INVITATION TO BID. Date Advertised: July 8, Bid Opening Date: August 5, Inviting Bids for: Submit sealed bids to:

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1 INVITATION TO BID Lease of East Campus Farmland Agricultural Property INVITATION TO BID Date Advertised: July 8, 2016 Bid Opening Date: August 5, 2016 Inviting Bids for: LEASE OF EAST CAMPUS FARMLAND - AGRICULTURAL PROPERTY Submit sealed bids to: Joseph Reyes Director of Facilities, Maintenance, Operations, and Asset Management Hartnell Community College District 411 Central Avenue, Building L Salinas, CA 93901

2 INVITATION TO BID Lease of East Campus Farmland Agricultural Property Invitation to Bid Hartnell Community College District, 411 Central Avenue, Building L, Salinas, California, will receive sealed bids for the Lease of East Campus Farmland - Agricultural Property until 2:00 p.m. on Friday, August 5, 2016 after which time all bids will be publicly opened and read aloud. All interested persons are entitled to attend said bid opening. Bids (3 copies) must be submitted in accordance with District s specifications and the conditions contained therein. Hartnell Community College District reserves the right to reject late bids, any and all bids, or waive any irregularities or informalities during the Invitation to Bid process. No bid may be withdrawn for a period of ninety (90) days after the closing date for submission. Additional information may be obtained Monday through Friday between 8:30 a.m. and 4:00 p.m. by contacting: Joseph Reyes Director of Facilities, Maintenance, Operations, and Asset Management Telephone: (831) jreyes@hartnell.edu Projected Timetable The following should be used as a working guide for planning purposes. The District reserves the right to adjust this timetable as required during the course of the process. 1. Invitation to Bid issued: Friday, July 8, Sealed Bids received by: Friday, August 5, 2016 at 2:00 p.m. 3. Sealed Bids opened and read: Friday, August 5, 2016 at approximately 2:30 p.m. 4. Award of lease: September 6, 2016 Board of Trustees meeting 5. Lease commences: December 3, 2016

3 INVITATION TO BID Lease of East Campus Farmland Agricultural Property SPECIFICATIONS Minimum Bid: $2, per acre The land is approximately acres located on the Hartnell Community College District s East Campus and adjacent to Alisal Road (see Exhibit A). The terms of the Lease Agreement will be specified in detail in the Lease document. Major items will include: A. Property Description. Approximately contiguous acres of unimproved farmland located at the College s East Campus and adjacent to Alisal Road (see Exhibit A). B. Term of Lease. Five (5) years on property description of acres as mutually agreed upon between the College and the Lessee, commencing December 3, 2016 but not to extend beyond December 2, C. The Lessee will use the land for farming only and will apply good farming practices including, but not limited to, land and bed preparation, irrigation, cultivation, fertilization, pest control, and weed control. Lessee s use of the property shall not violate or otherwise conflict with the federal Controlled Substance Act, 21 U.S.C. 801, et seq. The Leased Premises shall not be used to manufacture, distribute, or dispense marijuana as those terms are defined by the Controlled Substances Act, 21 U.S.C. 801, et seq. D. The Lessee will pay the annual lease fee in three (3) equal installments the first installment will be due on or before December 3, 2016; the second installment will be due on March 1st; and the third installment will be due on July 1st of the Lessee year. E. Water from Hartnell Community College District s well and electricity will be available to the Lessee. The Lessee will reimburse Hartnell Community College District for one hundred percent (100%) of electricity used in the farming operation. F. The Lessee will maintain the water pump/irrigation system in an as-is condition. G. The Lessee will pay all taxes assessed including the possessory interest tax. H. The Lessee will be responsible for maintenance of improvements; such as fencing, water lines, and access roads. I. The Lessee will obtain and maintain liability insurance and workers compensation insurance. Bids must be submitted on the bid form provided for that purpose. Oral bids will be called for before making an award. If upon the call for oral bids, any responsible person offers an amount upon the terms and conditions specified herein, exceeding by at least five percent (5%) of the preceding highest proposal (written or oral), such highest oral bid shall be finally accepted.

4 INVITATION TO BID Lease of East Campus Farmland Agricultural Property The Board of Trustees reserves the right to reject any or all bids and to waive any informality in any bids received. Each bid shall be accompanied by a Cashier s Check, Certified Check, or Bid Bond in the amount of ten percent (10%) of the bid s annual rental amount to insure faithful performance on the bid; such amount to be forfeited in the event the bidder cannot comply with the terms of the bid. Questions may be directed to: Joseph Reyes, Director of Facilities, Maintenance, Operations, and Asset Management Phone: (831) jreyes@hartnell.edu

5 INVITATION TO BID Lease of East Campus Farmland Agricultural Property BID FORM The Board of Trustees of Hartnell Community College District 411 Central Avenue Salinas, CA Attention: Joseph Reyes, Director of Facilities, Maintenance, Operations, and Asset Management In response to Hartnell Community College District s Invitation to Bid for Lease of East Campus Farmland Agricultural Property, the undersigned hereby submits the following bid: Summary of lease payments: Monthly: $ Four month period: $ Annualized Amount: $ Enclosed with this bid is a (please check one) Cashier s Check Certified Check payable to Hartnell Community College District, or a satisfactory Bid Bond in favor of Hartnell Community College District, executed by the bidder as principal and a satisfactory surety company as surety, in an amount not less than ten percent (10%) of the annualized bid amount. The bid security is submitted with the understanding that it will be returned to the bidder within fifteen (15) days after opening of the bids if the undersigned is not the successful bidder. If the undersigned is the successful bidder, the bid security will be retained by Hartnell Community College District as a security deposit and as a guarantee that the undersigned will enter into the Lease Agreement for East Campus Farmland Agricultural Property according to the terms and conditions in the Invitation to Bid. If the undersigned is the successful bidder and does not enter into the Lease Agreement for East Campus Farmland Agricultural Property within fifteen (15) days from the award of the bid, through no fault of the College, the bid security will be retained by the College as liquidated damages.

6 INVITATION TO BID Lease of East Campus Farmland Agricultural Property The undersigned has reviewed and is familiar with the aforementioned Invitation to Bid and the Lease Agreement for East Campus Farmland Agricultural Property. Dated this day of _, 2016 Signature Printed Name Title Address City, State, ZIP Area Code and Telephone Number Enclosure: Bid Security

7 HARTNELL COMMUNITY COLLEGE DISTRICT EAST CAMPUS FARMLAND - AGRICULTURAL PROPERTY LEASE AGREEMENT This Lease made and entered into this day of, 2016, by and between THE BOARD OF TRUSTEES ( Board) OF THE HARTNELL COMMUNITY COLLEGE DISTRICT ( District ), hereinafter referred to as Lessor, and, hereinafter referred to as Lessee. WHEREAS, Lessor is the owner of certain real property located in the City of Salinas, County of Monterey, State of California, generally described as approximately acres of unimproved agricultural farmland located at Lessor s Alisal Campus and adjacent to Alisal road, as outlined on the map attached hereto and marked as Exhibit A; and WHEREAS, Lessor has complied with all requirements for leasing said real property as set forth in sections et seq., of the Education Code; and WHEREAS, Lessee has submitted the highest responsible, conforming bid for lease of said real property, the parties hereby agree as follows: 1. The foregoing recitals are true and correct and the parties so find and declare. 2. LEASE. Lessor hereby leases to Lessee, and Lessee hereby hires from Lessor, all of that certain real property more particularly described above, upon all of the terms, covenants, and conditions herein contained. 3. TERM. The term of this Lease shall be on acres, for a period of five (5) years commencing on the 3rd day of December, 2016, and ending on the 2nd day of December, 2021, unless sooner terminated as provided herein. 4. RENTAL. Lessor and Lessee agree that the annual rental shall be $ payable thrice annually on or before March 1, July 1, and November 1 in equal amounts. All rental shall be payable, without notice or demand, at the Business Office, Hartnell College, 411 Central Avenue, Salinas, California 93901, or at such other place as Lessor may designate in writing. All rental shall be paid and delivered free from all claims, demands, setoffs, or counterclaims against the Lessor of any kind or character whatsoever. 5. USE OF LEASED PREMISES. The Leased Premises shall be used for agricultural farming purposes. Lessee s use of the property shall not violate or otherwise conflict with the federal Controlled Substance Act, 21 U.S.C. 801, et seq. The Leased Premises shall

