and Landlord agree to this rent without regard to whether per square foot rent is more or less than the prescribed amounts above (i.e. a rounding error.)
4. Use.
The leased Premises shall be used to engage in the following purposes and such purposes only:
(a) To operate as a Specialized Aviation Service Organization, (SASO) per Section 3 of the airport’s Minimum Commercial Standards.
(b) Any and all operations, events or other group activities are subject to published Airport regulations, City of Watsonville Municipal Code and Airport Minimum Commercial Standards.
(c) The Tenant is permitted to sublet the premises subject to subsection (b) of this Section 4 and Section 25.
5. Prohibited Uses.
The leased Premises shall not be used for any other use not expressly allowed in Section 4 of this Lease. The Premises shall not be used for any other purposes, including but not limited to:
(a) The preparation and/or sale of food and beverages to the public; provided, however that vending machines dispensing snacks and non-alcoholic beverages such as soft drinks and coffee may be allowed; and;
(b) No sale of aviation grade fuel, jet fuel, automobile or other fuel. (c) Manufacturing of aircraft.
(d) Operation of a scheduled air cargo service.
(e) The operation of a “Unicom” radio communication system on the Common Traffic Advisory Frequency (CTAF)
(f) The operation of a maintenance or repair service on non-aviation related items, including but not limited to automobiles, motorized vehicles or boats. (g) Any other use not expressly allowed in Section 4 of this Lease.
6. Improvements to Premises.
ALTERATIONS AND ADDITIONS.
Landlord and Tenant agree that Tenant may, with Landlord written approval, make improvements to the Premises. All work shall be done by licensed contractors and comply with building codes. Any alterations or additions (including planning, architectural services, permits and fees) shall be constructed at the sole expense of Tenant.
WRITTEN SUBMISSION
Tenant shall submit a written description of proposed improvements to the Airport Director together with two sketches drawn to scale. The Airport Director will review the DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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proposal and provide written comments with a recommendation and forward the same to the City Manager for review. No alterations or additions shall be made by Tenant without the approval of Landlord. Tenant shall obtain building permits as required by the City Building Department, and shall comply with all building and other codes.
7. Conditions of Construction.
Before construction is commenced on the Premises, and before any building materials have been delivered to the Premises by Tenant or under Tenant's authority, Tenant shall comply with all the following conditions or procure Landlord's written waiver of the condition or conditions specified in the waiver:
(a) Provide Landlord with four (4) copies of plans and specifications and four (4) copies of site plan. Landlord shall not unreasonably disapprove preliminary plans and specifications.
(b) Notify Landlord of Tenant's intention to commence the work of improvement at least ten (10) days before commencement of any such work or delivery of any materials.
Landlord shall have the right to post and maintain on the Premises any notices of nonresponsibility provided for under applicable law. (c) Furnish Landlord with a true copy of Tenant's contract with the general contractor and with evidence of the general contractor's financial condition for Landlord’s approval. The contact shall give Landlord the right but not the obligation to assume Tenant's obligations and rights under that contract if Tenant should default.
(d) Tenant shall comply with all applicable codes, ordinances, or regulations, and requirements for permits and approvals, including, but not limited to or restricted to a grading permit, building permit, zoning and planning requirements, and approvals from various governmental agencies and bodies having jurisdiction.
(e) Tenant shall require from the contractor: (i) certificates of insurance evidencing coverage for "Builder's risk", (ii) evidence of Worker's Compensation Insurance covering all persons employed in connection with the work and with respect to whom death or bodily injury claims could be asserted against Landlord or the Premises, and (iii) evidence that contractor has paid or caused to be paid all premiums for the coverage described in this sub- paragraph and premiums sufficient to assure maintenance of all insurance during the anticipated course of the work.
8. New Construction Completion Date.
Once work has begun on one area, Tenant shall with reasonable diligence prosecute all construction of improvements for completion and ready for use; provided however, that the time for completion shall be extended for as long as Tenant shall be prevented from completing the construction by delays beyond Tenant's control; but failure, regardless of cause to commence construction within two (2) months following issuance of a building permit, at Landlord’s election exercised by five (5) days written notice, shall terminate this Lease.
9. Protection of Landlord against Cost or Claim.
Tenant shall pay or cause to be paid the total cost and expense of all works of improvements, as that phrase is defined in the mechanic's lien law in effect at the place of DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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construction when the work begins. No such payment shall be construed as rent. Tenant shall not suffer or permit to be enforced against the Premises or any part of it any mechanic's, materiel man’s, contractor's, or sub-contractor's lien arising from any work of improvement, however it may arise. However, Tenant may in good faith and at Tenant's own expense contest the validity of any such asserted lien, claim, or demand, provided Tenant has furnished the bond required in California Civil Code Section 3143. Tenant shall defend and indemnify Landlord against all liability and loss of any type arising out of work performed on the Premises by Tenant, together with reasonable attorney's fees and all costs and expenses incurred by Landlord in negotiating, settling, defending, or otherwise protecting against such claims.
10. Notice of Completion.
On completion of the work of improvement, Tenant shall file or cause to be filed a notice of completion. Tenant hereby appoints Landlord as Tenant's attorney in fact to file the notice of completion on Tenant's failure.
11. Ownership of Improvements During Term.
All buildings and improvements constructed on the Premises by Tenant as permitted or required by this Lease shall, during this Lease Term, be and remain the property of Tenant; provided, however, that Tenant shall have no right to waste, destroy, demolish or remove the improvements except as expressly provided in this Lease; and provided, further, that Tenant's rights and powers with respect to the improvements are subject to the terms and limitations of this Lease. Landlord and Tenant covenant for themselves, and all persons claiming under or through them, that the improvements are real property. All buildings and improvements existing on the Premises, as of the date of this Lease are Landlord’s property, free of all claims to or against them by Tenant or any third person.
12. Ownership of Improvements at Termination.
Except as specified in Section 13 of this Lease, all buildings and improvements placed or constructed on said Premises as part of said project, as well as any and all other alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or on said Premises by Tenant or any other person, shall be considered part of the real property of said Premises and on expiration or sooner termination of this Lease, or the exercised option, shall remain on said Premises and become the property of Landlord free and clear of any liens or encumbrances whatsoever and without the payment of any consideration therefore.
13. Removal of Fixtures.
At the normal expiration of the Lease Term, provided Tenant is not in default, Tenant shall have the right to remove any and all trade fixtures, provided all resultant injuries to the Premises and remaining improvements, except for ordinary wear and tear, are completely remedied and Tenant complies with Landlord’s reasonable requirements respecting the resultant appearance. Any such items not so removed within thirty (30) days of termination shall become the property of Landlord free and clear of any liens or encumbrances whatsoever and without payment of consideration therefore.
14. No Subordination.
Landlord shall not subordinate the fee title to the Premises to any security transaction to DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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enable Tenant to obtain financing for the new improvements. The Premises are now and shall remain free and clear of any liens, encumbrances or other Tenant obligations to third person.
15. Utilities.
Tenant is responsible for, and shall pay for, all gas, heat, light, power, telephone service, and all other services supplied to the Premises, including installation and connection of such services from the main source thereof, including Landlord’s meters, and shall hold harmless the Landlord therefore.
16. Possessory Interest Tax.
Pursuant to Section 107.6 of the State Revenue and Taxation Code the Landlord hereby gives notice that the property interest to Tenant under this Lease may be subject to property taxation as a possessory interest and the Tenant acknowledges that it shall be subject to payment of property tax if a possessory interest tax is levied on the property interest.
17. Compliance with Rules Regulations and Law.
In the use and occupancy of the Premises and in the conduct of all business, activities and transactions thereon, Tenant will comply with all applicable laws, ordinances, rules, regulations and orders of Landlord or any governmental subdivision, body or authority, including all federal, state and municipal laws and ordinances and all rules and regulations of the Federal Aviation Agency and the City of Watsonville rules and regulations concerning the operations of the Watsonville Municipal Airport and environs.
18. Storage of Materials, Equipment.
No materials, supplies, products, equipment or other personal property shall be stored or permitted to remain on any portion of the Leased Premises outside of Landlord approved buildings or structures without Landlord’s prior written consent. Tenant shall store personal property items, supplies, materials and combustibles inside the buildings in a safe, neat and sanitary manner. Tenant shall provide or cause to be provided adequate enclosures, screened areas and/or suitable covered metal receptacles within the Leased Premises for the short-term accumulation and storage of solid waste, such as rubbish, trash, garbage, sludge, discarded machinery or parts and any other solid industrial wastes. Such enclosures and/or screened areas shall be designed in such a way as to prevent, odors, fumes, attraction of pests, and dispersal of wastes due to wind or water runoff, and shall be serviced regularly by qualified waste removal and disposal services.
19. Environmental Considerations.
NO WARRANTY OF CURRENT CONDITION
Landlord makes no representation or warranty, express or implied, as to the physical condition of the Premises, including, but not limited to the condition of the exterior or interior of the structure, ground, soil, surface or groundwater, the geology, the presence of known and unknown faults, the presence of any Hazardous Substance or other kids of contamination or pollutants of any kind in the air, soil, groundwater or surface water or the suitability of the Premises for the construction and use of the improvements thereon.
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(a) Tenant shall not commit, or suffer to be committed, any waste upon the Premises, or any nuisance or other act or thing, which may disturb the quiet enjoyment of the use of Watsonville Airport or surrounding property. Tenant shall ensure that no untreated liquid waste from any type of operation will enter the airport storm drainage system or sanitary system. (b) Tenant shall at all times comply with all applicable laws, rules and regulations of federal, state or local governmental agencies, including, but not limited to, the City of Watsonville, Santa Cruz County, and responsible Regional Air and Water Quality Control Boards, the Environmental protection Agency, and any other agency with jurisdiction. Tenant shall further at all times comply with the Storm Water Pollution Prevention Program (SWPPP) requirements as outlined in Section 7-18.207 of the Watsonville Municipal Code Tenant shall not permit any activity which directly or indirectly produces objectionable or unlawful amounts or levels of air pollution (gases, particulate matter, odors, fumes, smoke, or dust), water pollution, noise, glare, heat emissions, electronic or radio interference with navigational and communication facilities for the operation of the Airport and for its use by aircraft, trash or refuse accumulation, vibration, prop-wash, or jet blast, or which is hazardous or dangerous by reason or risk of explosion, fire or harmful emission. Any waste oil storage tanks shall be in approved containers and in accordance with environmental and fire protection regulations. (c) Hazardous Substances. The term "Hazardous Materials" shall mean any toxic substance, hazardous substance, hazardous material, or hazardous waste, pollutant or contaminant which is or during the term of this Lease becomes regulated by any local governmental authority, the State of California, or the United States government, including, but not limited to any, material or substance which is defined as a "hazardous waste," "extremely hazardous waste" or "restricted hazardous waste" under local, State, or federal law and as determined by the Fire Department. Except in strict compliance with all government approvals, applicable laws and regulations pertaining to Hazardous Materials, and in accordance with the provisions of this Lease, Tenant shall not cause or permit the presence, use, handling, generation, emission, release, discharge, storage, or disposal of any Hazardous Materials on, under, in or about the Premises, excepting the presence of any Hazardous Materials on, under, in or about the Premises as of the date of this Lease or the migration to or seepage of Hazardous Materials from surrounding or adjacent property; and shall not cause or permit the transportation of any such materials.
20. Hazardous Materials to or from the Premises.
Tenant shall at all times notify Landlord of any Hazardous Materials present, used, generated, handled, emitted, released, discharged, stored or disposed of on or from the Premises.
Notwithstanding the foregoing, notice shall not be required for Hazardous Materials present on the Premises in reasonable quantities which are commonly used in machining facilities including, but not limited to, cleaning materials, motor oils, and hydraulic fluids provided such Hazardous Materials are used and disposed of in accordance with law, or for materials which are DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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first designated as Hazardous Materials after expiration of the term of this Lease. Tenant shall also institute operating procedures designed to handle Hazardous Materials consistent with prudent industry practice, including evidence of a licensed agent removal service. Landlord shall have the right to inspect the Premises on 24-hours prior notice for compliance with the provisions of this Section.
INDEMNIFICATION BY LANDLORD.
Landlord shall indemnify, protect, defend, and hold harmless Tenant and Tenant's successors and assigns, officers, directors, employees, agents, subtenants and assignees, from and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the Premises and surrounding properties, and from and against the preparation of any clean up, remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of hazardous material by Landlord, its agents, employees, and contractors.
INDEMNIFICATION BY TENANT.
Tenant shall indemnify, protect, defend, and hold harmless Landlord and Landlord’s successors and assigns, officers, directors, employees, agents, subtenants and assignees, from and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the Premises and surrounding properties, and from and against the preparation of any clean up, remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of hazardous material by Tenant, its agents, employees, and contractors.
INDEMNIFICATION SURVIVES LEASE.
The indemnification provisions of the foregoing shall survive the termination of this Lease.
21. Repairs and Maintenance of Premises.
LANDLORD’S OBLIGATIONS
Landlord shall maintain in good condition the exterior of the Premises, including outside walls and roof, heating, electrical systems for the facility (excluding internal lights and fixtures) except in the event that repairs or replacements are necessary thereto because of negligence or misconduct of the Tenant or if Tenant fails to notify Landlord in writing within three (3) days of the need to repair. Landlord shall conduct quarterly compliance and safety inspections.
TENANT’S OBLIGATIONS
Tenant shall maintain Premises, including, but not limited to, interior plumbing (i.e., sanitary sewer obstructions), interior walls, doors, hardware, alarms, internal lights and fixtures, etc., in as good order, condition and repair as they shall be upon the commencement of the term DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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of this Lease. Any addition to the electrical system installed by Tenant shall remain the responsibility of the Tenant. Tenant shall keep drainage ditches and gutters free of debris.
22. Freedom from Liens.
Tenant shall not create or permit to be created or to remain, and covenants to remove and discharge promptly, at its cost and expense, all liens, claims, stop notices, encumbrances and charges upon the Premises, or Tenant's leasehold interest therein which arise out of the use or occupancy of the Premises by Tenant or anyone using or occupying the Premises with the consent or sufferance of Tenant, or by reason of labor or materials furnished or claimed to have been furnished to Tenant for any construction, alteration, addition or repair of any part of the Premises. Tenant shall give Landlord fifteen (15) days’ notice prior to commencing any work on the Premises, so that Landlord shall have a reasonable time within which to post notices of nonresponsibility.
23. Holding Over.
If Tenant shall hold possession of the Premises after the term of this Lease, Tenant shall become a Tenant from month to month at the rental and upon the terms herein specified and shall continue to be such tenant until the tenancy shall be terminated by Landlord on thirty (30) days’ notice or until Tenant shall have given at least thirty (30) days’ notice of Tenant's intention to terminate the tenancy. The provisions of this Lease, so far as applicable, shall govern such tenancy, except that the monthly rent for such tenancy shall be the same as the last full month's rental rate.
24. Abandonment.
Tenant shall not vacate or abandon the Premises at any time during the term thereof; if Tenant shall abandon, vacate or surrender the Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the Premises shall be deemed to be abandoned and at the option of Landlord shall become Landlord’s property free from all claims of Tenant. In the event Tenant abandons the Premises, Landlord shall have the option to terminate this Lease by giving Tenant notice of belief of abandonment pursuant to California Civil Code Section 1951.3 or Landlord has the remedy described in California Civil Code Section 1951.4, i.e., Landlord may continue the Lease after breach and abandonment and recover rent as it becomes due, if Tenant has the right to sublet or assign, subject to reasonable limitations as provided in paragraph 25.
25. Assignment or Subletting.
Tenant shall not assign or encumber any interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant's authorized representatives) to occupy or use all or any part of the Premises, without Landlord’s written consent, and consent to one assignment or sublease shall not be construed as consent to any subsequent assignment or subleasing.
If Tenant is a corporation or partnership, any dissolution, merger, consolidation or other reorganization of Tenant or the sale or transfer of controlling percentage of the capital stock of Tenant or the sale of twenty five percent (25%) of the value of the assets of Tenant shall be deemed a voluntary assignment. The phrase "controlling percentage" means the ownership of and the right to vote stock possessing at least twenty five percent (25%) of the total combined DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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voting power of all classes of Tenant's capital stock issued outstanding and entitled to vote for the election of directors. Landlord shall not unreasonably withhold consent, but Landlord may nevertheless condition consent upon such factors as the identity, reputation, financial worth and stability and operating ability of any proposed assignee or subtenant. Unless prior written consent of Landlord shall have been obtained, any transfer, or attempted assignment or transfer, of this Lease or any interest therein, or any subletting, either by voluntary or involuntary act of Tenant or by operation of law or otherwise, shall at the option of the Landlord terminate this Lease, and any such purported assignment, transfer or subletting without such consent shall be null and void.
A. ASSIGNMENT
1. Tenant shall not have the right to assign this Lease without the written consent of Landlord, which shall not be unreasonably withheld. If Tenant desires to assign the Lease, Tenant shall comply with the following procedures:
(a) Tenant shall give Landlord at least sixty (60) days prior written notice of its desire to assign the Lease.
(b) Tenant shall simultaneously provide Landlord with the assignee's name, business organization, financial statement, payment schedules and other documentation as may be requested by Landlord.
(c) Tenant shall provide Landlord with a true copy of the proposed assignment and the proposed assignee shall, in recordable form, expressly assume all the covenants and conditions of this Lease.
(d) Tenant shall pay Landlord at the time the request to assign is submitted, a deposit of Two Thousand Five Hundred Dollars ($2,500.00) to offset Landlord’s expenses, including attorney's fee, in evaluating and documenting the assignment. Landlord shall charge said deposit at the then current hourly rate for staff time charged to the Airport. Any balance of said deposit shall be refunded to Tenant, and any excess amount charged, excluding said deposit, shall be paid by Tenant.
2. Landlord and Tenant hereby deem it reasonable for the Landlord to refuse to consent to a proposed assignment in the following circumstances:
(a) Landlord may object to any proposed assignment if, in the Landlord’s sole opinion, the proposed assignee is not a qualified assignee in terms of financial strength, business experience or reputation or the ability to operate the fixed base operation and provide the required services in a manner consistent with the purposes for which this Lease was granted. (b) Landlord may object on any other reasonable grounds.
The effective date of the assignment shall not occur until sixty (60) days after the Tenant's notice of the proposed assignment unless, within that time, Landlord gives notice of a valid objection or refusal of consent as set forth herein. If Landlord gives notice of a valid objection and withholds consent, the Lease will not be assigned.
B. SUBLETTING
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It is understood and agreed that, from time to time, Tenant may request Landlord’s permission to sublet portions of the Premises and Landlord shall not unreasonably withhold consent, provided:
(1) Each sublease made shall be subject and subordinate to the right of the Landlord and the provisions of each sublease shall conform to the provisions of this Lease as far as practicable.
(2) The sublease does not affect an assignment of the Lease as prohibited elsewhere. (3) Tenant includes the following information with its request to sublease, the name, address, a true copy of the proposed sublease, and appropriate documentation as evidence the subtenant is qualified to conduct business on the Airport and such subtenant will provide the type of development and services required under the provisions of this Lease. (4) Subtenant provides insurance coverage(s) as appropriate, in accordance with Lease provision(s), INSURANCE, the same as if the subtenant were a lessee.
If Tenant is in the default of monetary obligations to Landlord pursuant to this Lease, Tenant immediately and irrevocably assigns to Landlord, as security for Tenant's obligations under this Lease, all rent from any subletting of all or a part of the Premises as permitted by this Lease, and Landlord, as assignee and as attorney- in-fact for Tenant, or a receiver for Tenant appointed on Landlord’s application, may collect such rent and apply it toward Tenant's obligations under this Lease; except that, until the occurrence of an act of default by Tenant, Tenant shall have the right to collect such rent. It is understood and agreed by the parties hereto that the above assignment provisions do not apply to heirs by will.
C. SUB-TENANT RENT
Tenant shall not receive from any person any rent for any portion of the Premises which exceeds the rent charged by Landlord for the same or similar area of the Premises, the purpose hereof is that Tenant shall not receive any rent for any portion of the Premises which exceeds the rent Landlord charges Tenant for the Premises. Tenant shall instead turn over any such rent to Landlord as additional rent. Tenant may not receive from sub-tenants an amount greater than an amount paid to Landlord. Any greater amount if the property of the Landlord.
26. Signs, Posters, Buildings and Towers.
No advertising signs, posters or similar devices shall be erected, displayed or maintained in, on, about or above the Premises or the structures thereon without a sign permit and the written approval of the Airport Manager.
No structures erected on the Premises shall exceed the height limit fixed by any City of Watsonville zoning ordinance or regulations of the Airport or Federal Aviation Authority.
Tenant in its operations shall not unreasonably interfere with the property, interests, operations or activities of the Landlord or of other tenants of Landlord.
27. Taxes.
Tenant will pay all fees, taxes, assessments and licenses levied, imposed or required by any governmental subdivision, body or authority on or in respect to any improvements or DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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property placed on the Premises by Tenant or any person with its permission The use, occupancy or possessory rights of Tenant in the Premises (a) Any business, activity or transaction conducted thereon by Tenant; (b) City license and permits; and
(c) Commercial Operator Permit fee.
28. Waiver of Damages and Indemnification.
Landlord shall not be liable to Tenant for any injury or damage that may result to any person or property by or from any cause whatsoever, except as results from acts of the sole negligence on the part of Landlord, its agents, servants, employees or invitees. Without limiting the generality of the foregoing waiver, it is expressly extended to injury or damage caused by water leakage of any character from the roof(s), wall(s), basement or any part of the property, or caused by gas, oil, electricity or any other cause in or about the Premises or the building(s).
Tenant agrees to hold Landlord harmless from, and to defend Landlord against, any and all claims or liability for any death of for injury to any person or damage to any property, whatsoever, occurring in, on or about the Premises.
29. Security Deposit.
On execution of this Lease, Tenant shall deposit the sum of Three Thousand Nine Hundred Ninety Four Dollars and Eighty Five Cents ($3994.85) representing one (1) month’s rent in cash as security for the faithful performance of the terms, covenants and conditions of this Lease. Deposit shall be carried over from previous Lease of March 1, 2018, and Tenant is responsible of paying the difference of Twenty Five Dollars and Ninety Two Cents ($25.92).
If Tenant is in default, Landlord can use the security deposit or any portion of it, to cure the default or to compensate Landlord for all damages or loss sustained by Landlord resulting from Tenant's default if the notice requirements, if applicable, have been observed. Tenant shall immediately, on demand, pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this paragraph so as to maintain the security deposit in the sum initially deposited. Upon final accounting by Landlord, any balance of said deposit shall be refunded to Tenant.
30. Hold Harmless.
(a) Tenant shall save, protect, indemnify, and hold harmless Landlord, its elective and appointive boards, commissions, officers, agents, and employees from any and all claims, cost or liability of any kind allegedly suffered, incurred or threatened, including personal injury, death, property damage, inverse condemnation, or any combination of these, foreseeable or unforeseeable, arising directly or indirectly from or connected with any acts performed pursuant to this Lease, or any omission to perform, including, but not limited to, claims, costs or liability resulting from: (I) the conduct, negligent or otherwise, of Tenant, its subtenant(s), assignee(s), or any officer(s), agent(s) or employee(s) of one or more of them; (2) the joint conduct of the Landlord and Tenant, regardless of whether the Landlord is concurrently, active or passively negligent or not negligent at all; or (3) the sole concurrent conduct of any other person or entity.
The above promise and agreement in this section is not conditioned or dependent on whether Tenant or Landlord has prepared, supplied or approved any plan(s) or specification(s) in DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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connection with this Lease, or has insurance or other indemnification covering any of these matters, or that the alleged damage resulted partly from any negligent or willful misconduct of Landlord.
(b) Non-Liability of Landlord for Damages. This Lease is made upon the express condition that Landlord is to be free from all liability and claim for damages by reason of any injury to any person or persons including, Tenant, or property of any kind whatsoever and to whomsoever belonging, including Tenant, from any cause or causes whatsoever while in, upon, or in any way connected with the Premises during the term of this Lease or any extension hereof or any occupancy hereunder, Tenant hereby covenanting and agreeing to indemnify and save harmless Landlord from all liability, loss, cost, attorneys fees, and obligations on account of or arising out of any such injuries or losses however occurring.
31. Breach.
After service of ten (10) days written notice thereof by Landlord on Tenant any one of the following shall constitute a breach of this Lease by Tenant (a) The appointment a general assignment by Tenant for the benefit of creditors, or of a Receiver to take possession of all or substantially all of the assets of Tenant, or (b) Period of twenty (20) days, or
(c) A default in the performance of any other covenant or condition of this Lease on the part of Tenant to be performed for a period of twenty (20) days
32. Insurance. (See attachment 2 of Minimum Commercial Standards which is attached as Exhibit C hereto.)
(a) During the rental term, Tenant, at Tenant's sole expense, shall secure and maintain in force such policies of insurance as will protect it from claims for damages or injury resulting from bodily injury, including death, and for the loss or damage to property of others which may arise from operations of this Lease. Such insurance shall contain statements that:
(i) these policies shall also apply to Landlord, as an Additional Named Insured;
(ii) the insurance afforded by these policies applies severally as to each insured, except that the inclusion of more than one insured shall not operate to increase the limit of the company's liability, and the inclusion hereunder of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included;
(iii) the insurance shall be primary insurance over any other insurance carried by Landlord, which other insurance shall be considered excess only; (iv) the above policies specifically include coverage indemnifying Landlord as set forth in this Lease;
(v) the policies may not be canceled, nor the coverage reduced until thirty (30) days after a written notice of such cancellation or reduction in coverage is delivered to Landlord at the address contained herein;
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(vi) the insurance companies named herein waive any all rights of subrogation against Landlord.
(b) Such liability insurance shall be written with limits of at least Two Million Dollars ($2,000,000.00), combined single limits, and shall be written by companies acceptable to Landlord. The limit of liability insurance coverage shall be adjusted commensurate with inflation and other liability factors upon adoption of resolution of the City Council of City. Certificates of Insurance evidencing the above obligations shall be delivered to Landlord on prior commencement of operations covered by this agreement.
(c) Landlord, at Tenant's cost, shall cooperate fully with Tenant to maximize any recovery following an insured casualty. All policies of fire and extended coverage or other casualty insurance required by subparagraphs (e) and (g) below shall provide that proceeds there under shall be paid to Landlord and Tenant as their interests may appear. (d) All policies required to be maintained by Tenant pursuant to the terms of this Lease shall be issued by companies authorized to do business in the State of California with a financial rating of at least "A" in the most recent edition of Best Insurance Reports. Tenant shall pay premiums therefore and shall deliver annually to City Certificates of Insurance that such policies are in effect. If Tenant fails or refuses to procure or maintain the insurance coverage required hereunder, or fails or refuses to furnish Landlord with proof that coverage has been procured and is in full force and paid for, Landlord shall have the right, at Landlord’s election and without notice to Tenant, but without any obligation to do so, to procure and maintain such coverage. Tenant shall reimburse Landlord on demand for any premiums Landlord so pays in connection with such procurement.
