CC 2021-01-12_08k Lease Agreement_Cloud Seeding_SLO County FCD
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY MCDONALD, CITY MANAGER / ACTING COMMUNITY
DEVELOPMENT DIRECTOR
BY: PATRICK HOLUB, ASSISTANT PLANNER
SUBJECT: RE-CONSIDERATION OF APPROVAL OF A CLOUD SEEDING LEASE
AGREEMENT WITH THE SAN LUIS OBISPO COUNTY WATER
CONSERVATION AND FLOOD CONTROL DISTRICT
DATE: JANUARY 12, 2021
SUMMARY OF ACTION:
Approval of the proposed Cloud Seeding Lease Agreement with the San Luis Obispo
County Water Conservation and Flood Control District (FCD) for property off of Branch
Mill Road at the end of Huebner Lane will allow FCD to construct a Cloud Seeding site
and increase the volume of surface water storage at Lake Lopez. This agreement is
modified slightly from the version approved by Council on November 10, 2020, to address
revised insurance requirements of the FCD.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The FCD will pay the City rent of $1 per year. Staff time has been necessary to prepare
the original and revised Lease Agreement for consideration by Council.
RECOMMENDATION:
It is recommended the City Council approve and authorize the Mayor to execute a
modified Cloud Seeding Lease Agreement (Lease Agreement) between the City and the
FCD for use of approximately 900 square feet of property located on Huebner Lane.
BACKGROUND:
On November 10, 2020 the City Council considered and approved a lease agreement
with the FCD for the lease of 900 square feet of City-owned property for use as a cloud
seeding site (Attachment 1). After additional review of the insurance requirements of
Exhibit C to the approved Lease Agreement, FCD has requested that the agreement be
revised as shown in Attachment 2.
ANALYSIS OF ISSUES:
The FCD is requesting that the insurance requirements included in the Lease Agreement
be revised in order to bring the agreement into conformance with the FCD’s insurance
requirements and to clarify the roles of “Lessor” and “Lessee.” The City Attorney has
Item 8.k. - Page 1
CITY COUNCIL
RE-CONSIDERATION OF APPROVAL OF A CLOUD SEEDING LEASE AGREEMENT
WITH THE SAN LUIS OBISPO COUNTY WATER CONSERVATION AND FLOOD
CONTROL DISTRICT
JANUARY 12, 2021
PAGE 2
reviewed these proposed revisions and indicates that they are reasonable under the
circumstances.
As before, the Lease Agreement has a one-year term, and four (4) one (1) year options
to extend to allow flexibility and to evaluate the success of the project. Options to extend
may be exercised if the FCD is in compliance with all provisions of the Lease Agreement
and provides at least sixty (60) days’ written notice prior to the expiration of the Lease
Agreement. The Lease Agreement would allow the FCD to utilize 900 square feet of the
easternmost portion of the site for the ground-based equipment.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve staff’s recommendation;
2. Do not approve staff’s recommendation;
3. Provide direction to staff.
ADVANTAGES:
Approval of the modified Lease Agreement will allow the City to participate in the existing
cloud seeding program and potentially increase rainfall totals in the Lake Lopez
watershed.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
On August 13, 2019, following a public hearing, the San Luis Obispo County Board of
Supervisors adopted a Final Mitigated Negative Declaration (MND) for the Winter Cloud
Seeding Program for Lake Lopez and Salinas Reservoir watersheds. This determination
is sufficient under the California Environmental Quality Act for the establishment of this
new location. The FCD is responsible for implementing the mitigation measures identified
in the MND throughout the duration of the project.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. November 10, 2020 Approved Lease Agreement
2. Revised Lease Agreement
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1
GROUND LEASE AGREEMENT FOR CLOUD SEEDING SITE
THIS GROUND LEASE AGREEMENT (“Agreement”) is made this 10th day of November,
2020, by and between the SAN LUIS OBISPO COUNTY FLOOD CONTROL AND
WATER CONSERVATION DISTRICT, a special district located within San Luis Obispo
County, a political subdivision of the State of California, (“DISTRICT”) and the CITY OF
ARROYO GRANDE, a municipal corporation (“LESSOR”).
RECITALS
WHEREAS, LESSOR is the owner of a parcel of land located at 581 Huebner Lane,
Arroyo Grande, more particularly described as San Luis Obispo County Assessor's Parcel
Number 007-611-016 (the "Property”);
WHEREAS, the DISTRICT desires to construct, operate and maintain cloud seeding
equipment on a portion of the Property (the “Facility Site”);
WHEREAS, LESSOR is willing to permit the use and maintenance of the Facility Site by
DISTRICT provided DISTRICT protects LESSOR from liability as provided herein, pays
rent as provided herein for the use and maintenance of the Facility, and takes appropriate
steps to prevent interference with LESSOR and other lessees’ use of the Property.
NOW, THEREFORE, in consideration of the premises and the provisions, covenants and
conditions hereinafter set forth, DISTRICT and LESSOR agree as follows:
1.LEASED PROPERTY/USE: LESSOR hereby exclusively leases to DISTRICT a
portion of ground space measuring approximately 30 by 30 feet in the location
shown on Exhibit “A,” attached hereto and incorporated herein by reference (the
“Facility Site”), together with the non-exclusive right of ingress and egress to the
Facility Site maintained by LESSOR as reasonably necessary to allow the
DISTRICT access to the Facility Site. Lessee shall use the Facility Site solely for
the purpose of constructing, maintaining and operating the Facility Site as
described in Exhibit "B," attached hereto and incorporated herein by reference.
2.DISTRICT’S EXCLUSIVE USE: The Facility Site is leased to the DISTRICT for
the sole purpose of cloud seeding and non-commercial use of the Facility Site.
DISTRICT shall not use or permit the Facility Site or any part thereof to be used
for any purpose other than the purposes stated herein or otherwise approved in
writing by the LESSOR.
3.RENT: For and in consideration of the rights granted in Section 1 above, during
the term of this Agreement, DISTRICT shall pay to LESSOR the sum of One
Dollar and 00/100 ($1.00) per year. Said payment shall be made in full and in
advance of each year of the lease term.
