FIRST AMENDMENT TO GOLDSWORTY DESALTER SITE LEASE AGREEMENT (C2021-164)
THIS FIRST AMENDMENT to the Goldsworthy Desalter Facilities ("Desalter") Site Ground Lease Agreement (C2021-164) is made and entered into as of August 13, 2024 (the effective date), by and between the CITY OF TORRANCE (the "CITY" or "Landlord"), a municipal corporation, and the WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA, a water replenishment district formed under Division 18, of the California Water Code ("WRD" or "Tenant"), which are referred to collectively as the "Parties" and individually as "Party".
RECITALS:
A. The CITY and WRD entered into an agreement for a facilities site ground lease in 1999 for the siting of a brackish groundwater desalter, known as the "Goldsworthy Desalter", a brackish well and ancillary facilities at the City Services Facility (City Yard) located at 20500 Madrona Avenue. The Desalter was subsequently completed and became operational in late 2001.
B. In late 2021, the CITY and WRD negotiated a new facilities site ground lease agreement (C2021-164) effective on January 1, 2022, that increased the lease payments to the CITY to market rates based on rental appraisal performed by Klabin Company, a firm with extensive experience in real estate appraisals and commercial/industrial lease rental rates. This new agreement was for an initial term of ten (10) years and provided for two (2) five-year extensions.
C. The 2022 facilities site ground lease agreement increased the monthly rental lease rate to a market rate of $0.45 per square foot for a monthly rental lease payment to the City of $9,509, based on a leasehold area of approximately 21,132 square feet.
D. WRD, in conjunction with the CITY, is planning a major expansion to the Goldsworthy Desalter that will approximately double its capacity to remediate and clean up a brackish groundwater plume in the local West Coast Groundwater Basin. The expansion will require an additional leasehold area of approximately 16,591 square feet in the City Yard, and the CITY wishes to lease this additional area to WRD to accommodate the expansion of the Goldsworthy Desalter. The precise size of the additional leased area will be determined once the project is complete.
E. Both the CITY and the CONTRACTOR desire to incorporate the additional lease area for the Goldsworthy Desalter expansion by an amendment into the existing Goldsworthy Desalter Site Lease Agreement at the City Yard.
F. Under a separate Operations and Maintenance Agreement with WRD, the City currently operates and provides routine maintenance to the Goldsworthy Desalter. All potable water produced from this facility is sold by WRD to the City under a seperate five-year (5) Water pricing Agreement that became effective on April 1, 2021.
G. The Desalter Project Facilities will at all times remain the property of WRD.
ATTACHMENT 1
Exhibit ‘A-1’-Revised
Legal Description of Leased Premises
Legal Description of PARCEL ‘A’: DESALTER TREATMENT SITE THAT
PORTION OF PARCEL 1 OF PARCEL MAP NO. 15380, M.B. 226 PAGES 59 and 60 IN THE
CITY OF TORRANCE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS.
CO
MMENCING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 1:
THENCE South 89 degrees 59 minutes 51 seconds East for a distance of 152.40 feet TO THE TRUE POINT OF BEGINNING;
THENCE North 00 degrees 00 minutes 09 seconds East a distance of 10.00 feet; THENCE North 21 degrees 39 minutes 26 seconds East a distance of 73.25 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 77.49 feet; THENCE North 00 degrees 00 minutes 09 seconds East a distance of 79.92 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 63.54 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 71.68 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 10.84 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 33.07 feet; THENCE North 89 degrees 59 minutes 51 seconds West a distance of 8.00 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 53.25 feet; THENCE North 89 degrees 59 minutes 51 seconds West a distance of 170.90 feet;
TO THE TRUE POINT OF BEGINNING
EXHIBIT MAP: PARCEL ‘A’
Legal Description of PARCEL ‘B’: NEW DESALTER WELL
TH
AT PORTION OF PARCEL 1 OF PARCEL MAP NO. 15380, M.B. 226 PAGES 59 AND 60 IN THE
CITY OF TORRANCE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS.
