST NATIONAL BANK OMAHA 228.36 250729 CREDIT CARD CHARGES- 039629 08/05/25 FIRZO FIRST NATIONAL BANK OMAHA 219.71 250729 CREDIT CARD CHARGES- 039630 08/05/25 FIR22 FIRST NATIONAL BANK OF OM 756.00 250729 CREDIT CARD CHARGES- 039631 08/05/25 GRA02 GRAINGER, W.W.. INC 142.96 959498138 MAT & SUPPLIES- 039632 08/05/25 HUNO3 HUNTERS SERVICES INC. 375772 PEST/NEED/TREE SPRAYING - (JUNE-PEST 375823 NEED/TREE SPRAYING- (JUNE-WEED
377800
645.75 377851
Check Total.... 3208.16
039633 08/05/25 LNC01 IN CURTIS & SONS 301.70 INV973756 SAFETY ITEMS-FIRE 039634 08/05/25 MEYOO MEYER'S POLICE K-9 TRAINI 400.00 2478 K9 PROGRAM-POLICE (JULY) 039635 08/05/25 PAC29 PACE ANALYTICAL SERVICES, 239.30 252805592 PROF SVCS-WTR DEPT 039636 08/05/25 PATO2 PATTERSON ELECTRIC, INC. 9975.00 7740 BLD MAINT-PARKS 039637 08/05/25 PGE04 PG&E 1533.43 250729 Transpfacility- 039638 08/05/25 PGE2A PG&E 241.78 252807 ELECT MOON PICASSANDRA, SALADO LET & TOOMES AVE 145.29 252807A
.....
Check Total... 387.07
039639 08/05/25 PON10 PONCI'S WELDING 105.22 82217 BLD MAINT-PARKS 039640 08/05/25 SCH01 LES SCHWAB TIRE CENTER 17.92 00553517 VEH OP/MAINT- 039641 08/05/25 TEH11 TEHAMA CO TAX COLLECTOR 609.22 250804 TAXES -AIRPORT 039642 08/05/25 VALO7 VALLEY VETERINARY CLINIC, 271.86 794907 ROF SVCS-AC 252.70 795532 9 PROGRAM-POLIC
Check Total..........: 524.56
039643 08/05/25 VAL11 VALLEY PACIFIC PETROLEUM 3629.96 25-905198 MAH MATES 4976.11 25-905199
578.56 25-905200 VEH OP/MAINT-FIRE
81.20 25-905201 VEH OP/MAINT-BLD & SAFETY
Check Total...: 265.8
039644 08/05/25 WCPOO WEST COAST PAPER CO INC 103.33 14145262 MAT & SUPPLIES- 039645 08/07/25 CHI06 CHICO POWER EQUIPMENT 69.23 533895 MAT & SUPPLIES- 039646 08/07/25 COR11 CORNING SAFE & LOCK 10.78 1090 MAT & SUPPLIES-BLD MAINT 039647 08/07/25 DEV01 DEVELOPMENT COMPLIANCE SO 1300.00 25-109 PROF SVCS-BLD & SAFETY (7/28/25-8/3/25) 039648 08/07/25 JJAOO JJACPA INC 3475.00 0995 ACCT SOFTWARE-FINANCE 039649 08/07/25 RADO2 THE RADAR SHOP 493.25 RS-13470 PROF SVCS-POLICE 039650 08/07/25 SEI01 SEILER, ROY R., CPA 1008.00 30628 PROF SVCS-FINANCE 039651 08/07/25 TANOO I AND S DVBE, INC. 1247.58 25-1926 MAT & SUPPLIES-STR 039652 08/07/25 TH001 THOMES CREEK ROCK CO 1298.60 250731 MAT & SUPPLIES- Cash Account Total......: 3683.9
--....
Total Disbursements.: 43683.95
========30=
Item No.: G-4
ate..: Aug 7, 202 CITY OF CORNIN
ime..: 10:32 a IEW BUSINESSES FOR CITY COUNCI
Run by: LORI SIMS Group: WTFMBM
Address CITY/STATB/ZIP Business Desc Bus Start Date
----
TEHAMA AVE #1 HANDYMAN SERVICES-WELDING REPAIRING, PEN 07/23/25 MACK'S SNACKS VENDING MACHINE ® CORNING H.S.
PIBRSON MBCHANICAL 588 INSTALLING, REPAIRING, REPLACING AIR 08/01/25 RAMSAY SIGNS SE 74TH AVE PORTLAND, OR 97206 08/01/25
VALE RESTORAIORNO 2A69S CONSTRUCTON RED BLUFF, CA 9608( STRUCTIONAL, COACH FOR TRACHERS IN THE 07/23/25 CONSTRUCTION YUBA CITY, CA 9599: REMODBLING HOUSE IN CORNING Item No.: G-5
CITY OF CORNING
TREASURER'S REPORT
JULY 2025
AGENCY BALANCE RATE
Local Agency Investment Fund $ 17,275,852.36 4.40%
Respectfully submitted:
Laura. Calking
Laura L. Calkins
City Treasurer
Item No. : G-6
CITY OF
CORNING
HOME OF MEMORANDUM
TO: Honorable Mayor and Council members
FROM: Khrystie Shoemaker
Assistant Finance Director
DATE: August 7, 2025
SUBJECT: July 2025 wages & salaries total for the
Tuesday August 12, 2025, Council Meeting
Disbursements for your approval consist of the following:
A. Payroll Date 07-10-2025 $ 221,978.91
B. Payroll Date 07-24-2025 $ 207,549.98
c. July end of the month p/r liabilities $ 66,560.95
GRAND TOTAL $ 496,089.84
Item No.: G-7
CORNING Monthly Permit
07/01/2025 - 07/31/2025
Permit # Permit Date Main Status Permit Type Project Cost 25177 7/31/2025 Waiting for Building $30,584
Information/Pl
25176 7/30/2025 approved " Electrical $1,000
FEES DUE "
25175 7/30/2025 ISSUED Signs $3,000
25174| 7/29/2025 Waiting for HVAC $7,863
Information/Pl
ans
25173 7/29/2025 ISSUED Demo $5,000
25172 7/29/2025 ISSUED Solar $21,000
25171| 7/29/2025 ISSUED Electrical $1,800
25170 7/29/2025 ISSUED Electrical $1,800
25169 7/28/2025 Under Review Building $70,000
25168 7/25205ISUED Roof $4,000
25167 7/25/2025 approved" Demo $10,000
FEES DUE "
25166 7/25/2025 Online Public Works $50,000
Application
Page: 1 of 2
Item No.: G-7
25165 7/24/2025 ISSUED Solar $3,500
25164 7/22/2025 ISSUED HVAC $11,625
25163 7/21202IED Mechanical $25,226
25162 7/15/2025 Finaled Building $2,800
25161 7/13/2025 ISSUED Signs $6,000
25160| 7/9/2025 HOLD (see Public Works $0
25159 7/8/2025 ISSUED HVAC $7,526
25158 7/7/2025 ISSUED HVAC $3,000
25157 7/7/2025 ISSUED Roof $7,000
25156 7/3/2025 ISSUED ReModel $30,000
25155 7/3/2025 Duplicate $0
$302,724
Total Records: 23 8/1/2025
Page: 2 of 2
Item No.: G-8
INFRAMARK
WATER INFRASTRUCTURE OPERATIONS
CITY OF CORNING WASTEWATER
OPERATIONS SUMMARY REPORT
July 2025
Below is a summary of the monthly operations report that will be available for review in August 2025.
• Completed monthly reports.
• Held staff meeting to discuss facility operations and issues. • Held daily safety tailgate meetings.
• Inspected eyewash stations and emergency showers.
• Calibrated SO3 analyzer.
• Inspected all fire extinguishers.
• Exercised emergency generator.
• Submitted ESMR/DMR report to Regional Board.
INFRAMARK
WATER INFRASTRUCTURE OPERATIONS
• Completed monthly facility inspection.
• Completed inspections on collection system trouble spots. • Public Works on-site to repair broken wash water lines on Southeast side of oxidation ditch and at the North clarifier.
• Collected annual biosolids for CAM 17 and % moisture testing for Recology landfill requirements to accept dried sludge.
• Patterson Electric on-site to troubleshoot thickener pump. • Northstate Electric on-site to replace thickener pump. • Re-installed motor on TWAS thickener pump (Returned to service 7/25/25).
Domestic flow monthly average = 0.603 MGD
ITEM NO: G-9
CONSIDER WAIVER OF SPECIAL
EVENT PERMIT FEE FOR THE
CORNING CANDLELIGHT WALK TO
BE HELD ON OCTOBER 8, 2025
August 12, 2025
TO: HONORABLE MAJOR AND COUCILMEMBERS
FROM: BRANT MESKER, CITY MANAGER M
ELIJAH STANLEY, PUBLIC WORKS DIRECTORES
SUMMARY:
Staff received a request from Jennifer Moniz, representing Empower Tehama, for City Council to consider approving a waiver of the special event permit fee for the upcoming Corning Candlelight Walk. This annual event is held to honor the resilience of domestic violence survivors and to remember those who have lost their lives to domestic violence. The 2025 Candlelight Walk is scheduled to take place on October 8, 2025 at 7:00pm.
BACKGROUND:
Empower Tehama has successfully hosted this annual event in the City of Red Bluff for the past 15 years and is now seeking to expand the tradition to the City of Corning. The proposed event will include a brief ceremony in front of the Corning Library, followed by a short commemorative walk around the block, beginning and ending in front of the Library. City staff respectfully requests that the Council consider waiving the $235 special event permit fee at the request of the event organizer.
RECOMMENDATION:
MAYOR AND CITY COUNCIL:
1) APPROVE WAIVER OF SPECIAL EVENT PERMIT FEE FOR THE CORNING CANDLELIGHT WALK EVENT TO BE HELD ON OCTOBER 8, 2025
Candlelight
WALK
CORNING LIBRARY LAWN • CORNING, CA
Join us for the evening to stand
together and honor those whose
lives have been impacted by
domestic violence.
