Agenda packet — Hollister City Council, June 18, 2024 (part 1 of 9)

CITY OF HOLLISTER

CITY COUNCIL AGENDA

REGULAR MEETING

Tuesday, June 18, 2024, 4:00 p.m.

City Council Chamber, City Hall
375 Fifth Street, Hollister, CA 95023

Mia Casey, Mayor David Mirrione, City Manager Rick Perez, Council Member, District 1 Mary F. Lerner, City Attorney Rolan Resendiz, Council Member, District 2
Dolores Morales, Council Member, District 3
Tim Burns, Council Member, District 4

Gordon Machado, City Treasurer

TELECONFERENCE NOTICE
Pursuant to Government Code Section 54953, subdivision (b), the following Council Meeting will include teleconference participation by Vice Mayor Rolan Resendiz from 560 B Street, Unit B, Hollister, CA 95023. This notice and agenda will be posted at the teleconference location. Public comment from this address shall be allowed pursuant to Government Code Section 54953.3

NOTICE TO PUBLIC
Persons who wish to address the City Council are asked to complete a speaker’s card and give it to the City Clerk before addressing the City Council. Those who wish to address the City Council on an agenda item will be heard when the presiding officer calls for comments from the audience. City related items not on the agenda will be heard under the Public Input section of the agenda. Following recognition, persons desiring to speak are requested to advance to the podium and state their name and address. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9. After hearing audience comments, the public portion of the meeting will be closed, and the matter brought to the City Council for discussion.

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at City Hall, 375 Fifth Street, Hollister, Monday through Friday, 8:30 a.m. to noon, 1:00 p.m. to 4:30 p.m. (City Hall is closed between 12:00 and 1:00 p.m.)

Requests to make presentations to the City Council should be submitted to the City Clerk’s Office at least ten days before the City Council meeting. It is customary for City staff members to review such matters before the formal presentation so that the City Council may have the benefit of all available data. PowerPoint presentations must be presented to the City Clerk by noon on the day of the City Council meeting.

The public may watch the meeting via live stream at:

City of Hollister Website

https://pub-hollister.escribemeetings.com/

Community Media Access Partnership (CMAP):
http://cmaptv.com/watch/

City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489

City of Hollister Facebook Live at:
https://www.facebook.com/cityofhollister

Public Participation:

The public may attend meetings.

NOTICE: The City Council will hold its public meetings in person, with a virtual option for public participation based on availability. The City of Hollister utilizes Zoom teleconferencing technology for virtual public participation; however, we make no representation or warranty of any kind, regarding the adequacy, reliability, or availability of the use of this platform in this manner. Participation by members of the public through this means is at their own risk. (Zoom teleconferencing may not be available at all meetings.)

If you wish to make a public comment remotely during the meeting, please use the zoom registration link below:
https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification of 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].

Notice to anyone attending any public meeting: The meeting may be broadcast live on Cable Channel 17 and/or videotaped or photographed. Recent City Council meetings may also be viewed at www.CMAP.com and periodically on Cable Channel 17.

To access written translation during the meeting, please click this link:

Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace:

https://attend.wordly.ai/join/NLJC-7137
City of Hollister City Council Meeting

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1.CALL TO ORDER

2.ROLL CALL

3.PLEDGE OF ALLEGIANCE

4.CLOSED SESSION

4.1 CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6
Agency designated representatives: (City Manager David Mirrione and Administrative Services Director Casey Estorga)
Employee Organizations: Service Employees International Union (SEIU), Local 521; Hollister Firefighters Union (HFFU), Local 3395; Hollister Peace Officer Association (HPOA); and un-represented employees in classifications designated as Executive Management

4.2 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE 54956.9
Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of section 54956.9 of the Government Code (1 case)

4.3 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE 54956.9
Initiation of Litigation Pursuant to paragraph (4) of subdivision (d) of section 54956.9 of the Government Code (Deciding Whether to Initiate Litigation): 1 case

5.CLOSED SESSION - REPORT OUT

6.COUNCIL BUSINESS

6.1 DISCUSS RESULTS OF INVESTIGATION PERTAINING TO THE ALLEGED

CONDUCT OF VICE MAYOR ROLAN RESENDIZ
RECOMMENDED ACTION:

Receive the report and provide possible direction.

7.SPECIAL ORDERS OF THE DAY

7.1 PARKS AND RECREATION MONTH PROCLAMATION

7.2 PRESENTATION BY CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) AND COUNCIL OF SAN BENITO COUNTY GOVERNMENTS (SBCOG)
RECOMMENDED ACTION:

Receive a presentation and provide possible direction to staff.

8.PUBLIC INPUT FOR ITEMS NOT ON THE AGENDA
This is the time for anyone in the audience to speak on any item not on the agenda and within the subject matter jurisdiction of the council. Speaker cards are available in the lobby, and are to be completed and given to the City Clerk before speaking. When the City Clerk calls your name, please come to the podium, state your name and city for the record, and City of Hollister City Council Meeting

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speak to the City Council. If you are joining us by Zoom, please click on the bottom of your screen to raise your hand. If you are joining us by Zoom using a cell phone, please press *9.

Each speaker will be limited to three (3) minutes with a maximum of 30 minutes per subject.

Please note that state law prohibits the City Council from discussing or taking action on any item not on the agenda.

9.CONSENT ITEMS
All items listed under consent agenda will be enacted by one motion authorizing actions indicated for those items so designated. There will be no separate discussion of these items unless requested by a member of the City Council, a staff member, or a member of the public. There will be one public comment period for all items on the Consent Agenda.

9.1 APPROVE JUNE 4, 2024 MEETING MINTUES

9.2 CLAIM AGAINST THE CITY – FILED BY MIREYA BUGARIN
RECOMMENDED ACTION:

Deny the claim and authorize staff to send the notice of rejection to the claimant.

9.3 INFORMATIONAL REPORT FOR 4TH OF JULY FIREWORKS EVENT RECOMMENDED ACTION:

Accept the report and provide possible direction to staff.

9.4 A RESOLUTION APPROVING A LEASE EXTENSION WITH WISK AERO LLC. FOR LEASE OF THE BUILDING SPACE AT 90 AIRPORT DRIVE AT THE HOLLISTER

MUNICIPAL AIRPORT
RECOMMENDED ACTION:

1. Adopt a resolution approving Amendment No. 1 for Lease Extension with Wisk Aero LLC. for the building space at 90 Airport Drive; and

2. Authorize City Manager to execute Lease Amendment No. 1.

9.5 A RESOLUTION APPROVING A LEASE EXTENSION WITH WISK AERO LLC. FOR

LEASE OF A PORTION OF THE WEATHERLY BUILDING AT THE HOLLISTER

MUNICIPAL AIRPORT
RECOMMENDED ACTION:

1. Adopt a resolution approving Amendment No. 1 for the Lease Extension with Wisk Aero LLC. for a portion of the Weatherly Building, Unit C; and

2. Authorize City Manager to execute Lease Amendment No. 1.

9.6 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF

HOLLISTER AND WISK AERO LLC FOR AN AIRPORT ACCESS PERMIT RECOMMENDED ACTION:

1. Adopt a resolution approving an Agreement between the City of Hollister and Wisk Aero LLC for an Airport Access Permit, contingent upon satisfactory Federal Aviation Administration review; and

2. Authorize the City Manager to finalize and execute the Agreement after the Agreement has been reviewed by the Federal Aviation Administration (“FAA”).

9.7 A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING FOR

COOPERATIVE PROCUREMENT FOR PROFESSIONAL SERVICES TO

COMPLETE AN AIRPORT ECONOMIC IMPACT STUDY FOR THE HOLLISTER

MUNICIPAL AIRPORT
City of Hollister City Council Meeting

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RECOMMENDED ACTION:

1. Adopt a resolution approving the Memorandum of Understanding for cooperative procurement for consideration of professional services to complete an Airport Economic Impact Study for the Hollister Municipal Airport; and

2. Authorize the City Manager to execute the Memorandum of Understanding.

9.8 A RESOLUTION AMENDING THE CONFLICT OF INTEREST CODE RECOMMENDED ACTION:

Adopt a resolution amending the City of Hollister’s Conflict of Interest Code and rescind Resolution No. 2022-120.

9.9 A RESOLUTION APPROVING AN AMENDMENT TO THE LEASE AGREEMENT OF

THE BRIGGS BUILDING BETWEEN THE CITY OF HOLLISTER AND GAVILAN

COLLEGE, A COMMUNITY COLLEGE DISTRICT
RECOMMENDED ACTION:

Adopt a resolution authorizing and directing the mayor to execute Amendment No. 4 to the lease agreement with Gavilan College, a Community College District for the Briggs Building with a possible end date of June 30, 2025.

9.10 A RESOLUTION APPROVING A FIRST AMENDMENT OF THE DEVELOPMENT

IMPACT FEE AGREEMENT WITH DEL CURTO BROTHERS CONSTRUCTION COMPANY, INC. TO DEFER IMPACT FEES OF THE 400 BLOCK PROJECT RECOMMENDED ACTION:

Adopt a resolution approving the deferral of impact fees of the 400 Block project to the Del Curto Brothers Construction Company, Inc. Development Impact Fee Deferred Agreement and authorize the City Manager to negotiate a First Amendment to allow the deferral of payment of the impact fees for up to eight (8) months expiring March 17, 2025, and including the May 2024 Local Agency Investment Fund interest rate of 4.332% added to the applicable impact fees.

9.11 A RESOLUTION APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH

CSG CONSULTANTS FOR FIRE PLAN REVIEW SERVICES
RECOMMENDED ACTION:

Adopt a resolution approving a Professional Services Agreement with CSG Consultants to provide Fire Plan Review Services and authorize the Mayor to sign the agreement.

9.12 A RESOLUTION APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH

CARMEL FIRE PROTECTION FOR FIRE PLAN REVIEW SERVICES
RECOMMENDED ACTION:

Adopt a resolution approving a Professional Services Agreement with Carmel Fire Protection to provide Fire Plan Review Services and authorize the Mayor to sign the agreement.

9.13 A RESOLUTION APPROVING AN AGREEMENT WITH COMMUNITY TREE

SERVICE
RECOMMENDED ACTION:

Adopt a resolution approving an agreement with Community Tree Service to mitigate weeds on certain properties and authorize the Mayor to sign the agreements

9.14 A RESOLUTION AUTHORIZING THE FISCAL YEAR 2024/2025 COMMUNITY City of Hollister City Council Meeting

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FACILITIES DISTRICT #2 ANNUAL LEVY
RECOMMENDED ACTION:

Adopt a resolution authorizing the annual levy for Community Facilities District #2.

9.15 A RESOLUTION AUTHORIZING THE FISCAL YEAR 2024/2025 COMMUNITY FACILITIES DISTRICT #4 ANNUAL LEVY
RECOMMENDED ACTION:

Adopt a resolution authorizing the annual levy for Community Facilities District #4.

9.16 A RESOLUTION AUTHORIZING THE FISCAL YEAR 2024/2025 COMMUNITY FACILITIES DISTRICT #5 ANNUAL LEVY
RECOMMENDED ACTION:

Adopt a resolution authorizing the annual levy for Community Facilities District #5.

9.17 A RESOLUTION APPROVING THE ANNEXATION OF 172 McCLOSKEY ROAD INTO COMMUNITY FACILITIES DISTRICT #4 ANNEXATION NO. 55 (PUBLIC

FACILITIES SERVICES)
RECOMMENDED ACTION:

Adopt a resolution approving the annexation of 172 McCloskey Road into CFD #4.

9.18 A RESOLUTION APPROVING AN AGREEMENT WITH 4LEAF INC. FOR ON-CALL

PROFESSIONAL PLANNING SERVICES
RECOMMENDED ACTION:

Adopt a resolution awarding a contract and authorizing the City Manager to negotiate, execute, and amend as necessary an agreement for services.

9.19 A RESOLUTION APPROVING AN AGREEMENT WITH M-GROUP FOR ON-CALL

PROFESSIONAL PLANNING SERVICES
RECOMMENDED ACTION:

Adopt a resolution awarding a contract to M-Group and authorizing the City Manager to negotiate, execute, and amend as necessary an agreement for services.

9.20 A RESOLUTION APPROVING AN AGREEMENT WITH PLACEWORKS FOR ON-

CALL PROFESSIONAL PLANNING SERVICES
RECOMMENDED ACTION:

Adopt a resolution awarding a contract to PlaceWorks and authorizing the City Manager to negotiate, execute, and amend as necessary an agreement for services.

9.21 A RESOLUTION APPROVING AN AGREEMENT WITH WILLDAN ENGINEERING

FOR ON-CALL PROFESSIONAL PLANNING SERVICES
RECOMMENDED ACTION:

Adopt a resolution awarding a contract to Willdan Engineering and authorizing the City Manager to negotiate, execute, and amend as necessary an agreement for services.

9.22 A RESOLUTION APPROVING AN AGREEMENT WITH 4LEAF INC. FOR ON-CALL

PROFESSIONAL BUILDING SERVICES
RECOMMENDED ACTION:

Adopt a resolution awarding a contract and authorizing the City Manager to negotiate, execute, and amend as necessary an agreement for services.

9.23 A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING (MOU) City of Hollister City Council Meeting

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BETWEEN THE CITY OF HOLLISTER AND THE HOLLISTER FIREFIGHTERS UNION (HFFU) LOCAL 3395
RECOMMENDED ACTION:

Adopt a resolution approving and authorizing the City Manager to execute the amended MOU between the City of Hollister and HFFU Local 3395.

9.24 A RESOLUTION APPROVING AN AGREEMENT WITH MOTOROLA SOLUTIONS

FOR BODY CAMERAS AND IN CAR VIDEO SYSTEMS
RECOMMENDED ACTION:

Adopt a resolution authorizing the City Manager to sign an agreement with Motorola Solutions to replace body cameras and in-car video systems for the police department.

9.25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT NO. 364, ASPEN PARK SUBDIVISION AND AUTHORIZING THE EXECUTION OF THE AGREEMENT FOR THE IMPROVEMENT WITH ASPEN PARK LLC.

RECOMMENDED ACTION:

Adopt a resolution approving the Subdivision Improvement Agreement for the Aspen Park Subdivision, Tract No. 364, and authorizing execution of the agreement for the improvements with Aspen Park LLC.

9.26 A RESOLUTION AWARDING A CONTRACT IN THE AMOUNT OF $8,278,106.50 TO MOUNTAIN CASCADE INC. AND AUTHORIZING THE EXECUTION OF CONTRACT AND CHANGE ORDERS FOR THE 2024 CITY WIDE ROADWAY IMPROVEMENT PROJECT, CIP C2404
RECOMMENDED ACTION:

Adopt a resolution accepting the bids and awards the contract to Mountain Cascade Inc. for the 2024 City Wide Roadway Improvement Project, CIP C2404.

10.PUBLIC HEARINGS

10.1 ZONING ORDINANCE AMENDMENT 2023-4 TO ADOPT CHAPTER 17.36

INCLUSIONARY HOUSING ORDINANCE
RECOMMENDED ACTION:

Hold a public hearing, introduce the draft ordinance, and schedule a second reading of the ordinance for the August 6, 2024 City Council meeting.

10.2 A RESOLUTION APPROVING THE FISCAL YEAR 2024-25 COMPREHENSIVE

USER FEE SCHEDULE
RECOMMENDED ACTION:

Hold a public hearing and adopt a resolution approving the Fiscal year (FY) 2024-25 Comprehensive User Fee Schedule with an increase based on the Consumer Price Index (CPI).

11.COUNCIL BUSINESS

11.1 APPROVING AND AUTHORIZING THE CITY MANAGER TO PROVIDE NOTICES

OF TERMINATION REGARDING FIRE SERVICES AGREEMENTS WITH THE

COUNTY OF SAN BENITO AND THE CITY OF SAN JUAN BAUTISTA
RECOMMENDED ACTION:

Adopt a resolution approving and authorizing the City Manager to provide notices of City of Hollister City Council Meeting

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termination regarding fire services agreements with the County of San Benito and City of San Juan Bautista.

11.2 PRESENTATION OF THE FISCAL YEAR 2024-25 RECOMMENDED BUDGET, FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT, AND 5-YEAR CIP RECOMMENDED ACTION:

Adopt a resolution approving the City of Hollister’s annual budget for Fiscal Year 2024-25 covering a period of July 1, 2024 – June 30, 2025, approving the FY 2024- 25 appropriations limit, and approving the 5-Year Capital Improvement Program.

12.INFORMATIONAL REPORTS
Reports on compensable meetings attended. Brief reports or announcements concerning activities of members of the City Council and staff; opportunity to refer public or Council questions to staff for information; request staff to report to the Council on a matter at a future meeting; or direct staff to place a matter on a future agenda. Items in this category are for discussion and direction to staff only. No final policy action will be taken by the Council.

12.1 COMMITTEE ASSIGNMENTS
Receive oral reports from members regarding the activities of various Ad Hoc and Standing City Council Committees.

12.2 COUNCIL REPORTS
Receive informational reports from the City Council

12.3 CITY MANAGER REPORT

1.UPDATED CITY COUNCIL PROJECTS

13.ADJOURNMENT

14.VERIFICATION OF AGENDA POSTING
The agenda for the City Council of the City of Hollister regular meeting of June 18, 2024 was posted on the bulletin board at City Hall on June 14, 2024 per Government Code Section 54954.2.

City of Hollister City Council Meeting

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PUBLIC PARTICIPATION NOTICE
The public may attend meetings in person or watch meetings via live stream at:

City of Hollister Website:
http://hollisterca.iqm2.com/Citizens/Default.aspx

Community Media Access Partnership (CMAP):
http://cmaptv.com/watch/

City of Hollister YouTube Channel:
https://www.youtube.com/@cityofhollistercalifornia1489

City of Hollister Facebook Live at:
https://www.facebook.com/cityofhollister

If you wish to make a public comment remotely during the meeting, please use the zoom registration link below:

https://us02web.zoom.us/webinar/register/WN_MNOr95ZCQrWzERqd5zRuwQ

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 636-4300. Notification 48 hours prior to the meeting will enable the City to attempt to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II].

To access written translation during the meeting, please scan the QR Code or click this link | Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace:
https://attend.wordly.ai/join/NLJC-7137
Choose Language and Click Attend | Seleccione su lenguaje y haga clic en asistir

Use a headset on your phone for audio or read the transcript on your device. | Use sus auriculares para escuchar el audio o leer la transcripción en el dispositivo.

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PROCLAMATION

Honoring July as Park and Recreation Month

WHEREAS, parks and recreation are an integral part of communities throughout this country, including the City of Hollister; and
WHEREAS, parks and recreation promote health and wellness, improving the physical and mental health of people who live near parks; and
WHEREAS, parks and recreation promote time spent in nature, which positively impacts mental health by increasing cognitive performance and well-being and alleviating illnesses such as depression, attention deficit disorders, and Alzheimer's; and WHEREAS, parks and recreation encourage physical activities by providing space for popular sports, hiking trails, swimming pools, and many other activities designed to promote active lifestyles; and
WHEREAS, park and recreation programming and education activities, youth sports, and environmental education are critical to childhood development; and WHEREAS, parks and recreation increase a community’s economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction; and WHEREAS, parks and recreation are fundamental to the environmental well-being of our community; and
WHEREAS, parks and recreation are essential and adaptable infrastructures that make our communities resilient in the face of natural disasters and climate change; and WHEREAS, our parks and natural recreation areas ensure the ecological beauty of our community and provide a place for children and adults to connect with nature and recreate outdoors; and
WHEREAS, the U.S. House of Representatives has designated July as Parks and Recreation Month; and
WHEREAS, the City of Hollister recognizes the benefits of parks and recreation resources.

NOW, THEREFORE, I, Mia Casey, Mayor of Hollister, do hereby proclaim July as Park and Recreation Month.

IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the seal of the City of Hollister this 18th day of June 2024.

______________________________
Mia Casey, Mayor

ATTEST:

________________________________
Jennifer Woodworth, City Clerk

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # City Manager-2024-22

AGENDA ITEM: PRESENTATION BY CALIFORNIA DEPARTMENT OF

TRANSPORTATION (CALTRANS) AND COUNCIL OF SAN BENITO COUNTY

GOVERNMENTS (SBCOG)

DEPARTMENT: City Manager
DEPARTMENT HEAD: David Mirrione, City Manager
STAFF CONTACT: David Mirrione, City Manager

RECOMMENDED ACTION: Receive a presentation and provide possible direction to staff.

DISCUSSION: The California Department of Transportation (Caltrans) and the Council of San Benito County Governments (SBCOG) will provide a presentation to the City Council about the State Route 156 Improvement Project and California State Route 25.

The Council of San Benito County Governments’ mission is to improve the mobility of San Benito County travelers by planning for and investing in a multi -modal transportation system that is safe, economically viable, and environmentally friendly. Caltrans’ mission is to provide a safe and reliable transportation network that serves all people and respects the environment.

During this presentation, Caltrans and SBCOG will discuss the upcoming improvement project of State Route 156 and any pertinent information about California State Route 25.

This includes discussion about any current and upcoming project’s location and duration.

Additional education will be provided on traffic detours and potential impacts for frequent travelers.

FISCAL IMPACT: N/A

PREVIOUS COUNCIL OR COMMISSION ACTION: At the May 21, 2024, City Council meeting, the Council requested a presentation regarding ongoing roadway improvements.

CEQA: N/A

ATTACHMENTS:

1. Caltrans SR 156 Improvement Project Presentation Document

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Union Road Closure
•Several week closure of Union Road; detour via San
Juan Hollister Road.
•Late July –late August, weather permitting
•Necessary to reconstruct Union Road/SR 156
intersection to align and improve access with new
expanded highway
•After reopening, two exciting milestones will be
met:
•Traffic on SR 156 will be shifted onto the new
paving just south of the existing highway
•A new roundabout will be in operation at Bixby
Road.

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Traffic Control Changes
•Traffic control changes will be implemented to support detour traffic •Temporary closure of Mitchell Rd immediately following Union Road reopening •Improvements to old intersection and repave old highway for frontage road access •SR 156 Improvement Project anticipated to be complete in Fall 2025

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Public Outreach
•Key Stakeholder Presentations –May
•City of Hollister City Council, San Benito County Board of Supervisors, City of San Juan Bautista •Press Release(s) –Early/mid June and approximately 1-week before closure •Outreach Flier in English/Spanish
•Emailed/shared in early June
•Mailed to properties just north/south of SR 156 between Bixby San Juan Hollister Road in June •Social Media in English/Spanish –Ongoing (SBCOG and Caltrans D5) •Temporary, portable CMS signs in advance of closures
•Caltrans District 5 Public Information team at 805-549-3318 or [email protected]

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1 City Council of the City of Hollister
Minutes of the Regular Meeting

June 4, 2024, 4:00 p.m.

City Council Chamber, City Hall
375 Fifth Street, Hollister, CA 95023

Members Present: Mia Casey, Mayor
Rick Perez, District 1
Dolores Morales, District 3
Tim Burns, District 4

Members Absent: Rolan Resendiz, District 2
______________________________________________________________________

1. CALL TO ORDER
Mayor Casey called the regular meeting of the City Council of the City of Hollister to order at 4:00.

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE
Councilmember Burns led the Pledge of Allegiance.

4. CLOSED SESSION - REPORT OUT
City Attorney Mary Lerner reported no reportable action was taken in closed session.

5. SPECIAL ORDERS OF THE DAY

5.1 PRESENTATION FROM VISIT SAN BENITO COUNTY
Irene Davis, Board President of Visit San Benito County, provided a presentation on the organization and their efforts to promote the County as a whole via their website and showcase the County through organizations, such as Visit California and the Central Coast Tourism Council. Ms. Davis requested the City provide $150,000 to help fund the Visit San Benito County organization and also requested a percentage of the City's transient occupancy tax revenue.

Councilmember Burns suggested the organization also promote the cannabis industry as part of its support for agriculture.

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2 Mayor Casey suggested partnering with Pinnacles National Park or related organization to help promote the destination and related tourism in San Benito County.

Mayor Casey opened public comment at 4:17 p.m.

Kerilyn LaFournaise commented on the positive financial impact tourism can have for San Benito County and its potential support for the community, including agriculture.

Violet LaFournaise supported the Visit San Benito County organization and its ability to promote agritourism in the community.

Kris Waller read a letter from Amy Herzog, President of the Central Coast Tourism Council, supporting the funding request by the Visit San Benito County organization.

Leslie David, Executive Director of BenitoLink, reported on community listening sessions held by BenitoLink, which helped spur the creation of the Visit San Benito County organization to address the need to promote tourism in San Benito County.

Sallie Calhoun, owner of Paicines Ranch, spoke regarding the need for an organization to support agritourism in San Benito County and supported the funding request by the Visit San Benito County organization.

Darin Del Curto supported the Visit San Benito County organization and read a letter from Terry Selk, Executive Director for Yolo County Visitors Bureau, which supported the funding request by the Visit San Benito County organization.

Kate Modic supported the Visit San Benito County organiza tion and supported their funding request.

Tim Borland, Vice President of Visit San Benito County, spoke in support of the agritourism industry in San Benito County and supported the funding request by the Visit San Benito County organization.

Mike Fisher supported the Visit San Benito County organization and its ability to attract jobs and tourism to San Benito County.

Gene Zanger commented on the importance of investing in tourism and supported the funding request by the Visit San Benito County organization.

Mike Kohne supported the Visit San Benito County organization and supported their funding request.

Mayor Casey closed public comment at 4:39 p.m.

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3 Councilmember Burns stated his support for the Visit San Benito County organization and requested additional information prior to the City providing funding.

6. PUBLIC INPUT FOR ITEMS NOT ON THE AGENDA
Bill Mifsud spoke regarding a recent code enforcement infraction received by his business, Bill's Bullpen.

Robin Pollard requested a safe trail to go up Vista Park Hill.

7. CONSENT ITEMS
Councilmember Burns requested and received additional information regarding agenda items 7.3 and 7.7.

City Manager David Mirrione pulled Item 7.6 from the consent calendar.

Mayor Casey pulled Item 7.9 from the consent calendar.

Mayor Casey opened public comment at 4:57 p.m.

Bella Rosales expressed concern regarding the desire to include special districts as a part of the Local Area Formation Commission.

Robin Pollard expressed concern regarding the discing procedures at Vista Park Hill and supported mowing there instead.

Robin Pollard supported the use of an arborist to care for City trees.

Mayor Casey closed public comment at 5:01 p.m.

Moved by: Councilmember Perez
Seconded by: Councilmember Morales

Adopt the Consent Calendar except for agenda items 7.6 and 7.9.

Ayes (4): Mayor Casey, Councilmember Perez, Councilmember Morales, and Councilmember Burns
Absent (1): Councilmember Resendiz
Carried (4 to 0)

7.1 APPROVE MAY 21, 2024 MEETING MINTUES

7.2 CLAIM AGAINST THE CITY – MARIA MENDOZA, MELISSA SOLIZ,

PATRICIA CASTRO, AND YANETH SOLIS
Moved by: Councilmember Perez
Seconded by: Councilmember Morales

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4 Deny the claim and authorize staff to send the notice of rejection to the claimant.