C
OMMENCING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 1:
THENCE South 89 degrees 59 minutes 51 seconds East a distance of 106.23 feet; THENCE North 00 degrees 00 minutes 09 seconds East a distance of 204.71 feet; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION;
THENCE North 00 degrees 00 minutes 09 seconds East a distance of 32.00 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 45.52 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 32.00 feet; THENCE North 89 degrees 59 minutes 51 seconds West a distance of 45.52 feet;
TO THE TRUE POINT OF BEGINNING
EXHIBIT MAP: PARCEL ‘B’
Legal Description of PARCEL ‘C’: MADRONA DESALTER WELL AND DISCHARGE TH
AT PORTION OF PARCEL 1 OF PARCEL MAP NO. 15380, M.B. 226 PAGES 59 AND 60 IN THE
CITY OF TORRANCE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA DESCRIBED AS
FOLLOWS
C
OMMENCING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 1:
THENCE South 89 degrees 59 minutes 51 seconds East a distance of 78.37 feet THENCE North 00 degrees 00 minutes 09 seconds East a distance of 290.59 feet; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION;
THENCE North 00 degrees 00 minutes 09 seconds East a distance of 26.73 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 62.56 feet; THENCE North 00 degrees 00 minutes 09 seconds East a distance of 9.46 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 27.73 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 15.39 feet; THENCE North 89 degrees 59 minutes 51 seconds West a distance of 37.97 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 20.80 feet; THENCE North 89 degrees 59 minutes 51 seconds West a distance of 52.32 feet;
TO THE TRUE POINT OF BEGINNING
EXHIBIT MAP: PARCEL “C”
Legal Description of ADDITIONAL TREATMENT SPACES
PARCEL ‘D’
TH
AT PORTION OF PARCEL 1 OF PARCEL MAP NO. 15380, M.B. 226 PAGES 59 AND 60 IN THE
CITY OF TORRANCE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA DESCRIBED AS
FOLLOWS
C
OMMENCING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 1:
T
HENCE South 89 degrees 59 minutes 51 seconds East a distance of 35.85 feet TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION;
THENCE North 00 degrees 25 minutes 10 seconds East a distance of 210.99 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 47.36 feet; THENCE South 00 degrees 25 minutes 10 seconds West a distance of 132.90 feet; THENCE South 89 degrees 59 minutes 51 seconds East a distance of 95.65 feet; THENCE South 21 degrees 39 minutes 26 seconds West a distance of 73.25 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 10.00 feet; THENCE North 89 degrees 59 minutes 51 seconds West a distance of 116.55 feet;
TO THE TRUE POINT OF BEGINNING
PARCEL ‘E’
TH
AT PORTION OF PARCEL 1 OF PARCEL MAP NO. 15380, M.B. 226 PAGES 59 AND 60 IN THE
CITY OF TORRANCE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA DESCRIBED AS
FOLLOWS
C
OMMENCING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 1:
THENCE South 89 degrees 59 minutes 51 seconds East a distance of 106.23 feet; THENCE North 00 degrees 00 minutes 09 seconds East a distance of 204.71 feet; TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION;
THENCE South 89 degrees 59 minutes 51 seconds East a distance of 45.52 feet; THENCE South 00 degrees 00 minutes 09 seconds West a distance of 7.865 feet; THENCE North 89 degrees 59 minutes 51 seconds West a distance of 45.52 feet; THENCE North 00 degrees 00 minutes 09 seconds East a distance of 7.865 feet;
TO THE TRUE POINT OF BEGINNING
EXHIBIT MAP: PARCEL “D” AND PARCEL ‘E’
Exhibit ‘B-1’ - Revised
Map of Leased Premises
EXHIBIT ‘B-1’
Exhibit ‘C-1’ - Revised
General Description of Leased Premises
EXHIBIT ‘C-1’
GENERAL DESCRIPTION OF LEASED PROPERTIES
T
he property leased to the Water Replenishment District of Southern California is located at the City of Torrance’s City Service Facility located at 20500 Madrona Avenue for the operation maintenance and construction improvements to the Goldsworthy Groundwater Desalination Treatment Plant (Desalter), on-site Wells, and ancillary facilities. The leasehold consists of there (3) separate areas as shown on the Map of Leased Premises (Exhibit ‘B’). The three- leased parcels are as follows:
Leased Area Area in Square Feet
Parcel A – Goldsworthy Desalter Treatment 17,790
Parcel B – New Desalter Well 1,456
Parcel C – Madrona Desalter Well 1,886
and Discharge Area
Total Leased Property 21,132
Exhibit ‘G’
Map of All Leased Premises
E
XHIBIT ‘G’
Exhibit ‘H’
General Description of All Leased Premises
EXHIBIT ‘H’
GENERAL DESCRIPTION OF ALL LEASED PROPERTIES
T
he property leased to the Water Replenishment District of Southern California is located at the City of Torrance’s City Service Facility located at 20500 Madrona Avenue for the operation maintenance and construction improvements to the Goldsworthy Groundwater Desalination Treatment Plant (Desalter), on-site Wells, ancillary facilities, and two (2) additional treatment spaces. The leasehold consists of five (5) separate areas as shown on the Map of All Leased Premises (Exhibit ‘G’). The five-leased parcels are as follows:
Leased Area Area in Square Feet
Parcel A – Goldsworthy Desalter Treatment 17,790
Parcel B – New Desalter Well 1,456
Parcel C – Madrona Desalter Well 1,886
and Discharge Area
Parcel D – Additional Treatment Space 16,233
Parcel E – Additional Treatment Space 358
Total Leased Property 37,723