Wasco_RFP___Sample_Lease_Ends_9-17-2026.pdf

Governor Gavin Newsom

THE STATE OF CALIFORNIA

THE DEPARTMENT OF GENERAL SERVICES ON BEHALF OF

THE DEPARTMENT OF CORRECTIONS AND REHABILITATION

REQUEST FOR PROPOSAL (RFP)

L-3198

NOTICE TO PROSPECTIVE BIDDERS

FOR AGRICULTURAL GROUND LEASE AT:

WASCO STATE PRISON (WSP)

701 Scofield Avenue

Wasco, CA 93280

ADVERTISEMENT OF SOLICITATION: September 3, 2026 through September 17, 2026

MANDATORY WALK-THROUGH RSVP September 17, 2026 by 4:00 p.m.

MANDATORY WALK-THROUGH

SECURITY C LEARANCE FORMS

DUE:

September 17, 2026 by 4:00 p.m.

MANDATORY WALK-THROUGH September 22, 2026, at 1:00 p.m.

QUESTIONS & ANSWERS September 22 through September 25, 2026

SUBMISSION DUE DATE: October 2, 2026

RFP CONTACT NAME: DOROTHY GODBOLD

CONTACT ADDRESS:

DEPARTMENT OF GENERAL SERVICES

STATE OWNED LEASING & DEVELOPMENT

707 THIRD STREET, 5TH FLOOR (L-3198)

WEST SACRAMENTO, CA 95605

TELEPHONE NUMBER: (916) 375-4041

EMAIL ADDRESS: DOROTHY.GODBOLD@DGS.CA.GOV

TABLE OF CONTENTS

Section Page

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

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

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

II. Project Scope………………………………………………………………………. 4-5

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

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

V. Proposal Instructions………………………………………………………………. 7

1) Mandatory Walk – Through…………….…………………………………. 7

2) Submission of Proposal…...………………………………………………. 8-9

3) Disposition of Proposal……………………………….…………...……….

4) Agreement Execution and Performance……….………………………...

5) RFP Proposal Requirements……………………………………………...

6) Executive Order N-6-22 Russia Sanctions………………………………

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

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

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

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

I. INTRODUCTION

The California Department of General Services (DGS) on the behalf of the California Department of Corrections and Rehabilitation (CDCR), collectively referred to as “State”, welcomes farming and land management lease proposals for approximately 353.4 acres at Wasco State Prison (WSP).

The CDCR identified State-owned land available for farming activities at WSP. The current land use includes a farming operation utilizing approximately 273 acres to grow, rotate, maintain, and harvest sellable fodder crops. The WSP land available for farming is identified in “Attachment A” (WSP Farmable Land). 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 WSP open space, identified in “Attachment B” (WSP Open Space). Bidders are not required to lease the WSP Open Space in its entirety, but the SLMP must identify WSP 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, clearing a security background check, attending the mandatory walk-through, and providing a SLMP that identifies how the Lessee will: 1) manage the WSP Open Space in its entirety to eliminate maintenance and weed abatement costs for CDCR; and 2) Identify the Lessee’s plan to grow, rotate, maintain, and harvest sellable fodder crops.

Irrigation water is sourced by WSP recycled effluent disposal. The State does not guarantee water availability, quality, or quantity. The State requires the Lessee to provide comprehensive, sustainable land management, and maintenance. Land management shall include weed abatement for fire control and mosquito abatement on all WSP 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) Outline details of Bidder’s farming operation irrigating the Bidder’s crops in the proposed business plan.

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

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

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” October 2, 2026, postmarked on October 2, 2026 will be accepted.

If part of the SLMP 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 all other materials included 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

The purpose of this RFP is to enter into a ground lease, terms and conditions identified in “Attachment C”, Sample Ground Lease, with a Lessee who will grow, rotate, maintain, and harvest crops on the WSP Farmable Land that comply with the water quality available to the Lessee. Previous farming activities at WSP include fodder crops such as hay and alfalfa crops.

Onsite secured space available for farm equipment storage. The lease terms will include parameters outlining the Lessee’s sustainable land management activities as outlined in the SLMP in the entirety of the WSP Farmable Land and Open Space, whether farmed or not, and other ancillary operations indicated by the winning Bidder in their bid, such as grazing. Lessee SLMP is to include weed and vegetation abatement. Weed and vegetation abatement is at the sole cost and expense of Lessee.

