23-10054-000_RFP_Final.pdf

Department of State Hospitals RFP Number: 23-10054-000

Grazing Management/Farming Services

THE STATE OF CALIFORNIA

THE DEPARTMENT OF STATE HOSPITALS

REQUEST FOR PROPOSAL (RFP)

23-10054-000

NOTICE TO PROSPECTIVE BIDDERS

FOR AGRICULTURAL GROUND LEASE AT:

DEPARTMENT OF STATE HOSPITAL-ATASCADERO

10333 EL CAMINO REAL

ATASCADERO, CA 93422

ADVERTISEMENT OF SOLICITATION: May 1, 2024 through May 17, 2024

MANDATORY WALK-THROUGH RSVP May 6, 2024, by 12 NOON

MANDATORY WALK-THROUGH May 9, 2024, at 11 A.M.

QUESTIONS & ANSWERS May 1, 2024 through May 13, 2024

SUBMISSION DUE DATE: May 17, 2024

RFP CONTACT NAME: MICHELLE ZUNIGA

CONTACT ADDRESS:

DEPARTMENT OF STATE HOSPITAL-ATASCADERO

GENERAL SERVICES

10333 EL CAMINO REAL

ATASCADERO, CA 93422

TELEPHONE NUMBER: (805) 468-3399

EMAIL ADDRESS: MICHELLE.ZUNIGA@DSH.CA.GOV

Prepared by:

Michelle Zuniga General Services Date: May 1, 2024

TABLE OF CONTENTS

Section Page

Request for Proposal Cover…………………………………………………………………... 1

Table of Contents………………………………………………………………………………. 2

I. Introduction…………………………………………………………………............ 3-4

II. Project Scope………………………………………………………………………. 4-6

III. Bidder Instructions………………………………………………………………….

IV. Proposed Time Schedule…….……………………………………………………

V. Proposal Instructions………………………………………………………………. 7-10

1) Submission of Proposal...…………………………………………………. 8

2) Disposition of Proposal……………………………………………………. 8

3) Agreement Execution and Performance………………………...……….

4) RFP Proposal Requirements……………………………………………...

5) Executive Order N-6-22 – Russia Sanctions…………………………….

6) Generative Artificial Intelligence (GenAI)………………………………...

9-10

VI. Proposal Evaluation…………………………………………………………..…… 11

1) Proposal Scoring Criteria……………………………………………….… 11

2) Scoring Methodology……………….………………………………………

3) List of Attachments……………...………………………………………….

I. INTRODUCTION

The California Department of State Hospitals (DSH), referred to as “State”, welcomes grazing management and farming services lease proposals for approximately 237.05 acres at Department of State Hospitals – Atascadero (DSH-A).

The DSH identified State-owned land available for farming activities at DSH-A. The State’s previous land-use supported non-irrigated crops and grazing. The DSH-A land available for farming is identified in “Attachment A”. This opportunity requires Bidders to submit a “Sustainable Land Management Plan” (SLMP), the terms of which are negotiable provided the plan includes farming and land management activities on all DSH-A open space. Bidders are not required to lease the DSH-A Open Space in its entirety, but the SLMP must identify DSH-A Open Space as being managed and maintained by the Lessee.

A Bidder will be considered a “Qualified Bidder” after meeting all the Bidder requirements outlined in this RFP including, but not limited to, following instructions for submission, meeting established timelines, attending the mandatory walk-through, and providing a SLMP that identifies how the Lessee will: manage the DSH-A Open Space in its entirety to eliminate maintenance and weed abatement costs for DSH.

The State requires the Lessee to provide comprehensive, sustainable land management, Land management shall include weed abatement for fire control on all DSH-A Open Space, whether farmed, grazed, vacant, leased, or not leased.

The Qualified Bidder must:

1) Have the authority to enter into a ground lease agreement with the State of California on the State’s property.

2) Obtain all necessary permits from the appropriate agencies for the proposed operations.

3) Provide and maintain all equipment required to plant, cultivate, irrigate, and harvest crops.

4) Maintain and repair irrigation infrastructure, including but not limited to pipes and other infrastructure necessary for the proposed operations.

5) Mitigate fire risks by initiating fire safety and risk mitigation practices including equipment safety training, implementing operational safety standards, conducting weed abatement, and other land maintenance activities.

Please take the time to carefully read the proposal requirements. In submitting proposals, Bidders must comply with the instructions herein. All proposals submitted for consideration must be received by the date specified on the cover page labeled “SUBMISSION DUE

DATE” MAY 17,2024.

If part of the “Sustainable Land Management Plan” includes livestock grazing, Bidders must include an overview of the grazing operation and provide a livestock management plan as an attachment to their bid.

Submittals and other materials submitted will not be returned. All submittals will become public records upon bid award. If a submittal includes proprietary information exempt from public disclosure, it should be clearly designated as such so that a claim of exemption may be made in response to a public disclosure request. No assurances can be given, however, that any information so designated would not ultimately be deemed subject to public disclosure. The State reserves the sole right and privilege to judge the responses to the Bidders’ RFPs based on evaluation criteria, and to accept a submittal or to reject any or all submittals. The State also reserves the right to cancel in whole or in part this RFP and to waive immaterial defects and minor irregularities in submittals. This RFP is not a contract or a commitment of any kind on the part of the State and does not commit the State to award. In no event shall the State be responsible for any real estate brokerage fees.

