City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: April 15, 2025
ITEM NO: 6.11
SUBJECT: Adopt Resolution No. 2025-20 Authorizing the City Manager to Execute a Four-Year Agricultural Lease Agreement with a One-Year Extension, with Katealynn Cadena and 5C Genetics for the Orange Avenue and First Street Properties.
RECOMMENDATION
Motion to Adopt Resolution No. 2025-20 authorizing the City Manager to execute a four-year agricultural lease agreement with a one-year extension, with Katealynn Cadena and 5C Genetics for the Orange Avenue and First Street properties.
BACKGROUND
From 2008 to present the City Council has approved lease agreements with Trinta Brothers, Co., to lease 19 acres of City-owned land for farming purposes. The land, known as Assessor’s Parcel Numbers 048-008-057; 048-008-004; and 048-008-036, more particularly described in Exhibit A to the Agreement, attached hereto, was purchased by the City for the future water treatment plant project. Trinta Brothers satisfied the terms of the lease and have no further interest in the properties.
ANALYSIS
In November 2024, City staff solicited proposals from regional agricultural companies and received no proposals. Staff later solicited interest from prior lessees and received a response for the Orange Avenue and First Street properties from Katealynn Cadena and 5C Genetics for the purposes of farming row and field crops. The proposal consisted of the following terms:
· The initial term of this Lease shall be for a period of four (4) years commencing on the Effective Date.
· Lessee shall be entitled to extend the Lease Term for a period of one (1) year. · Annual rent for the Premises shall be $50.00 per acre based on the number of workable acres. The Premises is approximately 19.04 acres. Accordingly, the annual rent payable to City shall be $950.00.
· Lessee assumes responsibility and agrees to be solely responsible for any and all water supplied to the Premises during the Lease Term. Lessee shall further be responsible for payment of all water taxes and assessments on the Premises owed or imposed during the Lease Term. Lessee shall not have the right to sell, assign, or convey any irrigation or water rights of the Premises.
· If any governmental authority levies, assesses or imposes on Lessor any tax on the Premises, Lessee shall, at Lessor’s election in its sole discretion, pay such tax directly to the governmental authority or pay the amount of such tax to Lessor. · Lessee shall, at Lessee’s sole expense, comply with all laws and requirements of any governmental authority having jurisdiction over Premises. Lessee shall immediately furnish Lessor with a copy of any notices received from any governmental agency, insurance company, or inspection bureau in connection with the Premises. · Lessee is responsible for all maintenance during the duration of the lease. · Lessor shall have the unconditional right in its sole discretion to terminate this Lease at any time, upon sixty (60) days’ written notice to Lessee.
FISCAL IMPACT
By leasing the properties, the City will generate annual revenue in the amount of $950 and revenues are deposited in the Water Fund.