Carried

7.3 CLAIM AGAINST THE CITY – FILED BY MARLON MOSS
Moved by: Councilmember Perez
Seconded by: Councilmember Morales

Deny the claim and authorize staff to send the notice of rejection to the claimant.

Carried

7.4 RATIFY APPOINTMENTS TO FILL TWO VACANCIES ON THE

PLANNING COMMISSION
Moved by: Councilmember Perez
Seconded by: Councilmember Morales

Ratify the appointments of David Agaliotis and Hani Mayzouni to fill vacancies on the Planning Commission.

Carried

7.5 ADOPT A RESOLUTION APPROVING A BLOCK PARTY STREET

CLOSURE
Moved by: Councilmember Perez
Seconded by: Councilmember Morales

Adopt a resolution approving the temporary street closure of a portion of C Street for a Graduation Block Party.

Carried

7.7 ADOPT A RESOLUTION APPROVING AN AGREEMENT WITH LONG’S

CUSTOM DISCING TO MITIGATE WEEDS ON CERTAIN PROPERTIES
Moved by: Councilmember Perez
Seconded by: Councilmember Morales

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5 Adopt a resolution approving an agreement with Long’s Custom Discing to mitigate weeds on certain properties and authorize the Mayor to sign the agreements.

Carried

7.8 ADOPT A RESOLUTION APPROVING AMENDMENT 1 TO THE WEST COAST ARBORISTS, INC. PROFESSIONAL SERVICES AGREEMENT
Moved by: Councilmember Perez
Seconded by: Councilmember Morales

Adopt a resolution authorizing the City Manager to sign Amendment No. 1 to the Professional Services Agreement with West Coast Arborists, Inc. for tree trimming and related services.

Carried

7.10 ADOPT A RESOLUTION APPROVING THE RENEWAL OF THE SAFE

PROGRAM MOU
Moved by: Councilmember Perez
Seconded by: Councilmember Morales

Adopt a resolution authorizing the City Manager to sign the proposed Support, Awareness, Follow-Up, and Engagement (S.A.F.E.) Program Memorandum of Understanding (MOU) for continued partnership between the Hollister Police Department and San Benito County Behavioral Health Department.

Carried

7.6 ADOPT A RESOLUTION FOR LOCAL AGENCY FORMATION

COMMISSION ALTERNATIVE FUNDING STRUCTURE
City Attorney Mary Lerner provided the staff report outlining the proposed changes the to funding for San Benito County Local Agency Formation Commission (LAFCO).

Mayor Casey provided information regarding the legally mandated makeup of LAFCO and the proposed funding structure.

Moved by: Mayor Casey

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6 Adopt a resolution for Local Agency Formation Commission for an alternative funding structure.

Fail

7.9 ADOPT A RESOLUTION APPROVING AN MOU WITH THE CITY OF

SAN JUAN BAUTISTA FOR THE USE OF ABBE PARK FIELD
City Manager David Mirrione outlined the terms included in the proposed MOU.

Mayor Casey expressed concern regarding Hollister staff administering the program for the City of San Juan Bautista without receiving reimbursement for services.

City Manager Mirrione stated he could speak with the San Juan Bautista City Manager about the reimbursement of costs in the future.

Approval pending total costs be noted in the agreement and conversation with San Juan Bautista regarding potential reimbursements of costs and indemnity
Moved by: Councilmember Burns
Seconded by: Councilmember Morales

Adopt a resolution approving a Memorandum of Understanding (MOU) between the City of Hollister and the City of San Juan Bautista for the use of Abbe Park Ball field located at 40 Polk Street in San Juan Bautista.

Additional direction was given to the City Manager to discuss with the City of San Juan Bautista inclusion of a provision for the City of San Juan Bautista to reimburse the City of Hollister for costs incurred and indemnify the City of Hollister.

Ayes (4): Mayor Casey, Councilmember Perez, Councilmember Morales, and Councilmember Burns
Absent (1): Councilmember Resendiz
Carried (4 to 0)

8. COUNCIL BUSINESS

8.1 ADOPT A RESOLUTION APPROVING THE BRIGGS BUILDING

AUTONOMOUS ROBOT SECURITY AGREEMENT
Public Works Director William Via provided the staff report.

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7 Councilmember Burns requested and received additional information regarding the terms of the proposed agreement and th e capabilities of the autonomous robot.

Councilmember Morales expressed concern regarding the potential negative impacts of the autonomous robot.

City Manager David Mirrione suggested tabling the item until the vendor is able to attend the meeting.

Mayor Casey opened public comment at 5:27 p.m.

Robin Pollard inquired if the autonomous robot would attack pigeons expressing concern regarding the number of pigeons in parking structure.

Ms. Pollard also requested the building be cleaned.

Mayor Casey closed public comment at 5:28 p.m.

Councilmember Burns supported continuing the item to a future City Council meeting.

Moved by: Councilmember Burns
Seconded by: Councilmember Morales

To continue consideration of the item to the June 18, 2024 City Council meeting.

Ayes (4): Mayor Casey, Councilmember Perez, Councilmember Morales, and Councilmember Burns
Absent (1): Councilmember Resendiz
Carried (4 to 0)

8.2 REQUEST BY DEL CURTO BROTHERS CONSTRUCTION COMPANY, INC. FOR DEFERRAL OF IMPACT FEES FOR THE 400 BLOCK

PROJECT
City Manager David Mirrione provided the staff report.

Councilmember Burns suggested the City charge interest based on when the impact fees are paid according to the current Local Agency Investment Fund (LAIF) rate of 4.322%.

Mayor Casey opened public comment at 5:35 p.m.

Katherine Sanchez opposed deferral of impact fees for the 400 San Benito Block project and stated the fees will help support Hollister residents.

Darin Del Curto requested an extension on the agreement with th e City for the payment of the 400 Block condominiums.

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8 Irene Davis supported the request to extend the timeline for payment of the impacts fees for the 400 Block project.

Mayor Casey closed public comment at 5:40 p.m.

By consensus, the City Council directed staff to return with an amendment to the agreement for deferral of impact fees for the 400 Block project.

9. PUBLIC HEARINGS

9.1 A PUBLIC HEARING TO ADOPT A RESOLUTION APPROVING THE FINAL ENGINEER’S REPORT, CONFIRM THE BOUNDARY AND

ASSESSMENTS, AND ORDER THE LEVY AND COLLECTION OF
ASSESSMENTS OF LANDSCAPE AND LIGHTING DISTRICT NO. 93-1 FOR FISCAL YEAR 2024-2025
Assistant Engineer Dillon Albert provided the staff report.

Mayor Casey opened the public hearing at 5:47p .m.

There were no speakers for this item.

Mayor Casey closed the public hearing at 5:48 p.m.

Moved by: Councilmember Burns
Seconded by: Councilmember Morales

Adopt a resolution approving the Final Engineer’s Report, confirming the boundary and assessments, and ordering the levy and collection of assessments of Landscape and Lighting District No. 93-1 for Fiscal Year 2024-2025.

Ayes (4): Mayor Casey, Councilmember Perez, Councilmember Morales, and Councilmember Burns
Absent (1): Councilmember Resendiz
Carried (4 to 0)

9.2 DRAFT FY 2024-25 RECOMMENDED BUDGET
City Manager David Mirrione and Administrative Services Director Casey Estorga provided the staff report outlining the proposed Fiscal Year 2024- 25 budget. The department heads provided an overview of their proposed projects for the upcoming fiscal year and responded to City Council questions.

By consensus, the City Council directed staff to keep the City Council discretionary funds budgeted at $50,000 per member of Council with staff time to implement Council requests being charged to the discretionary funds.

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9 By consensus, the City Council directed staff to keep the City Council travel budget at $5,000 per member of Council.

The City Council recessed at 7:09 p.m. and reconvened at 7:22 p.m.

By consensus, the City Council directed the City Manager to move forward with exercising the termination clause for the current fire services contracts with the City of San Juan Bautista and San Benito County.

Mayor Casey reported on a request from the public for a flashing crosswalk or stop sign at Sunset and Southside.

City Manager Mirrione reported City staff also received the request and contacted the requestor to discuss.

By consensus, the City Council directed the City Manager work towards filling the Economic Development Manager position and/or providing funding to the Economic Development Council.

Mayor Casey opened the public hearing at 9:21 p.m.

Bill Avera supported a decrease to sewer rates if a rate study supports it and commented on the City's subsidizing of County fire services.

Mayor Casey closed the public hearing at 9:23 p.m.

10. INFORMATIONAL REPORTS

10.1 COMMITTEE ASSIGNMENTS
Councilmember Morales reported attending a meeting of the California Council of Governments.

10.2 COUNCIL REPORTS
Councilmember Burns requested additional information regarding paid and non-paid internships for the City and requested staff inspect the walkway at Vista Park Hill regarding a potentially missing railing.

Councilmember Perez requested certificates of recognition for Henry Salcido at Visions Window Cleaning and Hollister RV.

Councilmember Morales requested the Council delegate authority to the City Manager to send letters of support and lobbying efforts, as needed, to pursue Congressional Community Project Funds.

City Manager David Mirrione provided an update on previous work by City staff regarding internships and confirmed Council consensus for the remaining items.

10.3 CITY MANAGER REPORT
No report.

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10 1. UPDATED CITY COUNCIL PROJECTS

11. CLOSED SESSION
Mayor Casey opened public comment at 9:32 p.m.

There were no speakers for the closed session agenda items.

Mayor Casey closed public comment at 9:32 p.m.

By consensus, the City Council approved continuing the meeting past 10:00 p.m.

City Attorney Mary Lerner read the closed session item titles.

The Council adjourned to closed session at 9:34 p.m.

11.1 CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54957.6
Agency designated representatives: (City Manager David Mirrione and Administrative Services Director Casey Estorga)
Employee Organizations: Service Employees International Union (SEIU), Local 521; Hollister Firefighters Union (HFFU), Local 3395; Hollister Peace Officer Association (HPOA); and un-represented employees in classifications designated as Executive Management

11.2 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE 54956.9
Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of section 54956.9 of the Government Code (1 case)

11.3 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE 54956.9
Initiation of Litigation Pursuant to paragraph (4) of subdivision (d) of section 54956.9 of the Government Code (Deciding Whether to Initiate Litigation): 3 cases

12. CLOSED SESSION - REPORT OUT
City Attorney Mary Lerner reported no reportable action was taken in closed session.

13. ADJOURNMENT
Mayor Casey adjourned the regular meeting at 10:38 p.m.

Jennifer Woodworth, City Clerk

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # City Clerk-2024-25

AGENDA ITEM: CLAIM AGAINST THE CITY – FILED BY MIREYA BUGARIN

DEPARTMENT: City Clerk
DEPARTMENT HEAD Jennifer Woodworth, City Clerk
STAFF CONTACT: Angie Gonzalez, Deputy City Clerk

RECOMMENDED ACTION: Deny the claim and authorize staff to send the notice of rejection to the claimant.

DISCUSSION: Mireya Bugarin filed a claim against the City on April 29, 2024. Staff sent a copy of this claim to the City’s risk manager/claims adjuster, who recommended denial of the claim. Staff further requests authorization to send the notice of rejection of claim to the claimant.

FISCAL IMPACT: Unknown.

PREVIOUS COUNCIL OR COMMISSION ACTION: None.

CEQA: Not a Project.

ATTACHMENTS:

1. Claim

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # Parks & Recreation-2024-05

AGENDA ITEM: INFORMATIONAL REPORT FOR 4TH OF JULY FIREWORKS EVENT

DEPARTMENT: Parks & Recreation
DEPARTMENT HEAD: Tina Garza, Interim Parks & Recreation Director STAFF CONTACT: Tina Garza, Interim Parks & Recreation Director

RECOMMENDED ACTION: Accept the report and provide possible direction to staff.

DISCUSSION: The Hollister Parks and Recreation Department will host a community fireworks celebration at Hollister Airport on July 4th, 2024. The event will run from 5:30 p.m. to 10:00 p.m. and feature live musical performances, a DJ, food vendors, and kid - friendly activities such as laser tag, mini golf, and bounce houses. The band will perform onstage near the airport's Seabrisas Eatery restaurant. The ABC agency has granted preliminary approval for an extended beer garden. From 5 p.m. to 11 p.m., the San Benito County Local Transportation Authority will provide shuttle services at various locations throughout Hollister. The annual fireworks show highlights the city's Independence Day celebrations, drawing residents and visitors. Organizing such a significant event requires detailed planning and coordination by various city departments. This report details the responsibilities of city staff in organizing the fireworks show.

Responsibilities of City Staff:

Parks and Recreation Department
 Develop a detailed event plan, including timelines, schedules, and resource allocation.
 Vendor Coordination: Liaise with fireworks vendors to secure contracts and permits and ensure compliance with safety regulations.
 Logistics Management: Coordinate the setup of the event area, including stages, seating, and safety barriers.
 Security Patrols: Provide on-site security to prevent and respond to incidents.  Public Information: Disseminate information about the event through various channels, including social media, city website, and local media.  Resident Outreach: Engage with the community to inform them of event details and address any concerns.
 Collaborate with the Risk Manager to ensure the emergency action plan is adequate and complies with policy.

Police Department
 Crowd Control: Developed and will implement crowd control strategies to ensure the safety of attendees.
 Traffic Management: Plan and manage road closures, parking, and traffic flow

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around the event area.

Fire Department
 Fire Safety Inspections: Conduct pre-event fireworks setup inspections to ensure fire code compliance.
 Emergency Response: Coordinate with EMS to provide emergency medical services during the event.
 Fireworks Supervision: Oversee the handling and ignition of fireworks to prevent accidents.

Airport Department
 Participate in the organization and planning of this event to make sure airport requirements are implemented and assets and interests are protected .  Notify the Federal Aviation Administration and perform any necessary coordination.
 Regulatory Compliance: Ensure the event complies with local, state, and federal regulations.
 Notify airport tenants of the fireworks show and schedule for July 4th and 5th, and for the moving of aircraft from and return to the event viewing area.  Prepare the Airport facility to hold a safe event including mowing, site setup and removal of runway and taxiway edge lights.
 Work the event to provide aviation safety, closing/opening of runways and taxiways, monitor crowd control and parking, monitor airport tenants and provide coordination in emergency response on airport in the aircraft operations area.  Coordinate the post event cleanup, reinstall runway and taxiway edge lights, perform foreign object debris (FOD) checks and sweeping to return the runways, taxiways, and aircraft parking areas to full service.

Public Works Department
Coordinate Setup for Safety Signage Placement
 Sign Placement: Ensure signs are strategically positioned to warn the public about the event and encourage safe driving.
 Notification: Utilize clear and prominent signage to notify drivers of the event and any alterations to regular traffic routes.

Equipment Set-Up and Removal
 Order Extra Sign Boards: Procure additional signboards to ensure effective communication and alert the public about the event.
 Setup and Removal: Oversee the installation of necessary equipment and the safe dismantling and removal of all temporary structures and signage after the event.

Administrative Services
Risk Manager
 Insurance Coverage: Ensure adequate insurance coverage is in place.  Safety: Guarantee the safety of all participants and staff.  EAP: Emergency Action Plan

The successful execution of the annual fireworks show relies on the coordinated efforts of various city departments. Each department has specific responsibilities that

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contribute to the overall success and safety of the event. By clearly delineating these roles and ensuring effective communication and collaboration, the city can continue to provide a memorable and safe celebration for the community.

FISCAL IMPACT: $75,000.00 – Fund 101. This covers security, permits, entertainment, activities, rentals, staff time, and the fireworks display.

PREVIOUS COUNCIL OR COMMISSION ACTION: During last year's 4th of July event at Brigantino Park, the City Council of the City of Hollister approved the expenses for the FY 2023-24 budget, which was adopted on July 26, 2023, under Resolution 2023 - 143, and accepted the debriefing staff report on September 5, 2023.

CEQA: Not Required

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # Airport-2024-03

AGENDA ITEM: A RESOLUTION APPROVING A LEASE EXTENSION WITH WISK AERO LLC. FOR LEASE OF THE BUILDING SPACE AT 90 AIRPORT DRIVE AT

THE HOLLISTER MUNICIPAL AIRPORT

DEPARTMENT: Airport
DEPARTMENT HEAD: Jeff Crechriou, Airport Director
STAFF CONTACT: Jeff Crechriou, Airport Director

RECOMMENDED ACTION:

1. Adopt a resolution approving Amendment No. 1 for Lease Extension with Wisk Aero LLC. for the building space at 90 Airport Drive; and

2. Authorize City Manager to execute Lease Amendment No. 1.

DISCUSSION: Building and hangar rent accounts for 68% of the Airport's annual revenue. Wisk Aero LLC. is a long-term tenant at the Airport with multiple leases in good standing. The Airport desires to extend the lease with Wisk Aero LLC.

At the regular meeting of December 21, 2020, the City Council adopted Resolution No. 2020-228, approving a lease with Wisk Aero LLC. for 4,300 square feet of hangar and office space located at 90 Airport Drive at the Airport with a base term of November 1, 2020, through July 31, 2024, and provision for an extension up to an additional four (4) years.

In late May, Wisk Aero LLC. notified the Airport of their desire to exercise the option to extend the term for an additional four (4) years. The term of the Lease Extension is August 1, 2024, through July 31, 2028. All oth er terms and conditions of the Lease Agreement dated November 1, 2020, shall remain in full force and effect.

FISCAL IMPACT: The Lease Extension will generate revenue to the Airport Enterprise Fund 601 of more than $166,000.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Lease Amendment No. 1

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING LEASE EXTENSION WITH WISK AERO LLC. FOR LEASE OF THE BUILDING SPACE AT 90 AIRPORT DRIVE AT THE HOLLISTER

MUNICIPAL AIRPORT

WHEREAS, building and hangar rent accounts for 68% of the Airport's annual revenue; and

WHEREAS, Wisk Aero LLC. is a long-term tenant at the Airport with multiple leases in good standing. The Airport desires to extend the lease with Wisk Aero LLC.; and

WHEREAS, at the regular meeting of December 21, 2020, the City Council adopted Resolution No. 2020-228, approving a lease with Wisk Aero LLC, for 4,300 square feet of hangar and office space located at 90 Airport Drive at the Airport with a base term of November 1, 2020, through July 31, 2024, and provision for an extension up to an addition four (4) Years; and

WHEREAS, Wisk Aero LLC notified the Airport of their desire to exercise the option to extend the term for an additional four (4) years. The term of the Lease Extension is August 1, 2024, through July 31, 2028. All other terms and conditions of the Lease Agreement dated November 1, 2020, shall remain in full force and effect; and

WHEREAS, rent is currently $3,472.31 per month and is adjusted annually by CPI.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby:

1. Approve Amendment No. 1 for Lease Extension with Wisk Aero LLC. for the building space at 90 Airport Drive; and

2. Authorize the City Manager to execute Lease Amendment No. 1.

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Resolution No. 2024-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on June 18, 2024, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Mia Casey, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2024-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on June 18, 2024 at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on June 18, 2024.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

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AMENDMENT No. 1 TO WISK AERO LLC (90 AIRPORT DRIVE) AGREEMENT

AT THE HOLLISTER MUNICIPAL AIRPORT
This Amendment No. 1 to the lease agreement between Wisk-Aero LLC and the City of Hollister dated November 1, 2020, regarding the lease of real property located at the Hollister Municipal Airport, is made and entered into on the 1st day of August, 2024 between the City of Hollister and Wisk Aero LLC (each a "Party" and collectively, the "Parties").

Recitals
A. On April 1, 2014, the parties entered into an Agreement by and between the City of Hollister, a California city (“City”) and Zee- Aero Inc, (“Tenant”) for the lease of real property from City by Tenant. Said real property being a portion of the Hollister Municipal Airport, identified as 90 Airport Drive (hereinafter “Leased Premises”). Said Agreement is referred to herein as “the Agreement” or “the Lease.” The term of this Lease shall be for a period of two (2) years. Tenant shall have an option to renew for up to an additional three (3) year period.

B. Tenant exercised the Lease option to renew for the additional three (3) years.

C. On December 10th, 2020, the City Council approved Resolution No. 2020- 228 executing a three year and nine-month lease with a base term of November 1, 2020 to July 31, 2024 and provision for extension up to four (4) years.

D. Tenant desires to exercise the Lease option for an additional four (4) years.

E. Wisk Aero’s name has changed throughout its ten years as a tenant at the Airport. Wisk-Aero has previously done business as “Zee-Aero” and “Kitty Hawk”.

NOW, THEREFORE, the Parties agree to this first amendment to the Lease as follows:

Amendment No. 1

1. Section 1.02 of the Agreement is hereby replaced in its entirety to read as follows:

“1.02 Term. The term of this Lease shall be for a period of four (4) years, commencing on August 1, 2024 and terminating on July 31, 2028. Tenant shall have an option to request renewal for up to an additional four (4) year period terminating July 31, 2032, subject to Airport approval. Tenant shall notify the Airport of their intent to request renewal a minimum of ninety (90) days prior to the end of this Lease term.

2. All other terms and conditions of the Agreement dated November 1, 2020, shall remain in full force and effect.

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CITY OF HOLLISTER,
a municipal corporation Wisk Aero LLC

By. _____________________________ By. _________________________ David Mirrione, City Manager
Title. ________________________

APPROVED AS TO FORM:

________________________________
Mary Lerner, City Attorney

ATTEST: By: _________________________

_______________________________ Title: ________________________ Jennifer Woodworth, MMC, City Clerk

* Note: Signature must be notarized.

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # Airport-2024-02

AGENDA ITEM: A RESOLUTION APPROVING A LEASE EXTENSION WITH WISK AERO LLC. FOR LEASE OF A PORTION OF THE WEATHERLY BUILDING AT THE

HOLLISTER MUNICIPAL AIRPORT

DEPARTMENT: Airport
DEPARTMENT HEAD: Jeff Crechriou, Airport Director
STAFF CONTACT: Jeff Crechriou, Airport Director

RECOMMENDED ACTION:

1. Adopt a resolution approving Amendment No. 1 for the Lease Extension with Wisk Aero LLC. for a portion of the Weatherly Building, Unit C; and

2. Authorize City Manager to execute Lease Amendment No. 1.

DISCUSSION: Building and hangar rent accounts for 68% of the Airport's annual revenue. Wisk Aero LLC. is a long-term tenant at the airport with multiple leases in good standing. The Airport desires to extend the lease with Wisk Aero LLC.

At the regular meeting of December 21, 2020, the City Council adopted Resolution No. 2020-227, approving a Lease with Wisk Aero LLC. for 3,098 square feet of hangar space in the Weatherly Building, Unit C, 50 Skylane Drive, at the Airport with a base term of November 1, 2020, through July 31, 2024, and provision for an extension up to an additional four (4) years.

In late May, Wisk Aero LLC. notified the Airport of their desire to exercise the option to extend the term for an additional four (4) years. The term of the Lease Extension is August 1, 2024, through July 31, 2028. All other terms and conditions of the Lease Agreement dated November 1, 2020, shall remain in full force and effect.

FISCAL IMPACT: The Lease Extension will generate revenue to the Airport Enterprise Fund 601 of more than $100,000.

PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Lease Amendment No. 1

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER APPROVING LEASE EXTENSION WITH WISK AERO LLC. FOR LEASE

OF A PORTION OF THE WEATHERLY BUILDING AT THE HOLLISTER

MUNICIPAL AIRPORT

WHEREAS, building and hangar rent accounts for 68% of the Airport's annual revenue; and

WHEREAS, Wisk Aero LLC. is a long-term tenant at the Airport with multiple leases in good standing. The Airport desires to extend the lease with Wisk Aero LLC.; and

WHEREAS, at the regular meeting of December 21, 2020, the City Council adopted Resolution No. 2020-227, approving a Lease with Wisk Aero LLC. for 3,098 square feet of hangar space in the Weatherly Building, Unit C, 50 Skylane Drive, at the Airport with a base term of November 1, 2020, through July 31, 2024, and provision for an extension up to an additional four (4) years; and

WHEREAS, rent is currently $1,970.69 per month and is adjusted annually by CPI.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby:

1. Approve Amendment No. 1 for Lease Extension with Wisk Aero LLC. for a portion of the Weatherly Building, Unit C; and

2. Authorize the City Manager to execute Lease Amendment No. 1.

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Resolution No. 2024-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on June 18, 2024, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Mia Casey, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on June 18, 2024.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

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AMENDMENT NO. 1 TO WISK AERO LLC (WEATHERLY BUILDING UNIT C)

AGREEMENT AT THE HOLLISTER MUNICIPAL AIRPORT
This Amendment No. 1 to the lease agreement between Wisk-Aero LLC and the City of Hollister dated November 1, 2020, regarding the lease of real property located at the Hollister Municipal Airport, is made and entered into on the 1st day of August 2024 between the City of Hollister and Wisk-Aero LLC (each a "Party" and collectively, the "Parties").

Recitals
A. On April 1, 2016, the parties entered into an Agreement by and between the City of Hollister, a California city (“City”) and Zee- Aero Inc, (“Tenant”) for the lease of real property from City by Tenant. Said real property being a portion of the Hollister Municipal Airport, identified as the Weatherly Building, Unit C, known as 50 Skylane Drive, Hollister, CA 95023 (hereinafter “Leased Premises”). Said Agreement is referred to herein as “the Agreement” or “the Lease.” The Term of this Lease shall be for a period of on (1) year.

Tenant shall have the option to renew for up to an additional three (3) years.

B. Tenant exercised the Lease option to renew lease for the additional three (3) years.

C. On December 10, 2020, the City Council approved Resolution No. 2020- 227 executing a three year and nine-month lease with a base term of November 1, 2020, to July 31, 2024, and provision for extension up to four (4) years.

D. Tenant desires to exercise the Lease option for an additional four (4) years.

E. Wisk-Aero’s name has changed throughout its ten years as a tenant at the Airport. Wisk-Aero has previously done business as “Zee-Aero” and “Kitty Hawk”.

NOW, THEREFORE, the Parties agree to this first amendment to the Lease as follows:

Amendment No. 1

1. Section 1.02 of the Agreement is hereby replaced in its entirety to read as follows:

“1.02 Term. The term of this Lease shall be for a period of four (4) years, commencing on August 1, 2024, and terminating on July 31, 2028. Tenant shall have an option to request renewal for up to an additional four (4) year period terminating July 31, 2032, subject to Airport approval. Tenant shall notify the Airport of their intent to request renewal a minimum of ninety (90) days prior to the end of this Lease term.”

2. All other terms and conditions of the Agreement dated November 1, 2020, shall remain in full force and effect.

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CITY OF HOLLISTER,
a municipal corporation Wisk Aero LLC

By. _____________________________ By. _________________________ David Mirrione, City Manager
Title. ________________________

APPROVED AS TO FORM:

________________________________
Mary Lerner, City Attorney

ATTEST: By: _________________________

_______________________________ Title: ________________________ Jennifer Woodworth, MMC, City Clerk

* Note: Signature must be notarized.

