Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be made available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor during customary business hours. Agenda reports are also on the City of Oxnard web site at www.oxnard.org.
In compliance with the Americans with Disabilities Act, if you require special assistance to participate in a meeting, please contact the City Clerk’s Office at 385-7803. Notice at least 72 hours prior to the meeting will enable the City to reasonably arrange for your accessibility to the meeting.
Agenda Item Time Estimates include: (Minutes for Presentation + Council Discussion + Public Comment)
AGENDA
OXNARD CITY COUNCIL
FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
May 9, 2023
Regular Meeting - 5:00 to 6:30 PM
Zoom details to call-in for public comment during a meeting:
1. Dial Phone Number: (888) 475-4499
2. Enter Meeting ID: 868 6749 8066
3. Passcode: 948324
If you wish to speak during public comments or a particular item on the agenda, please sign-on by following the zoom call-in steps listed above. Once the presiding officer calls for public speakers, press *9 to raise your hand to inform the City Clerk you would like to speak during the public speaking section for that particular item on the agenda, while in the zoom waiting room. Press *6 when asked to unmute. Listen to the instructions provided virtually on the phone while on hold in the zoom waiting room. Please note that there is a slight time delay when viewing the meeting via television.
IN ACCORDANCE WITH ASSEMBLY BILL 2449, MEMBERS OF THE LEGISLATIVE BODY MAY MEET IN- PERSON OR REMOTELY. TO PARTICIPATE REMOTELY VISIT WWW.OXNARD.ORG.
To find out how you may provide public comment, please refer to the instructions below or at www.https://www.oxnard.org/city-meetings/.
The public may view the meeting from home on Spectrum channel 10, Frontier channel 35, or YouTube at Youtube.com/oxnardnews.
Video recordings of the meeting are typically available online following the meeting at the City’s website at www.oxnard.org/city- meetings.
*Please see the link for the Measure M pre-recorded presentation video for each item listed on this agenda.
YOU MAY PARTICIPATE IN THE MEETING IN THE FOLLOWING WAYS:
1. ATTEND THE MEETING AT THE LOCATION LISTED ABOVE: Submit a speaker card to the City Clerk.
2. EMAIL COMMENTS OR SIGN UP TO SPEAK REMOTELY BEFORE THE MEETING
a. Submit a request to speak remotely by 3 p.m. on the day of the meeting by using the form available at www.oxnard.org/citymeetings.
b. Submit an email to [email protected] by 3 p.m. on the day of the meeting (indicate the agenda item number in the subject line). All email correspondence will be forwarded to the legislative body prior to the start of the meeting and made part of the legislative record.
c. Contact the City Clerk’s Office at (805) 385-7803 to submit your request.
3. PROVIDING PUBLIC COMMENTS REMOTELY DURING THE MEETING
1 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
May 9, 2023 - Page 2
a. Follow Zoom details listed above.
b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.
Please review the Zoom instructions on the registration page to help ensure there are no technical difficulties during your comments and help you understand public comment procedures using Zoom. Detailed participation instructions can be found at www.oxnard.org/city-meetings.
In the event of a disruption which prevents a legislative body of the City of Oxnard from broadcasting a meeting using a call-in option or internet- based service option, or in the event of a disruption within the City’s control which prevents members of the public from offering public comment using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on a meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. However, if any of the broadcast options are disrupted, but any of the other broadcast options is still available to the public, the legislative body may take further action on items appearing on a meeting agenda without waiting for the disrupted broadcast option(s) to be restored.
* The City has filed pre-election and post-election lawsuits regarding the validity of Measure M.
A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.
B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.
C. CONSENT AGENDA
1. City Clerk Department
SUBJECT: Approval of Minutes.
RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the April 25, 2023 regular meeting as presented.
Contact: Rose Chaparro, (805) 385-7805
D. REPORTS
1. Cultural & Community Services Department
SUBJECT: Lease Agreement with Catalyst Family, Incorporated. (10 minutes)
RECOMMENDATION: That the Finance and Governance Committee recommended that the City Council approve and authorize the Mayor to execute a lease agreement for three (3) years with monthly lease rates of $8,614.10 (FY 23-24), $8,829.45 (FY 24-25) and $9,050.19 (FY 25-26) with Catalyst Family, Incorporated (CFI) for a portion of South Oxnard Community Center, 200 East Bard Road.
Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/29ZcRWy2mto
Contact: Terrel Harrison, (805) 385-7994
2. Public Works Department
SUBJECT: Fiscal Year 2023-24 Golf Annual Plan. (20 minutes) 2 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
May 9, 2023 - Page 3
RECOMMENDATION: That the Finance and Governance Committee recommend the City Council receive and file the River Ridge Golf Course Annual Plan for Fiscal Year 2023-24 as prepared by American Golf Corporation.
Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/O5JIb4G8vX4
Contact: Michael Wolfe, (805) 385-8055
E. ITEMS FOR FUTURE AGENDAS
F. ADJOURNMENT
3 FINANCE AND GOVERNANCE COMMITTEE
AGENDA REPORT
CONSENT AGENDA
AGENDA ITEM NO. C.1
DATE: May 9, 2023
TO: Finance & Governance Committee
FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]
SUBJECT: Approval of Minutes.
RECOMMENDATION
That the Finance & Governance Committee approve the minutes of the April 25, 2023 regular meeting as presented.
BACKGROUND
Approval of Minutes.
STRATEGIC PRIORITIES
This agenda item is a routine operational item.
FINANCIAL IMPACT
There is no financial impact.
Prepared by: Rose Chaparro, City Clerk
ATTACHMENTS
1. MINUTES 04 25 2023 Finance & Governance
4 MINUTES
OXNARD CITY COUNCIL
FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
April 25, 2023
A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:01 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Governance Committee in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. The City Clerk called the roll and announced the posting of the agenda. Chair Zaragoza , Member Gabriela Basua; and Member Gabriel (Gabe) Teran were present in person.
Staff members present in person were Alexander Nguyen, City Manager; Shiri Klima, Deputy City Manager; Stephen M. Fischer, City Attorney ; Helen Miller, Chief Information Officer; Dee Lai, Assistant City Clerk and Rose Chaparro, City Clerk.
Eden Alomeri, Revenue & Licensing Director & Assistant City Treasurer participated via videoconference.
B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA (None received.)
C. CONSENT AGENDA
1. City Clerk Department
SUBJECT: Approval of Minutes.
RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the April 11, 2023 regular meeting as presented.
It was moved by Memb er Basua, seconded by Member Teran , to approve the Information/Consent item as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-0.
D. REPORTS
1. Information Technology Department
SUBJECT: Amendment to Information Technology Transformation Plan Execution Strategy & Roadmap Agreement #32300240 with Avasant LLC. (10 minutes)
RECOMMENDATION: That the Finance and Governance Committee recommend that City Council approve and authorize the Mayor execute an amendment to Avasant LLC agreement 32300240 for information technology consulting services for an additional $130,375 resulting in a revised not-to-exceed total cost of $279,375, required for the completion of an IT transformation plan execution strategy and roadmap on or before June 30, 2023.
5 APRIL 25, 2023 OXNARD CITY COUNCIL PAGE 2
FINANCE & GOVERNANCE COMMITTEE
Helen Miller, Chief Information Officer presented and answered the Committee’s questions.
No public comments were received. Discussion ensued among the Committee and staff.
It was moved by Member Basua, seconded by Member Teran, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-
0. 2. Information Technology Department
SUBJECT: Purchasing Authorization - Insight Public Sector Inc. (10 minutes)
RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to extend Purchase Order 8481 for information technology goods and services with Insight Public Sector, Inc. by revising its expiration date from February 15, 2024, to June 30, 2026, and raising the not to exceed amount from $770,000 to $2,635,000 over an additional 28 month period.
Helen Miller, Chief Information Officer presented and answered the Committee’s questions.
No public comments were received. Discussion ensued among the Committee and staff.
It was moved by Member Teran , seconded by Member Basua, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-
0. E. ITEMS FOR FUTURE AGENDAS (No requests were made.)
F. ADJOURNMENT
There being no further business on the agenda, and without objection, Chair Zaragoza adjourned the meeting at 5:14 p.m.
ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair
6 FINANCE AND GOVERNANCE COMMITTEE
AGENDA REPORT
REPORTS
AGENDA ITEM NO. D.1
DATE: May 9, 2023
TO: Finance & Governance Committee
FROM: Terrel Harrison, Cultural & Community Services Director, (805) 385-7994, [email protected]
SUBJECT: Lease Agreement with Catalyst Family, Incorporated. (10 minutes)
RECOMMENDATION
That the Finance and Governance Committee recommended that the City Council approve and authorize the Mayor to execute a lease agreement for three (3) years with monthly lease rates of $8,614.10 (FY 23-24), $8,829.45 (FY 24-25) and $9,050.19 (FY 25-26) with Catalyst Family, Incorporated (CFI) for a portion of South Oxnard Community Center, 200 East Bard Road.
Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/29ZcRWy2mto
BACKGROUND
Catalyst Family Incorporated (CFI), a California nonprofit corporation, has a 46-year history of providing high- quality childcare programs for infant, preschool and school-age children in Ventura County. CFI programs serve children and families who qualify for state subsidies through the California Department of Education, Early Education and Support Division, as well as private fee-paying families during the school year. Licensed by the California Department of Social Services, Community Care Licensing Division, CFI operates multiple centers throughout Oxnard while providing preschool services for ages 3-5 at the South Oxnard Community Center.
In 1993, the City of Oxnard contracted partial use of the South Oxnard Center with CFI to provide childcare services and has continued the relationship for the past 30 years. On June 30, 2023, the most recent lease agreement between the City of Oxnard and CFI will expire. The proposed agreement to lease the South Oxnard Community Center to CFI is for a three (3) year term. The term will commence on July 1, 2023 and terminate on June 30, 2026. This contract includes an annual adjustment of 2.5% of the base rent of $8,614.10 per month, netting $317,924.88 over the three-year lease agreement.
STRATEGIC PRIORITIES
This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.
FINANCIAL IMPACT
7 If approved, the lease agreement will generate $317,924.88 in lease revenue over three years. Fiscal Years 2023-24, 2025-25 and 2025-26 will include the total lease agreement amount in the General Fund revenue budget (Recreation Fees/Lease Revenue account - 101-5501-43310/Project T0078).
Year Fiscal Year Monthly Lease
Rate
Annual
Revenue
1 FY 2023-2024 $8,614.10 $103,369.20
2 FY 2024-2025 $8,829.45 $105,953.40
3 FY 2025-2026 $9,050.19 $108,602.28
Total Revenue Over 3 Years $317,924.88
Prepared by: Julie Estrada, Recreation Coordinator
ATTACHMENTS
1. A-8527 SOC Lease Agreement 2023
2. SOC Lease Presentation
8 ContractNo.A-8527LEASE
ThisLease(“Lease”)ismadeasofthe1stdayofJuly2023,byandbetweentheCITYOFOXNARD,(“Landlord”)and CatalystFamily, Incorporated(collectively“Tenant”). EachLandlordandTenantaresometimeshereinafterreferredtoasa “Party”andcollectivelyasthe“Parties.” Article1LeasedPremises
LandlordherebyleasestoTenant,andTenantleasesfromLandlordfortheterm,at therental,andpursuantto thecovenants,provisions,andconditionssetforthherein,thatcertainspace(the“LeasedPremises”)situatedat 200EastBardRoadin theSouthOxnardCommunityCenter(“Building”).TheLeasedPremisesareoutlinedanddefinedinExhibit“A”attachedheretoandincorporatedbythisreferenceinfullherein.
Article2Term
The termof this Lease(“Term”)shallcommenceon July1, 2023(the“CommencementDate”)andshallexpireonJune30,2026(the“TerminationDate”),subjecttoearlierterminationasprovidedherein.TimeisoftheessenceinthisLease.
Article3Rent
3.1 BaseRent.DuringtheTerm,theTenantagreestopayLandlordas“BaseRent”fortheLeasedPremises,detailedbelow:
TimeFrame MonthlyRent Increase
TotalYearlyAmount
July1,2023-June30,2024 $8,614.10 2.5% $103,369.20July1,2024-June30,2025 $8,829.45 2.5% $105,953.40July1,2025-June30,2026 $9,050.19 2.5% $108,602.28Total $317,924.88 BaseRentshallbedueandpayabletotheLandlordonthefirstdayofeachandeverycalendarmonthduringtheTerm.BaseRentforthefirstmonthoftheTerm,oraportionthereof,shallbepaidconcurrentlywiththeexecutionofthisLease.IftheCommencementDateisnotthefirstdayofacalendarmonth,oriftheTermendsonadayotherthanthelastdayofa calendarmonth,thentherentalforasuchpartialmonth(s)shallbeproratedbasedona30-daymonth.
3.2 AnnualAdjustmentofBaseRent.TheBaseRentshallbeincreasedeveryyearaftertheCommencementDate(“1stofJuly”)duringtheTerminanamountequaltotwoandahalfpercent(2.5%).
3.3 AdditionalRent.AllamountsduefromTenanttoLandlordunderthisLeaseotherthanBaseRentshallconstitute“AdditionalRent.”TheBaseRentandAdditionalRentare 9 sometimescollectivelyreferredtohereinafteras“Rent.”RentshallbepaidtoLandlord,withoutdeductionoroffset,inlawfulmoneyoftheUnitedStatesofAmerica,whichshallbelegaltenderatthetimeofpayment,attheofficeofLandlordortosuchotherpersonoratsuchotherplaceasLandlordmayfromtimetotimedesignateinwriting.
