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Home My WebLink AboutResolution 2016-017 Approving Lease Amendment No. 2 with CalPortlandMARANA RESOLUTION NO. 2016-017 RELATING TO UTILITIES APPROVING AND AUTHORIZING THE MAYOR TO SIGN -1 "LEASE AMENDMENT NO. 2" WITH CALPORTLAND COMPANY F OR THE RII-ILITO VISTA WATER RECLAMATION FACILITY WHEREAS the Town of Marana ac the ri and obli of the Rillito Vista Water Reclamation Facilit (WRF) as part of its June 2013 wastewater ac from Pima Count and WHEREAS the Rillito Vista WRF is located on land owned b CalPortland Compan pursuant to a 2005 lease entered into b Pima Count and assi to Marana as part of the wastewater ac and WHEREAS Lease Amendment No. I was executed in 201 to set the rental rate for the first five- extension of the lease and WHEREAS Lease Amendment No. 2 retroactivel extends the lease for another five y ears, sli expands the lease area to accommodate connection of the Rillito Vista WRF to the Town's new Tan Downtown Sewer Conve S project, and provides compensation for the lease amendment and extension and WHEREAS the Ma and Council of the Town of Marana find that this resolution is in the best interests of the Town of Marana and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that "Lease Amendment No. 2" with CalPortland Compan for the Rillito Vista Water Reclamation Facilit a cop of which is attached to this resolution as Exhibit A is hereb approved, the Ma is authorized to execute it for and on behalf of the Town of Marana, and the Town Mana and staff are hereb directed and authorized to undertake all other and further tasks re or beneficial to carr out the terms, obli conditions and objectives of this resolution and the lease as amended. PASSED AND ADOPTED b the Ma and Council of the Town f Marana, Arizona, this 16th da of Februar 2016. Ili' N Town 0�1 A N 7 Ma d Honea ATTEST: cel C Ironson, Town Clerk APPROVFeD AS TD FO Fr ,aftk Cat'id Town 4Korne Marana ReSOILItion No. 2016-017 2/4/2016 3:27 PM FJC F. ANN RODRIGUEZ, RECORDER iiui mil iu� iiiii iiH iiii 20160780 Recorded By: LW DEPUTY RECORDER 4 41 4�a Cl �d SMARA Z TOWN OF MARANA PICKUP $.00 a PICK UP WARAN A aN CLERK 520 - 382 -1999 i u�u lull �u iuu lull iisi uiiuiui SEQUENCE: iiui mil iu� iiiii iiH iiii 20160780 NO. PAGES: 4 AL EASE 03/18/3016 PICK UP AMOUNT axm. $.00 LEASE AMENDMENT NUMBER 2 This LEASE AMENDMENT NUMBER 2 (this "Amendment ") is entered into as of October 1, 2015, by and between CALPORTLAND COMPANY, a California corporation, successor by merger to Arizona Portland Cement Company, an Arizona corporation ( "CalPortland" or "Landlord "); and the TowN OF MAR.ANA, an Arizona municipal corporation, ( "Marana" or "Lessee "). CalPortland and Marana are sometimes collectively referred to as the "Parties," either of whom is sometimes individually referred to as a "Party." RE CITALS A. CalPortland and Pima County entered into a "Lease" dated June 23, 2005 (the "Original Lease "), for Pima County's lease of 5.88 acres of land for public sewage disposal facilities commonly referred to as the "Rillito Vista WRF." B. The lease term of the Original Lease was five years, beginning July 1, 2005 and ending June 30, 2010; with the option to extend the term for two additional five -year periods. C. The annual rent payable under the Original Lease was $1,573.22, with CP1 -U Consumer Price Index adjustments calculated for each five -year extension period. D. CalPortland and Pima County entered into "Lease Amendment No. 1" on July 9, 2010, setting the annual rent payable for the first five-year extension period at $1,608. E. On June 24, 2013, CalPortland, Marana, and Pima County signed an "Assignment of Lease with Landlord's Consent," assigning the lease to Marana in connection with the settlement of then - pending litigation between Pima County and Marana. F. Marana timely paid the annual lease payment that was due on July 1, 2013. G. The first five -year extension period of the lease ended on June 30, 2015, and Marana failed to notify CalPortland that Marana intended to exercise its option to extend the lease for the second five -year extension period. H. By operation of paragraph 4(c) of the Original Lease, the adjusted annual rent for the second five -year extension period is $1,745 prior to the modifications set forth in this Amendment. I. Marana made the 2014 annual lease payment in August 2015 and the 2015 annual lease payment in October 2015. J. Marana is in the final design stage of constructing a sewer line west of the Rillito Vista WRF and desires to modify the Original Lease to accommodate connection of the Rillito Vista WRF to the new sewer line (the "Proposed New Line "). 