17-0207_SOUTH COAST FARMS_E12_Agenda ReportTO :
FROM :
PREPARED BY:
DATE :
SUBJECT:
City of San Juan Capistrano
Agenda Report
Honorable Mayor and Members of the City Council
~n Siegel, City Manager
Charlie View, Project Manager
February 7, 2017
2/7/2017
E12
Consideration of a Payment Schedule Agreement and Extension of
License Agreement (South Coast Farms)
RECOMMENDATION :
By Motion:.
1) Approve and Authorize the City Manager to execute the Payment Schedule
Agreement for Outstanding Water Charges with South Coast Farms; and,
2) Authorize the City Manager to extend the 2008 License Agreement with South
Coast Farms by 90 days.
EXECUTIVE SUMMARY :
Mr. George Kibby, owner of South Coast Farms, operates an organic farm and produce
sales facility on City-owned land bounded by Alipaz, Camino Del Avian and Via Positiva
(portion of AP#121-190-57). While the License Agreement (Agreement) does not expire
until May of 2018, there is an outstanding balance of approximately $224,000 owed the
City for the water consumed for the operation of the farm. As discussed below, the cost
for water to serve the farm has increased substantially over the term of the current
Agreement, with the most recent increase resulting from the consolidation of various
water rates into a legally defensible, cost-of-service based formula in 2014.
In response to the City's request for a payment plan, Mr. Kibby developed the attached
proposal (Attachment 1) which was discussed at the City Council Closed Session
meeting of September 6, 2016, and January 12, 2017. At the direction of the City
Council, an AgreemenUPayment Schedule has been prepared by the City Attorney's
Office for consideration by the City Council (Attachment 2). The information below is
intended to provide the City Council with the background information that resulted in the
recommended payment agreement.
City Council Agenda Report
February 7, 2017
Page 2 of3
DISCUSSION/ANALYSIS :
The City of San Juan Capistrano owns the approximately 28 acre property known as
Kinoshita/South Coast Farm. This property was originally purchased in 1991 by the San
Juan Capistrano Redevelopment Agency from the Kinoshita Family as a means to
comply with an obligation to Capistrano Unified School District (CUSD) associated with
an Agency purchase of CUSD property. In 1998 the Redevelopment Agency and CUSD
revised their agreement and the property was purchased from the Redevelopment
Agency by the City using proceeds from the Measure D Open Space Bonds. The
Zoning and General Plan for the property are Agri-Business, which allows the farm
operation.
Subsequent to the City purchasing the property, the City and Mr. Kibby entered into a
series of agreements to continue the use of the property as a farm. Below is a summary
of the agreements:
• June 15, 1999 Lease Agreement
• June 6, 2000 Lease Agreement replaces 1999 Lease Agreement
• May 6, 2008 License Agreement terminated the 2000 Lease (Note: New License
Agreement Terminates in May, 2018)
At the time of the original Lease Agreement and until 2004, the farm was served with
well water and was paying less than agriculture/farm water rates. In 2004, the farm was
transitioned off well water and began paying the farm/agriculture rates for water. The
well water was discontinued in conjunction with the start-up of the Ground Water
Recovery Plant (GWRP).
The May 2008 Agreement (Attachment 3) included specific language regarding the
provision of water at an Agriculture Rate. At the time the 2008 Agreement was
executed, there were specific water rates for farm and agriculture water usage. In 2014,
the City adopted new water rates that maintained an "Agriculture" water rate; however,
as legally required, the new rate was equal to other rates for domestic water supply,
which are significantly higher than the previous rate for farm/agriculture use {Attachment
4). The practical impact of the recent rate changes is illustrated by comparing water
charges for the farm immediately before and after the 2014 increase:
• April/May 2014: $12,477 {3985 ccf)
• June/July 2014: $17,498 {3627 ccf)
Although water consumption at the farm varies with seasonal planting and growth
cycles, these spring/summer rates represent the higher water consumption period.