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

WASCO STATE PRISON

701 SCOFIELD AVENUE

WASCO, CA 93280

WSP Farmable Land Portions of Assessor’s Parcel Numbers:

487-080-11-00-5 487-080-15-00-7

487-080-14-00-4 487-080-09-00-0

Minimum Conditions

The State will accept offers for a ground lease that meets the following minimum conditions:

A. The Lease Term is negotiable for up to twenty (20) years, beginning with a five (5) year term, and includes three five (5) 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 October 15, 2026.

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

D. Awarded Bidder is required to farm and/or manage WSP 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. Water delivery infrastructure but must be maintained as part of the SLMP to mitigate fire hazards.

B. Solar array field located on-site.

C. The irrigation water associated with the property may be subject to State Water

Resources Control Board curtailment orders that could impact water availability.

D. WSP is a State-owned, operational, secure prison facility. The WSP open space is adjacent to the WSP prison facility.

E. The WSP Farmable Land and Open Space is adjacent to an active, operational shooting range.

F. 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 September 22, 2026 at the time and location shown on the RFP 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 Bryan Peterson at Bryan.Peterson@cdcr.ca.gov by September 17, 2026 , before 4 p.m.

B. Bidders seeking clarification of this solicitation’s requirements may submit questions to the DGS using the contact information on the cover page. All inquiries must be received no later than September 25, 2026, regardless of postmark. If the inquiries are emailed, then the time and date on the email must not be later than the due date.

C. Oral communications with the DGS and CDCR 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.

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

E. E-mails should be clearly marked “Questions Relating to RFP L-3198 Wasco State Prison Agricultural Ground Lease”.

[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 9/3/26 9/17/26

Mandatory Bid Walk-Through RSVP 9/17/26 by 4:00 p.m.

Mandatory Walk-Through Security Clearance Forms Due 9/17/26 by 4:00 p.m.

Mandatory Bid Walk-Through 9/22/26 at 1:00 p.m.

Question and Answer Period 9/22/26 9/25/26

Written Q&A available to all Bidders 9/30/26

Final Date to Submit Bids 10/2/26

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) Mandatory Walk-Through:

A Mandatory Walk-Through is scheduled at the time and location shown on Page 1, the RFP cover sheet. During the Walk-Through the prospective bidder should carefully examine work sites and specifications. The prospective bidder shall investigate conditions, character, and quality of surface or subsurface materials or obstacles that might be encountered.

The following items are required to participate in the Mandatory Walk-Through:

Security Clearance forms MUST be submitted with a photocopy of a valid state issued photo ID by 4:00 p.m. on September 17, 2026 to:

Email: Bryan.Peterson@cdcr.ca.gov Telephone: (279) 223-2867

No blue jeans or chambray or neon green colored clothing will be allowed.

2) Submission of Proposal:

a) All original proposals must be submitted by the date shown on the cover sheet under sealed cover to the following address:

Department of General Services State Owned Leasing and Development 707 3rd Street, 5th Floor (L-3198) West Sacramento, CA 95605 Attn: Dorothy Godbold

The sealed cover must be plainly marked with the title “RFP L-3198 Wasco State Prison Agricultural Ground Lease”, 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.

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

f) 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.

g) 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, October 2, 2026. Bidder modifications offered in any other manner, oral or written, will not be considered.

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

State prior to the proposal submission due date, October 2, 2026, signed by the Bidder or an authorized agent. A Bidder may thereafter submit a new proposal prior to the proposal submission due date, October 2, 2026. Proposals may not be withdrawn without cause after the proposal submission due date.

i) 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.

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

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

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

3) 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.

4) 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.

5) RFP Proposal Requirements:

a) Clarity and Organization of the Proposal

b) Contact Sheet: Prepare a contact sheet with the following information clearly displayed:

Business Name Address Telephone Number Email Address Business Manager Name

c) 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.

d) 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.

, all documents submitted in response to this RFP will become the

e) 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.

f) Qualifications: Provide qualifications showing experience in farming and sustainable land management, including any experience with the State Water Resources Control Board.

6) 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.

[Remainder of Page Intentionally Left Blank]

VI. PROPOSAL EVALUATION:

1) Proposal Scoring Criteria:

a) Clarity and Organization of the Proposal

b) Contact Sheet

c) Business Plan

d) Copy of Legal Documents

e) Copy of Financial Documents

f) 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.

