HomeMy WebLinkAboutReso 92-363 - Approve & Authorize CM to execute an agreement between the COR & P&M Cedar Products, Inc. for 60 days allow P&M to clean up Log Decking Fac at Redding Power Plant i
I
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT BETWEEN THE CITY OF REDDING AND P&M CEDAR PRODUCTS,
INC. FOR 60 DAYS TO ALLOW P & M CEDAR PRODUCTS TO CLEAN UP A
LOG DECKING FACILITY AT THE REDDING POWER PLANT SITE FOR THE
PERIOD AUGUST 24 THROUGH OCTOBER 22, 1992.
WHEREAS, P&M Cedar Products, Inc. has maintained a log decking
facility at the Redding Power Plant site under an Agreement which
' will expire August 23 , 1992; and
WHEREAS, P&M Cedar Products, Inc. wishes to enter into a new
agreement for a 60-day extension of the contract with the
understanding that no new logs are to be brought on to the site.
P&M has requested the extension to allow them time to complete the
necessary cleanup. The payment by P&M Cedar to the City for the
60-day extension will be $3,600.
WHEREAS, the Electric Department has concluded that it is in
the best interests of the City to receive revenue pursuant to such
an agreement, and an Agreement is presented herewith for Council' s
consideration;
NOW, T LEFORE, IT IS HEREBY RESOLVED that the City Council of
the City of Redding hereby approves the Agreement between the City
of Redding and P&M Cedar Products, Inc. for the period August 24
through October 22, 1992, a true copy of which is attached hereto
and incorporated herein by reference.
W
City g FURTHER RESOLVED that the Cit Manager of the Cit of
BE IT y
Redding is hereby authorized and directed to sign said Agreement on
behalf of the City of Redding; and that the City Clerk is hereby
authorized and directed to attest the signature of the City Manager
and to impress the official seal of the City of Redding on said
Agreement when appropriate.
I HEREBY CERTIFY that the foregoing Resolution was introduced
and read at a regular meeting of the City Council of the City of
Redding on the 18th day of August, 1992, and was duly adopted at
said meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson, Arness, Dahl, Kehoe & Moss
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
CHARLIE—MOSS, M or
City of Redding
ATTEST:
CONNIE STROHMAYER, City Cletk
FORM APPROVED:
RA*DALL A. HA ity Attorney
AGREEMENT
3 THIS AGREEMENT (Agreement) is made and entered into as of
4 this 24th day of August 1.992 , by and between THE. CITY OF REDDING
5 ( City) and P&M, CEDAR PRODUCTS, INC. (P&M) , a California-
corporation.
7 This Agreement is made with reference to the following facts
8 and objectives:
9 1 . The City is the owner of the. Redding Power. Plant and
10 surrounding land and facilities (Site) as shown on,. Exh.ibit A
11
attached hereto and mad.c. a part hereof. by this reference; and
12 2. P&M desires to license the -use of a designated portion
13 ( land and scale--collectively hereinafter referred to as
14 "Premises" , such Premises more particularly designated in and. on
15 Exhibit A) of the Site from the City pursuant to the provisions
16 of this Agreement, for the purposes of cleaning up the. premises
17 after maintaining a log decking facility and conducting certain
18 other activities incidental thereto at and upon the Premises.
19 NOW, THEREFORE, in consideration. of the foregoing, and the
20 covenants and agreements set forth below, the parties hereto
21 mutually agree as follows:
22
23 ARTICLE. 1
24 GRANT OF LICENSE
25 1 . 1 The City hereby grants to P&M a revocable license to
26 use the Premises for the purposes of completing the necessary
1 cleanup after maintaining a log decking facility and uses
2 incidental thereto, and P&M hereby undertakes to use the Premises
for said purpose.
4
5 ARTICLE 2
i
6 TERM
7 2 . 1 The term of this Agreement shall be for a sixty ( 60)
8 day period, commencing on August 24, 1992 and terminating on
9 October 22, 1992 .
�1.U
11 ARTICLE 3
1.2 LICENSE FEE
.1.3 3 . 1 P&M agrees to pay to the City the sum of $3 , 600, said
1.4 sum to be payable not later than August 31, 1992.
!.5 The sum set forth above is for the use of the Premises.
16
17 ARTICLE 4
18 USE OF PREMISES
19 4 . 1 P&M' s rights regarding the use of the Premises are
2U semi-exclusive and are limited to its use as a dry (no
21 sprinkling) log decking facility and the performance of
22 activities incidental thereto, and for no other use, unless prior
23 written consent from the City has been obtained therefor, and
24 further, that at all times during the Term hereof P&M shall:
25 ( a) Comply with all laws, regulations, and codes
26 having effect upon the Site or the use thereof by P&M,. and
FR\222 2 fdr: 8/11/92
(b) Conduct its activities on the Premises between the
hours of 8 :00 A.M. , and 5 : 00 P.M. , Monday through Friday (except
holidays) . If T-'1&M desires to conduct activities outside the
4 aforementioned hours, it. shall be allowed to do so only after
5 obtaining permission from the City. If such permission is
6 granted. by the City, in consideration of. the cost to the City to
7 ar,conunodate. P&Mls activities, P&M shall. reimburse the City at a
8 rate of $20/hour for each hour P&M' s activities are undertaken
9 outside the aforementioned hours, and
10 ( c) Conduct its activities at the Site in a manner
ii which shall. not injure or damage the Site nor constitute. ei.ther. a
12 nuisance or a waste of the Site, and
13 (d) Conduct its activities at the Site in a manner
14 that in no way hinders the use of the Site by the City and
15 further reasonably accommodates. the use of. the Site. by the City
16 and such third parties as the City may have granted the right to
17 use .
118 4 . 2 P&M further agrees that its right to use the Site does
10.9 riot include the right to alter, change, or modify the Site except
20 as reasonably necessary for P&M' s permitted use of the Site, and
- then any such alteration, change,- or modification shall. be made
22 only upon. prior written consent of the City and P&M agrees that
23 upon termination of this Agreement it. will remove. any such
?4 alteration, change, or modification. and restore any portion. oIr'
25 the Site affected by P&M to the same condition as they were prior
26 to the beginning of this Agreement.. For all P&M activities at
FR\222 3 fdr: 8/11./92.
1. the Site, P&M shall be solely responsible for securing any
2 required permits, and shall be liable for P&M' s failure to obtain
appropriate permits. To the extent P&M activities violate- the
4 terms of any existing permits, P&M shall remedy therefor.
5 4 . 3 Notwithstanding Article 1.1 hereof, the City expressly
6 reserves to itself the right to use the Site ( including the
'7
Premises) , together with any alteration, change, or modification.
8 thereto that may be made by -P&M., during the Term. he.r.eof,, and to
9 grant the right to use to third. parties during such Term-, but
1.0 agrees that such use by itself or any such third parties. shall
it not unreasonably interfere with P&M' s permitted. semi-exclusive
12 use of the Premises.
13 4 . 4 P&M shall have the right, pursuant to this Agreement,
14 of ingress and egress to and from the log decking facility over
15 and across certain roads of -the City as designated. on. Exhibit A
1.6 attached hereto.
17
ARTICLE 5
19 MAINTENANCE AND REPAIR
20 5 . 1 Prior to the execution of this Agreement., P&M has
21 inspected. the Premises and. agrees that the same are in- good
22 condition and appropriate and adequate for its permitted. use and
23 that the City is not responsible in any way therefor, including
24 performing any maintenance or making any repairs..
25 5 . 2 During the Term hereof, P&M agrees to maintain and
26 repair the. Premises at its sole cost and expense, including,
FR\2 22 4 fdr: 8/11/92
without limitation maintenance and repair of all structural
parts, foundations , and associated electrical and mechanical
systems .
4 5 . 3 The maintenance and repair, called for under 5 . 2 shall
5 be performed by P&M at regular intervals in a manner reasonably
6 satisfactory to the City. P&M shal,l. make such. repairs and.
77 perform such maintenance to the Premises as is necessary to
8 maintain the Premises in a safe and operating conditi.on..
9 5 . 4 If 'the City shall use the Premises during the Term
10 hereof , the City agrees to bear a portion of the maint:enan.ce cost
1.1 or a share of repair costs, directly attributable to the City' s
.12 use, which portion or share shall be tied_ tothe percentage.
13 relationship which the City' s use of the Premises bears to the
14 total use of the Premises by P&M and the City. The City agrees
15 to include an identical requirement in any grant of the right to
16 use the Premises. which may be made to a third party by the City.
17 5 . 5 P&M shall surrender the Premises; at the expiration or
18 termination of this Agreement in as good condition as the same
19 was at the commencement of this Agreement, reasonable wear and
20 tear excepted. P&M agrees that it will not permit and. wil.l.
21 promptly remove any lien., charge,. or encumbrance of: any kind.
22 which may be -imposed or placed on -11-he. Premises as a result of any
23 action or inaction of. P&M or its employees, agents, contractors.,
24 subcontractors, or suppliers.
25 5 . 6 if repairs to the Premises are occasioned by damages or
26 injuries to the Premises caused. by an accident or the. intention
F \ 222
5 1--dr: 8/11/92
of one of the parties, that party shall bear all of the costs of
2 such repairs.
5. 7 Any improvements, alterations, or modifications to the
4 Premises made by P&M hereunder and any property of P&M remaining
5 on the Premises upon the expiration or termination of this
6 Agreement, is deemed. abandoned by P&M and may be used by the City
7 as its own or may be removed. and disposed of in. any manner deemed
8 appropriate by the City, including but not limited to a private
Qsalc wit-hout. notice, and without any obligation to account for. or.
10 to pay any amount over to P&M.
11
12 ARTICLE 6
TERMINATION
14 6 . 1 This Agreement, will terminate at midnight October 22,
i5 1992 .
16
17 ARTICLE 7
18 HOLD HARYMESS
19 7 . 1 -P&M agrees at all times during. the Term hereof that it
20 will , at its sole cost and expense, defend, indemnify, hold
21 harmless, and provide all. legal defense. and related services to
22 the City, its officers, agents, employees, and/or subsidiaries,
23 for and against any and all claims, expenses, demands, causes of.
24 action, liability, loss or injury, regardless of. their nature- or.
25 character, in any manner whatsoever arising from P&M' s exercise
FR\222 5 fdr: 8/11/92
of the license to use the Premises granted hereunder, including
but not limited to the condition of the Premises.
7 . 2 P&M shall be free of the requirements of' 7 . 1 if after
4 trial, or through other process mutually agreed. upon between the.
5 parties, it is determined that the proximate cause of. such claim,
6 expense, demand, cause of action, liability, loss, or injury was
the sole negligence, or was the result of the intentional..
8 misconduct, of the City, or its agents, employees, assigns, or
9 some third party unrelated to P&M., but to which the. City has
10
granted the right to use the Premises.
11 7 . 3 P&M' s obligations pursuant to 7 . 1 shall survive the
12 termination or expiration of this Agreement.
1.3
14 ARTICLE 8
15 INSURANCE
16 8. 1 During the Terni hereof, at its sol.e. cost and expense,.
17 P&M shall provide the following types of insurance, in the
18 amounts specified, the form provided, and covering the Premises,
19 as f ol.lows:
20 ( a) Broad form, comprehensive, public liability
21 insurance, of limits not less than $1,000, 000 per person and,
22 $1 , 000, 000 per occurrence, insuring P&M and. the City, its.
23 officers, agents, and employees, against any and all liability
24 with respect to the Premises, or arising out of the maintenance,
25 use, or misuse thereof; and property damage insurance wi.th. a
26 limit of not less than $1, 000, 000 for each accident.
FR\222 7 fdr: 8/11/92
1 8 . 2 All policies of insurance to be provided by P&M shall
2 contain a provision naming the City, its officers, agents, and
3 employees as an additional insured, and insured shall
4 nevertheless be entitled to recover undersaid policies. for: any
5 loss, in-jury, or damage to the City, its agents, employees, or
6 assigns, by reason of the negligence of P&M.
7 8 > 3 At the time of. execution of this Agreement., P&M shall..
8 deliver to the City' s Risk. Manager policies evidencing the
9 insurance. procured- by P&M in compliance withthisAxticle. 8 , or
deliver in lieu thereof., certificates of coverage from the
insurance company or companies writing the policy or policies of
12 insurance., which certificates shall, among. other. things.,
13 designate the company writing the same.,. th.e. number, the amount.,
14 and the provisions thereof . At any time during the Term hereof,
15 upon the City' s written request., duplicate copies of such
16 certificates for policies. of insurance shall- be delivered. to the
17 City.
18 8 . 4 All insurance policies provided in compliance with. this
19
Article 8 shall contain a provision that such policy may not be
20 canceled, changed, or terminated without thirty ( 30) days prior
21 written notice to the City from the insurer..
22
23 ARTICLE 9
24 ASSIGNMENT AND SUBLICENSE
25 9 . 1 P&M shall not assign, sublicense, mortgage, or
26 hypothecate, by operation. of law or otherwise, the license for
FR\222 8 fdr: 8/11/92
use granted hereunder, in whole or in part, without the prior
written consent of the City.
