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HomeMy WebLinkAbout03 LICENSE AGREEMENT AMENDMENT 1 -LEMON GROVE MAINTENANCE AT CITRUS RANCH PARKMEETING DATE: JUNE 19, 2012 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DAVID A. WILSON. DIRECTOR. PARKS & RECREATION SERVICES DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER SUBJECT: AMENDMENT NO. 1 TO LICENSE AGREEMENT FOR LEMON GROVE MAINTENANCE AT CITRUS RANCH PARK SUMMARY: Amendment No. 1 would extend the term of the License Agreement for lemon grove maintenance at Citrus Ranch Park with Garcia Farming, Inc. for two years (July 1, 2012 to June 30, 2014). In addition, the Amendment provides for the automatic renewal and extension of the License Agreement for two additional two -year terms (July 1, 2014 to June 30, 2016 and July 1, 2016 to June 30, 2018 respectively). Either party may prevent the automatic renewal and extension of the agreement by providing no less than 30 -days written notice to the other party. RECOMMENDATION: It is recommended that the City Council approve the attached Amendment No. 1 to the license agreement between the City and Garcia Farming, Inc. for lemon grove maintenance at Citrus Ranch Park and authorize the Mayor and City Council to execute the Amendment on behalf of the City. FISCAL IMPACT: It is anticipated the City will save approximately $60,000 annually in maintenance costs by licensing the maintenance of the lemon grove at Citrus Ranch Park. BACKGROUND: Since the opening of Citrus Ranch Park on February 27, 2010 the City has been responsible for the care and maintenance of the active and passive areas in the park, including the lemon grove. The lemon grove at Citrus Ranch Park presented a unique maintenance challenge for City staff since management of an active agricultural crop is not within the normal duties or expertise of staff. Initial investigation and proposals to manage and maintain the lemon grove included: an in -house maintenance option, grove maintenance only contracts, maintenance and supervision of harvesting contracts, or a grove license /lease agreement, staff determined the best alternative for the City was to lease the lemon grove to a skilled farmer. Only, Garcia Farming, Inc. was willing or equipped to enter into a two -year license agreement to farm the grove to specified standards with the provision the City will pay for the cost of water. During the term of the original two (2) year License Agreement, Garcia Farming, Inc. has operated in good faith and has diligently maintained and harvested the lemon grove to the satisfaction of the City. In addition, at its own expense, Garcia Farming, Inc. has replaced unhealthy or damaged trees, added trees to vacant areas, pruned and fertilized, and made improvements to the grove's irrigation system to optimize grove production. The proposed E and is ready for f No. 1 has been reviewed and approved by the City Attorney Director, Parks and Recreation Services Stack, P.E. Public Works /City Engineer Attachment: Amendment No. 1 Citrus Ranch Park Lemon Grove AMENDMENT NO. 1 TO EXTEND LICENSE AGREEMENT REGARDING LEMON GROVE MAINTENANCE AT CITRUS RANCH PARK This Amendment No. 1, dated for the purposes of identification only this day of 2012, is made and entered into by and between the CITY OF TUSTIN, a municipal corporation, (hereinafter referred to as "CITY "), and "Garcia Farming, Inc." hereinafter referred to as, "LICENSEE." RECITALS 1. On June 15, 2010, the CITY and LICENSEE entered into the Citrus Ranch Lemon Grove License for maintenance and preservation of approximately 900 existing lemon trees within an 8 -acre area of the Citrus Ranch Park (the "License "); 2. The License has a two -year term, which will expire on June 30, 2012; and 3. The CITY and LICENSEE both desire to extend the term of the License. NOW THEREFORE, CITY and LICENSEE agree as follows: LICENSE EXTENSION CITY and LICENSEE hereby agree to extend the term of the License for one two -year term, which shall run from July 1, 2012 to June 30, 2014 ( "First Extension "). Upon expiration of the First Extension, the License shall automatically renew for two additional two -year terms, running from July 1, 2014 to June 30, 2016 ( "Second Extension ") and July 1, 2016 to June 30, 2018 ( "Third Extension "). Prior to the commencement of either the Second Extension or the Third Extension, either party may prevent the automatic renewal and term extension by providing no less than 30 -days written notice to the other party. In such an event, the License shall terminate upon the expiration of the extension period during which the written notice was received. LICENSE REMAINS IN EFFECT Except as specifically amended herein, all other terms and conditions of the License shall remain in effect. IN WITNESS WHEROF, the parties have caused this Amendment No. 1 to be executed on the dates hereinafter respectively set forth. ,,CITY" CITY OF TUSTIN Dated: John Nielsen Mayor ATTEST: Pamela Stoker City Clerk APPROVED AS TO FORM: David Kendig City Attorney "LICENSEE" Dated: GARCIA FARMING, INC. M Name: Title: