17-014 Lease Agreement, Stevens Creek Quarry, Inc.CUPERTINO
LEASE AGREEMENT
This lease is entered into between Stevens Creek Quarry , Inc . a California Corporation ,
("LANDLORD "), and the City of Cupertino ("TENANT").
Now, therefore , in consideration of the mutual covenants and agreements herein contained , the
parties herein agree as follows:
This lease is made this day of March , 1 2017 between Stevens Creek Quarry , Inc . and the City of
Cupertino , California.
The Landlord is the owner of and hereby leases to the Tenant those certain premises situated in
the County of Santa Clara, State of California, ("Premises") and more particularly described in
Paragraph "U " attached hereto .
A . The Premises are to be used solely for a facility for the delivery and distribution of
compost to Cupertino residents and for no other purpose without the written consent of
the Landlord. The Tenant has the right to make any improvements , additions , building or
construction within the Premises area that is associated with this use upon prior approval
by the Landlord . Any improvements , buildings , additions or construction made by the
Tenant shall remain the property of the Tenant unless affixed to the real property.
B. The Tenant shall not assign , mortgage , or hypothecate this lease , or any interest therein ,
or permit the use of the Premises by any person or persons other than the Tenant, or the ,
subject Premises or any other part thereof, without the written consent of the Landlord.
Consent of any such assignment of subletting shall not be refused without cause.
C. The term of this lease shall commence on March 1, 2017 and shall terminate on February
28 , 2022 , for a total period of five years. Either party may terminate this agreement upon
a 30-day notice.
D . The Tenant agrees to compensate the Landlord , for use of the Premises , by means of
providing the Landlord with an allocation of compost, determined on an annual basis , but
not more than half, based upon the City of Cupertino 's total allocation of compost, and
any excess which is unused by the City of Cupertino annually by the end of October.
Compost will be used by Landlord at Stevens Creek Quarry , and will not be sold to
another party.
The Tenant agrees that the Landlord has first right of refusal to any and all compost
material not used by the City of Cupertino .
E. In the event that the Tenant shall be in default of payment of compensation to the
Landlord or default for payment to the Landlord for development costs to the Premises ,
the Landlord will , prior to commencing any action of termination of the lease and/or
2/6/17
rejection from the Premises , give the Tenant 10 days written notice of his demand for the
payments of all above agreements.
F. The Tenant agrees to pay the charges for all utilities supplied to the Tenant including, but
not limited to , sanitary portable toilets , portable wash stations and cell phone(s).
G . The Tenant agrees to acquire and pay for any installation costs for any and all utilities
needed and used by the Tenant.
H. The Tenant agrees to indemnify and hold harmless the Landlord from and against any
and all liability, arising out of or incident to any injury to person or persons and/or
damage to property on or about said leased Premises and /or any property bordering said
Premises resulting directly or indirectly , from the use or occupancy of said Premises or
any act of omission or breach of any obligation hereunder by the Tenant, its employees ,
its agents , contractors , vendors, or invitees. The only exception to this indemnification is
any liability due to the sole negligence of the Landlord. The Tenant agrees, as its own
expense, to maintain during the life of the Lease or any extended lease term , to supply a
self-insured policy in excess of One Million Dollars ($1 ,000 ,000 .00) specifically naming
Stevens Creek Quany, Inc . as the Additional Insured.
I. The Tenant agrees to take full responsibility for the acquisition of and payment of any
permits and/or fees related to the Tenants operation and/or the Premises.
J. It is mutually agreed that this Agreement is made upon and subject to the terms ,
covenants, and conditions of this Lease and that the Tenants and Landlord covenant as a
material pmi of the consideration for this Lease , to keep and perform each and all of the
terms , covenants, and conditions by him to be kept or performed and that this lease is
made upon the condition of each performance.
K. Should either party hereto institute any legal action to enforce any provision hereof, the
prevailing party in such action shall be entitled to receive from the losing party such
amount as the Court may adjudge to be reasonable attorney's fees and costs .
