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HomeMy WebLinkAboutCalifornia State Lands Commission - 2015-06-15STATE OF CALIFORNIA EDMUND G BROWN JR , Governor CALIFORNIA STATE LANDS COMMISSION 100 Howe Avenue, Suite 100-South Sacramento, CA 95825-8202 Joan L Flynn City Clerk 2000 Main Street Huntington Beach, CA 92648 JENNIFER LUCCHESI, Executive Officer (916) 574-1800 FAX (916) 574-1810 California Relay Service From TDD Phone 1-800-735-2929 from Voice Phone 1-800-735-2922 Contact Phone. (916) 574-0732 Contact FAX. (916) 574-1835 File Ref W 26799/PRC 9211 9 Subject General Lease — Public Agency Use Dear Ms Flynn Enclosed is your fully executed lease, PRC 9211 9, for the construction of a 14-inch diameter water pipeline located in the main channel of Huntington Harbour, near the city of Huntington Beach, Orange County In reference to Section 2, Paragraph 6, of the Lease, Lessee shall submit the final engineering drawings and other material requested fourteen days prior to the start of the construction The Commission appreciates your cooperation and patience in helping to complete this transaction Please feel free to write or call if you have any questions Sincerely, 4V1 � Cheryl Hudson Public Land Management Specialist Enclosure RECORDED AT THE REQUEST OF AND WHEN RECORDED MAIL TO STATE OF CALIFORNIA California State Lands Commission Attn Title Unit 100 Howe Avenue, Suite 100-South Sacramento, CA 95825-8202 STATE OF CALIFORNIA OFFICIAL BUSINESS Document entitled to free recordation pursuant to Government Code Section 27383 A P N 178-023-04,13 & 15 County Orange LEASE NO. PRC 9211.9 SPACE ABOVE THIS LINE FOR RECORDERS USE This Lease consists of this summary and the following attached and incorporated parts. Section 1 Basic Provisions Section 2 Special Provisions Amending or Supplementing Section 1 or 3 Section 3 General Provisions Exhibit A Land Description Exhibit B Site and Location Map SECTION 1 BASIC PROVISIONS THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE LANDS COMMISSION (100 Howe Avenue, Suite 100-South, Sacramento, California 95825-8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise, and let to City of Huntington Beach, Public Works Department, hereinafter referred to as Lessee, those certain lands described in Exhibit A hereinafter referred to as Lease Premises, subject to the reservations, terms, covenants, and conditions of this Lease. MAILING ADDRESS: 2000 Main Street Huntington Beach, CA 92648 LEASE TYPE: General Lease — Public Agency Use LAND TYPE: Sovereign Lands LOCATION: Main Channel of Huntington Harbour between Typhoon Lane and Grimaud Lane, city of Huntington Beach, Orange County as described in Exhibit A and shown in Exhibit B (for reference purposes only) attached and by this reference made a part hereof. LAND USE OR PURPOSE: Construction, use, and maintenance, of a 14-inch diameter water pipeline. TERM: 25 years; beginning April 23, 2015; ending April 22, 2040, unless sooner terminated as provided under this Lease. CONSIDERATION: The public use and benefit, subject to modification by Lessor as specified in Paragraph 3 (e) of Section 3 - General Provisions. AUTHORIZED IMPROVEMENTS: A 14-inch diameter water pipeline. EXISTING: X TO BE CONSTRUCTED; CONSTRUCTION MAY BEGIN BY: September 1, 2015 AND BE COMPLETED BY: August 30, 2017 LIABILITY INSURANCE: N/A SURETY BOND OR OTHER SECURITY: N/A SECTION 2 SPECIAL PROVISIONS BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED, OR SUPPLEMENTED AS FOLLOWS: 1. No activities are authorized and no facilities or improvements shall be constructed on the Lease Premises until Lessee provides copies to Lessor's staff, of all necessary permits from the U.S Army Corps of Engineers, California Coastal Commission, city of Huntington Beach, and a copy of CWA 401 Water Quality Certifications from the Santa Ana Regional Water Quality Control Board. 2. Lessee agrees to be bound by and fully carry out, implement, and comply with all mitigation measures and reporting obligations identified as Lessee's or Applicant's responsibility as set forth in the Mitigation Monitoring Program (MMP), attached hereto as Exhibit C, and by reference made a part of this Lease, or as modified by Lessor as permitted by law. 3. At all times while construction activities are taking place, Lessee shall install warning signs at the construction sites, in order to provide notice to the public that construction activities are taking place and to exercise caution. 4 Any equipment to be used on the Lease Premises is limited to that which is directly required to perform the authorized use. Lessee shall restore any portion of the lease premises damaged by the use of said equipment. No refueling, repair, or maintenance of vehicles or equipment will take place on the Lease Premises. 6. Fourteen days prior to start of construction Lessee shall submit the following. a. A set of final engineering drawings as issued for construction, certified by a California registered Civil/Structural Engineer b. Copies of all of the contractor's submittal of the project specifications. Also, include design details of any temporary structures to be constructed and removed, certified by a California registered Civil/Structural Engineer. 7 A construction schedule time line chart showing all significant work activities during the course of the project. 8. Fourteen days prior to commencement of construction activities on the Lease Premises, Lessee shall provide a copy of the construction contractor's work execution plan that provides the details of the manpower, equipment, construction methods and procedures to be employed for each significant activity, safety procedure, etc. Additionally, Lessee shall provide Lessor with a construction schedule time line chart showing all significant work activities that will take place during the course of the project. 9. Prior to the start of construction on the Lease Premises, Lessee shall provide a copy of the contractor's Hazardous Spill Contingency Plan (Plan), with specific designation of the onsite person who will have responsibility for implementing the Plan. This plan will include discussion of various major and minor spill scenarios, spill clean- up materials and equipment available onsite, a spill notification protocol and procedures, and a list of various agencies and their notification numbers In the event of a spill or discharge during construction that impacts State water, notification is to be made as soon as possible to the State Office of Emergency Services at (800) 852-7550 and to the Lessor's 24-hour emergency response number at (562) 590-5201 All other spills shall be reported as specified in the Plan 10. Construction Improvements a. Lessee shall provide a 15-day advance notice to Lessor prior to commencement of construction of the authorized improvements. b. All construction activities shall be carried out in accordance with all applicable safety regulation, permits, and conditions of all other agencies. 11. Within 90 days of completion of the work, Lessee shall provide to Lessor the Following - a. A set of "As -Built" drawings certified by a California registered Civil Engineer, showing the final plan and profiles of the pipelines in the lease area, and all changes or other modifications to the plans as originally approved for construction b A post construction written report confirming completion in accordance with the approved plans, describing any field changes with the justification, and accidents or spills affecting the waterway and corrective measures taken, and any other extraordinary conditions that occurred during the course of the project. The report is to include copies of the quality control test results performed in the main channel of Huntington Harbour including the post construction pressure test and the certified weld inspector's reader sheets for the pipeline welds which are to include those of all failed and repaired welds 12 Lessee agrees that a lease description shall be prepared and reviewed upon receipt of the "As Built" drawings, and the lease shall be amended in order to authorize the final lease area description 13. Lessee shall provide, within 30 days after the improvements authorized by this Lease are placed in service, copies of all monitoring compliance reports for all activities associated with construction and placement of pipeline. 14 All future repairs, structural modifications or abandonment/removal of the pipelines within the Lease Premises shall require prior review and approval by Lessor In the event of an urgent repair requiring immediate action, telephone contact can be made through Lessor's 24-hour emergency response number (562) 590-5201 I, I 15. Lessee shall conduct external inspections of the lease facilities using high resolution side -scan sonar when warranted by extraordinary circumstances such as an accident or a significant seismic event unless the schedule is modified by mutual agreement among the parties hereto Copies of the results of all external inspections including reports, analyses, and recommendations shall be submitted promptly to Lessor at no cost. 16. Lessee shall conduct internal inspection of the lease facilities, and the integrity assessment of the facilities by a California registered Civil/Structural Engineer when warranted by extraordinary circumstances such as an accident of a significant seismic event unless the schedule is modified by mutual agreement among the parties hereto. Copies of the results of all internal inspections including integrity assessments reports, analysis, and recommendations shall be submitted promptly to Lessor at no cost In the event of any conflict between the provisions of Section 2 and Section 3 of this Lease, the provisions of Section 2 shall prevail. SECTION 3 GENERAL PROVISIONS 1 GENERAL In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control 2 DEFINITIONS For the purposes of this Lease, the following terms shall be defined as stated below "Additions" shall be defined as any use or Improvements other than those expressly authorized in this Lease. "Alterations" shall be defined as any material change in the size, scope, density, type, nature, or intensity of Improvements on the Lease Premises from what is authorized in this Lease. Alterations shall also include any modifications, alterations, or renovations of the land or waterways on the Lease Premises other than those authorized by this Lease "Breach" shall be defined as a party's unjustified or unexcused nonperformance of a contractual duty the party is required to immediately perform "Damages" shall include all liabilities, demands, claims, actions or causes of action whether regulatory, legislative orjudicial in nature, all assessments, levies, losses, fines, penalties, damages, costs and expenses, including, without limitation (i) reasonable attorneys', accountants', investigators', and experts' fees and expenses sustained or incurred in connection with the defense or investigation of any such liability, and (h) costs and expenses incurred to bring the Lease Premises into compliance with Environmental Laws, a court order, or applicable provisions of a Regulatory Agency The term "Damages" also includes, expressly, those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise "Default" shall be defined as a material Breach of magnitude sufficient to justify termination of the Lease. `Environmental Law" shall be defined as and include all federal, state, and local environmental, health, and safety laws, statutes, ordinances, regulations, rules, judgments, orders, and notice requirements, which were in effect as of the date of execution of this Lease or are subsequently enacted and lawfully applied hereto, which regulate or relate to (a) the protection or clean-up of the environment, (b) the use, treatment, storage, transportation, handling or disposal of hazardous, toxic or otherwise dangerous substances, wastes or materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions, (d) the preservation or protection of waterways, groundwater, or drinkmg water, (e) the health and safety of persons or property, or (f) impose liability with respect to any of the foregoing, including without limitation, the California Environmental Quality Act (CEQA) [PRC §§ 21000 et seq ], the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) [42 USCS §§ 9601 et seq.], the Resource Conservation and Recovery Act of 1976 (RCRA) [42 USCS §§ 6901 et seq.], the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) [33 USCS §§ 1251 et seq ]; the Toxic Substances Control Act (TSCA) [15 USCS §§ 2601 et seq ]; the Hazardous Materials Transportation Act (HMTA) [49 USCS §§ 1801 et seq.], the Insecticide, Fungicide, Rodenticide Act [7 USCS §§ 136 et seq ], the Superfund Amendments and Reauthorization Act 142 USCS §§ 6901 et seq.], the Clean Air Act [42 USCS §§ 7401 et seq ]; the Safe Drinking Water Act 142 USCS §§ 300f et seq.], the Solid Waste Disposal Act [42 USCS §§ 6901 et seq ], the Surface Mining Control and Reclamation Act [30 USCS §§ 1201 et seq ], the Emergency Planning and Community Right to Know Act [42 USCS §§ 11001 et seq.]; the Occupational Safety and Health Act [29 USCS §§ 655 and 657]; the California Underground Storage of Hazardous Substances Act [H & S C §§ 25280 et seq ], the California Hazardous Substances Account Act [H & S C §§ 25300 et seq ], the California Hazardous Waste Control Act [H & S C §§ 25100 et seq ]; the California Safe Drinking Water and Toxic Enforcement Act [H & S C §§ 24249 5 et seq ], the Porter -Cologne Water Quality Act [Water C §§ 13000 et seq ] together with any amendments of or regulations promulgated under the statutes cited above "Hazardous Material" shall be defined as and include any substance which falls within the definition of hazardous substance, hazardous waste, hazardous material, toxic substance, solid waste, pollutant, or contaminant, under any Environmental Law "Improvements" shall be defined as any modification, alteration, addition, or removal of any material, and any other action which serves to change the condition of the Lease Premises from the natural state whether situated above, on, or under the Lease Premises Improvements include, but are not limited to buildings, structures, facilities, decks, docks, wharves, piers, walks, curbs, bridges, buoys, landscaping, roadways, shorelme protective structures of all types, foundations, pilings or similar support structures whether above or below the water line, fences, utilities, pipelines, and any other construction of any type situated on the Lease Premises "Lease" shall be defined as this lease contract together with all amendments and exhibits. "Lease Premises" shall be defined as the area of land, together with any improvements located thereon, the use and occupancy of which Form51.16 (Rev 10/14) Page 1 of 12 is authorized by this Lease "Lessor" shall be defined as the state of California, acting by and through the California State Lands Commission, including the Commissioners, their alternates and designates, the Executive Officer, and the staff of the California State Lands Commission "Regulatory Agency" shall include any Federal, State, County, Municipal, or Local agency having jurisdiction over the Lease Premises "Repairs" shall be defined as all work of any kind made to maintain, change, restore, strengthen, replace, alter, or otherwise affect any Improvement on the Lease Premises. "Residence" shall be defined as any Improvement, whether permanent, movable, or temporary, or a portion thereof, which is for the time being a home or place of lodging A Residence includes any Improvement affixed to the land such as trailers or cabins, built on a raised foundation such as stilts or pilings, and floating residences such as boats, barges, arks, and houseboats, and any combination of such Improvements which provide residential accommodations to the Lessee or others "Residence" shall not include transitory, intermittent, recreational use of facilities such as campgrounds "Residential Use" shall be defined as Improvements such as, but not limited to, sundecks, and sunrooms which are extensions of, or additions to, the upland property and are not water -dependent uses Although the various uses or Improvements which may fall under this definition may vary by geographic area, lease type, or other factors, it is the intention of the parties to include in this definition all uses and Improvements which are not water -dependent but residential in nature, or those uses and Improvements which are not consistent with common law public trust principles and values 3 CONSIDERATION (a) Absolute Triple Net Lease This Lease is an absolute triple net lease, pursuant to which Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities and repairs or other costs or obligations associated with the Leased Premises, except as expressly stated herein. (b) Rent Lessee agrees to pay Lessor rent as stated in this Lease, in annual installments, for the use and occupancy of the Lease Premises The first installment shall be due on or before the beginning date of this Lease and all subsequent installments shall be due on or before each anniversary of its beginning date during each year of the Lease term, or as otherwise provided in this Lease Said sums shall be paid in lawful money of the United States of America Lessee shall send said rent to the mailing address of Lessor. Timeliness of receipt of rernittances sent by mail shall be governed by the postmark date as stated in Government Code Section 11002 Invoices for rent due may be provided by Lessor as a courtesy. Lessor's failure to, or delinquency in, providing invoices shall neither excuse Lessee from paying rent, nor extend the time for paying rent (c) Modification Lessor may modify the method, amount, or rate of consideration effective on each fifth anniversary of the beginning date of this Lease. Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on any one (1) of the next four (4) anniversaries following such fifth anniversary, without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary of the beginning date No such modification shall become effective unless Lessee is given at least thirty (30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days' notice prior to the effective date of the increase, whichever provides a greater notice period. If the consideration for this Lease is based on a percentage of income, royalties, profits, or any smular business performance indicators, Lessee shall provide Lessor with financial statements and all other documents necessary to determine the relevant basis for income. (d) Penalty and Interest Any installments of rent accruing under this Lease not paid when due shall be subject to a delinquency charge equal to five percent (5%) of the principal sum due Annual payments shall bear interest as specified in Public Resources Code Section 6224 and the Lessor's then existing administrative regulations governing penalty and interest. (e) Non -Monetary Consideration If the consideration to Lessor for this Lease is the public use, benefit, health, or safety, Lessor shall have the right to review such consideration at any time and set a monetary rental if the Lessor, at its sole discretion, determines that such action is in the best interest of the State Lessee's assignment or transfer of this Lease pursuant to Section 3 Paragraph 11 below to any third party Form51.16 (Rev. 10/14) Page 2 of 12 which results in royalties, profits, or any form of compensation, whether monetary or otherwise, shall give Lessor the right to reevaluate the requirements of this Lease as stated in Section 3 Paragraph 11. Lessee shall be given at least thirty (30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days' notice prior to the effective date that this Lease is converted to a monetary rental, whichever provides more notice. (f) Place for Payment of Rent All rent that becomes due and payable under this Lease shall be paid to Lessor in person or by United States mail at the Sacramento Offices of the California State Lands Commission, currently at 100 Howe Avenue, Suite 100-South, Sacramento, CA 95825-8202, or at any other place or places that Lessor may designate by written notice to Lessee Alternately, Lessee may contact Lessor's accounting department for Lessor's current practices for payment by credit card or electronic fund transfer. 4 BOUNDARIES This Lease is not intended to establish the State's boundaries and is made without prejudice to either party regarding any boundary or title claims which may be asserted presently or in the future 5 LAND USE (a) General (1) Lessee shall use the Lease Premises only for the purpose or purposes stated in this Lease and only for the operation and maintenance of the Improvements expressly authorized in this Lease Lessee shall commence use of the Lease Premises within ninety (90) days of the beginning date of this Lease or within ninety (90) days of the date set for construction to commence as set forth in this Lease, whichever is later (2) All demolition, construction, remodeling, reconstruction, maintenance, repairs, removal, or remediation performed on the Lease Premises at any time by Lessee shall first be authorized by all appropriate Regulatory Agencies. Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and shall be solely responsible for all costs incurred thereby. In addition, Lessee shall obtain and comply with preventative or remedial measures required by any environmental reports, assessments, or inspections, including, but not limited to those required by the Cahforma Environmental Quality Act and/or the National Environmental Policy Act, or as otherwise required by law or reasonably requested by Lessor. Nothing in this Lease shall be interpreted as a pre -approval of any permit, certification, or any other precondition required for the use of the Lease Premises. (b) Continuous Use Lessee's use of the Lease Premises shall be continuous from commencement of the Lease until its expiration Lessee's discontinuance of such use for a period of ninety (90) days shall be presumed to be an abandonment unless Lessee demonstrates to Lessor's satisfaction that Lessee's use of the Lease Premises is consistent with similarly situated properties. In the event of an abandonment, Lessor may elect to terminate the Lease as provided in Paragraph 12(a)(3). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease. (c) Repairs and Maintenance (1) Lessor shall not be required to make any Repairs in, on, or about all or part of the Lease Premises Lessee shall, at all times during the term of this Lease and without any cost or expense to Lessor, keep and maintain the Lease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition. (2) Lessee shall make, or cause to be made, any Repairs which may be required by any Regulatory Agency. Lessee shall observe and comply with, any law, statute, ordinance, plan, regulation, resolution, or policy applicable to the Lease Premises in making such Repairs All work shall be performed with reasonable diligence, completed within a reasonable time, and performed at the sole cost and expense of Lessee. (3) Lessee expressly accepts the Lease Premises "as is" and expressly acknowledges that (i) Lessor has made no representations or warranties as to the suitability of the Lease Premises for any Improvements. Lessee shall conduct all tests necessary to determine the suitability of the Lease Premises for any proposed use or Improvements authorized, and (u) Lessor has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to any applicable building codes, zoning ordinances, or other regulations Lessee agrees to inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for Form51 16 (Rev 10/14) Page 3 of 12 the Lessee's intended use, and (ni) Lessee shall neither be entitled to any reduction in rent, nor any extension of the terms of this Lease because of damage to or destruction of any Improvements on the Lease Premises (iv) Lessee and Lessor agree that any Improvements on the Lease Premises constitute the personal property of Lessee and that fixture law does not apply (4) In the event that the Lease Premises is partly, or in whole, comprised of tidal, submerged, or waterfront property, Lessee expressly accepts the hazards involved in using or improving such lands Lessor is not responsible for, and Lessee shall not be reimbursed for nor receive any offset of rent for, any damages or reduced use of the Lease Premises caused by local or invasive flora or fauna, flooding, erosion, sea level rise, storms, freezing, inclement weather of any kind, acts of god, maintenance or failure of protective structures, and any other such hazards. (d) Additions, Alterations, and Removal No Improvements other than those expressly authorized in this Lease shall be constructed by the Lessee on the Lease Premises without the prior written consent of Lessor. Any Additions or Alterations are expressly prohibited. Lessee is also prohibited from any Additions or Alterations which cause a material change to the environmental impact on or around the Lease Premises (e) Enjoyment This Lease is non-exclusive, and is subject to the provisions of Section 3, Paragraph 6 below Lessee shall have the right to exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with Lessee's use and enjoyment of the Lease Premises. (f) Discrimination Lessee, in its use of the Lease Premises, shall not discriminate against any person or class of persons on any basis protected by federal, state, or local law, including- race, color, creed, religion, national ongin, sex, sexual orientation, gender identity, age, marital/parental status, veteran status, or disability. (g) Residential Use Unless otherwise provided for in this Lease, no portion of the Lease Premises shall be used as a location for a Residence, for the purpose of mooring or maintaining a structure which is used as a Residence, or for Residential Uses (h) Commercial Use Unless otherwise provided for in this Lease, the Lease Premises is to be used by Lessee and Lessee's mvitees or guests only Use of the Lease Premises for commercial purposes, conducting a business, whether for profit or otherwise; and any subleasing, rental, or any transaction whereby Lessee directly or indirectly receives compensation from a third party in exchange for use of the Lease Premises shall constitute an immediate Default of this lease with no cure period. RESERVATIONS, ENCUMBRANCES, AND RIGHTS -OF -WAY (a) Reservations (1) Lessor expressly reserves all natural resources in or on the Lease Premises, including but not limited to timber, minerals, and geothermal resources as defined under Public Resources Code sections 6401, 6407, and 6903, respectively, the right to grant and transfer the same, as well as the right to grant leases in and over the Lease Premises which may be necessary or convenient for the extraction of such natural resources Such leasing shall be neither inconsistent nor mcompatible with the rights or privileges of Lessee under this Lease (2) Lessor expressly reserves a right to go on the Lease Premises and all Improvements for any purposes associated with this Lease or for carrying out any function required by law, or the rules, regulations, or management policies of the State Lands Commission Lessor shall have a right of reasonable access to the Lease Premises across Lessee owned or occupied lands adjacent to the Lease Premises for any purpose associated with this Lease (3) Lessor expressly reserves to the public an easement for convenient access across the Lease Premises to other State-owned lands located near or adjacent to the Lease Premises and a right of reasonable passage across and along any right-of-way granted by this Lease, however, such easement or right-of-way shall be neither inconsistent nor mcompatible with the rights or privileges of Lessee under this Lease Fonn51.16 (Rev 10/14) Page 4 of 12 (4) Lessor expressly reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the Lease term for any purpose not inconsistent or mcompatible with the rights or privileges of Lessee under this Lease (b) Encumbrances The Lease Premises may be subject to pre-existing contracts, leases, licenses, easements, encumbrances, and claims and is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose RULES, REGULATIONS, AND TAXES (a) Lessee shall comply with and be bound by all presently existing or subsequently enacted rules, regulations, statutes or ordinances of the State Lands Commission or any Regulatory Agency. Occupancy or use of the Lease Premises provides no exemption from applicable regulations including, but not limited to, federal, state, county and local regulations, regulations promoting public health, safety, or welfare, building codes, zoning ordinances, and sanitation regulations Lessee expressly acknowledges that Regulatory Agencies have jurisdiction over the Lease Premises unless such laws are in direct conflict with state law or public trust principles (b) Lessee understands and agrees that a necessary condition for the granting and continued existence of this Lease is that Lessee obtains and maintains all permits or other entitlements Lessee expressly acknowledges that issuance of this Lease does not substitute for, or provide preference in obtaining authorizations from other Regulatory Agencies. (c) Taxes (1) In addition to the rent due under this Lease, Lessee accepts responsibility for and shall pay any and all real and personal property taxes, including possessory interest taxes, assessments, special assessments, user fees, service charges, and other charges of any description levied, imposed on, assessed, or associated with the leasehold interest, Improvements on the Lease Premises, any business or activity occurring on the Lease Premises, the Lease Premises itself, or any portion thereof; levied by any governmental agency or entity. Such payment shall not reduce rent due Lessor under this Lease and Lessor shall have no liability for such payment (2) In the event that this Lease commences, terminates or expires during a tax year, Lessee shall pay the taxes for the period of such year during which this Lease was in effect (3) Any and all taxes and assessments and installments of taxes and assessments required to be paid by Lessee under this Lease shall be paid when due and the official and original receipt for the payment of such tax, assessment, or installment shall be delivered to Lessor upon request (4) Lessee shall indemnify and hold Lessor, the Lease Premises, and any Improvements now or hereafter located thereon, free and harmless from any liability, loss, or Damages resulting from any taxes, assessments, or other charges required by this Lease to be paid by Lessee and from all interest, penalties, and other sums unposed thereon and from any sales or other proceedings to enforce collection of any such taxes, assessments, or other charges 8 INDEMNITY (a) Lessee's use of the Lease Premises and any Improvements thereon is at Lessee's sole and exclusive risk. (b) In addition to any other obligation to indemnify Lessor as otherwise provided in this Lease, except to the extent caused by the sole negligence and/or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend Lessor, its officers, agents, and employees from any and all Damages resulting from Lessee's occupation and use of the Lease Premises Lessee shall reimburse Lessor in full for all reasonable costs and attorneys' fees, specifically including, without limitation, any Damages arising by reason of (1) The issuance, enjoyment, interpretation, Breach, or Default of this Lease, (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based, (3) The death or injury of any person, of damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the Lease Premises; (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work performed on the Lease Premises or material furnished to the Lease Premises; (7) Lessee's failure to comply with any material legal or other requirement validly imposed on Lessee or the Lease Premises by a Regulatory Agency (c) The reimbursement provisions of this Paragraph 8 shall not apply to any claims, litigation, or other actions which may be brought by either Lessee or Lessor against each other. (d) Nothing in this paragraph shall be construed as requiring that Lessor defend itself against all or any aspect of any challenge to Form51 16 (Rev 10/14) Page 5 of 12 W this Lease or any associated environmental review However, Lessee may take whatever legal action is available to it to defend this Lease or any associated environmental review against any challenge by a third party, whether or not Lessor chooses to raise a defense against such a challenge (e) Lessee shall notify Lessor immediately m case of any accident, injury, or casualty on the Lease Premises 9 INSURANCE (a) Lessee shall obtain and maintam in full force and effect during the term of this Lease comprehensive general liability insurance and property damage insurance, with such coverage and limits as may be reasonably requested by Lessor from time to time, but in no event for less than the sum(s) specified against any and all claims or liability arising out of the ownership, use, occupancy, condition, or maintenance of the Lease Premises and all Improvements (b) The insurance policy shall identify the Lease by its assigned number The specific Improvements shall also be generally identified, as well as their location on state owned property The coverage provided shall be primary and non-contributing Lessee shall keep such policy current Lessor shall be named as a "certificate holder" and/or an "additional interest" on the policy Lessee shall provide Lessor with a current certificate of insurance at all times At Lessor's request, 'Lessee shall provide a full copy of the current insurance policy, along with any and all endorsements or other such documents affecting the coverage Lessor will not be responsible for any premiums or other assessments on the policy (c) The insurance coverage specified m this Lease shall be in effect at all tunes during the Lease term and subsequently until Lessor has either accepted all of the Lease Premises as improved or restored by Lessee as provided elsewhere m this Lease. Lessee shall notify Lessor within five (5) business days if the insurance is canceled for any reason 10 SURETY BOND (a) When required by Section 1 of this Lease, Lessee shall provide a surety bond or other security device acceptable to Lessor, for the specified amount, and naming the State of California, California State Lands Commission as the assured, to guarantee to Lessor the faithful observance and performance by Lessee of all of the terms, covenants, and conditions of this Lease (b) Lessor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need for security The surety bond or other security device may be increased on each fifth anniversary of the beginning date of this Lease Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one (1) of the next four (4) anniversaries following such fifth anniversary without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary No such modification shall become effective unless Lessee is given at least thirty (30) days' notice prior to the date of the Commission meeting wherem the modification of the bond or security is considered, or thirty (30) days' notice prior to the effective date of the increase, whichever provides more notice (c) The surety bond or other security device shall be maintained m full force and effect at all tunes during the Lease term and subsequently until Lessor has either accepted all of the Lease Premises as unproved or restored by Lessee as provided elsewhere in this Lease. Lessee must first seek approval of Lessor before changing the type of security device used, or the bond holder 11 ASSIGNMENT, ENCUM[BRANCING OR SUBLETTING (a) Lessee shall not either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease and shall not sublet the Lease Premises, in whole or m part, or allow any person other than the Lessee's employees, agents, servants and invitees to occupy or use all or any portion of the Lease Premises without the prior written consent of Lessor, which consent shall not be unreasonably withheld (1) Notwithstanding the foregoing prohibition against transfer and assignment, the Lease may be transferred by Lessee if the transfer is caused by the death of a spouse and the full interest of the deceased spouse is transferred to a surviving spouse, or the transfer is caused by the dissolution of the marriage of Lessee and the full interest of one of the spouses is transferred to the other spouse In the event of such a transfer, Lessor shall be notified m writing within 30 days of the transfer. (2) Notice to Lessor of Successor Trustee(s) In the event this Lease is held m trust, and the Lessee is a trustee thereof, the substitution or succession of a new trustee shall not be an assignment or transfer for the purposes of this Paragraph. Lessee (and by operation of law, any successor trustee) agrees to provide prompt notice to Lessor of any succession or substitution of trustee in accordance with Paragraph 16(c) of General Provisions, no later than sixty (60) days after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as trustee for any reason (b) The following shall be deemed to be an assignment or transfer wrthm the meaning of this Lease. Form51.16 (Rev. 10/14) Page 6 of 12 0 (1) If Lessee is a business entity, any dissolution, merger, consolidation or other reorganization of Lessee, or the sale or other transfer of substantially all the assets of Lessee If Lessee is a publicly traded entity, transfers of interests in Lessee shall not constitute an assignment requiring the consent of Lessor (2) If Lessee is a partnership, a transfer of any interest of a general partner, a withdrawal of any general partner from the partnership, or the dissolution of the partnership (c) If this Lease is for sovereign lands appurtenant to adjoining littoral or riparian land, Lessee shall not transfer or assign its ownership interest or use rights in such adjoining lands separately from the leasehold rights granted herein without the prior written consent of Lessor (d) If Lessee desires to assign, sublet, encumber or otherwise transfer all or any portion of the Lease Premises, Lessee shall do all of the following, (1) Give not less than 90 days' prior written notice to Lessor; (2) Provide the name, complete business organization, operational structure, and formation documents of the proposed assignee, sublessee, secured third party, or other transferee, and the nature of the use of and interest in the Lease Premises proposed by the assignee, sublessee, secured third party or other transferee (3) Provide the terms and conditions of the proposed assignment, sublease, or encumbrance or other transfer; (4) Provide audited financial statements for the two most recently completed fiscal years of the proposed assignee, sublessee, secured party or other transferee, and provide pro forma financial statements showing the projected mcome, expense and financial condition resulting from use of the Lease Premises, and (5) Provide such additional or supplemental mformation as Lessor may reasonably request concerning the proposed assignee, sublessee, secured party or other transferee (6) Lessor will evaluate proposed assignees, sublessees, secured third parties and other transferees and grant approval or disapproval according to standards of commercial reasonableness considering the following factors within the context of the proposed use- the proposed parry's financial strength and reliability, their business experience and expertise, their personal and business reputation, their managerial and operational skills, their proposed use and projected rental, as well as other relevant factors (e) Lessor shall have a reasonable period of time from the receipt of all documents and other information required under this provision to grant or deny its approval of the proposed party Lessor may reevaluate the rent, insurance and/or bond provisions of tlus Lease, and may condition its approval of the proposed assignment, sublease, hypothecation, mortgage, or other transfer on the party's acceptance of the new terms Lessee's rights stated in this paragraph shall apply regardless of whether the proposed transfer coincides with a regular rent review period as stated in Section 3 Paragraph 3(c) above. (f) Lessee's mortgage or hypothecation of this Lease, if approved by Lessor, shall be subject to terms and conditions imposed by a separately negotiated encumbrancing agreement (g) Upon the express written assumption of all obligations and duties under this Lease by an assignee approved by Lessor, the Lessee may be released from all liability under this Lease arising after the effective date of assignment and not associated with Lessee's use, possession or occupation of or activities on the Lease Premises, except as to any hazardous wastes, substances or materials as defined under federal, state or local law, regulation, or ordinance manufactured, generated, used, placed, disposed, stored or transported on the Lease Premises during Lessee's tenancy (h) If the Lessee files a petition or an order for relief is entered against Lessee, under Chapters 7, 9, 11 or 13 of the Bankruptcy Code (I I USC Sect 101, et seq.) then the trustee or debtor-m-possession must elect to assume or reject this Lease within sixty (60) days after filing of the petition or appointment of the trustee, or the Lease shall be deemed to have been rejected, and Lessor shall be entitled to immediate possession of the Lease Premises No assumption or assignment of this Lease shall be effective unless it is in writing and unless the trustee or debtor -in -possession has cured all Defaults under this Lease (monetary and non -monetary) or has provided Lessor with adequate assurances (1) that within ten (10) days from the date of such assumption or assignment, all monetary Defaults under this Lease will be cured, and (2) that within thirty (30) days from the date of such assumption, all non - monetary Defaults under this Lease will be cured, and (3) that all provisions of this Lease will be satisfactorily performed in the future Form51.16 (Rev 10/14) Page 7 of 12 (i) In the event of any transfer or assignment, under this Paragraph 11 or by any other means authorized by this Lease, the Lease terms shall be for the remaining years existing on the Lease prior to the transfer or assignment A transfer or assignment shall not extend the term of this Lease. 12 DEFAULT AND REMEDIES (a) Default The occurrence of any one or more of the following events shall immediately and without further notice constitute a Default of this Lease (1) Lessee's failure to make any payment of rent, royalty, or other consideration as required under this Lease, or (2) Lessee's failure to obtain or maintain liability insurance or a surety bond or other security device as required under this Lease, or (3) Lessee's abandonment of the Lease Premises (including the covenant for continuous use as provided for in Paragraph 5(b)) during the Lease term, or (4) Lessee's failure to obtain and maintain all necessary governmental permits or other entitlements; or (5) The maintenance of the Lease Premises in violation of, or failure to comply with, any applicable provisions of any Regulatory Agency, Environmental Law, or maintenance of the Lease Premises in a condition constituting nuisance, or (6) Lessee's Failure to commence to construct and to complete construction of the Improvements authorized by this Lease within the time limits specified in this Lease. (7) Lessee is found to sublet or otherwise surrender daily management and control of the Lease Premises to a third party without the Imowledge, expressed written consent or authorization of the Lessor (b) Lessee's failure to observe or perform any other term, covenant, or condition of this Lease when such failure shall continue for a period of thirty (30) days after Lessor's giving written notice shall constitute a Default of this lease However, if the nature of Lessee's Default under this paragraph is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in Default if Lessee commences such cure within such thirty (30) day period and diligently proceeds with such cure to completion (c) Should Lessee Breach any term, covenant, or condition of this Lease under Paragraph 12(b) above three (3) tunes in any three hundred and sixty-five (365) day period, the third Breach will be a Default under this Lease and Lessor will be entitled to immediately terminate this Lease, and take other appropriate action. Lessor will provide written notice of each Breach as provided above, and provide written notice that future Breaches will constitute immediate Default with no cure period. (d) Remedies In the event of a Default by Lessee and Lessee's failure to cure such Default if such a cure period is applicable, Lessor may at any time and with or without notice do any one or more of the following in addition to any rights or remedies permitted by law (1) Re-enter the Lease Premises, remove all persons and property, and repossess and enjoy such premises, or (2) Terminate this Lease and Lessee's right of possession of the Lease Premises by any lawful means The termination shall not relieve Lessee of any obligation, monetary or otherwise, which has accrued prior to the date of termination Such termination shall be effective upon Lessor's giving written notice and upon Lessee's receipt of such notice. Lessee shall immediately surrender possession of the Lease Premises to Lessor. Lessor shall be entitled to recover from Lessee all amounts to which Lessor is entitled pursuant to Section 1951.2 of the California Civil Code, or any other provision of law, including any necessary Repair, renovation, alteration, remediation, or removal of Improvements; or (3) Maintain this Lease in full force and effect and recover any rent, royalty, or other consideration as it becomes due without terminating Lessee's right of possession regardless of whether Lessee shall have abandoned the Lease Premises, subject to the conditions imposed by Cal Civil Code § 1951.2, or Form51 16 (Rev 10/14) Page 8 of 12 W (4) Exercise any other right or remedy which Lessor may have at law or equity (e) Determination of Rental Value If rent under this Lease is calculated as a percentage of Lessee's income attributable to the Lease Premises and Lessee abandons the Lease Premises during some or all of the applicable period, then the reasonable rental value shall be the percentage of proceeds Lessor would have received had Lessee operated the Lease Premises in the usual and customary manner (f) Waiver of Rights The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any Breach by the other