Martin Gutierrez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Erika De La Cruz, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein.
APPROVED AS TO FORM:
_____________________________
Nathan Hodges, City Attorney
UC Davis Purchase Agreement # UCDPO00048675
Amendment # 2
SECOND AMENDMENT TO SHELTER SERVICES AGREEMENT
(City of McFarland)
THIS SECOND AMENDMENT is made to the University of California, Davis campus agreement # UCDPO00048675 between THE REGENTS OF THE UNIVERSITY OF CALIFORNIA (“University”) on behalf of its UC Davis Campus School of Veterinary Medicine on behalf of its Koret Shelter Medicine Program (“Facility”) and CITY OF MCFARLAND (“Shelter”).
The parties to the above-referenced agreement agree as follows:
1.Term. The term of the agreement shall be amended to extend through March 31, 2026.
2.Other Terms. All other terms and conditions of the agreement shall remain the same.
IN WITNESS WHEREOF, the parties have executed this amendment on the dates set forth below.
CITY OF MCFARLAND THE REGENTS OF THE
UNIVERSITY OF CALIFORNIA
By:___________________________
Print Name: ____________________
Title: _________________________
Date: _________________________
By: ___________________________
Steven Kobayashi
Associate Director
Procurement & Contracting Service
UC Davis
Date: _________________________ August 6, 2025
Steven Kobayashi Digitally signed by Steven Kobayashi
DN: cn=Steven Kobayashi, o=Regents of the University of California, ou=Procurement & Contracting Services,
[email protected], c=US
Date: 2025.08.06 15:17:13 -07'00'
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 10.
Section: PUBLIC HEARINGS
Meeting Date: August 13, 2025
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Megan Snyder, Community Development Director
Brianahi De Leon, Senior City Planner
SUBJECT: Waive Full Reading and Introduce Ordinance No. 7-2025 AN ORDINANCE OF
THE CITY OF MCFARLAND AMENDING MCFARLAND MUNICIPAL CODE CHAPTERS 17.153 OF TITLE 17 ZONING
SUMMARY:
On June 11th 2025, City staff presented to City Council a proposal for a new Home Occupation. The home occupation was for a barber station at a residential property. This proposal brought up a conversation on the types of uses and number of uses permitted. Mayor Saul Ayon made a request to City staff that an amendment be made to Chapter 17.153 of the McFarland Municipal Code. This request was to expand the uses permitted and create a limit of the number of permits per type of use. By implementing these changes to the Home Occupation Ordinance, staff is establishing consistency, uniformity, and clarity on the necessary standards, and the approval process. Expanding the uses permitted, staff is creating economic opportunity for both the City and the residents. Notice of Public Hearing was posted on the City of McFarland website and the City posting boards on July 25th, 2025.
FINANCIAL IMPACT:
This change will have no financial impact on the overall budget of the city.
RECOMMENDATION:
Staff Recommends introduction and approval of Ordinance No. 007-2025 APPROVING the amendment of the McFarland Municipal Code Chapter 17.153 of Title 17 Zoning.
ATTACHMENTS:
None
ORDINANCE NO. 7-2025
AN ORDINANCE OF THE CITY OF MCFARLAND AMENDING
MCFARLAND MUNICIPAL CODE CHAPTERS 17.153 OF TITLE 17
ZONING
Section 1. Recitals
WHEREAS, The City of McFarland (“City”) desires to amend, clarify and codify its Municipal Code Chapter related to Home Occupation;
WHEREAS, Adoption of this Ordinance amendment will provide uniform and clarity to the standards related to Title 17, Chapters 17.153.030, 17.153.050, and 17.153.070 of the McFarland Municipal Code.
WHEREAS, Adoption of this Ordinance amendment is in furtherance of the City’s goals and objectives while reducing the potentially negative impacts arising from potentially deficient and/or incomplete/incompatible Municipal Code Chapters.
WHEREAS, the City of McFarland held a public hearing to consider the approval of the recommendation for the City Council to adopt the amendment to the Municipal Code. The City of McFarland City Council received a report from City Staff, oral and written testimony from the public, and deliberated on the project.
WHEREAS, all legal prerequisites to adoption of this resolution have occurred.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MCFARLAND DOES ORDAIN AS FOLLOWS:
Section 2. Chapter 17.153 of the McFarland Municipal Code is hereby amended to read as Follows:
Chapter 17.153 HOME OCCUPATION PERMIT
17.153.030 - Permitted uses.
Home Occupations may include, but are not limited to, the following:
Table 1:
ACTIVITY INCLUDED OCCUPATION
On-site professional service and/or
consultation – by appointment only
Architect, broker, consultant, engineer, insurance agent, land surveyor, bookkeeper, accountant, typist, barber, cosmetologist, esthetician, manicurist, or similar use as determined by the community development director.
Off-site personal services requiring
home office
Gardening and landscaping service, locksmith, and other uses where storage in vehicle is required, or similar use as determined by the community development director.
Sales – no door-to-door sales, delivery
to customers only
Sales representative (including jewelry, cosmetics, products of domestic consumption), Cottage Food Operations, catalog and telephone sales only or similar use as determined by the community development director.
Artisan studio Artist, sculptor, photography studio, author, composer, weaver, crafts, rug and blanket weaving, lapidary or similar use as determined by the community development director.
Group instructional (income producing
activities)
Small day care or similar use as determined by the community development director.
Section 3. Chapter 17.153.050 of the McFarland Municipal Code is hereby amended to read as follows:
17.153.050 – Operating Standards
1. There shall be no displays or advertising signs on the premises.
2. There shall be no signs other than the address and name of the resident.
3. There shall be no advertising which identifies the home occupation by street name.
4. The home occupation shall be confined completely to one room located within the dwelling. It shall not occupy more than twenty-five percent of the gross area of one floor of the residence. No portion of any garage, carport or other accessory structure shall be used for home occupation purposes, other than for storage which does not impair required parking in the garage.
5. Only one vehicle no larger than a three-fourth-ton truck may be used by the occupant directly or indirectly in connection with a home occupation.
6. Subject to Municipal Code 17.153.070, no external alterations or construction features can be made to accommodate a home occupation, nor can any change be made which would change the fire rating of the structure or the fire district in which the structure is located.
7. There shall be no use or storage of material or mechanical equipment, either indoor or outdoor, not recognized as being part of a normal household or hobby use.
8. Activities conducted and equipment or material used shall not change the fire safety or occupancy classifications of the premises. Utility consumption shall not exceed normal residential usage.
9. No home occupation use shall create or cause noise, dust, light, vibration, odor, gas, fumes, toxic/hazardous materials, smoke, glare, electrical interference or other hazards or nuisances.
10. Employees engaged in the home occupation shall only be members of the resident family and shall be occupants of the dwelling. No outside employees.
11. The home occupation shall not require the services of commercial carrier freight deliveries at the site in a frequency greater than what is normally found in a residential area.
12. The home occupation shall not generate pedestrian or vehicular traffic in excess of that customarily associated with the land use district in which it is located.
13. No business license shall be issued until a home occupation permit is obtained, pursuant to the
McFarland municipal code.
14. A home occupation permit is not transferable.
15. There shall be no more than one home occupation per APN.
16. If the home occupation is to be conducted on rental property, the property owner’s written authorization for the proposed use shall be obtained prior to the submittal of a home occupation permit.
17. There is a limit of three (3) Home Occupation permits allowed per type of Barber and Cosmetology business per fiscal year will be issued.
18. Each Barber, Cosmetology, Aesthetician, Manicurist, or similar use Home Occupation is limited to one (1) chair per APN.
19. Dependent on the use proposed, additional permits and licenses may be required. i. Barber, Cosmetology, Aesthetician, Manicurist, or similar use services will require licenses, permits, and inspections by the Board of Cosmetology and remain in good standing. ii. Food or drink products sold will require a Kern County Cottage Food Permit issued by Kern County Environmental Health.
Section 4. Chapter 17.153.070 of the McFarland Municipal Code is hereby amended to read as follows:
17.153.070 – Process in Acquiring Home Occupation Permit Resident seeking a home occupation addition to their home shall apply for a Conditional Use Permit (CUP) & Home Occupation permit. Once the application, along with site plans and design have been submitted to the City, the application will go into the process of review. Application will then go to the Planning Commission and a public hearing will be conducted. The Planning Commission may then grant the permit along with any terms and conditions pertaining to occupation. No home occupation shall be established until an application for a home occupation permit has been submitted and approved as being consistent with the requirements of this section. No building license shall be applied for until after approval of the home occupation. Dependent on the use proposed, additional permits and licenses may be required. A probational one (1) year period is held to ensure that all terms and conditions are being met. After the probational period, the occupational permit shall be subject to annual review and will consist of an annual renewal.
Section 2. Notice. The City clerk shall certify to the passage and adoption of this ordinance and shall cause this Ordinance to be posted within 15 days after its passage, in accordance with Section 36933 of the Government Code.
Section 3. Severability. If any section, subsection, sentence, clause, phrase, or word of this Ordinance is, for any reason, deemed or held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or preempted by legislative enactment, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of McFarland hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or word thereof, regardless of the fact that any one or more sections, subsections, clauses, phrases, or word might subsequently be declared invalid or unconstitutional or preempted by subsequent legislation.
Section 4. Effective Date. This Ordinance shall take effect thirty days after its adoption pursuant to California Government Code section 36937.
Section 5. Certification; Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law.
INTRODUCED, at a Regular meeting of the City Council of the City of McFarland, California on 7/23/2025, by the following vote:
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of McFarland on 7/23/2025 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Anita Gonzalez
María T. Pérez
Martin Gutierrez
CITY OF MCFARLAND
______________________________
Saul Ayon, Mayor
I hereby certify that the foregoing Ordinance was duly and regularly adopted by the City Council of the City of McFarland by a Regular meeting thereof held on August 13, 2025.
ATTEST:
________________________________
Erika De La Cruz, City Clerk
APPROVED AS TO FORM:
_____________________________
Nathan Hodges, City Attorney
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 11.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: August 13, 2025
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Serrena McCuan, Human Resources Director
SUBJECT: Approval of Resolution No. 2025-115 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF MCFARLAND APPROVING THE BROKERAGE
SERVICES CONTRACT WITH HUB INTERNATIONAL
SUMMARY:
The City of McFarland currently utilizes a third-party benefits' administrator, but has identified a need for enhanced broker support to improve service delivery, streamline processes, and increase employee engagement during open enrollment and throughout the year. Following an evaluation of broker services, staff identified several challenges with the current structure, including:
• Limited day-to-day support for benefits administration • Lack of employee education and outreach during open enrollment • Fragmented open enrollment communication and logistics • Complexity of benefit plan design across multiple carriers • Limited access to specialized compliance and wellness resources HUB International, a top-five global broker with a strong regional presence in California’s Central Valley, has proposed solutions to these issues, including:
• Assigning a dedicated account executive (Bree Owens) to work directly with staff and employees
• Providing consolidated timelines and materials to streamline open enrollment • Bringing in carrier representatives and educational resources to improve employee understanding of benefits
• Identifying opportunities to consolidate benefit offerings for administrative efficiency and cost savings
• Offering access to a dedicated team of specialists in compliance, technology, communication, and wellness
HUB currently serves multiple cities in the region and brings deep experience in supporting municipalities with structures similar to the City of McFarland’s.
If all items proceed as planned, HUB International will begin providing services effective
September 1st, 2025.
FINANCIAL IMPACT:
There is no direct fiscal impact associated with this agreement. HUB International is compensated through standard broker commission arrangements with benefit providers.
RECOMMENDATION:
Staff recommends the City Council approve the selection of HUB International as the City of McFarland’s Employee Benefits Broker and authorize the City Manager to execute any necessary agreements.
ATTACHMENTS:
1. Exhibit A
RESOLUTION NO. 2025-115
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING
THE BROKERAGE SERVICES CONTRACT WITH HUB INTERNATIONAL
WHEREAS, the City of McFarland has identified challenges with its current benefits administration, including limited broker support, fragmented open enrollment processes, and a need for improved employee education; and
WHEREAS, HUB International has demonstrated the ability to provide comprehensive broker services tailored to the needs of municipal governments, with a proven track record in the California Central Valley; and
WHEREAS, HUB International will provide dedicated personnel, enhanced communication strategies, carrier coordination, and access to specialized experts to support the City’s employee benefits program;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of McFarland as follows:
1. The City Council hereby approves the selection of HUB International as the City’s Employee Benefits Broker.
2. The City Manager is authorized to execute all necessary documents and agreements to formalize this relationship.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on August 13, 2025 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Anita Gonzalez
María T. Pérez
Martin Gutierrez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Erika De La Cruz, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein.
APPROVED AS TO FORM:
_____________________________
Nathan Hodges, City Attorney
© 2025 HUB International Limited.
© 2025 HUB International Limited.
Risk & Insurance | Employee Benefits | Retirement & Private Wealth City of McFarland
HUB Employee Benefits
Consultants: Shaylyn Lewis, Vice President, Employee Benefits Bree Owens, Account Executive, Employee Benefits
Jennifer Christensen, EVP, Employee Benefits Practice Leader Rick Souza, HRIS Specialist
Date: August 13, 2025
© 2025 HUB International Limited. Risk & Insurance | Employee Benefits | Retirement & Private Wealth HUB
International
3 © 2024 HUB International.
About HUB International
550+
locations in
North America
2M+
clients
Top 5
global broker
based on revenue
95%
client retention
20,000+
employees
Highest
service tier with local
& regional carriers
4 © 2024 HUB International.
Proudly go above and beyond for our clients everyday!
• Multiple physical offices in the California Central Valley. • 10-year average team member experience.
• Average client retention is 10+ years.
• Local hands-on boutique service with an unmatched depth of resources. • Focused account executives managing 8-10 key clients. • Team members positioned for success with mentoring & continuing education. • Weekly team meetings with practice leadership.
• Specialized team members available when needed.
• Dedicated and client-centric support.
• Leaders in the California Central Valley community.
HUB California Central Valley Do the Right Thing Every Time!
5 © 2024 HUB International.
Your HUB Dedicated Team
Shaylyn Lewis
Vice President, Employee
Benefits
Bree Owens
Account Executive
Employee Benefits
Jennifer Christensen
EVP, Employee Benefits
Practice Leader
Megan Rocha
Account Representative
Employee Benefits
Liliana Salazar
Chief Compliance
Officer
Dan Openshaw
Director of Analytics
Lindsay Steckler
Consultant, Health
& Performance
Meagan Tyson
Director, Employee
Communication
Mackenzie
Mills
Consultant,
Technology
Heather Garbers
Consultant,
Worksite Benefits
Trevor Watson
Consultant,
Absence Mgmt
Andrea
Goodkin
Consultant.
Human Capital
Core Team
Extended Team
Additional Team
Paige Smit
Benefits Service Specialist
Employee Benefits
Rick Souza
Director of Benefit
Technology
6 © 2024 HUB International.
City of McFarland - Hub Partnership – What Does It Look Like?
Based on Specific Issues Identified from the City’s HR and Benefits Administration Team, Our Initial Partnership Will Entail the Following Action Plan:
• Limited Current Broker Support for Day-to-Day Needs – HUB will assign our most experienced Account Manager, Bree Owens, as your day to day “quarterback” for service needs, relieving Serrena of administrative burdens so she can focus on other pressing responsibilities. • Lack of Supportive Employee Education at Open Enrollment – HUB will team up with your staff to provide, clear, simple and ongoing benefit plan education for city employees, utilizing carrier reps when needed, to ensure employees understand their benefits—especially for plans like your current medical plan administered by EDIS. Our close partnership with EDIS also allows us to quickly escalate and resolve issues, ensuring a smooth as possible experience for both HR and employees. • Fragmented Open Enrollment Execution – HUB delivers a mutually agreed upon, specific OE timeline and project plan, including relevant materials, benefit guides, ID cards, and communications—ensuring clarity and an effective rollout. • Confusing Benefit Design Across Multiple Carriers – HUB will identify consolidation opportunities (e.g., dental, vision, life, LTD) to reduce complexity, improve administration, and potentially lower costs through bundled discounts. • Lack of Dedicated Specialist Support – With HUB, the City gains access to a full team of experts in benefits compliance, tech, communications, and wellness—ensuring quick issue resolution and ongoing support. • Multiple City Clients in the California Central Valley – Hub has partnered with numerous municipal clients throughout California’s Central Valley – many with benefit plan designs similar to that of the City of McFarland – for nearly a decade. This depth of experience makes us highly familiar with the unique needs of municipalities, including the specific medical plan structure currently in place at the city.
© 2024 HUB International Limited.
Thank you
© 2024 HUB International Limited.
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 12.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: August 13, 2025
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Serrena McCuan, Human Resources Director
SUBJECT: Approval of Resolution No. 2025-117 A RESOLUTION OF INTENTION
BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF
MCFARLAND
SUMMARY:
The City of McFarland currently provides retirement benefits through a defined contribution plan administered by John Hancock, which includes a 10% employer-paid contribution. While this model offers a fixed contribution, it lacks the long-term security and portability found in defined benefit plans that are commonly offered by public agencies. To support the City’s goals for long-term recruitment, retention, and competitive compensation, staff have evaluated participation in the California Public Employees’ Retirement System (CalPERS), the largest public retirement system in the state.
CalPERS offers a defined benefit retirement plan that provides lifetime income based on years of service, age at retirement, and final compensation. The standard employee contribution rates under CalPERS are:
-Local Miscellaneous Members: 7.75%
-Local Safety Members: 11.0%
Section 7522.20 (2% @ 62 Supplemental Formula) and Section 20037 (Three-Years Final Compensation) with 0% prior service for local miscellaneous members. Section 7522.25(b) (2% @ 57 Full Formula); Section 21574 (Fourth Level 1959 Survivor Benefits) and Section 20037 (Three-Years Final Compensation) with 0% prior service for local safety members.
These rates are generally lower than the City’s current 10% contribution and provide employees with a more predictable and secure retirement benefit. The first step in the CalPERS contracting process is the adoption of a Resolution of Intention, as required by Government Code Section 20475. This action does not obligate the City to a contract but allows CalPERS to begin the necessary steps to complete the administrative procedures. A formal contract will be brought back to the City Council for final approval following these steps:
Anticipated timeline of completion:
1. 08/13/2025 -Council Adopts Resolution of Intention
2. 08/18/2025- Employee Elections Held
3. 09/10/2025- Council Adopts Final Ordinance to Join CalPERS
4. 10/10/2025- Ordinance becomes effective
5. 12/19/2025- Effective Date of CalPERS contract
6. 01/2026- CalPERS takes effect with first payroll of the year If all milestones proceed as planned, CalPERS enrollment would begin with the first payroll cycle in January 2026.
FINANCIAL IMPACT:
There is no immediate fiscal impact resulting from the adoption of the Resolution of Intention.
Future fiscal impacts, including employer contribution rates and transition costs, will be outlined and presented to Council prior to final contract approval.
RECOMMENDATION:
Staff recommends the City Council adopt a Resolution of Intention to enroll in the California Public Employees’ Retirement System (CalPERS) pursuant to Government Code Section 20475, and direct staff to proceed with the necessary steps to establish CalPERS retirement benefits for eligible City employees.
ATTACHMENTS:
1. EXHIBIT A
2. EXHIBIT B
RESOLUTION NO. 2025-117
A RESOLUTION OF INTENTION BETWEEN THE BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL
CITY OF MCFARLAND
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies in the Public Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and WHEREAS, one of the steps required in the procedure is the adoption by the governing body of the public agency of a resolution giving notice of intention to approve a contract for such participation of said agency in the Public Employees' Retirement System, which resolution shall contain a summary of the major provisions of the proposed retirement plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of McFarland as follows:
1. That the governing body of the above agency gives, and it does hereby give notice of intention to approve a contact between said governing body and the Board of Adminsitration of the Public Employees' Retirement System, providing for participation of said agency in said retirement system, a copy of said contract and a copy of the summary of major provisions of the proposed plan being attached hereto, as an "Exhibit" and by this reference made a part hereof.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on August 13, 2025 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Anita Gonzalez
María T. Pérez
Martin Gutierrez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Erika De La Cruz, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein.
APPROVED AS TO FORM:
_____________________________
Nathan Hodges, City Attorney
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 13.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: August 13, 2025
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Yerlys Hernandez , Public Works Director
SUBJECT: Approval of Resolution No. 2025-119 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF MCFARLAND APPROVING THE ACCEPTANCE
OF THE QUOTE FROM PROCORE FOR THE IMPLEMENTATION OF
CONSTRUCTION MANAGEMENT SOFTWARE FOR THE NEW POLICE
DEPARTMENT BUILDING, AND AUTHORIZING THE CITY MANAGER TO
ENTER INTO A TWELVE-MONTH AGREEMENT FOR THE USE OF THE
SOFTWARE
SUMMARY:
Introduction: The purpose of this staff report is to provide an overview and recommendation for the implementation of Procore, a Project Management Software, for the Public Works Department. The Public Works Department will be providing Construction Management Services for the new Police Department Building.
Background: The City of McFarland's Public works department, Chief of Police, and City Manager are currently coordinating the Design work for the new Police Department. The Design for this project is approximately 95% complete and will soon be going into the Bidding phase of the project. In order to effectively manage a construction project of this magnitude, project management software is needed in order to keep record of all pertinent documents, project tracking, legal notices, and financials all in one centralized location.
It is crucial to procure the software now in order to get the project team familiarized with Procore and begin the implementation process before the bidding and construction phase.
The Public Works Department has selected Procore as its preferred project management software due to the familiarity with the software and to expedite the implementation process and ensure a seamless transition of knowledge to staff.
Although it is standard practice to receive at least (3) quotes or competitively bid any products, equipment, or services, The purchase of Procore subscription would be exempt from this requirement based on Municipal Code 2.24.070 Sub section H.
Since the City's Public Works Department will provide the construction management for the New Police Department, the city will be saving approximately 3-5% of the construction cost for these services if they were to use a Construction Management Firm. Procore will ensure staff can effectively manage this project in house for a small fraction of the cost. The cost for
Procore is $32,205.97.
FINANCIAL IMPACT:
The Financial Impact is $32,205.97. There will be no financial impact to the general fund as this cost will be covered by the grant received for the Police Department.
RECOMMENDATION:
Based on the outlined benefits and implementation plan, Staff recommends the City Council to move forward with purchase and implementation of Procore, a construction management software for the new Police Department Building, and authorizing the City Manager to enter into a Twelve month agreement for the use of the software.
ATTACHMENTS:
1. Commercial Order Form and Subscription Agreement with City of McFarland
2. Local Government Slick
3. Portfolio Financials Product Slick
4. Project Management for Owners
RESOLUTION NO. 2025-119
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING
THE ACCEPTANCE OF THE QUOTE FROM PROCORE FOR THE IMPLEMENTATION OF
CONSTRUCTION MANAGEMENT SOFTWARE FOR THE NEW POLICE DEPARTMENT BUILDING, AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A TWELVEMONTH AGREEMENT FOR THE USE OF THE SOFTWARE WHEREAS, The City of McFarland's Public works department, Chief of Police, and City Manager are currently coordinating the Design work for the new Police Department and the design for this project is approximately 95% complete and will soon be going into the Bidding phase of the project.
WHEREAS, In order to effectively manage a construction project of this magnitude, project management software is needed in order to keep record of all pertinent documents, project tracking, legal notices, and financials all in one centralized location.
WHEREAS, The Public Works Department has selected Procore as its preferred project management software due to the familiarity with the software and to expedite the implementation process and ensure a seamless transition of knowledge to staff.
WHEREAS, it is standard practice to receive at least (3) quotes or competitively bid any products, equipment, or services, The purchase of Procore subscription would be exempt from this requirement based on Municipal Code 2.24.070 Sub section H.
WHEREAS, the City's Public Works Department will provide the construction management for the New Police Department, the city will be saving approximately 3-5% of the construction cost for these services if they were to use a Construction Management Firm. Procore will ensure staff can effectively manage this project in house for a small fraction of the cost.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:
1. The foregoing recitals are true and correct and incorporated herein as if set forth in full
2. The City Council hereby approves the acceptance of the quote for Procore in the amount of $32,205.96 for the implementation of project management software
3. The City Council hereby authorizes the City Manager to enter into a twelve-month agreement for Procore Software
4. The City Clerk shall certify the passage and adoption of this resolution
5. This resolution is effective immediately.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on August 13, 2025 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Anita Gonzalez
María T. Pérez
Martin Gutierrez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Erika De La Cruz, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein.
APPROVED AS TO FORM:
_____________________________
Nathan Hodges, City Attorney
PROPOSED BY:
Gregory Colligan
[email protected]
6309 Carpinteria Avenue
Carpinteria, CA 93013
(866) 477-6267
DD_SF_CPQ_Order_Form_V1.3.3
Order Form
Customer Name City of McFarland
Quote Number Q-185160
Generated By Gregory Colligan
BILL TO:
Yerlys Hernandez
[email protected]
+1 661-444-0813
City of McFarland
401 west kern ave., mc farland, CA 93250, United States Subscription Info Subscription Type Quote
Start Date September 15, 2025
End Date September 14, 2026
Full Subscription Term 12
Billing Frequency Annual
Payment Terms Net 15
Auto Renewal No
PO #
Tax Exempt No
VAT ID
Currency USD
Offer Valid Through September 12, 2025
SHIP TO:
Yerlys Hernandez
[email protected]
+1 661-444-0813
City of McFarland
401 west kern ave., mc farland, CA 93250, United States
Year 1 Subscription
Product Name Unit of Measure Qty Subscription Term Annual Fees Project Financials
Tools: Budget, Change Events, Change Orders, Commitments, Direct Costs, Maps, Prime Contract, Project Status Snapshots ACV(MM) 10 September 15, 2025 - September 14, 2026 $4,016.35 Invoice Management
Tools: Invoicing, Maps ACV(MM) 10 September 15, 2025 - September 14, 2026 $3,000.38 Quality & Safety
Tools: Action Plans, Daily Log, Forms, Incidents, Inspections, Maps, Observations, Photos, Schedule ACV(MM) 10 September 15, 2025 - September 14, 2026 $2,519.85 Project Management Pro
Tools: Copilot, Correspondence, Daily Log, Drawings, Emails, Equipment Register, Maps, Meetings, Photos, Punch List, RFI, Schedule, Specifications, Submittals, Timecard, Transmittals ACV(MM) 10 September 15, 2025 - September 14, 2026 $7,719.39 Subtotal $17,255.97
One Time Fees
Product Name Unit of Measure Qty Fees
Statement of Work - Professional Services
Description: Requires custom SOW. Each 1 $14,950.00
Subtotal $14,950.00
Total Fees
One Time Fees: $14,950.00
Subscription Fees: $17,255.97
Total Fees: $32,205.97
TERMS AND CONDITIONS
The prices shown above have been rounded to two decimal places for display purposes. Prices quoted do not include taxes. One-time promotional pricing, when applicable on the Order, will expire at the end of the Subscription Term.
The following are the Usage Metrics for the Services in accordance with the Unit of Measure listed in the Product Table above. If Customer’s usage exceeds the quantity listed within the Product Table above, then Customer will be subject to additional Fees:
Annual Construction Volume (“ACV”) means the aggregate dollar value of the construction work performed or put in place for all distinct projects for which Customer utilizes the Subscription Services identified with Customer’s Procore account(s) during each 12-month period identified on this Order.
In addition to the tools listed above, all Procore clients have access to the following core tools: directory, documents, reports, and task, except for those clients who have purchased only Capital Planning and/or Portfolio Financials.
This Order is governed by the terms of the Procore Subscription and Services Agreement (for U.S. Public Sector only) found at https://www.procore.com/legal/subscriptionagreements/public-sector (the “SSA”) and the Data Processing Addendum found at https://www.procore.com/legal/dpa (the “DPA”). To the extent this Order includes products governed by any service-specific terms found at https://www.procore.com/legal/pay (“Service-Specific Terms”), such Service-Specific Terms also apply. This Order, the SSA, and the DPA constitute the entire agreement between Procore and Customer, superseding any other terms including, but not limited to, the terms of any Customer purchase order and any prior agreements between the Parties regarding Customer’s purchase of services from Procore.
Each Party represents that it has the authority to enter into this Order.
To view details of services purchased, please visit this page.
Fees and Billing for Professional Services will be set forth in the applicable Statement of Work.
City of McFarland (“Customer”)
Signature: [counterpartySignerSignature_XFajHdw]
Name: [counterpartySignerName_4XsfXtI]
Title: [counterpartySignerTitle_kzossVR]
Date: [counterpartySignerDateField_pQGBvHK]
[counterpartySignerInitials_Wcdphon]
I accept the terms and conditions of the SSA found at
https://www.procore.com/legal/subscription-agreements/public-sector Procore Technologies, Inc. (“Procore”)
Signature: [procoreSignerSignature_0cGdUe2]
Name: [procoreSignerName_v53K5so]
Title: [procoreSignerTitle_Oj1XRwQ]
Date: [procoreSignerDateField_nFyfcrD]
OVERVIEW
Date: June 23, 2025
Procore Technologies, Inc., (Procore) a Delaware corporation, having its principal place of business at 6309 Carpinteria Avenue Carpinteria, CA 93013, is pleased to present this Statement of Work (“SOW”) for Procore Customer(s):
City of McFarland having its address at 401 West Kern Ave., McFarland, CA 93250, United States.
Customer has chosen to implement Procore’s Project Management Pro, Quality and Safety, Project Financials and Invoice Management products. To streamline the implementation and rollout of Procore for Customer projects in North America, Customer and Procore agree to the following scope of services by Procore:
This SOW includes access to Project Management Services, Virtual Consulting Services, and Custom Solution Services.
These services benefit the Customer in the following ways:
● Project Management Services ensure a consistent point of contact throughout the implementation to manage the successful execution of service project scope. ● Virtual Consulting Services provide guidance and best practices, for product as well as business processes, in order to successfully execute project scope. ● Custom Solution Services allow for PDF standardization across the organization. procore.com | 2
SCOPE OF WORK
PROJECT MANAGEMENT SERVICES
Procore will provide one (1) Project Manager (PM) to provide Project Management efforts. The Customer will identify lead Procore administrators within the Customer organization who will have direct access to the designated PM.
Project Management Services may include:
● Coordination, planning, and managing the execution of all services contained within this statement of work
● Monitoring SOW services usage and managing changes to scope related to available hours and jointly (customer/Procore) defined schedule milestones
● Providing recurring project status updates, monitoring the health of the project, identifying and communicating project risk, and managing implementation success criteria ● Developing an implementation plan based on customer objectives ● Providing strategy and consultation expertise on rollout and training best practices, when in scope
CONSULTING SERVICES
Procore will provide Virtual Consulting Services to be used for assistance with rolling out Procore. For purposes of clarity, Consulting Services are separate from Project Management. Consulting Services are typically led by Strategic Product Consultants. Procore Consulting Services may be leveraged for any of the following:
● Scheduled virtual consulting sessions, which may include:
○ Procore led discovery intended to surface a customer's business outcomes, processes and strategy
○ Advisement on recommended processes per the customer’s processes, goals and products ○ Consultative guidance on best practices, configuration settings, permissions based on desired business process and outcomes
○ General Q&A with Customer’s Procore Committee or individual project teams. ○ Review and guidance on customer drafted SOPs in a Procore provided template. ● In addition the Consulting Services may provide the following services:
○ Coordination, planning, and research in support of process or project requirements.
