HomeMy WebLinkAboutA4222 - WWTP WATER TREATMENT RENTAL AGR R 19791ARCH SPECIAL TY INSURANCE COMPANY
O NE SANSOME STREET
14TH FLOOR
SAN FRANCISCO CA 94104
NOTICE OF POLICY CONDITIONAL RENEWAL
Named Insured & Mailing Address:
CITY OF PALM SPRIN GS WASTE WATER
TREATM ENT PLANT
3200 EAST TAHQUITZ CANYON WAY
PALM SPRINGS CA 92262
Policy No.: ESP730391907
Type of Policy: ESP -PROPERTY -EXCESS/S URPLUS
Producer: 49
RSG SPECIALTY, LLC
44 MONTGOMERY STREET,
SUITE 2000
SAN FRANCISCO CA 94104
Date of Expiration: 07/01/2025; 12:01 A.M. Local Time at the mailing address of the Named In sured .
This notice is to advise that we are agreeable to renewing this policy s ubject to the fo llowing:
This is an important notice regarding your existing commercial property insurance policy. Please read it
carefully; speak with your insurance agent or broker if you have any questions .
We may not be able to renew your property insurance policy with the same price, terms or conditions currently
provided to you, and it's possible we may not be able to renew your policy under any ci rcumstan ces.
However, we reserve the right to offer you renewal terms and conditions after a thorough review of you r
exposure. If we make such an offer, you have the option to accept our offer, decline our offer, or request
optional terms and conditions for our consideration .
Named In s ured
CITY OF PALM SPRING S WASTE WATER
TREATMENT PLANT
3200 EAST TAHQUITZ CANYON WAY
PALM SPRINGS CA 92262
FORM# CR97CA51995
ODEN 3 .0.25.02a
RECEIVED
APR 2 3 2025
OFFICE OF THE CITY CLERK
Date Mailed :
SVP, E&S PROPERTY
Copy for Named Insured
CACR27NONE APP
04142025MNNY
Page 1 o f 1
ARCH SPECIAL TY INSURANCE COMPANY
ONE SANSOME STREET
14TH FLOOR
SAN FRANCISCO CA 94104
Named Insured: CITY OF PALM SPRINGS WASTE WATER Policy Number: ESP730391907
This page is separate and independent from the notice given.
We are informing you that the following parties were notified of this action.
Named Insured
City of Palm Springs Waste Water
Treatment Plant
3200 East Tahquitz Canyon Way
PALM SPRINGS CA 92262
Producer
RSG Specialty, LLC
44 Montgomery Street,
Suite 2000
San Francisco CA 94104
PARTIES NOTIFIED
CACR27NONE APP
04142025M NNY
Page 1 of 1
ARCH SPEC IAL TY INSURANCE COMPANY
ONESANSOMESTREET
14TH F LOOR
SAN FRANCISCO CA 94104
NOTICE OF POLICY CONDITIONAL RENEWAL
Named Insured & Mailing Address:
CITY OF PALM SP RIN GS WASTE WATER
TREATMEN T PLANT
3200 EAST TAHQUITZ CANYON WAY
PALM SPRINGS CA 92262
Policy No.: ESP730391907
Type of Policy: ESP -PROPERTY -EXCESS/SURPLUS
Producer: 49
RSG SPECIALlY, LLC
44 MONTGOMERY STREET,
SUITE 2000
SAN FRANCISCO CA 94104
Date of Expiration: 07/01/2025; 12:01 A .M. Local Time at the mailing address of the Named Insured.
This notice is to advise that we are agreeable to renewing this policy subject to the following:
This is an important notice regarding your existing commercial property insurance policy. Please read it
carefully; speak with your insurance agent or broker if you have any questions.
We may not be abl e to renew your property insurance policy with the same price, te rm s or cond itions cu rrently
provided to you, and it's possible we may not be able to renew your policy under a ny circumstances.
However, we reserve the right to offer you renewal terms and conditions after a t horough review of your
exposure. If we make such an offer, you have the option to accept our offer, decl ine ou r offer, or request
optional terms and conditions for our consideration.
Producer
RSG SPEC IAL TY, LLC
44 MONTGOMERY STREET,
SU ITE 2000
SAN FRANCISCO CA 94104
FORM# CR97CA51995
ODEN 3 .0.25.02a
Date Mailed:
SVP. E&S PROPERTY
Copy for Producer
CACR27NONE APP
04142025MNNY
Page 1 of 1
P.S. Wastewater Treatment Fac
Rental Agreement
AGREEMENT 14222
R19791, 5-17-00
RENTAL AGREEMENT
THIS RENTAL AGREEMENT (this "Agreement") is made and entered into this � day of
`, w+-L 2000 ("Agreement Date"), by and between Palm Springs International Airport("Landlord")
and the Palm Springs Wastewater Treatment Facility("Tenant")-
RECITALS
WHEREAS Landlord and Tenant wish to formalize an Agreement for the use of Landlord's property by
Tenant for a portion of the Palm Springs Wastewater Treatment Facility; and
WHEREAS by Instrument of Release dated October 28, 1994,and per Section 514 of the Federal Aviation
AdministrationAuthorizationActof 1994,the Airport's property underlying the Wastewater Treatment Plant
was released from all grant deed restrictions and any requirement for past fair market value rental was
waived; and
WHEREAS,the above referenced Instrument of Release does not require fair market value for the continued
use; however, the City may impose such rental for the benefit of the Airport,
NOW THEREFORE the parties hereto agree as follows:
1. DEMISED PREMTSES: The "Demised Premises" shall refer to that certain real property
(approximately 24.87 acres) located in the County of Riverside, State of Califomia, as more
particularly depicted on the Plot Plan attached as Exhibit"A".
2. USE OF DEMISED PREMISES:The Demised Premises and the facilities constructed thereon shall
be utilized for governmental wastewater treatment facilities that benefit the Tenant and Landlord.
3. TERM: The term of this Agreement shall commence as of July 1, 2000 and be on a year-to-year
basis with automatic renewal continuing to occur so long as Tenant makes annual rental payments.
4. RENTAL: Tenant shall pay to Landlord prior to June 30,base annual rental of$321,534. (For base
rental calculation, see Exhibit"B".)
Every fifth year anniversary of the date this Agreement was executed,the rental rate shall be adjusted
in proportion to changes in the Consumer Price Index(All Urban Consumers{all items),for the Los
Angeles-Anaheim Riverside Metropolitan Area, 1982-84 = 100). Every tenth anniversary, a letter
appraisal shall be acquired and said appraisal shall be basis for additional adjustment to the rental
rate.
5. TERMINATION:Either party may terminate this rental agroemctitby providing 180 days notice in
writing to the other party.
6. NON-DISCRIMINATION&FAA REOUIRED CLAUSES:
(a) Tenant for himself, his heirs, personal representatives, successors in interest, and assigns,
as apart of the consideration hereof,does hereby covenant and agree"as a covenant running
with the land"that in the event facilities are constructed,maintained or otherwise operated
on the said property described in the lease for a purpose for which a DOT program or
activity is extended or for another purpose involving the provision of similar services or
benefits,the Tenant shall maintain and operate such facilities and services in compliance
with all other requirements imposed pursuant to Title 49,Code of Federal Regulations DOT,
Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted
Programs of the Department of Transportation-Effectuation of Title Vi of the Civil Rights
Act of 1964, and as said Regulations may be amended.
(b) The Tenant for himself,his personal representatives,successors in interest,and assigns,as
a part of the consideration hereof, does hereby covenant and agree"as a covenant running
with the land"that: (1) no person on the grounds of race, color, or national origin shall be
excluded from participation in, denied the benefits of or be otherwise subject to
discrimination in the use of said facilities,(2)that in the construction of any improvements
on,over,or under such land and the furnishing of services thereon,no person on the grounds
of race,color,or national origin shall be excluded from participation in,denied the benefits
of, or otherwise be subject to discrimination, (3)that the Tenant shall use the premises in
compliance with all other requirements imposed by or pursuant to Title 49,Code of Federal
Regulations Department of Transportation, Subtitle A, Office of the Secretary Part 21,
nondiscrimination in Federally-Assisted Programs of the Department of Transportation-
Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be
amended.
(c) That in the event of breach of any of Vic above nondiscrimination covenants,Landlord shall
have the right to terminate the lease,and to reenter and repossess said land and the facilities
thereon and hold the same as if said lease had never been made or issued. This provision
does not become effective until the procedures of 49 CFT Part 21 are followed and
completed including expiration of appeal rights.
(d) Tenant shall furnish its accommodations and/or services on a fair, equal and not unjustly
discriminatory basis to all users thereof and it shall charge fair,reasonable and not unjustly
discriminatory prices for each unit or services,provided that the Tenant may be allowed to
make reasonable and nondiscriminatory discounts, rebates or other similar type of price
reductions to volume purchasers-
(c) Non-compliance with Provision 4 above shall constitute a material breach thereof and in tile
event of such non-compliance by the Landlord shall have the right to terminatethis lease and
the estate hereby created without liability therefore or at the election of the Landlord or the
United States; either or both said Governments shall have the right to judicially enforce
provisions.
(f) Tenant agrees that it shall insert the above five provisions in any sublease of contract by
which said tenant grants a right or privilege to any person, form or corporation to render
accommodations and/or services to the public on the premises herein leased.
