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HomeMy WebLinkAboutReso - CC - 003-2025RESOLUTION NO. 003-2025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING THE CITY MANAGER TO EXECUTE THE GENERAL LEASE – PUBLIC AGENCY USE AGREEMENT NO. 8034 WITH THE CALIFORNIA STATE LANDS COMMISSION FOR ASSESSOR’S PARCEL NUMBER 026-363-470 WHEREAS, General Lease Agreement No. 8034 between the City of Burlingame and the California State Lands Commission was originally approved on June 19, 1998, and the 25-year agreement expired on April 30, 2023; and WHEREAS, the lease agreement was for the use of a bicycle and pedestrian bridge and abutment, maintenance easement, and one water pipeline attached to the bridge that crosses the Bay Front Channel and connects Beach Road to the trail behind the properties between 555 and 777 Airport Boulevard; and WHEREAS, in December 2023, staff filed for an extension of General Lease – Public Agency Use Agreement No. 8034 with the California State Lands Commission; and WHEREAS, to maintain access and protect City owned infrastructure, City staff negotiated with the California State Lands Commission to extend the existing lease for another 25 years, with the new lease agreement term from October 17, 2024, to October 16, 2049; and WHEREAS, the State Lands Commission approved the new lease agreement at their October 17, 2024, meeting. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME RESOLVES AND ORDERS: 1. The facts in the recitals above and in the staff report are true and correct. 2. The City Council approves and authorizes the City Manager to execute the new lease agreement (8034) in the form attached hereto. ___________________________ Peter Stevenson, Mayor Docusign Envelope ID: 1B3808A3-50D6-4D1E-9918-B137909242D6 I, Meaghan Hassel-Shearer, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 21st day of January, 2025, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: BROWNRIGG, COLSON, PAPPAJOHN, STEVENSON, THAYER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ___________________________ Meaghan Hassel-Shearer, City Clerk Docusign Envelope ID: 1B3808A3-50D6-4D1E-9918-B137909242D6 RECORDED AT THE REQUEST OF AND WHEN RECORDED MAIL TO: STATE OF CALIFORNIA California State Lands Commission Attn: Land Management Division 100 Howe Avenue, Suite 100-South Sacramento, CA 95825-8202 STATE OF CALIFORNIA OFFICIAL BUSINESS Document entitled to free recordation pursuant to Government Code Section 27383 SPACE ABOVE THIS LINE FOR RECORDER'S USE A.P.N.: 026-363-470 County: San Mateo LEASE 8034 This Lease consists of this summary and the following attached and incorporated parts: Section 1 Basic Provisions Section 2 Special Provisions Amending or Supplementing Section 1 or 3 Section 3 General Provisions Exhibit A Land Description Exhibit B Site and Location Map SECTION 1: BASIC PROVISIONS THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE LANDS COMMISSION (100 Howe Avenue, Suite 100-South, Sacramento, California 95825-8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise, and let to CITY OF BURLINGAME, hereinafter referred to as Lessee, those certain lands described in Exhibit A hereinafter referred to as Lease Premises, subject to the reservations, terms, covenants, and conditions of this Lease. MAILING ADDRESS: 501 Primrose Road Burlingame, CA 94010 LEASE TYPE: General Lease – Public Agency Use LAND TYPE: Sovereign LOCATION: Bay Front Channel, Burlingame, as described in Exhibit A attached and by this reference made a part hereof. LAND USE OR PURPOSE: Use of a bicycle and pedestrian bridge, abutment, maintenance easement, and one water pipeline attached to the bridge. TERM: 25 years; beginning October 17, 2024; ending October 16, 2049, unless sooner terminated as provided under this Lease. CONSIDERATION: The public use and benefit, with the State reserving the right at any time to set a monetary rent if the Commission finds such action to be in the State’s best interest. AUTHORIZED IMPROVEMENTS: X EXISTING: Bicycle and pedestrian bridge and abutment, maintenance easement, and one water pipe. LIABILITY INSURANCE: $0 SURETY BOND OR OTHER SECURITY: $0 SECTION 2: SPECIAL PROVISIONS BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED, OR SUPPLEMENTED AS FOLLOWS: 1. Lessee acknowledges that the lands described in Exhibits A and B of this Lease are subject to the Public Trust and are presently available to members of the public for recreational use, waterborne commerce, navigation, fisheries, open space, or other recognized Public Trust uses and that Lessee’s use of the Lease Premises must not interfere with or limit the Public Trust rights of the public. 2. Lessee shall not install, attach, or authorize the placement or attachment of any additional utilities or other improvements on the bridge or within the Lease Premises without Lessor’s prior review and approval. Separate Leases may be required for any utilities or other improvements placed on the bridge or within the Lease Premises. 