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # Airport-2024-07

AGENDA ITEM: A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE

CITY OF HOLLISTER AND WISK AERO LLC FOR AN AIRPORT ACCESS PERMIT

DEPARTMENT: Airport
DEPARTMENT HEAD: Jeff Crechriou, Airport Director
STAFF CONTACT: Jeff Crechriou, Airport Director

RECOMMENDED ACTION:

1. Adopt a resolution approving an Agreement between the City of Hollister and Wisk Aero LLC for an Airport Access Permit, contingent upon satisfactory Federal Aviation Administration review; and

2. Authorize the City Manager to finalize and execute the Agreement after the Agreement has been reviewed by the Federal Aviation Administration (“FAA”).

DISCUSSION: Wisk Aero LLC (“Wisk”) has applied to the City of Hollister (“City”) for an Airport Access Permit (“Permit”). Wisk has been a long-term tenant at the airport with multiple leases in good standing. The City/Airport desires to enter into an agreement with Wisk for an Airport Access Permit which will grant Wisk “through -the-fence” access to the airport (“Agreement”).

The Permit is required for each parcel of land prior to the occupants of the parcel having the right to access the airport therefrom. (HMC, § 13.28.050 .) The proposed Permit will grant Wisk “through-the-fence” access to the airport which means access to the airport from a parcel adjacent to, but not part of, the airport. The Permit requires certain statements by the permittee which are best memorialized in an agreement. (See HMC, § 13.28.050.)

As a general principal, the FAA does not support agreements that grant access to the public landing area by aircraft stored and serviced offsite on adjacent property so “through-the-fence” agreements can create situations that could lead to violations of the airport’s federal obligations related to FAA grants. (FAA Compliance Order 5190.6B

12.7.) As such, the FAA recommends that the FAA determine whether arrangements granting access to the airfield from off-site locations are consistent with applicable federal law and policy. (FAA Compliance Order 51906B 12.7 e.) If the City Council approves the Agreement, airport staff will submit the Agreement to FAA for review. If the FAA determines the Agreement is in conformance with applicable law and policy, the City Manager will execute the Agreement.

FISCAL IMPACT: Wisk will pay a one thousand three hundred thirty-six dollar ($1,336) per year access fee and a seventy dollar ($70) per month per aircraft usage fee. The estimated annual revenue to the Airport Enterprise Fund 601 from the Agreement will be $3,016.

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PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Agreement – Access Permit

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING AN AGREEMENT BETWEEN THE CITY OF HOLLISTER

AND WISK AERO LLC FOR AN AIRPORT ACCESS PERMIT

WHEREAS, Wisk Aero LLC (“Wisk”) has applied to the City of Hollister (“City”) for an Airport Access Permit (“Permit”); and

WHEREAS, Wisk has been a long-term tenant at the airport with multiple leases in good standing. The City/Airport desires to enter into an agreement with Wisk for an Airport Access Permit which will grant Wisk “through-the-fence” access to the airport; and

WHEREAS, such Permit is required for each parcel of land prior to the occupants of the parcel having the right to access the airport therefrom; and

WHEREAS, the Permit will grant Wisk “through-the-fence” access to the City airport (“Airport”) from a parcel adjacent to, but not a part of, the Airport ; and

WHEREAS, the Permit requires certain statements pursuant to City Municipal Code section 13.28.050 that are best memorialized in an agreement; and

WHEREAS, the Federal Aviation Administration (“FAA”) does not generally support agreements that grant access to the public landing area by aircraft stored and serviced offsite on adjacent property so “through-the-fence” agreements can create situations that could lead to violations of the Airport’s federal obligations related to FAA grants; and

WHEREAS, the FAA recommends that the FAA determine whether arrangements granting access to the airfield from offsite locations are consistent with applicable federal law and policy; and

WHEREAS, Airport staff will submit the approved agreement to the FAA for review.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby:

1. Adopt a resolution approving an Agreement between the City of Hollister and Wisk Aero LLC for an Airport Access Permit, contingent upon satisfactory Federal Aviation Administration review; and

2. Authorize the City Manager to finalize and execute the Agreement after the Agreement has been reviewed by the Federal Aviation Administration (FAA).

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Resolution No. 2024-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on June 18, 2024, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Mia Casey, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on June 18, 2024.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

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AIRPORT ACCESS PERMIT
This airport access permit (“Agreement”) is made and entered into this [DATE] day of [MONTH], 2024 (“Effective Date”) by and between the City of Hollister, a California municipal corporation (“City”), and Wisk Aero LLC, a limited liability corporation organized and existing under the laws of [STATE] (“User”), located at 1961c Airway Drive, Hollister, California.

RECITALS
This Agreement incorporates and is based upon the following representations and understandings:

WHEREAS, City is the owner and operator of the Hollister Municipal Airport, located in the County of San Benito, State of California (the “Airport”), with the power to grant rights and privileges, including the power to grant an airport access permit, with respect to the Airport, pursuant to the provisions of City Municipal Code Chapter 13.28, among other federal, state, and local laws, rules, and regulations; and
WHEREAS, the Airport is a federally obligated nonprimary public-use general aviation airport included in the National Plan of Integrated Airport Systems (“NPIAS”); and WHEREAS, the federal obligation to make an airport available for the use and benefit of the public does not impose any requirement on the City to permit access to the Airport from adjacent properties; and
WHEREAS, the City retains the right to take action for safety and/or security concerns requiring fencing around the Airport and closing access to the real property for which this Agreement is entered into; and
WHEREAS, the User leases real property immediately adjacent to the physical property of the Airport (“Property with Right of Access”); and
WHEREAS, the User seeks the right to taxi aircraft from the Property with Right of Access “through-the-fence” to the Airport property and to its runway and taxiway system; and WHEREAS, the parties desire to enter into this Agreement to comply with the Federal Aviation Administration regulations that permit airport sponsors to enter into through-the fence agreements with property owners provided the agreement complies with certain conditions set forth in this Agreement.

NOW, THEREFORE, and in consideration of the mutual terms and conditions hereinafter set forth, the City and User hereby agree to the following:

AGREEMENT
I. Property with Right of Access
Legal description of property with right of access:

Assessor’s Parcel Number 053-420-046

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2 1961c Airway Drive, Hollister, California 95023

II. Term of Agreement
The term of this Agreement shall commence on the Effective Date and shall continue for a five (5) year period, through and including [MONTH], [DATE], 2029. Upon the consent of the City, this Agreement may be renewed, subject to any changes deemed necessary by the City, for three (3) additional terms.

III. Prohibitions

A. No Commercial Aeronautical Uses: User shall not engage nor allow any person or entity to engage in any temporary or permanent commercial aeronautical activity on the Property with Right of Access. This prohibition includes the following but is not limited to any activity or service for compensation, exchange, trading, buying, selling, hiring, or any other revenue producing activity whether or not a profit is derived, which makes possible, or is required for the operation of an aircraft, or contributes to or is required for the safety of such operations.

B. Sale of Aviation Fuels Prohibited: User shall not sell aviation fuels on the Property with Right of Access nor shall User allow any person or entity to sell aviation fuels on the Property with Right of Access.

C. Prohibitions and Restrictions on Access: User is specifically prohibited from granting or selling any access and/or egress to the Airport through the Property with Right of Access to any other parties. This restriction also includes User taking reasonable precautions acceptable to City to prevent the accidental access to the Airport by any other parties.

IV. Airport Access Permit Fees
User agrees to pay the following access fees to the City according to the following terms:

A. City’s Basis for Access Fee: The access fee is based on the rates and charges of other on-airport tenants and operators making similar use of the Airport. For the purposes of this Agreement, the access fee reasonably covers the cost for the User’s access to the airport, $1,336.00 per year or $111.33 per month. This access fee is subject to annual Consumer Price Index (“CPI”) adjustments.

B. Access Fee Adjustment: If the CPI published for the current April is greater than the CPI published for April of the previous year, then the monthly access fee shall be increased in the same proportion that the CPI in the current April bears to the CPI published in April of the previous year. Provided that, if, on September 1 of each year, the CPI published for April is less than the CPI published for April of

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3 the previous year, then no adjustment shall be made in the access fee. For the purposes of this Agreement, the CPI used shall be that published by the United States Department of Labor, Bureau of Labor Statistics, CPI for all urban consumers in the San Francisco-Oakland-San Jose statistical area.

C. Usage Fee: A usage fee shall be fixed by the City Council for each Airport access permit based on the number of aircraft in use and operating through the fence access by the User. For the purposes of this Agreement, the usage fee is based upon the tie-down rental fee which is $70.00 per month per aircraft. This fee will be increased in accordance with the on-airport fees outlined above, through the term of this Agreement.

D. Payment: All Airport Access Permit fees shall be made payable to the City of Hollister and delivered or mailed to the following address and in advance on or before the first day of the month following the month for which payment is due.

Airport Department
City of Hollister
Re: Hollister Municipal Airport Access Permit Fee
60 Airport Drive
Hollister, CA 95023

E. Penalty for Late Payment: In the event any payments due under this permit remain unpaid for five (5) days, a late fee of ten percent (10%) shall be charged by the City. In the event User shall become delinquent for more than thirty-one (31) days, this Agreement shall be terminated by the City as further defined in Article X – Termination of Agreement.

V. Conditions and Restrictions
User’s right hereunder to access the Airport shall be subject to the following conditions:

A. User shall report to the Airport the aircraft in use and operating through the fence access by providing a copy of the FAA Aircraft Registration Certificate for such aircraft. User shall report to the Airport any change to the aircraft in use and operating through the fence access within five (5) days of such change.

B. The City shall require all pedestrian, vehicular, and aviation access points between the Property with Right of Access and real property outside of the Property with Right of Access, or portion thereof, be controlled using automated control-access devices, automated gate operators, closers with automatic locks, or other such reliable securing devices, or other means of affirmative security control acceptable to the Airport, that serves to continually safeguard the Airport from unauthorized access. The City Manager, the Airport Manager, or designee, or any

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4 other authority having jurisdiction for operation and safety of the Airport including the Federal Aviation Administration (“FAA”), the Transportation Security Administration (“TSA”), and Caltrans, shall have the right at any time to inspect the Property with Right of Access for conformance with this Agreement.

C. The City Manager, the Airport Manager, or designee is authorized by this Agreement to take appropriate action to ensure the Airport is safeguarded, including the temporary overriding of gates, doors, closers, and locks of damaged or otherwise inoperable gates and doors, or the placement of blockades or other types of barriers or security fencing as needed to secure the Airport.

D. All safety, security, and operational rules and regulations established by the FAA, TSA, Caltrans, or by any City ordinance, rules, regulation, policy, standard, or permit, or by any other regulatory authority with jurisdiction at the Airport whether currently in effect, hereafter adopted, or as may be amended, modified, changed, or superseded, shall be applicable to the Property with Right of Access.

E. Access gate(s) and door(s) placed by User which restrict access from Property with Right of Access to the Airport shall include a sign stating no trespassing, emergency contact information and the building address for Airport personnel, and such other information as the City Manager, Airport Manager, or designee may require. The form and content of such signage shall be subject to the approval of the Airport Manager or designee.

F. All designs and specifications for the security measures and means of access from Property with Right of Access, shall be subject to the prior review and approval by the City Manager, Airport Manager, or designee. The User shall obtain and submit to the City all approvals required by the FAA and TSA.

G. Development and improvements on Property with Right of Access must be in compliance with the Airport’s Airport Layout Plan. User shall submit form 7460- 1 to the FAA prior to beginning constructing any building or structure on Property with Right of Access. User conducting construction activities shall be responsible for assuring the construction traffic and activities do not interfere with the normal day to day operations of the Airport, do not create a safety hazard, do not compromise the airfield security integrity, and do not result in wear and tear on improved areas of the Airport.

H. In addition to Property with Right of Access, User operates from 2000 Aerostar, Hollister, CA (“2000 Aerostar”). Employees and/or contractors of Wisk and/or Boeing assigned to work at either 2000 Aerostar or Property with Right of Access (“Assigned Employees”) shall be knowledgeable of and follow applicable FAA rules and regulations, City Municipal Code Chapter 13.24, and any direction from

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5 the Airport Manager, City Manager, or their designee related to the movement of vehicles or pedestrians between Property with Right of Access and 2000 Aerostar.

I. When moving between, either as pedestrian or by vehicle, Property with Right of Access and 2000 Aerostar, User shall:

i. Give right of way to all aircraft under power and/or aircraft actively taxing (moving);

ii. Escort non-assigned employees and guests by an Assigned Employee; and

iii. Only move between Property with Right of Access and 2000 Aerostar as necessary and follow the path of travel exhibited in Exhibit B.

VI. Construction and Maintenance of Private-Use Infrastructure It is understood and agreed that the User shall construct all private-use infrastructure, required and acceptable to the City, at the User’s sole cost and expense. All required private-use infrastructure such as taxiway, fence, sign(s), taxiway lights, gates, security controls, etc., shall be listed and depicted in Exhibit A to this Agreement. Accordingly, User covenants and agrees as follows:

A. Construction and Maintenance: To construct the private-use infrastructure on the User’s or City’s property as may be required. All construction on City property must be approved by City ninety (90) days prior to the commencement of construction. During the term of this Agreement, User shall also be solely responsible for all maintenance of said private-use infrastructure and shall at all times maintain it in good repair.

B. Construction Costs: Notwithstanding anything herein contained to the contrary, User expressly agrees to pay any and all costs associated with private-use infrastructure required by the City. These costs are in addition to the Airport Access Permit Fees described above.

C. Compliance with Environmental Law: To comply with and abide by all environmental laws, rules, regulations, standards, and policies of any governmental authority whether federal, state, or local, and including, without limitation, the Environmental Protection Agency, the State Water Board, and the City, and shall file any and all reports and provide an y such information as may be required by such governmental authority in connection therewith.

VII. Agreement Subordinate to Grant Assurances, Agreements with United States and Federal Obligations

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6 This Agreement shall be nonexclusive and shall at all times be subordinate to the provisions of any existing or future agreements between the City and the United States Government, or to any order issued by the United States Government, or to any grant assurances of the Airport, or to any of the Airport’s or the City’s federal obligations.

This Agreement, in the City’s sole discretion, is subject to the initial and ongoing approval and consent by the FAA and by Caltrans, and is subject to the terms, conditions and requirements of any existing or future grant agreement(s) or grant assurance(s) at or in connection with the Airport and may be revoked, terminated or canceled immediately if this Agreement violates any such grant assurance(s) or grant agreement(s) or any FAA or Caltrans policy, rule, permit standard or regulation or any local state or federal law, policy, rule, permit, standard, or regulation, whether currently in effect, hereafter adopted, or as may be amended, modified, changed, or superseded.

User agrees to abide by the Airport Rules and Regulations in effect as of the date of this Agreement and as may be amended from time to time.

VIII. Adjustment to Property, Status Use or Improvements Modifications to Property with Right of Access, by subdivision, consolidation, or otherwise is prohibited without the express prior written approval of the City. The User shall report in writing to the City any such modification intent. Upon such intent notice, the City, at its sole discretion, will terminate this Agreement or will amend this Agreement to reflect the modified property area and applicable Airport Access Permit Fees, and a pro-rata adjustment to the Airport Access Permit Fee shall be made as appropriate.

IX. Indemnity
User agrees, to the fullest extent permitted by law, to indemnify and hold harmless City and its past, present, and future officers, directors, agents, employees and representatives from and against all liability for any and all claims, suits, demands, and/or actions arising from or based upon intentional or negligent acts or omission on the part of User, its owners, officers, directors, agents, representatives, employees, members, visitors, invitees, contractors, or subcontractors which may arise out of or result from User’s occupancy or use of the Property with Right of Access and City owned property, and/or activities conducted in connection with or incidental to this Agreement. The User shall also indemnify the City and its past, present, and future officers, directors, agents, representatives, and employees against any and all mechanic’s and material’s liens or any other types of liens imposed upon City owned property arising as a result of User’s conduct or activity. This indemnity provision shall apply regardless of the nature of the injury or harm alleged, whether for injury or death to persons or damage to property, or whether such claims are alleged as common law, statutory or constitutional claims, or otherwise. This indemnity provision shall apply whether the basis for claims, suit, demand and/or action may be attributable in whole or in part to the User or any of its owners, officers, directors, agents, representatives, employees, members, visitors, invitees, contractors, or subcontractors, or to anyone directly or indirectly employed by any of them.

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7 X. Termination of Agreement

A. Events of Default by User: City, at its option, may declare this Agreement terminated in its entirety upon the happening of any one or more of the following events and may exercise all rights related to the termination of this Agreement:

i. Airport Access Permit Fees outlined in Article IV, or any part thereof, are unpaid for thirty-one (31) days; or

ii. If User shall file a voluntary petition in bankruptcy, or make a general assignment for the benefit of creditors, or if the User is adjudicated as bankrupt, or User otherwise assigns or attempts to assign its interest herein without the required prior written consent of City; or

iii. User shall use or permit the use of the Property with Right of Access for any purpose which is not authorized by this Agreement, or if User shall use or permit the use thereof in violation of any law, rules or regulation, to which the User has agreed to conform.

iv. User fails to meet any term or condition of this Agreement.

B. Notice of Default: If User shall default in the performance of any other term of this Agreement (except the payment of fees), then City shall send to User a written notice of default, specifying the nature of the default, and User shall, within thirty (30) days after the date of the notice, cure and remedy the default, and this Agreement shall then continue as before.

i. If the User shall fail to timely cure and remedy such default, City shall have the right to declare, by written notice to the User, that the User is in default, and to use all remedies available to City under this Agreement.

However, if by its nature, such default cannot be cured within such thirty (30) day period, such termination shall not be effective if the defaulting party commences to correct such default within said thirty (30) days and corrects the same as promptly as reasonably practicable.

ii. Termination of this Agreement for non-payment of fees to City by User shall not become effective until after the expiration of fifteen (15) days written notice thereof by City to User and User fails to pay all moneys owed, fully within said period.

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8 XI. Notices
All notices, requests, or other communications required or permitted to be given hereunder shall be in writing and delivered by certified or registered mail, address to the appropriate party at its address as follows:

City of Hollister
375 Fifth Street
Hollister, Ca 85023

Wisk Aero LLC
2700 Broderick Way
Mountain View, Ca, 94043

XII. Certifications
The undersigned User certifies that User shall agree to abide by and comply with all laws, ordinances, rules, regulations, and requirements of all governmental agencies and authorities now in force, or which may hereafter be in force, pertaining to the Airport. The judgement of a court of competent jurisdiction, or the admission in any action or proceeding, whether the City is a party thereto or not, of the violation of any such law, ordinance, rule, regulation or requirement shall be conclusive evidence of that fact.

Furthermore, the undersigned User certifies that User shall agree to abide by and comply with all conditions, requirements, and terms of any existing and future federal and state grant agreement pertaining to the Airport.

Failure to comply with any of these certifications shall cause immediate revocation and cancellation thereof.

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9 IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized officers and representatives of each of the parties on the date first shown above.

City:

CITY OF HOLLISTER,
A municipal corporation

By: ________________________
David Mirrione, City Manager

User:

WISK AERO LLC

By: ________________________
Signature

________________________
Print Name

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10 EXHIBIT A: LIST OF PRIVATE USE INFRASTRUCTURE

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11 EXHIBIT B: PATH OF TRAVEL

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # Airport-2024-06

AGENDA ITEM: A RESOLUTION APPROVING A MEMORANDUM OF

UNDERSTANDING FOR COOPERATIVE PROCUREMENT FOR PROFESSIONAL

SERVICES TO COMPLETE AN AIRPORT ECONOMIC IMPACT STUDY FOR THE

HOLLISTER MUNICIPAL AIRPORT

DEPARTMENT: Airport
DEPARTMENT HEAD: Jeff Crechriou, Airport Director
STAFF CONTACT: Jeff Crechriou, Airport Director

RECOMMENDED ACTION:

2. Authorize the City Manager to execute the Memorandum of Understanding.

DISCUSSION: The Hollister Municipal Airport does not have Economic Impact Information. The objective of the study is to: communicate the value and benefits of the airport to the community at large, and local, state, and federal decision makers; provide the City with evidence and narrative of the economic, social and community benefits of the airport to the community; highlight the continued need for support; and allow the Hollister Municipal Airport to make strategic plans and funding decisions and provide better support and infrastructure development projects to initiate economic development at the Airport and throughout the City.

The Memorandum of Understanding (MOU) gives the framework for the cooperative effort to issue a Request for Proposal (RFP) to acquire the consultant services for the study amongst the City of Hollister/Municipal Airport, the City of Marina/Municipal Airport, the City of Salinas/Municipal Airport, and the City of Watsonville/Municipal Airport (Parties). The approach to acquiring the professional services for the study may be more cost-effective for the parties to cooperatively procure such professional services in order to achieve economies of scale, make the best use of airport funding, and minimize costs.

The MOU provides that each Party shall award its own contract to the selected consultant if a contract award is determined by a Party to be in its best interests, no Party shall be required to award a contract under the cooperative procurement if the results are not economically advantageous to that Party and a Party may withdraw from this MOU, without cause, with 30 days written notice.

FISCAL IMPACT: There is minimal cost outside of the Airport Director’s time to move forward as provided in the MOU in the issuance of the RFP, consultant selection, and if economically advantageous to the City of Hollister/Municipal Airport, prepare the contract for professional services for City Manager execution.

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PREVIOUS COUNCIL OR COMMISSION ACTION: N/A

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Memorandum of Understanding

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING MEMORANDUM OF UNDERSTANDING FOR

COOPERATIVE PROCUREMENT FOR PROFESSIONAL SERVICES TO

COMPLETE AN AIRPORT ECONOMIC IMPACT STUDY FOR THE

HOLLISTER MUNICIPAL AIRPORT

WHEREAS, Hollister Municipal Airport does not have Economic Impact Information; and

WHEREAS, the objective of the study is to: communicate the value and benefits of the airport to the community at large, and local, state, and federal decision makers ; provide the City with evidence and narrative of the economic, social and community benefits of the airport to the community; highlight the continued need for support; and allow the Hollister Municipal Airport to make strategic plans and funding decisions and provide better support and infrastructure development projects to initiate economic development at the Airport and throughout the City; and

WHEREAS, the Memorandum of Understanding (MOU) gives the framework for the cooperative effort to issue a Request for Proposal (RFP) to acquire the consultant services for the study amongst the City of Hollister/Municipal Airport, the City of Marina/Municipal Airport, the City of Salinas/Municipal Airport, and the City of Watsonville/Municipal Airport (Parties); and

WHEREAS, the approach to acquiring the professional services for the study may be more cost-effective for the Parties to cooperatively procure such professional services in order to achieve economies of scale, make the best use of airport funding, and minim ize costs; and

WHEREAS, the MOU provides: each Party shall award its own contract to the selected consultant if a contract award is determined by a Party to be in its best interests, no Party shall be required to award a contract under the cooperative procurement if the results are not economically advantageous to that Party and a Party may withdraw from this MOU, without cause, with 30 days written notice.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby:

1. Approve the Memorandum of Understanding for cooperative procurement for consideration of professional services to complete an Airport Economic Impact Study for the Hollister Municipal Airport; and

2. Authorize the City Manager to execute the Memorandum of Unders tanding.

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Resolution No. 2024-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on June 18, 2024, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Mia Casey, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on June 18, 2024.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

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MEMORANDUM OF UNDERSTANDING
by and among

CITY OF HOLLISTER,

CITY OF MARINA,

CITY OF SALINAS,
and

CITY OF WATSONVILLE
for

COOPERATIVE PROCUREMENT

This Memorandum of Understanding (“MOU”) is effective as of this____ day of _________, 2024, by and among the City of Hollister, a general law city (“Hollister”), the City of Marina, a charter city (“Marina”), the City of Salinas, a charter city (“Salinas”), and the City of Watsonville, a charter city (“Watsonville”). Hollister, Marina, Salinas, and Watsonville are referred to herein, individually, as a “Party” and, collectively, as the “Parties.”

RECITALS:

WHEREAS, each of the Parties own and operate a municipal airport; and

WHEREAS, each Party has determined that it needs to retain a consultant to perform an airport economic benefit analysis; and

WHEREAS, for the procurement of professional services to perform municipal airport economic benefit analyses, it may be more cost-effective for the Parties to cooperatively procure such professional services in order to achieve economies of scale, make the best use of airport funding, and minimize costs; and

WHEREAS, pursuant to Government Code Section 6502, the Parties are statutorily authorized to jointly exercise any power common to the Parties; and

WHEREAS, Hollister is authorized to procure professional services pursuant to Chapter

3.06 of the Hollister Municipal Code, Marina is authorized to procure professional services pursuant to Chapter 3.16 of the Marina Municipal Code; Salinas is authorized to procure professional services pursuant to Chapter 12 of the Salinas Municipal Code, and Watsonville is authorized to procure professional services pursuant to Chapter 5 of Title 3 of the Watsonville Municipal Code; and

WHEREAS, the Parties desire to establish a mutual understanding to provide for Watsonville acting as lead airport (“Lead Airport”), and Hollister, Marina, and Salinas, each acting as participating Airports (“Participating Airports”), to procure professional services to perform municipal airport economic benefit analyses for each of the Parties;

NOW, THEREFORE, the Parties in consideration of the mutual covenants hereinafter set forth and intending to be legally bound hereby agree as follows:

1. Complete Agreement. This MOU, including any exhibits and documents incorporated herein and made applicable by reference, constitutes the complete and exclusive statement of the terms and conditions of the MOU among the Parties concerning the cooperative procurement

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professional services to perform municipal airport economic benefit analyses. The above- referenced Recitals are true and correct and are incorporated by reference herein.

2. Lead Airport Responsibilities. Watsonville agrees to the following responsibilities for the cooperative procurement:

a. Watsonville shall serve as Lead Airport on the cooperative procurement of professional services to perform municipal airport economic benefit analyses for each of the Parties (the “Procurement”). Procurement services (“Services”) may include, but are not limited to, working with the Parties to prepare and issue Request for Proposal (“RFP”) documents, develop scopes of work, develop evaluation criteria, and prepare addenda, if any, communicate with respondents to the RFP, and coordinate the proposal evaluation and selection processes.

b. Watsonville shall work with the Parties to schedule such joint procurements in a timely manner, consistent with the availability and workload of Participating Airports’ staff.

c. Watsonville shall ensure that the Procurement complies with and is consistent with all federal, state and local regulations, circulars and guidelines.

d. Watsonville is acting as an independent contractor under this MOU and shall pay all wages, salaries, and other amounts due to its own personnel in connection with any and all Services provided under this MOU, as well as that which may be required by law. Watsonville shall be responsible for all reports and obligations respecting their own personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, benefits and workers compensation insurance. Watsonville shall have exclusive control over its employees and the Parties shall not have any authority to direct or control employees of Watsonville. Watsonville’s employees or agents shall not be deemed the employees or agents of any of the other Parties for any purpose.

e. Watsonville agrees to indemnify, defend and hold harmless the Parties, its member Airports, officers, directors, employees, and agents from and against any and all claims, liabilities, and actions whether legal, equitable or administrative, and costs and expenses (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damages, bodily injuries, including death, damage to or loss of use of property caused by the negligent acts, omissions, or willful misconduct by Watsonville, its officers, directors, employees, or agents in connection with or arising out of the performance of services under this MOU. This obligation shall not apply to negligent acts, omissions or willful misconduct of any of the Parties, their respective officers, directors, employees, or agents.