3.4 Interest;LateCharges.AllamountsdueandunpaidunderthisLeaseshallaccrueinterestfromthedatedueuntilpaidatthelesseroftheprimeorreferenceratechargedbytheBankofAmerica,N.A.plusthreepercent(3%)orthehighestratepermittedbylaw(the“DefaultRate”). ItisalsoagreedbetweenthePartiesthatifanyinstallmentofBaseRentshallbeduehereunderandunpaidasofthefifth(5th)dayofanymonth,a fivepercent(5%)late/administrativechargeshallbeimmediatelyaddedtotheamountowingandshallalsobedueandpayable,thePartiesrecognizingthattheycannotestablishwithcertaintythedamageandadditionaladministrativeexpenseLandlordwillsufferintheeventTenantfailstopaythesuchamountwhendueandthePartiesagreeingthatsuchlatechargerepresentsthereasonableestimateofthePartiesasto theamountofsuchdamageandadditionaladministrativeexpense.
INITIAL Tenant: Landlord:
3.5 AdditionalExpensesPayablebyTenant.TenantshallpayareasonablechargedeterminedbyLandlordforanyuseofutilitiesorservicesinexcessofutilitiesorservicescustomarilyprovidedforTenantorin additiontothosesetoutinSection10,whichSectioncoversnormalutilitycharges.Tenantshallpayforanyadditionalorunusualjanitorialorsecurityguardservicesrequiredby reasonof Tenant’s useof thePremiseor by reasonofimprovementsinthePremisesotherthanimprovementsmadebyLandlord.
Article4SecurityDeposit
IfTenantisindefaultunderthisLease,Landlordmayusethesecuritydeposit,oranyportionofit,tocurethedefaultortocompensateLandlordforalldamagesustainedbyLandlordresultingfromsuchdefault.TenantshallimmediatelyondemandpaytoLandlorda sumequaltotheportionofthesecuritydepositexpendedorappliedbyLandlordasprovidedinthisSectionsoastomaintainthesecuritydepositinthesuminitiallydepositedwithLandlord.IfTenantisnotindefaultandhasvacatedtheLeasedPremisesbytheTerminationDate,LandlordshallreturnthesecuritydeposittotheTenant.Landlord’s obligationswithrespecttothesecuritydepositarethoseofa debtorandnota trustee.LandlordmaymaintainthesecuritydepositseparateandapartfromLandlord’s generalfundsorcancomminglethesecuritydepositwithLandlord’sgeneralandotherfunds.LandlordshallnotberequiredtopaytheTenantinterestonthesecuritydeposit.
Article5DeliveryandConditionofLeasedPremises
5.1 LandlordshalldeliverphysicalpossessionoftheLeasedPremisesto TenantupontheexecutionofthisLeasebybothParties.TenantherebyacceptstheLeasedPremisesinitsexisting“ASIS”conditionasofthedatehereofsubjecttoallapplicablezoning,municipal,county, andstatelaws,ordinances,andregulationsgoverningtheuseof theLeased 10 Premises,andanyeasements,licenses,covenants,conditionsorrestrictionsofrecord,includingwithoutlimitationanyDeclarationofCovenants,Conditions,andRestrictions,executedbyLandlord,andacceptsthisLeasesubjecttheretoandsubjecttoallmattersdisclosedthereby.
5.2 Tenantacknowledgesthat Landlordhas not madeany representationor warrantywhatsoeverastotheconditionoftheLeasedPremisesincluding,butnotlimitedto,theconditionoftheexistingbuildingortheelectrical,plumbing,firesprinklerpressure(ifthereareanyfiresprinklers),lighting,airconditioningandheatingtherein,orthepresentorfuturesuitabilityoftheLeasedPremisesfortheconductofTenant’sbusiness.
5.3 Landlordshallnotbe liableforanylatentor patentdefectsin or abouttheLeasedPremises.TenantherebywaivesallotherexpressorimpliedwarrantiesorrepresentationsregardinganylatentorpatentdefectsintheLeasedPremises.
5.4 Tenantshall,upontakingpossessionoftheLeasedPremises,andwithLandlord’s priorwrittenapproval,prepareplans(“Plans”)andobtainall necessarypermitsfor, andcommenceconstructionupontheLeasedPremisesof,anyandallimprovementsnecessarytoopenandoperateTenant’sbusiness(the“Improvements”).
Article6UseofLeasedPremises
6.1 LimitationonUse. TenantshallusetheLeasedPremisessolelyforsixdaycareclassroomsofapproximately830squarefeeteachandtheadjacentofficecorridorspace,afencedplayyardlocation,atemporaryplayyardinthecourtyard,andkitchenusageonlyforscheduledhoursofoperation,asdescribedinExhibitE,attachedheretoandincorporatedhereinbythisreference.
6.2 Tenant’s OperationofBusiness. TenantshallcontinuouslyanduninterruptedlyduringtheentireLeaseTerm:
6.2.1 Ataminimum,remainopenforbusinessduringusualbusinesshoursMondaythroughFriday,exceptcustomaryfederalandstateholidays;
6.2.2 Adequatelystaffitsbusinesswithsufficientemployees;
6.2.3 ConductTenant’s businessatalltimesina first-classmannerconsistentwithreputablebusinessstandardsandpractices,ingoodfaithandinsuchamannerthatthehighreputationoftheLandlordandthePremisesismaintained;and
6.2.4 Warehouse,storeorstockonlysuchitemsasTenantrequireto conductitsbusiness.
6.3 Anti-discriminationandEqualOpportunity. Tenantshall,throughouttheTerm,complywiththeprovisionssetforthinExhibit“B”attachedheretoandincorporatedhereinbythisreference. 11 6.4 ProhibitedUses;Alterations. TenantshallnotdoorpermitanythingtobedoneinorabouttheLeasedPremisesthatinanywayincreasetheexistingrateofanyfireorotherinsuranceontheBuildingoranyofitscontents,orthatcausesacancellationofanyinsurancepolicycoveringtheBuilding,theLeasedPremisesoranypartofthemoranyofthecontentsthereof,or whichconstitutesan activityspecificallyexcludedfromthe Landlord’sinsurancepolicyoranyinsuranceTenantisrequiredbyLandlordtoobtain,whichpoliciesaredescribedinSection8ofthisLease.TenantshallnotcommitorcausetobecommittedanynuisanceorwasteinorontheLeasedPremisesorpermitanythingtobedoneinorabouttheLeasedPremisesthatwillin anywayconflictwiththeCC&Rsoranylaw,statute,ordinance,orgovernmentalruleorregulationnowinforceorhereafterinforce.Tenantshallnotdisplay, store,orsellmerchandiseorallowcarts,portablesigns,devicesoranyotherobjectsto be storedor to remainoutsidetheexteriorwallsandpermanentdoorwaysoftheLeasedPremiseswithoutLandlord’s priorwrittenconsent.Tenantshallnot,withoutthe priorwrittenconsentof Landlord,sellmerchandisefromvendingmachinesorallowanycoin-operatedvendingorgamingmachinesontheLeasedPremises.Exceptas otherwiseprovidedherein,Tenantshallnotmakeorcauseto bemadeanyalterations,repairs,additions,orimprovementstoanypartoftheLeasedPremises,withoutthepriorwrittenconsentofLandlord,whichconsentmaybewithheldinLandlord’s soleandabsolutediscretion.
Article7 Insurance
7.1 Tenant shall obtain and maintain during the performance of the Services the insurancecoverages as specified in Exhibit INS-K, attachedheretoandincorporatedhereinbythisreference, issued by a company satisfactory to the Risk Manager, unless the RiskManager waives, in writing, the requirement that Tenant obtain and maintain suchinsurancecoverages.
7.2 Tenant shall, prior toperformanceof theServices, filewiththeRiskManager evidenceofinsurance coverage as specified in Exhibit INS-K. Evidenceof insurancecoverageshallbeforwardedtotheRiskManager, addressedasspecifiedinExhibit INS-K.
7.3 Maintenance of proper insurance coverages by the Tenant is a material element of thisAgreement. Tenant’s failure to maintain or renew insurance coverages or to provideevidenceof renewal maybeconsideredasamaterial breachof thisAgreement.
Article8Damage
8.1 PartialDamage-Insured. IntheeventtheLeasedPremisesortheBuildingaredamagedbyanycasualtywhichis coveredunderfireandextendedcoverageinsurancecarriedbyLandlord,thenLandlordshallrestoresuchdamageprovidedsufficientinsuranceproceedsareavailableto payforthecostof restorationandprovidedsuchrestorationcanbecompletedwithinonehundredandeighty(180)daysafterthecommencementoftheworkintheopinionofaregisteredarchitectorengineerappointedbyLandlord. Insuchevent, 12 thisLeaseshallcontinueinfullforceandeffect,andTenantshallnotbeentitledtoanyabatementorreductionofRent.
8.2 PartialDamage-Uninsured. IntheeventtheLeasedPremisesortheBuildingaredamagedbya risknotcoveredbyLandlord’s insuranceortheproceedsofavailableinsurancearelessthanthecostof restoration,orif therestorationcannotbecompletedwithinonehundredandeighty(180)daysafterthecommencementofworkin theopinionoftheregisteredarchitectorengineerappointedbyLandlord,thenLandlordshallhavetheoptioneitherto(1)repairorrestoresuchdamage,thisLeasecontinuinginfullforceandeffectandTenantshallnotbeentitledtoanyabatementorreductionofRent,or(2)givenoticetoTenantatanytimewithinthirty(30)daysaftersuchdamageterminatingthisLeaseasofadatetobespecifiedinsuchnotice,whichdateshallbenotlessthanthirty(30)normorethansixty(60)daysaftergivingsuchnotice.Intheeventofthegivingofsuchnotice,thisLeaseshallexpireandallinterestoftheTenantintheLeasedPremisesshallterminateonthesuchdatesospecifiedin suchnoticeandallRentshallbepaidtothedateofsuchtermination;provided,however, thatLandlordagreesto refundto theTenantanyBaseRenttheretoforepaidinadvanceforanyperiodoftimesubsequenttosuchdate.
8.3 TotalDestruction. Intheevent,theLeasedPremisesaretotallydestroyedortheLeasedPremisescannotbe restoredas requiredhereinunderapplicablelawsandregulations,notwithstandingtheavailabilityof insuranceproceeds,thisLeaseshallbe terminatedeffectivethedateofthedamage.
8.4 Landlord’s Obligations. TheLandlordshallnotberequiredtorepairanyinjuryordamageby fireor othercauseor to makeanyrestorationorreplacementofanydecorations,partitions,floorcoveringoranyotherimprovementsorpropertyinstalledintheLeasedPremisesbyTenantoratthedirectorindirectexpenseofTenant.Tenantshallberequiredto restoreorreplacesamein theeventofdamage.TenantshallhavenoclaimagainstLandlordforanydamagesufferedbyreasonofanysuchdamage,destruction,repairorrestoration;norshallTenanthavetherightto terminatethisLeaseastheresultofanystatutoryprovisionnoworhereafterineffectpertainingtothedamageanddestructionoftheLeasedPremisesortheBuildingincludingSections1932(2)and1933(4)oftheCivilCodeoftheStateofCalifornia,exceptasexpresslyprovidedherein.
Article9Condemnation
IfalloranypartoftheLeasedPremisesshallbetakenorappropriatedforpublicorquasi-publicuseby rightof eminentdomainwithor withoutlitigationor transferredby agreementinconnectionwithsuchpublicorquasi-publicuse,eitherPartyheretoshallhavetherightatisoptionexercisablewithinthirty(30)daysofreceiptofnoticeofsuchtakingtoterminatethisLeaseasofthedatepossessionistakenbythecondemningauthority;provided,however, thatbeforeTenantmayterminatethisLeaseby reasonof takingor appropriationas providedhereinabove,suchtakingorappropriationshallbeofsuchanextentandnatureastosubstantiallyhandicap,impedeorimpairTenant’s useoftheLeasedPremises.IfanypartoftheBuildingotherthantheLeasedPremisesshallbesotakenorappropriated,LandlordshallhavetherightatitsoptiontoterminatethisLease.Noawardforanypartialorentiretakingshallbeapportioned, 13 andTenantherebyassignsto Landlordanyawardwhichmaybe madein suchtakingorcondemnation,togetherwithanyandallrightsofTenantnoworhereafterarisinginortothesameoranypartthereof;provided,however, thatnothingcontainedhereinshallbedeemedtogiveLandlordanyinterestin orto requireTenantto assigntoLandlordanyawardmadetoTenantforthetakingof personalpropertyandfixturesbelongingto Tenantand/orfortheinterruptionofordamagetoTenant’sbusiness.
Article10Utilities
Tenantshallpayforitsproratashareofallwater, gas,heat,andelectricityservicessuppliedtotheLeasedPremises,basedupontheratiooftherentablefloorareaoftheLeasePremisesascomparedto all spacewhichis rentedandoccupiedin theBuilding.ForpurposesofimplementingtheprovisionsofthisSection10,theLandlordandTenantherebyagreethattheTenantshallpayforwater, gas,wastewater,solidwaste,electricity,heating,andairconditioningforthecomfortableuseandoccupancyofthePremises.Theutilitiesarebilledbytheutilityco.&are paidseparatelyfromanylease.TenantshallalsopayforTenant’s owntelephoneserviceandalarmserviceschargesincludingfalsealarmsandallotherservicesand/orutilitiessuppliedto theLeasedPremises.TenantshallalsopayforTenant’s owntelephoneserviceandalarmserviceschargesincludingfalsealarmsandallotherservicesand/orutilitiessuppliedto theLeasedPremises.TheCityshallbilltheTenantforfalsealarmcharges,andtheTenantshallpayCityforsuchcharges,within30daysofreceivingasuchbillfromtheCity. Notwithstandingtheforegoing,Landlordshallnotbeliableindamagesorotherwiseforanyfailure,interruption,orunavailabilityofanyutilityservicebeingfurnishedtotheLeasedPremisesandnosuchfailureorinterruptionshallentitleTenantto terminatethisLeaseor receiveanyabatementof Renthereunder.
Article11Taxes
Tenantshallpayatleastten(10)daysbeforedue,andbeforeanyfine,penalty, interestorcostshallbechargedthereon,directlytotheappropriatetaxingorothergovernmentalauthority,allofthefollowing:
11.1 RealestateandotheradvaloremtaxesandassessmentsofeverykindandnatureleviedandassessedupontheLeasedPremisesandtheunderlyingrealtyincluding,butnotlimitedto,possessoryinteresttaxesassessedagainsttheleaseholdinterestcreatedherebyandgeneralandspecialassessments,whetherforeseenorunforeseen.