CUSTOM SOLUTIONS
Procore will provide hours for custom form development. These services will be provided by the Custom Solutions team and include customizing PDF item outputs for select Procore tool(s). Additional hours may be purchased as needed.
Any and all intellectual property and/or technology (“IP”) that is created in connection with this SOW by Procore shall be deemed “Services” as defined in the Agreement and owned solely by Procore. Procore hereby grants Customer the non-exclusive right to use any custom forms, tools and workflows solely for its internal business purposes during the term of the Agreement. procore.com | 3
EXCLUSIONS:
The following are considered out of scope for this SOW, unless explicitly stated:
● Configuration
○ Customer is responsible for configuring the Procore tools based on the guidance and best practices provided via Consulting Services
● Data population
● End-user training
● Development of, or modification to, Standard Operating Procedures (SOPs), this includes process flow diagrams, stakeholder maps, etc.
● Integration with third-party applications, tools, or systems not specifically outlined ● Data Migration including data cleaning and data mapping ● Onsite implementation, support, training, and/or consultation ● Any tools not explicitly noted as being in scope
● User Acceptance Testing
● System administration
procore.com | 4
SUMMARY OF SERVICES
ONE TIME SERVICES
Service Description Up To Hours Hourly Rate Fee
Project
Management
Services
Ongoing access to Project
Manager.
Includes Project Management
efforts and Project
Administration.
30 $200 $6,000
Consulting
Services
Virtual Consulting focused on
Procore best practices. 38 $275 $10,450
Custom Solutions Generation of custom forms
within specific Procore tool(s) 5 $200 $1,000
Subtotal 73 $17,450
One Time Discount ($2,500)
Total 73 $14,950
The above breakdown of cost allocation represents our best estimate of resource effort per service type. This breakdown may be revised by Customer and Procore’s mutual agreement should service needs change during the course of the implementation. For calls or meetings that require more than one (1) Procore resource, hours will draw against the relevant bank of hours per resource.
Customer’s expected project timeline is six (6) months from the project kickoff call and/or mutually agreed upon project start date (the “Project Start Date”). The Project Start Date shall be no more than thirty (30) days from the Service Start Date. However, Services shall remain valid between Service Start Date and Service End Date specified in the Order Form, or for twelve (12) months from the Service Start Date, whichever occurs first.
ADD-ON SERVICES
Services in addition to those included in this Statement of Work are available upon request for a fee and are not included in this scope.
PRICING AND PAYMENT TERMS
Work performed against this statement-of-work (SOW) will be conducted via a fee of $14,950 and is due as defined in the order form. All fees are in USD.
procore.com | 5
GENERAL CUSTOMER REQUIREMENTS AND DEPENDENCIES, APPLICABLE TO ALL SERVICES Customer Resources
Customer will identify a Procore Committee who will be responsible for the success of Procore within the Customer’s organization. The Procore Committee will consist of:
1. An Executive Sponsor who serves as the directly accountable individual for the success of Procore.
Responsibilities of the Executive Sponsor include but are not limited to:
a. Reviewing Implementation Progress Reports Generated by the Procore Project Manager. b. Attending Business Reviews conducted by the Procore Customer Success Manager. c. Acting as final Decision Maker should the Procore Committee be unable to reach general consensus
d. Acting as escalation contact for risk
2. Procore Admin(s) who serves as the key stakeholder(s) for the rollout of Procore at Customer’s organization. Responsibilities of the Procore Admin(s) included but are not limited to:
a. Actively participating in the implementation process by attending consultations and solidifying standard operating procedures
b. Act as the main point of contact for training questions from Customer employees and escalate issues to Procore Project Manager, if needed
c. Completing assigned tasks via the Project Plan
d. Complete Procore Certifications
3. Procore Advisors who provide input and feedback on Customer-specific processes.
Customer Partnership
The Customer is an active participant in the implementation from the beginning of the process in order to facilitate the delivery of the Services in this scope of work. Customer personnel must be available as needed to complete the project Alignment meeting, discuss requirements, attend consultations and training, develop interfaces, perform system testing, and send communication to third parties and internal staff. Customer’s Procore Admins will have overall responsibility finalizing design decisions within the Customer organization. If Customer resources are not available as needed, or there are organizational changes, it will negatively impact the delivery of services included in this Statement of Work. The Customer resource time commitment will vary based on the complexity of the requirements and desired timeline.
The Customer will be responsible for the following, if applicable to Services purchased:
● System Configuration: The customer will be responsible for configuring Procore based upon consultation call outcomes unless otherwise specified in this Statement of Work via Remote Administration Services
● Standard Operating Procedures: The Customer will be responsible for writing Standard Operating Procedures (SOPs) to support the internal users and their interactions with Procore application unless otherwise specified in this Statement of Work.
● Data Import: The Customer will be responsible for loading all data into the Procore system via the Procore user interface or Procore imports tool unless otherwise specified in this Statement of work via Remote Administration Services.
● Standard Reports: The Customer will be responsible for identifying the standard reports that are applicable to their business needs and run these reports during the testing phase of the project. ● API Integrations: The customer is responsible for building any API integrations into Procore.
Middleware programs and API calls will be managed and written by the customer unless otherwise specified in this SOW.
LEGAL TERMS AND CONDITIONS
This SOW is also governed by the Procore Subscription and Services Agreement (“Agreement”), as well as the Procore Data Protection Addendum (“DPA”), as executed by Customer. In addition, purchase and use of the Configuration Services described herein are governed by the this SOW, Agreement, the DPA, and the Supplemental Terms for Configuration and Data Population Services found at https://www.procore.com/legal/configuration-services-supplemental-terms. Customer acknowledges and procore.com | 6
agrees that Procore may transfer and process data to and in the United States and anywhere else in the world where Procore, its Affiliates, or its Subprocessors maintain data processing operations. Subject to the terms of the DPA, Procore may appoint additional Subprocessors as described in this SOW beyond those Subprocessors designated in the DPA if required to provide the services described herein. procore.com | 7
“The imperative we had was, ‘Here’s $200
million. Complete all these projects in the next
two years.’ That would not have been possible
to even get off the ground without the use of a
management platform like Procore.”
Craig Hodges
Project Manager
City of Memphis
Those who serve the public
trust Procore
Innovative projects call for innovative solutions, and there's no time for chasing answers and pushing processes. Streamline complex capital programs, eliminate inefficiencies, and ensure seamless collaboration, keeping every project on time and on budget With all your contractors’ and subcontractors’ project information in one system, it's easy to generate and share accurate reports across your projects or portfolio - no manual processes required.
Information at your fingertips.
Meet complex regulations with robust compliance tracking and reporting as well as centralized documentation, audits, and inspections. Track fraud, waste and abuse and report on whether projects meet their local employee and DEI goals.
Streamline compliance.
With Procore, you own your data, so whether you need to reference project details in five months or 50 years, everything will be available when you need it.
Own your data.
procore.com | 866 477 6267
— Procore
— YOU’RE IN GOOD COMPANY ——————————————————————————————————————-————-
procore.com | 866 477 6267
Maximize your efficiency.
Seamlessly collaborate with contractors on all
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Track your information.
Access all your financial information and view
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Control your process.
Compare bids side-by-side in a single dashboard,
standardize reporting, and share cost tracking
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Everything your spreadsheets
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See the numbers behind your construction projects and analyze performance across your portfolio. Manage complexity by eliminating 80% of your team’s administrative work and give them access to actionable financial information. “I’ve always thought, how do we get 10%
better results out of $250M in spend?
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MICHAEL TURNER
President, Oxford Properties
procore.com | 866 477 6267
Closely manage your projects
from anywhere.
Procore helps you make better decisions, faster, with up-to-date project data and visibility into every step of the process.
Stay on schedule.
Get access to the information you need to manage
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Understand the ins and outs of the project with one
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“There’s an expense to any software
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Fort Wayne Community Schools
“Procore has transformed our entire
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and ultimately the impact of our brand.”
PETE ZAFROS
EYA Homes
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 14.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: August 13, 2025
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Paul Saldaña , Economic Development Manager
SUBJECT: Approval of Resolution 2025-114 A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MCFARLAND APPROVING A LEASE AGREEMENT WITH DOMAIN X GYM FOR 974 FRONTAGE AVENUE
SUMMARY:
Domain X Gym is a locally owned and operated facility in the City of McFarland. They have expressed interest in moving to a newer facility and identified property owned by the City as a suitable location. The gym will be investing approximately $40,000 in tenant improvements.
They have requested a five-year lease from the City.
The City offered a lease that would support the growth of this small business and allow them the opportunity to receive their investment during the duration of the lease period. The attached lease proposes a period of 15 months when there would be no monthly payments.
Starting on month 16 and continuing through the 60 months of the lease, the business will pay $1,000 per month.
The tenant is responsible for all improvements, utilities, insurance and other costs of operation. The lease has been reviewed by the City Attorney.
FINANCIAL IMPACT:
City would generate $45,000 in lease revenue during the duration of the lease.
RECOMMENDATION:
City Council adopt Resolution 2025-114
ATTACHMENTS:
1. Gym Lease Final version
RESOLUTION NO. 2025-114
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING A LEASE AGREEMENT WITH DOMAIN X GYM FOR 974 FRONTAGE AVENUE WHEREAS, Domain X Gym was issued a business license on January 29,2024 and commenced operations as a gym adn fitness facility in the City of McFarland; and WHEREAS, Domain X desires to expand their operation and contour to provide weight training and fitness services to the community; and
WHEREAS, the City of McFarland, as owner of 974 Frontage Avenue, desires to lease the facility to Domain X for the purposes of operating the gym and fitness center.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:
1. The City Council of the CIty of McFarland approves the lease between the City and Domain X Gym.
2. The City Manager or designee is authorized to take any action necessary to effectuate the lease in accordance with its terms and conditions.
3. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on August 13, 2025 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Anita Gonzalez
María T. Pérez
Martin Gutierrez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Erika De La Cruz, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein.
APPROVED AS TO FORM:
_____________________________
Nathan Hodges, City Attorney
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LEASE
by and between
Domain X Gym
as Lessee
and
City of McFarland,
as Lessor
TABLE OF CONTENTS
Page
-i1. Definitions ..........................................................................................................................1
2. Lease of Property................................................................................................................1
2.1 Property; Title.........................................................................................................1
3. Lease Provisions.................................................................................................................2
3.1 Permitted Use; Compliance with Legal Requirements...........................................2
3.2 Term........................................................................................................................3
3.2.1 Initial Term.................................................................................................3
3.2.2 Option to Extend.........................................................................................3
3.2.3 Expiration; No Holdover ............................................................................3
3.2.4 Early Termination.......................................................................................3
3.3 Permits....................................................................................................................3
3.4 Rent.........................................................................................................................4
3.4.1 Late Payment ..............................................................................................4
3.5 Lessee Insurance.....................................................................................................4
3.6 Lessor Insurance .....................................................................................................4
3.7 Indemnification.......................................................................................................4
3.8 Limit of Liability ....................................................................................................4
3.9 Consequential Damages..........................................................................................4
3.10 Assignment and Sublease; Non-Disturbance..........................................................5
3.10.1 Assignment and Subleases by Lessee.........................................................5
3.10.2 Assignments by Lessor...............................................................................5
3.10.3 Non-Disturbance Lease-Future Lenders.....................................................5
3.11 Inspection and Access.............................................................................................6
3.12 Surrender of Property .............................................................................................6
3.13 Hazardous Materials...............................................................................................6
3.14 Events of Default ....................................................................................................8
3.14.1 Lessee Event of Default..............................................................................8
3.14.2 Lessor Event of Default..............................................................................8
3.15 Actions in Case of Default......................................................................................9
3.15.1 For Lessor...................................................................................................9
TABLE OF CONTENTS
(continued)
Page
-ii3.15.2 For Lessee...................................................................................................9
4. Miscellaneous...................................................................................................................10
4.1 Construction of Certain Terms and Phrases .........................................................10
4.2 Amendments.........................................................................................................11
4.3 Taxes.....................................................................................................................11
4.4 Headings...............................................................................................................11
4.5 Binding Effect.......................................................................................................12
4.6 Memorandum of Lease; Fixture Filing.................................................................11
4.7 No Brokers............................................................................................................12
4.8 Waiver...................................................................................................................12
4.9 Remedies Cumulative...........................................................................................12
4.10 Notices..................................................................................................................12
4.11 Severability...........................................................................................................13
4.12 No Third Party Beneficiary ..................................................................................13
4.13 Quiet Enjoyment...................................................................................................13
4.14 Choice of Law.......................................................................................................13
4.15 Dispute Resolution................................................................................................14
4.16 Further Assurance.................................................................................................14
4.17 Counterparts..........................................................................................................14
4.18 Entire Lease ..........................................................................................................14
4.19 No Merger.............................................................................................................14
4.20 Time......................................................................................................................14
4.21 Business Day ........................................................................................................15
4.22 Accord & Satisfaction...........................................................................................15
4.23 No Partnership ......................................................................................................15
4.24 Survival.................................................................................................................15
-1-
LAND LEASE
This LEASE AGREEMENT (the "Lease") is made and entered into as of September 1, 2024 (the "Effective Date"), by and between the City of McFarland, a California Municipal Corporation organized and existing under the laws of the State of California (“Lessor”), and Domain X Gym, a sole proprietorship (“Lessee”). Lessee and Lessor are sometimes hereinafter individually referred to as a “Party” and collectively as the “Parties.” The lease transaction contemplated by this Lease is hereinafter referred to as the “Transaction.”
RECITALS
A. Lessor is the owner of that certain real property and building commonly known as 974 Frontage, McFarland, CA 93250, and more particularly shown on Exhibit A attached hereto (the “Property”).
B. Lessor desires to lease to Lessee the Property, and Lessee desires to lease the Property from Lessor for the purpose of operation of gym and fitness center on the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and Leases herein contained, the Parties hereto agree upon the following terms and conditions.
LEASE
1. Definitions. Unless otherwise required by the context in which any term appears, capitalized terms used in this Lease shall have the respective meanings set forth in Exhibit B – GLOSSARY OF TERMS, attached hereto.
2. Lease of Property.
2.1 Property; Title.
(a) The lease of the Property to Lessee for the Permitted Use shall commence in accordance with the Rent requirements set forth in Section 3.4 and Section 4.2. Lessor further grants to Lessee, during the period commencing on the Effective Date of this Lease and ending upon the expiration or earlier termination of the Term of the leasing contemplated. hereby:
(b) Lessor represents that as of the date hereof:
(i) Lessor has lawful title to the Property and full right to enter into this Lease;
-2-
(ii) Lessor is an organized and existing under the laws of the State of California and has all requisite powers and all authorizations required to own and operate the Property;
(iii) Lessor has obtained all third-party approvals and consents (if any) required to enter into this Lease and perform its obligations hereunder; (iv) Property is free from any mortgages, liens and encumbrances and rights of third parties that could materially and adversely affect Lessee's right to use and occupy the Property, other than (1) no other Lessees have any right to enter, occupy or use the Property without Lessor's prior approval (which approval shall be exercised in a manner consistent with the rights of Lessee under this Lease so as to avoid any interference with or disturbance of Lessee’s operation.
(v) Lessor is not a party to, or bound as a successor-in-interest to, or assignee of, a party to, any covenants, conditions, encumbrances, leases, Leases, or use restrictions that prevent or materially restrict the construction, installation or operation of the Permitted Use on the Property; and Lessor warrants there are no existing covenants, conditions, encumbrances, leases, or use restrictions to which it is not a party or bound by that will prevent or materially restrict Lessees use of the Property during the term of the Lease.
3. Lease Provisions.
3.1 Permitted Use; Compliance with Legal Requirements.
(a) Lessee shall use the Property solely for gym and fitness center (the “Permitted Use”) and shall not use or permit the Property to be used for any other use or purpose whatsoever without Lessor’s prior written (which approval shall not be unreasonably withheld, delayed or conditioned).
(b) Lessee shall procure, at its sole cost and expense, any and all permits required for Lessee’s use and occupancy of the Property.
3.2 Term.
3.2.1 Initial Term. The initial Term of this Lease shall begin upon the Effective Date of this Agreement and shall expire on the last day of the 60th month.
3.2.2 Option to Extend. The parties hereto may elect to extend this Agreement upon such terms and conditions as may be agreed upon in writing and signed by the parties at the time of any such extension. Should Lessee desire such an extension, Lessee agrees to provide notice to Lessor requesting such an extension, along with the proposed terms of the extension, at least 90 days prior to the expiration of this Agreement.
3.2.3 Expiration; No Holdover. Upon the expiration of the initial Term and all applicable Renewal Terms, this Lease shall automatically expire and Lessee shall vacate the Property.
-3-
3.2.4 Early Termination. Lessee, at its sole and absolute discretion, shall have the right to terminate this Lease at any time and for any reason during the Term, effective upon six (6) months’ prior written notice to Lessor. Upon such termination, except for rights and obligations that expressly survive termination as set forth herein, neither party shall have any further liability under this Lease.
3.3 Permits. Lessee hereby agrees to obtain and keep in full force and effect for the duration of this Lease all Permits necessary for the installation, operation of the Permitted Use at its own cost and expense. Lessor hereby consents to any action taken by Lessee in applying for any and all such Permits, and to the extent necessary or convenient, agrees to join or otherwise acknowledge any application or filing for the same.
3.4 Rent. Commencing on the Effective Date, Lessee agrees to pay Rent to Lessor, in advance, on the first day of the month in accordance with the following schedule:
Months 1-15 $0
Months 16-60 $1,000
Late Payment. If Lessee is delinquent by ten (10) or more calendar days after the date such payment of Rent or any other amount was due and payable under this Lease, Lessee shall pay to Lessor on demand a late payment charge equal to two (2%) of such delinquent sum.
3.5 Lessee Insurance. Lessee shall, at Lessee’s sole cost and expense, maintain during the Term, beginning with the Commencement of Construction, the insurance coverage described on Exhibit C attached hereto.
3.6 Lessor Insurance. Lessor shall, at Lessor’s sole cost and expense, maintain during the Term and beginning with any Commencement of Construction, the insurance coverage described on Exhibit C attached hereto.
3.7 Indemnification. Lessor and Lessee hereto agree to indemnify, defend, and hold the other harmless from and against any and all liability, loss, expense, attorneys’ fees, or claims for injury and/or damages arising from or in any way connected to the performance of this Lease but only in proportion and to the extent such liability, loss, expenses, attorneys’ fees, or claims for injury or damages caused by or result from the negligent or intentional acts or omissions of the indemnifying Party, its officers, agents or employees in or about the Property. The duties described in this Section 3.7 apply as of the Effective Date of this Lease and survive the termination thereof.
This indemnity does not cover claims arising from the presence or release of Hazardous Materials subject to Section 3.13 of this Lease.
3.8 Limit of Liability. To the maximum extent permitted by law, Lessor agrees to limit the Lessee’s liability for any and all claims, losses, costs, damages of any nature whatsoever or claims expenses from any cause or causes, including attorneys’ fees and costs and expert-witness fees and costs, so the total aggregate liability of the Lessee to the Lessor shall not exceed the outstanding amounts of the Rent due under the Term of the Lease. This limitation shall apply
-4-
regardless of the cause of action or legal theory pled or asserted. The duties described in this Section 3.8 apply as of the Effective Date of this Lease and survive the termination thereof.
3.9 Consequential Damages. Notwithstanding any other provision of this Lease, and to the fullest extent permitted by law, neither the Lessor nor the Lessee, their respective officers, directors, partners, employees, contractors or subcontractors shall be liable to the other or shall make any claim for any incidental, indirect or consequential damages arising out of or connected in any way to this Lease. This mutual waiver of consequential damages shall include, but is not limited to, loss of use, loss of profit, loss of business, loss of income, loss of reputation or any other consequential damages that either Party may have incurred from any cause of action including negligence, strict liability, breach of contract and breach of strict or implied warrantee.
The duties described in this Section 3.9 apply as of the Effective Date of this Lease and survive the termination thereof.
3.10 Assignment and Sublease; Non-Disturbance.
3.10.1 Assignment and Subleases by Lessee. Except as provided below, Lessee may assign this Lease and its rights and obligations under this Lease or sublet the Property leased by Lessee, only with the prior written consent of Lessor, which consent may not be unreasonably withheld, conditioned or delayed.
