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AGENDA
REGULAR MEETING OF THE LAKEPORT CITY COUNCIL
(ALSO MEETS AS THE CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT, THE LAKEPORT INDUSTRIAL
DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING AGENCY OF LAKEPORT, THE LAKEPORT GROUNDWATER SUSTAINABILITY AGENCY and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT
REDEVELOPMENT AGENCY)
Tuesday, December 02, 2025 6:00 p.m.
City Council Chambers, 225 Park Street, Lakeport, California 95453 See Teleconferencing Instructions Below
City Council Agenda of December 02, 2025 Page 2
AGENDA
REGULAR MEETING OF THE LAKEPORT CITY COUNCIL
(ALSO MEETS AS THE CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT, THE
LAKEPORT INDUSTRIAL DEVELOPMENT AUTHORITY, THE MUNICIPAL FINANCING
AGENCY OF LAKEPORT, LAKEPORT GROUNDWATER SUSTAINABILITY AUTHORITY and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT REDEVELOPMENT AGENCY)*
Tuesday, December 02, 2025, 6:00 p.m.
City Council Chambers, 225 Park Street, Lakeport, California 95453 *All references to “City Council” include those other agencies which are listed above The City Council may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the agenda items are described. The council may establish and make appointments to a Council committee (made up of two Councilmembers) with respect to any item appearing on this agenda.
6:00 p.m.
Move to accept agenda as posted or move to add or delete items.
To add item, Council is required to make a majority decision that an urgency exists (as defined in the Brown Act) and a 2/3rds determination that the need to take action arose subsequent to the agenda being posted.
The following Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without any discussion. Any Council Member may request that any item be removed from the Consent Agenda for discussion under the regular Agenda. Removed items will be considered following the Consent Calendar portion of this agenda.
Waive reading except by title, of any ordinances under consideration at this meeting for either introduction or passage per Government Code Section 36934.
Approve the minutes of the City Council Regular Meeting of November 18, 2025.
Direct the City Clerk to prepare the 2026 Maddy Act Appointments List and post at City Hall and Lakeport Public Library.
Receive and file the 2024-2025 Annual Measure M report.
I. CALL TO ORDER & ROLL CALL:
II. PLEDGE OF ALLEGIANCE:
III. ACCEPTANCE OF AGENDA/ URGENCY
ITEMS:
IV. CONSENT AGENDA:
A. Ordinances:
B. Minutes:
C. Maddy Act List:
D. Lakeport Fire Protection District
Measure M Report:
E. Notice of Completion: Lakeshore
& Martin Repaving Project:
Adopt the resolution accepting construction of the Martin & Lakeshore Repaving Project, by Ghilotti Construction Company and authorize the filing of the Notice of Completion.
V. PUBLIC PRESENTATIONS/REQUESTS:
A. Public Input: Any person may speak for 3 minutes about any subject within the authority of the City Council, provided that the subject is not already on tonight’s agenda. Per Government Code §54954.3(a), the City Council cannot take action or express a consensus of approval or disapproval on any public comments regarding matters which do not appear on the printed agenda.
B. Presentation: Introduction of new Police Officer Kimberly Searcy.
VI PUBLIC HEARINGS:
A. 2025 Building Code Update Introduce the draft Ordinance amending Section 15.04.010 of the Lakeport Municipal Code and set a second reading for December 16, 2025.
City Council Agenda of December 02, 2025 Page 3
VII. COUNCIL BUSINESS:
A. Utilities Director
1. Water & Sewer Master Plan
Updates:
Receive updates on the 2025 Water & Sewer Master Plan Updates.
B. Administrative Services Director
1. Lakeport Economic
Development Advisory
Committee (LEDAC)
Appointments and
Reorganization:
1. Appoint three individuals to fill three at-large vacancies on the Lakeport Economic Development Advisory Committee (LEDAC), effective January 1, 2026, and expiring December 31, 2027.
2. Adopt a resolution reorganizing the Lakeport Economic Development Advisory Committee (LEDAC) to add three designated voting member seats.
C. City Manager
1. Westside Park CLMSD
License Agreement:
Approve the License Agreement with Westside Community Park for the construction, operation, and maintenance of the Westside Community Trail Park on designated portions of the City’s property, and to authorize the City Manager to execute the agreement.
2. CLERC Lease: Approve the lease agreement with the Clear Lake Environmental Research Center (CLERC), extending their use of the Carnegie Library for operation of the water and wastewater testing laboratory and authorizing development and public operation of the Environmental Education Center on the second floor, and grant the City Manager authority to enter into and execute the agreement.
3. Arts Council Lease: Approve the lease agreement with the Lake County Arts Council for the operation of the Lakeport Gallery and coordination of scheduling and event management at the Silveira Community Center, and to authorize the City Manager to enter into and execute the agreement.
VIII. CITY COUNCIL COMMUNICATIONS:
A. Travel, Calendar, and Miscellaneous
Reports, if any:
ADJOURNMENT:
Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 225 Park Street, Lakeport, California, during normal business hours. Such documents are also available on the City of Lakeport’s website, www.cityoflakeport.com, subject to staff’s ability to post the documents before the meeting.
The City of Lakeport, in complying with the Americans with Disabilities Act (ADA), requests individuals who require special accommodations to access, attend and/or participate in the City meeting due to disability, to please contact the City Clerk’s Office, (707) 263-5615, 72 hours prior to the scheduled meeting to ensure reasonable accommodations are provided.
_______________________________________
Kelly Buendia, City Clerk
City Council Agenda of November 18, 2025 Page 2
MINUTES
REGULAR MEETING OF THE LAKEPORT CITY COUNCIL
(ALSO MEETS AS THE CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT, THE
LAKEPORT INDUSTRIAL DEVELOPMENT AUTHORITY, THE MUNICIPAL
FINANCING AGENCY OF LAKEPORT, LAKEPORT GROUNDWATER
SUSTAINABILITY AUTHORITY and THE SUCCESSOR AGENCY TO THE FORMER LAKEPORT REDEVELOPMENT AGENCY)*
Tuesday, November 18, 2025, 6:00 p.m.
City Council Chambers, 225 Park Street, Lakeport, California 95453 *All references to “City Council” include those other agencies which are listed above The City Council may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the agenda items are described. The council may establish and make appointments to a Council committee (made up of two Councilmembers) with respect to any item appearing on this agenda.
I. CALL TO ORDER & ROLL CALL: Mayor Costa called the meeting to order at 6:00 p.m. with Council Members Disney, Mattina, Parlet and Price present.
II. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by the Coaches and Team members of the Westshore Football Leagues’ Junior Cardinals.
III. ACCEPTANCE OF AGENDA/ URGENCY
ITEMS:
A motion was made by Council Member Mattina, seconded by Council Member Disney, and unanimously carried by voice vote 5-0-0-0 to accept the agenda as posted.
IV. CONSENT AGENDA: The following Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without any discussion. Any Council Member may request that any item be removed from the Consent Agenda for discussion under the regular Agenda. Removed items will be considered following the Consent Calendar portion of this agenda.
A. Ordinances: Waive reading except by title, of any ordinances under consideration at this meeting for either introduction or passage per Government Code Section 36934.
B. Minutes: Approve the Minutes of the City Council Regular Meeting of November 4, 2025.
C. Measure Z Advisory Committee
Minutes
Receive and file the draft minutes of the MZAC regular meeting of October 29, 2025.
D. Second Read/Adopt Ordinance
Amendment LMC3.05.011 Adopt the following second reading, Ordinance amending Section 3.05.011(E) of the Lakeport Municipal Code to clarify that the dollar thresholds established in subsections A, B, and C automatically adjust as necessary to comply with any adjustment mandated by the State Controller pursuant to Public Contract Code Section 22020.
E. SSMP Audit – 2025 Sewer System Receive and file the 2025 Sewer System Management Plan (SSMP) Audit Executive Summary for the reporting period May 2, 2022 – May 2, 2025.
Vote on Consent Assistant City Attorney Anderson noted that for item E on the Consent Calendar the Council would be sitting in their role as the CLMSD Board.
A motion was made by Council Member Disney, seconded by Council Member Parlet, and unanimously carried by voice vote 5-0-0-0 to approve the consent calendar as presented items A-E.
V.
PUBLIC PRESENTATIONS/REQUESTS:
A. Public Input: Marie Schrader with Discover Lakeport gave statistics on social media viewership and gave an update on October events, as well as upcoming holiday events.
City Council Agenda of November 18, 2025 Page 3
VI PUBLIC HEARINGS:
VII. COUNCIL BUSINESS:
A. Finance Director
1. First Quarter Financials Finance Director Dizon provided the First Quarter 25/26 Financial Update.
B. Utilities Director
1. Vehicle Procurement The staff report was presented by Utilities Director Harris A motion was made by Council Member Disney, seconded by Council Member Parlet, and unanimously carried by voice vote 5-0-0-0 to authorize the City Manager to sign the associated purchase agreement for the procurement of a 2026 Chevy Colorado 2WD Crew Cab Truck in the amount of $35,507.69.
C. City Manager
1. 910 Bevins Lease Agreement –
Amendment #3
The staff report was presented by City Manager Ingram
A motion was made by Council Member Disney, seconded by Council Member Mattina, and unanimously carried by voice vote 5-0-0-0 to approve Amendment No. 3 to the Commercial Lease Agreement between the City of Lakeport and Jeff Leard for property located at 910 Bevins Street in Lakeport and authorize the City Manager to execute the amendment on behalf of the City.
VIII. CITY COUNCIL COMMUNICATIONS:
A. Travel, Calendar, and Miscellaneous
Reports, if any:
Community Development Director Hejnowicz reminded everyone that there will be a CDBG meeting tomorrow and Thursday regarding funding and accepting community input.
Police Chief Stoebe offered no report.
Finance Director Dizon offered no report.
Utilities Director Harris offered no report.
Administrative Services Director Buendia offered no report.
Public Works Director Ladd reported that the street sweeper is currently out of service and explained that the replacement part has been expedited. The City’s mechanic is working to get the equipment operational despite the equipment operating past expected lifespan.
Victor Fernandez offered no report.
Assistant City Attorney Anderson offered no report.
City Manager Ingram thanked Victor for taking on the AV role for the evening; stated that there were no major items to report and announced upcoming events, including wishing everyone a Happy Thanksgiving. He further reported that the Summit Redwood Coast Economic Development Summit, which the city hosted. Lakeport had an opportunity to showcase its parks and downtown.
City Council Agenda of November 18, 2025 Page 4
Council Member Mattina shared the exciting news that the tree is now up in Xabatin Park and that the team is working hard to decorate the parks. She further highlighted upcoming festivities including the Dickens Festival, the lighted boat parade, Santa lighting the tree, and the Kiwanis selling drinks and food.
Council Member Price mentioned that there will be a snow slide for kids and a pet parade, along with various vendors during the Dickens Festival. She also stated that the Soper Reese Pomo Culture event was beautiful, and that upcoming free movies will be held in December, with the Lake County Symphony performing on the 23rd.
Council Member Parlet offered no comments.
Mayor Pro Tem Disney stated that he will serve as the MC for the Xabatin Park event; reported that the Konocti Climb was successful; shared that he attended a Clean Water Program and Stormwater meeting; talked with grade schoolers about the construction process. The kids will build a model of his new facility with Legos.
Mayor Costa reported that planning for next year’s June Splash-in at the Skylark is underway. Mayor Costa mentioned that a fostered German Shepherd is ready for adoption.
ADJOURNMENT: Mayor Costa adjourned the meeting at 6.53 p.m. _______________________________________
Kim Costa, Mayor
Attest:
_________________________________
Kelly Buendia, City Clerk
Meeting Date: 12/02/2025 Page 1 Agenda Item IV.C.
CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
Lakeport Industrial Development Authority
Municipal Financing Agency of Lakeport
STAFF REPORT
RE: Annual Maddy Act Appointment List MEETING DATE: 12/02/2025 SUBMITTED BY: Kelly Buendia, Administrative Services Director/ City Clerk PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
The City Council is being asked to direct the City Clerk to prepare the annual Maddy Act Appointment List.
BACKGROUND/DISCUSSION:
The Maddy Act (Government Code Sections 54970 through 54974) states that a vast and largely untapped reservoir of talent exists among the citizenry of the State of California, and that rich and varied segments of this great human resource are, all too frequently, not aware of the many opportunities which exist to participate in and serve on local regulatory and advisory boards, commissions, and committees.
The Act requires that on or before December 31 of each year, each legislative body prepare an appointments list of all regular ongoing boards, commissions, and committees which are appointed by the legislative body of the local agency.
Pursuant to the Maddy Act, the list must contain the list of all appointive terms that expire during the next calendar year (shown in red), with the name of the incumbent appointee, the date of appointment, the date the term expires, and the necessary qualifications for the position. Once the list is prepared, the City Clerk will make it available to the public in accordance with the Act and can continue recruiting any vacant positions.
OPTIONS:
The Appointments list is statutorily mandated.
FISCAL IMPACT:
None $ Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase: $ Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:
Comments:
Meeting Date: 12/02/2025 Page 2 Agenda Item IV.C.
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
SUGGESTED MOTIONS:
Move to direct the City Clerk to prepare the 2026 Maddy Act Appointments List and post at City Hall and the Lakeport Public Library.
Attachments: 1. DRAFT 2026 Maddy Act Appointment List
CITY OF LAKE PORT 20 26 MADDY ACT LOCAL AP POINTM ENTS LI ST NOTICE: In compliance with the requirements of the Maddy Act (Government Code §54970, et seq.), the following appointments list was posted on or before December 31, 2025, at the City Hall, City of Lakeport, 225 Park Street, Lakeport, CA 95453, and at the Lakeport Library, 1425 North High Street, Lakeport, CA 95453. The City Council of the City of Lakeport will make appointmentsto the positions below which will expire or will otherwise become vacant in 2024. Unless noted otherwise, all appointees must be residents of the City of Lakeport.
PLANNING CO MMISSIO N
The Planning Commission meets the second Wednesday of each month at 5:00 p.m. in the Council Chambers of City Hall. The city council may appoint one member who lives outside of the city limits but within the Lakeport zip code area.
COMMISSIONER DATE APPOINTED TERM ENDS
Mark Mitchell December 12, 2022 December 31, 2026
Kipp Knorr December 12, 2022 December 31, 2026
Nathan Maxman December 12, 2022 December 31, 2026
Mary Claybon December 10, 2024 December 31, 2028
Fred Christensen December 10, 2024 December 31, 2028
LAKEPORT ECONOMIC DEV ELOPMENT ADVISORY COMMITT EE (L EDAC) This committee meets bimonthly, on the second Wednesday of the month, at 7:30 a.m. in the Conference Room at City Hall. Membership to this committee is open to anyone who lives, works, shops, or does business in the City of Lakeport, including those in the unincorporated areas of the Lakeport trade area.
COMMISSIONER DATE APPOINTED TERM ENDS
Pam Harpster November 21, 2023 December 31, 2027
Lissette Hayes December 10, 2024 December 31, 2027
Vacant Unknown December 31, 2027
Marie Schrader December 10, 2024 December 31, 2026
Bonnie Darling December 10, 2024 December 31, 2026
Wilda Shock December 10, 2024 December 31, 2026
Laura Sammel December 10, 2024 December 31, 2026
MEASUR E Z ADVISORY COMMITT EE
This committee meets quarterly to review all revenues and expenditures of the Measure Z transactions and use tax and make recommendations to the City Council regarding those expenditures.
COMMISSIONER DATE APPOINTED TERM ENDS
Susan King December 13, 2022 December 31, 2026
Laura Somes December 13, 2022 December 31, 2026
Meg Harper December 10, 2024 December 31, 2028
Dennis Rollins December 10, 2024 December 31, 2028
Carl Porter December 10, 2024 December 31, 2028
LAKEPORT FIR E PROTECT ION DIST RICT BOAR D
This Board meets at 5:00 PM on the second Tuesday of each month at 445 N. Main St., Lakeport CA 95453, Lakeport, CA. Members must reside within the City limits. Directors serve a 4-year term.
BOARD MEMBER DATE APPOINTED TERM ENDS
Andrew Britton November 21, 2023 December 31, 2027
Jeff Warrenburg December 13, 2022 December 31, 2026
LAKE CO UNTY V ECTOR CO NTROL DISTRICT BOAR D
This Board of Trustees meets at 1:30 PM on the second Wednesday of each month at 410 Esplanade, Lakeport, CA. Members must be a voter in the City of Lakeport and reside within the district. Trustee’s serve a 2-year or 4-year term, at the discretion of the City Council
BOARD MEMBER DATE APPOINTED TERM ENDS
George Spurr November 21, 2023 December 31, 2027
Meeting Date: 12/02/2025 Page 1 Agenda Item # IV.E.
CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
Lakeport Industrial Development Agency
Municipal Financing Agency of Lakeport
STAFF REPORT
RE: Notice of Completion for the Martin & Lakeshore Repaving Project
MEETING DATE: 12/02/2025
SUBMITTED BY: Ron Ladd, Public Works Director
PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
The City Council is being asked to adopt a resolution accepting Martin & Lakeshore Repaving Project, Bid 25- 01, as complete and authorize the City Manager to file a Notice of Completion.
BACKGROUND/DISCUSSION:
On July 15, 2025, the City Council awarded a construction contract to Ghilotti Construction Company, for the Martin & Lakeshore Repaving Project, Bid 25-01, in the amount of $1,101,474.00, with an allowance for 10% contingency, totaling $1,211,621.40.
The project scope included pavement rehabilitation on Martin Street and Lakeshore Boulevard. The work included full depth reclamation with cement, hot mix asphalt paving, protection and adjustment of existing utilities, and restoration of pavement markings.
This project followed the 2024 Water & Sewer Main Replacement Project, which replaced aging water and sewer infrastructure underground on these roads.
The City of Lakeport Public Works Department has reviewed the project and determined that it has been completed in substantial compliance with the project plans and specifications. The total cost of the construction contract came out to $1,148,846.91. The additional cost over the original contract was largely due to an increased area of pavement repair, additional utility adjustments after final paving and additional pavement markings and striping.
OPTIONS:
No other options recommended
FISCAL IMPACT:
None $ Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase: $ Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:
Comments:
Meeting Date: 12/02/2025 Page 2 Agenda Item # IV.E.
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☐ Priority #3: Good Governance & Fiscal Stability
☒ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
SUGGESTED MOTIONS:
Move to adopt the resolution accepting construction of the Martin & Lakeshore Repaving Project, by Ghilotti Construction Company and authorize the filing of the Notice of Completion.
Attachments: 1. Resolution
2. Notice of Completion
RESOLUTION NO. XXX___ ( 2025 )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT ACCEPTING CONSTRUCTION OF THE MARTIN & LAKESHORE REPAVING PROJECT, BID NO 25-01, AND
AUTHORIZING THE FILING OF THE NOTICE OF COMPLETION
WHEREAS, the final inspection of the Martin & Lakeshore Repaving Project, Bid No 25-01, was made by the City of Lakeport’s Public Works Department; and
WHEREAS, it was determined that the work for this project has been completed in substantial compliance with the project plans and specifications.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKEPORT AS FOLLOWS:
1. The City Council hereby accepts the work as completed on the Martin & Lakeshore Repaving Project, Bid No 25-01.
2. The City Manager is authorized and directed to execute the Notice of Completion to be filed with the County of Lake.
The foregoing Resolution was adopted at a regular meeting of the City Council of the City of Lakeport held on the on the 2nd day of December, 2025 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED:
_______________________________
Kim Costa, Mayor
City of Lakeport
ATTEST:
_________________________________
Kelly Buendia, City Clerk
City of Lakeport
.2 NOC - Martin Lakeshore Paving
RECORDING REQUESTED BY
City of Lakeport
AND WHEN RECORDED MAIL THIS DEED,
UNLESS OTHERWISE SHOWN BELOW.
MAIL TAX STATEMENTS TO:
City of Lakeport Attn: Olivia Grupp
225 Park Street
Lakeport, CA 95453
Complimentary recording request pursuant to
government code § 27383
SPACE ABOVE THIS LINE FOR RECORDER’S USE
Notice of Completion
NOTICE is hereby given that:
1. The Undersigned is owner of the interest stated below in the property hereinafter described:
2. The NAME (including that of the undersigned), ADDRESS and NATURE OF TITLE of every person owning any interest in such property is as follows:
City of Lakeport 225 Park St, Lakeport, CA 95453 Fee Simple (NAME OF UNDERSIGNED)
3. The names and addresses of the transferors of the undersigned owner: (to be shown if the undersigned is a successor in interest of the owner who caused the improvement to be constructed, etc.)
4. A work of improvement on the property hereinafter described was COMPLETED ON 11/07/2025
5. The name of the CONTRACTOR for such work of improvement was Ghilotti Construction Company, 246 Ghilotti Ave
Santa Rosa, CA 95407
(If no Contractor, insert “NONE”
6. The property on which said work of improvement was completed is in the City of Lakeport , county of Lake State of California, and is described as follows: Pavement rehabilitation with full depth reclamation, asphalt paving and restoration of pavement markings.
EXEMPT FROM NOTARY ACKNOWLEDGEMENT REQUIREMENTS PER GOVERNMENT CODE §27287 & CIVIL CODE §9208
7. The street address of said property is: Martin Street and Lakeshore Boulevard, Lakeport Dated:
Signature of
Owner or Owners }
Kevin M. Ingram, City Manager
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Manager of the aforesaid interest or estate in (“PRESIDENT, PARTNER, MANAGER, AGENT, ETC.”
the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.
Date and Place (Signature of person signing on behalf of owner)) Meeting Date: 12/2/2025 Page 1 Agenda Item # VI.A.
424538.1
CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
STAFF REPORT
RE: Public Hearing and First Reading of a Text Amendment to Section
15.04.010 of the Lakeport Municipal Code for the 2025 California Building Code Adoption
MEETING DATE: 12/02/2025
SUBMITTED BY: Joey Hejnowicz, Community Development Director PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
The City Council is being asked to conduct a public hearing for the consideration of amending Section 15.04.010 (Adopted) of Chapter 15.04 (Construction Codes) of Title 15 (Buildings and Construction) of the Lakeport Municipal Code to adopt and incorporate by reference the 2025 California Building Standards Codes.
BACKGROUND/DISCUSSION:
Every three years the California Building Standards Commission (CBSC) adopts a new edition of the California Building Standards Code, which is codified in California Code of Regulations, Title 24. The 2025 edition was published July 1, 2025.
The 2025 edition becomes applicable for buildings where permit applications are submitted on or after January 1, 2026. The Code is separated into multiple parts:
• Part 1, California Administrative Code (CAC)
• Part 2, California Building Code (CBC)
• Part 2.5, California Residential Code (CRC)
• Part 3, California Electrical Code (CEC)
• Part 4, California Mechanical Code (CMC)
• Part 5, California Plumbing Code (CPC)
• Part 6, California Energy Code (CEEC)
• Part 7, California Wildland-Urban Interface Code (CWUIC) • Part 8, California Historical Building Code (CHBC)
• Part 9, California Fire Code (CFC)
• Part 10, California Existing Building Code (CEBC)
• Part 11, California Green Building Code (CALGreen)
• Part 12, California Reference Standards Code (CRSC)
The proposed Ordinance will incorporate the 2025 California Building Codes through the revision of Section
15.04.010 of the Lakeport Municipal Code.
Meeting Date: 12/2/2025 Page 2 Agenda Item # VI.A.
424538.1
SUMMARY OF SIGNIFICANT 2025 CODE UPDATES
The 2025 California Building Standards Code introduces expanded electrification requirements, enhanced energyefficiency and EV-infrastructure provisions, updated CALGreen sustainability measures, and updated structural, fire/life-safety, mechanical and plumbing system requirements in addition to various clarifications and administrative updates. The updates reflect California’s statewide goals for decarbonization, resilience, and modernization of building systems.
OPTIONS:
For the Ordinance modifying the Lakeport Municipal Code Section 15.04.010:
1. After conducting the public hearing, introduce the proposed Ordinance and schedule a second reading for adoption on 12/16/25.
2. After conducting the public hearing, direct staff to make modifications to the proposed Ordinance.
3. After conducting the public hearing, take no action or deny the request.
FISCAL IMPACT:
None $ Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase: $ Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:
Comments: None
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☐ Priority #6: Economic Development
SUGGESTED MOTIONS:
Move to introduce the draft Ordinance amending Section 15.04.010 of the Lakeport Municipal Code and set a second reading for December 16, 2025.
