16-0301_BLENHEIM FACILITY MANAGEMENT_E1b_Agenda ReportCity of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Ben Siegel, City Manager
Jeffrey Ballinger, City Attorney ~ Coc5(/:)
DATE: March 1, 2016
3/1/2016
E1b
SUBJECT: Consideration and Direction Regarding Possible Renegotiation of
Management Agreement for the Rancho Mission Viejo Riding Park at
San Juan Capistrano
RECOMMENDATION:
Discuss and, by motion:
1. Direct staff to initiate negotiations with Blenheim (including the general terms of
such negotiations); and,
2. Refer the recreational elements of the Riding Park to the Parks, Recreation,
Senior & Youth Services Commission.
EXECUTIVE SUMMARY :
The current Management Agreement for the Rancho Mission Viejo Riding Park at
San Juan Capistrano ("Riding Park") is set to expire on December 31, 2016 . Therefore,
it is necessary for the City Council to provide direction to City staff as to whether, and on
what general terms, the City Council may wish to enter into another management
agreement or pursue other options. Such other options could include managing the
Riding Park with City staff or selling the Riding Park.
DISCUSSION/ANALYSIS:
In 2010, the City of San Juan Capistrano acquired the approximately 116 acre park
referred to as the Rancho Mission Viejo Riding Park at San Juan Capistrano. In
November 2014, the City entered into the most recent Management Agreement with
Blenheim Facility Management, LLC (Attachment 1 ). Under the Management
Agreement, Blenheim manages and maintains approximately 70 acres of the Riding
Park.
City Council Agenda Report
March 1, 2016
Page 2 of 4
The Management Agreement provides that the Riding Park is to be used for sporting
and equestrian events and community recreational and sports-related activities, and
ancillary activities appropriate to particular events. No numerical limitation is set on the
number of events that can be held at the property. But, the permitted uses cannot
increase traffic beyond the traffic levels specified in the 2009 Purchase/Sale Agreement
and must comply with the use restrictions contained in the 2009 Purchase/Sale
Agreement and 2010 Grant Deed.
Under the current Management Agreement , Blenheim must submit proposed events to
the City, at least quarterly. The events must include :
(A) Additional sports events, including tournaments , with priority for San Juan
Capistrano based teams; and,
(B) In addition, up to six (6) days of community events, such as movie nights, a
pumpkin patch, winter wonderland, and concerts in the park.
In addition to these events, the City has the right to reserve and use the Riding Park for
any permitted uses , and Blenheim is required to coordinate with the City .
From a fiscal perspective, the current Management Agreement required Blenheim to
pay to the City a percentage of the gross revenue derived from their management and
operations of the Riding Park. The percentage that must be paid is a sliding scale as
follows:
AMOUNT OF TOTAL GROSS CITY RIDING PARK PARCEL
REVENUES MANAGEMENT FEE PAYMENT
PERCENTAGE
$0.00 to and including $600,000 66.66%
For each dollar of Gross Revenues 90%
over $600,000 to and including
$850 ,000.
For each dollar of Gross Revenues 97.5%
over $850,000 to and including
$1,200,000.
For each dollar of Gross Revenues 95%
over $1,200 ,000 .
City Council Agenda Report
March 1, 2016
Page 3 of 4
The Management Agreement expires on December 31, 2016. Staff is recommending
that the City Council direct staff to initiate negotiations with Blenheim, while concurrently
referring the recreational elements of the Riding Park to the Parks, Recreation, Senior &
Youth Services Commission for further discussion. The following are potential options
for the City Council's consideration.
Negotiate another Management Agreement
One option would be for the City Council to direct staff to negotiate another
management agreement, either with Blenheim or some other operator. Because the
Riding Park was acquired by the City with proceeds from a municipal bond issuance,
the structure of any management fee is governed by federal tax rules. So, under such
a management agreement, the management fee to be paid by the City could be based
on a combination of a fixed fee amount and a percentage of the gross revenues. The
mixture of these two amounts can be adjusted, depending on the length of the term of
the management agreement. The longer the term, the more the management fee can
be comprised of the fixed fee component.
With regard to the identity of the management company, the City Council could
negotiate with Blenheim, or the City could direct that the City staff solicit proposals from
other qualified operators. Should the City Council direct staff to initiate negotiations of a
new management agreement, staff would work closely with bond counsel to ensure
compliance with federal tax laws governing tax-exempt bonds.
Manage the Park with Citv Staff
Another option would be for the City to manage the Riding Park using City staff rather
than a third-party operator. This alternative would likely involve recruiting and hiring
multiple additional staff, in order to effectively manage the operations, maintenance and
administration of the Riding Park, whether it is to be used as an equestrian park or for
other recreational uses. The cost to the City of operating the Riding Park is dependent
on the specific park uses and amenities. If the Council is interested in pursuing this
alternative, staff recommends that the Council provide further direction on preferred
park uses, and direct staff to identify preliminary operating costs.
Sell/Transfer the Riding Park
Another option would be for the City to transfer ownership of the Riding Park. This
option involves two issues worth noting. First, because of the restrictions that have
been placed on the Riding Park, including through restrictive deed covenants, it is likely
that the property's fair market value would be lower than otherwise unrestricted real
property in the area. Second, if the City were to sell the property, the City would have to
use the proceeds of that sale for another investment that meets the requirements of a
municipal bond financed property, such as municipal parks/open space.
City Council Agenda Report
March 1, 2016
Page 4 of 4
FISCAL IMPACT :
Depending on which alternative is chosen and the results of any negotiation, the fiscal
impacts vary. There will be administrative costs (staff time, etc.) involved in any of the
three options set forth above. Should the City Council direct City staff to negotiate a
management agreement, City staff would attempt to negotiate a deal that is most
advantageous to the City in terms of the management fee. Managing the Riding Park
with City staff would result in increased costs to the City, but the City would also receive
increased revenue. Selling the Riding Park would result in transactional costs, such as
finding a willing buyer and the costs of negotiating and closing a real property deal.
ENVIRONMENTAL IMPACT:
This matter is exempt from review under the general rule that CEQA applies only to
projects that have the potential for causing a significant effect on the environment. It can
be seen with certainty that there is no possibility that the preliminary direction given at
this time may have a significant effect on the environment. Therefore, the appeal is not
subject to CEQA (Section 15061(b)(3) of the CEQA Guidelines), and staff is directed to
file a notice of exemption.
PRIOR CITY COUNCIL REVIEW :
Not applicable.
COMMISSION/COMMITIEE/BOARD REVIEW AND RECOMMENDATIONS:
The City's Parks, Recreation, Senior & Youth Services Commission reviewed the issue
of the Riding Park at its December 21, 2015, meeting. At that time, the Commission
was presented with a history of the Riding Park acquisition, as well as the restrictions on
the use of the Riding Park, including those contained in the Purchase and Sale
Agreement, deed restrictions, and the City's planning/zoning laws. The Commission
also discussed some thoughts on potential uses of the Riding Park. Staff recommends
that the Commission continue discussing and ultimately making a recommendation to
the City Council on the preferred uses of the Riding Park, while City staff negotiates
according the direction given by the City Council.
NOTIFICATION:
Parks, Recreation, Senior & Youth Services Commission
Trails and Equestrian Commission
Blenheim Management
Pursuant to the Brown Act, the agenda for this public meeting has been posted at three
public locations 72 hours prior to the meeting, including the City's website.
A TI ACHMENT(S):
Attachment 1 -2014 Management Agreement
394/028428-0019
6143924.9 al 1113/14
RIDING PARK MANAGEMENT AGREEMENT
BY AND BETWEEN
CITY OF SAN JUAN CAPISTRANO
AND
BLENHEIM FACILITY MANAGEMENT, LLC
ATTACHMENT 1
RIDING PARK MANAGEMENT AGREEMENT
THIS RIDING PARK MANAGEMENT AGREEMENT ("Agreement") is made and
entered into this 18th day ofNovember, 2014 ("Effective Date") by and between the CITY OF SAN
JUAN CAPISTRANO, a municipal corporation ("City"), and BLENHEIM FACILITY
MANAGEMENT, LLC, a Delaware limited liability company ("Company'').
RECITALS:
A. City is the owner of that certain real property located in the City commonly known as
"Rancho Mission Viejo Riding Park at San Juan Capistrano" depicted in the attached EXHIBIT A
(the "Property"). A portion of the Property within the bounds of the solid black line shown on
EXHIBIT A consists of approximately seventy (70) acres (the "Riding Park Parcel"). City desires
to utilize the services of Company to manage and maintain the Riding Park Parcel in accordance with
the tetms and conditions set forth in this Agreement. .
AGREEMENT:
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, and for good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, City and Company hereby agree as follows:
1.0 TERM OF AGREEMENT
1.1 Effectiv e Date; Term. City is contracting with Company, pursuant to this
Agreement, for provision by Company of Riding Park Parcel management services, as set forth in
this Agreement, commencing on a date subsequent to the Effective Date. In recognition of the
foregoing, this Agreement shall be effective on the Effective Date set forth in the preamble, but the
tenn of Company's management of the Riding Park Parcel pursuant to this Agreement shall be the
"Management Term" set forth in Section 1.2. TI1is Agreement shall tenninate and be of no further
force or effect as of 11:59 p.m. on Dec mber 31, 2 01 6, unless sooner terminated pursuant to the terms
of this Agreement ("Termination Date").
1.2 Management Term. The Management Term shall commence on January 1,
2015 ("Management Term Commencement Date") and shall end on the Te1mination Date.
2.0 MANAGEMENT AND OPERATIONS
2.1 Riding Park Parcel Management by Company. City hereby contracts with
Company, during the Management Term, to manage and operate the Riding Park Parcel in
accordance with the tetms and provisions of this Agreement ("Riding Park Parcel Management
Services").
2.1.1 Acceptance of Riding Park Parcel. Company accepts the Riding Park
Parcel in its current "AS-IS" "WHERE IS'' "WITH ALL FAULTS" condition as of the Effective
Date and that, except as otherwise provided in this Agreement, City shall have no obligation
whatsoever to provide or pay for any alterations, improvements, or work therein.
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2.1.2 Access to Riding Park Parcel. City hereby grants to Company a
non-exclusive revocable license, subject to and in accordance with the tenns of this Agreement, to
enter upon and use the roads and other rights of way across the Property as designated by City on
EXHIBIT A to access the Riding Park Parcel, or alternative roads, other rights of way, and pmtion of
the Property as City may reasonably require Company to use to access the Riding Park Property from
time to time ("Access Roads"). Other than the Access Roads, Company shall not enter upon or use
any other portions of the Property for any purpose without the express vvritten consent of City.
2.1.3 Management of Riding Park Parcel in Accordance with Permitted Uses.
The Riding Park Parcel shall be used solely for the purpose of hosting sporting and equestrian events
and community recreational and sports-related activities, and ancillary activities appropriate to
particular events including. but not limited to, food and beverage service (including serving of
alcoholic beverages in compliance with applicable pennit and regulatory requirements of the State of
California Department of Alcoholic Beverage Control) and use of amplified sound equipment
(provided the same does not exceed the City's noise ordinance), so long as such uses, individually
and/or cumulatively, do not increase traffic beyond existing levels and such uses comply with the Use
Restrictions attached as Exhibits C and D of the Grant Deed transfeni.ng ownership of the Prope11y to
City, a copy of which Exhibits C and D are attached hereto as EXHIBIT B (collectively, the
"Permitted Use"), and for no other purpose. All other uses of the Riding Park Parcel that Company
may propose shall be subject to the prior review and written consent of the City Manager, which
consent may be given or withheld in the City Manager's sole and absolute discretion. Company
shall request such permission f-1-om the City Manager, in writing, not less than thirty (30) days prior to
the proposed commencement of any such event or use. Company shall use its commercially
reasonable efforts to schedule, promote, and use the Riding Park Parcel with Permitted Uses so as to
maximize use of the Riding Park Parcel but within the mandated traffic levels and consistent with
proper management and maintenance of the Riding Park Parcel for equestrian and sports-related uses.
2.1.3.1 J>arking on lliding Pat·k Parcel. Company and the users of
the Riding Park Parcel, may park vehicles, including horse trailers, on the Riding Park Parcel in
conjunction with the Permitted Use; provided, however, that no persons using the Riding Park Parcel
shall be pennitted to park, and Company shall prohibit all persons using the Riding Park Parcel from
parking, on any other portion of the Property
2.1.3.2 Sierra Soi!. City and Company acknowledge that prior to
the Etfective Date of this Agreement, certain work was performed by Sierra Soil Products, Inc. on a
portion of the Riding Park Parcel. Company shall be responsible and liable for any damage, cleanup,
or liability arising from or attributable to such work.
2.1.4 Jdentjjj cation of Riding Park Parcel. Company shall identify and
advertise the Riding Park Parcel exclusively as the "Rancho Mission Viejo Riding Park at San Juan
Capistrano" at all times when performing or otherwise conducting a Pennitted Use upon the Riding
Park Parcel. Company shall adhere to the City's approved sign program for the Riding Park Parcel.
2.1.5 Riding Parl< Parcel E cnts . Company shall submit to City Manager, not
less frequently than once per quarter, covering the four quarters of the Management Term, by the
dates set forth below, a written request for the City Manager's approval of the specific proposed
events and uses for each upcoming calendar quarter during the Management Term of this Agreement.
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City Manager's consent shall not be unreasonably withheld provided the proposed events and uses
are a Permitted Use and City Manager or authorized designee shall respond in writing to the request
within fifteen (15) calendar days of receipt of Company's request. Company shall submit such
written requests in accordance with the following schedule:
Fo r I st Ca lend a r Qua rter (January 1 thro ugh March 31 ):
For 2nd Ca lend ar Qua r ter (Ap r il I thro u gh .run e 3 0):
Fo r 3rd alend ar Qua rter (J ul y 1 lhr ough September 30):
•or 4tl' aJe.n dar Quru1e r (Octo b r J tl U'o ugh D ecember 31 ):
Not later than preceeding December 15
Not later than preceeding March 1
Not later than preceeding June 1
Not later than preceeding September 1
Company shall continue to provide public use dates and shall develop a calendar to include during the
Management Tenn: (A) additional sports events, including toumarnents, with priority for San Juan
Capistrano-based teams, and (B) community events that shall include a minimum of six (6) days of
community events such as movie nights, a pumpkin patch, winter wonderland, and concerts in the
park [the minimum of six (6) days of community events shall not include the additional spot1s events,
including toummnents, with priority for San Juan Capistrano-based teams described in clause (A)].
Notwithstanding the foregoing, Company acknowledges that City has the right to reserve and use the
Riding Park Parcel for the uses specified in Sections 2.1.5.1 and 2.1.5.2 and Company shall
coordinate with City with respect to same.
2.1.5.1 Rancho Mission Viejo Rodeo. Notwithstanding anything in this
Agreement to the contrary, City retains the right to allow use of the Riding Park Parcel for the final
two (2) weeks of August for the purpose of allowing Rancho Mission Viejo, LLC to host the Rancho
Mission Viejo Rodeo or similar event, together with any and all related events and functions
associated therewith as determined by City in its sole and absolute discretion.
2.1.5.2 City Use of Riding I>ark Parcel for Capital Improvement
Installation. City shall have the right to and it shall not be a breach of this Agreement for City to, at
City's sole discretion and at any time during the Management Tenn to: (a) install on portions of the
Riding Park Parcel utilities, stonn drain facilities, public restrooms, water, sewer, and other
infrastructure; (b) grant easements for the improvement of Ortega Highway and La Pata Road, which
improvements may require use and/or encroachment onto portions of the Riding Park Parcel; (c)
construct on portions of the Riding Pm·k Parcel the Regional Riding and Hiking Trails as shown on
the County of Orange approved Master Plan of Regional Riding and Hiking Trails or other public
trails pursuant to City's plan and specifications, and (d) allow the Reserve at Rancho Mission Viejo, a
Califomia non-profit public benefit corporation, to enter onto the Riding Park Parcel and perfonn any
activities thereon that may be required by (or are consistent with) the te1ms and provisions of the
South em Habitat Conservation plan approved by the U.S. Fish and Wildlife Service on January 10,
2007 (the "SSHCP"). No adjustment in Company's compensation hereunder shall be made due to
any losses, increased expenses, or impacts to Company resulting from or arising fi·om the exercise of
m1y of the activities set fm1h in this Section 2.1.5 .2.
2.1.5.3 Public Access to Riding Park Parcel. Within sixty (60) days of
the Effective Date, City Manager and Company shall identify areas within the Riding Park Parcel and
the times and days where public access and use, over and above those previousy provided, can occur
consistent with the safety of the public and the operations of the Company. A proposed "Public Use
Implementation Plan" shall be shall be prepared setting forth the proposed times and areas of public
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use and access and such other rules or regulations that are deemed appropriate, and such
Implementation Plan shall be presented to the City Council for review and approval no later than
ninety (90) days after the Effective Date.
2.1.6 Impact of ountv La J>ata Project. City and Company acknowledge that
the County of Orange has undertaken expansion of La Pata A venue adjacent to the Riding Park
Parcel. The extent of the impact and its effect on the ability of Company to effect use of the Riding
Park Parcel for the Permitted Use is not known. Notwithstanding, no adjustment in Company's
compensation hereunder shall be made due to any losses, increased expenses, or impacts to Company
resulting from County's work.
2.1. 7 Riparian Resources Areas.
2.1. 7.1 Identification of Riparian Resource Areas. Portions,ofthe
Riding Park Parcel contain riparian resources that are subject to the provisions of the SSHCP and its
Implementation Agreement. These resources areas ("Riparian Resources Areas") are specifically
identified and depicted in EXHIBIT A attached hereto as "Do Not Disturb Areas."
2.1 .7.2 Prohibition and Obligations. Company shall not (and
shall not authorize, allow, or permit others to) enter onto, improve, or otherwise use the Riparian
Resources Areas or any portion thereof for the Pe1mitted Use or any other activity. Moreover,
Company, at its sole cost and expense, shall undertake, perfom1, and complete all actions necessary to
restrict and prevent any person, domestic animal, vehicle, equipment, or other apparatus trom
entering onto the Riparian Resource Areas (which actions may include, but are not limited to, the
construction and maintenance of fences or other barriers and placement of signage outside of the
perimeter of the Riparian Resource Areas). The Arizona Crossing between the Property and Reata
Park Parcel may be utilized when a Fish and Game Code § 1602 Agreement has been entered into
allowing such use. Company shall abide by all tenns and conditions of such 1602 Agreement.
2.1. 7.3 Damage to Riparian Resource Areas. In the instance that
the Riparian Resource Areas sustain any damage during the Management Term, Company shall
immediately notify City conceming the damage. Within five (5) days following Company's
delivery of said notice of damage to City, Company and City shall meet and confer for purposes of
discussing the damage and addressing restoration of the damaged areas. lfthe damage is caused by,
or otherwise the result of, the actions-whether of commission or omission-of Company or any
other person entering onto the Riding Park Parcel pursuant to, or under color of, this Agreement,
Company, at its sole cost and expense, shall be responsible for (i) preparing a restoration plan that
addresses and provides for timely and complete remediation of the damage, (ii) submitting the
restoration plan.to City for review and approval, (iii) modifYing the restoration plan in accordance
with any comments or directions received tl-om City, and (iv) performing all restoration work in
accordance with the restoration plan approved by City. All restoration work shall be subject to
oversight by City and shall be perfmmed in accordance with time frames and methods approved by
City.
2.1. 7.4 Material Breach. In addition to any other rights of City to
terminate this Agreement, any failure of Company to strictly adhere to the obligations set forth in this
Section 2. 1.7.4 shall be deemed a material breach of this Agreement and City may, in its sole and
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absolute discretion, inm1ediately terminate this Agreement upon delivery of notice to Company.
Notwithstanding any such termination of this Agreement, Company shall remain obligated (i) for all
costs and expenses associated with remediating any damage to the Riparian Resource Areas caused
by Company (or any other person entering onto the Riding Park Parcel pursuant to, or under color, of
this Agreement), and (ii) for satisfying all other obligations of Company that survive tennination of
this Agreement.
2.1.8 Ar>nro als; Compliance. Company, in pelfom1ing the Riding Park
Management Services, shall be required to, at its sole cost and expense, do the following:
(a) Maintain all necessary licenses and/or pem1its from all appropriate
public or governmental agencies with jurisdiction and provide copies of same to City upon any
request therefor;
(b) Comply with each and every federal, state, or local law (including the
City's Municipal Code), regulation, standard, decision of court, ordinance, rule, code, order, decree,
directive, guidelines, permit or pennit condition, together any declaration of covenants, conditions,
and restrictions that have been recorded in any official or public records with respect to the Riding
Park Parcel or any portion thereof, each as currently existing and as runended, enacted, issued, or
adopted in the future which become applicable to the Riding Park Parcel;
(c) Not materially interfere with the use and enjoyment of the Riding Park
Parcel by City or any person claiming through or under City, except as may be mandated by this
Agreement;
(d) Not pem1it any other person or party to enter upon the Property or
Riding Park Parcel under the authority of this Agreement other than as guests or invitees, and
Company shall not authorize any person or entity to operate any commercial use and shall not grant
any sub-agreement, license, or other form of agreement relating to the Property without the prior,
express written consent of the City Manager which consent may be given or withheld in the City
Manager's sole and absolute discretion; provided, however, that notwithstanding the foregoing,
Company's vendors, concessionaires, and similar commercial uses shall be pennitted on the Riding
Park Parcel in conjunction with the Pennitted Uses.
(e) Cooperate with and provide City staff with information and
recommendations related to where and what types of infrastructure improvements could be
implemented to maximize the use of the Riding Park Parcel, including future restroom facilities,
water access points, irrigation system enhancements, parking strategies, and where to best site any
covered areas; and
2.1.9 Signage. Company shall have the right to install signage upon the Riding
Park Parcel identifying the location of the facility and the activities/events conducted by Company
thereon as Permitted Uses; provided that (i) Company shall provide to City a written description
and/or depiction of the intended signage prior to installation, (ii) all signage shall identify the Riding
Park Parcel as the "Rancho Mission Viejo Riding Park at San Juan Capistrano," (iii) City shall have
the right to approve/disapprove any signage proposed by Company, (iv) all costs and expenses
associated with designing, pennitting, constructing, installing, and maintaining the signage shall
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bebome exclusively by Company, (v) Company shall maintain all approved signage in good
condition and repair, (vi) at the conclusion of the Management Term, Company, unless otherwise
directed by City, shall remove the signage from the Riding Park Parcel, and (vii) Company shall
submit sign plans including site plan location and elevations for City's review and approval of any
amendment to the sign program for the Riding Park Parcel as exists on the Effective Date of this
Agreement.
2.1.10 Rule. and Regulations: Company shall comply with City 's rules and
regulations for the Property ("Rules and Regulations"), a copy of the current edition of which is
attached hereto as EXHIBIT D ; provided, City shall have the right to revise and modify the Rules
and Regulations from time to time in City's sole and absolute discretion and Company shall comply
therewith upon receipt of a copy thereof.
2.1.11 Companv Responsible for Riding Park Parcel Operating Expenses .
Company shall be responsible for payment of all costs and expenses of whatever type or nature,
incurred with respect to or otherwise arising from Company's performance of the Riding Park Parcel
Management Services including, but not limited to: (i) all charges for heat, water, gas, electricity,
and any other utilities (and City shall not be responsible or liable for any intenuption in or curtailment
of any utility service); (ii) all costs associated with preparing the Riding Park Parcel for, and holding,
the activities/events thereon that are Permitted Uses including, but not limited to, all licenses and
pennits; (iii) all taxes, fees, assessments, levies, fines,judgments, claims, charges, costs of defense of
lawsuits, attorney fees, and expert witness fees; (iv) all employee, personnel, and labor costs
including all salaries, wages, benefits, pension contributions, health care costs, and all other such
costs; (v) costs of maintaining the Riding Park Parcel in a manner, and at a level, necessary to insure
the ongoing use of the Riding Park Parcel during and after the Management Term for the Permitted
Uses; (vi) all marketing, advertising, publicity, and related costs to promote the activities and events
that are Permitted Uses on the Riding Park Parcel; (vii) all office management costs to operate the
Riding Park Parcel including but not limited to computers, telephone, software, and accounting and
payroll programs, (viii) the cost to repair improvements on the Riding Park Parcel; (ix) insurance
premiums; and (x) contracts necessary to operate and maintain the Riding Park Parcel (collectively,
the "Riding Park J>arcel Operating Expenses"). If City should (but is under no obligation to) pay
for any of the Riding Park Parcel Operating Expenses due to Company's failure to make time
payments thereof, Company shall reimburse City within thirty (30) days of receipt of the invoice for
any such payments made by City on behalf of Company. If such payment is not received within
such tlurty (30) day period, interest shall accrue on the outstanding balance due at the maximum legal
rate then in effect.
2.1.12 Riding Pa.-lt Parcel Management Fee. City and Company acknowledge
and agree that in light ofthe purpose of this Agreement to provide equestrian, sports, and community
services to third parties, the source of gross revenue derived from operations on the Riding Park
Parcel is fees paid by third party users. Thus, during the Management Tenn of this Agreement, City
shall pay Company a management fee ("Riding Park Parcel Management Fee") based on
percentage of gross revenues received by Company from the Riding Park Parcel Management
Services including but not limited to: facility rentals and other rental income, vendor fees, stalls, R V
fees, parking fees, food and beverage concessions, horse and equestrian shows, horse events,
tournaments, ·special events, group events, sports events including but not limited to soccer and
lacrosse, taxable sales, nontaxable sales, proceeds of insurance covering loss of gross revenues
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including but not limited to business interruption insurance or similar types of insurance, and any
amount received by Company in connection with any claim, demand, or lawsuit to replace or
augment Gross Revenues, with all gross revenues identified and recorded in accordance with
generally accepted accow1ting principles ("Gross Revenues"). Gross Revenues shall not include
sales taxes, excise taxes, gross receipts taxes, and other similar taxes imposed upon the sale of food,
beverages, merchandise, or services and paid to the appropriate taxing authority, whether added to or
included in the selling price. The percentage of Gross Revenues to be paid by City to Company
("City Management Fee J>ayment Percentage") shall be as follows:
AMOUNT OF TOTAL GROSS CITY RIDING PARK PARCEL
REVENUES MANAGEA1ENT FEE PAYMENT
PERCENTAGE
$0.00 to and including $600,000. 66.66%
For each dollar of Gross Revenues over 90%
$600,900 to and including $850,000.
For each dollar of Gross Revenues over 97.5%
$850,000 to and including $1,200,000.
For each dollar of Gross Revenues over 95%
$1 ,200,000.
2.1.12.1 Quarterly Pavment of Riding Park Parcel Management
Fee. Within ten (1 0) days after the end of each quarter during the Management Term, Company
shall report the Gross Revenues for the quarter just ended to the City's Chief Financial Officer. The
City's ChiefFinancial Officer shall review and reasonably verify the amount reported and shall notify
Company of acceptance or rejection ofthe information provided. The City's Chief Financial Officer
may request additional infonnation. If the information is rejected, Company, City Manager, and
City's Chief Financial Officer shall meet and confer in good taith to resolve any objections or
concerns. Once the information is accepted by the City's Chief Financial Officer, City shall make a
payment toward the Riding Park Parcel Management Fee by applying the above City Management
Fee Payment Percentage to the total Gross Revenues for the year to date through the end of the
reporting quarter. For illustration purposes only, if the Gross Revenues achieved during Quarter #1
were $500,000, the payment made to Company by the City after the end of Quarter #I would be
$333,300, and if the Gross Revenues achieved during Quarter #2 were $400,000 (i.e., total Gross
Revenues through Quarter #2 of $900,000), the payment made to Company by the City after the end
of Quarter #2 would be $340,410. At the end of Quarter #4, which corresponds to the end of the
Management Term, and notwithstanding any other term or provision in this Agreement to the
contrary, this Agreement shall remain in effect for the purpose of the fmal quarterly payment
following the end of Quarter #4 and for purposes of any necessary or required reconciliation and
accounting to "true up" the final payment so that the total Riding Park Management Fee for the
Management Term has been accurately determined, reconciled, and paid.
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2.1.12.2 Method of Jlayment of Ridiug Pari\ Management Fee. In
lieu of Company transfening all Gross Revenues to the City and then receiving the quarterly Riding
Park Parcel Management Fee payments, City shall effect payment of the quruterly Riding Park Parcel
Management Fee amount by an offset against the Gross Revenues and Company shall pay City the
remainder by check in good and immediate funds no later than seven (7) days after receipt of
notification from the City Manager or City's Chief Financial Officer or authorized designee that the
report of Gross Revenues for the applicable calendar quarter has been accepted. Using the srune
example for illustration purposes only as set forth in Section 2.1.12.1, if the Gross Revenues for
Quruter #1 are $500,000, the City's Riding Park Pru·cel Management Fee payment to Company
would be $333,300 and thus, pursuant to this Section 2.1.12.2, Company shall pay the difference to
City which, in this example would be the amount of $166,700.
2.1.13 Ownership of Improvements and Personal Propertv . All
non-permanent structures and improvements on the Riding Park Parcel installed by Company
during the tenn of this Agreement and all fixtures, furnishings, and equipment and operating
inventory purchased by Company during the term ofthis Agreement shall be considered property
owned by Company <md shall be removed by Company at the Te1mination Date unless other
anangements are made with City.
3.0 TERMINATION
3.1 Company' Right to Terminate Agreement. In addition to any other rights of
termination afforded to Company in this Agreement, Company shall have the right to tenninate this
Agreement prior to the end of the Management Tem1 upon any of the following events:
(a) A material breach by City and only upon not less than thirty (30) days' prior
written notice to the City which notice shall specifY the material default. Upon receipt of such
notice, City may, but shall not be obligated to, effect to remedy of such default within such thirty (30)
day period; provided, however, that such cure period shall be extended for such material defaults that
cannot reasonably be cured within such thirty (30) day period provided City has commenced such
cure within the thirty (30) day period and diligently prosecutes such cure to completion.
(b) Loss of cunently available water supply to the Riding Park Parcel from
adjoining Blenheim Farms which water supply is not readily replaceable at comparable cost, and only
upon not less than thirty (30) days' prior written notice to the City. Upon receipt of such notice, City
may, but shall not be obligated to, remedy the loss of water supply within such thirty (30) day period,
which may include providing water to the Riding Park Parcel from another source, in which case the
Parties agree to meet and confer in good faith to adjust the Riding Park Parcel Management Fee to
address any increased costs associated with an alternative water supply.
(c) Loss of Company facilities located on the Riding Park Parcel due to
environmental or other property constraints including but not limited to natural disasters, and only
upon not less than thirty (30) days' prior ·written notice to the City of Company decision to tetminate
specifYing the environmental or other property constraint. Upon receipt of such notice, City may,
but shall not be obligated to, effect to remedy of the environmental or other property constraint within
such thirty (30) day period, in which case the Parties agree to meet and confer in good faith to adjust
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the Riding Park Parcel Management Fee to address any increased costs associated with City's
remedy.
3.2 Citv's Right to Terminate Agreement. In addition to any other rights of
tennination afforded to City in this Agreement, City shall have the right to terminate this Agreement
prior to the end of the Management Term upon any of the following events:
(a) A material breach by Company and only upon not less than thirty (30) days'
prior written notice to the Company which notice shall specifY the material default. Upon receipt of
such notice, Company may, but shall not be obligated to, effect to remedy of such default within such
thirty (30) day period; provided, however, that such cure period shall be extended for such material
defaults that cannot reasonably be cured within such thirty (30) day period provided City has
commenced such cure within the thirty (30) day period and diligently prosecutes such cure to
completion. Failure to timely take corrective action as provided in Section 6.1 shall constitute a
material breach.
(b) The insolvency of Company or if Company is adjudicated a bankrupt or
Company institutes any proceedings under any law relating to bankruptcy wherein Company seeks to
be adjudicated a bankrupt or to be discharged of its debts or to effect a plan of reorganization, or the
filing of an involuntary petition by any of Company's creditors seeking the rehabilitation, liquidation,
or reorganization of Company under any law related to bankruptcy, insolvency, or other relief of
debtors, and, in the case of involuntary actions, the failure to remove or discharge the same within
sixty ( 60) days of such filing.
(c) City and Company acknowledge and agree that the Prope11y was acquired
with the proceeds of tax-exempt bonds and this Agreement is required to be complim1t with
applicable provision of the Internal Revenue Code and implementation IRS Regulations, including
but not limited to Revenue Procedure 97-13. If, and upon, City's receipt of a dete1mination from a
qualified bond counsel, the Trustee for such bonds, the Internal Revenue Service, or other qualified
person or entity, that this Agreement is not a compliant management agreement, City shall have the
unqualified and unilateral right to tem1inate this Agreement prior to the end of the Management Term
upon thirty (30) days prior \Vritten notice to Company. City shall incur no liability due to such
termination except that upon such termination, City shall be obligated to pay Company the Riding
Park Parcel Management Fee, computed as provided in this Agreement, eamed by Company through
the date Company ceases performance under this Agreement pursuant to such notice of termination.
City and Company agree to meet and confer in good faith to determine such final payment amounts.
(d) City sells or transfers the Riding Park Parcel m1d a condition of such sale or
transfer is the termination of this Agreement with respect to the applicable parcel prior to the end of
the Management Term; provided that City provides Company at least ninety (90) days prior written
notice of the termination of this Agreement (or portion thereof affecting the applicable parcel) due to
the sale or transfer, and upon such tem1ination City shall pay Company the pro-rata amount of Riding
Park Parcel Management Fee eamed by Company to the date of termination.
(e) If all of the Riding Park Parcel (or a sufficient portion thereof so as to make
infeasible, in the City's reasonable judgment, the continued operation of the Riding Park Parcel for
the purposes for which Company is performing the Riding Park Parcel Management Services ), shall
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be taken through the exercise (or by agreement in lieu of the exercise) of the power of eminent
domain, then upon the earlier of (i) the date that City shall be required to surrender possession of the
Riding Park Parcel or of that substantial portion of the Riding Park Parcel or (ii) the date when the
Riding Park Parcel is no longer open and available for operations, this Agreement \vith respect to the
Riding Park Parcel shall tenninate and neither Party shall have any further obligation to the other
Pmty \vith respect to the applicable parcel, except with respect to liabilities accruing , or based upon
events occurring, prior to the effective date of such tennination, including but not limited to payment
of the Riding Park Parcel Management Fee earned by Compm1y to the date of such tennination, as
applicable.
(f) If the Riding Park Parcel should be destroyed or substantially da111aged by
fire, flood, acts, or God, or other casualty, City, by written notice to Company within sixty (60) days
following the occurrence of such event, shall have the right to terminate this Agreement with respect
to the Riding Park Parcel on the basis that City does not choose to rebuild or restore the applicable
parcel, and in such event neither Party shall have any further obligation to the other Patty under this
Agreement with respect to the applicable Parcel , except \vith respect to liabilities accruing, or based
upon events occLming, prior to the effective date of such tennination, including but not limited to
payment of the Riding Park Parcel Management Fee earned by Company to the date of such
termination.
(g) If there is a disruption in Compa11y's operation of the Riding Park Pm·cel due
to wm·, sabotage, riot or acts of civil disobedience, acts or omissions of governmental agencies
(except acts of governmental agencies including, but not limited to, the City taken in accordance with
this Agreement), accidents, fires, explosions, floods , earthquakes, other acts of God, strikes, labor
di sputes, shmtages of materials, or any other event not within the control of Company, City, by
written notice to Company within thi1ty (30) days following the occutTence of such event, shall have
the right to terminate this Agreement with respect to the Riding Park Parcel, and in such event neither
Party shall have any futther obligation to the other Party under this Agreement with respect to the
applicable Parcel, except with respect to liabilities accming, or based upon events occurring, prior to
the effective date of such termination, including but not limited to payment ofthe Riding Park Parcel
Management Fee earned by Company to the date of such termination.
4.0 DAMAGE; LIENS
4.1 Company to Repa ir Pro p erty. Company shall repair at1d restor~ any damage,
destmction, or casualty to any structures, improvements, flxtmes and/or installations , soil, plants,
crops, fences, timber, habitat, livestock and/or any other natural resources on or about the Property
arising from Company's performance of the Riding Park Parcel Management Services including by
any other user of the lUd ing Park Parcel with Company's consent All repair and restoration work
shall be subject to (i) the preparation by Company, and approval by City, or a restoration plan for the
Riding Park Parcel and (ii) oversight by City of any restoration work completed on the Riding Park
ParceL The obligations of this Section shall survive termination of this Agreement.
4.2 No Liens. Company shall not permit to exist or otherwise to be enforced against the
Riding Park Parcel , or any portion thereof, any mechanics', materialmen's, contractors', or other
liens ("Liens") arising out of the acts or omissions of Company hereunder. Company hereby
indemnifies and agrees to City and any affected pmtion of the Riding Park Parcel free and hannlcss
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from all liability for any and all such Liens, together with all costs and expenses, including, but not
limited to, attorneys' fees, expeti witness fees, and court costs reasonably incuned by City in
com1ection therewith. If any such Lien shall at any time be recorded against the Riding Park Parcel
(or any other portion of the Property) as a result of the foregoing, and Company shall fail, within
twenty (20) days after such recording, to either (i) pay and discharge the underlying claim and cause a
lien release to be recorded, or (ii) furnish to City a surety bond or other security reasonably
satisfactory to City protecting City against liability for such Lien and holding the affected property
free from the effect of such Lien, the City may, but not be obligated to, take such action or pay such
amounts as may be necessary to remove such Lien, and Licensee shall immediately pay City the
amount so expended by City, together with interest thereon at the rate often percent (1 0%) per ammm
accruing from the date of such payment by City until paid in full by Company, or in the altemative
City may offset the amount due from one or more Riding Park Parcel Management Fees. The
obligations of this Section shall survive termination of this Agreement.
4.3 Companv Respon ·ible for Acts of Employee , Agent·, and In itec . Company
shall be responsible for and liable for all acts and omissions of all of Company's agents, employees,
representatives, and any other person or party entering on the Property under the authority or color of
this Agreement. In addition to any indemnification by Company in favor of City in this Agreement,
Company shall indemnify, defend, and hold hannless City and all of its elected and appointed
officials, officers, directors, agents, representatives, managers, and employees from and against all
claims arising out of or related to the foregoing described acts and omissions for which Company is
responsible and liable, and including any costs and expenses, including, but not limited to, attorneys'
fees, expert witness fees, and court costs reasonably incurred by City in connection therewith. The
obligations of this Section shall survive tem1ination of this Agreement.
4.4 Company Respon ible for Hazardou Sub tanccs and Remedintion. Company
shall not use, store, or transport any hazardous substances on or onto the Property. Company shall
repair, remediate and/or restore any condition attributable to or arising from same. All such work
shall be performed in accordance with permits obtained from applicable governmental agencies.
Upon the expiration of the Management Tenn or earlier termination of this Agreement, Company
shall direct, and pay for, the preparation of a Phase I environmental assessment report for the
Property, and for a Phase II environmental assessment if such be required. Company shall be
responsible for all cleanup and remediation work which work shall be subject to the review and
verification of City's environmental consulting firm. The obligations of this Section shall survive
temunation of this Agreement.
5.0 INDEMNIFICATION; INSURANCE; CLAIMS
5.1 Indemnification. Company shall indemnify, defend, and hold harmless City and all
of its elected and appointed officials, officers, directors, agents, representatives, managers, and
employees, from and against all liabilities, claims, damages, losses, and expenses of any nature
whatsoever (including, but not limited to any costs or expenses for attomeys' fees, expert witness
fees, court costs, and all incidental, consequential, economic, or punitive damages) arising out of
Company's use of the Property or otherwise arising out of the acts or omissions of Company
hereunder. As a material part of the consideration for this Agreement, Company waives any and all
claims and demands against Company for any and all such injury or damages and all other claims of
any nature whatsoever. The obligations of this section shall survive termination of this Agreement.
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5.2 Insurance. Company shall maintain from and after the Effective Date and through
the Tennination Date comprehensive general commercial liability insurance including automobile
coverage and blanket contractual liability coverage, with respect to the Property and ingress to and
egress from the Riding Park Parcel, the pertcnmance of the Riding Park Parcel Management Services,
including personal injury and property damages for not less than Two Million Dollars ($2,000,000)
combined single limit bodily injury, death, and property liability per occurrence, or the cun·ent limit
of liability carried, which is greater, and workers' compensation insurance to protect Company and
City from any claim made or action brought by any person or entity arising out of or related to
Company's use of the Prope1iy or arising out of or connected in any way with the acts of Company
undertaken pursuant to this Agreement. Company sh~ll provide that the policy or policies or
insurance shall be primary and shall name City as an additional insured, with the provision that any
other insmance carried by City shall be noncontributing, and shall waive all rights of subrogation.
Company shall furnish City with a Certificate of Insurance and Additional Insured Endorsement as
evidence of such policy or policies. Both the Certificate of Insurance ;;md Additional Insured
Endorsement shall name City as additional insured and contain language that specifically states that
each policy or policies of Comprehensive or General Commercial Liability Insurance shall be
primary and noncontributing with any insurance canied by City. All cetiificates of insurance and
endorsements shall be signed by a person authorized by the insurance company to bind coverage on
its behal£ The insurance companies providing the policies shall be qualified to do business and in
good standing in California. Neither the procuring of insurance by Company pursuant to this
Section, nor the delivety by Company to City of certificates of insurance and endorsements
evidencing such insurance coverages, shall be construed as a limitation of Company's indemnity
obligations as set forth in this Agreement. Company shall insure that all contractors and/or
subcontractors perfonning any work on the Propetiy shall comply with the above-referenced
insurance requirements prior to entty or work upon the Riding Park Parcel.
5.3 Claims. Company shall notify City of any claims or lawsuits relating to the Riding
Park Parcel within three (3) days after Company receives notice of such claims or lawsuits. Any
legal fees paid by Company and charged as a Riding Park Parcel Operating Expense shall be for legal
services directly related to the Riding Park Parcel and shall not include any Company corporate
overhead or administrative fee or charge. The City Manager shall have the right to pre-approve any
legal counsel retained by Company to defend the City, and to approve all legal bills incun·ed in such
defense.
6.0 CITY REVIEW ANO EVALUATION
6. l Riding Park Parcel Operation and Maintenance Evaluation. City shall be
permitted to periodically, in its sole discretion, to evaluate Company's perfotmance of the Riding
Park Parcel Management Services to determine conformance to the requirements of this Agreement.
In the event of any deficiency in Company's perfonnance, City shall provide Company with a written
notice of deficiency identifYing the deficient items or issues. Upon receipt, Company shall
promptly, but in no event more than five (5) days, notify City in writing of the conective actions to be
taken and shall con·ect such deficiency within fifteen (15) days thereafter, or for such deficiencies
which are not reasonably capable of being corrected within such fifteen (15) day period (which shall
not include delay merely due to an unwillingness to expend money), Company shall commence the
correction within such fifteen (15) day period and shall diligently prosecute the correction to
completion. The cost of all corrective actions shall be a Riding Park Parcel Operating Expense.
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6.2 City Acce · to Riding Park Parcel. City shall have the right to enter upon the
Riding Park Parcel at any time to inspect the premises and conduct the review and evaluation
described in Section 6.1; provided, however, that City shall not (except for any public safety or health
emergencies) disrupt Company's operations or any events or activities occurring at that time on the
Riding Park Parcel.
7.0 NOTICES
Any notices which either Party may desire to give or may be required to give to the other
Party under this Agreement must be in writing and may be given either by (a) personal service, or
(b) delivery by a reputable document delivery service, such as but not limited to, Federal Express,
which provides a receipt showing date and time of delivery, or (c) mailing in the United States
Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party
as set forth below or at any other address as that party may later designate by notice:
Tfto Company (if by mail):
If to Company (ifby personal delivery
or document delivery service):
Ifto City:
8.0 BOOKS AND RECORDS; INSI>ECTION
Mr. Robert Ridland
P. 0. Box 609
San Juan Capistrano, CA 92693
Mr. Robe11 Ridland
Blenheim Facility Management, LLC
30753 La Pata Road
San Juan Capistrano, CA 92675
City Manager
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
8.1 Books and Recot·ds. Company shall keep full and accurate books of account and
such other records as are necessary to reflect the results of the Riding Park Parcel Management
Services. All books and records of Company for the Riding Park Parcel shall be located either at
Company's offices on the Riding Park Parcel or at another location in the City disclosed in writing
to the City Manager. All accounting records shall be maintained in accordance with generally
accepted accounting principles. All such books, records, and reports shall be maintained
separately fi·om other facilities operated by Company. Company agrees to maintain reasonable
and necessary accounting, operating, and administrative controls relating to the financial aspects
of the Riding Park Parcel and such controls shall provide checks and balances designed to protect
the Riding Park Parcel, Company, and City. Company shall maintain all financial and accounting
books and records for a period of at least four ( 4) years after the Termination Date of this
Agreement, and City shall have the right to inspect and audit such books and records during such
period as provided in Section 8.2 below.
8.2 Inspection. Upon seven (7) days prior written notice to Company, which notice
shall set forth the date and time that City desires to inspect Company's books and records as
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pe1tains to this Agreement, City or its authorized agents, auditors, or representatives shall have the
right during normal business hours to review, inspect, audit, and copy the books, records, invoices,
deposit receipts, canceled checks, and other accounting and financial information maintained by
Company in connection with the Riding Park Parcel Management Services. All such books and
records shall be made available to City at the Riding Park Parcel unless City and Company agree
upon another location. City, at its own expense, shall have the right to retain an independent
accounting firm to audit the books and records of the Company as it pertains to this Agreement on
an annual basis.
8.3 Disclo ure. City agrees to treat all books, records, financial reports, and, financial
documents, including the Gross Revenues reports provided to the City's Chief Financial Officer
pursuant to Section 2.1.12.1, as proprietary corporate financial records not subject to disclosure
under the California Public Records Act pursuant to Government Code Section 6254.15, except as
may be required to be disclosed by comt order. Company and City agree that, notwithstanding
the foregoing, this Agreement and all books, records, reports, and documents provided by
Company to City under this Agreement are not subject to that ce1tain Confidentiality Agreement
between Company and City dated November 2, 2011. City shall notify Company within three (3)
business days of notice to City that a third party has threatened to seek or is seeking a court order to
compel disclosure of such corporate financial records and Company shall have the right, at its cost,
to seek a court order barring such disclosure. Company shall indemnify, defend, and hold City
harmless from any claim, action, demand, or judgment, including but not limited to City's actual
attorney fees, arising out of or related to the refusal by the City to disclose to a third pmiy a
corporate financial record submitted by Compm1y to City. The defense of any action seeking
disclosure of Company's corporate financial records shall be at Company's expense and handled,
at Company's option, either by legal counsel acceptable to the City Attorney or by the City
Attorney's Office at the rate of $375 per hour.
9.0 MISCELLANEOUS
9.1 Contract Administration. City has designated the City Manager as the
individual who is responsible for administering this Agreement on behalf of City. The City
Manager may designate a member of his or her staff to serve as the City Manager's designee to
can-y out the City Manager's responsibilities in administering this Agreement. Company has
designated Meli ' a Brandes as the individual who is responsible for administering this
Agreement on behalf of Company. Compm1y shall notify the City Manager in writing if another
individual has replaced the foregoing designated person as the person responsible for
administering this Agreement on behalf of Company. The Parties acknowledge that except as
otherwise expressly provided herein (a) the City Manager has the authority to approve or consent
to those matters identified in this Agreement as requiring City's approval or consent and to make
all other decisions on behalf of City regarding the administration of this Agreement (except where
City Council approval is expressly required herein), m1d (b) Company's foregoing designated
person or such other individual designated by Company in writing to City has the authority to
approve or consent to those matters identified in this Agreement as requiring Company's approval
or consent and to make all other decisions on behalf of Company regarding the administration of
this Agreement. City's management direction to Company shall be given by the City Manager or
City Manager's authorized designee. In addition to such other authorizations granted the City
Manager in this Agreement to act on behalf of City, the City Manager shall have the authority, in the
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event of a dispute involving the interpretation of the tenus and provisions of this Agreement, to
reasonably interpret the terms and provisions ofthis Agreement on behalfofCity.
9.2 Company Is Independent Contractor. Company is and shall at all times remain as
to the City a wholly independent contractor. Nothing contained in this Agreement shall be
construed to be or create a partnership or joint venture between City and its successors and assigns,
on the one part, and Company and its successors and assigns, on the other part. The personnel
performing the services under this Agreement on behalf of Company shall at all times be under
Company's exclusive direction and control. Neither City nor any of its officers, officials,
employees, or agents shall have control over the conduct of Company or any of Company's officers,
employees, or agents. Company shall not at any time or in any manner represent that it or any of its
officers, employees, or agents is in any manner officers, officials, employees, or agents of the City.
Company shall not incur or have the power to incur any debt, obligation, or liability whatever against
Company, or bind City in any ma1mer. No City employee benefits shall be available to Company in
connection with the performance of this Agreement. Except for the Riding Park Parcel Management
Fee paid to Company as provided in this Agreement, City shall not pay compensation to Company
and shall not be liable for any salaries, wages, or other compensation to Company for performing
services hereunder for City. City shall not be liable for compensation or indemnification to
Company for injury or sickness mising out of performing services hereunder.
9.3 Contract and Ag•·ecmcnts. Except as provided below, contracts and agreements
entered into by Company from and after the Effective Date of this Agreement that in any manner
relates to Company's performance of the Riding Park Parcel Management Services (including
without limitation professional contracts, contracts for maintenance and repair services, pest control,
supplies, and landscaping services, and agreements for tourn3lllents, and group functions), shall not,
with respect to the Riding Pa1·k Pa1·cel Management Services, extend beyond the Termination Date of
this Agreement, or if the date for performance under such contract is, with respect to the Riding Park
Parcel Management Services, after the Termination Date of this Agreement, then Company shall
obtain the prior written approval of the City Manager for such agreements and City agrees, upon
expiration or earlier termination of this Agreement, to assume all such agreements it has so approved.
9.4 Citv Financing. In the event City desires to obtain bond financing or other
financing or to refinance existing bond or other financing ("City Financing") which this Agreement
affects, Company agrees to 3lllend this Agreement at any time and from time to time, if, in the
opinion of the City's legal counsel, this Agreement must be amended to comply vvith laws,
regulations, rules, or procedures applicable to the City Financing, a11d any refinancing or refunding
thereto, including but not limited to those laws, regulations, rules, and procedures applicable to or
promulgated by the Internal Revenue Service. City and Company shall meet and confer in good
faith to effect such written an1endment to this Agreement as necessa1y to insure the Agreement is in
compliance as required by the preceding sentence, which amendment(s) shall be affixed as an
attachment to this Agreement; provided, however, that in the event City and Company disagree on
the nature or scope of the required amendment(s), either party shall have the right to tenninate this
Agreement upon thirty (30) days written notice to the other party and upon such termination neither
Company nor City shall have any further rights or obligations hereunder, except with respect to
liabilities accruing, or based upon events occurring, prior to the effective date of such termination,
including but not limited to payment of the Riding Park Parcel Management Fee eamed by Company
to the date of such termination.
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9.5 o A signment Without City Consent. Company shall not assign this
Agreement without the prior written consent of the City Manager which may be given or withheld
in the City Manager's sole and absolute discretion. Any assignment by Company, whether or not
requiring the prior consent of City Manager, shall not be effective unless and until Company and
such assignee execute an assignment and assumption in a form acceptable to the City Attorney. It
is understood and agreed that any consent granted by the City Manager to any such assignment by
Company shall not be deemed a waiver of any consent required under this Section as to any future
assignment. Any assignment by Company of this Agreement in violation of the provisions of this
Agreement shall be null and void and shall result in the termination of this Agreement. In
addition to any other remedies available to the parties, the provisions of this Section shaH be
enforceable by injunctive proceeding or by suit for specific performance.
9.6 Compliance With l An ; Licen c and Pcm1it . Company shall comply with all
applicable laws of governmental bodies having jurisdiction with respect to the Riding Park Parcel and
Company's performance of this Agreement. Company shall, at its expense, procure and maintain all
licenses, permits, and approvals required to be obtained by it to perform the work under this
Agreement. Company hereby expressly acknowledges and agrees that City has not previously
affirmatively represented to Company, in writing or otherwise, in a call for bids or otherwise, that
any work covered by this Agreement is not a "public work," as defined in Section 1720 of the
Labor Code. Company shall indemnify, protect, defend and hold harmless the City and its elected
and appointed officials, officers, employees, agents, and representatives, with counsel reasonably
acceptable to City, from and against any and all loss, liability, damage, claim, cost, expense and/or
"increased costs" as defined in Labor Code Section 1781, as amended from time to time, including
reasonable attorney fees, court and litigation costs, and fees of expert witnesses, which results or
arises in any way from (1) the noncompliance by Company of any applicable local, state and/or
federal law, including, without limitation, any applicable federal and/or state labor laws
(including, without limitation, if applicable, the requirement to pay state prevailing wages and hire
apprentices); (2) the implementation of Labor Code Section 1781, as the same may be amended
from time to time, or any other similar law; and/or (3) failure by Company to provide any required
disclosure or identification as required by Labor Code Section 1781, as may be amended from time
to time, or any other similar law. Company shall bear all risks of payment or non-payment of
prevailing wages under California law and/or the implementation of Labor Code Section 1781, as
the same may be amended from time to time, and/or any other similar law. "Increased costs," as
used in this Section, shall have the meaning ascribed to it in Labor Code Section 1781, as the same
may be amended from time to time. The foregoing indemnity shall survive termination of this
Agreement.
9.7 No Undue Influence. Company declares, represents, and warrants that no undue
influence or pressure was used against or in concert with any officer or employee of the City in
connection with the award, terms, or implementation of this Agreement, including any method of
coercion, confidential financial arrangement, or financial inducement. No officer or employee of
the City shall receive compensation, directly or indirectly, from Company, or from any officer,
employee, or agent of Company, in connection with the award of this Agreement or any work to be
conducted as a result of this Agreement.
9.8 Covenant Against Discrimination. Company covenants that, by and for itself, its
heirs, executors, assigns, and all persons claiming under or through them, that in the performance of
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this Agreement there shall be no discrimination against or segregation of, any person or group of
persons on account of any impermissible classification including, but not limited to, race, color,
creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
9.9 NonJiability of City Officer anc.J i mnloyees. No officer, official, employee,
agent, representative, or volunteer of the City shall be personally liable to the Company, or any
successor in interest, in the event of any default or breach by the City or for any amount which may
become due to the Company or to any successor-in-interest, or for breach of any obligation of the
terms of this Agreement.
9.10 Governing Law; Attorney Fees; Litigation Matters. The internal laws of the
State of California, without regard to principles of conflicts of laws, shall govern the interpretation
of this Agreement. In addition to any other rights or remedies, either party may take legal action, in
law or in equity, to cure, conect or remedy any default, to recover damages for any default, to compel
specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any
other remedy consistent with the ptrrposes of this Agreement. Notwithstanding anything in this
Agreement to the contrary, Company's monetary damages shall be limited to the Riding Park Parcel
Management Fee and in no event shall Company be entitled to economic or consequential damages
or to punitive damages. In the event of any litigation arising from or related to this Agreement, the
prevailing party shall be entitled to recover all reasonable costs incurred, including court costs,
reasonable attorney fees, expert witness fees, and other related expenses. The Superior Court of
the County of Orange shall have exclusive jurisdiction over any litigation between the parties
hereto concerning this Agreement. Service of process on City shall be made in the manner required
by law for service on a public entity. Service of process on Company shall be made in any manner
pennitted by law and shall be effective whether served inside or outside of Califomia.
9.11 Right and Remedies Cumulative; Waive1·. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties
are cumulative and the exercise by either Party of one or more of such rights or remedies shall not
preclude the exercise by it, at the same or different times, of any other rights or remedies for the same
default or any other default by the other Party. No delay or omission in the exercise of any right or
remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a
waiver. A Party's consent to or approval of any act by the other Pruiy requiring the Party's consent
or approval shall not be deemed to waive or render unnecessary the other Party's consent to or
approval of any subsequent act. Any waiver by either party of any default must be in writing and
shall not be a waiver of any other default concerning the san1e or any other provision of this
Agreement.
9.12 Sever ability. In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a
valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall
not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement
which are hereby declared as severable and shall be interpreted to carry out the intent of the parties
hereunder unless the invalid provision is so material that its invalidity deprives either party of the
basic benefit of their bargain or renders this Agreement meaningless.
-17-
9.13 Interpretation. The terms of this Agreement shall be construed in accordance with
the meaning of the language used and shall not be construed for or against either patty by reason of
the authorship of this Agreement or any other rule of construction which might otherwise apply.
9 .14 No Relocation Right . Company shall have no rights under this Agreement for any
relocation assistance or benefits whatsoever upon termination of this Agreement, whether by
condemnation or otherwise, and Company expressly waives any right to such relocation benefits or
assistance it may have under any applicable laws, including but not limited to California Govermnent
Code Section 7260 et seq., the Relocation Assistance and Real Property Acquisition Guidelines set
forth at Title 25 California Code of Regulations Section 6000 et seq., the Uniform Relocation
Assistance and Real Property Acquisition Act set forth at 41 United States Code Section 4601 et seq .
and federal regulations set forth at 49 Code of Federal Regulations Part 24.
9.15 Survival of Covenants. Any covenant, term, or provision of this Agreement whlch
in order to be effective must survive the tennination of this Agreement shall survive any such
tem1ination.