7112773_4 i AGREEMENT Now, THEREFORE, CalPortland and Marana do hereby mutually agree as follows: 1. Retroactive extension of lease. The Original Lease is retroactively extended for the second five -year extension period, beginning July 1, 2015 and terminating on June 30, 2020 unless sooner terminated pursuant to the provisions of the Original Lease as modified to and including this Amendment. 2. Acceptance of late payments. CalPortland accepts Marana's late payments for the July 1, 2014 and July 1, 2015 payments, without waiving its right to strict performance of payment requirements and all other terms of the Original Lease, as modified to and including this Amendment, in the future. 3. Expansion of the "premises. " To acconnnnodate connection of the Rillito Vista WRF to Marana's Proposed New Line, paragraph I of the Original Lease is modified effective October 1, 2015, making the "Premises" the following described parcel: A portion of the Southwest Quarter of the Southeast Quarter of Section 6, Township 12 South, Range 12 East, G &SRB &M, Pima County, Arizona, being more particularly described as follows: COMMENCING at the Southwest corner of Rillito Vista Subdivision as recorded in the office of the County Recorder of Pima County, Arizona, at Book 21 of Maps and Plats, Page 76; THENCE south 00 17' 43" East, 92.00 feet; THENCE North 89° 48'10" East, 72.50 feet to the TRUE POINT OF BEGINNING; THENCE South 00 17' 43" East, 55.00 feet; THENCE South 89° 48' West, 72.50 feet; THENCE South 00 17' 43" East, 50.00 feet; THENCE North 89° 48'10" East, 72.50 feet; THENCE South 00° 17' 43" East, 265.00 feet; THENCE North 89° 48'10" East, 6_'35.00 feet; THENCE North 00 17' 43" West, 412.00 feet; THENCE South 89 48'10" West, 504.50 feet; THENCE South 00 17' 43" East, 42.00 feet; THENCE South 89° 48'10" West, 130.50 feet to the TRUE POINT OF BEGINNING. The above described parcel contains 5.96 acres. Notwithstanding the foregoing provisions of this paragraph 3 to the contrary, if the Rillito Vista WRF is not connected to the Proposed New Line or the Proposed New Line is not put in service on or before the date two (2) years following the date of CalPortland's 71127734 -2- execution of this Amendment, the provisions of this paragraph 3 shall be of no further force or effect and thereafter the Premises shall be as described in paragraph 1 of the original Lease. 4. Consideration. a. Due following execution. Ma.rana shall pay CalPortland $300 within five (S) business days after the mutual execution and delivery of this Agreement, in consideration of this Amendment, including compensation for late payments and consideration for the expanded Premises for October 2015 through June 2016. b. .Modified annual rent. For the remaining years of the second five-year extension period, Marana shall pay CalPortland annual rent of $1,770, payable on or before July 1 of each year. 5. Nuisance. The first sentence of paragraph 6 ( "Nuisance ") of the Original Lease is hereby modified to add the words "and conveyance" after the phrase "sewage disposal "; so that the first sentence reads: "It is understood that Lessee intends to maintain sewage disposal and conveyance facilities on the Premises." The remainder of paragraph 6 of the original Lease is unchanged. 6. .mold harmless. The words "intentionally wrongful or negligent" are hereby deleted from the first sentence of paragraph 9 ("Hold Harmless ") of the Original Lease, so that the first sentence reads: `Lessee shall indemnify, defend at its cost and hold Owner harmless from and against any and all suits, actions, legal or administrative proceedings, claims, demands or damages of any kind or nature which arise out of any act or omission of Lessee in its operations upon or maintenance of the Premises." 7. Effect on other provisions. All other terms and provisions of the Original Lease, as previously amended, shall continue in full force and effect and are incorporated by reference in this Amendment. {Signatures appear on following page} 71127734 IN WITNESS WHEREOF, the Parties have executed th Amendment as of the date first set forth above. "CalPortland" or "Landlord" CALPORTLAND COMPANY Bar Its: -. Date: ,3- 7 —/&V STATE OF . 4 Count of "Marana" or "Lessee ": TOWN OF MARANA Ed Honea, yor Date: a� /��?�/ 4 ,ATTEST: 6 /J _ ocelynP 1 ronson,, Town Clerk day of , .201 of of the corporation. The for oing instrume wa acknowledged before me this by the � CALPORTLAND COMPANY California corporation, on beh (Seal) / DEBORAH L. GALL �- Commission # 1982714 z Notary Public - California z Los Angeles County ion � My Comm. Expires Jul 19, 2016 - - -t or- Notary Public 71127734 -4- APPROVED AS TO FORM: