HomeMy WebLinkAbout04 AMENDMENT NO. 2 TO LICENSE AGREEMENT FOR LEMON GROVE MAINTENANCE AT CITRUS RANCH PARKAgenda Item 4
Reviewed:
AGENDA REPORT City Manager
Finance Director N/A
MEETING DATE: MAY 7, 2019
TO: MATTHEW S. WEST, CITY MANAGER
FROM: DAVID A. WILSON, DIRECTOR, PARKS & RECREATION SERVICES
SUBJECT: AMENDMENT NO. 2 TO LICENSE AGREEMENT FOR LEMON GROVE
MAINTENANCE AT CITRUS RANCH PARK
SUMMARY:
Amendment No. 2 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, 2018,
to June 30, 2020). In addition, the Amendment provides for the automatic renewal and
extension of the License Agreement for one additional two-year term (July 1, 2020, to
June 30, 2022). 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. 2 to the
license agreement between the City and Garcia Farming, Inc. for lemon grove
maintenance at Citrus Ranch Park and authorize the Mayor 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.
CORRELATION TO THE STRATEGIC PLAN:
This project advances Goal C of the City of Tustin Strategic Plan regarding Financial
Strength by outsourcing the lemon grove operation to the private sector.
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 (2010-2012) as well as
the three successive extensions (2012-2018), 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, maintained the area for weeds, and made improvements to the grove's
irrigation system to optimize grove production.
The proposed Amendment No
and is ready for ex` cution.
�6
2 has been reviewed and approved by the City Attorney
David. -A. Wilson
Director, Parks and Recreation Services
Attachment: Amendment No. 2 Citrus Ranch Park Lemon Grove
AMENDMENT NO. 2 TO EXTEND LICENSE AGREEMENT REGARDING
LEMON GROVE MAINTENANCE AT CITRUS RANCH PARK
This Amendment No. 2, dated for the purposes of identification only this day of
, 2019, 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"), which is incorporated herein
by reference;
2. On June 19, 2012, the CITY and LICENSEE extended the License for three (3) two-year
terms which expired on June 30, 2018; and
3. The CITY and LICENSEE both desire to extend the term of the License again.
NOW THEREFORE, CITY and LICENSEE agree as follows:
A., 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, 2018, to June 30, 2020 ("First Extension"). Upon expiration
of the First Extension, the License shall automatically renew for an additional two-year
term, running from July 1, 2020, to June 30, 2022 ("Second Extension"). Prior to the
commencement of the Second 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.
B. 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. 2 to be executed on the
dates hereinafter respectively set forth.
Dated:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
"CITY"
CITY OF TUSTIN
Charles E. Puckett
Mayor
"LICENSEE"
Dated:
GARCIA FARMING, INC.
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