11.2 Taxes,assessments,licensefees,andpublicchargeslevied,assessedorimposeduponitsbusinessoperationontheLeasedPremises,(collectively, “Taxes”).TenantshalldelivertoLandlordcopiesofreceiptedbillsforsuchTaxeswithinfifteen(15)daysafterreceiptofsuchbillsby Tenant. If anytaxeson Tenant’s personalpropertyareleviedagainstLandlordorLandlord’sproperty,oriftheassessedvalueoftheBuildingisincreasedbytheinclusionofa valueplacedonTenant’s personalproperty, andifLandlordpaysthetaxesonanyoftheseitemsorthetaxesbasedontheincreasedassessmentcausedbytheseitems,Tenant,ondemand,shallimmediatelyreimburseLandlordforthesumofthetaxesleviedagainstLandlord,ortheproportionofthetaxesresultingfromtheincreaseinLandlord’s 14 assessment.Landlordshallhavetherighttopaythesetaxesregardlessofthevalidityofthelevy.
Additionally, LandlordandTenantagreethatthisLeasemaycreateapossessorypropertyinterestwhichis subjectto propertytaxation,in whicheventthatpartyinwhomsuchinterestisvestedmaybesubjecttoandshallpaysuchpropertytaxes.
Article12CompliancewithLaws
Tenantagreesto complywithall applicablezoning,municipal,county, andstatelaws,ordinances,andregulationsgoverningtheuseoftheLeasedPremises,theCC&R,andanyothercovenantsorrestrictionsofrecord.Tenantagreestosecureanyfederal,state,orlocallicensesorpermitsrequiredinordertousetheLeasedPremisesforthepurposesspecifiedhereinabove.ThetenantshallsecuresuchlicensesandpermitsbeforetheCommencementDateofthisLease.
Article13IndemnityandExculpation
13.1 Indemnity. Tenantshallindemnify,defendandholdharmlessLandlord,theCityofOxnard(the“City”)andtheAssociation(ifthereisone)andagainstanyandallclaims,liabilities,losses,costs,expenses,includingwithoutlimitationattorneys’feesandcosts(“ClaimsorLiabilities”)includingwithoutlimitationthoseresultingfromtheft,vandalism,personalinjury, disabilityordeath,andevenifcausedinwholeorinpartbythepassivenegligenceofLandlord,itsagents,staff oremployees(e.g.,failuretosuperviseorcontrol,orwarnoforremoveaconditiononorabouttheLeasedPremises)arisingfrom:
13.1.1 TheconditionoftheLeasedPremisesandsurroundingareaswhichareusedbyTenantand Tenant’s employees,staff, consultants,agents,contractors,suppliers,invitees,guests,patrons,licensees,successorsand assigns(collectively, “Tenant’sRepresentatives”),
13.1.2 Tenant’s andTenant’s Representatives’useoftheLeasedPremises,Buildingand/orotherareasoftheLandlord’s PremisesincludingwithoutlimitationtheconstructionoftheImprovementsandanyotherworkperformedtherein,
13.1.3 AnybreachordefaultintheperformanceofanyobligationonTenant’sparttobeperformedunderthetermsofthisLease,and/or
13.1.4 TheconductofTenant’s businessoperatedonorabouttheLeasedPremisesoranyactornegligenceofTenant,oranyofTenant’sRepresentatives,exceptthatTenantshallnotindemnify, defendandholdharmlessLandlordfromandagainstanyclaimstotheextenttheyresultsolelyfromtheactivenegligenceorwillfulmisconductof Landlordor Landlord’s agents,staff, employees,consultants,officers,successorsand assigns(collectively, “Landlord’sRepresentatives”). 15 IncaseanyactionorproceedingbebroughtagainstLandlord,theCity, ortheLandlordbyreasonofanysuchclaim,theTenant,uponnoticefromanysuchparty, shalldefendthesameatTenant’sexpensebycounselreasonablysatisfactorytosuchparty.
Tenant,asa materialpartoftheconsiderationgiventoLandlord,hereby(i)assumesallriskofdamagetopropertyorinjurytopersonsin,upon,orabouttheLeasedPremisesarisingfromanycauseincluding,butnotlimitedto,anytheft,vandalism,damage,injuryto personordeathresultingfromtheconditionoftheLeasedPremisesduringtheTermhereofbutexcludinganyclaims(exceptforthoseclaimsarisingfromLandlord’s allegedfailuretosuperviseorcontrolTenant’s actionsorTenant’s useoftheLeasedPremises)arisingfromtheactivenegligenceorwillfulmisconductofLandlord,and(ii)waivesallclaimsinrespectthereofagainstLandlordandtheCity.
13.2 ExemptionofLandlordFromLiability. ItisherebyagreedthatLandlordshallnotbeliablefor any injuryor damagewhichmaybe sustainedby the person,goods,wares,merchandiseorpropertyoftheTenant,itsemployees,invitees,orcustomers,orbyanyotherpersonin orabouttheLeasedPremisescausedbyorresultingfromfire,steam,electricity, gas,waterorrainwhichmayleakorflowfromorintoanypartoftheLeasedPremises,or fromthebreakage,leakage,obstructionor otherdefectsof thepipes,sprinklers,wires,appliances,plumbing,airconditioningorlightingfixtures,whethersaiddamageorinjuryresultsfromconditionsarisingupontheLeasedPremisesorfromothersources.ItisherebyagreedthatLandlordshallnotbeliableforanydamagesarisingfromanyactorneglectofanyothertenantoftheBuilding.
Section14DefaultandRemedies
14.1 Default.Theoccurrenceofanyofthefollowingshallconstitutea materialdefaultandbreachofthisLeasebyTenant:
14.1.1 AnyfailurebyTenanttopayanyRentatthetimesaidpaymentisdue:
14.1.2 Theabandonmentor vacation(definedto be ten (10)or moredaysofcontinuousabsencefromtheLeasedPremises)of theLeasedPremisesbyTenant;
14.1.3 ThefailurebyTenanttoobserveandperformanyotherprovisionofthisLeasetobeobservedorperformedbyTenant,wheresuchfailurecontinuesforfifteen(15)daysafterwrittennoticethereofby Landlordto Tenant;provided,however, thatif the natureof thedefaultis suchthatthesamecannotreasonablybecuredwithinsaidfifteen(15)dayperiod,TenantshallnotbedeemedtobeindefaultifTenantshallwithinsuchperiodcommencesuchcureandthereafterdiligentlyprosecutethesametocompletion;
14.1.4 ThemakingbyTenantofanygeneralassignmentorgeneralarrangementforthebenefitof creditors;theappointmentof a trusteeor receiverto takepossessionofsubstantiallyallofTenant’sassetslocatedattheLeasedPremises 16 orTenant’s interestinthisLease,wherepossessionisnotrestoredtoTenantwithinthirty(30)days;ortheattachment,executionorotherjudicialseizureofsubstantiallyall of Tenant’s assetslocatedat theLeasedPremisesor ofTenant’s interestin thisLease,wheresuchseizureis notdischargedwithinthirty(30)days.
14.2 Termination.IntheeventofanysuchdefaultbyTenant,theninadditiontoanyotherremediesavailabletoLandlordatlaworinequity, LandlordshallhavetheimmediateoptiontoterminatethisLeaseandall rightsof Tenanthereunderby givingwrittennoticeof suchtermination.IntheeventthatLandlordshallelecttosoterminatethisLeasethenLandlordmayrecoverfromTenant:
14.2.1 TheworthatthetimeofawardofanyunpaidRentwhichhadbeenearnedatthetimeofsuchtermination;plus
14.2.2 TheworthatthetimeofawardoftheamountbywhichtheunpaidRentwhichwouldhavebeenearnedafterterminationuntilthetimeofawardexceedstheamountof suchrentallossthatTenantprovescouldhavebeenreasonablyavoided;plus
14.2.3 TheworthatthetimeofawardoftheamountbywhichtheunpaidRentforthebalanceofthetermafterthetimeofawardexceedstheamountofsuchrentallossthatTenantprovescouldbereasonablyavoided;plus
14.2.4 Anyotheramountnecessaryto compensateLandlordforallthedetrimentproximatelycausedbyTenant’s failuretoperformhisobligationsunderthisLeaseor whichin theordinarycourseofeventswouldbelikelyto resulttherefrom;plus
14.2.5 At Landlord’s election,suchotheramountsin additionto orin lieuoftheforegoingasmaybepermittedfromtimetotimebyapplicableCalifornialaw.
Asusedinsubparagraphs14.2.1and14.2.2above,the“worthatthetimeofaward”iscomputedbyallowinginterestattheDefaultRate.Asusedinsubparagraph14.2.3above,the“worthatthetimeofaward”is computedbydiscountingsuchamountat thediscountrateoftheFederalReserveBankofSanFranciscoatthetimeofawardplusonepercent(1%).
14.3 AdditionalRemedies
14.3.1 IntheeventofthevacationorabandonmentoftheLeasedPremisesbyTenant(as definedin Section14.1.2above),andif LandlorddoesnotelecttoterminatethisLeaseandTenant’srighttopossessionoftheLeasedPremisesbyelectingtheremedyprovidedin Section14.2above,thenLandlordmay,pursuanttoSection1951.4oftheCivilCodeoftheStateofCalifornia,recoverallRentasitbecomesdue. 17 14.3.2 LandlordentryintotheLeasedPremisesformaintenancepurposesorinanattemptto relettheLeasedPremisesshallnotbe consideredto terminateTenant’s righttopossessionoftheLeasedPremisesandnoentryoftheLeasedPremisesbyLandlordshallbeconstruedasanelectiontoterminatethisLeaseunlessa writtennoticeof suchintentionis givento Tenantor unlesstheterminationthereofisdecreedbyacourtofcompetentjurisdiction.Landlordmayat anytimeafteranydefaultby Tenantelectto terminatethisLeasepursuanttoSection14.2above.
14.3.3 TherightsoftheLandlordunderthisLeaseshallbecumulativetoallotherrightsorremediesnoworhereafteravailabletoLandlordatlaworinequity.
Article15Maintenance
15.1 Landlord’s Obligation.Landlordshallmaintainandmakeallnecessaryrepairsto theLeasedPremisesincludingoriginalfixturesandaccessories,theheating,ventilation,andairconditioningsystem,andthecommonareaswhichincludeaparkinglot,buildingsigns,andlandscaping,exceptlandscapingintheareacommonlyreferredtoasthe"playarea"whichshallbetheresponsibilityoftheTenant.
15.2 Tenant’s Obligations.Tenantshallberesponsibleformaintenanceandrepairoffixtures,appliances,andequipmentprovidedbyTenantforitsownuse.TenantshallberesponsibleforthecostsofmaintenanceandrepairoftheLeasedPremisesthatisrequiredbecauseoftheneglectormisconductoftheTenant,itsofficers,employees,agents,subcontractors,orusers.LandlordmayexpendfundsattheexpenseoftheTenantasarereasonablyrequiredto performsuchwork.Anyamountsoexpended,togetherwithinterestthereonattheDefaultRatefromthedateofpaymentbyLandlorduntilthedateofrepaymentbyTenantshallbepaidbyTenantasAdditionalRenthereunder. Landlordmay, butshallnotberequiredto,recoversuchexpendituresfromthesecuritydepositestablishedpursuanttoSection4 ofthisLease.LandlordshallhavenoliabilitytotheTenantforanydamage,inconvenienceorinterferencewiththeuseoftheLeasedPremisesbytheTenantasaresultofperforminganysuchwork.Intheeventofemergencyrepairs,TenantherebygrantstoLandlordtherightto enterupontheLeasedPremisesat anytime.TenanthastheresponsibilitytogivenoticeofanyattachmentstofixturesortothebuildingthatneedstoberegulatedandapprovedbytheCityofOxnardFacilities.
Additionally, the Tenant shall be responsible for at least providing 2 (two) ServSafe ManagerCertifications which verify that a manager or person-in-charge has sufficient food safetyknowledge to protect the public fromfoodborneillness. Throughout hoursof operation, thetenantwill be required the upkeep equipment sanitation, all storage food and equipment needs to beplaced 6 inches above the ground, maintain the facility clean, professionally steam clean thekitchen equipment including the stove, kitchen exhaust hood, all stainless steel including walls,and appliances twice a year. Any chemicals used in the kitchen or throughout the building byCatalyst Family, Incorporated needs to be disclosed to the City of Oxnard. All rules andregulations relating to the Fire Department and Ventura County Environmental Health Divisionneedtobefollowedthoroughlyastheypertaintothebuilding. 18 15.3 WaiverbyTenant.LandlordshallhavenoobligationtorepairormaintaintheLeasedPremisesorimprovementsconstructedthereinexceptasprovidedinthisLease.TenantherebywaivesallrighttomakerepairsattheexpenseofLandlordasprovidedforinanystatuteorlawineffectatthetimeofexecutionofthisLease(includingSection1942oftheCivilCodeoftheStateofCalifornia)oranyamendmentthereoforanyotherstatuteorlawwhichmaybehereafterenactedduringthetermofthisLease.