party Lessor's acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the failure to pay the particular rent accepted regardless of Lessor's knowledge of the preexisting Breach at the tune rent is accepted 13 RESTORATION OF LEASE PREMISES AND ENVIRONMENTAL MATTERS (a) Restoration of Lease Premises (1) Upon expiration or sooner termination of this Lease, Lessee must immediately surrender possession of the Lease Premises to Lessor Prior to the time of surrender, Lessee must remove all or any Improvements together with the debns and all parts of any such Improvements at its sole expense and risk, regardless of whether Lessee actually constructed or placed the Improvements on the Lease Premises, or Lessor, at its sole and absolute discretion, may itself remove or have removed all or any portion of such Improvements at Lessee's sole expense Lessor may waive all or any part of this obligation in its sole discretion if doing so is in the best interests of the State (2) As a separate and related obligation, Lessee shall restore the Lease Premises as nearly as possible to the conditions existing prior to the installation or construction of any Improvements For purposes of this Lease, restoration includes removal of any landscaping, removal of any Hazardous Materials, and to the extent possible, undoing any grading, fill, excavation, or similar alterations of the natural features of the Lease Premises Lessor may waive all or any part of this obligation in its sole and absolute discretion (3) Unless otherwise provided for in this Lease, Lessee shall submit to Lessor no later than one (1) year prior to the expiration of this Lease either: (a) an application and minimum expense deposit for a new lease for the continued use of the Lease Premises, or (b) a plan for the restoration of the Lease Premises to be completed prior to the expiration of the lease term together with a timehne for obtaining all necessary permits and conducting the work prior to the expiration of this Lease (4) In removing any or all Improvements, or conducting any restoration work, Lessee shall be required to obtain any permits or other governmental approvals as may then be required by any Regulatory Agency, including, without limitation, any Environmental Law (5) Lessor may, upon written notice, in its sole and absolute discretion, accept title to any or all Improvements at the termination of this Lease. Lessor shall notify Lessee that Lessor intends to take title to any or all Improvements within six (6) months of Lessee submitting a plan for restoration under Paragraph 13(a)(3)(b) above If Lessor elects to take title to any such Improvements, Lessee shall deliver to Lessor such documentation as may be necessary to convey title to such Improvements to Lessor free and clear of any liens, mortgages, loans, or any other encumbrances Lessor shall not pay, and Lessee shall not be entitled to compensation for Lessor's taking title to such property (b) Environmental Matters (1) Lessee's Obligations (i) Lessee will not use, occupy, or permit any portion of the Lease Premises to be used or occupied in violation of any Environmental Law Lessee shall not manufacture or generate or store Hazardous Material on the Lease Premises unless specifically authorized under other terms of this Lease. (ii) Lessee shall practice conservation of water, energy, and other natural resources (ili) Lessee shall notify Lessor and the appropriate governmental emergency response agency, or agencies immediately in the event of any release or threatened release of any Hazardous Material. (2) Lessor may at any time during the Lease term requn-e Lessee to conduct at its own expense and by a contractor approved Form51 16 (Rev 10/14) Page 9 of 12 by Lessor an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Material generated, used, placed, disposed, stored, or transported on the Lease Premises during the term of the Lease Lessee shall provide the results of the assessment or inspection to Lessor and the appropriate governmental response agency or agencies and shall further be responsible for removing or taking other appropriate remedial action regarding such Hazardous Material in accordance with applicable Environmental Law (3) Environmental Indemnity Lessee shall indemnify, defend, and hold Lessor and Lessor's, officer, appointees, volunteers, employees, agents, successors and assigns free and harmless from and against all Damages that may at any time be imposed upon, incurred by, or asserted or awarded against Lessor in connection with or arising from any Breach of Lessee's obligations hereunder, or out of any violation by Lessee of any Environmental Law, or resulting in the imposition of any lien or claim for the recovery of any costs for environmental cleanup or other response costs relating to the release or threatened release of Hazardous Materials on the Lease Premises durmg the Lessee's tenancy This obligation shall include any prior leases between Lessor and Lessee and will continue through any periods Lessee is in holdover, unlawful detamer, or any subsequent month -to -month tenancies created by operation of law Lessee's obligations hereunder will survive the expiration or sooner termination of this Lease (4) Violation of this section shall constitute grounds for termination of the Lease Lessor, shall notify Lessee when, in Lessor's opinion, Lessee has violated the provisions of this section Lessee shall immediately discontinue the conduct and respond within five (5) business days Lessee shall take all measures necessary to remedy the condition 14. QUITCLAIM Lessee shall, upon the early termination of this Lease and at Lessor's request, execute and deliver to Lessor in a form provided by Lessor a good and sufficient release of all rights under this Lease Should Lessee fail or refuse to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against Lessee of the termmation of this Lease and all other claimants. 15. HOLDING -OVER (a) This Lease shall terminate without further notice upon the expiration of the term of this Lease Lessee shall have removed any Improvements and completed any restoration as required by Lessor prior to the expiration of this Lease, and shall surrender possession of the Lease Premises Any failure by the Lessee to remove Improvements, restore the Lease Premises, and/or surrender possession of the Lease Prerruses at the expiration or sooner termination of this Lease shall not constitute a renewal or extension and shall not give Lessee any rights in or to the Lease Premises or any part thereof except as expressly provided in this Lease Lessee shall be deemed in unlawful detamer of the Lease Premises and Lessor shall be entitled to all resulting legal remedies. (b) Lessor may, in its sole discretion, choose to accept Rent for the Lease Premises instead of immediately taking legal action to recover possession of the Lease Premises. Any tenancy created by operation of law on Lessor's acceptance of rent shall be deemed a month -to -month tenancy regardless of what sum or sums Lessee delivers to Lessor Except as set forth below, any subsequent tenancy created in this manner shall be on the same terms, covenants, and conditions set forth in this Lease insofar as such terms, covenants, and conditions can be applicable to a month -to -month tenancy (c) In recognition of the increased accountmg, land management, and supervisory staff time required for month -to -month tenancies, the rent for each month or any portion thereof during such holdover period may be an amount equal to one hundred fifty percent (150%) of one -twelfth (1/12) of the total compensation for the most recent year paid. In the event this Lease does not require monetary compensation, Lessor shall have the right to establish rent based on the fair market value of the Lease Premises The month -to -month tenancy may be terminated by Lessee or Lessor upon thirty (30) calendar days' prior written notice to the other. 16. ADDITIONAL PROVISIONS (a) Waiver (1) No term, covenant, or condition of this Lease and no omission, neglect, Default or Breach of any such term, covenant or condition shall be deemed to have been waived by Lessor's acceptance of a late or nonconforming performance or otherwise, unless such a waiver is expressly acknowledged by Lessor in writing. No delay or omission of Lessor to exercise any right or power arising from any omission, neglect, Default or Breach of term, covenant, or condition of this Lease shall be construed as a waiver or any acquiescence therein (2) Any such waiver shall not be deemed to be a waiver of any other term, covenant or condition, of any successive Breaches of the same term, covenant, or condition; or of any other Default or Breach of any term, covenant or condition of this Lease Form51 16 (Rev. 10/14) Page 10 of 12 (b) Time Time is of the essence for this Lease and each and all of its terms, covenants or conditions in which performance is a factor (c) Notice All notices required to be given under this Lease shall be given in writing, sent by U S Mail with postage prepaid, to Lessor at the offices of the State Lands Commission and the Lessee at the address specified in this Lease Lessee shall give Lessor notice of any change in its name or address (d) Consent Where Lessor's consent is required under this Lease its consent for one transaction or event shall not be deemed to be a consent to any subsequent occurrence of the same or any other transaction or event. (e) Changes This Lease may be terminated and its term, covenants, and conditions amended, revised, or supplemented only by mutual written agreement of the parties (f) Successors The terms, covenants, and conditions of this Lease shall extend to and be binding upon and mure to the benefit of the heirs, successors, and assigns of the respective parties (g) Joint and Several Obligation If more than one Lessee is a party to this Lease, the obligations of the Lessees shall be joint and several (h) Captions The section and paragraph captions used in this Lease are for the convenience of the parties The captions are not controlling and shall have no effect upon the construction or interpretation of this Lease (1) Severabihty If any term, covenant or condition of this Lease is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and enforceable to the fullest extent permitted by law U) Representations Lessee agrees that no representations have been made by Lessor or by any person or agent acting for Lessor Lessor and Lessee agree and acknowledge that this document contains the entire agreement of the parties, that there are no verbal agreements, representations, warranties or other understandings affecting this Lease, and Lessor and Lessee, as a material part of the consideration of this Lease, waive all claims against the other for rescission, damages, or otherwise by reason of any alleged covenant, agreement or understanding not contained in this Lease. (k) Gender and Plurality In this Lease, the masculine gender includes both the feminine and neuter, and the singular number includes the plural whenever the context so requires (1) Survival of Certain Covenants All covenants pertaining to bond, insurance, indemnification, restoration obligations, Breach, Default, and remedies shall survive the expiration or earlier termination of this Lease until Lessee has fulfilled all obligations to restore the Lease Premises as required by this Lease. (m) Counterparts This agreement may be executed in any number of counterparts and by different parties in separate counterparts Each counterpart when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement (n) Delegation of Authority Lessor and Lessee acknowledge Lessor as defined herem includes the Commission Members, their alternates or designees, and the staff of the Commission The ability of staff of the Commission to give consent, or take other discretionary actions described herem will be as described in the then- current delegation of authority to Commission staff All other powers are reserved to the Commission FormSl 16 (Rev. 10/14) Page 11 of 12 STATE OF CALIFORNIA - STATE LANDS COMMISSION LEASE NO PRC 9 zlll This Lease shall become effective only when approved by and executed on behalf of the State Lands Commission of the State of California and a duly executed copy has been delivered to Lessee The submission of this Lease by Lessor, its agent, or representative for examination by Lessee does not constitute an option or offer to lease the Lease Premises upon the terms and conditions contained herein, or a reservation of the Lease Premises in favor of Lessee Lessee's submission of an executed copy of this Lease to Lessor shall constitute an offer to Lessor to lease the Lease Premises on the terms and conditions set forth herein IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date hereafter affixed LESSEE: CITY OFHUNTINGTON BEACH A California municipal corporation REVIE D APPROVED Ctty a r Date ,7&uuE /s ZO/,V-- LESSOR: STATE OF CALIFORNIA STATE LANDS COMMISSION By n Title Lod 109 DEC 0 3 2015 Date ACKNOWLEDGEMENT This Lease was authorized by the California State Lands Commission on Apf,1 2-3 i ZQlS�' Month Day Year) Form 51 16 (Rev 10/14) Page 12 of 12 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. ACKNOWLEDGMENT STATE OF CALIFORNIA ) ss COUNTY OF ORANGE On October 27, 2015, before me, P. L. Esparza, Notary Public, personally appeared Joan L. Flynn and Jill Hardy who proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. _ t (Notary S i atur P L ESPARZA laCommission # 2032750 Notary Public - Cal fornia D Orange County M Comm Expires Aug 4, 2017 (Seal) EXHIBIT A W 26799 LAND DESCRIPTION A strip of submerged land, fifty (50) feet in width, situate in Huntington Harbour, in the City of Huntington Beach, County of Orange, State of California, the centerline of which is more particularly described as follows: BEGINNING at a point on the northeasterly line of Lot "A", as said lot is shown and designated on that certain map of Tract No. 10004, filed in Book 418 of Miscellaneous Maps at Pages 1 through 4, Official Records of said County, said point distant 37.04 feet northwesterly from the most easterly corner of said lot; thence North 480 29" 23" East 430.00 feet to the terminus of said centerline. The sidelines of said strip to be lengthened or shortened as to begin at the northeasterly line of said Lot "A" and terminate at the southwesterly line of Tract No. 8636, filed in Book 397 of Miscellaneous Maps at Pages 33 through 35, Official Records of said County. BASIS OF BEARING for this description is CGS 83 Zone 6_ All distances are grid distances. END OF DESCRIPTION Prepared 11/14/2014 by the California State Lands Commission Boundary Unit NO SCALE SITE LEASE PARCEL '�' ��`r'° �s� a,. . py L�;t,l• �. � a•..L h . •j (PROPOSED iNSTALATION OF } �`y\ '?fit t `"\kfcrlR��i�t� Al �\ 14 INCH WATERLINE) APN 178-023-15 Alifff a, ` ns' �`�, �` �" i`, • i \ C y• APN 178-023-13 G'?' ;; ^, `,� it\ �1f:E�Y�i9 ci> yt� % � � � % ` '� Y 1.•. �`•.., C%� C"Y 1,il��j�il7k S 1 k � S ' ,° s f ,•• ,r \ HUNTINGION HARBOUR CHANNEL, BETWEEN GPJMAUD LANE AND TYPHOON LANE NO SCALE LOCATION Exhibit on; , .- , tea ` - > - — ^ , W 26719NCsTUN : `< -.,1 '' •CTPY OF HC N .f C yr•+•k. """`r" .. dt.t:�;..,' '`-a +. 'a".,4"`^ +}'" b. ,"°.Q h'ti7n�.:*[.r. iliC• �' Bl'.A CSi PAY T ; r }u "' �, ; 5 - i APNs 178-023-04, 13 & 15 w w '?wy n:' " r "1 ,d yn � 4 GENERAL LEASE- ry PUBLIC AGLNCY USE HANG[-. COUNTY F ,M YhaY 1 x p V K'w •� \` `�\�tt,; `�k"�-' r•,�, t �� tom"^' "`• ' ,a�� • ��..�. 40 MAP SOURCE: USGS QUAD 'r'lus Exhibit is solely for purposes of generally defining the lease prcrmses, is based on unverified tntonnation provided by the Lessee or other parties and is not intended to be, nor shall it be Construed as, a waiver or limitation of any State mte,est in Elie subject or any other property TS I Ill EXHIBIT C CALIFORNIA STATE LANDS COMMISSION MITIGATION MONITORING PROGRAM SUNSET/HUNTINGTON HARBOR MAINTENANCE DREDGING AND WATERLINE INSTALLATION PROJECT (State Clearinghouse No. 2014081072) The California State Lands Commission (Commission) is a responsible agency under the California Environmental Quality Act (CEQA) for the Sunset/Huntington Harbor Maintenance Dredging and Waterline Installation Project (Project). The CEQA lead agency for the Project is Orange County. This Mitigation Monitoring Program (MMP) is for the Waterline portion of the Project being implemented by the City of Huntington Beach. A separate MMP is applicable to the Maintenance Dredging portion of the Project being implemented by the County of Orange. In conjunction with approval of this Project, the Commission adopts this MMP for the implementation of mitigation measures for the portion(s) of the Project located on Commission lands The purpose of a MMP is to discuss feasible measures to avoid or substantially reduce the significant environmental impacts from a project identified in an Environmental Impact Report (EIR) or a Mitigated Negative Declaration. State CEQA Guidelines section 15097, subdivision (a), states in part' In order to ensure that the mitigation measures and project revisions Identified in the EIR or negative declaration are Implemented, the public agency shall adopt a program for monitoring or reporting on the revisions which it has required in the project and the measures It has imposed to mitigate or avoid significant environmental effects A public agency may delegate reporting or monitoring responsibilities to another public agency or to a private entity which accepts the delegation, however, until mitigation measures have been completed the lead agency remains responsible for ensunng that Implementation of the mitigation measures occurs in accordance with the program. The lead agency has adopted a MMP for the whole of the Project (see Exhibit C, Attachment C-1) and remains responsible for ensuring that implementation of the mitigation measures occurs in accordance with its program The Commission's action and authority as a responsible agency apply only to the mitigation measures listed in Table C-1 below Mitigation measures included in the lead agency's MMP for impacts not within the Commission's jurisdiction have been omitted from the Commission's MMP Any mitigation measures adopted by the Commission that differ substantially from those adopted by the lead agency are shown as follows: • Additions to the text of the mitigation measure are underlined; and • Deletions of the text of the mitigation measure are shown as strikeew or as otherwise noted The State CEQA Guidelines are found at California Code of Regulations, Title 14, section 15000 et seq April 2015 Page C-1 (of 3) Sunset/Huntington Harbor Maintenance Project Exhibit C — CSLC Mitigation Monitoring Program Table C-1. Project Impacts and Applicable Mitigation Measures. Potential impact f} l IVlit''gafiiion Measure (MiV()2 _ iffe�en�Betvv a hie 4� Eomm ssio s M`Ms and �CeadA ens MMs Air Quality AQ-5, Air Quality None. Air Quality AQ-6, Air Quality None. Biological Resources 131O-2, Biological Resources None. Biological Resources 131O-3, Biological Resources None Cultural Resources CR-1, Cultural Resources Language was added to identify the Commission's interest in archaeological/ historical resources identified during the Project (see modification below). Cultural Resources CR-2, Cultural Resources Language was added to identify the Commission's interest in paleontological specimens identified dunng the Project (see modification below) Geology/Soils/Seismicity GEO-1, Geology/Soils/Seismicity None Geolo /S oi Is/Seismi city GEO-2, Geology/Soils/Seismicity None CR-1 Prior to the issuance of any construction permits, project plans will specify that if buried cultural resources —such as flaked or ground stone, historic debris, building foundations, or non -human bone —are inadvertently discovered or suspected during ground -disturbing activities, work will stop in that area and within 100 feet of the find until a qualified archaeologist can assess the significance of the find and, if necessary, develop appropriate treatment measures Treatment measures typically include development of avoidance strategies, capping with fill material, or mitigation of impacts through data recovery programs such as excavation or detailed documentation No monitoring or other actions would be required if resources are not inadvertently discovered or suspected The final disposition of archaeological and historical resources recovered on State lands under the jurisdiction of the State Lands Commission must be approved by the Commission CR-2 Prior to the issuance of any construction permits, project plans will specify that a qualified paleontologist will be contacted in the event that potential paleontological resources are discovered or suspected Treatment measures may include monitoring by a qualified paleontologist during further construction - related ground -disturbing activities if paleontological resources are discovered. The qualified paleontological monitor will retain the option to reduce monitoring if, in his or her professional opinion, the sediments being monitored were previously disturbed. Monitoring may also be reduced if the potentially fossiliferous units, 2 See Attachment C-1 for the full text of each MM taken from the MMP prepared by the CEQA lead agency April 2015 Page C-2 (of 3) Sunset/Huntington Harbor Maintenance Project Exhibit C — CSLC Mitigation Monitoring Program previously described, are not present or, if present, are determined by qualified paleontological personnel to have a low potential to contain fossil resources No monitoring or other actions would be required if resources are not inadvertently discovered or suspected The monitor will be equipped to salvage fossils and samples of sediments as they are unearthed to avoid construction delays and will be empowered to temporarily halt or divert equipment to allow removal of abundant or large specimens Recovered specimens will be prepared to a point of identification and permanent preservation, including washing of sediments to recover small, invertebrates and Design engineer, construction contractor and qualified paleontologist vertebrates Specimens will be curated into a professional, accredited museum repository with permanent retrievable storage The final disposition of paleontological resources recovered on State lands under the jurisdiction of the State Lands Commission must be approved by the Commission A report of findings, with an appended itemized inventory of specimens, will be prepared and will signify completion of the program to mitigate impacts on paleontological resources April 2015 Page C-3 (of 3) Sunset/Huntington Harbor Maintenance Project 4 1% ATTACHMENT C®i Mitigation Monitoring Program Adopted by the County of Orange ATTACHMENT C-1 County oforenp & Clty of Huntlrwtan Beach Mitigation Monitoring and Reporting Program Summary Mitigation Measure/ Condition of Responsibility for Responsibility Approval No Mitigation Measure/Conditlan of Approval Implementation Timing for Monitoring AIR QUA11Ty Prior to Initiation of anydredging/gradIng activity, the app I Ica nt s hal I provide proof Construction Prlorto Director of OC of compliance far the following requirements contractor construction Parks or his/her designee AQ-1 During construction, the project applicant shall ens ure th at a 11 on -road heavy --duty diesel trucks with a gross vehicle