(g) The Tenant assures that it will undertake an affirmative action program as required by 14
CFR Part 152, Subpart E,to insure that no person shall on the round of race, creed, color,
national origin,or sex be excluded from participating in any employment activities covered
in 14 CPR Part 152, Subpart E. The Tenant assures that no person shall be excluded on
these grounds from participating in or receiving the services or benefits of any program or
activity covered by this Subpart. The tenant assures that it will require that its covered sub-
organizations provide assurance to the Tenant that they similarly will undertake affirmative
action programs and that they will require assurances from their sub-organizations, as
required by 14 CFR Part 152, Subpart E to the same effort.
(h) The Landlord reserves the rightto further develop or improvethe landing area ofthe Airport
as it sees fit, regardless of the desires or view of the Tenant and without interference or
hindrance.
W The Landlord reserves the right, but shall not be obligated to the Tenant to maintain and
keep in repair the landing area of the airport and al l publically-owned facilities ofthe airport,
together with the right to direct and control all activities of the Tenant in this regard.
(j) The Lease shall be subordinate to the provisions and requirement of any existing or future
agreement between the Landlord and the United States, relative to the development,
operation or maintenance of the airport-
(k) There is hereby reserved to the Landlord, its successors and assigns,for the use and benefit
of the public,a rigbt of flight for the passage of aircraft in the airspace above the surface of
the premises herein(leased,licensed,permitted). This public right of flight shall include the
right to cause in said airspace any noise inherent in the operation of any aircraft used for
navigation of flight through the said airspace or landing at,taking off from or operation on
the Palm Springs International Airport.
(1) Tenant agrees to comply with the notification and review requirements coveredin Part 77
of the Federal Aviation Regulation in the event future construction of a building is planned
for the leased premises, or in the event of any planned modification or alteration of any
present of future building or structure situated on the leased premises.
(m) The Tenant, by accepting this, expressly agrees for itself, its successors and assigns that it
will not erect nor perm it the erection of any structure or object,nor permit the growth of any
tree on the land leased hereunder above the mean sea level elevation of 530 feet. Landlord
reserves the right to enter upon the land leased, hereunder and to remove the offending
structure or object and cut the offending tree, all of which shall be at the expense of the
Tenant-
(n) The Tenant,by accepting this Lease,agrees for itself,its successors and assigns that it will
no make use of the lease premises in any mannerwhich might interfere with the landing and
taking off of aircraft from Palm Springs International Airport or otherwise constitute a
hazard. In the event the aforesaid covenant is breached,the owner reserves the right to enter
upon the prom ises here leased,and cause the abatement of such interference at the expense
of the Tenant.
(o) It is understood and agreed that nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right within the meaning of Section 308a of the
Federal Aviation Act of 1958 (49 U.S.C. 1349a).
(p) The lease,and all the provisions hereof,shall be subject to whatever right the United States
Government now has or in the future may have or acquire,affecting the control,operation
regulation and taking over of said airport or the exclusive or non-exclusive use of the airport
by the United States during the time of war or national emergency.
7. MAINTENANCE AND REPAIRS:Tenant shall at all times during the term hereof,and at Tenant's
sole cost and expense,keep,maintain and repairthe Demised Premises and other improvements upon
the demised Premises in good and sanitary order,condition and repair.
8. CONSTRUCTION/M PRO'VEMENTS: Tenant may carry out capital improvements necessary to
develop the Wastewater Treatment Facility.
IN WITNESS WHEREOF,the parties have duly executed this Rental Agreement together with the
herein referred to Exhibits which are attached hereto,on the day and year first above written in Palm Springs,
California.
PALM SPRINGS INTERNATIONAL AIRPORT PALM SPRINGS WASTEWATER FACILITY
By:. Q&4z C,'d de ..9 By:
Jeri V. Riddle Allen F. Smoot,AAE
Director of Aviation Assistant City Manager-Special Projects
"LANDLORD" "TENANT"
CITY OF PALM SPRINGS, CALIFORNIA
Attest:
Cxty Clerk City Manager
APPROVED BY THE C4- y COUNOL
BYRE$. NO. ) 9-�131 S-( 7_ql�
* •
EXI•IIBIT `B'
FAIR MARKET VALUE RENTAL CALCULATION
24.87 acres of Airport property occupied by Wastewater Treatment Facilities.
Parcel Size: 24.87 acres x 43,560 sq.ft.= 1,083,337 sq.ft.
Parcel Value: 1,083,337 sq.ft. x$3.71/sq.ft._$4,019,180
Base Rental: $4,019,180 (value)x 8% capitalization= 32$ 1.534
Properly Value Establishment
Comparable Parcels
Matbews @ E. Palm Canyon $5.20/sq.ft.
Vella @ Ramon 53.03/sq.ft.
East Horizon Road (Cathedral City) $2.84/sq.ft.
Avenida Los Ninos @ Aliso(Cathedral City) $4.71.sq.ft.
Farrell Airport Acquisition $3.32/sq.ft.
First City Properties $3.20/sq.ft.
Average Value 3.71/s .ft.