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HomeMy WebLinkAboutStaff Report 5.B 06/05/2017Agenda Item #5.B � E DATE: June 5, 2017 TO: Honorable Mayor and Members of the City Council through City Manager �f FROM: Dan St. Jolt. F., ector, Public Works & Utilities Jason Earl, Manage " ht Analyst SUBJECT: Introduction (First Reading) of an Ordinance Authorizing Approval of Lease PRC7235.1 with the State Lands Commission and Authorizing the City Manager to Execute All Required Documents for Continued Use of Marina Premises on the Petaluma River Located Adjacent to 781 Baywood Drive RECOMMENDATION It is recommended that the City Council Introduce the attached Ordinance Authorizing Approval of Lease PRC7235..1 with the State Lands Commission and Authorizing the City Manager to Execute All Required Documents for Continued Use of Marina Premises on the Petaluma River Located Adjacent to 781 Baywood Drive. BACKGROUND In 1988, by Ordinance 1729 N.C.S., 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 ending June 30, 2018, with one ten -year option to extend. 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 N.C.S. In 1998, Ordinance 2071 amended the lease a second time regarding a rent increase. In December 2009, Ordinance 2350 N.C.S. amended the lease to increase the annual maintenance dredging volume. DISCUSSION In January 2016, the City began discussions with the State Lands Commission regarding the process of obtaining a marina lease to continue or replace the current agreement, which expires June 30, 2618. Consideration was given to seeking a ten -year option to extend the current lease, or to apply for a new twenty -year lease with the State Lands Commission. After several months . of discussion and research it was determined that it was in the City's best interest to obtain a new lease. Benefits of obtaining a new lease included: A 20 year lease, as opposed to 10 year lease extension. • Annual lease payments are set from a base rent, which is then adjusted by CPI, which is easier to calculate and to plan for than the current method of calculating annual rent based on a percentage of last year's revenues. As well, the initial annual lease will be $704 lower than it was last year based on the new lease. • The City may issue, without prior approval, subleases for up to one year for normal commercial marina activities; this will provide greater flexibility in attracting business activities to the marina. • The City is authorized to have up to six liveaboards. Currently "residential use" of the marina is not allowed. This change will allow the City to charge a live- aboard fee to cover the extra costs associated with tenants living aboard their vessel. The City has two years to become compliant with liveaboard allotment. FINANCIAL IMPACTS The City will realize a reduction in the annual lease payment to the State Lands Commission. For fiscal year 2016 -17, the lease payment was $14,184. The amount due for 2017 -18 under the new lease is $13,480. Additionally, the Marina is authorized for an allowance of live- aboard tenants, and will benefit from approximately $30,000 in additional revenue. ATTACHMENTS 1. Ordinance 2. Exhibit A - PRC7235 — City of Petaluma Marina Lease — Section 1 and 2 (Draft) 3. Exhibit B — Land Description 4. Exhibit C — Site and Location Map 5. Exhibit D — Best Management Practices (BMPs) for Marina Owners 6. Exhibit E — BMPs for Boaters 7. Exhibit F - PRC7235 — Attrition Plan 2 ORDINANCE NO. N.C.S. EFFECTIVE DATE OF ORDINANCE Attachment 1 Introduced by Seconded by ORDINANCE AUTHORIZING APPROVAL OF LEASE PRC7235.1 WITH THE STATE LANDS COMMISSION AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL REQUIRED DOCUMENTS FOR CONTINUED USE OF MARINA PREMISES ON THE PETALUMA RIVER LOCATED ADJACENT TO 781 BAYWOOD DRIVE, PETALUMA, CA WITH THE STATE LANDS COMMISSION WHEREAS, THE City of Petaluma 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 pursuant to State Lands Lease No. PRC 7235.1, as amended; and WHEREAS, City and State Lands Commission propose to execute Lease No. PRC 7235.1 to supersede the current lease which is set to expire June 30, 2018; and WHEREAS, the new lease will allow the City up to six liveaboards; and WHEREAS, the new lease, effective *July 1, 2017, is for a term of 20 years set to expire on June 30, 2037. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. The above Recitals are true and correct and incorporated into this ordinance as findings of the City Council. Section 2. The City Council approves the lease, between the State Lands Commission as Lessor, and the City of Petaluma as lessee, a copy of which is attached as Exhibit A. Section 3. On behalf of the City, the City manager is authorized and directed to execute documents substantially in accordance with Exhibit A, as determined by the City Attorney, and 3 all other documents reasonably necessary to complete the lease transaction. Section 4. If any section, subsection, sentence, clause, phrase or work 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 this 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 other otherwise invalid. Section 5. This Ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 6. The City Clerk is hereby directed to publish or post this Ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. 0 RECORDED AT THE REQUEST OF AND WHEN RECORDED MAIL TO: STATE OF CALIFORNIA California State Lands Commission Attn: Title Unit 100 Howe Avenue, Suite 100 -South Sacramento, CA 95825 -8202 STATE OF CALIFORNIA OFFICIAL BUSINESS Document entitled to free recordation pursuant to Government Code Section 27383 A.P.N. 005- 060 -59 County: Sonoma Attachment 2 - Exhibit A to Ordinance LEASE NO. PRC 7235.1 SPACE ABOVE THIS LINE FOR RECORDERS USE 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 3 Section 3 ' General Provisions Exhibit A Land Description Exhibit B Site and Location Map Exhibit C Best Management Practices for Marina Owners /Operators Exhibit D Best Management Practices for Berth Holders and Boaters Exhibit E Attrition Plan SECTION 1 BASIC PROVISIONS THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE LANDS COMMISSION (100 Howe Avenue, Suite 100- South, Sacramento, California 95825- 8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise, and let to CITY OF PETALUMA, hereinafter referred to as Lessee, those certain lands described in Exhibit A hereinafter referred to as Lease Premises, subject to the reservations, terms, covenants, and conditions of this Lease. 1. MAILING ADDRESS: 202 N. McDowell Blvd., Petaluma, CA 94954 2. LEASE TYPE: General Lease — Public Agency Use 3. LAND TYPE: Sovereign 4. LOCATION: Petaluma River, adjacent to 781 Baywood Drive, city of Petaluma, Sonoma County, as described in Exhibit A attached and by this reference made a part hereof. 5. LAND USE OR PURPOSE: Operation, use, and maintenance of an existing commercial marina, known as the Petaluma Marina, with improvements authorized under this Lease and more particularly described herein under "Authorized Improvements." 6. TERM: 20 years; beginning July 1, 2017; ending June 30, 2037, unless sooner terminated as provided under this Lease. 7. CONSIDERATION: As specified in Section 2, Paragraph 1, and subject to modification by Lessor as provided for in Section 2, Paragraph 1(C) of Section 2, Special Provisions. 8. AUTHORIZED IMPROVEMENTS: A commercial marina consisting of 220 uncovered berths, pilings, gangways, fuel dock and pump, launching ramp, restrooms, harbormaster's office, bank protection, and six security vessels. 9. AUTHORIZED ACTIVITIES: Docking, Berthing, Side Tie Mooring, Launching, Harbormaster Office, and Fuel Sales. 10. LIABILITY INSURANCE: N/A 11. SURETY BOND OR OTHER SECURITY: N/A SECTION 2 SPECIAL PROVISIONS BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED, OR SUPPLEMENTED AS FOLLOWS: 1. CONSIDERATION: A. BASE RENT: Lessee shall pay Annual Rental in the amount of $13,480 in advance, on or before July 1st of each year. This rent shall be referred to as "Base Rent" and shall be used to establish the Adjusted Annual Rent for subsequent years through application of the provisions of subparagraphs 1(B) through 1(E) of Section 2, Special Provisions below. B. Expansion of the uses, improvements and activities authorized in Section 1 of this Lease shall be subject to modification of the Base Rent. C. ADJUSTED ANNUAL RENT: Total Base Rent shall be adjusted annually on July 1, 2018, and on July 1st of every lease anniversary thereafter, using the following Rent Adjustment Formula: C Current _ CPI - Prior _ CPI + 1 x Previous Year's Rent= Adjusted Annual Rent Prior CPI 2. For purposes of this agreement, "CPI" means the value indicated for each specified month in the California Department of Industrial Relations "California Consumer Price Index 1955 - 2017) All Items 1982 - 1984 = 100" published periodically with reference to the numeric reported indexes for a specified month of such year, Consumer Price Index for All Urban Consumers, or its successor index, or a reasonably equivalent index acceptable to Lessor and Lessee. The February CPI value for All Urban Consumers, will be used in the Adjustment Formula. If that value is not available, the most current value at the time of the notification will be used. 3. If the Adjusted Annual Rent calculation (paragraph 1 (C) (1), of this Section 2) ever results in a lower rent than the prior year, the rent shall remain the same as the prior year. D. NO PRORATION OF RENT: In the event of the termination of this Lease prior to its expiration date from any cause whatsoever, any annual rental paid in advance shall not be prorated. E. LESSOR'S OPTION TO ESTABLISH NEW RENTAL METHODOLOGY AT THE 10- YEAR ANNIVERSARY: Section 3, Paragraph 3(c) of General Provisions is deleted in its entirety and replaced with the following: 1) Lessor may, at its option, elect to establish a new Total Base Rent effective on the l Otn anniversary of this Lease. The new Total Base Rent shall be established through the use of the methodology suitable for the circumstances and in the State's best interests. Should Lessor elect to use appraisals, then upon notification to Lessee by Lessor of this election, Lessor and Lessee shall, in good faith, meet, negotiate and agree upon the terms and conditions for such appraisal, including the standards and methodology of the appraisal and how the appraiser or appraisers will be chosen. The appraisal shall be prepared in accordance with generally accepted appraisal standards as they are adopted from time to time by the Appraisal Standards Board of the Appraisal Foundation and in accordance with the provisions of this Section 2, Paragraph 1(E) of Special Provisions. Lessee shall contract directly with an appraiser, jointly selected by both Lessor and Lessee, who shall perform the appraisal in accordance with the provisions of this Section 2. Paragraph I.E. The appraiser selected may include either Lessor's staff, or a qualified private individual or film. 2) Should Lessor fail to exercise its right to establish a new Total Base Rent on the l Otn anniversary of this Lease, it may do so at any one of the next nine (9) anniversaries following such 10th anniversary. No new Total Base Rent shall become effective until Lessee is given 60 days written notice of the effective date of the new Total Base Rent. Beginning on the first anniversary of the establishment of the new Total Base Rent established, under this Section 2, Paragraph 1(E), the new Total Base Rent shall be adjusted under the provisions of Section 2, Paragraph 1(C). 3) If Lessor does not establish a new Total Base Rent as set forth in this Section 2, Paragraph 1(E), Lessee shall continue to pay to Lessor an Adjusted Annual Rent as calculated in Section 2, Paragraph 1(C). 2. INVOICES: Lessor may prepare and send an invoice to Lessee for rent due and to notify Lessee of what CPI value was used in the calculation of the new Adjusted Annual Rent. Lessee acknowledges that such invoicing is for Lessee's convenience and that Lessor's failure to invoice shall not relieve Lessee of its obligation to timely pay rent as otherwise stated in this Lease. If Lessor has not yet sent an invoice, Lessee is permitted to pay prior year's rent amount until invoiced differently by Lessor. OPERATOR FOR ALL PURPOSES OF THIS LEASE: "Operator" shall refer both individually and collectively to Lessee, its operators, sublessees, contractors, and concessionaires conducting activities from, on, over or adjacent to the Lease Premises. 4. BOOKS AND RECORDS: A. Lessee and /or Operator shall maintain books and records for the term of the Lease of all financial transactions relating to the Leased Premises in accordance with generally accepted accounting principles. These records shall be supported by source documents such as agreements with renters, copies of invoices, receipts, and other pertinent documents. Lessor may inspect all of Lessee's and /or Operator's books, records, and documents relating to the operations on the Lease Premises, at all reasonable times and with reasonable notice. Records shall include, but not be limited to, Lessee's and /or Operator's Federal and State Income Tax Returns, and Board of Equalization Tax Returns in order to corroborate information shown on reports to Lessor. All reports submitted to the Lessor are subject to audit and revision by the Lessor. Any statutory or other rights that the Lessee and /or Operator may have to object to such inspection by Lessor are hereby waived. B. Upon Lessor's written request to Lessee, Lessee shall submit a Report of Gross Income with all supporting documentation regarding Lessee's and /or Operator's operations on the Lease Premises (hereinafter collectively referred to as "Income Reports ") and under this Lease for the prescribed annual reporting period of July 1 to June 30. Provided Lessor requests a Gross Income Report, Lessee shall provide these reports to Lessor on or before September 30th of each year and cover all operations and activities within the Lease Premises. The Report of Gross Income shall include, but are not limited to: 1) All business operations located on or over the Lease Premises shall report gross income for the complete business operation located on or over the Lease Premises. Then the appropriate percentage of the business operation over the Lease Premises as shown in Paragraph 8 and 9 of Section 1, Basic Provisions, shall be applied to derive the gross income derived from the Lease Premises. 2) The gross income of Lessee, its Operators, sublessees, contractors, concessionaires and all others generating income shall be reported separately and with sufficient organization and detail so that Lessor can identify the source of all gross income generated from, on or over the Lease Premises. 3) Gross Income: 1) To the extent applicable to activities conducted on this leasehold, Gross Income shall include all income earned on or over the Lease Premises by the Lessee and /or Operator including, but not limited to: a) The charges made by the Lessee and /or Operator for the berthing, docking, mooring or launching of boats whether for cash or credit and whether paid or not; b) The sales price of any type of food and /or beverage sold by the Lessee and /or Operator whether for cash or credit and whether paid or not; c) The charges made by the Lessee or others for the rental of office space, or any other equipment or product, whether for cash or for credit and whether paid or not; d) The sales price of all other goods, wares, merchandise, fuel, or products sold by Lessee or others whether for cash or credit and whether paid or not; e) Any other income, whether for cash or credit generated directly from, over or on, the Lease Premises by the Lessee and/or Operator or any other person's operations and whether paid or not; 2) Allowable Deductions to Gross Income: Gross Income shall not include any sales or excise taxes payable by the Lessee and /or Operator 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 Lessee's and /or Operator's books and records. Checks and credit card payments returned for insufficient funds or account closures, and credit card fees may also be deducted from gross income provided that these items are clearly segregated and identified in Lessee's and /or Operator's books and records. 3) Allowable Deductions to Gross Sales: Gross sales may be reduced by returns and allowances on the theory that these sales were never made, and should not have been included as part of the gross sales, but gross income shall not be reduced by any other amount other than specified in the preceding Paragraph (2). 4) Cash: Cash includes currency, coin, checks, and money orders. 5) Credit: Credit includes credit card transactions and those transactions made on an open account for any oral or written promise to pay. 5. MARINA BERTH SUBLETTING: Paragraph 5(h) and 11 of Section 3, General Provisions is hereby amended as follows: A. Lessee and /or its operators may issue, without Lessor's prior approval, individual berthing subleases in conjunction with normal commercial marina subleasing practices for terms of one year or less. B. Upon request, Lessee shall provide Lessor with a summary report of berthing activities, including, but not limited to, the number of subleases in effect on the date of the report, the number of new subleases since the date of the last report, and the number of subleases terminated since the last report. This activity summary shall include monthly berth rates and assigned slip numbers. C. Individual Berth Subleases shall not be transferable and shall convey no greater rights to a specific berth than the rights set forth in the sublease agreement and shall be subject to all Lease conditions, restrictions and covenants, including, but not limited to, the prohibition of liveaboard use. D. Except as authorized under subparagraphs 5(A), (B) and (C) above, relating to subleasing for individual berthing or mooring, Lessee may sublet only with the prior written consent of Lessor and only for public trust purposes of water - related commerce, navigation, fisheries, recreation and open space, except as otherwise approved by Lessor. 6. MARINA OPERATION AND MANAGEMENT: A. Lessee and /or its Operators shall not assign or transfer the operation or management of the marina facilities on the Lease Premises without the Lessor's prior approval as provided for in Section 3, Paragraph 11 of this Lease. B. Expansion of the uses, improvements and activities as set forth in Section 1 of this Lease shall be subject to Lessor's prior written consent and may be subject to environmental review prior to their commencement. C. New Concession Subleases /Operating Agreements in Excess of One Year: Any sublease /operating agreement for any purpose and having a term in excess of one year shall be approved by Lessor pursuant to Section 3, Paragraph 11 of this Lease. D. "Operator ": For purposes of this Lease an "Operator" is defined as the Lessee and any of its sublessees, contractors, concessionaires, licensees or other parties conducting any authorized activity on the Lease Premises on behalf of Lessee or any other party. E. Lessee and /or its operators may designate no more than six navigable vessels to be occupied and used for the sole purpose of providing 24 -hour marina security. The designated vessel shall be located in strategically designated slips, subject to the approval of Commission staff, and shall be required to leave the Lease Premises at least once, for a minimum of six hours, each 90 -day period. Lessee shall submit to Lessor an annual report covering the security activities for the year, which shall include the name, slip number and vessel identification number of the designated security vessel; a summary of the incidents for the year pursuant to the duty statement; and a log with the scheduled security vessels departure and return to the marina each 90 -day period. The report and log shall be made available to Lessor upon request. Ift F. Notwithstanding subsection E above, no liveaboards or residential use shall take place on the Lease Premises. 7. MARINA DREDGING: No dredging of any kind shall be conducted under the terms of this Lease without separate authorization from the Lessor. 8. REFUSE CONTAINERS: Lessee shall provide containers on or immediately adjacent to the Lease Premises to receive trash, refuse and recyclables generated aboard vessels using Lessee's docking or launching facilities. Refuse and recycle containers shall be located so as to be conveniently used by occupants of vessels using Lessee's facilities and shall be of sufficient size and number to contain the refuse generated aboard all vessels using Lessee's facilities. The containers shall be covered and emptied regularly enough to prevent them from overflowing or creating unhealthful, unsightly or unsanitary conditions. The contents of the containers shall be disposed of by Lessee or others acting pursuant to Lessee's direction at authorized landfills or other garbage and recycle reception areas as provided under law applicable at the time of collection. 9. PLASTICS: A. Lessee shall not provide for sale, or allow other parties to provide, any prepared food in polystyrene foam containers or packaging, nor shall Lessee, or other parties, keep on the Lease Premises any polystyrene foam containers or packaging of a type, design and condition appropriate to the preparation of food for consumption on or off the Lease Premises. B. All packaging for prepared food that is consumed on or off the Lease Premises, or for takeout service, shall be degradable. Lessee shall provide, upon demand, copies of paid invoices that verify the purchase of degradable containers in quantities sufficient to validate Lessee's compliance with this provision. C. For purposes of this Lease, the following definitions are applicable. 1) "Prepared food" means foods or beverages which are prepared on the lease premises by cooking, chopping, slicing, mixing, freezing or squeezing, and which require no further preparation to be consumed. 2) "Food packaging" means all bags, sacks, wrapping, containers, bowls, plates, trays, cartons, cups, straws and lids which are not intended for reuse on or in which any foods or beverages are placed or packaged on the Lease Premises. 3) "Takeout food" means prepared foods or beverages requiring no preparation to be consumed and which are purchased in order to be consumed off the Lease Premises. 4) "Polystyrene foam" means any styrene or vinyl chloride polymer that is blown into a foam -like material, an example of which is commonly known as "Styrofoam ". 5) "Degradable food packaging" means food packaging which within two years substantially reduces to its constituent substances through degradation processes 11 initiated by natural organisms whose end products are substantially, but not necessarily entirely, carbon dioxide and water. Degradable food packaging does not include cellulose -based items that have a synthetic or plastic coating comprising more than 5% of the total volume of the item. D. The above conditions shall be in effect until such time as the State Lands Commission adopts regulations and /or policies on the subject of plastic pollution. To the extent that such policies or regulations differ from the foregoing provisions and definitions, the parties hereby agree that the Lease will be amended to incorporate the policies adopted by the State Lands Commission. 10. SPILL PREVENTION CONTROL AND CONTINGENCY PLAN: Annually, Lessee shall provide Lessor with a spill prevention control and contingency plan satisfying requirements of the Office of Oil Spill Prevention and Response and any other state, federal or local agency having jurisdiction over the facility. 11. PETROLEUM PRODUCTS HANDLING: The draining or dumping of petroleum products on or adjacent to the Lease Premises is strictly prohibited. Lessee shall post notices and provide active enforcement against the draining or dumping of petroleum products, on or near the Lease Premises. 12. MARINE FUEL DISPENSER AND FUEL LINE: All future repairs, structural modifications or abandonment /removal of the fuel dispensing line or fuel dispenser within the Lease Premises shall require prior review and approval by Lessor. In the event of an urgent repair requiring immediate action, telephone contact can be made through Lessor's 24 -hour emergency response number (562) 590 -5201. 13. BEST MANAGEMENT PRACTICES: Lessee agrees to implement the Best Management Practices (BMPs) for Marina Owners /Operators contained in Exhibit C to this Lease, and by this reference made a part hereof. Lessor reserves the right to modify existing BMPs or require that additional BMPs be implemented as technology changes, if existing BMPs are not being followed, and /or existing BMPs are found to be ineffective. 14. Lessee shall include and incorporate the following provisions into all berth and /or mooring rental agreements entered into after the Effective Date of this Lease: A. A provision which requires that berth holders maintain their boats in a safe operating condition, including suitable restrictions on maintenance activities performed at the marina by berth holders, such as express prohibitions against any bottom paint application or removal and engine and hull washing; B. A provision which requires that boat engines shall be in compliance with all applicable pollution control measures and the berth holders shall exercise their best efforts to reduce air and water pollution; C. A provision which incorporates the BMPs for Berth Holders and Boaters as contained in Exhibit D to this Lease, and an acknowledgment by berth holders that the BMPs may be 12 amended from time to time by Lessor. In addition, Lessee shall encourage its tenants to follow the BMPs for Berth Holders and Boaters by posting such publication in a prominent place within the Lease Premises. D. Lessee shall, on the first anniversary of the Lease and on every third anniversary of the Lease thereafter, provide Lessor a report on compliance with the BMPs required under this Lease. 15. CLIMATE CHANGE Lessee acknowledges that the Lease Premises and adjacent upland are located in an area that may be subject to effects of climate change, including sea -level rise. In addition, the Authorized Improvements in Section 1 herein may require more frequent maintenance to avoid degradation or dislodgement and to ensure continued function during unusual storm and wave events, and after storm seasons. To prepare for the potential effects of sea -level rise, including damage from flooding, erosion, tsunamis, waves, and storrn- created debris, the Lessee shall comply with the following: 1) Lessee shall conduct a structural assessment of the Authorized Improvements within 180 days of tenth lease anniversary date. The structural assessment shall be performed by a civil or structural engineer licensed by the State of California. Such assessments shall be submitted to Commission staff for review and comment within 30 days of completion. 2) Lessee shall conduct visual inspections of the Authorized Improvements annually at the end of each storm season and following all major storm events or unusual wave events such as caused by hurricanes, tsunamis, or King Tides. A written narrative report detailing such inspections shall be prepared and submitted on or before May 15 of each year for the term of the Lease. The report shall include, but not be limited to: 1) the dates of any major storm events and inspections; (2) who conducted the inspections and their credentials; (3) detailed descriptions of any damage identified including pictures; (4) any repairs /maintenance performed or planned as a result of identified damage; and (5) any repairs identified in previous reports but not completed prior to report submission. 3) Consistent with Section 3, Paragraph 8, the Lessee assumes the risks associated with the potential hazards related to sea -level rise and agrees to be solely responsible for all damages, costs, and liabilities arising as a result of the impacts of such hazards on the Lease Premises. Any additional maintenance or protection strategies necessitated by such hazards may require additional approval by Lessor pursuant to Section 3, Paragraph 5(a) and be subject to environmental review. 16. APPLICATION FOR NEW LEASE: Lessee agrees to submit no later than two years prior to the expiration of this Lease either: (a) an application and minimum expense deposit for a new Lease for the' continued use of the Lease Premises, or (b) a plan for the restoration of the Lease Premises to be completed prior to the expiration of the lease terms, pursuant to Paragraph 12 of Section 3, General Provisions, of this Lease. Failure to submit the application and minimum expense deposit or the restoration plan shall be deemed a default of the Lease under Paragraph 12(b) of Section 3, General Provisions, of this Lease. 13 17. LIVEABOARD ATTRITION PLAN: Lessor and Lessee agree to the June 22, 2017 "Attrition Plan" (Exhibit E) whereby, within two years from the beginning date of the lease, the seven liveaboard vessels will be relocated off sovereign land. Notwithstanding the above plan, Lessee shall at all times comply with Paragraph 5(g) of Section 3, General Provisions, of this lease. Lessee agrees to provide staff with quarterly progress reports beginning September 22, 2017, reporting the status of the attrition plan. This attrition plan must be completed no later than June 30, 2019. 14 Attachment 3 - Exhibit B to Ordinance PRC 7235.1 LAND DESCRIPTION Being portions of the land described in Deed No. 9789 and Deed No.. 17660, recorded February 19, '1953 and January 27, 1956 in Books 11.89 and 1410 of Official Records; pages 305 and 451, Sonoma County Records, and being a portion of the Petaluma Ranch in Townships 4 and 5 North, Range 7 West, M.D.B. &M., more particularly described as follows: PARCEL 1 Commencing at the easterly terminus of the, curve with an arc length of 785.9 feet, as. described in that Deed to Northwestern Pacific Railroad Company, a corporation, recorded October 24, 1916 in Book 345 of Deeds, page 266, Sonoma County Records, said point lying on the southerly line of the Northwestern Pacific Railway right -of -way; said point of commencement being indicated as Point "C" on that Record of Survey recorded in Book 185 at page 15 of Maps, Sonoma County Records; thence southeasterly on a tangent to said curve South'760 59' 12" East 785.10 feet to the Point of Beginning of the herein described parcel; thence South 10° 09' 03" West 560.70 feet; thence South 09° 07' 21" East 127.39 feet; thence* South 61° 06' 16" East 248.49 ,feet; thence South 070 18' 10" West 130.65 feet; thence South 54° 52' 52" West 142.34 feet; thence South 67° 44' 27" West 100.44 feet;. thence South 50° 53' 43" West 406.86 feet; thence North 42° 34' 57" West 369.13 feet; thence North 30° 57' 48" West 554.14 feet; thence South 41° 04' 00" East .121.55 feet; thence South 03° 56' 00" West 143.43 feet; thence.South 86° 4' 00" East 77.00 feet; thence North 26° 12' 53" East 123.30 feet; thence North 15° 42' 15" East 93.94 feet; thence North 05° 09' 40" East 140.00 feet; . . thence North 10° 16' 45" East 278.00 feet; Page 1 of 3. 15 thence North 14° 34' 00" East .196.00 feet; thence South 76'59' 12" East 30.00 feet to the Point. of Beginning, containing 7.527 acres more or less. PARCEL 2 Commencing at the easterly terminus of that curve with an arc length of 785.9 feet, as described in that Deed to Northwestern Pacific Railroad Company, a corporation, recorded October 24, 1916 in Book 345'of Deeds, page 266, Sonoma County Records, said point lying on the southerly line of the Northwestern Pacific Railway right -of -way, said point of commencement being indicated as Point "C ", on that Record of Survey recorded in Book 185 at page 15 of Maps, Sonoma County Records; thence along said curve to the left with a radius of 352.20 feet,'through a central angle of 71° 24' 08 ", an - are length of 438.91 to the Point of Beginning of the herein - described parcel; thence- - South 411 04' 00" East 362.99 feet;. thence North 48° 56' 00 East 203.43 feet; thence South 41° 04' 00" East 221.00 feet; thence South 03° 56' 00" West 33.00 feet; thence South 48° 56' 00" West 83.50 feet; ---- - - - -- - - -- thence -South 41° 04 -00 "East 292. 00 - eet; - -- - - - - -- -,. - - - - - -- ------- -- --- - - - - -- --- thence North 48° 56' 00" East'91.00 feet; thence South 86° 04' 00" East 28.50 feet; thence'South 41° 04' 00" East 24.45 feet; thence South 300 57' 48" West 554.14 feet; thence South'420 34' 57" East 45.98 feet; thence a curve to the right with a radius of 145.00 feet, through a central angle of 17° 56' 47 ", for an arc length of 45.42 feet; thence North 24°38' 10" West 696.54 feet; thence along.a curve to the left with a radius of 255.00 feet, through a central angle of 08° 16' 47 ", for an are length of 36.85 feet; thence North 320 54' 57" West 214.09 feet; thence along a curve to the right with a radius of 145.00 feet through a central. angle of 08° 16' 47" for an are length of 20.95 feet; thence North 240 38' 10" West 67.50 feet to a point on the previously described curve with a radius of 352.20 feet; thence along said curve in a northeasterly direction from a tangent which bears North 210 46' 00" East, through a central angle of 090 50'.40" for an arc length of 60.51 feet to the Point of Beginning, containing 6.457 acres, more or fes�. Page 2 of 3 16 END OF DESCRIPTION Prepared 08/30/2016 by the California State Lands Comunission Boundary Unit. Page 3 of 3 - 17 NO SCALE' PARCEL 2 Attachment 4 - Exhibit L to SITE APT 005060 -59 rnce PARCEL 1 781 BAYWOOD DRIVE, CITY OF PETALUMA NO SCALE LOCATION PRC 7235.1 _. _ t 4.1 . CITY OF PETALUMA _ _ .: ` �+:� ..: , l-.`;. /„' I �;;'.� •_ '> , r -. tiekS 1UNA k o- :,�:� }{ ,r�J. -�-.. ` APN 005- 060 -59 i`. ' °"�._" �'�. :�,� ��yr^�'� =�i +¢, • ?L. �.�.i �t3 .J T� �tx'5,,(<<.: s% >„� >`.;�rs�•�r���',Ei,` �?.�' GENERAL LEASE .� "�:, e e `• •.+.h.' , h, � �' . - ,'<\ . -4 `tn/" ,�, u.r' r�'t, �. ..p ,; ;;�..i:�_ ::�;•, PUBLIC AGENCY USE e..ti!.'Si� :r (� _,�= -i7�li �.: `!,:1 `•71�t SONOMA COUNTY' .�. 'a �r.,. �)t ;R j ii.., l :is�f{ i if • .:.%"i2��i°'C: ,�'�� + .. & =_l.. MAP SOURCE: USGS QUAD This Exhibit is solely for purposes of generally defining the lease premises, is based on unverified information provided by the Lessee or other parties and is not iniended to be, nor shall it be construed as, a waiver or limitation of any State interest in the subject or any other property. • Rvn 18 Attachment 5 - Exhibit D to Ordinance BEST MANAGEMENT PRACTICES FOR MARINA OWNERS / OPERATORS Petroleum Management Instruct staff not to use detergents or emulsifiers on a fuel or oil spill. Post emergency telephone numbers to report oil or chemical spills in prominent locations at the marina. Recommend the installation and use of fuel /air separators on air vents or tank stems of inboard fuel tanks to reduce the amount of fuel spilled into surface waters during fueling. Provide a collection site for used oily pads and used oil or provide information on how and where to dispose of them. Hazardous Wastes Have a marina policy to manage hazardous wastes and hazardous materials. Post a prohibition on the disposal of used oil, antifreeze, paint, solvents, varnishes and batteries into the dumpster or general collection waste receptacles. If you provide for hazardous waste collection, manage the wastes in a proper fashion through the use of structurally sound, non - leaking containers, in accordance with all local, state and federal laws. In the event of a spill or leak, clean up and dispose of materials promptly and properly and report the spill to all appropriate entities. If operating a collection facility is not feasible, provide information to your tenants on how and where to dispose their wastes. Encourage the use of alternative products to hazardous household chemicals. There are many non -toxic or less -toxic products that can be used as alternatives. T Attachment 5 - Exhibit D to Ordinance Emergencies Have an updated map of important shut off valves and make sure all employees know the locations. Keep your list of Emergency Phone Numbers and contact persons updated. Be sure that all employees are trained in emergency procedures and that they know their responsibilities for each situation as designed in an Emergency Response Plan. Underwater Boat Hull Cleaning Require the use of legal hull paints to reduce the possibility of contamination when performing hull cleaning. Boat Sewage Discharge If your marina operates a pump out facility, install adequate signs to identify the station, its location and hours of operation. Provide the service at convenient times and at a reasonable cost. Make the pump outstation user friendly. Develop and adhere to a regular inspection and maintenance schedule for the pump out station. Provide educational information about the pump out station to boaters. Inform berth holders of existing local, state and federal regulations pertaining to the use of Marine Sanitation Devices and the illegal discharge of boat sewage. Post a list of local pump out locations in a conspicuous location such as the entrances to the docks. Solid Waste Keep litter picked up. Place trash receptacles and dumpsters in convenient locations for boaters and guests. 20 Attachment 5 - Exhibit D to Ordinance Use covered dumpsters and trashcans so they do not fill up with rainwater and do not blow away in heavy winds. Keep trash enclosures clean and free of debris. Keep cleanup equipment and materials available. Inspect trash storage areas regularly. Dispose of all solid wastes in accordance with local, state and federal laws and regulations. Liquid Waste Train marina employees in oil spill response procedures. Keep adequate spill response equipment and materials in strategic locations. Storm Water Runoff Maintain a Storm Water Pollution Prevention Plan. Report spills that have entered or have a potential to enter a water body to appropriate agencies. Provide signage adjacent to any storm drain inlet to discourage illegal dumping of pollutants. Provide signs adjacent to parking lots that prohibit littering, dumping and vehicle servicing or washing. Develop and implement a regular sweeping / cleaning program for hard surface areas. Reduce or eliminate landscaping and irrigation runoff into the waterway. 3 21 Attachment 6 - Exhibit E to Ordinance BEST MANAGEMENT PRACTICES FOR GUEST DOCK USERS1 AND BOATERS Bilge Water Management Keep bilge area as dry as possible Regularly check fittings, fluid lines, engine seals, and gaskets Fix all oil and fuel leaks in a timely manner Do not drain oil into the bilge Fit a drain pan, if feasible, underneath the engine to collect drips and leaks Consider the use oil- absorbent pads, even in small boats. If a bilge contains oil, absorb as much free oil as possible with a pad. Then pump the bilge dry and wipe down the bilge and equipment. If a bilge is severely contaminated, use a pump out service. Never pull the drain plug on a boat with a bilge full of oil, especially if it is on a launch ramp. Dispose of oil- soaked absorbents at a proper facility. Check with the marina operator for guidance. Do not use detergents or bilge cleaners unless the bilge can be pumped into an appropriate facility. Petroleum Containment Fill portable fuel containers on land or on the fuel dock to reduce the chance of fuel spills into the water. Avoid overfilling fuel tanks and attend the fuel nozzle at all times. Perform all major engine maintenance away from surface water. Any maintenance work on an engine must be done in compliance with rules and regulations governing the marina. 1 If the lease is a marina with berths that are rented, use "BERTH HOLDERS" instead of "GUEST DOCK USERS ". 22 Use petroleum absorption pads while fueling to catch splash back and the any drops when the nozzle is transferred back from the boat to the fuel dock. Keep engines properly maintained for efficient fuel consumption, clean exhaust, and fuel economy. Follow all manufacturers' specifications. Immediately report oil and fuel spills to the marina office and the U.S. Coast Guard National Response Center (Phone # 1 (800) 424 -8802) and other appropriate agencies. Hazardous Materials Improper handling of hazardous materials can cause harm to human health and the environment and can result in serious penalties and expensive cleanup costs if contaminations occur. Hazardous wastes generated by recreational boaters are considered household hazardous waste. Dispose of household hazardous waste in properly marked containers if provided by the marina or at the nearest appropriate site. Vessel Sewage Boaters should never pump out any holding tank in waters inside the three nautical mile limit. Always remember that it is illegal to discharge raw sewage from a vessel into U.S. waters. Pumpout facilities should be used to dispose of stored waste whenever possible. They are fast, clean, and inexpensive. Marine sanitation devices (MSDs) must be maintained to operate properly. Keep your disinfectant tank full, use biodegradable treatment chemicals, and follow the manufacturer's suggested maintenance program. Do not dispose of fats, solvents, oils, emulsifiers, disinfectants, paints, poisons, phosphates, diapers, and other similar products in MSDs. Whenever possible, use land -based rest rooms rather than onboard ones. Vessel Cleaning and Maintenance Ask your marina manager what types of maintenance projects are allowed in the slip. 2 23 Minimize the use of soaps and detergents by washing your vessel more frequently with plain water. Do not use cleaners that contain ingredients such as ammonia, sodium, chlorinated solvents, or lye. Use hose nozzles that shut off when released to conserve water and reduce the runoff from boat washing. Ventilate your space to prevent the accumulation of flammable or noxious fumes. Use eye protection and a respirator when there is the possibility that dust and debris could damage eyes or lungs. Remove oil, debris and clutter from your immediate work area and dispose of properly. Avoid spills in the water of all solvents, paints and varnishes. Carefully read labels to ensure the products are used in a manner that is safe and won't harm the environment. Use teak cleaners sparingly and avoid spilling them or fiberglass polishers in the water. Sanding and Painting When working in marinas, use designated sanding and painting areas. Check with the marina manager for the location and proper use of these areas. Work indoors or under cover whenever wind can potentially blow dust and paint into the open air. Where feasible, use environmentally friendly tools, such as vacuum sanders and grinders, to collect and trap dust. Some marinas have this equipment for rent, check with the manager. Clean up all debris, trash, sanding dust, and paint chips immediately following any maintenance or repair activity. Use a drop cloth beneath the hull to catch sanding dust and paint drops when working over unpaved surfaces. When sanding or grinding hulls over a paved surface, vacuuming or sweeping loose paint particles is the preferred cleanup method. Do not hose the debris away. 3 24 Buy paints, varnishes, solvents, and thinners in sizes appropriate for the proposed work to avoid having to dispose of stale products. When possible, use water -based paints and solvents. Switch to longer lasting, harder, or non -toxic antifouling paint at your next haul out. Paints, solvents, and reducers should be mixed far from the water's edge and transferred to work areas in tightly covered containers of 1 gallon or less. Keep in mind that solvents and thinners may be used more than once by allowing the solids to settle out and draining the clean product off the top. When in doubt about proper disposal practices, check with your marina and /or appropriate government agency. Boaters should report any illegal discharge of boat sewage to the marina office or appropriate agency. Boaters should use environmentally sensitive cleaning supplies that may end up in your gray water. Boat Hull Cleaning and Maintenance Ensure hull paint is properly applied and maintained to protect the hull from fouling organisms and thus improve your boat's performance. Wait 90 days after applying new bottom paint before underwater cleaning. Schedule regular hull cleaning and maintenance to reduce the build up of hard marine growth and eliminate the need for hard scrubbing. Regularly scheduled gentle cleaning will also increase the effectiveness of the antifouling hull paint and extend its useful life. Repair paint bonding problems at haul out to avoid further chipping and flaking of paint in the water. Use, or ask your diver to use, non - abrasive scrubbing agents, soft sponges or pieces of carpet to reduce the sloughing of paint and El N debris. Boaters are encouraged to use boat hull cleaning companies and individuals that practice environmentally friendly methods. Solid Waste Do not dump plastic or any other trash into the water. Use the dumpsters, trash receptacles and other approved containers to dispose of garbage and other waste. 5 26 Attachment 7 - Exhibit F to Ordinance City of Petaluma Petaluma Marina Attrition Plan June 22, 2017 The following represents the attrition plan to transition individuals who are categorized by the California State Lands Commission as living aboard navigable vessels currently berthed or anchored in the Petaluma Marina. It is not known whether or not the individuals have residences in the region. However, it is known that 13 vessels in the Petaluma Marina do have individuals staying overnight on a regular basis. Based on the marina layout and the number of berths, a total of six liveaboards (or two per access gate), referenced in the lease as security vessels, are authorized pursuant to the terms of the lease. Therefore, seven navigable vessels will need to relocate elsewhere or change the use from liveaboard to recreational. Owners of the seven navigable vessels shall receive notification of the requirement to begin a process of looking for a new place to live. The goal will be to move them as quickly as possible. The City of Petaluma will submit a report quarterly to the California State Lands Commission regarding the progress of the attrition plan. The first quarterly report shall be submitted no later than September 22, 2017. This attrition plan must be completed no later than June 30, 2019. City of Petaluma Petaluma Marina Title: Date: 27