Notwithstanding the foregoing, Lessee may assign this Lease or any of its rights and obligations under this Lease, or sublet the Property leased by Lessee (provided, however, that any such assignee or sublease pursuant to clause (i) through clause (iv) below shall agree to accept the terms and conditions of this Lease and that any sublease shall be subject to the provisions of this Lease):
(a) to one or more of its Affiliates (including, without limitation, a special– purpose entity which is an Affiliate of the Lessee;
(b) to any entity acquiring or succeeding to all or substantially all of the assets of Lessee;
(c) to a successor entity in a merger, consolidation or acquisition transaction with Lessee; or
(d) to one or more lenders or other third parties in connection with a financing and/or sale-leaseback or lease-sublease back transaction.
Lessee shall notify Lessor of any assignment of this Lease or of its rights or obligations under this Lease and of any sublease. Except in the event of sublease, the assigning Lessee shall be released and discharged from all obligations of Lessee as of the date of assignment of this Lease.
3.10.2 Assignments by Lessor. All obligations of Lessor under this Lease will be binding upon Lessor only during the period of its ownership of the Property and not thereafter.
The term “Lessor” in this Lease shall mean only the current owner of the Property. In the event of a transfer by such owner of its interest in the Property and the assumption of this Lease by a subsequent owner of the Property, such transferring owner shall thereupon be released and
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discharged from all obligations of Lessor hereunder thereafter accruing, but such obligations shall be binding during the Term upon each new owner for the duration of such owner’s ownership of the Property. Lessor shall not assign its interest under this Lease separately from its ownership of the Property. Any purchaser or other transferee of Lessor’s interest in the Property shall acquire such interest and by acquiring Lessor’s interest in the Property, shall be deemed to have accepted and assumed all the rights and obligations of Lessor under this Lease.
3.10.3 Non-Disturbance Lease-Future Lenders. The Parties intend that this Lease, and the rights of Lessee hereunder (including, without limitation, Lessee's rights under this Lease, and all rights of Lessee with respect to the Security) shall be superior, and not subject or subordinate, to any future lien, charge, mortgage or security interest in or on the Property.
Notwithstanding the foregoing, if this Lease and the rights of Lessee hereunder shall be subject and subordinate to any such future lien, charge, mortgage or security interest in or on the Property by operation of law, or if the holder of any such future lien, charge, mortgage or security interest in or on the Property (each a "Future Lender") shall require the subordination of this Lease to the lien of such future lien, charge, mortgage or security interest in or on the Property, Lessee shall not be obligated to subordinate its rights and interests hereunder unless such Future Lender enters into a non-disturbance Lease with Lessee. Lessee agrees to use good faith efforts to agree upon a non-disturbance Lease with any such Future Lender.
3.11 Inspection and Access.
(a) In the event of an emergency, Lessor and its agents, representatives, contractor or designees, shall be allowed full and immediate access to the Property without being subject to the notification and other limitations referenced in Section 3.11(b) below. (b) Lessor and its agents, representatives, contractors or designees, shall, upon at least twenty-four (24) hours prior written notice to the Lessee (which written notice may be made by email to Lessee), be permitted to access the Property at any time to inspect and maintain the Property for any business purpose (including, but not limited to, security); provided that Lessor be accompanied by a Lessee Representative at all times; and, will avoid interference with Lessee’s operations (except to an immaterial degree, and then only to the minimum extent necessary), and agrees to cooperate with and assist Lessee in preventing such interference by such other Persons.
Lessor and such other Persons shall use all reasonable efforts to not disturb Lessee’s operations during such access.
3.12 Surrender of Property. Upon the expiration or termination of this Lease pursuant to the provisions hereof, Lessee shall quit and surrender the Property to Lessor in good order, condition and repair in accordance with the provisions of this Section 3.12. Provided Lessor is not in default under this Lease beyond any applicable cure, such surrender of the Property and removal of any personal property shall be accomplished at Lessee’s sole cost and expense. If Lessor is in default under this Lease beyond any applicable cure period, the Lessee’s expenses incurred in the surrender of the Property including damages and removal of personal property shall be a recoverable expense. On a mutually convenient date, but in no case later than thirty (30) days after the termination or expiration of this Lease, Lessee shall remove from the Property all personal property in a similar condition, and return such property to Lessor, reasonable wear and tear and loss by casualty or other causes beyond Lessee’s reasonable control excepted.
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3.13 Hazardous Materials. Except for Hazardous Materials contained in products used by Lessee in de minimis quantities for ordinary cleaning purposes,), Lessee agrees not to cause or permit any Hazardous Materials to be brought upon, stored, used, handled, generated, released or disposed of on, in, under or about the Property, or any other portion of the Property by Lessee, its agents, officers, directors, shareholders, members, managers, partners, employees, subleases, assignees, licensees, contractors or invitees (collectively, "Lessee’s Parties"), without the prior written consent of Lessor, which consent Lessor may withhold in its sole and absolute discretion.
Upon the expiration or earlier termination of this Lease, Lessee agrees to promptly remove from the Property, and the Property, at its sole cost and expense, any and all Hazardous Materials, including any equipment or systems containing Hazardous Materials which are installed, brought upon, stored, used, generated or released upon, in, under or about the Property, and/or the Property or any portion thereof by Lessee or any of Lessee's Parties. To the fullest extent permitted by law, Lessee agrees to promptly indemnify, protect, defend and hold harmless Lessor and Lessor's members, shareholders, partners, officers, directors, managers, employees, agents, contractors, successors and assigns (collectively, "Lessor Parties") from and against any and all claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines, expenses and costs (including, without limitation, clean-up, removal, remediation and restoration costs, sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees and court costs) which arise or result from the presence of Hazardous Materials on, in, under or about the Property, or any other portion of the Property and which are caused or permitted by Lessee or any of Lessee's Parties.
The provisions of this Section 3.13 will survive the expiration or earlier termination of this Lease.
Lessor shall indemnify, defend, and hold Lessee harmless from and against any and all losses, claims, demands, actions, suits, damages, expenses (including, without limitation, remediation, removal, repair, corrective action, or cleanup expenses), and costs (including, without limitation, actual attorneys' fees and consultant fees) which are brought or recoverable against, or suffered or incurred by Lessee as a result of the presence of Hazardous Materials on, in, under or about the Property, or any other portion of the Property and which are caused or permitted by Lessor or any Lessor Parties. The obligations of Lessor under this Section 3.13 shall survive any termination of this Lease.
Notwithstanding anything to the contrary in this Section 3.13, Lessee shall have no liability of any kind to Lessor as to Hazardous Materials on, under or about the Property caused, released or permitted by:
(a) Lessor, its agents, employees, contractors or invitees; (b) Any other Person or entity located outside of the Property; or (c) In existence as of the Effective Date whether or not caused by Lessor, its agents, employees, contractors or invitees.
Lessor represents that, to its knowledge, as of the date hereof there are no Hazardous Materials that are in violation of Environmental Requirements on the Property. If Hazardous Materials are hereafter discovered on the Property, and the presence of such Hazardous Materials is not created by Lessee, its agents, employees, contractors, subleases or invitees, and the presence
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of such Hazardous Materials results in any contamination, damages, or injury to the Property or otherwise adversely affects Lessee's occupancy or use of the Property or human health, Lessor shall promptly take all actions at its sole expense as are necessary to remediate such Hazardous Materials and as may be required by Environmental Requirements. Actual or threatened action or litigation by any governmental authority is not a condition prerequisite to Lessor's obligations under this paragraph. As soon as reasonably possible, and in all events no later than thirty (30) days following Lessor’s receipt of notification from Lessee supported by reasonable documentation setting forth such presence or release of Hazardous Materials, Lessor shall commence and, within a reasonable period of time, complete its own investigation to confirm such presence or release of Hazardous Materials. Lessor shall commence to remediate such Hazardous Materials as soon as reasonably possible, and in all events within thirty (30) days after the completion of Lessor's investigation and thereafter diligently prosecute such remediation to completion. If Lessor commences remediation pursuant to this paragraph, the Rent shall be equitably adjusted if and to the extent and during the period the Property are unsuitable for Lessee's business. However, if the time involved or delays in Lessor’s investigation or remediation of the presence or release of Hazardous Materials or the nature of such investigation or remediation could reasonably be expected to cause Lessee to be unable to utilize the Property to operate, Lessee shall have the right to terminate this Lease without any further liability or payment to Lessor upon ten (10) days notice to Lessor. In such case, Lessor and Lessee will also cooperate to attempt to find an alternative location that is suitable for Lessee’s purposes on other property owned or controlled by Lessor or its Affiliates, but Lessor makes no representation and does not provide any assurance that any such alternative location can be found or will be available. Lessor and Lessee agree that the inability to locate or agree on an alternative location will not affect the Parties’ other rights and obligations under this Lease, including Lessee’s right to terminate as provided in the previous sentence.
3.14 Events of Default.
3.14.1 Lessee Event of Default. Each of the situations set forth below shall constitute a breach of this Lease by Lessee (each a "Lessee Event of Default"), and shall entitle Lessor to exercise the remedies set forth in this Lease:
(a) Failure by Lessee to pay any installment of Rent or any other payment due hereunder, where such failure to pay continues for a period of ten (10) days after written notice of such non-payment from Lessor.
(b) Failure by Lessee to comply with any of the material provisions of this Lease and, unless otherwise expressly provided for hereunder, such failure to comply continues for more than thirty (30) days from the date on which Lessor provides written notice of such breach to Lessee; provided that such thirty (30) day period shall be extended by such longer period of time as may be reasonably necessary for Lessee to cure such breach if such breach cannot reasonably be cured within a thirty (30) day period so long as Lessee is diligently pursuing such cure.
3.14.2 Lessor Event of Default. The failure by Lessor to comply with any of the material provisions of this Lease and, unless otherwise expressly provided for hereunder, such failure to comply continues for more than thirty (30) days from the date on which Lessee provides written notice of such breach to Lessor; provided that such thirty (30) day period shall be extended
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by such longer period of time as may be reasonably necessary for Lessor to cure such breach if such breach cannot reasonably be cured within a thirty (30) day period so long as Lessor is diligently pursuing such cure shall constitute a breach of this Lease by Lessor (each a "Lessor Event of Default"), and shall entitle Lessee to exercise the remedies set forth in this Lease.
3.15 Actions in Case of Default.
3.15.1 For Lessor. Upon each occurrence of a Lessee Event of Default, and after expiration of all applicable notice and cure periods, Lessor may at any time subsequent to such breach and at its discretion exercise its rights and remedies under California Civil Code section 1951.2 or any successor statute thereto.
3.15.2 For Lessee. Upon the occurrence of a Lessor Event of Default, and after expiration of all applicable notice and cure periods, Lessee may at any time subsequent to such breach and at its discretion:
(a) terminate this Lease;
(b) specifically enforce this Lease and compel compliance by Lessor with its obligations under this Lease; and/or
(c) take such action and recover such damages as provided for at law or in equity.
4. Miscellaneous.
4.1 Construction of Certain Terms and Phrases. Unless the express usage or the context of this Lease otherwise requires: (a) words of either gender include the other gender; (b) words using the singular or plural also include the plural or singular, respectively; (c) the terms "hereof," "herein," "hereby," "hereto" and similar words refer to this entire Lease and not to any particular Article, Section, Clause, Exhibit, or Exhibit or any other subdivision of this Lease; (d) references to "Article," "Section," "Clause," or "Exhibit" are to the Articles, Sections, Clauses, and Exhibits, respectively, of this Lease; (e) the words "include" or "including" shall be deemed to be followed by "without limitation" or "but not limited to" whether or not they are followed by such phrases or words of like import; (f) references to "this Lease" or any other Lease or document shall be construed as a reference to such Lease or document, including any exhibits, appendices and schedules thereto, as amended, modified or supplemented and in effect from time to time; (g) reference to a law, regulation or ordinance includes any amendment or modification thereof; and (h) a reference to a person includes its successors and assigns. In the event of a conflict between the Exhibit and the provisions of this Lease, the latter shall prevail.
4.2 Amendments. This Lease, including all Exhibits attached hereto, contains all of the covenants, provisions, Leases, conditions and understandings between Lessor and Lessee concerning the Property and any other matter covered or mentioned in this Lease, and no prior Lease or understanding, oral or written, express or implied, pertaining to the Property or any such other matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an Lease in writing signed by the parties hereto or their respective successors in interest. The parties acknowledge that all prior Leases, representations and negotiations are
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deemed superseded by the execution of this Lease to the extent they are not expressly incorporated herein.
4.3 Taxes. Lessee shall pay all personal property taxes, business or license taxes or fees, excises, assessments, levies, fees or other charges which are assessed, levied, charged or imposed by any public authority against Lessee in connection with Lessee’s occupancy and use of the Property or the construction, installation, operation, maintenance, repair or replacement of the Facilities and Equipment necessary to operate the Permitted Use.
Lessor shall be responsible for all real property taxes and assessments relating to the Property, all taxes and assessments computed upon the basis of the net income of Lessor or payments derived from the Property by Lessor, and all business or license taxes or fees, excises, assessments, levies, fees or other charges which are assessed, levied, charged or imposed by any public authority against Lessor in connection with Lessor’s lease of the Property to Lessee.
4.4 Headings. The headings in this Lease are solely for convenience and ease of reference and shall have no effect in interpreting the meaning of any provision of this Lease.
4.5 Binding Effect. This Lease and its rights, privileges, duties and obligations shall inure to the benefit of and be binding upon each of the Parties hereto, together with their respective successors and permitted assigns.
4.6 Memorandum of Lease; Fixture Filing. Lessor hereby agrees to execute within ten (10) days after receipt of Lessee's request and authorizes Lessee to record a memorandum of this Lease in the land registry or title records of the county where the Property is located or other applicable government office.
4.7 No Brokers. Each party represents and warrants to the other that it has dealt with no broker, agent or other Person in connection with this Lease and that no broker, agent or other Person brought about this Lease, and each party agrees to indemnify and hold the other harmless from and against any claims by any other broker, agent or other Person claiming a commission or other form of compensation by virtue of having dealt with the indemnifying party with regard to this Lease.
4.8 Waiver. The failure, delay or forbearance by either Party to exercise any of its rights or remedies under this Lease or to provide written notice of any default to a defaulting party will not constitute a waiver of such rights or remedies. No Party will be deemed to have waived any right or remedy resulting unless it has made such waiver specifically in writing. The waiver by either Party of any default or breach of any term, condition or provision herein contained shall not be deemed to be a waiver of any subsequent breach of the same term, condition or provision, or any other term, condition or provision contained herein.
4.9 Remedies Cumulative. No remedy herein conferred upon or reserved to Lessor or Lessee shall exclude any other remedy herein or at law, but each such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute.
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4.10 Notices. All Rent and other sums payable by Lessee to Lessor hereunder shall be paid to Lessor at the address set forth below, or to such other Persons and/or at such other places as Lessor may hereafter designate in writing. Any notice required or permitted to be given hereunder must be in writing and may be given by personal delivery (including delivery by nationally recognized overnight courier or express mailing service), or by registered or certified mail, postage prepaid, return receipt requested, addressed to Lessee at the address(es) or to Lessor at the address(es) designated below. Either party may, by written notice to the other, specify a different address for notice purposes. Notice given in the foregoing manner shall be deemed given (i) upon confirmed transmission if sent by facsimile transmission, provided such transmission is prior to 5:00 p.m. on a Business Day (if such transmission is after 5:00 p.m. on a Business Day or is on a non-business day, such notice will be deemed given on the following Business Day), (ii) when actually received or refused by the party to whom sent if delivered by a carrier or personally served or (iii) if mailed, on the day of actual delivery or refusal as shown by the certified mail return receipt or the expiration of three (3) Business Days after the day of mailing, whichever first occurs.
To Lessee: Domain X Gym
720 Cabo San Lucas Ct
McFarland CA 93250
Attention: Xavier Gutierrez
Telephone: (661) 778-3444
Email: [email protected]
To Lessor: City of McFarland
401 W Kern Avenue
McFarland, CA 93250
Attention: City Manager
Telephone: 661-792-3091
Email:
With a copy to: Hodges Law Group
Attn: Nathan M. Hodges
1925 G Street
Bakersfield, CA 93301
Lessee shall have the right to add any lender providing financing to Lessee as a party entitled to receive copies of any Notices delivered under this Lease.
4.11 Severability. If one or more provisions of this Lease are found by a court of competent jurisdiction over the Parties hereto to be illegal, invalid or unenforceable, in whole or
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in part, the remaining terms and provisions of this Lease shall remain in full force and effect disregarding such illegal, invalid or unenforceable portion and such court shall be empowered to modify such illegal, invalid or unenforceable provision to the extent necessary to make this Lease enforceable in accordance with the intent or purposes of the Parties expressed in this Lease to the fullest extent practicable and as permitted by applicable by law.
4.12 No Third Party Beneficiary. This Lease is solely for the benefit of the Parties hereto and no right or cause of action shall accrue by reason hereof for the benefit of any third party not a party hereto.
4.13 Quiet Enjoyment. Lessor warrants that Lessee shall peaceably hold and enjoy the Property and any and all other rights granted by this Lease for the entire Term without hindrance, interruption, suit, trouble or interference of any kind by Lessor or any other Person or entity claiming (whether at law or in equity) by, through or under Lessor. Lessor shall protect and defend the right, title and interest of Lessee hereunder from any other rights, interests, title and claims.
4.14 Choice of Law. This Lease shall be construed in accordance with the laws of the State of California.
4.15 Dispute Resolution. The Parties shall negotiate in good faith and attempt to resolve any dispute, controversy or claim arising out of or relating to this Lease ("Dispute") within 30 days after the date that a Party gives written notice of such Dispute to the other Party.
If, after such negotiation in accordance with Section 5.15, the Dispute remains unresolved, either Party may require that a non-binding mediation take place. In such mediation, representative of the Parties with authority to resolve the dispute shall meet with a mutually agreed upon mediator. If the Parties are unable to agree upon a mediator, then either Party is hereby empowered to request the American Arbitration Association to appoint a mediator. The mediator’s fee and expenses shall be paid one-half by each Party. If mediation is not successful, either part may allege any legal remedy available to it under this lease.
4.16 Further Assurance. Upon the receipt of a written request from the other Party, each Party shall execute such additional documents, instruments, estoppels and assurances and take such additional actions as are reasonably necessary and desirable to carry out the terms and intent hereof, including, but not limited to, an interconnection agreement. Neither Party shall unreasonably withhold, condition or delay its compliance with any reasonable request made pursuant to this Section 4.16.
In furtherance of the foregoing, each Party agrees that it shall, at any time and from time to time during the Term of this Lease and within (10) days after a written request by the other Party, execute, acknowledge and deliver to the requesting Party a written statement certifying that this Lease is unmodified and in full force and effect (or modified and stating the modifications), the dates to which the payments and any other charges have been paid, and that there are no defaults existing (or that defaults exist and stating the nature of such defaults), and stating such other facts as the requesting Party may reasonably provide. The failure of a Party to deliver any such certificate within such time shall be conclusive upon such Party that this Lease is unmodified and
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in full force and effect, all payments to such Party are current, there are no defaults existing, and such other facts are true and correct.
4.17 Counterparts. This Lease may be executed in counterparts, which shall together constitute one and the same Lease. Facsimile signatures shall have the same effect as original signatures and each Party consents to the admission in evidence of a facsimile or photocopy of this Lease in any court or arbitration proceedings between the Parties.
4.18 Entire Lease. This instrument represents the full and complete Lease between the Parties hereto with respect to the subject matter contained herein and supersedes all prior written or oral Leases between said Parties with respect to said subject matter. The exhibits attached hereto are made a part of this Lease.
4.19 No Merger. The voluntary or other surrender of this Lease by Lessee or a mutual termination thereof shall not work as a merger and shall, at the option of Lessor, either (a) terminate all or any existing subleases, or (b) operate as an assignment to Lessor of Lessee's interest under any or all such subleases.
4.20 Time. Time is of the essence with respect to performance of every provision of this Lease in which time or performance is a factor.
4.21 Business Day. A "Business Day" is Monday through Friday, excluding holidays observed by the United States Postal Service and reference to 5:00 p.m. is to the time zone of the recipient. Whenever action must be taken (including the giving of notice or the delivery of documents) under this Lease during a certain period of time (or by a particular date) that ends (or occurs) on a non-business day, then such period (or date) shall be extended until the immediately following Business Day.
4.22 Accord & Satisfaction. No payment by Lessee or receipt by Lessor of a lesser amount than the Rent payment herein stipulated shall be deemed to be other than on account of the Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Lessor may accept such check or payment without prejudice to Lessor's right to recover the balance of such Rent or pursue any other remedy provided in this Lease. Lessee agrees that each of the foregoing covenants and Leases shall be applicable to any covenant or Lease either expressly contained in this Lease or imposed by any statute or at common law.
4.23 No Partnership. Lessor does not, in any way or for any purpose, become a partner of Lessee in the conduct of its business, or otherwise, or joint venturer or a member of a joint enterprise with Lessee by reason of this Lease.
4.24 Survival. It is expressly agreed that the rights, duties and obligations contained in Sections 3.9, 3.10, 3.11, and 3.14 shall survive the completion or any termination of this Lease and shall remain in full force and effect.
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[Signatures on Following Page]
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IN WITNESS WHEREOF, the parties have executed this Lease as of the date first above written.
LESSOR: LESSEE:
(NAME OF LESSOR) The City of McFarland
By: By:
Title: Title:
Date: Date:
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EXHIBIT A
974 Frontage Avenue
McFarland, CA 93274
Leased portion
Larger lot – illustrative only
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EXHIBIT B
Glossary of Terms
"Affiliate" of a specified Person means any Person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, such specified Person. As used in this definition of Affiliate, the term "control", "controlled by" and "under common control with," means (a) the ownership, directly or indirectly, of 50% or more of the equity interest in a Person, or (b) the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. "Lease" means this Lease, in its entirety, together with its Exhibits, which are hereby incorporated by reference.
"Business Day" shall have the meaning set forth in Section 5.21 of this Lease. "Effective Date" shall have the meaning set forth in the preamble to this Lease. "Environmental Requirements" means all applicable present and future federal, state and local laws, statutes, rules, ordinances, codes and regulations relating to environmental protection, public health and safety on, under, or about the Property, including, without limitation, the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9600 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Clean Air Act, 42 U.S.C. § 7401 et seq., the Emergency Planning and Community Right to Know Act, 42 U.S.C. § 11000 et seq., and the Clean Water Act, 33 U.S.C. § 1251 et seq., and each of their state and local counterparts presently in effect or amended or promulgated in the future. "Existing Lender" shall have the meaning set forth in Section 2.1(c) of this Lease. "Force Majeure" means events beyond the reasonable control of the affected Party, and which could not reasonably be prevented or avoided by the affected Party, which prevent or delay the effected Party from performing its obligations under or related to this Lease, including, without limitation, acts of God, fire, floods, storms, earthquake, unusually severe weather, wars, riots, sabotage, civil disturbance, acts of civil or military authorities, terrorist acts affecting the Property, labor disputes, or the act or inaction by any governmental authority which delays, prevents or prohibits the effected Party from carrying out its respective obligations under this Lease; provided that the definition of Force Majeure shall in no event include the inability of a Party to meet its financial obligations under this Lease. Any force majeure delay shall automatically extend the date for performance under this Lease by one (1) day for every one (1) day of delay. "Future Lender" shall have the meaning set forth in Section 3.10.3 of this Lease. "Hazardous Materials" means and includes any substance, material, waste, pollutant, or contaminant listed or defined as hazardous or toxic under any Environmental Requirements, asbestos and petroleum, including crude oil or any fraction thereof, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas).
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"Lessee" shall have the meaning set forth in the preamble to this Lease. "Lessee Event of Default" shall have the meaning set forth in Section 3.14.1 of this Lease. "Lessor" shall have the meaning set forth in the preamble to this Lease. "Lessor Event of Default" shall have the meaning set forth in Section 3.14.2 of this Lease. "Legal Requirements" All laws, statutes, orders, judgments, ordinances, regulations, codes or directives of any governmental authorities now or hereafter applicable to the Property and this Lease.
"Notices" shall have the meaning set forth in Section 5.10 of this Lease. "Permits" means any and all approvals, permits, permissions, licenses, authorizations, consents, certifications, orders, waivers, exemptions, variances, franchises, filings, declarations, rulings and registrations from or issued by a government authority required under applicable Legal Requirements for Lessee to install, operate and maintain the permitted use. "Permitted Use" means the use of the Property as a gym. "Person" means any corporation, limited liability company, any form of partnership, any joint venture, trust, estate, governmental authority or other legal or commercial entity or any natural person.
"Property" shall have the meaning set forth in the recitals to this Lease. "Renewal Term" or “Renewal Terms” means any extension of the Term pursuant to Section 3.2.2.
"Rent" means an annual amount as outlined in lease paid by Lessee to Lessor. "Term" means a term beginning on the Effective Date and ending on the last day of the calendar month of the thirty (30) year anniversary of this Lease, subject to any Renewal Terms, if applicable. The Term may be extended in accordance with the terms and conditions set forth in this Lease.
"Transaction" shall have the meaning set forth in the recitals to this Lease.
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EXHIBIT C
Insurance Coverage
1. Lessee Insurance Requirements.
1.1 Lessee Required Coverages. Lessee shall carry and maintain with carriers or self insurance, as a minimum, the following insurance coverages:
(a) Workers Compensation Insurance and Employers Liability. In accordance with the laws of the state of where work may be done with limits for employers liability in the minimum amount of $1,000,000 for each occurrence and $1,000,000 for each occurrence of disease on a per employee basis;
(b) Commercial General Liability. One million dollars ($1,000,000) per occurrence/two million ($2,000,000) in the aggregate for bodily injury, personal injury and property damage, products and completed operations:
(i) $300,000 for damage to rented Property, per occurrence; (ii) $10,000 for medical expenses, per person;
(iii) $1,000,000 for personal and advertising injury; and (iv) $2,000,000 for product and completion aggregate
(c) Commercial Automobile Liability, Any Auto. One million dollars ($1,000,000_ per accident/two million dollars ($2,000,000) aggregate for bodily injury and property damage. scheduled, non-owned and hired automobiles. (d) Professional Liability Insurance. The insurance shall cover Lessee and its design consultant(s) for one million dollars ($1,000,000) per claim and $2,000,000 in the aggregate; and
1.2 Policy Endorsements. Insurance coverages required to be maintained by Lessee under this Lease shall:
(a) provide a severability of interests or cross liability clause for Commercial General Liability Insurance;
(b) except in the case of worker’s compensation insurance and other statutory insurances where it would be inappropriate, name Lessor and, as additional insured’s.
2. Lessor Insurance Coverage.
2.1 Lessor Required Coverages. Lessor shall carry and maintain with carriers or self insurance, as a minimum, the following insurance coverages:
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(a) Lessor shall, at Lessor’s sole cost and expense, maintain during the Term and beginning with any Commencement of Construction, a minimum level of commercial general liability insurance of one million dollars($1,000,000) per occurrence and two million dollars ($2,000,000) in the aggregate for property damage, personal injury or deaths of persons occurring in or about the Property during the Term (including loss of use thereof arising out of Lessor’s operations and contractual liabilities), and Lessor shall carry property insurance written on an “all risks” basis covering the Property. Such coverage shall from such companies and on such other terms and conditions as Lessor may from time to time reasonably determine.
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 15.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: August 13, 2025
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Erika De La Cruz, City Clerk
SUBJECT: Approval of Resolution No. 2025-112 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF MCFARLAND APPROVING THE GRANT
APPLICATION OF MUJERES ACTIVAS LIDERES COMUNITARIAS FOR
THE HARVEST FESTIVAL AT THE MCFARLAND COMMUNITY GARDEN
SUMMARY:
Mujeres Activas Lideres Comunitarias, LLC (MALC), a designated 501(c)(3) nonprofit organization in active and good standing, has requested a $2,500 grant from the Community Grants Program for their inaugural Harvest Festival at the McFarland Community Garden. This event aims to provide a memorable pumpkin patch experience for underprivileged children, with additional festivities including games, food, and decorations. MALC has been instrumental in transforming the McFarland Community Garden from an unused space into a vibrant community hub, effectively making it their second home and a central location for community engagement.
FINANCIAL IMPACT:
The total estimated cost of the Harvest Festival is $3,000. Mujeres Activas Lideres Comunitarias, LLC seeks $2,500 in funding from the city to cover expenses such as security, pumpkins, prizes, decorations, games, and food. The remaining cost will be met through ongoing fundraising efforts. This grant will facilitate a community-centric event that not only enriches the lives of McFarland's children but also strengthens community bonds.
RECOMMENDATION:
Staff recommends that the City Council approve the grant application of $2,500 to Mujeres Activas Lideres Comunitarias. This funding will support an event that not only provides joy and celebration to our children but also highlights the successful transformation of the community garden by MALC. Approval of this grant aligns with the City’s goals of fostering inclusive and vibrant community spaces.
ATTACHMENTS:
1. Community Grant Application- Mujeres Activas- 2025_Redacted
RESOLUTION NO. 2025-112
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING
THE GRANT APPLICATION OF MUJERES ACTIVAS LIDERES COMUNITARIAS FOR
THE HARVEST FESTIVAL AT THE MCFARLAND COMMUNITY GARDEN
WHEREAS, Mujeres Activas Lideres Comunitarias (MALC) is a recognized 501(c)(3) nonprofit organization in good standing, actively contributing to the cultural and social development of McFarland; and
WHEREAS, Mujeres Activas Lideres Comunitarias has significantly transformed the McFarland Community Garden into a thriving space for community activities, thereby establishing a vital community asset; and
WHEREAS, Mujeres Activas Lideres Comunitarias has organized the first Harvest Festival, aimed at providing a festive, enriching experience for underprivileged children, with an emphasis on family engagement and community spirit; and
WHEREAS, the organization has requested $2,500 in grant funding to facilitate this event, promoting health, happiness, and unity within our community.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:
1. Grant Approval: The City Council hereby approves the grant application of Mujeres Activas Lideres Comunitarias for $2,500 to support the Harvest Festival at the McFarland Community Garden.
2. Funding Allocation: The Finance Director is authorized to allocate the approved amount from the Community Grants Program budget.
3. Event Oversight and Reporting: MALC is required to submit a detailed report post-event that outlines the usage of the funds, the activities conducted, the turnout, and the impact on the community.
4. Acknowledgment of Contributions: The City Council recognizes and commends MALC for their ongoing efforts in enhancing the McFarland Community Garden and their commitment to creating inclusive and enriching community events.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on August 13, 2025 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Anita Gonzalez
María T. Pérez
Martin Gutierrez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Erika De La Cruz, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein.
APPROVED AS TO FORM:
_____________________________
Nathan Hodges, City Attorney