HomeMy WebLinkAboutOrdinance 2617 N.C.S. 06/19/20171
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EFFECTIVE DATE ORDINANCE NO. 2617 N.C.S.
OF ORDINANCE
July 19, 2017
Introduced by Seconded by
Mike Healy Teresa Barrett
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.
PRD 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 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.
Ordinance No. 2617 N.C.S.
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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.
INTRODUCED, and ordered posted /per, this 5th day of June, 2017.
ADOPTED this 19th day of June 2017, by the following vote:
Ayes:
Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller
Noes:
None
Abstain:
None
Absent:
None
David Glass, Mayor
ATTEST: APPROVED AS TO FORM:
Claire Cooper, City Clerk
Eric W. Danly, City Attorney
Ordinance No. 2617 N.C.S.
Page 2
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 flee recordation
pursuant to Government Code Section 27383
A.P.N. 005- 060 -59
County: Sonoma
LEASE NO. PRC 7235.1
Exhibit A
SPACE ABOVE MIS LINE rOR RECORDER'S USG
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.
Ordinance No, 2617 N.C.S. Page 3
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.
S. 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.
Ordinance No. 2617 N.C.S. Page 4
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:
l . (Current CPI - Prior CPI + r x Previous Year's Rent = Adjusted Annual Rent
Prios• _ 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 fiom 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 10'11
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
firm.
2) Should Lessor fail to exercise its right to establish anew Total Base Rent on the 10th
anniversary of this Lease, it may do so at any one of the next nine (9) anniversaries
Ordinance No. 2617 N.C.S. Page 5
following such 10" 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.
3, 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.
Ordinance No. 2617 N.C.S. Page 6
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:
Ordinance No, 2617 N.C.S. I Page 7
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 terns 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.
Ordinance No. 2617 N.C.S. Page 8
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 fi-om 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 ".
S) "Degradable food packaging" means food packaging which within two years
substantially reduces to- its constituent substances through degradation processes
Ordinance No. 2617 N.C.S. Page 9
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 inarina 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
Ordinance No, 2617 N.C.S. Page 10
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 storm - 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 stormm 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.
Ordinance No. 2617 N.C.S. Page 1 1
17. LIVE ABOARD 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.
Ordinance No. 2617 N.C.S. Page 12