3 9 ,, 2 Any purported or attempted. assignment., sublicense,
4 mortgage, or hypothecation of the license granted hereunder by
P&M shall cause the immediate termination of this Agreement.
9 . 3 The City may assign this license to any successor in
7 interest of the City by notification in., writing to P&M of. such
R assiciriment.
9
ID ARTICLE 10
11 RESERVATION OF USE
12 10 .1 Notwithstanding Article 1 . 1 hereof., the City reserves
' he
-3 the right to use the Promises and. to grant the. of +11.
14 Premises to other persons or entities. The rights granted to P&M
15 hereunder are in this respect semi.-.exclusive, and. are subject. to
1.6 the City' s reservation; however, such reservation and- granting of
17 use by the City shall. be in compliance with Article 4 . 3 hereof.
18
19
ARTICLE 11.
-)0
NOTICES
21 11 . 1 Any notices or other communication. required. or
22 permitted hereunder shall be sufficiently given. if sent by
23 registered mail, postage prepaid, addressed as follows:
24 To The City: City of Redding
25 760 Parkview Avenue
26 Redding, California 96001-3396
FR\222 9 fdr: 8/111/92
Attention: Sam Lindley
2 Electric Utility Director
3
4 To P&M: P&M Cedar Products, inc.
5 P.O. Box 7349
6 Stockton, CA 95207
7 Attention: Larry Hood, President
8 or to such other addresses as shall be furnished in writing by
9 either party to the other party. Any such notice or
10 communication. shall. be deemed. to have been given as of the date
11 received.
1-2
ARTICLE 12
1 A
TIME OF ESSENCE
15 1.2 . 1 Time i.s of the essenceinthis Agreement and all its
1.5 particulars.
1.7
18 ARTICLE 13
19 RECORDING
20 1.3 . 1 Neither party hereto shall record. this. Agrcemen.t
21 without the written consent of the other..
23 ARTICLE 14
24 ATTORNEY' S FEES
25 1,4 1 Should legal action. or other proceeding. be brought for
26 the enforcement of this Agreement or any term hereof, due to any
FR\2 2 2 10
fdr: 8/1.1/92
1 alleged di.spute., breach, default, or misrepresentation in
2 connection. with any provisions herein contained, the prevailing
3 party shall be entitled. to recover reasonable attorney' s fees and
4 other costa incurred in any such action or proceedings,. in
5 addition to such other relief as may be granted.
6
7 ARTICLE. 15
8 ENTIRE AGREEMENT; MODIFICATION; WAIVER
9 15 . 1 This Agreement., and its Exhibits., constitutes the
C)
entire Agreement between- the. parties. hereto and. supersedes. all..
ii previous oral or written agreements, representations, and
12 understandings between the parties. No supplement, modifi,cati.on,
-- or amendment to this Agreement shall- be. binding unlessexecuted.
14 in writing by all parties. No waiver of any provision of this
15 Agreement sha.1l. be deemed. a waiver of any other provision,
6 whether or not similar, nor shallL any waiver constitute a.
17 continuing waiver. No waiver shall be binding unless executed- in
18 writing by the party making the waiver.
20 ARTICLE 16
21 COUNTERPART S: CORPORATE AUTHORITY
22 16. 1 'This Agreement may be executed in any number of
23 counterparts and each such instrument executed in counterpart
24 shall be deemed to be an original instrument..
25 16. 2 P&M warrants and represents that the execution. of this
26 Agreement is duly authorized by its Board of Directors.
FR\222 11 fdr: 8/111/92
1 ARTICLE 17
2 TAXES
3 17 . 1 P&M agrees to pay promptly when due any and all. taxes
4 assessed against its personal property and any possessory
5 interest tax levied by reason of its occupancy and use of the
6 Site.
7
8 IN WITNESS WHEREOF, the parties have executed this Agreement
9 on the day and year first written above.
10
11
12 THE CITY OF REDDING P&M CEDAR PRODUCTS, INC.
14
15
Bir BY
is ROBERT M. CHRISTOFFERSON DAVID WATERS
-19
City Manager Vice-President, Manufacturing
20
21
22 Date: Date:
23
FR.\222 12 fdr: 8,111/92
�• I
i
,\I
r
N
CLr�.rYr�Y����IRiYCYY ��,