Article16Landlord’sRightofEntry
TenantshallpermitLandlordorLandlord’s RepresentativestoentertheLeasedPremisesatallreasonabletimesforthepurposeofinspectingtheLeasedPremisestodeterminewhetherTenantiscomplyingwiththetermsofthisLeaseandforthepurposeofdoingotherlawfulactsthatmaybenecessarytoprotectLandlord’sinterestintheLeasedPremisesunderthisLeaseortoperformLandlord’s dutiesunderthisLease.LandlordalsoreservesandshallatanyandalltimeshavetherighttoentertheLeasedPremisesinconnectionwithanyutilitiestobeprovidedbyLandlordtoTenanthereunder, tosubmitsaidLeasedPremisestoinspectionbyprospectivepurchasersortenantsor prospectiveorexistingmortgagees,to postnoticesofnon-responsibilityand“forlease”signs,andtoalter, improveorrepairtheLeasedPremisesandanyportionoftheBuildingwithoutabatementof rent. Tenantherebywaivesanyclaimfordamagesforanyinjuryorinconvenienceto or interferencewithTenant’s business,anylossof occupancyor quietenjoymentoftheLeasedPremises,andanyotherlossoccasionedthereby. Foreachoftheaforesaidpurposes,Landlordshallatalltimeshaveandretainakeywithwhichtounlockallofthedoorsin,upon,andabouttheLeasedPremises,excludingTenant’s vaultsandsafes,andLandlordshallhavetherighttouseanyandallmeanswhichLandlordmaydeempropertoopensaiddoorsinanemergency, theexistenceofwhichshallbedeterminedbyLandlordinitssolediscretion,inordertoobtainentrytotheLeasedPremises.AnyentrytotheLeasedPremisesobtainedbyLandlordbyanyofsaidmeans,orotherwise,shallnotunderanycircumstancesbeconstruedordeemedtobeaforcibleorunlawfulentryinto,ordetainerof,theLeasedPremises,orevictionofTenantfromtheLeasedPremisesoranyportionthereof.
Article17Transfers
17.1 AssignmentandSubletting.Tenantshallnotvoluntarilyorbyoperationoflawassign,license,franchise,transfer, mortgage,orotherwiseencumberalloranypartofTenant’sinterestinthisLeaseorintheLeasedPremises,andshallnotsublet,franchise,orlicensealloranypartoftheLeasedPremises,withoutthepriorwrittenconsentof Landlordin eachinstance,whichconsentshallnotbeunreasonablywithheld,andanyattemptedassignment,license,franchise,transfer, mortgage,encumbranceorsublettingwithoutsuchconsentshallbewhollyvoid.WithoutinanywaylimitingLandlord’srighttorefusetogivesuchconsentforanyotherreasonorreasons,Landlordreservestherightto refuseto givesuchconsentif in theLandlord’s discretionandopinion,thequalityorcharacterofthebusinessoperationconductedontheLeasedPremisesorthroughoutanyotherportionoftheBuildingisormaybeinanywayadverselyaffectedduringthetermof the Leaseby suchproposedassignment,license,franchise,transfer, mortgage,encumbranceorsubletting,orif thefinancialworth,capabilityand/orliquidityoftheproposednewtenantislessthanthatofTenantatthetimeoftheexecutionofthisLeaseoriftheproposed 19 newtenanthaslessexperienceinoperatingabusinessofthespecifictypeasTenant’s thandoesTenant.
17.2 Bankruptcy. IntheeventthatTenantfilesanytypeofpetitioninbankruptcyorhassamefiledagainstitandLandlorddoesnotelecttoterminatethisLeaseorisdeemedtohavewaiveditsrightto terminatethisLease,andin theeventthatthetrusteeor receiverappointedbythebankruptcycourtattemptstoassumethisLeaseandthereuponorotherwiseassignit toa thirdparty, then:
17.2.1 SuchassigneeshallhaveanetworthatleastequaltothatoftheTenantatthetimeofexecutionofthisLease,
17.2.2 ThebusinessoftheassumingthirdpartyshallbeconsistentwiththecharacterandconceptoftheProject,and
17.2.3 Allotherprovisionsof11U.S.C.365,aswellasotherapplicableBankruptcyLawprovisionsfor Landlord’s protection,shallbe satisfiedbeforeanyassignmentofTenant’s rights,orassumptionofTenant’sobligationsunderthisLease.ThissubparagraphshallnotbedeemedtowaiveanyoftheLandlord’srightsunderBankruptcyLaworotherwise.
17.3 Management.IntheeventTenantfailstoexercisesuchmanagementandcontrolofthebusinesshereunderpermittedto beconductedin theLeasedPremises,asis ordinarilyexercisedbyanownerofsuchabusiness,thenLandlordshallhavetherighttoapprovethemanager, franchisee,independentcontractor, employeeorotherpersonorentityselectedbyTenanttooperateandconductsuchbusinessontheLeasedPremises.TheprecedingsentenceshallnotbedeemedtorestrictTenantfromdelegatingday-to-daymanagementoftheTenant’s business,or takingvacations,butshallrestrictTenantfromsurrenderingauthorityforsettinggeneralpolicyandbusinesspracticesofthebusiness.IfTenantmakessuchrestrictedselectionorappointmentwithoutfirstsecuringLandlord’s consentthereto,thenLandlord,uponthirty(30)days’writtennoticeto Tenant,shallhavetherighttoterminatethisLease.Landlordshallnotunreasonablywithholdsuchconsent.
17.4 EffectofAssignment.NoapprovedsublettingorassignmentshallrelieveTenantofitsobligationtopayallRentandtoperformalloftheotherobligationstobeperformedbyTenanthereunder. TenantshallpayLandlordforLandlord’sattorneys’feesforthereviewofanyproposedassignmentorsubleaseasprovidedherein.TheacceptanceofrentbytheLandlordfromanyotherpersonshallnotbedeemedtobeawaiverbytheLandlordofanyprovisionofthisLeaseortobea consenttoanyassignment,sublettingorothertransfershallnotbedeemedtoconstituteconsenttoanysubsequentassignment,sublettingorothertransfer.
Article18RulesandRegulations
Tenantanditsemployees,agents,andvisitorsshallobservefaithfullytheRulesandRegulationsassetforthinExhibit“C”attachedheretoandincorporatedbythisreferenceinfullherein,and 20 suchotherandfurtherreasonableRulesandRegulationsasLandlordmayfromtimetotimeadopt.LandlordshallnotbeliablefortheviolationofanyRulesandRegulationsorthebreachofanyprovisionofanyleasebyanyothertenantoranotherpartyintheLandlord’spremises.
Article19Attorneys’Fees
IncaseofanyactionorproceedingbroughtbyeitherPartyagainsttheotherunderthisLease,theprevailingPartyshallbeentitledtorecoverreasonableattorneys’feesandcostsincurred.
Article20Notices
20.1 Allcommunications,notices,anddemandsofanykindthateitherPartymayberequiredordesiresto giveto or serveontheotherPartyshallbemadein writinganddeliveredpersonallyorsentbyregisteredorcertifiedmailorFederalExpress(orotherlikeovernightdeliveryservice)tothefollowingaddresses:
ToLandlord: CityofOxnardRecreation305WestThirdStreet,WestWing,1stFloorOxnard,CA93030Withacopyto: CatalystFamily, Inc.350WoodviewAve.,Ste.#100MorganHill,CA95037Attn:ContractsDept.Tenant: SusanDumars,PresidentCatalystFamily, Inc.350WoodviewAve.,Ste.#100MorganHill,CA95037Tenant: EvaSchulte,ChiefOperatingOfficerCatalystFamily, Inc.350WoodviewAve.,Ste.#100MorganHill,CA95037
20.2 Anysuchnoticeshallbepresumedtohavebeenreceivedontheearlierof:
20.2.1Personaldeliverytotheaddress(es)shownabove,
20.2.2One(1)dayafterdeliverytoFederalExpressorotherlikeovernightdeliveryservice,or
20.2.3Forty-eight(48)hoursafterpostingintheUnitedStatesmail.EitherPartymaychangeitsaddressbygivingtheotherPartywrittennoticeofitsnewaddress. 21 Article21Subordination;Attornment
21.1 UponrequestofLandlordoranymortgageeorbeneficiaryofLandlord,Tenantshall,inawritingprovidedbyLandlordoranymortgageeorbeneficiaryofLandlord,subordinateitsrightshereundertothelienofanymortgageordeedoftrustorgroundlease(“Mortgage”),nowor hereafterin forceagainsttheland,LeasedPremises,andBuilding,andto alladvancesmadeor hereafterto be madeuponthesecuritythereof,providedthatsuchMortgageshallnotmateriallyimpairTenant’s rightsunderthisLease,orimposeanyadditionalobligationsuponTenant.Tenantfurtheragrees,uponrequestofLandlordoranymortgageeorbeneficiaryofLandlord,toprovidetoLandlordand/oranysuchmortgageeorbeneficiary, financialstatementsofTenantandtheprincipalownersofTenantwithinten(10)daysafterrequesttherefor.
21.2 IntheeventanyproceedingsarebroughtfortheforeclosureofanymortgageordeedoftrustencumberingtheBuilding,oranyportionthereof,orintheeventoftheexerciseofthepowerofsaleunderanymortgageordeedoftrustmadebytheLandlordcoveringtheLeasedPremises,TenantshallattorntothepurchaseruponanysuchforeclosureorsaleandrecognizesuchpurchaserasthelandlordunderthisLease.
21.3 TheprovisionsofthisSection21tothecontrarynotwithstanding,andsolongasTenantisnotindefaulthereunder, thisLeaseshallremaininfullforceandeffectforthefulltermhereof.
Article22Surrender
Byentryhereunder, Tenantacceptsthepremisesasbeingingoodandsanitaryorder, condition,andrepairandagreesonthelastdayofthesaidTerm,orsoonerterminationofthisLease,tosurrenderuntoLandlordtheLeasedPremiseswithsaidappurtenancesinthesameconditionaswhenreceived,reasonableuseandwearexcepted,andtoremovealloftheTenant’s personalpropertyfromtheLeasedPremises.Tenantshall,upontherequestofLandlord,removefromtheLeasedPremisesthosetradefixturesandotherimprovementsidentifiedby Landlordandinstalledin theLeasedPremisesbyoratthedirectionofTenant,andTenantshallrepairanydamageoccasionedbysuchremoval.
Article23HoldingOver
IfTenant,withLandlord’sexpresswrittenconsent,remainsinpossessionoftheLeasedPremisesafterexpirationofthisLease,suchpossessionbyTenantshallbedeemedtobeatenancyfrommonth-to-monthataBaseRentdeterminedinaccordancewithSections3.1and3.2above(withthe commencementdateof suchtenancyconstitutingan AdjustmentDate)anduponallprovisionsofthisLeaseapplicableto sucha month-to-monthtenancy. IfTenantremainsinpossessionoftheLeasedPremisesafterexpirationorearlierterminationofthisLeasewithouttheexpresswrittenconsentofLandlord,suchpossessionbyTenantshallbedeemedatenancyatsufferanceatarentalrateofthreehundredpercent(300%)oftherentalrateineffectasofsuchexpirationorearliertermination. 22 Article24EstoppelCertificate
Withinten(10)daysafterrequestbyLandlord(whichrequestmaybefromtimetotimeasoftenasreasonablyrequiredbyLandlord),TenantshallexecuteanddelivertoLandlordastatementsubstantiallyin the formof Exhibit“D”,attachedhereto. Anysuchstatementmaybeconclusivelyrelieduponbyanyprospectivepurchaserorencumbrances,oftheLeasedPremisesorofalloranyportionoftheBuildingofwhichtheLeasedPremisesareapart.Tenant’sfailuretodeliversuchstatementwithinten(10)daysofLandlord’s writtenrequestthereforshallbeabindingagreementofTenant:
24.1 ThatthisLeaseis in fullforceandeffectwithoutmodificationexceptas mayberepresentedbyLandlord,
24.2 ThattherearenouncureddefaultsinLandlord’sperformancehereunder,and
24.3 ThatnotmorethanonemonthlyinstallmentofBaseRenthasbeenpaidinadvance.
Further, suchfailureto deliverthesuchcertificate(showinganyexceptionsto anyof thestatementsoffactrequiredthereby)shallbeamaterialdefaultunderthisLease.
Article25BindingonSuccessorsandAssigns
EachprovisionofthisLeaseperformablebyTenantshallbedeemedbotha covenantandacondition.Theterms,conditions,andcovenantsofthisLeaseshallbebindinguponandshallinureto thebenefitofeachoftheParties,theirheirs,personalrepresentatives,andpermittedsuccessorsandassigns.
Article26Waivers
NowaiverbytheLandlordofanyprovisionhereofshallbedeemeda waiverofanyotherprovisionhereoforofanysubsequentbreachbytheTenantofthesameoranyotherprovisions.ThesubsequentacceptanceofRenthereunderbyLandlordshallnotbedeemedtobeawaiverofanyprecedingbreachbyTenantofanyterm,covenant,orconditionofthisLease,otherthanthefailureofTenanttopaytheparticularRentsoaccepted,regardlessofLandlord’s knowledgeofthesuchprecedingbreachat thetimeof acceptanceofsuchRent.Noterm,covenant,orconditionofthisLeaseshallbedeemedtohavebeenwaivedbyLandlordunlesssuchwaiverisinwritingandsignedbyLandlord.
Article27EntireAgreement;Amendments
TherearenooralorwrittenagreementsorrepresentationsbetweenthePartiesaffectingthisLease,andthisLeasesupersedesandcancelsanyandallpreviousnegotiations,arrangements,representations,agreements,andunderstandings,ifany, betweenthePartieswithrespecttothesubjectmatterthereof,andnonethereofshallbeusedtointerpretorconstruethisLease.AllreliancebyeitherPartywithrespecttorepresentationsandwarrantiesshallbesolelyupontherepresentationsandagreementscontainedinthisLease.NoamendmentoradditiontothisLease 23 shallbebindinguponthePartiesunlessin writing,signed,anddeliveredbythePartytobecharged.
Article28NoBroker
Tenantrepresentsandwarrantsthatithasdealtwithnorealestatebrokers,leasingagents,orfindersinconnectionwithorarisingoutofanyofthetransactionscontemplatedbythisLease,andcovenantsandagreestoindemnify,defendandsaveLandlordharmlessfromanyandalllosses,liability, damages,andexpenses(includingreasonableattorneys’feesandcosts),thatmayarisefromabreachofthisrepresentationandwarranty.
Article29Severability
If anyprovisionsofthisLeaseshallbedeterminedtobevoidbyanycourtofcompetentjurisdiction,thensuchdeterminationshallnotaffectanyotherprovisionofthisLeaseandallsuchotherprovisionsshallremaininfullforceandeffect.ItistheintentionofthePartiesthatifanyprovisionofthisLeaseiscapableoftwoconstructions,oneofwhichwouldrendertheprovisionvoidandtheotherofwhichwouldrendertheprovisionvalid,thentheprovisionshallhavethemeaningwhichrendersitvalid.
Article30ApplicableLaw
ThelawsoftheStateofCaliforniashallgovernthevalidity, performance,andenforcementofthisLease.ThisLeaseshallnotbeconstruedeitherfororagainstLandlordorTenant,butthisLeaseshallbeinterpretedinaccordancewiththegeneraltenorofthelanguageinanefforttoreachanequitableresult.
Article31CorporateTenant;Partnership
IntheeventTenant(orageneralpartnerofTenant)shallbeacorporation,thepersonsexecutingthisLeaseonbehalfofthesuchcorporationherebycovenant,represent,andwarrantthatsuchcorporationisadulyconstitutedcorporationingoodstandingandqualifiedtodobusinessintheStateofCalifornia;allfranchiseandcorporatetaxeshavebeenpaidtodate;allfutureforms,reports,fees,andotherdocumentsnecessarytocomplywithapplicablelawswillbefiledwhendue;andsuchpersonsaredulyauthorizedbythegoverningbodyofsuchcorporationtoexecuteanddeliverthisLeaseonbehalfofthecorporation.IntheeventTenantisa partnership,thepersonsexecutingthisLeaseonbehalfofTenantherebyrepresentandwarrantthatTenantisdulyorganizedandvalidlyexistingandisqualifiedtodobusinessintheStateofCalifornia;allfutureforms,reports,fees,andotherdocumentsnecessaryforTenanttocomplywithapplicablelawswillbefiledbyTenantwhendue;andsuchpersonsareauthorizedtoexecuteanddeliverthisLeaseonbehalfofthepartnership.
Article32WaiverofRedemptionRights
TenantherebyexpresslywaivesanyandallrightsofredemptiongrantedbyorunderanypresentorfuturelawsintheeventofTenantbeingevictedordispossessedforanycauseorintheevent 24 ofLandlordobtainingpossessionoftheLeasedPremisesbyreasonoftheviolationbyTenantofanyofthecovenantsandconditionsofthisLeaseorotherwise.TherightsgiventoLandlordhereinareinadditiontoanyrightsthatmaybegiventoLandlordbyanystatuteorotherwise.
Article33NoReservationorOption
ThesubmissionofthisLeaseforexaminationdoesnotconstituteareservationoforoptionfortheLeasedPremisesandthisLeaseshallbecomeeffectiveasaleaseonlyuponexecutionthereofbyLandlordandTenant.
Article34Counterparts
ThisLeasemaybeexecutedincounterparts,eachofwhichshallbedeemedtobeanoriginaldocument. ///////////////
25 Article35Captions
ThecaptionsoftheparagraphsofthisLeaseoranyExhibitsorRidersattachedheretoareforconvenienceonlyandshallnot be deemedto be relevantin resolvinganyquestionofinterpretationorconstructionofanysectionofthisLease.
INWITNESSWHEREOF, LandlordandTenanthaveexecutedthisLeaseasofthedayandyearfirstwrittenabove.
LANDLORD: TENANT:
CITYOFOXNARD CATALYSTFAMILY,INC.
JohnC.Zaragoza,Mayor Date SusanDumars,President Date
ATTEST: EvaSchulte,Chief DateOperatingOfficer
RoseChaparro,CityClerk Date
APPROVEDASTOFORM:
StephenM.Fischer,CityAttorney Date
26 Exhibit“A”
PREMISES
1. Rentablesquarefootage: 7,782squarefeet.
2. AreaofPremises: 18,072squarefeet.
3. Tenant’sPercentageofBuilding:43.1%.
4. UseofPremises: C.F.I.Area,Kitchen,andCommonArea.
5. NormalBusinessHours: (MondaythroughFriday)7AMuntil6PM.
6. FloorPlanattached
27 Exhibit“B”
ANTI-DISCRIMINATIONANDEQUALOPPORTUNITY
Tenant,foritself,itssuccessorsandassigns,andallpersonsclaimingunderorthroughit,covenantsthatthereshallbenodiscriminationagainstorsegregationofanypersonorgroupofpersonsonaccountofrace,color, creed,religion,sex,maritalstatus,nationaloriginorancestry,in theleasing,subleasing,transferring,use,occupancy, tenureor enjoymentof theLeasedPremises,norshallTenantoranypersonclaimingunderorthroughit,establishorpermitanypracticeorpracticesofdiscriminationorsegregationwithreferencetotheselection,location,number, useoroccupancy,oftenants,licensees,employeesorvendeesintheLeasedPremisesortheimprovementsthereon.Theforegoingcovenantsshallrunwiththeland.Tenant,foritself,itssuccessorsandassigns,andallpersonsclaimingunderorthroughit,covenantsthatthereshallbenodiscriminationagainstorsegregationofanypersonorgroupofpersonsonaccountofrace,color, creed,religion,sex,maritalstatus,nationaloriginorancestryintheconstructionofanyimprovementsontheLeasedPremises.TheTenantshallrefrainfromrestrictingtherentalorleaseoftheLeasedPremisesonthebasisofrace,color, creed,religion,sex,maritalstatus,ancestry,ornationaloriginofanyperson.Allleases,deedsorcontractswhichTenantproposesto enterintowithrespecttothelease,sublease,transfer, use,occupancy, tenureorenjoymentofanylandintheLeasedPremisesshallcontainorbesubjecttosubstantiallythefollowingnondiscriminationornonsegregationclauseswhichshallbebindingonallcontractingpartiesortransferees:(a)Inleases:“Thetenanthereincovenantsby andforhimselforherself,hisorherheirs,executors,administratorsandassigns,andallpersonsclaimingunderorthroughhimorher, andthisleaseismadeandaccepteduponandsubjecttothefollowingconditions:“Thatthereshallbenodiscriminationagainstorsegregationofanypersonorgroupofpersonson accountof race,color, creed,religion,sex,maritalstatus,nationaloriginorancestry, intheleasing,sub-leasing,transferring,use,occupancy, tenureorenjoymentofthepremiseshereinleased,norshallthetenanthimselforherself,oranypersonclaimingunderorthroughhimorher, establishorpermitanysuchpracticeorpracticesofdiscriminationorsegregationwithreferencetotheselection,location,number, useoroccupancyoftenants,lessees,subtenants,sublesseesorvendeesinthepremiseshereinleased.”(b)Incontracts:“Thereshallbenodiscriminationagainstorsegregationofanypersonorgroupofpersonsonaccountofrace,color, creed,religion,sex,maritalstatus,nationaloriginorancestryinthesale,lease,sublease,transfer, use,occupancy, tenureorenjoymentofthepremises,norshallanypartytothiscontract,oranypersonclaimingunderorthroughhimorher, establishorpermitanysuchpracticeorpracticesofdiscriminationorsegregationwithreferencetotheselection,location,number, useoroccupancyoftenants,lessees,subtenants,sublesseesorvendeesoftheland.” 28 Exhibit“C”
RulesandRegulations
RULESANDREGULATIONS
THESERULESANDREGULATIONSare publishedbytheCITYOFOXNARD("Landlord")fortheCatalystFamily, Inc.("CFI")forthepurposeofregulatingthedeportmentoftheoccupantsandtheuseoftheCFInecessaryorconvenientforthepropertyoperation,maintenance,andcare oftheCFI.Theterm"CFI"shallincludeallpresentandfuture buildingsorstructuresandtheparkinglots,ramps,platformsanddocks,andotherareasandimprovementsincludedwithintheCFI.Theterm"Premises"shallrefertothatportionoftheCFIrentedtoTenants.
Landlordreservestherightat anytimeto rescindanyoneormoreoftheseRulesandRegulations,ortomakesuchotherandfurtherreasonableRulesandRegulationsasintheLandlord'sjudgmentmayfromtimeto timebe necessaryfor thesafety, care,andcleanlinessoftheCFI,andforthepreservationorordertherein.LandlordmaywaiveanyoneormoreoftheseRulesandRegulationsforthebenefitofanyparticularTenantorTenants,butnosuchwaiverbyLandlordshallbeconstruedasawaiverofsuchRulesandRegulationsinfavorofanyotherTenantorTenants,norpreventLandlordfromthereafterenforcinganysuchRulesandRegulationagainstanyoralloftheTenants.TheseRulesandRegulationsareinadditiontoandshallnotbeconstruedtoinanywaymodify, alter, oramend,inwholeorinpart,thecovenants,agreements,terms,andconditionsofanyLeaseaffectingtheCFIoranyportionthereof.
1. AllareasoftheCFIotherthanthoseunderleasetoTenants,includingpublichalls,shallbeunderthesoleandabsolutecontroloftheLandlord,itsagents,oremployeeswhoshallhavetheexclusiverighttoregulateandcontroltheseareas.Thesidewalks,halls,passages,exits,andentrances,oftheCFI,shallnotbeobstructedbyanyoftheTenants,orusedbythemforanypurposeotherthanforingresstoandegressfromanyPremises.Landlordand/oritsagentsoremployeesreservetherighttoexcludeorexpelfromtheCFIanypersonwho,in thejudgmentof theLandlordand/orits agentsor employeesisintoxicatedorundertheinfluenceofliquorordrugs,orwhoshallinanymanneractinviolationofanyoftheRulesandRegulationsoftheCFI.TenantsandotherpersonsmaynotgoupontheroofofthestructuresoftheCFI.
2. Landlord,itsagents,oremployeesreservetherighttoexcludefromthemainbuildingoftheCFIpersonswhodonotpresentapassorotheridentificationacceptabletotheLandlordand/oritsagentsoremployees.Ifpassesarerequired,LandlordwillfurnishpassestopersonsforwhomanyTenantrequestsapass.EachTenantshallberesponsibleforallpersonsforwhomitrequestspassesorrequestsadmissiontothemainbuildingoftheCFI,andTenantshallbeliabletoLandlordforallactsofsuchpersons.Landlordshallnotbeliablefordamagesforanyerrorwithregardtotheadmissionorexclusionfromthe 29 CFIof anyperson.In thecaseof invasion,mob,riot,publicexcitement,or othercircumstancesrenderingsuchactionadvisablein theLandlord's(and/oritsagentsoremployee)soleandabsolutediscretion,theLandlordand/orits agentsor employeesreservetherightto preventaccessto theOTCduringthecontinuancethereofofsuchactionsas Landlordand/orits agentsor employeesmaydeemappropriate,includingclosingandlockingdoors.
3. LandlordretainsabsolutecontrolovertheexteriorappearanceoftheCFIandtheexteriorappearanceofanyPremisesasviewedfromtheexteriorofthePremisesortheCFI,publichallsorpassageways,andTenantsshallnot,withoutLandlord'spriorwrittenconsent,installorpermitto beinstalledanylighting,paintings,drapes,blinds,shades,signs,lettering,placards,decorationsor advertisingmediaof anytypewhichcanbeviewedfromtheexterioroftheCFI,publichallsorpassageways.IfanyTenantobtainspermissionandinstallsanyoftheaboveitems,suchTenantshallnotmakeanycharges,alterations,ormodificationstosaid installeditemswithoutthepriorwrittenconsentofLandlord,andsuchTenantshallmaintainsuchitemsatitsexpenseinaneatandorderlymanneratalltimes.
4. ThedirectoryoftheCFIwillbeprovidedforthedisplayofthenameandlocationof TenantanditsprincipalofficersandtheLandlordmayexcludeanyothernamesfromthedirectory.
5. In theeventanyTenantfailsto keepandperformanyofthetermsandconditionshereof,notwithstandinganyprovisiontothecontraryintheLease,immediatelyuponwrittennoticeofdefaultfromLandlord,LandlordmayrestoreanyPremisesorCFItoitsoriginalcondition,andsuchTenantshallreimburseLandlordupondemandforsuchcostof restoration.LandlordmaydemandthatsuchTenantimmediatelyrestorethePremisesorCFItoitsoriginalcondition.Sucha defaultshallconstituteadefaultundersuchTenant'sleaseandLandlordmayresorttoanyandalllegalremedieswhichLandlordmaydesiretoassert.
6. WhenanyelectricwiringisintroducedintothestructuresoftheCFI,itmustbeconnectedasdirectedbytheLandlordand/oritsagentsandemployees,andnoboringorcuttingofwireswillbeallowedwithouttheconsentoftheLandlord.Thelocationoftelephonesand/ortelephonecontrolstations,telegraphinstruments,computerand/orwordprocessingequipment,telegraphinstruments,electricappliances,callboxes,andsimilarinstrumentsshallbeprescribedbytheLandlord,itsagents,oremployees.Noapparatusofanykind,otherthannormalsmallofficemachinesandequipment,shallbeconnectedtotheelectricalsystemoftheCFIwithoutthewrittenconsentoftheLandlord.
7. Tenantsshallnotmark,paint,drillintoanypartofthePremisesortheCDIwithoutthepriorwrittenconsentofLandlord.TenantsshallnotstringwiresoruseextensioncordswithoutthepriorwrittenconsentofLandlord. 30 8. TenantsshallnotdoanythingintheCFI,orbringorkeepanythingthereinorthereon,whichwillinanywayincreaseortendtoincreasetheriskoffire,orwhichshallconflictwiththeregulationsoftheFireDepartmentorthefirelaws,orwithanyinsurancepolicyontheCFIoranypartthereof,orwithanyrulesorordinancesestablishedbyanyothergovernmentalagency.
9. Tenantshallbe responsibleforprotectinganypropertylocatedonoraboutthePremises.
10. Landlordshallprescribetheweight,sizeandpositionofallsafes,libraries,etc.,usedintheCFI.AnyheavyloadmustbecheckedbyLandlord'sstructuralengineeratTenantcost.Extremeconditionsmayrequireredistributionoraddedstructuralreinforcing.AlldamagedonetotheCFIbyinstalling,removingormaintainingsuchheavyloadshallberepairedattheexpenseoftheTenantinwhosePremisessuchheavyloadislocated.ArticlesofunusualsizeorweightarenotpermittedintheCFI.TenantsshallnotuseanymachinerywhichmaycauseanyobjectionablenoiseortremortothefloorsorwallsorwhichbyitsweightmightinjurethefloorsoftheCFI.