3. All Parties’ Responsibilities. The Parties agree to the following responsibilities in connection with the Procurement:

a. The Parties shall each actively participate in the Procurement. Each Party shall provide input on the Procurement scope of work, evaluation criteria, selection of consultant, data requirements, and other background information required to provide the respondents to the RFP with sufficient information to prepare and submit viable proposals.

Each Party shall also participate in the proposal evaluation and selection process, and shall award its own procurement contract to the selected consultant, subject to its respective contract approval process.

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b. The Parties shall work with Watsonville to schedule such the Procurement in a timely manner, consistent with the availability and workload of each Parties’ staffs.

c. The Parties shall review the Procurement documents and process to ensure they comply with and are consistent with all federal, state and local regulations, circulars and guidelines.

d. Each Party is acting as an independent contractor under this MOU and shall pay all wages, salaries, and other amounts due to its own personnel in connection with any and all services provided under this MOU, as well as that which may be required by law.

Each Party shall be responsible for all reports and obligations respecting its own personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, benefits and workers compensation insurance. Each Party shall have exclusive control over its employees and no Party shall have any authority to direct or control employees of any other Party. No Party’s employees or agents shall be deemed to be another Party’s employees or agents for any purpose.

e. Each Party agrees to indemnify, defend and hold harmless the other Parties, their respective officers, directors, employees, and agents from and against any and all claims, liabilities, and actions whether legal, equitable or administrative, and costs and expenses (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damages, bodily injuries, including death, damage to or loss of use of property caused by the negligent acts, omissions, or willful misconduct by the indemnifying Party, its officers, directors, employees, or agents in connection with or arising out of the performance of this MOU.

f. The Parties shall form an advisory committee, known as the “Steering Committee,” consisting of one representative from each Party. Each Party may assign one alternate for situations where its primary member is unavailable. The Parties may identify their primary and alternate representatives as part of this MOU. The Steering Committee will evaluate proposals to determine which Consultant best meets the needs of the respective Parties. The Steering Committee shall review and evaluate the submitted proposals pursuant to the terms of the RFP. To the extent the Parties modify, alter, or adjust the review and evaluation process, the Steering Committee shall abide by the updated review and evaluation process. The Steering Committee shall have the right to either: (a) select a consultant directly from the written proposals to best meet the overall needs of each Party or (b) request “Best and Final Offers” from the two finalist consultants and select based on the lowest price. The recommendation shall be based on unanimous vote of the whole Steering Committee. Each Party may only have one vote. The Steering Committee shall have no decision-making authority on behalf of each respective City. The respective City’s Committee member or alternate shall propose the selected Consultant to its respective Governing Body, City Manager, or delegate, pursuant to its respective purchasing ordinance.

4. Parties’ Mutual Obligations. The Parties understand and agree to the following mutual responsibilities regarding the Procurement:

a. The Request for Proposals document developed for the Procurement shall include language requiring each Party to award its own contract to the selected consultant, if a contract award is determined by a Party to be in its best interest.

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d. No Party shall be required to award a contract under the cooperative procurement if the Procurement results are not economically advantageous to that Party.

e. Each Party shall be solely responsible for the cost of the services for which it contracts with the selected consultant.

f. This MOU shall commence upon full execution by the Parties, and shall continue in full force unless terminated as provided in this MOU.

g. This MOU may be amended in writing at any time by the mutual consent of the Parties. No amendment shall have any force or effect unless executed in writing by the Parties.

h. A Party may withdraw from this MOU, without cause, by delivering written notice of withdrawal to the other Parties not less than thirty (30) calendar days before the date of withdrawal. The Parties may terminate this MOU upon the written agreement of the Parties. Unless terminated earlier by the Parties, this MOU will terminate upon the execution of the contracts hiring the Consultant.

i. The persons executing this MOU on behalf of the parties hereto warrant that they are duly authorized to execute this MOU on behalf of said parties and that, by so executing this MOU, the parties hereto are formally bound to the provisions of this MOU.

j. All notices hereunder and communications required or permitted by this MOU, or changes thereto, or by law to be served on, given to or delivered to any other Party hereto by any other Party to this MOU shall be in writing or authorized in writing, and may be sent by personal delivery, regular mail, or email. Any such notice shall be addressed to:

Notices to Hollister:

Hollister Municipal Airport
60 Airport Drive
Hollister, CA 95023
Attn: Jeff Crechriou, Airport Director
Email: [email protected]

Notices to the Marina:

Marina Municipal Airport
781 Neeson Road
Marina, CA 93933
Attn: Layne Long, City Manager
Email: [email protected]

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Notices to Salinas:

Salinas Municipal Airport
30 Mortensen Avenue
Salinas, CA 93905
Attn: Matt Nelson, Airport Manager
Email: [email protected]

Notices to the Watsonville:

Watsonville Municipal Airport
100 Aviation Way
Watsonville, CA 95076
Attn: Rayvon Williams, CM, CAE, Airport Director
Email: [email protected]

k. The headings of all sections of this MOU are inserted solely for the convenience of reference and are not part of and not intended to govern, limit, or aid in the construction or interpretation of any terms or provision thereof.

l. The provisions of this MOU shall bind and inure to the benefit of each of the parties hereto and all successors or assigns of the parties hereto.

m. If any term, provision, covenant, or condition of this MOU is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder to this MOU shall not be affected thereby, and each term, provision, covenant or condition of this MOU shall be valid and enforceable to the fullest extent permitted by law.

n. This MOU may be executed and delivered in any number of counterparts, each of which, when executed and delivered shall be deemed an original and all of which together shall constitute the same MOU. Secure electronic signatures will be permitted.

o. Neither this MOU, nor any of a Party's rights, obligations or duties hereunder may be assigned in whole or in part by a Party without the prior written consent of the other Parties. Any such attempt of assignment shall be deemed void and of no force and effect. Consent to one assignment shall not be deemed consent to any subsequent assignment, nor the waiver of any right to consent to such subsequent assignment.

p. Each Party warrants that, in the performance of this MOU, it shall comply with all applicable federal, state and local laws, statutes and ordinances and lawful orders, rules and regulations promulgated thereunder.

q. A Party shall be excused from performing its obligations under this MOU during the time and to the extent that it is prevented from performing by an unforeseeable cause beyond its control, including but not limited to: any incidence of fire, flood, acts of God, commandeering of material, products, plants or facilities by the federal, state or local government, national fuel shortage, or a material act or omission by the other party, when satisfactory evidence of such cause is presented to the other party, and provided further

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that such nonperformance is unforeseeable, beyond the control and is not due to the fault or negligence of the party not performing.

r. This MOU shall be construed and interpreted solely in accordance with the laws of the State of California.

IN WITNESS WHEREOF, this MOU constitutes the entire understanding of the Parties hereto, and there are no other requirements, premises, warranties, covenants or undertakings with respect thereto, and have made and executed this MOU as of the day and year first above written.

[SIGNATURES APPEAR ON FOLLOWING PAGES]
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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CITY OF HOLLISTER, a
general law city

___________________________
David Mirrione, City Manager

ATTEST:

____________________________
Jennifer Woodworth, MMC, City Clerk

APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____________________________
Mary F. Lerner, City Attorney

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CITY OF MARINA, a
charter city

___________________________
Layne Long, City Manager

ATTEST:

____________________________
Anita Shepherd-Sharp, Deputy City Clerk

APPROVED AS TO FORM:

____________________________
René Alejandro Ortega, City Attorney

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CITY OF SALINAS, a
charter city

___________________________
______________, City Manager

ATTEST:

____________________________
_____________, City Clerk

APPROVED AS TO FORM:

____________________________
_________________, City Attorney

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CITY OF WATSONVILLE, a
charter city

___________________________
Tamara Vides, Interim City Manager

ATTEST:

____________________________
Irwin I. Ortiz, City Clerk

APPROVED AS TO FORM:

____________________________
Samantha Zutler, City Attorney

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # City Clerk-2024-26

AGENDA ITEM: A RESOLUTION AMENDING THE CONFLICT OF INTEREST CODE

DEPARTMENT: City Clerk
DEPARTMENT HEAD: Jennifer Woodworth, City Clerk
STAFF CONTACT: Jennifer Woodworth, City Clerk

RECOMMENDED ACTION: Adopt a resolution amending the City of Hollister’s Conflict of Interest Code and rescind Resolution No. 2022-120.

DISCUSSION: The Fair Political Practices Commission (FPPC) requires the City to update its Conflict of Interest Code biennially to make amendments as necessary to add new positions, delete old positions, revise titles of existing positions, or delete titles of positions that have been abolished. The City’s Conflict of Interest Cod e complies with Government Code Section 87200, requiring that elected and public officials who make, or participate in the making of governmental decisions, file a Statement of Economic Interest (Form 700), within 30 days of assuming office, annually, and within 30 days of leaving office. A governmental decision includes voting on matters, appointing a person, obligating or committing their agency to a course of action, or entering into any contractual agreement on behalf of their agency. The FPPC also requires the Conflict of Interest Code list all the positions at the agency that are required to file a form 700, and their disclosure category. The list of positions and disclosure category is attached as Exhibit A.

Adoption of this resolution complies with the California Political Reform Act and the FPPC regulations requiring that the code be updated every two years.

FINANCIAL IMPACT: None at this time.

PREVIOUS COUNCIL OR COMMISSION ACTION: The previous Conflict of Interest Code was adopted by the City Council on June 6, 2022 as Resolution No. 2022-120.

CEQA: This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it is an organizational structure change that will not result in any direct or indirect physical change in the environment.

ATTACHMENTS:

1. Resolution Amending the City's Conflict of Interest Code and Rescinding Resolution No. 2022-120

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

AMENDING THE CITY'S CONFLICT OF INTEREST CODE AND
RESCINDING RESOLUTION NO. 2022-120

WHEREAS, state law requires a biennial review of the City’s Conflict of Interest Code; and

WHEREAS, said review indicates that certain revisions to the City’s Conflict of Interest Code are necessary, as a result of the recent changes in the organizational structure of the City.

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HOLLISTER that the elected and appointed officials, as designated on Exhibit A, attached and incorporated herein, shall comply with the reporting requirements pursuant to Government Code Section 87200 et. seq. and that Resolution No. 2022 -120 is hereby rescinded in its entirety.

PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on June 18, 2024, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Mia Casey, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

______________________________ _______________________________ Jennifer Woodworth, MMC, City Clerk Mary Lerner, City Attorney

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Resolution No. 2024-XX

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on June 18, 2024.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

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Page 3 of 5 ends

Resolution No. 2024-XX

EXHIBIT A

Department Designated Position Disclosure
Standards
Elected Officials City Council Members GC 87200
City Treasurer City Treasurer GC 87200
City Clerk City Clerk Form 700
City Clerk Deputy City Clerk Form 700
City Manager City Manager GC 87200
Assistant City Manager Form 700
Economic Development Manager Form 700
Information Systems and Technology
Director
Form 700
Information Systems and Technology
Assistant Director
Form 700
Information Systems Analyst Form 700
Information Systems Technician Form 700
City Attorney City Attorney GC 87200
Assistant City Attorney Form 700
Administrative Services Administrative Services Director Form 700 Human Resources Manager Form 700
Administrative Analyst Form 700
Management Analyst Form 700
Capital Improvement Project Manager Form 700
Airport Airport Director Form 700
Airport Manager Form 700
Community Services Community Services Director Form 700 Utility Manager Form 700
Utility Supervisor Form 700

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Page 4 of 5 ends

Resolution No. 2024-XX

Fleet Maintenance Supervisor Form 700
Environmental Programs Manager Form 700
Recreation Parks and Recreation Director Form 700
Recreation Services Manager Form 700
Development Services Development Services Director Form 700 Planning Manager Form 700
Assistant Planner Form 700
Senior Planner Form 700
Associate Planner Form 700
Housing Programs Manager Form 700
Building Official Form 700
City Engineer/Engineering Manager Form 700
Assistant City Engineer Form 700
Associate Engineer Form 700
Cannabis Affairs Manager Form 700
Code Enforcement Code Enforcement Officer Form 700
Code Enforcement Supervisor Form 700
Fire Fire Chief Form 700
Battalion Chief Form 700
Police Chief of Police Form 700
Police Captain Form 700
Lieutenant Form 700
Animal Control Animal Control Supervisor Form 700
Boards & Commissions Airport Advisory Commission (75) Form 700 Planning Commission (5) GC 87200
Parks & Recreation Commission (57) Form 700

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Resolution No. 2024-XX

Oversight Committee
for the former
Redevelopment Agency
All Board Members (7) Form 700
Consultants Consultants as designated Form 700
4-Leaf Building Official Form 700
Kimley Horn City Engineer Form 700

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STAFF REPORT

HOLLISTER CITY COUNCIL
MEETING DATE: June 18, 2024
REPORT # City Manager-2024-24

AGENDA ITEM: A RESOLUTION APPROVING AN AMENDMENT TO THE LEASE

AGREEMENT OF THE BRIGGS BUILDING BETWEEN THE CITY OF HOLLISTER

AND GAVILAN COLLEGE, A COMMUNITY COLLEGE DISTRICT

DEPARTMENT: City Manager
DEPARTMENT HEAD: David Mirrione, City Manager
STAFF CONTACT: David Mirrione, City Manager

RECOMMENDED ACTION: Adopt a resolution authorizing and directing the mayor to execute Amendment No. 4 to the lease agreement with Gavilan College, a Community College District for the Briggs Building with a possible end date of June 30, 2025.

DISCUSSION: On June 20, 1996, the City Council approved Resolution 96 -89 which authorized the execution of a fifteen (15) year lease with an option for a five-year extension with the Gavilan Community College District (the “District”) to establish a satellite campus at the Briggs Building. The lease area encompassed 8,500 square feet on the first floor of the Briggs Building with graduated payments that started at $.07 per square foot increasing to a rate of $1.30 per square foot. The former Redevelopment Agency of the City of Hollister provided assistance with $24,000 in contracting services for tenant improvements at the facility in 1996 while the college funded material costs of $4,800. This lease agreement expired in June 2012.

On June 18, 2012, the City Council approved Resolution 2012-102 authorizing the mayor to sign Amendment No. 1 to the lease agreement with four changes: 1) a graduated lease rate starting at $1.20 per square foot and increasing to $1.30 per square foot; 2) Transfer of janitorial services and supplies in the lease area from the city to the tenant with a credit for the cost; 3) the 384 square foot, Room 6, the Arnold Carrillo Room, was added; and 4) an option for early termination in year 3 of the lease with a six-month notice requirement.

On May 15, 2017, the City Council approved Resolution 2017 -113 authorizing Amendment No. 2. Amendment No. 2 removed Room 6 from the lease area to allow office space for Code Enforcement, the Community School Officer, and a substation for Police and Fire. The amendment included graduated lease rates for five years with credits for janitorial service from $1.35 per square foot increasing to $1.50 per square foot.

Amendment No. 2 would also clarify that the city is responsible for weekly janitorial services on the stairs, sweeping, and removal of cobwebs at the front of the structure facing San Benito Street and near the elevator entrances.

On September 18, 2023, the City Council approved Resolution 2023 -277 authorizing Amendment No 3. Amendment No. 3 extended the lease for two (2) additional years, ending on June 21, 2024 (the “Extended Term”), provided however, that Tenant, beginning on December 31, 2023; shall have the right to terminate the lease early by

Page 107 of 1379 ends

providing the Landlord with six (6) month’s written notice. This amendment also includes a graduated lease rate starting from $1.50 per square foot increasing to $1.70 per square foot.

Amendment No. 3 expires on June 21, 2024. Amendment No . 4 proposes to extend the lease for six (6) additional months, ending on December 31, 2024; with an option to continue a month-to-month Lease for an additional six (6) months ending June 30, 2025 (“Extended Term”). The City Manager shall have the authority to exercise the option to continue a month-to-month lease from December 31, 2024, to June 30, 2025.

This amendment also includes a graduated lease rate starting from $1.70 per square foot increasing to $1.75 per square foot in the extended 6 months term with an optional month to month lease for an additional 6 months ending June 30, 2025. Staff is recommending that the City Council adopt a resolution authorizing the mayor to sign Amendment No. 4.

FISCAL IMPACT: Graduated rent income of $80,148.30 for six months and 10 days with an optional additional monthly graduated rent income of $12,655.00 per month.

PREVIOUS COUNCIL OR COMMISSION ACTION: On September 18, 2023, the City Council approved Resolution 2023-277 authorizing Amendment No 3.

CEQA: N/A

ATTACHMENTS:

1. Resolution

2. Original 1996 Briggs Building Lease, Amendments No . 1 and No. 2

3. Amendment No. 3

4. Proposed Amendment No. 4

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RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE EXECUTION OF AMENDMENT NO. 4 TO THE

LEASE AGREEMENT OF THE BRIGGS BUILDING BETWEEN THE CITY

OF HOLLISTER AND GAVILAN COLLEGE, A COMMUNITY COLLEGE

DISTRICT

WHEREAS, the parties entered into the lease of a portion of the Briggs Building located at 365 Fourth Street, Hollister, CA 95023 (the “Building”) in June 1996 for a term of fifteen (15) years; and

WHEREAS, the parties, pursuant to Amendment No. 1 to the lease between the City of Hollister and Gavilan College dated June 21, 2021 (“Amendment No. 1”), agreed to extend the original term of the Lease from June 30, 2012, to June 2017 ; and

WHEREAS, the parties, pursuant to Amendment No. 2 to the lease between the City of Hollister and Gavilan College dated June 20, 2017 (“Amendment No. 2”), agreed to extend the term of the lease from June 21, 2017, to June 20, 2022 ; and

WHEREAS, the parties, pursuant to Amendment No. 3 to the lease between the City of Hollister and Gavilan College dated June 20, 2022 (“Amendment No. 3”), agreed to extend the term of the lease from June 20, 2022, to June 20, 2024; and

WHEREAS, Landlord and Tenant now desire to amend and extend the current term of the lease pursuant to the terms, covenants, agreement, and conditions set forth in this Amendment No.4.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister authorizes the execution of Amendment No. 4 to the lease agreement between the City of Hollister and Gavilan College for the use of the Briggs Building by an additional six (6) months ending on December 31, 2024. The City Manager shall have the authority to exercise the option to continue a month-to-month lease from December 31, 2024, to June 30, 2025.

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Page 2 of 2 ends

Resolution No. 2024-XX

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on June 18, 2024, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Mia Casey, Mayor

ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law

____
Jennifer Woodworth, MMC, City Clerk Mary F. Lerner, City Attorney

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on June 18, 2024.

Jennifer Woodworth, MMC
City Clerk of the City of Hollister

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Page 1 of 2 ends

RESOLUTION NO.2023-177

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE EXECUTION OF AMENDMENT NO.3 TO THE LEASE

AGREEMENT OF THE BRIGGS BUILDING BETWEEN THE CITY OF HOLLISTER

AND GAVILAN COLLEGE,A COMMUNITY COLLEGE DISTRICT
WHEREAS,the parties entered into the lease of a portion of the Briggs Building located at 365 Fourth Street, Hollister,CA 95023(the"Building")in June 1996 for a term of fifteen(15)years;and
WHEREAS,the parties,pursuant to Amendment No. 1 to lease the between the City of Hollister and Gavilan College dated June 21,2012("Amendment No. 1"),agreed to extend the original term of the Lease from June 30,2012,to June 20,2017;and WHEREAS,the parties,pursuant to Amendment No.2 to the Lease between the City of Hollister and Gavilan College dated June 20,2017("Amendment No.2"),agreed to extend the term of the Lease from June 21,2017,to June 20,2022;and WHEREAS, Landlord and Tenant now desire to amend and extend the current term of the lease pursuant to the terms, covenants,agreements, and conditions set forth in this Amendment No.3.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Hollister authorizes the execution of Amendment No.3.to the lease agreement between the City of Hollister and Gavilan College for the use of the Briggs Building.

PASSED,APPROVED,AND ADOPTED, by the City Council of the City of Hollister at a regular meeting on September 18,2023,by the following vote:

AYES:Councilmembers Perez, Resendiz, Morales, Burns,and Mayor Casey NOES: None
ABSTAINED: None
ABSENT: None
la
IJasey, Mayor
ATTEST: APPROVED AS TO FORM:

Lozano Smith Attorneys at Law
nnifer oodworth,MMC,City Clerk Ma F.Vrner,City Attorney

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Page 2 of 2 ends

Resolution No.2023-177
I,Jennifer Woodworth, MMC, City Clerk of the City of Hollister,do hereby certify that the attached Resolution No. 2023-177 is an original resolution,or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting on September 18,2023,at which meeting a quorum was present.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on September 18,2023.
jefix
nnifer odworth,MMC
ity Clerk of the City of Hollister

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1 AMENDMENT NO. 3 TO LEASE OF BRIGGS BUILDING BETWEEN

THE CITY OF HOLLISTER AND GAVILAN COLLEGE, A COMMUNITY

COLLEGE DISTRICT
This Amendment No. 3 to the Lease of Briggs Building dated June 20, 1996 (the "Lease") is entered into on [MONTH] [DATE], 2023, between the City of Hollister, a municipal corporation, (the "Landlord"), and Gavilan Joint Community College District, a community college district (the "Tenant"), together herein referred to as "the Parties."

RECITALS
A. Whereas the Parties entered into the Lease of a portion of the Briggs Building located at 365 Fourth Street, Hollister, CA 95023 (the "Building") in June 1996 for a term of fifteen (15) years; and
B. Whereas the Parties, pursuant to Amendment No. 1, to Lease Between City of Hollister and Gavilan College dated June 21, 2012 ("Amendment No. 1"), agreed to extend the original term of the Lease from June 30, 2012 to June 20, 2017; and
C. Whereas the Parties, pursuant to Amendment No. 2, to Lease Between City of Hollister and Gavilan College dated June 20, 2017 ("Amendment No. 2"), agreed to extend the original term of the Lease from June 21, 2017 to June 20, 2022; and
D. Whereas, Landlord and Tenant now desire to amend and extend the current term of the Lease pursuant to the terms, covenants, agreements , and conditions set forth in this Amendment No. 3.

Now, therefore, for good and valuable consideration, the Parties agree to amend the Lease and Amendment Nos. 1 and 2, as follows:

AMENDMENT NO. 3

1. Extension of Current Lease Term
The term of the Lease is hereby amended to extend for two (2) additional years, commencing on June 20, 2022, and ending on June 21, 2024 (the "Extended Term"), provided, however, that Tenant, beginning on December 31, 2023, shall have the right to terminate the Lease early by providing Landlord with six (6) month's written notice.

2. Premises
a. Section 2 of Amendment 2 is hereby amended as follows: The phrase "8,500 square feet of floor area" is deleted in its entirety and the phrase "8,260 square feet of floor area" is inserted in its stead.
b. Section 2 of Amendment 2 is further amended as follows: Exhibit "A" to the original Lease is hereby deleted in its entirety and replaced in its stead by Exhibit A" attached hereto and incorporated herein by reference. Exhibit "A" attached hereto adds the nearly 16 foot by 19 foot storage room at the northwest portion of the building to part of the Premises.

DocuSign Envelope ID: 15A7076B-69E8-481C-BCCC-52AA50FE5601

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2 3. Rent
Notwithstanding provisions of the Lease and Amendment No. 3 relating to Rent, during the Extended Term, Rent due to Landlord from Tenant shall be paid in strict accordance with the terms and conditions set forth in Exhibit "B" attached hereto and incorporated herein, as if fully set forth.

4. Utilities/Janitorial Services
Section 15 of the Lease and Amendment No. 1 are hereby amended to add the following weekly responsibilities to the Landlord cleaning services: the stairs, sweeping and removal of cobwebs at the front of the structure facing San Benito Street and near the elevator entrances.

5. No Other Changes
Except as provided in this Amendment No. 3, the terms and conditions of the Lease and Amendment No. 2 dated June 20, 2022, shall remain unmodified and in full force and effect. In the event of a conflict between the terms of this Amendment No. 3 and the terms of the Lease and Amendment No. 2, the terms of this Amendment No. 3 shall govern and control.

6. New Exhibit B to Lease
Exhibit B to the Lease, as previously amended, shall be deleted in its entirety and replaced in its stead with Exhibit B, which is attached hereto and incorporated herein by reference.

7. Effective Date of Amendment No. 3
This Amendment No. 3 is subject to approval or ratification by the Landlord's City Council and the Tenant's Board of Trustees. This Amendment No.3 shall only be effective and enforceable as of the date that the City Council and Board of Trustees have taken action to approve/ratify this Amendment No.3.

8. Counterparts
This Amendment No. 3 may be executed in any number of counterparts, each of which shall be deemed an original, and when taken together, shall constitute one and the same document.

Landlord
City of Hollister
375 Fifth Street
Hollister, CA 95023
Mia Casey, Mayor
Date: ____________
Tenant
Gavilan Joint Community College
District
5055 Santa Teresa Boulevard
Gilroy, Ca 95020
Marilyn Morikang
Vice President of Administrative
Services
Date: ____________
Marilyn Morikang (Aug 21, 2023 14:47 PDT)
Aug 21, 2023
DocuSign Envelope ID: 15A7076B-69E8-481C-BCCC-52AA50FE5601 9/22/2023 | 10:33:21 PM PDT

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3 EXHIBIT "A" - PREMISIS
El
u ,,........, ,-.,..,.,._A,>,AO
OHJC.l
D°"-' ft.

BRIGGS BUILDING AND PARKING GARAGE 1ST. TO 4TH FLOOR
DocuSign Envelope ID: 15A7076B-69E8-481C-BCCC-52AA50FE5601

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4 EXHIBIT "B" RENT

SCHEDULE
AMENDMENT NO. 3 TO

LEASE BETWEEN CITY OF HOLLISTER AND GAVILAN

JOINT COMMUNITY COLLEGE DISTRICT
BRIGGS BUILDING, 365 FOURTH STREET, HOLLISTER, CALIFORNIA 95023 Year Lease Rate per
Square Foot
Monthly Rate Credit for
Janitorial
Adjusted
Monthly
8,260 Sq. Ft.) Services and
Supplies
Minimum
1 $1.50 (FY 22/23) $12,750 ($1,800.00) $10,950
2 $1.65 (FY 23/24) $13,629 ($1,800.00) $11,829
3 $1.70 (FY 23/24) $14,042 ($1,800.00) $12,242
DocuSign Envelope ID: 15A7076B-69E8-481C-BCCC-52AA50FE5601

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5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE EXECUTION OF AMENDMENT NO. 3 TO THE LEASE

AGREEMENT WITH GAVILAN COLLEGE, A COMMUNITY COLLEGE DISTRICT

FOR THE BRIGGS BUILDING
WHEREAS, the City Council approved Resolution No. 96-89 which authorized a lease agreement with Gavilan College, A Community College District (the "District") for the Briggs Building at 365 Fourth Street for a satellite campus to educate residents in the City of Hollister; and
WHEREAS, the term of the lease of the facility was for 15 years with an option for a five-year extension; and
WHEREAS, the City Council approved Resolution No. 2012-1-2 which authorized Amendment No. 1 to the lease agreement with the District; and WHEREAS, the term of the Amendment No. 1 was five years; and WHEREAS, the City Council approved Resolution No. 2017-113 which authorized Amendment No. 2 to the lease agreement with the District; and WHEREAS, the term of the Amendment No. 2 lease agreement was five years; and
WHEREAS, the District desires to extend the lease agreement for two years with an option for early termination beginning the second year of the lease and other amendments; and
WHEREAS, the City and the District desire to add a storage space to the lease agreement; and
WHEREAS, the City and the District desire to add additional City janitorial responsibilities agreement.

NOW, THEREFORE, BE IT RESOLVED as follows:

1. The Mayor is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA.

2. The City Council approves Amendment No. 3 to the lease agreement attached as Exhibit 1 to this resolution.

3. The Mayor is hereby authorized and directed to execute Amendment No.
3 to the Lease Agreement with Gavilan College, a Community College District included as Exhibit 1.

4. This Resolution shall take immediate effect upon its adoption.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular DocuSign Envelope ID: 15A7076B-69E8-481C-BCCC-52AA50FE5601

Page 117 of 1379 ends

6 meeting held this [Date]th/nd/rd day of [Month], 2023, by the following vote:

AYES:

NOES:

ABSENT:

Mia Casey, Mayor
DocuSign Envelope ID: 15A7076B-69E8-481C-BCCC-52AA50FE5601

Page 118 of 1379 ends

411
LEASE

BRIGGS BUILDING

1. PARTIES.

This Lease, dated as of this O day of June, 1996, is made and between CITY OF HOLLISTER, a municipal corporation, (the "Landlord") and GAVILAN COLLEGE, a community college district(the"Tenant")

2. PREMISES.

Landlord does hereby lease to Tenant and Tenant hereby leases from Landlord that certain space (herein called "Premises"), having dimensions of approximately 8,500 square feet of floor area, within the Briggs Building located 365 Fourth Street, Hollister, CA 95023 (the "Building"). The location and dimensions of said Premises are delineated on Exhibit "A" attached hereto and incorporated by reference herein.

Said Premises are located in the City of Hollister, County of San Benito, State of California.

This Lease is subject to the terms, covenants and conditions herein set forth and the Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of said terms, covenants and conditions by it to be kept and performed.

3. USE.

Tenant shall use the Premises for a SATELLITE CAMPUS and shall not use or permit the Premises to be used for any other purpose without the prior written consent of Landlord.

4. RENT.

4.1 Tenant agrees to pay to Landlord as Rent, without notice or demand, the monthly sum set forth in the Rent Schedule attached hereto as EDIT"B" in advance, on or before the first day of each and every successive calendar month during the term hereof, except the first month's Rent shall be paid upon the execution hereof.

The rental shall commence thirty (30) days after substantial completion of Tenant's work as set forth in Exhibit "B" attached hereto and incorporated herein by B.3.a
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reference, or when the Tenant opens for business, whichever is sooner. Tenant agrees that it will, at its sole cost and expense as soon as is reasonably possible after the execution of this Lease, commence and pursue to completion the improvements to be erected by Tenant to the extent shown on the attached Exhibit Rent for any period which is for less than one (I) month shall be a prorated portion of the monthly installment herein based upon a thirty (30) day month. Said Rent shall be paid to Landlord, without deduction or offset, lawful money of the United States of America and at such place as Landlord may from time to time designate in writing.

Starting with fiscal years (July 1st), Rent may be delayed for a period not to exceed ninety 90) days predicated upon the State of California adopting their annual budget. Upon budget adoption Gavilan College is responsible for all rent in arrears on or before the first day of the first of the month following the budget adoption. Tenant agrees to resume payment to Landlord without notice or demand the monthly sum setforth in the Rent Schedule attached hereto in Exhibit"B".

5. TERM.

The lease term shall be 15 years commencing on the date Tenant's work as set forth in Exhibit "B" is substantially completed and terminating 15 years from that date. The parties acknowledge that certain obligations under various Sections hereof may commence prior to the lease term, i.e., construction, holdharmiess, liability insurance, etc.; and the parties agree to be bound by these articles prior to commencement of the Lease term.

Tenant is given the option to extend the term of this Lease for one (1) five (5) year period ("extended term") following expiration of the initial term, by giving written notice to exercise of option ("option notice") to Landlord at least six (6) months, but not more than one (1) year before the expiration of the term. If Tenant is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the initial term.

The parties shall have thirty (30) days after the Landlord receives the option notice to negotiate the applicable Rent during the extended term. If the parties agree on the Rent for the extended term during that period, they shall immediately execute an amendment to the Lease stating the new Rent. If the parties are unable to agree on the Rent for the extended term within that thirty (30) day period, the option notice shall be of no effect and this Lease shall expire at the end of the term.

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B. USES PROHIBITS.

Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which is not within the permitted uses of the Premises or which will in any way increase the existing rate of or affect any fire or other insurance upon the Building or any of its contents, or cause a cancellation of any insurance policy covering said Building or any part thereof or any of its contents. Tenant shall not do or permit anything to be done in or above the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure or annoy them or use or allow the Premises to:be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. Tenant agrees not to sell or permit to be kept, used, or sold in or about the Premises, hazardous substances or hazardous waste as defined by state or federal law. For purposes of this Section 8, hazardous substances shall not include incidental cleaning supplies, provided that all such materials and equipment are used in strict compliance with all applicable laws and regulations.

7. COMPLIANCE WITH LAW.

Tenant shall not use the Premises, or permit anything to be done in or about the Premises, which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force and with the requirements of any board of fire underwriters or other similar bodies now or hereafter constituted relating to Tenant's improvements or acts. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of that fact as between the Landlord and Tenant.

S. ALTERATIONS AND ADDITIONS.

Tenant shall not make or allow to be made any alterations, additions or improvements to or of the Premises or any part thereof without first obtaining the written consent of Landlord and any alterations, additions or improvements to or of said Premises, including, but not limited to, wall covering, paneling and built-in cabinet work, but excepting movable furniture and trade fixtures, shall at once become a part of the realty and belong to the Landlord and shall be surrendered with the Premises. In the event Landlord consents to the making of any alterations, additions or improvements to the Premises by Tenant, the same shall be made by Tenant at Tenant's sole cost and expense, except as otherwise provided on Exhibit "C". Upon the expiration or sooner B.3.a
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termination of the tis hereof, Tenant shall, upon written:lend by Landlord, given at least thirty(30) d prior to the end of the term, at Tensole cost and expense, forthwith and with all due diligence, remove any alterations, additions, or improvements made by Tenant, designated by Landlord to be removed, and Tenant shall, forthwith and will all due diligence, at its sole cost and expense, repair any dr3mage to the Premises caused by such removal_

9.REPAIRS.

9.1 By entry hereunder, Tenant shall be deemed to have accepted the Premises as being in good, sanitary order, condition and repair. Tenant shall, at Tenant's sole cost and expense, keep the Premises and every part thereof in good condition and repair(except as hereinafter provided with respect to Landlord's obligations) including without limitation, the maintenance, replacement and repair of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and conduits, heating and air conditioning system (when there is an air conditioning system.) Tenant shall obtain a service contract for repairs and maintenance of said system, said maintenance contract to conform to the requirements under the warranty, if any, on said system. Tenant shall, upon the expiration or sooner termination of this Lease hereof, surrender the Premises to the Landlord in good condition, broom clean, ordinary wear and tear and damage from causes beyond the reasonable control of Tenant excepted. Any damage to adjacent premises caused by Tenant's use of the Premises shall be repaired at the sole cost and expense of Tenant.

Notwithstanding the provisions of Section l 1. 1, Landlord shall repair and maintain the structural portions of the Building, including the exterior walls and roof unless such maintenance and repairs are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees, invitees, or any damage caused by breaking and entering, in which case Tenant shall pay to Landlord the actual cost of such maintenance and repairs. Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant.

Except as provided in Section 25 hereof, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant's business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or in or to fixtures, appurtenances and equipment therein. Tenant waives the right to make repairs at Landlord's expense under any law, statute or ordinance now or hereafter in effect.

10. LIENS.

Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations B.3.a
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incurred by r on b1P.f of Tenant. Landlord mayr at'andlord's sole option,dlo e P n, that Tenant shall provide to Landlord, at Tenant's sole cost and expense, a lien and completion bond in an amount equal to one and one-half(1 VI)times the estimated cost of any improvements, additions, or alterations in the Premises which the Tenant desires to make, to insure Landlord against any liability for mechanics' and materialmen's liens and to insure completion ofthe work.

11.ASS1GNMENT AND SUBLETTING.

Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the said Premises or any part thereof or any right or privilege appurtenant thereto, or allow any other person(the employees, agents, servants and invitees of Tenant excepted) to occupy or use the said Premises, or any portion thereof, without first obtaining the written consent of Landlord, which consent shall not be unreasonably withheld. A consent to one assignment, subletting, occupation or use by one person in no way confers or implies consent to an assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any such assignment or subletting without such consent shall be void, and shall, at the option of the Landlord, constitute a default under the terms of this Lease. (Note: In the instance of a Sublessee is a private for profit business, possessory interest tax may be applicable.)

12. HOLD HARMLESS.

Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant's use of the Premises or from the conduct of Tenant's business or from any activity, work, or other things done, permitted or suffered by the Tenant in or about the Premises, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of the Tenant, or any officer, agent, employee, guest, or invitee of Tenant, and from all costs, attorney's fees, and liabilities incurred in, or about the defense of any such claim or any action or proceeding brought thereon and in case any action or proceeding be brought against Landlord by reason of such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises, from any cause other than Landlord's negligence; and Tenant hereby waives ail claims in respect thereof against Landlord.

Tenant shad give prompt notice to Landlord in case of casualty or accidents in the Premises.

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40 I
Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Building or from the pipes, appliances or plumbing works therein or from the roof: street or subsurface or from any other place resulting from dampness or any other cause whatsoever, unless caused by or due to the willful and/or negligence of Landlord, its agents, servants or employees.

13. SUBROGATION.

As long as their respective insurers so permit, Landlord and Tenant hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage and other property insurance policies existing for the benefit of the respective parties. Each party shall apply to their insurers to obtain said waivers.

Each party shall obtain any special endorsements, if required by their insurer to evidence compliance with the aforementioned waiver.

14. LIABILITY INSURANCE.

Tenant shall, at Tenant's expense, obtain and keep in force during the term of the Lease a policy of commercial general liability insurance(sometimes known as comprehensive public liability insurance) insuring Landlord and Tenant(and, if requested by Landlord, Landlord's lender and property manager) against any liability for bodily injury, property damage(including loss of use of property) and personal injury arising out of the ownership, use occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be in the amount of not less than S2,000,000.00 per occurrence. The limit of any such insurance shall not, however, limit the liability of Tenant hereunder. Tenant may provide this insurance under a blanket policy, provided that said insurance shall have a Landlord's protective liability endorsement attached thereto. If Tenant shall fail to procure and maintain said insurance, Landlord may, but shall not be required to, procure and maintain same, but at the expense of Tenant. Insurance required hereunder shall be in companies rated A:XII or better as set forth in the most current "Best's Rating Guide." Tenant shall deliver to Landlord, prior to right of entry, copies of policies of liability insurance required herein or certificates evidencing and amounts of such insurance with loss payable clauses satisfactory to Landlord. All policies and certificates of policies shall provide that no cancellation, reduction or modification of coverage will occur without thirty (30) days prior written notice to Landlord. All such policies shall be written as primary policies-not contributing with and not in excess of coverage which Landlord may carry.

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15. UTILITIES.

Tenant shall pay for all water, gas, heat, cable, light, power, sewer charges, telephone service and all other s. No policy shall be cancelable or subject to reduction of coverage. All such policies services and utilities supplies to the Premises, together with any taxes thereon. If any such services are not separately metered to Tenant, Tenant shall pay a reasonable proportion to be determined by Landlord of all charges jointly metered with other Premises.

16. PERSONAL PROPERTY TAXES.

Tenant shall pay, or cause to be paid, before delinquency any and all taxes levied or assessed and which become payable during the term hereof upon all Tenant's leasehold improvements, equipment, furniture, fixtures, and any other personal property located in the Premises. In the event any or all of the Tenant's leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property, Tenant shall pay to Landlord its share of such taxes within ten 10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant's property.

17. RULES AND REGULATIONS.

Tenant shall faithfully observe and comply with rules and regulations that Landlord shall from time to time promulgate and/or modify. The rules and regulations shall be binding upon the Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the non-performance of any said rules and regulations by any other tenants or occupants. Tenant shall exercise their best effort to have employee and students follow rules.

18. ENTRY BY LANDLORD.

Landlord reserves, and shall at any and all times have, the right to enter the Premises to inspect the same upon reasonable notice to submit said Premises to prospective purchasers or tenants, to post notices of non-responsibility, to repair the Premises and any portion of the Building of which the Premises are a part that Landlord may deem necessary or desirable, without abatement or rent, and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be unreasonably blocked thereby, and further providing that the business of the Tenant shall not be interfered with unreasonably. Tenant hereby waives any claim for damages or for any injury or inconvenience to or interference with Tenant's business, B.3.a
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any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in, upon and about the Premises, excluding Tenant's vaults, safes and files, and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency, in order to obtain entry to the Premises without liability to Tenant except for any failure to exercise due care for Tenant's property and any entry to the Premises obtained by Landlord by any of said means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or-unlawful entry into, or a detainer of the Premises, or an eviction of Tenant from the Premises or any portion thereof

19. TENANT'S DEFAULT.

The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant
a) The vacating or abandonment of the Premises by Tenant. b) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof by Landlord to Tenant.
c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than described in (b), above, where such failure shall continue for a period of thirty(30) days after written notice thereof by Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty(30) day period and thereafter diligently prosecutes such cure to completion.
d) The making by Tenant of any general assignment or general arrangement for the benefit of creditors; dr the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty(60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty(30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where such seizure is not discharged within thirty(30) days.

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20. REMEDIES IN DEFAULT.

In the event of any such default or breach by Tenant, Landlord may at any time thereafter, in its sole discretion, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason or such default or breach:
a) Terminate Tenant's right to possession of the Premises by any IawfuI means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including, but not limited to, the cost of recovering possession of the Premises; expenses of relating, including necessary renovation and alteration of the Premises; reasonable attorney's fees; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid Rent and other charges and Adjustments called for the balance of the term after the time of such award exceeds the amount of such loss for the same period that Tenant proves could be reasonably avoided: and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease. Unpaid installments of Rent or other sums shall bear interest from the date due at the maximum legal rate; or
b) Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the rent and any other charges and Adjustments as may become due hereunder; or
c) Exercise any other remedy available to Landlord in law or equity

21. DEFAULT BY LANDLORD.

Landlord shall not be in default unless Landlord fails to perfartn obligations required of Landlord within a reasonable time, but in no event Eater than thirty(30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligations; provided, however, that if the nature of Landlord's obligation is such that more than thirty(30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such thirty(30) day period and thereafter diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as a result of Landlord's default and Tenant's remedies shall be limited to damages and/or an injunction.

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22. RECONSTRUCTION.

In the event the Premises are damaged by fire or other perils covered by extended coverage insurance, Landlord agrees to forthwith repair same, and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction of the Minimum Rent from the date of damage and while such repairs shall reasonably interfere with the business carried on by the Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of rent.

In the event the Premises are damaged to any extent as a result of any cause other than the perils covered by fire and extended coverage insurance, Landlord shall have the option: (1) to repair, reconstruct or restore the Premises, in which event this Lease shall continue in hall force and effect but the Rent shall be proportionately reduced as hereinabove provided in this Section during the period of such repair, reconstruction or restoration; or(2) to give notice to Tenant at any time within sixty(60) days after such damage, terminating this Lease as of the date specified in such notice, which date shall be no more than thirty (30) days after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of Tenant in the Premises shall terminate on the date so specified in such notice and the Rent, reduced by a proportionate reduction, based upon the extent, if any, to which such damage interfered with the business carried on by Tenant in the Premises, shall be paid up to date of said such termination.

Notwithstanding anything to the contrary contained in this Article, Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under this Article occurs during the last twenty-four months of the term of this Lease or any extension thereof Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacements of any leasehold improvements, fixtures, or other personal property of Tenant.
23, CONDEMNATION.

If all or any part of the Premises shall be taken or appropriated for public or quasi- public use by right of eminent domain with or without Iitigation or transferred by agreement in connection with such public or quasi-public use, either party hereto shall have the right at its option such taking to terminate this Lease as of the date possession is taken by the condemning authority, provided, however, that before Tenant may terminate this Lease by reason of taking or appropriation as provided hereinabove, such or appropriation shall be of such an extent and nature as to B.3.a
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substantially handicap, impede or impair Tenant's use of the Premises_ No award for any partial or entire taking shall be apportioned, and Tenant hereby assigns to condemnation, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof, provided, however, that nothing contained herein shalt be deemed to give Landlord any interest in or to require Tenant to assign to Landlord any award made to Tenant for the taking of personal property(excluding fixtures) belonging to Tenant and/or for the interruption of or damage to Tenant's business and/or for relocation of Tenant's business. In the event of a partial taking which does not result in a termination of this Lease, any charges under this Lease shall be abated in the proportion which the part of the Premises so made unusable bears to the rented area of the Premises immediately prior to the taking. No temporary taking of the Premises and/or of Tenant's rights therein or under this Lease shall terminate this Lease or give Tenant any right to any abatement of rent thereunder; any award made to Tenant by reason of any such temporary taking shall belong entirely to Tenant and Landlord shall not be entitled to share therein.

24. PARKING AND COMMON AREAS.

Tenant shall have access to the parking in the Building on a first-come, first-serve basis. Landlord reserves the right to change the entrances, exits, traffic lanes and the boundaries and locations of such parking area or areas. a) The Landlord shall keep said automobile parking and common areas in a neat, clean and orderly condition and shall repair any damage to the facilities thereof. b) Tenant, for the use and benefit of Tenant, its agents, employees, customers, licenses and sub-tenants, shall have the non-exclusive right in common with the public to use said common and parking areas during the entire term of this Lease, or any extension thereof, for ingress and egress, and automobile parking. c) The Tenant, in the use of said common and parking areas, agrees to comply with such reasonable rules and regulations for parking as the Landlord may adopt from time to time for the orderly and proper operation of said common and parking areas. Such rules may include but shall not be limited to the following: (1) The restricting of employee parking to a limited, designated area or areas; and (2) The regulation of the removal, storage and disposal of Tenant's refuse and other rubbish at the sole cost and expense of Tenant.

25. SIGNS.

The Tenant may affix and maintain upon the glass panes and supports of the show windows and within twelve(12) inches of any window and upon the exterior walls of the Premises only such signs, advertising placards, names, insignia, trademarks and descriptive material as shall have first received the written approval of the Landlord as to type, size, color, location, copy nature and display qualities. Anything to the contrary in this Lease notwithstanding, Tenant shall not affix any sign to the roof Tenant shall, however, erect one sign on the front of the Premises not later than the B.3.a
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date Tenant opens for business, in accordance with a design to be prepared by Tenant in accordance with Landlord's sign criteria and shall be subject to the approval of Landlord.

26. DISPLAYS.

The Tenant may not display or sell merchandise or allow grocery carts or other similar devices within the control of Tenant to be stored or to remain outside the defined exterior walls and permanent doorway of the Premises. Tenant further agrees not to install any exterior lighting, amplifiers or similar devices or use in or about the Premises any advertising medium which may be heard or seen outside the Premises, such as flashing lights, searchlights, loudspeakers, phonographs or radio broadcasts.

27. AUCTIONS.

Tenant shall not conduct or permit to be conducted any sale by auction in, upon or from the Premises whether said auction be voluntary, involuntary, pursuant to any bankruptcy or other insolvency proceeding.

28. HOURS OF BUSINESS.

Tenant shall remain open during the usual hours established by Gavilan College.

29. HOLDING OVER.

If Tenant should hold possession of the Premises or any part thereof after the expiration of the term of this Lease or any renewal or extension hereof then such holding over shall constitute a tenancy from month to month, upon the same terms, covenants and conditions.contained herein so far as are applicable.

30. GENERAL PROVISIONS,
a) Exhibits. Exhibits, schedules, riders and addenda, if any, affixed to this Lease are a part hereof
b) Waiver. The waiver by Landlord of any term, covenant or condition herein contained shall riot be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein obtained. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of the Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding default at the time of the acceptance of such Rent.

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c) Joint Obligation. If there be more than one Tenant the obligations hereunder imposed shall be joint and several.
d) Headings. The Section headings of this Lease are not a part of the Lease and shall have no effect upon the construction or interpretation of any part hereof. e) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.
t') Successor and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. g) Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum hereof may be recorded at the request of Landlord. h) Ouiet Possession. Upon Tenant paying the Rent reserved hereunder and observing and performing all of the covenants, conditions and provisions on Tenant's part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease.
i) Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent or other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent of any sum due from Tenant shall not be received by Landlord or Landlord's designee within five (5) days after written notice that said amount is past due, then Tenant shall pay to Landlord or Landlord's a late charge equal to the maximum amount permitted by law(and in the absence of any governing law, ten percent of such overdue amount), plus any attorneys' fee incurred by Landlord by reason of Tenant's failure to pay rent and/or other charges when due hereunder.

The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the Iate payment by Tenant. Acceptance of such late charges by the Landlord does not permit Landlord from exercising any of the other rights and remedies granted hereunder.

I) Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provisions of this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose.

No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto.
k) Xnahility to Perform, This Lease and the obligations of the Tenant hereunder shall not be affected or impaired because the Landlord is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused B.3.a
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by reason of strike, labor troubles, acts of God, or nay other cause beyond the reasonable control of the Landlord.

I) Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision hereof and such other provision shall remain in full force and effect. m)Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity.
n) Choice of Law. This Lease shall be governed by the laws of the State of California.
o) Attorneys' Fees. In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party shall be entitled to recover its expenses and costs, including its attorneys' fees and expert witness fees in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable.
p) Sale of Premises by Landlord. In the event of any sale of the Premises by Landlord, Landlord shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring afterthe consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of the Landlord under this Lease.
q) Subordination,Attornment, Upon request of the Landlord, Tenant will in writing subordinate its rights hereunder to the lien of any mortgage or deed of trust, to any bank, insurance company, governmental agency or other Iending institution, now or hereafter in force against the Premises, and to all advances made or hereafter to be made upon the security hereof
In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by the Landlord covering the Premises, the Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Landlord under this Lease.

The provisions of this Article to the contrary, notwithstanding, and so long as Tenant is not in default hereunder, this Lease shall remain in full force and effect for the full term hereof.
r.) Notices. All notices and demands which may or are to be required or permitted to be given by either party on the other hereunder shall be in writing. All notices and demands by the Landlord to the Tenant shall be sent by certified United States Mail, postage prepaid, addressed to the Tenant at the Premises, and to the address hereinbelow, or to such other place as Tenant may from time to time B.3.a
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designate in a notice to the Landlord. All notices and demands by the Tenant to the Landlord shall be sent by certified United States Mail, postage prepaid, addressed to the Landlord at the address set forth herein, and to such other person or place as the Landlord may from time to time designate in a notice to the Tenant.

To Landlord: City of Hollister
375 Fifth Street
Hollister, CA 95023
To Tenant: Gavilan College
5500 Santa Teresa Blvd.

Gilroy, CA 95020
s) Tenant's Statement(Estoppel Certificate). Tenant shall at any time and from time to time, upon not less than three (3) days prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect), and the date to which the Rent and other charges are paid in advance, if any, and (b)acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of the Landlord hereunder, or specifying such defaults if any are claimed, and setting forth the date of commencement of rents and expiration of the term hereof Any such statement may be relied upon by the prospective purchaser or encumbrancers of all or any portion of the real property of which the Premises are a part.
t) Authority of Tenant. If Tenant is a community college district, each individual executing this Lease on behalf of Tenant represents and warrants that he or she has full authority to do so and that this Lease binds the community college district.

31. NONDISCRIMINATION.

The Tenant herein covenants by and for the Tenant and Tenant's heirs, personal representatives and assigns and all persons claiming under the Tenant or through the Tenant that this discrimination against or segregation of any person or of a group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, disability, age or other arbitrary factor in violation of federal, state and local law in the provision of child care services in the Premises; employment in the Premises; leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Premises herein Leased nor shall the lessee or any person claiming under or through the lessee establish or permit any such reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the Premises herein Ieased.

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32. COMPLIANCE.

The parties hereto agree to comply with alI applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement, including, but not limited to, the 1964 Civil Rights Act and all amendments thereto, the Foreign Investment in Real Property Tax Act, the Comprehensive Environmental Response compensation and Liability Act, and the Americans with Disabilities Act.

33. EXHIBITS.

Attached hereto and made part of this lease: Exhibit"A"(Site Plan), Exhibit"B" Tenant Work), and Exhibit"C"=
CITY OF HOLLIS[hit GAVILAN COLLEGE
375 FIFTH STREET 5055 SANTA TERESA BLVD.

HOLLIS I'ER, CA 95023 GILROY, CA 95020
Dv: Bev:

Richar K, Boomer Dr.Glenn Mayle
M or Its: President
Date: y20/96 Date: l 12/9 6.

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EXHIBIT "A"
Site Plan
A-1
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EXIT"B""

RENT SCHEDULE
Year Lease Per Sq.Ft (8,500 SF) Minimum Monthly Rent
1 0.70 5950.00
2 0.80 6800.00
3 0.90 7650.00
4 1.00 8500.00
5-7 1.10 9350.00
8,10 1.20 10200.00
11-15 1.30 11050.00
B-1
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EXHIBIT"C"

DESCRIPTION OF TENANT'S WORK
1, Landlord agrees to fund up to $170,000 of tenant improvements to be agreed upon by the City and the District prior to commencement of work on the tenant improvements.

2. Landlord also agrees to amortized $42,500 within the minimum rent due in the lease to assist in tenant improvement costs.

3. If tenant improvement costs exceed$30.00 a square foot, the City agrees to incur that additional cost.

GI
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r
RESOLUTION 96- 89

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HOLLISTER TO EXECUTE A LEASE WITH GAVILAN COLLEGE.

WHEREAS; the City of Hollister owns and manages 9,500 square feet of retail space in the Briggs Parking Structure located at 365 Fourth St.; and WHEREAS; Gavilan College will occupy 8,500 square feet of the space for a satellite campus;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF HOLLISTER, that the City Manager or His Designee is directed and authorized, on behalf of the City of Hollister, to execute the attached lease and related documents, subject to minor changes with language to be approved as to form by the City Attorney, with Gavilan College for a portion of the Briggs Parking Structure.

PASSED AND ADOPTED, this 20th day of May, 1996, by the following votes:

AYES: Councilmen Felice, Duran, Irish, Guzman, and Mayor Boomer.

NOES: None.

ABSTAINED: None.

ABSENT: None.
le7-e-r-- IA.---d.5.,.o::?'e------ -------______
Richard K. Boomer, Mayor of the
City of Hollister
ATTES :
0-41.
a411/
11111°°('000,747.

4.1..
r. ol+ A. Carillo, Jr.`erk of the;
ity of Hollister
pUPUCATE
Of Qr1i
l+liiA
ON ME IN'11nE
OffIcE of T'riE CITY
R
CITY OF i-iOLL1ST=
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MEMORANDUM
R`
DATE: May 28, 1996
TO: --Phil MolirrarFinanceDirector
Elaine Cass, City Attorney
FROM: William B. Avera, RDA
RE: GAVILAN COLLEGE LEASE
Mr. Johnson asked me to address the questions and concerns regarding the Gavilan Lease in your memo dated May 24, 1998,

1. The amortized $42,500 is already included in the minimum rent.

2. Please note that paragraphs 6 (Security Deposit) and 7 (Additional Charges) have been removed from the lease.

With regards to section 7, the minimum rent received from the College would cover the expenses associated with the parking garage, (i.e. maintenace, insurance, and utilities) therefore, no reason to adjust for typical triple net charges.

If you should have any further questions or comments please feel free to call me at 636-4316.

CC: Barry Johnson; City Manager
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eTh
to completion the improvements to be erected by Tenant to the extent shown on the attached Exhibit"B".

Rent for any period which is for less than one(1)month shall be a prorated portion of the monthly installment herein based upon a thirty (30) day month. Said Rent shall be paid to Landlord, without deduction or offset, lawful money of the United States of America and at such place as Landlord may from time to time designate in writing.

5. TERM.

The lease term shall be 15 years commencing on the date Tenant's work as set forth in Exhibit"B" is substantially completed and terminating 15 years from that date.

The parties acknowledge that certain obligations under various Sections hereof may commence prior to the lease term, i.e., construction, holdharmless, liability insurance, etc.; and the parties agree to be bound by these articles prior to commencement of the Lease term.

Tenant is given the option to extend the term of this Lease for one(1)five(5) year period ("extended term") following expiration of the initial term, by giving written notice to exercise of option ("option notice") to Landlord at least six (6) months, but not more than one(1)year before the expiration of the term, If Tenant is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the initial term.

The parties shall have thirty(30) days after the Landlord receives the option notice to negotiate the applicable Rent during the extended term. If the parties agree on the Rent for the extended term during that period, they shall immediately execute an amendment to the Lease stating the new Rent. If the parties are unable to agree on the Rent for the extended term within that thirty(30)day period, the option notice shall be of no effect and this Lease shall expire at the end of the term.

6. SECURITY DEPOSIT.

Concurrently with Tenant's execution of this Lease, Tenant has deposited with Landlord a sum equivalent to the first month's Rent. Said sum shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited to the provisions relating to the payment of Rent, Landlord may (but shall not be required to use, apply or retain all or any part of this security deposit for the payment of any Rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said deposit is so used or B.3.a
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applied Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the security deposit to its original amount and Tenant's failure to do so shall be a default under this Lease. Landlord shall not be required to keep this security deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within ten (10) days following expiration of the Lease term. In the event of termination of Landlord's interest in this Lease, Landlord shall transfer said deposit to Landlord's successor in interest.

7. ADDITIONAL CHARGES.

In addition to the Rent provided for in Section 4 and commencing at the same time as any Rent commences under this Lease, Tenant shall pay to Landlord the following items, herein called"Adjustments":
i) All costs to maintain, insure, repair, operate, and replace common areas, parking facilities, sidewalks, driveways, and other areas used in common by the tenants of the Building.
ii) All costs to supervise and administer said common areas, parking lots sidewalks, driveways, and other areas used in common by the tenants or occupants of the Building. Said costs shall include such fees as may be paid to third party in connection with same and shall in any event include a fee to Landlord to supervise and administer same in an amount equal to ten 10%)percent of the total costs of(i) above.
iii) Any parking charges, utilities surcharges, taxes, assessments, or any other costs levied, assessed or imposed by, or at the direction of, or resulting from statutes or regulations, or interpretations thereof, promulgated by any governmental authority in connection with the use or occupancy of the Building or the parking facilities serving the Building.

8. USES PROHIBITED.

Tenant shall not do or permit anything to be done in or above the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure or annoy them or use or allow the Premises to be used for any B.3.a
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CITY OF HOLLISTER CITY COUNCIL AGENDA

TRANSMITTAL FORM
DATE: May 15, 1996 AGENDA ITEM:

MEETING DATE: May 20, 19%
TITLE OF ITEM: BRIGGS BUILDING LEASE
DEADLINE FOR COUNCIL ACTION: MAY 20, 1996
DEPARTMENT: Redevelopment Agency
4IfNATOR c'te

WILLIAM AVERA, REDEVELOPMENT PROJECTS
PHONE NO: 408-636-4316
DEPARTMENT SUMMARY: A RESOLUTION AUTHORIZING THE CITY

MANAGER TO EXECUTE A LEASE WITH GAVILAN COLLEGE FOR AVAILABLE SPACE WITHIN THE BRIGGS PARKING STRUCTURE AT 365 FOURTH STREET, HOLLISTER.

FINANCIAL IMPACT: 0-
FUNDING SOURCE: REDEVELOPMENT AGENCY
BUDGET RECAP:

Total Estimated Cost New Revenue $71.400
Net City Cost Lost Revenue $
Amt. Budget FY 94/95 New
New Funding Required $ Change in City Policy?
PRIOR COUNCIL ACTIONS:

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ALTERNATIVES:

1. Approve

2. Deny
ENVIRONMENTAL REVIEW STATUS: None
COMMITTEE REVIEW AND ACTION: None.

ATTACHMENTS:

1. STAFF REPORT DATED APRIL 29, 1996

2. LEASE

3.RESOLUTION 96- , AUTHORIZING THE CITY MANAGER TO EXECUTE LEASE DOCUMENTS.

RECOMMENDE ACTION: APPROVAL
EXECUTIVE IRECTOR RECOMMENDATION: Same as recommended action.

CONCURRENCES (if appropriate): N/A
BY: BY:

City Attorney Other ( ) City Manager
ept. Head
Supervisor
AGENDA\GAVLEASE DOC
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MEMORANDUM
DATE: April 29, 1996
TO: Barry Johnson, City Manager
FROM: William B. Avera, RDA
RE: BRIGGS BUILDING LEASE
BACKGROUND:

The City of Hollister owns a four story parking structure located at 365 Fourth St. The first floor of the structure contains 9,500 square feet of retail space with storage areas.

Completion of the building is scheduled to be around middle of May, and the City has been contacted by businesses showing an interest in leasing space in the structure.

DISCUSSION:

The City of Hollister has been in negotiations with Gavilan College to lease 8,500 square feet in the Briggs Parking Structure. The term of the lease is Fifteen (15) years with one Five (5) year extension option. The City of Hollister is offering the College a Twenty (20) dollar per square foot tenant improvement allowance.

Staff is requesting that the City Council authorize the City Manager to enter into a Lease with Gavilan College and execute all related documents.

RECOMMENDATION:

Approve Resolution 96-authorizing the City Manager or His Designee to execute the lease documents with Gavilan College for space within the Briggs Parking Structure.

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DUPLICATE OF ORIGINAL

ON FILE IN THE

OFFICE OF THE CITY CLERK
RESOLUTION 99- 172

CITY OF HOLLISTER

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING A USE AGREEMENT WITH GAVILAN COLLEGE FOR THE
ARNOLD CARRILLO CONFERENCE ROOM.

WHEREAS, the City of Hollister currently owns the Briggs Building which is primarily leased by Gavilan College; and
WHEREAS, Gavilan College has expressed an interest in using the Arnold Carrillo conference room within the Briggs Building to expand classes.

NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF HOLLISTER, that the City Manager, is hereby authorized and directed, by the City Council to execute a use agreement with Gavilan College for the use of the Arnold Carrillo conference room at a rate of$5.00 per hour.

PASSED AND ADOPTED, this 18th day of October, 1999, by the following vote:

AYES: Councilmembers Valdivia, Corrales, Duran, Felice and Mayor Booms- NOES: None
ABSTAINED: None
ABSENT. Non
Richard K. oomer, Mayor
City of Hollister
Frank D. Felice, Cit .Clerk
City of Hollister
L.(
APPROVED AS TO FORM:

Elaine Cass, City Attorney
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STAFF REPORT TRANSMITTAL FOR

STUDY SESSION AND/OR CITY COUNCIL AGENDA
DATE: October 8, 1999 AGENDA ITEM: Consent
STUDY SESSION DATE: MEETING DATE: October 18, 1999 TITLE OF ITEM: Gavilan College Lease of Arnold Carrillo Conference Room BRIEF DESCRIPTION:

Gavilan College is requesting the use of the Arnold Carrillo conference room located in the Briggs Building for the purposes of expanding classes. The college would like to begin with two nights, Monday and Tuesday, for three hours a night.

DEPARTMENT: Community Development Department
CONTACT PERSON: Bill Avera PHONE: 636-4316
DEPARTMENT SUMMARY:

Gavilan College currently leases approximately 9,500 square of the retail portion of the Briggs Building. In addition, the College leases rooms from the local school district when the need arises for expanding classes. Therefore, the college is requesting the opportunity to lease the Arnold Carrillo conference room for expanding classes for obvious convenience purposes.

Gavilan College is interested in using the room next semester in the evenings for approximately three hours. The days would be limited to Mondays and Tuesdays only.

Their proposal is to lease the room at the same rate they pay the school districts which is

5.00 per hour. This would equate to $15.00 per evening, or$120.00 per month.

Staff has recently completed a change in the storefronts at the Briggs Building. By switching doors and windows, it is now possible to enter the Arnold Carrillo conference room from the street without accessing the office space utilized by the Community Resource Center(Crime Prevention, Housing Authority, etc.).

Staff recommends that the City Council authorize the City Manager to execute a Use Agreement with Gavilan College to utilize the Arnold Carrillo conference room.

FINANCIAL IMPACT: A revenue of$120.00 per month.

STAFF RECOMMENDATION:

Staff recommends the City Council adopt Resolution 99- authorizing the City Manager to execute a Use Agreement with the Gavilan College for the use of the Arnold Carrillo conference room located in the Briggs Building.

CITY MANAGER RECOMMENDATION: Concurs
APPROVED AS TO FORM:
1 B.3.a
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OH ill l lilt 111 l lili l illll i l l lllli
2012-0005713
Recorded REC FEE 0.00
Official Records
County of CONFORMED C 0.00
San Benito

JOE PAUL GONZALEZ
Clerk-Auditor-Recorde
Recorded By and Return To: JB
03:41PM 21-Jun-2012 Page 1 of 9
City Clerk's Office
City of Hollister
375 Fifth Street
Hollister, CA 95023
To Be Recorded Without Fee Per Government Code Section 27383 Amendment No. 1 to Lease Between
The City of Hollister and Gavilan College, A
Community College District
Adopted by the City Council of the City of Hollister
on the 18th day of June, 2012
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Recorded by and Return to:

City of Hollister
Office of the City Clerk
375 Fifth Street
Hollister, CA 95023
AMENDMENT NO. 1 TO LEASE BETWEEN

THE CITY OF HOLLISTER AND GAVILAN COLLGE, A

COMMUNITY COLLEGE DISTRICT
This Amendment No. 1 to the Lease dated June 20, 1996, is entered into on May 21, 2012, between the City of Hollister, a municipal corporation, (the Landlord"), and Gavilan College, a community college district (the "Tenant"), together referred to as "the Parties."

RECITALS
A. On June 20, 1996, the Parties entered into a Lease for a portion of the Briggs Building located at 365 Fourth Street, Hollister CA 95023 (the Building").

B. Said lease is due to expire on June 30, 2012.

C. The Parties desire to amend some of the terms of the Lease, including the expiration date.

Now, therefore, for good and valuable consideration, the Parties agree to amend the Lease Agreement as follows:

AMENDMENT NO. 1
Premises
Section 2 of the Lease is hereby amended to replace the phrase "8,500 square feet of floor area" with the phrase 8,984 square feet of floor area".

Section 2 of the Lease is also amended to replace "Exhibit A' with the attached "Exhibit A" which includes Room 6, the Arnold Carrillo Room, as part of the Premises.

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Term
Section 5 is hereby amended to add the following:

Consistent with Tenant's option to extend the lease term, the Parties agree to extend the lease term for an additional five (5) years or until June 20, 2017 provided, however, that beginning December 31, 2013, the Tenant shall have the right to terminate the Lease upon six months written notice.

Rent
Section 4 of the Lease is hereby amended to replace "Exhibit B" Rent Schedule with the attached "Exhibit B" which is incorporated into the Lease as if fully set forth herein.

Utilities/Janitorial Services
Section 15 is now entitled Utilities/Janitorial Services and is amended to add the following: Tenant is responsible to provide daily, biannual and annual janitorial services for the Premises and bathroom facilities, as specified herein. Tenant shall provide all cleaning and bathroom supplies including but not limited to replacement light bulbs, trash liners, toilet paper, paper towers, and hand soap. Landlord is responsible to provide cleaning services to the City's Sub-Station (Room) and all Elevators. All contracts for janitorial services shall comply with the California Public Contract Code. The City shall have the right to inspect any portion of the Briggs Building for sufficiency of janitorial services. If City finds that the janitorial services are unsatisfactory, the City shall provide written notice to Tenant, and Tenant shall have forty-eight hours from the date and time of the service of the notice to cure those janitorial deficiencies.

Daily Janitorial services shall include the following:
1 . Empty all trash in receptacle inside and outside of building and dispose to the appropriate trash or recycling bin.

2. Dust office and classroom furniture, chairs, file cabinets and bookshelves

3. Dust windowsills, ledges, and other flat surfaces.

4. Clean tables and counter

5. Clean doors, doorframes, and light switches

6. Clean glass entry doors

7. Thoroughly vacuum all carpeting

8. Sweep and mop all tile floor areas

9. Keep recycled items separate from garbage and dispose in appropriate container

10.Clean all baseboard, walls, partitions and doors
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11.Restroom Services — (per cleaning)
a. Restock supplies for toilet paper, seat covers, paper towels, and hand soap
b. Empty trash containers and dispose to garbage bin
c. Sweep floors prior to mopping, use disinfectant floor cleaner d. Clean baseboards, walls, partitions, and doors
e. Scrub all toilets and urinals
f. Polish mirrors
g. Clean sinks and polish metal fixtures
h. Dust flat surfaces such as sink counter
i. Dry our mop and mop bucket after used
Biannual Janitorial Service shall include:
1 . Window Cleaning Inside and outside and window frames and tracks.

2. Thoroughly remove all stains and steam cleaning on all carpet areas.

Annual Service shall include:

1. Apply non-slip wax to all non-carpeted traffic areas All other terms and conditions of the original Lease dated June 20, 1996, shall remain in full force and effect.

Landlord Tenant
City of Hollister Gavilan College
375 Fifth Street 5055 Santa Teresa Boulevard
Hollister, CA 95023 Gilroy, CA 95020
107( jet.,;.4.4._
ay and Friend Dr. Steve Kinsella
Mayor President
D 8 Date: !4)//3A2 0/9—
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EXHIBIT "A" - PREMESIS
MMUNgE IIXATWx
J .r --_ott, ...1 r
411
I- I.•.4•O• •.0•/ i11{A a LL1/... PARKING GARAGE
w I'+. j
A.•..•.

RE
4!,.kj t-
71 it u ma
I
TO tcm
9 El El1Ose!i i i i may..•.
z . I Q,.*w,i;liOOi iOOODOi ii0•ii• +"• E
L.
it 4
1:h 1. IIp4).'...•.,•.•w,,11.
1 rnia uo 1444i. 41
ii: A , iiiii i iii•4i .1+'.•,
I
x xx. p

44. m
P•S i

FOURTH STREET

CITY OF HOLLISTER
BRIGGS BUILDING AND PARKING GARAGE 1ST. . • • FLOOR B.3.b
Packet Pg. 70Page 151 of 1379

EXHIBIT "B"

RENT SCHEDULE
Year Lease Rate per Monthly Rate Credit for Adjusted
Square Foot Janitorial Monthly
8,984 Sq. Ft.) Services and Minimum
Supplies
1-3 1 .20 (2012-2015) $10,200.00 1 ,500.00)9,280.80 4 1.25 (2016) 10,625.00 1 ,650.00)9,580.00
5 1 .30 (2017) 11,050.00 1 ,700.00) 9979.20
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California All-Purpose Acknowledgment 2008 Code Section 1189 Compliant State of California
County of 5}9AJ7* (!)AIW)
On i / 3 MO1 before me,/ .()gJt9z ,var i >/ R) # here insert name and tit/ of the officer)
personally appeared 5?7j-kvPy 1-1, k;it 7,5R.Z AA
who proved to me on the basis of satisfactory evidence to be the person .whose name i / subscribed to the within instrument and acknowled ed to me that he/a)CA/thXy executed the same in his/ t authorized capacity(), and that by his/lr/th Nr signature .on the instrument the person, or the entity upon behalf of which the person(Oacted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
aSignature79j.k rs[?wp ` 1 92Uir: Comm. R127 F
I :1'80 Notary Pubic CaNtomioCOIL**,, Santo Clara CountyCO1nj7. My Comm.Expires Dec 21.2014 Seal)

OPTIONAL INFORMATION
Law does not require the information below. This information could be of great value to any person(s)relying on this document and could prevent fraudulent and/or the reattachment of this document to an unauthorized document(s)

DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document:

Document Date: Number of Pages:

Signer(s) if Different Than Above:

Other Information:

CAPACITY(IES)CLAIMED BY SIGNER(S)
Signer's Name(s):

Individual
Corporate Officer
Title(s))
Partner
Attorney-in-Fact
Trustee
Guardian/Conservator
Other:

SIGNER IS REPRESENTING:

Name of Person(s) or Entity(ies):

C 2008 Notary Public Seminars www.notarypublicseminars.com B.3.b
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ACKNOWLEDGEMENT
The undersigned parties hereby acknowledge the mathematical error in the calculation of the monthly rate listed on Exhibit B Rent Schedule of the Amendment No. 1 to Lease between the City of Hollister and Gavilan College, A Community College District recorded at the San Benito County Recorder's Office on June 21, 2012, Recorder's Number 2012-0005713. The parties agree that the corrected monthly rate is shown below and that the recorded Adjusted Monthly Minimum Rent will remain the same.

EXHIBIT "B"

CORRECTED RENT SCHEDULE
Year Lease Rate per Monthly Rate Credit for Adjusted
Square Foot Janitorial Monthly
8,984 Sq. Ft.) Services and Minimum
Supplies
1-3 1.20 (2012-2015) 10,200.00 1,500.00) 9,280.80
10,780.80
4 1.25 (2016) 4-0,625.00 1,650.00) 9,580.00
11,230.00
5 1.30 (2017) 11,050.00 1,700.00) 9979.20
11,679.20
0/4_ A _______-- -A i 4v142_,e_____-
Clint Quilter Steve Kinsella
City Manager, City of Hollister President, Gavilan College Date:1 ( 2 l< idd ( '2-J / Date:

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Packet Pg. 73Page 154 of 1379

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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evidence to be the person(s) whose name(s) is/are
fi subscribed to the within instrument and acknowledged fi to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and thatbyGERALDINEA.JOHNSON fifi Commission 1903450
his/her/their signature(s) on the instrument the g
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fi I certify under PENALTY OF PERJURY under the
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Packet Pg. 74Page 155 of 1379

RESOLUTION NO. 2012-102

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO THE LEASE AGREEMENT

WITH GAVILAN COLLEGE, A COMMUNITY COLLEGE DISTRICT,

FOR THE BRIGGS BUILDING
WHEREAS, the City Council of the City of Hollister approved Resolution No. 96- 89 which authorized a lease agreement with Gavilan Community College for the Briggs Building at 365 Fourth Street for a satellite campus to educate residents in the City of Hollister; and
WHEREAS, the term of the lease of the facility was for 15 years with an option for a five year extension; and
WHEREAS, the Gavilan Community College District desires to extend the lease agreement for five years with an option for early termination beginning the third year of the lease and other amendments;
NOW THEREFORE BE IT RESOLVED as follows:

1.The Mayor is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA.

2. The City Council approves Amendment No. 1 to the lease agreement dated May 1, 2012.

3. The Mayor is hereby authorized and directed to execute Amendment No. 1 to the Lease Agreement with Gavilan Community College.

4. This Resolution shall take immediate effect upon its adoption.

PASSED AND ADOPTED this 18th day of June 2012, by the following votes:

AYES: Council Members Emerson, Valdivia, Scattini, Gomez, and Mayor Friend.

NOES: None.

ABSENT: None.

Raymo d Friend, Mayor
ATTEST: APPROVED AS TO FORM:

46.-
G ri Johnson, ity Clerk
Stepha Atigh, City Attor(ie

DUPLICATE OF ORIGINAL

ON FILE IN THE
OFFICE

IY OFTHE CITY
B.3.b
Packet Pg. 75Page 156 of 1379

EXHIBIT 1
AMENDMENT NO. 2 TO LEASE OF BRIGGS BUILDING BETWEEN

THE CITY OF HOLLISTER AND GAVILAN COLLEGE, A COMMUNITY

COLLEGE DISTRICT
This Amendment No. 2 to the Lease of Briggs Building dated June 20, 1990 (the "Lease") is entered into on May 15, 2017, between the City of Hollister, a municipal corporation, (the "Landlord"), and Gavilan Joint Community College District, a community college district (the "Tenant"), together herein referred to as "the Parties."

RECITALS
A. Whereas the Parties entered into the Lease of a portion of the Briggs Building located at 365 Fourth Street, Hollister, CA 95023 (the "Building"); B. Whereas the Parties, pursuant to Amendment No. 1 to Lease Between City of Hollister and Gavilan College dated June 21, 2012 ("Amendment No. 1"), agreed to extend the original term of the Lease from June 30, 2012 to June 20, 2017; and
C. Whereas, Landlord and Tenant now desire to amend and extend the current term of the Lease pursuant to the terms, covenants, agreements, and conditions set forth in this Amendment No.2;
Now, therefore, for good and valuable consideration, the Parties agree to amend the Lease and Amendment No. 1, as follows:

AMENDMENT NO. 2

1. Extension of Current Lease Term
The term of the Lease is hereby amended to extend for five (5) additional years, commencing on June 21, 2017 and ending on June 20, 2022 (the "Extended Term"), provided, however, that Tenant, beginning on December 31, 2019, shall have the right to terminate the Lease early by providing Landlord with six (6) month's written notice.

2. Premises
a. Section 2 of the Lease is hereby amended as follows: The phrase "8,984 square feet of floor area" is deleted in its entirety and the phrase "8,260 square feet of floor area" is inserted in its stead.
b. Section 2 of the Lease is further amended as follows: Exhibit "A" to the original Lease is hereby deleted in its entirety and replaced in its stead by Exhibit "A" attached hereto and incorporated herein by reference. Exhibit "A" attached hereto removes Room 6, the Arnold Carrillo Room, adds the nearly 16 foot by 19 foot storage room at the northwest portion of the building to part of the Premises Page I 1
B.3.c
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and removes the nearly 16 foot by 34 foot storage room on the northwest corner as constituting part of the Premises.

3. Rent
Notwithstanding provisions of the Lease and Amendment No. 1 relating to Rent, during the Extended Term, Rent due to Landlord from Tenant shall be paid in strict accordance with the terms and conditions set forth in Exhibit "B" attached hereto and incorporated herein, as if fully set forth.

4. Utilities/Janitorial Services
Section 15 of the Lease and Amendment No 1 are hereby amended to add the following weekly responsibilities to the Landlord cleaning services: the stairs, sweeping and removal of cobwebs at the front of the structure facing San Benito Street and near the elevator entrances.

5. No Other Changes
Except as provided in this Amendment No. 2, the terms and conditions of the Lease and Amendment No. 1 dated June 18, 2012, shall remain unmodified and in full force and effect. In the event of a conflict between the terms of this Amendment No. 2 and the terms of the Lease and Amendment No. 1, the terms of this Amendment No. 2 shall govern and control.

7. Effective Date of Amendment No. 2.

This Amendment No. 2 is subject to approval or ratification by the Landlord's City Council and the Tenant's Board of Trustees. This Amendment No. 2 shall only be effective and enforceable as of the date that the City Council and Board of Trustees have taken action to approve/ratify this Amendment No.2.

8. Counterparts
This Amendment No. 2 may be executed in any number of counterparts, each of which shall be deemed an original, and when taken together, shall constitute one and the same document.

Landlord Ignacio Velazquez
City of Hollister
Mayor-
375 Fifth Street Date:

Hollister, CA 95023

Page 2 ends

B.3.c
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0 Tenant 00
rederick E. Harris
Gavitan Joint Community College
Vice President of Administrative
District Services
l
5055 Santa Teresa Boulevard
Gilroy, CA 95020 Date:

Page 3 ends

B.3.c
Packet Pg. 78Page 159 of 1379

EXHIBIT "A" - PREMISES
w
s
1 I-1
b i'i'i'i4.+4 i'.4 'Ov'i'i;
t +++
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at,'

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4I PARKING GARAGE

40.I':•
4141: Ali. +. OO.r:. • I .
pi:ice +++++
i+
41,'''SS.. . Room I
Police
11 A4 '0#4* 6
Storage

1.0.140
E. • .+..•Z+r- .1040.01K••••,-..-4.J-3---,..---"Ct

FOURTH STREET

CITY OF HOLLISTER
a3 BRIGGS BUILDING AND PARKING GARAGE 1ST. TO 4TH FLOOR

Page 14 ends

B.3.c
Packet Pg. 79Page 160 of 1379

EXHIBIT "B"

RENT SCHEDULE
AMENDMENT NO. 2 TO

LEASE BETWEEN CITY OF HOLLISTER AND GAVILAN

JOINT COMMUNITY COLLEGE DISTRICT
BRIGGS BUILDING, 365 FOURTH STREET, HOLLISTER, CALIFORNIA 95023 Year Lease Rate per Monthly Rate Credit for Adjusted
Square Foot Janitorial Monthly
8,260 Sq. Ft.) Services and Minimum
Supplies
1 1.35 (FY 17/18) 11,151 1,750.00) 9,401
2 1.35 (FY 18/19) 11,151 1,750.00) 9,401
3 1.40 (FY 19/20) 11,564 1,800.00) 9,764
4 1.45 (FY 20/21) 11,977 1,800.00) 10,177
5 1.50(FY 21/22) 12,390 1,800.00) 10,590

Page 15 ends

B.3.c
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STANDING (OPEN) PURCHASE ORDERS:

A standing (open) purchase order (PO) is used for a requirement that is reoccurring or repetitive in nature, difficult to quantify over a period of time, and is not to exceed or cross fiscal years. Standing POs allow requesters to make repetitive purchases of miscellaneous low cost supplies, utilities, monthly lease/rentals, and maintenance contracts throughout the current fiscal year. They are not to be used for expenditures that may only occur only once or twice a semester.