weight rating of 19,500 pounds orgreater used at the project site will comply with EPA20D7 on -road emission standards for PM10 and NOX (D DS gram per brake horsepower -hour jg/bhp-hr] and 0 20 g/bhp-hr, respectivetyj AQ-2 Duringconstruction, the project applicant shall Ilmttthe number of dredged Construction During SCAQW contractor construction AQ-3 During construction associated with any use of the cutter/suctlon dredger, the Construction During SD<M contractor mnstruttlon project appltcarrt shall ensure that tugboats used for scow movement during dredging activities will be equipped with an EPA Tier 3 engine or cleaner If stow AQ-4 During construction, the project applicant shall ensure that the main pump engine Construction During SCACM on the cutter/suction dredger is equipped with an EPA Tier 3 engine or cleaner contractor construction ACl5 During construction, the project applicant shall ensure that Maintenance Dredging Construction During SCAQVID contractor Construction will not occur on the same day as Waterline Installation pipe laying (barge and workboat) or landslde concrete work (concrete truck, paving, and roller) Barge activities would occur for an estimated five days concrete work would occur for AQ-6 During constructlon, the project appllcant shall irnplementthe following measures Construirdon During SGAam contractor construction ■ Haul and delivery truck idling times shalt he in] nimlted either by shutting equipment off whets nat In use or red uang the maximum idling time to less Sunset/Hunungton Haibour Matntenance Dredging and waterline Instakticrt Project iniml Study/Miegated RepUm Declaration IP 14-',;AB I November 7074 IEF W28913 & W49213 'age 1 of 9 , , h Cotintyarorana• C,t r or HuntlnV= 8eath Mitigation Measure) Approval No Res onsibilit far Responsibility Approval Na Mitigation Measure/CDndltian of Approval Implementatkin Timing for Monitoring measure,13 CCR 2485) Clear signage shall be provided for construction workers and construction vehicles at all access points • All construction equipment shall be maintained and properly tuned In accordance with manufacturer's specifications All equipment shall be checked bya certified mechanic and determined to be running In proper condition prior to operation • Consofidatetruck deliveries when possible BIOLOGICAL, RESOURCES 6I0-1 Prior to commencement of dredging activities, Eelgrass surveys will be conducted, Qualified biologist Pnorto LISACE, CCC, and again after dredging is completed, consistent with the timing requirements construction COFW listed in the Southern California Eelgrass Mitigation Policy (NMFS 1991 as amended) and after for review and approval by the Resource Agencies All existing and potential construction eelgrass habitat lass will be restored at a ratio of 112 and 1,1, respectively, or via other measures as approved by the appropriate regulatory and resource agences Eelgrass will also be transplanted into the mitigation site from approved donor sites and monitored by quailfied bioioglsU for 5 years to ensure success Yeady monitoring reports will be filed with resource agencies, the USACE, and the California Coastal Commission if yearly criteria are not met, then a replant will be conducted The amount to be replanted Is based upon a formula that takes into account the area and/or densltydeficiencies (hlMFS 1991 as amended] BIO-2 Buoys will be deployed to areas of eelgrass habitat to avoid these areas outsida of Construction During the pro)ectarea FIcatingbooms and slit curtains will be used to contain any contractor construction CDFW possible spills, debris, and sediment plumes BIO-3 Aqualified biologist will he on site during construction activities to monitor for the Qualified biologist During USAGE, CCC, presence of wildlife and sensitive species in particular The biologist will have the construction CDFW authority to halt construction when wlldlde is observed within 100 meters of the dredge zone Work crews will be briefed on how to Identify sea turtles, marine mammals and other spatial status species that would be expected to occur within and around the project area The biological monitor will prepare incident reports of 6ussWilontinaton Harbw Malmeneno Dredging November2014 and waterline Installation Prefect 2 icF cum 13 & innlal5tudV/1MMgatad NesaW declaration 1P 1 }-148 DbA9112 Page 2 of 9 w County or Orange City of H untington Beach Mnlgation Monitoring and Reporting Program Mitigation Measure/ Condition of Approva€ No Mitigation Measure/Condition of Approval Resoonsibil€ity f r iimine Respo QWt any observed sea turtle activity and will provide such reports to Callfornle Department of Fish and Wildlife [CDFW) and the National Marine Fisheries Service (NMFS) within 24 hours of an observation Work vessels mown$to and from the project site will comply with a 5 miles per hour (mph) speed limit As work vessels approach and leave Sunset Harbor and Huntington Harbor, a recommended speed limit of 10-13 knots will be in place in the event of a vessel collision with a marine mammal or sea turtle, the County will irnmediatelly contact the NMFS Southwest Regional of€ice's Stra nd ing Coordin ato r a nd CoFW, and will submit a report to the NMFS with in24 hours Thls measure will mltigate impacts to other species of wildlife as well 8I0-4 Priorto the issuance of construction permits, the County will conduct the following surveys sub)ect to review by the CDFW, ignited States Federal Wildlife Servlr_e, and the United States Navy a A pre•oonstruction pipeline route survey A qualified biologist will accompany County oF0range staff and engineering consultants to i dentify s ensitive wildlife habitat and to recommend a pipeline route that avoids impacts to sensitive vegetation, wildlife habitat, and potential Western snowy plover nesting habitat This survey will be conducted within 30days of pipeline installation start and will be submitted to the Caunty within five days of completion If it is not possible forthe pipeline route to avoid the backshore area and the pipeline is to be in place dunngthe Western snowy plover nestingseason (March through September), then two additional surveys will be required a A Focused pre -construction nesting bird survey A quabfied biologist will conducts nesting bird surveywithin 100 meters ofthe pipeline corridor five days prior to the start of pipeline Instalieti in o A focused post -constriction nesting bird survey A qualified biologist will conduct a nesting bird survey within five days of pipeline removal to determine fi any nesting birds maybe impacted t1y pipeline removal If itIs determined that nesting birds are present, then the pipeline shall remain in place until nesting activity is no tonger observed Qualified biologist Prior to USACE, CCC, construction CDFW and after constructlon 5un%VHunjWVon Harbor Maintenance Dredging November2014 and watarWna installation Prnjart 3 1CFOD28913 & lninal Study/Miteated Negative Daclaadm tP 14.143 0049113 Page 3 of 9 County of Orange CRY of Huntington Beach Mnigatlon MoNtarhet and Reporting Program Mitigation Measure/ Condition of Approval Responsibrhtyfor Responsibility No. Mitigation Measure/ConditionofAoproval Implementation Tuning for Monitoring 8I0-5 Should pipeline construction, operation, or post -project demobilization occur Qualified biologist during the grunion spawning season (as defined by the California Departmgrit of Fish and Wildlife gruMlon calendar), the County of Orange shall prepare and Implement a beach nourishment grunion habitat protection plan to Include 1 Temporal BMPs, such as avoidance of known spawning area during grunion runs to avoid disturbances to grunion spawning activity and to minimize damage to grunion spawning habitat, i Conduct pre -construction monitoringsurveys within 3 weeks of proposed construction to determine the potential for grunion to use So rfside-Sunset beaches during beach nourishment activities, 3 Conduct grunion monitoring during known grunion run periods while beach nounshment acttvlties are In progress to assess if specific areas of the beach are being Impacted, 4 Implement avoidance measures, if feasible, to min lmlze impacts to specific areas of the beach If construction -period spawning is observed, and 5 Conduct post -beach nourishment grunion spawning success monitoring surveys at any sites on Sorfside-Sunset beaches that appear to be impacted by beach nourishment actnnty The survey will be conducted during the first grunion run following r-ornpletion of the nourishment activities The survey results will be Included in a report that be submitted to the County of Orange, the National Marine Fisheries Service, California Department of Fish and Wildlife, and California Coastal Commission withln 30 days after the grunion run Prior to USACF, Construction, CC-- CDFW during construction, and after construction BtO-& fine week prior to commencement of any Isndside project -related activities within Qualified blologist Prwr to CCC, CDFW the breading/nesting season (February 15 through September 15), the applicant Construction wltl retain a qualified biologist to conduct preconstructlon nesting bird surveys to determine whether nests are present In or around the proposed project area if a nest is found, an appropriate buffer will be established by the qualified biologist No construction or other activities will be allowed to occur within the buffer until the young have fledged or the nest becomes inactive The results of the Sunset/Huntington Harbor Maintenance dredging Novarnber 3014 and waterilne instaiiation Project 4 1CF OM9 13 & itutial Study/Mitigated Negative Peclaratlen IP 14-148 0649113 Page 4 of 9 County of Ora roe city of Huntington Roach Mitigation Monaaring and Reporting Program Mitigation measure/ Condition of Approval Responsibility for Responslbllity No lViitigation Measure/Condition of Approval Implementation Timing for Monitoring preconstruction nesting bird survey will be provided to the City of Huntington Beach Planning and Building Department, prior to issuance of City permits CULTURAL RESOURCES CR-1 Prior to the Issuance of any construction permits, project plans will specify that if Design engineer, Prior to CCC, CSLC buried cultural resources --such as flaked or ground stone, historic debris, building construction construction foundations, or non -human bone —are inadvertently discovered or suspected contractor and and during during ground -disturbing activities, work will stop in that area and wrthm 100 feet qualified construction ofthe find until a qualified archaeologist can assess the significance ofthe find and, archaeologist. If necessary, develop appropriate treatment measures Treatment measures typically include development of avoidance strategies, capping with fill material, or mltlgatlon of impacts through data recovery programs such as excavation or detailed documentation No monitoring or other actions would be required If resources are not Inadvertently discovered or suspected CR-2 Prior to the issuance of any construction permits, project plans will specify that a Design engineer, Prior to CCC, CS LC qualified paleontologist will be contacted in the event that potential 'construction construction contractor and and during paleontological resources are discovered or suspected Treatment measures may qualified construction include monitoring by a qualified paleontologist during further construction- paleontologist related ground -disturbing activities if paleontological resources are discovered The qualified paleontological monitor will retain the option to reduce monitoring If, in his or her professional opinion, the sediments being monitored were previously disturbed Monitoring may also be reduced if the potentially fossfiiferous units, previously described, are not present or, if present, are determined by qualified paleontologi®I personnel to have a law potential to contain fossil resources No monitoring or other actions would be required if resources are not inadvertently discovered orsuspected The monitor will be equipped to salvage fossils and samples of sediments as they are unearthed to avoid construction delays and will be empowered to temporarily halt or divert equipment to allow removal of abundant or large specimens Recovered specimens will be prepared to a paint of identification and permanent SunotA iuntington Harbor Maintenance Dredging Noven*w 203A and watarane nsialiatlon Project 5 icroovae 73 & Ir1.W Study/MRfgated Negative Pocbratton IP 14-148 0049113 Page 5 of 9 Ceurrw of Orange Hof Huntington 8eaeh ,,,�. Mfrtlp4exfan rufanitaeang aril riaaartine Pr9graiiR Mitigation Measure/ Candltlon of Approval ResponsWiityfor Responsibility No Matigatian Measure/Condition of Approval Implementation Timing for Monitoring vertebrates 5pecimens will becurated into a professmnal, accredited museum reposltorywlth permanent retrievable storage The final dlsposltlon of oaleonWgglcal resources recovered on State lands underthe Iurlsdictlon_of_the We Lands mmisslQn must bg approveathe Co m i n A report of findings, with an appended itemized inventory of specimens, will be prepared and will signify completion of the program to mitigate impacts on paleontological resources GEOILOGY/50its/SE15Mtnrt GEO.1 During final design, the applicant's design engineer will ensure that all design criteria and specifications set forth in Setxion 4 3 "Miscellaneous Design and Construction Standards" of the Geotechnical Report (Appendix C) will be incorporated Into the final design Priorto the Issuance ofa Public Works Encroachment Permit, the City of Huntington Beach Public Works Department must receives completed copy of the Geotechmcal Report and will verify that such measures have been Incorporated on the appropriate engineering plans and documents At a minimumthe recommendations will include the following measures • Wefiexlble couplings, such as gasketed joints or other means, to prevent damage due to settlement of the pipe • Place bedding material at least 1-2 inches below the Invert of new piping and extend overthe top of the pipeline • Backfill thrust block excavations with granular material in accordance wrth Section 4 6, 'Site ?reparation and Earthwork" of the Geotechwcal Report GEC-2 During final desrgn, the applicant's Civil Engineer, in consultation with the Manager, OC Watersheds, shall design the dewatering system and ensure that a specialty dewateringcontractor shall install the dewatering system The system shall Include a tight shoring system and make use of a sump pump to remove water from the bottom of excavation The following procedures also shall be Implemented by the contractor • Monitoring yells shall be installed outside of the excavation on all sides to monitor the Impact of dewatering to the groundwater, Design engineer FfnoI design City of and Construction and during Huntington Contractor construction Beach Public Works Engineer Design engineer Final design RWClCB and Construction and during Contractor construction • Existin structures in the viarilty of the planned excavation shall be evaluated sunser/Fluntketon Harbor ritafntemnoa Drodgfrig No rnber 2814 aryl Watarilty Insmlkitwn Prolect 6 iCF 00289 13 & Initial Study/Nfrtlgated NegatWe Declaration IP 14.14B C0401 la Page 6 Of 9 O % t Countyof Qranaa Cdv of Huntinston Balch Mlt§022n MaNtoribir and ka2rtM Pro ram Mitigation Measure/ Condition of Approval Responsibility for Responsibility No Mitigation Measure/Condition oFApprowI Implementation Timing for Monitoring with regard to the foundation type and potential for settlement, ■ Settlement monuments shall be provided to monitor any settlement -sensitive structures, + Provide an alarm system to notify the contractor should the pumps turn off, + Dispose of groundwater In accordance with the guidelines of the Regional Water Quality Control Board HYDROLOGY AND WATER QUALITY HYD-1 Pnorto initiation of any grading or dredging activities, the applicant is required to OC Parks Prior to RWQCB, USACE receive approval from the Santa Ana Regional Water Quality Control Board for grading/ coverage under a 401 Certification The 401 Certification will include conditions construction Involving Implementation of measures to reduce potential increases in sedl mentatio n, turbidity, and other Impacts associated with maintenance dredging activities HYD-a Dunng dredging/grading activities, the applicant wlII Irid uda the use of a slit curtain Construction During RWCiCB or slit fence system during dredging, when turbidity exceeds specified turbidity contractor construction limits The system must be placed so as to confine the disturbed waters within the area The system will be lined with bright orange buoys to create a visual detour barner for boating traffic during constructlon The silt curtains will remain in -place until the disturbed sediment has resettled and will be stabilized within the channel bed HYD-3 Turbidity will likely result from placement of dredge material in the Surfs lde/Sunset Construction During RWOL3 Beach surftone The effects of turbidty will be mitigated by appropriate turbidity contractor construction monitoring methods This involves a qualitative monitoring program (dally observations from a higher vantage point) and supplemented by a quantitative program If necessary If Visual monitcAng (qualitative monitoring) Indicates significant turbidity greater than ambient one-half mile from the discharge site (either offshore or down coast) for two consecutive days, then the man ltorwilt Sunaat/Hunbngton Harhar Mrntenarm D;Tg November 3014 and WaterMe Inollatkm Proint 7 ICF OMS 33 & Mal study/Mkgatrd Naiat[w aadara$Dn I 14-148 000113 Page 7 of 9 CounN of orarge pry of Huntir4ton Beach Mittgation Monitoring and Reporting Proamm Measure/ condition of Approval Responsibliityfor Responsibility No Mitigation Measure/Condition of Approval implementation Timing for Monitoring a Evaluate the effectiveness of discharge site BMPS and opportunities to modify shore placement methods to further reduce sediment discharge during perlods of strong longshore movement, • Record and Imp lementthe necessary modiftcatlons to the BMPs, • Notify the Santa Ana Regional Water Board and USAGE contacts by telephone or email, and • The discharger will comply with any measures idendfled bythe RWCICB, in consultation with other responsible agencies, as appropriate, to mitigate project -related turbldity, tncluding modifying orhalting discharge [fslgnlficant turbidity persists on the third day, the monitorwill commence the quantitative monnortngprogram ;NOISE NOi-1 Prior to initiation of any dredging or grading acttvity , the project proponent Constructton Pmrto Director ofOC shalt produce evidence acceptable to the Orange County Manager of Permit contractor constnsctlan Parks or his/her Services that designee (1) All construction vehicles or equipment, fixed or mobile, operated within 1,000' of a dwelling unit shall be equipped with property operating and maintained mufflers (2) All operations shall comply with Orange County codified Ordinance Division 6 (Noise Control) (3) Stockpiling and/orvehlcle staging areas shall be located as far as practicable from dwellings TRANSPORTATION/TRAFFIC TR-1 a Prior to the tssuanceofconstruotionpemilts, the construction contractor will Construction Prior to OCParks develop a Construction Management Plan to be approved by CC Parks that contractor construction will include the following measures a Designate traffic control for any street closure, detour, or other dIsruptlon to traffic circulation Sunset/Huntington Herbor WWamime aredgin8 November 2014 and Waterline inawletlon Proact 8 ICF00239 33 & 0049223 Initial StWyJMlt%atad Negatin Declaration iP 14.14S Page 8 of 9 #0 G, • County of Orange Clry of Huntington Beach M tfgation Monitarkrg and Iteporbng I'mWarn Mitigation Measure/ Condition of Responsibility for ResponsibilityApproval No Mltiaation Measure/Condition ofAoarova! Implementation 7lrnjrg for Mon storing e Identify the routes that construction vehicles will utilize for the delivery of construction materials (i e , lumber, tiles, piping, windows), site access, traffic controls and detours, and a proposed construction phasing plan for the project • Specify the hours during which transport activities can occur and methods to mitigate constructlon-related impacts on adjacent streets • Require the contra ctorto keep all haul routes clean and free of debris including, but not Iimried to, gravel and dirt as a result of its operations The applicant will clean adjacent streets, as directed by OC Parks, of any material that may have been spilled, tracked, or blown onto adjacent streets or areas • Allow trick hauling ortmnsport of oversize loads between the hours of 9 a in and 3 p m , only, Monday through Friday, unless approved otherwise by OC Parks No truck Hauling or transport will be allowed during nighttime hours, weekends, or federal holidays 7R-2 Prior to the commencement of construction actnrities, the City will notify and Construction Prior to City of coordinate with the emergency service providers, including but not limited to the contractor Construction Huntington OC Sheriff Harbor Patrol, U 5 Navy, and 143FC, of the main channel closure at least Beach three weeks in advance of the activity Stvrset/Huntk4ton Harbor Maintenance Dradoin; November 2G14 and waterime Installation Project 9 000289131 Initial Study/Miupted Ne;ative Declaration IP 14.148 OW1113 Page 9 of 9 Dept ID PW 15-025 Page 1 of 2 Meeting Date 6/15/2015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 6/15/2015 SUBMITTED TO. Honorable Mayor and City Council Members SUBMITTED BY Fred A Wilson, City Manager PREPARED BY: Travis K Hopkins, PE, Director of Public Works SUBJECT- Approve and authorize execution of Lease Agreement with the California State Lands Commission for the Huntinaton Harbour Waterline Proiect Statement of Issue A Lease Agreement with the California State Lands Commission is necessary for a proposed water pipeline to be constructed within State Lands' property in the Huntington Harbour area Financial Impact None, the Lease Agreement is a zero -rent lease Recommended Action Approve and authorize the Mayor and City Clerk to execute the "Lease Agreement (W 26799)" between the City of Huntington Beach and the California State Lands Commission for the construction, use, and maintenance of a proposed 14-inch diameter water pipeline Alternative Action(s) Do not approve and direct staff on how to proceed Analysis The purpose of the Huntington Harbour Waterline Project is to provide a redundant and reliable water supply to the Huntington Harbour and Sunset Beach areas for fire protection purposes A new 14-inch diameter water pipeline will serve as a back up to a critical 12-inch ductile iron water pipeline crossing beneath the harbor main channel, which is currently under a lease agreement with California State Lands Commission The lease is required for a portion of the 14-inch waterline proposed on State-owned property within the Huntington Harbour main channel The waterline will cross beneath the main channel and connect to the City's existing water system at the end of Grimaud Lane to the south of the harbor and Typhoon LaneNenture Lane to the north The City is required to obtain a Lease Agreement from the California State Lands Commission to authorize construction of the water facilities within the harbor The lease is for the construction, use, and maintenance of the 14-inch diameter water pipeline The California State Lands Commission has agreed to enter into a zero -rent, 25-year term lease, beginning April 23, 2015, and ending April 22, 2040, allowing the placement of the proposed improvements within State-owned property The lease specifies that construction begin by September 1, 2015, and be completed by August 30, 2017 HB -79- Item 11. - 1 Dept ID PW 15-025 Page 2 of 2 Meeting Date 6/15/2015 Public Works Commission Action Not required Environmental Status Not applicable Strategic Plan Goal Enhance and maintain Infrastructure Attachment(s) 1 Location Map 2 Lease Agreement (W 26799) between the City of Huntington Beach and the California State Lands Commission Item 11. - 2 Or A AT = M1' M _ N I ATTACHMENT 1 HUNTINGTON HARBOUR WATERLINE PROJECT VICINITY MAP PRQ HB -8 1 - REA Item 11. - 3 RECORDED AT THE REQUEST OF AND WHEN RECORDED MAIL TO, STATE OF CALIFORNIA California State Lands Commission Attu Title Unit 100 Howe Avenue, Suite 100-South Sacramento, CA 95825-8202 STATE OF CALIFORNIA Document entitled to free recordation pursuant to Government Code Section 27383 A P N 170-023-13,15 County Orange LEASE SPAC&ABOVE MSUIVE FOR RECORDERS USE This Lease consists of this summary and the following attached and incorporated parts - Section 1 Basic Provisions W 26799 Section 2 Special Provisions Amending or Supplementing Section 1 or 4 Section 3 General Provisions Exhibit A Land Description Exhibit B Site and Location Map Exhibit C Mitigation Monitoring Program SECTION 1 BASIC PROVISIONS THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE LANDS COMMISSION (100 Howe Avenue, Suite 100-South, Sacramento, California 95825-8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise and let to City of Huntington Beach, Public Works Department, hereinafter referred to as Lessee, those certain lands described in Exhibit A subject to the reservations, terms, covenants and conditions of this Lease. MAILING ADDRESS: LEASE TYPE: LAND TYPE: 2000 Maui Street Huntington Beach, CA 92648 General Lease - Public Agency Use Sovereign Lands LOCATION: Manz Channel of Huntington Harbour between Typhoon Lane and Grunaud Lane, city of Huntington Beach, Orange County as---describ-�,-d-in-Exhibit-A-mzl-shown-in Exhibit B (for reference purposes only) attached and by this reference made apart hereof LAND USE OR PURPOSE: Construction, use, and maintenance, of a 14-inch diameter water pipeline. TERM: 25 years; beginning April 23, 2015; ending April 22, 2040, unless sooner terminated as provided under this Lease. CONSIDERATION: The public use and benefit, subject to modification by Lessor as specified in Paragraph 3(e) of Section 3 - General Provisions AUTHORIZED IMPROVEMENTS: EXISTING: A 14-inch diameter water pipeline. X TO BE CONSTRUCTED; CONSTRUCTION MAY BEGIN BY: September 1, 2015 AND BE COMPLETED BY: August 30, 2017 LIABILITY INSURANCE: N/A SURETY BOND OR OTHER SECURITY: N/A SECTION 2 SPECIAL PROVISIONS BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED OR SUPPLEMENTED AS FOLLOWS: 1. No activities are authorized and no facilities or improvements shall be constructed on the Lease Premises until Lessee provides copies to Lessor's staff, of all necessary permits from the U.S. Army Corps of Engineers, California—Coastal-Commissian—cityofHnntington-Beach—and a copy of CWA 401 Water Quality Certifications from the Santa Ana Regional Water Quality Control Board. 