west sacramento area flood control agency

West Sacramento Area Flood Control Agency

West Sacramento Levee Improvement Program

Projected Sources and Uses

The West Sacramento Area Flood Control Agency’s (WSAFCA) goal is to provide a minimum 200-yearlevel of protection to the City of West Sacramento (City) by 2025. WSAFCA is advancing acomprehensive program referred to as the West Sacramento Levee Improvement Program (WSLIP) toachieve its flood risk reduction goals. WSAFCA has developed local funding sources to leverage againstfederal and State funds in support of implementation of the WSLIP.

To generate local funding to match federal and State funds, WSAFCA established the West SacramentoArea Flood Control Agency Assessment District Assessment District (Assessment) in 2007. WSAFCArelied on the Benefit Assessment Act of 1982 to establish the Assessment complying with the proceduralrequirements of Proposition 218. WSAFCA is funding the local share of the improvements by levying theAssessment on properties receiving a special benefit in the form of reduced flood risk. On July 16, 2007,WSAFCA announced that 70% of the weighted ballots returned by property owners in the districtapproved the annual Assessment. There is no sunset provision on the Assessment and it will beavailable to secure bonds, lines of credit, or other financing sources to capitalize WSLIP improvements.Additional information associated with the Assessment can be found in the Engineer’s Report, WestSacramento Area Flood Control Agency, Assessment District (July 2007). Since Federal appropriationsare not guaranteed, WSAFCA and the City understood that additional local financial resources could beneeded to supplement the parcel assessment and State funding. An in-lieu fee on new developmentwas adopted by the City in May 2007 (Ordinance 07-11). In addition, two general sales tax measureswithin the City, Measures U and V, were approved by the citizens of West Sacramento on November 4,2008. The City approved an allocation of some of the sales tax revenue generated by Measure V to fundflood risk reduction improvements to supplement the Assessment.

A key assumption outlined in the Engineer’s Report supporting the Assessment was the need for Stateand Federal funds to complete the WSLIP. Flood protection is the City’s top priority. If Federal funds donot materialize as envisioned, WSAFCA and the City recognize that additional local funding sources maybe needed over and above the Assessment, in-lieu fee, and sales tax measures in order to raise the localshare necessary to complete implementation of the WSLIP by 2025.

WSAFCA has partnered with the State of California Department of Water Resources (State) toimplement urgent flood risk reduction projects in advance of federal authorization. WSAFCA’s currentestimated cost to achieve 200-year level of protection is $680 million.

The tables below summarize the funding sources and uses that have been provided to DWR. The tablesare intended to frame a discussion regarding the agencies financial strategy. WSAFCA may determinethat securing additional local funding sources is needed to leverage State or federal funding andcomplete the WSLIP on a timeline that is acceptable to the agency.

Sources

State FundingI Street (WO#’s41160, 41161) $2,700,000CHP Academy (WO#'s 40011, 41163, & 50% of 41170) $10,800,000The Rivers (WO#'s 40009, 41166, & 50% of 41170) $20,700,000Southport (WO#'s 41164, 40013 Projected) $143,100,000Remaining Sacramento River West Levee Project $127,500,000Regional Flood Management (WO # 40012) $1,900,000

Total State Funding $306,700,000 a

Local Funding SourcesAssessments $89,735,344Misc. Rev. Footnote the nature of this revenue, ie misc.

grant. $2,633,600Additional Assessment/In-Lieu Fee $17,296,476Annual Flood Control Tax (Measure V) $10,000,0002007 Bond $9,929,1782010 Bond $12,000,0002015 Bond $20,000,000Future Bond $10,000,000

Sub Total Local Funding Sources $171,594,597 b

Total Sources $478,294,597 c = a + b

Notes:Tables were developed from the most recent finance plan submitted to DWR dated February 27,

2015.Total WSLIP project cost is assumed to by $680 million.Does not include RFMP II costs that will be fully funded by DWR.Does not consider USACE estimate of $1.18 billion to complete the federally authorized project.

