HomeMy WebLinkAboutReso 92-061 - Approve & Authorize the CM to execute an agreement between COR & P&M Cedar Products, Inc for a Log Decking Facility at the Redding Power Plant Site for 02/23 to 08/23/92 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 A LOG DECKING FACILITY AT THE
REDDING POWER PLANT SITE FOR THE PERIOD FEBRUARY 23
THROUGH AUGUST 23, 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 February 22 , 1992 ; and
WHEREAS, P&M Cedar Products, Inc. wishes to enter into a new
agreement for a further six-month term, with an increase in
monthly payments from $1500 to $1800 per month; and
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, THEREFORE, 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
February 23 through August 23 , 1992, a true copy of which is
attached hereto and incorporated herein by reference.
BE IT FURTHER RESOLVED that the City Manager of the City of
Redding is hereby authorized and directed to sign said Agreement
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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 February 1992 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Carter, Fulton & Moss
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None
CHARLIE MOSS, Vice-Mayor
City of Redding
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A ST:
CONNIE STROHMAYER, Qay Clerk
FO PROVED:
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R DALL A. HAYS, City Attorney
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1 AGREEMENT
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3 THIS AGREEMENT (Agreement) is made and entered into as of
1 4 this 23rd day of February 1992 , by and between THE CITY OF
5 REDDING (City) and P&M CEDAR PRODUCTS, INC. (P&M) , a California
6 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
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surrounding land and facilities (Site) as shown on Exhibit A
11 attached hereto and made a part hereof by this reference; and
12 2 . P&M desires to license the use of a designated portion
13 (land, scale, and trailer loader--collectively hereinafter
14 referred to as "Premises" , such Premises more particularly
15 designated in and on Exhibit A) of the Site from the City
16 pursuant to the provisions of this Agreement, for the purposes of
17 maintaining a log decking facility and conducting certain other
18 activities incidental thereto at and upon the Premises; and
19 3 . P&M has examined the Premises and is fully aware of its
20 condition and accepts it as is as suitable for P&M's intended
21 use.
22 NOW, THEREFORE, in consideration of the foregoing, and the
23 covenants and agreements set forth below, the parties hereto
24 mutually agree as follows:
25
26 ARTICLE 1
27 GRANT OF LICENSE
28 1. 1 The City hereby grants to P&M a revocable license to
29 use the Premises for the purposes of maintaining a log decking
30 facility and uses incidental thereto, and P&M hereby undertakes
31 to use the Premises for said purposes.
32
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1 ARTICLE 2
2 TERM
i 3 2 . 1 The term of this Agreement shall be- for a six (6) month
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4 period, commencing on February 23 , 1992 and terminating on
5 August 23 , 1992 unless earlier terminated pursuant to the terms
6 hereof by one of the parties hereto.
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8 ARTICLE 3
9 LICENSE FEE
10 3 . 1 P&M agrees to pay to the City the sum of $1, 800r er
11 month, said sum to be payable in advance on the 15th day of each
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12 month preceding the month during which P&M will use the Premises,
13 beginning February 23 , 1992 and continuing monthly during the
14 term of this Agreement, except the first month' s payment which is
15 due and payable on execution of this Agreement.
16 The sum set forth above shall include the fee for the use of
17 the Premises, together with the fee to the City for the use by
18 P&M of electric utilities required for the Trailer/Loader.
19
20 ARTICLE 4
21 USE OF PREMISES
22 4 . 1 P&M' s rights regarding the use of the Premises are
23 semi-exclusive and are limited to its use as a dry (no
24 sprinkling) log decking facility and the performance of
25 activities incidental thereto, and for no other use, unless prior
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26 written -consent from the City has been obtained therefor, and
i 27 further, that at all times during the Term hereof P&M shall:
,i 28 (a) Comply with all laws, regulations, and codes
29 having effect upon the Site or the use thereof by P&M, and
30 (b) Conduct its activities on the Premises between the
31 hours of 8: 00 A.M. , and 5 : 00 P.M. , Monday through Friday (except
32 holidays) . If P&M desires r to conduct activities outside the
33 aforementioned hours, it shall be allowed to do so only after
34 obtaining permission from the City. If such permission is
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35 granted by the City, in consideration of the cost to the City to
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1 accommodate P&M' s activities, P&M shall reimburse the City at a
2 rate of $20/hour for each hour P&M' s activities are undertaken
3 outside the aforementioned hours, and
4 (c) Conduct its activities at the Site in a manner
5 which shall not injure or damage the Site nor constitute either a
6 nuisance or a waste of the Site, and
7 (d) Conduct its activities at the Site in a manner
ii 8 that in no way hinders the use of the Site by the City and
9 further reasonably accommodates the use of the Site by the City
10 and such third parties as the City may have granted the right to
11 use.
12 (e) Disconnect and stack (at a Site location
13 acceptable to the City) all material and equipment associated
14 with the existing deck sprinkling system at the Site.
15 4 .2 P&M further agrees that its right to use the Site does
16 not include the right to alter, change, or modify the Site except
17 as reasonably necessary for P&M's permitted use of the Site, and
18 then any such alteration, change, or modification shall be made
19 only upon prior written consent of the City and P&M agrees that
20 upon termination of this Agreement it will remove any such
21 alteration, change, or modification and restore any portion of
22 the Site affected by P&M to the same condition as they were prior
23 to the beginning of this Agreement. For all P&M activities at
24 the Site, P&M shall be solely responsible for securing any
25 required permits, and shall be liable for P&M's failure to obtain
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26 appropriate permits. To the extent P&M activities violate the
27 terms of any existing permits, P&M shall remedy therefor.
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28 4 .3 Notwithstanding Article 1. 1 hereof, the City expressly
29 reserves to itself the right to use the Site (including the
30 Premises) , together with any alteration, change, or modification
31 thereto that may be made by P&M, during the Term hereof, and to
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32 grant the right to use to third parties during such Term, but
33 agrees that such use b itself or an such third
g Y Y parties shall
34 not unreasonably interfere with P&M's permitted semi-exclusive
35 use of the Premises.
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1 4 .4 P&M shall have the right, pursuant to this Agreement,
2 of ingress and egress to and from the log decking facility over
3 and across certain roads of the City as designated on Exhibit A
4 attached hereto.
5
6 ARTICLE 5
7 MAINTENANCE AND REPAIR
8 5. 1 Prior to the execution of this Agreement, P&M has
9 inspected the Premises and agrees that the same are in good
10 condition and appropriate and adequate for its permitted use and
11 that the City is not responsible in any way therefor, including
12 performing any maintenance or making any repairs.
it 13 5.2 During the Term hereof, P&M agrees to maintain and
14 repair the Premises at its sole cost and expense, including,
15 without limitation, maintenance and repair of all structural
16 parts, foundations, and associated electrical and mechanical
17 systems.
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18 5.3 The maintenance and repair called for under 5.2 shall
19 be performed by P&M at regular intervals in a manner reasonably
20 satisfactory to the City. P&M shall make such repairs and
21 perform such maintenance to the Premises as is necessary to
22 maintain the Premises in a safe and or_- ..idition.
23 5.4 If the City shall use the Premi-es during the Term
24 hereof, the City agrees to bear a portion 'of the maintenance cost
25 or a share of repair costs, directly attributable to the City's
26 use, which portion or share shall be tied to the percentage
27 relationship which the City' s use of the Premises bears to the
28 total use of the Premises by P&M and the City. The City agrees
29 to include an identical requirement in any grant of the right to
30 use the Premises which may be made to a third party by the City.
31 5.5 P&M shall surrender the Premises at the expiration or
32 termination of this Agreement in as good condition as the same
33 was at the commencement of this Agreement, reasonable wear and
34 tear excepted. P&M agrees that it will not permit and will
35 promptly remove any lien, charge, or encumbrance of any kind
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1 which may be imposed or placed on the Premises as a result of any
2 action or inaction of P&M or its employees, agents, contractors,
3 subcontractors, or suppliers.
4 5.6 If repairs to the Premises are occasioned by damages or
5 injuries to the Premises caused by an accident or the intention
6 of one of the parties, that party shall bear all of the costs of
7 such repairs.
8 5.7 Any improvements, alterations, or modifications to the
9 Premises made by P&M hereunder and any property of P&M remaining
10 on the Premises upon the expiration or termination of this
11 Agreement, if not removed by P&M within fifteen (15) days after
12 such termination or expiration, is deemed abandoned by P&M and
13 may be used by the City as its own or may be removed and disposed
14 of in any manner deemed appropriate by the City, including but
15 not limited to a private sale without notice, and without any
16 obligation to account for or to pay any amount over to P&M.
17
18 ARTICLE 6
j 19 TERMINATION
20 6. 1 This Agreement may be terminated at any time by either
21 party, by the giving of ninety (90) days advanced written notice
!I 22 to the other.
23
24 ARTICLE 7
25 HOLD HARMLESS
26 7. 1 P&M agrees at all times during the Term hereof that it
27 will, at its sole cost and expense, defend, indemnify, hold
28 harmless, and provide all legal defense and related services to
'! 29 the City, its officers, agents, employees, and/or subsidiaries,
! 30 for and against any and all claims, expenses, demands, causes of
;
31 action, liability, loss or injury, regardless of their nature or
32 character, in any manner whatsoever arising from P&M's exercise
33 of the license to use the Premises granted hereunder, including
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1 7 .2 P&M shall be free of the requirements of 7. 1 if after
2 trial, or through other process mutually agreed upon between the
3 parties, it is determined that the proximate cause of such claim,
4 expense, demand, cause of action, liability, loss, or injury was
5 the sole negligence, or was the result of the intentional
6 misconduct, of the City, or its agents, employees, assigns, or
7 some third party unrelated to P&M, but to which the City has
8 granted the right to use the Premises.
9 7. 3 P&M's obligations pursuant to 7 . 1 shall survive the
10 termination or expiration of this Agreement.
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,I 12 ARTICLE 8
13 INSURANCE
;I 14 8. 1 During the Term hereof, at its sole cost and expense,
15 P&M shall provide the following types of insurance, in the
j 16 amounts specified, the form provided, and covering the Premises,
17 as follows:
18 (a) Broad form, comprehensive, public liability
19 insurance of limits not less than $1, 000, 000 per person and
20 $1, 000, 000 per occurrence, insuring P&M and the City, its
21 officers, agents, and employees, against any and all liability
'i 22 with respect to the Premises, or arising out of the maintenance,
23 use, or misuse thereof; and property damage insurance with a
24 limit of not less than $1, 000, 000 for each accident.
25 8.2 All policies of insurance to be provided by P&M shall
26 contain a provision naming the City, its officers, agents, and
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27 employees as an additional insured, and insured shall
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28 nevertheless be entitled to recover under said policies for any
j 29 loss, injury, or damage to the City, its agents, employees, or
30 assigns, by reason of the negligence of P&M.
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31 8.3 At the time of execution of this Agreement, P&M shall
32 deliver to the City' s Risk Manager policies evidencing the
33 insurance procured by P&M in compliance with this Article 8, or
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34 deliver in lieu thereof, certificates of coverage from the
35 insurance company or companies writing the
policy or policies of
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1 insurance, which certificates shall, among other things,
2 designate the company writing the same, the number, the amount,
3 and the provisions thereof. At any time during the Term hereof,
4 upon the City's written request, duplicate copies of such
5 certificates for policies of insurance shall be delivered to the
6 City.
7 8.4 All insurance policies provided in compliance with this
8 Article 8 shall contain a provision that such policy may not be
9 canceled, changed, or terminated without thirty (30) days prior
10 written notice to the City from the insurer.
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12 ARTICLE 9
13 ASSIGNMENT AND SUBLICENSE
14 9. 1 P&M shall not assign, sublicense, mortgage, or
15 hypothecate, by operation of law or otherwise, the license for
16 use granted hereunder, in whole or in part, without the prior
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17 written consent of the City.
18 9.2 Any purported or attempted assignment, sublicense,
19 mortgage, or hypothecation of the license granted hereunder by
20 P&M shall cause the immediate termination of this Agreement.
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21 9.3 The City may assign this license to any successor in
22 interest of the City by notification in writing to P&M of such
23 assignment.
24
25 ARTICLE 10
i 26 RESERVATION OF USE
27 10. 1 Notwithstanding Article 1. 1 hereof, the City reserves
28 the right to use the Premises and to grant the use of the
29 Premises to other persons or entities. The rights granted to P&M
30 hereunder are in this respect semi-exclusive, and are subject to
31 the City's reservation; however, such reservation and granting of
32 use by the City shall be in compliance with Article 4 . 3 hereof.
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1 ARTICLE 11
2 NOTICES
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3 11. 1 Any notices or other communication required or
4 permitted hereunder shall be sufficiently given if sent by
5 registered mail, postage prepaid, addressed as follows:
6 To The City: City of Redding
7 760 Parkview Avenue
8 Redding, California 96001-3396
9 Attention: Sam Lindley
10 Electric Utility Director
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12 To P&M: P&M Cedar Products, Inc.
13 P.O. Box 7349
! 14 Stockton, CA 95207
15 Attention: Larry Hood, President
16 or to such other addresses as shall be furnished in writing by
17 either party to the other party. Any such notice or
18 communication shall be deemed to have been given as of the date
'I 19 received.
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21 ARTICLE 12
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22 TIME OF ESSENCE
23 12. 1 Time is of the essence in this Agreement and all its
24 particulars.
25
26 ARTICLE 13
27 RECORDING
28 13 . 1 Neither party hereto shall record this Agreement
29 without the written consent of the other.
30
31 ARTICLE 14
32 ATTORNEY'S FEES
33 14 . 1 Should legal action or other proceeding be brought for
34 the enforcement of this Agreement or any term hereof, due to any
!I 35 alleged dispute, breach, default, or misrepresentation in
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1 connection with any provisions herein contained, the prevailing
2 party shall be entitled to recover reasonable attorney' s fees and
3 other costs incurred in any such action or proceedings, in
4 addition to such other relief as may be granted.
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6 ARTICLE 15
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7 ENTIRE AGREEMENT: MODIFICATION; WAIVER
8 15. 1 This Agreement, and its Exhibits, constitutes the
9 entire Agreement between the parties hereto and supersedes all
10 previous oral or written agreements, representations, and
11 understandings between the parties. No supplement, modification,
12 or amendment to this Agreement shall be binding unless executed
13 in writing by all parties. No waiver of any provision of this
14 Agreement shall be deemed a waiver of any other provision,
15 whether or not similar, nor shall any waiver constitute a
'i 16 continuing waiver. No waiver shall be binding unless executed in
17 writing by the party making the waiver.
18
19 ARTICLE 16
20 COUNTERPARTS: CORPORATE AUTHORITY
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21 16. 1 This Agreement may be executed in any number of
22 counterparts and each such instrument executed in counterpart
II 23 shall be deemed to be an original instrument.
24 16. 2 P&M warrants and represents that the execution of this
25 Agreement is duly authorized by its Board of Directors.
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27 ARTICLE 17
' 28 TARES
29 17. 1 P&M agrees to pay promptly when due any and all taxes
30 assessed against its personal property and any possessory
31 interest tax levied by reason of its occupancy and use of the
32 Site.
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1 IN WITNESS WHEREOF, the parties have executed this Agreement
2 on the day and year first written above.
3
4
5 THE CITY OF REDDING P&M CEDAR PRODUCTS, INC.
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10 By By
11 ROBERT M. CHRISTOFFERSON DAVID ATERS
12 City Manager Vice-President, Manufacturing
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d 15 Date: Date:
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19 FORM APPROVED
20
21Of
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