HomeMy WebLinkAboutAgenda Bill 1.B 03/01/2004CITY OF PETALUMA; CALIFORNIA
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Agenda Title Resolution .Approving Termination of the Lease
Meeting Date: March 1, 2004
With M&Bail Company for the Alderwood Well.
Meeting Time 3:00 PM
❑ 7:00 PM
Category (check one) Consent Calendar ❑ PublieUear ng ❑ New Business
❑ Unfinished Business ❑ Presentation
Department
Director.
Contact Person
Phone,Number
Water Resources &
Michael Ban
Michael -Ban
(707) 778 -4487
Conservation
Fleming Nguyen :
(707)
Cost of Proposal $0
Account Number
N/A
Amount Budgeted N/A
Name of Fund:
N/A
Attachments to Agenda Packet Item
®, Agenda Bill
® Resolution
® Attachment A— Location Map
® Attachment B — Copy of the Lease
Summary Statement
The City is interested in terminating -an existing lease with MCBail .Company for the land where the
Alderwood Well is situated, The well hasj not been used for many years because it does not meet current
Department of Health Services standards for water quality.
Recommended City Coun'ciLAetion /Su2aested Motion
City Management recommends' the City Council approve the resolution approving° >the lease termination.
Reviewed by Finan Director:
Reviewed by City Attorney
Date:
A roved b..v)"; Mana er:
Dater
1
o
D
�
�R) 17
t
day's Date
Revision # and Date Revised:
File Code:
1/20/04
#
S/WR &C /Water /Agendas /Alderwood Well-
McBail Company 3 -1 -04
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CITY OF PETALUMA, CALIFORNIA
MARCH 1 9 2004
AGENDA REPORT
FOR
APPROVING TERMINATION OF THE LEASE WITH MCBAIL COMPANY FOR THE
ALDERWOOD WELL
1. EXECUTIVE SUMMARY
The City is interested in terminating, an existing lease with,McBail Company for the land where
the Alderwood Well is situated. The well.has not been used for many years because it does not
meet current Department of.Health Services standards for water quality.
2. BACKGROUND
The Alderwood Well, which is located at East Washington Street and Redwood Circle, has not
been used by the City for many years. It ,does not meet current Department of Health Services
standards for water quality (high iron content) and has very' low capacity. The well's location is
shown on Attachment A.
3. ALTERNATIVES
Alternatives for this project 'include: .
1. Approve the resolution approving termination of the lease.
2. No actions
4. FINANCIAL IMPACTS
None.
CONCLUSION
Following the authorization, the Utility Manager of the Department of Water Resources &
Conservation will send a lease termination notice to McBail Company.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL.IDENTIFY SUCCESS OR
COMPLETION:
Termination of the lease.
1
7. RECOMMENDATION 0
It is recommended that the City Council adopt the resolution terminating the lease.
8. ATTACHMENTS
• Attachment A — Location, Map
• Attachment B — Copy ofthe Lease
2
APPROVING TERMINATION OF THE LEASE WITH MCBAIL .COMPANY FOR THE
ALDERWOOD WELL
WHEREAS, the City is interested in terminating an existing lease with McRail Company for the
land where the Alderwood Well is situated; and,
WHEREAS, the existing well has 'not been used for many years because it does not meet current
Department of Health Services' standards for water quality and has low capacity.
BE IT RESOLVED, a lease terminating an existing lease with McBail Company for the land
where the.Alderwood Well is situated is hereby approved.
BE IT FURTHER RESOLVED that the Utility Manager of the Department of Water
. Resources & Conservation is hereby directed to send a lease termination notice to McBail
Company, subject to the review and approval of the City Attorney.
LOCATION MAP
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bt /3ENCN M RPc AT - 7WE . of D S.4FEW,4 K
1A� 5/6N BASE NEAR THE 7NTE/F SECTioN of SOWTH
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INK
COPT' OF THE LEASE
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'• i This Pease is made and executed on �_ day of ��LJ h(6__ 197.7,
`
between McB Company, a general partnership, hereinafter referred to as "Lessor ",
and the City of Petaluma, a California Municipal Corporation, hereinafter referred
to as "Lessee ".
RECITALS.:
A. Lessor owns a well located on about 24 acres more particularly des-
ciibed in Exhibit A, attached hereto and made a part hereof. Such well and a par-
cel measuring 50!1' x 50' surrounding said well is hereinafter referred tows "the
property ".
B. The property is currently in a non - producing state.
C. Lessee desires to 'lease the property for the purpose of maintaining and
operating a water well with appurtenant pumps, 'turbines, motors, pipes, and struc-
tures appropriate for such purpose.
For the reasons above stated, and in consideration of the covenants contained
here'ini the parties agree as follows:
1. Lessor grants the property, and 'Lessee leases and takes the, ^property as
,.
- " Lessee., together with•all Lessor's water rights therein;` "for t4ia term of 50 years.
Such term shall commence on �,Jotir, , 1977;.:and,expi
re at< noon on
" u ; 2027.
1. The property shall'be used by Lessee for the purpose of maintaining and
operating a water well to produce water for the.domestic water supply of the City
of Petaluma.
• 3. For and in consideration of the leased premises Lessee agrees thereon to
install and build pumps, turbines, motors, pipe lines; and all appurtenant struc-
tures necessary to make an operational well and to make such well compatible with
the .Lessee's water :system. Further', during the term of this lease, and so long as
the use of water�in the City of Petaluma is' restricted or rationed by ordinance or
resolution, 'Lessor shall be entitled to up to 5,000 gallons of water per day to be
treated. As if' from a private well, and therefore without restriction by City ordi-
nance on' resolution.,
At such time as Lessor files a final map for the Subdivision of property pres-
ently known .as. the Alderwood Subdivision with the Recorder of Sonoma County, Lessor
shall'convey`'to- Lessee by grant deed' and Lessee shall accept from Lessor, the leased
premises. At such time Lessor shall pay to the Lessee the cost, of all pumps, tur-
bines,' motors, pipe lines, vand appurtenant structures installed by Lessee. Lessor
shall also transfer by grant deed or by deed of easement such rights of ingress and
egress as may be convenient and necessary to the operation, maintenance, and repair
of the subject well as determined by the. Lessee. Thereafter; Lessor shall be. enti-
tied' to ,take water from the Lessee's municipal water system, at rates paid by other
users.of said system„ for construction purposes within the Alderwood Subdivision up
to '5,000 gallons per day. in addition, City shall issue Lessor building permits for
said Alderwood Subdivision •pursuant to Ordinance No.:, N.C.S. and in accordance
with' the Residential Development Control System, Resolution No..7417 N.C.S., and the
well which is the subject of this agreement shall be considered the well provided by
the Subdivides in said ordinance; provided, such permits shah be issued only in such
number as may. in the sole discretion of the City Council, be adequately served by the
subject well, the maximum number of permits being equal to the number of lots in
Alderwood Subdivision.
4. Lessor covenants that Lessor is owner of the property in 'fed simple and has
full right to make this lease, and that Lessee shall have quiet, and' peaceful posses-
sion of the property during the term hereof.
5. Lessor grants to Lessee an easement to enter upon property of, Lessor which
surrounds the subject property for, the purpose of constructing. " such improvements as
may be required for the purposes set forth above•.. After construction, such easement
shall be extinguished and of no further force and effect.
b. ,'Subletting and Assignment. Lessee may sublet the property in whole or in
part without Lessor's consent but the making of any such sublease shall not release
Lessee from, or : otherwise affect in any manner, any of Lessee's obligations hereunder.
Lessee may assign or transfer this lease, or any interest herein without the prior
written consent of Lessor,.
7. Maintenance of improvements. Lessee shall, throughout the. term of: this
lease, at its own coat, and without any expense to Lessor, keep and maintain the.
ti
' premises, including all buildings and improvemeik"s of every kind that may be a part
thereof, and all appurtenances 'thereto includin 'sidewalk ad.:acent - thereto, in
good, sanitary, and neat order, condition and repair, arid, except as specifically
provided herein, restore and rehabilitate any improvements of any kind that may be
destroyed or damaged by fire, casualty,, or any other •cause whatsoever,. Lessor shall
not be obligated to make any repairs, replacements, or 'renewals of any kind., nature,
or description whatsoever to the property or any buildings or improvements` there
Lessee shall also comply with and abide by,all federal,, state -, county, municipal,,
and other governmental statutes, ordinances, laws,, and regulations affecting the
premises, the improvements thereon, or any activity:'or, condition on or in such
premises.
8. Utilities. Lessee shall, fully and promptly pay for, all water, gas, heat,
light, power,,'telephone service, and other public utilities of every kind furnished
to the property throughout the term hereof,, and all other costs and expenses of
every kind whatsoever of or in connection with the. use, operation, and maintenance
of the premises and all activities conducted thereon.
9.• Lessee shall not be required to pay any real property, estate, gift, in-
heritance, succession, franchise, income, or excess profits taxes that may be pay -
able by Lessor or Lessor's legal representative., successors, or assigns; nor shall
Lessee be required to pay any tax that might become due.'on.account of ownership of
property other than that herein leased which, may become .a lien on the property here-
in leased or collectable out of the same.
10. Indemnification of: Lessor. Lessor shall not be liable for any in-
jury, death, or. - damage to persons or property that at any time may be auffered'or
sustained by Lessee "or by any person who may at any time be using or occupying or
Visiting the property or be in, on, or .about the `same, resulting from or arising
out of any act omission, or negligence of Lessee or of any occupant, subtenant.,
demnify Lessor
visitor, or user• of any, portion of the premises., Lessee .hall in
.,
against all claims, liability, loss, or damage whatsoever on account of any such loss,
injury e. Lessee hereby waives all claim's against Lessor for damages
in j ry s death or dams g
to the building and improvements that are not on or hereafter placed or built on the
premises.and to the property of Lessee in, on, or about the premises, and for injuries
to persons or property in or about the premises, from any cause arising at any time.
The three preceeding sentences shall not apply to loss, injury, death, or damage aris-
ing by, reason of the negligence or misconduct of Lessor, its agents, or employees.
11,. Lessee's right. of first refusal., purchase property. If at any time dur-
ing the term hereof, Lessor shall receive from any third part a bona fide offer to
purchase the property at a 'price and on terms acceptable to Lessor, Lessor shall give
written notice of such price and terms to Lessee, and Lessee shall have 60 days there-
after in which to execute a written agreement with Lessor for purchase of the premises
at such price and on such term or such other price and terms as may be agreed upon.
If Lessor shall so notify Lessee and Lessee shall fail to execute such agreement with-
in such 60 day period, Lessor shall thereafter be'free to sell, the property to the
third party making the offer on the same terms and conditions set forth in such offer.
if the property is' so sold to such party, then all rights of Lessee under thaw section
shall inue If_the' property i not sold to the party making the offer, hen
r Shall ll give Lessee the same right to 'purchase the property on receiving any
Lessor i
subsequent offer from any third party that is acceptable to Lessor; however, nothing
herein contained shall'in any way limit the'right,of Lessor to transfer or convey the
premises on the dissolution of Lessor or otherwise, for nominal or no consideration,
and ".Lessee shall have no ;right to purchase ihe` property in the event of such transfer
or conveyance.
12,. Lessee's option to terminate., "Lessee' shall. have the right, by written no-
tice to Lessor given at least 180 .days prior to the proposed termination date, to
terminate this lease and surrender its leasehold interest hereunder to Lessor. On ,
the effective date of sucH` termination; Lessee. shall be relieved from.all further
liability hereunder, and shall deliver possession of the property to Lessor.
13,. Lessor ,hereby grants -to, Lessee;an option to buy the leased premises at any
time the Lessee may elect befor °e �J( — i 2027, at a price to be mutually deter -
mined at the time Lessee gives notice of its intent to exercise this option. In the
event of the exercise, of this option as herein provided, Lessor agrees to convey the
property to Lessee by a grant deed free and clear of all encumberances. Whenever
"Lessee shall.desire to exercise this option, it shall give written notice
thereof. Lessor will within 90 days after receipt of such notice deliver or cause .
to be delivered to Lessee a..pre'liminary title report by Sonoma Title Guaranty Company
of Petaluma, California. Defects in title, if any, shown by such report shall be
remedied by Lessor within 90 days of notice to him of such defects, and it will deliver
to Lessee at the time of closing an owner's policy of title insurance issued by such
company in the amount of the purchase price. The purchase shall in any event be com-
pleted by conveyance of the property'in payment of the purchase price within 200 days
from the delivery of.the. notice of intent'to exercise this option.
14. Lessor ,grants Lessee an option to renew this lease for a additional period
of 25 years after expiration of its ;original terms, on the same terms and conditions
as this lease. Lessee shall give Lessor written notice of intention to renew at ;;
19. Un termination of this lease for any cause, Lessee shall have the optio
of removing all equipment, pipes, buildings, or other fixtures and improvements a0
its cost. Should Lessee elect to remove the'above,;it shall :cap the well according
to local and state regulations in force at that time. Should Lessee not so elect,
then all buildings, improvements, and fixtures shall become the property of Lessor.
16. Notices.. All notices, demands, or other writings in this lease provided
to be given or made or sent, or which be given or. made or sent,, by either party
hereto to the other, shall be deemed to have been fully given or made or sent when
made in writing and deposited in the United States mail, registered and postage pre-
paid, and addressed as follows:
To Lessor: McBail.Company, a partnership
23 Altarinda Road, Suite D
Box. ,458
Orinda, CA 94563
To Lessee: City of Petaluma
City Hall
,IPetalumn,,CA. 94,952
The' which any notice,. demand, or other writing may be . given or made
or sent to any party as above.. provided,may,be changed by written notice given by
such party as above provided.
17. Lessor covenantsland agrees that he will neither encumber his interest iu
the fee of the,leased premises nor sell or-,encumber his. ownership of this lease dur-
ing the -term hereof without the written consent of Lessee
18.: Time of the essence. Time is of the essence of thi's,.lease, and of .each
and,every covenant,,•term, condition and provision hereof.
EXECUTED. AT.PETALUMA CALIFORNIA on the day and year above written.
Attest: CITY OT PETALUMA, & CALIFORNIA,
MUNICIPAL CORPORiTION
STATE OF CALIFORNIA )
) as
COUNTY OF SONOMA' )
On this 6th, day of June , in the year 1977, before
me; _Kristy.Elizabeth Gibson_._. , a Notary Public in and for said
County and State, personally appeared Helen Putnam known tome
to -be the Mayor of' the : City of Petaluma and
known to me to be the person who executed the within instrument on behalf
of said City of Petaluma, a municipal corporation, and acknowledged to me
that such City' of Petaluma executed the same.
r^+ - OFFICIAL •LAL i.
Na F r �,y Gr�ac i Gib son /t>� 1 i re lJ .
lit rufFOawa Notary Publi in-an -for
said Count
and t'i&
s o y i
Hq' G.-n y .i..n c n Farusn �, 1580 -_
�; My Commission expires:
t
g intersection of East Washington. and Ely
Commencing at•the R.R. R.R, spike in the ante
Road as shown on.the final map at Foothill Manor #3 recorded May 1st, 1970,
Book 139 of Maps,, Pages 33 and 34.,. Sonoma County Recorder's Office; thence
North 35 0 31'27 " East 305.00 feet; thence North 54 West 55.00 feet;
thence on a curve to the right, with a radius of 175 feet, a central angle
of 5 and an arc length of: 18, 30 feet; thence on a radial line with a
0
bearing of .South 41 30'50" West a distance of 25:00 feet to the true point
of beginning; thence continiiing South 41 West 25.00 feet; thence South
44 0 54'03" East 29.90 feet; thence on a nontangent,curve to the left tangent to
a bearing of North 35°31 " East, with a radius of 30 feet, a central angle
of 84 0 00'37 " and an arc length of 43.99'feet to-the true :point of beginning.
Containing 586 square feet , (more or less.
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