9.16 Consents. Each party agrees that it will not unreasonably withhold any consent or
approval requested by the other pruiy pursuant to the tem1s of the Agreement, and that any such
consent or approval shall not be unreasonably delayed or qualified, except where such consent is
expressly stated as within the party's sole and absolute discretion.
9.17 Possessorv Interest. Pursuant to Califomia Revenue and Taxation Code Section
l 07.6, City hereby informs Company that this Agreement may create a possessory interest subject to
property taxation, and in such event Company may be subject to the payment of prope11y taxes levied
on such interest. Any property taxes so levied shall be solely a liability of Company not a liability of
City.
9.18 Representation and Warranties. The persons executing this Agreement on
behalf of each of the Parties hereto represent and wrnrant that (i) such Party is duly organized and
existing, (ii) he or she are duly authorized to execute rn1d deJiver this Agreement on behalf of said
Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this
Agreement, and (iv) that entering into this Agreement does not violate any provision of any other
Agreement to whlch said Party is bound.
9.19 Headings. The Article, Section, and Subsection headings contained in this
Agreement are for convenience and reference only and are not intended to define, limit or describe
the scope or intent of any provision of this Agreement.
9.20 Entire Agreement; Amendments. This Agreement contains the entire
understanding between the parties relating to the obligations of the parties described in this
Agreement. All prior or contemporaneous agreements, understandings, representations, and
statements, oral or written, are merged into this Agreement and shall be of no further force or
effect. This Agreement may be amended only by an instrument in writing approved by each of
the Parties hereto.
~ 18-
9.21 No Third Party Beneficiat'ies. No person or entity that is not a Party hereto shall
have no rights in or to this Agreement. This Agreement is strictly for the benefit of the Parties
hereto.
9.22 Time of the Essence. Time is of the essence of this Agreement. The parties
understand that the time for performance of each obligation has been the subject of negotiation by the
parties.
9.23 Exhibit lnco1·porated. All exhibits and attachments to this Agreement are
incorporated herein and made a part hereof.
9.24 Counterparts. This Agreement may be executed in counterparts which, when all
the Parties hereto have signed this Agreement, shall constitute one and same instrument.
9.25 Effective Date. The Effective Date of this Agreement shall be the latest of the dates
set next to the signature of the Parties hereto, which date shall be inserted into the preamble of this
Agreement.
[END--SIGNATURE PAGE FOLLOWS]
-19-
IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of
the day and year first written above.
"CITY"
Date'
CITYt SAN JUA~\~APlSTRANO
»t!t ;t'(lt . ./i:l!lff:c .tg~"";"-r-----
7 Sam Allevato, Mayor
APPROVED AS TO FORM:
R TAN I TUCKER, LLP
"COMPANY"
BLENHEIM FACILITY MANAGEMENT, LLC
Date B~~ Robett Ridland
Manager
lEND OF SIGNATIJRES-EXHIBITS FOLLOW]
]94/028428-00 19
6143924.9 -20-
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EXHIBIT A
DESCRIPTION OF THE PROPERTY, THE RIDING PARK PARCEL AND THE
. RIPARIAN RESOURCE AREAS
(See Attached)
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Riding Park AccaS& and Usa License · Exhibit A
EXHffiiTB
EXIDBIT "C" AND "D" OF GRANT DEED TO THE PROPERTY OUTLINlNG lJSE
RESTRICTIONS AND PERMITTED USES
(See Attached)
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082/21183021 .2
EXHIBIT C
USE RESTRICTIONS-PARCELS 7 AND 8
(C-1: Exhibit4.1-3ofRanch Plan EIR
C-2 : Section 111-H of PC Text
C-3: Section 111-J of PC Text)
[ATIACHED]
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Existing Land Uses in Planning Area 1
The Ranch Plan
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Exhibit 4.1-3
1" = 2,000'
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~ L [\(31-<IGUL .fUHA.L AND< HilER f::J(I!TrJNG Ai'JD ON -GO INO U:3ES
The purpose and intent of this Section is to allow tor uses c.ornpi:ltible with the
existing agricultural and low intensity nature uf the f<anch Plan PC area, and
consistent with the A 1 "General Agricultural" District F~egulations of Zoning Code
Section 7-9-55. These uses include non-agriculturE!! uses consistent with the open
space nature of agricultural uses. It is also intended tl1at these uses (agric:ultural
~mel non-C~gricultural) may be Gillowed as interim uses w i thin Ranch Plan PC
Planning Areas designated for future development.
·f. Agricultur~l Uses: The following existing , relocated and future farming and
ranching uses shall be allowed within any Plann ing Area, in addition to uses
allowed by the A 1 "General Agricultural" District Regulations per Zoning Code
Section 7-9-55, su bject to mitigation measures identified in the Ranch Plan Final
Program EIR 5il9, per the procedures described in Section III.H.3 hereof:
a) Grazing (cattle , horses, sheep , goats, etc .).
b) Farming (citrus farming, dry farming, and row crops) .
c/ Caretaker housing and related facilities in relation to on·going agricultural and
ranching operations, including the "Ranch House" residence located south of
Ortega Highway in Planning Area tO and the "Horse Ranch" residence at
33101 Ortega Highway in Planning Area 4.
cl) Employee quarters related to agricultural uses.
e) Livestock feeding ranches in compliance with applicable health and safety
regulations .
f) Pacl\ing plants for agncultura l products .
g) Permanent facilities For sale of agricultural products grown within the Ranch
Plan PC Area.
h) Apiaries (i f 150 feet from a s treet or h ighway, 40 feet fro m any prope rt y li ne
~ncJ:nore HH:l'l1 4 00 fget frcrr r ~rrccclrp t en-a~v-eN i ng)-:-~----~----·----· ·· ·-·
l~all(;h Plan PC Program Text ;:Js Approved November 8, 2004 by Ordinancu No . 1)4-iJ 14
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2. Existing Unez: The following existing uses shall be Hllowecl in uppropriF.Jte
locations throughout the l~anch 1=>1an PC Area, per the pror;euure:; in Sec.:tio11
111.1-U hereof:
1:1) Rancho Mission Viejo hRcldquarters ("Oficina") at 215131 ·1 Ortega Highway,
including a helipo1t.
b) Ladera construction offices at 288 '11-A Ortega Highway.
c) l~ancho Mission Viejo maintenance yard at 213672 Ortega Highway.
d) Ranching facilities also used periodically for recreational purposes (including
"Cow Camp" at 31471 Ortega Highway, and HAmantes Camp'' and "Campo
Portola'' within Planning Area ·1 0).
e) Communication transmitting, reception or relay facilities (including
AirTouch/PacBell Wireless, Bell South, Saddlebact< KSBR, SDG&E, and
SCE) ar-~d RMV Telecom anlenna sites.
f) Public/private utility buildings and structures.
g) Existing infrastructure facilities including but not limited to all ~xisting ranch
roads, pipelines and utilities . Of particular note, reconstruction of the San
Juan Creek crossing of roadways and utilities connecting Planning Area 3 to
Ortega Highway shall be allowed in the event of storm damage.
h} Wholesale nurseries (including Tree of Life Nursery, Color Spot Nursery, DM
Color Express Nurseries, Tru-GI'een Wholesale Nurseries and O 'Connell
Landscaping yard).
i) Commercial stables (including Oaks/Blenheim/Rancho Mission Viejo Riding
Park, Oaks Corrai/J. Irvine Smith, RJO Horse Ranch, St. Augustine's Training
Center and Stables.
j) Research and development testing fac ilities and a.::t ivities (including TRW ,
Northmp Grumman S-pace-Technology-and Propulsion-Testing Site):·
I() Waste disposal operations and related uses (including Solag Disposal, Tierra
Verde Industries and LEJ Pata Greenwaste ).
I) Storage of recreational vehicles, campers , trailers and boats .
rn) Recycling and transfer/materials l'ecovery facilities per Zoning Code Section
7-9-146.12 (including Elwes Materials Asphalt Recycling).
n) Surface mining and quarrying of rocl<, sand, gravel, aggregate, ea1th. cla y
and similar materials pe1· Zoning Code Section 7-9-'1 04 (including California
1-{wJch P!an PC Program Text ;os Approved November H, :l004 by OrrJin:mcP. No 04-014
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Portl811d 1-ernent/Ct:ltr:llin~) r'oCifi c; Concrete South, C~lifornia Silicci/Ogl~::by
f\lorton, T1·ansil Mixed C011Grete Company/City Concrete, Olsen l:lavingstone,
Inc. and Sierra Soils).
o) Resource mitigalion sites for the p res e rva tion or r eplace 1e nt of na ti ve.
riparian or other biological habitat, as approved by the a p pmpri a te reg ul atory
agency (e.g., Army Corps of Engineers. U .S. Fish & Wi lcllife Service C1:1 lifo rn ia
Department of Fish and Game and/or the County)
3. Proc;odures:
a . Continuation of Existing Uses
·1) Agricultural ancJ existing uses listerJ in Sectiont> III.H .'I and llf.H .2.,
1espectively, may continue in their present location(s) in perpetuity without
need for subsequent permitting or approval.
2) Any buildings, struc.iures or other facilities ut1li zed i n conne ction with an
established/existing use may be re paired, re pl aced o r m o di fied wit hout
obtaining new permits or approvals; provided, however, tha t any a nd all
construction activities pe1formed in furthera nce o f th e repair, re placemen t
and/or modification of said buildings, structures and facilities shall comply
with applicable building and safety codes.
3) In instances where a use listed in Sections III .H . 1 and III.H.2 is allowed
per a Use Permit, and that particular Use Perm i t is subject to a time
limitation, the Use Permit may be renewed administratively per approval of
the Director, PDS .
b. Expansion of Existing Uses
1) AgriCLiltural Uses -Any agricul tural us e lis ted in Secti on Ill H .1 ma y be
expanded without the need to obtain a pri or permit or othe r appro val fr o m
the County. Notwithstanding, expansion of an agri cultu ra l u se m ay
require the issuance or a permit o; o ther forma l a LJ thoriza tlon from a
let:leral-ur state· agency prior-to cornmenceme·nt o·r·use-TJf 1hr:r expanded
facility. Ad d itio nally, any cons truction activities per ·formed in furtherance
of the e xpande d use shall comply with applicable building and safety
codes .
2) Existing Uses -Any existing use identified in Section III.H.2 rnay be
expanded without the issuance of new County approvals or pe rmits ,
provided that
(a) Any expansion shal! fully comply with all e x istiny developrnent ancJ
permitting standard s for the particular use ;
R<Hrclr Pion PC Prour'"m Te x t as Approved NrJ'Iember 13. 2004 by OrcJinan c;e Nr), 04 ·014 Pnge f!S
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(b) All construction activities performed in flll themnGe of the uxpansicm ar8
conducted ir 1 accordance with applicC~ble building anc1 safely 1;otles;
and
(c) All necessary rermits am·lfor authorizations from applieahle fede1·~11 and
state agencies are obtained prior to commencement or use of t11e
Rxpandecl facility.
r;. r~eiOCcltion of Existing Uses
'I) Agricultural Uses -Any exisHng use identified in Section 111.1-1.1 tn~Y be
relocated within or throughout the Ranch Plan PC Area w it hout the need
for issuance of a new permit or other prior approval from the County .
Notwithstanding, relocation of an existing agricultura l use may require the
issuance of a permit or other forma l authorization from a state or federal
agency prior to the desired relocation.
2) Existing tJses -Any existing use identified in Section llll-1.2 may be
relocated within or throughout the Ranch Plan PC Area. provided that:
(a) A Site Devefopment Permit shall be required, per Zoning Administrator
approval. in accordance with the provisions of Zoning Code Sec;tion 7-
9-150.3(d);
(b) All necessary permits ancl/or authorizations from applicable federal and
state agencies shall be ob1a ined prior o relo.cation.
d . New Agricultural Uses: Consistent with the provis ions of Section III.H.'I,
above, new agricultural uses (as well as any authonzed uses iden tifie d within
the /\1 ''General Agricultural" D istrict) may be conducted with in any Planning
Area without the issuance of any Cou nty approvals or permits, provided that:
·1) All new facilities. structures and buildings shall comply with existing
development and design standards;
2) An-colistructio.n ·actiVitles perforrned .. irCCorlfi ectic:m with tM·~s·tcHtli ~timent· -·
of the new use(s) shall comply with applicable building and safely codes;
m1d
3) All necessary permits and/or authorizations from applicable federal and
state agencies shall be obtained prior to commencement of the new use.
1'1.nnch Plan PC ProqrrHn Tux! <IS Approved NovFnnllBr 8, 2004 !Jy OrcliniliJCe 1\lo 04 ·0'14
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rhe purpose (;J( ld intent of til iS Temporary Uses 1Jen11ilteci chaptel of lh<~ l{;md1 PIHfl
F)C Text is to list all temporcry use~ t~1at stmll be allowed within i:lll Pla1min~J An~a!>
•~11d u::;e categories (with th<~ exception of the Open Space (S8ction 111.1) catenary,
unless otherw1~e restricted below. Sair'l temporary uses include, hut are no! limiten
to:
·1. Construction activities (including the installation of construction offices noel the
.Jtorage of equipment and materials),
/. Construction office . Thc-J temporary use of a construution office d1~ring the
.-:on~truction of a main bLulding on the same site shall be permitted upon the
following conditions:
1:1 . A temporary construction office shall be removed or shall he converted to f.!
pcrm~tted use prior to the issuance of a c;ertificate of use and occupancy for
the mr1in building or buildings . If con s truction is pha:>ed over a length of time,
the permit may provide that certificates of use and occupancy may be issued
for completed buildings, e><cept the last buildings to be wmpleted, prior to
removal or conversion of the temporary use.
3. Continued use of an existing building during construction. The use of an existing,
lawfully established building may continue during construction or relocation of
another building on the same building site, in compliance with the following
rmvisions :
8 Conformity witll regulations. Prior to occupancy of a new building, the existing
building will be brought 1nto conformity with any adrtitional regulation rendered
applicable by the placement of any new building on the site. Conformity will be
nccomplished by removal, reconstruction, 1 elocation, conversion, change of
u se or c:my combination thereof.
b. GLiarantee of completion. The Director, PDS, shall require the landowner to
provicle e guarantee, which may include a bond, to ensure full compliance with
applicable regulations upon cornpletion of the new building or sooner if, in the
opinion of the Director, PDS, wmk perte~ining to the completion of all fL'Icilities
required by !aw is not being diligently pursued.
4 Temporary excavation/extraction of construction aggregate or construction
relatad mater.ials extractian.shaiLbe allowed .during constructlon..grading.and. on --
site cartilmovlng activities to fiiVlllule prujeci construction efficiencies and limit
long-range transportation of construction aggregate and construction related
:natel"ial subJect to all of tt1e following conditions:
iJ. ~)uch lernporary exc<:)vation/extractlon use would be inclllded in applicc1ble
grading or Site Development Perm1ts for a develo!)ment project and
consistent witr1 the Re:1nch Ple:H1 PC and Final Pruwarn EIR 5139.
b E xportation of any surplus excavated/extracted cnnstruction aqgregate or
construction-related materials s~talt be lirrnterl to private or public construction
IJrojects within the boundaries of the Ranch Plan PC Area.
c. Exportation of any surplus excavated/extracted construction aggregtlte or
cnnstruction related materials with in the pr-oject site shall be <>llowed only
l~a11Ch l''l8n PC Progmm Tezl as Arproved Nove:mbe1· 8, 2004 by Ortlinunct:~ 1\lo IJ4-014 Pcl\Je CJH
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Wilen <-lClUi:ll Wll~itf"UC!iOil \)1"8ding anci <~arthnlOVIrl~J activities have
commenced and sh<.1ll cease wl1en it is detenni110cl that construction gradir1g
and earthmoving activities have terminated, have bl:)en indefinitely
suspende<j, or clre no longer bei11g actively pu rsued for the cleveloiJment
proj~ct.
5 . Commercial coaches. A temporary commercial coach may be permitted subject
to c:lpproval of a Site Development Permit in accordance witll Section II.C, "Site
Development Permits," and subject to the following:
a. Tirne l1mitation A Site DeveiOJ..llnent Perrnit apJJiic<Jtion for a tempormy
Gommercial coach mey be approved fo1 · a maximum uf two (2) years frorn the
date of approvAl.
b. Cash bond. A cash bond in the amount of f1ve hL1ndred cloll<:~rs ($500.00) for
each commercial coach unit shall be posted w1th the Director, PDS . to
gLiarantee the removal of each commercial coach unit upon the expir<::~tion of
the Site Development Permit.
6 Christmas tree sales facility. A temporary Christmas tree safes facility shalf be
permitted subject to the following requirements:
7 .
a. Date of opening . A Christmas tree sa les fac il ity shall not be open for business
during any calendar year prior to the day after Thanksg iv i ng . However,
ministelial permits necessary to establish the business may be issued by
November 15 .
b . Merchandise to be sold. A permittee! Christmas tree sales facility shall not
engage in the safe of any merchandise not directly associated with Christmas
trees and Chtistmas decorations.
c. l::::lectlical permit. The applicant shall secure an electrical permit from t11e
Director, PDS if tl1e facility is to be energized .
d. Removal of facility. The facility shall be removed and the premises shall be
clearerJ of all debris and restored to the condition prior to the establishment of
the facility within fourteen { 14) days after Christmas .
e. Fire prevention standards. Each Christmas tree sales facility shall comply with
Fire prevention standards as approved and enforced by the County Fire Chief.
Halloween pumpkin sales facility~ A t~;~por~ry-~lallo~een p ~mpldn . sales fa hil ity
shall be permitted subject to the following requirements:
a . Date of opening. A Hallow~en pumpl<in sales Facility shall not be open for
business during any calent1ar year prior to October 4.
b . Merchandrse to be sold. A permitted Halloween pumpkin sales facility may
not seli items not directly associC:lted with purnplciiiS ancl Halloween
decorations .
c Electrical perrnit. The applicant shall secure e:m electrical permit fi'OIIl the
Director, IJOS if the facility is to be energized .
Rilnr:h PIEHl PC Pro!;Jr<:~m Text as i\piJrovecl November 13 , 2004 by Orc !inancc No. 04 -0 14
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d. f~c-J rnoval of facility. The fGicility shall be removed and the premis<~s cleared of
u/1 debris and restored to tile condition prior to the establishment of the fac;ilily
by November 14.
e Fim prevention ~Jtandards . The facility shall comr>IY with tire prevention
swndmds as approved and e11forced by the County Fi,·e Cl1ief.
Special o~1tdoor gatherings. The temporary use of property for special outdoor
gatl1erings inciL•ding, but not limited to, pageants. fairs, carnivals, rodeos and
other atl1letic, religious or entertainment events. Such activities are permitted.
without regard for other land use regulations to the contrary, in any open spar;e
I:Jianning Area in compliance with the following provisions:
a. Activities on property owned by or leased to the County and public road rights·
of-way may require an encroacl1ment permit issued by the Director, PDS .
b . Private outdoor gatherings conducted within open space <lreas (including
those open space areas regulated by Section 111.1) shall not be subject to the
re ~;t r ictions and requirements established in Zon ing Code Section 7-9-136.11,
"Special Outdoor Gatherings".
c. The temporary use may be permitted for a period not to exceed ten ('10)
consecutive days_ Events recurring more than four (4} times in a calendar year
are not c.;onsidered temporary.
d . The Director, PDS may requwe a cash bond or other guarantee for removal of
the temporary use, cleanup and restoration of the activity site within seven (7)
days of the activity conclusion .
e . Applications for permits/certifi<:Gltes required by subsectio ns "a ." cllld ''b."
above, shall be referred by the Director, PDS, to other affected County
agen cies as may be appropriate for review and comment.
f. Related issues including, but not limited to, police/securfty, food and water
supply, use of tents and canopies, sanitation facilities, medical services, noise,
signage, fire protection and traffic control shall be satisfactorily addressed as
may be required by the Director, PDS, Sheriff, Fire Chief, or Health Officer in
their administration of other County codes . Such otl1er codes may require the
applicant to obtain permits such as building, electrical, healtll and lent permits.
Farmers' Marl~ets and off-site sale of agricultural products. A temporary stand for
thtr sa le of seasonal agricultural· pro·docts-·not grown within the Ranch--Plan PC
AreC~ s haii be permitted subject ro rne following requ1rements :
a. Establishment of use/time limit . Prior to beginning sale of any product, the
applicant shall obtain a temporary Certificate of Use and Occupancy for land
trom the County. The Certificate shall be good for a period time of not to
exceed 90 days from date of issue.
b. Mecchandise to be sold. The stand shall be limiterJ to the sale of <lgricultural
products.
c. t:lectrical permit. The applicant shall secure an ek~ctrical permit from the
Director, PDS if the facility is to be energized.
Ram:h Plnn PC Prog13m Text as A pproved November IJ, 2004 by Ordinance No . 04 -014
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r:l. Rernuval of facility. The facility 8l'lall be removed sml the pret r11s~;s der·rrurJ or
.:~11 debris •~nd restored to th~ con clition prior to the establishr nerrt of tt1e facility
with ill fourteen ( 14) t.lays of the expiration of the time lim1!.
r:l. Fire rrevention stl'lndards. The facility sriall r,omply with fire preverrtion
standards as approved and enforced by tr1e County Fire Chief.
f. Site Development Penni!. In addition to the above requirements, an opprovecl
Site Development Perrnit in accordance with Section II .C, "Site Development
Permits,·· s11all be required.
Fireworks displays, as allowed by the Orange County Fire Authority.
Subject to the approval of the Director, PDS, a landowner may conduct such
other temporary uses upon his property as are consistent with tile purpose and
intent of this Section.
l~<:~nr.:h Pii:!r\ PC l~mgrarn Text as Approved r--Jover11ber 8, 2004 by Ordinsnce No . 04-014 Page 99
082.121183021 2
EXHIBITD
MAXIMUM ALLOWED TRAFFIC
[ATTACHED]
Maximum Allowed Traffic
Subject to all applicable governmental laws, rules and restrictions, Seller places no restriction on
City relating to the maximum number of trips to and from the Property on weekends and the following
holidays : New Years, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas .
The maximum number of trips during the weekday P.M. peak hours from the equestrian facilities ,
sports field complexes and other allowed uses on the Property shall not exceed a total of 203 trips
(comoined inoound and outbound bips). The City may allocate these trips among the allowed uses in its
discretion so long as the maximum number of trips specified above is not exceeded .
For purposes of calculating the number of trips from equestrian and sports field uses, a trip
generation factor of 1.0 P .M. peak hour trip for each permanent equestrian stall, and a factor of 20 .67
P.M. peak hour trips per sports field/soccer field shall be applied.
Explanatron of and Guide to Applicalion of the "Maximum Allowed Traffic" Restriction
Based on projections of future traffic assoclated with Planning Area 1 of the Ranch Plan, which
includes the Property, Seller's primary concern is the traffic to be generated during the weekday P.M.
peak hour (!&., 4:45p.m . to 5:45p.m.). For that reason, the maximum affowed traffic restriction set forth
above is keyed to the weekday P.M. peek hour. In short, the restriction requires the City to manage its
operations and events to ensure that traffic genf:rated from uses on the Property during that timtJ period
would not exceed 203 trips (combined inbound and outbound trips). As noted abova, the City may
allocate these trips among lhfJ allowed uses in its discretion so long as the maximum number ·oftrips
specified is not exceeded.
DB2 /21 183021 .2
Given the nature of the uses to be conducted on the site, which are expected to be primarily a
continuation of uses conducted on the Property over the past several years, it is not expected that the
traffic limitation would tmduly rfJstricl thfJ City's use of the Property. For example, most of the horse
shows typically occur over 2 or more days and are low spectator events, with traffic to and from those
activities being spread more or less evenly over those periods. Furthermore, horse trailers do not
generally operate during the peak hours.
It should be noted that the above·stated trip generation rate of one (1) P.M. peak hour trip per
horse stall does not pertain to the temporary stalls used in conjunction with the horse shows. That rate
pertains to permanent stalfs expected to be associated with the one (1) alfowed commercia{ stable on the
Property. Thus, for example, if there were 50 occupied horse stalfs at the commercial stable, they would
be expected to generate QQ trips during the P.M. peak hour.
With regard to sports fietldlsoccer field uses on the Property, a factor of 20.87 P,M. peak hour trips
would be applied as stated above. Thus, for example, if there were 4 sports fields/soccer fields in
operation during weekday afternoon/evening hours, a total of 83 P.M. peak hour trips would be expected.
fn summary, the cumulative trips <~ssociated with the horse shows, the permanent horse stalls
and other alfowed uses such as sports field uses (see below), would be considered in determining
whether the maximum af!owed traffic limitation was being complied with. Using the above examples, with
50 permanent horse stalls and 4 sports fields, a total of 133 P.M. peak hour trips would be generated,
leaving 70 P.M. peak hour trips avaifable for any horse shows or other events taking place at the same
time
It should be emphasized that tr(os to af1d from the Property on weekend days (~ Seturday end
Sunday) and the holidays described above are not restricted. Thus, it would be expected that major
events on the Property would be held on these days. fn fact, given the maximum allowed traffic limitation,
any event that would result In more than 203 P.M. prJak hour trips, when the trafflc from that event is
added to traffic from other allowed uses on the Property, would be required to be hefd on the weekend.
In any event, the City is required to regulate any proposed major weekend acti vity such that it
would not create significant ad,;erse impacts on the circulation system and not adversely affect existing
082/21183021.2
and future residents in the area due to parking, dust, noise, fight and glare or other impact!J. To help
reduce the potential for light and glare impacts, RMV has prohibired the use of permanent lighting on the
site.
The application of normally required condltfonaluse or othtJr piJrmlt requirfJments of the County
(or the City, after annexation of the Property), and CEQA review associated with such permitting, would
be expected to adaquately regulate such events and to ensure appropriate mitigation measures are
applied where indicated.
082/21183021 2
I~XIIIUIT .
:\1 :\I~TENANCF. Pt.A~ FO I{ PAHI\ I.Al\'f>
:\LIIt111lat~~d lrri~atitlfl S~:srem: \tlillraitl the irrigminn .~;.st~m in an
uperatinnnl cnndirion.
:\II sy~H.•ms to he npcrat ro rwlly in st~ch:J \\Cdd).
:\djust ami millt..lf repair a:> rt•qui re d ti lr 1 h !pn .:•.n ~·ra~c. ( r--Iim)r
r~o-p<1irs ;m! tfwsc c<lpable of bdn~ ,;nnduch.:d hy I"Hcnlu:im staiLm I twt r..:quiring
Sl\_!lli licam rnatcrial)i .)
t>.lairuain ;rn irTig:ttion W<lh:r 8ChcdLtk and nditt..;f a" n:quin:d .
l'cnili;aiion. \lairH.tin th" Citrus rn:r:s in '1 hc:lllh\" Cl)ndition .
T\\kc anmraHy iFt·bntary ;rnd Ortnbcn 11 r ;;s rcqtrir~·d. (Cit> tn
Spw>·ing : \laint~1in the Ci1rns ln:cs i11 a he-althy CI)TJ<iitiun
As n:quirc,! to mairnain Citrus Tree~ free of all ,,est. t City to
Wcc<ling : 1\lai 11 win an m .. ':;t li'..·tk ;tlly appcul i ng apP'.:ar~111cc .
\\· cekl~· nr a~ r~q~Jir<:d lP main rain mea wo:<.•d i'rc~·.
RLh'knt Cnntnd : o\lainratrl :m:~ t're~.· nf ~1ll grl!und hurrm' ing rndt:llh Pr
ntht·rs \\ ilid1 cnuld C;lusc h;mn to Citru~ ·1 r~.·c'.
Area 10 be-inSJ~C..:h·d 1\' • .. :k l y :md trcal(.'ti a s n:·quirL•d with rn ;llo:ri;lb
"f lin i(~'' not rL·quiring a lk·cnse l'or admin i:o;t~·r illg pesticides . (CiJy 10 pnwid~.: supplies~
rrc~· \f;Jinll'rloH14..'1.:: l\1nil1!<lin an iH..'Slllr.'ti\:ally ~tpp~~alin~. apJX':lrancc :md !i •r
tlu: ho:alth ni' Citrus Trcl's .
..\dju s1 Dci..'r ~..::tt i ng ;1~ required .
\·fairllain !r ~..:-wdl ~ a-; required
Trim a s rl.'qllm:J all sut:k'..'r g.rnwth ~Hid !n:c of;1ll dl..'~td \\olml.
I ifC~·r < 'nmrol :
\\'~:dd~ ra:nHl\"aJ ,)t li!lo:r ;md tt~..·hri" (('it~ IP pr<~\ id~~ \\:t~T~:·
L•'nt;tich.'t -' 41,:; n.•quir L~d I.
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\\',ucr quMI<:d : t ;r :r~ rt.'q uircd ( 1\'itkr l r u,:k ~~·q11in·d!
\l ;lint :.Jinll\: .. · 1\dl s a., H-'•lllir l.'d
!'rim a s ro:qwn:d tu m:1intai11 an a ... ·sth\.'lica!l~ ;•pp~!;din~ .lppt•;u am:~
Shrub Car.::
Water mor1tli!~ 1H' as r~i.fUir..:d ~\\Trier 1ruek r~'quir.:d ).
Trim a~ requir~d 10 nmimai11 an n-:s1h~ticall~ appr..'<tling ~tppc:u zmct:
iillfl fri..'..: uf ell I dc;JJ WLHXI.
R(~tkm Cnntrol Fhrildin~s :
Pnwidc Pc~t CGillrol :cround :til building~ and ~lmctun:~ with
mal<.'ri:..ds or do:\ 1..·~·-; rwl r~quiring :1 lio.:~:n ~e 1<1r <Hlminis1l:ring pl..'sticidcs . f City lil pr,,\·i~.k
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EXIIIB.f'l' f)
SEC1 11ttTY O IH.lGATIOi'\S
(.I)Ck g:H.;>::;, fi;'TlCI:tt :tlld;1lr ,JI/li!r :\lnll.;llln:s .11 the ~·11\J or C<H.'h da:-· >'II
tile pn~t..:d time:; th,: Par~ ;tnd Park l;lc.ilitk~ dml.' .
., Otlcn gates. fcncL·s nndior nth~r stnu:.1url.'s ~·;n;h mornin~ ;H the
pnsh:d times the Park and Park fJcilitks open.
~-Pa1rnl11tc emir~ l'a rk amlli1cifitics twicl.;' n da1 nnd immo.:diatdv
rr:J1\)rt any crim.:. 1Hii5:111 c l' or m..:•li ·al cmt·rgcncy 10 tht: appmpriat.: 'autlwritic-;. and
rqwn any code \inhlli ''"~ pn•mptly to tho.: ('ity .
.... .. :-:., ... ;,.
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FXHfBIT E
I . No k.:,·s w h•t:k~. ~;Hi .. \~. r'L•nccs il!H.Iior oth\.·r :'tructm..:~ sh:d I ~<!
lll<l<k nr i\lhcn' i~...: instali~:J {, itltmu thl' (.~t•nscnt of th..: Cit~· or' San .luan C.tpistr~1n''
('Cit~·" 1: and a cop>-t)r cad1 1\,;~-to :my sm:h lnck. t!<lk. ri.'m:'i:' or .-mu..:tm..: whid1 is not
irhl:llbl h) the City :;h:-~ll h.: d,:fi,..:r~·d C\l clw Cil~ pritlr co the utili7ation rhcro.:nf
, .-\!I gall:s, doors and ~imihtr acc..:'>s and CliiHml point!> shall b.:
dnscd i111Jll(•diatcly upon p:t~S<l)!•.: through th~o· :;;1mc.
" t'on~.: n!'tl~~ t()l!llwing shall hL· Jl·(.:rmiucJ on the property: drug-., N
nar..:,ltics fcx.c..:pt SLI~it'ct It :1 wriltcnml.!dkal prt.!scripli 'ln thcr..:foJr nnd whid1 is
t":idcnc~.·d tlwrl:.'ol\ l: huntin g; li s hing: a nd lin .. ·nrms.
6 , l'r;msit lu and t'rmn tlw Ridin~ l1 ark i•arc~.·l or II!>..: shall bt> limit~.·d
HI ('it:. d~.·!in..:ut..:d fila&;: ;md no ,)(l-rPad tr<l\'{'1 and 'or u~ is pt'rllliltcd t;x~·cpt in
;rc:._•,)rd:mct.• wirh rll;.· \\-Tillcn cons ... ·nt i>r IHi!tc:n usc agr<-'L'lJJCill is>ta:d h) the: Ci1y
7 1'\u t'L'IllP\ al ,11' anything lc:.g. plant~. ;trli(acls. t'l~.l J'mmd 11r
1,1-:at.:d upontlw Propc:n;. t•xccpi in a(·conJancl.' \\ itlltfw writtt>n consclll or'' riltc:n
agn:cmcnl L~wc·utcd b; til(' City .
8. ?\n slora~c or dumpin~ ()f anything llfXllllllc Prop~·riy c:Xt.:L'Jll in
:\cl·ordancc with tile 1\fittcn con~·1ll or \\Tit1cn agn.• mcnl cxccu1cd hy th~~ City.
9. Any ;md all usc is limikd to ··otTicial" (and not ··p..:-rs-m:tl")
-1 it·
394/028428-00 19
6!43924.9 ali/13114
EXHIBITC
INTENTIONALLY DELETED
EXHIBIT C
EXHIBITD
RULES AND REGULATIONS
1. No keys to locks, gates, fences and/or other structures shall be made or otherwise
installed without the consent of the City of San Juan Capistrano ("City") and a copy of each key to
any such lock, gate, fence, or structure which is not installed by the City shall be delivered to the City
prior to its utilization thereof.
2. All gates, doors, and similar access and control points shall be closed immediately
upon passage through the same.
3. All trash and debris shall be removed from the Property.
4. Vehicle speed shall not exceed 15 miles per hour.
5. None of the following shall be pennitted on the propm1y: dmgs or narcotics (except
subject to a \Witten medical prescription therefor and which is evidenced thereon); hw1ting; fishing;
and firearms.
6. Transit to and from the Riding Park Parcel or use shall be limited to City delineated
roads; and no off-road travel and/or use is permitted except in accordance with the written consent or
written' use agreement issued by the City.
7. No removal off anything (e.g., plants, artifacts, etc.) found or located on the Property
except in accordance with the written consent or written agreement executed by the City,
8. No storage or dumping of anything upon the Propet1y except in accordance with the
written consent or written agreement executed by the City.
9. Amplified speakers systems shall not be utilized in any capacity before 7:00a.m. or
after 10:00 p.m. Monday through Friday or before 8:00a.m. or after 10:00 p.m. Saturday and Sunday.
10. Any and all use is limited to "official" (and not "personal") purposes.
394/028428-<)019
6143924 9 all/13114 EXHIBIT D