City Council Agenda Report
February 7, 2017
Page 3 of 3
As indicated above, the current License Agreement terminates in May 2018, while the
proposed Payment Schedule includes a final payment in July 2018. The proposed
Payment Schedule is tied directly to the harvest schedule for South Coast Farms and,
as such, Mr. Kibby is requesting an extension of the License Agreement to allow for
completion of the 2018 strawberry and cucumber harvest. In the interest of providing
South Coast Farms the opportunity to successfully fulfill the payment schedule without
undue hardship, staff recommends a 90 day extension to the 2008 License Agreement
in conjunction with approval of the Payment Schedule.
FISCAL IMPACT:
The Water Operations Fund will receive the payments required by the Payment
Schedule Agreement. Compliance with the Agreement will result in the Water
Operations Fund collecting all amounts due to the City.
ENVIRONMENTAL IMPACT:
In accordance with the California Environmental Quality Act (CEQA), the recommended
action is exempt from CEQA per Section 15061 (b)(3), the general rule that the CEQA
applies only to projects which have the potential for causing a significant effect on the
environment. Where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment, the activity is not
subject to CEQA. The approval of the Payment Schedule Agreement and 90 Day
extension of the License Agreement would not be an activity with potential to cause
significant effect on the environment and therefore is exempt from CEQA.
PRIOR CITY COUNCIL REVIEW:
• On June 15, 1999 the City Council approved the initial Lease Agreement
• June 6, 2000 the City Council approved the revised Lease Agreement
• On April 1, 2008 the City Council approved the current License Agreement
COMMISSION/COMM ITTE E/BOARD REVIEW AND RECOMMENDATIONS :
Not applicable.
NOTIFICATION:
South Coast Farms
ATTACHMENT(S):
Attachment 1 -Letter from South Coast Farms
Attachment 2-Agreement Establishing Payment Schedule
Attachment 3 -2008 Staff Report and License Agreement
Attachment 4-Current Water Rate Schedule
South Coast Farms, Inc.
32701 Alipaz St. SanJuan Capistrano , CA 92675
Tel:949-661-9381 Fax:949-661·9349
~IVVV.southcoastfarms.com
September 6, 2016
In 1998 South Coast Farms entered in to a lease agreement with the City of San Juan Capistrano to
operate a farm on the Kinoshita property. The citizens of San Juan Capistrano had previously purchased
the Kinoshita property and its' water well along with othE>r open space utilizing a ballot approved bond
mechanism.
Since 1998 South Coast Farms converted the Kinoshita to a 100% certified organic farm. We spray no
chemicals and use no chemical fertilizers. We operate the farm as conscientious members of the
community recognizing our neighbors are schools, parks and residential neighborhoods. We respect our
neighbors and are grateful to be part of their community.
The Kinoshita farm had always had and used its own water well previous to the City purchasing the
farm. South Coast Farms continued to use the water well as its sole source of irrigation water.
In 2004 the water well was taken away from the farm to be used in the City's Water Treatment Plant.
At that time we were given no choice in the matter and we were forced to go on municipal water. I
vividly remember Amy Amarani from the City manager's office telling us that the City did not even have
to provide us water and to be happy they decided to let us have municipal water. We had no choice.
We were now on City water.
Since 2004 South Coast Farms has been asking the City to return the well to the farm where it belongs
and from where it came. That has not happened. In the meantime we entered into our last lease in
2008 for a 10 year term.
That lease stipulated we were to be given water at an agricultural rate. At that time the ag rate was
lower than the residential rate as it still is in every water district in the state. Until now. Today, in San
Juan Capistrano, the agricultural rate for water is the same as the residential rate. Nowhere in our
wildest nightmares did we ever interpret the agricultural rate to someday be the same as the residential
rate.
Compounding the water issue is since the City became their own water supplier rates have skyrocketed.
The rates are now the highest in the county. South Coast Farms has been pleading with City staff to help
us fix this problem for years to as of yet no avail.
We ask the City to consider some type of rate relief to the farm. We know there are legal obstacles and
considerations but relief in the short term is needed until we find a long term solution. Such relief
perhaps could be in the rorm of a subsidy or yes a return of the farm's well as soon as possible.
ATTACHMENT 1
There is no other City in the country that bought a farm and farm well as a commitment to the farming
heritage of that city. To have removed that well from the farm and then eliminating ag water rates on
that farm in that city is not in the spirit or purpose of the original farm purchase.