(e) Fire Insurance: During the Lease Term, Tenant, at Tenant's sole expense, shall insure for fire and extended coverage risks of the leased Premises, personal property, improvements, and alterations in, on, or about the leased Premises. Such insurance shall be in an amount not less than eighty percent (80%) of insurable, full replacement cost of the leased Premises and improvements, and shall include vandalism and malicious mischief endorsements.
Said fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder. The CITY OF WATSONVILLE shall be named as additional insured in such policy or policies.
(f) Fire or Casualty:
(i) Destruction of Tenant Owned Building. In the event of extensive damage (greater than fifty percent (50%)) to or destruction of buildings or other improvements on the Leased Premises owned by Tenant as provided in Section 6 of this Lease ("Tenant Improvements"), Tenant shall determine whether to repair or replace the Tenant Improvements.
If it is determined to repair or replace the Tenant Improvements, the proceeds of any insurance policy paid on account of such damage or destruction shall be used to defer the cost of repairing or replacing the Tenant Improvements. Tenant shall complete all repairs within a reasonable time. If it is determined not to repair or replace the Tenant Improvements, Tenant may terminate this Lease upon written notice to Landlord within thirty (30) days of such damage or destruction.
If Tenant terminates this Lease pursuant hereto, after deducting any proceeds payable to Tenant's lender pursuant to the following paragraph, the remaining proceeds of any insurance policy paid DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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on account of such damage or destruction shall be distributed to Landlord and Tenant pursuant to the following formula: Landlord’s share shall be the product of the amount of the remaining proceeds multiplied by a fraction, the numerator which is the number of months since the commencement date of this Lease until the date of the casualty causing such damage or destruction, and the denominator of which is four hundred and twenty (420). Tenant's share shall be the excess of the remaining proceeds after subtracting the Landlord’s share. In the event of termination of the Lease pursuant to this Section 33 (f) (l), Tenant shall remove the Tenant Improvements and, restore the Landlord owned building to its prior condition at Tenant's sole cost and expense prior to the date of termination of the Lease.
All fire and extended coverage insurance policies insuring the Tenant Improvements may have a loss payable clause in favor of any lender of Tenant, including, but not limited to, any mortgagee of Tenant, as such lender's interest may appear. (ii) Destruction of Landlord Owned Premises. If during the term of this Lease the Landlord owned Premises, as provided in Section 11 of this Lease, shall be damaged or destroyed to the extent of fifty percent (50%) of its valuation or at a repair cost estimated by the City Building Official to exceed the sum of Twenty Five Thousand Dollars ($25,000.00) by fire, the elements, or any other cause, then this Lease shall, at Landlord's option, cease and become null and void from the date of such damage, or destruction, and Tenant shall immediately surrender the entire Premises to Landlord and shall pay rent only to the time of such surrender.
If the Landlord owned Premises shall be damaged by fire, or other cause, so as to be capable of being repaired within a reasonable time, Landlord shall have the option to repair the same and during the time that the repairs are being made, Landlord shall remit to Tenant a just and fair portion of the rent according to the nature of the damage sustained and according to the extent that Tenant is deprived of the use of the Landlord owned Premises. Should the estimated time to repair damage exceed one hundred twenty (120) days, the Tenant may, at his option, terminate, this Lease. In such event both parties shall be released from further obligations under the terms of this Lease.
(f) Workers' Compensation: Tenant, at Tenant's sole expense, must obtain and maintain workers' compensation insurance covering all its employees, and said insurance must be kept in force during the entire term of this Lease.
(h) Notice: Each party hereto shall give to the other prompt and timely notice of any claim made or suit instituted coming to its knowledge which in any way directly, contingently or otherwise, affects or might affect either, and both shall have the right to participate in the defense of the same to the extent of its own interest.
33. Litigation Expenses.
If either party shall bring an action against the other by reason of the breach of any covenant, warranty or condition hereof, or otherwise arising out of this Lease, whether for declaratory or other relief, the prevailing party in such suit shall be entitled to its costs of suit and reasonable attorney fees, which shall be payable whether or not such action is prosecuted to judgment. "Prevailing Party" within the meaning of this paragraph shall include without limitation a party who brings an action against the other after the other's breach or default, if such action is dismissed upon the other's breach or default, if such action is dismissed upon the DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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other's payment of the sums allegedly due or performance of the covenant's allegedly breached, or if the plaintiff obtains substantially the relief sought by it in the action.
34. Surrender of Premises.
Tenant agrees to surrender the Premises and any addition thereto at the termination of the tenancy herein created in the same condition as the Premises were in at the beginning of the tenancy or at the time of completion of the improvements as the case may be, reasonable use and wear thereof and damage by act of God or the elements excepted. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation thereof shall not work a merger, and shall, at the option of Landlord, terminate all or any existing subleases or sub tenancies, or may, at the option of Landlord, operate an assignment to Landlord of any or all such sublease or sub tenancies.
35. Waiver.
Any waiver, expressed or implied, by either party of any breach by the other party of any agreement, term or condition of this Lease shall not be, or be construed to be, a waiver of any subsequent breach of a like or other agreement, term of condition hereof; and the acceptance of rent hereunder shall not be, or be construed to be, a waiver of any breach of any agreement, term or condition of this Lease, except as to the payment of rent so accepted. The rights and remedies of either party under this Lease shall be cumulative and in addition to any and all other rights and remedies which either party has or may have.
36. Quiet Enjoyment.
Landlord covenants and warrants that upon Tenant's paying the rent and observing and performing all of the terms, covenants, and conditions on Tenant's part to be observed and performed hereunder, Tenant shall and may peaceably and quietly enjoy the Premises hereby demised, subject nevertheless to the terms and conditions of this Lease.
37. Notices.
All notices, consents, waivers or other communications which this Lease requires or permits either party to give to the other shall be in writing and shall be served personally or delivered by registered or certified mail, return receipt requested, made upon or addressed to the respective parties as follows:
To Landlord: To Tenant:
City Clerk
City of Watsonville
275 Main Street, Suite 400
Watsonville, CA 95076
Calibro Aviation
P.O. Box 116
Moffett Field, CA. 94035
[email protected]
or such other address as may be contained in a notice from either party to the other given pursuant to this section. Notice of registered or certified mail shall be deemed to be given fortyeight (48) hours from the time of postmarking if mailed within the United States (excluding Alaska).
DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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38. Recordation.
Neither Party, without the consent of the other, shall cause or permit the original nor any copy of this Lease to be recorded, filed or published in any public place.
39. Tenant to Assume All Unknown Expenses.
Notwithstanding the existence of a provision therefore in this Lease, Tenant shall assume, pay and be obligated for any and all costs and expenses toward the operation, protection, maintenance of the Premises, known or unknown, expressed or unexpressed, it being the intention of the parties for this to be a triple net lease to Landlord.
40. Right of Landlord to Enter for Inspection.
On a quarterly basis, Landlord shall have the right to enter upon the Premises at all reasonable times during the term of this Lease for the purpose of conducting premise inspections to ensure preventive maintenance issues be identified early. Landlord will report to Tenant, issues requiring attention and if appropriate, provide estimated cost for services to address maintenance needs.
41. Nondiscrimination
Tenant hereby covenants that Tenant in its use of the Premises and any and all structures, buildings and improvements located here on shall conduct the fixed base operation or any other activity hereafter authorized by the Landlord on the Premises on a non-exclusive and nondiscriminatory basis in all respects with regard to any person, firm or group of persons. Tenant shall not act in any manner prohibited by Part 15 of the Federal Aviation Regulations and further agrees to be nondiscriminatory also with respect to price or cost of services or goods and in every other fashion.
42. Enforcement of Nondiscrimination Clause.
Landlord shall have the right to take such action against the Tenant as the United States Government may direct or request to enforce the terms of the preceding paragraph on behalf of the United States Government or on behalf of any of its citizens or the Landlord itself.
43. Other Operations.
It is understood that the use authorized at the Watsonville Municipal Airport by this Lease is not given to Tenant exclusively but may be given to any other Tenant at the Airport at the sole discretion of the Landlord.
44. Condemnation.
If the whole or any substantial part of the Premises shall be taken by any paramount public authority under the power of eminent domain then the term of this Lease shall cease as to the part so taken from the date the possession of that part shall be taken for any public purpose, and from that day Tenant shall have the right either to cancel this Lease or to continue in the possession of the remainder of the Premises under the term herein provided, except that the square foot rental shall be reduced in proportion to the amount of the Premises taken. Damages awarded for such taking shall be apportioned between the Landlord and Tenant in a ratio relating to the number of years expired and remaining in the Lease Term between Landlord and Tenant respectively; provided, however, that Landlord shall not be entitled to any portion of the award DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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made for loss of business installation or improvements belonging to Tenant.
45. Nondiscrimination- (FAA, MBE, DB Requirements).
The Tenant, for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration for this Lease, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the Premises for a purpose for which a Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, the Tenant shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in FederallyAssisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
The Tenant for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby further covenant and agree as a covenant running with the land that: (a) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of facilities; (b) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; (c) that the Tenant shall use the with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 2 1, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
Tenant shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED, THAT the Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.
Tenant shall insert the provisions of this section in any lease agreement or contract by which Tenant grants a right of privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises.
46. Remedy for Discrimination.
In the event of breach of any of the nondiscrimination covenants identified in Paragraph 48, Landlord shall have the right to terminate this Lease and to reenter and repossess the Premises and the facilities thereon, and hold the same as if this Lease had never been made or issued. The provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights.
Non-compliance with paragraph 51 shall constitute a material breach thereof and in the event of such non-compliance Landlord shall have the right to terminate this Lease and the estate hereby created without liability therefore or at the election of the City or the United States either or both Governments shall have the right to judicially enforce paragraph 48.
DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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47. Affirmative Action.
Tenant assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no personal shall be on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR, Subpart E. Tenant assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by such subpart. Tenant assures that it will require that its covered by such subpart. Tenant assures that it will require that its covered sub organizations provide assurances to the Tenant that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations, as provided by 14 CFR Part 152, subpart 2, to the same effect.
48. Subordination to Future FAA Agreements.
This Lease shall subordinate to the provisions and requirements of any existing or future agreement between the Landlord and the United States, relative to the development, operation or maintenance of the Airport.
49. Notice to Federal Aviation Administration.
Tenant shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event of future construction of a building planned for the Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises.
50. Non-Exclusive Right.
It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act.
51. Terms.
All the provisions of this Lease shall be deemed and construed to be "covenants" as though the words imported such covenants were used in each separate paragraph hereof, except when expressed as conditions.
52. Governing Law.
This Lease shall be construed and enforced in accordance with the laws of the State of California.
53. Binding Effect.
This Lease and the covenants and agreements herein contained shall bind and inure to the benefit of the parties hereof, their heirs, successors, executors, administrators, and when permitted assigns.
54. Time is of the Essence.
Time is of the essence regarding this Lease.
55. Consent.
Whenever consent or approval of either party is required, that part shall not unreasonably DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
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withhold such consent or approval.
56. Corporate Status.
If either party is a corporation, that party shall deliver to the other party on execution of this Lease, a certified copy of a resolution of its governing body authorizing the execution of this Lease and naming the officers that are authorized to execute this Lease on behalf of the corporation.
57. Brokers.
Each party represents that it has not had dealings with any real estate broker, finder, or other party, with respect to this Lease in any manner. Each party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person, with whom the other party has or purportedly has dealt.
58. Exhibits.
All exhibits referred to are attached to this Lease and incorporated by reference.
59. Entire Agreement.
This Lease contains the entire agreement of the parties, and by signing this Lease they agree that there is no other written or oral agreement, promise, or representation between them respecting the Premises. This Lease shall bind and inure to the benefit and advantage of the assigns of Landlord, and of the heirs, executors, administrators, and when permitted hereunder the assigns of Tenant.
IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written.
“City” "Tenant"
CITY OF WATSONVILLE, Calibro Avionics, LLC. a California limited liability a municipal corporation company dba Calibro Aviation
By:_____________________________ By:______________________________ René Mendez, City Manager Name: David Guerrieri, Owner
ATTEST:
By: ____________________________
Irwin I. Ortiz, City Clerk
DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A 6/15/2023 | 5:46 PM P
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APPROVED AS TO FORM:
____________________________
Samantha Zutler, City Attorney
DocuSign Envelope ID: 13B08965-4A4B-48F0-A61A-D0223694595A
Exhibit "A" - Approximate Lease Hold footprint;
refer to lease text for detailed description
6/22/2023 11:56:38 AM
C:\Program Files\eSCRIBE\TEMP\11563565649\11563565649,,,RESOLUTION APPROVING LICENSE AND AGREEMENT WITH LITTLE LEAGUE BASEBALL, INC. FOR USE OF PINTO LAKE PARK.docx
Agenda Report
MEETING DATE: Tuesday, June 27, 2023
TO: City Council
FROM: PARKS & COMMUNITY SERVICES DIRECTOR CALUBAQUIB
THROUGH: CITY MANAGER MENDEZ
SUBJECT: RESOLUTION APPROVING LEASE AND AGREEMENT WITH
LITTLE LEAGUE BASEBALL, INCORPORATED FOR USE OF
PINTO LAKE PARK BALL FIELD
RECOMMENDED ACTION:
Adopt a resolution approving a License and agreement with Little League Baseball, Incorporated, dba Pajaro Valley Little League, for use of the Pinto Lake Park ballfield.
BACKGROUND:
For many decades, the City of Watsonville leased the ballfield at Pinto Lake Park to Watsonville American Little League (WALL). Terms of the agreement included allowing the League use of the baseball field for tryouts and practices beginning in February, weather permitting, through the fall. In addition, the Agreement allowed use of two designated areas adjacent to the baseball field for pre-game warm-ups for soft tosses only. As part of the agreement, the League agreed to maintain the facilities throughout their use at the League’s expenses and would periodically invest in the capital infrastructure of the field.
Since the COVID-19 pandemic, WALL has not been able to recruit enough players to run the league at Pinto Lake and has allowed players within their jurisdiction to instead play with Pajaro Valley Little League (PVLL), a local affiliate of Little League Baseball, Incorporated. Over this past year, WALL has become inactive as an organization and has ceded its jurisdiction to PVLL.
DISCUSSION:
PVLL has approached the City to request to assume the License and Agreement previously held by WALL. The terms of the proposed License and Agreement remain the same, with the following exceptions:
PVLL will maintain the field year-round at the expense of PVLL PVLL will demolish the existing scorekeepers booth and obtain permits for and construct a new booth at the expense of PVLL
6/22/2023 11:56:38 AM
C:\Program Files\eSCRIBE\TEMP\11563565649\11563565649,,,RESOLUTION APPROVING LICENSE AND AGREEMENT WITH LITTLE LEAGUE BASEBALL, INC. FOR USE OF PINTO LAKE PARK.docx
A five-year term in proposed
STRATEGIC PLAN:
Infrastructure & Environment – This partnership will assist with the maintenance of Pinto Lake Park
Community Engagement & Well-Being and Public Safety – PVLL will provide positive youth programs.
FINANCIAL IMPACT:
None.
ALTERNATIVE ACTION:
The Council may:
Not approve this License and Agreement
Approve this License and Agreement with changes
ATTACHMENTS AND/OR REFERENCES (If any):
None.
Reso No. (CM) 1
Meeting Date: 062723 SWZ ______ RM ______ PCS ______
RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING A FIVE-YEAR LEASE AGREEMENT
BETWEEN THE CITY OF WATSONVILLE AND LITTLE LEAGUE
BASEBALL, INCORPORATED, DBA PAJARO VALLEY LITTLE
LEAGUE, A CORPORATION, FOR CITY OWNED PROPERTY LOCATED
AT 451 GREEN VALLEY ROAD, WATSONVILLE, CALIFORNIA,
COMMENCING ON JULY 1, 2023, AND ENDING DECEMBER 31, 2028,
AND AUTHORIZING AND DIRECTING THE CITY MANGER TO EXECTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. Adopting a Resolution approving a Lease with Little League Baseball, Incorporated, dba Pájaro Valley Little League, does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2. That the five-year Lease between the City of Watsonville and Little League Baseball, Incorporated, dba Pájaro Valley Little League, a corporation, for City owned property located at 452 Green Valley Road, Watsonville, California, commencing on July 1, 2023, and ending December 31, 2028, a copy of which Lease is attached hereto and incorporated herein by this reference, is hereby approved.
3. The City Manager be and is hereby authorized and directed to execute such Lease for and on behalf of the City of Watsonville, with minor revisions that may be approved by the City Manager and the City Attorney.
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License & Agreement Between
City of Watsonville & Little League Baseball, Incorporated, d.b.a. Pajaro Valley Little League,
To Use Pinto Lake Park Baseball Field
Table of Contents
1. Recitals ......................................................................................................2
2. Agreement..................................................................................................2
2.1 Parties .............................................................................................2
2.2 License............................................................................................2
2.3 Permitted Uses................................................................................2
2.4 Term................................................................................................3
2.5 Schedules........................................................................................3
2.6 Personnel ........................................................................................5
2.7 Regular Safety & Damage Inspections............................................5
2.8 Equipment .......................................................................................6
2.9 Field Maintenance ...........................................................................6
2.10 Indemnity.........................................................................................7
2.11 Insurance.........................................................................................7
2.12 Concession Revenue ......................................................................8
2.13 Vehicle Parking ...............................................................................8
2.14 Americans With Disabilities Act Compliance ...................................9
2.15 Representative ................................................................................9
2.16 Integration Clause ...........................................................................9
2.17 Third Party Beneficiaries .................................................................9
3. Signatures..................................................................................................9
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1. Recitals
WHEREAS, City is the owner of land commonly known as Pinto Lake Park, located at 451 Green Valley Road, a portion of which has been developed and maintained as a baseball field; and
WHEREAS, Little League Baseball, Incorporated, d.b.a. Pahjaro Valley Little League, desires to use the baseball field to conduct Little League activities thereon.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
2. Agreement
2.1 Parties
The parties to this Agreement, dated this _______ day of _________ 2023 are the City of Watsonville, a municipal corporation, hereafter referred to as “City”, and the Little League Baseball, Incorporated, hereafter referred to as “League”.
2.2 License
City hereby gives to League a license to use the baseball field at Pinto Lake Park for the purpose of conducting thereon seasonal baseball activities during the term set forth herein. The City also agrees to maintain permanent fences and bleachers at designated field.
2.3 Permitted Uses and Facilities
League shall conduct baseball programs within the formal requirements of the organization of Little League within the baseball field, bleachers, and dugouts.
League shall be permitted to use two designated lawn areas adjacent to the baseball field for pre-game warm-ups for soft toss only (Exhibit B – Premises).
The warm-ups shall not interfere with the safe and peaceful enjoyment by other park patrons. The two designated warm-up areas shall be approved by the Parks and Community Services Director or designee. Sound systems to accommodate play-by-play of the games and interlude music shall be monitored jointly by City staff or designee and Little League officials and kept at a moderate level so as not to disturb those staying in the campground.
2.3.1 Concessions Building
League shall have exclusive access to the concessions building during seasonal baseball activities according to the term set forth herein. League shall maintain building in clean condition at all times and provide City staff access within 24 hours, when requested. League shall provide City with
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keys to the building and shall not change locks to the building without providing the City with new keys.
2.3.2 Other Park Facilities
Use of the baseball field shall not constitute priority to, free access or use of other park facilities such as picnic facilities, including but not limited to picnic tables, barbecues or pavilions and associated parking. Little League shall pay fees as determined by City Council Resolution for use of other park facilities.
2.4 Fees
League shall pay $0.00 per hour for use of the facilities outlined in this agreement. In lieu of fees, League shall conduct and pay for facility maintenance activities outlined in Exhibit A. League will meet with City in October of each year to review League’s financial status and discuss fees for the following year.
2.5 Term
This license shall continue in force and effect commencing May 1, 2023 and ending December 31, 2028, provided, however, that the City reserves the right to terminate the license, without cause, upon giving the League thirty (30) days written notice.
2.6 Schedules
2.6.1 A schedule of League events, including but not limited to practices, special practices, regular season games, tournaments and any special tournaments shall be filed for approval of the City’s Parks and Community Services Director.
2.6.2 Use of the field is contingent upon the approval and release for play by the Parks and Community Services Director or designee. The following schedules shall be filed timely:
a) A preliminary schedule for the regular League shall be filed no later than March 30 to reserve the field on the following dates:
a. 7:00am - 12:00pm on March 12, May 14, May 21 and June 11 b) A preliminary schedule shall also be filed for the Fall league no later than June 30th to reserve the field on the following dates:
a. Mondays thru Saturdays from November 1 – December 25, 2023, subject to field and weather conditions.
c) Preliminary Schedules shall advise City of tentative dates for use of the field for the following:
a. Sign-Up Day
b. Try-outs
c. Practice Schedule
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d. Opening & Closing Ceremonies
e. Game Schedule
f. Post-season Tournament Schedule
Filing of such schedule shall in no way obligate the City to honor League’s request for use of facilities without proper and timely payment of use fees or deposits.
d) League shall file final activity schedules detailing dates and games, including times, fifteen (15) days prior to the commencement of the regular season and the Fall season. Schedule shall not deviate greatly from the planning schedule. All schedule changes must be approved by the Director of Parks and Community Services or designee.
2.6.3 The League shall be required to draw a game schedule subject to the following restrictions:
a) League shall utilize the field for tryouts in April (weather permitting), provided, however, that League perform necessary maintenance as outlined in this agreement.
b) Not schedule Wednesday use to allow the City to perform field maintenance and utilize the park for other purposes.
c) All Sundays, except for two, are excluded from use by the League. The League may use two additional Sundays as alternates only in the case of rain. The League understands and accepts that facilities may have been previously reserved and rented to other Park users and be unavailable for League use on such Sundays. Use on Sundays must be approved by the Director of Parks and Community Services or designee.
d) League shall respect the rights and privileges of those who have scheduled use of other park facilities and the associated parking required and shall not infringe upon their use of those facilities.
2.6.4 Amendments to the season schedule affecting Sunday use of the park or rescheduling of any tournament shall be subject to the approval of the Director or designee. Requests for amendments to the schedule, as provided in this paragraph, shall be submitted in writing to the Parks and Community Services Director or designee no less than seventy-two (72) hours in advance of requested amendment. City shall seek to reasonably accommodate amendment subject to other scheduled uses of the park, maintenance schedules, and/or advance facility reservations. Director or designee shall respond to request no more than forty-eight (48) hours after receipt of written request. The Director’s or designee’s decision on schedule amendments is final. The requirements of this
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subparagraph shall not apply to request to reschedule League events to a weekday, including Wednesday or Saturday.
2.6.5 The League shall be required to draw a game schedule that complies with park operation time set forth in Resolution No. 68-91 (CM) or to its successor (7 AM to Sunset). League shall provide for a schedule with the first game to begin no later than 5:30 PM and any subsequent game shall be called to provide sufficient time for team refreshments, field clean up and exiting from park at sunset. League understands that the Park gate shall be locked at the daily posted sunset time. League may request and City shall provide a gate key so that those adults working in the concession stand have adequate time to clean and then exit the concession stand and park. Such extension of time shall be only granted to League adults who shall utilize the privilege of late stay solely for their concession stand clean up.
2.6.6 The Parks and Community Services Director shall retain the right to pre-empt the League’s use of the ball field and/or park in the event of a special City activity or maintenance requirement, upon giving at least thirty (30) days’ notice to League.
2.7 Personnel
League shall furnish all coaches, umpires, and other personnel needed to conduct and control practice and play activities. League shall provide for a responsible adult who must be present at all times of usage and whose sole responsibility is to supervise conduct of spectators and participants. League shall provide the Parks and Community Services Director the name and cell phone number of the designated person who has the authority and is on site to readily respond to spectator and participant conduct and/or other concerns or needs that may arise during League games and activities. This person shall not be directly involved in any job of running the games (such as officials, etc.). This person shall monitor the field and surrounding area to ensure the safety of the players, spectators and others who may be playing adjacent to the field area. It is further the responsibility of all League personnel to comply with and report all violations of park rules to the City.
2.8 Regular Safety & Damage Inspections
The League shall, before each game, inspect the field, bleachers, fences and other structures for damage and/or safety hazards and maintain records of said inspections. All deficiencies found with City property must be reported to the Parks and Community Services Department verbally and in writing the next regular business day. If any deficiency creates a potential hazard to health or safety of the users or the general public, the facility shall not be used until such deficiency is corrected. City, with League, shall conduct a facility inspection twice per calendar year and may request additional inspections as needed.
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2.9 Equipment
League shall furnish all consumable or expendable supplies and equipment including, but not limited to, bases, base pins, bats, gloves, and field chalk. In addition, League shall supply such tools as rakes to assist in in-field maintenance.
2.10 Field Maintenance and Conditions
The City also agrees to maintain presently existing permanent fences and bleachers at designated field.
League shall be advised that the City shall not maintain the field and agrees to maintain the field (both infield and outfield) year round.
League shall prepare, drag and line the field for play in accordance with League standards on each day of use. League shall consult with the Parks Division to cooperatively participate in the watering schedule as required; and League shall clean baseball diamond, concession stand, dugouts, bleachers and surrounding spectator area of all papers, trash, and debris following each game. No boxes, barrels, supplies or rubbish in any form shall be kept or piled or stored about the concession stand and League shall keep the park area free and clean of rubbish or trash generated from concession. City shall supply additional garbage and recycling cans around the baseball diamond areas.
Failure to police Little League facilities to the satisfaction of the City Parks and Community Services Director or designee shall result in the City billing League for time required to clean facility at the established hourly rate of the employees performing the additional services required of Park Division.
League shall furnish its own advertising signs and may sell advertising signs no larger than 4 feet by 8 feet to be placed on outfield fences, and areas within the baseball facility visible only to game spectators. League identification and non-commercial signs may be installed on perimeter of ballpark facility.
League shall install and remove outfield signs not more than fourteen (14) days prior to or after the conclusion of the season.
League shall not conduct field/facility improvements and renovations without the review and approval of the City and required permits. Any improvements and/or renovations will be at the sole expense of the League unless otherwise agreed upon in writing with the City. At the expiration or termination of the License, all fixtures and physical repairs or improvements to the building and grounds shall become City’s property free of all claims to or against them by League or any third person.
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League shall be advised that the City may close the field due to inclement weather and/or field conditions. The City will notify League of such closures as early as possible and in most cases, by 12:00pm on weekdays and the day prior on weekends.