4.TERM: The term of this Agreement shall commence upon execution by all parties
and shall terminate October 31, 2021, unless extended as provided herein.
Attachment 1
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5. OPTION TO EXTEND: Provided DISTRICT is in compliance with all the terms
and conditions of this Agreement, DISTRICT is hereby granted four (4) options to
extend this Agreement from and after the expiration of the original term, which
options shall be for a period of one (1) year each. DISTRICT, through its Director
(or designee), may exercise said option(s) to renew by providing written notice to
LESSOR at least sixty (60) days prior to the expiration of the then-current term
(by September 1 of each year).
Extension Periods:
Extension One: November 1, 2021 through October 31, 2022
Extension Two: November 1, 2022 through October 31, 2023
Extension Three: November 1, 2023 through October 31, 2024
Extension Four: November 1, 2024 through October 31, 2025
In the absence of a written extension, any holdover occupancy by DISTRICT shall
be deemed to be on a month to month basis.
6. INDEMNIFICATION: To the fullest extent permitted by law and without limiting
the specific provisions set forth in Section 10 below related to environmental
matters and hazardous materials, each party shall indemnify, defend, and hold
harmless the other party and the other party’s officers, partners, agents,
employees, and volunteers from and against all claims, demands, damages,
liabilities, loss, costs, and expense (including attorney’s fees and costs of
litigation) of every nature arising out of or in connection with the indemnifying
party’s performance or non-performance of any obligation or duty provided for or
relating to this Agreement and/or the Property, except such loss or damage which
was caused by sole negligence or willful misconduct of the potential indemnitee.
7. SURRENDER OF FACILITY SITE: Upon expiration or earlier termination of this
Agreement, DISTRICT agrees to remove all improvements placed or caused to
be placed on LESSOR'S Property by DISTRICT and shall cause the Facility Site
to be restored to its original, pre-lease condition so far as is reasonably
practicable, unless otherwise agreed by both parties.
DISTRICT further agrees to use all reasonable efforts to prevent the general
public, persons not employed by, agents of, or contracted by the DISTRICT to
undertake activities in furtherance of the purposes of this Agreement, and all other
unauthorized persons, from using or accessing any areas of the Property to which
the DISTRICT has access.
8. INTERFERENCE: DISTRICT shall construct, operate and maintain the Facility
Site in such a manner that does not cause interference to LESSOR and other
lessees of the Property. LESSOR shall not lease any portion of the Property in
any way which interferes with DISTRICT’s use. Any interference of the Facility
Site shall be deemed a material breach by LESSOR, and LESSOR must
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terminate said interference immediately, following thirty (30) days written notice
directed to LESSOR.
9. ASSIGNMENT: DISTRICT shall not assign this Agreement in whole or in part,
nor, without the prior written consent of the LESSOR.
10. Environmental Matters / Covenants Regarding Hazardous Materials:
DISTRICT shall not cause or permit any hazardous substance to be used, stored,
generated or disposed of on or about the Property by DISTRICT, its agents,
employees or contractors. If DISTRICT causes or permits the presence of any
hazardous substance on the Property that results in contamination, DISTRICT
shall promptly, at its sole expense, take any and all necessary action to return the
Property to the condition existing prior to the presence of any such hazardous
substance on the Property. DISTRICT shall first obtain LESSOR’S approval for
any such remedial action.
LESSOR and DISTRICT shall at all times and in all respects comply with all
federal, state and local laws, ordinances and regulations ("Hazardous Materials
Laws") relating to industrial hygiene, environmental protection or the use,
analysis, generation, manufacture, storage, disposal or transportation of any oil,
flammable explosives, asbestos, urea formaldehyde, radioactive materials or
waste, or other hazardous, toxic, contaminated or polluting materials, substances
or wastes, including, without limitation, any "hazardous substances," "hazardous
wastes," "hazardous materials" or "toxic substances" under such laws, ordinance
or regulations (collectively, "Hazardous Materials"). LESSOR and DISTRICT
shall further indemnify, defend, protect, and hold each other free and harmless
from and against any and all claims, liabilities, penalties, forfeitures, losses or
expenses (including attorneys' fees) or death of or injury to any person or damage
to any property whatsoever, arising from or caused in whole or in part, directly or
indirectly, by:
(A) the presence in, on, under or about the premises or discharge in or
from the premises of any Hazardous Materials or LESSOR's or DISTRICT’s use,
analysis, storage, transportation, disposal, release, threatened release,
discharge or generation of Hazardous Materials to, in, on, under, about or from
the premises, or
(B) LESSOR's or DISTRICT's failure to comply with any Hazardous Materials
Law. LESSOR's and DISTRICT's obligations hereunder shall include, without
limitation, and whether foreseeable or unforeseeable, all costs of any required or
necessary repair, cleanup or detoxification or decontamination of the premises,
and the preparation and implementation of any closure, remedial action or other
required plans in connection therewith, and shall survive the expiration or earlier
termination of the term of this Agreement. For purposes of the release and
indemnity provisions hereof, any acts or omissions of LESSOR or DISTRICT , or
by employees, agents, assignees, contractors or subcontractors of LESSOR or
DISTRICT or others acting for or on behalf of LESSOR or DISTRICT (whether or
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not they are negligent, intentional, willful or unlawful) shall be strictly attributable
to LESSOR or DISTRICT.
11. INSURANCE: DISTRICT shall, at its sole cost and expense, procure and
maintain during the entire term of this Agreement in accordance with the
requirements of Exhibit "C," which is attached hereto and incorporated herein.
Proof of insurance shall be submitted to the LESSOR prior to any use of the
Facility Site by DISTRICT.
12. WAIVER: Waiver of any default by either party to this Agreement shall not be
deemed to be waiver of any subsequent default. Waiver or breach of any
provision of this Agreement shall not be deemed to be a waiver of any other or
subsequent breach, and shall not be construed to be a modification of the terms
of this Agreement unless this Agreement is modified or amended as provided
herein.
13. AMENDMENT: This Agreement may be amended by the mutual consent of the
parties hereto if such amendment or change is in written form and executed by
the DISTRICT, or designee, and by the LESSOR.
14. CONSTRUCTION: Headings or captions to the provisions of this Agreement are
solely for the convenience of the parties, are not part of this Agreement, and shall
not be used to interpret or determine the validity of this Agreement. Any ambiguity
in this Agreement shall not be construed against the drafter, but rather the terms
and provisions hereof shall be given a reasonable interpretation as if both parties
had, in fact, drafted this Agreement
15. SUCCESSORS IN INTEREST: This Agreement shall continue to the benefit of
and be binding upon the employees, agents, heirs, successors in interest,
personal representatives and assigns of the parties.
16. NOTICES: Except where otherwise specifically provided herein, all notices,
payments and statements under this Agreement and in connection herewith shall
be addressed and delivered personally or with postage prepaid by first class mail,
registered or certified mail, or express courier service as follows:
TO DISTRICT: San Luis Obispo County Flood Control and
Water Conservation District
County Government Center
1055 Monterey Street
San Luis Obispo, CA 93408
TO LESSOR: City of Arroyo Grande
300 E Branch Street
Arroyo Grande, CA 93420
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or at such other place as LESSOR or DISTRICT may from time to time designate
in writing. When any notice is deposited in the United States Mail, first class
postage prepaid, and directed to the address herein provided for, it shall be
deemed delivered for all purposes hereunder on the next immediately following
day
17. ENTIRE AGREEMENT: This Agreement contains the entire agreement between
the parties relating to the lease and use of the Facility Site and supersedes all
prior agreements, understandings, negotiations, and discussions of the parties,
whether expressed or implied, and there are no warranties, representations,
covenants, or other agreements between the parties in connection with the
subject matter hereof, except as specifically set forth herein.
18. SEVERABILITY: If any provision of this Agreement is determined by a court of
competent jurisdiction to be illegal or unenforceable, said provision shall be
deemed to be severed and deleted and neither such provision, its severance nor
deletion, shall affect the validity of the remaining provisions of this Agreement.
19. APPLICABLE LAW AND VENUE: This Agreement shall be construed in
accordance with and be governed by the laws of the State of California. The
Parties agree that in the event of any litigation between them or arising from or
related to this Agreement, the exclusive venue of such litigation shall be in the
State of California, Superior Court of San Luis Obispo County.
20. DIRECTOR AUTHORITY/CERTIFICATION OF SIGNATORY: DISTRICT
Director or designee may exercise all rights and obligations of DISTRICT under
this Agreement, unless specifically provided otherwise herein or required by law.
The parties to this Agreement acknowledge that the Board of Supervisors
delegates to the DISTRICT the authority to renew/amend the Agreement by
extending its term, and to sign any amendment exchanging, deleting, or adding
to the terms and conditions of this Agreement. Any amendment made pursuant
to a delegation of authority will only be effective if, prior to the commencement of
services or extension of the Agreement, the amendment is memorialized in
writing, is approved by DISTRICT Counsel, and is signed by the Director. The
Board expressly delegates to the Director the authority to renew this Agreement
contingent on prior funding approval.
All signatories and parties to this Agreement warrant and represent that they have
the power and authority to enter into this Agreement in the names, titles and
capacities herein stated.
IN WITNESS WHEREOF, DISTRICT and LESSOR have executed this Agreement to be
effective on the date first stated above.
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SAN LUIS OBISPO COUNTY FLOOD
CONTROL AND WATER
CONSERVATION DISTRICT:
CITY OF ARROYO GRANDE
By:
Name:
Title:
Date:
By:
Caren Ray Russom, Mayor
Date:
APPROVED AS TO FORM: APPROVED AS TO FORM:
Rita Neal, County Counsel
Date:
Timothy J. Carmel, City Attorney
Date:
Item 8.k. - Page 8
EXHIBIT A
FACILITY SITE LOCATION
Item 8.k. - Page 9
EXHIBIT B
INSTALLATION OF CLOUD-SEEDING EQUIPMENT
APN-007-611-016
Description
For ground-based seeding of coastal storms, NAWC uses burn-in-place flares, that release Silver
Iodide. Silver Iodide molecules attract super-cooled liquid water (water that exists in a storm system in
liquid form below freezing) molecules, causing them to coalesce and form snowflakes or hail stones.
Through this process, moisture that would otherwise stay aloft is extracted from the storm system and
falls to the ground where it contributes to runoff and ground water.
Safety
The burn in place flares are housed in spark arrestors to protect nearby vegetation. In addition,
our technicians perform weed abatement as necessary to prevent the growth of tall weeds in the
surrounding area. If our systems are located in open fields, we provide enclosures to keep animals and
pedestrians away from equipment and machinery. In the case of APN-007-611-016, a perimeter fence
already exists.
Silver Iodide in the presence of daylight Silver Iodide quickly returns to elemental Silver and
Iodine. Iodine is a critical food supplement for various mammals, including humans. Silver is almost
completely biologically inert, and even if directly ingested would pass through the body without being
absorbed by tissue. Both Siler and Iodide quickly dissipate into the storm system and are thoroughly
dispersed. No significant concentrations of either compound will remain in the immediate areas
surrounding the installations.
Equipment
The equipment to be installed consists of 2 primary masts that house the burn-in-place flares,
one mast that holds the solar panel and coms equipment and a web camera for monitoring equipment
(detailed pictures of the equipment are included below). The 3 masts are supported by aluminum bases
that are buried in the ground and encased in poured concrete. These bases extend about 2-feet above
grade. If necessary, the three masts can be removed at the end of each storm season and re-installed
prior to the next season, reducing the equipment footprint during the summer months. This would,
however, incur some additional expense to the County of San Luis Obispo if required. The web camera is
mounted to a small pole buried 1-2 feet in the ground, and sometimes incased in a small amount of
concrete. This camera serves both a security and operational function as it allows us to monitor the
flares as they burn, during a storm system.
Installation and maintenance
Installation is minimally invasive and generally requires two days of access to the facility. On the
first day, holes are dug and concrete is poured (mixed by hand on-site). The concrete is allowed 24-
48hrs to cure, at which point the masts are dropped and locked into their bases.
Periodically throughout the season flares will be replaced. Typically, this happens once every 2-5
storms, generally 1 or 2 times per month. This takes roughly an hour to complete. Some of our partners
provide us with gate keys to access the site for regular maintenance, others require a member of the
partnering utility to be onsite during these maintenance intervals, we leave that decision up to you.
Item 8.k. - Page 10
EXHIBIT B
Figure 1. Proposed location of the installation
Figure 2. Detailed view of the proposed location of the installation
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EXHIBIT B
Figure 3. Equipment with labels
Figure 4. Above grade measurements of equipment
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EXHIBIT B
Figure 5. Below grade representation
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EXHIBIT C
INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, District will maintain
insurance in conformance with the requirements set forth below. District will use existing
coverage to comply with these requirements. If that existing coverage does not meet the
requirements set forth here, District agrees to amend, supplement or endorse the existing
coverage to do so. District acknowledges that the insurance coverage and policy limits
set forth in this section constitute the minimum amount of coverage required. Any
insurance proceeds available to City in excess of the limits and coverage required in this
agreement and which is applicable to a given loss, will be available to City.
District shall provide the following types and amounts of insurance:
Commercial General Liability Insurance using Insurance Services Office “Commercial
General Liability” policy from CG 00 01 or the exact equivalent. Defense costs must be
paid in addition to limits. There shall be no cross liability exclusion for claims or suits by
one insured against another. Limits are subject to review but in no event less than
$1,000,000 per occurrence.
Business Auto Coverage on ISO Business Auto Coverage from CA 00 01 including
symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event
to be less than $1,000,000 per accident. If District owns no vehicles, this requirement may
be satisfied by a non-owned auto endorsement to the general liability policy described
above. If District or District’s employees will use personal autos in any way on this project,
District shall provide evidence of personal auto liability coverage for each such person.
Workers Compensation on a state-approved policy form providing statutory benefits as
required by law with employer’s liability limits no less than $1,000,000 per accident or
disease.
Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements,
shall provide coverage at least as broad as specified for the underlying coverages. Any
such coverage provided under an umbrella liability policy shall include a drop down
provision providing primary coverage above a maximum $25,000 self-insured retention
for liability not covered by primary but covered by the umbrella. Coverage shall be
provided on a “pay on behalf” basis, with defense costs payable in addition to policy limits.
Policy shall contain a provision obligating insurer at the time insured’s liability is
determined, not requiring actual payment by the insured first. There shall be no cross
liability exclusion precluding coverage for claims or suits by one insured against another.
Coverage shall be applicable to City for injury to employees of District, subcontractors or
others involved in the Work. The scope of coverage provided is subject to approval of City
following receipt of proof of insurance as required herein. Limits are subject to review but
in no event less than $1,000,000 per occurrence.
Professional Liability or Errors and Omissions Insurance as appropriate shall be written
on a policy form coverage specifically designated to protect against acts, errors or
omissions of the District and “Covered Professional Services” as designated in the policy
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EXHIBIT C
must specifically include work performed under this agreement. The policy limit shall be
no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf
of” the insured and must include a provision establishing the insurer’s duty to defend. The
policy retroactive date shall be on or before the effective date of this agreement.
Insurance procured pursuant to these requirements shall be written by insurer that are
admitted carriers in the state California and with an A.M. Bests rating of A- or better and
a minimum financial size VII.
General conditions pertaining to provision of insurance coverage by District. District and
City agree to the following with respect to insurance provided by District:
1. District agrees to have its insurer endorse the third party general liability
coverage required herein to include as additional insureds City, its officials employees
and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992.
District also agrees to require all Districts, and subcontractors to do likewise.
2. No liability insurance coverage provided to comply with this Agreement shall
prohibit District, or District’s employees, or agents, from waiving the right of subrogation
prior to a loss. District agrees to waive subrogation rights against City regardless of the
applicability of any insurance proceeds, and to require all Districts and subcontractors to
do likewise.
3. All insurance coverage and limits provided by District and available or
applicable to this agreement are intended to apply to the full extent of the policies. Nothing
contained in this Agreement or any other agreement relating to the City or its operations
limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these
requirements if they include any limiting endorsement of any kind that has not been first
submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would serve
to eliminate so-called “third party action over” claims, including any exclusion for bodily
injury to an employee of the insured or of any District or subcontractor.
6. All coverage types and limits required are subject to approval, modification
and additional requirements by the City, as the need arises. District shall not make any
reductions in scope of coverage (e.g. elimination of contractual liability or reduction of
discovery period) that may affect City’s protection without City’s prior written consent.
7. Proof of compliance with these insurance requirements, consisting of
certificates of insurance evidencing all of the coverages required and an additional
insured endorsement to District’s general liability policy, shall be delivered to City at or
prior to the execution of this Agreement. In the event such proof of any insurance is not
delivered as required, or in the event such insurance is canceled at any time and no
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EXHIBIT C
replacement coverage is provided, City has the right, but not the duty, to obtain any
insurance it deems necessary to protect its interests under this or any other agreement
and to pay the premium. Any premium so paid by City shall be charged to and promptly
paid by District or deducted from sums due District, at City option.
8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City
of any cancellation of coverage. District agrees to require its insurer to modify such
certificates to delete any exculpatory wording stating that failure of the insurer to mail
written notice of cancellation imposes no obligation, or that any party will “endeavor” (as
opposed to being required) to comply with the requirements of the certificate.
9. It is acknowledged by the parties of this agreement that all insurance
coverage required to be provided by District or any subcontractor, is intended to apply
first and on a primary, noncontributing basis in relation to any other insurance or self
insurance available to City.
10. District agrees to ensure that subcontractors, and any other party involved
with the project who is brought onto or involved in the project by District, provide the same
minimum insurance coverage required of District. District agrees to monitor and review
all such coverage and assumes all responsibility for ensuring that such coverage is
provided in conformity with the requirements of this section. District agrees that upon
request, all agreements with subcontractors and others engaged in the project will be
submitted to City for review.
11. District agrees not to self-insure or to use any self-insured retentions or
deductibles on any portion of the insurance required herein and further agrees that it will
not allow any District, subcontractor, Architect, Engineer or other entity or person in any
way involved in the performance of work on the project contemplated by this agreement
to self-insure its obligations to City. If District’s existing coverage includes a deductible or
self-insured retention, the deductible or self-insured retention must be declared to the
City. At the time the City shall review options with the District, which may include reduction
or elimination of the deductible or self-insured retention, substitution of other coverage,
or other solutions.
12. The City reserves the right at any time during the term of the contract to
change the amounts and types of insurance required by giving the District ninety (90)
days advance written notice of such change. If such change results in substantial
additional cost to the District, the City will negotiate additional compensation proportional
to the increase benefit to City.
13. For purposes of applying insurance coverage only, this Agreement will be
deemed to have been executed immediately upon any party hereto taking any steps that
can be deemed to be in furtherance of or towards performance of this Agreement.
14. District acknowledges and agrees that any actual or alleged failure on the
part of City to inform District of non-compliance with any insurance requirements in no
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EXHIBIT C
way imposes any additional obligations on City nor does it waive any rights hereunder in
this or any other regard.
15. District will renew the required coverage annually as long as City, or its
employees or agents face an exposure from operations of any type pursuant to this
agreement. This obligation applies whether or not the agreement is canceled or
terminated for any reason. Termination of this obligation is not effective until City executes
a written statement to that effect.
16. District shall provide proof that policies of insurance required herein expiring
during the term of this Agreement have been renewed or replaced with other policies
providing at least the same coverage. Proof that such coverage has been ordered shall
be submitted prior to expiration. A coverage binder or letter from District’s insurance agent
to this effect is acceptable. A certificate of insurance and/or additional insured
endorsement as required in these specifications applicable to the renewing or new
coverage must be provided to City within five days of the expiration of the coverages.
17. The provisions of any workers’ compensation or similar act will not limit the
obligations of District under this agreement. District expressly agrees not to use any
statutory immunity defenses under such laws with respect to City, its employees, officials
and agents.
18. Requirements of specific coverage features or limits contained in this
section are not intended as limitations on coverage, limits or other requirements nor as a
waiver of any coverage normally provided by any given policy. Specific reference to a
given coverage feature is for purposes of clarification only as it pertains to a given issue,
and is not intended by any party or insured to be limiting or all-inclusive.
19. These insurance requirements are intended to be separate and distinct from
any other provision in this agreement and are intended by the parties here to be
interpreted as such.
20. The requirements in this Section supersede all other sections and
provisions of this Agreement to the extent that any other section or provision conflicts with
or impairs the provisions of this Section.
21. District agrees to be responsible for ensuring that no contract used by any
party involved in any way with the project reserves the right to charge City or District for
the cost of additional insurance coverage required by this agreement. Any such provisions
are to be deleted with reference to City. It is not the intent of City to reimburse any third
party for the cost of complying with these requirements. There shall be no recourse
against City for payment of premiums or other amounts with respect thereto.
22. District agrees to provide immediate notice to City of any claim or loss
against District arising out of the work performed under this agreement. City assumes no
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EXHIBIT C
obligation or liability by such notice, but has the right (but not the duty) to monitor the
handling of any such claim or claims if they are likely to involve City.
Item 8.k. - Page 18
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GROUND LEASE AGREEMENT FOR CLOUD SEEDING SITE
THIS GROUND LEASE AGREEMENT (“Agreement”) is made this day of , 20
by and between the SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION
DISTRICT, a special district located within San Luis Obispo County (“DISTRICT”) and the CITY OF
ARROYO GRANDE, a municipal corporation (“LESSOR”).
RECITALS
WHEREAS, LESSOR is the owner of a parcel of land located at 581 Huebner Lane, Arroyo Grande, more
particularly described as San Luis Obispo County Assessor's Parcel Number 007-611-016 (the
"Property”);
WHEREAS, the DISTRICT desires to construct, operate and maintain cloud seeding equipment on a
portion of the Property (the “Facility Site”);
WHEREAS, LESSOR is willing to permit the use and maintenance of the Facility Site by DISTRICT
provided DISTRICT protects LESSOR from liability as provided herein, pays rent as provided herein for
the use and maintenance of the Facility Site, and takes appropriate steps to prevent interference with
LESSOR and other lessees’ use of the Property.
NOW, THEREFORE, in consideration of the premises and the provisions, covenants and conditions
hereinafter set forth, DISTRICT and LESSOR agree as follows:
1.LEASED PROPERTY/USE: LESSOR hereby exclusively leases to DISTRICT a portion of ground
space measuring approximately 30 by 30 feet in the location shown on Exhibit “A,” attached
hereto and incorporated herein by reference (the “Facility Site”), together with the non-
exclusive right of ingress and egress to the Facility Site maintained by LESSOR as reasonably
necessary to allow the DISTRICT access to the Facility Site. Lessee shall use the Facility Site
solely for the purpose of constructing, maintaining and operating the Facility Site as described
in Exhibit "B," attached hereto and incorporated herein by reference.
2.DISTRICT’S EXCLUSIVE USE: The Facility Site is solely leased to the DISTRICT for the sole
purpose of cloud seeding and non-commercial use of the Facility Site. DISTRICT shall not use
or permit the Facility Site or any part thereof to be used for any purpose other than the
purposes stated herein or otherwise approved in writing by the LESSOR.
3.RENT: For and in consideration of the rights granted in Section 1 above, during the term of
this Agreement, DISTRICT shall pay to LESSOR the sum of One Dollar and 00/100 ($1.00) per
year. Said payment shall be made in full and in advance of each year of the lease term.
4.TERM: The term of this Agreement shall commence upon execution by all parties and shall
terminate October 31, 2021, unless extended as provided herein.
5.OPTION TO EXTEND: Provided DISTRICT is in compliance with all the terms and conditions of
this Agreement, DISTRICT is hereby granted four (4) options to extend this Agreement from
and after the expiration of the original term, which options shall be for a period of one (1) year
Attachment 2
Item 8.k. - Page 19
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6. each. DISTRICT, through its Director (or designee), may exercise said option(s) to renew by
providing written notice to LESSOR at least sixty (60) days prior to the expiration of the then-
current term (by September 1 of each year).
Extension Periods:
Extension One: November 1, 2021 through October 31, 2022
Extension Two: November 1, 2022 through October 31, 2023
Extension Three: November 1, 2023 through October 31, 2024
Extension Four: November 1, 2024 through October 31, 2025
In the absence of a written extension, any holdover occupancy by DISTRICT shall be deemed
to be on a month to month basis.
7. INDEMNIFICATION: To the fullest extent permitted by law and without limiting the specific
provisions set forth in Section 10 below related to environmental matters and hazardous
materials, each party shall indemnify, defend, and hold harmless the other party and the other
party’s officers, partners, agents, employees, and volunteers from and against all claims,
demands, damages, liabilities, loss, costs, and expense (including attorney’s fees and costs of
litigation) of every nature arising out of or in connection with the indemnifying party’s
performance or non-performance of any obligation or duty provided for or relating to this
Agreement and/or the Property, except such loss or damage which was caused by sole
negligence or willful misconduct of the potential indemnitee.
8. SURRENDER OF FACILITY SITE: Upon expiration or earlier termination of this Agreement,
DISTRICT agrees to remove all improvements placed or caused to be placed on LESSOR'S
Property by DISTRICT and shall cause the Facility Site to be restored to its original, pre-lease
condition so far as is reasonably practicable, unless otherwise agreed by both parties.
DISTRICT further agrees to use all reasonable efforts to prevent the general public, persons
not employed by, agents of, or contracted by the DISTRICT to undertake activities in
furtherance of the purposes of this Agreement, and all other unauthorized persons, from
using or accessing any areas of the Property to which the DISTRICT has access.
9. INTERFERENCE: DISTRICT shall construct, operate and maintain the Facility Site in such a
manner that does not cause interference to LESSOR and other lessees of the Property. LESSOR
shall not lease any portion of the Property in any way which interferes with DISTRICT’s use.
Any interference of Property shall be deemed a material breach by LESSOR, and LESSOR must
terminate said interference immediately, following thirty (30) days written notice directed to
LESSOR.
10. ASSIGNMENT: DISTRICT shall not assign this Agreement in whole or in part, nor, without the
prior written consent of the LESSOR.
11. Environmental Matters / Covenants Regarding Hazardous Materials: DISTRICT shall not
cause or permit any hazardous substance to be used, stored, generated or disposed of on or
about the Property by DISTRICT, its agents, employees or contractors. If DISTRICT causes or
permits the presence of any hazardous substance on the Property that results in
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contamination, DISTRICT shall promptly, at its sole expense, take any and all necessary action
to return the Property to the condition existing prior to the presence of any such hazardous
substance on the Property. DISTRICT shall first obtain LESSOR’S approval for any such remedial
action.
LESSOR and DISTRICT shall at all times and in all respects comply with all federal, state and
local laws, ordinances and regulations ("Hazardous Materials Laws") relating to industrial
hygiene, environmental protection or the use, analysis, generation, manufacture, storage,
disposal or transportation of any oil, flammable explosives, asbestos, urea formaldehyde,
radioactive materials or waste, or other hazardous, toxic, contaminated or polluting materials,
substances or wastes, including, without limitation, any "hazardous substances," "hazardous
wastes," "hazardous materials" or "toxic substances" under such laws, ordinance or
regulations (collectively, "Hazardous Materials"). LESSOR and DISTRICT shall further
indemnify, defend, protect, and hold each other free and harmless from and against any and
all claims, liabilities, penalties, forfeitures, losses or expenses (including attorneys' fees) or
death of or injury to any person or damage to any property whatsoever, arising from or caused
in whole or in part, directly or indirectly, by:
(A) the presence in, on, under or about the Property or discharge in or from the Property of
any Hazardous Materials or LESSOR's or DISTRICT’s use, analysis, storage, transportation,
disposal, release, threatened release, discharge or generation of Hazardous Materials to, in,
on, under, about or from the Property, or
(B) LESSOR's or DISTRICT's failure to comply with any Hazardous Materials Law. LESSOR's and
DISTRICT's obligations hereunder shall include, without limitation, and whether foreseeable or
unforeseeable, all costs of any required or necessary repair, cleanup or detoxification or
decontamination of the Property, and the preparation and implementation of any closure,
remedial action or other required plans in connection therewith, and shall survive the
expiration or earlier termination of the term of this Agreement. For purposes of the release
and indemnity provisions hereof, any acts or omissions of LESSOR or DISTRICT, or by
employees, agents, assignees, contractors or subcontractors of LESSOR or DISTRICT or others
acting for or on behalf of LESSOR or DISTRICT (whether or not they are negligent, intentional,
willful or unlawful) shall be strictly attributable to LESSOR or DISTRICT.
12. INSURANCE: DISTRICT and LESSOR shall, at their sole cost and expense, procure and maintain
during the entire term of this Agreement insurance in accordance with the requirements of
Exhibit "C," which is attached hereto and incorporated herein. Proof of insurance shall be
submitted to the other party prior to any use of the Facility Site by DISTRICT.
13. WAIVER: Waiver of any default by either party to this Agreement shall not be deemed to be
waiver of any subsequent default. Waiver or breach of any provision of this Agreement shall
not be deemed to be a waiver of any other or subsequent breach, and shall not be construed
to be a modification of the terms of this Agreement unless this Agreement is modified or
amended as provided herein.
14. AMENDMENT: This Agreement may be amended by the mutual consent of the parties hereto
if such amendment or change is in written form and executed by the DISTRICT, or designee,
and by the LESSOR.
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15. CONSTRUCTION: Headings or captions to the provisions of this Agreement are solely for the
convenience of the parties, are not part of this Agreement, and shall not be used to interpret
or determine the validity of this Agreement. Any ambiguity in this Agreement shall not be
construed against the drafter, but rather the terms and provisions hereof shall be given a
reasonable interpretation as if both parties had, in fact, drafted this Agreement
16. SUCCESSORS IN INTEREST: This Agreement shall continue to the benefit of and be binding
upon the employees, agents, heirs, successors in interest, personal representatives and
assigns of the parties.
17. NOTICES: Except where otherwise specifically provided herein, all notices, payments and
statements under this Agreement and in connection herewith shall be addressed and
delivered personally or with postage prepaid by first class mail, registered or certified mail, or
express courier service as follows:
TO DISTRICT: San Luis Obispo County Flood Control and
Water Conservation District
County Government Center
1055 Monterey Street
San Luis Obispo, CA 93408
TO LESSOR: City of Arroyo Grande
300 E Branch Street
Arroyo Grande, CA 93420
or at such other place as LESSOR or DISTRICT may from time to time designate in writing.
When any notice is deposited in the United States Mail, first class postage prepaid, and
directed to the address herein provided for, it shall be deemed delivered for all purposes
hereunder on the next immediately following day
18. ENTIRE AGREEMENT: This Agreement contains the entire agreement between the parties
relating to the lease and use of the Facility Site and supersedes all prior agreements,
understandings, negotiations, and discussions of the parties, whether expressed or implied,
and there are no warranties, representations, covenants, or other agreements between the
parties in connection with the subject matter hereof, except as specifically set forth herein.
19. SEVERABILITY: If any provision of this Agreement is determined by a court of competent
jurisdiction to be illegal or unenforceable, said provision shall be deemed to be severed and
deleted and neither such provision, its severance nor deletion, shall affect the validity of the
remaining provisions of this Agreement.
20. APPLICABLE LAW AND VENUE: This Agreement shall be construed in accordance with and be
governed by the laws of the State of California. The Parties agree that in the event of any
litigation between them or arising from or related to this Agreement, the exclusive venue of
such litigation shall be in the State of California, Superior Court of San Luis Obispo County.
21. DIRECTOR AUTHORITY/CERTIFICATION OF SIGNATORY: The San Luis Obispo County
Director of Public Works as ex officio staff to the DISTRICT, or designee, may exercise all rights
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and obligations of DISTRICT under this Agreement, unless specifically provided otherwise
herein or required by law. The parties to this Agreement acknowledge that the Board of
Supervisors delegates to the Director of Public Works the authority to execute this Agreement
and to renew/amend the Agreement by extending its term, and to sign any amendment
exchanging, deleting, or adding to the terms and conditions of this Agreement. Any
amendment made pursuant to a delegation of authority will only be effective if, prior to the
commencement of services or extension of the Agreement, the amendment is memorialized
in writing, is approved by DISTRICT Counsel, and is signed by the Director of Public Works. The
Board of Supervisors expressly delegates to the Director the authority to renew this
Agreement contingent on prior funding approval.
All signatories and parties to this Agreement warrant and represent that they have the power
and authority to enter into this Agreement in the names, titles and capacities herein stated.
IN WITNESS WHEREOF, DISTRICT and LESSOR have executed this Agreement to be effective on the
date first stated above.
SAN LUIS OBISPO COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT:
CITY OF ARROYO GRANDE
By:
Chairperson of the Board
Date:
ATTEST:
WADE HORTON
Ex-Officio Clerk of the Board of Supervisors
By:
Caren Ray Russom, Mayor
Date:
By:
Deputy Clerk
Date:
APPROVED AS TO FORM:
APPROVED AS TO FORM:
RITA L. NEAL
County Counsel
Timothy J. Carmel, City Attorney
Date:
Deputy County Counsel
Date:
L:\Utilities\2020\December\AG - 2020.10.22 Lease Agreement for Cloud Seeding Site RPS (003) PW 12-21-202_Clean (1).docx
12/22/20
Item 8.k. - Page 23
EXHIBIT A
FACILITY SITE LOCATION
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VICINTIY MAP
New Cloud Seeding Site
Arroyo Grande, CA
COUNTY OF SAN LUIS OBISPO
DEPARTMENT OF PUBLIC WORKS
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EXHIBIT B
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INSTALLATION OF CLOUD-SEEDING EQUIPMENT
APN-007-611-016
Description
For ground-based seeding of coastal storms, NAWC uses burn-in-place flares, that release
Silver Iodide. Silver Iodide molecules attract super-cooled liquid water (water that exists in a storm
system in liquid form below freezing) molecules, causing them to coalesce and form snowflakes or
hail stones. Through this process, moisture that would otherwise stay aloft is extracted from the storm
system and falls to the ground where it contributes to runoff and ground water.
Safety
The burn in place flares are housed in spark arrestors to protect nearby vegetation. In
addition, our technicians perform weed abatement as necessary to prevent the growth of tall weeds
in the surrounding area. If our systems are located in open fields, we provide enclosures to keep
animals and pedestrians away from equipment and machinery. In the case of APN-007-611-016, a
perimeter fence already exists.
Silver Iodide in the presence of daylight Silver Iodide quickly returns to elemental Silver and
Iodine. Iodine is a critical food supplement for various mammals, including humans. Silver is almost
completely biologically inert, and even if directly ingested would pass through the body without being
absorbed by tissue. Both Siler and Iodide quickly dissipate into the storm system and are thoroughly
dispersed. No significant concentrations of either compound will remain in the immediate areas
surrounding the installations.
Equipment
The equipment to be installed consists of 2 primary masts that house the burn-in-place flares,
one mast that holds the solar panel and coms equipment and a web camera for monitoring
equipment (detailed pictures of the equipment are included below). The 3 masts are supported by
aluminum bases that are buried in the ground and encased in poured concrete. These bases extend
about 2-feet above grade. If necessary, the three masts can be removed at the end of each storm
season and re-installed prior to the next season, reducing the equipment footprint during the summer
months. This would, however, incur some additional expense to the County of San Luis Obispo if
required. The web camera is mounted to a small pole buried 1-2 feet in the ground, and sometimes
incased in a small amount of concrete. This camera serves both a security and operational function
as it allows us to monitor the flares as they burn, during a storm system.
Installation and maintenance
Installation is minimally invasive and generally requires two days of access to the facility. On
the first day, holes are dug and concrete is poured (mixed by hand on-site). The concrete is allowed
24-48hrs to cure, at which point the masts are dropped and locked into their bases.