Contact Sheet: Contact information complete, clear and legible. 50

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 – WSP Farmable Land

Attachment B - WSP Open Space

Attachment C - Sample Ground Lease

Attachment D - Form CCC-307 (Contractor Certification Clauses)

Attachment E – Required Security Clearance Forms

STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES

REAL ESTATE SERVICES DIVISION

Wasco State Prison Page 1 of 22 Lease No. L-3198

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 the California Department of Corrections and Rehabilitation (CDCR), acting by and through the Director of the Department of General Services (DGS), hereinafter collectively referred to as “State”, and AWARDED BIDDER., 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, the CDCR has under its jurisdiction certain real property located at 701 Scofield Avenue, Wasco, in Kern County, State of California, commonly referred to as Wasco State Prison (WSP) and more particularly described as Assessor’s Parel Numbers 487-080-11-00-5, 487-080-15-00-7, 487-080-14-00-4, and 487-080- 09-00-0; and

WHEREAS, CDCR desires to pursue responsible land management practices consisting of approximately three hundred and fifty-three (353) acres, but does not currently have the resources to manage and maintain the Property’s open space; and

WHEREAS, CDCR engaged the DGS to issue a Request for Proposals (RFP) in an effort to assure the State’s asset is preserved through sustainable land management and maintenance activities; and

WHEREAS, pursuant to the RFP, CDCR expects Lessee to manage a farming operation and develop a Sustainable Land Management Plan (SLMP) to include weed abatement and fire control on all vacant land described in Section 1, Clause 1, Property Description; and

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:

WASCO STATE PRISON

701 SCOFIELD AVENUE

WASCO, CA 93280

Lease No.: L-3198

Project No.: 17659

Agency:

DEPARTMENT OF CORRECTIONS AND

REHABILITATION

Real Property No.: 9647

SPI No.:

Lessee: AWARDED BIDDER

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 2 of 22 Lease No. L-3198

WITNESSETH:

PROPERTY

DESCRIPTION

1. State does hereby Lease to Lessee, and Lessee hereby hires from State, upon the terms, agreements, and conditions hereinafter set forth, a portion of those certain premises located at 701 Scofield, Wasco, California, County of Kern and more particularly described as follows:

Approximately 273 acres of unimproved land along with ingress, egress and road use, hereinafter referred to as Premises as shown on the attached Exhibit “A”, consisting of one (1) page incorporated herein by this reference.

USE 2. The Premises shall be used by Lessee during the Term hereof for farming operations, including the cultivation, rotation, and harvest of sellable fodder crops. Lessee shall implement a sustainable land management plan to maximize the efficient use of available water, ensuring ecological balance through the planting and harvesting of hay, alfalfa, sunflower, and wildflowers, including native species 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.

EARLY

TERMINATION

4. 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 thirty (30) days prior to the date when such termination shall become effective. If Lessee fails to complete its move out within the notice period and remains on the Premises, additional rent shall be paid and prorated based on a 30-day month, and on the actual number of days Lessee occupies the Premises following the effective date of termination. State reserves the right to terminate the Lease immediately if safety and security are at risk and mutual resolution cannot be agreed upon.

Upon termination of the Lease, Lessee shall restore the Premises to the condition it was at the commencement of this Lease within ninety (90) days. Such restoration shall include any necessary environmental cleanup and restoration necessitated by Lessee’s use of the Premises. In the event that Lessee fails to restore the Premises as set forth above, State may perform the necessary environmental cleanup and/or restoration and the Lessee shall reimburse the State for the full cost thereof.

In the event of any dispute over the responsibility for any necessary environmental cleanup or restoration, it shall be Lessee’s burden of proof to show that cleanup or restoration was not necessitated by Lessee’s use of the Premises.

Notice of termination must be given in accordance with the “Notices” provisions of this Lease.

REIMBURSEMENT

FOR EARLY

TERMINATION

5. If, during the growing season and prior to the time for harvesting, State should terminate this Lease without cause, either in whole or part, pursuant to Clause 4 “EARLY TERMINATION”, hereof, State agrees to reimburse Lessee only for the reasonable and actual out-of-pocket costs for labor and material expended by Lessee pursuant to this Lease on the production of that portion of the crop lost as a result of any such termination. This agreement excludes reimbursement for any other damages including, but not limited to, loss of profits, consequential damages and attorney’s fees.

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 3 of 22 Lease No. L-3198

Lessee agrees to maintain an accurate record of all expenditures for labor and materials made in connection with the cultivation of, or capital improvements to, the leased Premises in order that State may verify the amount of reimbursement to be made to Lessee. Lessee shall support all such expenditures with receipted, written vouchers as documentation.

RENT PAYMENTS 6. State has determined the “Fair Market Rent” for the use of the Premises to be in the amount outlined below, to be paid quarterly, in advance, by Lessee to State within ten

(10) days of each due date during the term of this Lease with annual increases of three percent (3%) as set forth below:

Period Due Dates Quarterly Amount

Lessee’s payments shall display State’s Lease Number L-3096 and shall be mailed to the following address:

Department of General Services Attn: Accounts Receivable (PAL) - (L-3198) P.O. 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 7. Lessee agrees to pay said rent as herein provided and to pay 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, including electricity or gas, will be provided by State and State assumes no liability for the existence or non-existence of utilities.

Lessee agrees to separately meter the Premises for all utility costs such as electricity and in connection with Lessee’s use of the Premises during the term of this Lease.

Utility payments shall be made payable to and sent directly to the utility provider. State shall not provide such services and shall have no responsibility for the existence or lack of existence of utilities or any other services to the Premises. Lessee will be responsible for its own trash disposal.

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 4 of 22 Lease No. L-3198

State shall not be liable to Lessee or third parties for failure to provide electricity due to rolling blackouts or other causes beyond State’s control. 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.

WATER 8. Lessee understands and acknowledges that this property is intended for the disposal of recycled wastewater effluent and that all components of the Operational Agreement must be adhered to. In addition to any other responsibilities, Lessee shall be fully and solely responsible for containment of the recycled water within the leased property and shall bear all applicable repair or remediation costs, fines, and fees associated with any breaches to that containment or spillage to adjacent lands.

Lessee agrees to comply with all applicable wastewater discharge requirements set forth by the California Regional Water Quality Control Board, including necessary permits, monitoring, and reporting obligations. Compliance shall extend to current regulations as well as any future requirements that may be enacted, as outlined in the Operating Agreement Waste Discharge Requirements, attached hereto as Exhibit B and incorporated by reference herein.

NOTICES 9. All notices or other communications required or permitted hereunder shall be in writing, with Lease Number L-3096 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: AWARDED BIDDER

State: Department of General Services Real Estate Services Division Lease Management, [L-3198] 707 3rd Street, 5th Floor West Sacramento, CA 95605 Office: (916) 375-4171 Leasemanagement@dgs.ca.gov

With Copies to: Department of Corrections & Rehabilitation Facility Planning, Construction and Management Division Real Estate & Land-Use Management Section 9838 Old Placerville Road, Suite B Sacramento, CA 95827 Telephone: (279) 223-2780

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.

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 5 of 22 Lease No. L-3198

PROPERTY

INSPECTIONS

10. 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

11. Any holding over by Lessee after expiration or termination shall not be considered as a renewal or extension of this Lease. The occupancy of the Premises after the expiration or termination of this Lease shall constitute a month-to-month tenancy, and all other terms and conditions of this Lease shall continue in full force and effect; provided, however, that said holdover tenancy shall be subject, at the State’s sole discretion, to a rent increase of three percent (3%) of the ending rent, payable monthly in advance. 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.

ACCESS TO

PREMISES

12. 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.

CONSTRUCTION

OF

IMPROVEMETNS

13. Prior to construction, installation, reconstruction, or modification of infrastructure or road work on the Premises, Lessee shall submit a formal request for approval along with a completed set of plans and specifications to CDCR FPCM Division staff and DGS for review and approval, which shall be approved or denied within 90-days of receipt or appropriate time allotted based on the situation. Construction or installation is not to proceed prior to obtaining CDCR and DGS written approval. Construction, installation, maintenance, and any subsequent removal or demolition of said improvements shall be at Lessee’s sole cost and expense.

PROJECT

CANCELLATION

14. If Lessee is unable to obtain all necessary funding, permits, or CEQA documentation for the project, or cannot proceed with the project for any reasonable purpose, this Lease shall be cancelled upon notice by Lessee. State shall not be responsible for any costs incurred by Lessee.

SUBORDINATION 15. At the request of State, Lessee agrees to subordinate this Lease to any other agreements made, or agreements that may be made, or rights conveyed, or rights that may be conveyed, by the DGS, the State Public Works Board (SPWB), CDCR, and the Department of Finance (DOF) for any purpose the State in its sole discretion deems necessary for the use, financing, or disposition of the Premises.

AERIAL

APPLICATIONS

16. Any 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 State in writing within three (3) business days in advance, of any aerial application and a completed Material Safety Data Sheet (MSDS) shall accompany the notice. Lessee shall ensure that there will be minimal to no drift over the prison facility site adjacent to the subject Premises.

CONTROLLED

BURNS

17. Any weed burning operations on the Premises will be carried out pursuant to local ordinances and at Lessee’s own cost and expense. Lessee will inform the State in advance of any weed burning operations. Lessee agrees to maintain a weed free margin of ten (10) feet in width between the Premises and all roads.

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 6 of 22 Lease No. L-3198

GRANTS OR

CREDITS

18. 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 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.

EQUIPMENT 19. State does not guarantee the presence of any equipment necessary for Lessee’s use of State lands under this Lease. Lessee agrees at its sole cost and expense, to repair and to maintain in good operating condition any fencing, watering facilities, water pumps, waterlines, barns, equipment, or other improvements existing on the Premises or constructed upon the Premises by Lessee.

OTHER

RESTRICTIONS

20. State, its agents or employees shall not be liable or responsible for any damage to crops, equipment, livestock, personal property, or persons on the leased Premises pursuant to this lease caused by acts of WSP inmates or by employees of said Facilities while in the performance of their duties. The Facilities reserve 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 all persons covered under CDCR’s Public Safety Mission.

PROTECTION OF

PREMISES

21. 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 shall be responsible for brush control as outlined in the SLMP. Lessee further agrees that Lessee 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 equipment, pipelines, and valves in good repair and condition, and otherwise operate the Premises during the term hereof in a manner in accordance with generally accepted and recommended practices and procedures. Lessee agrees that any damage done to any equipment, pipelines, and valves upon said lands by Lessee, or any of Lessee’s agents or employees, shall be repaired at Lessee’s cost and expense.

CDCR RIGHT TO

USE

22. State reserves the right to use the Premises, in any manner, including but not limited to the right to construct, place, maintain, use, operate, repair, replace, alter, move, and remove pipelines, conduits, culverts, ducts, fences, poles, electrical energy, power, and communication lines, roads, bridges, sidewalks; to grant easements over, across, upon, and under said Premises; and the continuous right of ingress to and egress from any portion or portions of said Premises in such manner so as to not create an unreasonable interference with the rights granted to Lessee herein. As a courtesy, CDCR will notify the Lessee of any major activities. This notification will aid in the coordination of activities on the WSP property.

CONFLICT OF

INTEREST

23. The Lessee and their employees shall abide by the provisions of California Government Code section 1090, 81000 et seq., 82000 et seq., 87100 et seq., and 87300 et seq., California Public Contract Code sections 10335 et seq., and 10410 et seq.; California Code of Regulations, title 2, section 18700 et seq. and title 15, section 3409; and the Department Operations Manual (DOM) section 31100 et seq., regarding conflicts of interest.

a. Lessee and Their Employees

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 7 of 22 Lease No. L-3198

Lessee shall file a Statement of Economic Interests, Fair Political Practices Commission (FPPC) Form 700 prior to using the Premises pursuant to the Lease, annually during the life of the Lease, and within thirty (30) days after expiration of the Lease. Lessee’s contractor(s) and their employee(s), and Lessee’s employee(s) may be required to file a Form 700 if so requested by CDCR or whenever it appears that a conflict of interest may be at issue. Generally, Lessee’s contractors and their employees, and Lessee’s employees will be required to file an FPPC Form 700 if one of the following exists:

1. The Lease has been identified by CDCR as one where there is a likelihood that a conflict of interest may occur;

2. The Lessee’s contractor(s) and their employee(s), and Lessee’s employee(s), pursuant to the Lease, makes or influences a governmental decision; or

3. The Lessee’s contractor(s) and their employee(s), and Lessee’s employee(s) serves in a staff capacity with CDCR and in that capacity participates in making a governmental decision or performs the same or substantially all the same duties for CDCR that would otherwise be performed by an individual holding a position specified in CDCR’s Conflict of Interest Code.

b. Current State Employees

1. No officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment.

2. No officer or employee shall contract on his or her own behalf as an independent Contractor with any State agency to provide goods or services.

3. In addition to the above, CDCR officials and employees shall also avoid actions resulting in or creating an appearance of:

a. Using an official position for private gain;

b. Giving preferential treatment to any particular person;

c. Losing independence or impartially;

d. Making a decision outside of official channels; and

e. Affecting adversely the confidence of the public or local officials in the integrity of the program.