UsesJPA Operation Costs (non-capital expenditures)

Admin Support JPA $9,455,985Debt Service $37,938,560O&M Transfers (15.2%) $13,639,772

Subtotal $61,034,317 d

Capital Improvement Projects Funding UsesI Street (WO#’s41160, 41161) $3,000,000CHP Academy (WO#'s 40011, 41163, & 50% of 41170) $12,000,000The Rivers (WO#'s 40009, 41166, & 50% of 41170) $23,000,000Southport (WO#'s 41164, 40013 Projected) $190,800,000Regional Flood Management (WO # 40012) $1,900,000General Re-Evaluation Report $1,411,370EIP I Street Bridge South (Deficiency Repairs) $1,167,311FEMA Re-Mapping Support $65,066PIR Levee Analysis $5,000,340Bridge District $468,825Eng Support, Hd. Design $632,241South Cross Levee $40,000Remaining Sacramento River West Levee Project $150,000,000Other Unfunded activities/Contingency $7,248,277

Sub Total Capital Improvement Project including EIP $396,733,430 e

WSAFCA (non-federal share) of Federal Project $18,742,650 f

Total Cash Paid Out $476,510,397 g = d + e + f

Net Sources $0 h = c - g

September 15, 2013

1 West Sacramento Levee Improvement Program, Cost Estimate2 WSLIP program projected costs for Federal and State-Local led project elements34 Federal Led Project Cost Estimate 2006-2014 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total5 Construction Less LERRD, 221 Credit, and Minimum 5% Cash [1] $24,432,688 $24,432,688 $24,432,688 $24,432,688 $24,432,688 $24,432,688 $24,432,688 $24,432,688 $195,461,5006 Section 221 Credit [2] $5,346,625 $5,346,625 $5,346,625 $5,346,625 $5,346,625 $5,346,625 $5,346,625 $5,346,625 $42,773,0007 Remaining LERRD Costs [3] $3,562,500 $3,562,500 $3,562,500 $3,562,500 $3,562,500 $3,562,500 $3,562,500 $3,562,500 $28,500,0008 Minimum 5% Cash Based on Total Authorized Project [4] $4,246,938 $4,246,938 $4,246,938 $4,246,938 $4,246,938 $4,246,938 $4,246,938 $4,246,938 $33,975,5009 Total $0 $0 $0 $0 $0 $37,588,750 $37,588,750 $37,588,750 $37,588,750 $37,588,750 $37,588,750 $37,588,750 $37,588,750 $300,710,000

1011 State and Local Led Project Cost Estimate (EIP-UFRR) 2006-2014 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total12 I Street (WO#'s 41160, 41161) [5] $3,000,000 $3,000,00013 CHP Academy (WO#'s 40011, 41163, & 50% of 41170) [5] $10,833,874 $1,166,125 $12,000,00014 The Rivers (WO#'s 40009, 41166, & 50% of 41170) [5] $21,107,635 $1,892,365 $23,000,00015 Southport (WO#'s 41164, 40013 Projected) [5,6] $33,469,990 $49,930,010 $51,650,000 $55,750,000 $190,800,00016 Remaining Sacramento River West Levee Project [7] $252,000 $2,280,000 $3,840,000 $10,080,000 $36,270,000 $56,520,000 $37,080,000 $3,678,000 $150,000,00017 Total $68,411,500 $53,240,500 $53,930,000 $59,590,000 $10,080,000 $36,270,000 $56,520,000 $37,080,000 $3,678,000 $0 $0 $0 $0 $378,800,0001819 Total Cost to Complete Federal, State, and Local Projects $68,411,500 $53,240,500 $53,930,000 $59,590,000 $10,080,000 $73,858,750 $94,108,750 $74,668,750 $41,266,750 $37,588,750 $37,588,750 $37,588,750 $37,588,750 $679,510,000

September 15, 2013

West Sacramento Levee Improvement Program, Sources & Uses Page 21 Fiscal Year 2006-2014 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total2 Fund Balance (Beginning of Period) $239,617 $17,472,061 $25,762,567 $22,537,954 $8,019,699 $8,492,726 $3,252,354 $4,652,850 ($1,156,820) ($1,201,415) ($532,280) $227,095 $1,078,513

3 State Funding Sources [1] 2006-2014 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total4 I Street (WO#'s 41160, 41161) [2] $2,700,000 $2,700,0005 CHP Academy (WO#'s 40011, 41163, & 50% of 41170) [2] $9,750,487 $1,049,513 $10,800,0006 The Rivers (WO#'s 40009, 41166, & 50% of 41170) [2] $18,996,872 $1,703,129 $20,700,0007 Southport (WO#'s 41164, 40013 Projected) [3] $25,102,493 $37,447,508 $38,737,500 $41,812,500 $143,100,0008 Remaining Sacramento River West Levee Project [4] $214,200 $1,938,000 $3,264,000 $8,568,000 $30,829,500 $48,042,000 $31,518,000 $3,126,300 $127,500,0009 Regional Flood Management (WO # 40012) [5] $1,900,000 $1,900,000

10 Total State Funding $58,449,851 $40,414,349 $40,675,500 $45,076,500 $8,568,000 $30,829,500 $48,042,000 $31,518,000 $3,126,300 $0 $0 $0 $0 $306,700,000

11 Local Funding Sources 2006-2014 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total12 Assessments [6] $28,828,641 $4,541,179 $4,632,003 $4,724,643 $4,819,136 $4,915,518 $5,013,829 $5,114,105 $5,216,387 $5,320,715 $5,427,129 $5,535,672 $5,646,385 $89,735,34413 Misc. Rev. [7] $2,633,600 $2,633,60014 In-Lieu Fee/Add'l Assessment [8] $296,476 $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $17,296,47615 Annual Flood Control Tax (Measure V) [9] $10,000,000 $10,000,00015 2007 Bond [10] $9,929,178 $9,929,17816 2010 Bond [10] $12,000,000 $12,000,00016 2015 Bond [10] $20,000,000 $20,000,00017 2021 Bond [10] $10,000,000 $10,000,00018 Sub Total Local Funding Sources $53,687,895 $24,541,179 $14,632,003 $4,724,643 $5,819,136 $6,915,518 $17,013,829 $7,114,105 $7,216,387 $7,320,715 $7,427,129 $7,535,672 $7,646,385 $171,594,597

19 Total Cash Receipts $112,137,746 $64,955,528 $55,307,503 $49,801,143 $14,387,136 $37,745,018 $65,055,829 $38,632,105 $10,342,687 $7,320,715 $7,427,129 $7,535,672 $7,646,385 $478,294,597

20 Total Cash Available ∑ rows 2,19 $112,377,363 $82,427,589 $81,070,070 $72,339,096 $22,406,834 $46,237,744 $68,308,183 $43,284,955 $9,185,867 $6,119,300 $6,894,850 $7,762,767 $8,724,899

21 Local Funding Uses 2006-2014 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total22 JPA Operation Costs (non-capital expenditures)23 Admin Support JPA $4,897,629 $319,452 $319,452 $319,452 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $9,455,98524 Debt Service [11] $5,488,560 $1,350,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $3,100,000 $3,100,000 $3,100,000 $3,100,000 $3,100,000 $3,100,000 $37,938,56025 O&M Transfers (15.2%) [12] $4,381,953 $690,259 $704,064 $718,146 $732,509 $747,159 $762,102 $777,344 $792,891 $808,749 $824,924 $841,422 $858,251 $13,639,77226 Subtotal $14,768,143 $2,359,711 $3,523,516 $3,537,598 $3,632,509 $3,647,159 $3,662,102 $4,277,344 $4,292,891 $4,308,749 $4,324,924 $4,341,422 $4,358,251 $61,034,317

27 Capital Improvement Projects Funding Uses 2006-2014 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total28 I Street (WO#'s 41160, 41161) [13] $3,000,000 $3,000,00029 CHP Academy (WO#'s 40011, 41163, & 50% of 41170) [13] $10,833,874 $1,166,125 $12,000,00030 The Rivers (WO#'s 40009, 41166, & 50% of 41170) [13] $21,107,635 $1,892,365 $23,000,00031 Southport (WO#'s 41164, 40013 Projected) [14] $33,469,990 $49,930,010 $51,650,000 $55,750,000 $190,800,00032 Regional Flood Management (WO # 40012) $1,900,000 $1,900,00033 General Re-Evaluation Report $1,411,370 $1,411,37034 EIP I Street Bridge South (Deficiency Repairs) $1,167,311 $1,167,31135 FEMA Re-Mapping Support $65,066 $65,06636 PIR Levee Analysis $5,000,340 $5,000,34037 Bridge District $468,825 $468,82538 Eng Support, Hd. Design $632,241 $632,24139 South Cross Levee $40,000 $40,00040 Remaining Sacramento River West Levee Project $0 $252,000 $2,280,000 $3,840,000 $10,080,000 $36,270,000 $56,520,000 $37,080,000 $3,678,000 $150,000,00041 Other Unfunded activities/Contingency [15] $1,040,507 $1,064,810 $1,078,600 $1,191,800 $201,600 $725,400 $1,130,400 $741,600 $73,560 $7,248,27742 Sub Total Capital Improvement Project including EIP $80,137,160 $54,305,310 $55,008,600 $60,781,800 $10,281,600 $36,995,400 $57,650,400 $37,821,600 $3,751,560 $0 $0 $0 $0 $396,733,430

43 WSAFCA (Non Federal Share) of Federal Project Uses [16] $2,342,831 $2,342,831 $2,342,831 $2,342,831 $2,342,831 $2,342,831 $2,342,831 $2,342,831 $18,742,650

44 Total Cash Paid Out $94,905,302 $56,665,022 $58,532,116 $64,319,398 $13,914,109 $42,985,390 $63,655,333 $44,441,775 $10,387,282 $6,651,580 $6,667,755 $6,684,253 $6,701,082 $476,510,397

45 Cash Position (row 20 - row 44) $17,472,061 $25,762,567 $22,537,954 $8,019,699 $8,492,726 $3,252,354 $4,652,850 ($1,156,820) ($1,201,415) ($532,280) $227,095 $1,078,513 $2,023,817

AGRICULTURAL LEASE AGREEMENT

THIS LEASE AGREEMENT (hereinafter, “Lease”) is made and entered into this 22 day ofFebruary, 2016, at West Sacramento, California, by and between the West Sacramento AreaFlood Control Agency, hereinafter known as Lessor, and David Vierra doing business asVierra Farms, hereinafter known as Lessee, whose address is 3010 Burrows Avenue, WestSacramento, California, 95691.

1) DESCRIPTION: Lessor, in consideration of the payment of the rent hereinafter specified tobe paid by Lessee, and the covenants and agreements herein contained, does herebylease, demise, and let unto Lessee that certain property in the County of Yolo, State ofCalifornia, containing 110 acres, more or less, identified as Assessor Parcel Number (APN)044-020-023, a portion of APN 044-020-024 and an easement for ingress and egress andapproximately described in Exhibit A attached hereto and made a part hereof (hereinafter,the “Property”). The Property includes any and all improvements thereon, including wells,pumps, and irrigation systems, if any.

2) TERM: This Lease and ingress and egress easement shall be for a term of approximatelyfour (4) months, commencing on the 22nd day of February, 2016, and ending on the 15thday of June, 2016, unless extended by the parties as hereinafter set forth, with the right ofcancellation and termination in Lessor and its assigns, and in Lessee as hereinafter setforth.

3) RENT: Rent shall be in the form of in-kind work to keep the 85± acres of the arable eastportion of the Property free of uncultivated plant growth.

