1998-0602_SOUTH COAST FARMS_License Agreement (2)0 i
LICENSE AGREEMENT
This License Agreement is made thiw?'44,day of June, 1998 (the "Agreement") by and
between the City of San Juan Capistrano, a public body, corporate and politic, and the San Juan
Capistrano Community Redevelopment Agency, a public body, corporate and politic (known jointly
hereinafter as the "Licensor"), and South Coast Farms (hereinafter "Licensee").
RECITALS:
WHEREAS, Licensor is the owner of a 28.225 acre farm in the City of San Juan Capistrano,
California, which property was acquired to be maintained as open -space within the City; and
WHEREAS, Licensor desires to conduct farming operations on the property; and
WHEREAS, Licensee has farming expertise and experience and desires to manage the
maintenance and operations of all agricultural activities on the property;
NOW, THEREFORE, Licensor and Licensee do hereby mutually agree as follows:
Section 1. Grant of License/Term.
Licensor hereby grants to Licensee a license to manage the maintenance and operations of all
agricultural activities conducted on certain property located in the City of San Juan Capistrano,
California, as depicted on the site plan attached hereto as Exhibit "A", and incorporated herein by
reference (the "Property"). Licensee shall provide the expertise, supervision and management of the
agricultural operations of the Property, and shall own all crops produced on the Property. In
exchange for use of this Property, Licensee shall compensate Licensor by way of an annual license
payment of $44,000 to be paid in quarterly amounts. The parties hereto agree that this Agreement
is intended to be an operational agreement for use of the Property and does not represent a loan to
Licensee. Title to the Property is not, therefore, and will not be, transferred to Licensee by operation
of this Agreement.
The term of this license shall be effective from the date of execution through June 30, 1999.
The Agreement may be terminated by any party at any time during its term, provided that five (5)
calendar days' advance written notice is given to the other parties. In the event that such notice is
given during the term of this Agreement by Licensor, Licensee shall be allowed reasonable
accommodation to harvest any crop in the field, subject to the conditions of this Agreement.
Section 2. Compensation.
Licensor shall receive the following compensation from Licensee:
Payment to Licensor shall be made in quarterly increments of Eleven Thousand Dollars
($11,000.00), payable within thirty (30) days of the close of each quarter.
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SectiQn 3. Nature of Use Permitted Under the Agreement
(a) Operation of Farm. Licensee shall be responsible for the supervision and
management of every aspect of running a farming operation on the Property in a businesslike manner.
Such supervision and management shall include, but not be limited to:
(i) the employment, supervision and direction of all employees engaged
in the fanning operation;
(ii) providing for the maintenance of all equipment and supervising its use
in a safe and prudent manner;
(iii) soil preparation, planting, fertilizing, irrigating, pesticide and herbicide
applications, and the harvesting of all crops;
(iv) the marketing and sale of crops;
(v) maintenance of records and accounting for all revenues and
expenditures, including employee payroll and related records;
(vi) the purchasing of all seeds, plants, fertilizers, herbicides, pesticides,
and other materials and supplies, such as boxes and packaging
materials, required for marketing and sale of the crops;
(vii) management and maintenance of all on-site improvements, including
temporary housing, for Licensee's employees.
Licensee warrants that all services will be performed in a competent and satisfactory
manner, consistent with the standards of the industry and in accordance with applicable Federal, State
and local regulations.
(b) Maintenance of Property and Equipment. Licensee agrees to accept the
Property and equipment in present condition on the date of execution of this Agreement. Specified
buildings and farm equipment shall be provided to Licensee by Licensor, for Licensee's use in farming
operations. Licensee shall maintain, at Licensee's expense, the Property, including all structures
except the historical farmhouse residence (Congdon House)* and all equipment owned and furnished
by Licensor that is used in farming operations, in a reasonable state of repair and working order. All
other equipment to be used in farming operations shall be furnished by Licensee at Licensee's expense.
Equipment owned and furnished by Licensor shall not be removed from the Property without the
consent of Licensor, except for temporary repairs, after which it shall be immediately returned. An
inventory of all equipment owned by Licensor shall be provided to Licensee. Licensee and the
authorized representatives of Licensor shall inspect all equipment within sixty (60) days of execution
of this Agreement and mutually agree upon the condition of the equipment.
*Use, maintenance and control of the Congdon House is expressly excluded from this
Agreement. All use, maintenance and control of the Congdon House will be the responsibility of the
c:\wpwin60\wpl \fa \soco .98 -2- 05/13/98
Licensor and is subject to change at the discretion of Licensor. This Agreement shall include
reservation of a right to parking in that area defined as the width of the Congdon Residence (35'),
from the east wall of the structure to the eastern most boundary parallel to Alipaz Street, as well as
a right to access from the existing drive entrance on Alipaz Street to the south of the Congdon
House. Such right of use shall not exclude access by the Licensee.
(c) Marketing and Sale of Crops. Licensee shall be responsible for the marketing
and sale of crops produced on the Property. Licensor and Licensee agree that crops will be sold retail
at the cash stand located on the Property and to commercial produce wholesalers and distributors.
Licensee shall provide a schedule to Licensor of proposed days and hours of operation of the on-site
retail location.
(d) Water and Utilities. Licensee agrees to pay all costs for public utilities installed
or used during the term of the Agreement for farming operation purposes. Licensee agrees to use
water provided by the local agencies in the farm operation, and to pay for water usage, including the
charges for new hookups, maintenance and repairs related to the fanning operation.
Licensee agrees to work cooperatively with Licensor to coordinate watering schedules
between the Property and the City Sports Park. Water costs for the City Sports Park will be the
responsibility of Licensor.
(e) Condition of Property. Licensee accepts the Property in its present condition
upon execution of this Agreement. Licensor makes no warranty of the suitability of the Property for
growing crops. Licensee agrees, at Licensee's expense, to use reasonable care to control all weeds,
noxious or otherwise, growing on the Property, including those growing in drainage ditches.
Licensee shall furnish all labor and materials required to eliminate and otherwise reasonably control
all rodents, insects and other pests on the property. Licensee agrees to farm the property in a manner
reasonably calculated to protect the soil and maintain the fertility through the use of fertilizers and
chemicals in accordance with good farming practices as generally followed and recognized in Orange
County, California. Licensee agrees, at Licensee's expense, to keep fences, ditches and borders of
the Property in good condition and repair at all times, reasonable wear and tear excepted. The duly
authorized representative of Licensor may enter upon the Property and all buildings thereon, or any
portion thereof, at a reasonable time for the purposes of inspection.
(f) Residential Use of Property. Licensee agrees that no persons or employees
will be allowed to reside upon the Property except for the use of existing temporary farm labor
residences during irrigation periods only. Licensee shall obtain all necessary licenses, permits and
approvals, and shall abide by all state, local and national laws for such temporary residential use.
Section 4. Insurance and Indemnity.
(a) Insurance. Licensee shall maintain comprehensive general liability, property
damage, and fire insurance with a reputable insurance company in amounts of not less than
$1,000,000.00 combined single limit, or other format acceptable to the Office of the City Attorney.
6wpwin60lwpdo \ra=\socaW.98 -3- 05113/98
0 9
(b) Indemnity. Licensee shall defend, indemnify and hold harmless Licensor, and
Licensoe's respective officers, employees and agents from and against any and all actions, claims,
demands, losses, costs, expenses, including legal costs and attorneys fees, for death or injury to
persons or damage to the Property, or for the pollution thereof and cleanup costs, arising out of or
related to Licensee's performance under this Agreement, except to the extent of such loss as may be
caused by Licensor's own negligence, including that of their respective officers and employees.
Licensor shall not be held accountable for any preexisting soil contamination including those identified
in the report dated January 28, 1990, prepared by Chem Risk, and the report dated December 18,
1990, prepared by South Coast Geological Services, Inc.
Section 5. No Assignments.
Licensee may not assign its rights under this Agreement to any third party.
Section 6. Notices.