However, we recognize the bill is due and must be paid. This little bit of history on water and the farm is
merely to say again, paying $2300.00 per acre foot for ag water is not a tenable situation for a farm in
Orange County. We invite all concerned to compare ag water rates across the county and state to see
the huge difference in water rates between everywhere and here.
Given that history, South Coast Farms proposes to pay the bill In full by the end of our lease in July 2018.
The payment schedule is built around our seasonal crop and cash flow projections which are based on
20 years of farming here.
DECEMBER 31 2016 $40,000
MAY 15,2017 $40,000
AUGUST 15, 2017 $40,000
DECEMBER 1, 2017 $40,000
MAY 15,2018
JULY, 2018
$40,000
$40,000/BALANCE DUE
Again, we wish to convey the need to find a viable long term solution to the cost of water on the Farm.
Some of the solutions for City might include returning the water well back to the farm, bringing
reclaimed water to the farm maybe even from a closer location like Dana Point?
Other solutions might include the City recognizing the high cost of water requires a different business
model and allowing South Coast Farms to bring value added, farm products in to the retail mix. This
might include a certified kitchen in which to make strawberry jams, sun dried tomatoes and perhaps
even meals, sandwiches, pies, soups and a small outdoor dining area located on the farm.
Of course these changes would require investment. For that investment to be viable, a new lease would
be needed. What we are saying is now is the time to address the issues and move forward. We look
forward to further discussion . Thank you.
Sincerely,
~u¥-$.7
George Kibby
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_ day of , 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.
61147.00310\29255538.1
1
ATTACHMENT 2
Specifically, South Coast shall make payments pursuant to the following payment
schedule:
December 31, 2016
May 15, 2017
August 15, 2017
December 1, 2017
May 15 , 2018
July, 2018
$40,000
$40,000
$40,000
$40,000
$40,000
$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:
61147.00310\29255538.1
2
CITY:
City of San Juan Capistrano
City Manager
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
SOUTH COAST:
George Kibby
South Coast Farms
2268 E. Sandalwood Place
Anaheim, CA 92806
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. Indemn ity.
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.
SOUTH COAST FARMS:
By: ____________________ _
George Kibby
61147.00310\29255538.1
3
CITY OF SAN JUAN CAPISTRANO
By: ____________________ __
Benjamin Siegel, City Manager
ATTEST:
Maria Morris, CMC, City Clerk
APPROVED AS TO FORM:
Jeff Ballinger, City Attorney
6114 7.00310\29255538 .1
4
4/1/2008
AGENDA REPORT 06
TO: Dave Adams, City Manager <f}..
FROM: Cindy Russell, Interim Public Works Director
SUBJECT: Consideration of a License Agreement for the Kinoshita Farm (South
Coast Farms)
RECOMMENDATION:
1. By motion, approve the license agreement with South Coast Farms for $25,000
annually; and,
2. Authorize the Mayor to execute the agreement on behalf of the City .
SITUATION:
The City and the San Juan Capistrano Community Redevelopment Agency are owners
of a 28.225 acre farm on the corner of Alipaz and Del Avion, which was acquired to be
maintained as open space within the City (Exhibit A, Attachment 1 ). South Coast
Farms, the current operator of the farm, has renegotiated with the City to continue to
farm 27.725 acres, with the remaining acreage set aside for future City use. Please
note that the City entered into a separate license agreement on August 8, 2006, with the
San Juan Family Farm Museum (an affiliate of South Coast Farms), for the
maintenance and use of the Joel Congdon House also at this location.
As part of the proposed license agreement (Attachment 1) for farm operations, South
Coast Farms shall continue to maintain a fully functioning farm, as well as a fruit and
vegetable stand over the 1 0-year term of the license agreement. At the end of the fifth
year, the annual license rate of $25,000 may be renegotiated. In addition to the annual
license fee, the agreement provides for South Coast Farms to pay the current
agricultural rate for water. South Coast Farms shall own all crops produced at the
property, and shall continue to provide the supervision and management over the farm
operations.
There is an antenna site located at the Sports Park field, which is adjacent to the farm.
The license agreement specifies that South Coast Farms will allow for use of the access
road (Exhibit A, Attachment 1), with the City maintaining the road and gate. In addition,
the City will continue to access the property to host the annual Fourth of July
Celebration throughout the term of the agreement.
Since beginning operations on this property in 1999, South Coast Farms has proven to
be a successful farm operator with 100% of its operations being organic. This type of
ATTACHMENT 3
AGENDA REPORT
Page 2
April 1 , 2008
organic farm means that the residents of San Juan Capistrano are not exposed to any
of the herbicides and pesticides that normal farm operations utilize, while being offered
healthier foods to enjoy. South Coast Farms is well-known for such produce as
strawberries, tomatoes, leafy greens, pumpkins, etc. Additionally, South Coast Farms
has become a part of the community providing educational opportunities for our schools
and residents as well.
Staff recommends that the City Council approve the proposed license agreement with
South Coast Farms for continued operation of the farm property.
NOTIFICATION:
George Kibby, South Coast Farms
COMMISSION/BOARD REVIEW, RECOMMENDATIONS:
Not Applicable .
FINANCIAL CONSIDERATIONS:
The proposed license agreement with South Coast Farm provides for a $25,000 per
annum payment. The proposed license agreement requires South Coast Farms to pay
the current agricultural rate for water.
RECOMMENDATION:
1. By motion, approve the license agreement with South Coast Farms for $25,000
annually; and,
2. Authorize the Mayor to execute the agreement on behalf of the City.
Respectfully submitted, Prepared by,
{!0n ~\UJ!
CindyR0Jr M~~
Interim Public Works Director Management Analyst
Attachments: 1. License Agreement
LICENSE AGREEMENT
This License Agreement ("Agreement") is made this __ day of __ , 2008, by and
between the City of San Juan Capistrano, a municipal corporation, and the San Juan
Capistrano Community Redevelopment Agency, a public body, corporate and politic (known
jointly hereinafter as the "LICENSOR"), and South Coast Farms. ("LICENSEE").
RECITALS
WHEREAS, LICENSOR 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 Avian, which property was acquired to be maintained as open-space within the City; and
WHEREAS, LICENSEE desires to conduct farming operations on 27.725 acres of the
property, with 0.50 acres set aside for City use; and
WHEREAS, LICENSEE has farming expertise and experience and desires to manage
the maintenance and operations of all agricultural activities on the property; and
WHEREAS, LICENSEE and LICENSOR had entered into a Lease Agreement dated
June 15, 1999 for a term of 10 years, which was subsequently revised by a Lease Agreement
dated June 6, 2000, which the parties wish to terminate in return for the grant of license and
the terms and conditions herein .
LICENSE
NOW, THEREFORE, LICENSOR and LIC"ENSEE do hereby mutually agree as
follows:
Section 1. Grant of Licensefferm.
(a) G ran t of Lice nse . LICENSOR hereby grants to LICENSEE a License to manage,
maintain, and operate a fruit and vegetable farm on the property, as depicted on the
site plan attached hereto as Exhibit "A" and incorporated herein by reference
(hereinafter referred to as the "Premises"). Provided, however, that this License does
not include the Joel Congdon Residence area as depicted in Exhibit "A," which is
subject to a separate.licen~e. LICENSEE shall provide the expertise, supervision and
management over the farm operations, and LICENSEE shall own all crops produced
on the Premises.
(b). Term. The term of this Agreement with regard to the Premises, shall be for a period of
ten (10) years, commencing upon the date first above written unless sooner
terminated by mutual consent of LICENSOR and LICENSEE.
Page 1 of 9 ATTACHMENT 1 ~~2413 .1
Section 2. License Fee.
(a) LICENSOR shall receive from LICENSEE a license fee of twenty-five thousand dollars
($25,000) annually, to be paid on a quarterly basis, based on calendar year quarters
and prorated accordingly, for the first full five (5) years of the license term.
(b) Ninety days prior to the end of the fifth year of the license term, the license fee shall be
renegotiated between LICENSOR and LICENSEE with the intent being that the agreed
upon license fee for the subsequent five-year term of the license shall match the
market rate for similarly situated properties, provided that in no case shall the license
fee be reduced as a result of the negotiations.
(c) In the event that the parties cannot come to agreement within forty-five (45) days of
commencement of license fee negotiations, either party may call for a binding
arbitration process wherein each side selects an arbitrator and a third arbitration panel
member is then chosen by the two selected arbitrators . The three-person panel shall
then conduct an informal hearing to receive evidence and argument regarding the
appropriate license fee. The panel shall render a final and binding decision within
thirty (30) days of convening the panel. LICENSEE shall continue to pay the license
fee in subsection (a) during the pendency of the proceedings subject to retroactive
adjustment upon the establishment of the new fee pursuant to this subsection.
Section 3. Nature of Uses Permitted Under the License and Maintenance of Premises .
(a) Operation of Farm. LICENSEE shall be responsible for the supervision and
management of every aspect of running a produce farming operation for human
consumption on the Premises in a business like manner.
55241J.I
The existing retail stand may be utilized by LICENSEE for produce retail sales only .
Any expansion, regardless of size or scope, is not permitted under this Agreement
unless LICENSOR's written approval is first obtained.
LICENSEE's supervision and maintenance shall include, but not be limited to:
i. the employment, supervision and direction of all employees engaged in the
farming operation;
ii. providing for the maintenance of all equipment and supervising its use in a
safe and prudent manner;
iii. soil preparation, planting, fertilizing, irrigating, pesticide and herbicide
applications, and the harvesting of all crops;
iv. the marketing and sale of crops;
Page 2 of 9
v. maintenance of records and accounting for all revenues and expenditures,
including employee payroll and related records;
vi. purchasing of all seeds, plants, fertilizers, herbicides, pesticides, and other
materials and supplies, such as boxes and packaging materials, required for
marketing and sale of the crops;
vii. management and maintenance of all on-site improvements, provided that any
temporary housing is subject to City's approval based on all applicable
provisions of the City's Land Use Code.
LICENSEE shall perform all operations in a competent manner, consistent with the
standards of the industry and in accordance with all applicable Federal, State and local
regulations, including the City's Municipal Code.
(b) Maintenance of Premises. LICENSEE agrees to accept the Premises in its present
condition as of the date of execution of this Agreement. Except for the Congdon
Residence, LICENSEE may use the buildings and existing structures on the Premises
for LICENSEE's use in farming operations. LICENSEE shall maintain, at LICENSEE's
expense, the Premises, including all existing structures and all equipment owned and
furnished by LICENSEE, in a reasonable state of repair and working order.
LICENSEE's maintenance requirements shall include, but shall not be limited to the
following:
i. Fruit Trees . LICENSEE shall plant fruit trees on the Premises and shall be
responsible for properly maintaining them. There is not a restriction regarding
the height of the fruit trees; however, LICENSEE shall be consistent and make
efforts to keep the trees at a height that will not hinder or disrupt views into the
farm or surrounding areas.
ii. Shrubs. The shrubs on the Premises block the wind, limit road dust, and
reduce the amount of debris entering the Premises. LICENSEE is responsible
for sufficiently maintaining the shrubs in.order to keep harmful elements away
from the crops.
(c) Marketing and Sale of Crops. LICENSEE shall be responsible for the marketing and
sale of crops produced on the Premises. Crops will be sold at retail at the retail stand
located on the Premises and to commercial produce wholesalers and distributors.
LICENSEE shall provide a schedule to LICENSOR of proposed days and hours of
operation of the on-site retail location.
SS2 41 3 I
i. Importing Items from outside vendors. LICENSEE, in an effort to ensure that
business stays consistent, even in particularly bad years, shall have the
authority to purchase certain produce items from outside vendors to sell at
retail at the Premises.
Page 3 of 9
(d) Condition of Premises. LICENSEE accepts the Premises in its present condition upon
execution of this License. LICENSOR makes no warranty of the suitability of the
Premises for growing crops. LICENSEE agrees, at LICENSEE's expense, to use
reasonable care to control all weeds, noxious or otherwise, growing on the Premises,
including those growing in drainage ditches. LICENSEE shall furnish all labor and
materials required to eliminate and otherwise reasonably control all rodents, insects
and other pests on the Premises. LICENSEE agrees to farm the Premises in a
manner reasonably calculated to protect the soil and maintain the fertility through the
use of fertilizers and chemicals in accordance with good farming practices as generally
followed and recognized in Orange County, California. LICENSEE agrees, at
LICENSEE's expense, to keep fences, ditches and borders of the Premises in good
condition and in repair at all times, reasonable wear and tear excepted. The duly
authorized representative of LICENSOR may enter upon the Premises and all
structures and buildings thereon, or any portion thereof, at a reasonable time for the
purposes of inspection.
(e) Access Road. The access road as shown in Exhibit "A," shall be accessible for use by
representatives of the wireless phone company to gain access to the antenna site
located on the Sports Park field adjacent to the Premises. The foundation of the road
shall be comprised of gravel at no cost to LICENSEE. In addition, a gate and
corresponding locks shall be added and maintained at no cost to LICENSEE.
(f) Fourth of July Celebration. LICENSOR shall have use and access to the Premises in
order to host the fireworks celebration for the community from the Premises each July
4th on an annual basis throughout the term of this License. This access shall include,
but not be limited to, all set up, coordination, and take-down activities necessary to fire
the fireworks from the Premises.
Section 4. No Assignments.
LICENSEE shall not assign this License or any interest herein, or sublet the Premises
or any part thereof, or license the use of all or any portion of the Premises or business
conducted therein or thereon, or encumber or hypothecate the Premises or this
License, without first obtaining the written consent of LICENSOR. Any assignment,
subletting, licensing, encumbering, or hypothecating of the Premises or this License
without such prior written consent of LICENSOR, shall be void and shall be cause for
cancellation of this License by LICENSOR at its option.
Section 5. Water.
552413 .1
An existing water well and backbone irrigation system may be available to LICENSEE
for irrigation uses, with LICENSOR being responsible for the maintenance of the well.
The LICENSOR is responsible for providing a source of supply to LICENSSEE, which
may include well water, recycled water, or domestic water. LICENSEE is required to
pay for water at no more then the current agricultural rate, and any costs required in
Page 4 of 9
keeping the irrigation system operational, regardless of the source of supply.
LICENSEE will not be obligated to pay for differences in water rate costs. LICENSEE
agrees to work cooperatively with LICENSOR to coordinate watering schedules
between the Premises and the City Sports Park. LICENSEE shall not be responsible
for water costs for the City Sports Park.
Section 6. Utilities .
Subject to Section 5 above, LICENSEE is fully and solely responsible for providing any
utility service required for the farm maintenance and operation.
Section 7. Time of the Essence.
Time is of the essence of each and every provision, covenant, and condition herein
contained and on the part of LICENSEE to be done and performed.
Section 8, Default.
(a) If LICENSEE defaults in the payment of the license fee, or any additional
applicable license payments, or defaults in the performance of any of the other
covenants or conditions hereof, LICENSOR may give LICENSEE notice of such
default and if LICENSEE does not cure any such default within three (3) days, or
such other time period as specified in the notice of default, after the giving of such
notice, then LICENSOR may terminate this license on not less than ten (1 0) days'
notice to LICENSEE. On the date specified in such notice the term of this license
shall terminate, and LICENSEE shall then quit and surrender the Premises to
LICENSOR, but LICENSEE shall remain liable as hereinafter provided. If this
license shall have been so terminated by LICENSOR, LICENSOR may at any time
thereafterresume possession of the Premises by any lawful means and remov~
LICENSEE or other occupants and their effects.
(b) If LICENSEE breaches any covenant or condition of this license, LICENSOR may,
on reasonable notice to LICENSEE (except that no notice need be given in case
of emergency), cure such breach at the expense of LICENSEE. The reasonable
amount of all expenses, including attorney's fees, incurred by LICENSOR in so
doing shall be deemed additional fees payable on demand.
Section 9. Termination Due to Bankruptcy or Insolvency.
In the event proceedings in bankruptcy are commenced by LICENSEE, or LICENSEE
is found to be in a state of insolvency, then in such event, LICENSOR shall have the
right to terminate this Agreement and all further rights and obligations thereunder, by
ten (1 0) days' notice in writing to LICENSEE, in which event, on the expiration of the
ten (1 0) days from mailing of the notice, this License shall automatically terminate.
Section 10. Notices .
