1998-0602_SOUTH COAST FARMS_License Agreementr
LICENSE AGREEMENT
This License Agreement is made this-110(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 I. 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.
cAwpwin60\wpdaa%r \s as1.98 -1- 05/13/98
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
c1wpwin60%vgxI 'fr \socoast.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 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 accordancewith 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.
cAwpwinWwpdo \far \socowt.98 -3- 05/13/98
0 9
(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 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:
icensor:
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 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.
cAwpwin604pdo Xfa \socoaA.98 -4- 05/13/98
0 0
IN WITNESS WHEREOF, the Licensor and Licensee have caused this Agreement to be
executed on the date and year first written above.
Cheryl Johnso , Cit lerk
APPROVED AS TO FORM:
John R. Shaw, City Attorney
AT EST:
Cheryl John , Agdncy Secretary
APPROVED AS TO RM:
John R. Shat Agency Counsel
CITY OF SAN JUAN CAPISTRANO, a public
body corpo politic/
By��/��G�/
Gil Jones, Mayor
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, a public
body corporate and politic
By:
Wyatt H t, Chairman
SOUTH COAST FARMS
cAwpwn60\wpdoce%\socoW.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
AS
Farm Labor Residence
A6
Agriculture to Remain
B. Historical Preservation
Bl Joel Congdon Residence
B2 Historical Farm Equipment Display Area
A
A6
CAMINO DEL AVION
Exhibit A
r
A ORD CERTIFICAW OF
LIABILITY
INSU9&NC�ID $y o06/1IDDIYY)
OUTH-3 06/16/98
PRODUCER
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ISU Willingham Ins. Svcs. Inc.
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
License- BOC13465
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
2469 Pomona Rincon Road #101
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
COMPANIES AFFORDING COVERAGE
Corona CA 91720
COMPANY
A CalFarm Insurance Company
Dale Willingham
Phoo.N.. 909-278-1388 Fa.No.909-278-0664
INSURED
COMPANY
B CalComp Insurance Company
South Coast Farms Inc.
COMPANY
George Kibby 6 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 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.
COTYPE
LTR
OF INSURANCE
POLICY NUMBER
POLICYEFFECTIVE
DATE(MMXKVYY)
POL.ICYEXPIRATION
DATE (MMIDD/YY)
LIMITS
GENERAL
LIABILITY
GENERAL AGGREGATE $1000000
A
X
COMMERCIAL GENERAL LIABILITY
GL 4031063
06/25/98
06/25/99
PRODUCTS-COMPIOPAGG f
CLAIMS MADE FX] OCCUR
PERSONALS ADV INJURY $1000000
EACH OCCURRENCE $1000000
OWNER'S& CONTRACTOR'S PROT
FIRE DAMAGE (Any one On) $50000
MED EXP (Any one Person) $1000
A
AUTOMOBILE
LIABILITY
ANY AUTO
BA 4029384
06/25/98
06/25/99
COMBINED SINGLE LIMIT f500,000
BODILY INJURY f
(Per Person)
X
ALL OWNED AUTOS
SCHEDULED AUTOS
BODILY INJURY f
(Per accident)
HIRED AUTOS
NON -OWNED AUTOS
PROPERTY DAMAGE f
GARAGE LIABILITY
AUTO ONLY - EA ACCIDENT f
OTHER THAN AUTO ONLY:
ANY AUTO
EACH ACCIDENT f
AGGREGATE f
EXCESS LIABILITY
EACH OCCURRENCE f
AGGREGATE f
UM BRELLA FORM
f
OTHER THAN UMBRELLA FORM
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
WC SU- OTH-
TORYLIMITATER
EL EACH ACCIDENT f 1 , 000 , 000
B
THE PROPRIETOR/ INCL
PARTNERSIEXECUTIVE
6982171939
02/01/98
02/01/99
EL DISEASE -POLICY LIMIT f 1,000,000
EL DISEASE -EA EMPLOYEE f 1 000,000
OFFICERS ARE: X EXCL
OTHER
A
Farmowners Liab.
PFO 4029383
06/25/98
06/25/99
Occurence 1,000,000
Products 1,000,000
DESCRIPTION OF OPER nONSILOCATIONSIVEHICLES/SPECIAL ITEMS
The General Liability S Farmowners Liability is primary/non-contributory -
see attachment for additional insured wording
CERTIFICATE HOLDER
CANCELLATION
$ANJUAl
SHOULD ANY OFIVE ABOVE DESCRIBED POLICIES BE CANCELLED EFORE THE
EXPIRATION ATE TH EOF, THE I$BUIRfTCOMP V WILL END OR TO MAIL
City O£ San Juan Capistrano
3O DAYS ITTEt NOTIC OTME CERTIFI TE HOLDERN MED TO THE LFT,
Community Redevelopment Agency
ATTN: Nancy Barney
BUT FAI TDTd SUC OTICE SHALL IMP SE NO OBLIG TON OR LIABILITY
32400 Paseo Adelanto
OF YKIND UPONT E PANY, ITS AG OR REPRES TAP
AUTHO IZEDREPRESE ATI
San Juan Capistrano CA 92675
Dale Willing
1..
ACORD 25-S (1195)
A D CORADRATION 1988
PAGE 2
NOTEPAD. INSUREDS NAO South Coast Farms Inc. .ID SYUTH-3 DATE 06/16/98
The City S Community Redevelopment Agency, its elected or appointed
officers, officials, employees and volunteers are included as additional
insured with regards to damages S defense of claims arising from (A)
Activities performed by or on behalf of the named insured (B) Products &
Completed Operations of the named insured, or (C) Premises owned, leased
or used by named insured
2.
The Lists of Demands dated May 21,
received and filed.
171
of $15,246.97 was ordered
3. APPROVAL OF LICENSE AGREEMENT WITH SOUTH COAST FARMS FOR
MANAGEMENT OF KINOSHITA FARM AGRICULTURAL COMPLEX (600.40)
As set forth in the Report dated June 2, 1998 from the Public Works Director, the License
Agreement between the San Juan Capistrano Community Development Agency, the City of
San Juan Capistrano and South Coast Farms for the management of the Kinoshita Farms
Agricultural Complex for the period of July 1, 1998 through June 30, 1999 in the amount of
$44,000 to be paid in quarterly installments was approved and the Chairman of the
Redevelopment Agency was authorized to execute the agreement.
following item was removed from the Consent Calendar for discussion.
Report dateJune 2, 1998 from the Deputy Director, forwarding the proposed Community
Enhancement ogram Rules and Regulations and recommending approval.
Director Comments:
Director Swerdlin expre ed concern that the designated income level eligibility, which had
been set at 115% of the Or e County median, was too high and could allow participation
by persons who were not truly w -income. He felt the eligibility level should be reduced
to a more reasonable level that w ore in keeping with an affordable housing program.
Deborah Dimu, Housing Consultant, n ed that
incorporated to meet the Housing and UrbahDeN
participation by a variety of households with
pointed out that the Council Subcommittee had
housing but also wanted to create an incentive for
neighborhoods.
the maximum income level had been
Jopment requirement and to encourage
trent income levels. Mr. Scarborough
tented to not only provide low income
to move into the targeted
Mrs. Dimu referenced a chart included in the staff report indic 'ng maximum household
income by income categories. Discussion ensued and there was cortsensus that Category 3,
setting income levels at 81 - 100% of the median income, would bean cceptable level for
inclusion in the Rules and Regulations.
ADoroval of Communitv Enhancement Housine Proeram Rules and Reeulati
It was moved by Council Member Swerdlin, seconded by Council Member Camp 1, and
unanimously carried, that the Community Enhancement Housing Program Rules d
CRA Minutes -2- 6/2/98
. AGENDA ITEM
TO: George Scarborough, Executive Director
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 San Juan Capistrano Community
Redevelopment Agency, the City of San Juan Capistrano 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 Chairman of the Redevelopment Agency to execute the agreement.
• SITUATION:
On June 3, 1997, the San Juan Capistrano Community Redevelopment Agency 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 San Juan
Capistrano Community Redevelopment Agency, the City of San Juan Capistrano and South Coast
Farms was approved by the Redevelopment Agency 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 Community Redevelopment Agency and the City 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.
FCR CITY COIJ"Xil- A=44�.�
,C�3
R,
0 0
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 Fames Agricultural Complex for the period of July 1, 1998 through June 30, 1999,
and authorize the Chairman 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.
. By motion, approve the License Agreement between the San Juan Capistrano Community
Redevelopment Agency, the City of San Juan Capistrano 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 Chairman of the Redevelopment Agency to execute the agreement.
Respectfully submitted,
Amy An*am
Public Works Director
Attachment: Proposed License Agreement
AA/gs
0 0
LICENSE AGREEMENT
This License Agreement is made thisday of June, 1998 (the "Agreement") by and
between the City of San Juan Capistrano, a pub_lic body, corporate and politic, and the San Juan
Capistrano Community Redevelopment Agency, a public body, corporate and politic (known jointly
hereinafter as the "Licensori'), 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 fanning 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 W 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.
c:\wpwmWwpdo \fum80 st.98 -1- 05/13/98
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 farting 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 farthing
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 farthing 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:\wpwuM6 wpdo lfu \socoas[.99 -2- 05113/99
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.
•
c;\wpwmWwpdoc f��98 -3- 03/13/98
(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 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 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.
c:\wpwtn60\wpd.TV \ oroaa.98 -4- 05/13/98
IN WITNESS WHEREOF, the Licensor and Licensee have caused this Agreement to be
executed on the date and year first written above.
• CITY OF SAN JUAN CAPISTRANO, a public
body corporate and politic
By:
Gil Jones, Mayor
ATTEST:
Cheryl Johnson, City Clerk
APPROVED AS TO FORM:
John R. Shaw, City Attorney
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, a public
body corporate and politic
By:
ATTEST:
Cheryl Johnson, Agency Secretary
APPROVED AS TO FORM:
John R. Shaw, Agency Counsel
Wyatt Hart, Chairman
SOUTH COAST FARMS
By:
• c:\wpwi,60\wpdm\fam socoaa.98 -5-
George Kibby
Dan Manassero
05/13/98
32400 PASEO ADEIANTO
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
dsee
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AM
IAIIpOOII
Bruuuu 1961
1776
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
WYATT HART
GILJONES
DAVID M. SWERDLIN
CITY MANAGER
GEORGESCARBOROUGH
Re: Renewal of General Liability and Workers' Compensation Certificates ofInsurance (License
Agreement for Management of Kinoshita Farms Agricultural Complex)
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
PRODUCER
ISU WILLINGHAM INS SERVICES
2469 POMONA RINCON ROAD
SUITE 101
CORONA CA 91720 -
INSURED
GEORGE KIBBY & DAN MANASSERO
DBA: SOUTH COAST FARNS
2267 SANDLEWOOD
ANAHEIM CA 92806 -
DATE (111111 W)
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS, NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
COMPANY
A CALFARM INSURANCE
COMPANY
B STATE FUND INSURANCE
COMPANY
C
COMPANY
D
JUL 0 ♦ 1797
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.
LTF TYPE OF INSURANCE POLICY NUMBER POLICY EFECIVEDATE(MMFDOT/Vh PDATE( M/DDA'Y)OUCYEXPIRATIONI UNITS
A GENERAL LIABILITY I GENERALAGGREGATE S1060000
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS '1'IiG tit,INt,KAL )JIAIS Lx tAliMVWINFKJ LIAY IJ t'KIM/1VV1'd—1 V:`a KLYSUILK
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
NAMED INSURED(B) PROJECTS & COMPLETED OPERATIONS OF THE NAMED INSURED,OR(C) PREMISES OWNED, LEASED OR USED BY NAMED INSURED
City Of San Juan Capistrano
Community Redevelopment Agency
Attn: Nancy Barney
32400 Paseo Adeianto
San Juan Capistrano CA 92675
i...
ACORD %-S fli")
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL
30 DAYS WRITTEN NOTICE TO THE C TIFICATE HOLDER NAMED TO THE LEFT,
BUT FAILUREAIL SUC NOTICE 5 ALL IMPOSE NO OBLIGATION OR LIABILITY
PF—*NY IND U ON I E COMPANY, ITS AGENTS OR REPRESENTATIVES.
CGt
COMMERCIAL GENERAL LIABILITY
CLAIMS MADE EX OCCUR
OWNER'S& CONTRACTOR'S PROT
BFCGL _
GL NEW
06/25/97
06/25/98
PRODUCTS-COMP/OP AGO $
PERSONAL &ADV INJURY $1000000
CG
EACH OCCURRENCE $1000000
FIRE DAMAGE (Any one fire) $50000
MED EXP (Any one person) $ 1000
A
AUTOMOBILE
X
LIABILITY
ANYAUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON -OWNED AUTOS
BA NEW
06/25/97
06/25/98
(
COMBINED SINGLE UMIT $
500000
BODILY INJURY $
(Per person)
BOUILY INJURY
(Per accident) $
PROPERTY DAMAGE $
GARAGE
—1EACH
LIABILITY
ANY AUTO
/ /
/ /
AUTO ONLY - EA ACCIDENT IS
OTHER THAN AUTO ONLY:
ACCIDENT $
AGGREGATE $
EXCESS
LIABILITY
UMBRELLA FORM
OTHER THAN UMBRELLA FORM
/ /
/ /
EACH OCCURRENCE $
AGGREGATE $
$
B
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY_
THE PROPRIETOR/ INCL
PARTNERS/EXECUTIVE
OFFICERS ARE: X E)tCL
1466902-97
02/28/97
02/01/98
WC STA U- OTH-
TORY LI ITS ER
EL EACH ACCIpENT $1000000
ELDISEASE-POLICY LIMIT $1000000
EL DISEASEEAEMPLOYEE $1000000
A
OTHER
CGL
PFO NEW
06/25/97
06/25/98
ADDIN 1000000
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS '1'IiG tit,INt,KAL )JIAIS Lx tAliMVWINFKJ LIAY IJ t'KIM/1VV1'd—1 V:`a KLYSUILK
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
NAMED INSURED(B) PROJECTS & COMPLETED OPERATIONS OF THE NAMED INSURED,OR(C) PREMISES OWNED, LEASED OR USED BY NAMED INSURED
City Of San Juan Capistrano
Community Redevelopment Agency
Attn: Nancy Barney
32400 Paseo Adeianto
San Juan Capistrano CA 92675
i...
ACORD %-S fli")
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL
30 DAYS WRITTEN NOTICE TO THE C TIFICATE HOLDER NAMED TO THE LEFT,
BUT FAILUREAIL SUC NOTICE 5 ALL IMPOSE NO OBLIGATION OR LIABILITY
PF—*NY IND U ON I E COMPANY, ITS AGENTS OR REPRESENTATIVES.
32400 PASEO ADELANTO
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:
I ' 4
In L! WIUN11
• uunnm 1961
1776
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
WYATT HART
GILJONES
DAVID M. SWERDLIN
CITYMANAGER
GEORGESCARBOROUGH
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 SE
San Juan Capistrano: Preserving the Past to Enhance the Future
AGENDAITEM
TO: George Scarborough, Executive Director
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 San Juan Capistrano Community
Redevelopment Agency, the City of San Juan Capistrano 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 Chairman of the Redevelopment Agency to execute the agreement.
SITUATION:
On June 3, 1997, the San Juan Capistrano Community Redevelopment Agency 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 San Juan
Capistrano Community Redevelopment Agency, the City of San Juan Capistrano and South Coast
Farms was approved by the Redevelopment Agency 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 Community Redevelopment Agency and the City 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 CrrY COMMIL ACl=1 a le)49
,63
AGENDA ITEM
June 2, 1998
Page Two
NOTIFICATION:
George Kibby, South Coast Farms, 2268 Sandalwood Place, Anaheim, CA 92806
ALTERNATE ACTION:
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 Chairman to execute the agreement;
2. Direct staff to make revisions to the License Agreement and negotiate those revisions with
South Coast Farms;
Request additional information from staff.
RECOMMENDATION:
By motion, approve the License Agreement between the San Juan Capistrano Community
Redevelopment Agency, the City of San Juan Capistrano 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 Chairman of the Redevelopment Agency to execute the agreement.
Respectfully submitted,
(..C'mct C211Y\ VIL'V�
Amy Amirani
Public Works Director
Attachment: Proposed License Agreement
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