II. PROJECT SCOPE

DSH desires to enter into a ground lease, terms and conditions identified in “Attachment C”, Sample Ground Lease, with a Lessee who will cultivate and harvest crops on the DSH-A Open Space that comply with the water quality available to the Lessee. The State’s previous land-use supported non-irrigated crops. The lease terms will include parameters outlining the Lessee’s sustainable land management activities as outlined in the SLMP at the entirety of the DSH-A Open Space, whether farmed or not, and other ancillary operations indicated by the winning Bidder in their bid, such as grazing.

The DSH, under the authority of DGS, shall engage the winning Bidder in a ground lease “Lease” arrangement at the following property:

CALIFORNIA DEPARTMENT OF STATE HOSPITAL–ATASCADERO (DSH-A)

10333 EL CAMINO REAL

ATASCADERO, CA 93422

Minimum Conditions

DSH will accept offers for a ground lease that meet the following minimum conditions:

A. The Lease Term is negotiable for up to five (5) years, beginning with a three (3) year term, and includes two one (1) year options to renew with rights by either party to terminate for cause. The State will retain a right to early termination without cause.

Exercise of the State’s early termination right will take Lessee’s crop activities, including growing and harvesting into consideration. This lease is expected to commence on or about May 15, 2024.

B. Awarded Bidder is required to comply with all State Water Resources Control Board regulations and notices, including notifications of water unavailability due to droughts.

C. Bidders understand that the amount of acreage available to farm is approximately

237.05 acres. This acreage would be secured by the Bidder via a ground lease agreement with the State of California through the DGS with DSH consent.

D. Awarded Bidder is required to farm and/or manage DSH-A Open Space in its entirety, including but not limited to best farming practices for crop type, rotations, soil nutrients, weed abatement, flood, fire, and pest control.

E. Awarded Bidder is required to provide land maintenance and management activities upon all open space whether farmed, not farmed, leased or not leased. Land maintenance and management activities will be considered a benefit to the State and consideration will be made for this benefit as part of the rent valuation.

Site Considerations

A. DSH Open Space is adjacent to solar array field.

B. Solar array field located on-site.

C. DSH-A is a State-owned, operational, secure forensic mental facility. The DSH-A open space is adjacent to the DSH-A mental facility.

D. This property is adjacent to neighboring farmlands which may conduct farming, grazing, and/or other activities.

III. BIDDER INSTRUCTIONS:

A. Mandatory Walk-Through:

A mandatory walk-through is scheduled for May 9, 2024 at the time and location shown on the cover sheet, Page 1. During the walk-through the Bidders shall investigate conditions, character, and quality of the ground lease premises and water infrastructure to identify challenges and obstacles that might interfere with the Bidder’s ability to lease the property. Bidders will have the opportunity to submit questions they wish to be addressed during the walk-through. To participate in the Mandatory Walk-Through, Bidders MUST RSVP by emailing Michelle Zuniga by May 6, 2024, before 12 PM:

Michelle.Zuniga@dsh.ca.gov

B. Bidders seeking clarification of this solicitation’s requirements may submit questions to the Michelle Zuniga at DSH. All inquiries must be received via email to Michelle.Zuniga@dsh.ca.gov no later than May 13, 2024, regardless of postmark. If the inquiries are emailed, then the time and date on the email must not be later than the due date.

mailto:Michelle.Zuniga@dsh.ca.gov mailto:Michelle.Zuniga@dsh.ca.gov

C. Questions, suggestions, or objections regarding the content of this solicitation submitted after May 13, 2024, shall be deemed waived and may not be raised at a later time.

D. Oral communications with the DGS and DSH officers and employees shall be non-binding on the State and shall in no way exclude the Bidder of any obligations as set forth in this package.

E. All questions or inquiries regarding this solicitation shall be submitted using the contact information provided on the cover page.

F. E-mails should be clearly marked “Questions Relating to RFP 23-10054-000 DSH-A Grazing Management/Farming Services in the Subject line of the email.

[Remainder of Page Intentionally Left Blank]

IV. Proposed Time Schedule

It is recognized that time is of the essence. All Bidders are hereby advised of the following proposed time schedule and will be expected to adhere to the required dates and times.

Event Start Date End Date

RFP Posted on Cal e-procure and available to prospective Bidders 5/1/24 5/17/24

Question and Answer Period 5/1/24 5/13/24 Mandatory Bid Walk-Through RSVP 5/6/24 by NOON Mandatory Bid Walk-Through 5/99/24 at 11 a.m.

Final Date to Submit Bids 5/17/24 @ 2:00 p.m.

Bid Opening by State TBD Award Bid TBD Commencement of Lease Agreement TBD

Note: The Proposed Time Schedule is subject to change upon the STATE’s discretion.

V. PROPOSAL INSTRUCTIONS:

1) Submission of Proposal:

a) Bidders must submit two (2) copies of the proposal. All original proposals must be submitted by the date shown on the cover sheet under sealed cover to the following address:

Department of State Hospitals - Atascadero General Services 10333 El Camino Real Atascadero, CA 93422 Attn: Michelle Zuniga

The sealed cover must be plainly marked with the title “RFP 23-10054-000 DSH-A Grazing Management/Farming Services”, must show your firm name and address, and must be marked with “DO NOT OPEN”. Proposals not submitted under sealed cover may be rejected.

b) Please submit two (2) individual copies of the proposal. The proposals must be submitted in an organized manner. Each individual copy should include tabbed sections that match the sections identified in the Table of Contents. EACH

PROPOSAL MUST BE BOUND, PLACED IN A BINDER, OR STAPLED.

c) All prospective Bidders must complete Form CCC-307 (Contractor Certification Clauses), labeled “Attachment D” attached hereto and made a part hereof, and include the form in the bid package.

d) All documents requiring a signature must bear an original signature of a person authorized to bind the bidding firm.

e) Costs incurred for developing proposals and in anticipation of award of the agreement are entirely the responsibility of the Bidder and shall not be charged to the State.

f) A Bidder may modify a proposal after its submission by withdrawing its original proposal and resubmitting a new proposal prior to the proposal submission date, April 26, 2024.

Bidder modifications offered in any other manner, oral or written, will not be considered.

g) A Bidder may withdraw its proposal by submitting a written withdrawal request to the

State prior to the proposal submission due date, April 26, 2024, signed by the Bidder or an authorized agent. A Bidder may thereafter submit a new proposal prior to the proposal submission due date, April 26, 2024. Proposals may not be withdrawn without cause after the proposal submission due date.

h) The State reserves the right to modify the RFP prior to the proposal submission due date. In the event the State modifies the RFP, it will issue an addendum to all parties who received a Proposal Package. Time periods will be extended and identified in the addendum.

i) The awarding agency, DSH, reserves the right to reject all proposals. The agency is not required to award an agreement.

j) Before submitting a response to this RFP, prospective Bidders should review, correct all errors, and confirm compliance with the RFP requirements.

k) All agreements between State and other parties must be in writing and no oral understanding or agreement shall be binding on either party.

2) Disposition of Proposal:

On the bid opening date, all documents submitted in response to this RFP will become the property of the State of California and will be regarded as public records under the California Public Records Act (Government Code Section 6251 et seq.) and subject to review by the public.

3) Agreement Execution and Performance:

Following lease execution, Awarded Bidder will have the right to access the leased premises, obtain approvals and permits necessary for the Lessee’s operation, begin work, set up operations, and utilize water rights identified in this RFP. Should the Awarded Bidder fail to commence work at the time negotiated in the lease, the awarding agency, upon five (5) days’ written notice to the Awarded Bidder, reserves the right to terminate the agreement and award the contract to the next highest Bidder.

4) RFP Proposal Requirements:

a) Clarity and Organization of the Proposal

b) Business Plan: Prepare a business plan indicating your intent to adhere to the State’s interests as stated in the Introduction and Project Scope of this RFP. Bidders business plan must describes the overall agricultural operation, including the SLMP, and Bidders approach which identifies specific techniques and methodologies that will be used, in addition to the corresponding expertise to farm and maintain agricultural land. If livestock grazing is planned, the Bidder must include Bidders grazing plan. The business plan should be signed by the individual authorized to bind the firm.

c) Copy of legal documents:

a. At least one of the following documents is required:

1. Fictitious Business Name Statement (unless not required by law).

2. Corporate filing with the Secretary of State (unless not required by law).

3. Business License.

b. Any additional permits required by law.

d) Copy of financial documents: Letter of credit, or an intent to issue a letter of credit if awarded, from a financial institution (minimum $10,000.00) or a bank statement referencing liquid assets in the amount of $10,000.00 or more.

e) Qualifications: Provide qualifications showing experience in farming and sustainable land management.

7) Executive Order N-6-22 – Russia Sanctions:

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals.

“Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. By submitting a bid or proposal, Contractor represents that it is not a target of Economic Sanctions. Should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities that shall be grounds for rejection of the Contractor’s bid/proposal any time prior to contract execution, or, if determined after contract execution, shall be grounds for termination by the State.

8) GENERATIVE ARTIFICIAL INTELLIGENCE (GenAI):

a) The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

b) Bidders/Offerors must notify the State in writing if their solution or service includes, or makes available, any GenAI technology, including GenAI from third parties or subcontractors.

c) The State has developed a GenAI Disclosure & Factsheet to be completed by the Bidder/Offeror.

d) Failure to disclose GenAI to the State and submit the GenAI Disclosure &

Factsheet will result in disqualification of the Bidder/Offeror and may void any resulting contract. The State reserves its right to seek any and all relief it may be entitled to as a result of such non-disclosure.

e) Upon receipt of a Bidder/Offeror GenAI Disclosure & Factsheet the state reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the state.

[Remainder of Page Intentionally Left Blank] https://www.documents.dgs.ca.gov/dgs/fmc/pdf/std1000.pdf

VI. PROPOSAL EVALUATION:

1) Proposal Scoring Criteria:

a) Clarity and Organization of the Proposal

b) Business Plan

c) Copy of Legal Documents

d) Copy of Financial Documents

e) Qualifications

The STATE will evaluate each proposal to determine its responsiveness to the published requirements. Proposals that contain false or misleading statements or which provide references that do not support an attribute or condition claimed by the Bidder may be rejected.

RFP REQUIREMENTS Points

Available Points

Awarded Clarity and Organization of Proposal:

The proposal is presented in a clear, organized manner that facilitates the evaluation process.

Business Plan:

Prepare a business plan for the proposal indicating your intent to adhere to the STATE’s interests as stated in the Introduction and Project Scope of this RFP.

Bidder’s business plan should describe the overall approach including identifying specific techniques and methodologies that will be used in the SLMP, including the corresponding expertise to maintain agricultural land. The business plan should be signed by the individual authorized to bind the firm.

Copy of Legal Documents (minimum of one required):

a. Fictitious Business Name Statement (unless not required by law)

b. Corporate Wiling with Secretary of State (unless not required by law)

c. Business License

d. Any additional permits required by law

Copy of financial documents:

Letter of credit, or an intent to issue a letter of credit if awarded, from a financial institution (minimum $10,000.00) or a Bank Statement referencing liquid assets in the amount of $10,000.00 or more.

Qualifications 100

TOTAL POINTS Maximum

Available

SCORE

2) Scoring Methodology:

% Points Awarded

Interpretation General Basis for Point Assignment

0 - 25% Inadequate The proposal fails to address the requirement(s) being scored or the Bidder does not describe any experience related to the requirement(s). The omission(s), flaw(s), or defect(s) are significant and unacceptable.

26 - 50% Adequate The proposal does not fully meet State’s needs, requirements, or expectations. Any omission(s), flaw(s), or defect(s) are inconsequential and acceptable.

51 - 75% Good The proposal meets State’s needs, requirements, or expectations including State’s desired water use and acceptable maintenance practices for all CAL open space.

76 - 100% Excellent The proposal fully meets State’s needs, requirements, and expectations. Bidder’s SLMP provides State with confidence in the Bidder’s ability to successfully manage the CAL open space. The Bidder exceeds the State’s expectations by exhibiting extensive experience and providing a creative land management approach or a comprehensive SLMP within its business plan.

The Proposal Evaluation Criteria listed identifies the total number of points available for each requirement. Using the Scoring Methodology, the evaluation team will determine the percentage of points to be awarded to each requirement, and multiply that percentage by the total number of points available for that requirement to determine the score. For each technical scoring criterion, numbers will be rounded up or down to a full digit (e.g., 4.5 will be rounded up to 5, and 4.4 will be rounded down to 4).

[END]

LIST OF ATTACHMENTS

Attachment A - Farmable Land

Attachment B - Sample Ground Lease

Attachment C - Form CCC-307 (Contractor Certification Clauses) Standard Contract Language (ca.gov)

Attachment D - GENERATIVE ARTIFICIAL INTELLIGENCE (GenAI) STD 1000 Generative Artificial Intelligence (GenAI) Disclosure & Factsheet (ca.gov) https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language

STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES

REAL ESTATE SERVICES DIVISION

Grazing – Atascadero Page 1 of 21 Lease No. L-____

GRAZING AND AGRICULTURAL GROUND LEASE

This Lease Agreement, hereinafter referred to as “Lease”, dated for reference purposes only, , by and between the State of California at the direction of the Department of State

Hospitals (DSH) and Atascadero State Hospital (DSH-Atascadero), acting by and through the Director of the Department of General Services (DGS), hereinafter collectively referred to as “State”, and [Insert company name], a California Corporation, hereinafter referred to as “Lessee”. State and Lessee may also be referred to as “Party” or “Parties”.

RECITALS

WHEREAS, pursuant to Section 14670(a)(1) of the Government Code, the DGS with the consent of the State agency concerned, may Lease real property owned by the State for a period not to exceed five (5) years; and

WHEREAS, DSH has under its jurisdiction certain real property located at 10333 El Camino Real, City of Atascadero, County of San Luis Obispo, State of California commonly referred to as the Department of State Hospitals – Atascadero (DSH-Atascadero); and

WHEREAS, WHEREAS, it is in the best interests of the State that such a Lease be consummated between the State and Lessee on the terms and conditions herein contained

NOW THEREFORE, the parties agree to the provisions of the Lease set forth herein as follows:

Section 1: Site Specific Provisions Section 2: Building Specific Provisions Section 3: Standard Provisions

Location of Leased Premises:

Atascadero State Hospital 10333 El Camino Real Atascadero, California 93423

Lease No.: TBD

Agency:

Department of State Hospitals Real Property No: 788 SPI No: TBD

Lessee: TBD

Attachment B

SECTION 1 –SITE SPECIFIC PROVISIONS

Grazing – Atascadero Page 2 of 21 Lease No. L-____

WITNESSETH:

PROPERTY

DESCRIPTION

1. State does hereby lease to Lessee and Lessee hereby hires from State, an area of approximately 237.05 acres of land situated within the Department of State Hospitals - Atascadero, County of San Luis Obispo, State of California, hereinafter referred to as Premises, as outlined on the attached map, referenced as Exhibit “A” and more particularly described as Parcels 1 through 5 as approximate size areas as follows:

Parcel 1: 35.02 acres Located south of the main buildings and the hospital staff residence area, bound north by a fence along the road, northeast by railroad tracks, south and southeast by county road (Halcon Rd.), southwest by Paloma Creek Park, west by perimeter fence adjacent to apartments and mobile home park. Parcel shall be used by Lessee for non-irrigated crops and grazing.

Parcel 2: 69.07 acres Located north and east of the hospital, bound north and east by Salinas River, west by railroad tracks, southeast and northwest by hospital property lines. State relinquishes the use of all farm buildings located within the boundaries of this Parcel. State reserves the use of all residences located within the boundaries of this Parcel. State retains the right of access to the hospital wells and booster pump located within the boundaries of this Parcel to perform any necessary maintenance and/or expansion of the percolation ponds, if needed.

The portion of the parcel from the hospital property line on the southwest to the fence north of farm residences, will be used for growing hay and grain only. The 22-acre portion northwest of the fence will be used for grazing, growing hay or grain only.

Parcel 3: 79.14 acres Located in the middle of the DSH-Atascadero property. Bound on north and east by railroad tracks, south by the hospital road and southwest by a perimeter fence.

Bound on the west by chain link fence at the golf course. Excludes any access to the fenced in solar PV system and State’s water reservoir within Parcel 3. State reserves the right to have continual access to reservoir. Grazing of livestock next to effluent ponds will be controlled by hospital to provide protection to hospitals sewage system. This parcel is for grazing only.

Parcel 4: 32.12 acres Located west of Blankenship Park and west of the Antenna Farm. Bound on the north by Musselman Avenue, east by picnic area, west by El Camino Real and on the south by property fence line near apartments.

Excludes hospital signs, roads, and an area .68 acres in size near the picnic area which will be the sight of the DSH temporary kitchen. Parcel is to be kept weed free and in good repair due to exposure to general public. This parcel may be used for dryland farming.

Grazing – Atascadero Page 3 of 21

PROPERTY

DESCRIPTION

(CONT)

Parcel 5: 21.7 acres Located west / northwest of the main hospital buildings. Bound on the south by the picnic area, east by the creek, northeast by the road, north by the fence and on the west by the chain link fence at the golf course and Heilman Park. Parcel is to be used for grazing only and excludes a 50’ x 150’ area known as the “Antenna Farm”.

USE 2. The Premises shall be used by Lessee during the Term hereof for the purpose of grazing livestock and the growing of hay and/or grain as indicated in the “Description Paragraph” above and for no other purposes whatsoever.

TERM 3. The term of this Lease shall be for five (5) years, commencing ________, and ending __________, with such rights of termination as are hereinafter expressly set forth.

RENT

PAYMENTS

4. Rent shall be paid monthly, in advance, by Lessee to State within ten (10) days of the month during the term of this Lease with annual increases of three percent (3%) as set forth below (rounded to nearest dollar):

Begin Date End Date Payment

Lessee’s payments shall display State’s Lease Number L-TBD and shall be mailed to the following address:

Department of General Services Attn: Accounts Receivable - (L-TBD) PO Box 989053 West Sacramento, CA 95798-9053

Lessee acknowledges that rent and past due rent shall be due and payable to State whether or not an actual invoice is sent by State or received by Lessee.

UTILITIES 5. Lessee agrees to pay said rent as herein provided and to pay any and all water, electric, gas and other utility charges or any other charges payable in connection with Lessee's use of said premises during the term of this Lease. No utilities will be provided by State and State assumes no liability for the existence or nonexistence of utilities.

Lessee shall comply with energy conservation measures, Governor’s Executive Orders, other orders required by law, or reasonably required by State as the result of a crisis of any kind.

REDUCTION IN

AREA

6. State, at its option, may reduce the size of the leased area at any time and for any reason by giving Lessee ninety (90) days written notice. Monthly rent due will be adjusted accordingly based on the current monthly rate divided by the number of acres.

Grazing – Atascadero Page 4 of 21

NOTICES 7. All notices or other communications required or permitted hereunder shall be in writing, with Lease Number L-TBD referenced, and sent by overnight courier, registered mail, certified mail or postage prepaid mail to the addresses set forth below. All such notices shall be deemed received on the date of delivery receipt or rejection to the address of the person to receive such notice if received Monday through Friday during business hours, so long as such day is not a State or Federal holiday or Saturday or Sunday then such notice shall be effective on the following business day.

Lessee: TBD Attn:

[Address] [City], CA [Zip Code Telephone: (__) _______ Email: TBD State: Department of General Services

Real Estate Services Division Lease Management, L-TBD 707 3rd Street, 5th Floor West Sacramento, CA 95605 Office: (916) 375-4172 Email: LeaseManagement@dgs.ca.gov

With Copies to: DSH – Atascadero General Services PO Box 7001 Atascadero, California 93423-7001 Phone: (805) 468-2201 Email: ASHGeneralServices@dsh.ca.gov

Notice of change of address or telephone number shall be given by written notice in the manner described in this section. Lessee is obligated to notice all State offices listed above and the failure to provide notice to all State offices shall constitute a lack of notice. Nothing contained herein shall preclude the giving of any such notice by personal service.

WATER AND

IRRIGATION

8. It is understood and agreed between the Lessee and State hereto, that State does not guarantee the availability, quality or quantity of water to the Premises. Lessee will be responsible to confirm available water if provided.

EQUIPMENT 9. Lessee agrees, at his sole cost and expense, to repair and to maintain in good operating condition any existing fencing, watering facilities, water pumps, including waterlines, barns, roads, buildings, or other improvements on the Premises or constructed upon the Premises by Lessee.

Lessee shall not interfere with State’s solar related transmission lines or cause shading of the solar facility located in the same general area as the grazing land.

Lessee shall be responsible for any damages to the solar transmission lines or the fence surrounding the solar site caused by Lessee or its operation.

mailto:LeaseManagement@dgs.ca.gov mailto:ASHGeneralServices@dsh.ca.gov

Grazing – Atascadero Page 5 of 21

AERIAL

APPLICATIONS

10. Aerial applications of any pesticides on the Premises shall be in compliance with the California Food and Agriculture Code (FAC), Section 12972 and Title 3, California Code of Regulations (3 CCR), Section 6614.

Lessee shall notify the Hospital Administrator in writing within three (3) business days in advance, of any aerial application and a completed Safety Data Sheet (SDS) shall accompany the notice. Lessee shall ensure that there will be minimal to no drift over the Hospital site adjacent to the subject Premises. Lessee shall insure that any aircraft used for aerial application will not encroach into the airspace of the DSH-Atascadero.

EARLY

TERMINATION

11. State and Lessee agree that either party may terminate this Lease at any time during the term hereof by giving written notice to the other party fifty (50) days prior to the date when such termination shall become effective. State reserves the right to terminate the Lease immediately if safety and security are at risk and mutual resolution cannot be agreed upon.

ANIMAL

HUSBANDRY

12. Lessee shall follow good grazing and animal husbandry management practices to preclude over-grazing. State may, at any time, make an analysis by an independent expert, as to whether an overgrazing condition exists. Such analysis will indicate over-grazed or under-grazed conditions and may include a determination of forage levels, at various times, during the yearly grazing period.

State shall have the right to require Lessee to move cattle to or from any area within the premises, where an over-grazing or under-grazing situation may exist, for a period of time consistent with the analysis. At the commencement of the lease term, information will be supplied to State, by Lessee, concerning the size and character of the herd. State may require the Lessee to report this data using the Animal Unit Month standard as specified by the State. Upon request by State, this information will be updated monthly and reported to the State, using the State’s established written reporting format, no later than 15 days from the end of the preceding month. If authorized in writing by State, supplemental feeding may be implemented. If supplemental feeding is utilized, distribution of feed will be such that livestock are not concentrated so as to cause damage to vegetation and soil.

WEED

BURNING/

MAINTENANCE

13. Any weed burning operations on the leased Premises will be carried out pursuant to local ordinances and at Lessee’s own cost and expense. Lessee will inform Hospital Administrator in advance of any weed burning operations.

Lessee agrees to maintain a weed free margin, a hundred (100) feet in width between the farmed area and all roads as indicted in attached map as Exhibit “A” by June 1st of each year.

FENCING

14. Lessee shall at Lessee’s sole cost and expense, provide and maintain in good repair at all times, necessary boundary fences to prevent trespass of livestock to adjacent property. State does not warrant the existence of required fences in and around the Premises. Such fences, corrals, and cross fences that are now installed may not be the property of State, and State does not warrant their availability for Lessee’s use. Lessee may, with prior approval of State, and at Lessee’s sole cost and expense, provide other fencing not inconsistent with State’s use of adjoining lands.

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FENCING

(CONT)

Such other fences so installed by Lessee shall remain the property of Lessee and shall be removed by Lessee upon termination of this lease, or with prior approval of State, such fences may remain in place, and shall become the property of State upon termination of this lease.

LIVESTOCK 15. All livestock brought or kept upon the Premises shall be free from disease. Lessee agrees immediately to bury or remove any livestock which may die or be killed on said Premises.

PROPERTY

DAMAGE

16. State, its agents or employees shall not be liable or responsible for any damage to crops, equipment, personal property, or persons on the leased Premises pursuant to this lease caused by acts of the patients of the DSH - Atascadero or by employees of said facility while in the performance of their duties in respect to such patients. Lessee understands that the leased Premises are part of a mental health facility and such possible damage or injury is one of the risks of occupancy. The said facility reserves the right to go on the leased Premises for search and to preserve law and order, or to perform any other act or acts necessary or advisable for the welfare of such patients.

Farming activities will be conducted hereunder only in a manner which will not interfere with the orderly operation of the Hospital.

GRANTS OR

CREDITS

17. Should Lessee apply for any grant or credit for the growing or non-growing of any crop, or the use or non-use of any water, or any other type activity on the leased area; Lessee shall notify State in writing prior to submitting any application for such grant or credit. Lessee is required to forward a copy of the submitted application to State for review prior to submittal to granting authority.

PROPERTY

INSPECTIONS

18. Lessee has visited and inspected the Premises and it is agreed that the area described herein is only approximate in size and State does not hereby warrant or guarantee the actual area included hereunder.

HOLDING OVER

& LEASE

RENEWAL

19. Any holding over after the expiration of the term of this Lease with the consent of the State, expressed or implied, shall be deemed to be a tenancy only from month-to-month. During hold over, Lessee’s rental rate shall, at the option of State, be adjusted to be consistent with the most current established rental rate for the premises, payable on a monthly basis in advance. Absent a market rate increase, the rent will increase at a rate of three percent (3%) annually. Said month-to-month tenancy shall be otherwise subject to all the terms and conditions of this Lease insofar as applicable.

State offers and Lessee accepts no assurance that the Premises or any other comparable space or facilities at the site described herein will be made available to Lessee beyond the term stated above or as said term is reduced as provided herein.

End of Section 1

SECTION 2 – GROUND LEASE SPECIFIC PROVISIONS

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1. PROPERTY RESTRICTIONS.

The following activities are strictly prohibited on the Premises:

(a) No hunting is allowed on Premises.

(b) The grazing of livestock shall not be under the terms of any sub-lease, as identified under Section 3, Clause 5, Subletting. Compliance to any and all local, State and Federal rules, laws and regulations of this practice must be strictly adhered to.

(c) Dumping of hazardous material or waste is strictly prohibited. No use or storage of any hazardous substance or chemical, as those terms are used in CERCLA (42 USC 9601.14) or SARA (42 USC 11021.e) or any similar State law, or use of any pesticide, oil, petroleum product or fuel; except only materials packaged and purchased for consumer use in containers not to exceed one (1) gallon, or fuel in a vehicle fuel tank.

(d) Use of pesticides should be minimized and will be applied only by authorized personnel and in accordance with all applicable laws, regulations and instructions. State does however reserve the right to disapprove the use of any pesticide.

(e) No accumulation, storage treatment or disposal of any waste material, excepting only temporary storage not to exceed 14 days, or non-hazardous solid refuse produced from activities on the property for pick up by a municipal or licensed commercial refuse service and lawful use of sanitary sewers (if any) for domestic sewage.

(f) No manufacturing or maintenance of equipment or vehicles, or use, installation or construction of vessels, tanks, dikes, sumps or ponds or any activity for which a license or permit is required from any government agency for (1) transportation, storage, treatment, or disposal of any waste (2) discharge of any pollutant including but not limited to discharge to air, water or a sewer system.

(g) Any spill or release of a hazardous material to the air, soil, surface water or ground water will be immediately reported to the State as well as to the appropriate governmental agencies and shall be promptly and fully cleaned up and the property (including soils and surface water and ground water) restored to its original condition.

(h) Should Lessee desire to use pesticides on the area (either herbicides, rodenticides or insecticides) all applicable Environmental Protection Agency (EPA) both State and Federal, standards must be met and prior approval must be received from State as not all EPA approved pesticides will be permitted.

(i) No aerial applications will be permitted without prior approval.

(j) Lessee shall obtain any and all local, state or federal permits required including:

restricted pesticide use permit and burning permits and comply with all conditions noted.

2. ACCESS TO PREMISES.

Only the Lessee, its properly qualified and authorized agents, employees, contractors, and Permitted Users shall have the right of ingress to and egress from said Premises.

3. REGULATION BY STATE.

State shall have the full power and right to determine and regulate the operations of the Lessee insofar as they affect the operations, safety, and effective use of State activities conducted at the same location.

(a) All contractors, agents, employees, representatives, or licensees of the Lessee shall be subject to the rules and regulations of the State as they relate to conduct on the

Grazing – Atascadero Page 8 of 21 grounds, security, and general use of facilities. Lessee will conduct its operations in such a manner so as to minimize any interference with the activities associated with the site.

(b) Lessee will comply with all facility rules and regulations adopted by said authorities in charge. No article or material deemed by said authorities in charge to be considered as contraband shall be brought on said real property. Contraband includes, but is not limited to, alcoholic beverages, possession or use of firearms, explosives or edged weapons, and restricted controlled substances.

Lessee's employees may be restricted from wearing certain types of clothing when on facility grounds when such apparel is determined by the Facility to constitute a conflict with its security needs.

Any willful violation of said rules and regulations are grounds for immediate termination of the Lease.

4. RIGHT TO ENTER.

During the term of this Lease, there shall be and is hereby expressly reserved to State and to any of its agencies, contractors, agents, employees, representatives or licensees, the right at any and all times, and any and all places, to temporarily enter upon said Premises for survey, inspection, or any other lawful State purposes.

5. IMPROVEMENTS & MODIFICATIONS.

Lessee at its sole cost and expense may, subject to the approval of State, from time to time during its tenancy of the Premises:

(a) Furnish, install and use at the Premises such improvements and property of whatsoever kind and nature as Lessee and State mutually deems necessary consistent with the purpose of this Lease as set forth in “Use” Section hereof.

(b) Improve the Premises in a manner consistent with the purposes of this Lease as set forth in “Use” Section hereof, and provided further that plans for the construction or enlargement of any improvement will be submitted to State in advance of such construction or enlargement, and will be subject to written approval by State. Such approval by State shall not relieve Lessee of the obligation of complying with any and all terms and conditions of this Lease; Lessee shall provide a minimum of thirty (30) days prior written notice of the construction to State.

(c) In making any excavation and/or installation of equipment on the Premises and/or easement areas, Lessee shall make the same in such manner as will cause the least injury to the surface of the ground around such excavation and/or construction, and shall replace the earth so removed by it and restore the surface of the ground and any improvement thereon to as near the same condition as they were prior to such excavation as is practicable.

6. DISPOSITION OF LESSEE’S PERSONAL

PROPERTY.

(a) During the term of this Lease, all personal property placed in, upon, or under the Premises by Lessee shall remain the property of Lessee and shall be removed by Lessee, at its sole cost and expense within thirty (30) days after expiration or termination of Lessee’s tenancy.

(b) Should Lessee fail to remove said equipment and personal property within thirty (30) days after expiration or termination of the Lease, State may do so at the risk of Lessee. Upon written demand by State, Lessee shall immediately pay all costs and expenses of the removal of Lessee’s personal property and equipment.

(c) Lessee may, however, with written consent of State, abandon in place any and all of Lessee’s equipment and personal

Grazing – Atascadero Page 9 of 21 property, whereupon, as abandoned, title to said improvements will vest in State.

(d) Upon termination of this Lease for any cause, Lessee shall remove any and all of Lessee’s equipment and personal property and restore the entire Premises to its condition prior to the execution of this Lease, except however, State may approve, in writing, any deviation from this requirement.

7. MAINTAINING PREMISES.

Lessee shall not cut or allow any other person to cut or carry off from said Premises any tree or wood; nor burn any stubble, grass, weeds or any substance growing upon said land, or any part thereof, without first having obtained the written consent of State; and Lessee expressly covenants and agrees to hold State free and harmless from all damage cause by fire resulting from the use or operation of said lands by Lessee or any of his or employees; and agrees that any damage done to any water pipe, water pumps, ditch, bridge or culvert, upon said lands by Lessee, or any of their agents or employees, shall be repaired at their own cost and expense. Any burning operations on the Premises will be carried on pursuant to local ordinances and at Lessee’s own cost and expense.

Lessee agrees to utilize optimum weed and pest management practices on the Premises in order to prevent any adverse impact on the adjacent properties.

All accessible ground included in the Premises is to be grazed, farmed or cultivated at a minimum of twice a year.

State reserves the right to request additional cultivation of the Premises in the event there is an increase in fire danger or security concerns.

8. CONDITION OF PREMISES.

It is acknowledged by all parties, that the Premises will be leased “as-is” with no guarantees as to the condition or quality of soil, water or irrigation system in any form. It is acknowledged that Lessee has been occupant at this site for more than five years and is fully aware of all material facts that relate to the condition of the Premises.

There will be no allowance as credit for work performed during the lease term without prior approval.

Lessee accepts the Premises as being in good order, condition and repair, and agrees that on the last day of the term, or sooner termination of this lease, to surrender up to State the Premises with any appurtenances or improvements therein, in the same condition as when received, reasonable use and wear thereof and damage by act of nature, or by the elements excepted.

Lessee has visited and inspected said Premises and it is agreed that the acreage stated herein and on the attached Exhibit "A" is only approximate and the State does not hereby warrant or guarantee the actual acreage included hereunder.

9. PROTECTION OF PREMISES.

No removal of soil or dumping of refuse by Lessee is permitted in any area of the Premises, and Lessee shall not commit or suffer to be committed any waste or nuisance upon the Premises; and Lessee agrees not to cut or remove any trees or brush thereon except as approved in writing by State and Lessee further agrees that he shall at all times exercise due diligence in the protection of the Premises against damage or destruction by fire or other cause.

Lessee shall maintain the Premises, including all irrigation and drainage ditches, in weed free and pest free condition and in good repair, and otherwise operate the Premises during the term hereof in a businesslike manner in accordance with generally accepted and recommended farming and grazing practices.

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Lessee agrees that any damage done to any water pipe, water pump, ditch, bridge or culvert upon said lands by Lessee, or any of their agents or employees, shall be repaired at their own cost and expense.

10. MEDICAL.

Medical support shall not be provided by State. Necessary emergency medical or surgical care of Lessee’s clients and employees will be Lessee’s responsibility.

As used herein, this is intended to mean that Lessee shall be liable for any and all medical and/or surgical care costs for Lessee’s employees served by Lessee’s program.

11. EMERGENCY PREPAREDNESS.

Lessee agrees to be responsible for maintaining an emergency preparedness program for Lessee. Lessee shall not rely on State to provide food or supplies during a local or area wide disaster. State will, if time and material allow, assist Lessee during a disaster.

12. FIRE/POLICE PROTECTION.

Lessee is a separate and distinct entity from the State and shall so inform the local Fire and Police Agencies. State shall in no way be responsible or liable for such protection to Lessee.

13. LESSEE GUARANTEES.

Lessee hereby guarantees any and all work or services performed by Lessee or Lessee’s properly qualified or authorized agents, employees, contractors and servants, in order to accomplish the installation and/or maintenance of the facility.

14. TRASH.

Lessee shall have or hire custodial services sufficient to maintain the Premises in a clean and well maintained condition.

15. PARKING.

Lessee’s employees, guests, invitees and Permitted Users shall have the use of the non-reserved designated automobile parking areas, driveways, and footways, subject to rules and regulations for the use thereof as prescribed from time to time by State.

State reserves the right to designate parking areas within reasonable proximity to the Premises for Lessee’s agents, invitees, and employees. Parking is allowed in designated parking areas only.

End of Section 2

SECTION 3 – STANDARD PROVISIONS

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1. PERMITS AND APPROVALS.

State and Lessee agree that Lessee’s ability to use the Premises is dependent upon Lessee obtaining all of the certificates, permits, licenses, and other approvals that may be required from any third party. State will cooperate with Lessee, at no expense to State, in Lessee’s effort to obtain such approvals in connection with said permits, licenses or other approvals.

2. LEASE MODIFICATION FEES.

An administration fee shall be assessed for any action originated by Lessee requiring lease administration or technical review staff work by State which result in an amendment to, or assignment of this Lease. To initiate such services, Lessee must submit a written request to State. The administration fee will be assessed at the prevailing rate in effect at the time the request is received.

3. DEFAULT.

Lessee shall make all payments to State without deduction (except for offsets explicitly allowed hereunder), default or delay. In the event of the failure of Lessee to do so, or in the event of a breach of any other terms, covenants or conditions herein contained on the part of Lessee or State to be kept and performed, and if such default continues for a period of thirty (30) days after receipt of written notice from the non-defaulting party to the defaulting party of such default, this Lease may, at the…