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HomeMy WebLinkAboutAgenda Report - December 21, 1988 (96)� y Q` iQ �"C I TY O vi`��i DEPARTMENT TO: City Council FROM: City Manager OOI✓TNCIL C0 YIUNIC:�TTiON MEETING DATE: December 21, 1988 AGENDA TITLE: Approve Renewal of White Slough Lease Agreement with Alfred B. Bechthold, Area Located at 12751 North Thornton Road, and Authorize the City Manager and City Clerk to Execute the Agreement RECOMMENDED ACTION: That the City Council authorize the City Manager and City Clerk to execute the attached agreement between the City of. Lodi and Mr. Alfred B. Bechthold, covering the use of a portion of tl-e City's White Slough Property. BACKGROUND INFORMATION: At a regular council meeting of August 3, 1983, the City Council directed staff to renegotiate the lease agreement on a portion of the White Slough Property with our present lessee, Mr. Bechthold. During these negotiations an agreemerrt was made that raised the annual fee from $65.00 per acre/year to $82.00 per acre/year for the period January I, 1984 through December 31, 1988. Additionally, the lessee had agreed to perform at his cost ($30,000+) major land leveling of all land being rented over this five-year period in return for an additional five-year lease rental option. On June 13, 1988, Mr. Alfred Bechthold informed the City of his desir-e to renew the current lease under the five-year renewal option in the existing lease agreement. Mr. Bechthold has land leveled all farmable land, with the exception of a 44 -acre parcel, which is now being accomplished. Under the current lease agreement, Mr. Bechthold is leasing 421 acres• Included in this acreage are two areas that are unfarmable and useleUs to'Mr'.'Bechthold. One area is a former entrance road from Thornton Road and dead -ending into the east side of I-5. The second area, located on the east side of the freeway on the City's south property line in which two trunk lines (33" Industrial and 48" Domestic Sewers) were constructed at such a shallcw depth that the land cannot I.e cultivated. These two areas-, totaling 3 acres, are being excluded council conniunica-;--n December 2M 1988 Page 2' Additionally, the Public Works Department has negotiated the following increasing rental rate with Mr- Bechthold: L E ?. S E THIS LEASE, made and entered into this day of 1988, by and between the CITY OF LODI, a municipal corporation, hereinafter called Lessor, and ALFRED B. BECHTHOLD, hereinafter called Lessee: W I T N E S S E T H agrees to ,cay to Lessor as rent for the demised premises, the following amounts YEAR AC YR TOTAL ACRES ANNTJAL RENT 1989 $ 96 418 $37,620 ?990 S 95 418 $39,710 11991 $10'} 418 $41,800 1992 $105 418 $43,890 1993 $110 418 $45:980 4. OP�'ION TO RENEW LEASE: Provided Lessee has complied with all of the terms and conditions of this Lease on h i s p art to be performed, Lessor hereby grants t o Lessee an exclusive option to renew this Lease, subject to the same uses and conditieas for the additional term of five (5) years and joint agreement on a renegotiated rental price, r,. thereof, it is understood and agreed by the parties hereto that Lessee shall be required to accept all industrial wastewater and all domestic sludges (approximately Three Hundred Million [300,000,000} gallons and Two Thousand 12,0003 dry tons of sludge per year respectively) from Citzr's Whits Slough Water pollution Control Facilities. Lessor will also make available all excess domestic effluent, at no cost to the Lessee, it is further understood and agreed by Lessee that Lessee must comply with all present and fuiure laws, ordinances, rules, and regulations promulgated by any Governmenta?, authority of competent jurisdiction regulating the type of crops that can be grown on 'the properties during the lease term and any extension thereof. Lessee accepts the properties with the full understanding that the California Department of Health Services regulations (Title 22, Division 4) will limit Lessee to growing only fodder, fibre, or seed crops once wastewater and/or sludges are discharged on the properties. Further, lessee shall be adjacent private or public property, and meet all regulations imposed by all governiiental 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 tines, or in the manner herein provided, or fail. to comply with or perform any 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 reason of such default, 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 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 sub -tenant, shall carry Worker'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 Citches located on the properties. Lessee shall further be responsible, at his sole cost and expense, for maintaining and repairing all improvements located on the properties, including, but not limited to, all buildings, canals, corrals, »ad other improvements of any nature whatsoever located on the demises premises. 9. ASSIGNMENT AND SUBLETTING: Lessee shall. not Lessee shall furnish in writing to Lessor the name of any sub -tenant, and any sublease entered into by Lessee shall incorporate the terms, provisions, and conditions of this Lease. 10. ENTRY BY LESSOR: Lessor shall have the right at a 1 1 reasonable times during the term of this Lease to enter the said leased premises for the purpose of examining or inspecting the same. 11. REPAIRS: Lessee shall be solely responsible for a 1 1 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 Teased premises shall be first approved by Lessor before the same is made. All alterations, additions, and imprOvQMaSts: 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. 12. SURRENDER OF PREMISES: Lessee shall, at t h e may be imposed upon the business of Lessee or his sub -tenant conducted upon the premises. If any of the above charges are assessed against the ramal 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. 14. UTILITIES: Lessee agrees to pay during the term hereof, all utilities of any nature whatsoever used upon said leased premises except for the run-off collection system located on the property. 15. WASTE: Lessee shall not maintain or commit, nor suffer to be maintained or crVMti *'toy any nuisance or waste in or about said leased premises, nor do or permit anything to be done in or about said premises, nor keap 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, 17. 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 wnatsoever caused any person, or to the property of any person, occurring during the term thereof, 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 harmless agreement shall include indemnity against all costs and expenses, including attorney's fees incurred in or in connection with'any such.; claim or F roceeding brought thereon and the defense thereof Lessee agrees to maintain in full force 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 indemnify 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 part of Lessee, or Lessee's agents or employees. The minimum limits o'L such insurance shall be $500,000.00/$1,000,000.00 (Five Hundred Thousand Dollars/One Zillion Dollars). In addition to the Additional Named Insured Endorsement on Lessor's policy ofL Insurance, said insurance policy shall be endorsed to include the following language= "Such insurance as is afforded by the endorsement for Additional Insureds shall apply as primary insurance. Any other insurance maintained by the City of Lodi or its officers and employees shall be excess only and not contributing with the co-insurance afforded by this endorsement." A duplicate or certificate of said public liability and property damage insurance policy containing the above -stated required endorsements shall be delivered to E Lessor within 10 (ten) days after the issuance and each renewal of said policy. This paragraph, and all other insolvency, or receivership proceeding shall not be dismissed within 90 (ninety) days, then Lessor may, without notice or demand, terminate this Lease and forthwith re-enter and repossess the properties, and remove all persons therefrom, and under no circumstances, shail this Lease be assignable or transferable by operation of law. 19. EMINENT DONIATN: 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 as to,that portion taken, and the reotal thereafter due or payable shall be reduced for the portion taken at the rental rate per acre then in effect. 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 Lessee for loss of business, business leasehold improvements and crops. Court in such suit and added to, and become a part of the judgment therein. 21. WAIVER: Failure of Lessor to insist upon performance 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. 22. ACCEPTANCE OF LEASEHOLD ESTATE: Lessee has examined the leased premises; knows the conditions thereof; and accepts possession thereof in their condition. 23. TERMINATION OF LEASE: A. By Lessee - Lessee shall be permitted to terminate this Lease at his option in the event governmental laws, rules, E' regulations., including, but not limited to those promulgated by the California Department of Health any individual year covered under this lease. Lessee shall be responsible for all rents due for the entire calendar year in which such notice is given. B . By Lessor. Lessor may terminate this lease if it determines, in its sole discretion, that the demised premises are necessary for the expansion or modification of the White Slough Water Pollution Control Facility. In such cases, the Lessor shall give to the Lessee six (6 ) months written notice thereof, and rent shall. be prorated for the year. 24. CONTRACT: This written agreement constitutes the entire contract between the Lessee and Lessor, and no representation or agreement, unless expressed herein, Ahall be binding on the Lessor or Lessee, 25. ACCESS: Lessee shall be permitted reasonable or underletting of said leased premises or any part thereof. IN -WITNESS WHEREOF, Lessor and Lessee have executed this Lease on the date acid year first above written. CITY OF LODI, a municipal corporation Hereinabove called "Lessor" By + THOMAS A. PETERSON City Manager Attest: ALICE M. REIMCHE City Clerk ALFRED B. BECSTHOLD Hereinabove called "Lessee"