11. TenantsshallnotconductanyauctioninCFI,shallnotstoregoods,waresormerchandiseon theirPremisesexceptfor Tenant'sownpersonaluse,andshallnotmanufactureanyitemontheirPremises.
12. Allfreight,miscellaneouslargedeliveries,andfurnituremustbemovedinto,within,andoutoftheCFIunderthesupervisionoftheLandlord'sagentsand/oremployeesandaccordingtosuchregulationsasmaybepostedintheofficeoftheCFI,buttheLandlordwillnotberesponsibleforthelossordamageofsuchfreight,etc.,fromanycause.
13. TherequirementsofanyTenantswillbeattendedtoonlyuponapplicationtotheManageroftheCFI,dulyappointedto thatpositionbyLandlord.Employeesand/oragentsofLandlordshallnotperformanywork,nordoanythingbeyondtheirregulardutiesunless,underspecialinstructionfromtheManageroftheCFI,andemployeesand/oragentsof Landlordwillnotbe obligatedto admitanyperson(Tenantsor otherwise)to anyoffice/establishment,etc.,withoutspecificinstructionsfromtheManageroftheCFI.
14. Allkeysshallbe obtainedfromtheManagerof theCFIandall keyspertainingtoanyPremiseshallbereturnedtotheManageroftheCFIupontheterminationoftheleaseaffectingsuchPremises.TheTenantsshallnotduplicateanykeysorpermitanykeystobeduplicated.TheTenantsshallnotchangethelocks,orinstallotherlocksonthedoorswithoutthepriorwrittenconsentoftheManageroftheCFI.
15. BeforeanyTenantanditsemployeesleaveitsPremises,theyshallseethatthedoorsofthePremisestocommonhallwaysoftheCFIareclosedandsecurelylockedandshallobservestrictcareandcautionthatallwaterfaucets,waterapparatus,typewriters, 31 copymachines,etc.,andutilitiesareshutoffsoastopreventwasteordamage;andforanydefaultorcarelessness,suchTenantshallcompensatetheotherTenantsandLandlordsforalldamagesustainedbythem.
16. TenantsshallgivepromptnoticetotheManageroftheCFIofanyaccidentto,ordefectsin,theCFI,includingtheplumbing,waterpipes,electricwireorheatingapparatus,burned-outlightbulbsortubessothatthesamemaybeattendedtopromptly.
17. TenantsshallnotuseanymethodofheatingorairconditioningotherthanthatsuppliedbytheLandlordunlessapprovedbyLandlordinwriting.
18. Tenantsshallnot installany radioor televisionantenna,loudspeaker, airconditionerorotherdevicesontherooforexteriorwallsoftheCFI.
19. Novendingorcoin-operatedmachinesshallbeplacedormaintainedbyanyTenantwithinitsPremisesorthecommonareasoftheCFIwithoutthepriorwrittenconsentofLandlord.
20. TenantsshallcooperatewithLandlordinobtainingmaximumeffectivenessofthecoolingsystembyclosingdrapesandotherwindowcoveringswhenthesun'sraysfallonthewindowsofthePremises.Tenantsshallnotobstruct,alterorin anywayimpairtheefficientoperationof theLandlord'sheating,ventilating,airconditioning,electrical,firesafety, or lightingsystem.Tenantsshallnottamperwithor changethesettingof anythermostatsortemperaturecontrolvalves.
21. Canvassing,soliciting,andpeddlingin theCFIareprohibitedwithoutthewrittenconsentoftheLandlord,andeachTenantshallcooperatetopreventsuchactivitybyinformingsuchcanvassers,solicitors,orpeddlersthatsuchactivityisnotpermittedattheCFI.
22. Handtrucksnotequippedwithrubbertiresandsideguardsshallnotbeusedinanyspace,orinthepublichallsoftheOTC,eitherbyanyTenantorothers.Nobicycles,vehicles,oranimalsofanykindshallbebroughtintoorkeptinoraboutthePremises.
23. Thetoilets,washbasinsandotherplumbingfixturesshallnotbeusedforanypurposeotherthanthoseforwhichtheywereconstructed,andnosweeping,rubbish,rags,orothersubstancesshallbethrowntherein.AlldamageresultingfromanymisuseoffixturesshallbebornebytheTenantwho,orwhoseemployees,agents,inviteesorvisitors,shallhavecausedthesame.
24. Tenantshallnotengagein or permitanyadvertisingorpublicrelationswhich,inLandlord'sopinion,tendstoimpairthereputationorthedesirabilityoftheCFIorsuggestthatTenantisanythingotherthanaTenantintheCFI.
25. TenantsshallnotuseorkeepinorabouttheCFIanykerosene,gasolineor 32 inflammableorcombustiblefluidormaterial.Tenantshallnotuse,keep,orpermitorsuffertheCFItobeoccupiedorusedinamanneroffensiveorobjectionabletoLandlord,itsagentsoremployeesbyreasonofnoise,odors,and/orvibrations,orinterfereinanywaywithotherTenantsorthosehavingbusinessintheCFI.NoportionoftheCFIshallbeusedforlodgingorsleepingorforanyimmoralorillegalpurpose.
26. Tenantagrees,atTenant’s soleexpense,tomaintaintheLeasedPremisesinneatandcleanorderandinconditionfreefromdebrisandaccumulationofwasteandfirehazards.Tenantagrees,onthelastdayoftheLeasetermoronearlyterminationofthisLease,tosurrendertotheLandlordtheLeasedPremisesinthesameconditionasreceived,lessreasonableuseandwear.
27. Tenantconductsitsbusinessin suchmannerastocreateanynuisance,orinterferewith,annoyordisturbothertenants.
28. NoshowcasesorotherarticlesshallbeputinfrontoforaffixedtoanypartoftheexterioroftheBuilding,norplacesinhalls,corridorswithoutthepriorconsentoftheLandlord.
29. TenantshallnotpermittheoperationofanymusicalorsoundproducinginstrumentordevicewhichmaybeheardoutsideLeasedPremises.
30. Tenantshallnotblockor obstructanyoftheentries,passages,doors,orhallwaysofbuildingorparkingfacilities.Deliveriesandshippinggoodandmerchandiseinoroutofthepropertymustbemadeonlythroughthesidewalk. 33 Exhibit “D”
SAMPLEESTOPPELCERTIFICATE
RE:leasedated______________________byandbetweenCityofOxnard“Landlord”and____________________________“Tenant”forthepremisedlocatedat________________.1. ThetermoftheLeasecommencedon______________._
2.ThetermoftheLeaseshallexpireon_______________.
3. TheLeasehas:(Initialone)()()hasnotbeenamended,modified,supplemented,extended,renewed,orassigned.4. Thatthebasicmonthlyrentalnowinfullforceandeffectis$____________.
5.Thattheamountofsecuritydeposit(ifany)is:$____________.
6. ThatthebuildingimprovementsandspecificrequirementstobefulfilledbyLandlordaccordingtotheaforesaidLeasehavebeensatisfactorilycompletedinallrespects.
7. ThattheLandlordhasfulfilledallofitsdutiesofaninducementnatureandisnotindefaultInanymannerintheperformanceofanyoftheterms,covenants,orprovisionsofsaidLease.
8. Tenanthasnorighttoanyconcessions(rentalorotherwise)orsimilarcompensationinconnectionwithrentingthePremisesitoccupies,exceptasprovidedintheLease.
9. ExceptasmaybespecificallysetforthintheLease,TenantdoesnothaveanyrighttoreneworextendthetermoftheLeasenoranyoptionorpreferentialrighttopurchasealloranypartoftheLeasedPremisesoralloranypartofthebuildingandPremisesofwhichtheleasedPremisesareapart,noranyright,titleorinterestwithrespecttotheleasedPremisesotherthanasTenantundertheLease.
10. Tenantunderstandsthat_________________________maypurchaseoracquire(orendMoneypursuanttoaPromissoryNoteandDeedofTrustsecuredby)thePremisesknownas_________________andthatifitdoesso,itsactionwillbeinmaterialrelianceuponthisCertificate.
TheundersignedTenantandLandlordherebycertifythattheaboveinformationistrueandcorrectandthat mayrelyuponsaidinformation.Tenant: Landlord:
by _______________ by___________________
date ______________ date_________________
34 Exhibit “E”
FLOORPLANOFLEASEDSPACE
35 Lease Agreement with Catalyst Family,
Incorporated
Esteban Melchor, Recreation Supervisor
Cultural & Community Services
Finance and Governance Committee
May 9, 2023
36 That the Finance and Governance Committee recommended that the City Council approve and authorize the Mayor to execute a lease agreement for three (3) years with monthly lease rates of $8,614.10 (FY 23-24), $8,829.45 (FY 24-25) and $9,050.19 (FY 25-26) with Catalyst Family, Incorporated (CFI) for a portion of South Oxnard Community Center, 200 East Bard Road.
Recommendation 2
37 • Catalyst Family Incorporated (CFI), has a 46-year history of providing high- quality childcare programs for infant, preschool and school-age children in Ventura County.
• CFI programs serve children and families who qualify for state subsidies through the California Department of Education, as well as private fee-paying families during the school year.
• Licensed by the California Department of Social Services, Community Care Licensing Division
Background 3
38 • In 1993, the City of Oxnard contracted partial use of the South Oxnard Center with CFI (formerly CDI) to provide childcare services and has continued the relationship for the past 30 years.
• The proposed agreement to lease the South Oxnard Community Center to CFI is for a three (3) year term.
• The term will commence on July 1, 2023 and terminate on June 30, 2026.
• This contract includes an annual adjustment of 2.5% of the base rent of $8,614.10 per month, netting $317,924.88 over the three year lease agreement.
Background 4
39 • If approved, the lease agreement will generate $317,924.88 in lease revenue over three years.
• Fiscal Years 2023-24, 2024-25 and 2025-26 will include the total lease agreement amount in the General Fund revenue budget.
Financial Impact 5
Year Fiscal Year Monthly Lease Rate Annual Revenue
1 FY 2023-2024 $8,614.10 $103,369.20
2 FY 2024-2025 $8,829.45 $105,953.40
3 FY 2025-2026 $9,050.19 $108,602.28
Total Revenue over 3 Years $317,924.88
40 THE END
6 41
FINANCE AND GOVERNANCE COMMITTEE
AGENDA REPORT
REPORTS
AGENDA ITEM NO. D.2
DATE: May 9, 2023
TO: Finance & Governance Committee
FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]
SUBJECT: Fiscal Year 2023-24 Golf Annual Plan. (20 minutes)
RECOMMENDATION
That the Finance and Governance Committee recommend the City Council receive and file the River Ridge Golf Course Annual Plan for Fiscal Year 2023-24 as prepared by American Golf Corporation.
Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/O5JIb4G8vX4
BACKGROUND
The City of Oxnard owns the River Ridge Golf Club, under the supervision of the Public Works Department, which consists of two 18-hole golf courses that are operated under contract by American Golf Corporation. (“AGC”). AGC was awarded the management agreement beginning July 1, 2019 and will expire on June 30, 2024. The golf operations have been profitable during AGC’s management and for current FY 2022-23; both golf courses combined are projecting total revenues of $5.9 million with expenditures of $4.9 million by June 30, 2023. Included in the golf operations are food and beverage services, meeting and event rental, golf instruction, and merchandise sales.
DISCUSSION
AGC has provided the draft FY 2023-24 Annual Plan (Attachment 1) with a total expense budget of $5,137,191 (incl. $395,900 cost of sales) and revenues of $6,146,450. These expenses and revenues are based on the following assumptions.
Increase Green Fees
AGC proposes increasing the standard green fees by $5.00 and increasing the holiday rates by $6.00 starting on July 1, 2023. During their first year of managing the golf operations, AGC lowered the standard greens fees from $52.00 maximum to $45.00 maximum for the Vineyards Course and $50.00 maximum for the Victoria Lakes Course to promote more play. These fees have remained at this same rate since 2019. However, due to inflation, the golf course needs to increase the fees to replace equipment, pay competitive salaries that include the Living Wage, and fund necessary golf course improvements. The new recommended standard green fees are $50.00 maximum for the Vineyard Course and $55.00 maximum for the Victoria Lakes Course. The new recommended holiday rates are $56.00 for the Vineyard Course and $61.00 for the Victoria Lakes Course.
These new fees are comparable to the fees that are being charged by the neighboring golf courses (Attachment 2).
42 Implementing Dynamic Pricing
For better utilization, dynamic pricing software will be implemented starting on July 1, 2023, to provide adjustable rates that will generate more revenue and play by lowering the rates during slow times and increasing the rates during peak times with high demand. This will allow advanced bookings for prime morning times to generate more revenue, as well as generate more revenue by providing deals for vacant tee times. The dynamic pricing will not exceed the maximum standard green fee rate or the minimum green fee rate of $35.00. The dynamic pricing program does not apply to the Player’s Club rates, holiday rates, senior rates, junior rates, or twilight rates.
Golf Course Improvement Fund
The Golf Course Improvement Fund (GCIF) pays directly to golf course improvements such as bunker sand, golf course accessories, creating native areas, and irrigation and turf improvements. This fund is different from the revenue fund which is accounted for at the end of the fiscal year. For the GCIF, the revenue is placed into an impound account with access to fund current golf course improvement needs. For all regular rates, $2.00 will go towards the GCIF fund. For Senior, Player’s Club, and Twilight rates, $1.00 will go towards the GCIF fund. The Junior rate will be excluded from the GCIF fund. The use of these funds still requires AGC to follow purchasing procedures and approvals by City staff.
Capital Expenditure Account
This account is a component of the City Expenses (identified below) that is outside of the AGC Annual Plan. In the past, AGC did not have direct access to these funds that provide necessary capital replacement and repairs.