Attachment: 1. Draft Ordinance Adopting 2025 California Building Codes 424539.1
ORDINANCE NO. ________ (2025)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAKEPORT AMENDING SECTION 15.04.010 OF CHAPTER 15.04 OF TITLE 15
OF THE LAKEPORT MUNICIPAL CODE TO INCORPORATE AND ADOPT BY REFERENCE THE 2025 CALIFORNIA BUILDING STANDARDS CODE (TITLE 24, PARTS 1–12).
WHEREAS, the State of California adopts a revised California Building Standards Code (“Building Standards Code”) every three years pursuant to Health and Safety Code Section 18938, which together form Title 24 of the California Code of Regulations; and
WHEREAS, the California Building Standards Commission has adopted the 2025 Edition of the Building Standards Code, including Parts 1 through 12, which become effective statewide for building permit applications submitted on or after January 1, 2026; and
WHEREAS, Health and Safety Code Sections 17958, 17958.5, and 17958.7 authorize local jurisdictions to adopt the State Building Standards Code with amendments reasonably necessary based on local conditions related to climate, geology, and topography; and
WHEREAS, the City of Lakeport desires to adopt the 2025 Building Standards Code to maintain consistency with state law, ensure minimum building safety standards, and incorporate updates related to electrification, energy efficiency, green building, fire protection, and structural resiliency; and
WHEREAS, the City Council conducted a duly noticed public hearing on December 2, 2025, received public testimony, and determined it is in the interest of public health, safety, and welfare to adopt the 2025 Building Standards Code;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
LAKEPORT DOES ORDAIN AS FOLLOWS:
SECTION 1. AMENDMENT. Section 15.05.010 (Adopted.) of Chapter 15.04 (Construction Codes) of Title 15 (Buildings and Construction) of the Lakeport Municipal Code is hereby amended to read as follows:
15.04.010 – Adoption of the California Building Standards Code (2025 Edition).
The City of Lakeport hereby adopts by reference the following Parts of the 2025 California Building Standards Code, Title 24 of the California Code of Regulations, including all state amendments adopted by the California Building Standards Commission:
1. Part 1 – California Administrative Code
424539.1
2. Part 2 – California Building Code, Volumes 1 & 2 (CBC)
3. Part 2.5 – California Residential Code (CRC)
4. Part 3 – California Electrical Code (CEC)
5. Part 4 – California Mechanical Code (CMC)
6. Part 5 – California Plumbing Code (CPC)
7. Part 6 – California Energy Code
8. Part 7 – California Wildland-Urban Interface Code
9. Part 8 – California Historical Building Code (CHBC)
10. Part 9 – California Fire Code (CFC)
11. Part 10 – California Existing Building Code (CEBC)
12. Part 11 – California Green Building Standards Code (CALGreen) Part 12 – California Referenced Standards Code
The following international and uniform codes are also hereby adopted by reference:
1. 2021 International Property Maintenance Code;
2. 2021 International Swimming Pool and Spa Code;
3. 1997 Uniform Housing Code, published by the International Conference of Building Officials as referenced by the California Department of Housing and Community Development and pursuant to the provisions of Sections 17958, 17958.5, 17958.7, 17958.9 and 17959 of the California Health and Safety Code.
Where the California Building Standards Codes regulations listed above differ from any provisions of the international or uniform codes, the California Buildings Standards Codes shall prevail. As used in this municipal code, “California Building Standards Code” means any and all applicable codes listed in this section and adopted by reference.
SECTION 2. Severability: Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable.
SECTION 3. CEQA. The project is exempt from environmental review per CEQA Guidelines Section 15061(b)(3). The project involves updates and revisions to existing regulations. The proposed code amendments are consistent with California Law, specifically Title 24 of the California Code of Regulations. It can be seen with certainty that the proposed Municipal Code text amendments will have no significant effect on the environment.
424539.1
SECTION 4. Effective Date. This ordinance shall take effect thirty (30) days after adoption as provided by Government Code section 36937.
SECTION 5. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall give notice of its adoption as required by law.
Pursuant to Government Code section 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting the entire text.
INTRODUCED and first read at a regular meeting of the City Council on the 2nd day of December 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
FINAL PASSAGE AND ADOPTION by the City Council of Lakeport occurred at a meeting thereof held on the 16th day of December, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
___________________________
Kim Costa, Mayor
ATTEST:
_____________________________
Kelly Buendia, City Clerk
Meeting Date: 12/02/2025 Page 1 Agenda Item # VII.A.1
CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
Lakeport Industrial Financing Authority
Municipal Financing Agency of Lakeport
STAFF REPORT
RE: Water & Sewer Master Plan Updates (Draft) MEETING DATE: 12/02/2025 SUBMITTED BY: Paul Harris, Utilities Director
PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
This is an informational item providing an update of our 2025 Water & Sewer Master Plan Updates for review and final acceptance at a future date.
BACKGROUND/DISCUSSION:
A Master Plan is a comprehensive, long-term strategy for managing a community's water and wastewater resources to meet current and future needs. It serves as a roadmap for utilities and asset owners to ensure sustainability by addressing issues like infrastructure, population growth, and climate change through detailed financial, technical, and implementation programs.
The last Master Plans were completed back in 2008. Most of the items identified in those plans have been successfully implemented utilizing grant funding, loans and subsequent rate increases. Since nearly exhausting that list, the city felt it was in our best interest to once again invest in a long-term strategy with updated plans.
In June of 2024, Pace Engineering was contracted to update both of the 2008 Plans. This project consisted of the collection of data, multiple site visits, assessing the condition of existing infrastructure and reviewing the impacts of Federal, State and local regulatory agencies. It also included an evaluation of City Ordinances, operations, maintenance and reporting procedures. This data in turn would provide the recommended list of capital improvements and associated cost estimates followed by financing strategies to assist the city with both short- and long-term facility needs. These plans are intended to project the needs over the next 20 years.
Pace Engineering is here tonight to present on both draft versions of the Water & Sewer Master Plan Updates.
This is intended to provide the City Council and the community we serve with a comprehensive review of the findings related to our existing utility infrastructure. We encourage any questions at the end of each presentation.
Copies of both plans are available for review on our city’s website (https://www.cityoflakeport.com/public_works/water/documents.php) and (https://www.cityoflakeport.com/public_works/sewer/document_center.php). We encourage a thorough review and will be bringing this item back at a future meeting for final acceptance of each plan.
Meeting Date: 12/02/2025 Page 2 Agenda Item # VII.A.1
FISCAL IMPACT:
None Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase:
Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:
COUNCIL PRIORITIES:
☒ Priority #1: Public Safety & Crisis Response
☒ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☒ Priority #4: Capital Infrastructure Improvement
☒ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☒ Priority #6: Economic Development
SUGGESTED MOTIONS:
No motion. This is an informational item only for review and final acceptance at a future date.
Attachments: 1. WMPU Presentation
2. SMPU Presentation
CITY OF LAKEPORT
DRAFT 2025 WATER MASTER PLAN UPDATE
CITY COUNCIL MEETING
DECEMBER 2, 2025
AGENDA
Review Existing Water System
Discuss Recommended Improvements
Review Preliminary Estimates of Costs
EXISTING WATER SYSTEM
WATER TREATMENT PLANT
Primarily used in late spring and summer months to supplement water supply Considered an alternative treatment process
Maximum water treatment plant (WTP) capacity – 1,200 GPM (two trains) Typical treated water flow rate – 600 GPM (one train)
CLARIFIER & FILTER UNITS
BACKWASH PONDS
CHEMICAL FEED SYSTEM RAW WATER INTAKE PUMPS INTAKE PUMP STATION
OZONE & BLOWER ROOM GAC COLUMNS CLEARWELL
CLEAR LAKE INTAKE & PUMP STATION
Lake Pump Station
Intake Structure
Historically, lake levels have only dropped below intake twice over the past 149 years (1977 and 2020)
After 2020, modifications were made to the intake to allow operation two feet lower than the original design
Lake Pump Station
2,200 LF of 14-inch piping from intake structure to the Lake Pump Station wet well Two pumps each capable of pumping 900 GPM
SUPPLY WELLS
Four Active Wells
Green Ranch East, Green Ranch West, Scotts Creek 4-inch, and Scotts Creek 8-inch Combined pumping capacity between 1,275 and 1,865 GPM depending on groundwater levels Green Ranch Wells
Primary source during winter months
Scotts Creek Wells
Primary source during summer months
GREEN RANCH WELLS 4-IN SCOTTS CREEK WELL 8-IN SCOTTS CREEK WELL
WATER STORAGE TANKS
Two Active Water Storage Tanks totaling 2.5 MG of storage 1.0 MG Tank
1.5 MG Tank
Two Inactive Underground Storage Tanks
Constructed in 1913 and 1936
Taken offline when the 1.0 MG Tank was constructed in 1976
1.0 MG STORAGE TANK 1.5 MG STORAGE TANK UNDERGROUND STORAGE TANKS
DISTRIBUTION SYSTEM
Water Mains
40.1 miles of water mains 1- to 14-inch in diameter
37% of system is unlined cast iron and galvanized iron pipe, estimated to be over 100 years old
26% of distribution piping is substandard size (≤ 4-inches in diameter) ~2,356 water service connections throughout the City
307 fire hydrants
Water loss is approximately 9.3%
FIRE HYDRANT SPACING
CONTROL SYSTEM
SCADA system was updated in 2024 with the latest
Aveva System Platform
Server was replaced with a new Dell server
New VPN for remote access and SCADA monitoring
WTP SCADA OVERVIEW
SCOTTS CREEK CONTROL ROOM STORAGE TANK CONTROL BUILDING GREEN RANCH VFDs
PROJECTED GROWTH
Projected growth over 10- and 20-year outlooks is projected to be 1.1% Includes annexation along South Main Street
Without annexation, growth expected to be 0.9%
This equates to 794 residential unit equivalents (RUEs) added to the system An RUE is the average water usage of a single-family household 645 RUEs within the City limits
58 existing RUES in annexation areas
91 RUEs added as general infill in annexation areas
Future water consumption per capita is anticipated to remain unchanged Existing 2035 2045
Average Day Demand, MGD 0.67 0.74 0.83
Maximum Day Demand, MGD 1.37 1.53 1.71
Average Day Demand/RUE, GPD 205 205 205
Maximum Day Demand/RUE, GPD 410 410 410
WATER SUPPLY
Supply capacity of 3,415 GPM (4.92 MGD)*
Effective supply capacity of 1,835 GPM (2.64 MGD)**
Adequate to meet current MDD of 1.38 MGD
Will meet projected 20-year MDD of 1.71 MGD
*Include both SWTP trains online (1,200 GPM)
**Includes one SWTP train online (600 GPM) and largest well offline
RECOMMENDED IMPROVEMENTS
WELLS
IMMEDIATE TERM
Develop new Green Ranch Well
Properly abandon Scotts Creek Wells or only use in emergencies with authorization from the Division of Drinking Water
Lack of site security
Inadequate annual seals
Potential erosion and well destruction during high creek flows Green Ranch Well Assessment
Upgrade infrastructure based on well assessment results currently underway No additional Near- or Long-Term Improvements needed
8-IN SCOTTS CREEK WELL
4-IN SCOTTS CREEK WELL
WATER TREATMENT PLANT
IMMEDIATE TERM
Rehab clearwell
Replace WTP roof
Upgrade ozone generator
Replace GAC in carbon column Train 2
Recoat package units and change out filter media
Upgrade SCADA software
NEAR TERM
Upgrade ozone separators
Replace GAC in carbon column Train 1
Upgrade SCADA hardware
Construct dual operations center
LONG TERM
Upgrade SWTP and intake MCC & telemetry
Replace GAC in carbon column Train 2
If new Green Ranch Well has adequate capacity, consider phasing out usage of SWTP and/or resort to only using during emergency supply needs
WATER STORAGE TANKS
No Immediately Recommended Improvements
NEAR TERM
Recoat interior & exterior of both tanks
Replace roof at tank control room building
LONG TERM
Replace SCADA/monitoring equipment
Replace chemical feed system
Replace on-site generator
Construct 1.0 MG storage tank in southern portion of City limits for resiliency and to add redundancy to the system
DISTRIBUTION SYSTEM
IMMEDIATE TERM
Replace 7,000 feet of under-sized water mains that are past their useful service life Construct Phase 1 of the Loop Line Project (via 100% grant funding) – Extend 12-inch pipe from City limits down to the theater
NEAR TERM
Replace/Install 4,100 feet of water mains that are under-sized and add looping to system to increase fire flows
Replace water meters
Construct Phase 2 of the Loop Line Project – Loop 12-inch pipe from Parallel Drive to the intersection of South Main Street and Soda Bay Road
LONG TERM
Replace 3,200 feet of water mains along South Main Street Parallel 3,000 feet of water mains on South Main Street Boost hydraulic conveyance from north to south to enhance firefighting capabilities and bolster water supply from City reservoirs to accommodate expected growth in the southern parts of the City Construct Phase 3 of the Loop Line Project – Extend 12-inch pipe from the theater to Mannings Creek
PRELIMINARY FUTURE
ESTIMATES OF COSTS
PRELIMINARY ESTIMATES OF COSTS
Immediate Recommended Improvements = ~$13.7M
Develop new Green Ranch Well
Rehab clearwell
Replace SWTP equipment
Focus on meeting required fire flows in areas with undersized water mains less than 4 inches in diameter and replacing cast iron and galvanized iron mains, which are estimated to be older than 100 years Near-Term Recommended Improvements = ~$13.2M
Replace water meters
Upgrade SWTP equipment
Recoat exterior and interior of both water storage tanks, and replace roof at tank site Construct Phase 2 of the Loop Line Project
Continue deficient water line replacements
Construct dual operations center
Upgrade SCADA software
Long-Term Recommended Improvements = ~$18.8M
Add water storage tank to southern portion of the City Upgrade SWTP MCC and telemetry
Improve hydraulic conveyance with larger diameter mains Construct Phase 3 of the Loop Line Project
Total Improvement Costs = ~45.7M
GRANT FUNDING CLIMATE
If no grant funding is obtained for any of the improvements recommended in the next 20 years, an approximate monthly increase to all rate payers of ~$56 per RUE would be required
The City is currently a severely disadvantaged community as defined by the Drinking Water State Revolving Fund (DWSRF)
Qualifies for up to 100% DWSRF grant
The State has reduced grant allocation from the budget this year and is currently funding only water systems that are classified by DDW as ‘failing’ or ‘at risk of failing’ unless the project includes consolidation
DWSRF does provide 0% interest loans repayable over a maximum of 40 years if rates are at least 1.5% of the median household income ($74.12 per month at current MHI).
If rates are lower than that, the interest rate is half the General Obligation Bond Rate (currently at 1.9%).
Additional grant funding is available for shovel-ready projects
RECOMMENDATIONS
Consider Draft 2025 Water Master Plan Update and, if in agreement, formally adopt it as final.
Complete a water rate study separate from this Water Master Plan Update to verify water rate increases needed in addition to funding water system improvements recommended herein.
Update Water Master Plan every 10 years, or more frequently if significant growth occurs.
QUESTIONS?
Laurie McCollum, PE
Principal Engineer
PACE Engineering, Inc.
530-244-0202
[email protected]
CITY OF LAKEPORT
DRAFT 2025 SEWER MASTER PLAN UPDATE
CITY COUNCIL MEETING
DECEMBER 2, 2025
AGENDA
Review Existing Wastewater System
Discuss Recommended Improvements
Review Preliminary Estimates of Costs
EXISTING WASTEWATER SYSTEM
COLLECTION SYSTEM
Collection system consists of 159,600 feet of sewer mains and 568 manholes 144,600 feet of 4- to 10-inch collector mains
15,000 feet of 12- to 24-inch interceptor mains
Some mains are up to 80 years old consisting of clay pipe with cement mortar joints
Only a couple sections of Orangeburg pipe left in the system Infiltration and Inflow (I&I)
Flows at the wastewater treatment plant (WWTP) can increase by more than eight times the average dry weather flow (ADWF) during peak rain events Correlates to elevated lake levels
LIFT STATIONS
Nine lift stations in the City system
Lake County Sanitation District Lift Station (LS) No. 12 Operated by Lake County, but discharges into City system Lakeshore Boulevard LS
Owned by the City, but discharges into the Lake County Sanitation District system All have adequate capacity for 20-year outlook, except Lakeshore Boulevard LS All have permanent or designated backup generators, flow meters, and one spare backup pump for each lift station
WASTEWATER TREATMENT PLANT
Treats primarily domestic wastewater
Discharges disinfected secondary effluent to an effluent storage reservoir, irrigation pump station, and eventually irrigation fields
CHLORINATION FACILITIES EFFLUENT PUMP STATION HEADWORKS AERATION BASINS
EFFLUENT RESERVOIR EFFLUENT IRRIGATION PUMP STATION EFFLUENT IRRIGATION
CONTROL SYSTEM
The WWTP and lift stations are controlled by SCADA that was upgraded in 2024
Programmable Logic Controllers and radios with cellular backup are utilized
Server dedicated specifically to the wastewater SCADA system is now in place
Operator remote access and SCADA monitoring are completed through a virtual private network
WWTP MOTOR CONTROL CENTER WWTP SCADA OVERVIEW SCREEN
PROJECTED GROWTH
Approximately 2,077 Residential Unit Equivalents (RUEs) are currently being served
An RUE is defined as the ADWF generated from a single-family residential dwelling
Annual projected growth over the 10- and 20-year outlooks is expected to be 1.1%
Equates to an additional 674 RUEs added to the system 578 RUEs flow to the City WWTP
96 RUEs flow to Lake County Sanitation District
Existing 2035 2045
Influent ADWF, MGD 0.36 0.44 0.48
Influent Peak Wet Weather
Flow (PWWF), MGD
2.89 2.94 3.04*
ADWF/RUE, GPD 180 180 180
WASTEWATER TREATMENT PLANT
ADWF Capacity – 0.53 MGD
Current influent ADWF – 0.36 MGD (68% of Capacity)
A 1.1% annual growth rate = adequate ADWF capacity for 20 years PWWF Capacity – 3.0 MGD
Current influent PWWF – 2.31 MGD (77% of Capacity)
*20-year capacity will not be adequate at the effluent reservoir/irrigation process unless an I&I program continues to be implemented – estimated influent PWWF at 3.04 MGD by 2045
RECOMMENDED IMPROVEMENTS
COLLECTION SYSTEM
CCTV Results of 44,000 feet of 6-inch and larger collection system mains
1,300 feet of pipeline recommended to be replaced
4,500 feet of pipeline recommended to be lined
53 spot repairs
I&I Reduction Program
Imperative City continues to invest in I&I reduction program Focus on areas with I&I greater than 3,500 GPAD to reduce PWWF EPA study correlated sewer rehabilitation projects had an I&I removal rate of 30% that targeted mains only
SCADA Hardware and Software Upgrade
LIFT STATIONS
Immediate-Term Improvements
Add bypass connections to all lift stations
Larrecou LS – Add chlorination system
Linda Lane LS – Add dechlorination system
Near-Term Improvements
Lakeshore LS – Upsize pumps
LINDA LANE LS LAKESHORE LS LARRECOU LS
WASTEWATER TREATMENT PLANT
IMMEDIATE TERM
Trend pre- and post-turbidity in SCADA
Upgrade effluent pump station controls
Incorporate irrigation meter with pressure transducer in SCADA Install automatic self-cleaning filter at irrigation piping Replace WWTP control building roof
Upgrade headworks mechanical screen
NEAR TERM
Install composite samplers
Install dissolved oxygen probes in aeration basins
LONG TERM
Parallel chlorine contact pipe (as needed)
Aeration basin rehabilitation project and sludge removal
HEADWORKS
AERATION BASIN
PRELIMINARY FUTURE
ESTIMATES OF COSTS
PRELIMINARY ESTIMATES OF COSTS
Immediate Recommended Improvements (2025-2030) = ~$14M Addresses undersized and flat sewers that currently surcharge during PWWF WWTP improvements to expand operational control and ease oversight Add lift station bypass connections and chlorination/dechlorination at Larrecou/Linda Lane Upgrade SCADA software
Near-Term Recommended Improvements (2030-2035) = ~$4.6M Continue reduction in I&I
Upsize Lakeshore LS
Construct Dual Operations Center
Upgrade SCADA hardware
Long-Term Recommended Improvements (2035-2045) = ~$37.7M Continue reduction in I&I
Rehabilitate Aeration Basin
Increase chlorination facilities (if needed)
Total Improvement Costs = ~$56.3M
GRANT FUNDING CLIMATE
If no grant funding is obtained for any of the improvements recommended in the next 20 years, an approximate monthly increase to all rate payers of ~$84 per RUE would be required
The City is currently a severely disadvantaged community as defined by the Clean Water State Revolving Fund (CWSRF)
Qualifies for up to 100% CWSRF grant if septic-to-sewer, consolidation, or violation-related project
The State has reduced grant allocation from the budget this year. Allows 50% CWSRF grant for secondary priority projects up to $25M in any given 5-year period. Project costs beyond the maximum grant may receive a reduced interest rate (not less than 0 percent) loan up to $10M. Additional grant funding is available for shovel-ready projects
RECOMMENDATIONS
Consider Draft 2025 Sewer Master Plan Update and, if in agreement, formally adopt it as final
Complete a sewer rate study separate from this Sewer Master Plan Update to verify sewer rate increase needed in addition to funding sewer system improvements recommended herein
Update Sewer Master Plan every 10 years, or more frequently if significant growth occurs
QUESTIONS?
Laurie McCollum, PE
Principal Engineer
PACE Engineering, Inc.
530-244-0202
[email protected]
Meeting Date: 12/02/2025 Page 1 Agenda Item #VII.B.1.
CITY OF LAKEPORT
City Council
City of Lakeport Municipal Sewer District
Lakeport Redevelopment Successor Agency
Lakeport Industrial Development Authority
Municipal Financing Agency of Lakeport
STAFF REPORT
RE: Lakeport Economic Development Advisory Committee (LEDAC): AtLarge Appointments and Re-OrganizationMEETING DATE: 12/02/2025 SUBMITTED BY: Kelly Buendia, Administrative Services Director/City Clerk PURPOSE OF REPORT: Information only Discussion Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
1. Appoint three individuals to fill three at-large vacancies on LEDAC, effective January 1, 2026, and expiring December 31, 2027.
2. Adopt a resolution adding three new designated voting member seats to LEDAC—assigned to the 49th District Agricultural Association; the Big Valley Band of Pomo Indians; and the Scotts Valley Band of Pomo Indians.
BACKGROUND/DISCUSSION:
LEDAC was established in 2010 to advise the City on economic development strategies, business outreach, and initiatives supporting Lakeport’s economic vitality. The committee includes designated partner-agency seats and at-large members representing the broader Lakeport trade area.
LEDAC currently includes twelve (12) voting members, consisting of:
• Five partner-agency seats (Lakeport Main Street Association, Lake County Chamber of Commerce, Mendocino College/Lake Center, Workforce Development/MPIC, and Sutter Lakeside Hospital). • Seven at-large seats appointed by the Council.
Recruitment was conducted for three of the seven at-large seats, which will expire December 31, 2025.
Applications were solicited through public outreach, and staff received qualified applications from Lissette Hayes, Pam Harpster, and Victoria Pulido. Staff recommends their appointment.
To strengthen collaboration with key regional economic partners, staff also recommends adding three new designated seats assigned to the 49th District Agricultural Association, Big Valley Band of Pomo Indians, and Scotts Valley Band of Pomo Indians.
OPTIONS:
1. Approve the reorganization and appointments as recommended.
2. Modify the structure or select alternative appointees.
3. Direct staff to re-advertise the vacancies.
Meeting Date: 12/02/2025 Page 2 Agenda Item #VII.B.1.
FISCAL IMPACT:
None $ Budgeted Item? Yes No
Budget Adjustment Needed? Yes No If yes, amount of appropriation increase: $ Affected fund(s): General Fund Water OM Fund Sewer OM Fund Other:
Comments:
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☒ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☐ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☒ Priority #6: Economic Development
SUGGESTED MOTIONS:
SUGGESTED MOTIONS
1. Move to appoint Lissette Hayes to serve on LEDAC effective January 1, 2026, expiring December 31, 2027.
2. Move to appoint Pam Harpster to serve on LEDAC effective January 1, 2026, expiring December 31, 2027.
3. Move to appoint Victoria Pulido to serve on LEDAC effective January 1, 2026, expiring December 31, 2027.
4. Move to adopt a resolution adding three designated member seats to the Lakeport Economic Development Advisory Committee.
Attachments: 1. List of 2025 Committee members and terms
2. Application from Lissette Hayes
3. Application from Pam Harpster
4. Application from Victoria Pulido
5. A Resolution of the City Council of the City of Lakeport Reorganizing the Lakeport Economic Development Advisory Committee (LEDAC) to add three designated Voting Member Seats assigned to the 49th District Agricultural Association, the Big Valley Band of Pomo Indians, and the Scotts Valley Band of Pomo Indians
LAKEPORT ECONOMIC DEVELOPMENT ADVISORY COMMITTEE (LEDAC) This committee meets bimonthly, on the second Wednesday of the month, at 7:30 a.m. in the Conference Room at City Hall.
Membership to this committee is open to anyone who lives, works, shops, or does business in the City of Lakeport, including those in the unincorporated areas of the Lakeport trade area.
COMMISSIONER DATE APPOINTED TERM ENDS
Pam Harpster November 21, 2023 December 31, 2025
Lissette Hayes December 10, 2024 December 31, 2025
JoAnn Saccato November 21, 2023 December 31, 2025
Marie Schrader December 10, 2024 December 31, 2026
Bonnie Darling December 10, 2024 December 31, 2026
Wilda Shock December 10, 2024 December 31, 2026
Laura Sammel December 10, 2024 December 31, 2026
425139.1
272640.1
RESOLUTION NO. XXXX (2025)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT REORGANIZING THE
LAKEPORT ECONOMIC DEVELOPMENT ADVISORY COMMITTEE (LEDAC) TO ADD THREE DESIGNATED VOTING MEMBER SEATS ASSIGNED TO THE 49TH DISTRICT AGRICULTURAL
ASSOCIATION, THE BIG VALLEY BAND OF POMO INDIANS, AND THE SCOTTS VALLEY BAND OF
POMO INDIANS
WHEREAS, on December 7, 2010, the City Council of the City of Lakeport adopted Resolution 2404 (2010) establishing the Lakeport Economic Development Advisory Committee (LEDAC); and
WHEREAS, LEDAC was formed to advise the City Council, City Manager, and Lakeport Economic Development Program staff on economic development programs and strategies, maintain communication with the business community, evaluate community economic needs, and promote commerce solutions that enhance the quality of life in Lakeport; and WHEREAS, on October 3, 2017, the City Council adopted Resolution 2635 (2017) establishing a board structure consisting of seven (7) at-large members appointed by the City Council and four (4) designated seats appointed by the Lakeport Main Street Association, the Lake County Chamber of Commerce, Mendocino College, and Workforce Lake; and WHEREAS, on January 4, 2022, the City Council adopted Resolution 2845 (2022) adding Sutter Lakeside Hospital as an additional designated voting member to ensure representation of significant partners in local economic development; and WHEREAS, the City Council now finds that the 49th District Agricultural Association, the Big Valley Band of Pomo Indians, and the Scotts Valley Band of Pomo Indians are key regional partners whose participation on LEDAC will further strengthen collaborative economic development efforts and ensure broad stakeholder representation; and WHEREAS, the addition of these three designated agency seats necessitates an update to LEDAC’s organizational structure; and
WHEREAS, the City Council recognizes that an even numbered board may encounter a tie vote from time to time and desires to authorize the City Manager or designee to vote in the case of a tie vote.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeport hereby adds three (3) new designated voting member seats to the Lakeport Economic Development Advisory Committee, assigned as follows:
• 49th District Agricultural Association
• Big Valley Band of Pomo Indians
• Scotts Valley Band of Pomo Indians
425139.1
272640.1
BE IT FURTHER RESOLVED that the reorganized board make-up of LEDAC shall consist of:
• Seven (7) at-large members, appointed by the City Council; and • Eight (8) designated members, one appointed from each of the following agencies:
• Lakeport Main Street Association
• Lake County Chamber of Commerce
• Mendocino College/ Lake Center
• Workforce Development / MPIC
• Sutter Lakeside Hospital
• 49th District Agricultural Association
• Big Valley Band of Pomo Indians
• Scotts Valley Band of Pomo Indians
BE IT FURTHER RESOLVED that the City Manager or designee is authorized to cast a vote in the event of a tie among LEDAC members.
BE IT FURTHER RESOLVED that all other terms and conditions of Resolution 2404 (2010), as previously modified by Resolution 2635 (2017) and Resolution 2845 (2022), shall remain in full force and effect except as specifically modified herein.
THIS RESOLUTION was passed by the City Council of the City of Lakeport at a regular meeting thereof on the ___ day of ____, 2025, by the following vote:
AYES:
NOES:
ABSTAINING:
ABSENT:
_________________________________
KIM COSTA, Mayor
ATTEST:
_______________________________
KELLY BUENDIA, City Clerk
Meeting Date: 12/02/2025 Page 1 Agenda Item #VII.C.1.
425388.1
CITY OF LAKEPORT
City Council ☒
City of Lakeport Municipal Sewer District ☐
Lakeport Industrial Development Authority ☐
Municipal Financing Agency of Lakeport ☐
STAFF REPORT
RE: Approval of a Revocable License Agreement with Westside Community Park for Development and Operation of the
Westside Community Trail Park on CLMSD Property
MEETING DATE: 12/02/2025
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: ☐Information only ☒ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
Review and consider adoption of a revocable License Agreement with Westside Community Park (WCP) authorizing the construction, operation, and maintenance of a multi-use trails park on designated portions of the City-owned CLMSD wastewater treatment property.
BACKGROUND:
The City of Lakeport and Westside Community Park (WCP) have collaborated for many years to expand recreational opportunities for the Lakeport community. Building on this longstanding partnership, the proposed trail park represents the next major step in creating accessible, volunteer-supported recreational amenities that serve a wide range of users.
Westside Community Park Partnership & Committee Overview: Westside Community Park is a volunteer-led nonprofit formed to plan, develop, and enhance recreation facilities serving the Lakeport area. Under the longterm 2008 Memorandum of Understanding between the City and WCP, the nonprofit has successfully led the development of Westside Community Park Phase II—fundraising and constructing facilities at its own cost, coordinating volunteer labor and youth sports partnerships, and delivering substantial public benefit without City financial contribution. As highlighted in the organization’s recent newsletters, the Committee continues to advance major recreation initiatives, mobilize local volunteers, pursue grants, and support long-term park planning—making them uniquely capable of constructing and operating the proposed multi-use trails park on CLMSD property.
Evolution Toward an Equestrian and Trails Facility: The vision for equestrian and trail recreation dates back to the 1998, 2003, and 2011 Westside Park Master Plans, each of which identified equestrian amenities and trail systems as core project elements. Over time, and based on further evaluation of suitable land, City staff and WCP volunteers identified unused portions of the CLMSD wastewater treatment property as better suited for large-scale equestrian activity due to terrain, acreage, and separation from residential neighborhoods.
Between 2021 and 2022, the City Council reviewed presentations from WCP regarding the development of an equestrian center and supported a term sheet and Letter of Intent associated with a Proposition 68 grant proposal. Although the grant was unsuccessful, the WCP Board reaffirmed its commitment to the project and adapted its strategy toward developing a multi-use recreational trails park as the first phase—an approach that can serve equestrian, hiking, and mountain biking communities with lower costs and broad community benefit.
Meeting Date: 12/02/2025 Page 2 Agenda Item #VII.C.1.
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Since 2022, WCP and City Utilities staff have worked collaboratively to identify trail alignments that do not interfere with wastewater treatment operations and are compatible with environmental conditions and longterm CLMSD needs.
CLMSD Property Location and Jurisdiction: Although owned by the City of Lakeport, the CLMSD property is located outside City limits within the unincorporated area of Lake County. As such, the project is subject to the County’s land use entitlement process. Westside Community Park has already begun coordination with the Lake County Community Development Department to identify required permits and environmental review steps, and the City will continue partnering in these discussions to support a smooth entitlement and development process.
DISCUSSION:
Staff Recommendation: Staff recommends approval of the License Agreement with WCP to allow the nonprofit to construct and operate a multi-use recreational trail system for equestrian, hiking, and mountain biking use on City-owned CLMSD lands. The agreement establishes a clear framework for enhancing public access to open space at no cost to the City, while fully preserving the City’s operational authority over wastewater treatment activities and long-term site management.
The proposed license formalizes a public-private partnership that builds on the City’s decades-long relationship with WCP and leverages the organization’s volunteer, fundraising, and project management capacity to expand recreation opportunities well beyond what the City could support on its own. Over the past two years, Utilities, Public Works, and Administrative staff have worked closely with WCP to identify suitable trail areas and ensure that proposed alignments do not conflict with CLMSD operations. Extensive care has been taken to avoid areas needed for wastewater disposal, pond maintenance, pipeline infrastructure, and service access, ensuring compatibility between recreational use and the primary public purpose of the property.
This partnership model continues WCP’s longstanding role in helping develop regional recreation amenities that enhance quality of life for Lakeport residents and the greater community. The full proposed license agreement is included as Attachment 1, and key components are summarized below:
• License Term: The proposed license establishes a 30-year term beginning upon execution, providing WCP with the certainty needed to plan, fund, and phase trail development over time. However, the license remains fully revocable at any time by the City to protect public health, safety, or the operational needs of the CLMSD wastewater treatment system. This structure balances long-term project stability for WCP with the City’s need to maintain flexibility and retain full control of the property for essential municipal functions.
• Permitted Uses: The license authorizes Westside Community Park to develop and operate a noncommercial public trail system accommodating horseback riding, hiking, and mountain biking. While individual trail segments may be designated for specific uses to reduce user conflicts, the overall trail area will remain accessible to all user groups. The agreement also clarifies that the City will not be responsible for enforcing any trail-specific use designations established by the operator. • Trail Construction and Maintenance: Westside Community Park will be solely responsible for all aspects of trail design, construction, improvements, and ongoing maintenance, including trail surfacing and repair, installation of signage and fencing, safety measures, litter and debris management, and upkeep of the access road with appropriate dust control. The City will not provide labor or financial support for any portion of trail development or maintenance. To ensure compatibility with CLMSD operations and site conditions, each proposed trail segment will be subject to City review and approval prior to construction.
• Access: Public access to the trail system will occur through the existing Caltrans-approved encroachment at 3865 State Highway 175. Westside Community Park will be responsible for maintaining the access Meeting Date: 12/02/2025 Page 3 Agenda Item #VII.C.1.
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road with adequate surfacing to ensure safe vehicle entry and to minimize dust impacts on neighboring properties.
• Fees, Insurance and Indemnification: The license establishes an annual fee of $1.00, reflecting the substantial public benefit generated by the project. Westside Community Park will be required to maintain general liability insurance naming the City as an additional insured, and must indemnify and hold the City harmless for all activities associated with trail construction, operation, and use.
Alignment with Citywide Goals: The proposed license agreement strongly aligns with several adopted City goals and policy priorities by expanding recreational access, activating underutilized public lands, and supporting longterm community wellness and open space preservation. Together, these elements ensure the project advances the City’s broader vision for high-quality recreation, sustainable land management, and an enhanced quality of life for Lakeport residents.
City Manager Goal IT-3 – Recreation Program Master Plan and Activation of Existing Parks: The proposed agreement directly supports the City’s FY 2025/26 Goal IT-3 by enabling the activation of an underutilized Cityowned property for broad recreational purposes. The trails park expands access to outdoor recreation, supports youth- and family-oriented activities, and establishes a framework in partnership with WCP that can be integrated into a future Recreation Program Master Plan.
City Council Priority Area: Safe, Sustainable & Attractive Neighborhoods: This project advances multiple priority objectives by:
• Increasing access to parks and recreational amenities • Supporting community health and active lifestyles
• Expanding access to open space
• Preserving natural vistas
• Promoting environmentally protective and economically beneficial public land uses The activation of the CLMSD property as a public recreational asset aligns with the City’s commitment to health, safety, and environmental stewardship.
Westside Park Master Plan: The agreement is fully consistent with long-standing master planning objectives that identify equestrian uses, trail development, and natural area access as core recreation priorities for the Lakeport community. The proposed trail park represents the next incremental step toward a future equestrian center envisioned since the 1990s.
General Plan Consistency: This project aligns with two key General Plan goals:
• Objective PR-1: Provide recreational facilities and access that support play, relaxation, and enrichment for all community members.
• Objective OS-2: Preserve and ensure access to natural open space areas harmonious with environmental and neighborhood conditions.
The trail park expands low-impact recreational opportunities that connect residents and visitors to the natural landscape surrounding Lakeport.
OPTIONS:
1. Approve the License Agreement with Westside Community Park and authorize the City Manager to execute the agreement.
2. Do not approve the License Agreement and direct staff to notify the Westside Community Park that the City will not move forward with this project at this time.
3. Take no action at this time.
4. Provide alternative direction to staff.
Meeting Date: 12/02/2025 Page 4 Agenda Item #VII.C.1.
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ENVIRONMENTAL IMAPACT:
The granting of this revocable license is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 (Existing Facilities), as the licensing of an existing public facility and topographical features involving negligible expansion of existing or former use; section 15303 (New Construction or Conversion of Small Structures), as permitting the installation of small structures such as picnic tables, benches, signage, etc.; section 15304 (Minor Alterations to Land), as the minor alteration in the condition of land and/or vegetation which do not involve the removal of healthy, mature, scenic trees; and 15061(b)(3), as it can be seen with certainty that the license and establishment of a trail system will not have a significant effect on the environment. Any future development associated with trail and facility development would be subject to additional CEQA analysis at the time of proposed development.
FISCAL IMPACT:
☐ None ☒ $1.00 Budgeted Item? ☐Yes ☒ No
Budget Adjustment Needed? ☐Yes ☒ No If yes, amount of appropriation increase: $ Affected fund(s): ☐ General Fund ☐ Water OM Fund ☐ Sewer OM Fund ☐ Other:
Comments: There is no direct cost to the City, as all trail construction, maintenance, and operational responsibilities will be carried out by Westside Community Park. The City’s only financial obligation is limited to existing CLMSD property operations, which remain unchanged by the agreement.
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☐ Priority #3: Good Governance & Fiscal Stability
☐ Priority #4: Capital Infrastructure Improvement
☒ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☒ Priority #6: Economic Development
SUGGESTED MOTIONS:
Move to approve the License Agreement with Westside Community Park for the construction, operation, and maintenance of the Westside Community Trail Park on designated portions of the City’s property, and to authorize the City Manager to execute the agreement.
☒ Attachments: 1. Draft Revocable License Agreement – Westside Community Trail Park
2. Exhibit A—Site Plan
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REVOCABLE LICENSE AGREEMENT
THIS LICENSE AGREEMENT (the “License”) is entered into by and between the City of Lakeport, a California municipal corporation (“Licensor”) and Westside Community Park, a California non-profit corporation (“Licensee”).
WHEREAS, Licensor is the owner of approximately 482.93 acres of real property outside of City limits but in Lake County consisting of portions of 3865 State Highway 175 (APN 007-003- 79), 3665 State Highway 175 (APN 007-003-78), 3675 State Highway 175 (APN 007-003-77), and 3715 State Highway 175 (APN 007-003-43), as depicted on Exhibit “A”, attached hereto and incorporated herein by reference, used by the City of Lakeport Municipal Sewer District (CLMSD) (“the Property”);
WHEREAS, Licensee is a not-for-profit association and has requested a license to construct and operate, at its own cost and on a non-commercial basis, trails throughout the Property for the purpose of horseback riding and hiking, along with related infrastructure, as described and depicted as the “Trails Park Area” in Exhibit “A” (the “Trails”); WHEREAS, Licensor is willing to permit Licensee to operate the Trailssubject to the terms, conditions, and limitations stated in this License.
NOW, THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged, the Licensor and Licensee agree as follows:
1. Grant of License. Licensor hereby grants to Licensee a non-exclusive, revocable license to use the Trails for the Permitted Use as set forth in Section 4, subject to the terms, conditions and limitations contained herein. Except as provided herein, the Licensee shall not use the Trails for any other purpose.
2. Licensee Representations. Licensee represents and declares that Licensee has the legal right as well as experience and professional skill to safely operate and use the Trails for the Permitted Use as set forth in Section 4.
3. Term. Subject to the termination provisions in Section 6, the term of this License shall be for a period commencing on June 1, 2026 and ending on June 1, 2056. Upon the expiration of this License, the parties may, but are under no obligation to, extend the term of this License. Any extension of this License shall be in writing signed by both parties following approval by Licensor. Licensor may revoke the License at any time for any reason, pursuant to Section 6 below.
4. Permitted Use. Licensee shall use the Trails for recreational horse trails and hiking and bicycling trails for public use. Licensee shall use and operate the Trails in compliance with the terms, conditions and limitations contained herein. Except as provided herein, Licensee shall not use the Trails for any other purpose. No other part of the Property shall be used by Licensee unless authorized in writing by Licensor.
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5. Conditions and Restrictions. This License is subject to the following terms, conditions and limitations:
a. Trails. Licensee may construct trails throughout the Property. However, before constructing any of the Trails, Licensor’s City Manager, or designee thereof, must approve the location, form, and size of all Trails. Licensee must submit written plans for the Trails to Licensor for advanced review and approval. After approval of any of the Trails, Licensee may not make any further alterations without the further written consent of Licensor. Trail design, construction, and maintenance shall minimize erosion, runoff, and disturbance to wildlife and livestock.
b. No Reimbursement. Licensor will not compensate Licensee for the cost of designing, constructing, or maintaining any of the Trails or any of the associated improvements constructed as part of the Trail system.
c. Improvements. Licensee shall be permitted, at its own cost, to design, create, and install signage for the Trails, provided such signage must be approved in advance in writing by Licensor’s City Manager or designee thereof. Licensee may also be permitted to install picnic tables, benches, or similar improvements, provided such improvements have been approved in advance in writing by Licensor’s City Manager or designee thereof. Licensee may not make any other improvements to the Property without the prior written consent of Licensor.
Licensee is solely responsible for all costs to design, construct, install, and maintain any and all improvements. Any alterations or improvements made to the Property will remain on the Property and/or be surrendered to Licensor, at no cost to Licensor, when this License terminates or expires. Licensee shall maintain all improvements in good condition and repair at all times during the term of this License, including but not limited to ensuring such improvements remain free from graffiti, vandalism, damage, and deterioration. Licensee shall promptly remove any graffiti and repair any damage to the improvements at the Licensee's sole cost and expense. All construction, maintenance, repairs, and cleaning shall be performed in a professional and workmanlike manner and in compliance with all applicable laws, regulations, and building codes. d. Access. Access to the Property will be via 3865 State Highway 175 using a gravel access road and an approved access point near Matthews Road. Licensee shall cause the roadway and parking area serving the Trails to be surfaced with adequate surfacing to reduce dust impacts to neighboring properties and the highway. Licensee shall be solely responsible for maintaining the access road and parking areas. Use of the roadway and parking area serving the Trails shall be open to the public generally.
e. Building and Operations. Licensee is solely responsible for constructing, maintaining, and operating the Trails. Licensee is solely responsible for all costs to operate and maintain the Trails as well as all costs to maintain any signage or improvements installed by Licensee on the Property. Licensee is solely responsible for maintaining and completing necessary replacement or repairs to existing boundary fencing on the Property, as well as installing any additional fencing or signage determined by Licensor to be necessary to protect CLMSD facilities, other authorized users of the Property, and/or adjacent properties. Notwithstanding the License Agreement Page 3
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foregoing, Licensee shall not be responsible for replacing or repairing the North-South hillside fencing existing on the Property, except to the extent that any such repair or replacement is made necessary due to damage caused by Licensee's acts, operations, or use of the Property. All construction, maintenance, and repairs shall be performed in a professional and workmanlike manner and in compliance with all applicable laws, regulations, and building codes. f. Property Restrictions. Licensee agrees to comply in all respects with Chapter 9.08 of the Lakeport Municipal Code except as expressly modified by the terms of this License. Licensee hereby accepts the Property as-is, subject to all conditions, covenants and restrictions of record, and all applicable zoning, municipal, county and state laws, ordinances, regulations, park policies and regulations, and any changes thereto, governing the use and occupancy of the Trails and the Property, including but not limited to any and all permit and land use entitlements required and/or granted by the County of Lake. Licensee shall not obtain or cause to be issued any permit, zone change or other entitlement that will be binding on Licensor or the Property. Licensee will be responsible for complying with all standards of health, sanitation, fire, housing, and safety as required by law. Licensee will obey all rules and regulations from Licensor, including use of the roadway and parking area located on the Property. g. In addition to any other act prohibited by this license, Licensee shall not do, commit, suffer, permit, nor allow upon the Property or Trails any act or thing which:
i. Will increase the existing rates of insurance on the Property or Trails;
ii. Will cause a cancellation of any policy of insurance covering the Property or Trails;
iii. Might be prohibited by the standard form of fire insurance policy; iv. Will constitute waste upon the Property or Trails;
v. Will create a nuisance upon the Property or Trails;
vi. Will cause the claims of mechanics, artisans, or materialmen to become a lien on the Property or Trails.
h. Licensor’s Rights. Licensee shall operate the Trails subject the following:
i. Licensor’s right to revoke this License Agreement with or without cause pursuant to Sections 3 and 6;
ii. Licensor’s rights to establish and enforce reasonable rules and regulations, such as opening/closing times, concerning the management, use, and operation of the Property and the Trails; License Agreement Page 4
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iii. Licensor’s right to disapprove any person, employee, or entity retained by Licensee to conduct or perform the Permitted Use on the Trails or the design, construction, or maintenance of Trails or authorized improvements;
iv. Licensor’s right to lease or license portions of the Property to third parties for other uses, including but not limited to cattle grazing and other open space or recreational uses;
v. Licensor’s right to temporarily close any portion of the Property or Trails for maintenance purposes, public health and safety, or for CLMSD operations;
vi. Licensor’s right to enter the Property at any time to show the Property to prospective purchasers or make inspections or repairs necessary for public safety;
vii. Licensor’s right to use the Property for wastewater treatment, storage, or disposal operations; and
viii. Licensor’s right to adjust the boundaries of the Property where the Trails are located.
i. Permits. Licensee is responsible for obtaining all permits, businesses licenses, and any other governmental authorizations required for Licensee’s use of the Trails.
Licensee shall be required to operate the Permitted Use subject to additional conditions imposed by other governmental agencies having jurisdiction over same. j. “As is” Condition. Licensee agrees that that it is accepting the Property “as is” without any representation or warranty by Licensor, or Licensor’s officers, officials, employees or agents, express, implied or statutory, except as expressly provided herein, as to:
i. the nature or condition of the Property, (including, without limitation, any design or natural defect of any kind or nature whatsoever);
ii. the Property’s and/or Trails’ fitness for Licensee’s intended use of same.
Licensee is, or prior to their use of the Property will be, familiar with the Property. Licensee is relying solely upon, and will have conducted, its own independent inspection, investigation, and analysis of the Property as it deems necessary or appropriate. k. Maintenance. Licensee shall maintain the Trails and any and all associated signage and improvements in a neat and orderly condition, free from litter, debris, graffiti, fallen limbs, and other rubbish or obstructions. During the term of this License, Licensee shall be License Agreement Page 5
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responsible for maintaining the Property and Trails in equal and/or better condition than their current condition. Breakdown or failure of any of Licensee’s property or equipment caused by normal wear-and-tear shall be the responsibility of Licensee and Licensee shall be solely responsible for its repair and/or replacement.
l. Anti-discrimination. Licensee shall neither discriminate nor permit discrimination against any person or group of persons on the grounds of race, sex, gender, creed, national origin, color, physical or mental disability as defined by law, religion, age, medical condition, marital status, ancestry, sexual orientation, or other protected basis. m. License Not a Lease. This License does not constitute a lease, but constitutes a mere non-exclusive, revocable license and Licensee is limited to the use of the Trails expressly and specifically described herein. Licensee disclaims any interest that when coupled with the License herein granted would render it irrevocable.
6. Termination. This Revocable License Agreement may be terminated by either party upon 30 days’ written notice delivered in the manner set forth in Section 14. Licensor may terminate this License immediately upon written notice delivered in the manner set forth in Section 14 if Licensor determines, in its sole discretion, that such termination is necessary for public health and safety or CLMSD operations. In the event of termination by either party, the Licensor will permit Licensee to enter the Property to recover Licensee’s personal property.
7. Indemnification. To the fullest extent permitted by law, Licensee shall indemnify, hold harmless, and defend Licensor, its officers, agents, employees and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person, whether physical, emotional, consequential or otherwise, and injury to any property arising out of or in connection with any and all use, operations, or activities conducted pursuant to the terms of this License, including, but not limited to, Licensee’s alleged negligence, recklessness or willful misconduct or other wrongful acts, errors or omissions of Licensee or any of its officers, employees, volunteers, servants, agents, subcontractors, or anyone directly or indirectly employed by either Licensee or its subcontractors, in the performance of this License or the Permitted Use or its failure to comply with any of its obligations contained in this License, except such loss or damage which is caused by the sole active negligence or willful misconduct of Licensor. Such costs and expenses shall include reasonable attorneys’ fees due to counsel of Licensor’s choice, expert fees and all other expenses of litigation. Licensee shall not be entitled to any refund of attorneys’ fees, defense costs or expenses in the event that it is adjudicated to have been non-negligent. Licensee acknowledges that Licensor would not enter into this License in the absence of Licensee’s commitment to indemnify and protect Licensor as set forth herein.
The parties agree that the covenants contained in this section 7 shall survive the expiration or termination of this License.
8. Fee for License. Licensee will pay Licensor $1 per year (the “License Fee”) for this License on or before the January 1 of each year this License is in effect.
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9. Insurance. Licensee shall maintain insurance as described in this section and shall require all of its subcontractors, consultants, and other agents to do the same. Approval of the insurance by the Licensor shall not relieve or decrease any liability of Licensee. a. Licensor will not execute this License until it has received a complete set of all required documentation of insurance coverage. However, failure to obtain the required documents prior to the work beginning shall not waive the Licensee’s obligation to provide them.
Licensee shall file with Licensor:
i. Certificate of Insurance, indicating companies acceptable to Licensor, with a Best’s Rating of no less than A:VII showing. The Certificate of Insurance must include the following reference:
Westside Community Horse Park.
ii. Documentation of Best’s rating acceptable to the Licensor. iii. Original endorsements effecting coverage for all policies required by this License.
iv. Complete, certified copies of all required insurance policies, including endorsements affecting the coverage.
b. Coverage Amounts. Insurance coverage shall be at least in the following minimum amounts:
• General Liability:
• General Aggregate: $2,000,000
• Products Comp/Op Aggregate $2,000,000
• Personal & Advertising Injury $1,000,000
• Each Occurrence $1,000,000
• Fire Damage (any one fire) $ 100,000
• Medical Expense (any 1 person) $ 10,000
• Workers’ Compensation:
• Workers’ Compensation Statutory Limits
• EL Each Accident $1,000,000
• EL Disease - Policy Limit $1,000,000
• EL Disease - Each Employee $1,000,000
Any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements or limits shall be available to the Licensor as additional insured. Furthermore, the requirements for coverage and limits shall be the greater of (i) the minimum coverage and limits specified in this License, or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured.
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The minimum coverages and policy forms specified in this Section 9 are subject to review at the end of every two (2) year period this License remains in effect. On such review, Licensor shall preliminarily determine whether it considers the coverage adequate in light of the value of money, the cost of coverage, the experience of the parties during the preceding two (2) years with respect to claims, actions, settlements, judgments and other matters relevant to the question of adequate insurance coverage. If Licensor determines that the coverage is not adequate, it shall specify the coverage requested in writing and Licensee shall continue to satisfy the requirements of this Section 9 by procuring and filing proof of such additional coverage as requested by Licensor. If Licensee does not agree, the parties shall attempt to settle the question by negotiation and appropriate modification of this Section 9. However, if the parties are unable to agree after hearing before the Lakeport City Council, the decision of the Lakeport City Council shall be final.
c. General Liability Insurance. Commercial General Liability Insurance shall be no less broad than ISO form CG 00 01. Coverage must be on a standard Occurrence form. ClaimsMade, modified, limited or restricted Occurrence forms are not acceptable. d. Worker’s Compensation Insurance. Licensee is aware of the provisions of Section 3700 of the Labor Code which requires every employer to carry Workers’ Compensation (or to undertake equivalent self-insurance) and shall maintain Worker’s Compensation insurance if and as required by the laws of the State of California. e. Subcontractors. Licensee shall require each of its subcontractors to maintain insurance coverage that meets all of the requirements of this License. Licensee agrees that if it does not keep the insurance coverages required by this License in full force and effect, Licensor may either (i) immediately terminate this License; or (ii) take out the necessary insurance and pay the premium(s) thereon at Licensee’s expense.
f. Proof of Renewal. Licensee shall provide proof that policies of insurance required by this License expiring during the term of this License have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.
g. Additional Insured Endorsements. The Licensor, its City Council, commissions, officers, and employees of Lakeport must be endorsed as an additional insured for each policy required herein, including the general liability and automobile policies for liability arising out of ongoing and completed operations by or on behalf of the Licensee. Licensee’s insurance policies shall be primary as respects any claims related to or as the result of the Licensee’s work or performance. Any insurance, pooled coverage or self-insurance maintained by the Licensor, its elected or appointed officials, directors, officers, agents, employees, volunteers, or consultants shall be non-contributory. All of the policies required under this License shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days’ prior written notice to Licensor. Licensee agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word License Agreement Page 8
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“endeavor” with regard to any notice provisions. All endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf. h. Failure to Maintain Coverage. In the event any policy is canceled prior to the termination or expiration of the term of this License and the Licensee does not furnish a new certificate of insurance prior to cancellation, Licensor has the right, but not the duty, to obtain the required insurance and deduct the premium(s) from any amounts due the Licensee under this License. Failure of the Licensee to maintain the insurance required by this License, or to comply with any of the requirements of this section, shall constitute a material breach of this License.
i. Notices. Licensee shall provide immediate written notice if (i) any of the required insurance policies is terminated; (ii) the limits of any of the required policies are reduced; (iii) or the deductible or self-insured retention is increased. Licensee shall provide no less than 30 days’ notice of any cancellation or material change to policies required by this License. Licensee shall provide proof that cancelled or expired policies of insurance have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages. The name and address for Additional Insured Endorsements, Certificates of Insurance and Notices of Cancellation is: City of Lakeport, Attn: City Clerk’s Office, 225 Park St., Lakeport, CA 95453. j. Licensee’s Insurance Primary. The insurance provided by Licensee, including all endorsements, shall be primary to any coverage available to Licensor. Any insurance or self-insurance maintained by Licensor and/or its officers, employees, agents or volunteers, shall be in excess of Licensee’s insurance and shall not contribute with it. k. Waiver of Subrogation. Licensee hereby waives all rights of subrogation against the Licensor. Licensee shall additionally waive such rights either by endorsement to each policy or provide proof of such waiver in the policy itself. Licensee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Licensor has received a waiver of subrogation endorsement from the insurer.
l. Report of Claims to Licensor. Licensee shall report to the Licensor, in addition to the Licensee’s insurer, any and all insurance claims submitted to Licensee’s insurer in connection with the services under this License.
m. Premium Payments and Deductibles. Licensee must disclose all deductibles and self-insured retention amounts to the Licensor. The Licensor may require Licensee to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within retention amounts. Ultimately, Licensor must approve all such amounts prior to execution of this License. Licensor has no obligation to pay any premiums, assessments, or deductibles under any policy required in this License. Licensee shall be responsible for all premiums and deductibles in all of Licensee’s insurance policies. The amount of deductibles for insurance coverage required herein are subject to Licensor’s approval.
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10. Environmental Matters. Licensee shall not cause, permit, or suffer any hazardous substances to be brought upon, kept, used, spilled or released in, on, under or about the Property or Trails. As used in this Section, “hazardous substances” shall mean any substance or material at the level defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous or toxic chemical, a hazardous, toxic or radioactive substance, petroleum or other similar term, by any federal, State or local environmental statute, regulation or ordinance presently in effect or that may be promulgated in the future, as such statutes, regulations and ordinances may be amended from time to time. In the event that the Licensee becomes aware of the release of any hazardous substances on, or other environmental condition, problem or liability with respect to, the Property or Trails, Licensee agrees to promptly notify Licensor in writing of such condition. Licensee further agrees to take actions to investigate and clean up the release of any hazardous substances on, or other environmental condition, problem, or liability affecting the Property or Trails promptly after Licensee becomes aware of any such condition and to keep Licensor advised in writing of all such actions taken by Licensee. The representations and warranties set forth in this Section 10 shall survive the expiration or termination of this License.
11. Default. In the event of a breach by Licensee of any of the terms of this License, all rights of Licensee hereunder shall cease and terminate, and in addition to all other rights it may have at law or in equity, Licensor may re-enter the Property and Trails and take possession thereof without notice, and may remove any and all persons therefrom, and may also revoke this License; and upon any such revocation, all rights of Licensee in and to the Property and Trails shall immediately cease and terminate.
12. Waiver. The waiver by Licensor of any breach by Licensee hereunder, or the failure on the part of Licensor to enforce any rights it may have hereunder, shall not constitute a waiver of any other or subsequent, similar, or different breaches, or a waiver of Licensor’s power to enforce such rights.
13. Taxes and Assessments. Licensee shall timely pay to the appropriate governmental authorities any and all applicable taxes and assessments, if any, imposed upon the Property by any authority having the power to tax or assess Licensee’s operation or the goods sold on the Trails, if any, during the term of this License.
14. Assignment. This License is personal to Licensee. Licensee agrees not to assign, sublet, sublease, sell, transfer, encumber, pledge or otherwise hypothecate any part of the Licensor Trails or Licensee’s interest herein to any entity without the prior written consent of Licensor. Any purported assignment by Licensee of this License shall be void and a basis for immediate termination of this License.
15. Notice. All notices, consents, requests, demands, approvals, waivers, and other communications desired or required to be given hereunder (referred to collectively as “notices”) shall be in writing and signed by the party so giving the notice, and shall be effectively given or served:
a. on the date of personal service upon the person to whom it is directed; or License Agreement Page 10
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b. on the date the notice is received or rejected provided it is sent prepaid, registered or certified mail, return receipt requested; or c. on the date the notice is delivered by a courier service to the address of the person to whom it is directed provided it is sent prepaid to the address of the person to whom it is directed. The addresses of the parties are:
To Licensor: CITY OF LAKEPORT
225 Park Street
Lakeport, CA 95453
Attn: City Manager
To Licensee: Westside Community Park
1350 Berry Street
Lakeport, CA 95453
Attn: Board Chairperson
Either party may, from time to time, change its address by giving written notice to the other party thereof in the manner outlined above.
16. Governing Law; Venue. This License shall be interpreted, enforced and governed by the laws of the State of California. Any legal action arising out of this License shall be filed and prosecuted in the Lake County Superior Court.
17. Severability. In case any one or more of the provisions contained in this License shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and the remainder of the provisions of this License shall continue in full force and effect without impairment.
18. Sole Agreement. This License constitutes the sole agreement between Licensor and Licensee with respect to the Trails.
19. No Partnership or Joint Venture. Licensor is not, and shall not be considered a partner or joint venture with Licensee by reason of this License. a. Under no circumstances shall Licensee or its employees look to Licensor as an employer. Licensee shall not be entitled to any benefits. Licensor makes no representation as to the effect of this independent contractor relationship on Licensee’s previously earned California Public Employees Retirement System (“CalPERS”) retirement benefits, if any, and Licensee specifically assumes the responsibility for making such a determination.
Licensee shall be responsible for all reports and obligations including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation, and other applicable federal and state taxes.
License Agreement Page 11
381471.8
b. In the event that Licensee or any employee, agent, or subcontractor of Licensee performing under this License claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of Licensor, Licensee shall indemnify, defend, and hold harmless Licensor for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Licensee or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of Licensor.
20. Counterparts. This License may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. The parties acknowledge and agree that this License may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. Without limitation, "electronic signature" shall include faxed or emailed versions of an original signature, electronically scanned and transmitted versions (e.g., via pdf) of an original signature, or a digital signature. [Signature page to follow.]
License Agreement Page 12
381471.8
IN WITNESS WHEREOF, each of the parties has caused its authorized representative to execute duplicate original counterparts of this License. “Licensor” “Licensee”
City of Lakeport Westside Community Park
By: __________________________ By:______________________________ Kevin Ingram, City Manager Name, Level of Officer e.g., President Date: _______________ Date: __________________
By: _______________________________
Name, Level of Officer e.g., Secretary
Date: __________________
Attest:
By:
Kelly Buendia, City Clerk
Date:
Approved as to form:
By:
David J. Ruderman, City Attorney
Date:
License Agreement Page 13
381471.8
EXHIBIT A
MAP OF THE PROPERTY AND TRAILS
Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
City of Lakeport, CA
I
Exhibit A
Westside Community Horse Park -- Site Map
Wastewater Treatment Plant &
Reservoir
Equestrian Center
(Future)
Non-Potable Water
Disposal Zone
Trails Park
Area
Non-Potable Water
Disposal Zone
Trailhead Location
(Approximate)
Vehicle Access
3865 State HWY 175
Trailhead Access Path
(Non-Vehicular)
Existing N/S
Hillside Fenceline
(Approximate)
New E/W Use
Separation
Fenceline
Parking Area
City Limit
Boundary
Note: Minimum 100 ft setback from
non-potable irrigation sprinklers
Meeting Date: 12/02/2025 Page 1 Agenda Item #VII.C.2.
425142.1
CITY OF LAKEPORT
City Council ☒
City of Lakeport Municipal Sewer District ☐
Lakeport Industrial Development Authority ☐
Municipal Financing Agency of Lakeport ☐
STAFF REPORT
RE: Lease Agreement with CLERC for Carnegie Library Education Center
MEETING DATE: 12/02/2025
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: ☐Information only ☒ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
The City Council is being asked to review and consider adoption of a lease agreement with CLERC that extends their use of the Carnegie Library for the operation of a water/wastewater testing laboratory and further authorizes development and operation of a public Environmental Education Center on the second floor.
BACKGROUND:
The Lakeport Carnegie Library is a culturally and architecturally significant 1918 structure built with grant funding from the Carnegie Corporation, one of 1,679 Carnegie libraries constructed nationwide between 1883 and 1929. Its central location near the lake and downtown makes it a key historic asset. The building served as Lakeport’s public library until the mid-1980s, and afterward saw limited or sporadic use, including as City office space and as a UC Davis Cooperative Extension research lab. In 2008, it was formally added to the National Register of Historic Places.
City Investments and Rehabilitation Efforts: Over the past decade, the City has undertaken substantial efforts to restore the building, address deferred maintenance, and bring it up to modern accessibility standards-- • 2014: The City secured a Community Development Block Grant (CDBG) to design accessibility improvements while maintaining historic character.
• 2017–2018: Approximately $250,000 in CDBG Program Income Reuse Funds supported installation of a LULA lift, ADA-compliant restrooms, ceiling replacement, lighting upgrades, and ADA access improvements at the south entry.
• 2023–2024: The City completed additional ceiling, lighting, and flooring upgrades totaling approximately $150,000.
• 2021: A lease was executed with CLERC to allow use of the basement for nonprofit administrative offices and operation of a certified water quality laboratory.
These investments have successfully brought the facility into a condition suitable for public use—restoring functionality and advancing the community’s long-standing goal that the building once again serve the public.
During public meetings and feasibility study work conducted in 2013–2014, community members consistently expressed their desire for the Carnegie Library to be reopened and made accessible for public benefit. The present proposal aligns strongly with that vision by returning the building to public use and creating a resource Meeting Date: 12/02/2025 Page 2 Agenda Item #VII.C.2.
425142.1
that informs, educates, and engages both residents and visitors in learning about Clear Lake, local ecology, and Lake County’s wildland fire history.
CLERC has continuously occupied the basement since December 2021, operating the only accredited microbiology lab in Lake County, conducting drinking water and wastewater testing, and supporting scientific research and environmental education efforts. Their continued tenancy has brought activity, investment, and stewardship to the building.
CLERC’S Education Center Development Efforts: CLERC has already invested substantial time and resources preparing concepts for interpretive exhibits, thematic zones, and public programming for the Education Center, possible exhibits include:
• Clear Lake ecology and watershed science
• Geology and environmental processes
• Local wildlife and native plants
• Cultural and natural history
• Wildland fire history and resilience
• Hands-on, interactive, science-based interpretive experiences CLERC’s model embraces adaptability—allowing the center to evolve with new research, community partnerships, and funding opportunities—while staying firmly grounded in the purpose of expanding public understanding of the Clear Lake ecosystem.
The proposed lease creates the conditions necessary for these concepts to be implemented over time in a manner that remains responsive to community needs.
DISCUSSION:
Staff Recommendation: City staff recommends the City Council approve the lease agreement with CLERC that extends their use of the Carnegie Library for the operation of a water/wastewater testing laboratory and further authorizes development and operation of a public Environmental Education Center on the second floor.
The entire proposed lease agreement is provided as Attachment 1 to this report, but the key components are summarized below:
• Term and Rent:
o Three-year term beginning January 1, 2026, with a right of first refusal for an additional three-year extension.
o Rent: $1.00 per month.
o The nominal rent is justified because the Education Center’s operation serves as the primary publicbenefit consideration for use of the second floor. • Public Benefit Performance Requirements
o Purpose and Consideration: CLERC will develop, operate, and maintain an Environmental Education Center open to the public. This operation is the fundamental consideration in lieu of monetary rent.
o Operational Ramp-Up: The three-year term is designated as an operational ramp-up period, allowing CLERC to gradually expand programming, partnerships, exhibits, and public access as capacity increases.
o Public Access Commitment: CLERC must provide ongoing public access to the Education Center, increasing over time through strategies such as:
Coordination with downtown and Library Park events
School partnerships and field trips
Community lectures, workshops, and environmental programming Meeting Date: 12/02/2025 Page 3 Agenda Item #VII.C.2.
425142.1
o Annual Performance Review: An annual review—conducted jointly by the City and CLERC to the City Council—will assess progress, ensure compliance, and adjust expectations.
Alignment with City Goals & The Carnegie Legacy: The proposed lease agreement directly advances multiple City Council priorities and formally fulfills several adopted goals for FY 2025/26. Most notably, the project achieves Economic Development Near-Term Goal ED-4, which calls for collaboration with the Clear Lake Environmental Research Center (CLERC) to “establish a publicly accessible environmental resource center within the historic Lakeport Carnegie Library Building.” This lease serves as the mechanism to activate that goal by authorizing CLERC’s development and operation of the Environmental Education Center on the second floor—returning this landmark facility to public use and educational purpose in a manner consistent with the community’s longstanding vision.
The project also directly aligns with and implements the City Manager’s FY 25/26 Budget Message emphasis on Public-Private Partnerships and Innovation, which highlights continued collaboration with CLERC to establish a publicly accessible environmental resource center at the Carnegie Library. This project exemplifies the City’s focus on adaptive reuse, sustainability, and strategic partnerships that revitalize historic assets while providing high-value public services. The Education Center will function as both an educational destination and an active research hub, attracting residents, students, and visitors while reinforcing Lakeport’s commitment to environmental stewardship and economic innovation.
More broadly, the proposed use supports the City’s overarching Economic Development goal to “enhance the historic downtown and lakefront area”. The Carnegie Library is one of Lakeport’s most recognizable historic structures—prominently located at the transition between the downtown core and the waterfront in Library Park. Reopening and repurposing the building as a public educational center strengthens downtown vibrancy, improves visitor-serving amenities, and leverages a unique historic asset to generate activity in the surrounding district. This strategic reuse contributes directly to the City’s efforts to activate public spaces, support tourism, and encourage reinvestment in the downtown and waterfront corridor.
Finally, the project strongly supports the enduring Carnegie Legacy, returning the building to its original purpose of expanding public knowledge and providing equitable educational opportunities. The Environmental Education Center carries forward this mission by offering accessible science-based learning related to Clear Lake, local ecology, geology, and wildland fire history—making the building once again a community center of curiosity, learning, and civic pride.
OPTIONS:
1. Approve the lease agreement with CLERC that extends their use of the Carnegie Library for the operation of a water/wastewater testing laboratory and further authorizes development and operation of a public Environmental Education Center on the second floor.
2. Deny approval of the proposed lease agreement and direct staff to notify CLERC that the City will not move forward with expanding their use of the Carnegie Library at this time.
3. Take no action at this time.
4. Provide alternative direction to staff.
ENVIRONMENTAL IMPACT:
The approval of this lease agreement is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 (Existing Facilities), as the leasing of an existing public structure and facility involving negligible expansion of existing or former use, and 15061(b)(3), as it can be seen with certainty that the lease will not have a significant effect on the environment.
FISCAL IMPACT:
Meeting Date: 12/02/2025 Page 4 Agenda Item #VII.C.2.
425142.1
☐ None ☒ $1.00 Budgeted Item? ☒Yes ☐ No
Budget Adjustment Needed? ☐Yes ☒ No If yes, amount of appropriation increase: $ Affected fund(s): ☐ General Fund ☐ Water OM Fund ☐ Sewer OM Fund ☐ Other:
Comments: The lease provides for $1.00 per month in rent, with public programming serving as additional consideration. Operating costs of the facility are assigned according to the lease terms. The City has already invested significant funds to restore the building’s accessibility and functionality; no new capital expenditures are proposed at this time.
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☐ Priority #3: Good Governance & Fiscal Stability
☒ Priority #4: Capital Infrastructure Improvement
☒ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☒ Priority #6: Economic Development
SUGGESTED MOTIONS:
Move to approve the lease agreement with the Clear Lake Environmental Research Center (CLERC), extending their use of the Carnegie Library for operation of the water and wastewater testing laboratory and authorizing development and public operation of the Environmental Education Center on the second floor, and to grant the City Manager authority to enter into and execute the agreement. ☒ Attachments: 1. Revised Lease Agreement – Laboratory & Operation of Environmental Education Center
2. Exhibit A—Site Plan
3. Current Lease Agreement – Operation of Laboratory only 377483.4 1
COMMERCIAL LEASE AGREEMENT
(Land + Improvements, Single Tenant)
THIS LEASE (this “Lease”) dated as of the ____ day of _________, 2025, is made by and between the CITY OF LAKEPORT, a municipal corporation (“Landlord”) and Clear Lake Environmental Research Center (CLERC), a California nonprofit corporation (“Tenant”).
IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Lease agree as follows:
Leased Premises
1. The Landlord agrees to rent to the Tenant a portion of the land and building described as 200 Park Street, Lakeport, California 95453 (the “Premises”) and further defined in the attached site plan noted as Exhibit A, incorporated herein by reference. The Premises will be used for only the following permitted use (the “Permitted Use”): nonprofit administrative offices, environmental education center, and water/wastewater testing laboratory. Neither the Premises nor any part of the Premises will be used at any time during the term of this Lease by the Tenant for any purpose other than the Permitted Use.
Term
2. The Term of the Lease is three (3) years commencing on January 1, 2026 (the “Commencement Date”) and expiring on December 31, 2028.
3. Upon 30 days’ notice, the Landlord may terminate the tenancy under this Lease if the Tenant has defaulted in the payment of any portion of the Rent when due.
4. Upon 30 days’ notice, the Landlord may terminate the tenancy under this Lease if the Tenant fails to observe, perform and keep each and every of the covenants, agreements, stipulations, obligations, conditions, and other provisions of this Lease to be observed, performed and kept by the Tenant and the Tenant persists in such default beyond the 30 days’ notice.
5. At the expiration of the Term of the Lease, Tenant shall have the right of first refusal to an additional three-year lease on substantially the same terms and conditions provided herein; provided that Tenant agrees to revisit the public access commitments under section 8 and cost allocations under section 16 below.
Public Benefit Performance Requirements
6. Purpose and Consideration: Tenant shall develop, operate, and maintain an Environmental Education Center (“Education Center”) open to the public. The 377483.4 2
operation of the Education Center shall constitute the primary consideration for the use of the second floor.
7. Operational Ramp-Up Period: The entire three-year Lease Term shall serve as an Operational Ramp-Up Period during which Tenant will gradually expand and increase the number of programming, partnerships, and opportunities for public access to the Education Center as capacity and resources allow. The intent of this period is to provide flexibility for Tenant to build programming capacity while ensuring steady progress toward a consistent and meaningful level of public engagement. Landlord and Tenant will work collaboratively to evaluate progress and identify opportunities for improvement during annual reviews throughout the Term.
8. Public Access Commitment: Tenant shall provide the public with opportunities to access the Education Center throughout the Term. The frequency and structure of public access shall increase over time as programs and partnerships grow.
