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HomeMy WebLinkAbout09-Development Services ORIGINAL " CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Valerie C. Ross, Director Subject: Resolution authorizing the execution of an acknowledgement of a proposed lease between Dept: Development Services Metropolitan Water District and Pine Trails Partners, LLC, relative to a proposed Landscape Maintenance Date: January 23, 2007 Assessment District in the Pine Avenue and Redwood Street area(TT 17716). File No. 15.02B-03 MCC Date: 02-20-2007 Synopsis of Previous Council Action: 01/24/2006—Tentative Tract No. 17716 was approved with conditions. Recommended Motion: Adopt Resolution Valerie C. Ross Contact person: LASZLO "Les" FOGASSY Phone: 5026 Supporting data attached: Staff Report, Maps, Res. Ward: 5 FUNDING REQUIREMENTS: Amount: Initial lease payment of$2,325 Source: (Acct. No.). To be established on formation of an Assessment District (Acct. Description): Initial payment of$2,092 from Assessment District Funds to be established, and $233 from the General Fund. Finance: Council Notes: s� ,200'7- �(o Agenda Item No. � a� o7 r CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Staff Report SUBJECT: Resolution authorizing the execution of an acknowledgement of a proposed lease between Metropolitan Water District and Pine Trails Partners, LLC, relative to a proposed Landscape Maintenance Assessment District in the Pine Avenue and Redwood Street area(TT 17716). BACKGROUND: On January 24, 2006, the Planning Commission approved Tentative Tract No. 17716, located easterly of Pine Avenue and northerly and southerly of Redwood Street in the Verdemont area. Pine Trails Partners, LLC, the owner/developer of this tract, is proposing to subdivide 13.7 acres of land into 39 single family residential lots, with a minimum lot size of 10,800 square feet. One of the conditions for this development is the formation of a Landscape Maintenance Assessment District. The 100 foot strip of vacant land to the west of the tract is to be included in the District. The easterly 40 feet of this strip is within the tract boundaries and is encumbered by an easement to San Gabriel Valley Water District. San Gabriel Valley Water District has consented to the installation and maintenance of landscaping for this area without the requirement of a lease or compensation for its use. The remaining 60 feet is owned by the Metropolitan Water District of Southern California(M)vVD) for water transmission lines. MWD has consented to the installation and maintenance of landscaping conditioned on the execution of a lease agreement. The area south of this site is also MWD property being maintained under a separate Assessment District. However, at that time, MWD was allowing maintenance of their area through a no-fee permit and has since changed their policy and is now requiring a lease for use of their property. Initially, the lease will be executed between MWD and Pine Trails Partners to allow them to install the required landscaping and perform maintenance for the first year. Subsequently,the area will be turned over to the Assessment District for ongoing maintenance. At that time, the lease will be assigned from Pine Trails Partners to the City. Thus, MWD is requesting that the City execute an acknowledgement of the lease and terms therein. Initially,the lease rate will be $2,325 per year and adjusted bi-annually to the Consumer Price Index (CPI), not to exceed 5%. Upon assumption of the lease by the City, the payments will be funded through the Assessment District, less any General Benefit portion. The General Benefit is estimated to be $233 per year and will need to be paid from the General Fund. The formation of the District will be submitted in the near future and will have provisions to accommodate the bi-annual increases. The final costs for the maintenance and incidental expenses for the overall District has not yet been determined but is estimated to be $33,250, including the District's portion of the proposed lease payments. The initial annual per lot assessment is estimated to be $852. Without the lease, the area would need to be excluded from the Assessment District and would remain in a non-maintained condition. In the event the District is not formed, which is unlikely since it is a condition of this development and presently under one ownership, the City would not assume the lease. The assignment and acceptance of the lease will be submitted at a future date for your consideration. Staff Report—Continued FINANCIAL IMPACT: Annual lease payment of$2,325 to be paid through the Assessment District and General Fund ($2,092 by the District and $233 by the General Fund) once the District is formed and assumes the maintenance of this area and subject to bi-annual CPI increase not to exceed 5%. RECOMMENDATION: Adopt Resolution. LOCATION OF PROPOSED ASSESSMENT 0 DISTRICT NO. 1055 Ohio Beim q�e °t iti 9 e ° q° CAL-STATE UNIVERSITY 18 is No.«Pa,kBL,d No Scale 40th St. 330 a o' o Marshall Blvd. � a� 259 > Highland Ave. c zW i. o 0 8 B Base Line St. in ° x gth St a c 5th St. Rialto Ave. > > � 15 Mill St. o 0 U 210 a ao> Orange Show Rd. o, 0 VICINITY MAP CITY OF SAN BERNARDINO Proposed Landscape Maintenance DEVELOPMENT SERVICES DEPARTMENT Assessment District No. 1055 — REAL PROPERTY SECTION Pine Avenue and Redwood Street ® indicates un—incorporated areas Area (TT. 17716) within City's Sphere of Influence Created by: LaSZIooga55y Date: PROPOSED LEASE WITH THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA FOR LANDSCAPE MAINTENANCE WITHIN PROPOSED ASSESSMENT DISTRICT NO.1055 - PINE AVENUE AND REDWOOD STREET AREA LANDSCPAE MAINTENANCE ASSESSMENT DISTRICT A OHIO AVENUE A a s 2 J 4 I IO ' II i I 612 3 I R ' R i 14 It i 7 � � It IS 1 I If 6 1' 16 `% I i PROPOSED MWD w $ 5 ; 17 I6 t I LEASE AREA Z ! I A _ REDWOOD_y__STREET ___ L¢ A PROPOSED z § IB 2e 21 § 22 23 ASSESSMENT DISTRICT If JI >o 28 26 # 27 BOUNDARY A (Tentatve Tract --w--- No. 17716) A 32 r k k JJ J4 35 i3' P5 _ J7 Ai J6 i 24 ASS BELMONT AVENUE <Iy 7F�,V I1�� CITY OF SAN BERNARDINO Cre�tedby- DEPARTMENT OF DEVELOPMENT SERVICES Date: REAL PROPERTY SECTION 01-95-0-7 1 COPY 2 RESOLUTION NO. 3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF AN ACKNOWLEDGEMENT OF A LEASE 4 BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN 5 CALIFORNIA AND PINE TRAILS PARTNERS, LLC, RELATIVE TO A PROPOSED ASSESSMENT DISTRICT IN THE PINE AVENUE AND REDWOOD STREET AREA, 6 TENTATIVE TRACT NO. 17716. 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 8 OF SAN BERNARDINO AS FOLLOWS: 9 SECTION 1. That the Mayor of the City of San Bernardino is hereby authorized and 10 directed to execute on behalf of said City, an Acknowledgement of a Lease between the 11 Metropolitan Water District of Southern California and Pine Trails Partners, LLC. relative to a 12 proposed Assessment District in the Pine Avenue and Redwood Street area, pursuant to the 13 14 Conditions of Approval for Tentative Tract No. 17716, said lease is attached hereto as Exhibit "1" 15 and made a part hereof. 16 SECTION 2. This resolution is rescinded if the parties to the contract fail to execute it 17 within sixty (60) days of the passage of the resolution. 18 19 20 21 22 23 24 25 26 27 28 7`0 . All: 01/23/2007 1 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE 2 EXECUTION OF AN ACKNOWLEDGEMENT OF A LEASE BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AND PINE TRAILS PARTNERS, LLC,RELATIVE 3 TO A PROPOSED ASSESSMENT DISTRICT IN THE PINE AVENUE AND REDWOOD STREET, TENTATIVE TRACT NO. 17716. 4 5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a meeting thereof 7 held on the day of , 20 by the following vote,to-wit: 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 10 ESTRADA 11 BAXTER 12 BRINKER 13 DERRY 14 KELLEY 15 JOHNSON 16 17 MCCAMMACK 18 City Clerk 19 20 The foregoing resolution is hereby approved this day of 20 21 22 PATRICK J. MORRIS, Mayor 23 City of San Bernardino 24 Ap roved as to form: 25 • �ri`"'"` J ES F. PENMAN, City Attorney 26 27 28 01/23/07 2 LEASE R. L. 2470 MWD Foothill Feeder (Fee) MWD Parcel No. 1606-30-5 (Ptn) APN 0261-101-08 This Lease is made by and between THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, a public corporation, hereinafter referred to as Lessor, and PINE TRAILS PARTNERS LLC, hereinafter referred to as Lessee. 1. DESCRIPTION OF PROPERTY. Lessor hereby leases to Lessee, on the terms hereinafter set forth, that certain property hereinafter referred to as Property. Said Property is described in Exhibit "A" and shown on Exhibit`B" attached hereto and incorporated herein by reference. 2. TERM. The term of this Lease shall be from year-to-year beginning on March 1, 2007. This Lease may be terminated in accordance with the provisions of Paragraph 9 herein below. 3. USE. Property shall be used for passive greenbelt purposes only. Recreational improvements, organized sporting activities, and equestrian activities are specifically not permitted, in addition to any other uses, which may be considered, at Lessor's sole discretion, deleterious to its current or future operations. Lessee's use of Property shall comply with all applicable laws, ordinances and regulations. Property shall not be used to fulfill requirements for setback, park or open-space dedications or in-lieu fees or any exactions requisite for development. This Lease is subject to Lessor's paramount right to use the Property for water conveyance purposes. Lessor is a public utility and acquired the Property for drinking water conveyance purposes, including but not limited to long term operation and maintenance of its Foothill Feeder. Lessor reserves the right to use the Property for any and all future uses necessary for Lessor's water conveyance purposes, including but not limited to maintenance, repair, and replacement of the existing Pipeline and appurtenant facilities, and/or installation of additional subsurface and surface infrastructure. Lessor's rights to use the Property for water conveyance purposes, as described in this paragraph, are collectively referred to hereafter as the "Paramount Right." Lessor is not responsible for repair or replacement of Lessee's improvements in the event Lessor exercises its Paramount Right. 4. RENT. The basic annual minimum rent shall be $2,325 payable in advance of the next rental term. 5. DETERMINATION OF FUTURE RENT. Commencing as of the end of the second full year of the term and each and every two-year period thereafter, the Rent shall be adjusted by multiplying the Rent in the current year of the Lease by a factor which shall be the EXHIBIT "A" Lease R.L. 2470 -2- ratio of the Annual Average of the United States Consumer Price Index - All Items for the last prior year of the concluding two-year rental period to the Annual Average of the Consumer Price Index - All Items for the year 2005 as reported by the United States, Department of Labor, Bureau of Labor Statistics, and published in its monthly publication "Survey of Current Business" which factor is 195.3 provided, however, that the basic minimum annual Rent shall in no case be less than$2,325.00 notwithstanding the above. Computation of the above ratio shall be carried to four decimal places and rounded to the nearest 1/100th with the computation of Rent resulting from the application of this ratio rounded to the nearest dollar. The calculation to arrive at the new Rent is as follows: New Index Year = Factor x Rent =New Rent Base Index Year In the event that the U.S. Department of Labor, Bureau of Labor Statistics, shall cease to report, or change its method of compiling and/or reporting the Consumer Price Index - All Commodities used in the above ratio, such other index as may be substituted in place thereof by the appropriate governmental agency of the United States then having responsibility for such compilation and reports of Consumer Price Indices, subject to any necessary adjustment of such Index appropriate to its continued use in determining the ratio set forth above, shall be used. In the event that such substitute index is not provided, or proves unsuitable for determining the above ratio, then such other index appropriate to such use, as mutually agreed upon by the parties hereto, shall be used. Notwithstanding the above calculations, the rent increases shall not exceed five percent (5%) at any given adjustment period. 6. RENTAL PAYMENTS. All rental payments shall be made payable to The Metropolitan Water District of Southern California and mailed to Post Office Box 54153, Los Angeles, CA 90054-0153, with the Lease R.L. number noted on the check and on the face of the envelope. 7. LATE PAYMENT CHARGES. Lessee hereby acknowledges that late payment by Lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Lessor within 20 days after such amount shall be due, Lessee shall pay to Lessor a late charge equal to ten percent of such overdue amount. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge will incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event constitute a Lease R.L. 2470 -3- waiver of Lessee's default with respect to such overdue amount, nor prevent Lessor from exercising any of the other rights and remedies granted hereunder. 8. RETURNED CHECK CHARGE. Lessee shall pay to Lessor a fee of$100 for any checks returned, plus, Lessee must pay to Lessor any and all other fees incurred with such return. If Lessee has two returned checks within any 12-month period, Lessor shall not accept personal checks for any current or future payments due under this Lease. In this event, acceptable payment shall be in the form of cashier's check, money order, or cash delivered in person to Lessor's Accounts Receivable Section located at 700 North Alameda Street, Los Angeles, CA 90012-2944. 9. TERMINATION. This Lease may be terminated at any time by Lessor or Lessee upon 30 days' prior written notice. Notice is to be deemed given upon the mailing thereof, postage prepaid, to the recipient at its address set forth below. In the event the Lease is terminated between the anniversary dates in accordance with the provisions of this clause, there shall be a pro rata refund of any rent paid in advance for the remaining term. Violation of any term, covenant, condition or provision contained herein shall be cause for termination of the Lease, unless corrected within ten days after Lessor's written request to do so. 10. LOAD LIMITATION. If Lessee plans to use any equipment or engage in any activity on Property which will impose loads greater than AASHTO H-20, Permittee shall submit the specifications of such equipment for review and written approval by Lessor five working days prior to its use. 11. IMPROVEMENTS. No structures or improvements shall be constructed or maintained on the Property without Lessor's written consent first had and obtained. 12. REMOVAL OF IMPROVEMENTS. All structures and/or other improvements placed on Property by Lessee shall be the personal property of Lessee and shall be removed by Lessee from Property by the last day of the Lease; provided, further, Lessor may keep, or dispose of at Lessee's expense, any real or personal property not so removed. 13. VACATING THE PROPERTY. At the expiration of the term, or at any sooner termination of this Lease, Lessee shall quit and surrender possession of Property and its appurtenances to Lessor in as good order and condition as Property was delivered to Lessee, reasonable wear and tear and damage by the elements excepted. 14. MAINTENANCE. Lessee shall, at its sole cost and expense, keep Property free of weeds, trash and debris, and shall comply with all applicable laws and regulations concerning the use of Property. 1 Lease R.L. 2470 -4- 15. HAZARDOUS SUBSTANCES. For purposes of this Lease, the term "Hazardous Substances" means: (a) any substance, product, waste, or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act(CERCLA), 42 United States Code Section 9601 et seq.; the Resources Conservation and Recovery Act, 42 United States Code Section 6901 et seq.; the Hazardous Materials Transportation Conservation and Recovery Act, 42 United States Code Section 1801 et seq.; the Resources Conservation and Recovery Act, 42 United States Code Section 6901 et seq.; the Clean Water Act, 33 United States Code Section 1251 et seq.; the Toxic Substances Control Act, 15 United States Code Section 2601 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the California Hazardous Substance Account Act, Health and Safety Code Section 25330 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Section 25249.5 et seq.; California Health and Safety Code Section 25280 et seq. (Underground Storage of Hazardous Substances); the California Hazardous Waste Management Act, Health and Safety Code Section 25170.1 et seq.; California Health and Safety Code Section 25501 et seq. (Hazardous Materials Release Response Plans and Inventory); or the California Porter-Cologne Water Quality Control Act, Water Code Section 13000 et seq., all as amended (the above-cited California state statutes are hereinafter collectively referred to as "the State Toxic Substances Laws"); or any other federal, state, or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Substance, now or at any time hereafter in effect; (b) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory based on negligence,trespass, intentional tort, nuisance or strict liability or under any reported decisions -= of a state or federal court; (c)petroleum or crude oil, other than petroleum and petroleum products which are contained within regularly operated motor vehicles; and(d) asbestos. a. Lessor warrants and represents that as of the date hereof there are no Hazardous Substances in or about Property and that Property and improvements thereon do not violate any applicable Federal, State or local statutes, ordinances, regulations, rules or other requirements, and that there is not presently pending any proceeding before any Federal, State or local tribunal or agency,the outcome of which would diminish or preclude Lessee's use of Property as permitted under the terms of this Lease. Except as so provided, Lessor makes no warranty or representation whatsoever concerning Property, including without limitation,the condition, fitness or utility for any purpose thereof, any improvements thereto or personal property located thereon, or compliance thereof with applicable laws, ordinances or governmental regulations; and the Lessee's right to use Property is strictly on an "as is," basis with all faults; and Lessor hereby disclaims all other warranties whatsoever, express or implied, the condition of the soil (or water), geology, and any warranty of merchantability or habitability or fitness for a particular purpose. b. Except as otherwise specifically permitted under the terms of this Lease, Lessee shall not use, create, store or allow any Hazardous Substances on Property. Fuel and other Hazardous Substances stored in a motor vehicle for the exclusive operation of such vehicle and storage batteries used for emergency power are excepted. Lease R.L. 2470 -5- C. In no case shall Lessee cause or allow the deposit or disposal of any such Hazardous Substances on Property. d. No underground storage tanks shall be installed on Property. e. Lessor or its officers, employees, contractors, or agents shall at all times have the right to go upon and inspect Property and the operations conducted thereon to assure compliance with the requirements herein stated. This inspection may include taking samples for chemical analysis of substances and materials present and/or testing soils on Property and taking photographs. f. Lessee shall, within a reasonable time, either prior to the release by Lessee or following the discovery by Lessee of the presence of, or believed presence of, a Hazardous Substance as defined herein, give written notice to Lessor in the event that Lessee knows or has reasonable cause to believe that any release of a Hazardous Substance has come or will come to be located on or beneath the subject Property. The failure to disclose in a timely manner the release of either a material amount of Hazardous Substance or an amount which is required to be reported to a state or local agency pursuant to law(e.g., California's Hazardous Materials Storage and Emergency Response Act, Health and Safety Code Section 25550 et seq.) may subject Lessee to a default under this Lease in addition to actual damages and other remedies provided by law. Lessee shall immediately clean up and completely remove all Hazardous Substances placed by Lessee on Property, in a manner that is in all respects safe and in accordance with all applicable laws,rules and regulations. g. Lessee shall disclose to Lessor the specific information regarding Lessee's disposal of any Hazardous Substances placed on Property by Lessee and provide written documentation of its safe and legal disposal. h. Breach of any of these covenants, terms, and conditions shall give Lessor the authority to immediately terminate this Lease and/or to shut down Lessee's operations thereon, pending rectification of the breach, in which case, Lessee will continue to be liable under this Lease to remove, and mitigate all Hazardous Substances placed by Lessee on Property. Lessee shall be responsible for, and bear the entire cost of removal and disposal of all Hazardous Substances introduced to the Property by Lessee during Lessee's period of use and possession of Property. Lessor may pass through to Lessee any and all costs of removal and mitigation of Hazardous Substances incurred by Lessor as a result of Lessee's activities on Property. Notwithstanding the foregoing, Lessee shall be responsible for any removal mitigation or decontamination, on or off Property, necessitated by the presence of such Hazardous Substances placed on Property by Lessee. Upon termination of this Lease, Lessee is required, in accordance with all laws, to remove from Property any equipment or improvements placed on Property by Lessee that could be contaminated by Hazardous Substances. Lease R.L. 2470 -6- i. Lessee shall defend, indemnify and hold Lessor and its officers, employees, contractors or agents harmless from any claims, liability, injury, damage, costs, or expenses (including, without limitation, the cost of attorneys' fees) arising as a result of the presence or use of any Hazardous Substances caused to be placed by the Lessee on Property during the term of this Lease. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107, subdivision (e) of CERCLA, 42 United States Code Section 9607, subdivision (e), and to California Health and Safety Code Section 25364, to insure, protect, hold harmless and indemnify Lessor from any liability created by the Lessee pursuant to such sections. I HAVE READ AND UNDERSTAND PARAGRAPH 15 HAZARDOUS SUBSTANCES. Lessee's Initials 16. ACCESS. Lessee shall provide and maintain uninterrupted vehicular access in and across Property to Lessor and its employees, agents and contractors. If applicable, Lessee k, shall provide a means for Lessor to place its locks on gates. 