OCTOBER 8, 2025 • 7:00 PM
740 Third St. • Corning, CA 96021
Music • Survivor Story • Refreshments
Candles and glowsticks will be provided at no cost.
All are welcome!
EMPOWER Domestic Violence Response
& Rape Crisis Center
Tehama
@EmpowerTehama • #EndDVTehama
24-Hour Crisis Hotline: 530-528-0226
www.empowertehama.org
ITEM NO.: I-1
PUBLIC HEARING: CONSIDER
ADOPTION OF RESOLUTION OF
NECESSITY TO AUTHORIZE
ACQUISITION OF EASEMENT OVER
PRIVATE PROPERTY THROUGH
EMINENT DOMAIN FOR THE
PURPOSE OF CONNECTING
UTILITIES (REQUIRES A 4/5TH VOTE)
August 12, 2025
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: BRANT MESKER, CITY MANAGER
CITY ATTORNEY, COLLIN BOGENER
SUMMARY:
This staff report is submitted for review by the City Council of the City of Corning in connection with a hearing to consider adoption of a Resolution of Necessity. Under California law, the City cannot acquire private property via eminent domain unless and/or until the Council has adopted a Resolution of Necessity by a four-fifths majority vote. The statutory requirement that a public entity adopt a Resolution of Necessity before initiating a condemnation action is designed to ensure that public entities will verify and confirm the validity of their intended use of the power of eminent domain prior to the application of that power in any one particular instance.
BACKGROUND:
Staff recommends that the Council adopt a Resolution of Necessity to authorize the acquisition by eminent domain of an easement across the real property commonly referred to as 3524 South Highway 99W, Corning, California 96021, identified as APN:
087-090-042 (the "Subject Property.") The Subject Property is owned by TravelCenters of America ("TA"), which closed its truck stop at the property earlier this year. The purpose of the easement is to connect public utilities to the west side of Interstate 5. Importantly, the easement will be underground, allowing the property owner to make use of the ground level of the Subject Property, so long as the City has the ability to access the utilities. The area in question was being used as a parking lot before TA stopped operations.
The Subject Property is more particularly described and depicted in the attachments to the Resolution of Necessity.
The hearing on the Resolution of Necessity affords the property owner the opportunity to address the City Council on the necessity of acquiring the Property for the Project.
However, the amount of compensation the property owner is entitled to receive should not be discussed at the hearing. That does not mean that negotiations for the acquisition of the Subject Property are at an end. If the City adopts the Resolution of Necessity, after the hearing, negotiations for the acquisition of the Subject Property may continue.
The City obtained an appraisal of the Subject Property from appraiser James Rickert, MAI. On July 23, 2025, the City sent the property owner a Government Code offer letter offering the full amount of that appraisal as just compensation for the proposed acquisition.
Representatives for TA have not been responsive to the formal offer letter or other attempts to discuss a purchase of the easement.
The lown is authorized to acquire the Subject Property for the Project pursuant to statutes including, but not limited to, California Constitution, Article 1, Section 19; the California Eminent Domain Law, Code of Civil Procedure Section 1230.010 et seq., including, but not limited to, sections 1240.010 through 1240.050 inclusive, and sections 1240.110, 1240.120, 1240.150, 1240.220, 1240.320, 1240.330, 1240.350, 1240.410, 1240.510, 1240.610, 1240.650, and 1240.660; Government Code section 37350.5; Streets & Highway Code section 10102; and other provisions of law.
To adopt a resolution of necessity, the Council must make the following Findings:
1. The public interest and necessity require the proposed project;
2. The property described in the resolution is necessary for the proposed project;
3. The proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and
4. That either the offer required by Section 7267.2 of the Government Code has been made to the owner(s) of record or the offer has not been made because the owner cannot be located with reasonable diligence.
The public interest and necessity do require the proposed easement because the development potential for properties on the west side of Interstate 5 is non- existent without public utilities. Moreover, the City Engineer has determined that the Subject Property is the only feasible location for the easement to exist. Also, the proposed location of the easement is on the southern location of the Subject Property and would allow the owner of the property to continue to utilize the area as a parking lot., creating the least private injury possible. Finally, the offer was made to the property owner, as required under Section 7267.2.
The City fully complied with the requirements of the California Environmental Quality Act (Public Resources Code sections 21000 et seq.) for acquiring the Subject Property through the Initial Study/Mitigated Negative Declaration for the Queen Olive Project, which determined that the utility crossing of Interstate 5 would have no environmental impact, an impact that would be less than significant, or an impact that can be mitigated to a level that would be less than significant. No further environmental review is required RECOMMENDATION:
1) CONDUCT A PUBLIC HEARING.
2) ADOPT THE RESOLUTION OF NECESSITY TO AUTHORIZE ACQUISITION OF AN EASEMENT OVER PRIVATE PROPERTY IDENTIFIED AS APN 087-090- 042 THROUGH EMINENT DOMAIN FOR THE PURPOSES OF EXTENDING UTILITIES TO THE WEST SIDE OF INTERSTATE 5 (Requires a 4/5th vote) RESOLUTION NO. 08-12-2025-01
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORNING TO DETERMINE
THE NECESSITY TO ACQUIRE PROPERTY BY EMINENT DOMAIN TO CONNECT UTILITIES TO THE WEST SIDE OF INTERSTATE 5; TO AUTHORIZE
COMMENCEMENT OF LITIGATION TO ACQUIRE PROPERTY BY EMINENT DOMAIN; AND TO SEEK AN ORDER OF PREJUDGMENT POSSESSION (CODE OF CIVIL PROCEDURE SECTION 1245.220)
Property Owner: TravelCenters of America
Property Address: 3524 South Highway 99W, Corning, CA 96021 APN:087-090-042
WHEREAS, the City of Corning proposes to acquire an easement over that portion of that certain real property located in the City of Corning, County of Tehama, State of California that is designated Assessors Parcel No. 087-090-042 as more particularly described and depicted in Exhibit A incorporated herein by reference (the "Subject Property") for the purposes of connecting public utilities through the easement to the west side of Interstate 5 ("Project");
WHEREAS, the Project will extend water and sewer utilities to the west side of Interstate 5, providing those services to community members. The utilities will travel under the Interstate, starting on the Subject Property, and ending on commercial property on the west side of Interstate 5.
WHEREAS, the City is vested with the power of eminent domain to acquire real property interests by eminent domain for the public use set forth herein in accordance with the California Constitution, Article 1, Section 19; the California Eminent Domain Law, Code of Civil Procedure Section 1230.010 et seq., including, but not limited to, sections 1240.010 through 1240.050 inclusive, and sections 1240.110, 1240.120, 1240.150, 0.2240500, 24v90 r soon 1240.220, 1240.320, 1240.330, 1240.350, 1240.410, 1240.510, 1240.610, 1240.650, and 1240.660; Government Code section 37350.5; Streets & Highway Code section 10102; and other provisions of law;
WHEREAS, the City fully complied with the requirements of the California Environmental Quality Act (Public Resources Code sections 21000 et seq.) for acquiring the Subject Property through the Initial Study/Mitigated Negative Declaration for the Queen Olive Project, determined that the utility crossing of Interstate 5 would have no environmental impact, an impact that would be less than significant, or an impact that can be mitigated to a level that would be less than significant. No further environmental review is required;
WHEREAS, the Subject Property was appraised by an independent real estate appraiser and an amount believed to be probable just compensation for the Subject Property was established by the City;
WHEREAS, a written offer for the full appraised value was mailed to the owner or owners of record for the Subject Property, pursuant to Government Code section 7267.2; WHEREAS, on July 23, 2025, the City mailed a Notice of Intention to Consider Adoption of a Resolution of Necessity ("Notice") for acquisition by eminent domain of the Subject Property. As required by Code of Civil Procedure section 1245.235, the Notice was mailed to all persons whose name(s) appear on the last County of Tehama Equalized County Assessment Roll as having an interest in the Subject Property, and to the addresses appearing on the Roll. The Notice advised the persons of their right to be heard on the matters referred to in the Notice on the date and at the time and place stated; WHEREAS, the Notice informed the owner of its right to appear and to be heard by the City Council on the following matters: (a) whether the public interest and necessity require the Project; (b) whether the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; (c) whether the Subject Property sought to be acquired is necessary for the Project; and (d) whether the offer required by section 7267.2 of the Government Code has been made to the owner(s) of record; and
WHEREAS, the hearing referenced in the Notice was held on August 12, 2025, at the time and place stated in said notice, and all interested parties were given an opportunity to be heard on the following matters:
A. Whether the public interest and necessity require the Project; B.Whether said Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; C. Whether the Subject Property is necessary for the Project; and D. Whether the offer required by Government Code section 7267.2 has been made to all owners of record.
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF CORNING DOES
HEREBY FIND, RESOLVE, AND DETERMINE AS FOLLOWS BY A VOTE OF FOUR- FIFTHS OR MORE OF ITS MEMBERS:
1. The recitals contained herein are true and correct;
2. The Subject Property is situated in the City;
3. The public interest and necessity require the Project;
4. The interests in the Subject Property described and depicted in Exhibit A sought to be acquired by eminent domain are necessary for the Project;
5. The Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury;
6. The City has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain to acquire the Subject Property, as well as any other matter regarding the right to take said Subject Property by eminent domain, including but not limited to, making the offer required by Government Code section 7267.2;
7. Insofar as any portion of the Subject Property has heretofore been appropriated for public use, the proposed use set forth herein constitutes a compatible use under Code of Civil Procedure section 1240.510 or alternatively a more necessary public use to which the Subject Property is appropriated pursuant to Code of Civil Procedure sections 1250.410, 1240.610, and 1240.650. The City is, thus, empowered to acquire the Subject Property for a compatible public use pursuant to Code of Civil Procedure section 1240.510 et seq., and a more necessary public use pursuant to Code of Civil Procedure section 1240.610 et seq.;
8. All environmental review required by law has been prepared and adopted; and
9. The City Attorney is hereby authorized to acquire in the name of the City the Subject Property described in this Resolution in accordance with the provisions of California Eminent Domain Law, to commence an action in eminent domain, to deposit the probable amount of just compensation with the State Condemnation Fund, to apply to the Superior Court for an order permitting the City to take immediate possession and make immediate use of the Subject Property for the Project, to take all necessary steps to acquire the Subject Property under the law, and to take such actions as he or she may deem advisable or necessary in connection therewith.