4) CROP DAMAGE: Lessee acknowledges the property’s intended purpose as project borrowsite to support the construction of levee improvements and that the purpose may impact thelessee’s use of the property, including potential crop damage related to test pit and otherexcavations undertaken by Lessor or its agents in furtherance of Lessor’s use of theProperty as a borrow site. By agreeing to this Lease, Lessee acknowledges that he will notbe compensated for any crop loss or other damage due to Lessor’s activities as described inthis Paragraph 4.

5) SECURITY DEPOSIT: Lessor hereby waives any payment by Lessee of any securitydeposit under this Lease.

6) UTILITIES: Lessee shall pay when due all utility and other charges accruing or payable,including utility deposits, in connection with Lessee’s use of the Property during the term ofthis Lease. In the event Lessee fails to maintain service in Lessee’s name during the termof this Lease, this Lease will be terminated.

7) USE: Lessee shall use the Property for the following purposes only:

a) Cultivation of cabbage and lettuce on the 25± acres on the west portion of the Property.b) Lessee shall not commit, suffer, or permit any waste on said Property.c) Lessee shall comply with all federal, state, and local laws and ordinances concerning

said Property and the use thereof;d) Lessee shall comply with all pest control regulations and laws;

Agricultural Lease AgreementFebruary 25, 2016Page 2

{01015329}v2015-04-01

e) Lessee(s) shall cultivate, irrigate, fertilize, and otherwise farm the Property inaccordance with approved practices of good husbandry and in accordance with thestandard farming practices of the vicinity, and to keep any buildings, fences, irrigation orother farming facilities on the Property in good repair;

f) Lessee shall not permit hunting on the premises;g) Lessee(s) shall not allow vehicle or equipment washing, fueling, maintenance or repair

on the Property;h) Lessee shall advise Lessor of any material changes in the Property.

8) MAINTENANCE; CONDITION: Lessee shall properly use, operate and safeguard theProperty, and shall keep the Property in good order and condition, at Lessee’s own cost andexpense. Lessee agrees to abate weeds on the Property in accordance with prevailing areafarm management practices. Lessee further agrees to disc the Property following harvest ofLessee’s winter crop.

9) ALTERATIONS; REPAIRS: Lessee shall not make any repairs, alterations orimprovements in or about the Property without Lessor’s written consent. Lessor shall not beresponsible for the costs of any repairs, alterations or improvements made by Lessee andLessee shall not deduct from rent the costs of any repairs, alterations or improvements,without Lessor’s prior written consent.

10) ENCUMBRANCES: Lessee shall not encumber the leased premises in any mannerwhatsoever without Lessor’s prior written consent.

11) RIGHT OF ENTRY: Lessee shall permit Lessor or its authorized agent to enter into andupon the Property during normal business hours, subject to a twenty-four hour (24-hour)notice, for the following purposes: routine inspection, maintaining the Property, installingprotective or conservation devices and for showing the Property to prospective purchasersand/or tenants. Lessor reserves its right, without notice, to enter the Property in case ofemergency or to prevent imminent harm to persons or property.

12) ASSIGNMENT; SUBLETTING: Lessee shall not sublet all or any part of the Property, orassign or transfer this Lease or any interest in it, without Lessor’s prior written consent. Anypurported sublease, assignment or transfer is null and void.

13) VACATING THE PROPERTY: At the expiration of the term, or any sooner termination ofthis Lease, Lessee agrees to quit and surrender possession of the Property to Lessor in asgood order and condition as the Property was delivered to Lessee. Lessee agrees toreimburse Lessor for any damage done to the Property caused by Lessee occupation ortenancy excepting reasonable wear and tear and damage by the elements. Lessee shallnot leave or allow to remain on the Property any garbage, refuse, debris, or personalproperty. Lessee will pay Lessor any removal costs incurred by Lessor. On the date theProperty is vacated, Lessee agrees to deliver the Property keys, if any, to Lessor in personor at the address listed in this Lease.

14) TERMINATION: In addition to any other rights and remedies available to Lessor, shouldLessee fail to keep, perform, and observe any covenant, condition or provision of this Lease,


{01015329}v2015-04-01

and such failure shall continue for a period of three (3) days after written notice thereof givenby Lessor to Lessee, then Lessor may immediately terminate the Lease.

15) OWNERSHIP OF FACILITIES: Upon expiration of this Lease, or sooner termination, anyand all irrigation facilities upon the Property, including but not limited to any wells, pumps,electric motors, pipelines, valves and water gates, but excepting portable sprinkler irrigationfacilities and tail water pumps provided by Lessee, shall become the property of Lessor freeof cost to Lessor. Ownership and removal of facilities or improvements placed on theProperty with prior written approval of Lessor shall be as stated in the written approval. Allother facilities or improvements placed on the Property by Lessee which are required tocomply with generally recommended farming practices shall be the property of Lessee solong as this Lease is in effect and shall be removed by Lessee upon termination of thisLease.

16) INSURANCE: Lessor will not keep the Property insured against fire, theft, vandalism, floodor any other cause and Lessee will make no claim of any nature against Lessor by reason ofany damages to Lessee’s leasehold in the event it is damaged or destroyed by fire, theft,vandalism, flood, or by any other cause.

17) LIABILITY AND PROPERTY DAMAGE INSURANCE: Lessee shall, at Lessee’s expense,take out and keep in force during the full term of the tenancy:General liability insurance providing coverage in an amount not less than one million dollars($1,000,000) per occurrence for Bodily Injury and Property Liability combined, in a companyor companies to be approved by Lessor. The insurance policy shall be endorsed with thefollowing language:

a) LESSOR, its officers, officials, agents, contractors and employees are to be covered asadditional insured with respect to all claims, suits or actions of every name, kind, anddescription brought forth, or on account of, injuries to or death of any person occurring inor about the Property or on account of damage to property incident to the use of, orresulting from, any and every cause occurring in or about the Property which is thesubject of this Lease, including any and all claims, suits or actions for damage tovehicles on the Property.

b) This policy shall be considered primary insurance as respects to Lessor, its officers,officials, agents, contractors and employees. Any insurance maintained by Lessor shallbe considered excess insurance only and shall not contribute with it.

c) This insurance shall act for each insured and additional insured as though a separatepolicy had been written for each, except with respect to the limits of liability of theinsuring company.

d) The insurer waives all rights of subrogation against Lessor, its officers, officials, agents,contractors and employees.

e) Any failure to comply with reporting provisions of the policies shall not affect coverageprovided to Lessor, its officers, officials, agents, contractors and employees.

f) The insurance provided by this policy shall not be suspended, voided, canceled, orreduced in coverage or in limits except after thirty (30) days written notice has beenreceived by Lessor. Lessee shall provide certificates of insurance with originalendorsements to Lessor, as evidence of the insurance coverage required herein.


{01015329}v2015-04-01

18) POSSESSORY INTEREST: Lessee’s interest may be subject to possessory interest tax(hereinafter, “Tax”) that may be imposed by the County. Lessee is required to pay any suchTax directly to the County. If Lessee fails to pay the Tax and Lessor for any reason isrequired to pay the Tax, Lessor shall have a claim against Lessee for all amounts owed plusinterest at the rate of ten per cent (10%) per annum. Tax bills inadvertently received byLessor should be forwarded to Lessee for payment.

19) INDEMNIFICATION: Lessee expressly agrees that Lessee shall assume the defense of (bycounsel reasonably satisfactory to Lessor’s counsel), indemnify, and hold harmless Lessor,its officers, officials, agents, contractors, and employees from any and all liability whatsoeverfor injury to or death of any person or persons, or loss of or damage to any property,whether real or personal, caused by, or arising out of, or in any way connected with theoperations, activities, or omissions of Lessee, its employees, agents, contractors, orsubcontractors arising from Lessee’s use of the Property, except to the extent such loss ordamage is caused by the negligence or willful misconduct of Lessor, its officers, officials,agents, contractors or employees.

With respect to third-party claims against Lessee, Lessee waives any and all rights to anytype of express or implied indemnity against Lessor, its officers, officials, agents, contractorsor employees.

Lessor expressly agrees to indemnify, defend and hold harmless Lessee from and againstany and all third party claims, suits, damages, losses, liability, and expenses, includingattorneys’ fees, arising out of any activity conducted by Lessor on the property acquired byLessor herein, except for any losses, liability, expense claims, costs, suits and damagesincluding attorneys’ fees arising out of Lessee’s negligence or willful misconduct.

20) HAZARDOUS MATERIALS: Hazardous materials are those substances listed in CaliforniaCode of Regulations, Title 22, Section 66261.126, Appendix X, or those which meet thetoxicity, reactivity, corrosivity or flammability criteria of Title 22 of the above Code, as well asany other substance which poses a hazard to health or environment.

Except as otherwise permitted in this Lease, Lessee shall not use, create, store or allow anysuch substances on the premises. Fuel stored in a motor vehicle for the exclusive use insuch vehicle is excepted.

In no case shall Lessee cause or allow the deposit or disposal of any such substance on theleased Property. However, household products necessary for routine cleaning andmaintenance of the Property may be kept on the leased premises in quantities reasonablefor current needs.

Lessor, or its agents or contractors shall at all times have the right to go upon and inspectthe leased premises and the operations conducted thereon to assure compliance with therequirements herein stated. This inspection may include taking samples of substances andmaterials present for testing and/or testing soils or underground tanks on the premises.


{01015329}v2015-04-01

21) RELOCATION PAYMENT: Lessee acknowledges the following: Lessee commencedoccupancy of the premises after Lessor acquired title to it, Lessor acquired the premises fora public project, Lessee may be required to vacate the premises to allow construction of thepublic project, and Lessee is not entitled to receive any payments under either California orfederal relocation assistance laws (Government Code, Section 7260, et seq.; 42 UnitedStates Code, Section 4601, et seq.).

22) AMENDMENTS: The terms of the Lease may be, in writing, amended, revised, altered, orchanged, by mutual consent of the parties hereto upon thirty (30) days’ written notice. Anyamendment, revision, alteration, or change shall operate with the same force and effect asthe original agreement.

23) SEVERABILITY/WAIVER: If any part of this Lease is invalid by reason of law orgovernmental regulation, or if any provisions hereof are waived by Lessor, the remainingportions of this Lease shall remain in full force and effect. Lessor’s receipt of rent with theknowledge of any breach of a provision of this Lease shall not constitute a waiver of suchbreach.

24) NOTICES: All Notices herein provided to be given, or which may be given, by either party tothe other, shall be deemed to have been fully given when served personally or when madein writing and mailed addressed as follows:

To Lessor: WSAFCA General Manager1110 West Capitol AvenueWest Sacramento, CA 95691

To Lessee: David Vierra dba Vierra Farms3010 Burrows AvenueWest Sacramento, CA 95691

The address to which the notices shall be mailed to either party shall be changed by writtennotice by either party to the other, but nothing herein shall preclude the giving of notice bypersonal service. Lessor shall also be able to serve notices by posting and subsequentmailing to Lessee.

25) ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY, OR BANKRUPTCY:Appointment of a receiver to take possession of Lessee’s assets, Lessee’s generalassignment for benefit of creditors, or Lessee’s insolvency or taking or suffering action underthe Bankruptcy Act is a breach of this Lease and this Lease shall terminate.

26) POSTING ON PROPERTY: Lessor or its agents shall at all times have the right to serve orto post thereon any notice required or permitted by law for protection of any right or interestof Lessor.


{01015329}v2015-04-01

IN WITNESS WHEREOF, the parties have executed this Lease as follows:

LESSOR

Date:

By:

LESSEE

Date:

By:

Approved As To Form:

By:James M. Day, WSAFCA Attorney

By:Phil Wright, WSAFCA Treasurer


{01015329}v2015-04-01

EXHIBIT A

west sacramento area flood control agency

Documents