Rancho Palos Verdes City Council
   

MAY 16, 2006 RENEWAL OF THE AGRICULTURAL LEASES ON THE UPPER AND LOWER POINT VICENTE PROPERTIES MAY 16, 2006 RENEWAL OF THE AGRICULTURAL LEASES ON THE UPPER AND LOWER POINT VICENTE PROPERTIES MAY 16, 2006 RENEWAL OF THE AGRICULTURAL LEASES ON THE UPPER AND LOWER POINT VICENTE PROPERTIES



TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: ASSISTANT CITY MANAGER/CITY CLERK

DATE: MAY 16, 2006

SUBJECT: RENEWAL OF THE AGRICULTURAL LEASES ON THE UPPER AND LOWER POINT VICENTE PROPERTIES

RECOMMENDATION

1) Approve the agricultural leases with James Hatano for the Upper and Lower Point Vicente properties and 2) Authorize the Mayor and City Clerk to execute the lease agreements.

BACKGROUND

James Hatano has farmed portions of the Upper and Lower Point Vicente properties for many years through a series of formal and informal agreements with the City. In March 2001, the City entered into formal lease agreements with Mr. Hatano, in which he continued to pay the City $100 per year for the use of approximately 5.5 acres of the Upper Point Vicente property and $531.25 per year for the use of approximately 8.5 acres of the Lower Point Vicente property. These five-year lease agreements expired on March 31, 2006.

DISCUSSION

Once the most predominant land use activity on the Palos Verdes Peninsula, agriculture has diminished over the last few decades to only a few remaining areas. Extending the existing leases with Mr. Hatano for the Upper and Lower Point Vicente properties would preserve the last two remaining viable agricultural sites in the City. Perpetuating this use of the City’s property would be consistent with the policies of the General Plan to “assist in the protection or conservation of agricultural sites” and “preserve flower farming wherever possible, in order to provide aesthetic appeal and visual accent” (General Plan Page 100). As in 2001, staff is recommending that the leases be 60 months in duration. The agreements clearly specify the obligations of each party, especially in light of the evolving futures of these two sites and can be terminated by either party subject to 30 days written notice.

FISCAL IMPACT

The total rent that the City currently receives from Mr. Hatano for the use of both properties is $631.25 per year. By extending the existing lease agreements with Mr. Hatano, the City will continue to receive $631.25 in General Fund revenue per year for the use of these two properties. Due to the City’s long-term relationship with Mr. Hatano and the fact that this is the last remaining area in the City that is commercially farmed, staff is not recommending an increase in rent.

Respectfully submitted:

Carolynn Petru
Assistant City Manager/City Clerk

Reviewed,

Les Evans
City Manager

Attachments:

Draft Lease Agreements for the Upper and Lower Point Vicente Properties

LEASE AGREEMENT BETWEEN
THE CITY OF RANCHO PALOS VERDES AND JAMES HATANO
AUTHORIZING THE LEASE OF CITY PROPERTY
AT POINT VICENTE PARK/CIVIC CENTER
FOR AGRICULTURAL PURPOSES

THIS LEASE AGREEMENT (“Lease”), is made and executed as of the ___ day of ________________, 2006, by and between the City of Rancho Palos Verdes, a municipal corporation of the State of California, hereinafter called “City” and Mr. James Hatano, hereinafter called “Lessee,” who agree as follows:

1) City shall lease approximately 5.5 acres, more or less, of City land at the Point Vicente Park/Civic Center property located at 30940 Hawthorne Boulevard, hereinafter called “Premises,” as delineated and shown in the cross-hatched area on the plan designated as Exhibit “A” attached hereto and incorporated by reference herein.

2) The term of the lease is for 60 months, commencing on April 1, 2006, and ending on March 31, 2011.

3) The annual rental payment shall be $100.00 per year, payable in advance. Payment shall be made to the City of Rancho Palos Verdes.

4) Lessee shall neither transfer nor assign this lease or any property being leased from City without prior permission in writing from the City Manager of the City.

5) Lessee accepts the Premises in its present state and condition and waives any and all demand upon City for alteration, repair, or improvement thereof. No new structures of any kind shall be placed on the site, and no existing structures shall be altered (except normal repairs and maintenance), expanded or moved on the property without prior written consent of the City Manager of the City. All such structures and/or personal property installed or placed on the Premises by Lessee shall be removed by Lessee prior to the termination of this Agreement, and in the event of the failure to do so, title thereto shall vest in City or shall become the property of City upon the termination of this Agreement.

6) Use of Premises shall be limited to agricultural or horticultural purposes only, excluding the grazing of livestock. No person shall be permitted to reside on the Premises.

7) Lessee shall have the right to harvest, gather, and remove any crops he plants or grows on the Premises.

8) Lessee shall assume the risk of loss, damage or destruction due to theft, fire and casualty of any and all fixtures and personal property belonging to Lessee that are installed or placed on the Premises.

9) Lessee shall not display advertising signs or other matter at the Premises.

10) City may inspect Premises at any time and for any purpose.

11) Lessee agrees to defend, indemnify and hold harmless City, its officers, agents and employees from any and all claims for loss, damages, injury or death to persons or damage to or loss of property, including attorney’s fees and court costs, arising out of the use of the Premises by Lessee, or by his employees, guests and visitors.

12) Lessee shall obtain and keep in full force and effect during the term of this Agreement workers' compensation insurance, in accordance with the requirements of the California Labor Code and any other applicable laws, and a policy of general liability insurance. In addition, Lessee shall obtain and keep in full force and effect insurance in an amount sufficient to cover all equipment, inventory and other personal property of Lessee that is kept on the Premises in accordance with the provisions of this Agreement. All such insurance policies shall be issued by insurance companies admitted to do business in the State of California. The policy of liability insurance shall: (a) name City and its officers, agents and employees as additional insureds; (b) shall insure and protect City and its officers, agents, and employees from and against any and all liability arising out of or connected with the use by the Lessee of the Premises; (c) shall provide a combined single limit for the liability covered in the amount of $500,000; and (d) be noncancellable without thirty days prior written notice thereof to City. Lessee shall file with the City Clerk either certified copies of said policies or a certificate of insurance for each of the required policies executed by the company issuing the policy certifying that the policy is in force and providing the following information with respect to said policy:

a. The policy number;

b. The date upon which the policy will become effective and the date upon which it will expire;

c. The names of the named insured and any additional insureds;

d. The subject of the insurance;

e. The type of coverage provided by the insurance;

f. The amount or limit of coverage provided by the insurance;

g. A description of all endorsements that form a part of the policy; and

h. An endorsement stating that City and its officers, agents and employees are named as additional insureds under the liability policy. Lessee's authorized activities on the premises shall be suspended during any period that Lessee fails to maintain said policies in full force and effect.

13) Lessee agrees to comply with all applicable regulations of City and to maintain the Premises in a clean and sanitary condition. Lessee shall be responsible for insuring that the Premises will be protected against damage or destruction by fire or other causes. Lessee shall repair any and all damage to the Premises arising out of Lessee’s activities thereon. Lessee shall provide and pay for all utilities required to conduct the activities permitted by this Agreement. Lessee shall remove all equipment and other personal property from the Premises upon the termination of this Agreement and shall leave the Premises in the manner in which it was found, ordinary wear and tear excepted, and damage or destruction not caused by the use of the property by Lessee excepted.

14) Lessee agrees to pay before delinquency all lawful taxes, assessments, fees or charges which at any time may be levied by the State, County, or any tax or assessment-levying body upon the right of use acquired by this Agreement, as well as all taxes, assessments, fees and charges on the equipment used and merchandise sold in connection with the authorized activities on the premises.

15) This Agreement contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any subsequent modification to this Agreement shall be in writing and executed by both of the parties hereto.

16) Any waiver by City of any breach of any one or more of the terms of this Agreement shall not be construed as a waiver of any subsequent or other breach of the same or of any other term thereof, nor shall failure on the part of City to require exact, full, and complete compliance with any of the terms of this Agreement be construed as in any manner as changing the terms thereof or estopping City from the enforcement thereof.

17) If any of the provisions in this Agreement are unenforceable, the balance shall be enforced.

18) In the event of any controversy or dispute regarding this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable attorney's fees and court costs.

19) This Agreement shall be interpreted under the laws of the State of California.

20) Either party may terminate this Agreement by giving the other party written notice at least thirty days prior to the date when the termination is to become effective.

21) Address for payments of rent and notices shall be sent to:

City: City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275
Attention: City Manager

Lessee: Mr. James Hatano
1172 West 24th Street
San Pedro, California 90731

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written.

Dated: ________________ LESSEE

By: __________________________
James Hatano

Date: _________________ CITY OF RANCHO PALOS VERDES:

By: ___________________________
Mayor

ATTEST:

By: _____________________
City Clerk

LEASE AGREEMENT BETWEEN
THE CITY OF RANCHO PALOS VERDES AND JAMES HATANO
AUTHORIZING THE LEASE OF CITY PROPERTY
AT THE POINT VICENTE INTERPRETIVE CENTER
FOR AGRICULTURAL PURPOSES

THIS LEASE AGREEMENT (“Lease”), is made and executed as of the ___ day of ________________, 2006, by and between the City of Rancho Palos Verdes, a municipal corporation of the State of California, hereinafter called “City” and Mr. James Hatano, hereinafter called “Lessee,” who agree as follows:

1) City shall lease approximately 8.5 acres, more or less, of City land at the Point Vicente Interpretive Center property located at 31501 Palos Verdes Drive South, hereinafter called “Premises,” as delineated and shown in the cross-hatched area on the plan designated as Exhibit “A” attached hereto and incorporated by reference herein.

2) The term of the lease is for 60 months, commencing on April 1, 2006, and ending on March 31, 2011.

3) The annual rental payment shall be $531.25 per year, payable in advance. Payment shall be made to the City of Rancho Palos Verdes.

4) Lessee shall neither transfer nor assign this lease or any property being leased from City without prior permission in writing from the City Manager of the City.

5) Lessee accepts the Premises in its present state and condition and waives any and all demand upon City for alteration, repair, or improvement thereof. No new structures of any kind shall be placed on the site, and no existing structures shall be altered (except normal repairs and maintenance), expanded or moved on the property without prior written consent of the City Manager of the City. All such structures and/or personal property installed or placed on the Premises by Lessee shall be removed by Lessee prior to the termination of this Agreement, and in the event of the failure to do so, title thereto shall vest in City or shall become the property of City upon the termination of this Agreement.

6) Use of Premises shall be limited to agricultural or horticultural purposes only, excluding the grazing of livestock. No person shall be permitted to reside on the Premises.

7) Lessee shall have the right to harvest, gather, and remove any crops he plants or grows on the Premises.

8) Lessee shall assume the risk of loss, damage or destruction due to theft, fire and casualty of any and all fixtures and personal property belonging to Lessee that are installed or placed on the Premises.

9) Lessee shall not display advertising signs or other matter at the Premises.

10) City may inspect Premises at any time and for any purpose.

11) Lessee agrees to defend, indemnify and hold harmless City, its officers, agents and employees from any and all claims for loss, damages, injury or death to persons or damage to or loss of property, including attorney’s fees and court costs, arising out of the use of the Premises by Lessee, or by his employees, guests and visitors.

12) Lessee shall obtain and keep in full force and effect during the term of this Agreement workers' compensation insurance, in accordance with the requirements of the California Labor Code and any other applicable laws, and a policy of general liability insurance. In addition, Lessee shall obtain and keep in full force and effect insurance in an amount sufficient to cover all equipment, inventory and other personal property of Lessee that is kept on the Premises in accordance with the provisions of this Agreement. All such insurance policies shall be issued by insurance companies admitted to do business in the State of California. The policy of liability insurance shall: (a) name City and its officers, agents and employees as additional insureds; (b) shall insure and protect City and its officers, agents, and employees from and against any and all liability arising out of or connected with the use by the Lessee of the Premises; (c) shall provide a combined single limit for the liability covered in the amount of $500,000; and (d) be noncancellable without thirty days prior written notice thereof to City. Lessee shall file with the City Clerk either certified copies of said policies or a certificate of insurance for each of the required policies executed by the company issuing the policy certifying that the policy is in force and providing the following information with respect to said policy:

d. The policy number;

e. The date upon which the policy will become effective and the date upon which it will expire;

f. The names of the named insured and any additional insureds;

d. The subject of the insurance;

e. The type of coverage provided by the insurance;

i. The amount or limit of coverage provided by the insurance;

j. A description of all endorsements that form a part of the policy; and

k. An endorsement stating that City and its officers, agents and employees are named as additional insureds under the liability policy. Lessee's authorized activities on the premises shall be suspended during any period that Lessee fails to maintain said policies in full force and effect.

13) Lessee agrees to comply with all applicable regulations of City and to maintain the Premises in a clean and sanitary condition. Lessee shall be responsible for insuring that the Premises will be protected against damage or destruction by fire or other causes. Lessee shall repair any and all damage to the Premises arising out of Lessee’s activities thereon. Lessee shall provide and pay for all utilities required to conduct the activities permitted by this Agreement. Lessee shall remove all equipment and other personal property from the Premises upon the termination of this Agreement and shall leave the Premises in the manner in which it was found, ordinary wear and tear excepted, and damage or destruction not caused by the use of the property by Lessee excepted.

14) Lessee agrees to pay before delinquency all lawful taxes, assessments, fees or charges which at any time may be levied by the State, County, or any tax or assessment-levying body upon the right of use acquired by this Agreement, as well as all taxes, assessments, fees and charges on the equipment used and merchandise sold in connection with the authorized activities on the premises.

15) This Agreement contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any subsequent modification to this Agreement shall be in writing and executed by both of the parties hereto.

16) Any waiver by City of any breach of any one or more of the terms of this Agreement shall not be construed as a waiver of any subsequent or other breach of the same or of any other term thereof, nor shall failure on the part of City to require exact, full, and complete compliance with any of the terms of this Agreement be construed as in any manner as changing the terms thereof or estopping City from the enforcement thereof.

17) If any of the provisions in this Agreement are unenforceable, the balance shall be enforced.

18) In the event of any controversy or dispute regarding this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable attorney's fees and court costs.

19) This Agreement shall be interpreted under the laws of the State of California.

20) Either party may terminate this Agreement by giving the other party written notice at least thirty days prior to the date when the termination is to become effective.

21) Address for payments of rent and notices shall be sent to:

City: City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, California 90275
Attention: City Manager

Lessee: Mr. James Hatano
1172 West 24th Street
San Pedro, California 90731

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written.

Dated: ________________ LESSEE

By: __________________________
James Hatano

Date: _________________ CITY OF RANCHO PALOS VERDES:

By: ___________________________
Mayor

ATTEST:

By: _____________________
City Clerk