2. Lessee agrees to be bound by and fully carry out, implement, and comply with all mitigation measures and reporting obligations identified as Lessee's or Applicant's responsibility as set forth in the Mitigation Monitoring Program (MMP), attached hereto as Exhibit C, and by reference made a part of this Lease, or as modified by Lessor as permitted by law. 3 At all times while construction activities are taking place, Lessee shall install warning signs at the construction sites, in order to provide notice to the public that construction activities are taking place and to exercise caution 4. Any equipment to be used on the Lease Premises is limited to that which is directly required to perform the authorized use. Lessee shall restore any portion of the lease premises damaged by the use of said equipment 5. No refueling, repair, or maintenance of vehicles or equipment will take place on the Lease Premises. 6 Fourteen days prior to start of the construction Lessee shall submit the following - a. A set of final engineering drawings as issued for construction, certified by a California registered Civil/Structural Engineer. b. Copies of all the contractor's submittal of the project specifications. Also, include design details of any temporary structures to be constructed and removed , Certified by a California registered Civil/Structural engineer. c Details of all proposed inspection tests and procedures to be employed during construction for project quality assurance and control, including qualified welding procedure specifications and welder qualification testing. 8. A construction schedule time line chart showing all significant work activities during the course of the project. 9. Fourteen days prior to commencement of construction activities on the Lease Premises, Lessee shall provide a copy of the construction contractor's work execution plan that provides the details of the manpower, equipment, construction methods and procedures to be employed for each significant activity, safety procedure, etc. Additionally, Lessee shall provide Lessor with a construction schedule time line chart showing all significant work activities that will take place during the course of the project. 10. Prior to the start of construction on the Lease Premises, Lessee shall provide a copy of the contractor's Hazardous Spill Contingency Plan (Plan), with specific designation of the onsrte person who will have responsibility for implementing the Plan. This Plan will include discussion of various major and minor spill scenarios, spill clean up materials and equipment available onsrte, a spill notification protocol and procedures, and a list of various agencies and their notification numbers In the event of a spill or discharge during construction that impacts State Ovate-; notification is to be made -as -soon as -possible -to -the -State -Off ce-of-Emergency— Services at (800) 852-7550 and to the Lessor's 24-hour emergency response number at (562) 590-5201. All other spills shall be reported as specified in the Plan 11. Construction Improvements - a. Lessee shall provide a 15-day advance notice to Lessor prior commencement of construction of the authorized improvements. b. All construction activities shall be carried out in accordance with all applicable safety regulations, permits, and conditions of all other agencies 12. Within 90 days of completion of the work, Lessee shall provide to Lessor the following: a A set of "As -Built" drawings certified by a California registered Civil Engineer, showing the final plan and profiles of the pipelines in the lease area, and all changes or other modifications to the plans as originally approved for construction b. A post construction written report confirming completion in accordance with the approved plans, describing any field changes with the justification, any accidents or spills affecting the waterway and corrective measures taken, and any other extraordinary conditions that occurred during the course of the project. The report is to include copies of the quality control test results performed on the river crossing including the post construction pressure test and the certified weld inspector's reader sheets for the pipeline welds which are to include those of all failed and repaired welds 13 Lessee agrees that a lease description shall be prepared and reviewed upon receipt of the "As - Built" drawings, and the lease shall be amended in order to authorize the final lease area description. 14. Lessee shall provide, within 30 days after the improvements authorized by this Lease are placed in service, copies of all monitoring compliance reports for all activities associated with construction and placement of pipeline. 15. All future repairs, structural modifications or abandonment/removal of the pipelines within the Lease Premises shall require prior review and approval by Lessor. In the event of an urgent repair requiring immediate action, telephone contact can be made through Lessor's 24-hour emergency response number (562) 590-5201. 16. Lessee shall conduct external inspections of the lease facilities using high resolution side -scan sonar when warranted by extraordinary circumstances such as an accident or a significant seismic event unless the schedule is modified by mutual agreement among the parties hereto. Copies of the results of all external inspections including reports, analyses, and recommendations shall be submitted promptly to Lessor at no cost. 17. Lessee shall conduct internal inspection of the lease facilities, and the integrity assessment of the facilities by a California Registered Civil/Structural Engineer when warranted by extraordinary circumstances such as an accident or a significant seismic event unless the schedule is modified by -mutual -agreement among-theparties hereto —Copies -of -the -results -of -all -internal inspections including integrity assessments reports, analysis, and recommendations shall be submitted promptly to Lessor at no cost. In the event of any conflict between the provisions of Section 2 and Section 3 of this Lease, the provisions of Section 2 shall prevail. SECTION 3 GENERAL PROVISIONS 1 GENERAL In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control 2 DEFINITIONS For the purposes of this Lease, the following terms shall be defined as stated below "Additions" shall be defined as any use or Improvements other than those expressly authorized in this Lease. "Alterations" shall be defined as any material change in the size, scope, density, type, nature, or intensity of Improvements on the Lease Premises -from what -is -authorized -in this -Lease. Alterations-shall-also-mclude-any-nodifications,-alterations,_or renovations-of-theland or waterways on the Lease Premises other than those authorized by this Lease "Breach" shall be defined as a parry's unjustified or unexcused nonperformance of a contractual duty the party is required to immediately perform "Damages" shall include all liabilities, demands, claims, actions or causes of action whether regulatory, legislative or judicial in nature, all assessments, levies, losses, fines, penalties, damages, costs and expenses, including, without limitation (i) reasonable attorneys', accountants', investigators', and experts' fees and expenses sustained or incurred in connection with the defense or investigation of any such liability, and (ii) costs and expenses incurred to bring the Lease Premises into compliance with Environmental Laws, a court order, or applicable provisions of a Regulatory Agency The term "Damages" also includes, expressly, those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise "Default" shall be defined as a material Breach of magnitude sufficient to justify termination of the Lease "Environmental Law" shall be defined as and include all federal, state, and local environmental, health, and safety laws, statutes, ordinances, regulations, rules, judgments, orders, and notice requirements, which were in effect as of the date of execution of this Lease or are subsequently enacted and lawfully applied hereto, which regulate or relate to (a) the protection or clean-up of the environment, (b) the use, treatment, storage, transportation, handling or disposal of hazardous, toxic or otherwise dangerous substances, wastes or materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions, (d) the preservation or protection of waterways, groundwater, or drinking water, (e) the health and safety of persons or property, or (f) impose liability with respect to any of the foregoing, including without limitation, the California Environmental Quality Act (CEQA) [PRC §§ 21000 et seq ], the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) [42 USCS § § 9601 et seq ], the Resource Conservation and Recovery Act of 1976 (RCRA) [42 USCS §§ 6901 et seq.], the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) [33 USCS §§ 1251 et seq ], the Toxic Substances Control Act (TSCA) [15 USCS §§ 2601 et seq ], the Hazardous Materials Transportation Act (HMTA) [49 USCS §§ 1801 et seq ], the Insecticide, Fungicide, Rodenticide Act [7 USCS §§ 136 et seq ], the Superfund Amendments and Reauthorization Act [42 USCS §§ 6901 et seq ], the Clean Air Act [42 USCS §§ 7401 et seq ], the Safe Drinking Water Act [42 USCS §§ 300f et seq ]; the Solid Waste Disposal Act [42 USCS §§ 6901 et seq ], the Surface Mining Control and Reclamation Act [30 USCS §§ 1201 et seq ]; the Emergency Planning and Community Right to Know Act [42 USCS §§ 11001 et seq.]; the Occupational Safety and Health Act [29 USCS §§ 655 and 657]; the California Underground Storage of Hazardous Substances Act [H & S C §§ 25280 et seq ], the California Hazardous Substances Account Act [H & S C §§ 25300 et seq.], the California Hazardous Waste Control Act [H & S C §§ 25100 et seq ], the California Safe Drinking Water and Toxic Enforcement Act [H & S C §§ 24249 5 et seq ], the Porter -Cologne Water Quality Act [Water C §§ 13000 et seq ] together with any amendments of or regulations promulgated under the statutes cited above "Hazardous Material" shall be defined as and include any substance which falls within the definition of hazardous substance, hazardous waste, hazardous material, toxic substance, solid waste, pollutant, or contaminant, under any Environmental Law "Improvements" shall be defined as any modification, alteration, addition, or removal of any material, and any other action which serves to change the condition of the Lease Premises from the natural state whether situated above, on, or under the Lease Premises. Improvements include, but are not limited to buildings, structures, facilities, decks, docks, wharves, piers, walks, curbs, bridges, buoys, landscaping, roadways, shoreline protective structures of all types, foundations, pilmgs or similar support structures whether above or below the water line, fences, utilities, pipelines, and any other construction of any type situated on the Lease Premises "Lease" shall be defined as this lease contract together with all amendments and exhibits. "Lease Premises" shall be defined as the area of land, together with any improvements located thereon, the use and occupancy of which Form51 16 (Rev 10/14) Page 1 of 12 is authorized by this Lease, "Lessor" shall be defined as the state of California, acting by and through the California State Lands Commission, including the Commissioners, their alternates and designates, the Executive Officer, and the staff of the California State Lands Commission "Regulatory Agency" shall include any Federal, State, County, Municipal, or Local agency havmgjunsdiction over the Lease Premises "Repairs" shall be defined as all work of any kind made to maintain, change, restore, strengthen, replace, alter, or otherwise affect any Improvement on the Lease Premises. "Residence" shall be defined as any Improvement, whether permanent, movable, or temporary, or a portion thereof, which is for the time being a home or place of lodging. A Residence includes any Improvement affixed to the land such as trailers or cabins, built on a raised foundation such as stilts or pilings, and floating residences such as boats, barges, arks, and houseboats, and any combination of such Improvements which provide residential accommodations to the Lessee or others "Residence" shall not include transitory, intermittent, recreational use of facilities such as campgrounds "Residential Use" shall be defined as Improvements such as, but not limited to, sundecks, and sunrooms which are extensions of, or additions to, the upland property and are not water -dependent uses Although the various uses or Improvements which may fall under this definition may vary by geographic area, lease type, or other factors, it is the intention of the parties to include in this definition all uses and Improvements which are not water -dependent but residential in nature, or those uses and Improvements which are not consistent with common law public trust principles and values. 3 CONSIDERATION (a) Absolute Triple Net Lease Tlus Lease is an absolute triple net lease, pursuant to which Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities and repairs or other costs or obligations associated with the Leased Premises, except as expressly stated herein (b) Rent Lessee agrees to pay Lessor rent as stated in this Lease, m annual installments, for the use and occupancy of the Lease Premises The first installment shall be due on or before the beginning date of this Lease and all subsequent installments shall be due on or before each anniversary of its beginning date during each year of the Lease term, or as otherwise provided in this Lease. Said sums shall be paid in lawful money of the United States of America Lessee shall send said rent to the mailing address of Lessor Timeliness of receipt of remittances sent by mail shall be governed by the postmark date as stated in Government Code Section 11002 Invoices for rent due may be provided by Lessor as a courtesy Lessor's failure to, or delinquency in, providing invoices shall neither excuse Lessee from paying rent, nor extend the time for paying rent (c) Modification Lessor may modify the method, amount, or rate of consideration effective on each fifth anniversary of the beginning date of this Lease, Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on any one (1) of the next four (4) anniversaries following such fifth anniversary, without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary of the beginning date No such modification shall become effective unless Lessee is given at least thirty (30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days' notice prior to the effective date of the increase, whichever provides a greater notice period If the consideration for this Lease is based on a percentage of income, royalties, profits, or any similar business performance indicators, Lessee shall provide Lessor with financial statements and all other documents necessary to determine the relevant basis for income, (d) Penalty and Interest Any mstallments of rent accruing under this Lease not paid when due shall be subject to a delinquency charge equal to five percent (5%) of the principal sum due. Annual payments shall bear interest as specified in Public Resources Code Section 6224 and the Lessor's then existing administrative regulations governing penalty and interest (e) Non -Monetary Consideration If the consideration to Lessor for this Lease is the public use, benefit, health, or safety, Lessor shall have the right to review such consideration at any time and set a monetary rental if the Lessor, at its sole discretion, determines that such action is in the best interest of the State Lessee's assignment or transfer of this Lease pursuant to Section 3 Paragraph 11 below to any third party Form51 16 (Rev, 10/14) Page 2 of 12 which results in royalties, profits, or any form of compensation, whether monetary or otherwise, shall give Lessor the right to reevaluate the requirements of this Lease as stated in Section 3 Paragraph 11 Lessee shall be given at least thirty (30) days' notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days' notice prior to the effective date that this Lease is converted to a monetary rental, whichever provides more notice (f) Place for Payment of Rent All rent that becomes due and payable under this Lease shall be paid to Lessor in person or by United States mail at the Sacramento Offices of the California State Lands Commission, currently at 100 Howe Avenue, Suite 100-South, Sacramento, CA 95825-8202, or at any other place or places that Lessor may designate by written notice to Lessee Alternately, Lessee may contact Lessor's accounting department for Lessor's current practices for payment by credit card or electronic fund transfer 4_-B-OUNDARIES This Lease is not intended to establish the State's boundaries and is made without prejudice to either party regarding any boundary or title claims which may be asserted presently or in the future 5 LAND USE (a) General (1) Lessee shall use the Lease Premises only for the purpose or purposes stated in this Lease and only for the operation and maintenance of the Improvements expressly authorized in this Lease Lessee shall commence use of the Lease Premises within ninety (90) days of the beginning date of this Lease or within ninety (90) days of the date set for construction to commence as set forth in this Lease, whichever is later (2) All demolition, construction, remodeling, reconstruction, maintenance, repairs, removal, or remediation performed on the Lease Premises at any time by Lessee shall first be authorized by all appropriate Regulatory Agencies Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and shall be solely responsible for all costs incurred thereby. In addition, Lessee shall obtain and comply with preventative or remedial measures required by any environmental reports, assessments, or inspections, including, but not limited to those required by the California Environmental Quality Act and/or the National Environmental Policy Act, or as otherwise required by law or reasonably requested by Lessor. Nothing in this Lease shall be interpreted as a pre -approval of any permit, certification, or any other precondition required for the use of the Lease Premises. (b) Continuous Use Lessee's use of the Lease Premises shall be continuous from commencement of the Lease until its expiration Lessee's discontinuance of such use for a period of ninety (90) days shall be presumed to be an abandonment unless Lessee demonstrates to Lessor's satisfaction that Lessee's use of the Lease Premises is consistent with similarly situated properties In the event of an abandonment, Lessor may elect to terminate the Lease as provided in Paragraph 12(a)(3). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease. (c) Repairs and Maintenance (1) Lessor shall not be required to make any Repairs in, on, or about all or part of the Lease Premises Lessee shall, at all tunes during the term of this Lease and without any cost or expense to Lessor, keep and maintain the Lease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition (2) Lessee shall make, or cause to be made, any Repairs which may be required by any Regulatory Agency Lessee shall observe and comply with, any law, statute, ordinance, plan, regulation, resolution, or policy applicable to the Lease Premises in making such Repairs All work shall be performed with reasonable diligence, completed within a reasonable time, and performed at the sole cost and expense of Lessee (3) Lessee expressly accepts the Lease Premises "as is" and expressly acknowledges that (i) Lessor has made no representations or warranties as to the suitability of the Lease Premises for any Improvements Lessee shall conduct all tests necessary to determine the suitability of the Lease Premises for any proposed use or Improvements authorized, and (u) Lessor has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to any applicable building codes, zoning ordinances, or other regulations Lessee agrees to inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for Form51.16 (Rev. 10/14) Page 3 of 12 the Lessee's intended use; and (iii) Lessee shall neither be entitled to any reduction in rent, nor any extension of the terms of this Lease because of damage to or destruction of any Improvements on the Lease Premises (iv) Lessee and Lessor agree that any Improvements on the Lease Premises constitute the personal property of Lessee and that fixture law does not apply (4) In the event that the Lease Premises is partly, or in whole, comprised of tidal, submerged, or waterfront property, Lessee expressly accepts the hazards involved in using or improving such lands. Lessor is not responsible for, and Lessee shall not be reimbursed for nor receive any offset of rent for, any damages or reduced use of the Lease Premises caused by. local or invasive flora or fauna flooding, erosion, sea level rise, storms, freezing, inclement weather of any land, acts of god, maintenance or failure of protective structures, and any other such hazards. (d) Additions, Alterations, and Removal No Improvements other than those expressly authorized in this Lease shall be constructed by the Lessee on the Lease Premises without the prior written consent of Lessor. Any Additions or Alterations are expressly prohibited Lessee is also prohibited from any Additions or Alterations which cause a material change to the environmental impact on or around the Lease Premises. (e) Enjoyment This Lease is non-exclusive, and is subject to the provisions of Section 3, Paragraph 6 below Lessee shall have the right to exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with Lessee's use and enjoyment of the Lease Premises. (f) Discrimination Lessee, in its use of the Lease Premises, shall not discriminate against any person or class of persons on any basis protected by federal, state, or local law, including- race, color, creed, religion, national origin, sex, sexual orientation, gender identity, age, marital/parental status, veteran status, or disability. i (g) Residential Use Unless otherwise provided for in this Lease, no portion of the Lease Premises shall be used as a location for a Residence, for the purpose of mooring or maintaining a structure which is used as a Residence, or for Residential Uses (h) Commercial Use Unless otherwise provided for in this Lease, the Lease Premises is to be used by Lessee and Lessee's invitees or guests only Use of the Lease Premises for commercial purposes, conducting a business, whether for profit or otherwise, and any subleasing, rental, or any transaction whereby Lessee directly or indirectly receives compensation from a third party in exchange for use of the Lease Premises shall constitute an immediate Default of this lease with no cure period. 6 RESERVATIONS, ENCUMBRANCES, AND RIGHTS -OF -WAY (a) Reservations (1) Lessor expressly reserves all natural resources in or on the Lease Premises, including but not limited to timber, minerals, and geothermal resources as defined under Public Resources Code sections 6401, 6407, and 6903, respectively, the right to grant and transfer the same; as well as the right to grant leases in and over the Lease Premises which may be necessary or convenient for the extraction of such natural resources Such leasing shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease (2) Lessor expressly reserves a right to go on the Lease Premises and all Improvements for any purposes associated with this Lease or for carrying out any function required by law, or the rules, regulations, or management policies of the State Lands Commission Lessor shall have a right of reasonable access to the Lease Premises across Lessee owned or occupied lands adjacent to the Lease Premises for any purpose associated with this Lease (3) Lessor expressly reserves to the public an easement for convenient access across the Lease Premises to other State-owned lands located near or adjacent to the Lease Premises and a right of reasonable passage across and along any right-of-way granted by this Lease, however, such easement or right-of-way shall be neither inconsistent nor mcompatible with the rights or privileges of Lessee under this Lease Form51.16 (Rev. 10/14) Page 4 of 12 (4) Lessor expressly reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the Lease term for any purpose not inconsistent or mcompatible with the rights or privileges of Lessee under this Lease (b) Encumbrances The Lease Premises may be subject to pre-existing contracts, leases, licenses, easements, encumbrances, and claims and is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose 7 RULES, REGULATIONS, AND TAXES (a) Lessee shall comply with and be bound by all presently existing or subsequently enacted rules, regulations, statutes or ordinances of the State Lands Commission or any Regulatory Agency. Occupancy or use of the Lease Premises provides no exemption from applicable regulations including, but not limited to, federal, state, county and local regulations, regulations promoting public health, safety, or welfare, building codes, zoning ordinances, and sanitation regulations Lessee expressly acknowledges that Regulatory Agencies have jurisdiction over the Lease Premises unless such laws are in direct conflict with state law or public trust principles (b) Lessee understands and agrees that a necessary condition for the granting and continued existence of this Lease is that Lessee obtains and maintains all permits or other entitlements Lessee expressly acknowledges that issuance of this Lease does not substitute for, or provide preference in obtaining authorizations from other Regulatory Agencies (c) Taxes (1) In addition to the rent due under this Lease, Lessee accepts responsibility for and shall pay any and all real and personal property taxes, including possessory interest taxes, assessments, special assessments, user fees, service charges, and other charges of any description levied, unposed on, assessed, or associated with the leasehold interest, Improvements on the Lease Premises, any business or activity occurring on the Lease Premises, the Lease Premises itself, or any portion thereof, levied by any governmental agency or entity. Such payment shall not reduce rent due Lessor under this Lease and Lessor shall have no liability for such payment (2) In the event that this Lease commences, terminates or expires during a tax year, Lessee shall pay the taxes for the period of such year during which this Lease was in effect (3) Any and all taxes and assessments and installments of taxes and assessments required to be paid by Lessee under this Lease shall be paid when due and the official and original receipt for the payment of such tax, assessment, or installment shall be delivered to Lessor upon request (4) Lessee shall indemnify and hold Lessor, the Lease Premises, and any Improvements now or hereafter located thereon, free and harmless from any liability, loss, or Damages resulting from any taxes, assessments, or other charges required by this Lease to be paid by Lessee and from all interest, penalties, and other sums unposed thereon and from any sales or other proceedings to enforce collection of any such taxes, assessments, or other charges 8. INDEMNITY (a) Lessee's use of the Lease Premises and any Improvements thereon is at Lessee's sole and exclusive risk (b) In addition to any other obligation to indemnify Lessor as otherwise provided in this Lease, except to the extent caused by the sole negligence and/or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend Lessor, its officers, agents, and employees from any and all Damages resulting from Lessee's occupation and use of the Lease Premises. Lessee shall reimburse Lessor in full for all reasonable costs and attorneys' fees, specifically including, without limitation, any Damages arising by reason of (1) The issuance, enjoyment, interpretation, Breach, or Default of this Lease, (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based, (3) The death or mjury of any person, or damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the Lease Premises, (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work performed on the Lease Premises or material furnished to the Lease Premises, (7) Lessee's failure to comply with any material legal or other requirement validly imposed on Lessee or the Lease Premises by a Regulatory Agency (c) The reimbursement provisions of this Paragraph 8 shall not apply to any claims, litigation, or other actions which may be brought by either Lessee or Lessor against each other (d) Nothing in this paragraph shall be construed as requiring that Lessor defend itself against all or any aspect of any challenge to Form51 16 (Rev 10/14) Page 5 of 12 this Lease or any associated environmental review However, Lessee may take whatever legal action is available to it to defend this Lease or any associated environmental review against any challenge by a third party, whether or not Lessor chooses to raise a defense against such a challenge (e) Lessee shall notify Lessor immediately in case of any accident, injury, or casualty on the Lease Premises 9 INSURANCE (a) Lessee shall obtain and maintain in full force and effect during the term of this Lease comprehensive general liability insurance and property damage insurance, with such coverage and limits as may be reasonably requested by Lessor from tune to time, but in no event for less than the sum(s) specified against any and all claims or liability arising out of the ownership, use, occupancy, condition, or maintenance of the Lease Premises and all Improvements (b) The insurance policy shall identify the Lease by its assigned number. The specific Improvements shall also be generally identified, as well as their location on state owned property The coverage provided shall be primary and non-contributmg Lessee shall keep such policy current Lessor shall be named as a "certificate holder" and/or an "additional interest" on the policy Lessee shall provide Lessor with a current certificate of insurance at all tunes. At Lessor's request, Lessee shall provide a full copy of the current insurance policy, along with any and all endorsements or other such documents affecting the coverage Lessor will not be responsible for any premiums or other assessments on the policy (c) The insurance coverage specified in this Lease shall be in effect at aII times during the Lease term and subsequently until Lessor has either accepted all of the Lease Premises as improved or restored by Lessee as provided elsewhere in this Lease. Lessee shall notify Lessor within five (5) business days if the insurance is canceled for any reason 10 SURETY BOND (a) When required by Section 1 of this Lease, Lessee shall provide a surety bond or other security device acceptable to Lessor, for the specified amount, and naming the State of California, California State Lands Commmssion as the assured, to guarantee to Lessor the faithful observance and performance by Lessee of all of the terms, covenants, and conditions of this Lease (b) Lessor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need for security The surety bond or other security device may be increased on each fifth anniversary of the beginning date of this Lease Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one (1) of the next four (4) anniversaries following such fifth anniversary without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary No such modification shall become effective unless Lessee is given at Ieast thirty (30) days' notice prior to the date ofthe Commission meeting wherein the modification of the bond or security is considered, or thirty (30) days' notice prior to the effective date of the increase, whichever provides more notice (c) The surety bond or other security device shall be maintained in full force and effect at all times during the Lease term and subsequently until Lessor has either accepted all of the Lease Premises as unproved or restored by Lessee as provided elsewhere in this Lease. Lessee must first seek approval of Lessor before changing the type of security device used, or the bond holder. 11 ASSIGNMENT, ENCUMBRANCING OR SUBLETTING (a) Lessee shall not either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease and shall not sublet the Lease Premises, in whole or in part, or allow any person other than the Lessee's employees, agents, servants and invitees to occupy or use all or any portion of the Lease Premises without the prior written consent of Lessor, which consent shall not be unreasonably withheld (1) Notwithstanding the foregoing prohibition against transfer and assignment, the Lease may be transferred by Lessee if the transfer is caused by the death of a spouse and the full interest of the deceased spouse is transferred to a surviving spouse, or the transfer is caused by the dissolution of the marriage of Lessee and the full interest of one of the spouses is transferred to the other spouse In the event of such a transfer, Lessor shall be notified in writing within 30 days of the transfer. (2) Notice to Lessor of Successor Trustee(s)- In the event this Lease is held in trust, and the Lessee is a trustee thereof, the substitution or succession of a new trustee shall not be an assignment or transfer for the purposes of this Paragraph. Lessee (and by operation of law, any successor trustee) agrees to provide prompt notice to Lessor of any succession or substitution of trustee in accordance with Paragraph 16(c) of General Provisions, no Iaer than sixty (60) days after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as trustee for any reason (b) The following shall be deemed to be an assignment or transfer within the meaning of this Lease Form51 16 (Rev. 10/14) Page 6 of 12 (1) If Lessee is a business entity, any dissolution, merger, consolidation or other reorganization of Lessee, or the sale or other transfer of substantially all the assets of Lessee If Lessee is a publicly traded entity, transfers of interests in Lessee shall not constitute an assignment requiring the consent of Lessor (2) If Lessee is a partnership, a transfer of any interest of a general partner, a withdrawal of any general partner from the partnership, or the dissolution of the partnership (c) If this Lease is for sovereign lands appurtenant to adjoining littoral or riparian land, Lessee shall not transfer or assign its ownership interest or use rights in such adjoining lands separately from the leasehold rights granted herein without the prior written consent of Lessor. (d)_If_Lessee_desires_to-assign,_sublet_encumberorotherwise transfer all or any_portion of the Lease Premises, Lessee shall do all of the following- (1) Give not less than 90 days' prior written notice to Lessor, (2) Provide the name, complete business organization, operational structure, and formation documents of the proposed assignee, sublessee, secured third party, or other transferee, and the nature of the use of and interest in the Lease Premises proposed by the assignee, sublessee, secured third party or other transferee (3) Provide the terms and conditions of the proposed assignment, sublease, or encumbrance or other transfer; (4) Provide audited financial statements for the two most recently completed fiscal years of the proposed assignee, sublessee, secured party or other transferee, and provide pro forma financial statements showing the projected income, expense and financial condition resulting from use of the Lease Premises, and (5) Provide such additional or supplemental information as Lessor may reasonably request concerning the proposed assignee, sublessee, secured party or other transferee (6) Lessor will evaluate proposed assignees, sublessees, secured third parties and other transferees and grant approval or disapproval according to standards of commercial reasonableness considering the following factors within the context of the proposed use- the proposed party's financial strength and reliability, their business experience and expertise, their personal and business reputation, their managerial and operational skills, their proposed use and projected rental, as well as other relevant factors (e) Lessor shall have a reasonable period of time from the receipt of all documents and other information required under this provision to grant or deny its approval of the proposed party Lessor may reevaluate the rent, insurance and/or bond provisions of this Lease, and may condition its approval of the proposed assignment, sublease, hypothecation, mortgage, or other transfer on the party's acceptance of the new terms Lessee's rights stated in this paragraph shall apply regardless of whether the proposed transfer coincides with aregular rent review period as stated in Section 3 Paragraph 3(c) above (f) Lessee's mortgage or hypothecation of this Lease, if approved by Lessor, shall be subject to terms and conditions unposed by a separately negotiated encumbrancing agreement (g) Upon the express written assumption of all obligations and duties under this Lease by an assignee approved by Lessor, the Lessee may be released from all liability under this Lease ansmg after the effective date of assignment and not associated with Lessee's use, possession or occupation of or activities on the Lease Premises, except as to any hazardous wastes, substances or materials as defined under federal, state or local law, regulation, or ordinance manufactured, generated, used, placed, disposed, stored or transported on the Lease Premises during Lessee's tenancy (h) If the Lessee files a petition or an order for relief is entered against Lessee, under Chapters 7, 9, 11 or 13 of the Bankruptcy Code (11 USC Sect. 101, et seq ) then the trustee or debtor -in -possession must elect to assume or reject this Lease within sixty (60) days after filing of the petition or appointment of the trustee, or the Lease shall be deemed to have been rejected, and Lessor shall be entitled to immediate possession of the Lease Premises No assumption or assignment of this Lease shall be effective unless it is in writing and unless the trustee or debtor -in -possession has cured all Defaults under this Lease (monetary and non -monetary) or has provided Lessor with adequate assurances (1) that within ten (10) days from the date of such assumption or assignment, all monetary Defaults under this Lease will be cured, and (2) that within thirty (30) days from the date of such assumption, all non - monetary Defaults under this Lease will be cured, and (3) that all provisions of this Lease will be satisfactorily performed in the future. Form51 16 (Rev. 10/14) Page 7 of 12 (i) In the event of any transfer or assignment, under this Paragraph 11 or by any other means authorized by this Lease, the Lease terms shall be for the remaining years existing on the Lease prior to the transfer or assignment A transfer or assignment shall not extend the term of this Lease. 12 DEFAULT AND REMEDIES (a) Default The occurrence of any one or more of the following events shall immediately and without further notice constitute a Default of this Lease- (1) Lessee's failure to make any payment of rent, royalty, or other consideration as required under this Lease; or (2) Lessee's failure to obtain or maintain liability insurance or a surety bond or other security device as required under this L-ease,-or (3) Lessee's abandonment of the Lease Premises (including the covenant for continuous use as provided for in Paragraph 5(b)) during the Lease term, or (4) Lessee's failure to obtain and maintain all necessary governmental permits or other entitlements; or (5) The maintenance of the Lease Premises in violation of, or failure to comply with, any applicable provisions of any Regulatory Agency, Environmental Law, or maintenance of the Lease Premises in a condition constituting nuisance, or (6) Lessee's Failure to commence to construct and to complete construction of the Improvements authorized by this Lease within the time limits specified in this Lease. (7) Lessee is found to sublet or otherwise surrender daily management and control of the Lease Premises to a third party without the knowledge, expressed written consent or authorization of the Lessor (b) Lessee's failure to observe or perform any other term, covenant, or condition of this Lease when such failure shall continue for a period of thirty (30) days after Lessor's giving wntten notice shall constitute a Default of this lease. However, if the nature of Lessee's Default under this paragraph is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in Default if Lessee commences such cure within such thirty (30) day period and diligently proceeds with such cure to completion. (c) Should Lessee Breach any term, covenant, or condition of this Lease under Paragraph 12(b) above three (3) times in any three hundred and sixty-five (365) day period, the third Breach will be a Default under this Lease and Lessor will be entitled to immediately terminate this Lease, and take other appropriate action Lessor will provide written notice of each Breach as provided above, and provide written notice that future Breaches will constitute immediate Default with no cure period. (d) Remedies In the event of a Default by Lessee and Lessee's failure to cure such Default if such a cure period is applicable, Lessor may at any time and with or without notice do any one or more of the following in addition to any rights or remedies permitted by law (1) Re-enter the Lease Premises, remove all persons and property, and repossess and enjoy such premises, or (2) Terminate this Lease and Lessee's right of possession of the Lease Premises by any lawful means The termination shall not relieve Lessee of any obligation, monetary or otherwise, which has accrued prior to the date of termination Such termination shall be effective upon Lessor's giving written notice and upon Lessee's receipt of such notice Lessee shall immediately surrender possession of the Lease Premises to Lessor. Lessor shall be entitled to recover from Lessee all amounts to which Lessor is entitled pursuant to Section 1951.2 of the California Civil Code, or any other provision of law, including any necessary Repair, renovation, alteration, remediation, or removal of Improvements, or (3) Maintain this Lease in full force and effect and recover any rent, royalty, or other consideration as it becomes due without terminating Lessee's right of possession regardless of whether Lessee shall have abandoned the Lease Premises, subject to the conditions imposed by Cal Civil Code § 19512, or Form51 16 (Rev. 10/14) Page 8 of 12 (4) Exercise any other right or remedy which Lessor may have at law or equity (e) Determination of Rental Value If rent under this Lease is calculated as a percentage of Lessee's income attributable to the Lease Premises and Lessee abandons the Lease Premises during some or all of the applicable period, then the reasonable rental value shall be the percentage of proceeds Lessor would have received had Lessee operated the Lease Premises in the usual and customary manner (f) Waiver of Rights The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any Breach by the other party Lessor's acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the failure to pa the particular rent accepted regardless of Lessor's knowledge of the preexisting Breach at the time rent is accepted. 