Loading...
HomeMy WebLinkAboutRESOLUTION 2025-069 N.C.S. 06/02/2025Resolution No. 2025-069 N.C.S. 1 Resolution No. 2025-069 N.C.S. of the City of Petaluma, California RESOLUTION APPROVING A FIRST AMENDMENT TO THE AMENDED AND RESTATED LEASE AGREEMENT WITH THE ROOSTER RUN GOLF COURSE WHICH ADDRESSES THE LOCATIONS OF WETLANDS IMPROVEMENTS, ROOSTER RUN’S INTEGRATED PEST MANAGEMENT PLAN, AND THE RENOVATION AND MANAGEMENT TRUST FUND WHEREAS, the City of Petaluma entered into an Amended and Restated Lease Agreement with Rooster Run Golf Club, LLC in March 2022 via Ordinance No. 2810 N.C.S., consolidating and superseding the original lease and five prior amendments; and WHEREAS, the City has not yet implemented a citywide Integrated Pest Management Plan (IPMP) and does not anticipate doing so for approximately one year, and the Rooster Run Golf Club has submitted and received City approval for its own IPMP to govern operations during this interim period; and WHEREAS, to reflect this arrangement, the lease will be amended to approve alternative compliance for Rooster Run with the City’s IPMP in accordance with its own Integrated Pest Management Plan, attached as Exhibit J; and WHEREAS, the Lessee represents that Lessee has completed the Initial Improvements required under Section 16.2 of the lease in the manner described in Exhibit K, and Lessee shall document to City’s reasonable satisfaction the costs Lessee has incurred in completing the Initial Improvements, and shall be entitled to reimbursement from the Trust Fund as required by Exhibit K for Initial Improvements the City confirms have been completed,; and WHEREAS, as part of the City’s forthcoming capital improvements to the adjacent Petaluma Community Sports Fields Baseball Diamond project, wetlands must be created as a mitigation measure in accordance with the requirements of a Water Quality and Certification Order of the San Francisco Bay Regional Water Quality Control Board, and the City intends to permanently designate portions of the Rooster Run Golf Course for this purpose, with lease language currently under review by the City Attorney to formalize this designation; and WHEREAS, the proposed lease amendments collectively support responsible environmental stewardship, capital reinvestment, and long-term land use planning, and are consistent with the public interest and intent of the original lease framework; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Petaluma hereby: 1.Declares that the above recitals are true and correct are incorporated herein as findings of City Council. 2.Finds that compliance with the California Environmental Quality Act (CEQA) was required for approval of the original Lease and the statute of limitations for CEQA challenges has lapsed. Regardless, an amendment to an amended and restated lease with Rooster Run Golf Club, LLC for the operation of an already existing golf course is not a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 as this action is an organizational and administrative activity Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 Resolution No. 2025-069 N.C.S. 2 and the terms of the proposed Lease, attached hereto as Exhibit A, will not result in direct or indirect physical changes in the environment. As regards the wetlands creation to be performed on the Rooster Run leased property pursuant to the Water Quality and Certification Order, on October 20, 2010, the City, as lead agency, adopted a Mitigated Negative Declaration (State Clearinghouse No. 2008122112) for the Petaluma Community Sports Fields Baseball Diamond project and filed a Notice of Determination on October 21, 2010. The San Francisco Bay Regional Water Quality Control Board, as a Responsible Agency under CEQA, has reviewed the project CEQA documents and found that the project’s significant environmental effects that are within the Water Board’s purview and jurisdiction have been identified and will be mitigated to less-than-significant levels. Specifically, significant impacts pertaining to wetland and aquatic habitat and water quality will be mitigated to less-than-significant levels.. 3. Approval of Lease Amendment. In accordance with Section 46 of Article VII of the Petaluma City Charter and other applicable law, and Ordinance No. 2810 N.C.S., and the authority granted to the City Manager pursuant to that ordinance, the First Amendment to the Amended and Restated Lease between the City of Petaluma and Rooster Run Golf Club, LLC that is attached to and made a part of this resolution as Exhibit A is hereby approved, and the City Manager is hereby authorized to execute on behalf of the City a lease amendment with Rooster Run Golf Club, LLC that is substantially in accordance with Exhibit A and that includes any amendments deemed necessary and appropriate by the City Manager and that are approved as such by the City Attorney. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 2nd day of Jume 2025, by the following vote: Approved as to form: __________________________ City Attorney AYES: McDonnell, Barnacle, Cader Thompson, DeCarli, Nau, Quint, Shribbs NOES: None ABSENT: None ABSTAIN: None ATTEST: ______________________________________________ Deputy City Clerk ______________________________________________ Mayor Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 RRGC-58000\2916601.3 FIRST AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT This First Amendment to Amended and Restated Lease Agreement (the “First Amendment”) is entered into as of ______________, 2024 (the “Date of Execution”), by and between CITY OF PETALUMA, a California municipal corporation and charter city (“CITY”), and ROOSTER RUN GOLF CLUB, LLC, a California limited liability company number 199811710118 (“Lessee”). RECITALS: This First Amendment is made with reference to the following facts: A.The City and Lessee are party to that certain Amended and Restated Lease Agreement dated as of July 1, 2022 (the “Restated Lease”) pursuant to which the City has leased approximately 126 acres located at 2301 E Washington Street, Petaluma, California 94954, Assessor’s Parcel Number 136070029, which parcel of real property is located near the Petaluma Municipal Airport property in Sonoma County, California, as more particularly described in Exhibit A, Exhibit B and Exhibit C, attached to the Restated Lease, and is subject to the easement in favor of City described in the Restated Lease and in Exhibit D attached to the Restated Lease, along with all easements, covenants, and other appurtenant rights expressly granted concerning such real property (collectively, the “Leased Premises”) in accordance with the terms of the Restated Lease. B.The City and Lessee wish to amend the Restated Lease to provide for: (i) mutually-agreeable, alternative compliance with the City’s Integrated Pest Management Program (IPMP) for the Leased Premises; (ii) wetlands mitigation work to be undertaken by the City on certain portions of the Leased Premises and (iii) confirmation of amount paid by and payable to Lessee from the Trust Fund established pursuant to Article 16 of the Restated Lease in the manner described in this First Amendment. ACCORDINGLY, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and Lessee hereby agree to amend the Restated Lease by and in accordance with the terms of this First Amendment, as follows: 1.Pest Management. The City and Lessee agree that the IPMP, as adopted by the City, causes Lessee significant hardship and, in accordance with Section 13.9 of the Restated Lease, Lessee shall instead be required to comply with that certain Rooster Run Integrated Pest Management Plan (Plan) attached hereto as Exhibit J as alternative, City-approved compliance with the IPMP. So long as the Lessee complies with the Plan, Lesse will be deemed in compliance with the IPMP. 2.Renovation and Modernization Improvements/Trust Fund. The Lessee represents that the Initial Improvements required under Section 16.2 of the Lease have been completed in the manner described in Exhibit K. Lessee shall document to City’s reasonable satisfaction the costs Lessee has incurred in completing the Initial Improvements, and shall be entitled to reimbursement from the Trust Fund as required by Exhibit K for Initial Improvements the City confirms have been completed. Exhibit ADocusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 RRGC-58000\2916601.3 2 3.City Wetlands Mitigation. The City and Lessee acknowledge that the City is obligated to locate permanently a series of wetlands (Wetlands Improvements) on specific portions of the Leased Premises to create seasonal wetlands along the southern boundary of the City’s Community Sports Fields property where jurisdictional features were impacted by the Petaluma Community Sports Fields Baseball Diamond Project, in accordance with a Water Quality Certification and Order of the San Francisco Bay Regional Water Quality Control Board. Lessee hereby grants to the City a limited right to enter onto the Leased Premises at the areas specifically shown on Exhibit L attached hereto and incorporated herein, to construct and maintain the Wetlands Improvements (Wetlands Construction and Maintenance) provided that: (i) the City provides Lessee with a written schedule of the Wetlands Construction and Maintenance the City plans on the Leased Premises; and (ii) the City shall protect, indemnify, , defend and hold the Leased Premises, Lessee, Exchange Bank and each of their managers, members, employees, and agents free and harmless from all claims, actions, suits, damages, losses, costs, expenses or other liability resulting from or related to the Wetlands Construction and Maintenance; (iii) the City obtains or causes its contractor or contractors to obtain a policy of commercial general liability insurance form a responsible insurance carrier, with a single limit coverage of no less than One Million Dollars ($1,000,000) per occurrence naming Lessee and Exchange Bank as additional insureds concerning liability resulting from the Wetlands Construction and Maintenance; and (iv) the City makes all efforts to limit the impact of its entry and the wetlands improvements on uninterrupted golf course operations. The City’s obligations regarding the Wetlands Construction and Maintenance include, without limitation, repairing any damage to the Leased Premises resulting from the Wetlands Construction and Maintenance. Lessee agrees to not modify or construct any improvements in those areas shown on Exhibit L devoted to wetlands use. All ongoing maintenance and monitoring costs for the Wetlands Improvements shall be undertaken and paid for by the City. 4.Incorporation of Recitals and Exhibits. The Recitals of this First Amendment, the Exhibits attached hereto, and the Restated Lease are incorporated herein by this reference as if set forth in full and constitute a material part hereof. 5.Capitalized Terms. Capitalized terms used in this First Amendment shall possess the same meaning as is described to such terms in the Restated Lease except as may be expressly provided to the contrary in this First Amendment or the exhibits hereto. 6.Conflicts. In the event of any conflict between the terms of the Restated Lease and this First Amendment, the terms of this First Amendment shall govern and prevail. EXECUTED in multiple original counterparts, which constitute the same single First Amendment instrument, on the date stated above. Execution signatures on the following page. Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 RRGC-58000\2916601.3 3 IN WITNESS WHEREOF, the parties hereto have set their hand to this First Amendment, effective as of the Effective Date. CITY: CITY OF PETALUMA, a California municipal corporation and charter city By: City Manager ATTEST: City Clerk City Attorney Finance Director Risk Manager LESSEE: ROOSTER RUN GOLF CLUB, LLC, a California limited liability company By: ROOSTER RUN GENERAL PARTNERS, a California general partnership, Manager, By: RICHARD A. COOMBS, General Partner The undersigned hereby accepts and approves the terms of this Amended Lease. EXCHANGE BANK By: Name: Its: Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 RRGC-58000\2916601.3 EXHIBITS TO FIRST AMENDMENT EXHIBIT J: ROOSTER RUN INTEGRATED PEST MANAGEMENT PLAN EXHIBIT K: RENOVATION AND MANAGEMENT TRUST FUND EXHIBIT L: LOCATION OF WETLANDS IMPROVEMENTS Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 RRGC-58000\2916601.3 EXHIBIT “J” ROOSTER RUN INTEGRATED PEST MANAGEMENT PLAN The operation of a golf course in its pest management procedures is different than all other sites due to the conditions that must be maintained to have a well-run, functional facility. Golf courses in general, and green surfaces in particular, must be maintained in a manner which is far more precise than most other sites. In the event of a pest infestation, predator intrusion or fungus outbreak, the golf course staff must respond immediately (hours) or risk portions of the golf course dying. Golf course staff that make all pesticide applications are trained and/or have applicators licenses (QAL). They follow strict protocols for the routine and non-routine application of pesticides and fertilizers. Their goal is to utilize preventative measures to limit the need for curative measures where and when appropriate. They maintain records in accordance with California Department of Pesticide Regulation (DPR) and County Ag Commissioner requirements. The priority is to utilize organic pesticides first, if economically feasible, and then move to Reduced Risk (RR) pesticides. They rely heavily on regular consultation from a DPR- licensed Pest Control Advisor (PCA). Conventional pesticides will only be used, if deemed necessary, to protect public health or economic loss, as determined by licensed (QAL) golf course management and as advised by the licensed PCA. Applications of fungicides, insecticides, algaecides and herbicides shall be limited to the following list, which was derived from a list in the City of Petaluma adopted IPMP. NAME CLASS NAME CLASS NAME CLASS NAME CLAS S Azoxystrobi n Fungicid e Pyraclastro bin Fungicid e Quintozene Fungicid e Glufosinate - Ammonium Herbici de Copper Sulfate Algaecid e Tebuconaz ole Fungicid e Polyoxin-D Fungicid e Aminopyrali d Herbici de Fluazinam Fungicid e Mefenoxam Fungicid e Chlorantranilipr ole Insectici de Topramezo ne Herbici de Isoparaffini c Oil Fungicid e/ Insectici de Chlorothalo nil Fungicid e Carfentrazone- ethyl Herbicid e Mancozeb Fungici de Ethephon Growth Regulat or Indoxacarb Insectici de Triclopyr Herbicid e Picoxystrob in Fungici de Trifloxystro bin Fungicid e Pendimeth alin Herbicid e 2,4-D (dimethylamine salt) Herbicid e Propiconaz ole Fungici de Iprodione Fungicid e Dithiopyr Herbicid e Penoxulam Herbicid e Maneb Fungici de Clopyralid Herbicid e Dicamba Herbicid e The only exceptions to the above list are shown below with their circumstance for use. NAME CLASS NOTE NAME CLASS NOTE Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 RRGC-58000\2916601.3 2 Trinexapac- ethyl Growth Regulator Flumioxazin Herbicide (Aquatic) Category IV Thiophanate- Methyl Fungicide Hydrogen Dioxide Fungicide OMRI Penthiopyrad Fungicide Reduced Risk Fludioxonil Fungicide Reduced Risk Imazamox Herbicide (Aquatic) Hydrogen Dioxide Algaecide (Aquatic) OMRI Cyazofamid Fungicide The turf industry is constantly seeking to create new effective pesticides that are less toxic to non-target plants and organisms. Their chemistry is designed to break down rapidly after its control of target pests. These pesticides are designed to resist runoff from the application site and resist leaching beyond the thatch and rootzone of the turf. The above is a present list of pesticides we may need from time to time when the pest impacts reach a level that jeopardizes the turf health, density and usefulness for golf. As more effective and more environmentally safe products become available it is our intent to replace some of the ones listed above with the newest, most environmentally safe products available to the extent economically equivalent and feasible. Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 RRGC-58000\2916601.3 EXHIBIT “K” RENOVATION AND MANAGEMENT TRUST FUND Under 16.2 of the Restated Lease, initial payments Lessee agreed to complete certain improvements prior to July 1, 2023. The City agreed that these costs would be reimbursed from the Trust Fund. The City and Lessee acknowledge and agree that all work was completed and both parties acknowledge and agree upon the following costs for the “Initial Improvements” (herein so called): 16.2(a) Roof. A new roof was replaced, including the attached awnings at a total cost of $139,438.00. 16.2(b) Solar. A complete solar panel system, approved by the City, was installed at the total cost of $396,410.00. 16.2(c) Painting. The Event Center Pro Shop and Cart Barn were repainted, and all dry rot removed, at a total const of $66,249.00. 16.2(d) Parking Lot. The entire parking lot was resurfaced and restriped at a total cost of $92,131.00. The sum total of the Initial Improvements total $694,228. In accordance with the Restated Lease, these monies shall be reimbursed from the Trust Fund. Given the Trust Fund will not be created until July 1, 2028, the parties agree that said Initial Improvements shall constitute a credit against Trust Fund payments due and, given they are prepaid, said amount shall be adjusted to reflect the time value of money by the Consumer Price Index, San Francisco Area (“CPI”) annually beginning July 1, 2024. Beginning July 1, 2029, Lessee shall submit a statement showing the CPI adjustment and the deduction from the amount to reflect the 3% annual payment due. As an example, if the annual CPI was 3% from July 1, 2024 to July 1, 2029 and the Gross Revenues from July 1, 2028 to July 1, 2029 were $3 million, the Trust Fund balance would appear as follows: Initial Improvements. $804,812 ($694,228 times 3% CPI increases for 5 years compounded). Annual Regular Contribution. $90,000 ($3 million in Gross Revenues times 3% annual contribution). Final Trust Fund Balance. Total of $714,812, as of July 1, 2029. This methodology would then be utilized annually until the Trust Fund is exhausted, at which time Lessee shall be required to make the annual capital contribution, as outlined in Article 16 of the Restated Lease. Docusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2 CONFORMWETLANDSMITIGATION GRADESTO EXISTINGDRAINAGE SWALEEXISTING DRAINAGE SWALE, PROTECT IN PLACE MITIGATION WETLANDAREA 1 (15,500 SF)NEW DI, RIM 96 .25+97.75 IRRIGATION LINE, PROTECT IN PLACEAIRPORT ZONEAIRPORT ZONEPROPERTYBOUNDARY MITIGATION WETLANDAREA 2 (4,000 SF)STABILIZED EARTHEN WEIR TO ALLOWFOR OVERFLOWADDITIONAL MITIGATIONWETLAND AREA 3 (7,100 SF) +87 .5SPORTS FIELDSSTAGING AREA AND SPOILSPLACEMENT FOR AREA 3CONSTRUCTION ACCESSFOR AREA 3STABILIZED ENTRANCEEXCLUSIONARY FENCE EXCLUSIONARY FENCEEXCLUSIONARY FENCESTAGING AREA AND SPOILSPLACEMENT FOR AREA 1 & 2LEGENDSYMBOLDESCRIPTIONEXISTING WETLAND OR DRAINAGESWALEPROPOSED MITIGATION WETLANDAREA (26,600 SF)ORIGINAL DRAWING SIZE: 11 x 17 PETALUMA COMMUNITY SPORTS FIELDS WETLAND MITIGATION PLANS 2430 E WASHINGTON ST. PETALUMA, CALIFORNIA 94954Sheet March 31, 2025 JUN. 2024NOT FOR CONSTRUCTIONCITY OF PETALUMA PUBLIC WORKS AND UTILITIES 202 N. MCDOWELL BLVD. PETALUMA, CALIFORNIA 94954 PH. 707-778-4546 FAX 707-778-4508 CONCEPT WETLAND GRADING6/20/2024MITIGATIONPLANM-1SCALE: 1 " = 60 '060N·Target mitigation area is 26,600 SF. Proposed Areas: Area 1 - 15,500 SFArea 2 - 4,000 SFArea 3 - 7100 SF TOTAL = 26,600 SF·Existing irrigation water line is avoided·Preserves all trees·Watershed to wetland ratio is 10:1 for additional proposed WetlandArea 3MITIGATION WETLAND CONCEPTEXHIBIT LLOCATION OF WETLANDS IMPROVEMENTSBioretention FacilityBioretention Facility Overflow PipeBioretention Facility Overflow PipeBioretention FacilityIrrigation MainProperty BoundaryDocusign Envelope ID: 5D9C8E5D-ABDB-45FF-8D97-44587DEE3CF2