Tenant shall explore and implement creative strategies for public engagement, including but not limited to:
• Coordinating public access opportunities in conjunction with community events occurring in the surrounding parklands and downtown area. • Partnering with local schools to host field trips, student projects, or youth education days.
• Developing a community lecture or workshop series that promotes environmental awareness, sustainability, and science education.
These activities are intended to provide meaningful and accessible educational opportunities for residents and visitors while promoting the Education Center as a valued community asset.
9. Quarterly Reporting: Tenant shall submit to Landlord a Quarterly Public Benefit Report within thirty (30) days of the end of each calendar quarter following the Commencement Date. Each report shall include:
• Number of public access days and total hours open to the public; • Estimated number of visitors;
• Description of events, workshops, or educational activities held; • Summary of staffing or volunteer participation;
• Partnerships with schools or community organizations; and • Notable accomplishments and/or operational challenges.
10. Annual Review: The parties shall conduct an Annual Performance Review beginning one (1) year after the Commencement Date and each year thereafter to assess progress, confirm compliance, and determine whether adjustments to access expectations, programming levels, or reporting requirements are appropriate. The review may include a joint walkthrough of the Premises and discussion of 377483.4 3
programming plans for the coming year. As part of this Annual Performance Review, Tenant shall provide a presentation to the Lakeport City Council at a public meeting thereof summarizing Tenant’s operations and performance under this Agreement during the previous year and Tenant’s anticipated activities and objectives for the following year.
11. Default for Nonperformance: Failure by Tenant to make reasonable progress toward, or to maintain, the public programming obligations described herein shall constitute a default under this Lease, subject to the notice and cure provisions of Section 46.
Rent
12. Subject to the provisions of this Lease, the Tenant will pay a base rent of (the “Base Rent”) of One Dollar ($1.00) per month for the Premises.
13. The Tenant will pay the Base Rent on or before the first of each month and every month of the Term of this Lease to the Landlord.
Notice of Possessory Interest
14. In accordance with California Revenue and Taxation Code section 107.6, subdivision (a), Landlord states that entering into this Lease may create a possessory interest subject to property taxes. Tenant or any other party in whom the possessory interest is vested shall pay taxes upon the assessed value of the entire Leased Premises share, not merely the assessed value of Tenant’s Estate.
Security Deposit
15. On execution of this Lease, Tenant shall deposit with Landlord $__1200__________ as a security deposit for the performance by Tenant of the provisions of this Lease. If Tenant is in default, Landlord can use the security deposit, or any portion of it, to cure the default or to compensate Landlord for all damage sustained by Landlord resulting from Tenant’s default. Tenant shall immediately on demand pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this paragraph so as to maintain the security deposit in the sum initially deposited with Landlord. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return the security deposit to Tenant. Landlord’s obligations with respect to the security deposit are those of a debtor and not a trustee. Landlord can maintain the security deposit separate and apart from Landlord’s general funds or can commingle the security deposit with Landlord’s general and other funds. Landlord shall not be required to pay Tenant interest on the security deposit.
Operating Costs
377483.4 4
16. In addition to the Base Rent and as Additional Rent, without setoff, abatement or deduction, except as provided below, the Tenant will pay all operating costs of the premises, including without limitation utilities (including electricity), taxes, interior maintenance, exterior maintenance, and insurance (the “Operating Costs”). Tenant shall pay all Operating Costs directly to the provider; any Operating Costs that are paid by Landlord shall be considered to be Additional Rent; provided, however, that for the Term of this Lease, water, sewer, and trash service for the Premises shall not be considered Additional Rent. The parties agree to revisit this allocation of costs prior to expiration of the Lease Term once the parties have data on the actual costs associated with the Tenant’s use of the Premises.
17. The Tenant will pay to the lawful taxing authorities, or to the Landlord, as it may direct as and when the same become due and payable, all taxes, rates, use fees, duties, assignments and other charges that are levied, rated, charged, or assessed against or in respect of all improvements, equipment and facilities of the Tenant or in default by the Tenant and in respect of any business carried on in the Premises or in respect of the use or occupancy of the Premises by the Tenant and every subtenant, licensee, concessionaire or other persons doing business or from the Premises or occupying any portion of the Premises.
Maintenance
18. Tenant Responsibilities
a. Interior Maintenance: Tenant, at its sole cost and expense, shall maintain, in good condition, all portions of the Premises, including, without limitation, all Tenant’s personal property and interior portions of the Premises, including but not limited to walls, floors, ceilings, doors, windows, lighting, fixtures, furnishings, and equipment, in a clean, safe, and sanitary condition and in good order and repair at all times.
b. Janitorial Services: Tenant shall be responsible for providing routine janitorial services, including regular cleaning, trash removal, and upkeep of restroom and common use areas located within the interior of the Premises. c. Reporting of Deficiencies: Tenant shall promptly notify Landlord in writing of any observed condition within the Premises or the building requiring repair or maintenance that falls under Landlord’s responsibility, as described in Section 19. Tenant shall take reasonable steps to prevent further damage or deterioration until such repair can be made.
d. Alterations or Repairs by Tenant: Tenant shall not make structural alterations or major repairs to the Premises without the prior written consent of Landlord. Routine maintenance and replacement of consumable items (such as light bulbs, air filters, etc.) shall be the responsibility of Tenant. 377483.4 5
19. Landlord Responsibilities
a. Exterior and Structural Maintenance: Landlord shall be responsible, at its sole cost and expense, for maintenance, repair, and replacement of the building’s exterior walls, roof, foundation, structural components, exterior lighting, parking areas, landscaping, and utility infrastructure serving the Premises.
b. Elevator Maintenance: Landlord shall maintain and service the elevator in good working order and in compliance with all applicable laws, regulations, codes and inspection requirements.
c. Building Systems: Landlord shall be responsible for the repair and maintenance of major building systems, including electrical, plumbing, HVAC, fire alarm, and security systems, except where damage is caused by the negligence or misuse of the Tenant, its agents, employees, volunteers, guests, or invitees.
d. Except as expressly provided above, Landlord shall not have any responsibility to maintain the Premises. Tenant waives the provisions of Civil Code sections 1941 and 1942 with respect to Landlord’s obligations for tenantability of the Premises and Tenant’s right to make repairs and deduct the expenses of such repairs from the Rent.
20. Coordination and Access
a. Tenant shall cooperate with Landlord and its contractors in scheduling and permitting access to the Premises for maintenance, inspection, or repair work. Landlord shall provide reasonable advance notice to Tenant, except in the case of emergencies requiring immediate entry.
b. Landlord shall use reasonable efforts to minimize disruption to Tenant’s operations during any maintenance, inspection, or repair activities.
21. Standard of Care: Both parties agree to exercise due care in the use and upkeep of the building and Premises, recognizing the shared intent to maintain the facility in a condition suitable for public use and community benefit.
Landlord’s Estimate
377483.4 6
22. The Landlord may, in respect of all the taxes and Operating Costs and any other items of Additional Rent referred to in this Lease compute bona fide estimates of the amounts which are anticipated to accrue in the next following lease year, calendar year, or fiscal year, or portion of such year, as the Landlord may determine most appropriate for each and all items of Additional Rent, and the Landlord may provide the Tenant with written notice and a reasonable breakdown of the amount of any such estimate and the Tenant, following receipt of such written notice of the estimated amount and breakdown will pay to the Landlord such amount, in equal consecutive monthly installments throughout the application period with the monthly installments of Base Rent.
23. With respect to any item of Additional Rent which the Landlord has not elected to estimate from time to time, the Tenant will pay to the Landlord the amount of such item of Additional Rent, determined under the applicable provisions of this Lease, immediately upon receipt of an invoice setting put such items of Additional Rent.
Within one hundred and twenty (120) days of the conclusion of each year of the term or a portion of a year, as the case may be, calendar year or fiscal year, for which the Landlord has estimated any item of Additional Rent, the Landlord will compute the actual amount of such item of Additional Rent, and make available to the Tenant for examination a statement providing the amount of such item of Additional Rent and the calculation of the Tenant’s share of that Additional Rent for such year or portion of such year.
24. If the actual amount of such items of Additional Rent, as set out in any such statement, exceeds the aggregate amount of the installment paid by the Tenant in respect of such item, the Tenant will pay to the Landlord the amount of excess within fifteen (15) days of receipt of any such statement. If the contrary is the case, any such statement will be accompanied by a refund to the Tenant of any such overpayment without interest, provided that the Landlord may first deduct from such a refund on any rent which is then in the arrears.
Use and Occupation
25. The Tenant will use and occupy the Premises only for the Permitted Use and for no other purpose whatsoever.
26. The Tenant covenants that the Tenant will carry on and conduct its business from time to time carried on upon the Premises in such manner as to comply with all statutes, bylaws, rules and regulations of any federal, provincial, municipal or other competent authority and will not do anything on or in the Premises in contravention of any of them.
27. The Tenant will not make any improvements to the Premises without the prior written consent and authorization of the Landlord. Tenant shall pay all costs for construction or improvements done by it or caused to be done by it on the Premises and shall keep the Premises free and clear of all mechanic’s liens resulting from construction done by or for the Tenant.
377483.4 7
28. The Landlord covenants that on paying the Rent and performing the covenants contained in this Lease, the Tenant will have, hold and full use of the Premises for the agreed Term.
29. The parties hereto agree that the Landlord shall have the right to use the second floor of the Premises as well as the first floor restrooms for municipal purposes without cost to the Landlord. Landlord agrees that it will give reasonable notice of its desire to use the aforementioned areas of the Premises. Landlord agrees to clean the Premises within 24 hours of municipal use to a state as clean as before the municipal use. If the aforementioned areas of the Premises are already reserved by the Tenant or a Short-Term Tenant, the Landlord may not use the Premises, excepting during an emergency or by reason of an emergency.
Environmental Matters
30. The Tenant hereby represents and warrants that:
a. The Tenant has not been informed of, nor does the Tenant have any knowledge of (i) the presence of any Hazardous Substances (as defined below) on the Premises, or (ii) any spills, releases, threatened releases, discharges or disposals of Hazardous Substances that have occurred or are presently occurring on or onto the Premises, or (iii) any spills or disposals of Hazardous Substances that have occurred or are presently occurring on any other properties as a result of any construction on or operation and use of the Premises.
b. In connection with the operation and use of any of the Premises, the Tenant has no knowledge of any failure to comply with any applicable local, state or federal environmental laws, regulations, ordinances and administrative and judicial orders relating to the generation, treatment, recycling, reuse, sale, storage, handling, transport and disposal of any Hazardous Substances. c. In the event that the Tenant becomes aware of the release of any Hazardous Substances on, or other environmental condition, problem or liability with respect to, the Premises, the Tenant agrees to promptly notify the Landlord in writing of such condition. The Tenant further agrees to take actions to investigate and clean up the release of any Hazardous Substances on, or other environmental condition, problem or liability affecting the Premises promptly after the Tenant becomes aware of any such condition and to keep the Landlord advised in writing of all such actions taken by the Tenant. d. As used in this Section, “Hazardous Substances” shall mean any substance or material at the level defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous or toxic chemical, a hazardous, toxic or radioactive substance, petroleum or other similar term, by any federal, State or local environmental statute, regulation or ordinance presently in 377483.4 8
effect or that may be promulgated in the future, as such statutes, regulations and ordinances may be amended from time to time.
e. The representations and warranties set forth in this Section shall survive the expiration or termination of this Lease.
Alterations
31. Tenant shall not make any alterations to the Premises without Landlord’s prior written consent. Any alterations made shall remain on and be surrendered with the Premises on expiration or termination of the term, except that Landlord can elect within 30 days before expiration of the term, or within 5 days after termination of the term, to require Tenant to remove any alterations that Tenant has made to the Premises. If Landlord so elects, Tenant at its cost shall restore the Premises to the condition designated by Landlord in its election, before the last day of the term, or within 30 days after notice of election is given, whichever is later.
32. If Tenant makes any alterations to the Premises as provided in this paragraph, the alterations shall not commence until (a) Tenant has received written consent from Landlord for such alterations, and (b) Landlord has posted and recorded an appropriate notice of nonresponsibility.
33. Tenant shall pay all costs for construction done by it or caused to be done by it on the Premises as permitted by this Lease. Tenant shall keep the Premises free and clear of all mechanics’ liens resulting from construction done by or for Tenant.
Tenant shall have the right to contest the correctness or the validity of any such lien if, immediately on demand by Landlord, Tenant procures and records a lien release bond issued by a corporation authorized to issue surety bonds in California in an amount equal to one and one-half times the amount of the claim of lien. The bond shall meet the requirements of Civil Code section 3143 and shall provide for the payment of any sum that the claimant may recover on the claim (together with costs of suit, if it recovers in the action).
34. Tenant may not change or add any lock to the Premises without obtaining Landlord’s prior written consent and without providing Landlord with the key(s) to the changed or added lock(s)
Records & Inspections
35. Tenant shall maintain complete and accurate books, accounts, records, and files related to its performance under this Lease, including but not limited to financial records, operational reports, maintenance logs, incident reports, insurance documentation, and correspondence pertaining to the Center, Premises, or the Tenant’s obligations hereunder. All such records shall be maintained in accordance with generally accepted accounting principles and retained for a minimum of three (3) calendar years following the termination or expiration of this Lease, or for such longer period as may be required by applicable law. Landlord shall have the right to inspect, audit, and copy any and all books, accounts, records, and files maintained by 377483.4 9
the Tenant relating to this Lease upon reasonable prior written notice during normal business hours. Tenant shall provide full access to such records and shall cooperate with any such inspection or audit.
36. Tenant acknowledges that Landlord is a public entity subject to the California Public Records Act (California Government Code Section 7920.000, et seq. ("CPRA").
Tenant agrees to produce and provide to Landlord, in a timely manner and in the format requested, any and all records, documents, or information in the Tenant's possession or control that are necessary for the Landlord to comply with its obligations under the CPRA, including responses to public records requests.
37. At all reasonable times during the term of this Lease and any renewal of this Lease, the Landlord and its agents may enter the Premises to make inspections or repairs, or to show the Premises to prospective Tenants or purchasers.
Severability
38. If there is a conflict between any provisions of the Lease and the applicable legislation of the State of California (the “Act”), the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporate in this Lease.
Care and Use of Premises
39. The Tenant will promptly notify the Landlord of any damage, or of any situation that may significantly interfere with the normal use of the Premises or to any furnishings supplied by the Landlord.
40. The Tenant will comply with standards of health, sanitation, fire, housing and safety as required by law.
41. At the expiration of the Lease term, the Tenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements expected.
42. The Tenant will not keep or have on the premises any article or thing of a dangerous, flammable, or explosive character that might unreasonably increase the danger of fire
43. The Tenant will obey all rules and regulations posted by the Landlord regarding the use and care of the Premises, parking lot and other common facilities, if any, that are provided for the use of the Tenant in, around and on the Premises.
44. Negation of Partnership: Landlord shall not become or be deemed a partner or a joint venture with Tenant by reason of the provisions of this Lease. Except as Landlord may specify in writing, Tenant shall have no authority, express or implied, to act on behalf of Landlord in any capacity whatsoever as an agent. This Lease does not grant to the Tenant any authority, express or implied, to bind the Landlord to any obligation 377483.4 10
whatsoever. Nothing in this Lease shall be interpreted as creating a partnership, joint venture, or relationship of principal and agent between the Parties. Under no circumstances shall Tenant or its employees look to Landlord as an employer. Tenant shall not be entitled to any benefits. Landlord makes no representation as to the effect of this independent contractor relationship on Tenant’s previously earned California Public Employees Retirement System (“CalPERS”) retirement benefits, if any, and Tenant specifically assumes the responsibility for making such a determination. Tenant shall be responsible for all reports and obligations including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation, and other applicable federal and state taxes. In the event that Tenant or any employee, agent, consultant or contractor of Tenant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of Landlord, Tenant shall indemnify, defend, and hold harmless Landlord for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Tenant or its employees, agents, consultants or contractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of Landlord.
Indemnity
45. Except for Landlord’s gross negligence or willful misconduct, Tenant shall indemnify, protect, defend and hold harmless the Premises, Landlord and its officers, officials, employees, agents, and volunteers, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Tenant, including any release or storage of Hazardous Substances (as defined above) by Tenant. If any action or proceeding is brought against Landlord by reason of any of the foregoing matters, Tenant shall upon notice defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord and Landlord shall cooperate with Tenant in such defense. Landlord need not have first paid any such claim in order to be defended or indemnified.
Insurance
46. Tenant shall, throughout the duration of this Lease, secure and maintain insurance to cover Tenant (including its agents, representatives, and employees) in connection with Tenant’s performance under this Lease. This Lease identifies the required minimum levels of insurance coverage which Tenant shall obtain; however, Tenant may carry, at its own expense, any additional insurance it deems to be necessary or prudent. Prior to the commencement of any performance under this Lease, Tenant shall furnish to Landlord written proof of insurance (certificates and endorsements), in a form acceptable to Landlord. Tenant shall provide subsequent written proof of insurance no later than 30 days prior to the expiration date of any insurance policy required by this Lease. Tenant shall maintain insurance that complies with the following requirements:
377483.4 11
a. Workers’ Compensation Insurance with statutory limits and employer’s liability insurance with limits of not less than one million dollars ($1,000,000) per accident.
b. Tenant shall take out and maintain, at Tenant’s sole expense, Public Liability Insurance with coverage in the amount of $ 1,000,000.00 for one person and 1,000,000.00 for one accident with bodily injury and $ 1,000,000.00 for property damage.
c. Tenant’s insurance will not be canceled, limited, or allowed to expire without renewal until after 30 days’ advance written notice of any such cancellation, limitation or expiration has been given to Landlord.
d. All insurance companies providing coverage to Tenant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California. e. All of the insurance policies required to be obtained by Tenant under this Section shall be with companies and policies whose form is satisfactory and acceptable to Landlord. Each policy shall designate the City of Lakeport.
Including its officers, officials, employees, agents, and volunteers, as an additional named insured. Tenant shall provide Landlord with certificates of insurance (hereinafter “Certificates”) issued by each of the insurance companies issuing any of the policies required pursuant to this Section, and said Certificates shall provide that the insurance issued thereunder shall not be altered or canceled until after 30 days’ written notice to Landlord. In the event Tenant fails to take out or maintain any of the insurance required pursuant to this Section, Landlord shall have the right to obtain said policies in form and with companies acceptable to Landlord, and to pay any premiums due thereon. The total amount of any insurance premiums paid by Landlord on Tenant’s behalf shall be paid by Tenant to Landlord upon demand, and said amounts shall start to bear interest at the rate of ten percent (10%) per annum as of the date of Landlord’s demand for payment by Tenant.
f. Tenant hereby waives all rights of subrogation against Landlord. Tenant shall additionally waive such rights either by endorsement to each policy or provide proof of such waiver in the policy itself.
g. Tenant shall report to Landlord, in addition to Tenant’s insurer, any and all insurance claims submitted to Tenant’s insurer in connection with this Lease. h. Tenant’s duties to defend and indemnify Landlord under this Lease shall not be limited by the foregoing insurance requirements and shall survive the expiration or termination of this Lease.
Prohibition Against Voluntary Assignment, Subletting, and Encumbering 377483.4 12
47. Tenant shall not voluntarily assign or encumber its interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant’s authorized representatives) to occupy or use all or any part of the Premises, without first obtaining Landlord’s written consent. Any assignment, encumbrance, or sublease without Landlord’s written consent shall be voidable and, at Landlord’s election, shall constitute a default. No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this paragraph.
a. If Tenant is a partnership, a withdrawal or change, voluntary, involuntary, or by operation of law, of the partner or partners owning 50% or more of the partnership, or the dissolution of the partnership, shall be deemed a voluntary assignment.
b. If Tenant consists of more than one person, a purported assignment, voluntary, involuntary, or by operation of law, from a majority of persons to the others shall be deemed a voluntary assignment.
c. If Tenant is a corporation, any dissolution, merger, consolidation, or other reorganization of Tenant, or the sale or other transfer of a controlling percentage of the capital stock of Tenant, or the sale of at least 51% of the value of the assets of Tenant, shall be deemed a voluntary assignment. The phrase “controlling percentage” means the ownership of, and the right to vote, stock possessing at least 51% of the total combined voting power of all classes of Tenant’s capital stock issued, outstanding, and entitled to vote for the election of directors. This paragraph shall not apply to corporations the stock of which is traded through an exchange or over the counter.
Default
48. The occurrence of any of the following shall constitute a default by Tenant:
a. Failure to pay rent when due, if the failure continues for 10 days after notice has been given to Tenant.
b. Abandonment and vacation of the Premises (failure to occupy and operate the Premises for 30 consecutive days shall be deemed an abandonment and vacation).
c. Failure to perform any other provision of this Lease if the failure to perform is not cured within 30 days after notice has been given to Tenant. If the default cannot reasonably be cured within 30 days, Tenant shall not be in default of this Lease if Tenant commences to cure the default within the 30- day period and diligently and in good faith continues to cure the default. d. Notices given under this paragraph shall specify the alleged default and the applicable lease provisions, and shall demand that Tenant perform the provisions of this Lease or pay the rent that is in arrears, as the case may be, 377483.4 13
within the applicable period of time, or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this Lease unless Landlord so elects in the notice.
e. The purpose of the notice requirements set forth in this paragraph is to extend the notice requirements of the unlawful detainer statutes of California.
49. Landlord’s Remedies.
a. Cumulative Nature of Remedies. Landlord shall have the following remedies if Tenant commits a default. These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law. b. Tenant’s Right to Possession Not Terminated. Landlord can continue this Lease in full force and effect, and the Lease will continue in effect as long as Landlord does not terminate Tenant’s right to possession, and Landlord shall have the right to collect rent when due. During the period Tenant is in default, Landlord can enter the Premises and relet them, or any part of them, to third parties for Tenant’s account. Tenant shall be liable immediately to Landlord for all costs Landlord incurs in reletting the Premises, including, without limitation, brokers’ commissions, expenses of remodeling the Premises required by the reletting, and like costs. Reletting can be for a period shorter or longer than the remaining term of this Lease. Tenant shall pay to Landlord the rent due under this Lease on the dates the rent is due, less the rent Landlord receives from any reletting. No act by Landlord allowed by this paragraph shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to terminate this Lease. After Tenant’s default and for as long as Landlord does not terminate Tenant’s right to possession of the Premises, if Tenant obtains Landlord’s consent Tenant shall have the right to assign or sublet its interest in this Lease, but Tenant shall not be released from liability. Landlord’s consent to a proposed assignment or subletting shall not be unreasonably withheld.
c. If Landlord elects to relet the Premises as provided in this paragraph, rent that Landlord receives from reletting shall be applied to the payment of:
i. First, any indebtedness from Tenant to Landlord other than rent due from Tenant;
ii. Second, all costs, including for maintenance, incurred by Landlord in reletting;
iii. Third, rent due and unpaid under this Lease. After deducting the payments referred to in this paragraph, any sum remaining from the rent Landlord receives from reletting shall be held by Landlord and applied in payment of future rent as rent becomes due under this Lease. In no event shall Tenant be entitled to any excess rent 377483.4 14
received by Landlord. If, on the date rent is due under this Lease, the rent received from the reletting is less than the rent due on that date, Tenant shall pay to Landlord, in addition to the remaining rent due, all costs, including for maintenance, Landlord incurred in reletting that remain after applying the rent received from the reletting as provided in this paragraph.
d. Termination of Tenant’s Right to Possession. Landlord can terminate Tenant’s right to possession of the Premises if Tenant commits a default of the covenants of this Lease. No act by Landlord other than giving notice to Tenant shall terminate this Lease. Acts of maintenance, efforts to relet the Premises, or the appointment of a receiver on Landlord’s initiative to protect Landlord’s interest under this Lease shall not constitute a termination of Tenant’s right to possession. On termination, Landlord has the right to recover from Tenant:
i. The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease;
ii. The worth, at the time of the award, of the amount by which the unpaid rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided;
iii. The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and
iv. Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant’s default. v. The “worth, at the time of the award,” as used in i. and ii. of this paragraph, is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. “The worth, at the time of the award,” as referred to in iii. of this paragraph, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1%.
e. Landlord’s Right to Cure Tenant’s Default. Landlord, at any time after Tenant commits a default, can cure the default at Tenant’s cost. If Landlord at any time, by reason of Tenant’s default, pays any sum or does any act that requires the payment of any sum, the sum paid by Landlord shall be due immediately from Tenant to Landlord at the time the sum is paid, and if paid at a later date shall bear interest at the maximum rate an individual is permitted by law to charge from the date the sum is paid by Landlord until 377483.4 15
Landlord is reimbursed by Tenant. The sum, together with interest on it, shall be Additional Rent.
Landlord’s Default and Tenant’s Remedies
50. Landlord shall not be deemed to be in default of its obligations unless Landlord fails to perform any covenant, condition, or agreement contained in this Lease and fails to cure the nonperformance within a reasonable time, but not later than thirty (30) days after receiving written notice of the failure, provided, however, that if the nature of Landlord’s failure to perform reasonably requires more than thirty (30) days to cure, then Landlord shall not be deemed in default if Landlord commences to cure such failure within said thirty (30) day period and thereafter diligently and in good faith prosecutes such cure to completion. In addition, Tenant may terminate this Lease if the uncured default substantially interferes with the operation of Tenant’s business.
Notices
51. All notices that are required to be given by one party to the other under this Lease shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited with the United States Post Office for delivery by registered or certified mail addressed to the parties at the following addresses, unless such addresses are changed by notice, in writing, to the other party.
If to Landlord:
City Manager
City of Lakeport
225 Park Street
Lakeport, CA 95453
If to Tenant:
Executive Director
Clear Lake Environmental Research Center
PO Box 636
Lakeport, CA 95453
Mediation
52. Landlord and Tenant agree to mediate any dispute or claim arising between them out of this Lease, or any resulting transaction, before resorting to arbitration or court action in relation to any such dispute or claim. Mediation fees, if any shall be divided evenly among the parties involved. If, for any dispute or claim to which this paragraph applies, any party commences a court action without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorneys’ fees in relation to the dispute or claim even if they would be available to that party in any such action under section 55 below or otherwise.
Entire Agreement
53. This Lease constitutes the entire agreement between the parties with respect to the subject matter covered by this Lease and supersedes all prior understanding and 377483.4 16
agreements, whether written or oral, between the parties hereto relating to the same subject matter.
Governing Law
54. It is the intention of the parties to the Lease that the tenancy created by this Lease and the performance under this Lease, and all suits and special proceedings under this Lease, be construed in accordance with and governed, to the exclusion of the law of any other forum, by the laws of the State of California, without regard to the jurisdiction in which any action or special proceeding may be instituted. Tenant will be responsible to pay all costs associated with enforcement of the terms of this Lease including any legal proceedings undertaken in regards to the Lease. The parties agree that venue of any action or proceeding arising under this Lease or the performance thereof shall be heard in the Superior Court of the County of Lake.
General Provisions
55. If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorneys’ fees and costs of suit.
56. Any waiver by the Landlord of any failure by the Tenant to perform or observe the provisions of this Lease will not operate as a waiver of the Landlord’s rights under this Lease in respect of any subsequent defaults, breaches or nonperformance and will not defeat or affect in any way the Landlord’s rights in respect of any subsequent default or breach.
57. This Lease will extend to and be binding upon and inure to the benefit of the respective administrators, successors and assigns, as the case may be, of each party to this Lease. All covenants are to be construed as conditions of this Lease.
58. All sums payable by the Tenant to the Landlord pursuant to any provision of this Lease will be deemed to be Additional Rent and will be recovered by the Landlord as rental arrears.
59. Tenant shall not discriminate against any person in relation to Tenant’s performance under this Lease (including any employee or applicant) on the basis of race, color, religious creed, national origin, ancestry, disability as defined by law, medical condition, marital status, sexual orientation, sex, or other protected basis.
60. If any term or provision of this Lease is found by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction, the invalidity, illegality or unenforceability shall not affect any other term or provision of this Lease. Upon a determination that any term or provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Lease to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 377483.4 17
61. Any, and all of the covenants, terms, and conditions hereof, shall be binding upon, and inure to the benefit of, the Tenant, the Landlord, and their respective successors and assigns.
62. The persons executing this Lease on behalf of the Parties hereto warrant that they are duly authorized to execute this Lease on behalf of said Parties and that by so executing this Lease the Parties are formally bound to the provisions of this Lease.
63. No right or remedy provided under this Lease is intended to be exclusive of any other right or remedy hereof provided by law or equity. Each right and each remedy shall be cumulative and in addition to every other right or remedy provided under this Lease now or hereafter existing at law, in equity or by statute.
64. This Lease benefits solely the Parties to this Lease and their respective permitted successors and assigns and nothing in this Lease, express or implied, confers on any other person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Lease.
65. The section headings and subheadings contained in this Lease are included for convenience only and shall not limit or otherwise affect the terms of this Lease.
66. This Lease may be executed in two or more identical counterparts and delivered by facsimile or by .pdf or other comparable electronic format, with the same force and effect as if all required signatures were contained in a single, original instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Lease of the day and year first above written.
LANDLORD
CITY OF LAKEPORT, a municipal corporation
By:
Name:
Its:
ATTEST:
_________________________
Kelly Buendia, City Clerk
APPROVED AS TO FORM:
_____________________________
David J. Ruderman, City Attorney
TENANT
377483.4 18
CLEAR LAKE ENVIRONMENTAL RESEARCH
CENTER, a California Nonprofit Corporation
By:
Name:
Its:
Exhibit A
Site Plan
FIRST FLOOR PLAN
SECOND FLOOR PLAN
CLERC Environmental Education Center
1 268069.3
COMMERCIAL LEASE AGREEMENT
(Land + Improvements, Single Tenant)
THIS LEASE (this “Lease”) dated as of the 2nd day of December, 2021, is made by and between the CITY OF LAKEPORT, a municipal corporation (“Landlord”) and Clear Lake Environmental Research Center (CLERC), a California nonprofit corporation (“Tenant”).
IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Lease agree as follows:
Leased Premises
1. The Landlord agrees to rent to the Tenant a portion of the land and building described as 200 Park Street, Lakeport, California 95453 (the “Premises”) and further defined in the attached site plan noted as Exhibit A. The Premises will be used for only the following permitted use (the “Permitted Use”): nonprofit administrative offices and water/wastewater testing laboratory. Neither the Premises nor any part of the Premises will be used at any time during the term of this Lease by the Tenant for any purpose other than the Permitted Use.
Term
2. The Term of the Lease is ___1____ year(s) commencing on (date) and expiring on ___________________.
3. Upon 30 days’ notice, the Landlord may terminate the tenancy under this Lease if the Tenant has defaulted in the payment of any portion of the Rent when due.
4. Upon 30 days’ notice, the Landlord may terminate the tenancy under this Lease if the Tenant fails to observe, perform and keep each and every of the covenants, agreements, stipulations, obligations, conditions, and other provisions of this Lease to be observed, performed and kept by the Tenant and the Tenant persists in such default beyond the 30 days’ notice.
5. At the expiration of the Term of the Lease, Tenant shall have the right of first refusal to an additional one-year lease on the same terms and conditions provided herein; provided that Tenant agree to revisit cost allocation under section 10 below; and provided further that Tenant agree to lease the remaining portions of the building excluded from the Premises, as defined above, including but not limited to the second floor of the building for use as a public information and educational center.
Rent
6. Subject to the provisions of this Lease, the Tenant will pay a base rent of (the “Base Rent”) of $850 per month for the Premises.
2 268069.3
7. The Tenant will pay the Base Rent on or before the first of each month and every month of the Term of this Lease to the Landlord.
Notice of Possessory Interest
8. In accordance with California Revenue and Taxation Code section 107.6, subdivision (a), Landlord states that entering into this Lease may create a possessory interest subject to property taxes. Tenant or any other party in whom the possessory interest is vested shall pay taxes upon the assessed value of the entire Leased Premises share, not merely the assessed value of Tenant’s Estate.
Security Deposit
9. On execution of this Lease, Tenant shall deposit with Landlord $__1200__________ as a security deposit for the performance by Tenant of the provisions of this Lease. If Tenant is in default, Landlord can use the security deposit, or any portion of it, to cure the default or to compensate Landlord for all damage sustained by Landlord resulting from Tenant’s default. Tenant shall immediately on demand pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this paragraph so as to maintain the security deposit in the sum initially deposited with Landlord. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return the security deposit to Tenant. Landlord’s obligations with respect to the security deposit are those of a debtor and not a trustee. Landlord can maintain the security deposit separate and apart from Landlord’s general funds or can commingle the security deposit with Landlord’s general and other funds. Landlord shall not be required to pay Tenant interest on the security deposit.
Operating Costs
10. In addition to the Base Rent and as Additional Rent, without setoff, abatement or deduction, except as provided below, the Tenant will pay all operating costs of the premises, including without limitation utilities (other than electricity, water, sewer, and trash service), taxes, interior maintenance, exterior maintenance, and insurance (the “Operating Costs”). Tenant shall pay all Operating Costs directly to the provider; any Operating Costs that are paid by Landlord shall be considered to be Additional Rent; provided, however, that for the Term of this Lease, electricity, water, sewer, and trash service for the Premises shall not be considered Additional Rent and shall be Landlord’s responsibility. The parties agree to revisit this allocation of costs prior to expiration of the Lease Term once the parties have data on the actual costs associated with the Tenant’s use of the Premises.
11. The Tenant will pay to the lawful taxing authorities, or to the Landlord, as it may direct as and when the same become due and payable, all taxes, rates, use fees, duties, assignments and other charges that are levied, rated, charged, or assessed against or in respect of all improvements, equipment and facilities of the Tenant or in default by the Tenant and in respect of any business carried on in the Premises or in respect 3 268069.3
of the use or occupancy of the Premises by the Tenant and every subtenant, licensee, concessionaire or other persons doing business or from the Premises or occupying any portion of the Premises.
Maintenance
12. Landlord at its cost shall maintain, in good condition, the structural parts of the building and other improvements that are a part of the Premises, which structural parts include only the foundations, bearing and exterior walls (excluding glass and doors), subflooring, roof (excluding skylights), and second-floor ceiling; the elevator system; the unexposed electrical, plumbing, and sewage systems, including, without limitation, those portions of the systems lying outside the premises; heating, ventilating, and air-conditioning system servicing the Premises.
13. Except as provided in the prior paragraph, Tenant at its cost shall maintain, in good condition, all portions of the Premises, including, without limitation, all Tenant’s personal property, signs, storefronts, plate glass, and show windows. Tenant at its cost shall maintain the premises in good condition.
14. Except as expressly provided above, Landlord shall not have any responsibility to maintain the Premises. Tenant waives the provisions of Civil Code sections 1941 and 1942 with respect to Landlord’s obligations for tenantability of the Premises and Tenant’s right to make repairs and deduct the expenses of such repairs from the Rent.
Landlord’s Estimate
15. The Landlord may, in respect of all the taxes and Operating Costs and any other items of Additional Rent referred to in this Lease compute bona fide estimates of the amounts which are anticipated to accrue in the next following lease year, calendar year, or fiscal year, or portion of such year, as the Landlord may determine most appropriate for each and all items of Additional Rent, and the Landlord may provide the Tenant with written notice and a reasonable breakdown of the amount of any such estimate and the Tenant, following receipt of such written notice of the estimated amount and breakdown will pay to the Landlord such amount, in equal consecutive monthly installments throughout the application period with the monthly installments of Base Rent.
16. With respect to any item of Additional Rent which the Landlord has not elected to estimate from time to time, the Tenant will pay to the Landlord the amount of such item of Additional Rent, determined under the applicable provisions of this Lease, immediately upon receipt of an invoice setting put such items of Additional Rent.
Within one hundred and twenty (120) days of the conclusion of each year of the term or a portion of a year, as the case may be, calendar year or fiscal year, for which the Landlord has estimated any item of Additional Rent, the Landlord will compute the actual amount of such item of Additional Rent, and make available to the Tenant for examination a statement providing the amount of such item of Additional Rent 4 268069.3
and the calculation of the Tenant’s share of that Additional Rent for such year or portion of such year.
17. If the actual amount of such items of Additional Rent, as set out in any such statement, exceeds the aggregate amount of the installment paid by the Tenant in respect of such item, the Tenant will pay to the Landlord the amount of excess within fifteen (15) days of receipt of any such statement. If the contrary is the case, any such statement will be accompanied by a refund to the Tenant of any such overpayment without interest, provided that the Landlord may first deduct from such a refund on any rent which is then in the arrears.
Use and Occupation
18. The Tenant will use and occupy the Premises only for the Permitted Use and for no other purpose whatsoever.
19. The Tenant covenants that the Tenant will carry on and conduct its business from time to time carried on upon the Premises in such manner as to comply with all statutes, bylaws, rules and regulations of any federal, provincial, municipal or other competent authority and will not do anything on or in the Premises in contravention of any of them.
20. The Tenant will not make any improvements to the Premises without the prior written consent and authorization of the Landlord. Tenant shall pay all costs for construction or improvements done by it or caused to be done by it on the Premises and shall keep the Premises free and clear of all mechanic’s liens resulting from construction done by or for the Tenant.
21. The Landlord covenants that on paying the Rent and performing the covenants contained in this Lease, the Tenant will have, hold and full use of the Premises for the agreed Term.
Environmental Matters
22. The Tenant hereby represents and warrants that:
a. The Tenant has not been informed of, nor does the Tenant have any knowledge of (i) the presence of any Hazardous Substances (as defined below) on the Premises, or (ii) any spills, releases, threatened releases, discharges or disposals of Hazardous Substances that have occurred or are presently occurring on or onto the Premises, or (iii) any spills or disposals of Hazardous Substances that have occurred or are presently occurring on any other properties as a result of any construction on or operation and use of the Premises.
b. In connection with the operation and use of any of the Premises, the Tenant has no knowledge of any failure to comply with any applicable local, state or federal environmental laws, regulations, ordinances and administrative and 5 268069.3
judicial orders relating to the generation, treatment, recycling, reuse, sale, storage, handling, transport and disposal of any Hazardous Substances. c. In the event that the Tenant becomes aware of the release of any Hazardous Substances on, or other environmental condition, problem or liability with respect to, the Premises, the Tenant agrees to promptly notify the Landlord in writing of such condition. The Tenant further agrees to take actions to investigate and clean up the release of any Hazardous Substances on, or other environmental condition, problem or liability affecting the Premises promptly after the Tenant becomes aware of any such condition and to keep the Landlord advised in writing of all such actions taken by the Tenant. d. As used in this Section, “Hazardous Substances” shall mean any substance or material at the level defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous or toxic chemical, a hazardous, toxic or radioactive substance, petroleum or other similar term, by any federal, State or local environmental statute, regulation or ordinance presently in effect or that may be promulgated in the future, as such statutes, regulations and ordinances may be amended from time to time.
e. The representations and warranties set forth in this Section shall survive the expiration or termination of this Lease.
Alterations
23. Tenant shall not make any alterations to the Premises without Landlord’s prior written consent. Any alterations made shall remain on and be surrendered with the Premises on expiration or termination of the term, except that Landlord can elect within 30 days before expiration of the term, or within 5 days after termination of the term, to require Tenant to remove any alterations that Tenant has made to the Premises. If Landlord so elects, Tenant at its cost shall restore the Premises to the condition designated by Landlord in its election, before the last day of the term, or within 30 days after notice of election is given, whichever is later.
24. If Tenant makes any alterations to the Premises as provided in this paragraph, the alterations shall not commence until (a) Tenant has received written consent from Landlord for such alterations, and (b) Landlord has posted and recorded an appropriate notice of nonresponsibility.
25. Tenant shall pay all costs for construction done by it or caused to be done by it on the Premises as permitted by this Lease. Tenant shall keep the Premises free and clear of all mechanics’ liens resulting from construction done by or for Tenant.
Tenant shall have the right to contest the correctness or the validity of any such lien if, immediately on demand by Landlord, Tenant procures and records a lien release bond issued by a corporation authorized to issue surety bonds in California in an amount equal to one and one-half times the amount of the claim of lien. The bond shall meet the requirements of Civil Code section 3143 and shall provide for the 6 268069.3
payment of any sum that the claimant may recover on the claim (together with costs of suit, if it recovers in the action).
26. Tenant may not change or add any lock to the Premises without obtaining Landlord’s prior written consent and without providing Landlord with the key(s) to the changed or added lock(s)
Inspections
27. At all reasonable times during the term of this Lease and any renewal of this Lease, the Landlord and its agents may enter the Premises to make inspections or repairs, or to show the Premises to prospective Tenants or purchasers.
Severability
28. If there is a conflict between any provisions of the Lease and the applicable legislation of the State of California (the “Act”), the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporate in this Lease.
Care and Use of Premises
29. The Tenant will promptly notify the Landlord of any damage, or of any situation that may significantly interfere with the normal use of the Premises or to any furnishings supplied by the Landlord.
30. The Tenant will comply with standards of health, sanitation, fire, housing and safety as required by law.
31. At the expiration of the Lease term, the Tenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements expected.
32. The Tenant will not keep or have on the premises any article or thing of a dangerous, flammable, or explosive character that might unreasonably increase the danger of fire
33. The Tenant will obey all rules and regulations posted by the Landlord regarding the use and care of the Premises, parking lot and other common facilities, if any, that are provided for the use of the Tenant in, around and on the Premises.
34. Negation of Partnership: Landlord shall not become or be deemed a partner or a joint venture with Tenant by reason of the provisions of this Lease.
Indemnity
35. Except for Landlord’s gross negligence or willful misconduct, Tenant shall indemnify, protect, defend and hold harmless the Premises, Landlord and its agents, 7 268069.3
from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Tenant. If any action or proceeding is brought against Landlord by reason of any of the foregoing matters, Tenant shall upon notice defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord and Landlord shall cooperate with Tenant in such defense. Landlord need not have first paid any such claim in order to be defended or indemnified.
Insurance
36. Tenant shall, throughout the duration of this Lease, secure and maintain insurance to cover Tenant (including its agents, representatives, and employees) in connection with Tenant’s performance under this Lease. This Lease identifies the required minimum levels of insurance coverage which Tenant shall obtain; however, Tenant may carry, at its own expense, any additional insurance it deems to be necessary or prudent. Prior to the commencement of any performance under this Lease, Tenant shall furnish to City written proof of insurance (certificates and endorsements), in a form acceptable to the City. Tenant shall provide subsequent written proof of insurance no later than 30 days prior to the expiration date of any insurance policy required by this Lease. Tenant shall maintain insurance that complies with the following requirements:
a. Workers’ Compensation Insurance with statutory limits and employer’s liability insurance with limits of not less than one million dollars ($1,000,000) per accident.
b. Tenant shall take out and maintain, at Tenant’s sole expense, Public Liability Insurance with coverage in the amount of $ 1,000,000.00 for one person and 1,000,000.00 for one accident with bodily injury and $ 1,000,000.00 for property damage.
c. Tenant’s insurance will not be canceled, limited, or allowed to expire without renewal until after 30 days’ advance written notice of any such cancellation, limitation or expiration has been given to the City.
d. All insurance companies providing coverage to Tenant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California. e. All of the insurance policies required to be obtained by Tenant under this Section shall be with companies and policies whose form is satisfactory and acceptable to City. Each policy shall designate City as an additional named insured. Tenant shall provide City with certificates of insurance (hereinafter “Certificates”) issued by each of the insurance companies issuing any of the policies required pursuant to this Section, and said Certificates shall provide that the insurance issued thereunder shall not be altered or canceled until after 30 days’ written notice to City. In the event Tenant fails to take out or 8 268069.3
maintain any of the insurance required pursuant to this Section, City shall have the right to obtain said policies in form and with companies acceptable to City, and to pay any premiums due thereon. The total amount of any insurance premiums paid by City on Tenant’s behalf shall be paid by Tenant to City upon demand, and said amounts shall start to bear interest at the rate of ten percent (10%) per annum as of the date of City’s demand for payment by Tenant.
Prohibition Against Voluntary Assignment, Subletting, and Encumbering
37. Tenant shall not voluntarily assign or encumber its interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant’s authorized representatives) to occupy or use all or any part of the Premises, without first obtaining Landlord’s written consent. Any assignment, encumbrance, or sublease without Landlord’s written consent shall be voidable and, at Landlord’s election, shall constitute a default. No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this paragraph.
a. If Tenant is a partnership, a withdrawal or change, voluntary, involuntary, or by operation of law, of the partner or partners owning 50% or more of the partnership, or the dissolution of the partnership, shall be deemed a voluntary assignment.
b. If Tenant consists of more than one person, a purported assignment, voluntary, involuntary, or by operation of law, from a majority of persons to the others shall be deemed a voluntary assignment.
c. If Tenant is a corporation, any dissolution, merger, consolidation, or other reorganization of Tenant, or the sale or other transfer of a controlling percentage of the capital stock of Tenant, or the sale of at least 51% of the value of the assets of Tenant, shall be deemed a voluntary assignment. The phrase “controlling percentage” means the ownership of, and the right to vote, stock possessing at least 51% of the total combined voting power of all classes of Tenant’s capital stock issued, outstanding, and entitled to vote for the election of directors. This paragraph shall not apply to corporations the stock of which is traded through an exchange or over the counter.
Default
38. The occurrence of any of the following shall constitute a default by Tenant:
a. Failure to pay rent when due, if the failure continues for 10 days after notice has been given to Tenant.
b. Abandonment and vacation of the Premises (failure to occupy and operate the Premises for 30 consecutive days shall be deemed an abandonment and vacation).
9 268069.3
c. Failure to perform any other provision of this Lease if the failure to perform is not cured within 30 days after notice has been given to Tenant. If the default cannot reasonably be cured within 30 days, Tenant shall not be in default of this Lease if Tenant commences to cure the default within the 30- day period and diligently and in good faith continues to cure the default. d. Notices given under this paragraph shall specify the alleged default and the applicable lease provisions, and shall demand that Tenant perform the provisions of this Lease or pay the rent that is in arrears, as the case may be, within the applicable period of time, or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this Lease unless Landlord so elects in the notice.
e. The purpose of the notice requirements set forth in this paragraph is to extend the notice requirements of the unlawful detainer statutes of California.
39. Landlord’s Remedies.
a. Cumulative Nature of Remedies. Landlord shall have the following remedies if Tenant commits a default. These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law. b. Tenant’s Right to Possession Not Terminated. Landlord can continue this Lease in full force and effect, and the Lease will continue in effect as long as Landlord does not terminate Tenant’s right to possession, and Landlord shall have the right to collect rent when due. During the period Tenant is in default, Landlord can enter the Premises and relet them, or any part of them, to third parties for Tenant’s account. Tenant shall be liable immediately to Landlord for all costs Landlord incurs in reletting the Premises, including, without limitation, brokers’ commissions, expenses of remodeling the Premises required by the reletting, and like costs. Reletting can be for a period shorter or longer than the remaining term of this Lease. Tenant shall pay to Landlord the rent due under this Lease on the dates the rent is due, less the rent Landlord receives from any reletting. No act by Landlord allowed by this paragraph shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to terminate this Lease. After Tenant’s default and for as long as Landlord does not terminate Tenant’s right to possession of the Premises, if Tenant obtains Landlord’s consent Tenant shall have the right to assign or sublet its interest in this Lease, but Tenant shall not be released from liability. Landlord’s consent to a proposed assignment or subletting shall not be unreasonably withheld.
c. If Landlord elects to relet the Premises as provided in this paragraph, rent that Landlord receives from reletting shall be applied to the payment of:
10 268069.3
i. First, any indebtedness from Tenant to Landlord other than rent due from Tenant;
ii. Second, all costs, including for maintenance, incurred by Landlord in reletting;
iii. Third, rent due and unpaid under this Lease. After deducting the payments referred to in this paragraph, any sum remaining from the rent Landlord receives from reletting shall be held by Landlord and applied in payment of future rent as rent becomes due under this Lease. In no event shall Tenant be entitled to any excess rent received by Landlord. If, on the date rent is due under this Lease, the rent received from the reletting is less than the rent due on that date, Tenant shall pay to Landlord, in addition to the remaining rent due, all costs, including for maintenance, Landlord incurred in reletting that remain after applying the rent received from the reletting as provided in this paragraph.
d. Termination of Tenant’s Right to Possession. Landlord can terminate Tenant’s right to possession of the Premises if Tenant commits a default of the covenants of this Lease. No act by Landlord other than giving notice to Tenant shall terminate this Lease. Acts of maintenance, efforts to relet the Premises, or the appointment of a receiver on Landlord’s initiative to protect Landlord’s interest under this Lease shall not constitute a termination of Tenant’s right to possession. On termination, Landlord has the right to recover from Tenant:
i. The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease;
ii. The worth, at the time of the award, of the amount by which the unpaid rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided;
iii. The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and
iv. Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant’s default. v. The “worth, at the time of the award,” as used in i. and ii. of this paragraph, is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. “The worth, at the time of the award,” as referred to in iii. of this paragraph, is to be 11 268069.3
computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1%.
e. Landlord’s Right to Cure Tenant’s Default. Landlord, at any time after Tenant commits a default, can cure the default at Tenant’s cost. If Landlord at any time, by reason of Tenant’s default, pays any sum or does any act that requires the payment of any sum, the sum paid by Landlord shall be due immediately from Tenant to Landlord at the time the sum is paid, and if paid at a later date shall bear interest at the maximum rate an individual is permitted by law to charge from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant. The sum, together with interest on it, shall be Additional Rent.
Landlord’s Default and Tenant’s Remedies
40. Landlord shall not be deemed to be in default of its obligations unless Landlord fails to perform any covenant, condition, or agreement contained in this Lease and fails to cure the nonperformance within a reasonable time, but not later than thirty (30) days after receiving written notice of the failure, provided, however, that if the nature of Landlord’s failure to perform reasonably requires more than thirty (30) days to cure, then Landlord shall not be deemed in default if Landlord commences to cure such failure within said thirty (30) day period and thereafter diligently and in good faith prosecutes such cure to completion. In addition, Tenant may terminate this Lease if the uncured default substantially interferes with the operation of Tenant’s business.
Notices
41. All notices that are required to be given by one party to the other under this Lease shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited with the United States Post Office for delivery by registered or certified mail addressed to the parties at the following addresses, unless such addresses are changed by notice, in writing, to the other party.
If to Landlord:
City Manager
City of Lakeport
225 Park Street
Lakeport, CA 95453
If to Tenant:
Executive Director
Clear Lake Environmental Research Center
PO Box 636
Lakeport, CA 95453
Mediation
42. Landlord and Tenant agree to mediate any dispute or claim arising between them out of this Lease, or any resulting transaction, before resorting to arbitration or court action in relation to any such dispute or claim. Mediation fees, if any shall be divided 12 268069.3
evenly among the parties involved. If, for any dispute or claim to which this paragraph applies, any party commences a court action without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorneys’ fees in relation to the dispute or claim even if they would be available to that party in any such action under section 42 below or otherwise.
Entire Agreement
43. This Lease constitutes the entire agreement between the parties with respect to the subject matter covered by this Lease and supersedes all prior understanding and agreements, whether written or oral, between the parties hereto relating to the same subject matter.
Governing Law
44. It is the intention of the parties to the Lease that the tenancy created by this Lease and the performance under this Lease, and all suits and special proceedings under this Lease, be construed in accordance with and governed, to the exclusion of the law of any other forum, by the laws of the State of California, without regard to the jurisdiction in which any action or special proceeding may be instituted. Tenant will be responsible to pay all costs associated with enforcement of the terms of this Lease including any legal proceedings undertaken in regards to the Lease.
General Provisions
45. If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorneys’ fees and costs of suit.
46. Any waiver by the Landlord of any failure by the Tenant to perform or observe the provisions of this Lease will not operate as a waiver of the Landlord’s rights under this Lease in respect of any subsequent defaults, breaches or nonperformance and will not defeat or affect in any way the Landlord’s rights in respect of any subsequent default or breach.
47. This Lease will extend to and be binding upon and inure to the benefit of the respective administrators, successors and assigns, as the case may be, of each party to this Lease. All covenants are to be construed as conditions of this Lease.
48. All sums payable by the Tenant to the Landlord pursuant to any provision of this Lease will be deemed to be Additional Rent and will be recovered by the Landlord as rental arrears.
49. Tenant shall not discriminate against any person in relation to Tenant’s performance under this Lease (including any employee or applicant) on the basis of race, color, religious creed, national origin, physical disability, mental disability, medical condition, marital status, sexual orientation, or sex.
Meeting Date: 12/02/2025 Page 1 Agenda Item # VII.C.3.
CITY OF LAKEPORT
City Council ☒
City of Lakeport Municipal Sewer District ☐
Lakeport Industrial Development Authority ☐
Municipal Financing Agency of Lakeport ☐
STAFF REPORT
RE: Lease Agreement with Lake County Arts Council for Art Gallery & Operation Assistance of Silveira Community Center MEETING DATE: 12/02/2025
SUBMITTED BY: Kevin M. Ingram, City Manager
PURPOSE OF REPORT: ☐Information only ☒ Discussion ☒Action Item WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:
The City Council is being asked to review and consider adoption of a lease agreement with the Lake County Arts Council (LCAC) for use of a portion of the Silveira Community Center to operate the Lakeport Gallery and to serve as the City’s scheduling and first-point-of-contact partner for special events and community use of the facility.
BACKGROUND:
The Silveira Community Center (SCC), located at 500 N. Main Street, was donated to the City by Bank of America on January 15, 2019. The City Council renamed the building in 2020 to honor former City Manager Margaret Silveira, whose leadership was instrumental in securing the donation.
Shortly after acquisition, the onset of the Covid-19 pandemic halted planned improvements and normal operations. The building’s HVAC system had failed, severely restricting interior use, and the Center served as a major Covid testing and later vaccination site throughout 2020–2021. At the same time, the City was advancing critical capital projects to rehabilitate the facility for long-term community use.
Key investments included:
• Commercial Kitchen Upgrade — approximately $70,000
Funded through CDBG-CV and State CARES Act allocations (2021–2022), the City installed a new commercial kitchen in partnership with Mendocino College, North Coast Opportunities, and Kiwanis to support community meal programs during and after the pandemic. • Electrical and HVAC Upgrades — approximately $500,000 Completed in 2023–2024 using CDBG-CV 2/3 CARES Act funds, this project replaced the nonfunctional HVAC system and implemented extensive electrical system upgrades, including solar installation. The project experienced nearly a nine-month delay due to supply-chain shortages of electrical panels and specialty components.
• Emergency Generator Installation in 2022 to support resiliency and emergency operations. • ADA Restroom and Access Improvements — approximately $1.3 million Funded through the CDBG MIT-RIP award received in April 2025, these upgrades are underway and remain essential to lifting current occupancy limits.
Meeting Date: 12/02/2025 Page 2 Agenda Item # VII.C.3.
The City also engaged Studio W Architects in 2021 to conduct public outreach, gather community input, and produce floor plans and cost estimates reflecting desired improvements for future long-term operations.
Despite ongoing progress, staffing constraints have prevented the City from managing facility rentals outside of regular business hours. In January and August 2025 updates, staff reported that while interest in SCC use continues to grow, the Center can only operate during weekday business hours and remains restricted to 50- person maximum occupancy due to restroom limitations. The Council directed staff to explore partnership opportunities—particularly with the Lake County Arts Council, which expressed interest in relocation and operational support—to expand public access.
ABOUT THE LAKE COUNTY ARTS COUNCIL: The Lake County Arts Council is a long-established nonprofit dedicated to advancing and celebrating the arts throughout Lake County. Its core mission includes supporting local artists, promoting arts education, operating galleries, and delivering community programming that enriches the cultural life of the region.
The Arts Council currently operates the Lakeport Gallery at 350 N. Main Street, where it showcases rotating exhibits of local artists, hosts community art events, coordinates First Friday activities, and provides public access to diverse cultural experiences. Due to recent changes in its rental agreement, the Arts Council is facing significant challenges in continuing operations at its current location and would likely be forced to close the gallery without an alternative site in Lakeport.
Relocating the Lakeport Gallery to the SCC would keep this important arts institution within the downtown area while simultaneously expanding public access to the Community Center. Through the proposed partnership, the Arts Council would assist the City by providing staffing and coordination that enable the community center to be open during evenings and weekends—hours the City is currently unable to support due to staffing limitations.
DISCUSSION:
Staff Recommendation: City staff recommends approval of the proposed lease agreement with the Lake County Arts Council to establish the Lakeport Gallery within the SCC and to formalize a public-private operational partnership that expands community access to the facility. This agreement supports both the long-term revitalization of the Center and the immediate need for extended operating hours that the City cannot accommodate with existing staffing. By combining gallery operations with facility scheduling and event coordination responsibilities, the Arts Council would help activate the building, increase public use, and enhance cultural programming while maintaining affordability and advancing key City goals for the center’s sustainability, accessibility, and community benefit.
The proposed lease agreement between the City and the Arts Council creates a public-private operational partnership that expands the community centers accessibility while supporting the Arts Council’s mission. The core benefit to this agreement to the City of Lakeport is to create a community-centered operational partnership that:
• Extends SCC availability into evenings and weekends
• Supports efficient scheduling, consistent monitoring, and reliable on-site presence • Reduces strain on City staffing while enhancing community use • Creates a foothold for long-term facility stewardship and activation This partnership increases community access while advancing a sustainable, scalable operational model.
The entire proposed lease agreement is provided as Attachment 1 to this report, but the key components are outlined:
• Leased Premises & Use: The City will lease approximately 1,000 square feet within the Center for operation of the Lakeport Gallery, open to the public at regular intervals approved by the City.
Meeting Date: 12/02/2025 Page 3 Agenda Item # VII.C.3.
• Term: A one-year lease term provides both parties the opportunity to evaluate performance, adjust responsibilities, and refine operations during the annual review. This limited term is intentional and allows for operational flexibility as both the ADA improvements and gallery operations mature. • Rent & Public Benefit: Rent is $1.00 per month, with the primary consideration to the City being the Arts Council’s performance of substantial operational responsibilities. As outlined in Section 12 of the lease, LCAC will:
o Serve as first point of contact and scheduler for SCC reservations o Conduct pre- and post-event inspections
o Manage facility keys
o Report incidents and maintenance needs
o Collaborate on marketing, promotion, and public information o Provide an annual report and presentation to the City Council These services directly address the City’s staffing constraints and enable SCC to be open during evenings and weekends—something not currently feasible for City staff alone. • Event Use by the Arts Council: The lease also authorizes specific Arts Council events at the Center, including watercolor classes, writing workshops, First Friday programming, Summer Kids Camp, and one annual fundraiser—all subject to coordination with the City. • Continued Event Size Limit: Until ADA restroom renovations are completed, the 50-person event size limitation will remain in effect for all third-party and Arts Council–sponsored events.
Alignment with City Goals: This project supports several adopted Citywide objectives, both long-term and immediately identified Fiscal Year 2025/26 goals—
• Consistency with identified Lakeport City Council Priority Areas o Safe, Sustainable & Attractive Neighborhoods: This partnership advances the City’s Safe, Sustainable & Attractive Neighborhoods priority by increasing activation of the Silveira Community Center and expanding its availability for community use, including evenings and weekends. More consistent use of the Center supports neighborhood vitality, promotes community gatherings that enhance overall quality of life, and reinforces the facility’s role as a well-maintained and accessible public resource serving the surrounding area.
o Economic Development: The proposed partnership also supports the City Council’s Economic Development priorities by activating a prominently located public facility in the heart of Lakeport’s historic downtown and within close proximity to Xabatin Park and the waterfront. Increasing regular use of the Silveira Community Center brings more visitors into the downtown core, supports surrounding businesses, and contributes to the vibrancy and appeal of the lakefront area. Expanded access and programming at the Center help reinforce the City’s ongoing efforts to enhance downtown vitality and strengthen the community’s connection to key economic and recreational assets.
o Disaster Resiliency: The lease supports SCC’s long-term function as a neighborhood-level disaster resource center by ensuring stable, year-round community use and establishing an operational structure that does not increase staffing or financial strain during emergency preparedness and recovery activities.
• Administrative Services Goal NT-5 (Events, Parks & City Facilities)—“Secure an outside facilities manager for the Silveira Community Center. Continue refinement of SCC processes, including automated booking opportunities.”: By assigning the Arts Council as the first point of contact and operational coordinator, this lease directly fulfills the outside-facility-management objective and complements the City’s launch of RecDesk booking tools.
Meeting Date: 12/02/2025 Page 4 Agenda Item # VII.C.3.
• City Manger/City Council Goal IT-4—“Facilitate the revitalization of the Silveira Community Center by completing an RFP process to secure an operator and implementing ADA upgrades to improve restrooms and accessibility. Ensure the center remains an affordable community space for diverse uses while establishing a financially sustainable model.”: The proposed lease directly advances this goal by allowing the SCC to be utilized in a substantially greater capacity than City resources alone can support. Due to staffing limitations, the City is currently unable to manage evening or weekend events or provide consistent on-site oversight—significantly restricting the Center’s availability to the public. Through this partnership, the Arts Council takes on key operational functions such as scheduling, user coordination, monitoring, and routine oversight, enabling the Center to be open during expanded hours and to serve a broader range of community needs. This model not only bridges the gap while ADA upgrades and longterm operator planning continue, but also demonstrates how a public-private partnership can activate the facility, increase community access, and maintain affordability without adding operational strain to City staff.
OPTIONS:
1. Approve the Lease Agreement with the Lake County Arts Council and authorize the City Manager to execute the agreement.
2. Deny approval of the proposed lease agreement and direct staff to notify the Lake County Arts Council that the City will not move forward with expanding their use of the Carnegie Library at this time.
3. Take no action at this time.
4. Provide alternative direction to staff.
ENVIRONMENTAL IMAPACT:
The approval of this lease agreement is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 (Existing Facilities), as the leasing of an existing public structure and facility involving negligible expansion of existing or former use, and 15061(b)(3), as it can be seen with certainty that the lease will not have a significant effect on the environment.
FISCAL IMPACT:
☐ None ☒ $1.00 Budgeted Item? ☒Yes ☐ No
Budget Adjustment Needed? ☐Yes ☒ No If yes, amount of appropriation increase: $ Affected fund(s): ☐ General Fund ☐ Water OM Fund ☐ Sewer OM Fund ☐ Other:
Comments: The lease sets rent at $1.00 per month, with the operational responsibilities undertaken by the Arts Council serving as the primary economic value to the City. No additional costs are anticipated beyond continued utilities and basic facility supplies, which are included in SCC’s operational budget.
COUNCIL PRIORITIES:
☐ Priority #1: Public Safety & Crisis Response
☐ Priority #2: Disaster Resiliency
☐ Priority #3: Good Governance & Fiscal Stability
☒ Priority #4: Capital Infrastructure Improvement
☒ Priority #5: Safe, Sustainable & Attractive Neighborhoods ☒ Priority #6: Economic Development
Meeting Date: 12/02/2025 Page 5 Agenda Item # VII.C.3.
SUGGESTED MOTIONS:
Move to approve the lease agreement with the Lake County Arts Council for the operation of the Lakeport Gallery and coordination of scheduling and event management at the Silveira Community Center, and to authorize the City Manager to enter into and execute the agreement. ☒ Attachments: 1. Draft Lease Agreement – Art Gallery & Community Center Operation Assistance
2. Exhibit A—Site Plan
415291.4
SILVEIRA COMMUNITY CENTER
LEASE AGREEMENT
THIS LEASE AGREEMENT (this “Lease” or “Agreement”) dated as of the ____ day of _________, 2025, is made by and between the CITY OF LAKEPORT, a municipal corporation (“Landlord”) and the Lake County Arts Council, a California nonprofit corporation (“Tenant”).
IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord, and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Lease agree as follows:
Leased Premises
1. The Landlord agrees to rent to the Tenant an approximately 1,100 square foot portion (the “Premises”) of the building located at 500 N. Main Street, Lakeport, California 95453 (the “Center”), as set forth and labeled “Lake County Arts Council Use Area” in the attached site plan noted as Exhibit A, attached hereto and incorporated by reference. The Premises will be used for only the following permitted use (the “Permitted Use”): operation of an art gallery viewable by and open to the public and associated office space. Neither the Premises nor any part of the Premises will be used at any time during the term of this Lease by the Tenant for any purpose other than the Permitted Use.
Term
2. The Term of the Lease is twelve (12) calendar months, commencing on January 1, 2026 and expiring on January 1, 2027 unless extended by written agreement of the parties or terminated earlier. Such extensions shall be effective if authorized in advance by Landlord in writing and incorporated in a written amendment to this Agreement.
3. Either party may terminate this Lease upon sixty (60) days’ written notice for any or no cause.
4. The Landlord may terminate the tenancy under this Lease if the Tenant fails to observe, perform and keep each and every of the covenants, agreements, stipulations, obligations, conditions, and other provisions of this Lease to be observed, performed and kept by the Tenant and the Tenant persists in such default beyond thirty (30) days’ notice.
5. At the expiration of the Term of the Lease or earlier termination thereof, Tenant shall deliver the Premises to Landlord in the same repair and condition as when this Lease commenced, reasonable wear and tear excepted. Tenant, at its own cost and expense, shall remove all its fixtures and personal property from the Premises. Tenant shall have thirty (30) days from termination of this Lease to remove all fixtures and personal property from the Premises.
Rent
6. Subject to the provisions of this Lease, the Tenant will pay a base rent of One Dollar and Zero Cents ($1.00) per month for the Premises.
415291.4
7. The Tenant will pay the rent on or before the first of each month and every month of the Term of this Lease to the Landlord.
Notice of Possessory Interest
8. In accordance with California Revenue and Taxation Code section 107.6, subdivision (a), Landlord states that entering into this Lease may create a possessory interest subject to property taxes. Tenant or any other party in whom the possessory interest is vested shall pay taxes upon the assessed value of the entire Leased Premises share, not merely the assessed value of Tenant’s Estate.
Security Deposit
9. On execution of this Lease, Tenant shall deposit with Landlord $1000.00 as a security deposit for the performance by Tenant of the provisions of this Lease. If Tenant is in default, Landlord can use the security deposit, or any portion of it, to cure the default or to compensate Landlord for all damage sustained by Landlord resulting from Tenant’s default. Tenant shall immediately on demand pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this paragraph so as to maintain the security deposit in the sum initially deposited with Landlord. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return the security deposit to Tenant. Landlord’s obligations with respect to the security deposit are those of a debtor and not a trustee.
Landlord can maintain the security deposit separate and apart from Landlord’s general funds or can commingle the security deposit with Landlord’s general and other funds. Landlord shall not be required to pay Tenant interest on the security deposit.
Use of the Center by and Responsibilities of the Parties
10. Landlord covenants that on paying the rent and performing the covenants contained in this Lease, Tenant will have, hold, and have full use of the Premises for the agreed Term. In addition to the use of the Premises, Tenant shall also have non-exclusive, shared access to common areas in the Center necessary for Tenant’s operations, as well as exclusive use of the Center for the following identified activities upon coordination with and prior written approval by Landlord:
a. Watercolor class (4 hours per week);
b. Writers Circle (2 hours per month);
c. First Friday Fling (6 hours per week);
d. Summer Kids Camp (1 week per year); and
e. Annual Fundraising Night (1 night per year).
11. Tenant will obey all rules and regulations posted by Landlord regarding the use and care of the Premises, Center, parking lot and other common areas and facilities, if any, that are provided for use of, in, around, and on the Premises, Center, parking lot and other common areas and facilities. Tenant shall further comply with all laws, statutes, ordinances, rules, regulations, and other requirements of all government entities that pertain to the occupancy or use of the Premises and Center, including but not limited to the Lakeport Municipal Code,, and shall at all times maintain the Premises in good order will all due care for its safety and 415291.4
cleanliness. Under no circumstances shall the Premises be used for or occupied as a dwelling unit or living facility for eating, sleeping, cooking, and/or personal sanitation.
12. Tenant will be responsible for:
a. Creating, managing and operating an art gallery at the Premises, which shall be open to the public during hours of operation approved by Landlord. The gallery’s schedule and hours of operation must be in regular, consistent intervals and be posted publicly.
Tenant shall be responsible for ensuring that member(s) of its staff or volunteer(s) are present at the Premises at all times when the art gallery is open to the public. The gallery’s hours of operation may not interfere with other reservations or rentals of the Center nor Landlord’s activities at the Center.
b. Serving as the initial point of contact for third parties seeking to rent or reserve the Center for events or programs; accepting applications and collecting fees therefor, to be remitted to Landlord in accordance with procedures established by Landlord; and organizing, managing, and maintaining the schedule of approved reservations and rentals. Landlord shall support potential applicants in accessing and completing appropriate application forms, provided that final approval of any application shall be in Landlord’s sole discretion.
c. Performing visual inspection walk-throughs both before and after third party rentals or reservations to identify any cleaning and/or repair(s) necessary and resulting from a reservation or rental and making recommendations to Landlord for the return or retention of collected deposits, provided that the decision to return or retain a deposit shall be in Landlord’s sole discretion.
d. Managing and safeguarding keys to the Premises and/or Center to prevent unauthorized access at all times. Keys to the Premises and/or Center are not to be duplicated without prior approval of the Landlord. Tenant may not change or add any lock to the Premises without obtaining Landlord’s prior written consent and without providing Landlord with the key(s) to the changed or added lock(s). e. Reporting any and all significant incidents occurring on or at the Premises or Center to Landlord in writing within forty-eight (48) hours of becoming aware of such incident. For purposes of this section, "significant incidents" include, but are not limited to serious personal injury; damage to the Premises or Center; criminal activity, theft, vandalism, or trespass; fire, flood, or other emergency situations; equipment failures or building system malfunctions that affect the safety or usability of the Center or Premises; any incident requiring police, fire, or emergency medical response; any event that may result in an insurance claim or legal liability. f. Notifying the Landlord of the need for any structural, electrical, or other maintenance or repair work for the Premises or Center, as well as the depletion of any Landlordprovided supplies in need of restocking, as soon as possible after learning of the need.
Tenant shall take reasonable steps to prevent further damage or deterioration until such maintenance or repair work can be completed.
g. Coordinating its operations and the use of the Premises and Center by itself and third parties in order to facilitate and not impede building maintenance, repair work, or 415291.4
improvement work necessary to bring the Premises and Center into compliance with the Americans with Disabilities Act (42 U.S.C. § 12101, et seq.). h. Coordinating with Landlord to provide content updates and materials for the promotion and marketing of the Center and Premises, including but not limited to:
i. Providing current information regarding programs, services, schedules, and amenities offered at the Center and Premises;
ii. Supplying photographs, descriptions, and other promotional materials suitable for marketing purposes;
iii. Reviewing and approving marketing content related to Tenant's operations at the Center and Premises in a timely manner;
iv. Assisting with the development and maintenance of a web page(s) dedicated to the Center and Premises.
i. Submitting a written report to Landlord and providing a presentation to the Lakeport City Council at a public meeting thereof on or before the end of the twelve (12) month initial Term, and annually upon any extension(s) thereof, which shall summarize Tenant’s operations, performance, and hours of staff time provided under this Agreement; the rental and reservation history of the Center throughout the Term; and any operational issues encountered by Tenant throughout the Term to be discussed at the parties’ Annual Review.
j. Complying with all local, state, and federal laws, rules, statutes, ordinances, and regulations in any manner applicable to or affecting the performance of this Lease and use of the Premises and Center, including but not limited to all Cal/OSHA requirements, standards of health, sanitation, fire, and safety, and the conflict-ofinterest provisions of California Government Code sections 1090 and 84308 and the Political Reform Act (Government Code § 81000 et seq.). Tenant shall neither discriminate nor permit discrimination against any person or group of persons on the grounds of race, sex, creed, national origin, color, disability as defined by law, religion, age, medical condition, marital status, ancestry, sexual orientation, or other protected basis.
k. At the expiration of the Lease term, Tenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear excepted.
13. Landlord will be responsible for:
a. Providing basic supplies such as toilet paper, light bulbs, hand soap, trash bags, and other consumable necessities for operation of the Center. b. Collecting fees for the rental or reservation of the Center in accordance with adopted City of Lakeport policies, as may be revised from time to time. c. Collecting and returning deposits for the rental or reservation of the Center in accordance with adopted City of Lakeport policies, as may be revised from time to time. The decision to return or retain a deposit shall be in Landlord’s sole discretion. d. Reviewing, processing, and approving rental and reservation applications for the Center in coordination with Tenant and in accordance with adopted City of Lakeport 415291.4
policies, as may be revised from time to time. Final approval of any rental or reservation application shall be in Landlord’s sole discretion. e. Establishing, in its sole discretion, the schedule of days and hours in which Tenant and/or third party applicants may reserve or rent the Center for use.