PASSED AND ADOPTED, by the City Council of the City of Corning, State of California on August 12, 2025, by the following vote:
COUNCIL MEMBERS
AYES:
NOES:
ABSTAIN:
ABSENT:
SIGNED: _
Robert Snow,
Mayor of the City of Corning
DATE: _
ATTEST:
1, Rubi Ordaz, duly appointed and City Clerk of the City of Corning, do hereby certify that the above is a true and correct copy of a Resolution passed and approved by the City Council of the City of Corning on the 12th day of August 2025.
Rubi Ordaz, City Clerk
ITEM NO.: J-1
APPROVAL OF GRANT FUNDS TO BE
USED TO REPAINT UTILITY BOXES
ON SOLANO STREET
August 12, 2025
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: BRANT MESKER, CITY MANAGER
CHRISTINA MEEDS, PLANNER I|
SUMMARY:
Staff applied for the Tehama County Arts Council, 2025 Community Grant for the sum of $500. The City of Corning was selected as one of this year's awardees. Staff will seek proposals from local artists to paint utility boxes along Solano Street as requested in the grant.
The funding in the amount of $500 has been received from the Tehama County Arts Council.
BACKGROUND:
In September of 2022 the Corning City Council approved a Public Art Program, within the previous program artists applied to improve the look of the local utility boxes along Solano Street. Some of the utility boxes are becoming faded and staff would like to see them updated.
RECOMMENDATION:
ACCEPT THE $500 ART GRANT AND APPROVAL OF THE PAINTING OF UTILITY
BOXES TO BE PAID FOR WITH THE GRANT FUNDS RECEIVED FROM THE TEHAMA COUNTY ARTS COUNCIL 2025 COMMUNTY GRANT.
ITEM NO.: J-2
AUTHORIZE STAFF TO EXECUTE THE
RENEWAL LEASE WITH STATE LANDS
COMMISSION FOR THE OUTFALL AND
BANK PROTECTION AT THE SACRAMENTO
RIVER
August 12, 2025
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: BRANT MESKER, CITY MANAGER
ELIJAH STANLEY, PUBLIC WORKS DIRECTOR O
Summary:
Staff requests approval to execute a 20-year renewal lease with the California State Lands Commission for continued use of State-owned sovereign land along the Sacramento River near Corning, supporting the City's wastewater treatment plant outfall and bank protection. The new lease combines two previous leases (Lease No. PRC 5001.9 for the outfall and Lease No. PRC 8076.9 for bank protection), with no changes to existing facilities or use.
Background:
The lease area is located in the Sacramento River, adjacent to APNs 091-030-73, -76, and 091-040-48. It includes an existing 18-inch-diameter outfall pipeline with four 10-inch diffusers that discharge treated effluent from the City's wastewater treatment plant, along with existing rip rap bank protection.
This new lease consolidates and replaces two existing leases:
• Lease No. 5001 - Outfall pipeline
• Lease No. 8076 - Bank protection
The renewed lease will be effective from August 21, 2025, through August 20, 2045, unless terminated earlier.
RECOMMENDATION:
MAYOR AND COUNCIL:
• AUTHORIZE THE CITY MANAGER TO EXECUTE THE RENEWAL LEASE WITH THE
STATE LAND COMMSION FOR THE OUTFALL AND BANK PROTECTION AT THE
SACRAMENTO RIVER
EXHIBIT A
LEASE 5001
LAND DESCRIPTION
A parcel of submerged lands lying adjacent to Lot 3 of Section 28, T24N, R3W, M.D.B.&M., as shown on Official Government Township Plat approved February 8, 1869, County of Tehama, State of California, more particularly described as follows:
A strip of land, 30 feet wide, underlying an existing 18-inch diameter effluent discharge pipeline with four 10-inch diameter diffusers and extending 40 feet waterward of the low water mark of the Sacramento River lying adjacent to that parcel described in the Grant of Right-of-Way recorded in Book 195 at Page 493, Official records of said County.
TOGETHER WITH all those lands lying immediately beneath any existing bank protection structure adjacent to those parcels described in Grant Deeds recorded June 30, 2014 as Document Number 2014006930, recorded October 29, 2010 as Document Number 2010012700 and recorded March 17, 2023 as Document Number 2023002121, Official Records of said County.
EXCEPTING THEREFROM any portion lying landward of the low water mark of the right bank of the Sacramento River.
Accompanying plat is hereby made part of this description.
END OF DESCRIPTION
Prepared 10/18/2024 by the California State Lands Commission Boundary Unit. 500900090005 LAND
ESSTONAL SURVEYOR
00000000 0000000000055E CALIFORNIA
NO SCALE
N
EXISTING
BANK -SAPPENE
PROTECTION
APN 091-040-048 SACRAMENTO RIVER
EASEMENT per Bk. 195, Pg. 493~ LEASE
-RHODE ISLAND AVE. AREA
APN 091-030-076
APN 091-030-073
EXHIBIT A
LAND DESCRIPTION PLAT
LEASE 5001, CITY OF CORNING CALIFORNIA STATE
TEHAMA COUNTY LANDS COMMISSION
NO SCALE SITE
N EXISTING
BANK SHORELINE T
PROTECTION
SACRAMENTO
APN 091-040-048
EASEMENT per Bk. 195, Pg. 493 LEASE RIVER
RHODE ISLAND AVE. AREA
APN 091-030-076
SHORELINE SHORELINE
APN 091-030-073
DOWNSTREAM OF WOODSON BRIDGE, NEAR CORNING
NO SCALE LOCATION EXHIBIT B
LEASE 5001
CORNING CITY OF CORNING
APN's: 091-030-73, -76
& 091-040-48
GENERAL LEASE -
SITE PUBLIC AGENCY USE
TEHAMA COUNTY
SITE
MAP SOURCE: USGS QUAD
THIS EXHIBIT IS SOLELY FOR PURPOSES OF GENERALLY DEFINING THE
LEASE PREMISES, IS BASED ON UNVERIFIED INFORMATION PROVIDED BY
THE LESSEE OR OTHER PARTIES AND IS NOT INTENDED TO BE, NOR
SHALL IT BE CONSTRUED AS, A WAIVER OR LIMITATION OF ANY STATE INTEREST IN THE SUBJECT OR ANY OTHER PROPERTY.
TS 10/18/2024
RECORDED AT THE REQUEST OF
AND WHEN RECORDED MAIL TO:
STATE OF CALIFORNIA
California State Lands Commission
Attn: Land Management Division
100 Howe Avenue, Suite 100-South
Sacramento, CA 95825-8202
STATE OF CALIFORNIA
OFFICIAL BUSINESS
Document entitled to free recordation
pursuant to Government Code Section
27383
SPACE ABOVE THIS LINE FOR RECORDER'S USE
A.P.N.: 091-030-73, -76 and 091-040-48
County: Tehama
A4663
LEASE 5001
This Lease consists of this summary and the following attached and incorporated parts:
Section 1 Basic Provisions
Section 2 Special Provisions Amending or Supplementing Section 1 or 3 Section 3 General Provisions
Exhibit A Land Description
Exhibit B Site and Location Map
SECTION 1: BASIC PROVISIONS
THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE LANDS COMMISSION (100 Howe Avenue, Suite 100-South, Sacramento, California 95825-8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise, and let to CITY OF CORNING, hereinafter referred to as Lessee, those certain lands described in Exhibit A hereinafter referred to as Lease Premises, subject to the reservations, terms, covenants, and conditions of this Lease.
MAILING ADDRESS:
City of Corning
Attn. Tiffany Jenkins
794 Third Street
Corning, CA 96021
LEASE TYPE:
General Lease - Public Agency Use
LAND TYPE:
Sovereign
LOCATION:
Sacramento River, adjacent to Assessor's Parcel Numbers 091-030-73, -76 and 091-040- 48, near Corning, in Tehama County, as described in Exhibit A; attached and by this reference made a part hereof.
LAND USE OR PURPOSE:
Use of an existing 18-inch-diameter outfall pipeline with four 10-inch-diameter diffusers and existing rip rap bank protection.
TERM:
20 years; beginning August 21, 2025; ending August 20, 2045, unless sooner terminated as provided under this Lease.
CONSIDERATION:
Public use and benefit, with the State reserving the right to set a monetary rent if the Commission finds such action to be in the State's best interest. Subject to modification by Lessor as specified in Paragraph 2.6 of Section 3 - General Provisions.
AUTHORIZED IMPROVEMENTS:
X_ EXISTING: 18-inch-diameter outfall pipeline with four 10-inch-diameter diffusers and rip rap bank protection.
_TO BE CONSTRUCTED: N/A
CONSTRUCTION MUST BEGIN BY: N/A
CONSTRUCTION MUST BE COMPLETED BY: N/A
LIABILITY INSURANCE:
$0
SURETY BOND OR OTHER SECURITY:
$0
SECTION 2: SPECIAL PROVISIONS
BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED, OR SUPPLEMENTED AS FOLLOWS:
1. External Inspections
a. Within six (6) months from the start date of the Lease and at least once every two (2) years thereafter, Lessee shall conduct an external inspection of the outfall system including the existing submarine outfall pipeline within the Lease Premises along with its diffuser ports and the soil cover condition to check for any exposure of the buried outfall pipeline. b. The inspection findings must be based, at a minimum, on photographs that document the external conditions of the outfall pipeline, diffuser ports, and soil cover.
c. Within sixty (60) days of each inspection completion, a report must be prepared that includes but is not limited to findings, photographs, and recommendations, including repairs (if applicable).
d. Within ninety (90) days of each inspection completion, Lessee shall provide Lessor with an affidavit, under penalty of perjury, signed by a duly authorized representative of Lessee, certifying (including but not limited to) the following:
i. The dates of inspection.
ii. The name of the diver or diving company.
ili. The inspection report (as referenced in Paragraph 1.c), including its title, date, and author/company.
iv. That if the outfall system is functioning properly and complies with all applicable rules and regulations.
v. Any observed deficiencies or non-compliance affecting the proper functioning of the outfall system, along with the proposed repairs and schedule to correct the deficiencies and bring the outfall system into compliance.
vi. Confirmation of repairs correcting deficiencies and achieving compliance, when required.
2. Integrity/Condition Assessment
a. Within six (6) months from the start date of the Lease and at least once every five (5) years thereafter, Lessee shall conduct an integrity/condition assessment, certified by a California registered Civil/Structural Engineer, of the existing submarine outfall pipeline (via internal inspection) and the existing rip rap (via visual inspection) within the Lease Premises to confirm their fitness for purpose and safe continued use.
b. The assessment findings must be based, at a minimum, on photographs that document the internal conditions of the outfall pipeline and the overall stability of the rip rap above the water.
c. Within sixty (60) days of each assessment completion, a report must be prepared and certified (stamped, signed, and dated) by a California- registered Civil/Structural Engineer (Engineer) that includes but is not limited to findings, photographs, and recommendations, including repairs (if applicable).
d. Within ninety (90) days of each assessment completion, Lessee shall provide Lessor with an affidavit, under penalty of perjury, signed by a duly authorized representative of Lessee, certifying (including but not limited to) the following:
i. The dates of inspection.
її. The name of the company providing the internal inspection. ili. The assessment report (as referenced in Paragraph 2.c), including its title, date, and the name of the Engineer certifying the report. iv. That if the integrity/condition of the outfall pipeline and the overall stability of the rip rap is in serviceable conditions, ensuring their fitness for purpose and continued use and compliance with all applicable rules and regulations.
v. Any observed deficiencies or non-compliance affecting the integrity/condition of the outfall pipeline and the overall stability of the rip rap, along with the proposed repairs and schedule to correct the deficiencies and bring them into compliance.
vi. Confirmation of repairs correcting deficiencies and achieving compliance, when required.
3. Inspections/Assessments following a Potentially Structurally Compromising Event:
Following circumstances that cause an elevated risk to affect the integrity of the lease facilities, including but not limited to a significant flood, tsunami or seismic event, Lessee shall conduct an external inspection and integrity/condition assessment within 60 days of the event. Within ninety (90) days of completing such external inspection and integrity/condition assessment, Lessee shall provide Lessor with an affidavit, under penalty of perjury, signed by a duly authorized representative of the Lessee, in a manner similar to that described in Paragraphs
1.d and 2.d.
4. Records Retention
Lessee shall maintain records as required in Paragraphs 1 and 2 for the duration of the Lease. Copies of such records shall be made available to Lessor within thirty (30) days of Lessor's request, at no cost to Lessor.
5. Emergency Notice: In the event of an emergency requiring immediate action to protect public safety or environmental health, Lessee shall mobilize reasonably necessary actions to mitigate and repair the needed infrastructure to secure safety. Following the work, Lessee shall contact Lessor at (562) 590-5201 and inform Lessor of the emergency and nature of the work conducted and provide information reasonably requested by Lessor regarding such work.
6. NPDES Permit: Lessee shall maintain a valid National Pollutant Discharge Elimination System (NPDES) permit throughout the term of the Lease.
7. Lessee agrees that the provisions of Section 3, Paragraph 11 shall also extend to the entire period of Lessee's unauthorized occupation of state-owned lands from February 1, 2025 through August 21, 2025, for the existing outfall pipeline with four diffusers previously under the unconsolidated Lease 5001.
8. Section 3, Paragraph 7.3 does not apply to this lease.
9. Lessee shall provide a quitclaim deed to the Lease interest of Lease 8076 prior to execution of this lease.
[Remainder of page intentionally left blank]
Section 3: General Provisions
Paragraph 1: Definitions
"Applicable Laws" are all local, state, and federal statutes, regulations, rules, codes (including building codes), ordinances, judgments, orders, notice requirements, and other requirements of governmental authorities pertaining to the use or condition of the Lease Premises and the conduct of Lessee's business thereon in effect as of the date of execution of this Lease or subsequently enacted and lawfully applied hereto.
"Damages" are all liabilities, demands, claims, actions, or causes of action whether regulatory, legislative, or judicial in nature; all assessments, levies, losses, fines, penalties, damages, costs, and expenses, including, without limitation: (i) reasonable attorneys', accountants', investigators', and experts' fees and expenses sustained or incurred in connection with the defense or investigation of any such liability, and (i) costs and expenses incurred to bring the Lease Premises into compliance with Applicable Laws, Environmental Laws, a court order, or applicable provisions of a Regulatory Agency. The term "Damages" also includes those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise.
"Environmental Laws" are any and all federal, state, or local environmental, health, or safety-related laws, regulations, standards, decisions of courts, ordinances, rules, codes, orders, decrees, directives, guidelines, permits, or permit conditions, treaties and conventions, currently existing and as amended, enacted, issued, or adopted in the future that are or become applicable to Lessee, and the Lease Premises with respect to: (a) the protection, preservation, or clean-up of the environment, wildlife, habitat, or natural resources; (b) the use, treatment, storage, transportation, handling, or disposal of Hazardous Materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, groundwater, or drinking water; or (e) the health and safety of persons or property.
"Hazardous Materials" are any chemical, substance, material, controlled substance, object, condition, waste, living organism, or combination thereof that is or may be hazardous to human health or safety or to the environment due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, Section 3 General Provisions Page 1 of 21 Form 51.16 (Rev. 4/24) carcinogenicity, mutagenicity, phytotoxicity, infectiousness, or other harmful or potentially harmful properties or effects, including, without limitation, tobacco smoke, petroleum and petroleum products, asbestos, radon, polychlorinated biphenyls (PCBs), and all of those chemicals, substances, materials, controlled substances, objects, conditions, wastes, living organisms, or combinations thereof that are now or become in the future listed, defined, or regulated in any manner by any Environmental Laws based on, directly or indirectly, such properties or effects.
"Improvements" are any modification, alteration, addition, or removal of any material and any other action that changes the condition of the Lease Premises from the natural state, whether situated above, on, or under the Lease Premises.
Improvements include any construction situated on or placement of material within the Lease Premises regardless of value.
"Lease" is this document together with all subsequent amendments and exhibits.
"Major Repairs" means any work that requires a permit or approval from other agencies, requires environmental review, or requires rebuilding or replacing any of the authorized Improvements).
"Mineral Resources" includes timber, crops, sand, oil, gas, hard rock minerals and other mineral deposits as defined in Public Resources Code section 6407. "Natural Resources" are all of the flora and fauna native to both the upland terrestrial, fresh water, coastal and marine ecosystems within, and adjacent to, the lease premises.
"Public Trust" means the constitutional, statutory, and common law doctrine providing the state's sovereign authority over the navigable waters of the state, including the tidelands and submerged lands underlying those waters that are held in trust for the benefit of all the people of the state and for purposes that include maritime or water-dependent commerce, navigation, fisheries, the preservation of lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation.
"Repairs" means work to maintain the Lease Premises and Improvements thereon in good, safe, and clean condition. Repairs are work that is minor in scope, do not require obtaining permits, approvals, or authorizations from other agencies, such as building permits, and do not require environmental review under State or Federal environmental laws.
Section 3 General Provisions Page 2 of 21 Form 51.16 (Rev. 4/24) Paragraph 2: Rent
2.1. Absolute Triple Net Lease. This Lease is an absolute triple net lease, meaning Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities, repairs, or other costs or obligations associated with the Leased Premises, except as expressly stated herein.
2.2. Payment of Rent. Lessee must pay rent annually, on or before each anniversary of this Lease unless this Lease specifies a different rent schedule. The first installment is due on the beginning date of this Lease or within 60 days of Lessor authorizing the Lease at a public meeting, whichever is later. Rent is due each year in advance. Should Lessee submit payments that are less than the full amount of rent due under this Lease, Lessor may provide a supplemental billing invoice. Rent will not be refunded or prorated if Lessee discontinues use of the Lease Premises during the term.
2.3. Place for Payment. All payments under this Lease must be submitted to Lessor's principal office as specified in this Lease. Lessee may contact Lessor's accounting staff for Lessor's current practices for payment by credit card or electronic fund transfer.
2.4. Courtesy Invoices. Lessor may send courtesy invoices to the address on file for Lessee at least thirty (30) days before a rent payment is due. Lessor's failure to, or delinquency in, providing invoices will neither excuse Lessee from paying rent nor extend the time for paying rent. If Lessor does not send a courtesy invoice, Lessee must submit rent in the amount of the prior year's rent when due and contact Lessor within thirty (30) days to determine the balance due.
2.5. Penalties and Interest. Penalties for late payments of any amounts due under this Lease and interest thereon are as provided in Title 2, California Code of Regulations section 1911(b). Timeliness of receipt of remittances shall be as provided in Title 2, California Code of Regulations section 1911(a).
2.6. Annual Adjustment of Rent. The rent specified in Section 1 of this Lease will be adjusted annually by the Consumer Price Index as specified in Title 2, California Code of Regulations section 1900(m) & (n) unless otherwise specified in this Lease.
2.7. Review of Non-Monetary Consideration. If rent is discounted or waived pursuant to Title 2, California Code of Regulations section 2003(e) (4), Lessor may review such determination at any time and set a monetary rental. Lessee shall be given at least thirty (30) days' notice prior to the date of the Commission Section 3 General Provisions Page 3 of 21 Form 51.16 (Rev. 4/24) meeting wherein the rent modification is considered, or thirty (30) days' notice prior to the effective date that the rent is changed, whichever provides more notice.
2.8. Periodic Rent Review. Lessor may modify the method, amount, or rate of consideration effective on each tenth anniversary of the beginning date of this Lease, in addition to the last two years of the Lease as provided in Provision 14.4 below. Lessor shall consider the factors provided in Title 2, California Code of Regulations section 2003(d) when determining whether a rent modification is appropriate and which rental method listed in section 2003(a) should apply.
Should Lessor fail to exercise such right effective on any tenth anniversary, it may do so on any one (1) of the next nine (9) anniversaries following such tenth anniversary, without prejudice to its right to modify rent on the next or any succeeding tenth anniversary of the beginning date. No such modification shall become effective unless Lessee is given at least thirty (30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered or thirty (30) days' notice prior to the effective date of the increase, whichever provides a greater notice period.
2.9. If Lessor elects to prepare an appraisal to establish a new rent, Lessee may, at its option, also provide a timely independent appraisal at its sole expense for Lessor's review and consideration. Prior to Lessee's contracting for such appraisal, Lessor and Lessee shall negotiate in good faith and agree upon the terms and conditions for such third-party appraisal, including but not limited to the highest and best use, appraisal methodology, and minimum appraiser credentials. Such appraisal shall be prepared in accordance with generally accepted and applicable appraisal standards as they are adopted from time to time by the Appraisal Standards Board of the Appraisal Foundation, and Lessor's Appraisal Guidelines.
2.10. Books and Records. Lessee must keep and maintain full and accurate accounting books and records of transactions from the Lease Premises in accordance with generally accepted accounting principles for at least the five (5) prior years. The accounting books and records kept and maintained by Lessee for audit purposes must include all records, receipts, journals, ledgers, and documents reasonably necessary to enable Lessor or its auditors to perform a complete and accurate audit of gross sales and exclusions from gross sales in accordance with generally accepted accounting principles. Lessee must also maintain an original receipt for the payment of taxes, assessments, or installments and deliver such to Lessor upon request.
Section 3 General Provisions Page 4 of 21 Form 51.16 (Rev. 4/24)
2.11. Report of Gross Income. On Lessor's request, Lessee must submit a Report of Gross Income on a form provided by Lessor for the prior five (5) years. This report together with supporting documentation (hereinafter collectively referred to as "Income Reports") must include all business operations located on or over the Lease Premises. The gross income of sublessees and all others generating income on the Lease Premises must be reported separately and with sufficient organization and detail so that Lessor can identify the source of all gross income generated on the Lease Premises.
2.12. Audits. On not less than ten (10) days' prior written notice to Lessee, Lessor may cause an audit to be made of the Income Reports and all of Lessee's records and accounting books necessary (in Lessor's judgment) to audit such items. Lessee will make all such books and records available for the audit at the Lease Premises or at Lessor's offices. If the audit discloses an underpayment of Rent, Lessee will immediately pay to Lessor the amount of the underpayment with "Interest" (as provided in Paragraph 2.5), which will accrue from the date the payment should have been made through and including the date of payment. If the audit discloses an underreporting of rent in excess of two percent (2%) of the reported Gross Income, then Lessee will also immediately pay to Lessor all reasonable costs and expenses incurred in the audit and in collecting the underpayment, including auditing costs and attorney fees. If the audit discloses an overpayment of Rent, Lessee will be entitled to a credit in the amount of the overpayment against the next rent payments).
Paragraph 3: Surety
3.1. Lessee to Obtain Surety. Lessee shall provide a surety bond or other security device acceptable to Lessor when required by Section 1 of this Lease. Such security shall be for the specified amount, name the State of California, California State Lands Commission, as the assured, and guarantee to Lessor the faithful observance and performance by Lessee of all the terms, covenants, and conditions of this Lease.
3.2. Lessor's Modification of Surety. Lessor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need for security. The surety bond or other security device may be increased: (i) if any additional Improvements or activities are authorized on the Lease Premises; (i) if Lessee modifies any existing Improvements such that the cost for removal of such Improvements is increased; (i) when a periodic rent Section 3 General Provisions Page 5 of 21 Form 51.16 (Rev. 4/24) review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease, (v) Lessor determines it is in the best interest of the state; (y) within the last two years of the Lease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prejudice to its right to modify the surety on the next fifth anniversary or as otherwise provided above. Lessor will provide at least thirty (30) days' notice prior to the date of the Commission meeting wherein the modification of the surety is considered, or thirty (30) days' notice prior to the effective date of the increase.
3.3. Lessee's Modification of Surety. Any security device required under this Lease must be maintained at all times during the Lease term. Lessee must first seek approval of Lessor before changing the surety holder or the type of security device used.
Paragraph 4: Insurance
4.1. Lessee Must Insure Lease Premises. Lessee must obtain and maintain in full force and effect during the term of this Lease comprehensive general liability insurance and property damage insurance against any and all claims or liability arising out of the ownership, use, occupancy, condition, or maintenance of the Lease Premises and all Improvements. The coverage limit must be no less than the amount specified in Section 1 of this Lease.
4.2. Insurance Policy Requirements. The insurance policy must identify the Lease by its assigned number. The coverage provided must be primary and non- contributing. Lessee must keep such policy current. Lessor must be named as a "certificate holder" or an "additional interest" on the policy. Lessee must provide Lessor with a current certificate of insurance at all times. At Lessor's request, Lessee must provide a full copy of the current insurance policy, along with any and all endorsements or other such documents affecting the coverage. Lessor will not be responsible for any premiums or other assessments on the policy.
4.3. Notice to Lessor. Lessee shall notify Lessor within five (5) business days if the insurance is canceled for any reason and shall act diligently to replace the insurance. Failure to timely replace the insurance may result in a default of the lease.
4.4. Modification. Lessor may require an increase in the amount of the insurance to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need. Insurance Section 3 General Provisions Page 6 of 21 Form 51.16 (Rev. 4/24) coverage may be increased: (i) if any additional Improvements or activities are authorized on the Lease Premises; (i) if Lessee modifies any existing Improvements or intensity of use; (il) when a periodic rent review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease; (v) Lessor determines it is in the best interest of the state; (vi)within the last two years of the Lease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prejudice to its right to modify insurance requirements on the next fifth anniversary. Lessor will provide at least thirty (30) days' notice prior to the date of the Commission meeting wherein the modification of insurance is considered, or thirty (30) days' notice prior to the effective date of the increase.
Paragraph 5: Taxes, Assessments, and Fees
5.1. Revenue and Tax Code Section 107.6 Statement. Issuance of this Lease creates a possessory interest that may be subject to property taxation. The Lessee may be subject to, and is solely responsible for, any possessory interest taxes levied on the leasehold interest.
5.2. Lessee to Pay All Taxes, Assessments, and Fees. In addition to any Rent due under this Lease, Lessee must pay when due all real and personal property taxes imposed on or associated with the Lease Premises during the term of this Lease.
This includes, without limitation: possessory interest taxes, assessments, special assessments, user fees, and service charges. If this Lease begins or ends during a tax year, Lessee must pay the taxes, assessments, and fees for the portion of the tax year the Lease was in effect.
5.3. Reimbursement Agreements. Lessee must pay in full any amount owed on the Application Reimbursement Agreement within 30 days of invoice.
5.4. Records of Payments. Lessee shall keep the official and original receipt for payments required by this paragraph 5 and provide to Lessor upon request.
Paragraph 6: Land Use
6.1. Only Authorized Uses. Lessee will use the Lease Premises only for the purposes stated in this Lease. Any additional uses or Improvements require separate authorization from Lessor. Lessee must submit a separate application to Lessor to amend this Lease if Lessee intends to add to or alter the Improvements on, or change the uses of, the Lease Premises.
6.2. Lessee to Comply with All Applicable Laws. Lessee, at Lessee's sole expense, Section 3 General Provisions Page 7 of 21 Form 51.16 (Rev. 4/24) will comply with all Applicable Laws. Lessee must give Lessor immediate written notice on Lessee's becoming aware that the use or condition of the Lease Premises is in violation of any Applicable Laws. Lessee must obtain and maintain all permits or other entitlements.
6.3. Lease Does Not Substitute for Permits. This Lease does not substitute for or provide preference in obtaining approval from other federal, state, or local agencies. Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and will be solely responsible for all costs incurred thereby.
6.4. No Discrimination. Lessee, in its use of the Lease Premises, must not discriminate against any person or class of persons on any basis protected by federal, state, or local law.
6.5. "As Is." Lessee accepts the Lease Premises "as is" and acknowledges that:
6.5.1. Lessor, including its officers and employees, made no representations or warranties as to the suitability of the Lease Premises for any uses authorized under this Lease. Lessee is solely responsible for determining the suitability of the Lease Premises for any proposed use or Improvements; and
6.5.2. Lessor, including its officers and employees, has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to Applicable Laws. Lessee agrees to inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for the Lessee's intended use; and
6.5.3. Damage to or destruction of any Improvements on the Lease Premises by any cause whatsoever does not entitle Lessee to any reduction in rent or extension of this Lease; and
6.5.4. Any Improvements on the Lease Premises are considered personal property and not fixtures; and
6.5.5. Lessee accepts the hazards involved in using or improving such lands.
Lessor is not responsible for any damages or reduced use of the Lease Premises caused by: local or invasive flora or fauna, flooding, erosion, climate change, sea level rise, storms, freezing, inclement weather of any kind, acts of god, maintenance or failure of protective structures, and any other such hazards.
Lessee will not be reimbursed or receive offset of rent for such hazards; and
6.5.6. The Lease Premises may be subject to pre-existing contracts, leases, Section 3 General Provisions Page 8 of 21 Form 51.16 (Rev. 4/24) licenses, easements, encumbrances, and claims. The Lease is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose.
6.6. Uses Inconsistent with the Public Trust Prohibited. Unless specifically authorized in this Lease, any use of the Lease Premises which is inconsistent with the Public Trust is prohibited when the Lease Premises are lands subject to the Public Trust.
Paragraph 7: Climate Change
7.1. Lessee acknowledges that the Lease Premises and adjacent upland may be subject to the hazards exacerbated by climate change, including sea level rise. Potential hazards to the Lease Premises from climate change include but are not limited to flood damage, erosion damage, earthquakes, tsunamis, and damage from waves and storm-created debris. Lessee acknowledges that these impacts associated with climate change may require additional adaptation or protection strategies applied to the improvements on the Lease Premises and additional maintenance.
7.2. Lessee assumes the risks associated with such potential hazards and agrees to be solely responsible for all damages, costs, and liabilities arising as a result of the impacts of such hazards on the Lease Premises. Any additional maintenance or protection strategies necessitated by such hazards may be subject to environmental review and require additional approval by the Lessor.
7.3. Lessee shall conduct monitoring reports within the first three years of lease execution or construction, and at five-year intervals thereafter for the life of the project; and shall also provide Lessor with monitoring reports following any extreme event, including, but not limited to: extreme tide event (including King Tides), earthquake, or tsunami that results in the declaration of a Local Emergency or a State of Emergency (as defined in Cal. Gov. Code § 8558) or a federal Emergency or Major Disaster (as defined in 44 C.F.R. § 206.2).
Paragraph 8: Environmental Matters
8.1. Lessee to Comply with Environmental Laws. Lessee, at its sole cost and expense, will comply with all Environmental Laws.
8.2. Hazardous Materials. Lessee will immediately notify Lessor of any known violation of any Environmental Laws, along with any action, claim, demand, inquiry, or order relating to a violation of Environmental Laws on the Lease Section 3 General Provisions Page 9 of 21 Form 51.16 (Rev. 4/24) Premises. Lessee must immediately provide copies of all related documents upon Lessor's request. Lessee must immediately notify Lessor and the appropriate governmental emergency response agency, or agencies in the event of any release or threatened release of any Hazardous Material on or about the Lease Premises.
8.3. Cleanup of Hazardous Materials. If Hazardous Materials are located on or released onto or about the Lease Premises due to Lessee's activities on the Lease Premises, the Lessee is responsible for the cleanup and disposal of such Hazardous Materials consistent with all Applicable Laws. Lessee must submit a site assessment and removal/remediation plan prepared by a professional, licensed and qualified to remove or remediate the Hazardous Materials for review and approval by Lessor. If Lessor approves the plan in writing, Lessee must commence the removal/remediation at its sole expense, in conformance with all Applicable Laws. Alternately, Lessor may elect to perform the removal/remediation at Lessee's expense. Lessee must compensate Lessor for the actual cost of the removal/remediation within thirty (30) days of receiving a written invoice from Lessor.
8.4. Inspection. Lessee will permit Lessor or its agents to enter the Lease Premises on 24-hour notice to inspect, monitor, or take remedial action with respect to Hazardous Materials. If Hazardous Materials are generated, stored, or transported on the Lease Premises, Lessor may require Lessee to conduct an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Materials. If this assessment or inspection is required, Lessor will be allowed to review and approve the contractor, and the work will be done at Lessee's expense.
8.5. Conservation. Lessee will cooperate with and participate in conservation programs for water, electricity, composting, natural gas and recycling programs, including those for the collection of cardboard, metals, plastics, and glass at Lessee's expense.
Paragraph 9: Repairs, Major Repairs, and Alterations
9.1. Lessee Required to Perform Repairs. Lessee is solely responsible for maintaining the Lease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition. Lessee is not required to get Lessor's advanced approval for routine Repairs.
9.2. Major Repairs Require Lessor Approval. Lessee must obtain Lessor's Section 3 General Provisions Page 10 of 21 Form 51.16 (Rev. 4/24) advanced written approval prior to conducting any Major Repairs. The decision whether a Repair is a Major Repair, and the decision whether a lease amendment is necessary, will be made by Lessor and based on the scope, cost, and impacts of the work.
9.3. Alterations Require Lessor Approval. Any material change in the size, scope, density, type, nature, or intensity of Improvements on or uses of the Lease Premises from what is authorized in this Lease will be considered an Alteration.
Lessee may not conduct any Alterations without a modification of this Lease approved by Lessor. The decision whether a change constitutes an Alteration will be made by Lessor and based on the individual facts.
9.4. Improvements in Disrepair or Unsafe Condition. Lessee's failure to maintain the Lease Premises or Improvements that have become unsafe or derelict entitle Lessor to require removal under Paragraph 14. After providing notice and opportunity to cure, Lessor may require submission of a written plan to restore the Lease Premises under Paragraph 14. Lessee's failure to comply shall entitle Lessor to terminate this Lease, remove the Improvements from the Lease Premises and recover the costs incurred in doing so from the Lessee.
Paragraph 10: Lessor's Reservation of Rights
10.1. Non-Exclusive Lease. Lessee's right of occupancy is non-exclusive. Lessee may control access to the Improvements on the Lease Premises. Unless otherwise stated in this Lease, Lessee may exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with the Authorized Use of the Lease Premises.
10.2. Lessee Responsible for Impacts to Natural Resources and Public Trust Uses.
When the Lease Premises include school lands or sovereign lands, the Lessee is responsible for any damage or adverse impacts to Natural Resources within or adjacent to the Lease Premises. It is the intention of Lessor to limit the transfer of rights under this lease to the minimum level required to carry out the primary purpose of the Lease. Lessee's use of the Lease Premises must minimize impacts to the Public Trust if the Lease Premises are subject to the Public Trust. Lessee must not interfere with public access or Public Trust uses authorized under statute and common law.
10.3. Mineral Resources. Mineral Resources may not be removed from the Lease Premises unless specifically authorized under this Lease. Lessee shall not extract, sell, damage, or use Mineral Resources found within the Lease Premises without Section 3 General Provisions Page 11 of 21 Form 51.16 (Rev. 4/24) specific authorization under this Lease. Lessor reserves the right to grant and transfer Mineral Resources along with the right to grant leases to third parties in and over the Lease Premises for the extraction of such Mineral Resources. Such leasing will not be inconsistent or incompatible with the rights or privileges of Lessee under this Lease.
10.4. Right to Inspect. Lessor reserves the right to inspect the Lease Premises. If access to the Lease Premises is reasonably accomplished by passing through adjacent property owned by Lessee, Lessor shall provide 24-hour notice prior to entry and Lessee shall grant such entry for inspection of the Lease Premises.
10.5. Statutory Reservations. Lessor reserves to the public an easement across the Lease Premises complying with Public Resources Code section 6210.4 and Public Resources Code section 6210.5.
10.6. Multiple Overlapping Leases Allowed. Lessor reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the Lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease.
Paragraph 11: Indemnity
11.1. Lessee's Sole Risk. Lessee's use of the Lease Premises and any Improvements thereon, including use by guests and invitees, is at Lessee's sole and exclusive risk.
11.2. Lessee to Indemnify Lessor. Except to the extent caused by the sole negligence or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend Lessor, its officers, agents, and employees from any and all Damages resulting from Lessee's occupation and use of the Lease Premises. Lessee shall reimburse Lessor in full for all reasonable costs and attorneys' fees, specifically including, without limitation, any Damages arising by reason of: (1) The issuance, enjoyment, interpretation, or breach of this Lease; (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based; (3) The death or injury of any person, or damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the Lease Premises; (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work performed on the Lease Premises or material furnished to the Lease Section 3 General Provisions Page 12 of 21 Form 51.16 (Rev. 4/24) Premises; (7) Lessee's failure to comply with any Applicable Laws or violation of any Environmental Laws; (8) The costs for any cleanup or other response costs relating to the release or threatened release of Hazardous Materials on the Lease Premises during Lessee's occupation of the Lease Premises. This obligation includes any prior leases between Lessee and Lessor and will continue until Lessee has performed all duties under Paragraph 14.
11.3. Lessor Not Required to Defend. Lessor need not defend itselt against all or any aspect of any challenge to this Lease or any associated environmental review. However, Lessee may take whatever legal action is available to it to defend this Lease or any associated environmental review against any challenge by a third party, whether or not Lessor chooses to raise a defense against such a challenge.
11.4. Lessee to Notify Lessor. Lessee shall notify Lessor immediately in case of any accident, injury, or casualty on the Lease Premises.
Paragraph 12: Assignment, Encumbrance, or Sublet
12.1. Lessor's Consent Required for Assignment. Lessee shall not mortgage; hypothecate; encumber; assign; sublet; enter into franchise, license, or concession agreements; or otherwise transfer all or part of this Lease (collectively "Assign" or "Assignment") without Lessor's advanced and expressed consent at a properly noticed public meeting. Any purported Assignment without Lessor's consent will be void and of no force or effect and will not confer any estate or benefit on anyone. A consent to one Assignment by Lessor will not be deemed to be a consent to any subsequent Assignment by or to any other party.
12.2. Lessee Actions Not Considered Assignments. If Lessee is a public corporation whose stock is traded on a nationally recognized stock exchange, sale or transfer of such stock is not an Assignment.
12.3. Procedures. If Lessee desires to Assign this Lease, Lessee will apply to Lessor for the proposed Assignment. The Assignment will be considered by Lessor at a public meeting. Lessor may require any of the following in considering consent of an Assignment: (a) the nature, effective date, terms, and conditions of the assignment; (b) a description of the identity, net worth, and previous business experience of the proposed assignee; (c) a complete business plan prepared by the proposed assignee; and (d) any further information relevant to the proposed Assignment that Lessor reasonably requests. Lessor may either (i) consent to the proposed Assignment; (i) refuse to consent to the proposed Section 3 General Provisions Page 13 of 21 Form 51.16 (Rev. 4/24) Assignment; or (ill) determine that it is preferable to terminate this Lease and issue a new lease to the proposed assignee.