Periodically throughout the season flares will be replaced. Typically, this happens once every
2-5 storms, generally 1 or 2 times per month. This takes roughly an hour to complete. Some of our
partners provide us with gate keys to access the site for regular maintenance, others require a
member of the partnering utility to be onsite during these maintenance intervals, we leave that
decision up to you.
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EXHIBIT B
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Figure 1. Proposed location of the installation
Figure 2. Detailed view of the proposed location of the installation
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EXHIBIT B
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Figure 3. Equipment with labels
Figure 4. Above grade measurements of equipment
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EXHIBIT B
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Figure 5. Below grade representation
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EXHIBIT C
INSURANCE REQUIREMENTS
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1. DISTRICT’s Insurance. During the Term of this Agreement and any extension
thereof, DISTRICT shall at all times maintain in effect the following policies of insurance:
(a) Comprehensive General Liability Insurance for the Facility Site in a combined
coverage for bodily injury and property damage in an amount not less than Two Million Dollars
($2,000,000). DISTRICT shall name LESSOR as an additional insured under such policy;
(b) During any period of construction of any improvements by DISTRICT on the
Facility Site, Builder's Risk Property Insurance in a form mutually acceptable to DISTRICT and
LESSOR; and
(c) Upon completion of any improvements by DISTRICT on the Facility Site, a
policy of all risk property insurance insuring the DISTRICT improvements in an amount at least
equal to the replacement cost thereof as reasonably approved by LESSOR.
Such coverages shall be from such companies and on such other terms and
conditions as DISTRICT from time to time may reasonably determine. At DISTRICT's option, such
insurance coverage may include the risks of earthquake, flood damage or other perils; business
income (rental loss) and extra expense coverage; and loss payee endorsements in favor of any
Leasehold Mortgagee.
2. LESSOR's Insurance. During the term of this Agreement and any extension thereof,
LESSOR shall at all times maintain in effect the following policies of insurance:
(a) A policy of all risk property insurance insuring the existing improvements on
the Facility Site in an amount at least equal to the replacement cost thereof as reasonably
approved by DISTRICT, provided that (i) LESSOR shall not be responsible for such insurance from
and after the effective date of this Agreement (which coverage shall then be DISTRICT's obligation);
and
(b) Comprehensive General Liability Insurance for the Property in a combined
coverage for bodily injury and property damage in an amount not less than Two Million Dollars
($2,000,000). LESSOR shall name DISTRICT as an additional insured under such policy; and
Such coverages shall be from such companies and on such other terms and
conditions as LESSOR from time to time may reasonably determine. At LESSOR's option, such
insurance coverage may include the risks of earthquake, flood damage or other perils; business
income (rental loss) and extra expense coverage; and loss payee endorsements in favor of the
holders of any mortgages or deeds of trust encumbering the interest of LESSOR in any existing
improvements on the Facility Site or underlying lessors of all or part of any existing improvements
on the Facility Site.
From and after the effective date of this Agreement Date, DISTRICT shall be
responsible to maintain and pay for all insurance described in this Section 2.
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EXHIBIT C
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3. Policy Standards. All policies of insurance to be provided hereunder shall be written
by companies of nationally recognized financial standing and which are legally qualified to issue
such insurance and have a Best Services rating of at least A. Each policy of insurance held by
LESSOR and DISTRICT shall contain reasonable deductibles and shall (i) name the other as an
additional insured; (ii) be non-contributing with, and shall apply only as primary and not excess
to, any other insurance available to the insureds; and (iii) provide that it shall not be cancelled or
amended or its coverage reduced except upon thirty (30) days' prior written notice by certified or
registered mail to each of the insureds. LESSOR and DISTRICT shall not obtain or carry separate
insurance concurrent in form or contributing, in the event of loss, with that required by this Section
unless the other is an additional insured therein. LESSOR or DISTRICT, as applicable, shall
immediately notify the other whenever any such separate insurance is obtained and shall deliver
to the other certificates evidencing the same. Any insurance required hereunder may be provided
under blanket policies provided that the coverage afforded shall not be reduced or diminished by
reason of the use of a blanket policy.
4. Protection of Proceeds. Every policy referred to herein shall provide that it shall
not be invalidated by any act or neglect of LESSOR or DISTRICT, by any termination of this
Agreement, other than the expiration of the Agreement as set forth herein, or by change in title to
the Property.
5. Certificates of Insurers. LESSOR and DISTRICT shall each deliver to the
other certificates of insurers evidencing the existence of all insurance which is required to be
maintained by LESSOR and DISTRICT, respectively, hereunder. Delivery shall be made (i) promptly
after the effective date of this Agreement and (ii) no later than fifteen (15) days prior to the
expiration of any insurance.
6. Waiver of Subrogation. LESSOR and DISTRICT intend that their respective property
loss risks shall be borne by reasonable insurance carriers to the extent above provided, and
LESSOR and DISTRICT hereby agree to look solely to, and seek recovery only from, such insurance
carriers in the event of a property loss to the extent that such coverage is agreed to be provided
hereunder. The parties each hereby waive all rights and claims against each other for such losses,
and waive all rights of subrogation of such insurers, provided such waiver of subrogation shall not
affect the right to the insured to recover thereunder. The insurance policies to be carried by LESSOR
and DISTRICT hereunder shall be endorsed such that the waiver of subrogation shall not affect the
right of the insured to recover thereunder, so long as no material additional premium is charged
therefor.
Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall
provide coverage at least as broad as specified for the underlying coverages. Any such coverage
provided under an umbrella liability policy shall include a drop down provision providing primary
coverage above a maximum $25,000 self-insured retention for liability not covered by primary but
covered by the umbrella. Coverage shall be provided on a “pay on behalf” basis, with defense costs
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EXHIBIT C
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payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time
insured’s liability is determined, not requiring actual payment by the insured first. There shall be
no cross-liability exclusion precluding coverage for claims or suits by one insured against another.
Coverage shall be applicable to LESSOR for injury to employees of DISTRICT, subcontractors or
others involved in the cloud seeing operations. The scope of coverage provided is subject to
approval of LESSOR following receipt of proof of insurance as required herein. Limits are subject
to review but in no event less than $1,000,000 per occurrence.
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