Please submit a new Banner Requisition at the beginning of each fiscal year to establish a standing P0. The standing PO is only valid for purchases up to the "not-to-exceed" dollar amount. Requests for PO increases will be reviewed on an individual basis to determine the need.

The following information is to be included on all Requisitions for a standing PO:
1) Person(s) authorized to use standing PO
2) Not to exceed (NTE) amount(s)
3) Effective period (e.g. July 1, 2017 - June 30, 2018) 4) Brief description of what is to be purchased with the standing PO 5) Due Date should be the last day the Standing PO will be valid, but not later than the last day of the fiscal year (June 30).

Standing POs cannot be used to purchase the following or any other unauthorized purchase:

Personal purchases
Furniture and equipment
Gift cards and/or certificates
Gratuities and gifts
Printers, computers, scanners, or other IT equipment
Instructional kits
Travel expenses
Small tools
B.3.c
Packet Pg. 81Page 162 of 1379

LETTER OF TRANSMITTAL DEVELOPMENT SERVICES DEPT
4 PLANNING DIVISION
Office: 339 Fifth Street Mail: 375 Fifth Street
Hollister,CA 95023 t` Hollister,CA 95023
FAX: (831)634-4913 ,

OLLISTE
Phone: (831)636-4316
HometownCalttarnia "'1
To: Fred Harris&Judy Rodriguez
Gavilan Community College District Date: May 18,2017
Cc: Tom Graves,City Clerk
Christine Black,Deputy City Clerk
Subject: Amendment 2 Briggs Bldg. Lease
WE ARE SENDING YOU:

X ATTACHED OR
I
UNDER SEPARATE COVER VIA Fax&Mail

THE FOLLOWING ITEMS

PLANS PRINTS SPECIFICATIONS SAMPLE

COPY OF LETTER CHANGE ORDER SHOP DRAWINGS X OTHER
PAGES DATE NO. DESCRIPTIONS
5 5/17/2017 2 Two signed copies of Amendment 2 to the lease agreement for the Briggs Building
1 5/17/2017 1 Copy of City Council Resolution No. 117-113 approving the Amendment 2 to the Briggs Building lease
THESE ARE TRANSMITTED AS CHECKED BELOW:

FOR INFORMATION&COORDINATION FOR YOUR RECORDS

X FOR APPROVAL AS REQUESTED
Copy of approved application RETURNED AFTER LOAN TO US

X FOR YOUR FILES RESUBMIT COPIES FOR REVIEW

SUBMIT COPIES FOR DISTRIBUTION RETURN CORRECTED PRINTS
REMARKS: Please find enclosed two copies of Amendment 2 to the lease for the Briggs Building satellite campus for Gavilan Community College. Please return one(1)signed original copy to the City Clerk of the City of Hollister at 375 Fifth Street,Hollister California 95023 to the attention of Tom Graves. The second copy with the original signature is for your records.

COPIES TO:DEVELOPMENT SERVICES DEPT.

BY: Mary M.Paxton
B.3.c
Packet Pg. 82Page 163 of 1379

2a1S1 I 1 ti JO ALL)
1313 u10 A2A301Aie
RESOLUTION NO. 2017-113 1dNINHO rndna

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE EXECUTION OF AMENDMENT NO. 2 TO THE LEASE

AGREEMENT WITH GAVILAN COLLEGE, A COMMUNITY COLLEGE DISTRICT

NOW, THEREFORE, BE IT RESOLVED as follows:

1. The Mayor is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA.

2. The City Council approves Amendment No. 2 to the lease agreement attached as Exhibit 1 to this resolution.

3. The Mayor is hereby authorized and directed to execute Amendment No. 2 to the Lease Agreement with Gavilan College, a Community College District included as Exhibit 1.

4.This Resolution shall take immediate effect upon its adoption.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held this 15th day of May, 2017, by the following vote:

AYES: Council Members Gillio, Klauer, Friend, Luna, and Mayor Velazquez.

NOES: None.

ABSENT: None.

Ignacio Velazquez, Mayor
ATTEST: APPROVED AS TO FORM:
0)E0310Y-
L+G - , Attorneys at taw
Thomas A. Graves, MMC, Ci y Clerk
E-S-ar iszi=eitikttorney
B.3.c
Packet Pg. 83Page 164 of 1379

STAFF REPORT

CITY COUNCIL OR STUDY SESSION AGENDA
DATE: May 1, 2017 AGENDA ITEM: Consent 48' $
STUDY SESSION DATE: MEETING DATE: May 15, 2017 TITLE OF ITEM: RESOLUTION NO. 2017- 113 , A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AMENDMENT NO. 2 TO THE LEASE AGREEMENT WITH

GAVILAN COLLEGE, A COMMUNITY COLLEGE DISTRICT FOR THE BRIGGS BUILDING.

BRIEF DESCRIPTION: This resolution will approve Amendment No. 2 to the lease agreement between the City and Gavilan, A Community College District (the "District) at the Briggs Building authorizing a five year extension with other amendments to the agreement including elimination of Room 6 and graduated rate increases.

STAFF RECOMMENDATION: City Council approves the following motion: ADOPT Resolution 2017- 11 a Resolution of the City Council of the City of Hollister Authorizing and Directing the Mayor to Execute Amendment No. 2 to the Lease Agreement with Gavilan College, a Community College District for the Briggs Building.

DEPARTMENT SUMMARY: On May 20, 1996, the City Council approved Resolution 96- 89 which authorized the execution of a fifteen (15) year lease with an option for a five year extension with the Gavilan Community College District (the "District") to establish a satellite campus at the Briggs Building. The lease area encompassed 8,500 square feet on the first floor of the Briggs Building with graduated payments starting at $0.70 per square foot increasing to a rate of $1.30 per square foot. The former Redevelopment Agency of the City of Hollister provided assistance with $24,000 in contracting services for tenant improvements at the facility in 1996 while the college funded material costs of 4,800. On June 18, 2012, the City Council approved Resolution 2012-102 authorizing the mayor to sign Amendment No. 1 to the lease agreement with four changes: 1) a graduated lease rate starting at $1.20 per square foot and increasing to $1.30 per square foot; 2) Transfer of janitorial services and supplies in the lease area from the city to the tenant with a credit for the cost; 3) the 384 square feet Room 6, the Arnold Carrillo Room was added; and 4) an option for early termination in year 3 of the lease with a six month notice requirement.

The lease agreement will expire this June. Amendment No. 2 is included as Exhibit 1 of the attached resolution. The proposed amendment will remove Room 6 from the lease area so that it can be used as office space for Code Enforcement, the Community School Officer, and a substation for Police and Fire. The amendment includes graduated lease rates with credits for janitorial service. The adjusted lease rate with janitorial credits would be $1.16 per square foot for the first two years, $1.20 per square foot for the second year,

1.25 per square foot for the third year and $1.30 per square foot for the fifth year.

Amendment No. 2 would also clarify that the City is responsible for weekly janitorial services on the stairs, sweeping and removal of cobwebs at the front of the structure facing San Benito Street and near the elevator entrances. Staff is recommending that B.3.c
Packet Pg. 84Page 165 of 1379

the City Council adopt the attached resolution authorizing the Mayor to sign Amendment No. 2 to the lease agreement at the Briggs Building.

ATTACHMENTS: Resolution, 1996 Lease, Lease Amendment 1 and clarification memo
CEQA: 15301. Class 1 Existing Facilities (leasing) FINANCIAL IMPACT: Graduated rent income of $124,536 - $140,112 per year DEPARTMENT: Development Services
DEPARTMENT HEAD: Bryan T. Swanson
CONTACT PERSON:Mary M. Paxton ,1i '
PHONE NUMBER: 831-636-4340

THIS REPORT WAS REVIEWED BY THE
j

CONCURS WITH

THE STAFF RECOMMENDATION
William B. Avera, City Manager
B.3.c
Packet Pg. 85Page 166 of 1379

1111iIIIIIIIIIIIIllliaiillIIIIIII
20 1 2-00O57 1 3
Recorded REC FEE 0.00
Official Records
County of CONFORMED C 0.00
San Benito
JOE PAtUL GONZALEZ
Clerk—Auditor—Recorde
Recorded By and Return To: JB
03:41PM 21—Jun-2012 Page 1 of 9
City Clerk's Office
City of Hollister
375 Fifth Street
Hollister, CA 95023
To Be Recorded Without Fee Per Government Code Section 27383 Amendment No. 1 to Lease Between
The City of Hollister and Gavilan College, A
Community College District
Adopted by the City Council of the City of Hollister
on the 18th day of June, 2012
B.3.c
Packet Pg. 86Page 167 of 1379

I
Recorded by and Return to:

City of Hollister
Office of the City Clerk
375 Fifth Street
Hollister, CA 95023
AMENDMENT NO. 1 TO LEASE BETWEEN

THE CITY OF HOLLISTER AND GAVILAN COLLGE, A

RECITALS
A. On June 20, 1996, the Parties entered into a Lease for a portion of the Briggs Building located at 365 Fourth Street, Hollister CA 95023 (the Building").

B. Said lease is due to expire on June 30, 2012.

C. The Parties desire to amend some of the terms of the Lease, including the expiration date.

Now, therefore, for good and valuable consideration, the Parties agree to amend the Lease Agreement as follows:

AMENDMENT NO. 1
Premises
Section 2 of the Lease is hereby amended to replace the phrase "8,500 square feet of floor area" with the phrase 8,984 square feet of floor area".

Section 2 of the Lease is also amended to replace "Exhibit A' with the attached "Exhibit A" which includes Room 6, the Arnold Carrillo Room, as part of the Premises.

B.3.c
Packet Pg. 87Page 168 of 1379

Term
Section 5 is hereby amended to add the following:

Rent
Section 4 of the Lease is hereby amended to replace "Exhibit B" Rent Schedule with the attached "Exhibit B" which is incorporated into the Lease as if fully set forth herein.

Daily Janitorial services shall include the following:

1. Empty all trash in receptacle inside and outside of building and dispose to the appropriate trash or recycling bin.

2. Dust office and classroom furniture, chairs, file cabinets and bookshelves

3. Dust windowsills, ledges, and other flat surfaces.

4. Clean tables and counter

5. Clean doors, doorframes, and light switches

6. Clean glass entry doors

7. Thoroughly vacuum all carpeting

8. Sweep and mop all tile floor areas

9. Keep recycled items separate from garbage and dispose in appropriate container

10.Clean all baseboard, walls, partitions and doors
B.3.c
Packet Pg. 88Page 169 of 1379

1. Window Cleaning Inside and outside and window frames and tracks.

2. Thoroughly remove all stains and steam cleaning on all carpet areas.

Annual Service shall include:

1. Apply non-slip wax to all non-carpeted traffic areas All other terms and conditions of the original Lease dated June 20, 1996, shall remain in full force and effect.

Landlord Tenant
City of Hollister Gavilan College
375 Fifth Street 5055 Santa Teresa Boulevard
Hollister, CA 95023 Gilroy, CA 95020
A0% 44...get_
ay and Friend Dr. Steve Kinsella
Mayor President
D 8 Date:13/2 d!
B.3.c
Packet Pg. 89Page 170 of 1379

5 EXHIBIT "A" - PREMESIS
MRTI*N4SE LOCATION
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FOURTH STREET

CITY OF HOLLISTER
BRIGGS BUILDING AND PARKING GARAGE 1ST. . ' ' FLOOR B.3.c
Packet Pg. 90Page 171 of 1379

EXHIBIT "B"

RENT SCHEDULE
Year Lease Rate per Monthly Rate Credit for Adjusted
Square Foot Janitorial Monthly
8,984 Sq. Ft.) Services and Minimum
Supplies
1-3 1 .20 (2012-2015) $10,200.00 1 ,500.00)9,280.80 4 1 .25 (2016) 10,625.00 1,650.00)9,580.00
5 1.30 (2017) 11,050.00 1,700.00) 9979.20
B.3.c
Packet Pg. 91Page 172 of 1379

4,_
California All-Purpose Acknowledgment 2008 Code Section 1189 Compliant State of California
County of .191VrI1 (
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rA,1e,z
On ivk j 3 AO/.before me,/9 .e:28/9/ E NOTh1 / AAA,! here irisert name and NE of the officer)
personally appeared f Z 1JJa9 /t-1. /l jiriA J.R.7
who proved to me on the basis of satisfactory evidence to be the persong whose name i / subscribed to the within instrument and acknowledged to me that he/s46/tljr executed the same in his t authorized capacity(i*, and that by his/Pr/th)`ir signature.on the instrument the person, or the entity upon behalf of which the person(f-acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature d w
sir A.OROPEZA
n(
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G Comm.#1918227 F—
I F, .e..-E10 Notary Pubic CoNfomio Cr)
I, Santa Clara County (f)
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v
Seal)

OPTIONAL INFORMATION
Law does not require the information below.This information could be of great value to any person(s)relying on this document and could prevent fraudulent and/or the reattachment of this document to an unauthorized document(s)

DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document:

Document Date: Number of Pages:

Signer(s) if Different Than Above:

Other Information:

CAPACITY(IES)CLAIMED BY SIGNER(S)
Signer's Name(s):

Individual
Corporate Officer
Title(s))
Partner
Attorney-in-Fact
Trustee
Guardian/Conservator
Other:

SIGNER IS REPRESENTING:

Name of Person(s)or Entity(ies):

C 2008 Notary Public Seminars www.notarypublicseminars.com B.3.c
Packet Pg. 92Page 173 of 1379

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of Califor a
I, www.NationalNotary.org
Item#5907 Reorder.Call Toll-Free 1-800- 876-6827
B.3.c
Packet Pg. 93Page 174 of 1379

EL-
RESOLUTION NO. 2012-102

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO THE LEASE AGREEMENT

WITH GAVILAN COLLEGE, A COMMUNITY COLLEGE DISTRICT,

1.The Mayor is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA.

2. The City Council approves Amendment No. 1 to the lease agreement dated May 1, 2012.

3. The Mayor is hereby authorized and directed to execute Amendment No. 1 to the Lease Agreement with Gavilan Community College.

4. This Resolution shall take immediate effect upon its adoption.

PASSED AND ADOPTED this 18th day of June 2012, by the following votes:

AYES: Council Members Emerson, Valdivia, Scattini, Gomez, and Mayor Friend.

NOES: None.

ABSENT: None.

Raymo d Friend, ayor
ATTEST: APPROVED AS TO FORM:
m1
G ri Johnson, ity Clerk tepha • Atigh, City Attor e

DUPLICATE OF ORIGINAL

ON FILE N THE

OFFICE OF THE CITY CLERK

CITY OF HOLLISTER
B.3.c
Packet Pg. 94Page 175 of 1379

RESOLUTION NO. 2012-102

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO THE LEASE AGREEMENT

WITH GAVILAN COLLEGE, A COMMUNITY COLLEGE DISTRICT,

1.The Mayor is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA.

2. The City Council approves Amendment No. 1 to the lease agreement dated May 1, 2012.

3. The Mayor is hereby authorized and directed to execute Amendment No. 1 to the Lease Agreement with Gavilan Community College.

4. This Resolution shall take immediate effect upon its adoption.

PASSED AND ADOPTED this 18th day of June 2012, by the following votes:

AYES: Council Members Emerson, Valdivia, Scattini, Gomez, and Mayor Friend.

NOES: None.

ABSENT: None.

C?..

Raymo d Friend, ayor
ATTEST: APPROVED AS TO FORM:

6.4216L'i 4/ 4111f
G ri .Johnson, .ity Clerk tepha ' Atigh, City Attor e

DUPLICATE OF ORIGINAL

ON FILE IN THE

OFFICE OF THE CITY CLERK

CITY OF HOLLISTER
B.3.c
Packet Pg. 95Page 176 of 1379

STAFF REPORT
OLLISTE" CITY COUNCIL AGENDA
DATE: June 8, 2012 AGENDA ITEM: Resolution F 2. "4i-20 STUDY SESSION DATE: N/A MEETING DATE: June 18, 2012
TITLE OF ITEM: A Resolution authorizing and directing the Mayor to execute Amendment No. 1 to the lease agreement with Gavilan College, a Community College District for the Briggs Building.

BRIEF DESCRIPTION: This resolution will approve Amendment No. 1 to the lease agreement with Gavilan College for the Briggs Building authorizing a five year extension with other amendments to the agreement.

STAFF RECOMMENDATION: City Council receive oral report and adopt Resolution No. 2012- tot authorizing and directing the Mayor to execute Amendment No. 1 to the lease agreement with Gavilan Community College for the Briggs Building.

1.30 per square foot. The former Redevelopment Agency of the City of Hollister provided assistance with $24,000 in contracting services for tenant improvements at the facility in 1996 while the college funded material costs of$4,800. Gavilan College has requested an extension to the lease agreement. Staff has negotiated with the community college for an amendment to extend the agreement with the following additional changes: 1) The rent will be graduated with a rate of $1.20 per square foot for the first three years, $1.25 per square foot the fourth year and $1.30 per square foot the fifth year; 2) The tenant will pay for janitorial services and supplies for the lease area but will be credited for the cost as reflected in Exhibit B of the amendment; 3) The lease area will be expanded to include Room 6, the Arnold Carrillo Room; and 4) Option for early termination at the start of the third year of the lease with a six month notice requirement.

ATTACHMENTS: Resolution
FINANCIAL IMPACT: None
DEPARTMENT: Development Services Department
CONTACT PERSON: Mary M. Paxton
DEPARTMENT HEAD: Bill Avera, Development Services Director PHONE NUMBER: 831)636-4316

THIS REPORT WAS REVIEWED BY THE EXECUTIV DI CTOR AND CONCURS

WITH THE STAFF RECOMMENDATION
Clint Quilter
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r
LEASE

BRIGGS BUILDING

1. PARTIES.

LL
This Lease, dated as of this O 7 day of June, 1996, is made and between CITY OF ROLLISTER, a municipal corporation, (the "Landlord") and GAVILAN COLLEGE,a community college district(the"Tenant").

2. PREMISES.

Said Premises are located in the City of Hollister, County of San Benito, State of California.

3. USE.

Tenant shall use the Premises for a SATELLITE CAMPUS and shall not use or permit the Premises to be used for any other purpose without the prior written consent of Landlord.

4. RENT.

4.1 Tenant agrees to pay to Landlord as Rent, without notice or demand, the monthly sum set forth in the Rent Schedule attached hereto as EXHIBIT"B" in advance, on or before the first day of each and every successive calendar month during the term hereof, except the first month's Rent shall be paid upon the execution hereof.

The rental shall commence thirty(30) days after substantial completion of Tenant's work as set forth in Exhibit"B" attached hereto and incorporated herein by B.3.c
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reference, or when the Tenant opens for business, whichever is sooner. Tenant agrees that it will, at its sole cost and expense as soon as is reasonably possible after the execution of this Lease, commence and pursue to completion the improvements to be erected by Tenant to the extent shown on the attached Exhibit Rent for any period which is for less than one (1) month shall be a prorated portion of the monthly installment herein based upon a thirty(30) day month. Said Rent shall be paid to Landlord, without deduction or offset, lawful money of the United States of America and at such place as Landlord may from time to time designate in writing.

5. TERM.

The lease term shall be 15 years commencing on the date Tenant's work as set forth in Exhibit "B" is substantially completed and terminating 15 years from that date. The parties acknowledge that certain obligations under various Sections hereof may commence prior to the lease term, i.e., construction, holdharmless, liability insurance, etc.; and the parties agree to be bound by these articles prior to commencement of the Lease term.

Tenant is given the option to extend the term of this Lease for one (1) five (5) year period ("extended term") following expiration of the initial term, by giving written notice to exercise of option ("option notice") to Landlord at least six (6) months, but not more than one (1)year before the expiration of the term. If Tenant is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the initial term.

The parties shall have thirty (30) days after the Landlord receives the option notice to negotiate the applicable Rent during the extended term. If the parties agree on the Rent for the extended term during that period, they shall immediately execute an amendment to the Lease stating the new Rent. If the parties are unable to agree on the Rent for the extended term within that thirty(30) day period, the option notice shall be of no effect and this Lease shall expire at the end of the term.

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6. USES PROHIBIT*. 4111
Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which is not within the permitted uses of the Premises or which will in any way increase the existing rate of or affect any fire or other insurance upon the Building or any of its contents, or cause a cancellation of any insurance policy covering said Building or any part thereof or any of its contents. Tenant shall not do or permit anything to be done in or above the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure or annoy them or use or allow the Premises to:be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or allow to be committed any waste in or upon the Premises. Tenant agrees not to sell or permit to be kept, used, or sold in or about the Premises, hazardous substances or hazardous waste as defined by state or federal law. For purposes of this Section 8, hazardous substances shall not include incidental cleaning supplies, provided that all such materials and equipment are used in strict compliance with all applicable laws and regulations.

7. COMPLIANCE WITH LAW.

8. ALTERATIONS AND ADDITIONS.

Tenant shall not make or allow to be made any alterations, additions or improvements to or of the Premises or any part thereof without first obtaining the written consent of Landlord and any alterations, additions or improvements to or of said Premises, including, but not limited to, wall covering, paneling and built-in cabinet work, but excepting movable furniture and trade fixtures, shall at once become a part of the realty and belong to the Landlord and shall be surrendered with the Premises. In the event Landlord consents to the making of any alterations, additions or improvements to the Premises by Tenant, the same shall be made by Tenant at Tenant's sole cost and expense, except as otherwise provided on Exhibit"C". Upon the expiration or sooner B.3.c
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x termination of the ta hereof, Tenant shall, upon written dird by Landlord, given at least thirty(30) dprior to the end of the term, at Tenant sole cost and expense, forthwith and with all due diligence, remove any alterations, additions, or improvements made by Tenant, designated by Landlord to be removed, and Tenant shall, forthwith and will all due diligence, at its sole cost and expense, repair any damage to the Premises caused by such removal.

9.REPAIRS.

Notwithstanding the provisions of Section 11.1, Landlord shall repair and maintain the structural portions of the Building, including the exterior walls and root unless such maintenance and repairs are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees, invitees, or any damage caused by breaking and entering, in which case Tenant shall pay to Landlord the actual cost of such maintenance and repairs. Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant.

10. LIENS. •
Tenant shall keep the Premises and the property in which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations B.3.c
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incurred by or on beFialf of Tenant. Landlord may require, att andlord's sole option, that Tenant shall provide to Landlord, at Tenant's sole cost and expense, a lien and completion bond in an amount equal to one and one-half(1 '/z)times the estimated cost of any improvements, additions, or alterations in the Premises which the Tenant desires to make, to insure Landlord against any liability for mechanics' and materialmen's liens and to insure completion of the work

11.ASSIGNMENT AND SUBLETTING.

Tenant shall not either voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the said Premises or any part thereof or any right or privilege appurtenant thereto, or allow any other person(the employees, agents, servants and invitees of Tenant excepted)to occupy or use the said Premises, or any portion thereof,without first obtaining the written consent of Landlord, which consent shall not be unreasonably withheld. A consent to one assignment, subletting, occupation or use by one person in no way confers or implies consent to an assignment, subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any such assignment or subletting without such consent shall be void, and shall, at the option of the Landlord, constitute a default under the terms of this Lease. (Note: In the instance of a Sublessee is a private for profit business, possessory interest tax may be applicable.)

12. HOLD HARMLESS.

Tenant shall indemnify and hold harmless Landlord against and from any and all claims arising from Tenant's use of the Premises or from the conduct of Tenant's business or from any activity, work, or other things done, permitted or suffered by the Tenant in or about the Premises, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of the Tenant, or any officer, agent; employee, guest, or invitee of Tenant, and from all costs, attorney's fees, and liabilities incurred in, or about the defense of any such claim or any action or proceeding brought thereon and in case any action or proceeding be brought against Landlord by reason of such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises, from any cause other than Landlord's negligence; and Tenant hereby waives all claims in respect thereof against Landlord.

Tenant shall give prompt notice to Landlord in case of casualty or accidents in the Premises.

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40 Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Building or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other place resulting from dampness or any other cause whatsoever, unless caused by or due to the willful and/or negligence of Landlord, its agents, servants or employees.

13. SUBROGATION.

Each party shall obtain any special endorsements, if required by their insurer to evidence compliance with the aforementioned waiver.

14. LIABILITY INSURANCE.

Tenant shall, at Tenant's expense, obtain and keep in force during the term of the Lease a policy of commercial general liability insurance(sometimes known as comprehensive public liability insurance) insuring Landlord and Tenant(and, if requested by Landlord, Landlord's lender and property manager) against any liability for bodily injury, property damage(including loss of use of property) and personal injury arising out of the ownership, use occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be in the amount of not less than 2,000,000.00 per occurrence. The limit of any such insurance shall not, however, limit the liability of Tenant hereunder. Tenant may provide this insurance under a blanket policy, provided that said insurance shall have a Landlord's protective liability endorsement attached thereto. If Tenant shall fail to procure and maintain said insurance, Landlord may, but shall not be required to, procure and maintain same, but at the expense of Tenant. Insurance required hereunder shall be in companies rated A:XII or better as set forth in the most current"Best's Rating Guide." Tenant shall deliver to Landlord, prior to right of entry, copies of policies of liability insurance required herein or certificates evidencing and amounts of such insurance with loss payable clauses satisfactory to Landlord. All policies and certificates of policies shall provide that no cancellation, reduction or modification of coverage will occur without thirty(30) days prior written notice to Landlord. All such policies shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry.

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15. UTILITIES.

16. PERSONAL PROPERTY TAXES.

17. RULES AND REGULATIONS.

18. ENTRY BY LANDLORD.

19. TENANT'S DEFAULT.

The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant
a) The vacating or abandonment of the Premises by Tenant. b) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of three(3) days after written notice thereof by Landlord to Tenant.
c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than described in(b), above, where such failure shall continue for a period of thirty(30) days after written notice thereof by Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than thirty(30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty(30) day period and thereafter diligently prosecutes such cure to completion.
d) The making by Tenant of any general assignment or general arrangement for the benefit of creditors; dr the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy(unless, in the case of a petition filed against Tenant, the same is dismissed within sixty(60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where such seizure is not discharged within thirty(30) days.

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20. REMEDIES IN DEFAULT.

In the event of any such default or breach by Tenant, Landlord may at any time thereafter, in its sole discretion, with or without notice or demand and without limiting Landlord in the exercise of a right or remedy which Landlord may have by reason or such default or breach:
a) Terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including, but not limited to, the cost of recovering possession of the Premises; expenses of reletting, including necessary renovation and alteration of the Premises; reasonable attorney's fees; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid Rent and other charges and Adjustments called for the balance of the term after the time of such award exceeds the amount of such loss for the same period that Tenant proves could be reasonably avoided: and that portion of any leasing commission paid by Landlord and applicable to the unexpired term of this Lease. Unpaid installments of Rent or other sums shall bear interest from the date due at the maximum legal rate; or
b) Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the rent and any other charges and Adjustments as may become due hereunder; or
c) Exercise any other remedy available to Landlord in law or equity.

21. DEFAULT BY LANDLORD.

Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty(30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligations; provided, however, that if the nature of Landlord's obligation is such that more than thirty(30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such thirty(30) day period and thereafter diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as a result of Landlord's default and Tenant's remedies shall be limited to damages and/or an injunction.

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22. RECONSTRUCTION.

In the event the Premises are damaged by fire or other perils covered by extended coverage insurance,Landlord agrees to forthwith repair same, and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate reduction of the Minimum Rent from the date of damage and while such repairs shall reasonably interfere with the business carried on by the Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of rent.

In the event the Premises are damaged to any extent as a result of any cause other than the perils covered by fire and extended coverage insurance, Landlord shall have the option: (1)to repair, reconstruct or restore the Premises, in which event this Lease shall continue in full force and effect but the Rent shall be proportionately reduced as hereinabove provided in this Section during the period of such repair, reconstruction or restoration; or(2)to give notice to Tenant at any time within sixty(60) days after such damage, terminating this Lease as of the date specified in such notice, which date shall be no more than thirty(30) days after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of Tenant in the Premises shall terminate on the date so specified in such notice and the Rent, reduced by a proportionate reduction, based upon the extent, if any, to which such damage interfered with the business carried on by Tenant in the Premises, shall be paid up to date of said such termination.

23. CONDEMNATION.

If all or any part of the Premises shall be taken or appropriated for public or quasi- public use by right of eminent domain with or without litigation or transferred by agreement in connection with such public or quasi-public use, either party hereto shall have the right at its option such taking to terminate this Lease as of the date possession is taken by the condemning authority, provided, however, that before Tenant may terminate this Lease by reason of taking or appropriation as provided hereinabove, such or appropriation shall be of such an extent and nature as to B.3.c
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substantially handicap, impede or impair Tenant's use of the Premises. No award for any partial or entire taking shall be apportioned, and Tenant hereby assigns to condemnation, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof, provided, however, that nothing contained herein shall be deemed to give Landlord any interest in or to require Tenant to assign to Landlord any award made to Tenant for the taking of personal property(excluding fixtures) belonging to Tenant and/or for the interruption of or damage to Tenant's business and/or for relocation of Tenant's business. In the event of a partial taking which does not result in a termination of this Lease, any charges under this Lease shall be abated in the proportion which the part of the Premises so made unusable bears to the rented area of the Premises immediately prior to the taking. No temporary taking of the Premises and/or of Tenant's rights therein or under this Lease shall terminate this Lease or give Tenant any right to any abatement of rent thereunder, any award made to Tenant by reason of any such temporary taking shall belong entirely to Tenant and Landlord shall not be entitled to share therein.

24. PARKING AND COMMON AREAS.

Tenant shall have access to the parking in the Building on a first-come, first-serve basis. Landlord reserves the right to change the entrances, exits,traffic lanes and the boundaries and locations of such parking area or areas. a) The Landlord shall keep said automobile parking and common areas in a neat, clean and orderly condition and shall repair any damage to the facilities thereof. b) Tenant, for the use and benefit of Tenant, its agents, employees, customers, licenses and sub-tenants, shall have the non-exclusive right in common with the public to use said common and parking areas during the entire term of this Lease, or any extension thereof, for ingress and egress, and automobile parking. c) The Tenant, in the use of said common and parking areas, agrees to comply with such reasonable rules and regulations for parking as the Landlord may adopt from time to time for the orderly and proper operation of said common and parking areas. Such rules may include but shall not be limited to the following: (1) The restricting of employee parking to a limited, designated area or areas; and(2) The regulation of the removal, storage and disposal of Tenant's refuse and other rubbish at the sole cost and expense of Tenant.

25. SIGNS.

The Tenant may affix and maintain upon the glass panes and supports of the show windows and within twelve(12)inches of any window and upon the exterior walls of the Premises only such signs, advertising placards, names, insignia, trademarks and descriptive material as shall have first received the written approval of the Landlord as to type, size, color, location, copy nature and display qualities. Anything to the contrary in this Lease notwithstanding, Tenant shall not affix any sign to the roof.

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date Tenant opens for business, in accordance with a design to be prepared by Tenant in accordance with Landlord's sign criteria and shall be subject to the approval of Landlord.

26. DISPLAYS.

The Tenant may not display or sell merchandise or allow grocery carts or other similar devices within the control of Tenant to be stored or to remain outside the defined. exterior walls and permanent doorway of the Premises. Tenant further agrees not to install any exterior lighting, amplifiers or similar devices or use in or about the Premises any advertising medium which may be heard or seen outside the Premises, such as flashing lights, searchlights, loudspeakers, phonographs or radio broadcasts.

27. AUCTIONS.

28. HOURS OF BUSINESS.

Tenant shall remain open during the usual hours established by Gavilan College.

29. HOLDING OVER.

If Tenant should hold possession of the Premises or any part thereof after the. expiration of the term of this Lease or any renewal or extension hereof then such holding over shall constitute a tenancy from month to month, upon the same terms, covenants and conditions•contained herein so far as are applicable.

30. GENERAL PROVISIONS
a) Exhibits. Exhibits, schedules, riders and addenda, if any, affixed to this Lease are a part hereof.
b) Waiver. The waiver by Landlord of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein obtained. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of the Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding default at the time of the acceptance of such Rent.

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c) Joint Obligation. If there be more than one Tenant the obligations hereunder imposed shall be joint and several.
d)Headings. The Section headings of this Lease are not a part of the Lease and shall have no effect upon the construction or interpretation of any part hereof. e) Time.. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.
f) Successor and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. g) Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum hereof may be recorded at the request of Landlord. h) Owlet Possession. Upon Tenant paying the Rent reserved hereunder and. observing and performing all of the covenants, conditions and provisions on Tenant's part to be observed and performed hereunder, Tenant shall have quiet possession of the Premises for the entire term hereof, subject to all the provisions of this Lease.
i) Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent or other sums due hereunder will, cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent of any sum due from Tenant shall not be received by Landlord or Landlord's designee within five(5) days after written notice that said amount is past due, then Tenant shall pay to Landlord or Landlord's a late charge equal to the maximum amount permitted by law(and in the absence of any governing law, ten percent of such overdue amount), plus any attorneys' fee incurred by Landlord by reason of Tenant's failure to pay rent and/or other charges when due hereunder.

The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the late payment by Tenant. Acceptance of such late charges by the Landlord does not permit Landlord from exercising any of the other rights and remedies granted hereunder. j) Prior Agreements. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose. No provisions of this Lease, and no prior agreements or understanding pertaining to any such matters shall be effective for any purpose.

No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. This Lease shall riot be effective or binding on any party until fully executed by both parties hereto.
k) Inability to Perform. This Lease and the obligations of the Tenant hereunder shall not be affected or impaired because the Landlord is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused B.3.c
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4111
by reason of strike, labor troubles, acts of God, or nay other cause beyond the reasonable control of the Landlord.
1) Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision hereof and such other provision shall remain in full force and effect m)Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity.
n) Choice of Law. This Lease shall be governed by the laws of the State of California.
o) Attorneys' Fees. In the event of any action or proceeding brought by either party against the other under this Lease the prevailing party shall be entitled to recover its expenses and costs, including its attorneys' fees and expert witness fees in such action or proceeding, including costs of appeal, if any, in such amount as the court may adjudge reasonable.
p) Sale of Premises by Landlord. In the event of any sale of the Premises by Landlord, Landlord shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring afterthe consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of the Landlord under this Lease.
q) Subordination,Attornment. Upon request of the Landlord,Tenant will in writing subordinate its rights hereunder to the lien of any mortgage or deed of trust, to any bank, insurance company, governmental agency or other lending institution, now or hereafter in force against the Premises, and to all advances made or hereafter to be made upon the security hereof.

In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by the Landlord covering the Premises, the Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Landlord under this Lease.

The provisions of this Article to the contrary notwithstanding, and so long as Tenant is not in default hereunder, this Lease shall remain in full force and effect for the full term hereof.
r.) Notices. All notices and demands which may or are to be required or permitted to be given by either party on the other hereunder shall be in writing. All notices and demands by the Landlord to the Tenant shall be sent by certified United States Mail, postage prepaid, addressed to the Tenant at the Premises, and to the address hereinbelow, or to such other place as Tenant may from time to time B.3.c
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To Landlord: City of Hollister
375 Fifth Street
Hollister, CA 95023
To Tenant: Gavilan College
5500 Santa Teresa Blvd.

Gilroy, CA 95020
s) Tenant's Statement(Estoppel Certificate). Tenant shall at any time and from time to time, upon not less than three(3) days prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing(a) certifying that this Lease is unmodified and in full force and effect(or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in full force and effect), and the date to which the Rent and other charges are paid in advance, if any, and (b)acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of the Landlord hereunder, or specifying such defaults if any are claimed, and C setting forth the date of commencement of rents and expiration of the term hereof. Any such statement may be relied upon by the prospective purchaser or encumbrancers of all or any portion of the real property of which the Premises are a part.
t) Authority of Tenant. If Tenant is a community college district, each individual executing this Lease on behalf of Tenant represents and warrants that he or she has full authority to do so and that this Lease binds the community college district.

31. NONDISCRIMINATION.

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32. COMPLIANCE.

The parties hereto agree to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement; including, but not limited to, the 1964 Civil Rights Act and all amendments thereto, the Foreign.Investment in Real Property Tax Act, the Comprehensive Environmental Response compensation and Liability Act, and the Americans with Disabilities Act. .

33. EXHIBITS.

Attached hereto and made part of this lease: Exhibit'A"(Site Plan), Exhibit"B" Tenant Work), and Exhibit"C"

CITY OF HOLLISTTER GAVILAN COLLEGE
375 FIFTH STREET 5055 SAN"IA TERESA BLVD.

HOLLIST. R, CA 95023 GILROY, CA 95020
By: zar""' `27174
Richa K.Boomer Dr.Glenn Mayle
Its: Maypr Its: President
Date: 67 2 0 9 6 Date: 6 11 2/9 G
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a ,
0 i
EXHIBIT "A"
Site Plan
A-1
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EXHIBIT"B"

RENT SCHEDULE
Year Lease Per Sq.Ft (8,500 SF) Minimum Monthly Rent
1 0.70 5950.00
2 0.80 6800.00
3 0.90 7650.00
4 1.00 8500.00
5- 7 1.10 9350.00
8-10 1.20 10200. 00
11-15 1.30 11050.00
B-1
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EXHIBIT"C"

DESCRIPTION OF TENANT'S WORK

1. Landlord agrees to fund up to $170,000 of tenant improvements to be agreed upon by the City and the District prior to commencement of work on the tenant improvements.

2. Landlord also agrees to amortized $42,500 within the minimum rent due in the lease to assist in tenant improvement costs.

3. If tenant improvement costs exceed$30.00 a square foot, the City agrees to incur that additional cost.

C-1
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e"\
RESOLUTION 96- 89

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HOLLISTER TO EXECUTE A LEASE WITH GAVILAN COLLEGE.

PASSED AND ADOPTED, this 20th day of May, 1996, by the following votes:

AYES: Councilmen Felice, Duran, Irish, Guzman, and Mayor Boomer.

NOES: None.

ABSTAINED: None.

ABSENT: None.

Richard K. Boomer, Mayor of the
City of Hollister
ATTES :
old A. Carillo, Jr. erk of the
ity of Hollister

PLICATE
OmIc;.‘ZiAt-

PU ON FILE IN THE
ICE Of ThE CT(„C-
irOff

CITY OF
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V.,•

MEMORANDUM
DATE: May 28, 1996
TO: Phil Molina;kFinanceDirector
Elaine Cass, City Attorney
FROM: William B. Avera, RDA
RE: GAVILAN COLLEGE LEASE
Mr. Johnson asked me to address the questions and concerns regarding the Gavilan Lease in your memo dated May 24, 1996.

1. The amortized $42,500 is already included in the minimum rent

2. Please note that paragraphs 6 (Security Deposit) and 7 (Additional Charges) have been removed from the lease.

If you should have any further questions or comments please feel free to call me at 636-4316.

CC: Barry Johnson; City Manager
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to completion the improvements to be erected by Tenant to the extent shown on the attached Exhibit"B".

Rent for any period which is for less than one (1) month shall be a prorated portion of the monthly installment herein based upon a thirty (30) day month. Said Rent shall be paid to Landlord, without deduction or offset, lawful money of the United States of America and at such place as Landlord may from time to time designate in writing.

5. TERM.

The lease term shall be 15 years commencing on the date Tenant's work as set forth in Exhibit"B" is substantially completed and terminating 15 years from that date.

Tenant is given the option to extend the term of this Lease for one (1) five (5) year period ("extended term") following expiration of the initial term, by giving written notice to exercise of option ("option notice") to Landlord at least six (6) months, but not more than one (1)year before the expiration of the term. If Tenant is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the initial term.

The parties shall have thirty (30) days after the Landlord receives the option notice to negotiate the applicable Rent during the extended term. If the parties agree on the Rent for the extended term during that period, they shall immediately execute an amendment to the Lease stating the new Rent. If the parties are unable to agree on the Rent for the extended term within that thirty(30) day period, the option notice shall be of no effect and this Lease shall expire at the end of the term.

6. SECURITY DEPOSIT.

N
applied Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the security deposit to its original amount and Tenant's failure to do so shall be a default under this Lease. Landlord shall not be required to keep this security deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within ten (10) days following expiration of the Lease term. In the event of termination of Landlord's interest in this Lease, Landlord shall transfer said deposit to Landlord's successor in interest.

7. ADDITIONAL CHARGES.

8. USES PROHIBITED.

CITY OF HOLLISTER CITY COUNCIL AGENDA

TRANSMITTAL FORM
DATE: May 15, 1996 AGENDA ITEM:

MEETING DATE: May 20, 1996
TITLE OF ITEM: BRIGGS BUILDING LEASE
DEADLINE FOR COUNCIL ACTION: MAY 20, 1996
DEPARTMENT: Redevelopment Agency
2A-)
CONTACT: WILLIAM AVERA, REDEVELOPMENT PROJECTS • •I NAT614 PHONE NO.: 408-636-4316
DEPARTMENT SUMMARY: A RESOLUTION AUTHORIZING THE CITY

MANAGER TO EXECUTE A LEASE WITH GAVILAN COLLEGE FOR AVAILABLE SPACE WITHIN THE BRIGGS PARKING STRUCTURE AT 365 FOURTH STREET, HOLLISTER.

FINANCIAL IMPACT: 0-
FUNDING SOURCE: REDEVELOPMENT AGENCY
BUDGET RECAP:

Total Estimated Cost New Revenue $71,400
Net City Cost Lost Revenue $
Amt. Budget FY 94/95 New
New Funding Rewired $ Change in City Policy?
PRIOR COUNCIL ACTIONS:

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ALTERNATIVES:

1. Approve

2. Deny
ENVIRONMENTAL REVIEW STATUS: None
COMMITTEE REVIEW AND ACTION: None.

ATTACHMENTS:

1. STAFF REPORT DATED APRIL 29, 1996

2. LEASE

3. RESOLUTION 96- , AUTHORIZING THE CITY MANAGER TO EXECUTE LEASE DOCUMENTS.

RECOMMENDED ACTION: APPROVAL
EXECUTIVE DIRECTOR RECOMMENDATION: Same as recommended action.

CONCURRENCES (if appropriate): N/A
BY: BY:

City Attorney Other ( ) City Manager
Dept. Head
Supervisor
AGENDA1GAVLEASE.DOC
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MEMORANDUM4.
01'ff"44%.

DATE: April 29, 1996
TO: Barry Johnson, City Manager/
FROM: William B. Avera, RDA
RE: BRIGGS BUILDING LEASE
BACKGROUND:

The City of Hollister owns a four story parking structure located at 365 Fourth St. The first floor of the structure contains 9,500 square feet of retail space with storage areas.

Completion of the building is scheduled to be around middle of May, and the City has been contacted by businesses showing an interest in leasing space in the structure.

DISCUSSION:

Staff is requesting that the City Council authorize the City Manager to enter into a Lease with Gavilan College and execute all related documents.

RECOMMENDATION:

Approve Resolution 96-authorizing the City Manager or His Designee to execute the lease documents with Gavilan College for space within the Briggs Parking Structure.

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DUPLICATE OF ORIGINAL

ON FILE IN THE

OFFICE OF THE CITY CLERK
RESOLUTION 99- 172

CITY OF HOLLISTER

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER

APPROVING A USE AGREEMENT WITH GAVILAN COLLEGE FOR THE
ARNOLD CARRILLO CONFERENCE ROOM.

PASSED AND ADOPTED, this 18th day of October, 1999, by the following vote:

AYES: Councilmembers Valdivia, Corrales, Duran, Felice and Mayor Boome:

NOES: None
ABSTAINED: None
ABSENT. No
1 Richard . oomer, Mayor
City of Hollister
F nk D. Felice, Cit .Clerk
City of Hollister
C.
f 1/(
APPROVED AS TO FORM:

Elaine Cass, City Attorney
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e"1

STAFF REPORT TRANSMITTAL FOR

DEPARTMENT: Community Development Department
CONTACT PERSON: Bill Avera PHONE: 636-4316
DEPARTMENT SUMMARY:

Gavilan College is interested in using the room next semester in the evenings for approximately three hours. The days would be limited to Mondays and Tuesdays only.

Their proposal is to lease the room at the same rate they pay the school districts which is

5.00 per hour. This would equate to $15.00 per evening, or $120.00 per month.

Staff recommends that the City Council authorize the City Manager to execute a Use Agreement with Gavilan College to utilize the Arnold Carrillo conference room.

FINANCIAL IMPACT: A revenue of$120.00 per month.

STAFF RECOMMENDATION:

CITY MANAGER RECOMMENDATION: Concurs
APPROVED AS TO FORM:
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1 AMENDMENT NO. 3 TO LEASE OF BRIGGS BUILDING BETWEEN

THE CITY OF HOLLISTER AND GAVILAN COLLEGE,A COMMUNITY

COLLEGE DISTRICT
This Amendment No. 3 to the Lease of Briggs Building dated June 20, 1996 (the "Lease")is entered into on [MONTH][DATE], 2023, between the City of Hollister, a municipal corporation, (the "Landlord"), and Gavilan Joint Community College District, a community college district (the "Tenant"), together herein referred to as "the Parties."

RECITALS
A.Whereas the Parties entered into the Lease of a portion of the Briggs Building located at 365 Fourth Street,Hollister,CA 95023 (the "Building") in June 1996 for a term of fifteen (15) years;and
B.Whereas the Parties, pursuant to Amendment No. 1, to Lease Between City of Hollister and Gavilan College dated June 21, 2012 ("Amendment No. 1"), agreed to extend the original term of the Lease from June 30, 2012 to June 20, 2017; and
C.Whereas the Parties, pursuant to Amendment No. 2,to Lease Between City of Hollister and Gavilan College dated June 20, 2017 ("Amendment No. 2"), agreed to extend the original term of the Lease from June 21, 2017 to June 20, 2022; and
D.Whereas, Landlord and Tenant now desire to amend and extend the current term of the Lease pursuant to the terms, covenants, agreements , and conditions set forth in this Amendment No.3.

Now, therefore, for good and valuable consideration, the Parties agree to amend the Lease and Amendment Nos. 1 and 2, as follows:

AMENDMENT NO.3

1.Extension of Current Lease Term
The term of the Lease is hereby amended to extend for two (2) additional years, commencing on June 20, 2022,and ending on June 21, 2024 (the "Extended Term"), provided, however, that Tenant, beginning on December 31, 2023, shall have the right to terminate the Lease early by providing Landlord with six (6) month's written notice.

2.Premises
a.Section 2 of Amendment 2 is hereby amended as follows: The phrase "8,500 square feet of floor area" is deleted in its entirety and the phrase "8,260 square feet of floor area" is inserted in its stead.
b.Section 2 of Amendment 2 is further amended as follows:Exhibit "A"to the original Lease is hereby deleted in its entirety and replaced in its stead by Exhibit A" attached hereto and incorporated herein by reference.Exhibit "A" attached hereto adds the nearly 16 foot by 19 foot storage room at the northwest portion of the building to part of the Premises.

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2 3.Rent
Notwithstanding provisions of the Lease and Amendment No.3 relating to Rent, during the Extended Term, Rent due to Landlord from Tenant shall be paid in strict accordance with the terms and conditions set forth in Exhibit "B" attached hereto and incorporated herein, as if fully set forth .

4.Utilities/Janitorial Services
Section 15 of the Lease and Amendment No.1 are hereby amended to add the following weekl y responsibilities to the Landlord cleaning services:the stairs, sweeping and removal of cobwebs at the front of the structure facing San Benit o Street and near the elevator entrances.

5.No Other Changes
Except as provided in this Amendment No. 3 ,the terms and conditions of the Lease and Amendment No.2 dated June 20,2022,shall remain unmodified and in full force and effect. In the event of a conflict between the terms of this Amendment No. 3 and the terms of the Lease and Amendment No.2, the terms of this Amendment No. 3 shall govern and control.

6.New Exhibit B to Lease
Exhibit B to the Lease,as previously amended, shall be deleted in its entirety and replaced in its stead with Exhibit B, which is attached hereto and incorporated herein by reference.

7.Effective Date of Amendment No.3
This Amendment No.3 is subject to approval or ratification by the Landlord's City Council and the Tenant's Board of Trustees.This Amendment No.3 shall only be effective and enforceable as of the date that the City Council and Board of Trustees have taken action to approve/ratify this Amendment No.3.

8.Counterparts
This Amendment No.3 may be executed in any number of counterparts, each of which shall be deemed an original, and when taken together, shall constitute one and the same document.

3 EXHIBIT "A"-PREMISIS
El
u ,,........,,-.,..,.,._A,>,AO
OHJC.l
D°"-'ft.

BRIGGS BUILDING AND PARKING GARAGE 1ST.TO 4TH FLOOR
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4 EXHIBIT "B" RENT

SCHEDULE
AMENDMENT NO.3 TO

LEASE BETWEEN CITY OF HOLLISTER AND GAVILAN

JOINT COMMUNITY COLLEGE DISTRICT
BRIGGS BUILDING,365 FOURTH STREET,HOLLISTER,CALIFORNIA 95023 Year Lease Rate per
Square Foot
Monthly Rate Credit for
Janitorial
Adjusted
Monthly
8,260 Sq.Ft.)Services and
Supplies
Minimum
1 $1.50 (FY 22/23)$ 12,750 ($1,800.00)$ 10,950
2 $1.65 (FY 23/24)$ 13,629 ($1,800.00)$ 11,829
3 $1.70 (FY 23/24)$ 14,042 ($1,800.00)$12,242
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5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER AUTHORIZING THE EXECUTION OF AMENDMENT NO. 3 TO THE LEASE

AGREEMENT WITH GAVILAN COLLEGE,A COMMUNITY COLLEGE DISTRICT

FOR THE BRIGGS BUILDING
WHEREAS, the City Council approved Resolution No. 96 -89 which authorized a lease agreement with Gavilan College, A Community College District (the "District") for the Briggs Building at 365 Fourth Street for a satellite campus to educate residents in the City of Hollister; and
WHEREAS,the term of the lease of the facility was for 15 years with an option for a five-year extension; and
WHEREAS, the City Council approved Resolution No. 2012-1-2 which authorized Amendment No. 1 to the lease agreement with the District; and WHEREAS, the term of the Amendment No. 1 was five years; and WHEREAS,the City Council approved Resolution No. 2017-113 which authorized Amendment No. 2 to the lease agreement with the District; and WHEREAS,the term of the Amendment No.2 lease agreement was five years;and
WHEREAS,the District desires to extend the lease agreement for two years with an option for early termination beginning the second year of the lease and other amendments; and
WHEREAS, the City and the District desire to add a storage space to the lease agreement; and
WHEREAS, the City and the District desire to add additional City janitorial responsibilities agreement.

NOW,THEREFORE,BE IT RESOLVED as follows:

1.The Mayor is hereby authorized and directed to file a Notice of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA.

2.The City Council approves Amendment No. 3 to the lease agreement attached as Exhibit 1 to this resolution.

3.The Mayor is hereby authorized and directed to execute Amendment No.
3 to the Lease Agreement with Gavilan College, a Community College District included as Exhibit 1.

4.This Resolution shall take immediate effect upon its adoption.

PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular B.3.d
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6 meeting held this [Date]th/nd/rd day of [Month], 2023, by the following vote:

AYES:

NOES:

ABSENT:

Mia Casey,Mayor
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1 AMENDMENT NO. 4 TO LEASE OF BRIGGS BUILDING BETWEEN THE

CITY OF HOLLISTER AND GAVILAN COLLEGE, A COMMUNITY

COLLEGE DISTRICT

This Amendment No. 4 to the Lease of Briggs Building dated June 20, 1996 (the "Lease") is entered into on June 21, 2024, between the City of Hollister, a municipal corporation, (the "Landlord"), and Gavilan Joint Community College District, a community college district (the "Tenant"), together herein referred to as "the Parties."

RECITALS

A. Whereas the Parties entered into the Lease of a portion of the Briggs Building located at 365 Fourth Street, Hollister, CA 95023 (the "Building") in June 1996 for a term of fifteen (15) years; and
B. Whereas the Parties, pursuant to Amendment No. 1, to Lease Between City of Hollister and Gavilan College dated June 21, 2012 ("Amendment No. 1"), agreed to extend the original term of the Lease from June 30, 2012, to June 20, 2017; and
C. Whereas the Parties, pursuant to Amendment No. 2, to Lease Between City of Hollister and Gavilan College dated June 20, 2017 ("Amendment No. 2"), agreed to extend the original term of the Lease from June 21, 2017, to June 20, 2022; and
D. Whereas the Parties, pursuant to Amendment No. 3, to Lease Between City of Hollister and Gavilan College dated June 21, 2022 ("Amendment No. 3"), agreed to extend the original term of the Lease from June 20, 2022, to June 21, 2024; and
E. Whereas, Landlord and Tenant now desire to amend and extend the current term of the Lease pursuant to the terms, covenants, agreements, and conditions set forth in this Amendment No. 4.

Now, therefore, for good and valuable consideration, the Parties agree to amend the Lease and Amendment Nos. 1, 2, and 3 as follows:

AMENDMENT NO. 4

1. Extension of Current Lease Term
The term of the Lease is hereby amended to extend for six (6) additional months, ending on December 31, 2024, with an option to continue a month-to-month Lease for an additional six (6) months ending June 30, 2025 (“Extended Term”). The City Manager shall have the authority to exercise the option to continue a month-to-month lease from December 31, 2024, to June 30, 2025.

2. Rent
Notwithstanding provisions of the Lease and Amendment No. 4 relating to Rent, during the Extended Term, Rent due to Landlord from Tenant shall be paid in strict accordance with the terms and conditions set forth in Exhibit "A" attached hereto and incorporated herein, as if fully set forth.

3. No Other Changes
DocuSign Envelope ID: FD4D8D9C-D65B-449D-90D8-CA24BE67B50F

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Hollister City CouncilJune 18, 2024

Hollister City Council
June 18, 2024