8 not be used to manufacture, distribute, or dispense marijuana as those terms are defined by the Controlled Substances Act, 21 U.S.C. 801, et seq. 6. LIENS AND ENCUMBRANCES. Lessee shall not incur or suffer any liens or encumbrances to be levied or asserted against the Leased Premises, any improvement thereon or appurtenances thereto. Lessee may execute a security agreement in connection with personal property owned by Lessee and located upon the Leased Premises and Lessee may give a security interest in any crop or produce located upon the Leased Premises, any appurtenance thereto, or any equipment located thereon. Lessee shall promptly notify Lessor of any claims or liens against the Leased Premises, the improvements thereon, appurtenances thereto, or equipment located thereon, so that Lessor may take such steps as Lessor may deem appropriate for the protection of said premises and appurtenances. 7. MAINTENANCE OF PREMISES AND CROPPING PRACTICES. Lessee shall diligently till, cultivate, and farm said Leased Premises for the purposes set forth hereinabove, in a proper and farmer-like manner and in accordance with good and approved cropping practices. 8. Lessee of the Hartnell College property, parcel APN , shall abide by all and any regulatory reporting related to the agricultural operations of the said property. 9. WATER AND WATER SYSTEMS. A. Lessee shall, at its own cost and expense, service and maintain in good condition (as limited in Subparagraph C) any and all wells, pumping plants, pumping equipment, pipelines, ditches, and canals now situated on or serving the Leased Premises. Lessor may at any time make such major repairs to such pumping plant and equipment as in its judgment may be necessary or desirable, but Lessor shall be under no obligation to make such repairs and shall not be liable for any failure or shortage of water or for the flooding of the Leased Premises from any cause whatsoever, except that rental shall be abated to the extent that such failure or shortage shall interfere with Lessee s use of the real property. B. Lessee expressly acknowledges that Lessor has made no warranty and no warranty shall be implied by reason of any term of this Lease concerning the availability or sufficiency of water for use upon the Leased Premises; nor has Lessor made any warranty concerning the sufficiency of wells, pumping plants, canals, pipelines, or any other irrigation equipment for provision of water to the crops or the dwellings upon the Leased Premises; nor has Lessor made any warranty concerning the sufficiency of any provisions for the control of flooding of the Leased Premises. C. In regard to wells and pumping plants on said premises, Lessee will take care of all repairs above ground level and Lessor will take care of all repairs below ground level. In the event below ground repairs are necessary, Lessor agrees to effect repairs in the most expeditious manner possible. If the below ground repairs are paid for by Lessee, Lessor agrees to reduce lease payments in the amount of the below ground repair cost. Page 2 of 9

9 9. TAXES AND UTILITIES. A. Lessee shall promptly pay any and all taxes assessed against the property of Lessee located upon the Leased Premises. In addition, in the event this Lease creates a possessory interest subject to property taxation, Lessee shall be solely and exclusively responsible and liable for payment of such possessory interest tax pursuant to Revenue and Taxation Code Section B. Lessee shall promptly upon demand reimburse Lessor one hundred percent (100%) for light, power, and other utility services furnished to the Leased Premises. 10. INSURANCE. A. During the full term hereof, Lessee shall, at its sole cost and expense, procure and maintain public liability and property damage insurance with liability limits of not less than $1,000,000 per person and $1,000,000 per occurrence, and property damage limits of not less than $1,000,000 per occurrence, with an aggregate coverage of not less than $1,000,000 insuring against all liability of Lessee and its authorized representatives arising out of and in connection with Lessee s use of the Leased Premises. B. All insurance required by this Lease shall be issued by insurance companies authorized to do business in the State of California, be issued as a primary policy, and contain an endorsement requiring not less than thirty (30) days written notice from the insurance company to both parties before cancellation or change in the coverage, scope, or amount of any policy. Lessee shall deposit with Lessor a certificate of each policy, together with evidence of payment of premiums, at the commencement of the term of the Lease and on renewal of the policy not less than ten (10) days before expiration of the term of the policy. C. In addition, Lessee shall secure payment of workers compensation insurance in compliance with the provisions of the Labor Code of the State of California and during the full term of this Lease will continue to provide workers compensation insurance for all of Lessee s employees. 11. INDEMNITY. Lessee shall hold harmless and indemnify Lessor, its governing board, officers, employees, and authorized representatives from any and all claims for injury to persons or damage to property on or about the Leased Premises from whatsoever cause by whomsoever asserted, or howsoever arising, except for such claims caused by Lessor or the agents of Lessor. Lessee shall defend, at its own expense, cost, and risk, any and all actions, suits, or other proceedings that may be brought or instituted against Lessor, its governing board, officers, employees, or authorized representatives, on any such claim for which Lessee holds harmless and indemnifies Lessor. Lessee shall pay or satisfy any judgment that may be rendered against Lessor, its governing board, officers, employees, or authorized representatives, in any action, suit, or other proceedings as a result thereof. Page 3 of 9

10 12. COMPLIANCE WITH APPLICABLE LAWS, REGULATIONS, AND AGREEMENTS. Lessee shall use the Leased Premises in strict compliance with all laws, statutes, ordinances, rules, regulations, and orders of federal, state, or county governments, or of any agency thereof which may be applicable to the Leased Premises or the use or occupancy thereof. Lessee, upon Lessor s request shall conform with and abide by all plans, restrictions, and regulatory provisions under any existing or future crop production, marketing, or control measures, and shall execute all necessary documents in connection therewith. Lessee shall not, without the prior written consent of Lessor, enter into any soil conservation, acreage reserve, or cropping plan or agreement affecting the Leased Premises, whether proposed in accordance with governmental authority or by private agreement. 13. LESSOR S RIGHT OF ENTRY. Lessor, its agents, or representatives shall have the right, at all times, to enter upon the Leased Premises, to inspect the same or any crops growing or harvested thereon or being removed therefrom, or pursuant to any of the rights reserved to Lessor hereunder or for the protection of Lessor s interest in the Leased Premises, the improvements thereon, appurtenances thereto, crops, produce, or equipment located thereon. Lessee shall supply Lessor and its agents or representatives with keys or other instruments necessary to affect entry on the Leased Premises. 14. LESSOR S RIGHT TO CURE LESSEE S DEFAULTS. If Lessee should fail to pay any charges, tax, or other amounts herein required to be paid by him when due, or in the event that Lessee fails to pay any sums required to be paid hereunder to protect Lessor s interest herein, the same may be paid by Lessor and all sums so expended by Lessor shall immediately become due and payable from Lessee and shall bear interest until paid at the rate of ten percent (10%) per annum. 15. LESSOR S SECURITY INTEREST. There is hereby created a security interest to secure the payment of all indebtedness of Lessee to Lessor which may become due hereunder, whether for rentals, for monies advanced, for expenses incurred, or any other consideration, together with all interest thereon. Said security interest shall be a charge on all crops and produce grown upon the Leased Premises and upon such domestic animals and farm equipment as Lessee may place upon said premises during the term hereof; and no part of such crops or produce, nor any such domestic animals or farm equipment, shall be removed from said premises until all such indebtedness shall have been paid in full. Whenever Lessor shall so demand, Lessee shall execute and deliver to Lessor a promissory note secured by an appropriate form or forms of security agreement as security for the payment of such indebtedness. 16. DEFAULT. The occurrence of any of the following shall constitute default under the Lease: A. Default in the performance of any covenant or agreement herein contained with reference to the payment of rent and such default continues for five (5) days after written notice thereof, or should Lessee default in the performance of any covenant or agreement herein Page 4 of 9

11 other than the payment of rent and such default continues, without diligent effort to cure it, for thirty (30) days after written notice thereof; B. The appointment of a receiver to take possession of the Leased Premises or of all, or substantially all, of the assets of the Lessee; C. A general assignment by Lessee for the benefit of creditors; D. The levy of any lien, writ of attachment, garnishment, execution, or distraint on all or any portion of Lessee s rights or interest under this Lease which is not removed within forty-five (45) days; E. Any action taken or suffered by Lessee under any insolvency or bankruptcy act which shall in any way hinder or prevent the prompt and continuous payment of rental due hereunder, or which shall in any way disable Lessee from so paying said rental or applying his assets to such payment. 17. LESSOR S REMEDIES. A. CONTINUATION OF LEASE. Upon default of this Lease by Lessee, Lessor may, without notice to Lessee, elect to allow this Lease to continue in full force and effect and to enforce all of Lessor s rights and remedies hereunder, including, without limitation, the right to collect rent as it becomes due, as long as Lessor does not terminate Lessee s right to possession of the Leased Premises. The following acts by the Lessor shall not constitute a termination of Lessee s right to possession of the Leased Premises: property; or 1. Acts of maintenance or preservation or efforts to re-let the 2. The appointment of a receiver on initiative of Lessor to protect his interest under this Lease. B. TERMINATION OF LEASE. Upon default of this Lease by Lessee, or at some later date a default has occurred and is continuing and Lessor has not theretofore elected to terminate Lessee s right to possession, Lessor may elect to terminate Lessee s right to possession and may take possession of all crops, harvested or unharvested, and may remove all persons and property from the said premises; Lessor may store the property removed in a public warehouse or elsewhere at Lessee s expense and for his account. Lessor, at his sole election, shall become the owner of all crops of which he has taken possession, without being obligated to compensate Lessee for them. If Lessor so elects to terminate Lessee s right to possession, this Lease shall thereupon terminate and Lessee shall pay to Lessor: 1. All amounts, including but not limited to unpaid rent, owing under this Lease at the time of such termination, and the amount by which such rent and other sums due between such time of termination and the time paid or a court award, whichever is earlier, exceed the amount of such loss that Lessee proves could have been reasonably avoided by Page 5 of 9

12 Lessor, plus interest on all such amounts at the rate of ten percent (10%) per annum from the date due; 2. The present value of the amount by which the rent and other sums payable under this Lease for the balance of the term after the time paid or the time of a court award, whichever is earlier, exceed the amount of such loss that Lessee proves could be reasonably avoided by Lessor. Such present value shall be computed by discounting such amount at the rate of one percent (1%) plus the discount rate of the Federal Reserve Bank of San Francisco at the time of payment or award, whichever is earlier; 3. Any and all costs or expenses which Lessor may incur as a result of Lessee s breach including costs and expenses in attempting to re-let, including, but not limited to, reasonable expenses in retaking possession of the property, reasonable legal expenses, attorneys fees and brokerage fees, and reasonable costs of alteration to the Leased Premises in connection with re-letting; and 4. Any other amount to compensate Lessor fully for all detriment proximately caused by Lessee s failure to perform its obligations hereunder or which in the ordinary course of things would likely result therefrom. Efforts by Lessor to mitigate the damage caused by Lessee s default of this Lease shall not waive Lessor s right to recover damages hereunder. The foregoing rights shall be concurrent and cumulative, and in addition to, and not in derogation of, all other rights and remedies available to Lessor. 18. SURRENDER AND HOLDING OVER. Upon expiration of the term hereof or sooner termination of this Lease, Lessee shall surrender and deliver up possession of the Leased Premises in good condition, reasonable wear and tear and damage by act of God excepted. Any holding over by Lessee after expiration of the term hereof shall be deemed to be upon month-tomonth tenancy at the rental of $ for each month thereafter. Lessee hereby waives any rights it may by reason of Section 1161, subdivision 2, of the Code of Civil Procedure of the State of California. 19. ASSIGNMENT AND SUBLETTING. Lessee shall not assign this Lease or any part thereof, or sublet the Leased Premises, without the prior written consent of Lessor; nor shall Lessee s interest be assignable by operation of law without such prior written consent; provided that such consent shall not be unreasonably withheld but Lessee shall remain liable hereunder notwithstanding such assignment or subletting. Any such assignment or subletting without such consent shall be void and, at the option of Lessor, shall forthwith terminate this Lease but Lessee shall remain liable hereunder notwithstanding any such assignment or subletting. 20. ATTORNEYS FEES. If suit be commenced by Lessor to enforce any of the terms hereof or Lessor s rights hereunder, or to obtain possession of the Leased Premises, and should Lessor prevail in said action in whole or in part, Lessee shall pay reasonable attorneys fees as fixed by court incurred by Lessor in connection with such action. Page 6 of 9

13 21. WAIVER. No express or implied waiver by Lessor of any default hereunder shall in any way be, or be construed to be, a waiver of any future or subsequent default of Lessee or a waiver of any of the rights of Lessor under the terms hereof. 22. NOTICES. Any notice required or permitted to be given hereunder shall be deemed given three (3) days after deposit thereof in the United States mail, first class postage prepaid, and addressed to the appropriate party as follows, or at such other address as may have been given by that party to the other during the term of the Lease: To Lessor: Hartnell Community College District Vice President of Administrative Services 411 Central Avenue Salinas, CA To Lessee: of this Lease. 23. MISCELLANEOUS. A. TIME OF ESSENCE. Time is of the essence of each and every provision B. EXHIBITS. All exhibits referred to are attached to this Lease and incorporated by reference. C. CALIFORNIA LAW. This Lease shall be construed and interpreted in accordance with the laws of the State of California. D. INTEGRATED LEASE. This Lease contains all of the agreements of the parties and cannot be amended or modified except by a written agreement executed by the parties. E. CAPTIONS. The captions of this Lease shall have no effect on its interpretation. F. SEVERABILITY. The unenforceability, invalidity, or illegality of any provision shall not render the other provisions unenforceable, invalid, or illegal. G. NEGATION OF PARTNERSHIP. Lessee shall not be deemed a portion or joint venture partnership, association, or agency with Lessee by reasons of the provisions of this Lease. // // // // // // Page 7 of 9

14 IN WITNESS WHEREOF, the Board of Trustees of the Hartnell Community College District and have caused this East Campus Farmland - Agricultural Lease Agreement to be duly executed by their respective authorized representatives on the day and year first above written. LESSOR: HARTNELL COMMUNITY COLLEGE DISTRICT By: (signature) LESSEE: By: (signature) Willard Lewallen, Superintendent/President Date Printed Name and Title Date Page 8 of 9

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