4. Officers and employees of the Department must not solicit, accept, or receive, directly or indirectly, any fee commission, gratuity, or gift from any person or business organization doing or seeking to do business with the State.

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 8 of 22 Lease No. L-3198

c. Former State Employees

1. For the two (2-year) period from the date he or she left State employment, no former State officer or employee may enter into an Agreement in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the Agreement while employed in any capacity by any State agency.

2. For the twelve-month (12-month) period from the date he or she left State employment, no former State officer or employee may enter into an Agreement with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed Agreement within the 12-month period prior to his or her leaving State service.

In addition to the above, the Lessee shall avoid any conflict of interest whatsoever with respect to any financial dealings, employment services, or opportunities offered to inmates or parolees, The Lessee shall not itself employ or offer to employ inmates or parolees, either directly or indirectly through an affiliated company, person, or business, unless specifically authorized in writing by the CDCR. In addition, the Lessee shall not, either directly, or indirectly through an affiliated company, person, or business, engage in financial dealings with inmates or parolees, except to the extent that such financial dealings create no actual or potential conflict of interest, are available in the same terms to the general public, and have been approved in advance in writing by CDCR. For purposes of this paragraph, “affiliated company, person or business” means any company, business, corporation, nonprofit corporation, partnership, limited partnership, sole proprietorship, or other person or business entity of any kind which has any ownership or control interest whatsoever in the Lessee, or which is wholly or partially owned (more than 5% ownership) or controlled (any percentage) by the Lessee or by the Lessee’s owners, officers, principals, directors or shareholders, either directly or indirectly. “Affiliated companies, persons, or businesses” include, but are not limited to, subsidiary, parent, or sister companies or corporations, and any company, corporation, nonprofit corporation, partnership, limited partnership, sole proprietorship, or other person or business entity of any kind that is wholly or partially owned or controlled, either directly or indirectly, by the Lessee or by the Lessee’s owners, officers, principals, directors or shareholders.

The Lessee shall have a continuing duty to disclose to the State, in writing, all interests and activities that create an actual or potential conflict of interest in performance of the Lease.

The Lessee shall have a continuing duty to keep the State timely and fully apprised in writing of any material changes in the Lessee’s business structure or status. This includes any changes in business form, such as a change from sole proprietorship or partnership into a corporation or vice-versa; any changes in company ownership; any dissolution of the business; any change of the name of the business; any filing in bankruptcy; any revocation of corporate status by the Secretary of State; and any other material changes in the Lessee’s business status or structure that could affect the performance of the Lessee’s duties under the Lease.

If the Lessee violates any provision of the above paragraphs, such action by the Lessee shall render this Lease void.

SECTION 1 –SITE SPECIFIC PROVISIONS

Wasco State Prison Page 9 of 22 Lease No. L-3198

Members of boards and commissions are exempt from this section if they do not receive payment other than payment for each meeting of the board or commission, payment for preparatory time, and payment for per diem.

LESSEE

RESPONSIBILITIES

24. Lessee is aware of and understands that the Premises let within this Lease is located at a State Prison Facility. CDCR has established rules, policies, and procedures currently enforced or that may become enforced. During the term of the Lease, Lessee agrees to abide by these rules, policies, and procedures outlined in the Regulations and Conduct Exhibit attached hereto as “Exhibit C” and incorporated by reference herein.

Any violation of these rules, policies, and procedures may result in the immediate termination of this Lease.

End of Section 1

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SECTION 2 – GROUND LEASE SPECIFIC PROVISIONS

Wasco State Prison Page 10 of 22 Lease No. L-3198

ROAD ACCESS

AND FEES

25. Lessee agrees to the following terms and conditions regarding the use of said access road:

(a) Lessee shall exercise its right personally or through its authorized agents, employees, contractors, and Permitted Users whenever it is necessary.

(b) Lessee shall use said road at its sole risk and avoid traveling upon it to the greatest practical extent at all times when weather conditions are such that excessive damage to the road surface may result from such use, and further, Lessee shall, at its expense, promptly repair any road damage caused by its use, including such road surface protective features as water drains, berms, or culverts.

REGULATION BY

STATE

26. 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 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 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.

RIGHT TO

ENTER

27. 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.

LEASE

MODIFICATION

FEES

28. An administration fee may 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.

SECTION 2 – GROUND LEASE SPECIFIC PROVISIONS

Wasco State Prison Page 11 of 22 Lease No. L-3198

IMPROVEMENTS

AND

MODIFICATIONS

29. 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…