Any notice required to be given under this Agreement shall be in writing and shall be deemed
to have been duly given and received if and when personally served, or forty-eight (48) hours after
being deposited in the United States mail, first class, postage prepaid, addressed to the intended party
at:
Licensor:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano CA 92675
Attention: Cindy Pendleton
Licensee:
George Kibby
South Coast Farms
2268 E. Sandalwood Place
Anaheim, CA 92806
San Juan Capistrano
Community Redevelopment Agency
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attention: Cindy Pendleton
Dan Manassero
South Coast Farms
2268 E. Sandalwood Place
Anaheim, CA 92806
Section 7. Attomeys' Fees. If either party commences an action against the other party
arising out of or in connection with this Agreement, the prevailing party shall be entitled to have and
recover from the losing party reasonable attomey's fees and costs of suit.
Section 8. Entire Agreement.
This Agreement constitutes the entire understanding and agreement between the Parties and
supersedes all previous negotiations between them pertaining to the subject matter thereof.
cAwpwinMwpdoc \f\soco .98 -4- 03/13/98
IN WITNESS WHEREOF, the Licensor and Licensee have caused this Agreement to be
executed on the date and year first written above.
A ST:
Cheryl Johnso Cit)(,Clerk
APPROVED AS TO FORM:
John R. Shaw, City Attorney
N
EST:
Cheryl John , AijWncy Secretary
APPROVED AS TO RM:
John R. Shal Agency Counsel
CITY OF SAN JUAN CAPISTRANO, a public
body corpo an politic
B /
JG LJcSnes, Mayor
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, a public
body corporate and politic
By: tkLd-t1- 144.A6.1
Wyatt H t, Chairman
SOUTH COAST FARMS
ciwpwinWwpdaTU \vocoest.98 -5- 05/13/98
LICENSE AGREEMENT
LEGEND
A. Agricultural Preserve
Al
Farmers Market/Produce Storage
A2
Roadside Produce Stand w/Parking
A3
Internal Farm Roads
A4
Equipment/Machinery Storage
A5
Farm Labor Residence
A6
Agriculture to Remain
B. Historical Preservation
B1 Joel Congdon Residence
B2 Historical Farm Equipment Display Area
A
A6
A3
CAMINO DEL AVION
Exhibit A
A ORA CERTIFICAW OF
LIABILITY
DATE
INSU NC
OUTHY3 06/16/98
PRODUCER
ISU Willingham Ins. Svcs. Inc.
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
License #OC13465
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
2469 Pomona Rincon Road #101
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Corona CA 91720
COMPANIES AFFORDING COVERAGE
COMPANY
Dale Willingham
PHone No. 909-278-1388 Fa.No.909-278-0664
A CalFarm Insurance Company
INSURED
COMPANY
B CalComp Insurance Company
South Coast Farms Inc.
COMPANY
George Kibby & Dan Manassero
C
2268 Sandlewood
Anaheim CA 92806
COMPANY
D
COVERAGES
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW
HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBEO HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO
LTR
TYPE OF INSURANCE POLICY NUMBER
POLICY EFFECTIVE
DATE IMM/DD/YY)
POLICY EXPIRATION
DATE (MM/DD/YY)
LIMITS
GENERAL LIABILITY
GENERAL AGGREGATE $1000000
PRODUCTS-COMP/OPAGG $
A
X COMMERCIAL GENERAL LIABILITY
GL 4031063
06/25/98
06/25/99
CLAIMS MADE ❑X OCCUR
PERSONAL B ADV INJURY $1000000
EACH OCCURRENCE 51000000
OWNER'S& CONTRACTOR'S PROT
FIRE DAMAGE (Any one fire) $50000
MED EXP (Any one Person) $ 1000
A
AUTOMOBILE
LIABILITY
ANY AUTO
BA 4029384
06/25/98
06/25/99
COMBINED SINGLE LIMIT %500,000
BODILY INJURY $
(Per person)
X
ALL OWNED AUTOS
SCHEDULED AUTOS
BODILY INJURY $
IPe, eccId0nk)
HIRED AUTOS
NON-OWNED AUTOS
k
PROPERTY DAMAGE $
GARAGE LIABILITY
AUTO ONLY -EA ACCIDENT $
OTHER THAN AUTO ONLY:
ANY AUTO
EACH ACCIDENT $
AGGREGATE S
EXCESS LIABILITY
EACH OCCURRENCE $
AGGREGATE $
UMBRELLA FORM
$
OTHER THAN UMBRELLA FORM
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
TORY LIMITS OER
EL EACH ACCIDENT $ 1,009, 000
B
THE PROPRIETOR/ INCL
PARTNERS/EXECUTIVE
OFFICERS ARE: X EXCL
G982171939
02/01/98
02/01/99
ELDISEASE-POLICYLIMIT $1,000,000
EL DISEASE -EA EMPLOYEE $1,000,000
OTHER
A
Farmowners Liab.
PFO 4029383
06/25/98
06/25/99
Occurence 1,000,000
Products 1,000,000
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS
The General Liability & Farmowners Liability is primary/non-contributory -
see attachment for additional insured wording
CERTIFICATE HOLDER
CANCELLATION
SANJUAl
SHOULD ANY OF E ABOVE DESCRIBED POLICIES BE CANCELLED EFORETHE
EXPIRATION ATE TH EDF, THE I$BIIINO�COMP V WILL END OR TO MAIL
City of San Juan Capistrano
Community Redevelopment Agency
ATTN: Nancy Barney
30 DA, S ITTE NOTICO THE CE�TFI TE HOLDERN MED TO TNEL FT,
BUT FAI O'M SUC OTICE SHAL IMP SE NO OBLIG TION OR LIA ITY
32400 Paseo Adelanto
OF YKIND UPON E PANV, ITS AG OR REPRES TATI
AUTHO IZED REPRESE ATI
San Juan Capistrano CA 92675
Dale Willing 1 -
ACORD 25S (7195)
"' AA�CORP ION 1988
PAGE 2
NOTEPAD. INSURED'S NAR*South Coast Farms Inc. OD SyUTH-3 DATE 06/16/98
The City & Community Redevelopment Agency, its elected or appointed
officers, officials, employees and volunteers are included as additional
insured with regards to damages & defense of claims arising from (A)
Activities performed by or on behalf of the named insured (H) Products &
Completed Operations of the named insured, or (C) Premises owned, leased
or used by named insured
PRODUCER
ISO WILLINGHAM INS SERVICES
2469 POMONA RINCON ROAD
SUITE 101
DATE
ONLY AND CONFERS, NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
CORONA (909) 278-1388 CA 91720 AANY JUL o a W
AtFARM INSURANCE
INSURED COMPANY
GEORGE KIBBY & DAN HARASSERS B STATE FUND INSURANCE
DBA: SOUTH COAST FARMS COMPANY
2267 SANDLEWOOD C
ANAHEIM CA 92806- COMPANY
(714) 632 9848 D
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS
LTR DATE (MM/DD/YY) DATE (MM/DD/YY)
A GENERALLIASILITY GENERAL AGGREGATE $1000000
CUL COMMERCIAL GENERAL UABIUTY GL NEW 06/25/97 06/25/98 PRODUCTS-COMP/OPAGG $
CLAIMS MADE a OCCUR PERSONAL K ADV INJURY $1000000
OWNER'S K CONTRACTOR'S PROT EACH OCCURRENCE $1000000
DESCRIPTION OF OPERATIONS/LOCATIONSNENICLES/SPECIAL ITEMS 'l mlE unl'41d4YL L1H13 Or PtllYC1VW1Vb1t.7 L1Hb 1J C'Iclrl/Iv�/Ir—I,v..�ntn�:.
THE CITY & THE COMMUNITY REDEVELOPMENT AGENCY,ITS ELECTED OR APPOINTED OFFICERS, OFFICIALS, EMPLOYEES AND VOLUNTEERS ARE INCLUDED
AS ADDITIONAL INSUREDS WITH REGARD TO DAMAGES & DEFENSE OF CLAIMS ARISING FROM (A) ACTIVITIES PERFORMED BY OR ON BEHALF OF THE
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
City Of San Juan Capistrano I EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL
Community Redevelopment Agency 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
Attn: Nancy Barney BUT FAILURE T$a- AIL SUCt NOTICE S ALL IMPOSE NO OBLIGATION OR LUBNTY
32400 Paseo Ade Tanto DF—ANY IND U ON T E COMP NY, ITS AGENTS OR REPRESENTATIVES.
San Juan Capistrano CA 926]5LAUT%CRIZEdREPRESENTATIVf ��_1
CGI,
BFCGL
FIRE DAMAGE (Any one fire) $50000
MED EXP (Any one person) $ 1000
A
AUTOMOBILE LABILITY
ANY AUTO
ALL OWNED AUTOS
X SCHEDULED AUTOS
HIRED AUTOS
NON -OWNED AUTOS
BA NEW
06/25/97
06/25/98
COMBINED SINGLE UMIT $
500000
BODILY INJURY
(Per person) $
BODILY INJURY
Per acddeM) $
PROPERTY DAMAGE $
GARAGE LIABILITY
ANY AUTO
/ /
/ /
AUTO ONLY - EA ACCIDENT $
OTHER THAN AUTO ONLY:
EACH ACCIDENT $
AGGREGATE $
EXCESS LIABILITY
UMBRELLA FORM
OTHER THAN UMBRELLA FORM
/ /
/ /
EACH OCCURRENCE $
AGGREGATE $
$
B
WORKERS COMPENSATION AND
EMPLOYERS'LIABIL17Y
THE PROPRIETOR/ INCL
PARTNERS/E%ECUTIVE
OFFICERS ARE: X EXCL
1466902-97
02/28/97
02/01/98
WCSTATU- [H -
TORY LIMITS FR
EL EACH ACCIDENT $1000000
EL DISEASE -POUCY UMIT $1000000
EL DISEASE - EA EMPLOYEE $1000000
A
OTHER
ICGL
PFO NEW
06/25/9]
06/25/98
ADDIN 1000000
I
DESCRIPTION OF OPERATIONS/LOCATIONSNENICLES/SPECIAL ITEMS 'l mlE unl'41d4YL L1H13 Or PtllYC1VW1Vb1t.7 L1Hb 1J C'Iclrl/Iv�/Ir—I,v..�ntn�:.
THE CITY & THE COMMUNITY REDEVELOPMENT AGENCY,ITS ELECTED OR APPOINTED OFFICERS, OFFICIALS, EMPLOYEES AND VOLUNTEERS ARE INCLUDED
AS ADDITIONAL INSUREDS WITH REGARD TO DAMAGES & DEFENSE OF CLAIMS ARISING FROM (A) ACTIVITIES PERFORMED BY OR ON BEHALF OF THE
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
City Of San Juan Capistrano I EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL
Community Redevelopment Agency 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
Attn: Nancy Barney BUT FAILURE T$a- AIL SUCt NOTICE S ALL IMPOSE NO OBLIGATION OR LUBNTY
32400 Paseo Ade Tanto DF—ANY IND U ON T E COMP NY, ITS AGENTS OR REPRESENTATIVES.
San Juan Capistrano CA 926]5LAUT%CRIZEdREPRESENTATIVf ��_1
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949)493-1171
(949) 493-1053 (FAX)
June 5, 1998
i Jw�
AAO
�I�A�A 1961
1776
Mr. George Kibby
South Coast Farms
2268 Sandalwood Place
Anaheim, California 92806
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
WYATT HART
GIL JONES
DAVID SWEROUN
CITY MANAGER
GEORGE SCARBOROUGH
Re: Renewal of General Liability and Workers' Compensation Certificates of Insurance (License
Agreement for Manaeement of Kinoshita Farms Agricultural Complexi
Dear Mr. Kibby:
The General Liability Certificate of Insurance, regarding the above -referenced service, is due to
expire on June 25, 1998. The Workers' Compensation Certificate of Insurance expired on February
1, 1998. In accordance with your agreement, the insurance certificates need to be renewed for an
additional period of one year. The agreement requires a general liability endorsement form naming
the City of San Juan Capistrano as well as the San Juan Capistrano Community Redevelopment
Agency as additional insureds. I have included the City approved endorsement form to submit to
your insurance company; however, your insurance company may provide their own endorsement
form.
Please forward the Workers' Compensation Certificate now to the City, attention City Clerk's office,
and the General Liability Certificate and endorsement form by June 30, 1998.
If you have any questions, please contact me at (949) 443-6310.
Thank you for your cooperation.
Very truly yours,
Dawn M. Schanderl
Deputy City Clerk
Enclosure
cc: --Cheryl Johnson, City Clerk
Silvia Cintron, Public Works
DRUG USE
iS
AB
San Juan Capistrano: Preserving the Past to Enhance the Future
32400 PASEO ADE[ANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493-1053 (FAX)
June 5, 1998
Mr. George Kibby
South Coast Farms
2268 Sandalwood Place
Anaheim, California 92806
Re: License Agreement
Dear Mr. Kibby:
dwr,
�� II�AIA�1
uunnm 1961
1776
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
MATT HART
GILJONES
DAVID M. SWERDLIN
CITY MANAGER
GEORGE SCARBOROUGH
At their meeting of June 2, 1998, the City Council of the City of San Juan Capistrano and
the Community Redevelopment Agency Board of Directors approved a License Agreement
with your company to manage the Kinoshita Farms Agricultural Complex for a one-year
period ending June 30, 1999.
A fully -executed copy of the License Agreement is enclosed for your files. Please feel free
to contact Amy Amirani, Public Works Director, at 949-443-6361 if you have any questions.
Very truly yours,
Cheryl Johnson
City Clerk
Enclosure
cc: Public Works Director
DRUG USE
Is
AB
San Juan Cal istrano : Preserving the Past to Enhance the Future
Q
7.
0
List of Demands dated May 21
ived and filed.
in the total amount of $807
was ordered
As set forth in the 118
ort dated June 2, 1998 from th Public Works Director, the
Professional Services Agre ent with AKM Consulting Engidbcs for the Domestic Water
Master Plan Review in the amo of $59,586 was approved and th yor was authorized
to sign the agreement on behalf of City.
APPROVAL OF LICENSE AGREEMENT WITH SOUTH COAST FARMS FOR
As set forth in the Report dated June 2, 1998 from the Public Works Director, the License
Agreement between the City of San Juan Capistrano, the San Juan Capistrano Community
Redevelopment Agency and South Coast Farms for the period of July 1, 1998 through
June 30, 1999 was approved in the amount of $44,000, to be paid in quarterly increments of
$11,000.
6600.30)
set forth in the Repo dated June 2, 1998 from the Public Nrks Director, the purchase
'ark Playground Equip t for Acu Canyon Park from the GhTetime Company in the
t of $13,073.74 was app ed; and, the City Manager was au zed to enter into an
e nt with the Seavey-Leisur roup in the amount of $2,922.90 fo installation of the
neti playground equipment.
As set forth in the R ortdated June 2, 1998 from t Public Works Director, the two -}dear
contract extension wi West Coast Arborists for Ci Tree Trimming in the amount o
$66,850 per year was a%ovel.
ADOPTION OF REIONS RELATING TO N EMBER 3 1998
GENERAL MUNICIPAL ELL
TION 630.20)
As set forth in the Report dated June 1998 from the City Clerk, th\11owing Resolutions
relating to the General Municipal El tion to be held on Tuesdmber 3, 1998
regarding (1) calling and giving notice o he General Municipal (2) requesting
City Council Minutes -4- 6/2/98
AGENDA ITEM
TO: George Scarborough, City Manager
FROM: Amy Amirani, Public Works Director
June 2, 1998
SUBJECT: Consideration of License Agreement With South Coast Farms for Management of the
Kinoshita Farms Agricultural Complex
RECOMMENDATION:
By motion, approve the attached License Agreement between the City of San Juan Capistrano, the
San Juan Capistrano Community Redevelopment Agency and South Coast Farms for the management
of the Kinoshita Farms Agricultural Complex for the period of July 1, 1998 through June 30, 1999,
and authorize the Mayor to execute the agreement.
SITUATION:
On June 3, 1997, the City Council selected South Coast Farms to provide farm management services
for the period of July 1, 1997 through June 30, 1998 for the Kinoshita Farms Agricultural Preserve.
A negotiated License Agreement between the City of San Juan Capistrano, the San Juan Capistrano
Community Redevelopment Agency and South Coast Farms was approved by the City Council on
June 17, 1997. South Coast Farms has been very successful in operating the farm while meeting the
provisions of the agreement.
Staff is in the process of circulating a Request for Proposal for the management and operation of the
Congdon House and the Farm. This process will take approximately six (6) months. It is
recommended that the existing License Agreement with South Coast Farms be renewed for one more
year allowing staff to finalize the current Request for Proposal process.
COMMISSION/BOARD REVIEW AND RECOMMENDATION:
Not Applicable
FINANCIAL CONSIDERATIONS:
The City and Community Redevelopment Agency will be compensated in the amount of $44,000 for
the use of this property during the term of the agreement. Payments will continue to be made in
quarterly increments of $11,000.
FOR CITY COU' 3C IL QGE[
AGENDA ITEM
June 2, 1998
Page Two
NOTIFICATION:
George Kibby, South Coast Farms, 2268 Sandalwood Place, Anaheim, CA 92806
ALTERNATE ACTION:
1. Approve the License Agreement with South Coast Farms for the management of the
Kinoshita Farms Agricultural Complex for the period of July 1, 1998 through June 30, 1999,
and authorize the Mayor to execute the agreement;
2. Direct staff to make revisions to the License Agreement and negotiate those revisions with
South Coast Farms;
3. Request additional information from staff.
RECOMMENDATION•
By motion, approve the attached License Agreement between the City of San Juan Capistrano, the
San Juan Capistrano Community Redevelopment Agency and South Coast Farms for the management
of the Kinoshita Farms Agricultural Complex for the period of July 1, 1998 through June 30, 1999,
and authorize the Mayor to execute the agreement.
Respectfully submitted,
(j-�r t ( y VA I t lvv—
Amy Amirani
Public Works Director
Attachment: Proposed License Agreement
Mm
v
Section 3. Nature of Use Permitted Under the Agreement.
(a) Operation of Farm. Licensee shall be responsible for the supervision and
management of every aspect of running a farming operation on the Property in a businesslike manner.
Such supervision and management shall include, but not be limited to:
(i) the employment, supervision and direction of all employees engaged
in the farming operation;
(ii) providing for the maintenance of all equipment and supervising its use
in a safe and prudent manner;
(iii) soil preparation, planting, fertilizing, irrigating, pesticide and herbicide
applications, and the harvesting of all crops;
(iv) the marketing and sale of crops;
(v) maintenance of records and accounting for all revenues and
expenditures, including employee payroll and related records;
(vi) the purchasing of all seeds, plants, fertilizers, herbicides, pesticides,
and other materials and supplies, such as boxes and packaging
materials, required for marketing and sale of the crops;
(vii) management and maintenance of all on-site improvements, including
temporary housing, for Licensee's employees.
Licensee warrants that all services will be performed in a competent and satisfactory
manner, consistent with the standards of the industry and in accordance with applicable Federal, State
and local regulations.
(b) Maintenance of Property and Equipment. Licensee agrees to accept the
Property and equipment in present condition on the date of execution of this Agreement. Specified
buildings and farm equipment shall be provided to Licensee by Licensor, for Licensee's use in farming
operations. Licensee shall maintain, at Licensee's expense, the Property, including all structures
except the historical farmhouse residence (Congdon House)* and all equipment owned and furnished
by Licensor that is used in farming operations, in a reasonable state of repair and working order. All
other equipment to be used in farming operations shall be furnished by Licensee at Licensee's expense.
Equipment owned and furnished by Licensor shall not be removed from the Property without the
consent of Licensor, except for temporary repairs, after which it shall be immediately returned. An
inventory of all equipment owned by Licensor shall be provided to Licensee. Licensee and the
authorized representatives of Licensor shall inspect all equipment within sixty (60) days of execution
of this Agreement and mutually agree upon the condition of the equipment.
*Use, maintenance and control of the Congdon House is expressly excluded from this
Agreement. All use, maintenance and control of the Congdon House will be the responsibility of the
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•
Licensor and is subject to change at the discretion of Licensor. This Agreement shall include
reservation of a right to parking in that area defined as the width of the Congdon Residence (35'),
from the east wall of the structure to the eastern most boundary parallel to Alipaz Street, as well as
a right to access from the existing drive entrance on Alipaz Street to the south of the Congdon
House. Such right of use shall not exclude access by the Licensee.
(c) Marketing and Sale of Crops. Licensee shall be responsible for the marketing
and sale of crops produced on the Property. Licensor and Licensee agree that crops will be sold retail
at the cash stand located on the Property and to commercial produce wholesalers and distributors.
Licensee shall provide a schedule to Licensor of proposed days and hours of operation of the on-site
retail location.
(d) Water and Utilities. Licensee agrees to pay all costs for public utilities installed
or used during the term of the Agreement for farming operation purposes. Licensee agrees to use
water provided by the local agencies in the farm operation, and to pay for water usage, including the
charges for new hookups, maintenance and repairs related to the farming operation.
Licensee agrees to work cooperatively with Licensor to coordinate watering schedules
between the Property and the City Sports Park. Water costs for the City Sports Park will be the
responsibility of Licensor.
(e) Condition of Property. Licensee accepts the Property in its present condition
upon execution of this Agreement. Licensor makes no warranty of the suitability of the Property for
growing crops. Licensee agrees, at Licensee's expense, to use reasonable care to control all weeds,
noxious or otherwise, growing on the Property, including those growing in drainage ditches.
Licensee shall furnish all labor and materials required to eliminate and otherwise reasonably control
all rodents, insects and other pests on the property. Licensee agrees to farm the property in a manner
reasonably calculated to protect the soil and maintain the fertility through the use of fertilizers and
chemicals in accordance with good farming practices as generally followed and recognized in Orange
County, California. Licensee agrees, at Licensee's expense, to keep fences, ditches and borders of
the Property in good condition and repair at all times, reasonable wear and tear excepted. The duly
authorized representative of Licensor may enter upon the Property and all buildings thereon, or any
portion thereof, at a reasonable time for the purposes of inspection.
(f) Residential Use of Property. Licensee agrees that no persons or employees
will be allowed to reside upon the Property except for the use of existing temporary farm labor
residences during irrigation periods only. Licensee shall obtain all necessary licenses, permits and
approvals, and shall abide by all state, local and national laws for such temporary residential use.
Section 4. Insurance and Indemnity.
(a) Insurance. Licensee shall maintain comprehensive general liability, property
damage, and fire insurance with a reputable insurance company in amounts of not less than
$1,000,000.00 combined single limit, or other format acceptable to the Office of the City Attorney.
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(b) Indemnity. Licensee shall defend, indemnify and hold harmless Licensor, and
Licensor's respective officers, employees and agents from and against any and all actions, claims,
demands, losses, costs, expenses, including legal costs and attorneys fees, for death or injury to
persons or damage to the Property, or for the pollution thereof and cleanup costs, arising out of or
related to Licensee's performance under this Agreement, except to the extent of such loss as may be
caused by Licensor's own negligence, including that of their respective officers and employees.
Licensor shall not be held accountable for any preexisting soil contamination including those identified
in the report dated January 28, 1990, prepared by Chem Risk, and the report dated December 18,
1990, prepared by South Coast Geological Services, Inc.
Section 5. No Assi nR ments.
Licensee may not assign its rights under this Agreement to any third party.
Section 6. Notice .
Any notice required to be given under this Agreement shall be in writing and shall be deemed
to have been duly given and received if and when personally served, or forty-eight (48) hours after
being deposited in the United States mail, first class, postage prepaid, addressed to the intended party
at:
Licensor:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano CA 92675
Attention: Cindy Pendleton
Licensee:
George Kibby
South Coast Farms
2268 E. Sandalwood Place
Anaheim, CA 92806
San Juan Capistrano
Community Redevelopment Agency
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attention: Cindy Pendleton
Dan Manassero
South Coast Farms
2268 E. Sandalwood Place
Anaheim, CA 92806
Section 7. Attorneys' Fees. If either party commences an action against the other party
arising out of or in connection with this Agreement, the prevailing party shall be entitled to have and
recover from the losing party reasonable attorney's fees and costs of suit.
Section 8. Entire Agreement.
This Agreement constitutes the entire understanding and agreement between the Parties and
supersedes all previous negotiations between them pertaining to the subject matter thereof.
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