17. ENTRY BY OWNER. Lessee shall permit Lessor to enter upon Property at any reasonable time for the inspection thereof, or at any time in connection with any work which may be required thereon, and Lessor shall not be liable for any damage to Lessee's personal property in the course thereof. 18. PREVIOUS LEASES. In the event there is any existing lease between Lessee and Lessor(or its predecessor-in-interest) covering Property, it is agreed and understood that this Lease shall cancel, supersede and terminate said prior lease as of the effective date of this Lease. 19. ASSIGNMENT OR SUBLETTING. With the exception of a City of San Bernardino Landscape Maintenance District, Lessee shall not assign this Lease, nor sublet Property, without the prior written consent of Lessor, and a consent by Lessor to one assignment shall not be deemed to be a consent to any subsequent assignment or subletting. Any assignment or subletting without the written consent of Lessor shall be void and shall, at the option of Lessor, terminate this Lease. Lessor is hereby exempt from participation and assessment of any kind whatsoever in a Landscape Maintenance District. 20. TAXES. The possessory property interest created by this Lease may be subject to property taxation, and Lessee may be subject to the payment of property taxes levied on such interest by the County. Lessee is required to pay any such tax directly to the County. Lease R.L. 2470 -7- 21. MECHANICS' LIENS. Lessee shall keep Property free from any liens arising out of any work performed, material furnished, or obligations incurred by Lessee, or any tenant or subtenant thereof. 22. WAIVER. The waiver by Lessor or Lessee of any breach of any term, covenant, condition or provision, hereinafter referred to as Terms, contained herein, shall not be deemed to be a waiver of such Terms of any subsequent breach of the same or any other Terms contained herein. The subsequent acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any Terms of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. 23. ATTORNEYS' FEES. The prevailing party in any action brought by either party hereto, based on any claim arising under this Lease, shall be entitled to reasonable attorneys' and/or consultants' fees. 24. LIABILITY INSURANCE. Lessee has furnished insurance in the minimum amount of$1,000,000 in accordance with the Certificate of Insurance attached hereto as Exhibit "C-l." A review of the insurance coverage will be made every two years in order to adjust the coverage to be commensurate with the appropriate insurance coverage existing for similar type leaseholds at the time of review. Failure to maintain a current Certificate of Insurance on file with Lessor evidencing such insurance shall be cause for termination. Said insurance shall meet the following criteria: a. Remain in effect throughout the term of this Lease and any renewals thereof, b. Name Lessor as additional insured, C. Shall obligate the insurance carrier to provide not less than a 30-day notice of cancellation or material change to Lessor affecting the coverage of the policies. Lessor shall have no liability to Lessee or to any insurer, by way of subrogation or otherwise, on account of any loss or damage to Lessee's respective property, or the Project, regardless of whether such loss or damage is caused by the negligence of Lessor or Lessee, arising out of any of the perils or casualties insured against by the property and/or liability insurance policies carried. The insurance policies obtained by Lessee pursuant to this Lease shall permit waivers of subrogation that the insurer may otherwise have against the non-insuring party. In the event the policy or policies do not allow waiver of subrogation prior to loss, Lessee shall, at the request of Lessor, deliver to Lessor a waiver of subrogation endorsement in such form acceptable to Lessor. If such an endorsement is not available and the Lessee's insurer pursues separate legal action against the Lessor, the Lessee shall be responsible for all legal fees and payment of any fiends Lessor is legally held obligated to pay. Prior to an assignment of this Lease to a City of San Bernardino Landscape Maintenance District, the Landscape Maintenance District shall furnish Lessor with a letter evidencing the Lease R.L. 2470 -8- establishment of its self-insurance program. Proof of a bonafide self-insurance program, in accordance with the terms of this section, shall satisfy all insurance requirements under this section. This program shall remain in frill force and effect during the term of this Lease subsequent to the assignment to a Landscape Maintenance District. 25. ASSUMPTION OF RISK AND INDEMNITY. Lessee assumes all risk of loss to itself, which in any manner may arise out of the use of Property under this Lease. Further, Lessee hereby agrees to indemnify and defend Lessor and its directors, officers, and employees against any liability and expense, including the reasonable expense of legal representation whether by special counsel or by Lessor's staff attorneys, resulting from injury to or death of any person, or damage to any property, including property of Lessor, or damage to any other interest of Lessor, including, but not limited to, suit alleging noncompliance with any statute or regulation which in any manner may arise out of the issuing of this Lease, or use by Lessee of Property, or any adjoining land used with Property. 26. AMENDMENTS. The provisions of this Lease may be amended by mutual written consent of the parties hereto. . 27. SECURITY DEPOSIT. Lessee shall deposit with Lessor $2,325 as a guarantee for faithful performance of the conditions of this Lease. Lessor may use such amounts as are reasonably necessary to remedy Lessee's default; in the payment of rent, to repair damages caused by Lessee, to clean the premises, or to replace personal property or appurtenances exclusive of ordinary wear and tear, upon termination of the Lease. No later than two weeks after Lessee has vacated the premises, Lessor shall furnish Lessee with an itemized written statement of the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to Lessee. 28. NO RELOCATION ASSISTANCE. Lessee acknowledges that Lessee is not entitled to relocation assistance or any other benefits under the Uniform Relocation Assistance Act or any other applicable provision of law upon termination of this Lease. 29. This paragraph intentionally left blank. 30. TIME. Time is of the essence of this Lease. 31. NOTICES TO LESSOR. All notices, certification of insurance, and or demands required or permitted to be given to Lessor hereunder shall conspicuously bear the legend "NOTICE UNDER FACILITY LEASE R.L. No. 2470 and Lessee's identification file number, code or ID on the notice itself and on the envelope containing the notice, shall, until contrary instructions are given to Lessee in writing, be effectively given to Lessor when delivered simultaneously by hand or mailed by registered or certified mail, return receipt requested, to Lessor, Attention: Asset Management, The Metropolitan Water District of Southern California, P. O. Box 54153, Los Angeles, California 90054-0153. Lease R.L. 2470 -9- 32. NOTICE TO HOMEBUYERS. Lessee shall provide a complete copy of Lease to each of the homebuyers within Lessee's adjacent development prior to close of homebuyer's escrows. Date Executed: Lessor's Mailing Address: THE METROPOLITAN WATER DISTRICT Post Office Box 54153 OF SOUTHERN CALIFORNIA Los Angeles, CA 90054-0153 Attention: Real Estate Services Unit Jeffrey Kightlinger Telephone: (213) 217-7750 General Manager By Jill T. Wicke Manager, Real Property Development and Management Lessor Date Executed: Lessee's Mailing Address: PINE TRAILS PARTNERS, LLC A California Limited Liability Company 101 Main Street Suite A Seal Beach, CA 90740 Telephone: (562) 430-0503 By James R. Watson Authorized Signatory Approved as to form: �k, J ES F. PENMAN, City Attorney Acknowledgement: CITY OF SAN BERNARDINO By PATRICK J. MORRIS, Mayor f I•:\1I1131'I :1 1 606 317 Portion I 1:oothill Fccder,Rlalto Pi,:�line ia.21:'0 I\VI)Io Pine !'rails Parllters. I.i.C. 'I IMI P01-tioll tai Block 39, irk kIm—n on l.alid and tVater(.'om anu , Subdivision, in the City of San f3cmardino.Comity td San Bernardino- Slate oi-California, its shown on %lap filed in Book 3, Pag-e 9 of Vltlpy. in the Office of the C,uunty Recorder ut said County. :unveNcd to Hie Melropc4it2n Water District of Somhern California ,, Parcel A. bk.(Iciiit [ked recorded April 19, 1971 lit Book 76 41), Pat, of ("official Rewr{Is of said County- EXCEPTING therefrom all that portion of said Parcel A,conveyed to the C'ity of San Bernardino h�- Permanent Easement Dccd recorded March 30, 1 91{13,as Document No.413-093 1)2 of Official Record,of said County. All as shown on Exhibit"l3"attached hereto and made a part hereof. `subject io any and all existing uses, licenses, permits, easements, of way, covenants, conditions and restrictions. EAD OF DESCRIPTION j PRFPARED i-i-IDI R LMY SUPERVISION � G. Peter C. ematit P L.S.6241 Na 2 i Date q •Z► oF AI.,J {'ru)cti •}1rxh�lf_Fecdcr_Riallo•i');,:hn,R�..r��`L.;_:1�16t:6-1;1-j aac FcFruary L.2006 EXHIBIT B Page at 7 PORTION OF BLOCK 39, IRVINGTON LAND AND WATER COMPANY SUBDIVISION M.B. 319, CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA L TI-IIS EXHIBIT IS TO BE ATTACHED TO THE LEGAL DESCRIPTION LEGEND 1 �{ LEASE AL 2470 -30-5 ( Z 1606 PORTION) l l. : 1.783 AC. ; 60, PERMANENT EASEMENT - 'J. PER DOC.NO. 88-093112 O.R. REC. 03-30-1988 �0 / \ Qwo•O' O �.hg N 4 _ 0 owQQ C3` , �w04 t,• ^� ^cw 6F\ Q �co Q Q 0���.�' \,N N D Sl✓ NOT TO SCALE �'-� _v Qj D CL 13 / {1 FXO, f z} No. 2 l VICINITY MAP CA PREPARED UNDER PEWSIO� THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA SITE r FOOTHILL FEEDER LEASE RL 2470 ete iseman P.L.S. 6241 MWD TO PINE TRAILS PARTNERS, LLC. - 1606-30-5 (PORTION) Nor roscncF DATE I �•.. OP-22-4j06 AL 2007-46 COP LEASE R. L. 2470 MWD Foothill Feeder (Fee) MWD Parcel No. 1606-30-5 (Ptn) APN 0261-101-08 This Lease is made by and between THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, a public corporation, hereinafter referred to as Lessor, and i PINE TRAILS PARTNERS LLC, hereinafter referred to as Lessee. 1. DESCRIPTION OF PROPERTY. Lessor hereby leases to Lessee, on the terms hereinafter set forth, that certain property hereinafter referred to as Property. Said Property is described in Exhibit"A" and shown on Exhibit"B" attached hereto and incorporated herein by reference. 2. TERM. The term of this Lease shall be from year-to-year beginning on March 1, 2007. This Lease may be terminated in accordance with the provisions of Paragraph 9 herein below. 3. USE. Property shall be used for passive greenbelt purposes only. Recreational improvements, organized sporting activities, and equestrian activities are specifically not permitted, in addition to any other uses, which may be considered, at Lessor's sole discretion, deleterious to its current or future operations. Lessee's use of Property shall comply with all applicable laws, ordinances and regulations. Property shall not be used to fulfill requirements for setback, park or open-space dedications or in-lieu fees or any exactions requisite for development. This Lease is subject to Lessor's paramount right to use the Property for water conveyance purposes. Lessor is a public utility and acquired the Property for drinking water conveyance purposes, including but not limited to long term operation and maintenance of its Foothill Feeder. Lessor reserves the right to use the Property for any and all future uses necessary for Lessor's water conveyance purposes, including but not limited to maintenance, repair, and replacement of the existing Pipeline and appurtenant facilities, and/or installation of additional subsurface and surface infrastructure. Lessor's rights to use the Property for water conveyance purposes, as described in this paragraph, are collectively referred to hereafter as the "Paramount Right." Lessor is not responsible for repair or replacement of Lessee's improvements in the event Lessor exercises its Paramount Right. 4. RENT. The basic annual minimum rent shall be $2,325 payable in advance of the next rental term. 5. DETERMINATION OF FUTURE RENT. Commencing as of the end of the second full year of the term and each and every two-year period thereafter, the Rent shall be adjusted by multiplying the Rent in the current year of the Lease by a factor which shall be the 2007-46 Lease R.L. 2470 -2- ratio of the Annual Average of the United States Consumer Price Index• - All Items for the last prior year of the concluding two-year rental period to the Annual Average of the Consumer Price Index - All Items for the year 2005 as reported by the United States, Department of Labor, Bureau of Labor Statistics, and published in its monthly publication "Survey of Current Business" which factor is 195.3 provided, however, that the basic minimum annual Rent shall in no case be less than $2,325.00 notwithstanding the above. Computation of the above ratio shall be carried to four decimal places and rounded to the nearest 1/100th with the computation of Rent resulting from the application of this ratio rounded to the nearest dollar. The calculation to arrive at the new Rent is as follows: i New Index Year = Factor x Rent =New Rent Base Index Year In the event that the U.S. Department of Labor, Bureau of Labor Statistics, shall cease to report, or change its method of compiling and/or reporting the Consumer Price Index - All Commodities used in the above ratio, such other index as may be substituted in place thereof by the appropriate governmental agency of the United States then having responsibility for such compilation and reports of Consumer Price Indices, subject to any necessary adjustment of such Index appropriate to its continued use in determining the ratio set forth above, shall be used. i In the event that such substitute index is not provided, or proves unsuitable for determining the above ratio, then such other index appropriate to such use, as mutually agreed upon by the parties hereto, shall be used. Notwithstanding the above calculations, the rent increases shall not exceed five percent (5%) at any given adjustment period. 6. RENTAL PAYMENTS. All rental payments shall be made payable to The Metropolitan Water District of Southern California and mailed to Post Office Box 54153, Los Angeles, CA 90054-0153, with the Lease R.L. number noted on the check and on the face of the envelope. 7. LATE PAYMENT CHARGES. Lessee hereby acknowledges that late payment by Lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges. Accordingly, if any installment of rent or any other sum due from Lessee shall not be received by Lessor within 20 days after such amount shall be due, Lessee shall pay to Lessor a late charge equal to ten percent of such overdue amount. In no event shall the late charge exceed the maximum allowable by law. The parties hereby agree that such late charge will incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event constitute a 2007-46 Lease R.L. 2470 -3- waiver of Lessee's default with respect to such overdue amount, nor prevent Lessor from exercisinc, anv of the other rights and remedies granted hereunder. 8. RETURNED CHECK CHARGE. Lessee shall pay to Lessor a fee of$100 for any checks returned, plus, Lessee must pay to Lessor any and all other fees incurred with such return. If Lessee has two returned checks within any 12-month period. Lessor shall not accept personal checks for any current or fixture payments due under this Lease. In this event, acceptable payment shall be in the form of cashier's check, money order, or cash delivered in person to Lessor's Accounts Receivable Section located at 700 North Alameda Street, Los Angeles, CA 90012-2944. 9. TERMINATION. This Lease may be terminated at anv time by Lessor or Lessee upon ,0 days' prior written notice. Notice is to be deemed given upon the mailing thereof, postage prepaid, to the recipient at its address set forth below. In the event the Lease is terminated between the anniversary dates in accordance with the provisions of this clause., there shall be a pro rata refund of any rent paid in advance for the remaining term. Violation of any term, covenant, condition or provision contained herein shall be cause for termination of the Lease. unless corrected within ten days after Lessor's written request to do so. 10. LOAD LIMITATION. If Lessee plans to use any equipment or engage in any activity on Property which will impose loads greater than AASHTO H-20, Permittee shall submit the specifications of such equipment for review and written approval by Lessor five working days prior to its use. 11. IMPROVEMENTS. No structures or improvements shall be constructed or maintained on the Property without Lessor's written consent first had and obtained. 12. REMOVAL OF IMPROVEMENTS. All structures and/or other improvements placed on Property by Lessee shall be the personal property of Lessee and shall be removed by Lessee from Property by the last day of the Lease; provided, further. Lessor may keep, or dispose of at Lessee's expense, any real or personal property not so removed. 1 VACATING THE PROPERTY. At the expiration of the term, or at any sooner termination of this Lease, Lessee shall quit and surrender possession of Property and its appurtenances to Lessor in as good order and condition as Property was delivered to Lessee, reasonable wear and tear and damage by the elements excepted. 14. MAINTENANCE. Lessee shall, at its sole cost and expense, keep Property free of weeds, trash and debris, and shall comply with all applicable laws and regulations concerning the use of Property. i i 2007-46 Lease R.L. 2470 -4- 15. HAZARDOUS SUBSTANCES. For purposes of this Lease, the term "Hazardous Substances" means: (a) any substance, product, waste, or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 United States Code Section 9601 et seq.; the Resources Conservation and Recovery Act. 42 United States Code Section 6901 et seq.; the Hazardous Materials Transportation Conservation and Recovery Act. 42 United States Code Section 1801 et seq.; the Resources Conservation and Recovery Act. 42 United States Code Section 6901 et seq.; the Clean Water Act, 33 United States Code Section 1251 et seq.; the Toxic Substances Control Act, 15 United States Code Section 2601 et seq.; the California Hazardous Waste Control Act. Health and Safety Code Section 25100 et seq.; the California Hazardous Substance Account Act, Health and Safety Code Section 215330 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Section 25249.5 et seq.; California Health and Safety Code Section 25280 et seq. (Underground Storage of Hazardous Substances); the California Hazardous Waste Management Act, Health and Safety Code Section 25170.1 et seq.; California Health and Safety Code Section 25501 et seq. (Hazardous Materials Release Response Plans and Inventory); or the California Porter-Cologne Water Quality Control Act, Water Code Section 13000 et seq., all as amended (the above-cited California state statutes are hereinafter collectively referred to as "the State Toxic Substances Laws"); or any other federal, state, or local statute, law, ordinance, resolution. code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Substance, now or at any time hereafter in effect; (b) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory based on j negligence, trespass, intentional tort, nuisance or strict liability or under any reported decisions of a state or federal court; (c) petroleum or crude oil, other than petroleum and petroleum products which are contained within regularly operated motor vehicles, and (d) asbestos. a. Lessor warrants and represents that as of the date hereof there are no Hazardous Substances in or about Property and that Property and improvements thereon do not violate any applicable Federal, State or local statutes, ordinances, regulations. rules or other requirements, and that there is not presently pending any proceeding before any Federal, State or local tribunal or agency, the outcome of which would diminish or preclude Lessee's use of Property as permitted under the terms of this Lease. Except as so provided, Lessor makes no warranty or representation whatsoever concerning Property, including without limitation, the condition, fitness or utility for any purpose thereof, any improvements thereto or personal property located thereon, or compliance thereof with applicable laws, ordinances or governmental regulations; and the Lessee's right to use Property is strictly on an "as is," basis with all faults; and Lessor hereby disclaims all other warranties whatsoever, express or implied, the condition of the soil (or water), geology, and any warranty of merchantability or habitability or fitness for a particular purpose. b. Except as otherwise specifically permitted under the terms of this Lease, Lessee shall not use, create, store or allow any Hazardous Substances on Property. Fuel and other Hazardous Substances stored in a motor vehicle for the exclusive operation of such vehicle and storage batteries used for emergency power are excepted. 2007-46 Lease R.L. 2470 -5- c. n In no case shall Lessee cause or allo,.�- the deposit or disposal of any such Hazardous Substances on Property. d. No underground storage tanks shall be installed on Property. e. Lessor or its officers, employees, contractors, or agents shall at all times have the right to go upon and inspect Property and the operations conducted thereon to assure compliance liance with the requirements herein stated. This inspection may include _ taking samples for chemical analysis of substances and materials present and/or testing soils on Property and taking g f. Lessee shall, within a reasonable time, either prior to the release by Lessee or following he discovery b , Lessee of the presence of, or believed presence of, a g y P Hazardous Substance as defined herein, give written notice to Lessor in the event that Lessee knows or has reasonable cause to believe that any release of a Hazardous Substance has come or will come to be located on or beneath the subject Property. The failure to disclose in a timely manner the release of either a material amount of Hazardous Substance or an amount which is required to be reported to a state or local agency pursuant to law(e.g., California's Hazardous Materials Storage and Emergence Response Act, Health and Safety Code Section 25550 et seq.) may subject Lessee to a default under this Lease in addition to actual damages