17-0207_SOUTH COAST FARMS_Payment Schedule Agreement AGREEMENT ESTABLISHING A PAYMENT SCHEDULE FOR
OUTSTANDING WATER CHARGES
BY AND BETWEEN
THE CITY OF SAN JUAN CAPISTRANO AND SOUTH COAST FARMS, INC.
This Agreement Establishing a Payment Schedule for Outstanding Water Charges
("Agreement") is made and entered into this 7 day of February, 2017, by and between
the City of San Juan Capistrano, a California municipal corporation ("City") and South
Coast Farms, Inc., a California corporation ("South Coast") with reference to the facts
set forth in the Recitals below:
RECITALS
WHEREAS, City is the owner of the 28.225 acre farm in the City of San Juan
Capistrano, California, generally located at the northwest corner of Alipaz Street and
Camino Del Avion, San Juan Capistrano, California (the"Property").
WHEREAS, On May 6, 2008, the City and South Coast entered into a ten-year
License Agreement ("License Agreement"), granting South Coast a license to conduct
farming operations on 27.725 acres of the Property, with 0.50 acres set aside for City
use.
WHEREAS, Pursuant to Section 5 of the License Agreement, the City is
responsible for providing a source of water supply to South Coast, and South Coast is
required to pay for water at no more than the current agricultural rate and any costs of
keeping the irrigation system operational, regardless of the source of supply.
WHEREAS, South Coast currently owes to the City an outstanding balance of
$246,971 in unpaid water charges for Account No. 90032.
WHEREAS, City and South Coast desire to establish a payment schedule
regarding this outstanding balance.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing, and of the mutual
obligations and agreements contained herein, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:
1. Payment Schedule.
South Coast shall complete payment of all outstanding charges for Account No.
90032 prior to the expiration of the License Agreement in July 2018.
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Specifically, South Coast shall make payments pursuant to the following payment
schedule:
December 31, 2016 $40,000
May 15, 2017 $40,000
August 15, 2017 $40,000
December 1, 2017 $40,000
May 15, 2018 $40,000
July, 2018 $40,000/Remaining Balance
2. Payment in Addition to Regular Monthly Charges.
Payments made by South Coast pursuant to the Payment Schedule set forth in
Section 1 shall be made in addition to the payment by South Coast of regular
monthly charges for current water use.
3. Default.
If South Coast defaults in the payment of any scheduled payment set forth in
Section 1 or defaults in the payment of any regular monthly charges for water
use, such action shall constitute a default as described in Section 8 of the
License Agreement, and shall authorize the City to take action as described
therein. In addition, if South Coast defaults in the payment of any scheduled
payment set forth in Section 1, the entire outstanding balance for Account No.
90032 becomes due and owing as a separate obligation under this Agreement.
4. Additional Fees.
Provided that South Coast makes payments in accordance with the Payment
Schedule set forth in Section 1, the City shall not assess any of the following
charges against South Coast regarding Account No. 90032: late fees, courtesy
tag fees for nonpayment, disconnection of service fees.
5. Termination.
This agreement shall remain in effect until South Coast has completed payment
of the outstanding balance for Account No. 90032, unless earlier terminated by
mutual agreement of the parties.
6. Notices.
Any notice required to be given under this Agreement shall be in writing and shall
be deemed to have been duly given and received if and when personally served,
or forty-eight (48) hours after being deposited in the United States mail, first
class, postage prepaid, addressed to the intended party at:
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CITY:
City of San Juan Capistrano
City Manager
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
SOUTH COAST:
George Kibby
South Coast Farms �/
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7. Attorney's Fees.
If either party commences action against the other party arising out of or in
connection with this Agreement, the prevailing party shall be entitled to have and
recover from the other party reasonable attorney's fees and costs of suit.
8. Indemnity.
South Coast shall defend, indemnify, and hold harmless the City, and its elected
officials, officers, employees, and agents, from and against any and all actions,
claims, demands, losses, costs, expenses, including legal costs and attorney's
fees, for death or injury to persons or damage to property, arising out of or
related to South Coast's performance under this Agreement, except to the extent
of such loss as may be caused by the City's own negligence, including that of the
City's officials, officers, employees and agents.
9. Entire Agreement.
The terms of this Agreement constitute the entire understanding and agreement
between the Parties and supersedes all previous negotiations between them
pertaining to the subject matter thereof.
IN WITNESS WHEREOF, City and South Coast have caused this Agreement to
be executed on the date and year first written above.
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SOUTH COAST FARMS: CITY OF SAN JUAN CAPISTRANO
By: 1 By:
George ibby ;; ja ' S el, Manager
ATTEST:
Maria Morris, CMC, City Clerk
APPROVED AS TO FORM:
Jeff Ballinger, City Attorney
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