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HomeMy WebLinkAboutAgenda Bill 4A 10/19/2009A A CITY OF PETALUMA, CALIFORNIA ~ ° ~ ~~~~ ~~ October 19, 2009 Agenda Title: Meeting Date: October 19, 2009 Discussion and Possible Introduction (First Reading) of an Ordinance Authorizing an Amendment of Lease PRC 7235.1 and Quitclaim of Lease Meeting Time: 7:00 PM PRC 8449.9 with the State Lands Commission, and Authorizing the City Manager to Execute All Required Documents. Cate~or_y: ^ Presentation ^ Appo' , tments ^ Consent ^ Public Hearing ^ Unfinished Business ®New Business Department: Dare or: Contact Person: Phone Number: Public Works Vinc nt arengo Larry Zimmer 776-3674 Total Cost of Proposal or Proiect: Name of Fund: There is no direct cost related to this action beyond N/A minimal staff time. Account Number: Amount Bnd~eted: $0 Current Fund Balance: Recommendation: It is recommended that the City Council take the following action: Introduce ordinance authorizing an amendment of Lease PRC 7235.1 and quitclaim of Lease PRC 8449.9 with the State Lands Commission, and authorizing the City Manager to execute all required documents. . 1. ^ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ^ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment 3. ^ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: The existing lease .PRC 7235.1 is being amended to increase the allowable volume of material that may be dredged from the Petaluma River annually, remove monetary consideration of the dredge material; and disallow the sale of dredge material. The amendment to PRC 7235.1 makes the existing Lease 8449.9 unnecessary, and it is, therefore, being quitclaimed. Attachments to Agenda Packet Item: 1. Ordinance, including: Exhibit A to Ordinance -Amendment to Lease 7235.1,and Exhibit B to Ordinance -Quit Claim Deed to Lease 8449.9 2. Original Lease 7235.1 and prior amendments 3. Lease PRC 8449.9 Reviewed b Finance Director: Reviewed by City Attorney: A ro ed b ana er: ' ~ ~ -----_ ~ ~ Da ~~p~ . Date: Date: /~ -~3 r d~ Rev. Date Last Revised: File ° is ors - ro~ects s Shollenberger Debris Removal\Design and PM\Agendas\State Lands\AB A'.M & Attach ]State Lands Lease.DOC c CITY ®F PETALUMA9 CALIFORNIA AucusT 3, 2009 AGENDA REPORT FOR .DISCUSSION AND POSSIBLE INTRODUCTIONFIRST READING OF AN ORDINANCE AUTHORIZING AN AMENDMENT O)H' LEASE PRC 7235.8 AND QUITCLAIM OF LEASE PRC X449.9 WITH THE STATE LANDS COMMISSION, AND AUTHORIZING THE CITY lO~ANAGER TO EXECUTE ALL REQUIRED DOCUMENTS 1. RECOMMENDATION: Introduce ordinance authorizing an amendment of Lease PRC 7235.1 and quitclaim of Lease PRC 8449.9 with the State Lands Commission, and authorizing the City Manager to execute all required documents 2. BACKGROUND: In 1988, by Ordinance 1729 NCS, the City executed Lease No. PRC 7235.1 with the State Lands Commission for 13.89 acres adjacent to the Petaluma River, for a term of thirty years, with one ten-year option to extend. The lease allowed the City to dredge up to 300,000 cubic yards of material for disposal at approved sites in connection with construction of the marina, and established a rent schedule. Construction was to be completed in 1991 and annual maintenance. dredging of up to 13,000 cubic yards was permitted. In 1995, a first amendment to the lease was executed to include a fuel dock and pump at the marina, and to adjust the rent retroactive to July 1, 1991. This amendment was authorized by ordinance 1983 NCS. In 1998 Ordinance 207.1 amended the lease a second time regarding a rent increase. Furthermore, in 2003, the City entered into a separate lease with the State Lands Commission, Lease No. PRC 8449.9 ,for property indentified as "the ungranted sovereign land at Petaluma Marina, 7881 Baywood Drive", for aten-year term, commencing on February 18, 2003. This lease permits annual maintenance dredging of up to 24,000 cubic yards with a $.025 royalty per cubic yard, which is waived if the material is disposed of at a Corps of Engineers site. 3. DISCUSSION: The proposed third amendment to Lease, No. PRC 7235.1 is designed to increase the annual maintenance dredging volume from 13,000 cubic yards to 38,303 cubic yards, with no charge for the dredged material and a prohibition of its sale. With the execution of the amendment to Lease No. PRC 7235.1, Lease No. PRC 8449.9 is no longer needed and, therefore, the City's leasehold interest is being quitclaimed to the State of California. 4. I+INANCIAL IMPACTS: There are no financial impacts to the City regarding the execution of the amendment or quitclaim, beyond the staff time involved. 2 G:\Publc Works\FEMA-OESU FEMA Projects\PW's 3348 & 3803 Shollenberger Debris Removal\Design and PM\Agendas\State Lands\AB & Attach 1 State Lands 1_ease.DOC ATTACHMENT 1 ORDINANCE NO. N.C.S. A~)EIORIZING AN AlVIE1VIDIVIENT OF LEASE PRC 7235.1 AMID QUITCLAIIVI OF LEASE PRC 8449.9 WITH THE STATE LANDS CONIIVIISSION AND AUTHORIZING THE CITY 1VIANAGER TO EXECUTE ALL REQ~JIRED IDOCUNIENTS WHEREAS, the City of Petaluma ("Lessee" and "Grantor"), is the lessee of approximately 13.98 acres of real property located adjacent to the Petaluma River in the City of Petaluma, County of Sonoma, California, as authorized by the State Lands Commission ("Lessor" and "Grantee") pursuant to State Lands Lease No. PRC 7235.1, as amended; and WHEREAS, Lessee also leases the ungranted sovereign land at Petaluma Marina, 781 Baywood Drive in the City of Petaluma, County of Sonoma, California, as authorized by the Lessor pursuant to State Lands Lease No. 8449.9; and WHEREAS, Lessee and Lessor propose to further amend Lease No. PRC 7235.1 to increase Lessee's annual maintenance dredging volume from 13,000 cubic yards to 38,303 cubic yards, at no cost for the dredged material and subject to a prohibition of sale of dredged material; and WHEREAS, such amendment to Lease No. PRC 7235.1 eliminates the need for Lessee to continue its interest in Lease No. 8449.9. NOW, T>EIEREk'ORE, BE.IT ORIDAINED BY THE CITY COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. The Recitals are true and correct and adopted as findings of the City Council. Section 2. The action permitted by the lease amendment is categorically exempt from the California Environmental Quality Act pursuant to 14 California Code of Regulations ("CEQA Guidelines") section 15304(g), Minor Alterations to Land, because the activity permitted by the lease amendment consists of the deposit of maintenance dredging spoils in an area authorized for such deposit by all state and federal regulations. Section 3. Lease No. PRC 7235.1 is hereby amended, and the City Manager is authorized to execute the Lease Amendment attached as Exhibit A hereto, the Quit Claim Deed attached as Exhibit B hereto, and all documents necessary to amend Lease No. PRC 7235.1 and to quitclaim Grantor's interest in Lease No. PRC 8449.9 to Grantee. Section 4. If any section,. subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall: not affect the validity of the remaining portions of the ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 5. This. ordinance or a synopsis of it shall be posted and/or published for the period and in the manner required by City charter. Section 6. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. 3 G:\Public Works\FEMA-OES\I FEMA Projects\PW's 3348 & 3803 Shollenbereer Debris Removal\Design and PMWgendas\State Lands\AB & Attach 1 State 'Lands Lease-DOC EXI~I~IT ~4 T® Oft®1IVA6VCE STATE OF CALIFORNIA STATE LANDS COMMISSION AMENDMENT OF LEASE PRC 7235.1 WHEREAS, the State of California, acting through the State Lands Commission, hereinafter called Lessor, and, the city of Petaluma, hereinafter called the Lessee, have heretofore entered into an agreement designated as Lessee PRC 7235.1,. authorized by the State lands Commission on August O1, 1988, with an effective date of July 1, 1988; whereas Lessor granted to said Lessee a General Lease-Commercial Use of certain State Land situated in Sonoma County, and whereas this General Lease-Commercial Use was first executed by and between Lessor and Lessee on Sept 20, 1988; and WHEREAS, Section 2, Paragraph 4(a) authorizes and maintenance dredging of 13,000 cubic yards of material on the lease premises, and to dispose of such material at United states Corp of Engineers' disposal sites or elsewhere as directed by Lessee's District Engineer or other lawful authority; and WHEREAS, Section 2, Paragraph 4(b) provides that there shall be a royalty of $0.25 per cubic yard for material dredged for maintenance purposes that is placed on private or public property and used for any private and commercial benefit; and WHEREAS, on December 7, .1995, Lessor authorized an amendment to said Lease for a fuel dock and pump for marina, effective July 1, 1991; and WHEREAS, it is now the desire of the parties to amend-the foregoing Agreement. NOW THEREFORE, the parties hereto agree as follows: Section 2, Paragraph 4(a): The maintenance dredging. volume shall be increased to a maximum of 38,303 cubic yards annually during the lease .term. Dredged material shall be placed at the U.S. Army Corps of Engineers designated upland disposal Site at Petaluma City dredge Disposal area and/or Winter Island. Section 2, Paragraph 4(b): No monetary consideration shall be charged for the dredged material: The dredged material may not be sold. The. effective date of this amendment to the aforesaid Agreement shall be January 29, 2009. This Amendment is a portion of document number PRC- 7235.1, with a beginning date of .July 1, 1-988; consisting of four sections with a total of eleven pages. All other terms and conditions of the lease shall remain in full force and effect. This agreement will become binding on the Lessor only when duly executed on behalf of the State Lands Commission of;State of California. IN THE WITNESS WHEREOF, the parties hereto .have executed this Agreement as of the date hereafter affixed. 4 G.\Documents and Settings\kcrump\Local Settings\'Cemporar}~ Internet Files\ContenlOutlook\3FJK2x6G\A13 Attach I State Lands Lease.DOC LESSEE: CITY OF PETALUMA By Title: Date: LESSOR: STATE OF CALIFORNIA STATE LANDS COMMISSION By: Title: Date: Execution of this document was authorized by the State Lands Commission on 5 G:~Public Works\FEMA-OES\1 FEMA Projects\PW's 3348 & 3803 Shollenberger Debris Removal\Design and PM\P.gendas\State LandsW6 & Attach 1 State Lands Lease.DOC E)(ll~l'T ~ TO O~®IIt1A1VCE RECORD AT THE REQUEST OF AND'WHEN RECORDED NIA1L TO: STATE OF CALIFORNIA California State Lands Commission Attn: Title Unit l00 Howe Avenue, Suite .100-South Sacramento, CA 95825-8202 STATE OF CALIFORNIA OFFICIAL BUSINESS. Document entitled to free recordation Pursuant to Government Code section 273.83 SPACE ABOVE'THIS LINE FOR RECORDERS USE LEASE QITIT CLAIIVI:I)EEI) WHEREAS, pursuant to lease designated: Lease PRC. 8449.9, executed by the State Lands Commission on August 10, :1998, by and between. the: State of California, acting by and through the. State Lands Commission, as Lessor, and the City of Petaluma, as Lessee; said 'Lessee was granted,. for a term of ten years, .commencing February 18, 2003., the right to use the property herein described for certain purposes specified in the said lease; and WHEREAS, the. dredging of the Lease Premises has been authorized. under two leases: Lease Nos. PRC 7235.1 and PRC 8449.9; and WHEREAS, the total dredgng'volume authorized under Lease. PRC 723:5.1 and Lease No. PRC 8449.9 is _insufficent to allow for safe navigati`on;; and WHEREAS, Lessee has applied to amend Lease PRC 7235:1 to 'authorize sufficient-dredging volume for safe navigation of the lease premises; and WHEREAS, Lessee has indicated its. intent not to renew Lease No. PRC 8449.9; NOW ')<'HEREFORE, the Lessee does hereby remise, release;. -and .forever quitclaim unto the State of California -any and all right, claim, title, or interest arising by virtue of or pursuant to than. certain lease designated Lease -PRC 8449.9, .and approved by the State Lands Commission on January 29, 2009, regarding lands located. Sonoma. County, State of California, and more particularly described in Exhibit A, attached. LESSEE: City ofPetaluma By Title: In witness whereof,.,this Quitclaim Deed is executed this day 6 C:.Allocunients andSettings\kcnimp\Local SettinbsV"Cempo,rary°lnternetFiles\GontenkOutlook\3F_~K2X6G\~B AtCach 1 StateLandsLease.DOC ~~A~:~ ~~~ 151998- "" 1 ORDINANCE NO. 2 071 N.C.S. 2 3 4 INTRODUCED 5 BY COUNCILPERSON SECONDED BY 6 7 g Matt Maguire ~ Mary Stompe 9 10 AN ORDINANCE AUTHORIZINCr-AMENDMENT TO MARINA LEASE WITH T 11 LANDS PROPERTY LOCATED ADJACENT TO PETALUMA RIVER 12 13 14 BE IT ORDAINED BY THE CQiJNCII, OF THE. CITY OF PETALUMA AS FOLLOWS:. 15 .Section 1. The approximately 13.98 acres of real' property located adjacent to the 16 Petaluma River in the City of Petaluma, County of .Sonoma; State of California; is leased~:under 17 terms and conditions set forth in State Lands Lease No.. PRC 723:5.1.executed on September°20, 18 1988, and authorized by the State.Lands Commission on August 10, 1988, and as amended by 19 -First Amendment. 20 21 Section 2. Paragraph 2, Section 1 of State Lands Lease No. PRC 7235.1 is hereby 22 :amended as set forth in Exhibit.A `to this Ordinance. The City Manager is authorized to execute 23 all necessary documents relating to this amendment. 24 25 ~ Section 3. If any section, subsection,, clause or phrase. or word of this ordinance is for ~- X26 ~ any reason held to be unconstitutional by a court of competent jurisdiction; such decision shall not 27 ~ affect the validity of the remaining portions of this ordinance. The City Council of the. City of 28 Petaluma hereby declares that it would have passed and adopted this ordinance and each and all 29 - provisions thereof irrespective of the fact that .any one or :more, of said provisions be declared ~30 unconstitutional. 31 32 Section 4: The City Clerk is hereby directed to post/publish this ordinance for the 33 period and in the manner required by the City Charter. Ord. 2071 NC'S Page 1 of 2 l 1 INTRODUCED THIS list day of June , 1998, 2 ADOPTED this 15th day of June , 1998 BY THE:FOLLOWING VOTE: 3 4. 5 6 AYES: Keller, Torli'at.t, Hamilton, Read, Stompe, Vice .Mayor Maguire, Mayor IjIilligoss 7 8 . 9 NOES: None 10 11 ~~ . 12 ABSENT: None - ~13 .14 15 M. Patricia Hilligoss, Mayor 17 Attest: _ - -Approved: ---- 18 19 -- 20 ~ ,~ . ' ~ 22 atricia E. Bernard; City 3erk City Attorney _- ----_ ~ ~ g_ Ord. 207] NCS Pabe 2 of ~- RECQRDED AT THE REQUEST QF AND: WHEN°RECORDED MAIL TO: STATE OF CALIFORNIA State Lands Commission. .Attn:. Title Unit 1'00 Howe Avenue; Suite .100-South '`Sacramento, CA 9582'5-8202 EX~iIBIT A STATE OF CALIFORNIA OFFICIAL BUSINESS Doeument enti[led to free recordation pursuant to Government Code Section 27383 A.P.N. #'S: 050-060-59 County: SOnoma SPACE ABOVE THIS LINE FOR':RECORDER'S USE STATE OF CALIFORNIA STATE LANDS COMMISSION. AMENDMENT OF LEASE ;PRC 7235:.1 WHEREAS, the- .State of .California, acting through 'the State Lands Commission, hereinafter called. Lessor, and City of :Petaluma; hereinafter called. the Lessee,:.have heretofore entered into an agreement designated as Lease PRC 7235.1 authorized by the State Lands Commission on August 40, 19.88 and executed September 2p; 1988, whereby the. Lessor granted to said Lessee a General Lease -Public Agency Usecovering certain State sovereign lands: situate in Sonoma County; anal WHEREAS, pursuant to Section 4 paragraph 16 (e) Hof said Lease ;and WHEREAS', by reason of the foregoing, it is now'the desire of the parties toamend the foregoing Agreement. NOVV' THEREFORE, the parties hereto agree as follows: Amend.paragraph 2, Section 1 -Consideration of Lease PRC 7235.1 as follows: Minimtam Annual Rental: (a) Lessee shalt pay a minimum annual rent of -$6:,000 in advance beginning July 1, 1998; and every year thereafter for the remainder of the term of this Lease. This minimum annual rent is subject. to modificafi'on by Lessor as specified in Section 4 paragraph 2 (b). 9 Amend :Section 1-Consideration paragraph 9; ''Reports" to read as follows: The Lessee shall submit, on forms approved by the State Lands Commission, an annual report detailing their gross income from boat docks and moorings, and any other income generated from; or on, the Leased.. Premises.. This report shall be accompanied by a Balance Sheet of the Lessee as of the last day covered by the annual report, and an Income Statement. covering the results of Lessee's operations for the year ended on the last day covered by the annual report. These reports shall''be due on .September 30 of each year, unless the Lessee has received, in writing, permission.. from the State Lands Commission for later submission. The first'yearly'report shall be due on September 30, 1998, for the year from July 1, 1997, fhrough June 30:,.199.8. The effective date ofthis amendment to the aforesaid Agreement shall be May 1; 1998. This Agreement will become binding on the Lessor only when duly executed on behalf of the State Lands Commission of the State of California. IN VVITiVESS VVHER'EOF, fhe parties hereto have executed this Agreement as of the date hereafter affixed. LESSEE: .~~ By ~~ F~'°ederick C~ touder Title City Manager Date July 20 , 1.998 By Title Execution of this document was authorized by the State Lands Commission on ~/iW /~q~ STATE OF CALIFORNIA STATE LANDS, COMMISSION Land IVlanagarnent Division ~~ r ~AUG '1 6 1995; ' ' ..~._ ~~ INTRODUCED BY: ORDINANCE NO. .1'983 NCS SECONDED BY: Councilmember Lori Shea Councilmember Jane I~amilton AN ORDINANCE AUTHORIZING AMENDMENT TO MARINA LEASE WITH STATE LANDS PROPERTY LOCATED ADJACENT TO PETALUMA RIVER I3E IT ORDAINED by the City Council of the City of Petaluma., as follows: Section 1. The approximately 13.98 acres of real property located adjacent to the Petaluma River in the City of Petaluma, County of Sonoma, State of California, is leased under terms and conditions .set forth in State Lands Lease No. PRC 7235.1 executed oi~ September 20, 19:88, and authorized by the State Lands Commission on August 10, 1988., and as amended by First Amendment. Section. 2. Paragraph 16(e) of State Lands Lease No. PRC 7235.1 is hereby amended as,. -set forth in Exhibit A to this Ordina-~ce. The City Manager is authorized to execute all necessary documents relating to this amendment. Section 3. If any section, subsection, sentence, clause or phrase or word of ibis ordinance is for any reason held to be unconstitutional by a court of competent jurisdiction, such decision shall not.affect the validity of the remai-iing portions of this ordinance. 1'he City Council of the City of Petaluma'hei-eby declares that it would have passed and adopted this. ordinance. and each and all provisions thereof irrespective of the fact that any one or more of said provisions. be declared unconstitutional. Ord. 1983 NCS Page 1 of 2 pages I_,/ Section 4. The City Clerk is hereby directed to ~ttl}{ish/post this ordinance for the period and in the manner-required by the City Charter. INTRODUCED and ordered Pul~lis~ed/posted this 19th day of June, 1995. ADOPTED this 17th day of July, 1995, by the following. vote: AYES: Shea, Maguire, Barlas, Stompe, Hamilton, Vice Mayor Read NOES: None ABSENT: None ABSTAIN: Mayor Hilligoss /' .. _. .Patricia Hilligoss, Mayor ATTEST: ' APPROVED AS TO FORM: .r ~.>.~; Patricia E. Bernard, City Clerk Richard Rudnansky, City Auorncy c: \wi nword\ord\m-lease 6/13/95 peb THE WITHIN INSTRUMENT {S A TRUE COPY OF THE ORIGINI4L ON FILE IN THIS QFFICtw ~.~ , ~,,, '~ATRItIA E. BERNARD ~ SiTY CLERK, CIT'.' CE RCY=.IL'+4A DAULETTE LYOPt pEDUTY CITY CLERK Ord, 1983 NCS Page 2 of 2 pages ~ 2 .STATE OF-CALIFORN2A STATE LANDS COMMISSION AMENDMENT OF. LEASE PRC 7235.1 WHEREAS, the State of California, acting through the State Lands Commission, hereinafter called Lessor, and City of Petaluma, hereinafter called the Lessee, have heretofore entered into an agreement designated as Lease PRC 7235.1 authorized by the State Lands Commission on August 10, 1988 and executed September 20, 1..9.88, whereby the Lessor granted to said Lessee a General Lease- Public Agency Use covering certain State tide and submerged land situate in Sonoma County; and WHEREAS, pursuant. to Paragraph 16 (e) of Section 4 of the Lease; this Lease may' be terminated and its term, covenants. and conditions amended, revised or supplemented by mutual agreement of the parties; and WHEREAS, by reason of the foregoing, it is now the desire of the parties .to amend the foregoing Agreement. NOW THEREFORE, the :parties hereto agree a follows: Amend Section 1-Authorized Improvements of Lease PRC 7235.1 to include a fuel dock and pump, located within the existing lease premises shown on Exhibit "A" as attached `hereto. Amend .Paragraph 2, Section 1-Consideration of Lease PRC 7235.1 as follows: Minimum Annual Rental: (a) Lessee shall pay a minimum annual rent of $4,240 in advance beginning July 1, 1991,.and every year thereafter for the remainder of the term of this Lease. (b) Lessee agrees to pay t-he minimum. annual rental stated in this Amendment to Lessor without .deduction, delay or offset, at such pl;ace~as may be designated by Lessor from time to time, in accordance with the schedule as set forth ri this Amendment . (c) Minimum rent paid for the year preceding a payment of percentage of gross income may be deducted from the Page 1 of 3 4~ percentage of gross rent due. If the ,percentage of gross income rent is less than the minimum. rent, no refund or minimum rent shall be due to Lessee. (d) It is specifically ,agreed that in the event of the termination of tlie. Lease prior to its expiration date from any cause whatsoever, no portion of the minimum annual recital,paid in advance shall be refundable. Percentage of Gross Rent: {a) Lessee shall pay a yearly rent based upon a percentage of the gross income as described below. This percentage of gross rent shall be paid in arrears beginning with income earned from .July 1, 1991 through June 30, 1992. This percentage of gross shall be due and payable on the same day that. 'the annual report (.Section 1-Consideration paragraph 9 of°Lease) is due. (b) Percentage of gross will be applicable to the income earned from berthing. The schedule is as follows: Average Berths Rented Percentage of Gross .0 - 86 5% 8',7 - 105 5 . 5 0 106 - 138 60 139 - 161 6..50 162 - 19..0+ 7% Annual Percentage of Gross to be applied to berthing income will be based on the :average nine highest months of berths occupied for reporting year: total berths.r.ented for nine highest months - 9 (months) = average rented berths and $0.015 per. gallon of fuel sold to a maximum- of 100,000 gallons and $.02 per gallon thereafter. The effective date of this amendment to the aforesaid Agreement shall be July 1, 1991. This Agreement will become binding on the Lessor only when duly executed on behaa-f of °the State Lands Commission of the State of California.. Page 2 of 3 ~. IN WITNESS WHEREOF, the partied hereto have executed this Agreement as of the date hereafter affixed. LESSEE: Title ~~ . ~ ~, a..,a~1 Date ~~ ~ Q, (~C~! ,STATE OF CALIFORNIA STATE LANDS COMMISSION ,. ' '~ Chief, Division of Title ~•-' Land Management Execution of this document was authorized by the State~Lands .~. Commission on ;' ~` ~. r~-~% ~ ~r-~, ACKNOWI,EDGENIEN'I' COUNTY OF SONOMA ) ,., /' _ (~ ~~r On this ~ ~ ~ ~ .day of ~~',~''-~-1 .~~ ~L A=`=~.. 199 ; .,- before me, Patricia E. Bernard, City lerk, City of Petaluma, personally -appeared GENE BEATTY personally known to me to be the per-son whose name is~ subscribed to the within. instrument and acknowledged to me that he executed the same in his authorized capacity, and that by .his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the `instrument. ;~ __ ~'~~ 1:~* ~ ~~ i atricia E. Bernard, City Clerk CC~§ 1181 (g) STATE OF CALIFORNIA ) ss Page 3 of 3 I .; .i . CAL~~ORNIA ALL~PUP®SE ACIICNO~A/ELE~GET `No. 5907 State of County of On before me, .DATE ~ NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC" personally appeared NAME(S);OF5IGNER(5) ^ personally known to me - OFi - ^ proved to me on the- basis of satisfactory evidence to be the person(s) whose name{s) is/are subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same in his/her/their authorized cap.acity(iesj, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS rnyhand.and official seal. SIGNATURE OF NOTARY Though the data below is'not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ^ INDIVIDUAL ^ CORPORATE OFFICER TITLE(S) ^ PARTNER(S) ^ LIMITED ^ GENERAL ^ ATTORNEY-IN-FACT ^ TRUSTEE(S) ^ GUARDIAN/CONSERVATOR ^ OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES ©1993`NATIONAL NOTARY ASSOCIATION`• 8236 Remmet Ave., P.O. Box 7184. • Canoga Park„CA-91309-7184 ~,,~ I V' , ~; _. - -- - - ~ -- - - -- _------._---EXHIBIT r~A,~~...._. - - - __ __ ----~------___ _ --- _.. - --- ~• -- - - - - --- -, ~ ~ ~ ~~ ,C~ ~ ~ `~j ~ ~ - ~ (Y ~• ,. \ / -7" J ~: / v ® ~ a'~ ~ / ~` / 1 ` ~ ~ ~ ~ ~,. ,~ / ~' ; O~~~ J~~ ~ ~ ~. ~ ~,~ _.. , _ `1 ~` ' ~;~ . ` '. ~~ \ . - ~~ ~IQ ,.,e- ~r ~ 4 ' K^ G ~. ~ ~ ~ ~, , ,_ ~ / . ` ~ /~° ~ ~~ ,~ ,~ ~ ,- .~ y ' ~ :o ~ ~ /~ ~~ y+~ , /, ~ C~ / ` . ca~ ~ :' 9 ~ ~ ~ ~~ •, ~~ ~ ~ ' ~ ~ ~ 1 ~', ~~P~ .. .a~`. ,_ , P1~ i c' ~~ /~~ `i ~`~ I `,~` STr11'~ 0~~ CA`LIfORNIA FOR RECORDERS USE ONLY ~.. STATE :LANDS COMMISSION 'RECORDED AT THE REQUEST OF State of California/State .Lands Commission _. Official Business - Document entitled to free recordation pursuant :to Government Code Section 27383. • WHEN RECORDED MAIL TO State Lands Conmission •1807 - 13th Street Sacramento, CA 95814 Attent-ion: Title Unit W 23161 LEASE NO. PRC 7235.1 This Lease consists of this summary and the following attached and incorporated parts: Section 1 Basic Provisions Section 2 Special Provisions amending, or supplementing Section 1 or 4 • Section 3 Description of Lease Premises Section 4 General Prodisi'ons SECTION 1 BASIC PROVISIONS -~° - -. _. The. STATE" OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the STATE LANDS COMMISSION, (1807 - 13th Street, Sacramento, California 95814), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the Ca:Tifornia Administrative Code, and for consideration specified in the Lease, does hereby lease, demise and let to: CITY OF PF'TALUMA hereinafter referred to as Lessee: WHOSE MAILING ADDRESS IS• 11 English Street, P. O. Box 61 Petaluma., California 94953-0061 those certain lands described i.n Section 3 subject to the reservations, terms, covenants. and~condi`tions of 'this Lease. LEASE TYPE: General Lease - Public Agency Use. LAND TYPE: Sovereign LOCATION: Adjacent to the Y'etaluma River in the City of Pe aluma, Sonoma County, containing approxi'mately,:l3 98 •-acr`es, and more particularly described in Section 3 attached herein ""~"`'~"•""~ _. LAND USE OR PURPOSE: ConsCruction and operation of a public marina; dredge a maximum volume of 300,000 cubic yards of material to be di posed at the City of Petaluma's disposal site, County o_f Sonoma's landfill site, or an approved United States Army Corps of Engineers disposal site. TERM: Thirty (30) years; beginning July 1, 1988 and ending June 30, 7018 unless sooner terminated as provided under this Lease. ' . '~ CONSIDERATION: • Z. For the period begi.nninq 3uly 1, 1988 through June 30, 1991, the annual rental., payable in advance, shall be $250. 2. F'or the remaining balance of this lease beginning July 1, 1991, the Lessee agrees to pay the minimum annual rent of $6,.522, or seven percent (7~) of gross income, whichever is greater, to Lessor without deduction. delay or offset., at such place as may be designated by Lessor from time to time, in accordance with the schedule as set forth herein. Any rental due which is in excess of the minimum annual rental shall be d'ue and payable on the same day that the annual report is due., and payment shall accompany such report. 3. It is specifically agreed that in the event of the termination of this Lease prior to its expiration date from any cause whatsoever, no portion. of the minimum annual rental paid in advance shall be refundable. 4. DEFINITIONS: (a.) GROSS INCOME: "Gross Income", far the due to the State Lands limited to: purpose of computing annual rental Commission, shall include,, but not 1. The sales price. of any• type of food and drinks sold by Lessee, rahether for cash or credit. 2. The sales price of all other goods, wares., merchandise or products sold by Lessee, whether for cash or credit. 3. Commission received 'or earned from non-lessee owned coin-operated. vending machines or other devices,, and all sums deposited in Lessee owned coin-operated vending machines or other devices. 4. Z`he charges made by the Le see for the berthing, docking, mooring or launr_hing of boats.' 5. The charges made by the Lessee for the rental o;f. any type of equipment or product, whether for cash or for credit. 6. Any other income, whether for .cash or credit generated ~3irectly from, or on, the leased area by the Lessee's operations. 5. ALLOWABdaE`REDUCTIONS TO GROSS INCOME: Gross income hall not include any sales or excise taxes payable by the Les:~ee to Federal, State, County or municipal governments as a direct result of operations under this Lease, provided that these taxes are clearly segregated and identified in the .Lessee's books and records. _2._ 1 l 6. ALLOWPiBLE: 'DEDUCTIONS .TO GROSS SALES: . Gross sales may be reduced by reaurns ahd allowances on the theory that these "sales" were-never made, and should not have been included as part of the gross sales, but gross ,ine'ome shal`1 not be reduced by any other am'aunt: 7. CASH: "Cash" includes currency, coin, checks,. and money orders. B. CREDIT: ' "Credit" includes credit card transactions, and those transactions made on open account or for any oral or written promise to pay. 9. REPORTS: The Lessee shall submit, on forms approved by the State Lands Commission, an annual report detailing their gross income from boat docks and moorings, and any other income generated from, or on, the Leased Premises. This report sha1L be accompanied by a Balance Sheet of the Lessee as. of the last day covered by the annual report, and an Lncome Statement covering the results of Lessee's operations for the year ended on the last day covered by the annual report. These reports shall be due an the twenty-f fifth (25th) day of the month following the end of the year covered by the annual report,, unless the Lessee has received, in writing, permission from ,the State Lands Commission f or later submission, not to exceed ninety (90} days. 10. BOOKS AND RECORDS: The Lessee shall maintain books and` records of all financial transactions relating to the Leased Pr'emi;s!es in accordance with generally accepted a'ccouriting principles. These records shall be supported by source documents sur_h as agreements with renters. copies' of invoices,. receipts, and. other pertinent documents. If requested by the State., the Lessee shall .allow representatives of the State Lands Commission to examine copies of Federal and State Income Tax Returns, and Board of Equalization Tax Returns in order to corroborra;te information shown on reports to the State Lands Commiss-ion. 11. ~:XArRINATION OF BOOKS AN_ll RECORDS: All annual reports submitted to the State Lands Commission are subject to audit and .revision by the State Lands Commissior. Les's+or. may inspect all Lessee's books, records, a,nd document re°latng to the gperation of the Leased Premises at all reasonab e times. Any statutory or other right that the Lessee may have to object to such inspe°ction by the State Lands Commission. are hereby waived. The foregoing is su_bj;ect to modification by~ lessor. as specified in Paragraph 2(b) of ;Section 4. AUTHORIZED IMPROVEMENTS:: Maximum of 220 uncovered boat berths, launching ramp, restrooms, ha;rb'ormaster's office, and ancillary appurtenances inherent to a marina op~era~tion; paved parking lot, riverbank breachment to create a marina entrance channel and riprap placement. --3- `.~/ ~~ [X ], EXISTING:. Bolt launching ramp.. pa ed parking area, rest.room. facility and minor appurtena:ncos thereto. [X] TO~BE CONSTRUCTED; CONSTRUCTION MUST'BEG~IN BY: 10/01/88 AND BE COMPLETED BY: 10/01/91 LIABILITY INSURANCE: $2,000,000 SURETY BOND OR OTHER SEGURLTY: N/A SECTION 2 SPECIAL PROVISIONS BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVLSED OR SUPPLEMENTED AS FOLLOWS: 1. DEMOLITION OF EXISTING FACILITIES: Lessee agrees to demolish and remove all existing `improvements stated in Section 1 at their sole expense and risk. Such improvements are within the lease area of lease PRC 4048.9 held by the City of Petaluma which will be terminated and included as a part of this lease. 'w'.~. MARINA BASIN EXCAVATION: (a) A royalty of :$0.7.5 per cubic yard shall be paid for any dredged material sold. or .used fo;r private or commercial benefit. There shall be no royalty charged for material placed on tidelands or . private lands dedicated to the public trust. (b) It is agreed that Lessee shall submit copies of reports or contracts with the dredging operator substantiating the volume of materials dredged and any royalties d.ue to the Commission o;n a quarterly basic, on, forms supplied .by 'the Commission (Form 30.9). Lt is agreed -that Les-see 'sha.ll submit. said forms on or before the fifteenth (15th) day of the month following the end of each permit. quarter, together with payment for the royalty due on the volume removed during that quarter. T;he first permit quarter sha'T,1 b.e the first three . months following the effective date of th-.s permit, and every three-mon h period thereafter shall be .a permit quarter. (c) It is further agreed that Less°ee ha;.l;l furnish the Commission with copies of final surveys or copies of ariy other computations used as a basis to verify dredge volumes within twenty-five (25) days of completion of the activity authorized hereunder. -4- 21 '~3. MARINA CONSTRUCTION: {a) It is unde~rstbod that because implementation of construction is dependent upon timeliness of financing f:or the marina projeca .from Department of Boating and Waterways, the beginning date of construction is deferred to allow ample time .for the funds to be disbursed. (b) Lessee agrees to notify Lessor, in writing, the date of marina construction completi_.on within sixty (60) days of that occurrence. A copy of the "as-built" construction plans certified by the project. contractor shall be included with the notification. 4. MAINTENANCE DREDGING: (a) Lessee is authorized to perform ma.intenace dredging of minerals, other than oil, gas, and geothermal.,. from the area described in this lease, .for the purpose of maintaining navigable channels in and around the lease premises.. The total volume of material removed shall not exceed` a'maximum of 13,000 cubic yards per year of this lease. This authorization includes the right to deposit said material at United States Army Corps of Engineers' disposal ,sites or elsewhere as directed by the District Engineer or other lawful authority. (b) No royalties will be assessed on materials removed from the lease area; provided that a ,royalty of.$p.25 per cubic yard shall be paid to the .State- for any material placed. on private or public property and ,u ed for any private' o~r commercial benefit. (c) In the event Lessee does perform maintenance dredging as authorized by this paragraph, within one month of completion of such dredging, Lessee shall submit. a' report to Lessor, substantiating the volume of materials: dredged and any royalties due Lessor, on forms provided by .Lessor (Form 30.9). 5. MARINA'S MEMBERSHIP FACILITIES: The marina authorized by this lease is to be open and avala_bae to the general public consistent with Lessee's rules and operating procedures. Boat berths shall. be available to renters on a first-.dome.; -5- 2 2-- first-served ~~bass_: No member of the ,pu;b is shall be refused an opportunity to use or +rent a s1:ip on the basis of non-membership in. any club, associaoori, or other s"Etch organization formed for u's'e of thy. lease premises in conjunction with adjacent uplands. Conversion of the marina facilities authorized by this lease to facilities available only to members of a club, associat"ion, or other such organization shall require prior written ,approval of Lessor. 6. MARINA ASSIGNMENT ENCUMBRANGING OR SUBLETTING: Lessor hereby consents to Lessee's subletting of all or any portion of the lease premises for berthing br mooring purposes in conjunction with norma commercial marina subleasing practices for terms of one (1) year or less. 7. RIGHT TO EXTEND CLAUSE: (a) At the expiration of this Ieas,e, Le see shall :have the right. to extend its lease for o'n'e addtio,na~l period of ten (10) years for such rental, and according to such other terms, covenants, and conditions, as negotiated betwee'n' the parties to this lease. Lessee shall give written notice of the exercise of such right to Lessor at least six {6) months prior to the expiration of tho lease term and failure to give such notice shall constitute a waiver of such right. It is the ihtent of the parties that Lessor shall lease and that"Lessee shall not be in a trespass or holdover status as to the lease premises afters the expiration of this lease, but rather that a duly authorized and executed lease- shall exist between the parties following the expiration of this lease. (b) In the event the pdrties to this ag-regime t cannot agree on such reasonable terms, covenants, and conditions for extending this lease, Lessor or Lessee may elect to terminate this agreement. If such termination occurs, Lessee shoal release its rights unde r this lease, as provided .for elsewhere in this lease. 8. RESTORATION OF LEASE PREMISES: It is tanderstood and agreed between Lessor a,nd Lessee that Paragraph 13 of Section 4 excludes the requirement that Le see refill and restore the marina basin to its ot'iginal condition p~rio;r , tq exc`a`vation. A11 other requirements shall remain in full force and effect. PREVIOUS LEAS& SUPERSEDED: That. certain lease designated PRC 4048.9, entered into on March 26, 1970, by and between th'e .State of California, acting by and through State Lands Commission, as Lessor, and the City of Petaluma, as Lessee, is expressly superseded by this Lease. -6- 23 LAND DESCRLP:T'ION PARCEL 1 .Being portions of the land described in Grant Deed No. 9789 recorded F.eb. 19, 1953 in ,Book 1`189 of Official Records, page 3'05, Sonoma County, and Grant Deed-No. 17660, recorded Jan. 2'I, 1956, in Book 1410 of Official Records, Page 4b1, Sona;ma; County., and being, a porCion of the Petaluma Rancho 'in T4N, R`7:W and T5N, R7W, M.D.B.&M., more particularly described as follows.: CO~fENCING at the easterly terminus of the curve with an arc length of 785.9 feet, as descri,be.d in that Deed'to Northwestern Pacific Railroad Company, a corporation., recorded Oct. 24, 1916 in Book 34.5 of Deeds, page 266, Sonoma County, said point lying on the southerly line o~f .t'he Northwestern Pacific Railway right-of-way. said ,po'i:nt of commencement being .indicated as Point "C" on that Record of. Survey Recorded i,n Book 185 at page 15 of Maps,. Sonoma County; thence southea°sterly on a tangent to said cu"rve and al,onq the southerly line of the Northwestern Pacific Railway right-.of-way S 76°'59'12" E 785.10 feet to a point o,f intersection with the westerly line of Parcel 2 of 'that cer-vain real property situate in the County of Sonoma, S ate bf Cal'~fornia, de,s:c`ribed in the Patent from the State of Califo.rni;a, to the City o.f Petaluma., a Municipal Corporation, dated Mar:. 2, 1970, and ecorded April 6, 1970, in Book 2453, of Of~fcial Records, Pages 771-773 Sonoma, County and the PO'I`NT OF BEGINNING of the herein d:es~e;ribed parr_e1; thence leavimq said .southerly right-of-way a ho'nq said westerly line S 10°09'0'3° W 5'60.70.; feet thence S 09°b'7'21" E 127.39 feet; thence. S 61.006'16" E 248;:49 feet; thence S 0718' 10". W 1.30.:.65 f,ee.t; thence S 59052'52" W 142.34 feet; thence S 6:7044'27" W 100,.44. feet; thence S 50053'4:3" W 406.86 feet to the most easterly point described in'that Deed recorded Oct. 5 ,1965, in F3ook'2160,~of ' Official. Records Page 562, Sonoma County; thence ,along the northeasterly line af. said deed, N' 4203',4' S7" hl 369.13 feet .to the most testerly point de cribed in that Quitclaim Deea recorded May 31, 1968 in Book 2333, of Official Records Fagg 819, Sonoma County°; thence aIong,.the northwesterly line o~_f s-aid Qui.tcla-[a deed, N 300`57'48" E 554.14 feet; thence leaving said northwesterly .line,, S.41°0'4'00" E. 121.55 feet; thence :S 0305.6'0'0" W 143.43 feet; then'c~e 'S 8600.4'00" E 77.OD feet; thence N 260;12'53" E 123.3:0 feet; thence N ;15042'15" E 93.94 feet; thence N 05009'40" E 19.0.00 feet; thence N 100'16'4.5" E 278.00 feet; thence N 14034'00" E .196.0'0 feet to a po°int on the above mentioned southerly right-of-way thence along said right-of-way S T6059'12" E 30.00 feet to the Point of Beginning. ~~: . 2~1 '. LAND DESCR hPT`IOA1 PARCEL 2 Being portiorts of the Tand described in Grant Deed No. 9789 recorded Feb. 19, 1953 in'Book 1189 of Official Records, page 305, Sonoma County,, and Grant Deed No. 17660, recorded Jan... 27, 19b6, in Book 1410 of Official Records, Page 451, Sonoma County, and being a portion of the Petaluma Rancho in T4N, R7W, and TSN, R7W, M.. D.B.&M., more particularly described as follows: CQP~IENCING at the easterly terminus of that curve with an arc length of 785.9 'feet, as described in that Deed to Northwestern . Pacfic Railroad Company, a corporation, recorded Oct. 24, 1.916 in Book 345 of Deeds. P-age 2'66, Sonoma County, said point lying on the southerly line of the Northwestern Pacific Railway right-of-way, said poi-nt o;f commencement 'being indicated as Point "C" on that Record of Survey recorded in Book 185 at Page 15 of Maps, Sonoma County; thence along' said curve to the left with a radius of 352.20 feet, said curve also being described in that Indenture reco-rded Oct. 24, 1916 in Book 345 of _ '~~ Official Records, page 266, Sonoma County,. through a central ~~ angle of 71024'08°, an arc length .of 438.91 to the TRUE POINT OF BEGINNING of the herein described pare'el; thence leaving said curve S ~41°04'00" E 36.2.99 feet; thence N 48056'00" E 203.43 feet; S 41004'00" E 221.00 feet; thence S 03056'00"~W 33.00 feet; thence S 4805:6'00" W 83.50 feet; thence S 41.004' 00" E 2:92.00 feet; tk~errce N 46056' 00" E 91.00 feet; thence S~ 66'004' 00" E 28.50 feet; .thence S 41004'00" E 24.45 :feet; to a point on the northwesterly line described in that Quitclaim Dees] recorded May 31, 1968, in Book 2.333 of Official,Re,cords, Page 819, Sonoma County; thence along said.. n~o.rthwe~stetiy line S 30°57'48" W 554.14 feet to a .point on the northeasterly line of the Deed recorded Oct.. S, 1965 in Book 2150 of Official Recorder, Page 562, Sonoma County; thence along said northeasterly line S 42034'57" W . 45.98 feet; thence a ong ~~a curve to thee. right faith a radius of 145.00 feet through a central angle of 17°56'47" for an •arc length of 45.42.fee.t, thence N 24°36'TO"~W 696.54 feet; thence along a curve to the left with a radius of 255,00 feet th:rou9'h a central angle of 8016'47" for an arc length of 36.85-; thence N 32054'57"'W 214.09 feet; 'the'nce along a curve to the right with a radius of 145.00 feet through a central angle of 0801b'47" for an .arc length of '20.95 feet; thence N 24038'1-.0" W 67.50 feet to a point on the above mentioned curve with a radius of 352.20 feet; thence along said curve in a northeasterly direction-from a tangent which bears N 21°46'00" E, through a central angle of 09050'40" for an arc length of 60.51 feet to the Point of Beginning. END OF DESCRIPTION PREPARED BIU 1,. M.L. SHAFER, SUPERVISOR. 2~ SCT~~ 4 GE~EA~ PROVISt® S 1. GENERAL These provisions are applicable to all leases, permits, rights-or- way, easements, or licenses or other interests in real property con- veyed by the State Lands Commission. CONSIDERATION (a) Categories (1) Rental: Lessee shall pay the annual. rental asstafed in Section 1 or 2 to Lessor without deduction, delay or offset, on or before the beginning date of this Lease and on: or before each anni- versary of its beginning date during each year of the Lease term. (2) Royalty or other consideration: Lessee shall pay a royalty or other consideration in the amount, method and manner as specified in•Section t or 2. (3) Non-Monetary Consideration: If a monetary rental, royalty, orbther consideration is not specified in Section 1 or 2, consideration to Lessor for this Lease shall be the. public use, benefit, health or safety, as appropriate, however Lessor shall have the right to review such consideration at any time and to seta mohetary rental if the State Lands Commission, at its sole discretion, deter- mines that such action is in the best .interest of the State. Lessee shall notify Lessor withih ten.(;1'Q) days in the event that the public is charged anydirector indirectfeefor use and enjoyment of the Lease Premises. (b). Modification Lessor may modify the:amount or rate of consideration effec- tive on each fifth anniversary of the beginning date~of this Lease. Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on a ny one (t - of the nett four (4) anniversaries follovving such fifth anniversary, without prejudice to its right to effect such modification on the next orany succeed- ing fifth anniversary. Any modification of the amount or rate of consideration made pursuant to this paragcap.h sha_I) conform to Title 2, Division 3 of the California Administrative Code-and no such modification shall become effective unless Lessee is given written notice at least sixty (60) days prior to'the effective date. pressly authorized in Section 1 or 2 of this Lease shall be con- structed by the, Lessee on the Lease Premises withouTthe prior written consent of Lessor. Lessee shall notify Lessor within ten (10) days after commencing the construction of authorized improvements and within sixty (60) days .after completing them. (2) ,Alteration or Removal -Except as provided underthis Lease, no alteration or removal of existing improvements on ornatural features of the Lease Premises shall be u ndertaken without-the prior written consent of Lessor. (d) Conservation: Lessee shall practice conservation of water and other natural resources and shall prevent pollution and harm to the environ- ment in or on the Lease Premises. (e) Enjoyment: Nothing in this Lease shall preclude Lessee from excluding persons fcom,the Lease Premises when their presence or activity constitute a materiaf interference with Lessee's use and enjoy- ment of'the Lease Premises as provided under this Lease. (f) Discrimination: Lessee in its use of the Lease Premises shall not discriminate against any person or class of persons on the basis of race, color, creed, national origin, sex, age, or physical handicap. (g- Resid®ntiel Use: Unless otherwise allowed under this Lease, improvements on fhe Lease Premises shall not be used as a residence or for the purpose of mooring a floating residence. RESERVATIONS, ENCUMBRANCES AND RIGHTS-OF-WAY (a) Reservations• (1) Lessor expressly reserves all natural resources in or on the Lease .Premises, including but not limited to oil, coal, natural gas and other hydrocarbons, minerals, aggregates, timber and geothermal resources, aswefl asthe rightto grant leases in and over the Lease Premises for the extraction of such natural resources, however such leasing shall be neither .inconsistent nor incompatible with the rights or privileges of Lessee underthis Lease. (c) Penalty and Interest Any installments of rental, royalty, or other consideration accruing under this Lease not paid when due shall be subjecttoa penalty and shall bear .interest as specified in Public Resources Code Section 6224 and Section 2. 3. BOUNDARIES This Lease is not intended to establish the States boundaries and is made without prejudice to either party regarding any boundary claims which may be asserted presently or in the future. 4. LAND USE (a) General: , Lessee shall use the. Lease.Premises only for the purpose or purposes stated in Sectioh 1 or 2 and only for the operation and maintenance of the improvements authorized in Section 1 or 2. Lessee shall commence use::of the Lease Premises within ninety (90) days of the beginning date of this lease: Thereafter Lessee's discontinuance of such use for a period of ninety (90- days shall be conclusively presumed to be an abandonment. (b) Repairs and Maintenance: Lessee shall, at its own expense, keep and maintain the lease Premises and all improvements in good order and repair and safe condition. (c) additions, Alterations and Removal: (1) Additions - No improvements other than those ex (2} Lessor expressly reserves a right to go on. the Lease Premises and all improvements #or any purpose associated with this Lease or for carrying out any function ri=quired by law, or the rules, regulations or management:poljcies of the State Lands Commissiom_ Lessorshalf haye:a ngFYof feason- able access to the Lease Premises across'Lessee owned or occupied lands adjacent to the Lease Premises for any pur- pose associated with this Lease. (3) Lessor expressly reserves to the public an easement for convenient access. across the Lease Premises to other State-owned lands located near or adjacent to the Lease Premises and a right of reasonable passage across and along any right-of-way granted 6y this Lease, however, such ease- ment or right-of-way shall be neither inconsistent nor in- compatible with the rights or privileges of Lessee under this Lease. (4) Lessor expressly reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the (ease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. (b) Encumbrances: This Lease may be subject to pre-existing contracts, leases, licenses, easements, encumbrances and claims and it is made without warranty by Lessor of title, condition or fitness of t he•land for the stated or intended use. (i:) Rigftts-of-dlfay • If this Lease is for a right-of-vvay coveri.njf, one or more:pi,pe- Dines or conduits, the Lease Premises include only"land actually underlying the pipelines or conduits;,and Lessorhereby giants to Lessee anon=exclusive right to;go onto the lands adjacent lathe Lease Premises as is reasiinable'and necessary for i'nstallafion, inspection and maintenance of the pipelines or conduits. 6, RULES, REGULATIONS AN[~ TAXES (a) lessor and Lessee shall comply with and be bound by all presently existing or subsequently enacted rules, regulations, statutes or ordinances of the State Lands Commission•or any other governmental agency or entity having lawful authority and jurisdiction. (b) Lessee recognizes and understands in accepfingih,is Lease that it may be liable for a possessory interest"tax imposed by a city or county on its leasehold interest "and that. its,payment iif uch a tax shall not reduce the amount .of consideration due Lessor under this Lease and that Lessor shall ,have no liability for the payment of such a tax. 7. INDEfbINITY (a) Lessor shall not be liable and Lessee shall. indemnify, hold harmless and, at the option df Lessor, defend Lessor, ifs'dfficers, agents, and employees aganst:and for any and;all liability; claims, damages or injuries of any Rind and from any cause; occurring on the Lease Premises or improvements, or arising out of or con- nected in any way with the. issuance of .this Lease. (b) Lessee shall give prompt notice to Lessor in case of any accident, injury or'casualty,on,the Lease Premises. 8. LIABILITY INSURANCE (a) If so specified in Section 1 or 2. Lessee shall obtain at its own expense and keep infiilL,force and effect during he Lease term with an. insurance company acceptable toiLessor compre- hensive liability insurance, for specified categories.andi_amounts, insuring Lessee and Lessor against any and 311 claims or liability arising out of the ownership, ,use; occupancy;.condition or main- tenance of the Lease Premises and all improvements. (b) The insurance policy orpolicies shall name the.State as an additional insured or co-insured party as to the,L'ease'Premises and shall identify the Lease by-its assigned number. Lessee shall provide Lessor with a certificate of such insurance and shall keep such certificate current. (cl The liability insurance. coverage specified in this Lease shall be in effect at all times during the Lease term and subsequently until all of the Lease Premises have been either accepted as im- proved by Lessor or restored pursuant to Paragraph 1'3. 9~ SURETY BOND (a) 1f so.specified inSection 1, Lessee shall provide a surety bond or other security device acceptable to Lessor, for .the specified amount, and naming ,the State'of California as the assured; tp guarantee to Lessor-the faithful observance and performance by Lessee of all of the terms; covenants and conditions of this Lease. (b) ,Lessor may increase the amount of'the surety bond or other security device to cover any additionally authorized improve- ments, alterations or purposes and any modification of consideration. (c) The surety bond or other security device shall be-.maintained in full force and effect at-all Umes during the Lease term andsub- sequently until all of the Lease Premises have. been either accepted as improved by .Lessor or restored pursuant to Para- graph 13. 10. ASSiGNfiflENT, ENCUMRRANCIRIG OFi' SUBLETTING . (a) Lessee shall not either voluntarily or ey operati6n of slaw, assign;=;;transfer, mortgage,,,pledge; hypofhecateorencuml5erthis Lease~and shalP,not subleYthe Lease f remises, inwhole or in pact, or allow: any. person other than the Lessee's, employees, agents, servants and invitees to occupy or use all or any portion of the Lease Premises without the prior written consent of, Lessor. (b)' This Lease shall' be appurtenant to littoral 'or riparian land and any dwnership,interest or use rights of Lessee in such lands and it shall not besevered from such rights or interests without the prior written consent of Lessor. 11. DEFAULT AY11D REMEDIES (a) Default: The occurrence of any one or more of the following events shall constitute a default or breach of this Lease by Lessee: (1), Lessees failure to make any payment of rental, royalty, or other consideration as required under this Lease. (2) Lessee's failure to obtain or maintain liability insurance or a surety bond or other security device as required under this Lease.. (3) Lessee's vacation or abandonment of the Lease Premises during the Lease term. (4) Lessee's failure to observe or perform any other term, covenant or condition of this Lease to be observed or per- formed by the Lessee when such failure shall continue for a period of sixty(60) days after Lessor's giving written notice; however, if°the nature of Lessee's default or breach is such that more than sixty (601 days are reasonably required for its cure; then Lessee shall not be deemed to be in default or breach if Lessee commences such curewithin such sixty (60) 'day period. and diligently proceeds with such cure to completion. (b) Remedies: In the evgnt of a default or breach by Lessee. and Lessee's failure fo cure such default or breach, Lessor may atanytime and with or without notice do any one or more of the following: (1) Re-enter the Lease Premises, remove all persons and • property, and respossess arid enjoy such premises. (2) Terminate this Lease and Lessee's right of possession of the Lease Premises. Such termination shall be effective upon tessor's.:giving written notice and upon receipt of such notice:Lessee shall immediately surrender possessionof the Lease Premises to Lessor. (3) Maintain this Lease in full force and effect ahd'~eco6er any.rental, royalty, orother consideration;as they become"due vvithouiterminatng Lessee's. right of possession regardless of whether Lessee shall have abandoned the Lease Premises. (4) Exercise any other right or remedy which Lessor may have at law or in equity. 12. LESSEE'S TERMINATION Lessee may terminate this. Lease for any reason upon giving Lessor at least sixty (60) days.prior written notice. Lessee agrees that. on the effective. date of termination it shall responsibly lease. and surrender the Lease Premises to .Lessor in a state of good order, condition, repair; and restoration as provided under Paragraphs 4(b) and 13. The exercise. of such right bf termination shall not release Lessee from-liability for any unpaid tiut accrued rental, royalty orother consideration which may be due under this Lease or from any other obligations still applicable under the Lease. No portion of any rental paid by Lessee"in advance shall be refunded. 27 T3.: RESTORATIORI OF LEASE.PREi1A1SES. (a) Upon expiration or sooner termination of this Lease, Lessor mayaccept aPl or any portion;of the Lease Premises, as,then im- proyed with structures,.buildings, pipelines, machinery; facilities and fills. in place; or 'Lessor .may require Lessee o remove all or any portion ofsuchmprovements-at its sole-expense and risk; or Lessor may itself remove or ha4e removed all or any portion of such improvements af,Ce'ssee"s sole expense. (b- In removing any such improvements Lesseeshall restore the Lease Premises as nearly as possible to the conditions existing prior to heir installation or construction. (c) All ouch cemcval and restoration shell be~fo the.setisfaction of Lessor end shall be completed within :ninety (90) days of the expiration or sooner termination of .this Lease. 14. QUITCLAIfW lessee shall, within ninety (90} days of the expiration or sooner termination of this Lease, execute and deliver to Lessor in a form provided by Lessor a good and sufficient release o}all rights under this Lease. Should Lessee tailor refuse to delivecsuch a,release; awritten notice by Lessor reciting such failure or refusal shall, firom the date of its recordation, be conclusive evidence against Lessee and all other claimants of`the termination of this Lease and any°rights or interests of Lessee in the Lease Premises. 15. HOLDING-OVER Any holding-over by Lessee after the expiration of ttte Lease term, with or without the express or implied consent of Lessor, shall con- stitute atenancy from month-to-month and not pan extensiori of the Lease term and shall be on the terms, convenants and conditions of this Lease with rental, royalty or other consideration payable in -.~. advance on the first day of each month,. at the rate of one-twelfth (1/12th) of the annual amount. 16. ADDITIONAL PROVISIONS (a) Waiver: (1) No term, covenant or condition :of'this Lease and no default or breach of.any such term, covenant or condition shall be deemed to have been waived, by Lessor's acceptance of a late or nonconforming.performance,orotherwise,unless such a waiver is expressly acknowledged by .Lessor in writing. STATE UF'CALIFORNIA -STATE LANDS COAANAISSIUN LEASE P.R.C. No. PRC 7235. 1 (2) Any such waiver shall not be deemed to be a waiverof any other term, covenant orcondifion or ahyotherdi3fault or `breach of°any term, covenant or condition of this Lease.. (b) Time: Time is of the essence of this Lease and each and all of'its 4erms, covenants or conditions in which performance is''a factor. (c) Notice: All. notices required to be given under this Lease shall be given in wrjting, senrby United tates:mail with postage prepaid, to Lessor et the offices of the State Lands Comrnission and to Lessee at the address specified in Section t. Lessee shall give Lessor notice of any change in its name or address. (d) Consent: Where Lessor's consent is required under this Lease its consent for one transaction or event shah not.be deemed to be a consent to any subsequent occurrence of the same or ariy other transaction or event. (e) Cf~angea: This Lease may be terminated and its term, covenants and conditions amended, revised or supplemented by mutual agree- ment of the parties. (f) Successors: "'"The terms, covenants and conditions, of this Lease shall extend to and be binding upon and inure to the benefit of the heirs, successors, end assigns of the respective parties and if more than one Lessee is a party to this Lease, the obligations of the Lessees shall be joint ahdseveral. (g) Captions: The captions of this Lease are not controlling and shaK have no effect upon its construction or interpretation.. (h) Severebility; If any term, covenant or condition of this Lease is judicially determiried to 6e;invalid, it shall be considered deleted and shalt not invalidate any of the remaining terms, covenants and conditions. This lease will become binding upon the State only when. duly executed on behalfiof the$tate.,Lands Commission of the State of California; IN WITNESS WHEREOF, the. parties ,hereto have executed this lease as of the date hereafter affixed. CtTY,;COF ,pET~;~.UfviA CITY ftr9APV~ER C#TY CLERK STATE OF CALIFORNIA STATE LANDS COMMISSION Title _~ Date . S~P: ~ ~ 1988 .: .ACKNOWLEDGEMENT The issuance of this lease was authorised by the State Lands Commision on August 10, 1988 (Month Day Year) n 1,r' STATES LANDS CON~ISSION STATE OF CAL~F'0~2NIA . Y)~EDG~TG LEASE PRC ,3'1" ~'y~19.9 , .o 3~u~ fo3 This. Dredging Lease is made and entered into .pursuant to Section 6303 of the Public Resources Code by and between the State of California, acting Eby and through the State Lands Commission;. (hereinafter "State"), as Lessor; and the city of Petaluma (hereinafter "Lessee"), whose mailing address is: 320 Norah McDowell Blvd., Petaluma, CA 94954. Inconsideration of the. terms, covenants, and conditions. set forth below, the State issues to Lessee a lease.to dredge that certain parcel of land designated as the Leased Lands, situated in the State of California, and. more particularly described as follows: The ungranted sovereign land at Petaluma Marina, 781 Baywood Drive, Petaluma, California. 1. Purpose of Lease: Lessee is hereby authorized'to dredge and dispose of sand, gravel, silt and clay (hereinafter Dredged Materials) at approved disposal sites for the purposes of improvement of navigation, reclamation or flood control as provided.herein. 2. Limitations: (a) This Lease does not authorize the constructon,orp1acement of any improvements or fixtures,, including but not lmited.to groins, jetties,. sea walls, breakwaters, and bulkheads on the Leased Lands. (b) This Lease does not authorize Lessee to.dredge-for purposes of commercial resale, environmental mitigation credits or other private benefit. 3. Term: This Lease shall commence upon approval bythe State and execution by the Parties hereto, which date shall be hereafter referred to as the "effective date" of this Lease, and shall continue for the stated period year, unless sooner terminated as provided for iri this Lease. February 18, 2003 through February 1'1, 2013. 4. Materials To Be Dredged: Lessee is hereby authorized to dredge and.remove a maximum of 24;000 cubic yards of Dredged Materials annually from the Leased-Land. The 24,000 cubic yard project is part of a larger dredging project consisting of 37,000 cubic yards at the Petaluma Marina. The dredging and disposal of the remaining 1`3.,000 cubic yards per year was previously authorized'by the Commission at its August 10, 1988 meeting (General Lease, Public Agency Use, Lease No. PRC 7235.1). 5. Disposal Area.: Lessee is authorized to dispose. of the Dredged Materials at the following 2~ ~, r. ~~~ ~~ Dredging Lease PRCI'-~y~9.9 Page 2 of 8 ~ • ~? ~~/b 3 6. Environmental Concerns: Lessee hereby agrees to the restrictions, mitigation measures and other conditions adopted by the State or Federal agencies. Lessee hereby agrees to the restrictions, mitigation measures and other conditions adopted' by the State or Federal agencies. Furthermore, Lessee. agrees to comply with such otherr terms and corditions or limitations on its operations under this:I,ease which are considered necessary by State to achieve the objectives. 7. Royalty: (a) Lessee shall. pay a royalty of $0.25 per cubic. yard of Dredged Materials used for private purposes or sold for commercial use. However, there shall be no royalty charged for Dredged Material disposed of at a Corp of Engineers approved disposal site.. (b) Royalties shall be due;and payable on the fifteenth (LSth) day of the month following the end of each lease quarter. A lease quarter is athree-month period; the first one beginning on the effective date of the Lease and the subsequent ones runriirig°corisecutively thereafter.' All royalty payments.shall be made by check or wire transfer. If made by check, they shall be made to the address provided for iri Paragraph- :TO, below. If made. by wire transfer; they shall be deposited into the State's bank account as provided in directions to be furnished to the Lessee by the State. 8. Penalty and.Interest: (a) Royalties and othermonetary considerations provided for in this Lease that are not paid when due .shall bear interest from the day followingthe day on which such payment was. due until the day of payment in the amount of one and one-half percent (1.S%) per month compounded annually. In addition, a five percent (S%) penalty shall be applied to the .total amount past due (excluding payment ofinterest) which shall be:payable with such amount past due. (b) Penalty and interest for late payments shall apply to amounts determined by, the State to be due. and timely paid by the Lessee, including without limitation, insufficient payments based on inaccurate, unreasonable or inapplicable information contained in the quarterly statement submitted to State in accordance with Paragraph 9 of this .Lease. 9. - Record Keeping and. Audits: (a) Lessee shall'prepare ,and maintain accurate, records of its operations under this Lease. On or before the fifteenth (1Sth) day of the month following the'lease year, Lessee shall provide to State a detailed statement (hereinafter "Annual Report") of the amount of Dredged Materials and copies ofreports or contracts with the dredging operator substantiating the volume of Dredged Materials and placement of Dredged Materials. . (b) At the request of State, the Lessee shall provide additional,reasonable additional information to State to assist it in interpreting and evaluating the contents of Lessee's Annual 3~ l .~ Dredging Lease PRC ~~' cY'f~g • l Page 3 of 8 ~~ ° 3~~1°3 (c) All Annual Reports and royalty statements shall be subject to audit by State, at State's sole cost.. Upon reasonableadvance notice fo the Lessee from State,.Lessee shall make available to State, during business hours, Lessee's books; records,. calculations and other materials that are directly related to the Leased' Lands andany other lands joined with, the Leased Lands under Lessee's plan of operation and the contents of its Annual Reports. (d) Lessee waives: any,rights or objections it.:may have and consents to the examination, inspection and audit. of the. books and records of Lessee and any other party associated with the dredging activities. (e) Lessee shall, within 30 days of the State's request, provide copies of all data arising from Lessee's operations on the Leased Lands including, but not limited to, surveys of the Leased Lands conducted by or`for Lessee before and. after dredging under this Lease. All proprietary information and trade secrets shall be held in co~dence bythe State.. 10. Notices: (a) All noticesto be given under this Lease shall be deemed to'have been given when made in writing, sand deposited in the United States mail, first class postage prepaid, addressed as .follows: If to the State: State Lands Commission 100 Howe Avenue; Suite 100 South Sacramento, CA 9=5825 Attention: Dredging Coordinator San Francisco Bay If to the Lessee: City of Petaluma P.O. Box 61 Petaluma, CA 9-4953 . Attn: Mr. Mike Bierman, City Manager The address to which notices shall be mailed maybe changed by written notice as provided for inthis paragraph 10. All notices to be gven~:under-this paragraph shall.be deemed to have been given if made in writing and personally served upon the other party. 1 L Conduct of .Operations: (a) Lessee sfiall safely conduct all dredging,:and disposal operations in accordance with accepted dredging and disposal methods and practices and with due regard for the-protection of life,and property, preservation of the environment-and the conservation of natural resources. 31 ~) ;- Dredging, Lease PRC_7~3-5. I' Page 4 of 8 12. Waste of Resources, Damage, Loss and Liability: Lessee'shall use all reasonable precautions to prevent waste of, damage to, or loss of mineral resources, fisheries, wildlife and the environment on or in the Leased Lands and. shall be liable to State for any such waste, damage or loss to the extent that such waste, damage, or loss is caused by (1) the intentional or negligent acts of Lessee;'its employees, servants, agents or contractors; (2) the breach of any provision of this Lease by Lessee,. its employees; servants, agents or contractors; or (3) the noncompliance of the Lessee, its employees, servants, agents or contractors, with. applicable statutes or rules and regulations of State provided, however, that nothing herein shall diminish any other rights or remedies wluch State may have in connection with any such negligence, breach or noncompliance. 13. Existing Rights: This Lease is'issued subject tq all valid rights, previously granted by the State and existing on the date hereof. Such existing rights shall not be adversely affected by the issuance of this Lease. 14. Other''Easements and Interests: (a) Toahe extent of the right; title and. interest-of the State in the Leased Lands and subject to the ;rights of the Lessee,'hereunder, State shall,have the. right at. any time during the term hereof, or any extension as provided herein, to grant to any person or entity, upon such terms as the State may.determine to be appropriate, such easements, rights of'way, leases, or other interests in the Leased Lands. as the State may in its discretion:determine to be necessary or appropriate. The: State in no event shall grant interests in the Leased Lands that unreasonably interfere with,'impede, disrupt or' endanger Lessee's activities under this Lease. (b) Lessee agrees to allow the .State; the State's easement holders, permittees or lessees to enter upon the Leased Lands in order to conduct sueh prospecting, and mining activities or other authorized activities; provided: that such parties shall provide .Lessee with reasonable advance notice of their- entry on the Leased.. Lands: and the contemplated' activities while on the Leased Lands. The State shall require such parties to indemnify, defend and hold Lessee harmless .from and against any loss, cost,. charge,: cause of `action or other liability of any kind whatsoever that arises out of.such parties activities on, in or associated with the Leased Lands. 15. Entry And.Inspection Uf Leased Lands: State. and its authorized designees shall have the right at all reasonable times to go upon the Leased Lands for the purpose of inspecting Lessee's operations; for the purpose of.maintaining or repairing improvements thereon, for the purpose of placingthereori signs.for fire, police, or wildlife management purposes, all without any effect on payments due hereunder and without liability of the State for any loss of occupation of the Leased'Lands bythe Lessee. erasion Of Operations: Lessee shall immediately suspend all operations under this gY~9. ~ rO ~~Z°~b~ ~2 ~~~ I ~ ~~) Dredging Lease PRC.Zr' S`l~fq~ Page 5 of 8 ~/~ /63 the State's determination that Lessee's operations are causing or.creating undue harm to public safety qr to 'the environment or' are otherwise not in the State's best .interests. Lessee sliall not resume operations under this Lease~until the State has determined-that adequate and feasible .corrective, ormifigative measures will be implemented by Lessee. 17. Default And Remedies: (a) Failure of Lessee to comply with any provision of this Lease or with the laws, regulations or rules applicable thereto shall immediately and without further notice constitute a default or breach of the Lease by`Lessee. (b) In the event of a default or breach by Lessee and Lessee's failure to cure such default or breach within 3'0 days of the State having given written notice of such default or breach, the State :may at anyaime, and witli or without further notice, do any of the following: (1) Re-enter the Lease,Premises, remove all persons and property, and repossess acid enjoy such Lease: Prerriises; (2) Terminate+tliis_Lease and Lessee's rightto possession of the;Zease Prem_ ses. Such termination shall be effective upon the:.State-.giving written notice and upon, receipt of such notice, Lessee shall immediately surrender possession of the Lease 'Premises to Lessor; (3) Maintain this Lease-in full force and effect andrecover any royalty or other consideration as it becomes :due without terminating~Lessee's right of possession regardless of whether Lessee shall have abandoned the Lease .Premises; and/or (4) .Exercise any other right or remedy which Lessor may have at law or equity. 18: Waiver Of Breach: The .State's. waiver of any default or breach of any term, covenant or condition of this.Lease shall ntitconstitute a waiver. of any.otfier:default.or breach whether of the same: or any other term, covenant or. condition, regardless. of the State's knowledge of suchrother d_efaulfs or breaches. The subsequent;acceptance of monies hereunder by the State shall not constitute a waiver of any preceding default or breach of any term, covenant or condition, other than the failure of the Lessee to pay the particular monies so accepted,:regardless of the State's knowledge of such preceding default or breach. at the time of acceptance of such monies. Nor shall"acceptance of monies after termination of this' Lease constitute a reinstatement, extension, or renewal~of this Lease or revocation of any notice or other act by State. I9. Wo"rkers Compensation: Lessee shall at all times in any and all of its operations .hereunder and. any works in and' upon the ,Leased Lands, carry .full and. complete workers - -- -- = =compensation=irisur-ante J~ .~ ~ r` / Dredging. Lease PRC 8Y~1.9 Page 6 of 8 31910 3 22. Taxes: (a) In accepting this Lease, Lessee understands that the interest created herein may be subject to a possessory interesttax imposed by a local or county tax assessor. Any such possessory interest tax°imposed shall not-reduce any royalty-due hereunder and payment of the tax shall be the liability of the Lessee. (b) During the term,hereof the Lessee shall pay, when due; all. taxes and assessments lawfully made.and levied under the laws ofthe State. of Californua or any political subdivision thereof, and of the United States, against any and all improvements,. property or assets of Lessee situated upon the Leased Lands. No such taxes and assessments shall be deductible from royalties or other monetary consideration due under this Lease. . 23. No Warranty Of Title: 'This Lease is issued upon the application of Lessee and is entered into without a formaltitle determination. This Lease shall in no way be construed as establishing the extent ofthe-State's claim of title to anyreal property. The State makes no warranty as to title or. rights of possession or quiet enjoymenfiof the Leased Lands. 24. Assigns--and Successors: This Lease shall not'be assigned without the express prior written approval of State. Any unauthorized assignment shall be null and void, a breach of this Lease and grounds for tenaiinafion.of this Lease. Upon approval of'an assignment by State the covenants and conditions contained herein shall apply to and birid;the heirs, successors, executors; admiiustrators and assigns of all of the parties hereto;:and all parties hereto shall be jointly and severally liable hereunder. 25. `Compliance With Laws, Rules And Regulations: Lessee shall comply with all applicable laws; regulations Nand rules of the United. States, the State of California and counties or cities now or hereafter enacted or promulgated, includng;~without imitations, all applicable provisions of the Public Resources Code, the California Administrative Code, and the Statutes of California,, regardless of which agency or government body may have jurisdiction with respect to enforcement. Lessee also agrees •that in its employment practice hereunder, it shall not discriminate against any person because of race, color, religion, sex, ancestry or national origin. 26. Captions; The captions in this Lease are for convenience only and' are not a part of this Lease and do not in any way limit or amplify the terms and conditions of this Lease. This Lease shall become effective only when approved by and executed on behalf of the State: Lands Commission and a duly executed copy has been delivered to Lessee: The submission of thisLease by. the State, its agent or,representative for examination by Lessee does not. constitute an option or offer to lease the Lease Premises upon the terms and conditions 3~1 ~~ r'S 7 . /~~ ~ 9 ~. ., ) Dredging Lease PRC a~~'S~ g ~~~ ~ y Page 7 of 8 ~ ,o 3~~0)~~ of an executed copy of this Lease to the State -shall constitute an offer to the State to Lease the Lease Premises on-the terms and conditions set forth herein. IN WITNESS WHEREOF, the parties hereto have fully executed this Lease. LESSEE: City of Petaluma B ~~ ~o ~ ._ y: lV~ ~ Q (~1 ~ c~ w~, Title: ~, ~= Date: ~ :0.~ STATE OF CALIFORNIA STATE LANDS COMMISSION By; .1 Title: This Lease was authorized b the State Lands Commission on Z~Zf~O~ _._ __ J 35 Date: ~~ `~ ~ ~a©~