Page 5 of 9
552413 I
Any notice required to be given under this Agreement shall be in writing and shall be
deemed to have been duly given and received if and when personally served, or forty-
eight (48) hours after being deposited in the United States mail, first class, postage
prepaid, addressed to the intended party at:
LICENSOR:
City of San Juan Capistrano/Redevelopment Agency
City Manager/Executive Director
32400 Paseo Adelanto
San Juan Capistrano , CA 92675
LICENSEE:
George Kibby
South Coast Farms
2268 E. Sandalwood Place .
Anaheim, CA 92806
Section 11. Atto rneys' Fees .
If either party commences action against the other party arising out of or in connection
with this License , the prevailing party shall be entitled to have and recover from the
other party reasonable attorney's fees and costs of suit.
Section 12. Surrender of Premises .
LICENSEE shall, at the termination of this License, vacate the Premises in as good
condition as they are in at the time of entry thereon by LICENSEE. Upon vacating,
LICENSEE shall leave Premises free and clear of all rubbish and debris.
Section 13. Insurance.
552413 ,1
LICENSEE shall pay for and maintain insurance throughout the life of this License with
general liability coverage of one million Dollars ($1,000,000) minimum coverage per
occurrence, and fire and all risk property damage insurance, insuring all of
LICENSEE's equipment and trade fixtures located on the Premises for full
replacement cost. Said policy shall name LICENSOR as additional insured by
endorsement to the policy and shall be in a form satisfactory to LICENSOR.
LICENSEE will furnish LICENSOR with proof of insurance issued by an insurer
approved by LICENSOR showing the coverage to be in force . LICENSEE's insurance
coverage shall be primary coverage. LICENSOR and LICENSEE each waive the
rights of subrogation that may arise against the other because of any act covered by
insurance. The policy shall provide that modification or cancellation of the policy shall
Page 6 of 9
not occur without thirty (30) days advance written notice provided by the insurer to
LICENSOR.
Section 14. Indemnity.
LICENSEE shall defend, indemnify, and hold harmless LICENSOR, and their
respective 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 or the Premises,
or for the pollution thereof and cleanup costs, arising out of or related to LICENSEE's
use of the Premises, except to the extent of such loss as may be caused by
LICENSOR's own negligence, including that of their respective officials, officers,
employees and agents. LICENSOR shall not be held accountable for any preexisting
soil contamination, including those identified in the report dated January 28, 1990,
prepared by Chern Risk, and the report dated December 18, 1990, prepared by South
Coast Geologic~! Services, Inc.
Section 15. Taxes.
"Pursuant to Revenue & Taxation Code §107.7, the property interest created herein
may be subject to property taxation and LICENSEE may be subject to property taxes
levied on such interest. In no event shall LICENSOR be liable for any taxes owed as a
result of this License or LICENSEE's use of the Premises.
Section 16. No Relocation Benefits.
This License is not intended to convey a property interest but to permit LICENSEE to
use the Premises as provided for herein. LICENSEE acknowledges the rights granted
by State and/or Federal Relocation Assistance Laws and regulations and,
notwithstanding any other provision of this License, expressly waives all such present
and future rights, if any, to which LICENSEE might otherwise be entitled from
LICENSOR or the City of San Juan Capistrano with regard to this License and the
business operated on the Premises. LICENSEE shall not be entitled to relocation
assistance, relocation benefits, or compensation for loss of goodwill upon the
termination of this License.
Section 17. Entire Agreement.
The terms in this License constitutes the entire understanding and agreement between
the Parties and supersedes all previous negotiations between them pertaining to the
subject matter thereof.
Section 18. Termination of Past Leases, Licenses and Agreements.
552413 .1
This License and the terms and conditions hereof supersede and shall terminate the
leases entered into by the parties dated June 15, 1999 and June 6, 2000, and
Page 7 of 9
any other leases, licenses, agreements or understandings pertaining to the subject
matter hereof.
IN WITNESS WHEREOF, LICENSOR and LICENSEE have caused this License
to be executed on the date and year first written above.
LICENSEE:
SOUTH COAST FARMS
By: "~·~ £)fgeib b
ATTEST:
Margaret R. Monahan, City Clerk
APPROVED AS TO FORM:
V~iJ~
Omar Sandoval, City Attorney
LICENSOR:
CITY OF SAN JUAN CAPISTRANO,
A California municipal corporation
By : ____________________ _
Joe Soto, Mayor
[ADDITIONAL SIGNATURE PAGE FOLLOWS]
Page 8 of 9
552413 I
ATTEST :
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY,
a public body corporate and politic
By:
--~--~~--~---------Mark Nielsen, Chairman
Margaret R. Monahan , Agency Secretary
APPROVED AS TO FORM :
Page 9 of 9
KINOSHITA FARM t
N
----•300ft
CityGIS 6.0
Copyright ® 2006 All Rights Reserved . The lntormmion contained herein is the pro!J'ielary property o1 the
contributor supplied under license and may not be appr""ed eJCX:epl as licensed by Dignal Map Products.
EXHIBIT A
City of San Juan Capistrano -Water and Sewer Rate Codes
Rates & Allocations Effective as of 07/01/16
1 "lflb:rm.m.Jfmf('~~J""'I ~.ur ..... .... _nn:~!l~fmW!DJ I
l;cmm :~,llh"X!& I'm" n ~~ -1 ·' .... 'llJKtlM.1111m..l~ -~~·~
Essentiall91 +Standard Outdoor
WCA Regular Lot $3.77 $5.24 $5.69 $5.69 (2, 700 Sq Ft)
Essentiaii9J (x #Units)+ Outdoor by
WCB Large Lot $3.77 $5.24 $5.69 $5.69 SQ FT (concentric)
Master-metered Essentiall9] (x # units)+ Outdoor by
wee residential $3.77 $5.24 $5.69 $5.69 Sq Ft
Multi With Own Essentiall91 + 500 Sq Ft outdoor (1
WCD Irrigation $3.77 $5.24 $5.69 $5.69 ccf+)(x #Units)
Multi Without Essential [9] + 100 Sq Ft outdoor (1
WCE,WCN Irrigation $3.77 $5.24 $5.69 $5.69 ccf) (x #Units)
WCF Landscape $3.77 $5.24 $5.69 $5.69 Essentiall9] +Outdoor by Sq Ft
WCG Agriculture $3.77 $5.24 $5.69 $5.69 Essential[9] + Outdoor by Sq Ft
Essential [91 + Efficient= winter
WCH Commercial $3.77 $5.24 $5.69 $5.69 average use (Jan, Feb, Mar)
WCI Construction N/A N/A $5.69 N/A No Allocations, all use at Tier 3
Non-potable (&
WCJ Recycled) $3.53 $3.53 $4.20 $4.20 Essential [9] +Outdoor by SqFt
WCL Fire lines N/A N/A $5.69 N/A No Allocations, all use at Tier 3
-~'~ n:m ~lim m"ffi111'l~1If:ril·~ Uf.mr;J li~ !li!ll'mlJT.dtW" ...... .-...~. -. ' .. l lt.YfJft•wL•on••l'lftl.rl:flt~••m«IJJJ~'tJ '
fi'illm. I~ -·-'.' :;: (.; . .· ~ ,,.
WSA 5/8 11 and 3/4 11 $24.32
WSB 111 $33.90
wsc 1.511 $48.17
WSD 211 $74.24
WSE 311 $222.87
WSF 411 $314.05
WSG 611 $546.82
WSH 811 $933.76
WSM Fireline Up to 6 11 $71.88
Fireline 8 11 and
WSN over $153.17
wss !Construction $222.87 (i.e. $7.34 I day 130 day month])
I-___;S::..;C=-C=---!-=-R.:.:e:.:;;si;:;d.:.:en::.:t.:.::ia:.:;;I __ -+--..::.$::..24.:.:..3=-4~PER UNIT (if multi units)
SCD Multi-Residential $18.88 PER UNIT (if multi units)
SCE Commercial BY USE* *Average willter water use +$10.82ju:ed charge
I--S=-C=-F=---!-=-P..:o:.:;;oi=---=S:.::m:.:.:a:.:.ll=----+--..::.$..:..41.:.:.6=-l=-! I per ccf of winter average I $2.40
SCG
SCQ
Pool-Large (over850
sqft surface area)
Mobile Homes
$103.25
$13.42 PER UNIT
-;;:-
.··~.' ,:., ·~ ~· ,,
··'
ATTACHMENT 4