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CITY CO[TNCIL'M6E'TING
OCTOBER /9, 1983
APFWVAL OF
Following introduction of the matter by Public Works
W ITE SLOUGH
Director Ror sko , Council, on mo t ion
of Come i 1 N1e+rbe r
LEASE AGREHA I'
Pinkerton, Snider second, approved
the proposed White Slough
Lease Agreement with Al Bechthold
and authorized the City
Nlanager and City Clerk to execute
the subject agreement on
behalf of the City.
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oCITY OF LODI
PUBUC WORKS DEPARTMENT
TO: City Council
FROM: City Manager
4
COUNCIL COMMUNICATION
DATE:
October
13,
1983
SUBJECT:
Approval
of
White Slough Lease Agreement with Al Bechthold
RECOMMENDED ACTION: That the City Council authorize the City Manager to
execute the attached agreement between the City of Lodi and Mr. Al Bechthold
covering the use of the White Slough property.
BACKGROUND INFORMATION: At the regular Council meeting of August 3, 1983,
the City Council directed the staff to renegotiate the lease agreement on
the White. Slough property with our present lessee Mr. Bechthold. It was
considered to be in the City's bes; interest to renegotiate since we do
have an excellent working relationship with Mr. Bechthold and he is considered
an exceptional lessee.
Attached is the proposed agreement, the concept of which has been reviewed
and approved by the City Attorney. This lease is for five years and would
commence January 1, 1984. The existing lease has a rental amount of $65.00
per acre, whereas under the new lease, the rental has been increased to $82.00
per acre. The lessee has also agreed to perform at his cost ($30,000±) major
land leveling all of the land being rented over a 5 -year period in return
for an additional 5 -year lease rental option. This proposed landleveling
will definitely increase the future value of this White Slough property.
The total annual rent unde• the new agreement will be $34,522.00 for 421
acres of pasture and agricultural land. It should be pointed out that the
use of the land is restricted and regulated by the State Health Department
since the land is being irrigated by plant effluent.
The format of the new lease agreement will start on January 1, 1984, and
terminate on December 31, 1984, rather than per the old agreement, which was
November 1 to October 31.
It is felt that the above conditions are equitable, fair and in the City's
best interest and it is therefore recommended that the Council approve
nd authorriz a ty Manager to execute the attached agreement. a
Tc0�
acL.Ronsko
orks Director
Attachment cc: Water/Sewer Supervisor
JLR:dmw Mr. Al Bechthold
APPROVED: FILE NO.
HENRY A. GLAVES, City Manager
THIS LEASE, made and entered into this day of
October, 1983, by and between the CITY OF LODI, a municipal
corporation, hereinafter called 'LESSOR", and ALFRED B.
BECHTHOLD, dealing with his sole and separate property, herein-
after called "LESSEE";
W I T N E S S E T H:
1. PROPERTIES: That for and in consideration of the
rents to be paid, and the covenants to be faithfully kept and
performed by the said Lessee, the said Lessee does hereby
lease, hire, and take from the said Lessor, those certain
properties described as follows:
Those certain properties described in Exhibit "A"
attached hereto, and by this reference, made part
hereof. Property to be leased totals 431 acres.
2. TERM: The term of this Lease shall be for a period
of Live (5) years and two (2) months, commencing November 1,
1983 and terminating at midnight on December 31, 1988.
3. RENT: 1n consideration of said Lease, Lessee agrees
to pay to Lessor, as rent for the demised premises;, the sum of
$82.00 per acre per year, during the initial five-year
two-month term hereof. The rental for the months of November
and December will be $2,876.83 per month and will be paid on or
prior to November 1, 1983, and December 1, 1983. Yearly rental
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shall then be paid annually, to wit: The sum of $34,522.00 on
or before January 1 of each year during the initial term
thereof.
4. OPTION TO RENEW LEASE: Provided Lessee has complied
with all of the terms and conditions of this Lease on his part
to be performed, Lessor hereby grants to Lessee an exclusive
option to renew this Lease, subject to the same uses and
conditions for the additional term of five (5) years and joint
agreement on a renegotiated rental price. Lessee must notify
Lessor, in writing, of his intention to exercise this
successive five-year option at least six (6) months prior to
the expiration of the initial term, or six (6) months prior to
the expiration of any additional term.
In the event Lessee fails to exercise his option to
renew this Lease for the period January 1, 1988 to December 31,
1993, the Lesnee shall, on or before December 31, 1988 furnish
to Lessor a Quitclaim Deed to the properties leased.
5. USE: The properties shall be used solely for the
purpose of pasturing cattle or growing, cultivating,
fertilizing, irrigating. and harvesting of agricultural crops.
During the initial term of this Lease, and any extension
thereof, it is understood and agreed by the parties hereto that
Lessee shall be required to accept all industrial wastewater
from City's White Slourlh sewer treatment facilities
(approximately 300 million gallons per year). Lessor will also
make available all excess domestic effluent, at no cost to the
Lessee, upon the Lessee's request.
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It is further understood and agreed by Lessee that
i
Lessee must comply with all present and future laws, ordi-
nances, rules, and regulations promulgated by any Governmental
authority of competent jurisdiction regulating the type of
crops that can be grown on the properties during the lease terni
and any extension thereot. Lessee accepts the properties with
the full understanding that the present State Department of
Health regulations will limit Lessee to growing only fodder,
fibi:e, or seed crops once wastewater is discharged on the
properties. Further, Lessee shall be permitted to use the
properties for any use consistent with the terms of the within
Lease and those uses permitted by all governmental authorities,
including, but not limited to, the California State Department
of Health. Further, Lessee agrees to manage the irrigation of
the properties with industrial wastewater and treated effluent
from the White Slough plant in such a manner that it will not
allow the discharge of runoff water to White Slough and meet
all regulations imposed by all governmental authorities having
proper jurisdiction, including, but not limited to, the Central
Valley Regional Water Quality Control Board. Lessee shall use
and occupy said premises in a quiet, lawful, and orderly
manner. Lessor and Lessee further agree that they shall permit
no hunting, fishing, or public access to any part of the
properties, including Lessee.
6. REMEDIES ON DEFAULT: Should Lessee fail to pay any
part of the rents herein specified, at the times, or in the
manner here.n provided, or tail to comply with or pertorm any
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other of the terms and provisions of this Lease on the part of
Lessee to be performed or complied with, then, and in that
event, Lessor may exercise any and all remedies provided by law
or equity by redlson of such dei.ault, including the right, at
Lessor's option, of terminating this Lease. In any of such
events, Lessor shall be entitled to the immediate possession of
said leased premises,. and, at its option, may enter into, and
upon, said premises, without notice to Lessee, and exclude
Lessee and all persons and all property therefrom, and by
process of law, or otherwise, take and resume possession of
said premises. Each and all of Lessor's remedies shall be
construed as cumulative, and no one of them as exclusive of the
other, or as exclusive of any remedy provided by law or equity.
7. RELATIONSHIP OF PARTIES: It is understood and
agreed that the relationship between the parties is that of
landlord and tenant and not as a party or agent of Lessor.
Lessee, or his subtenant, shall carry workmen's compensation
insurance and observe all laws and regulations applicable to
employers.
8. DITCH, ROAD, AND PROPERTY MAINTENANCE: Lessee shall
maintain and pay all costs of maintaining the irrigation lines,
ditches, fences, and all access roads located on the
properties. Lessee, at his sole cost and expense, shall
provide an adequate drainage system and agrees to cause to be
cleaned within a reasonable time, when requested by Lessor to
do so, the drainage ditches located on the properties. Lessee
shall further be responsible, at his sole coat and expense, for
at
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maintaining and repairing all improvements located on the
properties, including, but not limited tc�, all buildings,
canals, corrals, and other improvements of any nature
whatsoever located on the demised premises.
9. IMPROVEMENTS BY LESSEE: The Lessee agrees :o
perform landleveling of all the properties being leased, over
the initial term (5 -year period) of this lease.
10. ASSIGNMENT AND SUBLETTING: Lessee shall not assign
this Lease, in whole or any part, without first obtaining the
written consent of Lessor. Lessee shall be permitted to sublet
the properties to a responsible person, firm, or corporation,
but any such subletting or use by another person, firm, or
corporation shall in no way release Lessee from the obligation,
conditions, and terms of this Lease. Lessee thall furnish is
writing to Lessor the name of any subtenant, and any sublease
entered into by Lessee shall incorporate the terms, provisions,
and conditions of this Lease.
11. ENTRY BY LESSOR: Lessor shall have the right at
all reasonable tunes during the term uf this Lease to enter the
said leased premises for the purpose of examining or inspecting
the same.
12. RFPAIRS: Lessee shall be solely responsible for
all repairs to the properties. Lessee shall. notify Lessor, in
writing, of any alterations, or additions, to the leased
premises, and major alterations, or any alteration that would
interfere with Lessor's wastewater discharges on the leased
premises shall be first approved by Lessor before the same is
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made. All alterations, additions, and improvements made in,
to, or on the demised premises, shall, immediately upon the
installation thereof, become, and be, the property of the
Lessor, and shall remain upon, and be surrendered with, the
premises.
13. SURRENDER OF PREMISES: Lessee shall, at the
termination of the term hereby created, or upon the earlier
germination hereof for any reason, or upon the extension of the
r term herein set forth, quit and surrender said premises in good
i., order, condition, and repair, reasonable wear and tear and acts
of God or fire excepted.
14. FEES: Lessee shall pay all license fees, or other
tees, levied by any governmental agency which may be -imposed
upon the business of Lessee or his subtenant conducted upon the
premises.
If any of the above charges are assessed against the
real property, and because of said assessment, the Lessor pays
the same, which Lessor will have the right to do regardless of
the validity of any such levy, the Lessee, upon demand, will
repay to the Lessor all taxes and other assessments so levied
against the Lessor which are due by the Lessee.
15. UTILITIES: Lessee agrees to pay during the term
hereot, all utilities of any nature whatsoever used upon said
leased premises exceF. for that sump return pump located on the
south property line.
16. WASTE: Lessee shall not maintain or commit, nor
suffer to be maintained or committed, any nuisance or waste in
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or about said leased premises, nor do or permit anything to be
done in or about said premises, nor keep anything therein,
which will in any way conflict with any law, ordinance, rule,
or regulation affecting the occupancy and use of said premises,
which have been, or may hereafter be, enacted or promulgated by
any public authority.
17. MECHANIC'S LIEN: Lessee agrees to keep said
premises free from all liens and claims of mechanics, laborers,
materialmen, and others for work done, and materials furnished,
and Lessee shall not create, or suffer to be created, any lien
or encumbrance on said premises.
18. PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE:
Lessee agrees to indemnify and save harmless Lessor from and
against all claims of whatever nature, arising from any act,
omission, or negligence of Lessee or Lessee's contractors,
licensees, agents, servants, or employees, or arising from any
accident, injury, or damage whatsoever caused any person, or to
the property of any person, occurring during the term hereof,
in or about the demised premises where such accident, damage,
or injury, including death, results, or is claimed to have
resulted, from any act or omission on the part of Lessee, or
Lessee's agents or employees. This indemnity and hold '.armless
agreement shall include indemnity against all costs and ex-
penses, including attorney's fees incurred in or in connection
with any such claim or proceeding brought thereon and the
defense thereof.
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Lessee agrees to maintain in full farce during the term
hereof a policy of public liability insurance under which
Lessee is named as insured, and containing an Additional Named
Insured Endorsement naming Lessor as an additional insured, and
under which the insurer agrees to in`entnify and hold Lessee and
Lessor harmless from, and against all costs, expenses, and
liability arising out of, or based upon, any and all property
damage, or damages for personal injuries, including death,
sustained in accidents occurring in or about the demised
premises; where such accident, damage, or injury, including
death, results, or is claimed to have resulted, trom any act or
omission on the part of Lessee, or Lessee's agents or employ-
ees. The minimum limits of such insurance shall be
$500,000.00/
$1,000,000.00. In addition to the Additional Named Insured
Endorsement on Lessor's policy of insurance, said insurance
policy shall be endorsed to include the following language:
"Such insurance as is afforded by the endorsement
for the Additional Insureds shall apply as
primary insurance. Any other insurance main-
tained by the City of 7.odi or its officers and
employees shall be excess only and not contribut-
ing with the coinsurance afforded by this en-
dorsement."
A duplicate or certificate of said public liability and.
property damage insurance containing the above --stated required
endorsements shall be deiivered to Lessor within ton 110) days
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ft ON
after the issuance and each renew al of said policy. This
paragraph and all other provisions of this Lease, shall apply_
and be construed as applying to any subtenant of Lessee.
19. BANKRUPTCY, RECEIVERSHIP, AND INSOLVENCY: it
Leasee should make a general assignment for t':e benefit of
creditors, or file a voluntary petition in ban;:ruptcy, or be
adjudicated bankrupt or insolvent, or permit a receiver to be
appointed to take possession or a substantial portion of his
assets or of this leasehold, and such bankruptcy, insolvency,
or receivership proceeding shall riot be dismissed within ninety
(90) days, then Lessor may, without notice or demand, terminate
this Lease and forthwith re-enter and repossesQ the properties,
and remove all persons therefrom, and under no circumstances,
shall this Lease be assignable or transferable by operation of
law.
20. EMINENT DOMAIN:* If the whole or any portion of the
premises hereby leased shall be taken by any public authority
under the power of eminent .domain, whether by negotiation or
otherwise, then the term of this Lease shall cease as of the
date possession is taken by such authority is to that portion
taken, and the rental thereafter due or payable shall be
reduced for the portion taken at the rental rate per acre then
in affect. All damages awarded for such taking under the power
of eminent domain, whether for the whole or a part of the
leased premises, shall be the property of Lessor. Provided,
however, that Lessor shall not be entitled to any award made to
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Lessee for loss of business, business leasehold improvements
and crops.
21. ATTORNEY'S FEES: In each suit brought for the
recovery of any rent due hereunder, or for the recovery of the
possession of said demised premises, or for the breach, or to
restrain the breach, of any of the terms, conditions, or
covenants of this Lease, the prevailing party shall be entitled
to a reasonable sum as and for attorney's fees therein, the
amount of which shall be determined by the Court in such suit
and added to, and become a pert of the judgment therein.
22. WAIVER: Failure of Lessor to insist upon perfor-
mance of any of the terms or conditions of this Lease in any
one or more instances shall in no event be construed as a
waiver or a relinquishment of its right to future performance
thereof, and Lessee's obligations to such future performance
shall continue in full force and effect. The receipt by Lessor
of rent, the knowledge of the breach of any agreement or
condition hereof, shall not be determined to be a waiver of any
such breach.
23. ACCEPTANCE OF LEASEHOLD ESTATE: Les:4ee has ex-
amined the leased premises; knows the conditions thereof; and
accepts possession thereof in their condition.
24. LESSEE'S OPTION TO TERMINATE LEASE: Lessee shall
be permitted to terminate this Leasa, at his option, in the
event governmental laws, rules, or regulations, including, but
not limited to, those promulgated by the California State
Department of Health, prohibit the growing of any crop on the
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properties. In the event Lessee terminates this Lease as above
provided, rent shall be prorated to date of termination.
Lessee shall be permitted to terminate this Lease for
whatever reason if 6 mont"' :.' prior notice is given to Lessor.
Rent shall be prorated to date of termination.
25. CONTRACT: This written agreement constitutes the
entire contract between the Lessee and Lessor, and no represen-
tation
epresen-tation or agreement, unless expr ,ssed herein, shall be binding
on the Lessor or Lessee.
26. LESSEE shall be permitted reasonable access o?,er
adjacent City property owned by Lessor for ingress and egress
purposes.
27. BINDING ")N HEIRS: This Lease shall include and
inure to, and bind the heirs, executors, administrators,
successors, and. assigns of tht: respective parties hereto, but
nothing in this paragraph contained shall be construed to
modity or imjair in any manner any of the provisions and
restrictions of this Lease relating to the assignment of this
Lease, or of any interest therein, or to the subletting or
underletting of said leased premises or any part thereof.
-11-
IN WITNESS WHEREOF, Lessor and Lessee have executed this
Lease on the date and year first above written.
CITY OF LODI, a municipal corporation
By
Henry A. G ayes
City Manager
Hereinabove called "LESSOR"
Attest:
Alice M. Re me e, City Clerk
Alfred B. Bec t o
-11
Hereinabove called "LESSEE"
MYIC
a) CITY OF LODI
COUNCIL COMMUNICA7iQN
TO: City Council
FROM: City Manager
DATE: July 26, 1983
S OBJECT: Renegotiation of White Slough Lease Agreement with Mr. AI Bechthold
RECOMMENDED ACTION: That the City Council authorize the staff to start
renegotiation of the lease agreement on the White Slough property with
the present lessee, Mr. Bechthold.
BACKGROUND INFORMATION: Attached is a letter from Mr. Bechthold, dated
May 12, 1983 requesting to renegotiate the existing lease which terminates
November 1, 1983.
Mr. Bechthold has been an excellent lessee the past ten (10) years, and has
made many permanent improvements to the City property, such as nine (9) miles
of new fencing and 14 permanent gates. He has been co:;siderably handicapped
over the past three (3) winters due to flooding of some 175 acres of the 434
presently leased. Mr. Bechthold has assisted City staff members in requesting
the State of California to cease and desist the annual threatening flood waters.
The City's major concern is to laase to a party who will be able to work.with
us in using the plant effluent for irrigation at those times that it must be
released. We have an excellent working relationship with Mr. Bechthold. and
he has cooperated and worked with us in every way possible. Mr. Bechthold is
considered an exceptional lessee.
This item is brought to the Council to consider authorizing the City staff to
start negotiating for a new lease agreement. It is felt that it is in the City's
best interest to negotiate with Mr. Bechthold now in order that a new agreement
can be approved prior to November 1983. This would allow Mr. Bechthold to
continue to make permanent improvements to our property and would assure us of
a lessee whom we know can work -...ith us under the terms of the agreement.
If you have any questions concerning this matter,
Council meeting.
,Jac L. Ron:,ko
ub is Works Director
cc: Water/Sewer Supervisor
APPROVED:
I'll answer them at the next
r
' J
Lima Ranch RECEIVED
13136 N. THORNTON ROAD
1383 JUL 15 A{ g: 41
LOD1. CALIFORNIA 15240
ALICEM. RENCHE
C1Y CLERK
CITY OF LO01
July 14, 1983.
City Manager
Henry Glaves
P.O. Box 320
Lodi, California 95241
Re: City Property on Thornton Road
Mr. Gloves,
I am very interested in submitting a bid on the City
Pruperty when it comes up for rent. I own rima Ranch,
which is located next to the City land. I also farm 400
acres directly across from the land.
Last winter 100 acres of the land -Aas flooded when the
levee broke; so i am aware of the prob)ems that Gould exist.
I am also aware that the land belongs to the city and their
needs come first.
I would greatly appreciate it if you would contact me
regarding this land.
Thank you very much for your prompt attention to this
matter.
Sincerely,
john Lima
368-6442
y
Lodi City Council
c/o City Clerk
P.O. Boy; 320
Lodi, CA 95241
Dear Council Members:
!_ i3 V, Ai 13 AM 9 rl-)g
'
May
In regards to the .flooding of City property at White Slough,
the ground that is in pasture behind the ponds (approximately
175 acres). For the past three years it has flooded, 1980
and 81 were hard years but the winter of 1982 has been disastrous.
Every time there is an above normal amount of rain this parcel
of land is under water. Not only is it a total loss as feed goes,
but the feeding and health problems of the livestock makes it
almost impossible to operate. The weather prediction is that we
could be in a wet period that could last for thirty yea -s. At my
age, I'm not worried about the thirty, but I am concerned about
the next five. If we have another winter like the last, I know I
couldn't take it financially and most importantly health wise. It
was very hard to sell the cattle that I spent years to build up
but I had no choice. It was either sell them for salvage value
or buying more hay and watch them suffer in the mud. I decided
.to sell and the way this spring turned out, it was the right
decision. That is now over, but I would appreciate some consideration
when I re -negotiate the lease in July for the acreage that was out
of production for approximately four months in the years 1980, 81
and 82, through no fault of vours, but the State of California for
not maintaining their levees and drainage ditches.
Sincerely,
ud— fizzb I
Al Bechthold ht Ai
3784 Benjamin Holt Drive
Stockton, CA
May 10, 1983
Cost and losses due to flooding December 22, 1982 to March 25, 1983
Cost of extra hay fed to cattle
2444 bales at $5.00 per bale
Cost of extra labor, 372.5 hours
for two men and equipment at $14.50
per hour
Sprayed 90 acres of alfa'fa for weed
control February 19, 198:. -nd then flooded.
Estimated loss of alfalfa crop for 1983,
$500.00 per acre for the 52 acres that
flooded.
Death of Livestock
2 cattle pairs (cow & calf) $600.00 each
20 calves at $150.00 each
Forced to sell cattle on March 25, 1983 for
salvage value. 160 cows and 140 calves took
a loss of approximately $200.00 per pair.
TOTAL LOSSES
$ 12,220.00
5,401.25
4,196.34
6,000.00
1,200.00
3,000.00
32,000.00
$ 84,017.59
cc -27 (c) LANDS
PARKS