2.11 COVID-19 Requirement and Protocols
League shall comply with all local, State and Federal guidelines and requirements regarding COVID-19 and shall furnish City with League’s written protocols and policies detailing how these requirements will be met.
2.12 Indemnity
League shall defend, indemnify and hold the City, its elected officials, employees, agents and/or representatives, while using Pinto Lake Park, free and harmless from all claims, demands, damages or actions, and any cost or expense in connection therewith that may arise out of or claimed to be related to the activities of the League.
2.13 Insurance
At the time of the execution of this Agreement, League shall, at its own expense, procure and at all times during the term of this Agreement maintain in full force and affect Comprehensive General Liability Insurance as follows:
A policy of Public Liability Insurance in which the City, its elected officials, employees, agents and/or representatives, during the term of this Agreement shall be named an additional insured, insuring, indemnifying and saving harmless and agreeing to defend the additional insured against all suits, loss, damage, liability, claims or actions of any person or persons for or on account of any injuries or damages to persons or property sustained or arising out of the activities of the League, or in consequence thereof, whether directly or indirectly, and to pay all judgments, costs, and expenses of litigation in connection therewith. The Public Liability Insurance shall provide for a limit of not less than:
a) Bodily Injury: $1,000,000 per person; $1,000,000 per occurrence b) Property Damage: $1,000,000 per occurrence
c) Combined Single Limits: $1,000,000
The policy or policies of insurance shall require that the additional insured be given thirty (30) days’ notice of cancellation or change in any policy or policies.
The policy aforementioned shall be issued by an insurance carrier satisfactory to City and shall be delivered to City at the time of the execution of this Agreement. In lieu of actual delivery of such policy, a certificate issued by the
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insurance carrier showing such policy to be in force for the period covered by the Agreement may be delivered to the City. Such policy and such certificates shall be in a form acceptable to and approved by the City Attorney.
The policy aforementioned shall be issued to protect City only against risks, which may result from the activities or conduct of League in exercising the grant of license as provided herein.
Failure of League to file such policies with the City Clerk prior to any use of field will cause City to charge League use fees as outlined in City Council Resolution No. 130-06 (CM), however, the payment of such fees does not relieve League from its obligation to obtain insurance as set forth herein.
2.14 Concession Revenue
Concession revenues shall be the exclusive property of the League.
Appropriate business licenses and permits (including county health permit) shall be obtained by the League with copies provided to the City prior to operation.
2.15 Vehicle Parking
League vehicles may park free on weekends during League’s scheduled events in the parking lot area along the entrance driveway designated for Little League. League shall be responsible for monitoring designated parking area. All parking must be in designated spaces and shall not occur along park access ways, fire lanes, or RV Park. League shall provide sufficiently trained staff to monitor and direct parking for vehicles associated with League activities as needed.
All other available parking spaces shall be first come, first served and shall be governed by City Council Resolution No. 97-16 (CM) or its successor establishing fees relating to the use of facilities at Pinto Lake Park Recreation Area, provided however, that City staff or designee may reserve twenty (20) spaces, in addition to parking reserved for pavilion, to accommodate reserved picnic facilities. Spaces shall be barricaded or coned off to prevent access by other than accommodated group. Vehicles, which cannot be accommodated in the parking area reserved for League use, will be subject to the vehicle entry fees on Saturdays, Sundays and holidays and will park per the direction of the Park staff. Parking for League families requiring handicapped parking, or League assigned volunteers, may be accommodated in the Pavilion parking area during the weekdays, provided that no other use of the pavilion has been scheduled.
League shall supply window identification placards to be placed in the vehicle’s front window for use of this parking area when pavilion parking is available. City staff shall place a sign near the entrance to this parking area to advise League that Pavilion is reserved.
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League shall make reasonable efforts, including distributing fliers and making announcements that sign-ups and try-outs to inform League participants that the Little League fees do not include free parking, and that except for the designated free parking spaces provided herein, parking will be subject to vehicle entry fees on weekends and holidays.
2.16 Americans with Disabilities Act Compliance
Watsonville Youth Baseball will not discriminate against qualified persons with disabilities and must comply with the Americans with Disabilities Act (ADA).
League shall make reasonable accommodations when requested.
2.17 Representative
The representative for League and to whom all notices shall be directed is:
Shannon Candelario
1550 San Sierra Court
Watsonville, CA 95076
Phone: (831) 539-6793 (Cell)
e-mail: [email protected]
2.18 Integration Clause
This document constitutes the full and complete agreement between the parties. There are no previous agreements or side agreements which change or add to the terms and conditions expressed herein.
2.19 Third Party Beneficiaries
This Agreement is not intended to benefit any person other than the City of Watsonville, its elected officials, employees, agents and/or representatives.
3. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first hereinabove written.
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City of Watsonville, a municipal
corporation
Pajaro Valley Little League, a
corporation
By: By:
Rene Mendez, City Manager Shannon Candelario, President ATTEST:
Irwin Ortiz, City Clerk
APPROVED AS TO FORM:
Samantha Zutler, City Attorney
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EXHIBIT “A”
SCOPE OF SERVICES
In consideration of use of the baseball field at Pinto Lake Park for the 2024 Spring and Fall little league seasons, Pajaro Valley Little League will complete the following facility maintenance activities, utilizing League volunteers and paid contractors, in coordination with City staff, prior to the start of the Spring 2024 season:
Maintenance Activities Estimated Cost
Re-sod field $2,055.00
Purchase and Install Infield Fines (7 tons) $ 950.00
Demolish existing concession building $Cost of Permit
Purchase new pre-fab concession building & Permit $20,000.00 Gopher Hole Fill & Abatement $ 3,000.00
TOTAL ESTIMATED VALUE OF IMPROVEMENTS: $26,005.00 + Permit During the dates that League utilizes the Field according to this agreement, League shall maintain in-field in playable condition.
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EXHIBIT “B”
PREMISES
Pinto Lake Baseball Field
451 Green Valley Road, Watsonville, CA 95076
Baseball Field and Pregame Warm Up Area
Parking Lot
6/21/2023 1:37:31 PM
C:\Program Files\eSCRIBE\TEMP\13372851675\13372851675,,,RESOLUTION APPROVING AN ASSIGNMENT AGREEMENT OF CKS RESTORATION LEASE TO SKYDIVE SURFCITY, INC.docx
Agenda Report
MEETING DATE: Tuesday, June 27, 2023
TO: City Council
FROM: AIRPORT DIRECTOR WILLIAMS
AIRPORT ADMINISTRATIVE ANALYST AGUADO
THROUGH: CITY MANAGER MENDEZ
SUBJECT: RESOLUTION APPROVING ASSIGNMENT AGREEMENT OF 160
AVIATION WAY, SUITE A, TO SKY DIVE SURF CITY, INC
RECOMMENDED ACTION:
Staff recommends the City Council approve assignment of the remainder of CK’s Restorations’ two (2) year aeronautical facility lease, at 160 Aviation Way, Suite A to Skydive Surf City, Inc.
.
BACKGROUND:
CK’s Restoration has been an aeronautical commercial tenant of the Watsonville Airport Center since March 1, 2018. The leased premises, located at 160 Aviation Way, Suite A, consists of one hundred and twenty-five (125) square feet of office space and one thousand three hundred sixty-three (1,363) square feet of hangar/storage space, which totals one thousand four hundred eighty-eight square feet (1,488).
DISCUSSION:
On April 19, 2023, Candice King, doing business as CK’s Restoration gave Airport management written notice requesting City approval of the assignment of the lease. As requested by the Lease assignment clause, the tenants have provided: (1) written notice, (2) $2,500 deposit and (3) proposed assignee business and financial information supporting the proposed assignment.
Skydive Surfcity, Incorporated is a long tenured commercial tenant at the Watsonville Airport Center.
The Airport’s aeronautical commercial facility space currently leases for $972.20/month.
Standard Consumer Price Index (CPI) adjustments are applied annually.
STRATEGIC PLAN:
4-Economic Development
6/21/2023 1:37:31 PM
C:\Program Files\eSCRIBE\TEMP\13372851675\13372851675,,,RESOLUTION APPROVING AN ASSIGNMENT AGREEMENT OF CKS RESTORATION LEASE TO SKYDIVE SURFCITY, INC.docx
FINANCIAL IMPACT:
The lease will continue to provide revenue of $972.20 per month to the Airport Enterprise Fund.
ALTERNATIVE ACTION:
Alternatives include not approving the lease assignment which would result in 11,666.40/year in lost rent.
ATTACHMENTS AND/OR REFERENCES (If any):
None.
Reso No. ______ 1
Meeting Date: 062723 SWZ ______ RM ______ Airport ______ RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE CONSENTING TO AN ASSIGNMENT AND
ASSUMPTION OF LEASE AGREEMENT AND CONSENT TO
ASSIGNMENT, BY AND BETWEEN CANDICE KING, A SOLE
PROPRIETOR, DBA C.K.’S RESTORATION, AND SKYDIVE SURFCITY, INC., A CALIFORNIA CORPORATION, RELATING TO THAT CERTAIN LEASE, DATED MARCH 23, 2022, BY AND BETWEEN THE CITY OF
WATSONVILLE AND CANDICE KING, A SOLE PROPRIETOR, DBA
C.K.’S RESTORATION, FOR THE USE OF 125 SQUARE FEET OF
OFFICE SPACE, 1,363 SQUARE FEET OF HANGAR/STORAGE SPACE, AND PARKING, LOCATED AT 160 AVIATION WAY, WATSONVILLE,
CALIFORNIA, AND AUTHORIZING AND DIRECTING THE CITY
MANAGER TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. This action does not meet CEQA’s definition of a “project”, because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2. That the Assignment and Assumption of Lease Agreement and Consent to Assignment by and between Candice King, a sole proprietor, dba C.K.’s Restoration, and Skydive Surfcity, Inc., a California corporation, relating to that certain Lease, dated March 23, 2022, by and between the City of Watsonville and Candice King, a sole proprietor, dba C.K.’s Restoration, for the use of 125 square feet of office space, 1,363 square feet of hangar/storage space, and parking, located at 160 Aviation Way, Watsonville, California, a copy of which Assignment and Assumption of Lease Agreement and Consent to Assignment, is attached hereto and incorporated herein by this reference, is fair and equitable and the City Council hereby consents to the same.
Reso No. ______ 2
Meeting Date: 062723
3. That the City Manager be and is hereby authorized and directed to execute the Consent of City to the Assignment and Assumption of Lease Agreement and Consent to Assignment for and on behalf of the City of Watsonville, with minor revisions that may be approved by the City Manager and the City Attorney, with minor revisions that may be approved by the City Manager and the City Attorney. *****************************
In Process
1 ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT
AND
CONSENT TO ASSIGNMENT
THIS ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT AND
CONSENT TO ASSIGNMENT (“Assignment”) is made as of the ____ day of ________, 2023, conditioned upon the consent of the CITY OF WATSONVILLE, a charter city and municipal corporation (“City”), by and between CANDICE KING, a sole proprietor doing business as “C.K.’s Restorations” (“Assignor”), and SKYDIVE SURFCITY, INC. a California corporation (“Assignee”).
RECITALS
A. The City, as City, and Assignor, as Tenant, executed a lease dated as of March 23, 2022 (“Lease”), a copy of which is attached and incorporated by reference as Exhibit A, pursuant to which City leased to Tenant and Tenant leased from City that certain property described on attached Exhibit B and incorporated by reference for a term of two (2) years, commencing on March 23, 2022 and ending on March 22, 2024, subject to earlier termination as provided in the Lease.
B. Assignor desires to assign the Lease to Assignee, and Assignee desires to accept the assignment of the Lease from the Assignor and assume obligations under the Lease.
NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are acknowledged, Assignor and Assignee agree as follows:
Section 1. Assignment. Assignor assigns and transfers to Assignee all right, title, and interest in the Lease and Assignee accepts from Assignor all right, title, and interest, subject to the terms and conditions set forth in this Assignment.
Section 2. Assumption of Lease Obligations. Assignee assumes and agrees to perform and fulfill all the terms, covenants, conditions, and obligations required to be performed and fulfilled by Assignor as tenant under the Lease, including the making of all payments due to or payable on behalf of City under the Lease as they become due and payable.
Section 3. Assignor's Covenants.
(a) Assignor covenants that the copy of the Lease attached as Exhibit A is a true and accurate copy of the Lease as currently in effect and that there exists no other agreement affecting Assignor's tenancy under the Lease.
(b) Assignor covenants that the Lease is in full effect and no default exists under the Lease, nor any acts or events which, with the passage of time or the giving of notice or both, could become defaults.
Section 4. Litigation Costs. If any litigation between Assignor and Assignee arises out of this Assignment or concerning the meaning or interpretation of this Assignment, the losing party shall pay the prevailing party's costs and expenses of this litigation, including, without limitation, reasonable attorney's fees.
Section 5. Indemnification. Assignor indemnifies Assignee from and against any loss, cost, or expense, including attorney's fees and court costs relating to the failure of Assignor to fulfill DocuSign Envelope ID: C38968C4-8560-4ECE-8F0C-53AAD1DCB819
In Process
2 Assignor's obligations under the Lease, and accruing with respect to the period on or prior to the date of this Assignment. Assignee indemnifies Assignor from and against any loss, cost, or expense, including attorney's fees and court costs relating to the failure of Assignee to fulfill Assignee's obligations under the Lease, and accruing with respect to the period subsequent to the date of this Assignment.
Section 6. Successors and Assigns. This Assignment shall be binding on and inure to the benefit of the parties to it, their heirs, executors, administrators, successors in interest, and assigns.
Section 7. Governing Law. This Assignment shall be governed by and construed in accordance with California law.
Section 8. Counterparts. This Assignment may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same document.
Section 9. Independent Counsel. All parties acknowledge that they have been urged to seek independent tax and legal counsel with respect to the meaning and effect of this Assignment.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first above written.
ASSIGNOR:
CANDICE KING, a sole proprietor,
dba C.K’S RESTORATION
By: _________________
Name: Candice King
Its: Owner
ASSIGNEE:
SKYDIVE SURFCITY, INC.
a California corporation
By: _________________
Name: Jacklyn Foust
Its: Chief Executive Officer
DocuSign Envelope ID: C38968C4-8560-4ECE-8F0C-53AAD1DCB819 6/15/2023 | 3:17 PM PDT
6/21/2023 | 1:30 PM PDT
In Process
3 CONSENT OF CITY
The undersigned on behalf of City, as landlord under the Lease, consents to this Assignment of the Lease to Assignee, provided, however, that notwithstanding this Assignment and the undersigned’s consent to this Assignment, Assignor shall remain primarily obligated as Tenant under the Lease and the undersigned does not waive or relinquish any rights under the Lease against the Assignor or Assignee.
“City”
CITY OF WATSONILLE
A municipal corporation
__________________________
René Mendez, City Manager
ATTEST:
__________________________
Irwin I. Ortiz, City Clerk
APPROVED AS TO FORM:
__________________________
Samantha Zutler, City Attorney
DocuSign Envelope ID: C38968C4-8560-4ECE-8F0C-53AAD1DCB819
In Process
4 EXHIBIT A
LEASE AGREEMENT
DocuSign Envelope ID: C38968C4-8560-4ECE-8F0C-53AAD1DCB819
Reso No. 53-22 (CM)
Meeting Date March 22, 2022 1
RESOLUTION NO. 53-22 (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING A TWO-YEAR LEASE BETWEEN THE
CITY OF WATSONVILLE AND CHARLES L. KING DBA C.K.’S
RESTORATION, FOR PROPERTY AT 160 AVIATION WAY, SUITE A,
WATSONVILLE AND AUTHORIZING AND DIRECTING THE CITY
MANAGER PRO TEMPORE TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. This action is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Additionally, even if a “project,” the action would be exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
2. That the two-year Lease Agreement between the City of Watsonville and Charles L. King dba C.K.’s Restoration, for the use of City owned property which includes 125 square feet of office space and 1,363 square feet of hangar/storage space located at 160 Aviation Way, Suite A, Watsonville, California, a copy of which Lease is attached hereto and incorporated herein by this reference, is fair and equitable and is hereby approved.
DocuSign Envelope ID: 953D3D2F-D06D-4222-AFF3-E0E1F681BE8A Exhibit "A"
Reso No. 53-22 (CM)
Meeting Date March 22, 2022 2
3. That the City Manager Pro Tempore be and is hereby authorized and directed to execute such Lease for and on behalf of the City of Watsonville in the form attached hereto, with minor revisions that may be approved by the City Manager Pro Tempore and the City Attorney, and to execute any other necessary documents to effectuate the terms of the Lease Agreement.
******************************
DocuSign Envelope ID: 953D3D2F-D06D-4222-AFF3-E0E1F681BE8A Exhibit "A"
Reso No. 53-22 (CM)
Meeting Date March 22, 2022 3
The foregoing resolution was introduced at a regular meeting of the Council of the City of Watsonville, held on the 22nd day of March , 2022, by Mayor Pro Tempore Montesino , who moved its adoption, which motion being duly seconded by Member Dutra , was upon roll call carried and the resolution adopted by the following vote:
AYES: COUNCIL MEMBERS: Dutra, Estrada, García, Hurst,
Montesino, Quiroz-Carter, Parker
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
____________________________
Ari Parker, Mayor
ATTEST:
_____________________________
City Clerk
_______________________
Date
APPROVED AS TO FORM:
_____________________________
City Attorney
************************************
I, Beatriz Vázquez Flores, City Clerk of the City of Watsonville, do hereby certify that the foregoing Resolution No. 53-22 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 22nd day of March , 2022, and that the foregoing is a full, true and correct copy of said Resolution. ________________________________
Irwin I. Ortiz, City Clerk
Date__________________________
DocuSign Envelope ID: 953D3D2F-D06D-4222-AFF3-E0E1F681BE8A 3/24/2022 | 1:45 PM PDT
3/24/2022 | 1:45 PM PDT
Exhibit "A"
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 3/28/2022 | 10:49 AM PDT
Exhibit "A"
LEASE BETWEEN CITY OF WATSONVILLE
AND CHARLES L. KING DBA C.K.’S RESTORATION
THIS REAL PROPERTY LEASE, "Lease", is made and entered into to be effective March _______, 2022 by and between the City of Watsonville, a municipal corporation, hereafter called "City" or “Landlord”, and Charles L. King doing business as C.K.’s Restoration hereafter called "Tenant".
THE PARTIES AGREE AS FOLLOWS:
1. Premises.
Landlord does hereby rent, and Tenant does hereby hire and take from Landlord that certain real property and improvements at 160 Aviation Way in Watsonville more particularly described as follows (the “Premises”),
(a) OFFICE AND HANGAR: Suite A as outlined in yellow on Exhibit “A”1. (b) OUTSIDE THE FENCE MOTOR VEHICLE PARKING: Parking spaces numbers 12 and 13, inclusive (two spaces) plus shared access to Motor Vehicle Accessible Parking Spaces A, B, C and D, as marked, on the asphalt in the parking spaces and as depicted outside the fence on Exhibit “A” southeast of 160 Aviation Way
(c) OUTSIDE THE FENCE INGRESS AND EGRESS. Tenant also has the right of ingress and egress for motor vehicles and pedestrians over the motor vehicle parking area depicted on Exhibit “A” and pedestrian access across existing sidewalks to entry and exit doors to the Office.
(d) TIE DOWN AREA. Two aircraft tie-down spaces within the black rectangle marked “CK Restoration Tie Area” on Exhibit “B” together with access for aircraft to and from said “Tie Area” over Airport Taxi Lanes and Taxi Ways to and from Airport Runways
(e) VEHICLE INGRESS AND EGRESS INSIDE THE FENCE: Tenant also has the right to access the Premises from taxi ways and taxi lanes if the driver has a Commercial Aeronautical Activities Permit; however, the Lease conveys no rights to traverse or otherwise cross the Transient Ramp.
2. Term
The term of this Lease is two (2) years, commencing March 23, 2022 and expiring on March 22, 2024, hereafter "Lease Term.”
3. Rent.
The agreed monthly rent is Nine Hundred Sixty-Seven Dollars and Twenty Cents ($967.20) per month (approximately $0.65 per square foot per month). Tenant and Landlord agree to this rent without regard to whether per square foot rent is more or less than the
1 comprising one hundred twenty-five (125) square feet of office space and one thousand three hundred sixty-three (1,363) square feet of hangar/storage space, which totals one thousand four hundred eight-eight square feet (1,488) more or less.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
prescribed amounts above (i.e., a rounding error.) Notwithstanding any other provision of this Lease, all rents shall be paid by check payable to the City of Watsonville, to the Finance Department by delivering or mailing to the Finance Department, City of Watsonville, 250 Main Street, Watsonville, California 95076. Said rent payment shall be due on the first (1st) day of each and every month during the Lease Term. Rent not received by the tenth (10th) of the month shall be assessed a ten percent (10%) late payment penalty.
Tenant shall also pay as additional rent the cost of the utilities and the Possessory Interest Tax as described in Sections 15 and 16 below
4. Use.
The leased Premises shall be used to engage in the following purposes and such purposes only:
(a) an aircraft maintenance and repair facility for aircraft, aircraft engines, aircraft airframes and avionics in accordance with the airport’s Minimum Commercial Standards
(b) Occupy up to two (2) aircraft tie down spaces, such spaces as determined by the Airport Management.
(c) Storage of aircraft, aircraft components and parts
5. Prohibited Uses.
The leased Premises shall not be used for any other use not expressly allowed in Section 4 of this Lease. The premises shall not be used for any other purposes, including but not limited to:
(a) The preparation and/or sale of food and beverages to the public; provided, however that vending machines dispensing snacks and non-alcoholic beverages such as soft drinks and coffee may be allowed; and.
(b) No sale of aviation grade fuel, jet fuel, automobile, or other fuel. (c) Manufacturing of aircraft.
(d) Operation of a scheduled air cargo service.
(e) The operation of a “Unicom” radio communication system on the Common Traffic Advisory Frequency (CTAF)
(f) The operation of a maintenance or repair service on non-aviation related items, including but not limited to automobiles, motorized vehicles, or boats. (g) Any other use not expressly allowed in Section 4 of this Lease.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
6. Improvements to Premises.
ALTERATIONS AND ADDITIONS.
Tenant shall not make any alterations or improvements to or erect any additional structures on the Premises without prior written consent of Landlord. Any alterations or additions approved by Landlord shall be constructed at the sole expense of Tenant.
WRITTEN SUBMISSION
If any improvements are proposed by the Tenant, Tenant shall submit a written description of the proposal to the Airport Manager together with two sketches drawn to scale.
The Airport Manager will review the proposal and provide written comments with a recommendation and forward the same to the City Manager for review. Any alterations or additions approved by Landlord shall be constructed at the sole expense of Tenant.
7. Conditions of Construction.
Before construction is commenced on the Premises, and before any building materials have been delivered to the Premises by Tenant or under Tenant's authority, Tenant shall comply with all the following conditions or procure Landlord's written waiver of the condition or conditions specified in the waiver:
(a) Provide Landlord with four (4) copies of plans and specifications and four (4) copies of site plan. Landlord shall not unreasonably disapprove preliminary plans and specifications.
(b) Notify Landlord of Tenant's intention to commence the work of improvement at least ten (10) days before commencement of any such work or delivery of any materials. Landlord shall have the right to post and maintain on the Premises any notices of non-responsibility provided for under applicable law. (c) Furnish Landlord with a true copy of Tenant's contract with the general contractor and with evidence of the general contractor's financial condition for Landlord’s approval. The contact shall give Landlord the right but not the obligation to assume Tenant's obligations and rights under that contract if Tenant should default.
(d) Tenant shall comply with all applicable codes, ordinances, or regulations, and requirements for permits and approvals, including, but not limited to or restricted to a grading permit, building permit, zoning and planning requirements, and approvals from various governmental agencies and bodies having jurisdiction. (e) Tenant shall require from the contractor: (i) certificates of insurance evidencing coverage for "Builder's risk", (ii) evidence of Worker's Compensation Insurance covering all persons employed in connection with the work and with respect to whom death or bodily injury claims could be asserted against Landlord or the Premises, and (iii) evidence that contractor has paid or caused to be paid all premiums for the coverage described in this sub- paragraph and premiums sufficient to assure maintenance of all insurance during the anticipated course of the work.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
8. New Construction Completion Date.
Once work has begun on one area, Tenant shall with reasonable diligence prosecute all construction of improvements for completion and ready for use; provided however, that the time for completion shall be extended for as long as Tenant shall be prevented from completing the construction by delays beyond Tenant's control; but failure, regardless of cause to commence construction within two (2) months following issuance of a building permit, at Landlord’s election exercised by five (5) days written notice, shall terminate this Lease.
9. Protection of Landlord against Cost or Claim.
Tenant shall pay or cause to be paid the total cost and expense of all works of improvements, as that phrase is defined in the mechanic's lien law in effect at the place of construction when the work begins. No such payment shall be construed as rent. Tenant shall not suffer or permit to be enforced against the Premises or any part of it any mechanic's, materiel man’s, contractor's, or sub-contractor's lien arising from any work of improvement, however it may arise. However, Tenant may in good faith and at Tenant's own expense contest the validity of any such asserted lien, claim, or demand, provided Tenant has furnished the bond required in California Civil Code Section 3143. Tenant shall defend and indemnify Landlord against all liability and loss of any type arising out of work performed on the Premises by Tenant, together with reasonable attorney's fees and all costs and expenses incurred by Landlord in negotiating, settling, defending, or otherwise protecting against such claims.
10. Notice of Completion.
On completion of the work of improvement, Tenant shall file or cause to be filed a notice of completion. Tenant hereby appoints Landlord as Tenant's attorney in fact to file the notice of completion on Tenant's failure.
11. Ownership of Improvements During Term.
All buildings and improvements constructed on the Premises by Tenant as permitted or required by this Lease shall, during this Lease Term, be and remain the property of Tenant; provided, however, that Tenant shall have no right to waste, destroy, demolish, or remove the improvements except as expressly provided in this Lease; and provided, further, that Tenant's rights and powers with respect to the improvements are subject to the terms and limitations of this Lease. Landlord and Tenant covenant for themselves, and all persons claiming under or through them, that the improvements are real property. All buildings and improvements existing on the Premises, as of the date of this Lease are Landlord’s property, free of all claims to or against them by Tenant or any third person.
12. Ownership of Improvements at Termination.
Except as specified in Section 13 of this Lease, all buildings and improvements placed or constructed on said Premises as part of said project, as well as any and all other alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
on said Premises by Tenant or any other person, shall be considered part of the real property of said Premises and on expiration or sooner termination of this Lease, or the exercised option, shall remain on said Premises and become the property of Landlord free and clear of any liens or encumbrances whatsoever and without the payment of any consideration therefore.
13. Removal of Fixtures.
At the normal expiration of the Lease Term, provided Tenant is not in default, Tenant shall have the right to remove any and all trade fixtures, provided all resultant injuries to the Premises and remaining improvements, except for ordinary wear and tear, are completely remedied and Tenant complies with Landlord’s reasonable requirements respecting the resultant appearance. Any such items not so removed within thirty (30) days of termination shall become the property of Landlord free and clear of any liens or encumbrances whatsoever and without payment of consideration therefore.
14. No Subordination.
Landlord shall not subordinate the fee title to the Premises to any security transaction to enable Tenant to obtain financing for the new improvements. The Premises are now and shall remain free and clear of any liens, encumbrances or other Tenant obligations to third person.
15. Utilities.
Tenant is responsible for telephone, telecommunications and digital data service, and all other services supplied to the Premises, including installation and connection of such services from the main source thereof, including Landlord’s meters, and shall hold harmless the Landlord therefore. Tenant is responsible for gas, heat, light, power which is additional rent. The cost of utilities is additional rent as described in Section 3 above and a failure to pay utilities is a material breach of the lease.
16. Possessory Interest Tax.
Pursuant to Section 107.6 of the State Revenue and Taxation Code the Landlord hereby gives notice that the property interest to Tenant under this Lease may be subject to property taxation as a possessory interest and the Tenant acknowledges that it shall be subject to payment of property tax if a possessory interest tax is levied on the property interest. Payment of the Possessory Interest Tax is additional rent and failure to pay the Possessory Interest Tax when due is a material breach of this Lease.
17. Compliance with Rules Regulations and Law.
In the use and occupancy of the Premises and in the conduct of all business, activities and transactions thereon, Tenant will comply with all applicable laws, ordinances, rules, regulations and orders of Landlord or any governmental subdivision, body or authority, including all federal, state and municipal laws and ordinances and all rules and regulations of the Federal Aviation DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
Agency and the City of Watsonville rules and regulations concerning the operations of the Watsonville Municipal Airport and environs.
18. Storage of Materials, Equipment.
No materials, supplies, products, equipment, or other personal property shall be stored or permitted to remain on any portion of the Leased Premises outside of Landlord approved buildings or structures without Landlord’s prior written consent. Tenant shall store personal property items, supplies, materials and combustibles inside the buildings in a safe, neat and sanitary manner. Tenant shall provide or cause to be provided adequate enclosures, screened areas and/or suitable covered metal receptacles within the Leased Premises for the short-term accumulation and storage of solid waste, such as rubbish, trash, garbage, sludge, discarded machinery or parts and any other solid industrial wastes. Such enclosures and/or screened areas shall be designed in such a way as to prevent, odors, fumes, attraction of pests, and dispersal of wastes due to wind or water runoff, and shall be serviced regularly by qualified waste removal and disposal services.
19. Environmental Considerations.
NO WARRANTY OF CURRENT CONDITION
Landlord makes no representation or warranty, express or implied, as to the physical condition of the Premises, including, but not limited to the condition of the exterior or interior of the structure, ground, soil, surface or groundwater, the geology, the presence of known and unknown faults, the presence of any Hazardous Substance or other kids of contamination or pollutants of any kind in the air, soil, groundwater or surface water or the suitability of the Premises for the construction and use of the improvements thereon. (a) Tenant shall not commit, or suffer to be committed, any waste upon the Premises, or any nuisance or other act or thing, which may disturb the quiet enjoyment of the use of Watsonville Airport or surrounding property. Tenant shall ensure that no untreated liquid waste from any type of operation will enter the airport storm drainage system or sanitary system.
(b) Tenant shall at all times comply with all applicable laws, rules, and regulations of federal, state or local governmental agencies, including, but not limited to, the City of Watsonville, Santa Cruz County, and responsible Regional Air and Water Quality Control Boards, the Environmental protection Agency, and any other agency with jurisdiction. Tenant shall further at all times comply with the Storm Water Pollution Prevention Program (SWPPP) requirements as outlined in Section 7-18.207 of the Watsonville Municipal Code Tenant shall not permit any activity which directly or indirectly produces objectionable or unlawful amounts or levels of air pollution (gases, particulate matter, odors, fumes, smoke, or dust), water pollution, noise, glare, heat emissions, electronic or radio interference with navigational and communication facilities for the operation of the Airport and for its use by aircraft, trash or refuse accumulation, vibration, prop-wash, or jet blast, or which is hazardous or dangerous by reason or risk of DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
explosion, fire or harmful emission. Any waste oil storage tanks shall be in approved containers and in accordance with environmental and fire protection regulations. (c) Hazardous Substances. The term "Hazardous Materials" shall mean any toxic substance, hazardous substance, hazardous material, or hazardous waste, pollutant or contaminant which is or during the term of this Lease becomes regulated by any local governmental authority, the State of California, or the United States government, including, but not limited to any, material or substance which is defined as a "hazardous waste," "extremely hazardous waste" or "restricted hazardous waste" under local, State, or federal law and as determined by the Fire Department. Except in strict compliance with all government approvals, applicable laws and regulations pertaining to Hazardous Materials, and in accordance with the provisions of this Lease, Tenant shall not cause or permit the presence, use, handling, generation, emission, release, discharge, storage, or disposal of any Hazardous Materials on, under, in or about the Premises, excepting the presence of any Hazardous Materials on, under, in or about the Premises as of the date of this Lease or the migration to or seepage of Hazardous Materials from surrounding or adjacent property; and shall not cause or permit the transportation of any such materials.
20. Hazardous Materials to or from the Premises.
Tenant shall at all times notify Landlord of any Hazardous Materials present, used, generated, handled, emitted, released, discharged, stored, or disposed of on or from the Premises. Notwithstanding the foregoing, notice shall not be required for Hazardous Materials present on the Premises in reasonable quantities which are commonly used in machining facilities including, but not limited to, cleaning materials, motor oils, and hydraulic fluids provided such Hazardous Materials are used and disposed of in accordance with law, or for materials which are first designated as Hazardous Materials after expiration of the term of this Lease. Tenant shall also institute operating procedures designed to handle Hazardous Materials consistent with prudent industry practice, including evidence of a licensed agent removal service. Landlord shall have the right to inspect the Premises on 24-hours prior notice for compliance with the provisions of this Section.
INDEMNIFICATION BY LANDLORD.
Landlord shall indemnify, protect, defend, and hold harmless Tenant and Tenant's successors and assigns, officers, directors, employees, agents, subtenants and assignees, from and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the Premises and surrounding properties, and from and against the preparation of any clean up, remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of hazardous material by Landlord, its agents, employees, and contractors.
INDEMNIFICATION BY TENANT.
Tenant shall indemnify, protect, defend, and hold harmless Landlord and Landlord’s successors and assigns, officers, directors, employees, agents, subtenants and assignees, from DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the Premises and surrounding properties, and from and against the preparation of any clean up, remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of hazardous material by Tenant, its agents, employees, and contractors.
INDEMNIFICATION SURVIVES LEASE.
The indemnification provisions of the foregoing shall survive the termination of this Lease.
21. Repairs and Maintenance of Premises.
LANDLORD’S OBLIGATIONS
Landlord shall maintain in good condition the exterior of the Premises, including outside walls and roof, heating, electrical systems for the facility (excluding internal lights and fixtures) except in the event that repairs, or replacements are necessary thereto because of negligence or misconduct of the Tenant or if Tenant fails to notify Landlord in writing within three (3) days of the need to repair.
TENANT’S OBLIGATIONS
Tenant shall maintain Premises, including, but not limited to, interior plumbing (i.e., sanitary sewer obstructions), interior walls, doors, hardware, alarms, internal lights, and fixtures, etc., in as good order, condition and repair as they shall be upon the commencement of the term of this Lease. Any addition to the electrical system installed by Tenant shall remain the responsibility of the Tenant. Tenant shall keep drainage swales and gutters free of debris.
22. Freedom from Liens.
Tenant shall not create or permit to be created or to remain, and covenants to remove and discharge promptly, at its cost and expense, all liens, claims, stop notices, encumbrances and charges upon the Premises, or Tenant's leasehold interest therein which arise out of the use or occupancy of the Premises by Tenant or anyone using or occupying the Premises with the consent or sufferance of Tenant, or by reason of labor or materials furnished or claimed to have been furnished to Tenant for any construction, alteration, addition or repair of any part of the Premises. Tenant shall give Landlord fifteen (15) days’ notice prior to commencing any work on the Premises, so that Landlord shall have a reasonable time within which to post notices of nonresponsibility.
23. Holding Over.
If Tenant shall hold possession of the Premises after the term of this Lease, Tenant shall become a Tenant from month to month at the rental and upon the terms herein specified and shall continue to be such tenant until the tenancy shall be terminated by Landlord on thirty (30) DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
days’ notice or until Tenant shall have given at least thirty (30) days’ notice of Tenant's intention to terminate the tenancy. The provisions of this Lease, so far as applicable, shall govern such tenancy, except that the monthly rent for such tenancy shall be the same as the last full month's rental rate.
24. Abandonment.
Tenant shall not vacate or abandon the Premises at any time during the term thereof; if Tenant shall abandon, vacate, or surrender the Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the Premises shall be deemed to be abandoned and at the option of Landlord shall become Landlord’s property free from all claims of Tenant. In the event Tenant abandons the Premises, Landlord shall have the option to terminate this Lease by giving Tenant notice of belief of abandonment pursuant to California Civil Code Section 1951.3 or Landlord has the remedy described in California Civil Code Section 1951.4, i.e., Landlord may continue the Lease after breach and abandonment and recover rent as it becomes due, if Tenant has the right to sublet or assign, subject to reasonable limitations as provided in paragraph 25.
25. Assignment or Subletting.
Tenant shall not assign or encumber any interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant's authorized representatives) to occupy or use all or any part of the Premises, without Landlord’s written consent, and consent to one assignment or sublease shall not be construed as consent to any subsequent assignment or subleasing.
If Tenant is a corporation or partnership, any dissolution, merger, consolidation or other reorganization of Tenant or the sale or transfer of controlling percentage of the capital stock of Tenant or the sale of twenty five percent (25%) of the value of the assets of Tenant shall be deemed a voluntary assignment. The phrase "controlling percentage" means the ownership of and the right to vote stock possessing at least twenty five percent (25%) of the total combined voting power of all classes of Tenant's capital stock issued outstanding and entitled to vote for the election of directors. Landlord shall not unreasonably withhold consent, but Landlord may nevertheless condition consent upon such factors as the identity, reputation, financial worth and stability and operating ability of any proposed assignee or subtenant. Unless prior written consent of Landlord shall have been obtained, any transfer, or attempted assignment or transfer, of this Lease or any interest therein, or any subletting, either by voluntary or involuntary act of Tenant or by operation of law or otherwise, shall at the option of the Landlord terminate this Lease, and any such purported assignment, transfer or subletting without such consent shall be null and void.
ASSIGNMENT
Tenant shall not have the right to assign this Lease without the written consent of Landlord, which shall not be unreasonably withheld. If Tenant desires to assign the Lease, Tenant shall comply with the following procedures:
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
(a) Tenant shall give Landlord at least sixty (60) days prior written notice of its desire to assign the Lease.
(b) Tenant shall simultaneously provide Landlord with the assignee's name, business organization, financial statement, payment schedules and other documentation as may be requested by Landlord.
(c) Tenant shall provide Landlord with a true copy of the proposed assignment and the proposed assignee shall, in recordable form, expressly assume all the covenants and conditions of this Lease.
(d) Tenant shall pay Landlord at the time the request to assign is submitted, a deposit of Two Thousand Five Hundred Dollars ($2,500.00) to offset Landlord’s expenses, including attorney's fee, in evaluating and documenting the assignment. Landlord shall charge said deposit at the then current hourly rate for staff time charged to the Airport. Any balance of said deposit shall be refunded to Tenant, and any excess amount charged, excluding said deposit, shall be paid by Tenant.
Landlord and Tenant hereby deem it reasonable for the Landlord to refuse to consent to a proposed assignment in the following circumstances:
(a) Landlord may object to any proposed assignment if, in the Landlord’s sole opinion, the proposed assignee is not a qualified assignee in terms of financial strength, business experience or reputation or the ability to operate the fixed base operation and provide the required services in a manner consistent with the purposes for which this Lease was granted.
(b) Landlord may object on any other reasonable grounds.
The effective date of the assignment shall not occur until sixty (60) days after the Tenant's notice of the proposed assignment unless, within that time, Landlord gives notice of a valid objection or refusal of consent as set forth herein. If Landlord gives notice of a valid objection and withholds consent, the Lease will not be assigned.
SUBLETTING
It is understood and agreed that, from time to time, Tenant may request Landlord’s permission to sublet portions of the Premises and Landlord shall not unreasonably withhold consent, provided:
(a) Each sublease made shall be subject and subordinate to the right of the Landlord and the provisions of each sublease shall conform to the provisions of this Lease as far as practicable.
(b) The sublease does not affect an assignment of the Lease as prohibited elsewhere. (c) Tenant includes the following information with its request to sublease, the name, address, a true copy of the proposed sublease, and appropriate documentation as evidence the subtenant is qualified to conduct business on the Airport and such subtenant will provide the type of development and services required under the provisions of this Lease.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
(d) Subtenant provides insurance coverage(s) as appropriate, in accordance with Lease provision(s), INSURANCE, the same as if the subtenant were a lessee.
If Tenant is in the default of monetary obligations to Landlord pursuant to this Lease, Tenant immediately and irrevocably assigns to Landlord, as security for Tenant's obligations under this Lease, all rent from any subletting of all or a part of the Premises as permitted by this Lease, and Landlord, as assignee and as attorney- in-fact for Tenant, or a receiver for Tenant appointed on Landlord’s application, may collect such rent and apply it toward Tenant's obligations under this Lease; except that, until the occurrence of an act of default by Tenant, Tenant shall have the right to collect such rent. It is understood and agreed by the parties hereto that the above assignment provisions do not apply to heirs by will.
SUB-TENANT RENT
Tenant shall not receive from any person any rent for any portion of the Premises which exceeds the rent charged by Landlord for the same or similar area of the Premises, the purpose hereof is that Tenant shall not receive any rent for any portion of the Premises which exceeds the rent Landlord charges Tenant for the Premises. Tenant shall instead turn over any such rent to Landlord as additional rent. Tenant may not receive from sub -tenants an amount greater than an amount paid to Landlord. Any greater amount if the property of the Landlord.
26. Signs, Posters, Buildings and Towers.
No advertising signs, posters or similar devices shall be erected, displayed, or maintained in, on, about or above the Premises or the structures thereon without a sign permit and the written approval of the Airport Manager.
No structures erected on the Premises shall exceed the height limit fixed by any City of Watsonville zoning ordinance or regulations of the Airport or Federal Aviation Authority.
Tenant in its operations shall not unreasonably interfere with the property, interests, operations, or activities of the Landlord or of other tenants of Landlord.
27. Taxes.
Tenant will pay all fees, taxes, assessments, and licenses levied, imposed or required by any governmental subdivision, body or authority on or in respect to any improvements or property placed on the Premises by Tenant or any person with its permission. The use, occupancy or possessory rights of Tenant in the Premises, Any business, activity, or transaction conducted thereon by Tenant; City license and permits; and Commercial Operator Permit fee.
28. Waiver of Damages and Indemnification.
Landlord shall not be liable to Tenant for any injury or damage that may result to any person or property by or from any cause whatsoever, except as results from acts of the sole negligence on the part of Landlord, its agents, servants, employees, or invitees. Without limiting the generality of the foregoing waiver, it is expressly extended to injury or damage caused by water leakage of any character from the roof(s), wall(s), basement or any part of the property, or caused by gas, oil, electricity or any other cause in or about the Premises or the building(s).
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
Tenant agrees to hold Landlord harmless from, and to defend Landlord against, any and all claims or liability for any death of for injury to any person or damage to any property, whatsoever, occurring in, on or about the Premises.
29. Security Deposit.
On execution of this Lease, Tenant shall deposit the sum of Nine Hundred Sixty-Seven Dollars and Twenty Cents ($972.20) representing one (1) month’s rent in cash as security for the faithful performance of the terms, covenants, and conditions of this Lease.
If Tenant is in default, Landlord can use the security deposit or any portion of it, to cure the default or to compensate Landlord for all damages or loss sustained by Landlord resulting from Tenant's default if the notice requirements, if applicable, have been observed. Tenant shall immediately, on demand, pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this paragraph so as to maintain the security deposit in the sum initially deposited. Upon final accounting by Landlord, any balance of said deposit shall be refunded to Tenant.
30. Hold Harmless.
Tenant shall save, protect, indemnify, and hold harmless Landlord, its elective and appointive boards, commissions, officers, agents, and employees from any and all claims, cost or liability of any kind allegedly suffered, incurred or threatened, including personal injury, death, property damage, inverse condemnation, or any combination of these, foreseeable or unforeseeable, arising directly or indirectly from or connected with any acts performed pursuant to this Lease, or any omission to perform, including, but not limited to, claims, costs or liability resulting from: (I) the conduct, negligent or otherwise, of Tenant, its subtenant(s), assignee(s), or any officer(s), agent(s) or employee(s) of one or more of them; (2) the joint conduct of the Landlord and Tenant, regardless of whether the Landlord is concurrently, active or passively negligent or not negligent at all; or (3) the sole concurrent conduct of any other person or entity.
The above promise and agreement in this section is not conditioned or dependent on whether Tenant or Landlord has prepared, supplied, or approved any plan(s) or specification(s) in connection with this Lease, or has insurance or other indemnification covering any of these matters, or that the alleged damage resulted partly from any negligent or willful misconduct of Landlord.
Non-Liability of Landlord for Damages. This Lease is made upon the express condition that Landlord is to be free from all liability and claim for damages by reason of any injury to any person or persons including, Tenant, or property of any kind whatsoever and to whomsoever belonging, including Tenant, from any cause or causes whatsoever while in, upon, or in any way connected with the Premises during the term of this Lease or any extension hereof or any occupancy hereunder, Tenant hereby covenanting and agreeing to indemnify and save harmless Landlord from all liability, loss, cost, attorneys fees, and obligations on account of or arising out of any such injuries or losses however occurring.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
31. Breach.
After service of ten (10) days written notice thereof by Landlord on Tenant any one of the following shall constitute a breach of this Lease by Tenant (a) The appointment a general assignment by Tenant for the benefit of creditors, or of a Receiver to take possession of all or substantially all of the assets of Tenant, or (b) Period of twenty (20) days, or
(c) A default in the performance of any other covenant or condition of this Lease on the part of Tenant to be performed for a period of twenty (20) days
32. Insurance.
(a) Tenant, at Tenant's sole expense, shall secure and maintain in force such policies of insurance as will protect it from claims for damages or injury resulting from bodily injury, including death, and for the loss or damage to property of others which may arise from operations of this Lease. Such insurance shall contain statements that:
(i) these policies shall also apply to Landlord, as an Additional Named Insured.
(ii) the insurance afforded by these policies applies severally as to each insured, except that the inclusion of more than one insured shall not operate to increase the limit of the company's liability, and the inclusion hereunder of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included.
(iii) the insurance shall be primary insurance over any other insurance carried by Landlord, which other insurance shall be considered excess only. (iv) the above policies specifically include coverage indemnifying Landlord as set forth in this Lease.
(v) the policies may not be canceled, nor the coverage reduced until thirty (30 days after a written notice of such cancellation or reduction in coverage is delivered to Landlord at the address contained herein.
(vi) the insurance companies named herein waive any all rights of subrogation against Landlord.
(b) Such liability insurance shall be written with limits of at least One Million Dollars ($1,000,000.00), combined single limits, and shall be written by companies acceptable to Landlord. The limit of liability insurance coverage shall be adjusted commensurate with inflation and other liability factors upon adoption of resolution of the City Council of City. Certificates of Insurance evidencing the DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
above obligations shall be delivered to Landlord on prior commencement of operations covered by this agreement.
(c) Landlord, at Tenant's cost, shall cooperate fully with Tenant to maximize any recovery following an insured casualty. All policies of fire and extended coverage or other casualty insurance required by subparagraphs (e) and (g) below shall provide that proceeds there under shall be paid to Landlord and Tenant as their interests may appear.
(d) All policies required to be maintained by Tenant pursuant to the terms of this Lease shall be issued by companies authorized to do business in the State of California with a financial rating of at least "A" in the most recent edition of Best Insurance Reports. Tenant shall pay premiums therefore and shall deliver annually to City Certificates of Insurance that such policies are in effect. If Tenant fails or refuses to procure or maintain the insurance coverage required hereunder, or fails or refuses to furnish Landlord with proof that coverage has been procured and is in full force and paid for, Landlord shall have the right, at Landlord’s election and without notice to Tenant, but without any obligation to do so, to procure and maintain such coverage. Tenant shall reimburse Landlord on demand for any premiums Landlord so pays in connection with such procurement. (e) Fire Insurance: During the Lease Term, Tenant, at Tenant's sole expense, shall insure for fire and extended coverage risks the Premises, personal property, improvements, and alterations in, on, or about the leased Premises. Such insurance shall be in an amount not less than eighty percent (80%) of insurable, full replacement cost of such buildings and improvements, and shall include vandalism and malicious mischief endorsements. Said fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder. The City of Watsonville shall be named as additional insured in such policy or policies.
(f) Fire or Casualty: Destruction of Tenant Owned Building. In the event of extensive damage (greater than fifty percent (50%)) to or destruction of buildings or other improvements on the Leased Premises owned by Tenant as provided in Section 6 of this Lease ("Tenant Improvements"), Tenant shall determine whether to repair or replace the Tenant Improvements. If it is determined to repair or replace the Tenant Improvements, the proceeds of any insurance policy paid on account of such damage or destruction shall be used to defer the cost of repairing or replacing the Tenant Improvements. Tenant shall complete all repairs within a reasonable time. If it is determined not to repair or replace the Tenant Improvements, Tenant may terminate this Lease upon written notice to Landlord within thirty (30) days of such damage or destruction. If Tenant terminates this Lease pursuant hereto, after deducting any proceeds payable to Tenant's lender pursuant to the following paragraph, the remaining proceeds of any insurance policy paid on account of such damage or destruction shall be distributed to Landlord and Tenant pursuant to the following formula: Landlord’s share shall be the product of the amount of the remaining proceeds multiplied by a fraction, the numerator which is the number of months DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
since the commencement date of this Lease until the date of the casualty causing such damage or destruction, and the denominator of which is four hundred and twenty (420). Tenant's share shall be the excess of the remaining proceeds after subtracting the Landlord’s share. In the event of termination of the Lease pursuant to this Section 33 (e) (l), Tenant shall remove the Tenant Improvements and, restore the Landlord owned building to its prior condition at Tenant's sole cost and expense prior to the date of termination of the Lease. (i) All fire and extended coverage insurance policies insuring the Tenant Improvements may have a loss payable clause in favor of any lender of Tenant, including, but not limited to, any mortgagee of Tenant, as such lender's interest may appear.
(ii) Destruction of Landlord Owned Premises. If during the term of this Lease the Landlord owned Premises, as provided in Section 11 of this Lease, shall be damaged or destroyed to the extent of fifty percent (50%) of its valuation or at a repair cost estimated by the City Building Official to exceed the sum of Twenty Five Thousand Dollars ($25,000.00) by fire, the elements, or any other cause, then this Lease shall, at Landlord's option, cease and become null and void from the date of such damage, or destruction, and Tenant shall immediately surrender the entire Premises to Landlord and shall pay rent only to the time of such surrender.
(iii) If the Landlord owned Premises shall be damaged by fire, or other cause, so as to be capable of being repaired within a reasonable time, Landlord shall have the option to repair the same and during the time that the repairs are being made, Landlord shall remit to Tenant a just and fair portion of the rent according to the nature of the damage sustained and according to the extent that Tenant is deprived of the use of the Landlord owned Premises. Should the estimated time to repair damage exceed one hundred twenty (120) days, the Tenant may, at his option, terminate, this Lease. In such event both parties shall be released from further obligations under the terms of this Lease.
(g) Workers' Compensation: Tenant, at Tenant's sole expense, must obtain and maintain workers' compensation insurance covering all its employees, and said insurance must be kept in force during the entire term of this Lease. (h) Notice: Each party hereto shall give to the other prompt and timely notice of any claim made or suit instituted coming to its knowledge which in any way directly, contingently, or otherwise, affects or might affect either, and both shall have the right to participate in the defense of the same to the extent of its own interest. (i) Tenant, at Tenant's sole expense, must obtain and maintain Aircraft Airframe & Engine Repair & Maintenance SASO insurance as described in Attachment 2 to Section 1.5 of the Airport’s Minimum Commercial Standards for Aeronautical Activity at Watsonville Municipal Airport, dated as of July 1, 2017 and as such Standards may be amended from time to time.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
33. Litigation Expenses.
If either party shall bring an action against the other by reason of the breach of any covenant, warranty or condition hereof, or otherwise arising out of this Lease, whether for declaratory or other relief, the prevailing party in such suit shall be entitled to its costs of suit and reasonable attorney fees, which shall be payable whether or not such action is prosecuted to judgment. "Prevailing Party" within the meaning of this paragraph shall include without limitation a party who brings an action against the other after the other's breach or default, if such action is dismissed upon the other's breach or default, if such action is dismissed upon the other's payment of the sums allegedly due or performance of the covenant's allegedly breached, or if the plaintiff obtains substantially the relief sought by it in the action.
34. Surrender of Premises.
Tenant agrees to surrender the Premises and any addition thereto at the termination of the tenancy herein created in the same condition as the Premises were in at the beginning of the tenancy or at the time of completion of the improvements as the case may be, reasonable use and wear thereof and damage by act of God or the elements excepted. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation thereof shall not work a merger, and shall, at the option of Landlord, terminate all or any existing subleases or sub tenancies, or may, at the option of Landlord, operate an assignment to Landlord of any or all such sublease or sub tenancies.
35. Waiver.
Any waiver, expressed or implied, by either party of any breach by the other party of any agreement, term or condition of this Lease shall not be, or be construed to be, a waiver of any subsequent breach of a like or other agreement, term of condition hereof; and the acceptance of rent hereunder shall not be, or be construed to be, a waiver of any breach of any agreement, term or condition of this Lease, except as to the payment of rent so accepted. The rights and remedies of either party under this Lease shall be cumulative and in addition to any and all other rights and remedies which either party has or may have.
36. Quiet Enjoyment.
Landlord covenants and warrants that upon Tenant's paying the rent and observing and performing all of the terms, covenants, and conditions on Tenant's part to be observed and performed hereunder, Tenant shall and may peaceably and quietly enjoy the Premises hereby demised, subject nevertheless to the terms and conditions of this Lease.
37. Notices.
All notices, consents, waivers, or other communications which this Lease requires or permits either party to give to the other shall be in writing and shall be served personally or delivered by registered or certified mail, return receipt requested, made upon or addressed to the respective parties as follows:
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
To Landlord: To Tenant:
City Clerk Charles L. King dba C.K.'s Restoration
City of Watsonville 160 Aviation Way, Suite A
275 Main Street, Suite 400 Watsonville, CA. 95076
Watsonville, CA 95076
or such other address as may be contained in a notice from either party to the other given pursuant to this section. Notice of registered or certified mail shall be deemed to be given forty-eight (48) hours from the time of postmarking if mailed within the United States (excluding Alaska).
38. Recordation.
Neither Party, without the consent of the other, shall cause or permit the original nor any copy of this Lease to be recorded, filed, or published in any public place.
39. Tenant to Assume All Unknown Expenses.
Notwithstanding the existence of a provision therefore in this Lease, Tenant shall assume, pay, and be obligated for any and all costs and expenses toward the operation, protection, maintenance of the Premises, known or unknown, expressed or unexpressed, it being the intention of the parties for this to be a triple net lease to Landlord.
40. Right of Landlord to Enter for Inspection.
On a quarterly basis, Landlord shall have the right to enter upon the Premises at all reasonable times during the term of this Lease for the purpose of conducting premise inspections to ensure preventive maintenance issues be identified early. Landlord will report to Tenant, issues requiring attention and if appropriate, provide estimated cost for services to address maintenance needs.
41. Nondiscrimination
Tenant hereby covenants that Tenant in its use of the Premises and any and all structures, buildings and improvements located here on shall conduct the fixed base operation or any other activity hereafter authorized by the Landlord on the Premises on a non-exclusive and nondiscriminatory basis in all respects with regard to any person, firm or group of persons. Tenant shall not act in any manner prohibited by Part 15 of the Federal Aviation Regulations and further agrees to be nondiscriminatory also with respect to price or cost of services or goods and in every other fashion.
42. Enforcement of Nondiscrimination Clause.
Landlord shall have the right to take such action against the Tenant as the United States Government may direct or request to enforce the terms of the preceding paragraph on behalf of the United States Government or on behalf of any of its citizens or the Landlord itself.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
43. Other Operations.
It is understood that the use authorized at the Watsonville Municipal Airport by this Lease is not given to Tenant exclusively but may be given to any other Tenant at the Airport at the sole discretion of the Landlord.
44. Condemnation.
If the whole or any substantial part of the Premises shall be taken by any paramount public authority under the power of eminent domain then the term of this Lease shall cease as to the part so taken from the date the possession of that part shall be taken for any public purpose, and from that day Tenant shall have the right either to cancel this Lease or to continue in the possession of the remainder of the Premises under the term herein provided, except that the square foot rental shall be reduced in proportion to the amount of the Premises taken. Damages awarded for such taking shall be apportioned between the Landlord and Tenant in a ratio relating to the number of years expired and remaining in the Lease Term between Landlord and Tenant respectively; provided, however, that Landlord shall not be entitled to any portion of the award made for loss of business installation or improvements belonging to Tenant.
45. Nondiscrimination- (FAA, MBE, DB Requirements).
The Tenant, for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration for this Lease, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the Premises for a purpose for which a Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, the Tenant shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in FederallyAssisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
The Tenant for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby further covenant and agree as a covenant running with the land that: (a) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of facilities; (b) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; (c) that the Tenant shall use the with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 2 1, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
Tenant shall furnish its accommodations and/or services on a fair, equal, and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
discriminatory prices for each unit or service; PROVIDED, THAT the Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.
Tenant shall insert the provisions of this section in any lease agreement or contract by which Tenant grants a right of privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises.
46. Remedy for Discrimination.
In the event of breach of any of the nondiscrimination covenants identified in Paragraph 48, Landlord shall have the right to terminate this Lease and to reenter and repossess the Premises and the facilities thereon and hold the same as if this Lease had never been made or issued. The provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights.
Non-compliance with paragraph 51 shall constitute a material breach thereof and in the event of such non-compliance Landlord shall have the right to terminate this Lease and the estate hereby created without liability therefore or at the election of the City or the United States either or both Governments shall have the right to judicially enforce paragraph 48.
47. Affirmative Action.
Tenant assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no personal shall be on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR, Subpart E. Tenant assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by such subpart. Tenant assures that it will require that its covered by such subpart. Tenant assures that it will require that its covered sub organizations provide assurances to the Tenant that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations, as provided by 14 CFR Part 152, subpart 2, to the same effect.
48. Subordination to Future FAA Agreements.
This Lease shall subordinate to the provisions and requirements of any existing or future agreement between the Landlord and the United States, relative to the development, operation, or maintenance of the Airport.
49. Notice to Federal Aviation Administration.
Tenant shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event of future construction of a building planned for the Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
50. Non-Exclusive Right.
It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act.
51. Required Accessibility Disclosure.
Landlord hereby advises Tenant that the Premises have not undergone an inspection by a certified access specialist, and except to the extent expressly set forth in this Lease, Landlord shall have no liability or responsibility to make any repairs or modifications to the Premises or the Project in order to comply with accessibility standards. The following disclosure is hereby made pursuant to applicable California law:
The Premises have not been inspected by a Certified Access Specialist (CASp). A CASp can inspect the premises and determine whether the premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the premises, the lessor may not prohibit the tenant from obtaining a CASp inspection of the premises for the occupancy or potential occupancy of tenant, if requested by the tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.
52. Terms.
All the provisions of this Lease shall be deemed and construed to be "covenants" as though the words imported such covenants were used in each separate paragraph hereof, except when expressed as conditions.
53. Governing Law.
This Lease shall be construed and enforced in accordance with the laws of the State of California.
54. Binding Effect.
This Lease and the covenants and agreements herein contained shall bind and inure to the benefit of the parties hereof, their heirs, successors, executors, administrators, and when permitted assigns.
55. Time is of the Essence.
Time is of the essence regarding this Lease.
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 4/14/2022 | 10:46 AM PDT
4/14/2022 | 11:05 AM PDT
Exhibit "A"
Lease | Charles King dba C. K.’s Restoration & City of Watsonville March, 2022
APPROVED AS TO FORM:
_________________________________
Samantha W. Zutler, City Attorney
K
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 4/14/2022 | 6:55 AM PDT
Exhibit "A"
30, 31, 32, 33,34,35,36,37,38,39
A123456789
10 11
12 13
B
14 15
16 17C
21 20
19 18
29 28
27 26
25 24
23 22
40 41
1st Floor
Aircraft
Tie Down
A, B, C, & D = ADA Parking
1 Through 41 = Parking
EXHIBIT “A”
D
CK Restorations
DocuSign Envelope ID: D81E68DB-1545-4B96-B14A-4113EAB5E196 Exhibit "A"
In Process
5 EXHIBIT B
LEGAL DESCRIPTION OF LEASEHOLD PROPERTY
DocuSign Envelope ID: C38968C4-8560-4ECE-8F0C-53AAD1DCB819
30, 31, 32, 33,34,35,36,37,38,39
A123456789
10 11
12 13
B
14 15
16 17C
21 20
19 18
29 28
27 26
25 24
23 22
40 41
1st Floor
Aircraft
Tie Down
A, B, C, & D = ADA Parking
1 Through 41 = Parking
EXHIBIT “B”
D
CK Restorations
6/21/2023 8:43:07 PM
C:\Program Files\eSCRIBE\TEMP\2043527908\2043527908,,,Report - Assignment of Lease Gary Air to Specialized Helicopters.docx Agenda Report
MEETING DATE: Tuesday, June 27, 2023
TO: City Council
FROM: AIRPORT DIRECTOR WILLIAMS
AIRPORT ADMINISTRATIVE ANALYST AGUADO
THROUGH: CITY MANAGER MENDEZ
SUBJECT: RESOLUTION APPROVING AN ASSIGNMENT OF THE LEASED SPACE AT 140 AVIATION WAY TO SPECIALIZED
HELICOPTERS, INC
RECOMMENDED ACTION:
Staff recommends the City Council approve assignment of the remainder of Informart, a corporation, doing business as Gary Air’s four (4) year aeronautical facility lease, at 140 Aviation Way, to Specialized Helicopters, Incorporated.
BACKGROUND:
Informart, doing business as Gary Air offers a number of general aviation commercial activities at the Watsonville Municipal Airport. Gary Air has been an aeronautical commercial tenant since May 9, 2018. The leased premises, located at 140 Aviation Way, consists of a hangar, office, storage and ramp space.
DISCUSSION:
On April 8, 2023, Informart owner David Guerrieri informed Airport management via written notice of its intention to assign the remainder of their four-year lease to Specialized Helicopters, Incorporated.
Specialized Helicopters, Inc. is a long tenured commercial tenant of the Watsonville Airport Center. The Watsonville Airport Center was a series of buildings constructed by a tenant under a now expired ground lease. This building (140 Aviation Way) and others nearby reverted to the Airport.
The aeronautical facility currently leases for $4,354.08 per month. Standard Consumer Price Index (CPI) adjustments are applied annually.
STRATEGIC PLAN:
4-Economic Development
6/21/2023 8:43:07 PM
C:\Program Files\eSCRIBE\TEMP\2043527908\2043527908,,,Report - Assignment of Lease Gary Air to Specialized Helicopters.docx FINANCIAL IMPACT:
The lease would provide revenue of $4,354.08 per month ($52,248.96) to the Airport Enterprise Fund.
ALTERNATIVE ACTION:
Alternatives include not approving the lease which would result in $52,248.96/year in lost rent.
ATTACHMENTS AND/OR REFERENCES (If any):
None.
Reso No. ______ 1
Meeting Date: 062723 SWZ ______ RM ______ Airport ______ RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE CONSENTING TO AN ASSIGNMENT AND
ASSUMPTION OF LEASE AGREEMENT AND CONSENT TO
ASSIGNMENT, BY AND BETWEEN INFORMART, A CALIFORNIA
CORPORATION, DBA GARY AIR, AND SPECIALIZED HELICOPTERS, INC., A CALIFORNIA CORPORATION, RELATING TO THAT CERTAIN LEASE, DATED MARCH 1, 2020, BY AND BETWEEN THE CITY OF
WATSONVILLE AND INFORMART, A CALIFORNIA CORPORATION,
DBA GARY AIR, FOR THE USE OF 6,727 SQUARE FEET OF
OFFICE/HANGAR/STORAGE SPACE LOCATED AT 140 AVIATION
WAY, WATSONVILLE, CALIFORNIA, AND AUTHORIZING AND
DIRECTING THE CITY MANAGER TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. This action does not meet CEQA’s definition of a “project”, because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2. That the Assignment and Assumption of Lease Agreement and Consent to Assignment by and between the Informart, a California corporation, dba Gary Air, and Specialized Helicopters, Inc., a California corporation, relating to that certain Lease, dated March 1, 2020, by and between the City of Watsonville and Informart, a California corporation, dba Gary Air, for the use of 6,727 square feet of office/hangar/storage space located at 140 Aviation Way, Watsonville, California, a copy of which Assignment and Assumption of Lease Agreement and Consent to Assignment, is attached hereto and incorporated herein by this reference, is fair and equitable and the City Council hereby consents to the same.
3. That the City Manager be and is hereby authorized and directed to execute the Consent of City to the Assignment and Assumption of Lease Agreement
Reso No. ______ 2
Meeting Date: 062723
and Consent to Assignment for and on behalf of the City of Watsonville, with minor revisions that may be approved by the City Manager and the City Attorney. ******************************
In Process
1 ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT
AND
CONSENT TO ASSIGNMENT
THIS ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT AND
CONSENT TO ASSIGNMENT (“Assignment”) is made as of the ____ day of _____________, 2023, conditioned upon the consent of the CITY OF WATSONVILLE, a charter city and municipal corporation (“City”), by and between INFORMART, a California corporation, doing business as “Gary Air” (“Assignor”), and SPECIALIZED HELICOPTERS, INC. a California corporation (“Assignee”).
RECITALS
A. The City, as City, and Assignor, as Tenant, executed a lease dated as of March 1, 2020 (“Lease”), a copy of which is attached and incorporated by reference as Exhibit A, pursuant to which City leased to Tenant and Tenant leased from City that certain property described on attached Exhibit B and incorporated by reference for a term of four (4) years, commencing on March 1, 2020 and ending on February 29, 2024, subject to earlier termination as provided in the Lease.
B. Assignor desires to assign the Lease to Assignee, and Assignee desires to accept the assignment of the Lease from the Assignor and assume obligations under the Lease.
NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are acknowledged, Assignor and Assignee agree as follows:
Section 1. Assignment. Assignor assigns and transfers to Assignee all right, title, and interest in the Lease and Assignee accepts from Assignor all right, title, and interest, subject to the terms and conditions set forth in this Assignment.
Section 2. Assumption of Lease Obligations. Assignee assumes and agrees to perform and fulfill all the terms, covenants, conditions, and obligations required to be performed and fulfilled by Assignor as tenant under the Lease, including the making of all payments due to or payable on behalf of City under the Lease as they become due and payable.
Section 3. Assignor's Covenants.
(a) Assignor covenants that the copy of the Lease attached as Exhibit A is a true and accurate copy of the Lease as currently in effect and that there exists no other agreement affecting Assignor's tenancy under the Lease.
(b) Assignor covenants that the Lease is in full effect and no default exists under the Lease, nor any acts or events which, with the passage of time or the giving of notice or both, could become defaults.
Section 4. Litigation Costs. If any litigation between Assignor and Assignee arises out of this Assignment or concerning the meaning or interpretation of this Assignment, the losing party shall pay the prevailing party's costs and expenses of this litigation, including, without limitation, reasonable attorney's fees.
Section 5. Indemnification. Assignor indemnifies Assignee from and against any loss, cost, or expense, including attorney's fees and court costs relating to the failure of Assignor to fulfill DocuSign Envelope ID: 67133D60-A7C0-4F12-B83E-3ED01004BFCC
In Process
2 Assignor's obligations under the Lease, and accruing with respect to the period on or prior to the date of this Assignment. Assignee indemnifies Assignor from and against any loss, cost, or expense, including attorney's fees and court costs relating to the failure of Assignee to fulfill Assignee's obligations under the Lease, and accruing with respect to the period subsequent to the date of this Assignment.
Section 6. Successors and Assigns. This Assignment shall be binding on and inure to the benefit of the parties to it, their heirs, executors, administrators, successors in interest, and assigns.
Section 7. Governing Law. This Assignment shall be governed by and construed in accordance with California law.
Section 8. Counterparts. This Assignment may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same document.
Section 9. Independent Counsel. All parties acknowledge that they have been urged to seek independent tax and legal counsel with respect to the meaning and effect of this Assignment.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first above written.
ASSIGNOR:
INFORMART, a California corporation,
dba GARY AIR
By: _________________
Name:David Alan Guerrieri
Its: Secretary and Chief Financial Officer
ASSIGNEE:
SPECIALIZED HELICOPTERS, INC.
a California corporation
By: _________________
Name: Christopher Gularte
Its: President
DocuSign Envelope ID: 67133D60-A7C0-4F12-B83E-3ED01004BFCC 6/18/2023 | 8:03 PM PDT
6/15/2023 | 5:40 PM PDT
In Process
3 CONSENT OF CITY
The undersigned on behalf of City, as landlord under the Lease, consents to this Assignment of the Lease to Assignee, provided, however, that notwithstanding this Assignment and the undersigned’s consent to this Assignment, Assignor shall remain primarily obligated as Tenant under the Lease and the undersigned does not waive or relinquish any rights under the Lease against the Assignor or Assignee.
“City”
CITY OF WATSONILLE
A municipal corporation
__________________________
René Mendez, City Manager
ATTEST:
__________________________
Irwin I. Ortiz, City Clerk
APPROVED AS TO FORM:
__________________________
Samantha Zutler, City Attorney
DocuSign Envelope ID: 67133D60-A7C0-4F12-B83E-3ED01004BFCC
In Process
4 EXHIBIT A
LEASE AGREEMENT
DocuSign Envelope ID: 67133D60-A7C0-4F12-B83E-3ED01004BFCC
Reso No. 17-20 (CM)
P:\COUNCIL\2020\022520\GaryAir Lease.docx
ri 2/26/2020 10:36:09 AM
1 RESOLUTION NO. 17-20 (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING A FOUR-YEAR LEASE BETWEEN THE
CITY OF WATSONVILLE AND INFORMART, A CORPORATION, DBA
GARYAIR FOR THE USE OF CITY OWNED PROPERTY WHICH
INCLUDES 6,727 SQUARE FEET OF OFFICE/HANGAR/STORAGE
SPACE LOCATED AT 140 AVIATION WAY, WATSONVILLE,
CALIFORNIA, COMMENCING ON MARCH 1, 2020, AND ENDING
FEBRUARY 29, 2024, AND AUTHORIZING AND DIRECTING THE CITY
MANAGER TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. That the four-year Lease between the City of Watsonville and Informart, a corporation, dba GaryAir for the use of City owned property which includes 6,727 square feet of office/hangar/storage space located at 140 Aviation Way, Watsonville, California, commencing March 1, 2020, and ending February 29, 2024, a copy of which Lease is attached hereto and incorporated herein by this reference, is fair and equitable and is hereby ratified and approved.
2. That the City Manager be and is hereby authorized and directed to execute such Lease for and on behalf of the City of Watsonville. ******************************
Exhibit A
The foregoing resolution was introduced at a regular meeting of the Council of the City of Watsonville, held on the 25th day of February , 2020, by Member Gonzalez , who moved its adoption, which motion being duly seconded by Mayor Pro Tempore Coffman-Gomez , was upon roll call carried and the resolution adopted by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST:
~(Jtf~-
APPROVED AS TO FORM:
~
Coffman-Gomez, Gonzalez, Hurst,
Parker, Garcia
None
Estrada, Hernandez
************************************
I, Beatriz Vazquez Flores, City Clerk of the City of Watsonville, do hereby certify that the foregoing Resolution No. 17-20 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 251h day of February , 2020, and that the foregoing is a full, ~~ of said Resolution.
Reso No. 17-20 (CM)
P:\COUNCIL\2020\022520\GaryAir Lease.docx
bvf 2/26/2020 10:36:09 AM
Be tr" Vazquez Flores, City Clerk
Date ¥/o?C)
2 Exhibit A
LEASE BETWEEN CITY OF WATSONVILLE AND INFORMART, DBA GARY AIR THIS LEASE, "Lease", is made and entered into to be effective the first day of March 2020, by and between the CITY OF WATSONVILLE, a municipal corporation, hereafter called "Landlord", and INFORMART, a corporation, dba GARY AIR hereafter called "Tenant".
THE PARTIES AGREE AS FOLLOWS:
1. PREMISES.
Landlord does hereby rent, and Tenant does hereby hire and take from Landlord that certain real property and improvements, commonly known and referred to as the Premises and depicted on Exhibit A, attached hereto and incorporated by this reference:
• A six thousand seven hundred and twenty-seven (6,727) square foot, more or less, building at 140 Aviation Way as outlined in red on Exhibit "A • Two thousand, nine hundred and fifty square feet of exclusive ramp space, contiguous to the building and as outlined in red on Exhibit "A • Two aircraft tie-down spaces identified as "Two Tie Down Spaces" on Exhibit "A"
• Five vehicle parking spaces.
• Tenant also has the right of ingress and egress to the building for vehicles solely and exclusively using public and private streets and for vehicles solely and exclusively over marked and/or designated Airport taxiways and taxilanes.
2. TERM.
INITIAL TERM.
The term of this Lease is four (4) years, commencing March 1, 2020 and expiring on February 29, 2024, hereafter "Lease Term".
3. RENTWHEREPAID.
Notwithstanding any other provision of this Lease, all rents shall be paid by check payable to the City of Watsonville, to the Finance Department by delivering or mailing to Finance Department, City of Watsonville, 250 Main Street, Watsonville, CA 95076.
INITIAL TERM.
The agreed monthly rent is $3,994.85 per month. (approximately $0.55 per square foot per month.) Tenant and Landlord agree to this aggregate rent without regard to whether the area is greater or less than as set forth herein.
Exhibit A
Premises Area/number $/SF/Month Product
Building ±6,727 $.55 $3,699.00
Ramp 2,950 $.10 $295
Tie Downs 2 No additional charge
Parking spaces 5 No additional charge
Sum $3,994,85
During the initial term, the rent shall be adjusted annually starting July 1, 2021 and each July 1st thereafter using the rate of April to April change in the Consumer Price fudex (CPI) for All Urban Consumers San Francisco-Oakland-San Jose, California. fu no event will the annual rental increase be more than five percent ( 5%) due to increases in the CPl.
If on any rental adjustment date there shall not exist a CPI in the same format as recited herein, the parties shall substitute the Consumer Price fudex for all Urban Consumers provided such index has been so revised or changed in such a way as to affect the direct comparability of such revised or changed index published by the Bureau of Labor Statistics or similar or successor governmental agency as may then be in existence and most nearly equivalent thereto (i.e.: the Wholesale Price fudex) (CPI). Ifthe parties are unable to agree on a successor index if the aforesaid index is no longer reporting, then the parties shall refer the choice of the successor index to arbitration in accordance with rules of the American Arbitration Association.
Rent is due and shall be paid in advance on the 1st day of every month during the term of this Lease, commencing January 2013. Rent not received by the fifteenth (15th) of the month shall be assessed a ten percent (10%) late payment penalty.
UTILITIES AS ADDITIONAL RENT.
Tenant shall pay for all gas, heat, light, power, telephone service, potable water, garbage disposal, telecommunication services, cable, storm and sanitary sewer services, and all other services supplied to the Premises, including installation and connection of such services from the main source thereof, including Landlord meters.
POSSESSORY INTEREST TAX.
Pursuant to Section 107.6 of the State Revenue and Taxation Code the Landlord hereby gives notice that the property interest to Tenant under this Lease may be subject to property taxation as a possessory interest and the Tenant acknowledges that it shall be subject to payment of property tax if a possessory interest tax is levied on the property interest.
Exhibit A
4. USE.
PERMITTED USES.
The leased Premises shall be used to engage in the following purposes and such purposes only:
(a) To engage in Specialized Aviation Service Organization, (SASO) per Section 3 of the airport's Minimum Commercial Standards. (b) Any and all operations, events or other group activities are subject to published Airport regulations, City of Watsonville Municipal Code and Airport Minimum Commercial Standards.
PROHIBITED USES.
The leased Premises shall not be used for any other use not expressly allowed in Section 4 of this Lease. The premises shall not be used for any other purposes, including but not limited to:
(a) The preparation and/or sale of food and beverages to the public; provided, however that vending machines dispensing snacks and non-alcoholic beverages such as soft drinks and coffee may be allowed; and; (b) No sale of aviation grade fuel, jet fuel, automobile or other fuel. (c) Manufacturing of aircraft.
(d) Operation of a scheduled air cargo service.
(e) The operation of a "Unicorn" radio communication system on the Common Traffic Advisory Frequency (CTAF)
(f) The operation of a maintenance or repair service on non-aviation related items, including but not limited to automobiles, motorized vehicles or boats. (g) Any other use not expressly allowed in Section 4 of this Lease.
5. IMPROVEMENTS
ALTERATIONS AND ADDITIONS.
Except as otherwise provided by this Lease, Tenant shall not make any t alterations or improvements to or erect any additional structures on or within the Premises without prior written consent of Landlord. Any alterations or additions approved by Landlord shall be constructed at the sole expense of Tenant.
PRIOR SUBMISSIONS.
If any improvements are proposed by the Tenant, Tenant shall submit a written description of the proposal to the Airport Manager together with two sketches drawn to scale. The Airport Manager will review the proposal and provide written comments with a recommendation and forward the same to the City Manager for review.
Exhibit A
CONDITIONS OF CONSTRUCTION.
Before construction is commenced on the Premises, and before any building materials have been delivered to the Premises by Tenant or under Tenant's authority, Tenant shall satisfy to Landlord's reasonable satisfaction all the following conditions or obtain Landlord's written waiver of the condition or conditions:
• Provide Landlord with four copies of plans and specifications and four (4) copies of site plan. Landlord shall not unreasonably disapprove preliminary plans and specifications.
• Notify Landlord of Tenant's intention to commence the work of improvement at least ten (1 0) days before commencement of any such work or delivery of any materials. Landlord shall have the right to post and maintain on the Premises any notices of non-responsibility provided for under applicable law. • Furnish Landlord with a true copy of Tenant's contract with the general contractor and with evidence of the general contractor's financial condition for Landlord's approval. The contact shall give Landlord the right but not the obligation to assume Tenant's obligations and rights under that contract if Tenant should default.
• Tenant shall comply with all applicable codes, ordinances, or regulations, Minimum Standards (as such maybe established by the Watsonville City council, from time to time), and requirements for permits and approvals, including, but not limited to or restricted to a grading permit, building permit, zoning and planning requirements, and approvals from various governmental agencies and bodies having jurisdiction.
• Tenant shall require from the contractor: (i) an endorsement or other evidence of coverage, as reasonably determined by Landlord, for "Builder's risk", (ii) evidence of Worker's Compensation Insurance covering all persons employed in connection with the work and with respect to whom death or bodily injury claims could be asserted against Landlord or the Premises, and (iii) evidence that contractor has paid or caused to be paid all premiums for the coverage described in this sub- paragraph and premiums sufficient to assure maintenance of all insurance during the anticipated course of the work.
NEW CONSTRUCTION COMPLETION DATE.
Once work has begun on one area, Tenant shall with reasonable diligence prosecute all construction of improvements for completion and ready for use; provided however, that the time for completion shall be extended for as long as Exhibit A
Tenant shall be prevented from completing the construction by delays beyond Tenant's control; but failure, regardless of cause to commence construction within two (2) months following issuance of a building permit, at Landlord's election exercised by ten (1 0) days written notice, shall terminate this Lease.
PROTECTION OF LANDLORD AGAINST COST OR CLAIM.
Tenant shall pay or cause to be paid the total cost and expense of all works of improvements, as that phrase is defined in the mechanic's lien law in effect at the place of construction when the work begins. No such payment shall be construed as rent. Tenant shall not suffer or permit to be enforced against the Premises or any part of it any mechanic's, designer's, materiel man's, contractor's, or subcontractor's lien arising from any work of improvement, however it may arise.
However, Tenant may in good faith and at Tenant's own expense contest the validity of any such asserted lien, claim, or demand,·provided Tenant has furnished the bond required in California Civil Code Section 3 143. Tenant shall defend and indemnify Landlord against all liability and loss of any type arising out of work performed on the Premises by Tenant, together with reasonable attorney's fees and all costs and expenses incurred by Landlord in negotiating, settling, defending, or otherwise protecting against such claims.
NOTICE OF COMPLETION.
On completion of the work of improvement, Tenant shall record or cause to be recorded a notice of completion. Tenant hereby appoints Landlord as Tenant's attorney in fact to record the notice of completion on Tenant's failure.
6. OWNERSHIP OF IMPROVEMENTS DURING TERM.
All buildings and improvements constructed on the Premises by Tenant as permitted or required by this Lease shall, during this Lease Term, be and remain the property of Tenant; provided, however, that Tenant shall have no right to waste, destroy, demolish or remove the improvements except as expressly provided in this Lease; and provided, further, that Tenant's rights and powers with respect to the improvements are subject to the terms and limitations of this Lease. Landlord and Tenant covenant for themselves, and all persons claiming under or through them, that the improvements are real property. All buildings and improvements existing on the Premises, as of the date of this Lease are Landlord's property, free of all claims to or against them by Tenant or any third person.
7. OWNERSHIP OF IMPROVEMENTS AT EXPIRATION.
Except as specified in the next section regarding Removal of Fixtures" of this Lease, all buildings and improvements placed or constructed on said Premises as part of said project, as well as any and all other alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in Exhibit A
or on said Premises by Tenant or any other person, shall be considered part of the real property of said Premises and on expiration or sooner termination of this Lease, or the exercised option, shall remain on said Premises and become the property of Landlord free and clear of any liens or encumbrances whatsoever and without the payment of any consideration therefore.
8. REMOVALOFFIXTURES.
At the normal expiration of the Lease Term, provided Tenant is not in default, Tenant shall have the right to remove any and all trade fixtures, provided all resultant damages to the Premises and remaining improvements, except for ordinary wear and tear, are completely remedied and Tenant complies with Landlord's reasonable requirements respecting the resultant appearance. Any such items not so removed within thirty (30) days of expiration shall become the property of Landlord free and clear of any liens or encumbrances whatsoever and without payment of consideration therefore.
9. NO SUBORDINATION.
Landlord shall not subordinate the fee title to the Premises to any security transaction to enable Tenant to obtain financing for the new improvements. The Premises are now and shall remain free and clear of any liens, encumbrances or other Tenant obligations to third person.
10. COMPLIANCE WITH RULES, REGULATIONS AND LAWS.
In the use and occupancy of the Premises and in the conduct of all business, activities and transactions thereon, Tenant will comply with all applicable laws, ordinances, rules, regulations and orders of the Landlord or any governmental subdivision, body or authority, including all federal, state and municipal laws and ordinances and all rules and regulations of the Federal Aviation Administration and the City of Watsonville Airport rules and regulations and Minimum Standards (as such may be established by the Watsonville City Council, from time to time), concerning the operations of the Watsonville Municipal Airport and environs.
11. STORAGE OF MATERIALS, EQUIPMENT.
No materials, supplies, products, equipment or other personal property shall be stored or permitted to remain on any portion of the Premises outside of Landlord approved buildings or structures without Landlord's prior written consent. Tenant shall store personal property items, supplies, materials and combustibles inside the buildings in a safe, neat and sanitary manner.
Tenant shall provide or cause to be provided adequate enclosures, screened areas and/or suitable covered metal receptacles within the Premises for the shortterm accumulation and storage of solid waste, such as rubbish, trash, garbage, sludge, discarded machinery or parts and any other solid industrial wastes. Such Exhibit A
enclosures and/or screened areas shall be designed in such a way as to prevent, odors, fumes, attraction of pests, and dispersal of wastes due to wind or water runoff and shall be serviced regularly by qualified waste removal and disposal services.
12. ENVIRONMENTAL CONSIDERATIONS.
No WARRANTY OF CURRENT CONDITION.
Landlord makes no representation or warranty, express or implied, as to the physical condition of the Premises, including, but not limited to the condition of the exterior or interior of the structure, ground, soil, surface water or groundwater. the geology, the presence of known and unknown faults, the presence of any Hazardous Substance or other kinds of contamination or pollutants of any kind in the air, soil, groundwater or surface water, or the suitability of the Premises for the construction and use of the improvements thereon.
(a) Tenant shall not commit, or suffer to be committed, any waste upon the Premises, or any nuisance or other act or thing which may disturb the quiet enjoyment of the use of Watsonville Airport or surrounding property. Tenant shall ensure that no untreated waste from any type of operation will enter the airport storm drainage system, sewer or sanitary system.
(b) Tenant shall at all times comply with all applicable environmental laws, rules and regulations of federal, state or local governmental agencies, including, but not limited to, the City of Watsonville, Santa Cruz County, Regional Air and Water Quality Control Boards, the Environmental protection Agency, and any other agency with jurisdiction. Tenant shall not permit any activity which directly or indirectly produces objectionable or unlawful amounts or levels of air pollution (gases, particulate matter, odors, fumes, smoke, or dust), water pollution, noise, glare, heat emissions, electronic or radio interference with navigational and communication facilities for the operation of the Airport and for its use by aircraft, trash or refuse accumulation, vibration, prop-wash, or jet blast, or which is hazardous or dangerous by reason or risk of explosion, fire or harmful emission.
Any waste oil storage tanks shall be in approved containers and in accordance with all environmental and fire protection regulations.
(c) Hazardous Substance. The term "Hazardous Substance" shall mean any toxic substance, hazardous substance, Hazardous Substance, or hazardous waste, pollutant or contaminant which is or during the term of this Lease becomes regulated by any local governmental authority, the State of California, or the United States government, including, but not limited to any, material or substance which is defined as a "hazardous waste," "extremely hazardous waste" or "restricted hazardous waste" under local, State, or federal law and as determined by the Fire Department. Except in strict compliance with all government approvals, applicable laws and regulations pertaining to Hazardous Substance, and in accordance with the provisions of this Lease, Tenant shall not cause or permit the Exhibit A
presence, use, handling, generation, emission, release, discharge, storage, or disposal of any Hazardous Substance on, under, in or about the Premises, excepting the presence of any Hazardous Substance on, under, in or about the Premises as of the date of this Lease or the migration to or seepage of Hazardous Substance from surrounding or adjacent property; and shall not cause or permit the transportation of any.
13. HAZARDOUS SUBSTANCE TO, FROM OR ON THE PREMISES.
(a) Tenant shall at all times notify Landlord of any Hazardous Substance present, used, generated, handled, emitted, released, discharged, stored or disposed of on or from the Premises. Notwithstanding the foregoing, notice shall not be required for Hazardous Substance present on the Premises in reasonable quantities which are commonly used in machining facilities including, but not limited to, cleaning materials, motor oils, and hydraulic fluids provided such Hazardous Substance are used and disposed of in accordance with law, or for materials which are first designated as Hazardous Substance after expiration of the term of this Lease. Tenant shall also institute operating procedures designed to handle Hazardous Substance consistent with prudent industry practice, including evidence of a licensed agent removal service. Landlord shall have the right to inspect the Premises on 24-hours prior notice for compliance with the provisions of this Section.
INDEMNIFICATION BY LANDLORD.
Landlord shall indemnify, protect, defend, and hold harmless Tenant and Tenant's successors and assigns, officers, directors, employees, agents, subtenants and assignees, from and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the
Premises and surrounding properties, and from and against the preparation of any clean up, remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of a Hazardous Substance by Landlord, its agents, employees, and contractors.
INDEMNIFICATION BY TENANT.
Tenant shall indemnify, protect, defend, and hold harmless Landlord and Landlord's successors and assigns, officers, directors, employees, agents, subtenants and assignees, from and against all liability, and foreseeable consequential damages, penalties, expenses and costs of any required or necessary remediation, repair, removal, clean up or detoxification, of the Premises and surrounding properties, and from and against the preparation of any clean up, Exhibit A
remediation, closure or other required plans, whether such action is required or necessary during or following the term of this Lease, to the full extent that the same is attributable to the use, handling, generation, emission, release, storage, discharge or disposal of Hazardous Substance by Tenant, its agents, employees, and contractors.
INDEMNIFICATION SURVIVES LEASE.
The indemnification provisions of the foregoing shall survive the termination or expiration of this Lease.
14. REP AIR AND MAINTENANCE OF PREMISES.
Landlord shall repair and maintain the exterior of the office and hangar building, including exterior walls and roof, heating and air conditioning, electrical systems (excluding interior lights and fixtures) except if repairs or replacements are necessary thereto because of negligence, neglect or misconduct of the Tenant or if Tenant fails to notify Landlord in writing within three (3) days of the need to repair.
Tenant shall maintain the interior of the hangar and office building, including, but not limited to, interior plumbing fixtures (including responsibilities for sanitary sewer obstructions), interior walls, doors, hardware, alarms, internal lights and fixtures, etc., in as good order, condition and repair as they shall be upon the commencement of the term of this Lease and any extended term. Any addition to the electrical system installed by Tenant shall remain the responsibility of the Tenant. Tenant shall keep drainage ditches and gutters free of debris.
15. FREEDOM FROM LIENS.
Tenant shall not create or permit to be created or to remain, and covenants to remove and discharge promptly, at its cost and expense, all liens, claims, stop notices, encumbrances and charges upon the Premises, or Tenant's leasehold interest therein which arise out of the use or occupancy of the Premises by Tenant or anyone using or occupying the Premises with the consent or sufferance of Tenant, or by reason of labor or materials furnished or claimed to have been furnished to Tenant for any construction, alteration, addition or repair of any part of the Premises. Tenant shall give Landlord fifteen (15) days' notice prior to commencing any work on the Premises, so that Landlord shall have a reasonable time within which to post notices of non- responsibility.
16. HOLDING OVER.
If Tenant shall hold possession of the Premises after the term of this Lease, Tenant shall become a Tenant from month to month at the rental and upon the terms herein specified and shall continue to be such tenant until the tenancy shall be terminated by Landlord on thirty (30) days' notice or until Tenant shall have given Exhibit A
at least thirty (30) days' notice of Tenant's intention to terminate the tenancy. The provisions of this Lease, so far as applicable, shall govern such tenancy, except that the monthly rent for such tenancy shall be the same as the last full month's rental rate.
ABANDONMENT.
Tenant shall not vacate or abandon the Premises at any time during the term thereof; if Tenant shall abandon, vacate or surrender the Premises or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the Premises shall be deemed to be abandoned and at the option of Landlord shall become Landlord's property free from all claims of Tenant. If Tenant abandons the Premises Landlord shall have the option to terminate this Lease by giving Tenant notice of belief of abandonment pursuant to California Civil Code Section 195 1.3 or Landlord has the remedy described in California Civil Code Section 1951.4, i.e., Landlord may continue the Lease after breach and abandonment and recover rent as it becomes due, if Tenant has the right to sublet or assign, subject to reasonable limitations as provided in the previous section regarding holding over.
17. ASSIGNMENT OR SUBLETTING.
Tenant shall not assign or encumber any interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant's authorized representatives) to occupy or use all or any part of the Premises, without Landlord's prior written consent, and consent to one assignment or sublease shall not be construed as consent to any subsequent assignment or subleasing.
If Tenant is a corporation or partnership, any dissolution, merger, consolidation or other reorganization of Tenant or the sale or transfer of controlling percentage of the capital stock of Tenant or the sale of twenty five percent (25%) of the value of the assets of Tenant shall be deemed a voluntary assignment. The phrase "controlling percentage" means the ownership of and the right to vote stock possessing at least twenty five percent (25%) of the total combined voting power of all classes of Tenant's capital stock issued outstanding and entitled to vote for the election of directors. Landlord shall not unreasonably withhold consent, but Landlord may nevertheless condition consent upon such factors as the identity, reputation, fmancial worth and stability and operating ability of any proposed assignee or subtenant.
Unless prior written consent of Landlord shall have been obtained, any transfer, or attempted assignment or transfer, of this Lease or any interest therein, or any subletting, either by voluntary or involuntary act of Tenant or by operation of law or otherwise, shall at the option of the Landlord terminate this Lease, and any such purported assignment, transfer or subletting without such consent shall be null and void.
Exhibit A
Tenant shall pay Landlord at the time the request to assign is submitted, a deposit of Two Thousand Five Hundred Dollars ($2,500.00) to offset Landlord's expenses, including attorney's fee, in evaluating and documenting the assignment.
Landlord shall charge said deposit at the then current hourly rate for staff time charged to the Airport. Any balance of said deposit shall be refunded to Tenant, and any excess amount charged, excluding said deposit, shall be paid by Tenant.
Landlord and Tenant hereby deem it reasonable for the Landlord to refuse to consent to a proposed assignment in the following circumstances:
(a) Landlord may object to any proposed assignment if, in the Landlord's sole opinion, the proposed assignee is not a qualified assignee in terms of financial strength, business experience or reputation or the ability to operate the fixed base operation and provide the required services in a manner consistent with the purposes for which this Lease was granted.
(b) Landlord may object on any other reasonable grounds.
The effective date of the assignment shall not occur until thirty (30) days after the Tenant's notice of the proposed assignment unless, within that time, Landlord gives notice of a valid objection or refusal of consent as set forth in subsection A. (3) hereof. If Landlord gives notice of a valid objection and withholds consent, the Lease will not be assigned.
18. SUB-TENANT RENT
Except as expressly authorized in the second paragraph of§ 18 above, Tenant shall not receive from any person any rent for any portion of the Premises which exceeds the rent charged by Landlord for the same or similar area of the Premises, the purpose hereof is that Tenant shall not receive rent for any portion of the · Premises which exceeds the rent Landlord charges tenant for the Premises. Tenant shall instead tum over any such rent to Landlord as additional rent. Tenant may not receive from all sub-tenants combined an amount greater than an amount paid to Landlord. Any greater amount is the property of the Landlord.
RIGHT OF RECAPTURE.
Despite any other provision of this Lease, Tenant shall notify Landlord in writing (Availability Notice) if Tenant wishes to transfer the Premises or any portion thereof (Subject Space). If Tenant does not give Landlord the Availability Notice before delivering a Transfer Notice, the Transfer Notice shall also be the Availability Notice. Landlord has the option, by written notice to Tenant (Recapture Notice) within thirty (30) days after receiving any Availability Notice, to recapture the Subject Space as described in the next section. A timely Recapture Notice terminates this Lease as to the Subject Space and Tenant's obligations regarding the remaining term of this Lease (or, at Landlord's election, for a shorter period specified in the Availability Notice as the term of the Transfer) and as of the Exhibit A
date specified in the Availability Notice. The Recapture Notice shall be void, however, if Tenant notifies Landlord, within thirty (30) days after receipt of the Recapture Notice, that Tenant withdraws the Availability Notice or Transfer Notice. If Landlord declines or fails timely to elect to recapture the Subject Space, Landlord shall have no further right under this section to the Subject Space unless it becomes available again after Transfer by Tenant.
CONSEQUENCES OF RECAPTURE.
To determine the new Base Rent under this Lease if Landlord recaptures the Subject Space, the original Base Rent under the Lease shall be multiplied by a fraction, the numerator of which is the Rentable Square Feet of the Premises retained by Tenant after Landlord's recapture and the denominator of which is the total Rentable Square Feet of the Premises before Landlord's recapture. The Additional Rent, to the extent that it is calculated based on the Rentable Square Feet within the Premises, shall be reduced to reflect Tenant's proportionate share based on the Rentable Square Feet of the Premises retained by Tenant after Landlord's recapture. This Lease as so amended shall continue thereafter in full force and effect for the remaining Premises only. Either party may require written confirmation of the amendments to this Lease necessitated by Landlord's recapture of the Subject Space. If Landlord recaptures the Subject Space, Landlord shall, at Landlord's sole expense, construct any partitions required to segregate the Subject Space from the space retained by Tenant. Tenant shall, however, pay for painting, covering, or otherwise decorating the surfaces of the partitions facing the remaining Premises retained by Tenant.
If Landlord recaptures the Subject Space, Landlord shall pay Tenant ten percent ( 10%) of any Transfer Premium received by Landlord.
19. RIGHT TO COLLECT RENT.
If this Lease is assigned, Landlord may collect Rent directly from Transferee.
If all or part of the Premises is subleased and Tenant defaults, Landlord may collect Rent directly from Transferee. Landlord may then apply the amount collected from Transferee to Tenant's monetary obligations under this Lease.
Collecting Rent from a Transferee or applying that Rent to Tenant's monetary obligations does not waive any other provision of this Lease.
20. SIGNS, POSTERS, BUILDINGS AND TOWERS.
No advertising signs, posters or similar devices shall be erected, displayed or maintained in, on, about or above the Premises or the structures thereon without a sign permit and the written approval of the Airport Manager.
No strucmres erected on the Premises shall exceed the height limit fixed by any Landlord zoning ordinance or regulations of the Airport or Federal Aviation Administration. Tenant in its operations shall not unreasonably interfere with the Exhibit A
property, interests, operations or activities of the Landlord or of other tenants of the Landlord.
21. TAXES.
Tenant will pay all fees, taxes, assessments and licenses levied, imposed or required by any governmental subdivision, body or authority on or in respect to any improvements or property placed on the Premises by Tenant or any person with its perm1sswn.
(a) Any business, activity or transaction conducted thereon by Tenant; (b) Landlord license and permits; and
(c) Commercial Operator Permit fee.
22. WAIVEROFDAMAGESANDINDEMNIFICATION.
Landlord shall not be liable to Tenant for any injury or damage that may result to any person or property by or from any cause whatsoever, except as results from affirmative conduct which is the sole negligence on the part of Landlord, its agents, servants, employees or invitees. Without limiting the generality of the foregoing waiver, it is expressly extended to injury or damage caused by water leakage of any character from the roof(s), wall(s), basement or any part of the property, or caused by gas, oil, or any other cause in or about the Premises or the building(s). Tenant agrees to hold Landlord harmless from, and to defend and indemnify Landlord against, any and all claims or liability for any death of for injury to any person or damage to any property, whatsoever, occurring in, on or about the Premises.
23. WAIVEROFCERTAINDAMAGES
In the event of any actual or alleged failure, breach or default hereunder by either party, the other shall have no right to seek from the other any indirect, consequential or special damages, and each of the undersigned hereby waives all and any rights it may have to obtain from the other any indirect, consequential or special damages. Each party's above-stated waiver is a material inducement for each party's entering into this Agreement.
24. THIRD PARTY BENEFICIARIES/PARTIES IN INTEREST.
This Lease has been made and is made solely for the benefit of Landlord and Tenant and their respective successors and permitted assigns. Nothing in this Lease is intended to confer any rights or remedies under or by reason of this Lease on any persons other than the parties to it and their respective successors and permitted assigns. Nothing in this Lease is intended to relieve or discharge the obligation or liability of any third persons to any party to this Lease.
Exhibit A
25. WAIVER BY ACCEPTING VARIED PERFORMANCE.
No waiver of any provision or consent to any action shall constitute a waiver of any other provision or consent to any other action, whether or not similar. No waiver of consent shall constitute a continuing waiver of consent or commit a party to provide a waiver in the future except to the extent specifically set forth in writing. Any waiver given by a party shall be null and void if the party requesting such waiver has not provided a full and complete disclosure of all material facts relevant to the waiver requested.
26. SECURITY DEPOSIT.
On execution of this Lease, Tenant shall deposit the sum of$4,000 in cash as security for the faithful performance of the terms, covenants and conditions of this Lease.
If Tenant is in default, Landlord can use the security deposit or any portion of it, to cure the default or to compensate Landlord for any and all damages or loss sustained by Landlord resulting from Tenant's default if the notice requirements, if applicable, have been observed. Tenant shall immediately, on demand, pay to Landlord a sum equal to the portion of the security deposit expended or applied by Landlord as provided in this paragraph so as to maintain the security deposit in the sum initially deposited. Upon final accounting by Landlord, any balance of said deposit shall be refunded to Tenant.
27. HOLDHARMLESS.
(a) Tenant shall save, protect, indemnify, and hold harmless Landlord, its elective and appointive boards, commissions, officers, agents, and employees from any and all claims, cost or liability of any kind allegedly suffered, incurred or threatened, including personal injury, death, property damage, inverse condemnation, or any combination of these, foreseeable or unforeseeable, arising directly or indirectly from or connected with any acts performed pursuant to this Lease, or any omission to perform, including, but not limited to, claims, costs or liability resulting from: (I) The conduct, negligent or otherwise, of Tenant, its subtenant(s), assignee(s), or any officer(s), agent(s) or employee(s) of one or more of them; (2) The joint conduct of the Landlord and Tenant, regardless of whether the Landlord is concurrently, active or passively negligent or not negligent at all; or (3) The sole concurrent conduct of any other person or entity.
The above promise and agreement in this section is not conditioned or dependent on whether Tenant or Landlord has prepared, supplied or approved any plan(s) or specification(s) in connection with this Lease, or has insurance or other indemnification covering any of these matters, or that the alleged damage resulted partly from any negligent or willful misconduct of Landlord.
Exhibit A
(b) Non-Liability of Landlord for Damages. This Lease is made upon the express condition that Landlord is to be free from all liability and claim for damages by reason of any injury to any person or persons including, Tenant, or property of any kind whatsoever and to whomsoever belonging, including Tenant, from any cause or causes whatsoever while in, upon, or in any way connected with the Premises during the term of this Lease or any extension hereof or any occupancy hereunder, Tenant hereby covenanting and agreeing to indemnify and save harmless Landlord from all liability, loss, cost, attorneys fees, and obligations on account of or arising out of any such injuries or losses however occurring.
28. BREACH.
After service often (10) days written notice thereof by Landlord on Tenant any one of the following shall constitute a breach of this Lease by Tenant (a) The appointment a general assignment by Tenant for the benefit of creditors, or of a Receiver to take possession of all or substantially all of the assets of Tenant, or
(b) Period of twenty (20) days, or
(c) A default in the performance of any other covenant or condition of this Lease on the part of Tenant to be performed for a period of twenty (20) days
29. INSURANCE.
(a) During the rental term, Tenant, at Tenant's sole expense, shall secure and maintain in force such policies of insurance as will protect it from claims for damages or injury resulting from bodily injury, including death, and for the loss or damage to property of others which may arise from operations of this Lease. Such insurance shall contain statements that:
(b) These policies shall also apply to Landlord, as an Additional Named Insured; (ii) the insurance afforded by these policies applies severally as to each insured, except that the inclusion of more than one insured shall not operate to increase the limit of the company's liability, and the inclusion hereunder of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included; (iii) the insurance shall be primary insurance over any other insurance carried by Landlord, which other insurance shall be considered excess only; (iv) the above policies specifically include coverage indemnifying Landlord as set forth in this Lease; (v) the policies may not be canceled, nor the coverage reduced until thirty (30) days after a written notice of such cancellation or reduction in coverage is delivered to Landlord at the address contained herein; (vi) the insurance companies named herein waive any all rights of subrogation against Landlord. Such liability insurance shall be written with limits of at least Two Million Dollars ($2,000,000.00), combined single limits, and shall be written by companies acceptable to Landlord. The limit of liability Exhibit A
insurance coverage shall be adjusted commensurate with inflation and other liability factors upon adoption of resolution of the Landlord Council of Landlord.
Certificates of Insurance evidencing the above obligations shall be delivered to Landlord on prior commencement of operations covered by this agreement. (c) Landlord, at Tenant's cost, shall cooperate fully with Tenant to maximize any recovery following an insured casualty. All policies of fire and extended coverage or other casualty insurance required by subparagraphs (e) and (g) below shall provide that proceeds there under shall be paid to Landlord and Tenant as their interests may appear.
(d) All policies required to be maintained by Tenant pursuant to the terms of this Lease shall be issued by companies authorized to do business in the State of California with a financial rating of at least "A" in the most recent edition of Best Insurance Reports. Tenant shall pay premiums therefore and shall deliver annually to Landlord Certificates of Insurance that such policies are in effect. If Tenant fails or refuses to procure or maintain the insurance coverage required hereunder, or fails or refuses to furnish Landlord with proof that coverage has been procured and is in full force and paid for, Landlord shall have the right, at Landlord's election and without notice to Tenant, but without any obligation to do so, to procure and maintain such coverage. Tenant shall reimburse Landlord on demand for any premiums Landlord so pays in connection with such procurement. (e) Fire Insurance: During the Lease Term, Tenant, at Tenant's sole expense, shall insure for fire and extended coverage risks all buildings, personal property, improvements, and alterations in, on, or about the Premises. Such insurance shall be in an amount not less than eighty percent (80%) of insurable, full replacement cost of such buildings and improvements, and shall include vandalism and malicious mischief endorsements. Said fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder. Landlord shall be named as additional insured in such policy or policies.
(f) Fire or Casualty:
(1) Destruction of Tenant Owned Building. In the event
of extensive damage (greater than fifty percent (50%)) to or destruction of buildings or other improvements on the Premises owned by Tenant as provided in Section 11 of this Lease ("Tenant Improvements"), Tenant shall determine whether to repair or replace the Tenant Improvements. If it is determined to repair or replace the Tenant Improvements, the proceeds of any insurance policy paid on account of such damage or destmction shall be used to defer the cost of repairing or replacing the Tenant Improvements. Tenant shall complete all repairs within a reasonable time. If it is determined not to repair or replace the Tenant Improvements, Tenant may terminate this Exhibit A
Lease upon written notice to Landlord within thirty (30) days of such damage or destruction. If Tenant terminates this Lease pursuant hereto, after deducting any proceeds payable to Tenant's lender pursuant to the following paragraph, the remaining proceeds of any insurance policy paid on account of such damage or destruction shall be distributed to Landlord and Tenant pursuant to the following formula: Landlord's share shall be the product of the amount of the remaining proceeds multiplied by a fraction, the numerator which is the number of months since the commencement date of this Lease until the date of the casualty causing such damage or destruction, and the denominator of which is four hundred and twenty (420). Tenant's share shall be the excess of the remaining proceeds after subtracting the Landlord's share. In the event of termination of the Lease pursuant to this Section 31 (e) (1), Tenant shall remove the Tenant Improvements and, restore the Landlord owned building to its prior · condition at Tenant's sole cost and expense prior to the date of termination of the Lease.
All fire and extended coverage insurance policies insuring the Tenant Improvements may have a loss payable clause in favor of any lender of Tenant, including, but not limited to, any mortgagee of Tenant, as such lender's interest may appear.
(2) Destruction of Landlord Owned Premises. If during
the term of this Lease the Landlord owned Premises, as provided in Section 11 of this Lease, shall be damaged or destroyed to the extent of fifty percent (50%) of its valuation or at a repair cost estimated by the Landlord Building Official to exceed the sum of Twenty Five Thousand Dollars ($25,000.00) by fire, the elements, or any other cause, then this Lease shall, at Landlord's option, cease and become null and void from the date of such damage, or destruction, and Tenant shall immediately surrender the entire Premises to Landlord and shall pay rent only to the time of such surrender.
If the Landlord owned Premises shall be damaged by fire, or other cause, so as to be capable of being repaired within a reasonable time, Landlord shall have the option to repair the same and during the time that the repairs are being made, Landlord shall remit to Tenant a just and fair portion of the rent according to the nature of the damage sustained and according to the extent that Tenant is deprived of the use of the Landlord owned Premises. Should the estimated time to repair damage exceed one hundred twenty (120) days, the Tenant may, at his option, terminate, this Lease. In such event both parties shall be released from further obligations under the terms of this Lease.
(g) Workers' Compensation: Tenant, at Tenant's sole expense, must obtain and maintain workers' compensation insurance covering all its employees, Exhibit A
and said insurance must be kept in force during the entire term of this Lease. (h) Notice: Each party hereto shall give to the other prompt and timely notice of any claim made or suit instituted coming to its knowledge which in any way directly, contingently or otherwise, affects or might affect either, and both shall have the right to participate in the defense of the same to the extent of its own interest.
30. LITIGATIONEXPENSES.
If either party shall bring an action against the other by reason of the breach of any covenant, warranty or condition hereof, or otherwise arising out of this Lease, whether for declaratory or other relief, the prevailing party in such suit shall be entitled to its costs of suit, expert witness fees and costs and reasonable attorney fees, which shall be payable whether or not such action is prosecuted to judgment. "Prevailing Party" within the meaning of this paragraph shall include without limitation a party who brings an action against the other after the other's breach or default, if such action is dismissed upon the other's breach or default, if such action is dismissed upon the other's payment of the sums allegedly due or performance of the covenant's allegedly breached, or if the plaintiff obtains substantially the relief sought by it in the action.
31. SURRENDER OF PREMISES.
Tenant agrees to surrender the Premises and any addition thereto at the termination of the tenancy herein created in the same condition as the Premises were in at the beginning of the tenancy or at the time of completion of the improvements as the case may be, reasonable use and wear thereof and damage by act of God or the elements excepted. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation thereof shall not work a merger, and shall, at the option of Landlord, terminate all or any existing subleases or sub tenancies, or may, at the option of Landlord, operate an assignment to Landlord of any or all such sublease or sub tenancies.
32. WAIVER.
Any waiver, expressed or implied, by either party of any breach by the other party of any agreement, term or condition of this Lease shall not be, or be construed to be, a waiver of any subsequent breach of a like or other agreement, term of condition hereof; and the acceptance of rent hereunder shall not be, or be construed to be, a waiver of any breach of any agreement, term or condition of this Lease, except as to the payment of rent so accepted. The rights and remedies of either party under this Lease shall be cumulative and in addition to any and all other rights and remedies which either party has or may have.
Exhibit A
33. QUIET ENJOYMENT.
Landlord covenants and warrants that upon Tenant's paying the rent and observing and performing all of the terms, covenants, and conditions on Tenant's part to be observed and performed hereunder, Tenant shall and may peaceably and quietly enjoy the Premises hereby demised, subject nevertheless to the terms and conditions of this Lease.
34. NOTICES.
All notices, consents, waivers or other communications which this Lease requires or permits either party to give to the other shall be in writing and shall be served personally or delivered by registered or certified mail, return receipt requested, made upon or addressed to the respective parties as follows:
To Landlord: To Tenant:
City Clerk Informart dba Gary Air
City of Watsonville Post Office Box 116
275 Main Street, Suite 400 Moffett Field,
Watsonville, CA 95076 Mountain View, CA 94035
or such other address as may be contained in a notice from either party to the other given pursuant to this section. Notice of registered or certified mail shall be deemed to be given forty- eight ( 48) hours from the time of postmarking if mailed within the United States (excluding Alaska).
35. RECORDATION.
Neither party, without the consent of the other, shall cause or permit the original nor any copy of this Lease to be recorded, filed or published.
36. TENANT TO ASSUME ALL UNKNOWN EXPENSES.
Notwithstanding the existence of a provision therefore in this Lease, Tenant shall assume, pay and be obligated for any and all costs and expenses toward the operation, protection, maintenance of the Premises, known or unknown, expressed or unexpressed, it being the intention of the parties for this to be a triple net lease to Landlord.
37. RIGHT OF LANDLORD TO INSPECTION.
Landlord shall have the right to enter upon the Premises at all reasonable times Exhibit A
during the term of this Lease for the purpose of making any inspection it may deem expedient to the proper enforcement of this Lease.
Tenant shall furnish Landlord a copy of any lease of any subtenant, any amended lease and any amendment to any lease and shall furnish Landlord upon request with all evidence of rent or other compensation paid by any and all subtenant for use or occupation of all or any part of the Premises.
38. NONDISCRIMINATION
Tenant hereby covenants that Tenant in its use of the Premises and any and all structures, buildings and improvements located here on shall conduct the fixed base operation or any other activity hereafter authorized by the Landlord on the Premises on a non-exclusive and non-discriminatory basis in all respects with regard to any person, firm or group of persons. Tenant shall not act in any manner prohibited by Part 15 of the Federal Aviation Regulations and further agrees to be nondiscriminatory also with respect to price or cost of services or goods and in every other fashion.
39. ENFORCEMENT OF NONDISCRIMINATION CLAUSE.
Landlord shall have the right to take such action against the Tenant as the United States Government may direct or request to enforce the terms of the preceding paragraph on behalf of the United States Government or on behalf of any of its citizens or the Landlord itself.
40. OTHEROPERATIONS.
It is understood that the use authorized at the Watsonville Municipal Airport by this Lease is not given to Tenant exclusively but may be given to any other Tenant at the Airport at the sole discretion of the Landlord.
41. CONDEMNATION.
If the whole or any substantial part of the Premises shall be taken by any paramount public authority under the power of eminent domain then the term of this Lease shall cease as to the part so taken from the date the possession of that part shall be taken for any public purpose, and from that day Tenant shall have the right either to cancel this Lease or to continue in the possession of the remainder of the Premises under the term herein provided, except that the square foot rental shall be reduced in proportion to the amount of the Premises taken. Damages awarded for such taking shall be apportioned between the Landlord and Tenant in a ratio relating to the number of years expired and remaining in the Lease Term between Landlord and Tenant respectively; provided, however, that Landlord shall not be entitled to any portion of the award made for loss of business installation or improvements belonging to Tenant.
Exhibit A
42. NONDISCRIMINATION- (FAA, MBE, DB REQUIREMENTS).
The Tenant, for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration for this Lease, does hereby covenant and agree as a covenant running with the land that if facilities are constructed, maintained, or otherwise operated on the Premises for a purpose for which a Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, the Tenant shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in FederallyAssisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
The Tenant for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby further covenant and agree as a covenant running with the land that: (a) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of facilities; (b) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; (c) that the Tenant shall use the with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 2 1, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.
Tenant shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED, THAT the Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.
Tenant shall insert the provisions of this section in any lease agreement or contract by which Tenant grants a right of privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises.
43. REMEDY FOR DISCRIMINATION.
In the event of breach of any of the nondiscrimination covenants identified in Paragraph 42, Landlord shall have the right to terminate this Lease and to reenter and repossess the Premises and the facilities thereon, and hold the same as if this Lease had never been made or issued. The provision does not become effective Exhibit A
until the procedures of 49 CPR Part 21 are followed and completed including expiration of appeal rights.
Non-compliance with paragraph 42 shall constitute a material breach thereof and in the event of such non-compliance Landlord shall have the right to terminate this Lease and the estate hereby created without liability therefore or at the election of the Landlord or the United States either or both Governments shall have the right to judicially enforce paragraph 48.
44. AFFIRMATIVE ACTION.
Tenant assures that it will undertake an affirmative action program as required by 14 CPR Part 152, Subpart E, to insure that no personal shall be on the grounds of race, creed,.color, national origin, or sex be excluded from participating in any employment activities covered in 14 CPR, Subpart E. Tenant assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by such subpart. Tenant assures that it will require that it's covered by such subpart. Tenant assures that it will require that its covered sub-organizations provide assurances to the Tenant that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations, as provided by 14 CPR Part 152, subpart 2, to the same effect.
45. SUBORDINATION TO FUTURE FAA AGREEMENTS.
This Lease shall subordinate to the provisions and requirements of any existing or future agreement between the Landlord and the United States, relative to the development, operation or maintenance of the Airport.
46. NOTICE TO FEDERAL AVIATION ADMINISTRATION.
Tenant shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event of future construction of a building planned for the Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises.
47. NON-EXCLUSIVE RIGHT.
It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act.
48. TERMS.
All the provisions of this Lease shall be deemed and construed to be "covenants" as though the words imported such covenants were used in each separate paragraph hereof, except when expressed as conditions.
Exhibit A
49. GOVERNINGLAW.
This Lease shall be construed and enforced in accordance with the laws of the State of California.
50. BINDING EFFECT.
This Lease and the covenants and agreements herein contained shall bind and inure to the benefit of the parties hereof, their heirs, successors, executors, administrators, and when permitted assigns.
51. TIME IS OF THE ESSENCE.
Time is of the essence regarding this Lease.
52. CONSENT.
Whenever consent or approval of either party is required, that part shall not unreasonably withhold such consent or approval.
53. CORPORATE STATUS.
If either party is a corporation, that party shall deliver to the other party on execution of this Lease, a certified copy of a resolution of its governing body authorizing the execution of this Lease and naming the officers that are authorized to execute this Lease on behalf of the corporation.
54. BROKERS.
Each party represents that it has not had dealings with any real estate broker, finder, or other party, with respect to this Lease in any manner. Each party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person, with whom the other party has or purportedly has dealt.
55. JURY TRIAL WAIVERS.
To the fullest extent permitted by law, and as separately bargained-forconsideration, each party hereby waives any right to trial by jury in any action, suit, proceeding, or counterclaim of any kind arising out of or relating to this Agreement. Each party hereby expressly acknowledges the inclusion of this jury trial waiver through the execution by its duly authorized representative.
56. EXHIBITS.
There is one Exhibit to this lease. It is Exhibit A. All exhibits referred to are attached to this Lease and incorporated by reference.
Exhibit A
57. INTERPRETATION
The terms of this Lease have been negotiated by the parties hereto and the language used in this Lease shall be deemed to be the language chosen by the parties hereto to express their mutual intent. This Lease shall be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in favor of the party receiving a particular benefit under the lease. No rule of strict construction will be applied against any person.
58. ENTIRE AGREEMENT.
This Lease contains the entire agreement of the parties, and by signing this '- Lease they agree that there is no other written or oral agreement, promise, or representation between them respecting the Premises. This Lease shall bind and inure to the benefit and advantage of the assigns of Landlord, and of the heirs, executors, administrators, and when permitted hereunder the assigns of Tenant.
IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written.
"Landlord"
City of Watsonville, a municipal
corporation
By:Matthew ~" D. Huffak
ATTEST:
"Tenant"
By~David Alan m~ Guerrieri, Secretary
and ChiefFinancial Officer
Exhibit A
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5 EXHIBIT B
LEGAL DESCRIPTION OF LEASEHOLD PROPERTY
DocuSign Envelope ID: 67133D60-A7C0-4F12-B83E-3ED01004BFCC
Exhibit B
140 Aviation Way Exhibit “B”
Premises Page 317 of 477 Ramp Parking
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C:\Program Files\eSCRIBE\TEMP\20454434295\20454434295,,,Report - Purchase of 2 Police Patrol Vehicles.docx Agenda Report
MEETING DATE: Tuesday, June 27, 2023
TO: City Council
FROM: POLICE CHIEF ZAMORA
DONNY THUL, POLICE CAPTAIN
THROUGH: CITY MANAGER MENDEZ
SUBJECT: PURCHASE OF TWO (2) PATROL VEHICLES IN THE AMOUNT OF $112,636.16 FROM FOLSOM LAKE FORD
RECOMMENDED ACTION:
That City Council adopt a resolution authorizing the City Manager or his designee to purchase two (2) new patrol vehicles from Folsom Lake Ford in the amount of $112,636.16 of Capital Improvement Plan funding under the Patrol Vehicle Replacement Project, which is funded by Measure Y.
BACKGROUND/DISCUSSION:
Historically, the Watsonville Police Department (WPD) replaced patrol vehicles after reaching 80,000 miles; these vehicles were replaced through the City’s Capital Improvement Project. The fleet is aging and many vehicles have surpassed their anticipated useful life. Patrol vehicles have been a challenge to acquire, due to high demand and low availability. Folsom Lake Ford has two (2) new patrol vehicles ready for delivery and they also have the State of California Contract for the sale of Ford Police Interceptors (Contract #1-22-23-14C).
The Watsonville Police Department recommends the purchase of the two (2) new patrol vehicles, as they will be more reliable and will help the department reduce the cost of mechanical breakdowns.
STRATEGIC PLAN:
The recommended action supports the Council’s objective of 6-Public Safety.
FINANCIAL IMPACT:
The purchase of these patrol vehicles has no financial impact to the general fund, they will be funded by the Capital Improvement Plan which is funded by Measure Y
6/21/2023 8:45:46 PM
C:\Program Files\eSCRIBE\TEMP\20454434295\20454434295,,,Report - Purchase of 2 Police Patrol Vehicles.docx ALTERNATIVE ACTION:
The City Council may choose to deny the purchase. However, such action will result in an increase in the cost of repairs.
ATTACHMENTS AND/OR REFERENCES (If any):
None.
Reso No. (CM)
Meeting Date: 062723 SWZ ______ RM ______ WPD ______
1 RESOLUTION NO. __________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AUTHORIZING THE PURCHASE OF TWO (2) NEW
POLICE INTERCEPTOR VEHICLES, FROM FOLSOM LAKE FORD
THROUGH THE STATE OF CALIFORNIA CONTRACT (CONTRACT #1-
22-23-14C), IN AN AMOUNT NOT TO EXCEED $112,636.16; AND
AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE
PURCHASE ORDER (FUNDED BY MEASURE Y)
WHEREAS, competitive bidding requirements for the purchase of supplies, equipment and non-personal contractual services and the sale of personal property are set forth in Chapter 5 (Purchasing Procedure) of Title 3 (Finance) of the Municipal Code; and
WHEREAS, subdivision (e) of § 3-5.210 exempts purchases made cooperatively with one (1) or more units of government through cooperative purchasing programs substantially the same as the City of Watsonville’s; and WHEREAS, Folsom Lake Ford has two (2) new police interceptor vehicles ready for delivery through the State of California Statewide Contract (Number 1-22-23-14C).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. This action does not meet CEQA’s definition of a “project”, because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2. This purchase is exempt from the purchasing procedures of Chapter 5 (Purchasing Procedures) of Title 3 (Finance) of the Watsonville Municipal Code as a purchase made cooperatively with one (1) or more units of government under subdivision (e) of § 3-5.210 of the Municipal Code.
Reso No. (CM)
Meeting Date: 062723 2
3. That the City Council hereby authorizes the purchase of two (2) new police interceptor vehicles from Folsom Lake Ford through the State of California Statewide Contract (Contract # 1-22-23-14C), in an amount not to exceed $112,636.16, funded by Measure Y Funds, and authorizes the City Manager to sign the purchase order for the same, with any minor amendments as approved by the City Manager and City Attorney. ************************************
1 Reso No. (CM)
Meeting Date: 062723
RESOLUTION NO. __________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE
RATIFYING A MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY AND THE CONFIDENTIAL UNIT FOR FISCAL YEARS 2023-2026 WHEREAS, in accordance with provisions of the Myers-Milias Brown Act (Government Code section 3500 et seq.), City of Watsonville's Resolution No. 56-08 (CM), and City of Watsonville Administrative Rule V.1.1., the bargaining team from the City met and conferred in good faith with the bargaining team from the Confidential unit regarding the terms and conditions set forth in the Memorandum of Understanding, a copy of which is attached hereto and incorporated herein by reference; and WHEREAS, the Council of the City of Watsonville after reviewing the Memorandum of Understanding hereby determines to ratify the Memorandum of Understanding.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. Adopting a Resolution approving and authorizing the Memorandum of Understanding between the City and the Confidential Unit does not meet CEQA’s definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2. That the Memorandum of Understanding between the City and the Confidential Unit, with term from July 1, 2023, to June 30, 2026, attached hereto marked Exhibit “A,” and incorporated herein by this reference, is hereby ratified. ********************************
EXHIBIT “A”
WILL BE
AVAILABLE
BEFORE THE
CITY COUNCIL
MEETING
1 Reso No. (CM)
Meeting Date: 06/27/2023
RESOLUTION NO. (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE
RATIFYING A MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY AND THE MANAGEMENT UNIT FOR FISCAL YEARS 2023-2026 WHEREAS, in accordance with provisions of the Myers-Milias Brown Act (Government Code section 3500 et seq.), City of Watsonville's Resolution No. 56-08 (CM), and City of Watsonville Administrative Rule V.1.1., the bargaining team from the City met and conferred in good faith with the bargaining team from the Management unit regarding the terms and conditions set forth in the Memorandum of Understanding, a copy of which is attached hereto and incorporated herein by reference; and WHEREAS, the Council of the City of Watsonville after reviewing the Memorandum of Understanding hereby determines to ratify the Memorandum of Understanding.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. Adopting a Resolution approving and authorizing the Memorandum of Understanding between the City and the Management Unit does not meet CEQA’s definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2. That the Memorandum of Understanding between the City and the Management Unit, with term from July 1, 2023, to June 30, 2026, attached hereto marked Exhibit “A,” and incorporated herein by this reference, is hereby ratified. ********************************
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE MUNICIPAL RELATIONS OFFICER
OF THE CITY OF WATSONVILLE AND
ITS MANAGEMENT UNIT
2023-2026
DocuSign Envelope ID: 1D4F040C-F344-4A53-94AC-639739723143
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TABLE OF CONTENTS
1.0 COMPENSATION ........................................................................................................... 3
1.1 Salary Adjustment .............................................................................................................3
1.2 Retirement Contribution ....................................................................................................3
1.3 Administrative Leave.........................................................................................................4
1.4 Overtime Pay .....................................................................................................................5
1.5 Auto Policy........................................................................................................................5
1.6 Bilingual Pay .....................................................................................................................5
1.7 Notary Pay .........................................................................................................................6
1.8 Longevity Pay…………………………………………………………………….6
1.9 Deferred Compensation…………………………………………………………..7
2.0 INSURANCE .................................................................................................................... 7
2.1 Health Insurance ................................................................................................................7
2.2 Excess Disability Insurance...............................................................................................8
2.3 Long Term Disability Insurance........................................................................................8
2.4 Life Insurance ....................................................................................................................9
3.0 LEAVES ............................................................................................................................ 9
3.1 Vacation Leave ..................................................................................................................9
3.2 Holidays.............................................................................................................................9
3.3 Sick Leave .......................................................................................................................10
4.0 ENACTMENT ................................................................................................................ 11 DocuSign Envelope ID: 1D4F040C-F344-4A53-94AC-639739723143
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MEMORANDUM OF UNDERSTANDING
BETWEEN THE MUNICIPAL RELATIONS OFFICER
OF THE CITY OF WATSONVILLE AND ITS MANAGEMENT UNIT
This Memorandum of Understanding (MOU) sets forth the agreement between the Municipal Relations Officer of the City of Watsonville (MRO) and the City’s Management Unit (Unit) as to all matters within the scope of representation for the employees of the City represented by the Unit. This MOU is authorized by and made pursuant to Council Resolution 56-08 (CM) adopted April 8, 2008 and Rules and Regulations adopted pursuant thereto. The MRO and the undersigned on behalf of the Unit hereby agree to jointly recommend to the City Council of the City of Watsonville that one or more Resolutions be adopted effectuating the following changes in benefits and other terms and conditions of employment for all the employees in the Unit. The members of the Unit, by accepting the benefits hereof, agree to be bound by the terms and conditions of this MOU.
This MOU shall become effective July 1, 2023, and shall terminate on June 30, 2026.
All benefits in effect on the date set forth below and not modified by this MOU shall remain in effect for the term of this MOU, except as provided herein.
1.0 COMPENSATION
1.1 Salary Adjustment
Effective the beginning of the first full period after July 1, 2023 and ratification by Management Unit and City Council approval, each step in the salary range for allemployees shall be increased by 3% cost of living increase.
Effective the first full period after July 1, 2024, each step in the salary range for all employees shall be increased by 3% cost of living increase.
Effective the first full period after July 1, 2025, each step in the salary range for all employees shall be increased by 3% cost of living increase.
The City will continue to strive to maintain competitiveness in the labor market.
From time to time when practical and appropriate, the City will conduct a compensation study. Upon initiation of a study, the City will meet and confer with Management over the survey agencies and data elements to be included.
1.2 Retirement Contribution
1.2.1 Miscellaneous Employees Retirement Plan. The City provides the California Public Employees’ Retirement System (CalPERS) 2% @ 55 DocuSign Envelope ID: 1D4F040C-F344-4A53-94AC-639739723143
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retirement program plan for Miscellaneous employees hired before July 1, 2011, including CalPERS Section 20862.8 - Credit for Unused Sick Leave.
1.2.2 Miscellaneous Employees Two-Tier Retirement Plan. The City shall provide the CalPERS 2% @ 60 retirement program plan for Miscellaneous employees hired on or after July 1, 2011 or upon effective date of CalPERS contract amendment including CalPERS Section 20862.8 - Credit for Unused Sick Leave. Final compensation for employees hired on or after July 1, 2011 will be based on the average of the highest wages earned in any consecutive 3-year period.
1.2.3 Miscellaneous Employees PEPRA Tier Retirement Plan. Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), the City shall provide the CalPERS 2% at 62 retirement plan for Miscellaneous employees hired on or after January 1, 2013 or as soon as administratively possible. Final compensation will be based on the average of the highest wages earned in any consecutive 3-year period.
1.2.4 Miscellaneous Employees Retirement Contribution.
Effective the first full pay period after July 1, 2013the employee will pay the full seven percent (7%) of the employee share effective the first full pay period on or after July 1, 2013.
1.2.5 Miscellaneous Employees PEPRA Retirement Contribution.
Pursuant to California Public Employees' Pension Reform Act of 2013 (PEPRA), Miscellaneous employees hired on or after January 1, 2013 shall pay at least 50% of normal cost of pension or what is determined by CalPERS to be the employee contribution rate.
1.2.9 Retirement Tax Deferment. The City shall maintain the IRS Sec. 414(h)(2) provision allowing employees to make employee retirement contributions with pretax (tax deferred) dollars.
1.3 Administrative Leave
1.3.1 Current employees shall receive Administrative Leave of 13.5 days (108 hours) per year beginning July 1st. Unused Administrative Leave as of June 30 shall be paid off at the regular rate of pay the succeeding month.
1.3.2 Employer shall pro-rate Administrative Leave up to a maximum of 9 hours per month for new hires and for every month during the fiscal year for which an employee was employed before termination of City service.
DocuSign Envelope ID: 1D4F040C-F344-4A53-94AC-639739723143
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1.4 Overtime Pay
Not withstanding that employees are exempt from the FLSA, upon issuance of a Proclamation of a local emergency by the City Council or the Director of Emergency Services pursuant to Chapter 2 of Title 4 of the Municipal Code, Unit employees are eligible for overtime compensation. Such overtime eligibility shall cease when the City Manager determines that the disaster response has ended.
1.5 Auto Policy
1.5.1 Mileage reimbursement for Unit employees shall be at the Federal IRS allowable reimbursement rate.
1.6 Bilingual Pay
1.6.1 Eligibility for Level I Written and/or Conversational Premium Pay:
In order to receive Level I Written and/or Conversational Bilingual Premium Pay employees proficient in the Spanish language must meet the following criteria:
(a) The employee must pass the City’s bilingual competency test as administered by the Human Resources Department on an annual basis to maintain the premium pay. The City Manager may waive the annual testing requirement for individuals upon
recommendation of the Department Head. Annual basis refers to fiscal year; and
(b) The employee is required to serve as an oral interpreter and provide basic written translations on a regular and on-going basis, as certified by the Department Head
1.6.2 Level I Written and Conversational Premium Pay:
(a) For employees hired after November 1, 2006 the City shall pay a stipend of $250/month, pro-rated for part time employees. (b) Employees eligible for Level I Premium Pay before November 1, 2006 shall receive premium pay equal to five percent (5%) of his/her base salary as of November 1, 2006, with the premium rounded to the nearest dollar, and exclusive of any retroactive wage increases provided under this agreement. A list of each employee’s premium pay under this section will be provided to the Unit. Employees who receive the five percent premium, DocuSign Envelope ID: 1D4F040C-F344-4A53-94AC-639739723143
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above, may irrevocably opt into the $250/month stipend specified in (a) above.
1.6.3 Level I Conversational Only Premium Pay:
(a) For employees who become eligible and receive Level I Bilingual Conversational Premium Pay on or after July 1, 2013 the City shall pay a stipend of $75/month, pro-rated for part-time, regular employees.
(b) Employees currently receiving Level I Written and
Conversational Bilingual Premium Pay pursuant to Section 1.8.2 shall continue to receive the premium pay.
1.6.4 Level II Bilingual Translator Premium Pay:
In addition to the Level I stipend for Written and Conversational bilingual competency the City will designate a limited number of staff as Level II Bilingual Translators. Such Level II Bilingual Translators shall perform written translations that are viewed by a large audience of City residents (i.e. City mailers, City Council minutes, inserts in City utility bills, etc.). Level II Bilingual Translators must meet all requirements under Level I prior to applying for Level II consideration. (a) Qualified Level II Translators shall receive the Level I stipend as outlined in 1.8.2 (b) and an additional $100/month.
(b) To evidence competency as a Level II Translator, employees must pass a skills-based test administered by the City to demonstrate competency in written translation.
1.7 Notary Pay
Employees authorized by their department head to act as a notary for official City business shall receive an additional seventy-five ($75) dollars per month pay. This provision will become effective on the payroll period with a beginning date on or after July 1, 2013.
1.8 Longevity Pay
Any employee with at least 10 years as a regular, benefitted Watsonville employee shall receive a one percent (1%) Longevity Pay Premium. Any employee with at least 15 years as a regular, benefitted Watsonville employee shall receive an additional one-half percent (.5%) Longevity Pay Premium.
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Longevity pay will become effective the first full pay period after ratification of the MOU by both the Managers Group and the City.
1.9 Deferred Compensation
Employees may participate in the Deferred Compensation Plan currently.
Employees must contribute to a deferred compensation plan in order to receive the following matching City contributions. The City will match contributions of up to $50 per paycheck to the deferred compensation plan offered by the City effective in the first full pay period after July 1, 2023.
2.0 INSURANCE
2.1 Health Insurance
2.1.1 The City shall maintain in effect current health insurance coverages for all full-time Unit employees in the competitive and general services.
2.1.2 The City shall contribute the following monthly amounts towards health insurance coverage for full time employees defined above in Section 2.1.1
Per employee $1,230.50
2.1.3 If plan contribution increases are necessary for the 2023,2024, and 2025plan years, the City and Employees contribution shall be shared equally, provided that increased City and Employee contributions do not exceed $45/month per employee. Increases above $45/month cap are subject to meet and confer process.
Should insurance plan changes result in City costs below current costs, the intent of the parties is that the savings shall benefit both the bargaining unit and City equally.
2.1.4 Regular part-time employees will be fully covered at the employee only level at the City's expense. The employee shall have the option of covering additional dependents at their own expense. This shall be determined by utilizing the three tier rate which the City has established for the COBRA and other purposes (less any surcharges). To cover one (1) dependent, the employee will pay the difference between the employee only rate and the employee plus one rate. To cover the family, the employee will pay the difference between the employee only rate and the full family rate under the three tiers.
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The decision to cover family members shall be made during a one time election when this provision becomes effective. Thereafter, employees may only add or delete family members in accordance with plan rules.
2.1.5 For any member of the Unit who uses all leave due to illness or injury, which is not a Workers' Compensation claim, the City shall maintain the health insurance coverage and pay the premium on behalf of the member for an additional thirty (30) days.
2.1.6 The City and the employees agree to jointly participate in the City Employees Health Committee (CEHC) as outlined in the bylaws dated July 1992.
2.2 Excess Disability Insurance
2.2.1 In the event of job-related injury or illness, the employee will receive the maximum weekly Workers' Compensation benefit as determined by State law. This does not supersede Workers' Compensation laws relating to Public Safety employees.
2.2.2 In addition to this amount, the employee may receive an appropriate amount of accrued sick leave pay to provide for the difference between the established Workers' Compensation amount and the employee's regular gross pay.
2.2.3 The employee may also receive $50.00 per week extra disability coverage in lieu of accrued sick leave pay.
2.2.4 In no event shall the combination of Workers' Compensation benefits exceed the regular gross pay of the affected employee.
2.2.5 It shall be the responsibility of the employee to notify the Finance Department within three (3) days of the injury or illness if the extra coverage option described in Section 2.2.3 above is to be implemented.
2.2.6 Absent notification to the contrary, the Finance Department will automatically apply accrued sick leave with the established Workers' Compensation amount to equal the employee's gross pay.
2.2.7 The $50.00/week excess coverage shall not apply until the seventh (7th) calendar day following injury or illness event.
2.3 Long Term Disability Insurance
The City shall continue paying the Long Term Disability Insurance premium for the Unit members for the term of the agreement.
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2.4 Life Insurance
Life insurance coverage is Fifty ($50,000) Thousand Dollars for all Unit employees and Two Thousand ($2,000) Dollars per dependents.
3.0 LEAVES
3.1 Vacation Leave
1st year 12 days
2nd year 13 days
3rd year 14 days
4th year 15 days
5 - 10 years 16 days
11+ years 22 days
3.1.1 Employees with more than two (2) times their annual vacation accrual on the books shall bring their accrual within the accrual maximum by December 31, 2017. After one year of service, each employee will be expected to take during each year the vacation to which he/she is entitled.
After December 31, 2017, when an employee’s vacation balance reaches two times their annual vacation accrual, the employee will not accrue vacation until the vacation balance is below the accrual maximum. If an employee is denied requested vacation due to the needs of the City, the department must send a memo explaining the situation for consideration by the City Manager prior to the employee reaching the maximum accrual. Only the City Manager may grant temporary exceptions to this section in extraordinary circumstances.
3.2 Holidays
There shall be fourteen (14) holidays per year as specified below:
January 1 (New Year's Day)
January 21 (Martin Luther King Day)
Lincoln's Birthday (Floating holiday)
Third Monday in February (Washington's Birthday)
March 31 (Cesar Chavez Day)
Last Monday in May (Memorial Day)
July Fourth
First Monday in September (Labor Day)
November 11 (Veterans Day)
Thanksgiving Day
Friday following Thanksgiving (in lieu of Election Day) December 24 (in lieu of Admission Day)
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December 25 (Christmas Day)
December 31
Recognized holidays which fall on Saturday shall be observed on the preceding scheduled work day. Recognized holidays which fall on a Sunday shall be observed on the following scheduled work day.
There will be one (1) floating vacation day credited to each employee on Lincoln's Birthday, which may be taken pursuant to the City's leave regulations.
3.3 Sick Leave
3.3.1 Each employee shall accrue sick leave in the amount of one and one quarter (1-1/4) days per month of service (10 hours). Sick leave is payable per City Personnel Rules and Regulations.
The maximum accumulation of unused sick leave is 125 days (1,000 hours). Sick leave accumulated in any calendar year in excess of 125 days (1,000 hours) shall be paid at the rate of 50% of such excess on the first payroll of December. The balance of such unused sick leave is lost and the sick leave accrual is reduced to 125 days (1,000 hours).
3.3.2 Unused sick leave may not be used to delay the date of an employee's disability retirement.
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4.0 ENACTMENT
This MOU shall become effective upon ratification by the City Council of the City of Watsonville, and shall remain in full force and effect until June 30, 2026, or until a new MOU has been executed.
MANAGEMENT UNIT
Date___________ _________________________________
Jason Panick, Unit Representative
Date___________ _________________________________
Angelica Jauregui, Unit Representative
Date___________ _________________________________
Rob Allen, Unit Representative
CITY OF WATSONVILLE
Date____________ _________________________________
Rene L. Mendez, City Manager
Date____________ _________________________________
City Attorney
Date____________ _________________________________
City Clerk
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Reso No. ______ (CM) 1
Meeting Date: 062723 SWZ ______ RM ______
RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE SUPPORTING THE TRANSITION OF AGRICULTURAL
FIELDS WITHIN A ONE MILE DISTANCE FROM THE CITY’S URBAN
LIMIT LINE TO BE FARMED ORGANICALLY AND REGENERATIVELY
WHEREAS, agricultural production is a vital component of the economy of the City of Watsonville and of Santa Cruz County, employing many people and around in the City of Watsonville; and
WHEREAS, California communities whose residents work and live near conventional agriculture are disproportionately affected by pesticide exposure, which can contaminate our water, soil, air, food, and bodies; and WHEREAS, many of the chemicals used in conventional agricultural berry production such as chloropicrin and 1,3-dichloropropene, are associated with increased risk of cancer, respiratory illness and other health problems, as well as use of multiple insecticides with neurotoxic effects; and
WHEREAS, even with some protections and regulations on application procedures, pesticide use and pesticide drift poses significant health risks for Watsonville residents, many of whom live, work, and attend school within a mile of a field that uses pesticides, and has the potential to harm pets, wildlife, soils, and aquatic resources; and
WHEREAS, a shift of agricultural practices toward methods that restore and preserve healthy soils to promote drought resistance, prevent flooding, and more effectively sequester carbon would help combat the climate crisis; and WHEREAS, organic and regenerative agricultural practices reduce synthetic chemical use, protect human and environmental health, and restore soil
2 Reso No. (CM)
Meeting Date: 062723
microorganisms to decrease water use, reduce flooding runoff, increase nutrient density, and sequester carbon; and
WHEREAS, the USDA organic standard was initially developed by farmers and scientists in Santa Cruz County and local companies including Lakeside Organic, the largest family-owned organic produce distributor in the nation are a source of pride and healthy food for Watsonville; and
WHEREAS, it is estimated that approximately 20% of all farmland in the Pajaro Valley is farmed organically.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
That the City of Watsonville supports and encourages the transition of agricultural fields within a one-mile distance from the City’s Urban Limit Line to be farmed organically and regeneratively, and that the City of Watsonville will work with local, regional, and private organizations to realize this transition.
********************************
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Agenda Report
MEETING DATE: Tuesday, June 27, 2023
TO: City Council
FROM: PARKS & COMMUNITY SERVICES DIRECTOR CALUBAQUIB
PARKS SUPERINTENDENT MEDINA
PUBLIC WORKS AND UTILITIES PRINCIPAL ENGINEER FONTES
SUBJECT: RESOLUTIONS CONSIDERING CONFIRMATION OF DIAGRAMS,
ASSESSMENTS, AND LEVYING ASSESSMENTS FOR FISCAL
YEAR 2023-2024 FOR BAY BREEZE LLMAD NO. PK-03-02, VISTA MONTANA LLMAD PK-03-03, AND GONZALES STREET
ALLEYWAY LLMAD NO. PK-94-1
STATEMENT OF ISSUES:
At the May 23, 2023, City Council meeting, the City Council accepted the Engineer’s Reports and set the public hearing to June 27, 2023. The Engineer’s Reports are on file in the City Clerk’s office.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt:
1. A resolution confirming the diagrams, assessments, and levying the assessments for Fiscal Year 2023-2024 for the Bay Breeze Subdivision Landscaping and Lighting Maintenance Assessment District No. PK-03-02,
2. A resolution confirming the diagrams, assessments, and levying the assessments for Fiscal Year 2023-2024 for the Vista Montaña Subdivision Landscaping and Lighting Maintenance Assessment District (LLMAD) No. PK-03-03,
3. A resolution confirming the diagrams, assessments, and levying the assessments for Fiscal Year 2023-2024 for the Gonzales Street Alley Landscaping and Lighting District (Gonzales LLMAD) No. PK-94-1.
DISCUSSION:
Bay Breeze LLMAD
The Bay Breeze Subdivision is located at the southwest corner of Ohlone Parkway and Harkins Slough Road. The Bay Breeze Landscaping and Lighting Maintenance Assessment District (LLMAD) program includes the following:
1. Maintenance and replacement of the street trees within the subdivision.
2. Operation, maintenance, repair, and replacement of the detention basins and the detention basin access roads within the subdivision.
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3. Operation, maintenance, repair, and replacement of the perimeter fencing around the entire subdivision.
4. Maintenance and replacement of the plantings done as part of the wetland mitigation plan.
5. Maintenance of the environmental management parcel created within the subdivision.
6. Maintenance, repair, and replacement of the landscaping within the public right-of-way abutting and within the subdivision, including the Ohlone Parkway medians.
7. Operation, maintenance, repair and replacement of the sewer pump station.
8. Maintenance of the graffiti coatings on the public exposure of the perimeter walls along the District boundaries.
The Bay Breeze Subdivision LLMAD is comprised of 114 single family residential parcels.
The annual costs for the operation, maintenance, and servicing of landscaping and street lighting improvements are apportioned to each parcel within the District in proportion to the EDU’s (Equivalent Dwelling Unit) assigned to the parcel as a percentage of the total number of EDU’s assigned to all parcels within the District.
Staff is recommending that Council confirm the Diagrams, Assessments, and Levying Assessments, which recommends a 4.9% CPI increase for 2023-24 to maintain the status quo.
Vista Montaña LLMAD
The Vista Montaña Subdivision is located off of East Lake Avenue and adjacent to Ann Soldo Elementary School and the Bay Village subdivision. The Vista Montaña Subdivision Landscaping and Lighting Maintenance Assessment District includes the following:
1. Regular maintenance, repair, and replacement of all facilities within the agricultural buffer area (except the street and utilities) which includes but is not limited to, the landscaping, signage, perimeter wall, retaining walls, pedestrian path and erosion control plantings within or adjacent to the detention basins and drainage swale.
2. Operation, maintenance, repairs, and replacement of and power for the street lighting within the district.
3. Regular maintenance, repair, and replacement of the parkway strip and street trees on Cipres, Roble, Arce, Manzana, Cirvelo, Cereze, and Secoya Streets and Vista Montaña, Franich, and Marcela Drives.
4. Operation, maintenance, repair, and replacement of the storm drain detention basins, drainage channel, drainage facilities, and erosion control measurers within the agricultural buffer, including the storm drain culvert crossing Highway 152 and the inlet structure on the west side of Highway 152.
5. Regular maintenance, repair, and replacement of the landscaping and perimeter wall along the Highway 152 frontage adjacent to the district boundaries, including graffiti removal.
6. Regular maintenance, repair, and replacement of the pedestrian/bike path connecting Secoya Street and McKenzie Avenue, adjacent to the district boundaries.
7. Regular maintenance, repair, and replacement of pedestrian pathways located at the end of Roble Street, at the end of Cirvelo Street, within the agricultural buffer area
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The Vista Montaña Subdivision LLMAD is comprised of two Zones: A and B. Zone A benefits all parcels within the district which includes, for example, the street lighting installed along Highway 152, the landscape improvements along Highway 152 and the agricultural buffer area. Zone B benefits those parcels within the single-family residential area primarily and includes the maintenance of the street end caps, the park strips and street lighting.
The Assessment District is based on a total number of Equivalent Dwelling Units (EDU’s) and maximum annual assessments are included in the Engineer’s Report.
Fees for Fiscal Year 2020-2021 were not increased from the prior year due to concerns from some property owners regarding the quality of service to the landscape strip in front of their homes and who expressed that they did not want an increase to their assessments.
Since then, City staff have held several community meetings with district property owners to present the details of the scope of district services the City provides and the associated budget that limits the City’s work. Staff also provided details regarding the LLMAD’s reserve account, which is currently well below levels needed to afford inevitable repairs as the development nears the 20-year mark. City staff are working with a consultant to develop updated annual maintenance and future replacement costs and a proposed rate increase.
The consultant will assist City staff in sharing the proposal with homeowners to work towards a ballot to increase fees. Two meetings were held on June 15th and June 21st to discuss this, along with the proposed annual rate increase.
Following this meeting, the City will utilize data from our work with the consultant to continue outreach to the community regarding the needs and expectations of maintenance and budgeting including rebuilding the reserve. The City will then move forward with issuing a ballot to determine whether to adjust the fee schedule with expected outcomes as listed above. The property owners will be under no obligation to adopt any increase in recommended assessments unless voted for by themselves. A simple majority would be needed to approve one of the options. A formal ballot would be issued to the property owners so they can vote on it, as required by regulation. Should a fee increase be approved, the process to reapportion assessments while engaging the community is expected to be brought to the Council in Fiscal Year 2024-2025.
Staff is recommending that Council confirm the Diagrams, Assessments, and Levying Assessments, which recommends a 4.9% CPI increase for 2023-24 to maintain the status quo, while the community considers how they wish to move forward long-term.
Gonzales Street Alleyway LLMAD
The Gonzales Street Alleyway LLMAD was established in order to assist the residents bordering the alleyway and adjoining small parcel to cooperatively maintain this parcel that is now owned by the City but benefits its neighbors. The annual cost of $600 to maintain the area was spread among the 17 parcels with one parcel not immediately adjacent to the alley paying slightly less.
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The Assessment District addresses the City Council’s strategic goals of:
03-Infrastructure & Environment
06-Public Safety
FINANCIAL IMPACT:
Bay Breeze LLMAD (0354-958)
In 2022-2023 the assessment was $582.92 per EDU and the total District assessment was $66,453.11.
For Fiscal Year 2023-2024, the total annual assessment per EDU will be increased to $611.48 and the total District assessment will be increased to $69,708 which is the maximum allowed per the Engineer's Report and reflects the increase in the Consumer Price Index of
4.9%. This amount includes $24,547 for annual maintenance and the remainder sum of $45,161 will be placed in a reserve for the replacement of trees, lights, sewer pump station, and perimeter fencing.
Vista Montaña LLMAD (0354-959)
In Fiscal Year 2022-2023 the total annual assessment was $146,475.39. The assessment for single family dwelling units was $534.11 per unit, the assessment for townhomes was $427.29 per unit and the assessment for apartments was $147.34 per unit. For Fiscal Year 2020-21, the total assessment did not change, as Council did not approve the proposed assessments.
For Fiscal Year 2023-2024 the total annual assessment will be increased to $153,651.96 to reflect the 4.9% increase in the consumer price index and includes funds in the amount of $71,442 for annual maintenance and $82,320 for the reserve, which provides for replacement costs of such things as lighting or street trees based on current EDU’s within the district (0354-959). The assessment for single-family dwelling units will be $560.28 per unit, the assessment for townhomes will be $448.22 per unit, and the assessment for apartments will be $154.56 per unit.
Gonzales LLMAD (0291-604)
Of the $600 total annual maintenance costs, $432 of annual maintenance costs are allocated toward plant care, mowing, and/or clearing and $168 of annual maintenance costs are allocated toward general alleyway maintenance.
ALTERNATIVE ACTION:
The Council could elect to:
1. Not confirm the Diagrams, Assessments, and Levying Assessments, thereby not adjusting assessments.
2. Confirm the Diagrams and Assessments, and not confirm Levying Assessments, thereby not adjusting assessments.
ATTACHMENTS AND/OR REFERENCES (If any):
None
Reso No. (CM)
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1 RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE CONFIRMING DIAGRAM AND ASSESSMENT AND
LEVYING ASSESSMENT FOR FISCAL YEAR 2023-2024 FOR THE BAY
BREEZE SUBDIVISION LANDSCAPING AND LIGHTING MAINTENANCE
ASSESSMENT DISTRICT
Assessment District No. PK-03-02
(Pursuant to the Landscaping and Lighting Act of 1972)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. This action does not meet CEQA’s definition of a “project”, because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2. That pursuant to Chapter 3 (California Streets and Highways Code Sections 22620 et seq.) of the Landscaping and Lighting Act of 1972, the City Council directed the City Public Works and Utilities Assistant Director, Engineer of Work for the Bay Breeze Subdivision Landscaping and Lighting Maintenance Assessment District No. PK-03-02, to prepare and file an annual report for Fiscal Year 2023-2024.
3. That the Council on February 21, 2023, adopted Resolution No. 35-23 (CM) directing the filing of the 2023-2024 Annual Engineer's Report for Assessment District No.
PK-03-02.
4. That the Council on May 23, 2023, adopted Resolution No. 84-23 (CM), accepting the Engineer’s Report.
5. That the Council on May 23, 2023, adopted Resolution No. 85-23 (CM), a Resolution of Intention to levy and collect assessments within the assessment district for
Reso No. (CM)
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2 Fiscal Year 2023-2024 and set a public hearing to be held on June 27, 2023, the City Council will conduct a public hearing on the proposed annual assessment. The public hearing will be held at the meeting place of the City Council, located in the City Council Chambers, 275 Main Street, (4th) Fourth Floor, Watsonville, California. Notice of the hearing was given in the time and manner required by law.
6. That at the public hearing, the City Council afforded to every interested person an opportunity to protest the annual report either in writing or orally, and the City Council has considered any such protest.
7. That the City Council hereby confirms the annual report of the Engineer of Work accepted by Resolution No. 84-23 (CM) on May 23, 2023.
8. That the City Council hereby confirms the Diagram and Assessment and hereby levies the assessment set forth on Exhibit “A,” attached herein and incorporated hereto, for Fiscal Year 2023-2024.
*******************************
Exhibit "A"
APPENDIX B
FY 2023-24
ASSESSMENT ROLL
Exhibit "A"
APPENDIX B
Bay Breeze Landscaping and Lighting Maintenance Assessment District Property Owner List and Assessment Roll
Asmnt
No.
APN OWNER Owner Address City ST ZIP Asmnt
Amount
1001 018-601-01 WINTER MICHAEL L & MONICA S H/W JT 116 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1002 018-601-02 SANDS CHRISTOPHER F & WINDY H/W CP RS 112 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1003 018-601-04 CAMACHO JOSE PATRICIO 108 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1004 018-601-05 ARRATIA EDWARD U/M 104 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1005 018-601-06 RAMIREZ PHILLIP NICHOLAS & JENNIFER 100 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1006 018-601-07 LOPEZ DOLORES CASTRO U/W 96 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1007 018-601-10 ALCANTAR MARCELINO & MARIA H/W JT 4 EGRET LN WATSONVILLE CA 95076 $ 611.48 1008 018-601-09 BAKER MICHAEL A & COURTNEY N 8 EGRET LN WATSONVILLE CA 95076 $ 611.48 1009 018-601-08 SAMMS CHARLIE FRANCIS JR & KATHLEEN YEDNAK 1760 HAMES RD APTOS CA 95003 $ 611.48 1010 018-602-01 DIAZ NANCY D U/W JT ETAL 21 EGRET LN WATSONVILLE CA 95076 $ 611.48 1011 018-602-02 SOLORIO ALFONSO & MINA H/W JT 17 EGRET LN WATSONVILLE CA 95076 $ 611.48 1012 018-602-03 BHATNAGAR SANJAY M/M SS 13 EGRET LN WATSONVILLE CA 95076 $ 611.48 1013 018-602-04 ROCHA ARTURO 9 EGRET LN WATSONVILLE CA 95076 $ 611.48 1014 018-602-05 5 EGRET LN WATSONVILLE CA 95076 $ 611.48 1015 018-611-06 MUNIZ JOSE E MORALES 25 YARRO CT WATSONVILLE CA 95076 $ 611.48 1016 018-611-05 RAMIREZ HERMOSILLO CALIXTO 21 YARRO CT WATSONVILLE CA 95076 $ 611.48 1017 018-611-04 VELAZQUEZ ERNESTO SANTIAGO REBOLLAR 17 YARRO CT WATSONVILLE CA 95076 $ 611.48 1018 018-611-01 KAJIHARA KEVIN KENICHI & JEE EUN H/W CP RS ETAL 6 VISTA ST WATSONVILLE CA 95076 $ 611.48 1019 018-611-02 PIMENTEL JORGE & JOSEFINA H/W JT 56 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1020 018-611-03 VILLARREAL ARMANDO C & DEBBIE B H/W JT 52 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1021 018-613-08 COLLAZO ANTONIA 4 YARRO CT WATSONVILLE CA 95076 $ 611.48 1022 018-613-07 PENNINGTON ELIZABETH JULIE 150 FOX CT SCOTTS VALLEY CA 95066 $ 611.48 1023 018-613-06 SANTOS CHAVEZ LUS ENEDINA 12 YARRO CT WATSONVILLE CA 95076 $ 611.48 1024 018-613-05 STRUTHERS EDITHA & JERRY A 16 YARRO CT WATSONVILLE CA 95076 $ 611.48 1025 018-613-04 FERNANDEZ GILBERTO R H/W JT ETAL 20 YARRO CT WATSONVILLE CA 95076 $ 611.48 1026 018-613-03 NANDY RAJEEV 24 YARRO CT WATSONVILLE CA 95076 $ 611.48 1027 018-613-02 GOMEZ CARLOS L & FLAVIA B H/W JT 28 YARRO CT WATSONVILLE CA 95076 $ 611.48 1028 018-613-01 FIGUEROA JOSE LUIS 32 YARRO CT WATSONVILLE CA 95076 $ 611.48 1029 018-613-21 PATEL RAKSHIT V & RUPAL R 4 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1030 018-613-20 BRANDT HERBERT M & TERI L 8 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1031 018-613-19 JUAREZ-CAHUE FRANCISCO H/W JT ETAL 12 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1032 018-613-18 SLADE DIANNE 16 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1033 018-613-17 MACERI EILEEN TRUSTEE ETAL 20 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1034 018-613-16 JENNINGS PHILLIP E & TINA C H/W JT 24 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1035 018-613-15 SANCHEZ ROSA M M/W SS 28 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1036 018-613-14 ORTIZ JUAN C H/W JT ETAL 32 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 Exhibit "A"
1037 018-613-09 DEWALD CELESTE S W/H JT ETAL 20 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1038 018-613-10 MARQUEZ JAIME 16 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1039 018-613-11 SANCHEZ JACARANDA MEDINA 12 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1040 018-613-12 DURAN PEDRO RODRIGUEZ 8 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1041 018-613-13 ELARCO JAIME C & NIEVES H/W JT 4 PELICAN DR WATSONVILLE CA 95076 $ 611.48 1042 018-614-01 HERNANDEZ ROCIA 5 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1043 018-614-02 CARRILLO MIGUEL 9 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1044 018-614-03 ROCHA JOSE G H/W JT ETAL 13 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1045 018-614-04 SALAZAR JUAN B U/M JT ETAL 17 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1046 018-614-05 BAJAN MATTHEW C & MARIA DASILVA H/W JT 21 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1047 018-614-06 CATTERALL LISA G 25 KINGFISHER DR WATSONVILLE CA 95077 $ 611.48 1048 018-614-07 LEMOSS CHRISTIAN D 29 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1049 018-614-08 JIMENEZ REYES & LIDIA H/W JT 33 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1050 018-621-01 TORRES ERNESTO & TERESA F 37 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1051 018-621-02 RETTNER SANDRA 41 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1052 018-621-03 VELEZ VICTOR M & NANCY Y H/W JT 45 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1053 018-621-04 SINGH KARINVIR 49 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1054 018-621-05 LARIOS FORTINO & MARIA 53 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1055 018-621-06 MONCOVICH WILLIAM N & KAREN S TRUSTEES 255 FIELDBROOK LN WATSONVILLE CA 95076 $ 611.48 1056 018-621-07 LARIOS OSWALDO 61 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1057 018-621-08 ERICKSON MARK 3085 AGUAZUL DR SOQUEL CA 95073 $ 611.48 1058 018-621-09 ZHANG XIANG 69 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1059 018-621-10 COLLAZO JULIAN U/M 73 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1060 018-621-11 DRAAYER GERALD F & BAONA G 77 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1061 018-621-12 FERNANDO ELLEN M 244 STANYAN ST SALINAS CA 93907 $ 611.48 1062 018-621-13 GLYNN STEPHEN MICHAEL & JULIE 85 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1063 018-621-14 CHAU KING & MEY C 89 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1064 018-621-15 CONNELL JOSEPH IRI & DEBORAH 93 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1065 018-621-16 FIGUEROA CARLOS & HELEN H/W JT 97 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1066 018-621-17 JIMENEZ JOSE E & MARIBEL H/W JT 101 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1067 018-621-18 WALTERS DAVID BYRON & DINAH ABBOTT 105 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1068 018-621-19 THOMAS ADAM U/M 5167 COLD SPRINGS DR FORESTHILL CA 95631 $ 611.48 1069 018-621-20 ERICKSON MARK 3085 AGUAZUL DR SOQUEL CA 95073 $ 611.48 1070 018-621-21 RAMIREZ EDWARD H/W JT ETAL 117 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1071 018-622-01 LANDRY SEAN R & CYNTHIA M 88 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1072 018-622-02 CHAU YONG C & SUSAN 84 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1073 018-622-03 ZAMORA ARNULFO & MARIA G H/W JT 80 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1074 018-622-04 KRISTICH KRISTO 76 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1075 018-622-05 PRESLEY FLORENCIA SANCHEZ TRUSTEE 72 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1076 018-622-06 GALVAN ALFONSO & SUSANA C H/W JT 68 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 1077 018-622-07 ANTONINO ROBERT & CHRISTINA M 64 KINGFISHER DR WATSONVILLE CA 95076 $ 611.48 Exhibit "A"