For example, this past year, the kitchen refrigerator required replacement. If AGC had direct access to the Capital Expenditure Account, this procurement would have been expedited. This year’s change to provide direct access to the Capital Expenditure Account to be used by the golf course operator will improve their ability to make repairs, replacements, and/or purchase capital items that are needed to effectively run the day- to-day operations of the golf course. This includes items such as kitchen and range equipment, HVAC systems, lighting, plumbing, and electrical. For Fiscal Year 2023-24, this fund has a budget amount of $240,000. The use of these funds still requires AGC to follow purchasing procedures and obtain approval from the City.
City Expenses
In addition to the AGC Annual Plan for golf operations, there are also direct City costs associated with the management and operations of the Golf Enterprise Fund. These costs are identified in the Annual City Budget for the Golf Enterprise Fund. The proposed budgeted City expenses for FY 2023-24 are $641,086, subject to the City Council approval of the annual Operating Budget. These expenses are budgeted for City services, such as bank charges, property tax, insurance, and services by City staff, and therefore provide a means to address these expenditures. Currently, for FY 2022-23, only $329,000 has been expensed. Any remaining funds at the end of the fiscal year are returned to the golf course’s Fund Balance.
Fund Balance
The Fund Balance is the accumulation of fund surpluses that includes annual net revenue. At the completion of each fiscal year, all surpluses from the golf operations are transferred into this fund. As of June 30, 2022, the Fund Balance was $4,485,969. The projected net income for the FY 2022-23 golf operations is $916,783 (not including City expenses) and will be added to the Fund Balance. The actual Fund Balance for June 30, 2023, is still to be determined based on the remaining revenues and expenditures during this fiscal year and the appropriations for both adjustments in the operations budget and capital improvement projects. This Fund Balance can only be used for the operations and improvements of the golf operations as a Golf Enterprise Fund.
For best management practice, the minimum Fund Balance should include enough funds to cover six months of golf operating expenses. Additionally, future critical major capital improvements to the golf course to ensure operations (e.g. roof replacement) are funded with money from the Fund Balance.
Community Events
43 The River Ridge Golf Club provides additional services to the community, which includes supporting youth golf, tournaments, non-profit charities, and free wedding and quinceanera shows.
STRATEGIC PRIORITIES
This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.
FINANCIAL IMPACT
Recommended action does not appropriate funds through this receive and file item. Actual funding will be requested and appropriated during the budgeting process for the City’s overall annual Operating Budget for FY 2023-24.
The River Ridge Golf Club operations are an Enterprise Fund that has no impact on the General Fund. The FY 2023-24 draft Annual Plan for the River Ridge Golf Club operations has a total projected expenses of $5,137,191 and projected revenues of $6,146,450. The expenses contained in this Annual Plan include the annual golf management fee of $100,020 (General & Administrative account). Additionally, the annual incentive fee (per the Golf Operations Management Agreement) is a scaled percentage of the net revenues and the estimated amount for the FY 2023-24 incentive fee is $250,000 (Non-Recurring account).
Prepared by: Steve Howlett, Assistant Public Works Director
ATTACHMENTS
1. Golf Fee Comparisons - Ventura County
2. DRAFT FY 2023-24 Annual Plan River Ridge Golf Club
3. Presentation
44 Olivas Links Rates Weekday Weekend
Greens Fees $51 $61
Ventura County Residents $42 $53
City of Ventura Residents $34 $45
Senior with valid Senior Membership $30 N/A Twilight Rates (after 1pm) $30 $37
Sunset (after 3pm) $22 $22
Juniors (after 12pm ) $16 $16
Replay Rates (includes Cart) $20 $20
Senior Card (Valid January -December) $25
Cart Fee 18 Holes $16
Cart Fee Twilight (after 1pm) $11
Pull Carts $7
Buenaventura Weekday Weekend
Green Fee $41 $51
Ventura County Residents $34 $46
City of Ventura $30 $40
Twilight $26 $31
Sunset $18 $18
Juniors (after 12pm) $15 $15
Replay $20 $20
Cart Fee $16 $16
Twilight Cart Fee $11 $11
Soule Park Weekday Weekend
Green Fee $32 $42
Senior $27 $35
Active Military $27 $35
Junior $14 $16
Twilight (after 12pm ) $22 $30
Super Twilight (after3pm) $14 $16
Super Twilight Junior (after 3pm) $7 $8
Cart Fee $15
Twilight Cart $10
Push Cart $6
SterLing Hills Weekday Weekend
All Fees Include Golf, Cart and Range
Green Fee $43 $55
Twi Light with Food $32 $40
Sunset with Drink $28 $30
Rustic Canyon Walk Ride
Public (Monday -Thursday) $44 $60
Public (Friday) $49 $65
45 Public Weekend $60 $86
Senior (with Rustic Canyon Senior Card) $26 $42
Senior (without card) $34 $50
Junior (after 12pm) $15 $27
Military Rate (Monday -Friday $25 $41
Weekday Replay $22
Weekend Replay $38
Twi-Light Monday-Thursday) $25
Twi-Light(Friday) $27 $39
Weekend Twi-Light $40 $52
Super Twi-Light (Monday-Friday) $15 $27
Super Twi-Light (Friday) $18 $30
Super Twi-Light (weekends) $20 $32
Senior Twi-Light (Weekday) $15 $27
Senior SuperTwi-Light (Weekday) $10 $22
Los Robles Walk Ride
Public Weekday $46 $62
Public Weekend $58 $74
Twi-Light Weekday $33 $45
Twi-Light Weekend $39 $51
Super Twilight Weekday $21 $33
Super Twilight Weekend $25 $37
Back 9 and Breakfast Weekday $27 $39
Back 9 and Breakfast Weekend $32 $44
Junior 1/2 price posted rate 1/2 price posted rate
46 River Ridge Golf Club
Annual Plan
2023-2024
Prepared for:
City of Oxnard
River Ridge Golf Club
Prepared By:
American Golf Corporation
47 1. Introduction
American Golf is one of the most experienced and innovative operators in the golf industry today. As an owner, lessee, and manager of golf courses and country clubs for more than 50 years, American Golf has developed industry leading best practices and programs allowing American Golf managed properties to outperform the market. Because of these programs, American Golf properties generate more revenue, rounds, and rent for our clients than our competitors year after year as proven by the results at the current facilities we operate.
With 45 golf courses in California and 42 in Southern California alone, American Golf is by far the leading golf course operator in California. American Golf employs nearly 3,000 people and is the largest and most experienced operator of government-owned golf courses in the State of California with 30 courses under contract for government agencies.
This unique position provides the unmatched benefit of a huge database of local golfers and the deepest market knowledge of any golf company in the country.
American Golf appreciates what it means to own a golf property. The golf business involves the complexities of retail, food and beverage, agronomy, and guest services. Our seasoned professionals work with each of our courses to help them achieve success. We maintain customized standards for each and every facility in our network, and we continuously monitor each property to ensure that we drive revenue, make cost-saving adjustments, and provide members and guests with exceptional service.
2. History of River Ridge Golf Club
River Ridge Golf Club is a 36-hole facility that comprises two separate 18-hole courses, The Vineyard Course and The Victoria Lakes Course. The original 18-hole layout, The Vineyard Course, was built in 1986 and designed by William Francis Bell, ASGCA, who is the son of the famous William P. Bell. Thirteen holes of the original course were built on a closed solid waste landfill called the Santa Clara landfill. The newer 18-hole course, The Victoria Lakes Course, was constructed over two phases with the original nine holes opening in 2004. The second nine holes opened in 2008, completing the 18-holes and establishing the full 36-hole facility. John Millhouse designed the Victoria Lakes course, incorporating holes into the older layout and making necessary modifications so that both courses could begin and end at the clubhouse.
3. Golf Course Fact Sheet
48 COURSE NAME:River Ridge Golf Club
ADDRESS:2401 W. Vineyard Avenue, Oxnard, CA. 93036
TELEPHONE:1-805-983-4653
WEBSITE: www.riverridge-golfclub.com
MANAGEMENT:Dee Fairbanks, General Manager
Ryan Santos, Golf Course Superintendent
COURSE YARDAGE:Vineyard (Par 72) Victoria Lakes (Par 72) Orange 4,235 yds.
Red 5151 yds. 5141 yds.
Gold 5783 yds. 5676 yds.
White 6262 yds. 6304 yds.
Blue 6730 yds. 6789 yds.
GRASS TYPES:Greens:
Vineyard: Bent/Poa
Victoria Lakes: Bent/Poa
Fairway / Tees:
Vineyard: Warm and Cool Season Kikuyu
Victoria Lakes: GN1 Bermuda
Roughs:
Vineyard: Warm and Cool Season Kikuyu
Victoria Lakes: Bermuda/Rye Mix
OWNER:City of Oxnard
MANAGED BY:American Golf Corporation
10670 N Central Expy, Ste 700
Dallas, TX. 75231
YEAR COURSE OPENED:Vineyard: 1986
Victoria Lakes: 2004/2008
4. Staffing Levels and Hours of Operation
49 Hours of Operation:
50 Summer Hours
Golf Shop: Monday – Sunday: Opens at Sunrise
Monday – Sunday: Closes one hour past Sunset
Café: Sunday – Thursday: 7am – 5pm
Friday – Saturday: 7am- 6am
Driving Range: Monday – Wednesday: 6am – 7pm
Tuesday: ** 10am – 7pm
Winter Hours
Golf Shop: Monday – Sunday: Opens at Sunrise
Monday – Sunday: Closes one hour past Sunset
Café: Sunday – Thursday: 8am – 5pm
Friday – Saturday: 8am- 6am
Driving Range: Monday – Wednesday: 7am – 4:30pm
Tuesday: ** 10am – 4:30pm
** Maintenance is done each Tuesday from 6am to 10pm. This includes clearing the range of all range balls, mowing the upper-level grass, and edging the fence lines.
5. Revenue
Clubhouse & Operations
The clubhouse and operations provide two 18-hole golf courses, a driving range, two practice putting greens, two chipping areas, the Learning Center, café, pro-shop, three banquet rooms, the sales office, and four staff offices for the General Manager, Assistant GM, Pro-shop Manager, and F&B Service Manager/Chef.
Green Fees/Cart Fees:
Green fees include a mix of various rates from Regular, Senior, Twilight, and Players Club. The Cart Fee remains a constant rate all day. With a combination of the various green fee rates and the cart fee, the anticipated average rate is $37.38/per player. For better utilization, dynamic pricing will be implemented to allow rates to be lower during slow times and higher during peak demand. The dynamic pricing does not apply to the Player’s Club rates or Holiday Rates.
The Player’s Club is a proprietary membership program that allows customers to receive a discounted green fee by paying a monthly membership fee. The current monthly membership fee is set at $46.98 and provides the member with discounted green fees, 51 1 free range bucket per day, a complimentary beverage when playing golf, free clinics given by the staff professionals, 15-day advance reservation, and merchandise discounts. The membership fees, green fees, and benefits for the Player’s Club program are set by American Golf. This program uses American Golfs proprietary software that manages the program with access to online booking, marketing, and promotional materials.
Upon assuming the operation of the River Ridge Golf Club in 2019, American Golf lowered the green fee rates to promote more play. These rates have remained unchanged for 4 years. With the continual increases in living wage, gas prices (over double from prior year), food prices (many items double even triple from prior year), supply change issues, golf course equipment increases, materials costs, and the cost of water, it is now recommended to increase rates to offset these higher expenses. It is also recommended to incorporate dynamic pricing, which will drive more revenue for golf rounds by reducing the greens fee based on weak demand and increasing them based on a strong demand. However, the greens fee will never exceed the maximum approved rate of $55.00.
Golf Course Improvement Fund (GCIF)
The new green fee rates include funding for the new Golf Course Improvement Fund (GCIF). This fund pays directly to golf course improvements such as bunker sand, golf course accessories, creating native areas, and turf improvements. For all regular rates, $2.00 will go towards the GCIF fund. For Senior, Player’s Club, and Twilight rates, $1.00 will go towards the GCIF fund. The Junior rate will be excluded from contributing to the GCIF fund. The improvements and use of GCIF funds will be approved by the Public Works Director for all improvements up to $100,000 and the City Manager for all improvements over $100,000. Any improvements over $200,000 will require City Council approval.
Capital Expenditure Account (CEA)
This account is to be used by the golf course operator to be able to make repairs, replacement, and/or purchase of capital items that are needed to effectively run the day-to-day operations of the golf course. This includes items such as kitchen and range equipment, HVAC systems, lighting, plumbing, and electrical. For fiscal year 2023/2024, this fund has a budget amount of $240,000. The golf course operator will have authority to use up to $100,000 with approval by the Public Works Director and any items over $100,000 will require the approval of the City Manager. Capital expenditures over $200,000 will require City Council.
52 Miscellaneous and Other Revenues
This consists of golf cart rentals, driving range fees, golf club rentals, golf club repairs, and lesson revenue. These fees are set forth by the operator and can be increased to offset expenses that are associated with maintaining the equipment and the facilities associated with these services.
Golf Shop Merchandise: Is based on the annual average retail sales of $2.09 per round.
This is up from the prior year of $1.54 in FY 2022-23.
Player’s Club Fees: The annual revenues of $500,000 are based on selling approximately 1,100 memberships per year. There are two Player’s Club rates. The initial members that enrolled during the first year of the program received a promotional rate of $36.98. If these members stay in good standing, then they remain at this rate. However, if their membership lapses or expires, they will need to pay the current membership rate of $46.98 to re-enter the program. All new members, except for first year membership pay the $46.98 rate.
Food and Beverage: Is based on an annual average sale of $4.97 per round.
6. Expenses
Living Wage: Per the Management Agreement, minimum pay for any employee will be at the current living wage rate. Each new fiscal year the living wage is reviewed and set by the City of Oxnard. For FY 2023-24, the living wage will increase from $18.22 to $18.89.
Cost of Sales (COS): This is the accumulated total of all costs to purchase or create the product of service which is sold.
Merchandise 66.0%
Food & Beverage 26.5%
Golf Shop: Includes golf professionals, Pro-shop Manager, pro-shop sales attendants, and department expenses. Professional printing costs associated with this department include:
Scorecards for Vineyard & Victoria Lakes
Vineyard $ 3,581/yr.
53 Victoria Lakes $ 4,774/yr.
Pencils $ 3,080/yr.
Pin Location Cards $ 2,400/yr.
Carts/Range: Includes golf cart, range staff, supplies, and other department expenses.
Some key costs associated with this department include:
Range Balls $42,000/yr.
Range Mats $10,000/yr.
Range Key Fobs $4,000/yr.
Range Baskets $2,400/yr.
Cleaning supplies for the golf carts: $ 9,000/yr.
Cart repair budget: $36,000/yr.
Golf Course Maintenance: Includes compensation and payroll related costs for the Golf Course Superintendent, Assistant Superintendent, Irrigation Technician, two Mechanics, grounds (greenskeeper) staff, supplies, equipment, and materials. Aeration dates are set for September 11, 2023 and April 8, 2024 for the Vineyard golf course and September 25, 2023 and April 22, 2024 for the Victoria Lakes golf course. These dates may change due to weather or other unforeseen events. These dates are set to meet the turf needs, while also establishing the dates for the men’s and women’s groups to plan their events. Additionally, tournaments are not booked during these times.
The golf operations continue to rent/lease equipment monthly at an estimated cost of $11,000 per month. American Golf is working with vendors to purchase two tractors, a fairway mower, two greens mowers, a spray rig, a sand-pro, a greens aerator, a fairway aerator, a wood chipper, and maintenance carts. Most of the equipment is to replace the 10 pieces that were removed due to the California Air Resource Board (CARB) regulations.
Water: The FY 2023-24 Annual Plan includes water to irrigate the golf courses and properly maintain the lake system.
River Ridge Golf Club has 2 wells to irrigate the golf courses. The Victoria Lakes Well #27 is Meter #79638290 and The Vineyard Well #18 is Meter #79638291. The current yearly allocation is: 789.731 Acre Feet (AF) for both wells. There are three agencies that provide water to the golf courses: United Water Conservation District, Fox Canyon Groundwater Management Agency, and Oxnard Advanced Water Purification Facility 54 (AWPF). The AWPF water is only used when the allocation of the other sources is exceeded. It is usually more cost effective to pay for AWPF water than paying the surcharge from Fox Canyon Groundwater for exceeding the allocation.
The reporting periods are as follows:
United water Conservation District
oJanuary 1 st through June 30th.
oJuly 1 st through December 31st
Fox Canyon Groundwater Management Agency
oApril 1 st through September 30th.
oOctober 1 st through March 31st.
The current cost per acre feet (AF):
United Water Conservation District $319.60 AF
This fee is constant even if we exceed allocation
Fox Canyon Groundwater Management Agency $55.00 AF
If we exceed allocation of 789.731, we pay a surcharge rate o0 – 25 AF $1,549.00 AF
o25.001 – 99.999 $1,799.00 AF
o100.000 - >100.000 $2,049.00 AF
AWPF Recycled Water (beginning 7-1-2023) $1,568.26 AF Food and Beverage: Includes F&B Director, snack bar attendants, bartender, cooks, banquet servers, and expenses for the operation of the café, Lake House, tournaments, and banquets. Some key costs associated with this department include:
Liquor & Business Licenses: $6,500/yr.
Professional Fees: $12,000/yr.
Supplies: (linens, uniforms, glassware, dishware) $46,800/yr.
Clubhouse: Includes clubhouse expenses, maintenance/cleaning staff, landscape maintenance, and parking lot and entry clean up. Some key costs associated with this department include.
Professional Fees: $18,000/yr.
Clubhouse Repair: $11,500/yr.
55 G&A: Expenses include the salaries for the General Manager, Assistant GM, Administrative Assistant, credit card processing fees, and the Annual Management Fee.
Management Fee: The annual management fee is $100,020 that is paid in monthly installments of $8,335.
Incentive Fee: This is budgeted into the FY 2023-24 Annual Plan per the Golf Operations Management Agreement and is a scaled percentage of the net revenues from performance. The estimated amount for the FY 2023-24 incentive fee is $250,000. The Incentive Fee for FY 2022-23 was $300,000.
Golf Cart Lease: Golf carts are leased for $187,200 per year. 56 7. FY 2023-24 Summary Fiscal Plan. This is a summary of the fiscal plan. The final fiscal plan is submitted along with the Annual Plan as a separate file for the final City Council approved budget.
Note: This budget shown has not been approved. Final budget will be approved by 06-30-23. 57 8. Market Plan
OBJECTIVE:Expand the brand awareness for the River Ridge Golf Club as a 36-hole championship golf course and event venue that is located in Ventura County. Expanding the brand awareness will increase golf rounds and golf related revenues.
The FY 2023-24 Marketing Plan is built around an annual budget of $10,800. This plan includes print advertising in Visit Oxnard Magazine, social media (Facebook, Instagram, and Twitter), collateral materials, and community networking.
PRINT ADVERTISING: Print advertising is regionally targeted for the Ventura County area.
Currently there is a full-page ad in the Visit Oxnard, Visitors Guide that promotes the River Ridge Golf Club and a ½ page ad in the VC Reporter “Wedding Issue” that promotes the River Ridge Golf Club as an Event Venue.
WEBSITE: The River Ridge Golf Club has a full-service website at www.riverridge- golfclub.com. The website allows guests to book a tee time online, inquire about hosting a tournament and/or a private events and weddings, enrollment for the premier discount golf membership call the Player’s Club, view the scorecards, receive golf course information, and get the latest rate information.
In addition to the River Ridge Golf Club website, American Golf also provides another wedding website at:
https://www.countryclubreceptions.com/weddingvenue/riverridgegolfclub.com This website allows couples to plan out their wedding from beginning to end with the assistance of a qualified sales team.
9. Community Events
River Ridge Golf Club is a big supporter of junior golf through both the golf course and with staff instructors. The golf courses currently host 4 schools; Oxnard HS, Pacifica HS, Channel Islands HS and Ventura College. During the golf season Monday through Thursday both the boys’ and girls’ teams receive complimentary green fees and range balls. Matches and practice rounds are usually played in the afternoon after 2pm to not off-set peak play
58 The River Ridge Golf Club hosts several paid junior events throughout the year. This includes the Southern California PGA, where the top kids 12-18 years of age come from all over Southern California to play in the 2-day Toyota Tour Cup. The Players Tour is for those kids who are trying to qualify for entry into the Toyota Tour Cup. The American Junior Golf Association is the international tour where kids from all over the world come to play in hopes of being seen by college recruiters. Last year, this event was hosted by PGA Tour player Adam Scott. Finally, the Ventura County Junior Golf Association is played 2 times each year.
Starting this year River Ridge will be focusing on fundraising for local and national charities with the “Folds of Honor” charity that raises money for military families and first responders. All events are sponsored by the American Golf Foundation, which is a non-profit 501(c)(3) dedicated to making a difference in our communities with the mission “To promote the game of golf and its ideas through charity, education, and community service”. Also, each year the River Ridge Golf Club participates in food drives for our local “Food Share” and a toy drive for “Spark of Love” during the Christmas Holiday.
Finally, there are 2 events that are free to the public that include the “Wedding Show Weekend” and the “Quinceanera Show”. Local vendors from Oxnard, Ventura, and Camarillo show their products and services that are available for residents to host their own events. During these shows, the golf operations provide free hors d’ oeuvres, drinks, table settings, and site tours to showcase the opportunities for their special event.
59 10.Golf Rates:
**2023-2024 Holiday Rates include promotional sleeve of balls 60 11.Maintenance Plan
61 Fiscal Year 2023-24 Golf Annual Plan
Finance & Governance Committee
May 9, 2023
City Council
June 6, 2023
Steve Howlett
Asst. Public Works Director
62 RECOMMENDATION
That the Finance and Governance Committee recommend the City Council receive and file the River Ridge Golf Course Annual Plan for Fiscal Year 2023-24 as prepared by American Golf Corporation.
2 63
RECOMMENDATION
That the City Council receive and file the River Ridge Golf Course Annual Plan for Fiscal Year 2023-24 as prepared by American Golf Corporation.
3 64
BACKGROUND
• The City of Oxnard owns the River Ridge Golf Club that contains two 18-hole golf courses that are operated under contract by American Golf Corporation (“AGC”).
• AGC was awarded the management agreement beginning July 1, 2019 and will expire on June 30, 2024.
• The golf operations have been profitable during AGC’s management and for FY 2022-23; both golf courses combined are projecting total revenues of $5.9 million with expenditures of $4.9 million. 4 65
DISCUSSION
AGC has provided the draft FY 2023-24 Annual Plan (Attachment 1) with a total expense budget of $5,137,191(incl. $395,900 cost of sales) and revenues of $6,146,450. These expenses and revenues are based on the following assumptions:
5 66
DISCUSSION
Increase Green Fees
• AGC proposes increasing the standard green fees by $5.00 and increasing the holiday rates by $6.00 starting on July 1, 2023.
• During their first year of managing the golf operations, AGC lowered the standard greens fees from $52.00 maximum to $45.00 maximum for the Vineyards Course and $50.00 maximum for the Victoria Lakes Course to promote more play.
• Due to inflation, the golf course needs to increase the fees to replace equipment, pay competitive salaries that includes the Living Wage, and fund necessary golf course improvements. The new recommended standard green fees are $50.00 maximum for the Vineyard Course and $55.00 maximum for the Victoria Lakes Course.
• The new recommended Holiday Rates are $56.00 for the Vineyard Course and $61.00 for the Victoria Lakes Course.
• These new fees are comparable to the fees that are being charged by the neighboring golf courses (Attachment 2).
6 67
DISCUSSION
Implementing Dynamic Pricing
• Dynamic pricing software will be implemented starting on July 1, 2023. • This provides adjustable rates that will generate more revenue and play by lowering the rates during slow times and increasing the rates during peak times with high demand.
• Dynamic pricing will not exceed the maximum standard green fee rate of $55.00 or the minimum green fee rate of $35.00.
• Dynamic pricing program does not apply to Player’s Club rates, Holiday rates, Senior rates, Junior Rates, or Twilight rates. 7 68
DISCUSSION
Golf Course Improvement Fund
• The Golf Course Improvement Fund (GCIF) pays directly to golf course improvements such as bunker sand, golf course accessories, creating native areas, and irrigation and turf improvements. • This fund is different from the revenue fund which is accounted for at the end of the fiscal year.
• For the GCIF, the revenue is placed into an impound account with access to fund current golf course improvement needs.
• For all regular rates, $2.00 will go towards the GCIF fund. For Senior, Player’s Club, and Twilight rates, $1.00 will go towards the GCIF fund. • The Junior rate will be excluded from the GCIF fund.
• The use of these funds still require AGC to follow purchasing procedures and approvals by City staff.
8 69
DISCUSSION
Capital Expenditure Account
• This account is a component of the City Expenses (next slide) that is outside of the AGC Annual Plan.
• In the past, AGC did not have direct access to these funds that provide necessary capital replacement and repairs.
• This year’s change to provide direct access to the Capital Expenditure Account to be used by the golf course operator will improve their ability to make repairs, replacement, and/or purchase of capital items that are needed to effectively run the day-to-day operations of the golf course. • Capital expenditures include items such as kitchen and range equipment, HVAC systems, lighting, plumbing, and electrical. • For Fiscal Year 2023-24, this fund has a budget amount of $240,000. • The use of these funds still requires AGC to follow purchasing procedures and obtain approval by the City.
9 70
DISCUSSION
City Expenses
• In addition to the AGC Annual Plan for golf operations, there are also direct City costs associated with the management and operations of the Golf Enterprise Fund.
• These costs are identified in the Annual City Budget for the Golf Enterprise Fund.
• The proposed budgeted City expenses for FY 2023-24 are $641,086, subject to the City Council approval of the annual Operating Budget.
These expenses are budgeted for City services, such as bank charges, property tax, insurance, and services by City staff, and therefore provides a means to address these expenditures. • Currently, for FY 2022-23, only $329,000 has been expensed. • Any remaining funds at the end of the fiscal year are returned to the golf course’s Fund Balance.
10 71
DISCUSSION
Fund Balance
• The Fund Balance is the accumulation of fund surpluses that includes annual net revenue. At the completion of each fiscal year, all surpluses from the golf operations are transferred into this fund. • As of June 30, 2022, the Fund Balance was $4,485,969. • The projected net income for the FY 2022-23 golf operations is $916,783 (not including City expenses) and will be added to the Fund Balance.
• This Fund Balance can only be used for the operations and improvements of the golf operations as a Golf Enterprise Fund. • For best management practice, the minimum Fund Balance should include enough funds to cover six months of golf operating expenses. Additionally, future critical major capital improvements to the golf course to ensure operations (e.g. roof replacement) are funded with money from the Fund Balance.
11 72
DISCUSSION
Community Events
• The River Ridge Golf Club provides additional services to the community that includes:
• Supporting youth golf
• Tournaments
• Non-profit charities, and
• Free wedding and quinceanera shows.
12 73
FINANCIAL IMPACT
• The recommended action does not appropriate funds through this receive and file item. Actual funding will be requested and appropriated during the budgeting process for the City’s overall annual Operating Budget for FY 2023-24.
• The River Ridge Golf Club operations are an Enterprise Fund that has no impact on the General Fund.
• The FY 2023-24 draft Annual Plan for the River Ridge Golf Club operations has a total projected expenses of $5,137,191and projected revenues of $6,146,450.
• The expenses contained in this Annual Plan include the annual golf management fee of $100,020 (General & Administrative account).
Additionally, the annual incentive fee (per the Golf Operations Management Agreement) is a scaled percentage of the net revenues and the estimated amount for the FY 2023-24 incentive fee is $250,000 (Non-Recurring account).
13 74
QUESTIONS?
75