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19-0920_VALENZUELA FAMILY TRUST_Acknowledgement of Trust Asset ACKNOWLEDGEMENT OF TRUST\ASSET THE VALENZUELA FAMILY TRUST dated February 21, 2004 The undersigned is the Surviving Settlor of the above Trust, and states the following: 1. He is the Surviving Settlor and Trustee of the above Trust. 2. On November 13, 2012, his deceased wife, Betty Valenzuela, executed a Lease Agreement as Lessee, under the fictitious name of Mission Trails Stables. 3. Under Paragraph A of Article Three of the Trust, Mission Trails Stables is and has been an asset of the Trust and, therefore, the Lease is an asset of the-Trust, as well. 4. It is Surviving Settlor's and Trustee's intention that for all purposes, the Lease be treated as a trust asset of the Trust and that the City of San Juan Capistrano may deal with the undersigned, as Trustee of that Trust in all matters referring to the Lease. Dated: Ck 1 c1 SURVIVING SETTLOR e,( •� PAUL N. VALENZUELA TRUSTEE: . PAUL N. VALENZUELA 61147.00217\32316817.1 ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA , ) i ) COUNTY OF , o c c"W ) O4\Pt Daj I , before me, C , Notary Public, personally appeare l PAUL NALENZUELA,-who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)tre subscr' ed to the within instrument and acknowledged to me that le he/they executed the same in /her/their authorized capacity(ies), and that by (=CD/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. \c' ,,o' V.CARD! It6. Notary Public-California z . Orange County • Commission#2270622 (Seal) Signature of Notary My Comm.Expires Jan 8,2023 61147.00217\32316817.1 2 ACKNOWLEDGEMENT The City of San Juan Capistrano, the Lessor of the property of the Mission Trails Stable Lease acknowledges receipt of the above document and agrees to treat Mission Trails Stable as an asset of The Valenzuela Family Trust dated February 21, 2004 for all purposes, both retroactively and in the future. Dated: /0/(9-d--// , City Manager 61147.00217\32316817.1 3 LEASE AGREEMENT THIS AGREEMENT is made and, entered into this 13th day of November, 2012, by and between the City of San Juan Capistrano, hereinafter referred to as "Lessor," and Mission Trails Stables, hereinafter referred to as "Lessee." WITNESSETH: WHEREAS, LESSOR owns certain real property it desires to lease to LESSEE for equestrian purposes; and, WHEREAS, this property is within and part of LESSOR's C. Russell Cook Park. NOW, THEREFORE, LESSOR AND LESSEE mutually agree as follows: • SECTION 1. LEASE OF REAL PROPERTY LESSEE LESSOR hereby leases to LESSEE that certain real property more particularly described as Lot A of Tract 8485, as recorded in Book 426, pages 41 to 43 of the Miscellaneous Maps of the County Recorder, County of Orange, State of California. This real property shall be used for and improved' upon only for equestrian purposes as set forth in the C. Russell Cook Park'Stable Improvement Plan, dated October 26, 1983, on file in the Engineering Division of LESSOR. SECTION 2. MONTHLY LEASE PAYMENTS LESSEE shall pay to LESSOR a monthly lease payment of three thousand nine hundred and ninety four dollars and ninety-eight cents ($3,994.98) from the effective date of this agreement through November 30, 2022. Each July 1st (beginning July 1, 2013), the monthly lease payment will be increased based on the Consumer Price Index (CPI) —All Urban Consumers for Los Angeles-Riverside-Orange County, CA area from March to March. This payment is due and (payable on the tenth (10th) day of each month. Monthly lease payments are deemed late if not received within ten (10) calendar days thereafter. 1 SECTION 3. MAINTENANCE AND OPERATIONS (a) LESSEE shall provide an updated Emergency Evacuation Plan to the City of San Juan Capistrano Emergency Services Coordinator for the protection and safety of persons and animals on the stable premises in the event of a multi-hazard emergency (to include, but not limited to, flood, fire, and hazardous material incidents). (b) LESSEE shall conduct its operations in such a manner as to not disturb surrounding residents and/or activities. Accordingly, all group activities on said land shall begin no earlier than 7:30 a.m. and terminate no later than 10:00 p.m.; and all activities using loudspeaker systems or generating unusual amounts of noise shall terminate no later than sundown. . (c) LESSEE agrees to maintain the land and all improvements constructed thereon in good order and repair, and to keep said premises in neat, clean, orderly, safe, and sanitary condition, and in compliance with the City of San Juan Capistrano established stable ordinance standards as set forth in Municipal code Section 9-3.515. This includes, but is not limited to, the prevention of accumulation of any refuse or waste materials which might constitute a fire hazard or a public or private nuisance. (d) LESSEE agrees to maintain the signage and landscaping at the entrances to the property to acceptable standards and shall not allow signage to fall into disrepair or landscaping to perish. (e) LESSEE shall not allow the storage of vehicles and equipment on the premises which are not directly related to the use of the stables. (f) LESSEE shall promulgate and enforce such rules and regulations as may be required to insure proper control of animals and the protection of the health, safety, and welfare of its patrons, animals, and the general public. (g) LESSEE agrees to comply with all provisions set forth in Municipal Code Section 9-3.515 Equestrian Standards. Most importantly, that all manure/storage container bins be placed on a cement pad, ' covered, and surrounded by a berm so that drainage into the nearby waterways does not occur. This compliance must occur within three (3) months of the date of this lease and receiv,e final City approval. 2 (h) LESSEE, tenants, subtenants, agents, employees and contractors shall conduct operations under this lease as to assure that pollutants (as defined in the City's water quality ordinance, Title 8, Chapter 14 of the Municipal Code) do not enter municipal storm drain systems or San Juan Creek. Such systems are comprised,of, but are not limited to, curbs and gutters that are part of the street or alley-ways ("Stormwater Drainage System"), and to ensure that pollutants do not directly impact "Receiving Waters" ,(as used herein, Receiving Waters include, but are not limited to, rivers, creeks, streams, estuaries, lakes, harbors, bays and oceans). To assure compliance with the, Stormwater Permit and Water Quality Ordinance, the City of San Juan Capistrano developed a Local Implementation Plan (LIP) that contains Best Management Practices (BMP's) that parties using properties with the City must adhere to. As used herein, a BMP is defined as a technique, measure, or structural control that is used for a given set of conditions to manage the quantity and improve the quality of stormwater runoff in a cost effective manner. A copy of the City of San Juan Capistrano's BMP's is provided with this lease agreement (Exhibit A). These BMP's are found on the City of San Juan Capistrano's website under- San Juan Capistrano Stormwater BMP's and contain pollution prevention and source control techniques to eliminate non-stormwater discharges and minimize the impact of, pollutants on stormwater runoff. (i) LESSEE may propose alternative BMP's that meet or_exceed the pollution prevention performance of the BMP Fact Sheets. Any such alternative BMP's shall be submitted to the City of San Juan Capistrano's NPDES coordinator who will act as the City's representative for review and approval prior to implementation. (j) LESSOR's representative may enter the premises and/or review LESSEE's records at any time to assure that activities conducted on the premises comply with the requirements of this section. (k) LESSEE may be required to implement a self-evaluation program to demonstrate compliance with the requirements of this section. (I) LESSEE shall secure applicable City permits and approvals prior to , any construction grading and site improvements. SECTION 4. INSURANCE LESSEE shall maintain insurance acceptable to LESSOR.in full force and effect throughoutthe terms of this lease. The policy or policies of insurance shall name LESSOR as an additional, insured and shall, as a minimum, provide the following forms of coverage in the amounts specified: \ 3 Commercial General Liability: One million dollars ($1,000,000.00) of single limit coverage. Insurance shall be in force the day of the term of this lease. Each policy of insurance shall contain the following clause: "IT IS AGREED THAT THIS POLICY SHALL NOT BE CANCELLED NOR THE COVERAGE REDUCED, UNTIL THIRTY • (30) DAYS AFTER THE CITY OF SAN JUAN CAPISTRANO SHALL HAVE WRITTEN NOTICE OF SUCH CANCELLATION OR REDUCTION. THE NOTICE SHALL BE SENT CERTIFIED OR REGISTERED MAIL AND SHALL BE DEEMED EFFECTIVE THE DATE DELIVERED, AS EVIDENCED BY PROPERLY VALIDATED RETURN RECEIPT." "THE INCLUSION HEREIN OF ANY PERSON OR ENTITY AS AN INSURED SHALL NOT AFFECT ANY RIGHT SUCH PERSON OR ENTITY WOULD HAVE AS A CLAIMANT HEREUNDER IF NOT SO INCLUDED." LESSEE shall provide an endorsement to the City establishing that the City has been legally added as an additional insured to the policy required under this agreement. LESSEE agrees to deposit with LESSOR, on or before the times at which they are required to be in effect, two copies each of the policy or policies or certificates of insurance necessary to satisfy the insurance provisions of this Lease and to keep such insurance in effect and the policy or policies therefore on deposit with LESSOR during the entire term of this Lease. SECTION 5. INDEMNIFICATION LESSEE shall defend, indemnify and save harmless LESSOR, its officers, agents, and employees, from and against any and all claims, demands, loss, or . liability of any kind or nature which LESSOR, its officers, agents, and employees may sustain or incur or which may be imposed upon them or any of them for injury to or death of persons, or damage to property as a result of, arising out of, or in any manner connected with this Lease or with occupancy and use of the land by LESSEE, its officers, agents, employees, patrons, or " visitors. SECTION 6. STABLE IMPROVEMENTS At the termination of said lease, LESSEE shall remove all stable improvements installed by LESSEE from said land within thirty (30) days; all improvements on said land after that date shall become the" property of LESSOR. LESSEE understands and agrees LESSOR shall have no financial 4 . obligation to LESSEE for improvements installed by LESSEE unless the LESSOR agrees upon, in writing, to purchase such existing stable improvements. All stable improvements on said land, funded by the LESSOR will remain property of the LESSOR at the termination of said Lease. The LESSOR is not responsible to provide the LESSEE any relocation benefits or assistance upon termination of this Lease. SECTION 7. RESERVATIONS TO LESSOR Theland is accepted by LESSEE subject to any and all existing easements and encumbrances. LESSOR reserves the right to install, lay, construct, maintain, and repair utilities and appurtenances necessary or convenient in connection therewith, in, over, upon, through, across, and along the land or any part thereof. LESSOR also reserves the right to grant franchises,, easements, right-of-way, and permits in, over, upon, through, across, and along any and all portions of the land. No rights reserved by LESSOR in this clause shall be so exercised as to interfere unreasonably with LESSEE's operations hereunder. LESSOR agrees that rights granted to third parties by reason of this clause shall contain provisions that the surface of this land shall be restored as nearly as practicable to its original condition upon the completion of any construction. SECTION 8. TERM The term of this lease shall be for a period of ten (10) years from the date of this agreement. This Lease agreement may be terminated by either party on ninety (90) days written notice. SECTION 9. DEFAULT IN TERMS OF LEASE BY LESSEE Except for monthly lease payments as required by Section 2 of this Lease, should LESSEE default in the performance of any covenant, condition, or agreement contained in this Lease, and such default is not corrected within forty five (45) days after LESSEE receives written notice of default from LESSOR, LESSOR may terminate this Lease. SECTION 10. TAXES/LICENSING/FEES • In the event that the County Assessor assesses any possessory interest taxes on this leased real property, LESSEE shall be solely responsible for the payment of said taxes and any licensing and permit fees that are to be paid to local, county, state or federal government. 5 . SECTION 11. PARTIAL INVALIDITY If any term, covenant, condition or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. SECTION 12.. NOTICES All notices pursuant to this Lease shall be addressed as set forth below or as either party may hereafter designate by written notice and shall be sent through the United States mail. LESSOR: City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 LESSEE: Mission Trails Stables do Betty Valenzuela 26501 Calle San Francisco San Juan Capistrano, CA 92675 SECTION 13. ATTORNEY'S FEES If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first hereinabove written. (SIGNATURE PAGE FOLLOWS) 6 CITY OF SAN JUAN CAPISTRANO 'ty Larry K'... er, Mayor r ATTES �` MISSION TRAILS STABLES &'; 46./0 tzgge_J M� or i� City Cle etty V%al6nzuela APPROVED AS TO FORM: A BY: <tara.J .! Hans Van Lig en, Cit Attorney 7