L. If any term , covenant, or condition or provision of this lease is held by a court of
competent jurisdiction to be invalid, void or unenforceable , the remainder of the
provisions, hereof shall remain in full force and effect and shall in no way be affected ,
impaired or invalidated thereby.
M. Nothing cont~ined in this lease shall be deemed or construed by the parties hereby or by
any third person to create the relationship of principal and agent or of partnership of joint
venture or of any other association other than Landlord and Tenant.
N. A notice of communication under this lease by either party to the other shall be
sufficiently given or delivered if dispatched by registered mail , postage paid, addressed as
follows:
1. In case of notice or communication to the Landlord:
STEVENS CREEK QUARRY, INC.
12100 Stevens Canyon Road
2/6/17
Cupertino , CA 95014
2 . In case of notice or communication to the Tenant:
Cheri Donnelly , Environmental Programs Manager
CITY OF CUPERTINO
10300 To1Te Avenue
Cupertino , CA 95014
0. The Tenant agrees to maintain the Premises in a safe manner, to be clear and free of
weeds and debris , to be at all times kept in a state of appearance that does not distract
from the Landlord 's property.
P. The Tenant agrees to maintain the Premises in a manner which complies with all local
and county fire regulations.
Q . The Tenant agrees to secure the Premises and provide security in a manner that the
Premises do not affect the Landlord 's property.
R. The Tenant shall supply the Landlord with 24 hour a day access to the Premises.
S. The Tenant agrees to operate on the Premises in a manner that will not cause any
interference to the operation of the Landlord.
T. The Landlord agrees to provide the Tenant a graded site for the Premises. The Landlord
agrees to maintain an access road from Stevens Canyon Road to the compost site.
Maintenance will include periodic grading, dust control and following best management
practices for storm water pollution prevention. Tenant, at its sole discretion , may also
perform grading of the access road as needed , in the event the Landlord is unavailable to
perform the work within 24-hours of request. Any additional work to be done for the
Tenant to finish the site , for the Tenant 's operations, that will be performed by the
Landlord will be paid for by the Tenant. Any other development of the Premises,
including fencing, will be paid for by the Tenant.
U. The Premises shall be located on the Landlord's property, bordering Stevens Canyon
Road on its Northeast side and bordering both property owned by the County of Santa
Clara and the Sunnyvale Rod and Gun Club on its North Side, with the Landlord's
property bordering it on its West and South sides , and as generally shown on Exhibit
"A".
V. The Tenant agrees to support Stevens Creek Quarry, Inc., the Landlord, in use permit
matters associated with this lease .
W. The Tenant agrees that this lease agreement, during its life or not, in no way implies ,
reflects intent, or puts upon any restrictions , and/or future restrictions pertaining to the
current use , current development, or future development and/or use of Stevens Creek
Quarry , Inc., the Landlord's property. Tenant has neither responsibility for , nor control
over, Landlord 's use of the property outside the Premises for its operations , including but
not limited to the quarry , surface mining , stockpiling , rock processing, crushing, selling,
or composting operations (collectively "Quarry Operations"). Landlord shall defend ,
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indemnify and hold harmless Tenant from any and all liability arising out of or incident
to any injury to person or persons and/or damage to property arising out of the Quarry
Operations.
X. The Tenant agrees to obtain written permission from the Landlord for any uses of the
Landlord 's prope1iy for easements or access pe1iaining to the Tenants use of the
Premises.
Y. The terms and provisions hereof shall be binding upon and insured to the benefit of the
heirs , executors, administrators , successors, and assigns and transferees of the Landlord
including successors in interest to the subject premise.
Executed in Cupertino, California on the It day of March 2017
LANDLORD: TENANT:
STEVENS CREEK QUARRY, INC. CIT_7') CUPERTINO
01L / ;1_
l --=-/
City Manager
Attest:
City Clerk :2 _ 2, L{ -{ '7
As to form:
~
~Randolph Stevenson Hom, City Attorney
2/6/17
Compost Site Use Area Exhibit A