and other remedies P rovided by law. Lessee shall immediately clean up and completely remove all Hazardous Substances placed by Lessee on Property, in a manner that is in all respects safe and in accordance with all applicable laws, rules and regulations. g. Lessee shall disclose to Lessor the specific information regarding Lessee's disposal of any Hazardous Substances placed on Property by Lessee and provide written documentation of its safe and legal disposal. h. Breach of any of these covenants, terms, and conditions shall give Lessor the authority to immediately terminate this Lease and/or to shut down Lessee's operations thereon, pending rectification of the breach, in which case, Lessee will continue to be liable under this Lease to remove, and mitigate all Hazardous Substances placed by Lessee on Property. Lessee shall be responsible for, and bear the entire cost of removal and disposal of all Hazardous Substances introduced to the Property by Lessee during Lessee's period of use and possession of Property. Lessor may pass through to Lessee any and all costs of removal and mitigation of Hazardous Substances incurred by Lessor as a result of Lessee's activities on Property. Notwithstanding the foregoing, Lessee shall be responsible for any removal mitigation or decontamination, on or off Property, necessitated by the presence of such Hazardous Substances placed on Property by Lessee. Upon termination of this Lease, Lessee is required, in accordance with all laws, to remove from Property any equipment or improvements placed on Property- by Lessee that could be contaminated by Hazardous Substances. 2007-46 Lease R.L. 2470 -6- i. Lessee shall defend, indemnify and hold Lessor and its officers, employees, contractors or agents harmless from any claims, liability, injury, damage. costs, or expenses (including, without limitation. the cost of attorneys' fees) arising as a result of the presence or use of any Hazardous Substances caused to be placed by the Lessee on Property during the term of this Lease. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107, subdivision (e) of CERCLA. 42 United States Code Section 9607, subdivision (e), and to California Health and Safety Code Section 2364, to insure, protect, hold harmless and indemnify Lessor from any liability created by the Lessee pursuant to such sections. I HAVE READ AND UNDERSTAND PARAGRAPH 15 HAZARDOUS SUBSTANCES. Lessee's Initials 16. ACCESS. Lessee shall provide and maintain uninterrupted vehicular access in and across Property to Lessor and its employees, agents and contractors. If applicable, Lessee shall provide a means for Lessor to place its locks on gates. 17. ENTRY BY OWNER. Lessee shall permit Lessor to enter upon Property at any reasonable time for the inspection thereof, or at any time in connection with any work which may be required thereon, and Lessor shall not be liable for any damage to Lessee's personal property in the course thereof 18. PREVIOUS LEASES. In the event there is any existing lease between Lessee and Lessor(or its predecessor-in-interest) covering Property, it is agreed and understood that this Lease shall cancel, supersede and terminate said prior lease as of the effective date of this Lease. 19. ASSIGNMENT OR SUBLETTING. With the exception of a City of San Bernardino Landscape Maintenance District, Lessee shall not assign this Lease, nor sublet Property, without the prior written consent of Lessor, and a consent by Lessor to one assignment shall not be deemed to be a consent to any subsequent assignment or subletting. Any assignment or subletting without the written consent of Lessor shall be void and shall, at the option of Lessor, terminate this Lease. Lessor is hereby exempt from participation and assessment of any kind whatsoever in a Landscape Maintenance District. 20. TAXES. The possessory property interest created by this Lease may be subject to property taxation, and Lessee may be subject to the payment of property taxes levied on such interest by the County. Lessee is required to pay any such tax directly to the County. 2007-46 Lease R.L. 21470 -7- 21. MECHANICS' LIENS. Lessee shall keep Property free from any liens arising out of any work performed, material furnished, or obligations incurred by Lessee, or any- tenant or subtenant thereof. 22. WAIVER. The waiver by Lessor or Lessee of any breach of any term, covenant, condition or provision, hereinafter referred to as Terms, contained herein, shall not be deemed to be a waiver of such Terms of any subsequent breach of the same or any other Terms contained herein. The subsequent acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any Terms of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. 23. ATTORNEYS' FEES. The prevailing party in any action brought by either party hereto, based on any claim arising under this Lease, shall be entitled to reasonable attorneys' and/or consultants' fees. 24. LIABILITY INSURANCE. Lessee has furnished insurance in the minimum amount of$1,000,000 in accordance with the Certificate of Insurance attached hereto as Exhibit "C-l." A review of the insurance coverage will be made every two years in order to adjust the coverage to be commensurate with the appropriate insurance coverage existing for similar type leaseholds at the time of review-. Failure to maintain a current Certificate of Insurance on file with Lessor evidencing such insurance shall be cause for termination. Said insurance shall meet the following criteria: a. Remain in effect throughout the term of this Lease and any renewals thereof, b. Name Lessor as additional insured, C. Shall obligate the insurance carrier to provide not less than a 30-day notice of cancellation or material change to Lessor affecting the coverage of the policies. Lessor shall have no liability to Lessee or to any insurer, by way of subrogation or otherwise, on account of any loss or damage to Lessee's respective property, or the Project, regardless of whether such loss or damage is caused by the negligence of Lessor or Lessee, arising out of any of the perils or casualties insured against by the property and/or liability insurance policies carried. The insurance policies obtained by Lessee pursuant to this Lease shall permit waivers of subrogation that the insurer may otherwise have against the non-insuring party. In the event the policy or policies do not allow waiver of subrogation prior to loss, Lessee shall, at the request of Lessor, deliver to Lessor a waiver of subrogation endorsement in such form acceptable to Lessor. If such an endorsement is not available and the Lessee's insurer pursues separate legal action against the Lessor, the Lessee shall be responsible for all legal fees and payment of any funds Lessor is legally held obligated to pay. Prior to an assignment of this Lease to a City of San Bernardino Landscape Maintenance District, the Landscape Maintenance District shall furnish Lessor with a letter evidencing the 2007-46 Lease R.L. 2470 -8- establishment of its self-insurance _ �s�ranee Proof of a bonafide self-insurance program, in accordance with the terms of this section, shall satisfy all insurance requirements.under this section. This program shall remain in full force and effect during the term of this Lease subsequent to the assignment to a Landscape Maintenance District. 