12.4. Standard for Consent. Lessor may refuse its consent to the proposed Assignment on any reasonable grounds. Reasonable grounds include, without limitation: (a) the proposed assignee intends to use the Lease Premises for different activities or uses than those set forth in Section 1; (b) the proposed assignee's financial condition is deemed by Lessor to be inadequate to support the financial and other obligations of Lessee under this Lease; (c) the business reputation or character of the proposed assignee is not reasonably acceptable to Lessor; (d) the proposed assignee is not likely to conduct a business of a quality substantially equal to that conducted by Lessee; (e) the proposed assignee's planned use of the Lease Premises would increase the burden on the Lease Premises, involve an increased risk of the presence, use, release, or discharge of Hazardous Materials; or (f) Lessor has not received adequate assurance that all breaches will be cured before the effective date of the proposed Assignment.
12.5. Additional Terms. Lessee's Assignment of the Lease does not release Lessee from liability for any Hazardous Materials or ordinance manufactured, generated, used, placed, disposed, stored, or transported on the Lease Premises during Lessee's tenancy. An unauthorized assignment does not relieve Lessee from its covenants and obligations under this Lease. Lessor's acceptance of any payment due under this Lease from any person other than Lessee will not be deemed to be a waiver by Lessor of any provision of this Lease or to be a consent to any Assignment.
12.6. Bankruptcy. If Lessee files a petition or an order for relief is entered against Lessee under the Bankruptcy Code (11 U.S.C. § 101, et seq.), then the trustee or debtor-in-possession must elect to assume or reject this Lease within sixty (60) days after filing of the petition or appointment of the trustee, or as that deadline may be extended by order of the court, or the Lease shall be deemed to have been rejected and Lessor shall be entitled to immediate possession of the Lease Premises. No assumption or assignment of this Lease shall be effective unless it is in writing and unless the trustee or debtor-in-possession has cured all breaches of this Lease (monetary and non-monetary) or has provided Lessor with adequate assurances (a) that within ten (10) days from the date of such assumption or assignment, all monetary breaches of this Lease will be cured; and (b) that within thirty (30) days from the date of such assumption, all non-monetary breaches of this Lease will be cured; and (c) that all provisions of this Lease will Section 3 General Provisions Page 14 of 21 Form 51.16 (Rev. 4/24) be satisfactorily performed in the future.
12.7. Permitted Assignments. The following Assignments are permitted under this Lease without Lessor's consent: (a) Assignment caused by the death of a spouse where the full interest of the deceased spouse is Assigned to a surviving spouse who is a co-lessee on this Lease, provided Lessor is notified in writing within thirty (30) days of the assignment; (b) assignment caused by the dissolution of the marriage of Lessee when the full interest of one spouse is assigned to the other spouse who is a co-lessee on this Lease, provided Lessor is notified in writing within thirty (30) days of the transfer; and (c) substitution or succession of a new trustee if the Lease is held in trust and the Lessee is a trustee or successor trustee thereof, provided Lessor is notified in writing no later than sixty (60) days after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as trustee for any reason.
12.8. Lessee Remedies. If Lessor withholds or conditions its consent and Lessee believes that Lessor did so contrary to the terms of this Lease, then Lessee's sole remedy will be to prosecute an action for declaratory relief to determine if Lessor properly withheld or conditioned its consent, and Lessee hereby waives all other remedies.
Paragraph 13: Breach
13.1. Events of Breach. All covenants and agreements contained in this Lease are declared to be conditions to this Lease. Lessee's failure to pay rent when due or any other charges under this Lease for five (5) days after written notice from Lessor to Lessee will be considered a monetary breach. Lessee's failure to perform any other promise, covenant, or agreement under this Lease for more than thirty (30) days after written notice from Lessor to Lessee will be considered a non-monetary breach. If a non-monetary breach cannot be cured within the thirty (30)-day period, the breach will be deemed to be cured if Lessee begins to cure the breach within the thirty (30)-day period and continues to diligently complete the cure.
13.2. Breach of Lease. Lessor shall provide written notice to Lessee specifying the particulars of the breach. Should Lessee fail to cure the breach within the period specified in Paragraph 13.1, then Lessor may elect to pursue any available remedies under law, or those specified in paragraph 13.3, below.
13.3. Remedies on Breach of Lease. In addition to any other rights or remedies at law or equity, Lessor may, without further notice, (a) terminate this Lease, reenter Section 3 General Provisions Page 15 of 21 Form 51.16 (Rev. 4/24) and take possession of the Lease Premises and remove all persons and all Improvements therefrom at Lessee's cost; or (b) keep this Lease in effect without declaring this Lease terminated and without terminating Lessee's right to possession, reenter the Lease Premises and occupy the whole or any part for and on account of Lessee and collect any unpaid rentals and other charges that have become payable or that may thereafter become payable; or (c) terminate this Lease after reentering the Lease Premises as provided in subclause (b) above. Any notice required to be given by Lessor above will be instead of, and not in addition to, any notice required under the laws of the State of California.
13.4. Determination of Rental Value. If rent under this Lease is calculated as percentage of Lessee's income attributable to the Lease Premises and Lessee abandons the Lease Premises, then the reasonable rental value shall be the percentage of proceeds Lessor would have received had Lessee operated the Lease Premises in the usual and customary manner.
13.5. Acceptance of Rent When Lessee is in Breach. Lessor's acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the failure to pay the particular rent accepted regardless of Lessor's knowledge of the preexisting Breach at the time rent is accepted, unless the breach was a monetary breach and the payment occurs during the cure period specified in Paragraph 13.1.
13.6. Acceptance of Payments After Lease Termination. Lessee's submission or Lessor's acceptance of any payments after the expiration or termination of this Lease shall not reinstate or extend this Lease. Lessor may elect to retain any payment submitted and apply these payments to offset any damages claimed against Lessee; or Lessor may elect to allow a holdover tenancy under Paragraph 14.6; or Lessor may elect to refund the payments less a reasonable handling fee.
13.7. Waiver of Rights. The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any Breach by the other party.
Paragraph 14: Conditions of Lease Termination
14.1. Use of State Land. This Lease authorizes the use or occupation of state land for a fixed term of years without options or rights of renewal. Lessee accepts that future leases authorizing the continued existence of any Improvements Section 3 General Provisions Page 16 of 21 Form 51.16 (Rev. 4/24) constructed or maintained by Lessee on the Lease Premises are subject to a discretionary action of the California State Lands Commission. Submission of an application for a new lease does not guarantee a new lease will be granted to Lessee. Lessee acknowledges that construction of Improvements on the Lease Premises and investment in or obtaining financing for the uses authorized under this Lease is done in full understanding that future leases are not guaranteed.
Lessee also affirmatively represents that the cost of removing Improvements was considered before entering into this Lease and placing or assuming any Improvements on state land.
14.2. Abandonment. Lessee's right of access to the Lease Premises was a material consideration in Lessor issuing this Lease. If, without prior notice to Lessor, Lessee sells, abandons, or loses title to the upland property adjacent to the Lease Premises, or otherwise loses the legal right to access the Lease Premises, Lessor may deem this an abandonment of the Lease Premises. Lessee must actively maintain and manage any Improvements authorized by this Lease. Should Lessee discontinue use, management, or maintenance of the authorized Improvements, Lessor may deem this an abandonment and elect to terminate the Lease. Alternately, Lessor has the remedy described in California Civil Code section 1951.4 (Lessor may continue lease in effect after Lessee's breach and abandonment and recover rent as it becomes due if Lessee has right to sublet or assign, subject only to reasonable limitation). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease.
14.3. Restoration. In issuing this Lease it is Lessor's understanding that all Improvements will be removed from state land at the expiration or termination of this Lease. If Lessee abandons the Lease Premises, or Lessor terminates this Lease, or this Lease expires without execution of a new lease authorizing Lessee's use of the Lease Premises, Lessee must: 1) remove all Improvements regardless of whether Lessee constructed or placed Improvements together with all debris at its sole expense and risk, restoring the Lease Premises to as close as possible to an unimproved condition to Lessor's satisfaction; and 2) immediately surrender possession of the Lease Premises. Lessor may, in its sole discretion, allow all or any portion of the Improvements to remain in place. In carrying out this obligation, Lessee acknowledges that further authorizations, review of the Restoration Plan, and environmental review may be necessary as outlined in Section 14.4 below.
14.4. Two Years Prior to Expiration. (A) If Lessee desires to continue the uses authorized under this Lease, Lessee shall submit an application together with all Section 3 General Provisions Page 17 of 21 Form 51.16 (Rev. 4/24) required fees at least two years prior to the expiration of this Lease. Submission of an application does not guarantee a new lease will be granted to Lessee. (B) If Lessee does not desire to occupy the Lease Premises beyond the term of this Lease, then two years prior to the expiration of this Lease, Lessee shall submit an application, including a detailed plan to remove all Improvements and restore the Lease Premises to the condition existing prior to the installation or construction of any Improvements. The plan must include a timeline for obtaining all necessary permits. The restoration plan may require a subsequent environmental review and approval from Lessor. (C) Lessor may modify annual rent, surety and insurance within the last two years of the Lease.
14.5. Failure to Restore Lease Premises. Lessee's failure to remove improvements, restore the Lease Premises, or surrender possession of the Lease Premises at the expiration or sooner termination of this Lease shall not constitute a renewal or extension and shall not give Lessee any rights in or to the Lease Premises or any part thereof. Lessee shall not be entitled to any compensation for Improvements left on the Lease Premises at the termination or expiration of this Lease. Lessor may, in its sole discretion, elect to treat the Improvements as abandoned and remove all or any portion of Improvements from the Lease Premises. Lessee's failure to adequately restore the Lease Premises imposes significant financial liability on Lessor. As a result, Lessee shall be responsible for all expenses incurred by Lessor in restoring the Lease Premises, including, without limitation, staff time, environmental work or permitting, contractor costs, and reasonable attorney's fees.
14.6. Holdover. This Lease terminates without further notice at the end of its term.
Lessor may, in its sole discretion, choose to accept Rent for the Lease Premises and allow a period of holdover tenancy. Any holdover tenancy shall be on a month-to-month basis. Lessee's submittal of annual rent during holdover does not constitute tenancy longer than month-to-month. Any holdover tenancy shall be on the same terms as this Lease insofar as such terms can be applicable to a month-to-month tenancy. The rent for each month or any portion thereof during such holdover period is one hundred fifty percent (150%) of one-twelfth (1/12) of the total compensation for the most recent year paid. The month-to-month tenancy may be terminated by Lessor upon thirty (30) calendar days' prior written notice to Lessee.
14.7. Holdover on Leases with No Monetary Consideration. In the event this Lease does not require monetary consideration, 14.6 shall continue to apply, and in addition: 1) Lessor shall have the right to establish rent based on the fair Section 3 General Provisions Page 18 of 21 Form 51.16 (Rev. 4/24) market value of the Lease Premises, and 2) In no way shall the prior lease consideration limit damages for trespass.
14.8. Quitclaim. In the event this Lease is terminated prior to expiration, Lessee shall deliver a quitclaim of all rights under this Lease to Lessor on request. Lessee shall execute and deliver such quitclaim to Lessor in a form provided by Lessor.
Should Lessee fail or refuse to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against Lessee of the termination of this Lease and all other claimants.
Paragraph 15: Additional Provisions
15.1. Conflict in Terms. In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control.
15.2. Boundaries. This Lease does not establish the State's boundaries in so far as it relates to land and resource jurisdiction and ownership and is made without prejudice to either party regarding any land and water boundary or title claims which may be asserted presently or in the future.
15.3. No Waiver. Lessor's acceptance of a late or nonconforming performance shall not constitute a waiver unless such waiver is expressly acknowledged by Lessor in writing. Lessor's delay in or omission to exercise any right under this Lease shall not constitute a waiver.
15.4. Time is of the Essence. Time is of the essence for this Lease and each and all of its terms, covenants or conditions in which performance is a factor.
15.5. Notice. All notices required to be given under this Lease shall be given in writing, sent by U.S. Mail or other reputable private carrier with postage prepaid, to Lessor at the offices of the State Lands Commission and the Lessee at the address specified in this Lease. Lessor's staff and Lessee may agree to accept any notice by electronic mail. Lessee shall give Lessor notice of any change in its name or address.
15.6. Consent. Lessor's consent to one transaction or event shall not be deemed to be a consent to any subsequent occurrence.
15.7. Changes. This Lease may only be amended, revised, or supplement by written agreement of the Parties.
15.8. Joint and Several Obligation. If more than one Lessee is a party to this Section 3 General Provisions Page 19 of 21 Form 51.16 (Rev. 4/24) Lease, the obligations of the Lessees shall be joint and several.
15.9. Captions. The section and paragraph captions used in this Lease are for the convenience of the Parties. The captions are not controlling and shall have no effect upon the construction or interpretation of this Lease.
15.10. Severability. If any term, covenant, or condition of this Lease is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and enforceable to the fullest extent permitted by law.
15.11. Representations. Lessee agrees that no representations have been made by Lessor or by any person or agent acting for Lessor except those stated in this Lease. This document contains the entire agreement of the Parties. No verbal agreements, representations, warranties, or other understandings affect this Lease. Lessor and Lessee, as a material part of the consideration of this Lease, waive all claims against the other for rescission, damages, or otherwise by reason of any alleged covenant, agreement, or understanding not contained in this Lease.
15.12. Gender and Plurality. In this Lease, words importing any gender include any or all genders, and the singular number includes the plural whenever the context so requires.
15.13. Survival of Certain Covenants. All covenants pertaining to bond, insurance, indemnification, restoration obligations, breach or remedies shall survive the expiration or earlier termination of this Lease until Lessee has fulfilled all obligations to restore the Lease Premises as required by this Lease.
15.14. Counterparts. This agreement may be executed in any number of counterparts and by different Parties in separate counterparts.
15.15. Delegation of Authority. Lessor and Lessee acknowledge that Lessor as defined herein includes the Commission Members, their alternates or designees, and the staff of the Commission. The ability of staff of the Commission to give consent, or take other discretionary actions described herein will be as described in the then-current delegation of authority to Commission staff. All other powers are reserved to the Commission.
15.16. Successors. The terms, covenants, and conditions of this Lease shall extend to and be binding upon and inure to the benefit of the heirs, successors, and assigns of the respective parties.
Section 3 General Provisions Page 20 of 21 Form 51.16 (Rev. 4/24)
STATE OF CALIFORNIA - STATE LANDS COMMISSION
LEASE NUMBER: 5001
This Lease shall become effective only when approved by and executed on behalf of the State Lands Commission of the State of California and Lessee. The submission of this Lease by Lessor, its agent, or representative for examination by Lessee does not constitute an option or offer to lease the Lease Premises upon the terms and conditions contained herein, or a reservation of the Lease Premises in favor of Lessee. Lessee's submission of an executed copy of this Lease to Lessor shall constitute an offer to Lessor to lease the Lease Premises on the terms and conditions set forth herein.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date hereafter affixed.
LESSEE: CITY OF CORNING LESSOR: STATE OF CALIFORNIA
STATE LANDS COMMISSION
By: By:
Brant Mesker Robert Brian Bugsch
Title: Title:
City Manager Chief, Land Management Division
Date: Date:
Execution of this document was authorized by the California State Lands Commission on
ATTACH ACKNOWLEDGMENT
Section 3 General Provisions Page 21 of 21 Form 51.16 (Rev. 4/24) ITEM NO: J-3
AUTHORIZE THE PURCHASE OF A
BACKHOE FOR THE PUBLIC WORKS
DEPARTMENT IN THE AMOUNT OF
$174,624.89.
August 12, 2025
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: BRANT MESKER, CITY MANAGER/
ELIJAH STANLEY, PUBLIC WORKS DIRECTOR
BACKGROUND:
As part of the Fiscal Year 2025/2026 budgeting process, Staff allocated $175,000 for the replacement of an aging backhoe currently in the Public Works fleet. The existing equipment has been evaluated and determined to require replacement to ensure continuity of essential public works operations.
DISCUSSION:
Staff is recommending the purchase of a replacement backhoe through sole-source procurement. This recommendation is based on the affordability and exceptional customer service consistently provided by N&S Tractor. Staff is requesting to waive the bid process subject to the City's Purchasing Policy Section 3.1.082(A)(6) the equipment being sought should not go out to bid because the City's needs will be better met by soliciting prices from different vendors and negotiating prices from a single vendor.
Following the replacement, Staff intends to surplus and sell the existing backhoe, with all proceeds to be returned to the Public Works Capital Replacement Fund, helping to offset future capital expenditures.
FINANCIAL:
The total cost of the backhoe is $174,624.89 and will be funded from the Public Works Capital Replacement Fund. There is no impact on the General Fund. The anticipated proceeds from the sale of the existing equipment will be deposited back into the same fund. The following funds were allocated in the approved FY25/26 budget:
One (1) New Backhoe
078-9269-3000 $175,000
RECOMMENDATION:
MAYOR AND COUNCIL:
• CITY COUNCIL DETERMINES THAT THIS PURCHASE IS EXEMPT FROM THE CITY'S PURCHASING POLICY PER SECTION 3.12.082 A-6 OF THE CORNING
MUNICIPAL CODE
• AUTHORIZE THE PURCHASE OF A NEW BACKHOE FROM N&S TRACTOR IN THE AMOUNT OF $174,624.89.
Purchase Agreement
TRACTOR N&S Tractor Redding
530-245-9000 • 2535 Ellis St Redding, CA 96001
Prepared For: CITY OF CORNING Quote Number: Q-243-38910-1 Address: 794 THIRD ST CORNING, CA 96021 Date Prepared: 05/1/2025 Contact: (530)624-8933 • [email protected] Presented By: Gary George (530-501-8917) Quoted Equipment Overview Pricing
New 2025 CASE 580SN WT 2025 CASE 580SN WT: $159,040.00
Stock Number: TBD Serial #: TBD
Engine Hours: 0 Delivery Included Subtotal: $159,040.00 Sales Tax (7.750%): $12,325.60
Warranty: CNH PREMIER
36 Months 3000 Total Hours $0.00 Deductible
Travel Time Not Included Subtotal: $171,365.60
Tire Tax: $7.00
NEW 2025 CASE 580SN WT, TRACTOR-LOADER BACKHOE, TIER 4 FI- Base Warranty (TBD): $3,252.29 NAL............. EQUIPPED WITH ENCLOSED CAB, HEATER-A/C, HEAT- ED-AIR SUSPENSION SEAT, RADIO.... PILOT CONTROLS, COMFORT STEER, POWERLIFT, POWERBOOST OPTIONS, AUTO RIDE CONTROL, Total Price: $174,624.89
LED LIGHT PACKAGE, COLD START DUAL BATTERIES, EXTENDAHOE WITH HYD COUPLER, HYDRAULIC THUMB, 18" HD BUCKET, 4 SPEED Quote Expires: 08/31/2025 POWERSHIFT TRANSMISSION, 4WD, 4-1 FRONT LOADER BUCKET
PLUS FORK HOOKS.
Comments: THIS QUOTE REFLECTS SOURCEWELL PRICING
PLUS DEALER PREP, FIT, AND FEES
THIS QUOTE IS GOOD FOR 30 DAYS
TERMS OF SALE ARE NET 30 FROM THE DATE OF DELIVERY
CASE PREMIER EXTENDED WARRANTY FOR 3 YEARS, 3000
HOURS QUOTED (ALL WARRANTY IS "IN SHOP")
Accepted By: Date: