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HomeMy WebLinkAboutOrdinance 1729 N.C.S. 07/18/1988EFFEC-11VE DATE OF ORDINANCE JUL 18 1988 ORDINANCE NO. Introduced by Jack Cavanagh 1729 N.C.S. Seconded by John Balshaw AN ORDINANCE AUTHORIZING A LEASE OF APPROXIMATELY 13.98 ACRES OF REAL PROPERTY LOCATED ADJACENT TO THE PETALUMA RIVER IN THE CITY OF PETALUMA, SONOMA COUNTY, STATE OF CALIFORNIA AND DECLARING ITS URGENCY TO TAKE EFFECT IMMEDIATELY BE IT ORDAINED BY THE Council of the City of Petaluma as follows: Section 1. The approximately 13.98 acres of real property located adjacent to the Petaluma river in the City of Petaluma, County of Sonoma, State of California is hereby authorized to be leased under the terms and conditions set forth in the Lease by and between the City of Petaluma and the State of California/State Lands Commission, which Lease is attached hereto as Exhibit "A" and incorporated herein by reference and the City Manager is hereby authorized to sign said Lease. Section 2. This ordinance is hereby declared to be necessary for the immediate preservation of the public, health and safety and shall take effect and be enforced upon its passage by a unanimous vote by the members of the City Council present at the time of its adoption. The reason for the urgency of this ordinance in that construction of the Marina Facility must commence immediately in order to have the work in as completed a stage as possible prior to the winter rains. Ord. 1729 NCS 1 of 2 + Exhibit Section 3. The City Clerk be, and she is hereby directed to publish this ordinance for the period and in the manner as required by the City Charter. INTRODUCED and ORDERED published/peisieid this 18th day of July , 1988. ADOPTED this 18 day of July 1988, by the following vote: AYES: Cavanagh, Tencer, Sobel, Balshaw, Vice Mayor Davis, Mayor Hilligoss NOES: None ABSENT: wnnlsPv ord . marina. lands / LAW 13 Ord. 1729 NCS 2 of 2 + Exhibits i ,,;TATE'OF CALIFORNIA' S:TA'TE 'LANDS 'COMMISSION FOR RECORDERS.USE ONLY RECORDED AT THE REQUEST OF State oIf California/State Lands Commission official Business —Document entitled .to free recordation pursuant to Government Code Section 27383. WHEN RECORDED MAIL TO State • Lands Commission 1807 - l3th Street Sacramento, CA 95814 Attention: Title Unit LEASE NO. This Lease consists of this summary and the following -Attached and incorporated parts: Section l Basic Provisions Section 2 Speci'al Provisions amending or supplementing Section 1 or 4 Section 3 Description of Lease Premises. Section 4 General Provis:'ions. SEC.T.ION 1 BASIC PROVISIONS W 23761 The STATE OF CALIFORNIA, hereinafter referred tol as Lessor, acting by and through the STATE LANDS COMMISSION,,f1807 - 13th Street, Sacramento, California 95814), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Administrative. Code,, and for consideration specified in the Lease, does hereby lease, demise and let to: CITYOF PETALUMA hereinafter referred to as Lessee: WHOSE MAILING ADDRES'S IS: 11 English Street, P. 0. Box 61 Petaluma, ,California 9.4953-0061 those certain lands described i,n, Section 3 subject to ,the reservations; -terms, covenants and conditions of this Lease. LEASE `TYPE: -General Lease - Public Agency Use LAND TYPE: Sovereign LOCATION: Adjacent to the Petaluma River in the City of Pdt'aluma, Sonoma County, containing approximately 13.98 acres, and more particularly described in .Section 3 attached herein LAND USE OR PURPOSE: Construction and operation of a public marina; dredge a maximum volume of 300,000,vcuhic yards of material to be disposed at, the C,-ity of Petaluma s disposal s'ite,.,..Count;y of Sonomals. landfill site, or an approved United' Staves Army Corps of Engineers disposal site. TERM: Thirty (310) year,; he,ginning ,J.uly 1, 1,988 and ending June 30, 201.8 unless sooner terminated as provided under this Lease. XIWVT10TT A oRD:i72sHcs CONSIDERATION.' 1. For the period beginning July 1, 19'88 through June 3:0, 1991, the annual r.ental., paya`b,le in advance., shall be $250. 2. F-or the remaining balance of this lease beginning July :1;, 199:1, th'e Lessee agrees to: pay the minimum annual rent of $,6,622, o-r seven percent (7%) of `gross inco.me•., whichever 'is gr;eater', to Lessor, without deduction„ delay or' offset at such p.lac'e, as may be designated by Less,o.r from time to time, in acac&rdance with the schedule . as set forth ,herein,. Any rental due which is in .excess of the minimum annual rental sshal.l be due and payable on the same day that the annual report i:s due., and payment s_ha1,1 accompany' s ch report,. 3. It, is specifically a,gre,ed that in .the -event of the termination. of this Lease prior to its expiration date from any cause whatsoever, no portion of the minimum annual rental paid in advance_ sh:1-1 be, refundable. 4. DEFINITIONS;: (A—) GROSS' . INCOME "G'rosa Income", for the purpose of computing annual rental, due to the State Lands Commission, 'shall include, but not: limited to:, I., The sales price of any type of food, and' drinks sold , by Lessee., whether- for cash or credit. Z. The; sales pric-e of all other good`s, wares, merchandise or products sold by Le,ssee., whether for; cash'or credit.. 3. Commission received nor earned from non -lessee owned, coin op'er�ated vending :machines or 'other ,dlevices, and all sums diepo'sitedin Lessee owned coin-apera:te:d vending, machines or other devices. 4._ The, charges madle by° the: Lessee fo`r theberthing, docking, mooring c$x l,aunch'ing ,of, boats. 5. The, 'charges made by the Lessee for the, rental of any type of equipment ox. product, whether for cash or for' cared i t . 6., Any other income, whether, for cash or, credit ge.n.efated di'r'ectl.y f r;om or o'n,, the leased aare.a by the Lessee} s opeer,at i-o ns;. 5. ALLOWABLE REDUCTTONS TO' GROSS INCOME Gross income shall not ine,lude any sales or excise taxes payable by the L,es'see to Fede1ral;, Staten, County or municipal governments as a direct result of operations under this Lease, provided 'that these: taxes are : clearly segregated and identltled in the !Le`ssee's :books and r-ecoxds. Tin. 3J i F Al F:!:•P 6. ALLOWABLE' REDUCTL'ONS TO GROSS. SALES -: Gross "sales may be reduced b:y ' returns "and, a,ll.owances ;on the theory that these. "sa.les� we're never made,, and, should not have been included as art of the p gross, sales, but .grow income hail not be reduced by, any other amount. 7. CASH: "Cash" includes' currency, coin, checks, and money orders. 8. CREDIT: "Credit" includes c,r:edit card transactions, and, those transactions made on open account or for any oral or written promise to pay. 9. REPORTS: The Lessee sh1al,1 submit, on: forms approved by the State Lands Commissi.o:n, an annual report det°aili'n,g their gross income from boat docks and moorings, and any other income generated from, or on, the Leased Premises. This report shall be accompanied by a Balance Sheet of the Lessee as of, the last day covered by the annual report, and an Income Statement covering the results of Lessee's operations for the year ended on the last day covered by, the annual report. These reports shall be due on the twenty-fifth (25th') d`ay of the month following the end of -the year c"overedby the annual report, unless the Lessee has received, in writing, permis`sio'n from the. State Lands Commission for later submission, not to exceed ninety (9`0) days. 10. BOOKS AND. RECORDS': The Lessee shall maintain 'bo.oks, and records of all financial transa(cti.on6 r,e1at1ng t'o: the Leaaed Premises in -accordance with generally accepted accounting principles. These records shall be supported by source documents such as agreements, with renters„ copies of invoices, rece"i:pts;,, and other pertinent documents. If req,.uested by the -State, the Lessee shall allow repr--esentatives of the State Lands Commission to ex_amwi"ne copi-es of Federal and State. Income Tax Returns, and Board of EqualIzation Tax Returns in order to corroborate information shown,,on re,por,ts to the State Land's Commission. 11. EXAMINATION OF BOOKS AND RECORDS: 'All annual reports submitted to the State Lands Commission are subject to audit and revision by the ;State Lands Commission. Lessor may inspect all. Less;ee's books, records,, and documents relating to the operation of the - Leased Pr;emise;s at a;l1 reasonable times. Any statutory or other right that the Lessee may have to object to such inspectioy n b the State Lands Commission are hereby waived. _ The foregoing is subject to modification by 1es"so,r., a:s. specified in Paragraph 2('b) of Section 4. AUTHORIZED IMPROVEMENTS,: Maximum of 220 uncovered boat berths, launching ramp,,, restr.00ms, harbormaster's of,f`ice, and ancillary appurtenances inherent to a "marina operation; paved parking l.ot, riverbank breachment to create a marina entrance channel and ripr,ap placement. -3- [X] EXI,STING: Boat launching ramp, paved parking :area, restroom facility and minor appurtenances thereto. [X.] TO BE CO9ST.1tUCTED,,- CONSTRUCTIOU MOST BEGJN BY': 10/011/'818 AND BE QQ]tP1LET8b BY: 101/01/'91 LIABILITY INSURANCE: $2,000,000 SURETY `BOND OR OTHER SECURITY: N/A SECTION 2 SPECIAL PROVISJONS BEFORE THE 'EXECUTION; OF THIS LEASE, ITS PROVISIONS ARE AMENDED, R . E - VI - SED, OR SUPPLEMENTED AS FOLLOWS: 1. DEMOLTTIDN `OF EXISTING FACILITIES;: Les'see: agrees to demolish. and remove all exi-sting impr,,ovements stated in. Sectlion 1 at, their sole expense and- risk. Such improvements are With'in the lease a' -ea of 1eas,e PRC 4048.9hef1d, by the City of ,Pe.taluma wh1ch will be terminated and included as -,a part. 'of this lease. 2. MARINA BASIN EXCAVATION: A 'royalty 'of,. $0.25 per cubic; yA.rd shall be P,&.id for any dredged: .material sold orused ,f.-.'orprivate or commercial benef'it. There shall be no royalty charged ',f,or- materdal, placed on ti.de'la,nds or private :1,ands dedicated to the public trust:. ('b) It, * is agreed that Lessee t'hall submit copies; of -repor:ts or Contracts with the dredging operator sub.st0ntiating,, the volume o.f materials dredged and any -royalties due to, the Cbmmiszlon on a quart,e:r1ly basis,, on forms supplied' by the Commfszlon (Form, TG.9). It is agreed that. Lessee shall submit said forms on or befofe the fifteenth ('15th) day- of the month f�ollbudrig theend. of each permit qu&rtelr, together with payment, for the; royalty due, on the volume removed during that quarter. The fi;rst permit quaXterl- sha-11, be the f ir'st three, months: following the e . ff ectiye -date, at this p6-rmitj and every three-month period thereafter shall be a permit 4-iia r'l t e r.-i (C) it is further agreed that Lessee. shall furni.-s-h the Commission with CopLies. of, fina.1 surveys orcopies of any other- .computations, used as a ba,sls to verify dredge. volumes within twenty-five (25) days ' of completion of the -activity authorized hereunder'., -4- 3. MAR-INA CONSTRUCTION: (a) It is .understo.od that because implementa,ti,on of construct i,on is, dependent upon timeliness of financing flo+r 'the marina pr.oj°ect from Department of Boating and wate;rways., the beginning date of construction is deferred to allow ample time fo+r the funds to be disbursed. (b) Lessee agrees to notify Lessor, in writing the date of marina- co:nst.ruction completion within six't,y (60) days of that occurrence. A copy of the "as -built" construction plans certified by the .project contractor shall be included with the notifi-,cation. 4. MAINTENANCE DREDGING: (a). Lessee 'is author zed to perform. maintenace dredging of minerals, other than, oil, gas, and geothermal, from the area described. in .this lease, for the purpose of maintaining navigable channels in and around the lease premises. The total volume of material removed shall no't, exceed a maximum of 13,00.0 cubic yards per year of this lease.. This authorization includes the right to deposit. said material at United, S'ta,tesi Army Corps of Engineers' disposal sites or; elsewhere .as_directed% by the ,District Engineer or other lawful authority (,b) No royalties will be assessed on materials removed from the lease ,area; provided that a royalty of $0.25per cubic yard shall be paid to the State fo';r any material placed on private or public property and used for any private or commercial benefit. (c) In the event Lessee does perform maintenance; dredging as authorized.by this paragraph,, within one month of completion of suich dredg.in_g, Lessee s-hall submit a report to Le`sso:ri subsetan,tatinq. the volume: of materials dredged and .any royalties due Lessor, on form-si. provided by Lessor (Form 30.9). 5 MARINA'-S 'MEMBERSHIP FAC,I`L'ITIES: The marina authorized by this lease i;s to. be; open and available to the'. general public consistent with tes:see's ru.le's and operating procedures. Boat berths, shall be available to renters -on a first -come, -5- first -served basis. No member of the pub-lic s,hal.l be refused 'an opportunity 'to ,use ox tent a slip on the basis of non=me;.mbers;hip in any c1u,b, a.ssocia,t.i:on„ or 01hez such organization formed for us:e of the Lease premises in c.onjuncti.oa with,adjacent uplands. G:on er.s:io-n of the marina f�a,ci,liti'es .authorized by this- lease to, fa.ci.liaies 'availab:le only to members of, a caub, a, spc. a,t:i,on, or other s"uc'h organization shall. require prior wr:it;ten approval of Le-ssor. 6_ MARINA ASSIGNMENT ENCUMBRANC ING OR :SUBLETT°ING. Lessor he're.by co:nAents to L,e,s'see"s_ subletting of all o,r any ;portion of the lease pr:emi.ses: for berthing or moor'in,q' Our;pos.es in conjunction with normal commerciaa marina subleasiriq practices for terms. 'o€ one: '('1) year ;or less. 7. RIGHT TO: EXTEND CLAUSE: (a) At the, expiration of t_hi.s l.ea e, Lessee shall have the; right to extend' its lease for 'olne 'addItional period of ten (',lO) years. fo.r such rental, and acc;osrd-inq to s'uch other ter;ms,, cow.enants, and conddvi.ons as negotiated between the parties to this lease. Lessee shall give written notice of the exercise of such right to: Le'ssor< at l,e.a`st six (6) months prior to the expiration of the; leas'e ter---m and f;aihur-,e, to give such notice sha711 constitute: ',a. waiver, of such rig.ht,. ht -is: t!he intent of the parties that Less:or shall lease and that Lessee .shall not be in a tresp.as:s or ho'ld:over status as to• the jease2 premises after, the expiration of this, lease,, but rather.. that a: du1..y authorized and executed l.ea:se .shall exist between the parties :f.ol,lowi-ng the expiration o:f this leas"e. (b) In the event the parties to t;hls agreement cannot, agree on such reasonable terms covenants, and conditions tor-, extending, this - lease,, Lessor or Lessee may elect to terminate this agreement: If: such termination occurs, Lessee shall re'1e ,s:'e, its rights under this lease, as provided f'o.r, elsewhere in, th-is Leas,e 8. RE.S:TORATI.ONOF 'LEASE PREMISES: Lt. is understood and agreed `between. Lessor and Lessee, th-�at Paragraph .13 of Section 4. excludes the requirement that .:Les"se.e refill and, restore, the ;marina basin to, its original c:ond.it.io'n prior to excavation. All other requirements shall remain in full force and effect. 9.. PREVIOUS:`hEASE SUPERSEDED: That certain lease designated PRC 4*048.9, entered into �on March 26,, 19`70,, by and between the.State of California, acting by and through State Lands Commission, as Lessor-:, and the:City of Petaluma, as Lessee, is expressly superseded.by this Lease. �i- SF'C;T`()N 3 LAND DESCRIPTION PARCEL 1 Being portions of the land de,scri,bed 141 Grant Deed No. 9789 recorded Feb. 19, 1953' in Book, 1,189 of; -Of f icial- Records, page 305., Sonoma County, and Grant Deed No. 17660, recorded. Jan. 27. 1956, in Book 1410 o:f-Off icial 'Records, Page 451. Sonoma County, and being a portion of the Petaluma Rancho in T4N.­R7W and T5N, R7W, M.D,.B...&M., more particularly described as follows: COMMENCING' at the eazs"terl,y ter,Mlnu's of the curve with an arc length of 72,5.9 feet; a's d'es'cri,bed in that Deed to Northwestern 'Pacif=i+c ,RAilroad' Company._ a corpora•t; o;n, recorded Oet. 24, 1916 in Book 3,45 of Deeds, page Z6C. 'Sonoma County!, said point lying on the southerly- line of the Noxthwest•ezn Pacific Railway right-of-way, said point. of commencement being in'di,cated as Point ''"C: on that Record of Survey ;Retarded in Book' 185 at page 15 o-f- Maps,,. Sonoma County; thence southeasterly ,on a tangent to said cu.r.we and a.lonq the, 'sou`therly line of the Nor'thwes,tern Pacific Railway right-of-way S 7605911.2" E 785.10 ;f':eet to 'a point of intersection with the westerly line of: .Pa.rc.e`-1 2 o`f tha,t certain real property s,itua'1e in tAhe County of Sonoma. State of C'al.if`ornIa,, desceibe,d in the Patent from 'the State. of California, to the C- tty of Petaluma, a Mun_ icipal Corporation,: �datedl Mar. 2 1970 and :recorded April. 6, 1970, in n Book '2`453, of Official Hec'ords, ;Pages 771-173 Sonoma County and. the POINT OF BEG.IINNING of the. herein de'tcTibed' parcel;, thence leaving said •soi therly-r' qht-of-way along said westerly line S 10001 - 03 "' W56.0. 70`; feet ' thvence S 09007 1 21" E 127.39 feet thence S' 61006116"' E 24,8.419 feet; thence t; thee. WS 07018 ' 10 W130. 65 f ee 14.2.34 feet; thence,S 6704412711.W 100.44 feet; thence S 50053' 43" , W 406.8`6 feet to the most east.er`ly point described in that, Dee:d cecozded Oct. 5 :1.965, 'i,n 'Book 2160, of ,Official Records Page 56-2, Sonoma County; thence along: the northeasterly line of said deed N 42034'0W 369.13 feet to the most westerly po nt described in that Quitclaim Deed recorded May 31,,, 19`168 in Book 2333, 'of Official Records Page 819,, Sonoma County;; thence, along; the, northwesterly line of said Quitclaim deed. N 300-5714411, E 554.14 feet; thence leav`inq said northwe.ste,rly lane, S 41004"0W1 E 1121.55 feet,; thence, S 03056'00" W 14.3.43 feet; thence S 8600100 'E 77.'00 feet; thence N 26612-53 E 1233' feet; thence N 1504;2`115 E 93.94 feet. thence N' 05P09,-4011 E 140..00 feet; thence N 10016' 45" E 278.00 feett';• 'thence N 1403.4;' 0011 `E 194.00 feet to ,a point on the above mentioned southerly right -of -'way thence along said r1ght-of-way S 760551-12" E 30.00 fe,ea to the Point of B'eginnIng. LAND DESCRIPTION PARCEL 2 Being portions of the land d,esctibed in Grant Deed, No;. 9789 recorded Feb. 19. 1953 in Book` 1;1.8`9 of Offici;al Records, page 3.05. Sonoma County, and Grant Deed No. 17:6.60,; recorded Jan. '27; 19:56%i in Book .14,1,0 of Offic'i.,a.l Records, Page 4,5.1, Sonoma County, and, being a porItion of the, Petaluma, Rancho in T4.N `R7W, and TSN, 97W. M.D,B.&M. , more .part Icu1ar,ly d,e':s c,ri tied a;s f o l,l ows COMMENCING at- the easterly terminus, of that curve 'with an arc length .of 185.9 `feet as described ,n that Deed t:o Northwest:er°n Pacf i>c Rai•;lroad' Company, a corpor-.ation, recorded O:ct.., '2:4., 19,16 =in Book 345 of Deeds.. Page 266, S.onom'a, County, s,aoid point lying' on th_e southerly, 'line of .the No.rthw.es,tern Pac f;i,c RaIDWAy rvght-,of-way, ,said point' of °commencement be.inq ind; c'ated as Point "C'i .on thalt Record of S'urve,y recorded: in Book 18,5 at Page 1"5: of Maps,,, Sonoma County; thence a.lo,ng said curve; to the left with 'a rad ,us of 35i2.,20 feet„ said curve; also being de;s:cr, bed m that I:nden;tur,e rrecor.d'ed. Oct.. 24, 1916, 'tn.Book; 345 o:f, Ofnfic?i,aI Rec:or�d,s, p'a,ge Z66,. Sonoma County, through a ce:ntr°al- ahgl.e, of 71014,10V 1 . an arc Iength of 418`. 91 'to the TRUE POINT' OF BEGINNING of the: hexe`in, desc,r-Lbed pa.rce'l; thence ,lea;vin'g .s;a'id curve..:S A;19'04.' 00" E 362.99 faee:t thence N 4805`6' Q0," E 2A.3 43 feet; S 41604100 E 221,.00 feet:;; thence S 031)56' 00'" W 33 bO f.eet; therice S 48'056 1 00 W 83. 56 feet thence S 410,04100" E 2.91.,06 feet;,;- thence N 48,056 0.0 'E '9'1.0V feet:; thence S 86'004' 00" E' ,2t,i5:0 feet; thence. S 410.4 00 ° " E 24.45 feet'*, to a, point on the no.rthwester;ly line described' in that .Quitclaim ,,Deed; recorded. May 31;, '96e, i'n Book 2.333 of O:ff.icial R;e;cords, Page, .8?1,9,, 'Sonoma .County, thence along; .said, northwesterly line S 300571C8"' W 554. 1-4, tIeet to: a point .on the northeasterly :line of the, Deed .r:eeoLded Oct.. 5. 1965 in Book 2160 of Of°f is al. Records., Page 56,Z. ,Sonoma County;, thence along said norlhe'st_exly .lime S 4Z034' 5'7° W 4.5.98; :.feet.; thence' -along, A curve to the r1;ght with, a r.a;d>ius of, 145.'00 feet fhr•ou'gh a central angle of 1705,E ''47° <f;or, an arc . leng,t,h of 45.. 4-2 feet;; thence N 2,4038 1,10" w 696_ 54 feet; thence along ,a curve :to the left with a radius of 255 00 f,eett t.hrou;gh a central angle of 801,614711 for an ara length of` 16.,95; thence N 32054' 5T'I W 2 .4.09 feet; thence along: a curve, to the righti with a radius of 145.06 feet through a centr:a,l angle; of, 08`°161,47 for an arc len;g;th. of 20.95. feet; thence N- 2403+8' 10" W 61.50 .feet to a, point on the above mentioned curve, with a radius of 1.52 20 teett thence alon,q said curve : ,n ;a northeasterly direction from a t'aft ent which, be,a,rs N 210'46' 06" E. thr-,ough :a eentla;l. angle of 09050' 40`,, for; an arc length of 60.51 feet to 'the Point of . Beginning:. END 'OF DESCRI'PTI'ON 'PREPARED BIU 1;, M.L.SRAFER,, SUPERVISOR. �t SECTION 4 GENERAL PROVISIONS 1. GENERAL These provisions are. applicable to ali'leases, permits, rights -or - way, easements, or licenses or other interests in real property con'- veyed by the State Lands Commission. CONSIDERATION la► Categories (1) Rental: Lessee shall pay the annual -rental as stated in Section 1 or 2 to Lessor without deduction, delayor offset, on or before the beginning date of this Lease and',on or befora ach anni- versary of sits beginning date during each year of the Lease term. (2) Royalty or other consideration: Lesseeshall pay`a royalty or other consideration in the amount, method'and manneras specified in.Section 1 or 2. (3) Non -:Monetary Consideration: If a monetary rental, royalty, or other consideration is notspecified,in Section 1 or 2, consideration to Lessor for this Lease, shall be the public use benefit, health or safety,, as appropriate, however Lessorshal'havethe right tareview. such consideration at anytime and to seta monetary rental..if the State Lands Commission, at its. sole :discretion, deter- mines that such action; is in the best interest of the State. Lessee shall notify Lessorrwithin ten, `(10)' days inthe event that the public'is charged any direct or indirect fee for use and enjoyment of the Lease Premises. jb►. Modification Lessor may`modifythe amount or,rate of consideration effec- tive on each fifth; anniversary of the beginning dateof this Lease. :Should Lessor fail to exercise such right _effective on any fifth anniversary"it may do so effective on anyone (1) dthe next four(4) anniversaries following'such fifth anniversary; without�prejudice to its right to effect suchfmodificationonthe nextoranysucceed- ing fifth anniversary: -Any modification of the amount or rate of consideration made pursuant to this paragraph shall conform to Title 2, Division 3 of the California Administrative Code and'no 'such modification shall'become effective unless'Lessea is given written notice at least sixty (60j days prior to the effective date. (c) Penalty and Interest Any installments of rental, royalty, or other consideration accruing under this Lease not paid when due shall be subject to a penalty and shall bear interest. as specified in Public Resources Code Section 6224"and Section 2. 3. BOUNDARIES This Lease is not intended to establish theState's boundaries and is made without prejudice to either' party regarding any boundary claims which may be asserted,presentlyor in`the,future. LAND USE (a) General: Lessee shall use'theLease Premises only for the purpose: or, purposesfstated in Section 1 or, 2. and:only for the operation,and maintenance:of'the, improvements authorized in Section 1 or 2. Lessee ishall commence use of theLease Premises within ninety (90) days of the beginnin0ate9f this'lease. Thereafter,Lessee's discontmuancwof such use fora period of ninety(90) days shall be conclusively presumed to benan abandonment. (b) ;Repairs and Maintenance: Lessee shall, at its own ,expense, keep and maintain the Lease Premises and,all improvements in good order and repair and safe condition. (c) Additions,: Akerations. and Removal: (1) Additions No improvements other than those ex- pressly authorized in Section 1 ,or 2 of this Lease shall be con- strutted by the 'Lessee on the Lease Premises without the prior written consent of Lessor. Lessee shall notify Lessor within ten (10) days after commencing the: construction of authorized improvements and within sixtyi601 days after completing them. (2) Alteration or Removal —. Except as provided under this Lease, no:alteration or removal.of existing improvements on or natural features of the Lease Premises shall be undertaken without the prior written consent of Lessor. (d): Conservation; 'Lessee shall practice conservation of water and other natural resources and shall prevent pollution and harm to the environ- ment in or on the Lease Premises, (a) 'Enjoyment: Nothing in this Lease shall preclude. Lessee from excluding persons from:the Lease Premisesiwhen their presence or activity constitute a. material interference with Lessee's use and enjoy- ment of!'the Lease. Premises as provided under this Lease. (f) Discrimination:. Lessee in.its use ofthe Lease Premises shall not discriminate against+any person or class of persons on the basis of race, color, creed, national,origin, sex; age, or physical handicap. jg►: Residential Use: Unless otherwise allowed under this Lease, improvements on theLease:Premises shall not bevsed as a residence orfor the purpose of mooring a floating ,residence. 5. RESERVATIONS, ENCUMBRANCES AND RIGHTS -OF -WAY (a) Resenratiena (1'), 'Lessor expressly reserves rall natural`resourcesinoron the Lease Premises, 'including but not limited to oil, coal, natural gas and other hydrocarbons, minerals, aggregates; timber,and geothermal resources, as well as the right to grant leases:.in'and over the Lease Premises for the extraction of such natural resources; however such, leasing shall be neither inconsistent nor incompatible with the rights or priviieges;of Lessee under this Lease. (2) Lessor expressly reserves a right to goon the Lease Premises. and all improvements for any purpose, associated with this Lease or forcarrying+out any function required by law, or the.rules, regulations or management policies of the StateLands.Commission. Lessor shall have a right of reason- able access to the tease Premises across Lessee owned or occupied ;lands:adjacent to the Lease Premises for any pur- pose`associated with this Lease. �. '. . (3►' , Lesson} expressly reser.ves. to the public an easement i x. for .convenient access across the Lease Premises to other State-owned' lands located near or :adjacent to the Lease Premises and a right of reasonable passage across and along any right-of-way granted by this Lease, however, such ease- ment or right-of-way ,shall be neither inconsistent' nor in- compatible, with the rights or privileges of Lessee under this Lease. (4) Lessor expressly reserves' the, right.to:lease, convey, or encumber the Lease!Premises, in whole�or in part, durindthe lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. (b) Encumbrances: This°Lease may be subject to pre-existing contracts, leases, licenses, easements', encumbrances and claims and it is made without warranty by Lessor of title, condition orfitness of the land forthe stated or intended use. Form 61.15 (7/84) 13. RESTORATION OF LEASE PREMISES (a) Upon expiration or sooner termination. of ;this Lease, Lessor rnay'accept alLor•any portiomof the Lease Premises, as then m- proved with structures, buildings, pipelines, machinery,'fa6lities and fills in ,place,- or Lessor may require _Lessee to ''remove all or any portionof such improvements atitssole eiipense and risk; or Lessor may itself. remove or have removed'all or any, portion of such mprovements•'at Lessee's sole,expense.. (b) Imremoying any such improvements1esses shall;restorethe Lease Premises asinearly as=possible to the:;conditions existing prior to. their installation or.construction., (c) All such remcvatand restoration shafl,be to'dhe4atisfaction of Lessor and shall be cornpletsd;within. nine ty (90) days of the, expiration_. or, sooner termination of this Lease. 14. QUITCLAIMS Lesseeshall, within' ninety (90) days,of the expiration or sooner termination of this Lease, execute and deiver'to Lessor in a form provcded_by Lessor'a good and sufficient release of allirightslunder his Lease should';Lessee fa i l or r'efuse,to deliver such a:release,-a.written notice by Lessor reciting: such faiture;or refusal.shall, from the date of its ,-recordation, be conclusive=evidence against Lessee and allllother claimantsiof the termination of th'is;.Lease and any rights or interests, of Lessee in the Lease,Premisea. 15. HOLDINGwOVER Any holding=over by Lesseeifter;the expiration of the Leese term, with or without the�exprewor implied consent of Lessor, shall con- stitute?_a tenancy from monthAo=month and -hot an extension -,of the Lease -term and.shall'be on thelterms, convenants and conditionsiof this Lease with" rental'.'royelty yr .other consideration :payable to . advance; on the first day ,of -each month,, at the rate of one -twelfth (1 /1`2th) of the annual amount. 1.6: ADDITIONAL PROVISI6NS (a) ihae (1) No term; covenantor condition of this .Less* and no ;defaultor;breach'of any such term, covenant or condition wdeem . covenant ... +shall be deemed to have been wanred,,by Lessor's'acceptance. of a lateror nonconforming,performance or -otherwise, unless such a waiver is; expressly acknowledged by Lessor in writing:, STATE OF CALIFORNIA — STAMLANDS :COMMISSION LEASE P.R'.C.. No: (2) Any.such waiver shall not be deemed to be a waiver of any otherterm, covenant or condition or`anyotherdefault or° breach of any term, covenant or condition of th'is'Lease. (b) Time: Time is of,the essence of€this,Leasetiand -each -and all ofrits terms, covenants`or condiiions`.in which oerformance is,w fn�rn. (c) 'Notice; AN notices required ,to be given under this Lease ,shall be g i g,:sent by U,nrted States maifwith'postage prepaid, rvan°cn wrrtin to Lessor at the offices'of the State,Landis Commission :and :to Lessee at"the address�spocified in Section 1.1essee,shailgive Lessor notice of any-.change'in its name or address: (d) Consent: Where 'Lessor's, consent is ,required under this Lease its consent for, one transaction or'event shall not be deemed tube a - consent to;sny subsequerwoccurrence'of'the same or any°other transaction or event. (a) Changes:: This Lease'may be terminated and its. term, covenants and conditions amended; revised.orSsupplemented bymut_ual _agree- ment of, the parties:, (f) Successors: the terms; covenants and conditions; of this Lease shall extendto and be'binding upon and Yinure;to the benefit of the heirs, successors,; and assigns of c:�e,respect ive parties:and if more than one'Lessee is;a,party to tINCLease; the obligations„of ihe:Lessees shall be joint"and`several. (g) Captions: The 'captions of'this -Lease are not controlling, and shah, have. no effect upon its construction orjnterpretation.t (h) Swerability,: detern i ed fo be'invalid,at shall be considered delefed andcially If an term, covenant or condition of this Lease is judicially - "shall not ;invalidate any of the remaining terms; covenants and conditions: Thislease wilt become binding^upon thwState:only when,dulyexecuted,on behalf of thei$tafe Lands;Gommission of` the State of„California; IN WITNESS WHEREOF,, the, parties hereto have' executed thi6L, lease as of the date hereafter affixed.. LESSEE CITY QF, PGtALUMA CITY CLERK ACKNOWLEDGEMENT, STATE OF CALIFORNIA STATE LANDS COMMISSION By: Title Date The :issuance ofthis Iease.was authorized;by°the'State, Lands Commision on. (Montt; Day Year)! Form 51.15(7/84.) A B S.P i ?'0'i 5 7':; 7, 1 4 0 (.FR1 0 01. _8 11 �? KCAL CSTATC OCVCIOPMENT ANG INVESTMENT VIA FACSIMILE July 1, 1,988 Mr. John L. Scharer City Manager City of Pe,taluma P.O. Box 61 Petaluma, CA 94953-0061 LrARFey L. WASEM 5e10 SKYLANC BOUIEVARO, SUITC 202 SANTA ROSA, CALIFOR'NIA 04403-108'3. (7071 57a=5344 RE: Petaluma:Marins/State Lands Commission Lease Duor Juhn: `23456>� CS6� `� 19 s � y q�oVEQ rney �`� �����1z0264a�'L\C C00%eA: (707) 578-3140 I i I. o / 7IJ j i 1 As we d;iscusse'd yesterday, the State Lands Conunission has agreed that we don't have to.use the Lease.Quitclaim Deed that was sent to you under Mike Bancroft't letter dated June 2.3, 1988. Instead, please 'add'.the•following language to both execution originals of the lease on Page 6, immediately following Paragraph 8: 119, PREVIOUS LEASE SUPERSEDED: That certain lease designated'PRC 4048.9, entered into on. March 26,, 1970., by and between the State -of California, acting by and through the State, Lands Commission, as Lessor, and the City.of Petaluma,, as Lessee, is expressly superseded by this Lease." After the proposed Lease is approved by you and the City Attorney, it should be executed as quickly as possible and returned to the State Lands Conuuission. Please note Mr. Bancroft''s instructions to have the signatures acknowledged and to include payment of the first year's rentin the amount of $250,00, I will start working soon to fix that problem, Please don't hesitate to call if you have.any questions. S i 11Cpr01Y, Larry, L. Wasem I Lw:inf -------------------------------------------------- i .I