14. The Parties hereto agree that the Center and Premises shall remain branded and affiliated with the City of Lakeport’s name and trademark throughout the Term. Co-branding arrangements incorporating both the Landlord's and Tenant's names, logos, or trademarks shall be permitted subject to prior written approval by Landlord, in its sole discretion. Landlord may install exterior signage at the Center identifying its presence and role as operator of the facility subject to the approval of Landlord and obtaining any and all necessary permits and entitlements therefor in compliance with the Lakeport Municipal Code. Landlord shall retain final approval authority over any and all branding decisions and promotional content related to the Center.
Operating Costs & Maintenance
15. Landlord at its cost shall maintain, in good condition, the structural parts of the Premises and Center and other improvements that are part of the Premises and Center, which structural parts include only the foundations, load-bearing and exterior walls, subflooring, roof, ceiling, unexposed electrical, plumbing, sewage systems, and heating, ventilating, and air conditioning systems servicing the Premises and Center. In addition to the foregoing, Landlord at its cost shall undertake and complete any improvements to the Premises and Center necessary for compliance with the Americans with Disabilities Act (42 U.S.C. § 12101, et seq.). Except as expressly provided herein, Landlord shall not have any responsibility to maintain the Premises.
Tenant waives the provision of Civil Code sections 1941 and 1942 with respect to Landlord’s obligations for tenantability of the Premises and Tenant’s right to make repairs and deduct the expenses of such repairs from the rent.
16. Landlord shall pay all operating costs of the Premises and Center, including internet, electricity, water, sewer, and trash service, taxes, and insurance. The parties agree to revisit this allocation of costs during the Annual Review once the parties have data on the actual costs associated with the Tenant’s use of the Premises.
17. Tenant at its cost shall maintain, in good condition, all portions of the Premises, including, without limitation, all Tenant’s personal property, artworks, signs, storefronts, plate glass, and show windows. In addition, Tenant at its cost shall perform all routine, day-to-day cleaning to ensure the Premises and Center remains in a visually neat and orderly condition, including but not limited to regular sweeping, mopping, dusting, window and glass cleaning, and trash removal to prevent the accumulation of dirt, grime, or clutter detracting from the visual appearance of the Premises and/or Center. Tenant shall be solely responsible for the maintenance and condition of Tenant’s personal property, artworks, signage, and other improvements or fixtures. Tenant acknowledges that it has fully inspected the Premises and accepts the same, in its existing condition, and agrees that no demands for alterations, repairs, or additions are to be made upon the Premises at the time of entering into this Lease. If a change is noted in condition or if the Premises has in some way been damaged, Tenant acknowledges the responsibility for informing Landlord of the situation as soon as possible after learning of the change or damage.
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18. The Tenant will pay to the lawful taxing authorities, or to the Landlord, as it may direct as and when the same become due and payable, all taxes, rates, use fees, duties, assignments and other charges that are levied, rated, charged, or assessed against or in respect of all improvements, equipment and facilities of the Tenant or in default by the Tenant and in respect of any business carried on in the Premises or in respect of the use or occupancy of the Premises by the Tenant and every subtenant, licensee, concessionaire or other persons doing business or from the Premises or occupying any portion of the Premises.
Use and Occupation
19. The Tenant will use and occupy the Premises only for the Permitted Use and for no other purpose whatsoever.
20. The Tenant covenants that the Tenant will carry on and conduct its business from time to time carried on upon the Premises in such manner as to comply with all statutes, bylaws, rules and regulations of any federal, state, municipal or other competent authority and will not do anything on or in the Premises in contravention of any of them.
21. The Tenant will not make any improvements to the Premises without the prior written consent and authorization of the Landlord. Tenant shall pay all costs for construction or improvements done by it or caused to be done by it on the Premises and shall keep the Premises free and clear of all mechanic’s liens resulting from construction done by or for the Tenant.
22. The parties hereto agree that the Landlord shall have the right to use the Premises for municipal purposes without cost to the Landlord. Landlord agrees that it will give reasonable notice of its desire to use the Premises. Landlord agrees to clean the Premises within 24 hours of municipal use to a state as clean as before the municipal use. If the Premises are already reserved by the Tenant or other third party approved by the City, the Landlord may not use the Premises, excepting during an emergency or by reason of an emergency.
Environmental Matters
23. The Tenant hereby represents and warrants that:
a. The Tenant has not been informed of, nor does the Tenant have any knowledge of (i) the presence of any Hazardous Substances (as defined below) on the Premises, or (ii) any spills, releases, threatened releases, discharges or disposals of Hazardous Substances that have occurred or are presently occurring on or onto the Premises, or (iii) any spills or disposals of Hazardous Substances that have occurred or are presently occurring on any other properties as a result of any construction on or operation and use of the Premises.
b. In connection with the operation and use of any of the Premises, the Tenant has no knowledge of any failure to comply with any applicable local, state or federal environmental laws, regulations, ordinances and administrative and judicial orders relating to the generation, treatment, recycling, reuse, sale, storage, handling, transport and disposal of any Hazardous Substances.
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c. In the event that the Tenant becomes aware of the release of any Hazardous Substances on, or other environmental condition, problem or liability with respect to, the Premises, the Tenant agrees to promptly notify the Landlord in writing of such condition. The Tenant further agrees to take actions to investigate and clean up the release of any Hazardous Substances on, or other environmental condition, problem or liability affecting the Premises promptly after the Tenant becomes aware of any such condition and to keep the Landlord advised in writing of all such actions taken by the Tenant.
d. As used in this Section, “Hazardous Substances” shall mean any substance or material at the level defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous or toxic chemical, a hazardous, toxic or radioactive substance, petroleum or other similar term, by any federal, State or local environmental statute, regulation or ordinance presently in effect or that may be promulgated in the future, as such statutes, regulations and ordinances may be amended from time to time. e. The representations and warranties set forth in this Section shall survive the expiration or termination of this Lease.
Alterations
23. Tenant shall not make any alterations to the Premises without Landlord’s prior written consent. Any alterations made shall remain on and be surrendered with the Premises on expiration or termination of the Term, except that Landlord can elect within thirty (30) days before expiration of the Term, or within five (5) days after termination of the Term, to require Tenant to remove any alterations that Tenant has made to the Premises. If Landlord so elects, Tenant at its cost shall restore the Premises to the condition designated by Landlord in its election, before the last day of the Term, or within thirty (30) days after notice of election is given, whichever is later.
24. If Tenant makes any alterations to the Premises as provided in this paragraph, the alterations shall not commence until (a) Tenant has received written consent from Landlord for such alterations, and (b) Landlord has posted and recorded an appropriate notice of nonresponsibility.
25. Tenant shall pay all costs for construction done by it or caused to be done by it on the Premises as permitted by this Lease. Tenant shall keep the Premises free and clear of all mechanics’ liens resulting from construction done by or for Tenant. Tenant shall have the right to contest the correctness or the validity of any such lien if, immediately on demand by Landlord, Tenant procures and records a lien release bond issued by a corporation authorized to issue surety bonds in California in an amount equal to one and one-half times the amount of the claim of lien. The bond shall meet the requirements of Civil Code section 3143 and shall provide for the payment of any sum that the claimant may recover on the claim (together with costs of suit, if it recovers in the action).
Records and Inspections
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26. Tenant shall maintain complete and accurate books, accounts, records, and files related to its performance under this Lease, including but not limited to financial records, operational reports, maintenance logs, incident reports, insurance documentation, and correspondence pertaining to the Center, Premises, or the Tenant’s obligations hereunder. All such records shall be maintained in accordance with generally accepted accounting principles and retained for a minimum of three (3) calendar years following the termination or expiration of this Lease, or for such longer period as may be required by applicable law. Landlord shall have the right to inspect, audit, and copy any and all books, accounts, records, and files maintained by the Tenant relating to this Lease upon reasonable prior written notice during normal business hours. Tenant shall provide full access to such records and shall cooperate with any such inspection or audit.
27. Tenant acknowledges that Landlord is a public entity subject to the California Public Records Act (California Government Code Section 7920.000, et seq. ("CPRA"). Tenant agrees to produce and provide to Landlord, in a timely manner and in the format requested, any and all records, documents, or information in the Tenant's possession or control that are necessary for the Landlord to comply with its obligations under the CPRA, including responses to public records requests.
28. At all reasonable times during the term of this Lease and any renewal of this Lease, the Landlord and its agents may enter the Premises to make inspections or repairs, or to show the Premises to prospective Tenants or purchasers.
Severability
29. If there is a conflict between any provisions of the Lease and the applicable legislation of the State of California (the “Act”), the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporate in this Lease.
Care and Use of Premises
30. The Tenant will promptly notify the Landlord of any damage, or of any situation that may significantly interfere with the normal use of the Premises or to any furnishings supplied by the Landlord.
31. The Tenant will comply with standards of health, sanitation, fire, housing and safety as required by law.
32. At the expiration of the Lease term, the Tenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements expected.
33. The Tenant will not keep or have on or at the Premises or Center any article or thing of a dangerous, flammable, or explosive character that might unreasonably increase the danger of fire.
415291.4
34. The Tenant will obey all rules and regulations posted by the Landlord regarding the use and care of the Premises, parking lot and other common facilities, if any, that are provided for the use of the Tenant in, around and on the Premises and Center.
35. Negation of Partnership: Landlord shall not become or be deemed a partner or a joint venture with Tenant by reason of the provisions of this Lease. Except as Landlord may specify in writing, Tenant shall have no authority, express or implied, to act on behalf of Landlord in any capacity whatsoever as an agent. This Lease does not grant to the Tenant any authority, express or implied, to bind the Landlord to any obligation whatsoever. Nothing in this Lease shall be interpreted as creating a partnership, joint venture, or relationship of principal and agent between the Parties. Under no circumstances shall Tenant or its employees look to Landlord as an employer. Tenant shall not be entitled to any City benefits. Landlord makes no representation as to the effect of this independent contractor relationship on Tenant’s previously earned California Public Employees Retirement System (“CalPERS”) retirement benefits, if any, and Tenant specifically assumes the responsibility for making such a determination. Tenant shall be responsible for all reports and obligations including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation, and other applicable federal and state taxes. In the event that Tenant or any employee, agent, consultant or contractor of Tenant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of Landlord, Tenant shall indemnify, defend, and hold harmless Landlord for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Tenant or its employees, agents, consultants or contractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of Landlord.
Indemnity
36. Except for Landlord’s gross negligence or willful misconduct, Tenant shall indemnify, protect, defend and hold harmless the Premises, Landlord, and its officers, officials, employees, agents, and volunteers, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with, the performance of this Lease or the use and/or occupancy of the Premises by Tenant, including any release or storage of Hazardous Substances (as defined above) by Tenant. If any action or proceeding is brought against Landlord by reason of any of the foregoing matters, Tenant shall upon notice defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord and Landlord shall cooperate with Tenant in such defense. Landlord need not have first paid any such claim in order to be defended or indemnified.
Insurance
37. Tenant shall, throughout the duration of this Lease, secure and maintain insurance to cover Tenant (including its agents, representatives, and employees) in connection with Tenant’s performance under this Lease. This Lease identifies the required minimum levels of insurance coverage which Tenant shall obtain; however, Tenant may carry, at its own expense, any additional insurance it deems to be necessary or prudent. Prior to the commencement of any performance under this Lease, Tenant shall furnish to City written proof of insurance 415291.4
(certificates and endorsements), in a form acceptable to the City. Tenant shall provide subsequent written proof of insurance no later than thirty (30) days prior to the expiration date of any insurance policy required by this Lease. Tenant shall maintain insurance that complies with the following requirements:
a. Workers’ Compensation Insurance with statutory limits and employer’s liability insurance with limits of not less than one million dollars ($1,000,000) per accident. b. Tenant shall take out and maintain, at Tenant’s sole expense, General Liability Insurance with coverage in the amount of $ 1,000,000.00 for one person and 1,000,000.00 for one accident with bodily injury and $ 1,000,000.00 for property damage.
c. Tenant’s insurance will not be canceled, limited, or allowed to expire without renewal until after 30 days’ advance written notice of any such cancellation, limitation or expiration has been given to the City.
d. All insurance companies providing coverage to Tenant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California. e. All of the insurance policies required to be obtained by Tenant under this Section shall be with companies and policies whose form is satisfactory and acceptable to Landlord.
Each policy shall designate the City of Lakeport, including its officers, officials, employees, agents, and volunteers, as an additional named insured. Tenant shall provide Landlord with certificates of insurance (hereinafter “Certificates”) issued by each of the insurance companies issuing any of the policies required pursuant to this Section, and said Certificates shall provide that the insurance issued thereunder shall not be altered or canceled until after 30 days’ written notice to Landlord. In the event Tenant fails to take out or maintain any of the insurance required pursuant to this Section, Landlord shall have the right to obtain said policies in form and with companies acceptable to Landlord, and to pay any premiums due thereon. The total amount of any insurance premiums paid by Landlord on Tenant’s behalf shall be paid by Tenant to Landlord upon demand, and said amounts shall start to bear interest at the rate of ten percent (10%) per annum as of the date of Landlord’s demand for payment by Tenant.
f. Tenant hereby waives all rights of subrogation against Landlord. Tenant shall additionally waive such rights either by endorsement to each policy or provide proof of such waiver in the policy itself.
g. Tenant shall report to Landlord, in addition to Tenant’s insurer, any and all insurance claims submitted to Tenant’s insurer in connection with this Lease. h. Tenant’s duties to defend and indemnify Landlord under this Lease shall not be limited by the foregoing insurance requirements and shall survive the expiration or termination of this Lease.
415291.4
Prohibition Against Voluntary Assignment, Subletting, and Encumbering
38. Tenant shall not voluntarily assign or encumber its interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant’s authorized representatives) to occupy or use all or any part of the Premises, without first obtaining Landlord’s written consent. Any assignment, encumbrance, or sublease without Landlord’s written consent shall be voidable and, at Landlord’s election, shall constitute a default. No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this paragraph.
a. If Tenant is a partnership, a withdrawal or change, voluntary, involuntary, or by operation of law, of the partner or partners owning 50% or more of the partnership, or the dissolution of the partnership, shall be deemed a voluntary assignment. b. If Tenant consists of more than one person, a purported assignment, voluntary, involuntary, or by operation of law, from a majority of persons to the others shall be deemed a voluntary assignment.
c. If Tenant is a corporation, any dissolution, merger, consolidation, or other reorganization of Tenant, or the sale or other transfer of a controlling percentage of the capital stock of Tenant, or the sale of at least 51% of the value of the assets of Tenant, shall be deemed a voluntary assignment. The phrase “controlling percentage” means the ownership of, and the right to vote, stock possessing at least 51% of the total combined voting power of all classes of Tenant’s capital stock issued, outstanding, and entitled to vote for the election of directors. This paragraph shall not apply to corporations the stock of which is traded through an exchange or over the counter.
Default
39. The occurrence of any of the following shall constitute a default by Tenant:
a. Failure to pay rent when due, if the failure continues for ten (10) days after notice has been given to Tenant.
b. Abandonment and vacation of the Premises (failure to occupy and operate the Premises for thirty (30) consecutive days shall be deemed an abandonment and vacation).
c. Failure to perform any other provision of this Lease if the failure to perform is not cured within thirty (30) days after notice has been given to Tenant. If the default cannot reasonably be cured within thirty (30) days, Tenant shall not be in default of this Lease if Tenant commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default. d. Notices given under this paragraph shall specify the alleged default and the applicable lease provisions, and shall demand that Tenant perform the provisions of this Lease or pay the rent that is in arrears, as the case may be, within the applicable period of 415291.4
time, or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this Lease unless Landlord so elects in the notice.
e. The purpose of the notice requirements set forth in this paragraph is to extend the notice requirements of the unlawful detainer statutes of California.
40. Landlord’s Remedies.
a. Cumulative Nature of Remedies. Landlord shall have the following remedies if Tenant commits a default. These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law.
b. Tenant’s Right to Possession Not Terminated. Landlord can continue this Lease in full force and effect, and the Lease will continue in effect as long as Landlord does not terminate Tenant’s right to possession, and Landlord shall have the right to collect rent when due. During the period Tenant is in default, Landlord can enter the Premises and relet them, or any part of them, to third parties for Tenant’s account. Tenant shall be liable immediately to Landlord for all costs Landlord incurs in reletting the Premises, including, without limitation, brokers’ commissions, expenses of remodeling the Premises required by the reletting, and like costs. Reletting can be for a period shorter or longer than the remaining term of this Lease. Tenant shall pay to Landlord the rent due under this Lease on the dates the rent is due, less the rent Landlord receives from any reletting. No act by Landlord allowed by this paragraph shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to terminate this Lease. After Tenant’s default and for as long as Landlord does not terminate Tenant’s right to possession of the Premises, if Tenant obtains Landlord’s consent Tenant shall have the right to assign or sublet its interest in this Lease, but Tenant shall not be released from liability. Landlord’s consent to a proposed assignment or subletting shall not be unreasonably withheld.
i. If Landlord elects to relet the Premises as provided in this paragraph, rent that Landlord receives from reletting shall be applied to the payment of:
1. First, any indebtedness from Tenant to Landlord other than rent due from Tenant;
2. Second, all costs, including for maintenance, incurred by Landlord in reletting;
3. Third, rent due and unpaid under this Lease. After deducting the payments referred to in this paragraph, any sum remaining from the rent Landlord receives from reletting shall be held by Landlord and applied in payment of future rent as rent becomes due under this Lease. In no event shall Tenant be entitled to any excess rent received by Landlord. If, on the date rent is due under this Lease, the rent received from the reletting is less than the rent due on that date, Tenant shall pay to Landlord, in addition to the remaining rent due, all costs, including for maintenance, Landlord incurred in reletting that remain 415291.4
after applying the rent received from the reletting as provided in this paragraph.
c. Termination of Tenant’s Right to Possession. Landlord can terminate Tenant’s right to possession of the Premises if Tenant commits a default of the covenants of this Lease. No act by Landlord other than giving notice to Tenant shall terminate this Lease. Acts of maintenance, efforts to relet the Premises, or the appointment of a receiver on Landlord’s initiative to protect Landlord’s interest under this Lease shall not constitute a termination of Tenant’s right to possession. On termination, Landlord has the right to recover from Tenant:
i. The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease;
ii. The worth, at the time of the award, of the amount by which the unpaid rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided;
iii. The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and iv. Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant’s default.
v. The “worth, at the time of the award,” as used in i. and ii. of this paragraph, is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. “The worth, at the time of the award,” as referred to in iii. of this paragraph, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1%.
d. Landlord’s Right to Cure Tenant’s Default. Landlord, at any time after Tenant commits a default, can cure the default at Tenant’s cost. If Landlord at any time, by reason of Tenant’s default, pays any sum or does any act that requires the payment of any sum, the sum paid by Landlord shall be due immediately from Tenant to Landlord at the time the sum is paid, and if paid at a later date shall bear interest at the maximum rate an individual is permitted by law to charge from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant. The sum, together with interest on it, shall be additional rent.
Landlord’s Default and Tenant’s Remedies
41. Landlord shall not be deemed to be in default of its obligations unless Landlord fails to perform any covenant, condition, or agreement contained in this Lease and fails to cure the nonperformance within a reasonable time, but not later than thirty (30) days after receiving written notice of the failure, provided, however, that if the nature of Landlord’s failure to 415291.4
perform reasonably requires more than thirty (30) days to cure, then Landlord shall not be deemed in default if Landlord commences to cure such failure within said thirty (30) day period and thereafter diligently and in good faith prosecutes such cure to completion. In addition, Tenant may terminate this Lease if the uncured default substantially interferes with the operation of Tenant’s business.
Notices
42. All notices that are required to be given by one party to the other under this Lease shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited with the United States Post Office for delivery by registered or certified mail addressed to the parties at the following addresses, unless such addresses are changed by notice, in writing, to the other party.
If to Landlord:
Attn: City Manager
City of Lakeport
225 Park Street
Lakeport, CA 95453
(707) 263-5615
If to Tenant:
Attn: Executive Director
325 North Main Street,
Lakeport, CA 95453
(707)263-6658
[email protected]
Conflict Resolution, Annual Review, and Amendment
43. Landlord and Tenant agree to meet and confer at mutually agreeable times to resolve any dispute(s) arising out of the performance or interpretation of this Lease. Should informal discussions be insufficient to resolve a dispute, the matter shall be elevated to the City Manager of the City of Lakeport and the Director of the Lake County Arts Council for resolution. The parties may agree to enter into non-binding mediation to resolve any unresolved dispute(s).
44. The parties agree to meet at the end of the twelve (12) month initial term, and annually upon any extension(s) thereof, to evaluate Tenant’s performance under this Lease, the use of the Center and Premises, and to discuss renewal or extension of the Lease (the “Annual Review”).
45. Should Tenant expend more than fifty (50) hours per month performing the services set forth in this Lease, either party may initiate negotiations to amend the terms of this Lease. Any such changes mutually agreed upon by the parties, and any corresponding change in service level or compensation, shall be incorporated by written amendment to this Agreement.
Entire Agreement
46. This Lease constitutes the entire agreement between the parties with respect to the subject matter covered by this Lease and supersedes all prior understanding and agreements, whether written or oral, between the parties hereto relating to the same subject matter.
Governing Law
415291.4
47. It is the intention of the parties to the Lease that the tenancy created by this Lease and the performance under this Lease, and all suits and special proceedings under this Lease, be construed in accordance with and governed, to the exclusion of the law of any other forum, by the laws of the State of California, without regard to the jurisdiction in which any action or special proceeding may be instituted. The parties agree that venue of any action or proceeding arising under this Lease or the performance thereof shall be heard in the Superior Court of the County of Lake.
General Provisions
48. If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorneys’ fees and costs of suit.
49. Any waiver by the Landlord of any failure by the Tenant to perform or observe the provisions of this Lease will not operate as a waiver of the Landlord’s rights under this Lease in respect of any subsequent defaults, breaches or nonperformance and will not defeat or affect in any way the Landlord’s rights in respect of any subsequent default or breach.
50. This Lease will extend to and be binding upon and inure to the benefit of the respective administrators, successors and assigns, as the case may be, of each party to this Lease. All covenants are to be construed as conditions of this Lease.
51. All sums payable by the Tenant to the Landlord pursuant to any provision of this Lease will be deemed to be additional rent and will be recovered by the Landlord as rental arrears.
52. Tenant shall not discriminate against any person in relation to Tenant’s performance under this Lease (including any employee or applicant) on the basis of race, color, religious creed, national origin, ancestry, disability as defined by law, medical condition, marital status, sexual orientation, sex, or other protected basis.
53. If any term or provision of this Lease isfound by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction, the invalidity, illegality or unenforceability shall not affect any other term or provision of this Lease. Upon a determination that any term or provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Lease to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
54. Any, and all of the covenants, terms, and conditions hereof, shall be binding upon, and inure to the benefit of, the Tenant, the Landlord, and their respective successors and assigns.
55. The persons executing this Lease on behalf of the Parties hereto warrant that they are duly authorized to execute this Lease on behalf of said Parties and that by so executing this Lease the Parties are formally bound to the provisions of this Lease.
56. No right or remedy provided under this Lease is intended to be exclusive of any other right or remedy hereof provided by law or equity. Each right and each remedy shall be cumulative 415291.4
and in addition to every other right or remedy provided under this Lease now or hereafter existing at law, in equity or by statute.
57. This Lease benefits solely the Parties to this Lease and their respective permitted successors and assigns and nothing in this Lease, express or implied, confers on any other person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Lease.
58. The section headings and subheadings contained in this Lease are included for convenience only and shall not limit or otherwise affect the terms of this Lease.
59. This Lease may be executed in two or more identical counterparts and delivered by facsimile or by .pdf or other comparable electronic format, with the same force and effect as if all required signatures were contained in a single, original instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Lease of the day and year first above written.
LANDLORD
CITY OF LAKEPORT, a municipal corporation
By:
Name:
Its:
ATTEST:
_________________________
Kelly Buendia, City Clerk
APPROVED AS TO FORM:
_____________________________
David J. Ruderman, City Attorney
TENANT
Lake County Arts Council, a California Nonprofit Corporation By:
Name:
Its:
Exhibit A
Site Plan
Lake County Arts Council
Use Area
Gallery
1000 SQ FT
Main Meeting Area
3000 SQ FT
Office
115 SQ FT
Common Area Access
Restrooms (Common Area)