25. ASSUMPTION OF RISK AND INDEMNITY. Lessee assumes all risk of loss to itself, which in any manner may arise out of the use of Property under this Lease. Further. Lessee hereby agrees to indemnifv and defend Lessor and its directors. officers, and employees against any liability and expense, including the reasonable expense of legal representation whether by special counsel or by Lessor's staff attorneys, resulting from injury to or death of any person, or damage to any propertv, including property of Lessor, or damage to any other interest of Lessor, including, but not limited to, suit alleging noncompliance with any statute or regulation which in any manner may arise out of the issuing of this Lease, or use by Lessee of Property, or any adjoining land used with Property. 26. AMENDMENTS. The provisions of this Lease may be amended by mutual written consent of the parties hereto. 27. SECURITY DEPOSIT. Lessee shall deposit with Lessor$2,;25 as a guarantee for faithful performance of the conditions of this Lease. Lessor may use such amounts as are reasonably necessary to remedy Lessee's default; in the payment of rent, to repair damages caused by Lessee, to clean the premises, or to replace personal property or appurtenances exclusive of ordinary wear and tear, upon termination of the Lease. No later than two weeks after Lessee has vacated the premises, Lessor shall furnish Lessee with an itemized written statement e nt of the basis for, and the amount of, any security received and the disposition of the securit y and shall ll return any remaining portion of the security to Lessee. 28. NO RELOCATION ASSISTANCE. Lessee acknowledges that Lessee is not entitled to relocation assistance or anv other benefits under the Uniform Relocation Assistance Act or any other applicable provision of law upon termination of this Lease. 29. This paragraph intentionally left blank. 30. TIME. Time is of the essence of this Lease. 31. NOTICES TO LESSOR. All notices, certification of insurance, and or demands required or permitted to be given to Lessor hereunder shall conspicuously bear the legend "NOTICE UNDER FACILITY . 247 - C LITY LEASE R.L. No _ 0 and Lessee's identification file number, code or ID on then v once itself and on the envelope e containin the g once, shall, until contrary instructions are given to Lessee in writing, be effectively given to Lessor when delivered simultaneously by hand or mailed by registered or certified mail, return receipt requested, to Lessor, Attention: Asset Management The Dist Metropolitan Water p District of Southern California, P. O. Box 54153, Los Angeles, California 90054-0153. 2007-46 Lease R.L. 2470 -9- 32. NOTICE TO HOMEBUYERS. Lessee shall provide a complete copy of Lease to each of the homebuyers within Lessee's adjacent development prior to close of homebuyer's escrows. Date Executed: Lessor's Mailing Address: THE METROPOLITAN WATER DISTRICT Post Office Box 54153 OF SOUTHERN CALIFORNIA Los Angeles, CA 90054-0153 Attention: Real Estate Set-vices Unit Jeffrey Kightlinger Telephone: (213) 217-7750 General Manager By Jill T. Wicke Manager, Real Property Development and Management ement Lessor Date Executed: Lessee's Mailing Address: PINE TRAILS PARTNERS, LLC A California Limited Liability Company Y 101 Main Street Suite A Seal Beach. CA 90740 Telephone: (562) 430-0503 By James R. Watson Authorized Signatory Approved as to form: ,00, 1,A�, 10 ES F. PENMAN, City Attorney Acknowledgement: CITY OF SAN BERNARDINO By PATRICK.I. MORRIS, Mayor 2007-46 Vx IH It U I" . �60(, 30 (PI)I-n0M oorl-kill I Q,:dcl R 1.11!r) VU -, I.,0 MWO lo I 11.1t port I ock 1;�mt-%w I and :Intl \V.acr Cf.Illarn Sk;l.)k I*,,,,)Sjun. in rite C it v ,r San licrilm,ifillo. Cou Ill,, ul San licin.1rdl;m. as shown till Vap I-Ilud in Book 3, llwc 9 of in the Otlice (d, the Cutill(v kc::vldvr kll*Said cotllig, cunyeycd to I he Vetrupoll(ill \V,I(cr I)ls(rict tfl Soiithci n -,i,; Parcel (ic:i:it Decd I ccorded Arm! 19, 19 7 1 1;, nook 7(j il). ;wc -1 of )(boil( i"'ect,rd,of ;aid (otilliv. EXCEPTING therefrom all that portion of ;aid Farce! A, cott%e)cd to the City of'Sall Bernardino hp Perimment Casement Oced recorded March 30, 10.9.111� Document No. 39-093112 of Offic[:I I Record:of Said("minty. All is shown on Exhib:t.-B" attached hcrelt,and made a part hereof. Stibieci to any and all existing tlscq. I ccn�-.es I -, perlillis, ea.wnlelllF, m-,ht:of way, co%elltlllt;, conditions and restrictions. EAD OF DFSCRIPTION PRFPARED UNDFR MY S1,1'I:RVI.cWN G. Pctcr G. W6eman P.L.S. 624 1 (L I. J A I 2007-46 EXHIBIT B Page 1 of PORTION OF BLOCK 39, IRVINGTON LAND AND WATER COMPANY SUBDIVISION M.B. 3/9, CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA THIS EXHIBIT IS TO BE ATTACHED TO THE LEGAL DESCRIPTION LEGEND r /r� LEASE RL 2470 ` -Diy%' f` '/• 1606-30-5 (PORTION) 1.783 AC- i �o o, f•'moo, iT,,�` PERMANENT EASEMENT �__ %f '•,� PER DOC.NO. 88-093112 O.R. REC. 03-30-1988 �' qF ' Pv �f 4-v N c r NOT TO SCALE L - i Fxp. >} No. 2 1 VICINITY MAP \ i ~ " PREPARED UNDER �i� tint` PERVISION THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA SITES FOOTHILL FEEDER i ; ete i"W seman P.LS. 6241 LEASE RL 2470 MWD TO PINE TRAILS PARTNERS, LLC. Na►,o DATE 1606-30-5 (PORTION) �.j?'Ci,) f;+rl;r�!.+�!;Y/ex!iC:;6!� iLi7�1C,� ri-?%C.(15 Al_ CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLERK'S OFFICE Records and Information Management(RIM) Program DATE: February 23, 2007 TO: Laszlo "Les"Fogassy Development Services Department FROM: Linda Sutherland, Deputy City Clerk RE: Transmitting Documents for Signature—Resolution 2007-46 At the Mayor and Common Council meeting of February 20, 2007 the City of San Bernardino adopted Resolution No. 2007-46 — Resolution of the City of San Bernardino authorizing and directing the execution of an acknowledgement of a Lease between the Metropolitan Water District of Southern Cali f ornia and Pine Trails Par t ners LLC, relative to a proposed Assessment District in the Pine Avenue and Redwood Street area, Tentative Tract No. 17716 Attached are one (1) original "Lease Agreement" and three (3) duplicate originals of the agreement to be executed by the parties. Please obtain signatures in the appropriate locations and return the ORIGINAL Agreement to the City Clerk's Office as soon as possible, to Margaret Fedor. Please retain one (1) duplicate original of the agreement for your records and forward duplicate originals to the appropriate party. Please be advised that the agreement will be null and void if not executed within sixty (60) days, or by Monday,April 23, 2007. If you have any questions, please do not hesitate to contact Margaret Fedor at ext. 3206. Thank you. I hereby acknowled e ei t of the above mentioned documents. I Signed: Date: Please sign and return Z��/Q � Fedor Ma From: Fedor—Ma Sent: Thursday, April 05, 2007 8:34 AM To: Fogassy_Le Subject: Pending Agreements Good morning Les, Have you by chance received the executed documents for the following resolutions adopted at the Mayor and Common Council meeting of February 20, 2007: 2007-46 -Resolution of the City of San Bernardino authorizing and directing the execution of an acknowledgement of a Lease between the Metropolitan Water District of Southern California and Pine Trails Partners, LLC, relative to a proposed Assessment District in the Pine Avenue and Redwood Street area, Tentative Tract No. 17716. 2007-47 -Resolution of the City of San Bernardino authorizing and directing the execution of a Right of Way Contract for a temporary construction easement with the State of California for property generally located at the northeast corner of Valley Street and Walkinshaw Street relative to the widening of the I-215 Freeway. If so, could you please provide us with the copy to be filed with the Resolution. The deadline date to be executed is April 23, 2007. Thanks Margaret Tracking: Recipient Delivery Fogassy_Le Delivered:4/5/2007 8:34 AM 1