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2014-05-21 Min - Board
BOARD ACTION MINUT ORDERS : 5/21 /2014 CONSENT CALENDAR D irector Hemig moved , an d Director Ag uera seconded , that the Board approve the , consent calendar,, ROLL CALL : all Directors aye , by voice vote . SO MOVED CONSIDERATION OF SCHEDULING A PUBLIC HEARING RELATED TO ADOPTION OF THE ANNUAL ELECTRIC AND WATER STANDBY CHARGES This item relates to holding a public hearing to consider renewing the existing electric and water standby charges on vacant parcels in the D "istr'iGt, M02014Nw4l • Set a date for a Public Hearing on June 4 , 2014 at 6 : 00 PM for the purpose of receiving input on the adoption of Electric and Water Standby Charges CONSIDERATION OF : A) RESOLUTIONS APPROVING AMENDMENTS TO THE DISTRICT BYLAWS , CODE , AND FEES B ) ORDINANCES AMENDING WATER AND ELECTRIC FEES This item involves approval of resolutions to adopt amendments to the District Bylaws , Code, and fees . • Approve Resolution 2014-P--06 adopting amendments to the District Bylaws • Approve Reso lution 2014-07 adopting amendments to the District Code • Approve Ordinance No . 2014-.*02 adopting amendments to the Electric fees 03 adopting amendments to the Water fees • Approve Ordinance No :. 2014b CONSIDERATION TO AWARD A PURCHASE CONTRACT FOR A TRAILERwMOUNTED VALVE EXERCISING SYSTEM This item involves the purchase of a Trai' lermMounted Valve Exercising System for water utility distribution maintenance. M02014w42 a) Find the bid from Owen Equipment non - responsive to RFB b) Award the purchase of one trailer- mounted valve exercising system to American Truck & Trailer Co . Inc. for the amount of $ 54 , 720 plus applicable tax CONSIDERATION OF A RENEWAL OF A LEASE ON STATE OWNED LANDS This item involves a renewal of a lease on State owned lands . M020141=43 Recommendation • Author ize the Board President to sign the California State Lands Commission General Lease — Public Agency Use ACTION ITEM CONSIDERATION OF THE AWARD OF A CONTRACT FOR PROPERTY, LIABILITY AND WORKERS ' COMPENSATION INSURANCE This item concerns the annual renewal of the D "istrict' s property, liability and workers ' compensation insurance . M02014w44 Director Bender moved , and Director Ellis seconded , that the Board award contracts for the insurance Programs as proposed for the period beginning June 1 , 20149t ROLL CALL : all Directors aye , by voice vote ., SO MOVED 1 Coverage Carrier 2013m2014 Premium Package ( Liability , Property , Auto , and 11t Excess Layer) OneBeacon $ 147 ) 739 2 nd Excess Liability Layer AWAC $22 ) 900 Workers ' Compensation AIG $ 1651378 Pollution (3 yr term ending June 1 , 2017) Steadfast 181868 Earthquake — Primary Landmark $ 52 ) 075 Earthquake — Excess Essex $281344 Crime Chubb $41543 Marsh Broker Fee Marsh $60 ) 000 Premium $ 499 , 847 ROUTINE BUSINESS TREASURER ' S REPORT M02014=45 APPROVAL OF THE FUND BALANCES AS OF MARCH 31 , 2014 : Director Bender moved , and Director Hemwig seconded , that the Board approve the treasurer' s report for the month ended March 31 , 2014 . ROLL CALL : All Directors , aye . SO MOVED . APPROVAL OF DISBURSEMENTS FOR APRIL 2014 Director Aguera moved , and Director Ellis seconded , that the Board approve the April 2014 disbursements report . ROLL CALL : All Directors , aye . SO MOVED . APPROVAL OF MINUTES FOR APRIL 16 AND MAY 2 , 2014 Director Bender moved , and Director Ellis seconded , that the Board approve the minutes of April 16 and May 2 , 2014 . ROLL CALL ., All Directors , aye . SO MOVED . M02014=46 CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957 ( E ) y PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GENERAL MANAGER ' S PERFORMANCE PLAN REVIEW RETURN TO OPEN SESSION No reportable action . 2 D NNER TRUCKEE 0 P ic UtIlit District u b 11570 Donner Pass Road Truckee , Ca . 96161 Minute Order May 21 , 2014 MO 2014 =42 CONSENT CALENDAR Director Hemig moved , and Director Aguera seconded , that the Board approve the consent calendar. ROLL CALL : all Directors aye , by voice vote . SO MOVED CONSIDERATION TO AWARD A PURCHASE CONTRACT FOR A TRAILER - MOUNTED VALVE EXERCISING SYSTEM This item involves the purchase 39 of a TrailermMounted Valve Exercising System for water utility distribution maintenance . a ) Find the bid from Owen Equipment non - responsive to RFB b ) Award the purchase of one trailer- mounted valve exercising system to American Truck & Trailer Co . Inc . for the amount of $ 54 , 720 plus applicable tax Fiscal Impact • Sufficient funds exist in the Water Vehicle Replacement Fund for the :9 purchase of the trailer- mounted valve exercising system 11570 Donner Pass Road — Truckee , CA 96161 Phone 530 587-3896 — Fax 530 587- 1189 4, E� TRU_ C_ K.E . . DONNER . . ....... PLbll" c Utility Di' strict 41 11570 Donner Pass Road Truckee , Ca . 96161 I nute OrIer W"a May 21 , 2014 MO 2014 = 3 CONSENT CALENDAR Director Hemig moved , and Director Aguera seconded , that the Board approve the consent calendar . ROLL CALL : all Directors aye , by voice vote . SO MOVED CONSIDERATION OF A RENEWAL OF A LEASE ON STATE OWNED LANDS This item involves a renewal of a lease on State owned lands . • Authorize the Board President to sign the California State Lands Commission General Lease "--, ubl 'ic Agency Use Fiscal Impact • There is no fi' scal 'i' mpact associated with this item 11570 Donner Pass Road — Truckee , CA 96161 Phone 530 587-3896 — Fax 530 587- 1189 u f RECORDED AT THE REQUEST OF AND WHEN RECORDED MAIL TO ; STATE OF CALIFORNIA . California State Lands Commission Aftn ,9P Title Unit 100 Howe Avenue, Suite I 001-& South Sacramento, CA 95825 - 8202 STATE OF CALIFORNIA OFFICIAL BUSINESS Document entitled to free recordation pursuant to Government Code Section 27383 SPACE A B O VE THIS LINE FOR RECORD ER'S USE A.P.N. 17460-18 County: Nevada LEASE NO. PRC 4945 * 9 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 S CTION 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 o egulations , and for consideration specified in this Lease, does hereby lease, demise, and let to Truckee Donner Public Utility District, hereinafter referred to as Lessee,,, t hose certain lands described in Exhibit A hereinafter referred to as Lease Premises,, subject to the reservations, terms,, covenants, and conditions of this Lease . f MAILING ADDRESS : 11570 Donner Pass Road , Truckee, CA 96161 LEASE TYPE : Gen. J.era11a ase — Public Agency Use LAND TYPE : Sovereign LOCATION : Donner Lake, adjacent to 15775 Donner Pass Road, town of Truckee, Nevada County, as described in Exhi bit A attached and by this r eference made a part hereof. RP LAND USE OR PURPOSE : Continued maintenance of existing 8 -inch and 12 -i* neh freshwater intake pipelines . TERM : 20 d ears ; beginning AprIi 23 , 2014 's ending April 22, 2034, unless sooner terminated as 00 provided under this Lease . CONSIDERATION : The public use and benefit, Subject to modification by Lessor as specified in P aragraph 3 (c) of Section 3 - General Provisions . AUT HORIZED IMPROVEMENTS : X EXISTING : Eight-inch and 12&Mwinch freshwater intake pipelines . TO B CONSTRUCTED ; CONSTRUCTION MUST BEGIN BY : AND B COMPLETED BY : LIABILITY INSURANCE : N/A 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 ) Lessee acknowledges that the land described in E�iibit A of this Lease is subject to the Public Trust and is presently available to members of the public for recreation, waterborne commerce, navigat IP ion, fisheries, open space, or other recognized Public Trust uses and that Lessee ' s use o e Lease Premises shall not interfere or limit the Public Trust rights of the publ ic . 2) Lessee agrees to place and maintain for the term of this lease two (2) warning signs on or immediately e adjacent to the land described in this agreement which gi ve sufficient notification to the public 0f all hazards of the buried and/or submerged pipelines , 3 ) Lessee shall provide notice to Lessor prior to placing the authorized facilities into service . f 4) Lessee shall not add or allow the placement by any other party of any additional improvements on the lease premises without the prior express written consent of Lessor . Lessee shall remove or cause any such unauthorized improvements to be immediately removed in accordance with all appropriate legal and re gulatory requirements . 5) Lessee ag rees to submit no later than two years p rior to the expiration of this lease either: (a) an application and minimum expense depos it 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 term., pursuant to Paragraph 12 of Section 3 , General Provisi ons, 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 11 (b) of Section 3 ,, General Provisions, of this Lease . SECTION 3 GENERAL PROVISIONS r . GENERAL dP In the case of any conflict between +these General Provisions and Special Provisions found iri Section 2, the Special Provisions control. 2 . DEFINITIONS For the purposes of this Lease, the following terms shall be defined as stated below: "Additions" shall b defined as any useor Improvements other than those expressly authorized in this Lease . Alterations" shall be defined as any material change in the size, scope, density, type, nature, or of Improvements on the Lease Premises fi•om what is authorized in this Lease. Alterations shall also include any modifications, alterations, ' or renovations of the land or waterways on the Lease Premises other than those authorized by this Lease. "Breach" shall be defined as a Party S unjustified or unexcused nonperformance of . a contractual duty the party i s re quired to immediately perform. 4P "Damages" shall include all liabilities, demands, claims, actions or causes of action whether regulatory, legislative or judicial in nature; all assessments, levies, losses, fines, penalties, damages* ., costs and expenses, M' cluding, without limitation:. (i) reasonable attorneys ' , accountants ' , investigators ' , and experts ' fees and expenses sustained or incurred in connection with the defense , or investigation of any such liability, and (ii) costs and expenses cwTed to bring the Lease Premises into compliance. with Environmental Laws, a. courftt order, or applicable provisions of a Regulatory Agency.. . The term "Damages" also includes, expressly, those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise . "Default" shall be defined as a material Breach of' magnitude sufficient to justify termination of the Lease . "Environmental Law" shall be defined as and include all federal, state, and local e nvironmental, health, and safety laws, statutes, ordinances, regulations, rules, judgments, orders, and notice requirements, which were in effect as of the date of execution of this Lease t' r are subsequently enacted and lawfully applied hereto, which regulate or relate to (a) the protection or clean-up of the environment; � b) the use, treatment, storage, transportation, handling or disposal of hazardous , toxic or otherwise dangerous substances, wastes or 1p materials; (c) the quality of the aff" and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, goundwater, or drinking water; (e) the health and safety of persons or property; or (f) imposefiabiHity with respect to any of the foregoing; including without limitation, the California Environmental Quality Act (CEQA) [PRC § § 21000 et seq.] ; the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) [42 USCS § § 9601 et seq.] ; the Resource Conservation and Recovery Act of 1976 (RCRA) [42 USCS § § 6901 et " seq.] @ the Clean Water Act, also Imown as the Federal Water Pollution Control Act (FVVPCA) [33 USCS § § 1251 et seq.] ; the Toxic Substances Control Act (TSCA) [ 15 USCS § § 2601 et seq.] ; the Hazardous Materials Transportation Act (HMTA) [49 USCS § § 1801 et seq.] ; the Insecticide, Fungicide, Rodentl' cide Act [7 USCS § § 136 et seq.] ; the Superfund Amendments and Reauthorization Act [42 USCS § § 6901 et seq.] ; the Clean Air Act [42 USCS § § 7401 et seq.] ; the Safe Drinking Water Act [42 USCS § § 300f et seq. ] ; the Solid Waste Disposal Act [42 USCS § §. 6901 et seq. ] ; the Surface Mining Control and Reclamation Act [30 USCS § § 1201 et seq. ] ; the Emergency Planning and Community Right to Know Act [42 USCS § § 11001 et seq.] ; the Occupational Safety and Health Act [29 USCS § § 655 and 657] ; the California Underground Storage of Hazardous Substances Act [H & S C § § 25280 et seq. ]; -the Californi a Hazardous Substances Account Act [H & S C § § 25300 et seq.] ; the California Hazardous Waste Control Act [H & S C § § 25100 et seq.] ; the California Safe Drinking Water and Toxic Enforcement Act [H & S C § § 24249. 5 et seq.] ; the Porter-Cologne Water Quality Act [Water C § § 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above . "Hazardous Material" shall be defined as and include any substance which falls within the definition of hazardous. substance, hazardous waste, hazardous material, toxic substance, solid waste, pollutant, or contaminant, under any Environmental Law,, "Improvements" shall be defined as any modification, alteration, addition, or removal of any material, and any other action which serves to change the condition of the Lease Premises from the natural state whether situated above, on., or under the Lease Premises . Improvements include, but are not limited to buildings, structures, facilities, decks, docks, wharves, piers, walks, curbs, bridges, buoys, landscaping, roadways, shoreline protective structures of all types, foundations,, pili ngs or similar support structures whether above or below the water line, fences, utilities, pipelines, and any other construction of any type situated on the Lease Premises ,, Lease" shall be defined as this lease contract together with all amendments and exbibits . "Lease Premises" shall be defined as the area of land', together with any improvements located thereon, the use and occupancy of which Form5l . 16 (Rev. 10/13 ) Page 1 of 12 is authorized by this Lease , ` Lessor" shall be defined as the state of California, acting by and through the California State Lands Commission, including the Commissioners, their alternates and designates, the Executive Officer, and the staff of the California State Lands Commission . "Re gulatory Ag enalcy" shall include any Federal, State, Cot�uny, Municipal, or Local agency having jurisdiction over the Lease Premises . "Repairs" shall be defined as all work of any kind made to maintai n, change,., restore,, strengthen, replace, alter, or otherwise affect any Improvement on the Lease Premises . "Residence" shall be defined as any Improvement, whether permanent, movable, or temporary, or a portion thereof, which is for' the time being a home or place of lodging. A Residence includes any Improvement affLxed to the land such as trailers or cabins, built on a raised foundation such as stilts or pilings, and floating residences such as boats, barges, arks, and houseboats, and any combination of such Improvements which provide residential accommodations to the Lessee or others . "Residence" shall not include transitoiy, - interm ent recreational use of facilities such as campgrounds . "Residential Use" shall be defined as Improvements such as, but not limited to, sundecks, and sunrdoms which are extensions of, or additions to, the upland property and are not water,.-dependent uses . Although the various uses or Improvements which may fall under this definition may vary by geographic area, lease type, or other factors, it is the intention of the parties to include in this definition all uses and Improvements which are not water-dependent but residential in nature, or those uses and Improvements which are not consistent with coi=011 law public trust principles and values . 3 . CONSIDERATION (a) Absolute Triple Net Lease This Lease is an absolute triple net lease_, pursuant to which Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities and repairs or other costs or obligations associated with the Leased Premises , except as expressly stated herein . (b) Rent Lessee agrees to pay Lessor rent as stated in this Lease, in annual installments, for the use and occupancy of the Lease Premises . The first installment shall be due on or before the beginning date of this Lease and all subsequent installments shall be due on or before each anniversary of its beginning date during each year of the Lease term, or as otherwise provided in this Lease . Said sums shall be paid in lawful money of the United States of America . Lessee shall send said rent to the mailing address of Lessor. Timeliness of receipt of remittances sent by mail shall be governed by the postmark date as stated in Government Code Section 11002 . Invoices for rent due may be provided by Lessor as a cowtesy. Lessor' s failure to, or delinquency in, providing invoices shall neither excuse Lessee from paying rent, nor extend the time for paying rent. (c) Modification Lessor may modify the method, amount, or rate of consideration effective on each fifth anniversary of the beginning date of this Lease. Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on any one ( 1) of the next four, (4) anniversaries following such fifth anniversary, without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary of the beginning date. No such modification shall become effective unless Lessee i' s given at least thirty (30) days ' notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (3 0) days ' notice prior to the effective date of the increase, whichever prov 1P ides a greater notice period. If the consideration for this Lease is based on a percentage of income, royalties, profits, or any similar business performance .0 indicators, Lessee shall provide Lessor with financial statements and all other documents necessary to deterrine the relevant basis for income. (d) Penalty and Interest Any installments of rent accruing under this Lease not paid when due shall be subject to a delinquency charge equal to five percent (50/o) of the principal sum due . Annual payments shall bear interest as specified in Public Resources Code Section 6224 and the Lessor's then existing administrative regulations governi ng penalty and interest., (e) Non-Monetary Cons id erati on If the consideration to Lessor for this Lease is the public use, benefit, health, or safety, Lessor shall have the right to review such consideration at any time and set a monetary rental if the Lessor, at its sole discretion, determines that such actionis in the best interest of the State. Lessee ' s assignment or transfer of this Lease pursuant to Section 3 Paragraph I I below to any third party Form5l . 16 (Rev. 10/ 13 ) Page 2 of 12 which results in royalties, profits, or any form of compensation, whether onetary or otherwise, shall give Lessor the right to I Teevaluate the requirements of this Lease as stated in Section 3 Paragraph 11 . Lessee skull be given at least - thhty (30) days ' notice prior to the date of the Commiss ion ineeting wherein the rent modification is considered, or thirty (30) days ' notice pr ior to the effective date that this I .ease is converted to a monetary rental,, whichever provides more notice. (f) Place for Payment of Rent All rent that becomes due and payable under this Lease shall be paid to Lessor in person or by United States mail at the Sacramento Offices of the California State Lands Commissi on, currently at 100 Howe Avenue, Suite 100-.*South, Sacramento, CA 95825o48202, or at any other place or places that Lessor may designate by written notice to Lessee , Alternately, Lessee may contact Lessor' s accounting department for Lessor ' s current practices for payment by credit card or electronic fund transfer. 40 BOiTNDARIES This Lease is not intended to establish the State's boundaries and is made without prejudice to either party regarding any boundwy or title cla 'ms which may be asserted presently or in the future . - 5 . LAND USE (a) General ( 1 ) Lessee shall use the Lease Premises only for the purpose or purposes stated in this Lease and only for the operation , md maintenance of the Improvements expressly authorized m' iths Lease . Lessee sball commence use of the Lease Premises within ninety (90) days of the beginning date of this Lease or within ninety (90) days of the date set for construction to commence as set, forth in this Lease, whichever is later. (2) All demolition, constriction, remodeling, reconstruction, maintenance, repairs, removal, or remediation performed on the Lease Premises at any time by Lessee shall first be authorized by all appropriate Regulatory Agencies . Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and shall be solely responsible for all costs incurred thereby. In addition, Lessee shall obtain and comply with preventative or remedial measures required by any environmental reports, as s e s sments, or inspections, including, but not limited to those required by the California Environm ental Quality Act and/or the National Environmental Policy Act, or as otherwise required by law or reasonably requested by Lessor. Nothin in this Lease shall be interpreted as apre-approval of anyrmit certification or an other g Y precondition required for the use of the Lease Premises . (b) Continuous Useb 4- Lessee's use of the Lease Premises shall be continuous from commencement of the Lease until its expiration. Lessee's discontinuance of such use for a period of ninety (90) days shall be presumed to be an abandonment unless Lessee demonstrates to Lessor' s satisfaction that Lessee ' s use of the Lease Premises is consistent with similarly situated properties. In the event of an abandonment, Lessor may elect to terminate the Lease as provided in Paragraph 12(a)(3) . Abandonment of the Lease, Premises shall not relieve Lessee of any obligations under this Lease . (c) Repairs and Maintenance ( 1 ) Lessor shall not be required to make any Repairs in, on, or about all or part of the Lease Premises . Lessee shall, at all times during the term of this Lease and without any cost or expense to Lessor, keep and maintain the Lease Premises, it all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition. dP (2) Lessee shall make, or cause to be made, any Repairs which may be required by any Regulatory Agency. Lessee shall observe and' comply with; any law, statute, ordinance, plan, regulation, resolution, or policy applicable to the Lease Premises in making such -,Repairs . All work shall be performed with reasonable diligence, completed within a reasonable time, and performed at the 'sole cost and- expense of Lessee,, (3) Lessee expressly accepts the Lease Premises "as is" and expressly acknowledges that: (i) Lessor has made no representations or warranties as to the su��Lt abili ty of the Lease Premises for any Improvements . Lessee shall conduct all tests necessary to determine thes - ftabil-ty of the Lease Premises for any proposed use or It Improvements authorized; and (ii) Lessor has made no representations or warranties as to the quality or value of any Imp rovements found on the Lease Premises, or of their conformity to any applicable building codes, zoning ordinances, or other regulations . Lessee agrees to inspect any preexisting- Improvements at its own cost to determine whether such Improvements are safe and suitable for Form5l , 16 (Rev. 10/13 ) Page 3 of 12 the Lessee ' s intended use; and (Ili) Lessee shall neither be entitled to any reduction in rent., nor any extension of the terns of this Lease because of damage to 'or destruction of any Improvements on the lease Premises . (iv) Lessen and Lessor agree that any Improvements on the Lease Premises constitute the personal property of Lessee and that fixture law does not apply. (4) In the event that the Lease Premises is partly, or in whole, comprised of tidal, submerged, or waterfivont property, Lessee expressly accepts the hazards involved in using or improving such lands . Lessor is not responsible for, and Lessee shall not be reimbursed for nor receive any offset- of rent for, any damages or reduced use of the Lease Premises caused by; local or invasi ve flora or fauna, flooding, erosion, sea level rise, storms, freezing, inclement weather of any kind, acts of god, ' maintenance or failure of protective structures, and any other such hazards , (d) Additions, Alterations, and Removal P. No Improvements other than those expressly authorized in this Lease shall be constructed by the Lessee on the Lease Premises without the prior written consent of Lessor. Any Additions or Alterations are expressly prohibited. Lessee i' s also prohibited from any Additions or Alterations which cause a material change to the environmental impact on or around the Lease Premises .. (c) Enjoyment This Lease is non-exclusive, and i's subject to the provisions of Section 3 , Paragraph 6 below. Lessee shall have the right to exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with Lessee's use and enjoyment of the Lease Premises . (f) Discrimination Lessee, in its use of the Lease Premises, shall not discriminate against any person or class of persons on any basisprotected by federal, state, or local law, including ; race, color, creed, religion, national origin, sex, sexual orientation, gender identity, age, marital/parental status, veteran status , or disability . (g) Residential Use 4 Unless otherwi se provided for in this Lease, no portion of the Lease Premises shall be used as a location for a Residence, for the, purpose of mooring or maintaining a structure which is used as a Residence, or for Residential Uses . (h) . Commercial Use Unless otherwise provided for in this Lease, the Lease Premises i s to be used by Lessee and Lessee ' s invitees or guests only. Use of the Lease Premises for commercial proposes ; conducting a business, whether for profit or otherwise; and any subleasing, rental, or any transaction whereby Lessee directly or indirectly receives compensation from a third party in exchange for use of the Lease Premises shall constitute an immediate Default of this lease with no cure period. 6 . RESERVATIONS, ENCUMBRANCES, AND RIGHTS-OF-WAY (a) Reservations ( 1 ) Lessor expressly reserves all natural resources in or on the Lease Premises, including but not limited to timber, mi nerals, and geothermal resources as defined under Public Resources Code sections 6401 , 6407., and 6903 ., respectively; the right to grant and transfer the same; as well as the right to grant leases in and over the Lease Premises which may be necessary or convenient for the extraction of such natural resources . Such leasing shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease . (2) Lessor expressly reserves a right to go on the Lease Premises and all Improvements for any purposes associated with this Lease or for carrying out any function required by law, or the rules, regulations, or management policies of the State Lands Commission. Lessor shall have a right of reasonable access to the Lease Premises across Lessee owned or occupied lands adjacent to the Lease Premises for any propose associated with this Lease . (3 ) Lessor expressly reserves to the public an easement 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 easement or right-of-way shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease., Foim5 It 16 (Rev. 10/ 13 ) Page 4 of 12 (4) Lessor expressly reserves the right to lease, convey, or encumber the Lease premises, in whole or m part, during the Lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. (b) Encumbrances The Lease Premises may be subject to pre-existing contracts, leases, licenses., casements., encumbrances, and claims and is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose . 7 . RULES , REGULATIONS , AND TAXES (a) Lessee shall comply with and be bound by all presently existing or subsequently enacted rules, regulations, statutes or ordinances of the State Lands Commission or any Regulatory Agency. Occupancy or use of the Lease Premises provides no exemption from applicable regulations including, but -not li mited to; federal, state, county and local regulations, regulations promoting public - health, safety, or welfare, building codes, zoning ordinances, and sanitation regulations . Lessee expressly ' acknowledges that Regulatory Agencies have jurisdiction over the Lease Premises unless such laws are in direct conflict with state law .or public host principles . d. (b) Lessee understands and agrees that a necessary condition for the granting and continued existence of this Lease i' s that - Lessee obtains and maintains all permits or other entitlements . Lessee expressly aelmowledges that issuance of this Lease does not substitute for, or provide preference in obtain g authorizations from other Regulatory Agencies . (c) Taxes ( 1 ) In addition to the rent due under this Lease, Lessee accepts responsibility for and shall pay any and all real and personal prop erty taxes , i ncluding possessory interest taxes, assessments, special assessments, User- fees, service charges, and other charges of any des rl*plion levied, imposed on; assessed, or associated with the leasehold interest, Improvements on the Lease Premises, any business or activity occurring on the Lease Premises, the Lease Premises itself, or any portion thereof, levied by any governmental agency or entity. Such payment shall not reduce rent due Lessor under this Lease and Lessor shall have no liability for such payment. (2) In the event that this Lease commences, terminates or expires dw* g a tax year, Lessee shall pay the taxes for the period of such year during which this Lease was in effect. (3 ) Any and all taxes and assessments and installments of taxes. and assessments required to be paid by Lessee . under this Lease shall be paid when due and the official and. original receipt for the payment of such tax, assessment, or installment shall be delivered to Lessor upon request., (4) Lessee shall indemnify and hold Lessor, the Lease Premises., and any Improvements now or hereafter located thereon, free and harmless from any liability, loss, or Damages resultin g from any taxes, assessments, or other . charges required by this Lease to be paid by Lessee and from all interest, penalties, and other sums imposed thereon and - from any sales or other- proceedings to enforce collection of any such taxes, assessments , or other charges . 8 .. INDEMNITY (a) Lessee ' s use of the Lease Premises and any Improvements thereon i' s at Lessee ' s sole and exclusive, risk. (b) In addition to any other obligation to indemnify Lesso r as otherwise provided in this Lease, except to the extent caused by the sole negligence and/or Willfal -mi' sconduct of the Lessor, Lessee shall indemnify, hold harmless, and', at the option of Lessor, defend Lessor, its officers, agents, and employees from any and aH Damages result * g from Lessee ' s occupation and use of the Lease Premises. Lessee shall reimburse Lessor in full for all reasonable costs and attorneys ' fees, specifically including, without limitation, any Damages arising by reason of: ( 1 ) . The issuance, enjoyment,, interpretation, Breach, or Default of this Lease; (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based; (3 ) The death or mj ury of any person, or damage to or destruction of any property- from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal property on the Lease Premises ; (4) The condition of the Lease Premises, or Improvements on the Lease Premises; (5 ) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises ; (6) Any work performed on the Lease Premises or material furnished to the Lease Premises ; (7) Lessee ' s failure to comply with any material legal or other requirement validly imposed on Lessee or the Lease Premises by a Regulatory Agency. (c) The reimbursement provisions of this Paragraph 8 shall not apply to any claims, litigation, or other actions which may be brought by either Lessee or Lessor against each other. (d) Nothing in this paragraph shall be construed as requiring that Lessor defend itself against all or any aspect of any challenge to Fonn5l . 16 (Re-v. 10/13 ) Page 5 of 12 this Lease or any associated environmental review. However, Lessee may take whatever legal action i' s available to it to defend this Lease or any associated envff" omnental review against any challenge by a third party, whether or not Lessor choose s to raise a defense against such a challenge . (e) Lessee shall notify Lessor immediately in case of any accident, injury, or casualty on the Lease Premises . 9 ., INSURANCE (a) Lessee shall obtain and maintain in full force and effect during the term of this Lease comprehensive general liability insurance and properly damage insurance, with such coverage and limits as may be reasonably requested by Lessor. from time to time, but in . no event for less than the sum(s) specified against any and all claims or liability arising out of the ownership, use,". occupancy, condition, or maintenance of the Lease Premises and all Improvements . (b) The insurance policy shall identify the. Lease by its assigned number. The specific Improvements shall also be generally' identified, as well as theff* location on state owned property. The coverage provided shall be primary and non-contributing. Lessee shall keep such policy current. Lessor shall be named as a "certificate holder" and/or an "additin oal interest" on the policy. Lessee shall provide Lessor with a cur-rent certificate of insurance at all times . At Lessor ' s request, Lessee shall provide a full copy of the current insurance policyj - along with any and all endorsements or other such documents affecting the coverage. Lessor will not be 4. responsible for any premiums or other assessments on the policy. (c) The insurance coverage specified in this Lease shall be in effect at all times during the Lease team and subsequently until Lessor has either accepted all of the Lease Premises as improved or restored by Lessee as provided elsewhere in this Lease. Lessee shall notify Lessor within five (5 ) business days if the insurance is canceled for any reason . . 10 .. SURETY ]BOND (a) When required by Section 1 of this Lease, Lessee shall provide a surety bond or other security device acceptable to Lessor, for the specified amount, and naming the State of California, California State Lands Commission as the assured_, to guarantee to Lessor the faithful observance and performance by Lessee of aH of the teams, covenants, and conditions of this Lease.. (b) Lessor may require an increase m the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need for security. The surety bond or .6 other security device may be increased on each, fifth anniversary of the beg * g date of this Lease. Should Lessor fail to exercise such right effective on any fifth anniver&ar y, it mmaydo so effective. on any one ( 1 ) of the next four (4) anniversaries following such . fifth anniversary without Prejudice to its .right to effect such modification on the next or any succeedingfifth anniversary. No such modification shall become effective unless Lessee i' s given at least thirty (30) days ' notice prior to the date of the Commission meeting I F wherein the modification of the bond I or security is considered, or- thirty (30) days ' notice prior to the effective date of the increase, whichever provides more notice. (C) The surety bond or other security device shall be maintained in full force and effect at all times during the Lease term and subsequently until Lessor has either accepted all of the Lease Premises as improved or restored by Lessee as provided elsewher e in this Lease. Lessee must first seek approval of Lessor before changing the type of security device used., or the bond holder. I I ASSIGNMENT, ENCUMBRANCING OR SUBLETTING (a) Lessee shall not - either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease and shall not sublet the Lease Premises, in whole or in part, or allow any person other than the Lessee's employees, agents,' servants and It to occupy or use all or any portion of the Lease Premises without the prior written consent of Lessor, which consent shall not be unreasonably withheld.. ( 1 ) Notwithstanding the forego ing prohibition against transfer and assignment, the Lease may be transferred by Lessee if the transfer is caused by the, death of a spouse and the fullinterest of the deceased spouse is transferred to a surviving spouse; or the transfer is caused by the dissolution of the marriage of Lessee and the full interest of one of the spouses is transferred to the other spouse . In the event of such a transfer, Lessor shall be notified in writing within 3 0 days of the transfer. (2) Notice to Lessor of Successor Trustee(s) -* Tn the event this Lease is held in trust, and the Lessee is a trustee thereof, the substitution or succession of a new trustee shall not be an assignment or transfer for the purposes of this Paragraph. Lessee (and by operation of law, any successor trustee) agrees to provide prompt notice to Lessor of any succession or substitution of trustee in accordance with Paragraph 16(c) of General Provisions , no latex than sixty (60) day s after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as trustee for any reason. (b) The following shall be deemed to be an EISSI' Emment or transfer within the meaning of this Lease -. Form5l . 16 (Rev. 10/ 13 ) Page 6 of 12 h. ( 1 ) If Lessee is a business entity, any dissolution, merger, consolidation or other reorganization of Lessee, or the sale or other transfer of substantially all the assets of Lessee , If Lessee is a publicly traded entity, transfers of interests in Lessee shall not constitute an assignment requiring the consent of Lessor. (2) If Lessee is a partnership, a transfer of any interest of a general partner, a withdrawal of any general partner from the partnership, or the dissolution of the partnership . (c) If this Lease i' s for sovereign lands appurtenant to adjoining littoral or riparian land., Lessee shall not transfer or assign its ownership interest or use rights in_ such adjoining lands sirli,%araYtel .from the leasehold rights granted herein without the prior written consent of,Lessor, dF (d) If Lessee desires to assign, -sublet,- encumber or otherwise transfer all or any portion of the Lease Premises, Lessee shall .do all of the following : ( 1 ) Give not less than 90 days ' prior written notice to Lessor; (2) Provide the name, complete business organization, operational srucurett , and formation documents of the pro posed assignee, sublessee, secured third party, or other transferee; and the nature of the use 'Of and interest in the Lease Premises proposed by the assignee, sublessee, secured third party or other transferee.. (3 ) Provide the terms and condi tions of the proposed assignment, sublease, or encumbrance or other transfer; (4) Provide audited financial statements for the two most recently completed fiscal years, of the. proposed assignee, sublessee, - secured party or other transferee; and provide pro forma financial statements showing the projected income, expense and .1 financial condition resulti ng from use of the Lease Premises ; and (5) Provide such additional or supplemental information as Lessor may reasonably request concerning the proposed assignee, sublessee, secured party or other transferee. � (6) Lessor will evaluate proposed assignees, sublessees., secured third parties and other transferees and grant approval or disapproval according to standards of commercial reasonableness cons " der ' ng the following factors within the context of the proposed use. the proposed puty's financial srengtth and realibility, their b usiness experience and expertise, their. personal and business reputation', their managerial and operational skills, their proposed use and projected rental, as well as other relevant factors . (e) Lessor shall have a reasonable period of time from the receipt of all documents and other information required under this provision to grant or deny its approval of the proposed party. Lessor may reevaluate the rent, insurance and/or bond provisions of , this Lease, and may condition its approval of the proposed assignment, sublease, hypothecation, mortgage, or other transfer on the party' s acceptance of the new terms . Lessee ' s rights stated in this paragraph shall apply regardless of whether the proposed transfer coincides with a regular rent review period as stated ' Section3 Paragraph 3 (c) above . (JD Lessee's mortgage or hypothecation of this Lease, if approved by Lessor, shall be subject to terms and conditions imposed by a separately negotiated encumbrancing agreement. (g) Upon the express written assumption of all obligations and duties under this Lease by an assignee approved by - Lessor, the Lessee may be released from all liability under this Lease arising after the effective date of assignment and not associated with Lessee's use, possession or occupation of or activities on the Lease Premises ; except as to any hazardous wastes, substances or materials as defined under federal, state or local law, regulation, or ordinance manufactured, generated, used, placed, disposed, stored or transported on the Lease Premises during Lessee ' s tenancy . (h) If the Lessee files a petition or an order for relief is entered against Lessee, under Chapters 75 9, 11 or 13 of the Banlauptcy Code ( 1 1 U S C S e ct. 10 1 , et s eq.) then the trustee or debtor-in-possession must elect to assume or reject this Lease within sixty (60) days after filing of the petition or appointment of the trustee, or the Lease shall be deemed to have been rejected, and Lessor shall be entitled to immediate possession of the Lease Premises . No assumption or assignment of this Lease shall be effective unless it is M writing and unless the trustee or debtor-i n-possession has cured all Defaults under this Lease (monetary and non-monetary) or has provided Lessor with adequate assurances ( 1 ) that within ten ( 10) days from the date of such assumption or assignment, all monetary Defaults under this Lease will be cured,, and (2) that within thirty (30) days from the date of such assumption, all non- monetary Defaults under this Lease will be cured; and (3 ) that all provisions of this Lease will be satisfactorily performed in the future. Form5l . 16 (Rev. 10/13) Page 7 of 12 (1*) In the event of any transfer or assignment, under this Paragraph I I or by any other means authorized by this Lease, the Lease terms shall be for the remaining years existing on the Lease prior to the transfer or assignment. A transfer or assignment shall not E extend the term of this Lease. 12 . DEFAULT AND RE MEDIE S ( a) Default The occurrence of any one or more of the following events shall immediately and without fw1her notice constitute a Default of this Lease : ( 1 ) Lessee's failure to make any payment of rent, royalty, or other consideration as required under this Lease; or (2) Lessee's failure to obtain or maintain liability insurance or a surety bond or other security device as required under this Lease; or (3) Lessee's abandonment of the Lease Premises (including the covenant for continuous use as provided for in Paragraph 5 (b)) dw g the Lease term; or (4) L e s s e e's failure to obtain and maintain all ne c es s ary governmental p ermits or other entitlements ; or (5) The maintenance of the Lease Premises in violation of, or failure to comply with, any applicable .provisions of any Regulatory Agency, Environmental Law, or maintenance of the Lease Premises in a condition constituting nuisance; -- or 4 (6) Lessee ' s Failure to commence to construct and to complete construction of the Improvements authorized by this Lease within the time limits specified in this Lease . (7) Lessee is found to sublet or otherwise surrender daily management and control of the Lease Premises to a third party without the knowledge, expressed written consent or authorization of the Lessor , (b)' Lessee's failure to observe or perform any other term, covenant, or condition of this Lease when such failure shall continue for a period of thirty (30) days after Lessor's giving written notice shall constitute a Default of this lease. However, if the nature of Lessee's Default under this paragraph is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in Default if Lessee commences such cure within such thirty (30) day period and diligently proceeds with such cure to completion. (C) Should Lessee Breach any term, covenant, or condition of this Lease under Paragraph 12(b) above three (3 ) times in any .three hundred and sixty-five (365) day period, the third Breach will be a Default under this Lease and Lessor will be entitled to immediately terminate this Lease, and take other appropriate action. Lessor will provide written notice of each Breach as provided above, and provide written notice that future Breaches will constitute immediate Default with no cure period. (d) Remedies In the event of a Default by Lessee and Lessee's failure to cure such Default if such a cure period is applicable, Lessor may OP at any time and with or without notice do any one or more of the following m:' addition to any rights or remedies permitted by law: ( 1 ) Re-enter the Lease Premises, remove all persons and property -- and repossess and enjoy such premises ; or (2) Terminate this Lease and Lessee's right of possession of the Lease Premises by any lawful means . The termination shall not relieve Lessee of any obligation, monetary or otherwise, which has accrued prior to the date of termination. Such termination shall be effective upon Lessor's giving written notice and upon Lessee ' s receipt of such notice. Lessee shall immediately surrender possession of the Lease Premises to Lessor. Lessor shall be entitled to recover from Lessee all amounts to which Lessor is entitled pursuant to Section 1951 .2 of the California Civil Code, or' any other provision of law, including any necessary Repair, renovation, alteration, re ediation, or removal of Improvements; or (3 ) Maintain this Lease in full force and effect and recover any rent, royalty., or other consideration as it becomes due without terminatmg Lessee's right of possession regardless of whether Lessee shall* have, abandoned the Lease Premises, subject to the conditions imposedb y Cal. Civil Code § 195 1 .2 ; or Fonn5l ,, 16 (Rev. 10/ 13 ) Page 8 of 12 (4) Exercise any other right or remedy which Lessor may have at law or equity. (e) Determination of Rental Value If rent under this Lease is calculated as a percentage, of Lessee ' s income attributable to the Lease Premises and Lessee abandons the Lease Premises during some or all of the applicable period, then the reasonable rental value shall be, the percentage of proceeds Lessor would have received had Lessee operated the Lease Premises in the usual and customary manner. (� Waiver of Rights The failure or delay of either party. to exercise any right or remedy shall not be construed as a waiver of such right or . remedy or any Breach by the other patty. Lessor' s acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the failure to pay the particular rent accepted regardless of Lessor' s Imowledge of the preexisting Breach at the time rent is accepted. 13 . RESTORATION OF LASE PREMISES AND ENVIRONMENTAL MATTERS (a) Restoration of Lease Premises ( 1 ) Upon expiration or sooner termi nation of this Lease, Lessee must immediately surTender possession of the Lease Premises to Lessor. Prior to the time of surrender, Lessee must remove all or any Improvements together with the debris and all parts of any such Improvements at its sole expense and risk, regardless of whether Lessee actually constructed or placed the Improvements on the Lease Premises ; or Lessor, at its sole and absolute discretion, may itself remove or have removed all or any portion . of such Improvements at Lessee's sole expense . Lessor may waive all or any part of this obligation iu its sole discretion if doing so is in the best interests of the State. (2) As a separate and related obligation, Lessee shall restore the Lease Premises as nearly as possible to - the . conditions exi sting prior to the installation. or constivdion of any Improvements . For purposes of this Lease, restoration includes removal of any landscap ' ng; removal of any Hazardous Materials ; and to the extent possible, undoing any grading,, fill., excavation, or similar alterations of the natural features of the Lease Premises . Lessor may waive all or any part of this obligation in its sole and absolute discretion. (3) Unless otherwise provided for in this Lease, Lessee shall submit to Lessor no later than one ( 1 ) year 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 term together with a timeline for obtaini ng all necessary permits and conducting the work prior to the expiration of this Lease. (4) In removing any or all Improvements, or conducting any restoration work, Lessee shall be required to obtain any permits or other governmental approvals as may then be required by any ' Regulatory Agency, including, without limitation, any Environmental Law. (5) Lessor may.., up on written notice, in its sole and absolute discretion, accept title to any or all Improvements at the termination of this Lease. Lessor shall notify Lessee that Lessor intends to take title to any or all Improvements within six (6) months of Lessee submitting a plan for restoration under Paragraph 13 (a) (3 ) (b) above . If Lessor elects to take title to any such Improvements, Lessee shall deliver to Lessor such documentation as may be necessary to convey title to such Improvements to Lessor free and clear of any liens, mortgages , loans, or any other encumbrances . Lessor shall not pay, and Lessee shall not be entitled to compensation for Lessor ' s taking title to such property. 4 (b) Environmental Matters. ( 1 ) Lessee ' s Obligations : (i) Lessee will not use., occupy, or permit any portion of the Lease Premises to be used or occupied in violation of any Environmental Law. Lessee shall not manufacture or generate or store Hazardous Material on the Lease Premises unless specifically authorized under other terms of this Lease . (I* i) Lessee shall practice conservation of water, energy, and other natural resources , Lessee shall notify Lessor an d the appropriate overnmental emergency response agency, or agencies immediately in9 the event of any release or threatened release of any Hazardous Material. (2) Lessor may at any time during the Lease term require Lessee to conduct at its own expense and by a contractor approved Form5l . 16 (Rev. 10/ 13 ) Page 9 of 12 by Lessor an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Material generated, used, placed, disposed, stored, or transported on the Lease Premises during the term of the Lease. Lessee shall provide the results of the assessment or inspection to Lessor and the appropriate governmental response agency or agencies and shall further be responsible for removing or taking other appropriate remedial action regarding such Hazardous Material in accordance with applicable Environmental Law . (3 ) Environmental Indemnity. Lessee shall indemnify, defend, and hold Lessor and Lessor' s, officer, appointees, volunteers, employees, agents, successors and assigns fisee and harmless from and against all Damages that may at any time be imposed upon, fficuiTed by, or asserted or awarded against Lessor in connection with or arising from any Breach of Lessee' s obligations hereunder; or out of any violation by Lessee of any Environmental Law; or resulting in the imposition of any lien or claim for the recovery of any costs for environmental cleanup or other response costs relafing to the release or threatened release of Hazardous Materials on the Lease Premises during the Lessee ' s tenancy . This obligation shall include any prior leases between Lessor.. and Lessee and will continue through any periods Lessee is in holdover, unlawful detainer, or any subsequent month-to -month tenancies -h created by operation of law. Lessee ' s obligations hereunder will survive the expiration or sooner termination of this Lease . (4) Violation of this section shall constitute grounds for termination of the Lease. Lessor, shall notify Lessee when, in Lessor' s opin ion, Lessee has violated the prov is ions of this section , Lessee shall im mediately discontinue the conduct and respond within five (5) business days . Lessee shall take all measures necessary to remedy the condition. 14* QUITCLAIM Lessee, shall, upon the early termination of this Lease and at Lessor ' s request, execute and deliver to Lessor in a form provided by Lessor a good and sufficient release of all rights under this Lease. Should Lessee fail or refuse to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against Lessee of the termination of this Lease and all other claimants . 15. HOLDING-OVER (a) This Lease shall tenninate without further notice upon the expiration of the term of this Lease . Lessee shall have removed any Improvements and completed any restoration as required by Lessor prior to the expiration of this Lease, and shall surrender ppossessionof the Lease Premises . Any failure DY the Lessee to remove Improvements, restore the Lease Premises, and/or surrender' possession of the Lease Premises at the expiration or sooner termination of this Lease shall not constitute a renewal or extension and shall not give Lessee any rights in or to the Lease Premises or any pant thereof except as expressly provided in this Lease. Lessee shall be deemed in unlawful detainer of the Lease Premises and Lessor shall be entitled to all resulting legal remedies . (b) Lessor may, in i ts sole discretion, choose to accept Rent for the Lease Premises instead of immediately taking legal action to . recover possession of the Lease Premises . Any tenancy created by operation of law on Lessor' s acceptance of rent shall be deemed a onthb"to"wmonth tenancy regardless of what sum or sums - Lessee delivers to Lessor. Except as set forth below, any subsequent tenancy created in this manner shall be on the same terms, covenants, and conditions set forth in this Lease insofar as such terms, covenants, and conditions ca be applicable to a month-to-month tenancy (c) In recognition of the increased accounting, land management, and supervisory staff time required for month-to-month tenancies,, the rent for each month or any portion thereof during such .holdover period shall be amount equal to one hundred fifty percent ( 150 %) of one-twelfth ( lll2) of the total compensation for the most recent year pai d. In the event this Lease does not require monetary compensation, Lessor shall have the right to establish rent based on the fair market value of the Lease Premises . The month-to-month tenancy may be terminated by Lessee or Lessor upon thirty (30) calendar days ' prior written notice to the other. 16., ADDITIONAL PROVISIONS (a) Waiver ( 1 ) No term, covenant, or condition of this Lease and no omission, neglect, Default or Breach of any such term, covenant or condition shall be deemed to have been waived by Lessor's acceptance of a late or nonconforming performance or otherwise, unless such a waiver i* s expressly acknowledged by Lessor in writing. No delay or omissi on of Lessor to exercise any right or power arising from any omission, neglect, Default or Breach of term, covenant, or condition of this Lease shall be construed 41 as a waiver or any acquiescence therein. F (2) Any such waiver shall not be deemed to be a waiver of any other term., covenant or condition; of any successive Breaches of the same term, covenant, or condition; or of any other Default or Breach of any term, covenant or condition of this Lease. Form5l .. 16 (Rev . 10/ 13 ) Page 10 of 12 r (b) Time t Time is of the essence for this Lease, and each and all of its terms, covenants or conditions m which performance is a factor. (c) Notice All notices required to be given under this Lease shall be given in writing, sent by U. S . Mail with postage prepaid, to Lessor at the offices of the State Lands Commission and the Lessee at the address specified in this Lease. Lessee shall give 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 to be a consent to any subsequent occurrence of the same or any other transaction or event. (e) Changes This Lease may be terminated and its term, covenants, and conditions amended, revised, or supplemented only by mutual wri tten agreement of the parties . (f) Successors The terms, covenants, and conditions of this Lease shall extend to and be, binding upon and inure to the benefit of the heirs, successors, and assigns of the respective parties . (g) Joint and Several Obligation If more than one Lessee is a party to this Lease,, the obligations of the Lessees shall be joint and several. (h) Captions The section and paragraph captions used in this Lease are- for the convenience of the parties ,, The captions are not controlling and shall have no effect upon the construction or interpretation of this Lease . (i) Severability If any team, covenant or condition of this Lease is determined by a court of competent jurisdiction to be invalid or unenfore able, the remainder of this Lease shall not be affected thereby, and each term and provi e sion of this Lease shall remain valid and enforceable to the fullest extent permitted by law . (j) Representations Lessee agrees that no representah" ons have been made by Lessor or by any person or agent acting for Lessor. Lessor and Lessee agree and acknowledge that this document contains the entire agreement of the parties, that there are no verbal agreements, representations. ,P warranties or other - understandings affecting this Lease, and Lessor and Lessee, as a material part of the consideration of this Lease, waive all claims against the other for rescission, damages, or otherwise by reason of any alleged covenant, agreement or understanding not contained this Lease. (lc) Gender and Plurality In this Lease, the masculine gender includes both the. feminine and neuter, and the SM' gular number includes the plural whenever the context so requires. (1) Survival of Certain Covenants All covenants pertaining to bond, insurance, indemnification, restoration obligations, Breach, Default, and remedies shall survive the expiration or earlier termination of this Lease until Lessee has fulfilled all obligations to restore the Lease Premises as required by this Lease. (m) Counterparts This agTeement may be executed " any number of counterparts and by different parties in separate counterparts ,, Each counterpart when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement. (n) Delegation of Authority Lessor and Lessee acknowledge Lessor as defined herein includes the Commission Members, their alternates or designees, and the staff of the Commission. The ability of staff of the Commission to give consent, or take other discretionary actions described herein be aswill described in the then-current delegation of authority to Commission staff. All other powers are reserved to the Commission. Form51 , 16 (Rev. 10/ 13 ) Page 11 of 12 STATE OF CALIFORNIA - STATE LANDS COMMISSION LEASE NO .. PRC 494 5 .0 9 This Lease shall become effective only when approved by and executed on behalf of the State Lands . Commission of the State of Call" foinia and a duly executed copy has been delivered to Lessee . The submission of thi s Lease by Lessor, i ts agent, or representative for examination by Lessee does not constitute an option or offer to lease the Lease Premises upon the terms and conditions contained herein, or a reservati on of the Lease Premises in favor of Lessee . Lessee 's submission of an executed copy of th is Lease to Lessor shall constitate * an offer to Lessor to lease the Lease Premises on the terms and conditions set forth herein . d. IN WITNESS VVHERE? OF, the parties hereto have executed this Lease as of the date hereafter affixed . LESSEE : LESSOR: RUCKEEDONN R STATE OF IA+ . . DISTRICT STATE LANDS CO ..MM ISSION 0 By y ; Tony Lal 160ti' s' Title : Title ; President of the Board Date : Date : May 21 , 2014 This Lease was authorized by the ACKNOWLEDGEMENT CaliforniaState Lands Comm4 iss ion on . (Month Day Year) Form5l . 16 (Rev. 10/13 ) Page 12 of 12 CALIFORNIA ALLOPURPOS ACKNOWLEDGM NT State of California Cou nty of Nevada On , M. av 2- ] . , 2014 before me , Barbara H Cahill , Notary Public , Date Here Insert Name and Title of the Officer personally appeared Tony .. .. Lail' oti' s Name(s) of Signer(s) who proved to me on the basis of satisfactory , evidence to be the person (;s)" whose name(,$) is/ark subscribed to the within instrument and acknowledged to me that he/ahe/t eV executed the same in his/her/their` authorized capacl'ty(jes) , and that by h is/h�bei'r signatures) on the instrument the BARBARA H. CAHILL persoin (sj, or the entty upon behalf of which the Commissi"on 1909600 persons) acted , executed the instrument. s "�► ` Notary Public - California z Nevada County I certify under PENALTY OF PERJURY under the My Comm. Expires Nov 16�2014 laws of the State of California that the foregoing paragraph is true and correct . WITNESS my hand and official seal . df Signature : Place Notary Seal Above �I Signature of Notary Public OPTION. I L Though the information below is not required bylaw, it mayp rove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.. Descruipt'i' on of Attached Document Title or Type of Document .State of Ca . Lease No . PRC 4945 . 9 Document Date . M a� l.. .- I 2 0 1t 4 Number of Pages : 1 5 Signer(s) Other Than Named Above: :8 Capacity(ies) Claimed by Signers) Signer's Name : T 0 r, y r 2 1 i n t i ....s Signer's Name : El Corporate Officer — Title (s) : EJ Corporate Officer — Title(S) s 1W p V* El Individual El Individual El Partner — El Limited ❑ General Top of thumb here ❑ Partner — ❑ Limited ❑ General Top of thumb here ❑ Attorney in Fact El Attorney in Fact El Trustee El Trustee El Guardian or Conservator El Guardi"an or Conservator ❑ Other: El Other: Signer Is Representing : Trucke Signer Is Representing : Donner PUD i 0 2009 Natlonal 'Notary Association • National N otary.org • 1 -800-US NOTARY (1 -800-878-8827) Item #5907 EX KIBI A PRC 4945o9 L.AND D SCRIP ION F A parcel of submerged land situated itl the bed of Donner Like , ly ing ad.jacent toot 4 of raetlUna] Section 14 , To �vnsk�ip 17 North , Range 15 East.,, M . D &. B . M . . as shown on C31�zcial CTovemmenf o)xmsh1+ P Plat approved April q, 1967 . County of Nevada, State of Calif-iomia, more particular]);, descried as follows ,: janty� tgt � � i � � iv�ted emer�enc� � vater intal. e p� p� s l � ix � ad :All ��os� l �� ds undetl v n to that- Parcel 1 (COmnnan Area} of Condominiu nrr Map "UO�� N �,�Z VfLI'. AG,E UNIT 1 " as recorded Jan-uuaarD3;r 21 , 1981 in Book 7 of subdivisions at Page 4 i n official RrcOTdS. of said County , EXCEP INCi THEREFROM any Portian lying landward of the low eater mark of said Do-nner Lake . d Accompanyi �� plat is hCTCby made ��art of thr � dc -senption + END OF ID SCRIP ION Prepared 031' 11&?PPd, Ama1014 b4V the Califoxiiia StagLands Com�" missian Bouncla�y Urlit. LAj1�b (OD CL xPW. nu JW N ab 8487 Pale 1 of 2 r V41. i 4. + Ir * � i + VFW IL N 'I wpolqb4! 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SITE r0 J TS03112114r ...... . . . ... . F } y I — Agenda Item # 10 CONSENT To : Board of Directors From : Kathleen Neus Date : May 21 , 2014 S ubject : Consideration of a Renewal of a Lease on State Owned Lands 'I . WHY THIS MATTER IS BEFORE THE BOARD Long term leases are at the discretion of the Board . 2 . HISTORY The District acquired the Donner Lake Water company in 2001 :, )1111111s part of the IF acquisition , the District not only acquired the Donner Lake Water Company customers , but the entire water system infrastructure . Part of the infrastructure consisted of water rights to Donner Lake including the water intake at Donner Lake located near the 'L Donner Lake Village Condominium site . During the rehabilitation of the Donner Lake water system , the District installed a new 12 " water intake line adjacent to the old 8 " water intake line that had been used by the Donner Lake Water Company . The Iistrict has been paying the annual lease until the lease expired in September 20073t Since 2007 , the lease continued on a hold -over from month to month . In December 2012 , the California State Lands Commission asked the District to submit a plan for removal of the water intake . 3s, NEW INFORMATION Since the District received notification to remove the water intake , staff has been working with the California State Lands Commission to retain the water intake . It was necessary to find any and all documentation from when the intake was orig inally installed , documentation showing how the intake changed hands over the years and all permitting numbers for the 12 " water intake . In January 2014 , District staff submitted an application to the California State Lands sp Commi ssion with statements as to why the District would like to retain the intake . In April 2014 , the District received notification that the District would be allowed to keep the intake . The District asked for a 101--vYear lease ; but in light of the current drought ion the State , the California State Lands Commission granted the District a 20- year lease at their Regular Meeting on April 23 , 2014 . S i4;nce the District is a Public Agency , there is no cost for this new lease , and the It District will be reimbursed for processing fees . 4 . FISCAL IMPACT There is no fiscal impact associated with this ]'tem . 5 . RECOMMENDATION Authorize the Board President to sign the California State Lands Commission General Lease - Public Agency Use . ej Michael D . Holley General Manager .jj E K E DONN R TRUC .- E . . P bl ' Ut " I ' t u ic i . y Distric 11570 Donner Pass Road Truckee , Ca . 96161 Minute Order May 21 , 2014 MO 2014 =44 CONSIDERATION OF THE WA RD OF A CONTRACT FOR PROPERTY, LIABILITY AND WORKERS ' COMPENSATION INSURANCE This item concerns the annual renewal of the District's property, liability and workers' compensation insurance . D ;k irector Bender moved , and Director Ellis seconded , that the Board award contracts for the insurance programs as proposed for the period beginning June 1 , 2014 . ROLL CALL : all Directors aye , by voice vote .. SO MOVED Coverage Carrier 2014m2015 Premium Package ( Liability , Property , Auto , and I st Excess Layer) OneBeacon $ 1471739 nd 2 Excess Liability Layer AWAC $ 221900 Workers ' Compensation AIG $ 165 ) 378 Pollution (3 yr term ending June 1 , 2017) Steadfast 18 , 868 PE Earthquake — Primary Landmark $ 52 , 075 Earthquake — Excess Essex $ 28 ) 344 Crime Chubb $ 41543 Marsh Broker Fee Marsh $ 601000 Premium $499 , 847 Fiscal impact, — Sufficient funds for insurance renewal 11570 Donner Pass Road — Truckee , CA 96161 Phone 530 587-3896 Fax 530 587- 1189 . . ... ... .�)-,' _____ - __ - - '�:�tt7�'. -.A - - __ ___ - . - n 7--.. 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X % .�p7,, ., � ,� i -` .,$!� �, �- w --:,k,�� �3� 1 1 . � .1 " -"I I',' . \ %;1-:4 , � . 1-1: H..- .,-;Z% %v Eel�% ��,7�,,�.,,%� - 2 - Y, eill":,�'.�s.;"�-�'!.'�,-��..'9�L-Mm --1---�, ,.,.k - Page 1 of 1 ment 1 Truckee Donner Public Utility District Package Policy (General Liabil ity, Auto , Property and Excess Liability) June 1 , 2014 to 2015 % .. . .. _g % 4 .,. . . W : % L�11 %1% •fi % % %W 20 52 N M T 12013m,2'Q.1;: �4 %11A R 7. 1 7: . ... ...... . . . ... . . .. .. ......:.:.....:.: . . .... . . .. . .... . . . t7: .. . .. .. .. . . ... . . .... . '..::...:.... ..:...'..::. 7.77' J=4L • ne , .......... 1:R,.".-e .*pjn -�-Poii Ac . Carrier & A. M. Best Fri Atlantic Specialty Ins. Co. Atlantic Specialty Ins. Co. A XI A Xl .40 ----`7?7� -7'............. rvvr % ........ . % .77-.7 O.P:�.-. t"",% ----i:!C0V. -Y., % �4:%. . �.%:.V. :.% % `4 . • % .............. % % % e. :er--a:ge; - T!, ing Limit Build +::: $66378 728 $68 617000 Business Personal Property Limit $2$ $3; 150, 989 Business Income & Extra Expense $2500, 000 $22500, 000 Blanket Flood Limit $ 10000000 } :: ° $ 1 OtO001000 Special Theft Li mits $102000 :� $ 10, 000 uipment Breakdown $ 100, 000 : .. $ 1........ Miscellaneous Tools $522, 315 $5221 315 Computer Fraud $25? 000 $25000 Contractors Equipment - Sched u led $242,480 $e>A21480 000, 000 1180 Days New Acquired Locations - Buildings $2? 0003000 180 Days $21 NeWy Acquired Locations - Personal Property $1 , 000, 000 1180 Days $ 1 , 000, 0001180 Days.......... Key Sub limits#. :: :::r - Bui lding Ordinance Combined Coverages - Per Bldg $5001000 $500, 000 Poll utant Cleanup Removal - Per Bldg $ 100000 °: : $ 1007000 Deb ris Rem oval - Per Bldg $250000 ::?: $250, 000 Clai ms Expense $50, 000 $501000 Reward $50000 }r $501000 Contractual Penalties $50, 000 $501000 Automatic Seasonal I ncrease $ 100000 $ 100, 000 Brands and Labels $50, 000 $50, 000 Leasehold Interest $25, 000 ......... $25, 000 Business Income or Extra Expense Utility $25000 : 1r° $25, 000 Dependent Properties $ 100000 $ 100, 000 Lessor's Lease Cancellation $25 , 000 rl $25000 Lessors Tenant Relocation Expense $25000 $25; 000 Temporary Reloaction of Property During Renovation $ 100 000 90 Days $1002000 190 Days or Remodel i ng ::: Bucket Limits: : :ti $5DO OOD $500000 - Personal Effects of Officers, Partners & Emps r: ::' : - Valuable Information Property :: - Accounts Receivable - Outdoor Property - Emergency Response Service Charge :} : Hardware and Media rr:.: Tenants Improvements and ft r nts :: : :r:: Electronic Data Damage {:} Fine Arts - Per Item $ 10000 $ 10000 Property in Transit $50 , 000 $50) 000 Property at Other Locations $50tOOO : :� : ............ $501000 RIS Employee Theft $0 Deductible $251000 $25, 000 Deductibles .........N .......... - Property and All Other $25, 000 $25000 $25000 - Flood $25, 000 : ::: Page 1 of 1 Aftachment 1 ie.ra: 0V Bodily Injury and Property Damage Liab,1144 Limit $ 1 000000 $ 1 , 000000 (Coverage A) - Each Occurrence Personal & Advertising InJury Limit (Coverage B) $ 1 , 0001000 $ 1 , 0001000 .......... General Aggregate Limit $5000000 $5000000 Products/Completed Operations Aggregate Limit $5) 0003000 $5 , 000, 000 "it Damage To Prem*ses Rented To You Lim $ 1 000, 000 ...... $ 1 000000 Each Occurrence Failure to Supply Limit - Each Occurrence $ 11000, 000 $ 11000) 000 Medical Expense Limit Not Covered Not Covered Deductible (Coverage A & B) $251000 $25 � 000 Each Occurrence or Offense 7-7 Y% Auto Ulability - An Auto . ...... - Liability Combined Single Limit $ 1 000000 $ 1 , 0003000 - Med Pay Limit Excluded Excluded Hired Auto Physical Damage - Hired/NonOwned - Comprehensive Limit $ 1001000 $ 1003000 - Collision Limit $ 1001000 $ 100000 .Uninsured Motorist Bodily Iniva - Scheduled Limit $ 1 0005000 $ 12000000 Deductible (including Hired Auto Physical Damage) $25000 $25000 Rental Reimbursement Excluded Excluded 1% b SSIC 7 e7 R :: i. ... T. E Public Officials Errors & Omissions .......... Limit - Each Wrongful Act $ 1 D00; 000 $ 1 , 000000 Limit - Aggregate $5 000: 000 $5 , 0003000 Public Officials Employ ent Practices Limit - Each Offense $ 1 : 0003000 $ 1 , 000, 000 Limit - Aggregate $5, 000, 000 $5 , 000, 000 Public Officials Employee Benefits Umft - Each Offense $ 1 000000 $ 130001000 Limit - Aggregate $5: 0003000 $5, 0001000 Deductible (Each Coverage) $25000 $25, 000 Retro Date (Each Coverage) 51112002 511 /2002 %7� E ss, .1 -Jao ce Each Claim $ 105000 $ 000 Aggregate $ 10000 , 000 $ 101000 $ ODO 7 4:77� --7-5 C ......... . at6 - Z.....f Any One Occurrence Limit With $ 1 000 Deducfible $25, 000 $25000 Annual Aggregate $25, 000 $25000 4F Annual Aggregate Sublimits,, Legal Services $251000 $25, 000 Public Relations $25, 000 $251000 Third Party Data Breach $25, 000 $26000 Data Extortion Ransom Coverage $252000 $257000 Data Extortion Reward Coverage $25, 000 $25tOOO Deductible $ 1 , 000 $ 12000 ft UA P e, M 4 r . . ....... . n Optional TRIA Premium Rejected $2� 840 MP 41P Change in PremIum from Expinng: 344-565% Page 1 of I Attachment 1 ff Truckee Donner Pubi 'loc Utullolty D 'Igstrict Excess L 'I' a b '1 [ 'I ty June 1 , 2014 to 2015 . . - - . .:-�'. !.,.'.% -.-- ''. - . - . 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Subsidiaries include any not-fori-profit entities of which Truckee Donner Public Utility District owns or controls , directly or through one or more subsidiaries the present right to elect or appoint more than fifty percent (50 %) of such entity T s directors , trustees or managers. Please note that coverage is not extended to any affiliate entities or any other entities not under the control of Truckee Donner Public Utilily. District, ----- -- - . - - C E G . Ix 1 ' .� � ' "" " ......... 7-1777.- -�--w� �'.,,,.a% I 0 R - � "' 1 ��7�-p -�'%W� ' �'�;' `0%� ' " � ? " -- "' 4 R .0' ""'. ..R%'Z��R�'�%'---.' P'�""11�1'ti -IR '" I 5 -\ "� %'/:�'% '9 1 -� �' ' � i .. 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Optional TRIA Included i-:-'-';:i'�:":-::;.';i.1 .-.-.-.-.'�--:.'.' 1 % Included i n Premium ::-.-.:.-.'..::�-.-.-1 :::':'.:%-'-'.-.::-�:.: P a !-�:];:!:-'��'�:-��!:�-i �:�-:��-'?.��:-ii.:.:; �..'.�......??::�%4 Change in Premium from tring: iii�!-.':'.�.:-.'-.'-:-" e ��. ;'%�:"':4-:'�-::!.'�. 3X00% MZMOZQMM�MMMT=����� a Covered Locations ,, 1 ) 11570 Donner Pass Road and associated substation , Truckee, CA 2) 15670 Donner Pass Road , Truckee , CA (SOLD) 3) 14530 Glenshire Drive, Truckee , CA / Maintenance Shop (SOLD) 4) Truckee substation , SE corner of Keiser Avenue and Jibboom Street, Truckee, CA 5) Donner Lake substation , south side of Donner Lake Road between Interstate 80 and Cedar Point Drive , Truckee , CA 6) Tahoe Donner substation , east of Ski Slope Way between Bermgarten and Northwoods Boulevards , Truckee, CA 0 M 7) Martis Valley substation , north of Riverview Drive and south of Truckee River, Truckee , CA P 11 ( I ) '' ''" "' " . -1, 0 V.---E R.-A' y %/ �' � "'k '- . ` - , � I - � .� �11 1111 '-.',I\��?1; � � ; 6 11 14 W r, 11 (3--- 1 � 111". I I Exp Page 1 of 1 Attachment 1 X Truckee Donner Public Utility District June 1 2014 to 2015 ivi i es at Binding ............ OVE'RA0 3 41 � r s -1 �B5 77 %RN - - 1 7 k. 7, . 7 7 S U N w � R0S1 t UINA � j� a - i' • k. . BA% I 4 %%E wL - . % . I `M N ; rr VmtS " ' � • .Mj • �ti ..% . .. Packsgen. GL, Auto, Excess 1 Completed and signed TRIA form . Liabi lity, Professional & Property Excess Liability 1 . Receipt of complete copies of underlying policy( ies) when available . 2 . Receipt of completed and signed TRIA Disclosure 0 Statement at binding . 3 . Receipt of underlying binder(s) at binding . Work Co p 1 . Favorable Loss Control Survey and prompt compl iance with recommendations . %1z DIC None for bindi ng . Refer to carrier quote for Special Cond itions ,, C ri e If Travelers quote chosen , subject to acceptance of competitor's application form . Pollution Liability 1 . Review and confirm addresses of property locations . 2 -w Provide past operat ions descriptions for locations 2 & 3 : Loc 2 15670 Donner Pass Rd . (Sold Location) , and c3 - 1 ire Dr, ( Maintenance Shop) . 3 . Copies of any Environmental Reports , Assessments or N Vs F i Violations . If there are none , written confirmation is acceptable . Attach ment 1 Truckee Donner Public Utility District Insurance Proposal June 1 , 2014 to 2015 Please Note : A . M. Best ratings of the insurers are provided for information purposes only and are based upon inormatonfi with respect to such ratings available to Marsh as of the date of this Proposal Marsh will not, and will have no responsibility or obligation to, inform -V yo u or a ny o th er p e rs on (s) relying up on th is in form a tio n of a ny ch a nges in s u ch B es t ra tings o c curring a fter s u ch da te. Ma rs h will have no liability with respect to the solvency or future ability to pay claims of any of the insurance companies which have issued the insurance policies referenced herein. This document and any recommendations , analysis, or advice provided by Marsh (collectively, the " Marsh Analysis" ) are intended solely for the entity identified as the recipient herein ("you " ) . This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers , without Marsh 's prior written consent. Any statements concerning actuarial , tax, accounting , or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting , tax, or legal advice, for which you should consult your own professional advisors. "Any modeling , analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions , conditions, information , or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh , Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh . Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or reinsurers . Marsh makes no assurances regarding the availability , cost, or terms of insurance coverage. Page I of 1