13 RESTORATION OF LEASE PREMISES AND ENVIRONMENTAL MATTERS (a) Restoration of Lease Premises (1) Upon expiration or sooner termination of this Lease, Lessee must immediately surrender possession of the Lease Premises to Lessor Prior to the time of surrender, Lessee must remove all or any Improvements together with the debris and all parts of any such Improvements at its sole expense and risk, regardless of whether Lessee actually constructed or placed the Improvements on the Lease Premises, or Lessor, at its sole and absolute discretion, may itself remove or have removed all or any portion of such Improvements at Lessee's sole expense Lessor may waive all or any part of this obligation in its sole discretion if doing so is in the best interests of the State. (2) As a separate and related obligation, Lessee shall restore the Lease Premises as nearly as possible to the conditions existing prior to the installation or construction of any Improvements For purposes of this Lease, restoration includes removal of any landscaping, removal of any Hazardous Materials, and to the extent possible, undoing any grading, fill, excavation, or similar alterations of the natural features of the Lease Premises. Lessor may waive all or any part of this obligation in its sole and absolute discretion. (3) Unless otherwise provided for in this Lease, Lessee shall submit to Lessor no later than one (1) year prior to the expiration of this Lease either (a) an application and minimum expense deposit for a new lease for the continued use of the Lease Premises, or (b) a plan for the restoration of the Lease Premises to be completed prior to the expiration of the lease term together with a tnnehne for obtaining all necessary permits and conducting the work prior to the expiration of this Lease (4) In removing any or all Improvements, or conducting any restoration work, Lessee shall be required to obtain any permits or other governmental approvals as may then be required by any Regulatory Agency, including, without hinitation, any Environmental Law (5) Lessor may, upon written notice, in its sole and absolute discretion, accept title to any or all Improvements at the termination of this Lease. Lessor shall notify Lessee that Lessor intends to take title to any or all Improvements within six (6) months of Lessee submitting a plan for restoration under Paragraph 13(a)(3)(b) above. If Lessor elects to take title to any such Improvements, Lessee shall deliver to Lessor such documentation as may be necessary to convey title to such Improvements to Lessor free and clear of any liens, mortgages, loans, or any other encumbrances Lessor shall not pay, and Lessee shall not be entitled to compensation for Lessor's taking title to such property (b) Environmental Matters (1) Lessee's Obligations. (i) Lessee will not use, occupy, or permit arty portion of the Lease Premises to be used or occupied in violation of any Environmental Law Lessee shall not manufacture or generate or store Hazardous Material on the Lease Premises unless specifically authorized under other terms of this Lease (ii) Lessee shall practice conservation of water, energy, and other natural resources (in) Lessee shall notify Lessor and the appropriate governmental emergency response agency, or agencies immediately in the event of any release or threatened release of any Hazardous Material. (2) Lessor may at any time during the Lease term requu•e Lessee to conduct at its own expense and by a contractor approved Form51.16 (Rev. 10/14) Page 9of12 by Lessor an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Material generated, used, placed, disposed, stored, or transported on the Lease Premises during the term of the Lease Lessee shall provide the results of the assessment or inspection to Lessor and the appropriate governmental response agency or agencies and shall further be responsible for removing or taking other appropriate remedial action regarding such Hazardous Material in accordance with applicable Environmental Law (3) Environmental Indemnity Lessee shall indemnify, defend, and hold Lessor and Lessor's, officer, appointees, volunteers, employees, agents, successors and assigns free and harmless from and against all Damages that may at any time be imposed upon, incurred by, or asserted or awarded against Lessor in connection with or arising from any Breach of Lessee's obligations hereunder, or out of any violation by Lessee of any Environmental Law, or resulting in the imposition of any lien or claim for the recovery of any costs_forenKironmentaI cleanup or other response costs relating to the release or threatened release of Hazardous Materials on the Lease Premises during the Lessee's tenancy This obligation shall include any prior leases between Lessor and Lessee and will continue through any periods Lessee is in holdover, unlawful detainer, or any subsequent month -to -month tenancies created by operation of law Lessee's obligations hereunder will survive the expiration or sooner termination of this Lease (4) Violation of this section shall constitute grounds for termination of the Lease Lessor, shall notify Lessee when, in Lessor's opinion, Lessee has violated the provisions of this section Lessee shall immediately discontinue the conduct and respond within five (5) business days Lessee shall take all measures necessary to remedy the condition 14. QUITCLAIM Lessee shall, upon the early termination of this Lease and at Lessor's request, execute and deliver to Lessor in a form provided by Lessor a good and sufficient release of all rights under this Lease Should Lessee fail or refuse to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against Lessee of the termination of this Lease and all other claimants 15. HOLDING -OVER (a) This Lease shall terminate without further notice upon the expiration of the term of this Lease Lessee shall have removed any Improvements and completed any restoration as required by Lessor prior to the expiration of this Lease, and shall surrender possession of the Lease Premises. Any failure by the Lessee to remove Improvements, restore the Lease Premises, and/or surrender possession of the Lease Premises at the expiration or sooner termination of this Lease shall not constitute a renewal or extension and shall not give Lessee any rights in or to the Lease Premises or any part thereof except as expressly provided in this Lease Lessee shall be deemed in unlawful detamer of the Lease Premises and Lessor shall be entitled to all resulting legal remedies. (b) Lessor may, in its sole discretion, choose to accept Rent for the Lease Premises instead of immediately taking legal action to recover possession of the Lease Premises. Any tenancy created by operation of law on Lessor's acceptance of rent shall be deemed a month -to -month tenancy regardless of what sum or sums Lessee delivers to Lessor Except as set forth below, any subsequent tenancy created in this manner shall be on the same terms, covenants, and conditions set forth in this Lease insofar as such terms, covenants, and conditions can be applicable to a month -to -month tenancy (c) In recognition of the increased accounting, land management, and supervisory staff time required for month -to -month tenancies, the rent for each month or any portion thereof during such holdover period may be an amount equal to one hundred fifty percent (150%) of one -twelfth (1/12) of the total compensation for the most recent year paid. In the event this Lease does not require monetary compensation, Lessor shall have the right to establish rent based on the fair market value of the Lease Premises The month -to -month tenancy may be terminated by Lessee or Lessor upon thirty (30) calendar days' prior written notice to the other 16. ADDITIONAL PROVISIONS (a) Waiver (1) No term, covenant, or condition of this Lease and no omission, neglect, Default or Breach of any such term, covenant or condition shall be deemed to have been waived by Lessor's acceptance of a late or nonconforming performance or otherwise, unless such a waiver is expressly acknowledged by Lessor in writing No delay or omission of Lessor to exercise any right or power arising from any omission, neglect, Default or Breach of term, covenant, or condition of this Lease shall be construed as a waiver or any acquiescence therein (2) Any such waiver shall not be deemed to be a waiver of any other term, covenant or condition, of any successive Breaches of the same term, covenant, or condition, or of any other Default or Breach of any term, covenant or condition of this Lease Form51.16 (Rev 10/14) Page 10 of 12 (b) Time Tune is of the essence for this Lease and each and all of its terms, covenants or conditions in which performance is a factor (c) Notice All notices required to be given under this Lease shall be given in writing, sent by U S Mail with postage prepaid, to Lessor at the offices of the State Lands Commission and the Lessee at the address specified in this Lease Lessee shall give Lessor notice of any change in its name or address. (d) Consent Where Lessor's consent is required under this Lease its consent for one transaction or event shall not be deemed to be a consent to any -subsequent occurrence-ufthe-same-or-anyothertransaction-or-even (e) Changes This Lease may be terminated and its term, covenants, and conditions amended, revised, or supplemented only by mutual written agreement of the parties (f) Successors The terms, covenants, and conditions of this Lease shall extend to and be binding upon and enure to the benefit of the heirs, successors, and assigns of the respective parties (g) Joint and Several Obligation If more than one Lessee is a party to this Lease, the obligations of the Lessees shall be joint and several (h) Captions The section and paragraph captions used in this Lease are for the convemence of the parties The captions are not controlling and shall have no effect upon the construction or interpretation of this Lease (i) Severability If any term, covenant or condition of this Lease is determined by a court of competent jurisdiction to be mvalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and enforceable to the fullest extent permitted by law �) Representations Lessee agrees that no representations have been made by Lessor or by any person or agent acting for Lessor. Lessor and Lessee agree and acknowledge that this document contains the entire agreement of the parties, that there are no verbal agreements, representations, warranties or other understandings affecting this Lease, and Lessor and Lessee, as a material part of the consideration of this Lease, waive all clauns against the other for rescission, damages, or otherwise by reason of any alleged covenant, agreement or understanding not contained in this Lease (k) Gender and Plurality In this Lease, the masculine gender includes both the femmme and neuter, and the singular number includes the plural whenever the context so requires. (1) SurvivaI of Certain Covenants All covenants pertaining to bond, insurance, indemnification, restoration obligations, Breach, Default, and remedies shall survive the expiration or earlier termination of this Lease until Lessee has fulfilled all obligations to restore the Lease Premises as required by this Lease. (m) Counterparts This agreement may be executed in any number of counterparts and by different parties in separate counterparts Each counterpart when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement (n) DeIegation of Authority Lessor and Lessee acknowledge Lessor as defined herein includes the Commission Members, their alternates or designees, and the staff of the Commission The ability of staff of the Commission to give consent, or take other discretionary actions described herein will be as described in the then -current delegation of authority to Commission staff All other powers are reserved to the Commission. Form5l 16 (Rev 10/14) Page 11 of 12 STATE OF CALIFORNIA - STATE LANDS COMMISSION LEASE NO PRC This Lease shall become effective only when approved by and executed on behalf of the State Lands Commission of the State of California and a duly executed copy has been delivered to Lessee The submission of this Lease by Lessor, its agent, or representative for examination by Lessee does not constitute an option or offer to lease the Lease Premises upon the terms and conditions contained herein, or a reservation of the Lease Premises in favor of Lessee Lessee's submission of an executed copy of this Lease to Lessor shall constitute an offer_to-,essor_to_lease_the Leaser_emises_on_the_terms_and_con&tions_set-forthherem IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date hereafter affixed LESSEE: CITY OFHUNTINGTON BEACH A California municipal corporation REVIE/S,7 ROVED City a r Date /S ZO/,- LESSOR: STATE OF CALIFORNIA STATE LANDS COMMISSION Title Date I _ = H rr i ACKNOWLEDGEMENT fi Z This Lease was authorized by the " California State Lands Commission on (Month Day Year) Form 51 16 (Rev 10/14) Page 12 of 12 EXHIBIT A W 26799 LAND DESCRIPTION A strip of submerged land, fifty (50) feet in width, situate in Huntington Harbour, in the City of Huntington Beach, County of Orange, State of California, the centerline of which is more particularly described as follows: BEGINNING at a point on the northeasterly line of Lot "A", as said lot is shown and designated on that certain map of Tract No. 10004, filed in Book 418 of Miscellaneous Records of said County, sa Maps at Pages 1 through 4, Official d point distant 37.04 feet northwesterly from the most easterly corner of said lot; thence North 48" 29" 23" East 430.00 feet to the terminus of said centerline. The sidelines of said strip to be lengthened or shortened as to begin at the northeasterly line of said Lot "A" and terminate at the southwesterly line of Tract No. 8636, filed in Book 397 of Miscellaneous Maps at Pages 33 through 35, Official Records of said County. BASIS OF BEARING for this description is CCS 83 zone 6_ All distances are grid distances. END OF DESCRIPTION Prepared 11/14/2014 by the California State Lands Commission Boundary Unit NO SCALE SITE r \ �'>✓ ti,', ' `\ I • , a r,-a•('"fit r; ` :.L• . ' ,. ,91 „� a `l•f ,.4i-•�46" \ +, 1t`ti..K" ,. 4`�,., 'i LEASE PARCEL \ (PROPOSED INSTALATION OF ,``;� 11, IN`�kr{R;' w�3'/•�'G<Gr c: �Y%c: �, \ 14 INCH WATERLINE} r '� �� ^,`r �t f 'Sd" y"n ,� •.''_� ` 111 �, �, `` `4�-- - - �t / • fir, 1 ,-N APN 178-023-15 \ 00r APN 178-023-13 G* +`'✓, �y-,•�, �t'� "':'��p' %� V{ ��;7,'f°iti _ � cis~ s'1 ip��`�^� j7�:Q4 it�IY�t �� L• ht � \ % \ .•.�s„�"� t},- ��',rt?'�S � �l, sue.` HUNTINGTON HARBOUR CHANNEL, BETWEEN GRIN) AUD LANE AND TYPHOON LANE NO SCALE, - LOCATION MAP SOURCE. USGS QUAD 'flits Exhibit it, bololy for purposes of generally defining the lease premises, is based on unverified infonnation provided by the Lessee or other parties and is not intended to be, nor shall it be convtrued as, a waiver of limitation of any State interest in the subject os any other property Ts i Exhibit B W 26799 CITY OF HUN1'1 NGTON BEACTi AM 178-021-04,13 & 15 GIiNERAL LEASH, - PUBLIC AGENCY USE EXHIBIT C CALIFORNIA STATE LANDS COMMISSION MITIGATION MONITORING PROGRAM SUNSET/HUNTINGTON HARBOR MAINTENANCE DREDGING AND WATERLINE INSTALLATION PROJECT (State Clearinghouse No 2014081072) The Cali ornla Sate Lis Commission (Commission)is a responsible agency unde the California Environmental Quality Act (CEQA) for the Sunset/Huntington Harbor Maintenance Dredging and Waterline Installation Project (Project). The CEQA lead agency for the Project is Orange County This Mitigation Monitoring Program (MMP) is for the Waterline portion of the Project being implemented by the City of Huntington Beach. A separate MMP is applicable to the Maintenance Dredging portion of the Project being implemented by the County of Orange. In conjunction with approval of this Project, the Commission adopts this MMP for the implementation of mitigation measures for the portion(s) of the Project located on Commission lands The purpose of a MMP is to discuss feasible measures to avoid or substantially reduce the significant environmental impacts from a project identified in an Environmental Impact Report (EIR) or a Mitigated Negative Declaration State CEQA Guidelines section 15097, subdivision (a), states in part-' In order to ensure that the mitigation measures and project revisions identified in the EIR or negative declaration are implemented, the public agency shall adopt a program for morntormg or reporting on the revisions which it has required in the project and the measures it has imposed to mitigate or avoid significant environmental effects A public agency may delegate reporting or monitormg responsibilities to another public agency or to a pnvate entity which accepts the delegation, however, until mitigation measures have been completed the lead agency remains responsible for ensuring that implementation of the mitigation measures occurs in accordance with the program. The lead agency has adopted a MMP for the whole of the Project (see Exhibit C, Attachment C-1) and remains responsible for ensuring that implementation of the mitigation measures occurs in accordance with its program The Commission's action and authority as a responsible agency apply only to the mitigation measures listed in Table C-1 below Mitigation measures included in the lead agency's MMP for impacts not within the Commission's jurisdiction have been omitted from the Commission's MMP. Any mitigation measures adopted by the Commission that differ substantially from those adopted by the lead agency are shown as follows: • Additions to the text of the mitigation measure are underlined; and • Deletions of the text of the mitigation measure are shown as eeut or as otherwise noted The State CEQA Guidelines are found at California Code of Regulations, Title 14, section 15000 et seq April 2015 Page C-1 (of 3) Sunset/Huntington Harbor Maintenance Project Exhibit C — CSLC Mitigation Monitoring Program Table C-1. Project Impacts and Applicable Mitigation Measures. � Difference`�Betw��'e ri the �` Pot�ntia! Irripact Mitigation Measur (IYIM�)2 W-IVI�VIs ;�+C,ommission"s MMs and s` �Lx Air Quality AQ-5, Air Quality None Air Quality AQ-6, Air Quality None Biological Resources BIO-2, Biological Resources None. _Biolo ical_Resour_ces 81O-3,_Biolo jcal Resources None _ Cultural Resources CR-1, Cultural Resources Language was added to identify the Commission's interest in archaeological/ historical resources identified during the Project (see modification below). Cultural Resources CR-2, Cultural Resources Language was added to identify the Commission's interest in paleontological specimens identified during the Project (see modification below) Geology/Soils/Seismicity GEO-1, Geolo /Soils/Seismici None Geology/Soils/Seismicity GEO-2, Geology/Soils/Seismicity None CR-1 Prior to the issuance of any construction permits, project plans will specify that if buried cultural resources —such as flaked or ground stone, historic debris, building foundations, or non -human bone —are inadvertently discovered or suspected during ground -disturbing activities, work will stop in that area and within 100 feet of the find until a qualified archaeologist can assess the significance of the find and, if necessary, develop appropriate treatment measures Treatment measures typically include development of avoidance strategies, capping with fill material, or mitigation of impacts through data recovery programs such as excavation or detailed documentation No monitoring or other actions would be required if resources are not inadvertently discovered or suspected The final disposition of archaeological and historical resources recovered on State lands under the jurisdiction of the State Lands Commission must be approved by the Commission CR-2 Prior to the issuance of any construction permits, project plans will specify that a qualified paleontologist will be contacted in the event that potential paleontological resources are discovered or suspected Treatment measures may include monitoring by a qualified paleontologist during further construction - related ground -disturbing activities if paleontological resources are discovered The qualified paleontological monitor will retain the option to reduce monitoring if, in his or her professional opinion, the sediments being monitored were previously disturbed Monitoring may also be reduced if the potentially fossdiferous units, 2 See Attachment C-1 for the full text of each MM taken from the MMP prepared by the CEQA lead agency April 2015 Page C-2 (of 3) Sunset/Huntington Harbor Maintenance Project Exhibit C — CSLC Mitigation Monitoring Program previously described, are not present or, if present, are determined by qualified paleontological personnel to have a low potential to contain fossil resources No monitoring or other actions would be required if resources are not inadvertently discovered or suspected The monitor will be equipped to salvage fossils and samples of sediments as they are unearthed to avoid construction delays and will be empowered to temporarily halt or divert equipment to allow removal of abundant or large specimens Recovered specimens will be prepared to a point of identification -and-permanent preservation including washing-ofsediments-tosecov-eLs-m—all, invertebrates and Design engineer, construction contractor and qualified paleontologist vertebrates Specimens will be curated into a professional, accredited museum repository with permanent retrievable storage The final disposition of paleontological resources recovered on State lands under the jurisdiction of the State Lands Commission must be approved by the Commission A report of findings, with an appended itemized inventory of specimens, will be prepared and will signify completion of the program to mitigate impacts on paleontological resources April 2015 Page C-3 (of 3) Sunset/Huntington Harbor Maintenance Project ATTACHMENT C-1 Mitigation Monitoring Program Adopted by the my-oUO ATTACHMENT C-1 County of orange &Pity of Huntington Mitigation Monitoring and Reporting Program Summary Mitigation Measure/ Condition of Responslbliltyfor Responsibility Approval No. Mitigation Measure/Condition of Approval Implementation Timing for Monitoring LAIR QUALITY Pdorto initiation ofany dredging/grading activity, the applicant shall provide proof Construction Prlorto Director of OC of compliance for the following requirements contractor construction Parks or his/her designee AQ-1 During construction, the project applicant shall ensurethat all on -road heavy-duty diesel trucks with a gross vehicle weight rating of 19,500 pounds or greater used at the projectsite will comply with EPA 2007 on -road emission standards for PM10 and NOX (0 01 gram perbrake horsepower -hour ig/bhp-hrj and 0 20 g/bhp-hr, respectively) AQ-2 During construction, the project applicant shall ilmltthenumber ofdredged Construction During SCAQMD contractor construction AQ-3 During construction associated with any use of the cutter/suction dredger, the Construction During SCAQMD contractor construction project applicant shall ensure that tugboats used for scow movement during dredging activities will be equipped with an EPA Tier 3 engine or cleaner If scow AQ74 During construction, the project applicant shall ensure that the main pump engine Construction During SCAOMD on the cutter/suction dredger is equipped with an EPAT1er3 engine or cleaner contractor construction AQ-5 During construction, the project applicant shall ensure that Maintenance Dredging Construction During SCAQMD contractor construction will not occur on the same day as Waterline Installation pipe laying (barge and workboat) or landslde concrete work (concrete truck, paving, and roller) Barge activities would occur for an estimated five days concrete work would occur for AQ-6 During construction, the project applicant shall implement the following measures Construction During SCAQMD contractor construction e Haul and dellverytruck idiingtimes shall be minimized either by shutting equipment off when not in use or reducing the maximum Idlingtime to less Sunset/Huntington Harbour Maintenance Dredging November 2014 and Waterline Installation Protect 1 ICF0028913 & Initial Study/Mltlgated Negative Declaration IP 14-148 0D49113 Page 1 of 9 City of Huntington Beach Mitigation Measure/ Condition of Approval No Mitigation Measure/Condition of Approval Responsibility for Responsibility Implementation Timing for Monitoring measure, 13 CCR 2485) Clear signage shall be provided for construction workers and construction vehicles at all access points • All construction equipment shall be maintained and properly tuned in accordance with manufacturer's specifications All equipment shall be checked by a certified mechanic and determined to be running in proper condition prior to operation a Consolidate truck deliveries when possible r'.B1OLOGICAURESOURCES , b r' ' r. 'S, - `i Y °'; 7 4'� i a ' it 4 ?y Ott% f} 4y r .fir- yr`.s ..3. ` BIO-1 Prior to commencement of dredging activities, Eelgrass surveys will be conducted, and again after dredging Is completed, consistent with the timing requirements listed In the Southern California Eelgrass Mitigation Policy (NMFS 1991 as amended) for review and approval by the Resource Agencies All existing and potential eelgrass habitat loss will be restored at a ratio of 112 and 11, respectively, or via other measures as approved by the appropriate regulatory and resource agencies Eelgrass will also be transplanted Into the mitigation site from approved donor sites and monitored by qualified biologists for 5 years to ensure success Yearly monitoring reports will be filed with resource agencies, the USACE, and the California Coastal Commission If yearly criteria are not met, then a replant will be conducted The amount to be replanted is based upon a formula that takes into accountthe area and/or density deficiencies (NMFS 1991 as amended) BIO-2 Buoys will be deployed to areas of eeigrass habitat to avoid these areas outside of the project area Floating booms and silt curtains will be used to contain any possible spills, debris, and sediment plumes BIO-3 Aqualified biologist will be on site during construction activities to monitor for the presence of wildlife and sensitive species in particular The biologist will have the authority to halt construction when Wildlife Is observed within 1DD meters of the dredge zone Work crews will be briefed on how to identify sea turtles, marine mammals and other special status species that would be expected to occur within and around the project area The biological monitor will prepare incident reports of Qualified biologist Priorto USACE, CCC, construction CDFW and after construction Construction During contractor construction CDFW Qualified biologist During USACE, CCC, construction CDFW Sunset/Huntlngton Harbor Maintenance Dredging November 2014 and Waterline Installation Project 2 1CF0028913 & Initial Study/Mitigated Negative Declaration IP 14-148 M 491ali Page 2 of 9 City of Huntington Beach Mitigation Monitoring and Reporting Program Mitigation Measure/ Condition of Approval No. Mitigation Measure/Condition of Approval Resoonsibllity for Timing Responsibility any observed sea turtle activity and will provide such reports to California Department of Fish and Wildlife (CDFW) and the National Marine Fisheries Service (NMFS) within 24 hours of an observation Work vessels movingto and from the project site will comply with a 5 miles per hour (mph) speed limit As work vessels approach and leave Sunset Harbor and Huntington Harbor, a recommended speed limit of 10-13 knots will be in place In the event of a vessel collision with a marine mammal or sea turtle, the County will immediately contact the NMFS Southwest Regional Office's Stranding Coordinator and CDFW, and will submit a report to the NMFS within 24 hours This measure will mitigate Impacts to other species of wlldlffe as well BIO-4 Priorto the Issuance of construction permits, the County will conduct the following surveys subjectto review by the CDFW, United States Federal Wildlife Service, and the United States Navy • A pre -construction plpellne route survey A qualified biologist Will accompany County of Orange staff and engineering consultants to Identify sensitive wildlife habitat and to recommend a pipeline route that avolds Impacts to sensitive vegetation, wildlife habitat, and potential Western snowy plover nesting habitat. This survey will be conducted within 30 days of pipeline Installation start and will be submitted to the County within five days of completion If It Is not possible for the pipeline route to avoid the backshore area and the pipeline is to be in place during the Western snowy plover nesting season (March through September), then two additional surveys will be required o A focused pre-constructlon nesting bird survey A qualified biologist will conducta nesting bird surrey within 100 meters ofthe pipeline corridor five days priorto the start of pipeline Installation o A focused post-constructlon nesting bird survey A qualified biologist will conduct a nesting bird surrey within five days of pipeline removal to determine If any nesting birds may be Impacted by pipeline removal If it is determined that nesting birds are present, then the pipeline shall remain in place until nesting activity Is no longer observed Sunset/Huntington Harbor Maintenance Dredging and Waterline Installation Project Initial Study/Mitigated Negative Declaration IP 14-148 Qualifled biologist Prior to USAGE, CCC, construction CDFW and after construction Nbvamber M14 ICF 0029913 & 0049113 Page 3of9 City of Huntington Beach Mitigation Monitoring and Reporting Program Mittgatlon Measure/ Condition of Res onsibilityfor Responsibility Approval No Mitigation Measure/Condition of Approval r implementation Timing for Monitoring 810-S Should pipeline construction, operation, or post -project demobilization occur Qualified biologist Prior to USACE, during the grunion spawning season (as deflned by the California Department of construction, CCC, CDFW Fish and Wildlife grunion calendar), the County of Orange shall prepare and during Implement a beach nourishment grunion habitat protection plan to include construction, 1 Temporal BMPs, such as avoidance of known spawning area during grunion runs to avoid disturbances to grunion spawning activity and to minimize damage to grunion spawning habitat, 2 Conduct pre -construction monitoring surveys within 3 weeks of proposed construction to determine the potential for grunion to use Surfside-Sunset beaches during beach nourishment activities, 3 Conduct grunion monitoring during known grunion run periods while beach nourishment activities are in progress to assess if specific areas ofthe beach are being Impacted, 4 1 mplement avoidance measures, If feasible, to minimize Impacts to specific areas ofthe beach if construction -period spawning is observed, and S Conduct post -beach nourishment grunion spawning success monitoring surveys at any sites on Surfside-Sunset beaches that appear to be impacted by beach nourishment activity The survey will be conducted during the first grunion run following completion ofthe nourishment activities The survey results will be included in a report that be submitted to the County of Orange, the National Marine Fisheries Service, Californla Department of Fish and Wildlife, and California Coastal Commission within 30 days afterthe grunion run BIO-6 One week prlorto commencement of any landside project -related activities within the breeding/nesting season (February 15 through September 15), the applicant will retain a qualified biologist to conduct preconstruction nesting bird surveys to determine whether nests are present In or around the proposed project area If a nest Is found, an appropriate buffer will be established by the qualifled biologist No construction or other activities will be allowed to occur within the buffer until the young have fledged or the nest becomes inactive The results ofthe and after construction Qualified biologist Prior to CCC, COFW Construction Sunset/Huntington Harbor Maintenance Dredging November 2014 and Waterline Installation Project 4 ICF 0028913 & Initial study/Mltlgated Negative Declaration IP 14-148 0D491J3 Page 4 of 9 City of Huntington Beach Mitigation Monitoring and Reporting Program Mitigation Measure/ Condition of Approval Responsibility for Responsibility No Mitigation Measure/Condition of Approval Implementation Timing for Monitoring preconstruction nesting bird survey will be provided to the City of Huntington Beach Planning and Building Department, prior to issuance of Clty permits CULTURAL RESOURCES CR-1 Prior to the Issuance of any construction permits, project plans will specify that if burled cultural resources —such as flaked or ground stone, historic debris, building foundations, or non -human bone —are inadvertently discovered or suspected during ground -disturbing activities, work will stop In that area and within 100 feet of the find until a qualified archaeologist can assess the significance of the find and, If necessary, develop appropriate treatment measures Treatment measures typically include development of avoidance strategies, capping with fill material, or mitigation of Impacts through data recovery programs such as excavation or detailed documentation No monitoring or other actions would be required If resources are not inadvertently discovered or suspected CR-2 Prior to the Issuance of any construction permits, project plans will specify that a qualified paleontologist will be contacted in the event that potential paleontological resources are discovered or suspected Treatment measures may include monitoring by a qualified paleontologist during further construction - related ground -disturbing activities if paleontological resources are discovered The qualified paleontological monitor will retain the option to reduce monitoring If, in his or her professional opinion, the sediments being monitored were previously disturbed Monitoring may also be reduced If the potentially fossiliferous units, previously described, are not present or, if present, are determined by qualified paleontological personnel to have a low potential to contain fossil resources No monitoring or other actions would be required if resources are not Inadvertently discovered or suspected. Design engineer, Prior to CCC, CSLC construction construction contractor and and during qualified construction archaeologist Design engineer, Prior to CCC, CSLC construction construction contractor and and during qualified construction paleontologist The monitor will be equipped to salvage fossils and samples of sediments as they are unearthed to avoid construction delays and will be empowered to temporarily I halt or divert equipment to allow removal of abundant or large specimens Recovered specimens will be prepared to a point of identification and permanent Sunset/Hundngton Harbor Maintenance credging November2014 and Waterline Installation Project 5 Iff 00289 13 & Initial Study/Mitigated Negative Declaration IP 14-148 0049L13 Page 5 of 9 city of Huntington Beach Mitigation Monitoring and Reporting Program Mitigation - Measure/ Condition of Approval Responsibility for Responsibility No Mitigation Measure/Condition of Approval Implementation Timing for Monitoring vertebrates Specimens will be curated Into a professional, accredited museum repository with permanent retrievable storage The final disposition of paleontological resources recovered on State lands underthe lurlsdictlon of the State Lands Commission must be approved by the Commission A reportof findings, with an appended Itemized Inventory ofspecimens, will be prepared and will signify completion ofthe program to mitigate Impacts on paleontological resources ' GEOLOGY/SOILS/SEiSMIC1TY L.._..w.a,.iu./SOI- _...MICIT GEO-1 Duringflnal design, the applicant's design engineer will ensure that all design criteria and specifications set forth in Section 4 3 "Miscellaneous Design and Construction Standards" of the Geotechnical Report (Appendix C) will be Incorporated Into the final design Prior to the issuance of a Public Works Encroachment Permit, the City of Huntington Beach Public Works Department must receive a completed copy of the Geotechnical Reportand will verify that such measures have been incorporated on the appropriate engineering plans and documents At a minimum the recommendations will Include the following measures • Use flexible couplings, such as gasketed joints or other means, to prevent damage due to settlement of the pipe • Place bedding material at least 12 inches below the Invert of new piping and extend overthe top of the pipeline • Backfill thrust block excavations with granular material in accordance with Section 4 6, "Site Preparation and Earthwork" of the Geotechnical Report Design engineer Final design City of and Construction and during Huntington Contractor construction Beach Public Works Engineer GEO-2 During final design, the applicant's Civil Engineer, In consultation with the Manager, Design engineer Final design RWQCB OC Watersheds, shall design the dewatering system and ensure that a specialty and Construction and during dewatering contractor shall install the dewateringsystem The system shall include Contractor construction a tight shoring system and make use of a sump pump to remove Water from the bottom of excavation The following procedures also shall be Implemented by the contractor • Monitoring wells shall be Installed outside of the excavation on all sides to monitor the Impact of dewatering to the groundwater, • Existing structures in the vicinity of the planned excavation shall be evaluated Sunset/Huntington Harbor Maintenance Dredging November 2014 and Waterline Installation Project 6 ICF 00289 13 & InitlaI study/Mitigated Negative Declaration I 14-148 0049113 Page 6 of 9 County of Orange City of Huntington Beach Mitigation Monitoring and Reporting Program Mitigation Measure/ Condition of Approval Responslblllty for Responsibility No Mitigation Measure/Conditlon of Approval implementation Timing for Monitoring with regard to the foundation type and potential for settlement, Settlement monuments shall be provided to monitor any settlement -sensitive structures, Provide an alarm system to notify the contractor should the pumps turn off, Dispose of groundwater in accordance with the guidelines of the Regional Water Quality Control Board i;HYDROLOGYAND WATER'QUALrfY - : i` s : x"-r'* _'T >nF„N..." 1" .;ri „'t'e IT, .. .... <^' 3 rni-.1 ,.r..'s HYD-1 Prior to initiation of any grading or dredging activities, the applicant is required to OC Parks receive approval from the Santa Ana Regional Water Quality Control Board for coverage under a 401 Certification The 401 Certification will Include conditions Involving Implementation of measures to reduce potential Increases In sedimentation, turbidity, and other Impacts associated with maintenance dredging activities HYD-2 During dredging/grading activities, the applicant will Include the use of a silt curtain Construction or silt fence system during dredging, when turbidity exceeds specified turbidity contractor limits The system must be placed so as to confine the disturbed waters within the area The system will be lined with bright orange buoys to create a visual detour barrier for boatingtrafnc during construction The silt curtains will remain in -place until the disturbed sediment has resettled and will be stabilized within the channel bed HYD-3 Turbidity will likely result from placement of dredge material in the Surfside/Sunset Construction Beach surfzone The effects of turbidity will be mitigated by appropriate turbidity contractor monitoring methods This involves a qualitative monitoring program (dally observations from a higher vantage point) and supplemented by a quantitative program If necessary If visual monitoring (qualitative monitoring) Indicates significant turbidity greater than ambient one-half mile from the discharge site (either offshore or down coast) for two consecutive days, then the monitor will Prior to RWQCB, USACE grading/ construction During RWQCB construction During RWQCB construction Sunset/Huntington Harbor Maintenance Dredging November 2014 and Waterline Installation Project 7 ICF 00289 33 & Initial Study/Mitigated Negative Declaration IP 14-148 00491 23 Page 7 of 9 City of Huntington Beach Mitigation Monitoringand Reporting Program Mitigation Measure/ Condition of Approval Responsibility for Responsibility No MltlgationMeasure/Condition of Approval Implementation Timing for Monitoring • Evaluate the effectiveness of discharge site BMPs and opportunities to modify shore placement methods to further reduce sediment discharge during periods ofstrong longshore movement, • Record and Implement the necessary modifications to the BMPs, • Notify the Santa Ana Regional Water Board and USACE contacts by telephone or email, and • The discharger will comply with any measures identified by the RWQCB, in consultation with other responsible agencies, as appropriate, to mitigate project -related turbidity, Including modifying or halting discharge Ifslgnlflcant turbidity persists on the third day, the monitor will commence the quantitative monitoring program !NOISE NOI-1 Prior to initiation of any dredging or grading activity , the project proponent Construction Prior to Director of OC shall produce evidence acceptable to the Orange County Manager of Permit contractor construction Parks or his/her Services that designee (1) All construction vehicles or equipment, fixed or mobile, operated within 1,000' of a dwelling unit shall be equipped with properly operating and maintained mufflers (2) All operations shall comply with Orange County Codified Ordinance Division 6 (Noise Control) (3) Stockpiling and/or vehicle staging areas shall be located as far as practicable from dwellings TRANSPORTATION/TRAFFIC M3: TR-1 • Prior to the Issuance of construction permits, the construction contractor will Construction Prior to OC Parks develop a Construction Management Plan to be approved by OC Parks that contractor construction will Include the following measures • Designate traffic control for any street closure, detour, or other disruption to traffic circulation Sunset/Huntington Harbor Maintenance Dredging November 2014 and Waterline Installation Project B ICF 0028913 & Initial Study/Mltlgated Negative 0eciaration IP 14-148 o049U3 Page 8 of 9 of Huntington Beach Mitigation Monitoring and Reporting Program Mitigation Measure/ Condition of Approval Responsibilityfor Responsibility No Mitieation Measure/Condition of Aooroval implementation Timing for Monitoring • Identify the routes that constructlon vehicles will utilize for the delivery of construction materials (i e , lumber, tiles, piping, windows), site access, traffic controls and detours, and a proposed construction phasing plan for the project • Specify the hours during which transport activities can occur and methods to mitigate construction -related Impacts on adjacent streets • Require the contractor to keep all haul routes clean and free of debris Including, but not limited to, gravel and dlrt as a result of Its operations The applicant will clean adjacent streets, as directed by OC Parks, of any material that may have been spilled, tracked, or blown onto adjacent streets or areas • Allowtruck hauling ortransport of oversize loads between the hours of9 a m and 3 p m, only, Monday through Friday, unless approved otherwise by OC Parks No truck hauling or transport will be allowed during nlghttime hours, weekends, or federal holidays TR-2 Prior to the commencement of construction activities, the City will notify and Construction Prior to City of coordinate with the emergency service providers, Including but not limited to the contractor Construction Huntington OC Sheriff Harbor Patrol, U S Navy, and HBFD, of the main channel closure at least Beach three weeks In advance of the activity sunset/Huntington Harbor Maintenance Dredging November2014 and Waterline Installation Project 9 ICF 00289 13 & Initial Study/Mltlgated Negative Declaration IP 14-148 0049L13 Page 9 of 9 City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk June 23, 2015 California State Lands Commission ATTN Ken Foster, Public Lands Manager 100 Howe Ave, Suite 100-South Sacramento, CA 95825-8202 Dear Ms Hall Enclosed are two originals of "Lease Agreement" for the Huntington Harbour Waterline Project Upon complete execution, please return an original to us Please mail the document to Joan L Flynn City Clerk 2000 Main Street Huntington Beach CA 92648 Feel free to contact me if there are any questions or concerns at (714) 536-5404 Thank you very much for your assistance Sincerely, 6&e.44*010' Joan L Flynn, CIVIC City Clerk JF pe Enclosure Sister Cities Anjo, Japan ♦ Wartakere, New Zealand Esparza, Patty From: Ferrigno, Andrew Sent: Monday, June 22, 2015 1 24 PM To: Esparza, Patty Cc: Lee, Duncan Subject: FW CSLC Contact, Huntington Harbour Dredging and Water Pipeline Installation Patty, Please send correspondences concerning the Huntington Harbour Dredging and Pipeline Project to Kenneth Foster Attached is Kenneth's contact information Andy Andrew Ferrigno Senior Civil Engineer City of Huntington Beach 714-536-5291 From: Foster, Kenneth@SLC[maiIto: Kenneth. Foster()slc.ca.gov] Sent: Monday, June 22, 2015 12:46 PM i To: Ferrigno, Andr 1\ Subje CSLC Contact, Huntington Harbou redginci and Water Pipeline Installation i Andy, Please send items to my attention to the following address California State Lands Commission 100 Howe Avenue, Suite 100 South Sacramento, CA 95825 Thanksi Ken Foster Public Land Manager California State Lands Commission 100 Howe Avenue, Suite 100 South Sacramento, CA 95825 (916)574-2555 From: Ferrigno, Andrew [mailto:AFerriono(-asurfcity-hb.org] Sent: Monday, June 22, 2015 12:19 PM To: Foster, Kenneth@SLC Subject: CSLC Contact, Huntington Harbour Dredging and Water Pipeline Installation. Ken, Can I get your address. The City Clerk has a signed agreement that needs to be mailed to you Thanks, Andy Andrew Ferrigno Senior Civil Engineer City of Huntington Beach 714-536-5291 From: Garvey, Kimberly[maiIto: kgarvey0moffattrnchol.com] Sent: Monday, June 22, 2015 12:08 PM To: Ferrigno, Andrew Subject: FW. CSLC Contact Found the email with Ken's contact info right after I hung up the phone See below From: Oetzel, Donn@SLC [maiIto: Donn.OetzeWslc.ca.gov] Sent: Thursday, May 28, 2015 4:03 PM To: Brodeur, Susan Subject: Automatic reply. CSLC Hearing Please be advised that Donn Oetzel has retired from the State Lands Commission effective May 7, 2015 Please contact Ken Foster at 916-574-2555 or kenneth fosterer-slc ca gov with any inquiries elated to projects you have been working on with Donn Thank your