3. Lessee agrees that the provisions of Section 3, Paragraph 11 shall also extend to the period of Lessee’s unauthorized occupation of state-owned lands, from May 1, 2023, through October 16, 2024. 4. Section 3, Paragraph 7.3 is hereby deleted in its entirety. / Section 3 General Provisions Page 1 of 22 Form 51.16 (Rev. 4/24) Section 3: General Provisions Paragraph 1: Definitions “Applicable Laws” are all local, state, and federal statutes, regulations, rules, codes (including building codes), ordinances, judgments, orders, notice requirements, and other requirements of governmental authorities pertaining to the use or condition of the Lease Premises and the conduct of Lessee’s business thereon in effect as of the date of execution of this Lease or subsequently enacted and lawfully applied hereto. “Damages” are all liabilities, demands, claims, actions, or causes of action whether regulatory, legislative, or judicial in nature; all assessments, levies, losses, fines, penalties, damages, costs, and expenses, including, without limitation: (i) reasonable attorneys’, accountants’, investigators’, and experts’ fees and expenses sustained or incurred in connection with the defense or investigation of any such liability, and (ii) costs and expenses incurred to bring the Lease Premises into compliance with Applicable Laws, Environmental Laws, a court order, or applicable provisions of a Regulatory Agency. The term “Damages” also includes those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise. “Environmental Laws” are any and all federal, state, or local environmental, health, or safety-related laws, regulations, standards, decisions of courts, ordinances, rules, codes, orders, decrees, directives, guidelines, permits, or permit conditions, treaties and conventions, currently existing and as amended, enacted, issued, or adopted in the future that are or become applicable to Lessee, and the Lease Premises with respect to: (a) the protection, preservation, or clean-up of the environment, wildlife, habitat, or natural resources; (b) the use, treatment, storage, transportation, handling, or disposal of Hazardous Materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, groundwater, or drinking water; or (e) the health and safety of persons or property. “Hazardous Materials” are any chemical, substance, material, controlled substance, object, condition, waste, living organism, or combination thereof that is or may be hazardous to human health or safety or to the environment due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, Section 3 General Provisions Page 2 of 22 Form 51.16 (Rev. 4/24) carcinogenicity, mutagenicity, phytotoxicity, infectiousness, or other harmful or potentially harmful properties or effects, including, without limitation, tobacco smoke, petroleum and petroleum products, asbestos, radon, polychlorinated biphenyls (PCBs), and all of those chemicals, substances, materials, controlled substances, objects, conditions, wastes, living organisms, or combinations thereof that are now or become in the future listed, defined, or regulated in any manner by any Environmental Laws based on, directly or indirectly, such properties or effects. “Improvements” are any modification, alteration, addition, or removal of any material and any other action that changes the condition of the Lease Premises from the natural state, whether situated above, on, or under the Lease Premises. Improvements include any construction situated on or placement of material within the Lease Premises regardless of value. “Lease” is this document together with all subsequent amendments and exhibits. “Major Repairs” means any work that requires a permit or approval from other agencies, requires environmental review, or requires rebuilding or replacing any of the authorized Improvement(s). “Mineral Resources” includes timber, crops, sand, oil, gas, hard rock minerals and other mineral deposits as defined in Public Resources Code section 6407. “Natural Resources” are all of the flora and fauna native to both the upland terrestrial, fresh water, coastal and marine ecosystems within, and adjacent to, the lease premises. “Public Trust” means the constitutional, statutory, and common law doctrine providing the state’s sovereign authority over the navigable waters of the state, including the tidelands and submerged lands underlying those waters that are held in trust for the benefit of all the people of the state and for purposes that include maritime or water-dependent commerce, navigation, fisheries, the preservation of lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation. “Repairs” means work to maintain the Lease Premises and Improvements thereon in good, safe, and clean condition. Repairs are work that is minor in scope, do not require obtaining permits, approvals, or authorizations from other agencies, such as building permits, and do not require environmental review under State or Federal environmental laws. Section 3 General Provisions Page 3 of 22 Form 51.16 (Rev. 4/24) Paragraph 2: Rent 2.1. Absolute Triple Net Lease. This Lease is an absolute triple net lease, meaning Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities, repairs, or other costs or obligations associated with the Leased Premises, except as expressly stated herein. 2.2. Payment of Rent. Lessee must pay rent annually, on or before each anniversary of this Lease unless this Lease specifies a different rent schedule. The first installment is due on the beginning date of this Lease or within 60 days of Lessor authorizing the Lease at a public meeting, whichever is later. Rent is due each year in advance. Should Lessee submit payments that are less than the full amount of rent due under this Lease, Lessor may provide a supplemental billing invoice. Rent will not be refunded or prorated if Lessee discontinues use of the Lease Premises during the term. 2.3. Place for Payment. All payments under this Lease must be submitted to Lessor’s principal office as specified in this Lease. Lessee may contact Lessor’s accounting staff for Lessor’s current practices for payment by credit card or electronic fund transfer. 2.4. Courtesy Invoices. Lessor may send courtesy invoices to the address on file for Lessee at least thirty (30) days before a rent payment is due. Lessor’s failure to, or delinquency in, providing invoices will neither excuse Lessee from paying rent nor extend the time for paying rent. If Lessor does not send a courtesy invoice, Lessee must submit rent in the amount of the prior year’s rent when due and contact Lessor within thirty (30) days to determine the balance due. 2.5. Penalties and Interest. Penalties for late payments of any amounts due under this Lease and interest thereon are as provided in Title 2, California Code of Regulations section 1911(b). Timeliness of receipt of remittances shall be as provided in Title 2, California Code of Regulations section 1911(a). 2.6 . Annual Adjustment of Rent. The rent specified in Section 1 of this Lease will be adjusted annually by the Consumer Price Index as specified in Title 2, California Code of Regulations section 1900(m) & (n) unless otherwise specified in this Lease. 2.7. Review of Non-Monetary Consideration. If rent is discounted or waived pursuant to Title 2, California Code of Regulations section 2003(e)(4), Lessor may review such determination at any time and set a monetary rental. Lessee shall be given at least thirty (30) days’ notice prior to the date of the Commission Section 3 General Provisions Page 4 of 22 Form 51.16 (Rev. 4/24) meeting wherein the rent modification is considered, or thirty (30) days’ notice prior to the effective date that the rent is changed, whichever provides more notice. 2.8. Periodic Rent Review. Lessor may modify the method, amount, or rate of consideration effective on each tenth anniversary of the beginning date of this Lease, in addition to the last two years of the Lease as provided in Provision 14.4 below. Lessor shall consider the factors provided in Title 2, California Code of Regulations section 2003(d) when determining whether a rent modification is appropriate and which rental method listed in section 2003(a) should apply. Should Lessor fail to exercise such right effective on any tenth anniversary, it may do so on any one (1) of the next nine (9) anniversaries following such tenth anniversary, without prejudice to its right to modify rent on the next or any succeeding tenth anniversary of the beginning date. No such modification shall become effective unless Lessee is given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the rent modification is considered or thirty (30) days’ notice prior to the effective date of the increase, whichever provides a greater notice period. 2.9. If Lessor elects to prepare an appraisal to establish a new rent, Lessee may, at its option, also provide a timely independent appraisal at its sole expense for Lessor’s review and consideration. Prior to Lessee’s contracting for such appraisal, Lessor and Lessee shall negotiate in good faith and agree upon the terms and conditions for such third-party appraisal, including but not limited to the highest and best use, appraisal methodology, and minimum appraiser credentials. Such appraisal shall be prepared in accordance with generally accepted and applicable appraisal standards as they are adopted from time to time by the Appraisal Standards Board of the Appraisal Foundation, and Lessor’s Appraisal Guidelines. 2.10. Books and Records. Lessee must keep and maintain full and accurate accounting books and records of transactions from the Lease Premises in accordance with generally accepted accounting principles for at least the five (5) prior years. The accounting books and records kept and maintained by Lessee for audit purposes must include all records, receipts, journals, ledgers, and documents reasonably necessary to enable Lessor or its auditors to perform a complete and accurate audit of gross sales and exclusions from gross sales in accordance with generally accepted accounting principles. Lessee must also maintain an original receipt for the payment of taxes, assessments, or installments and deliver such to Lessor upon request. Section 3 General Provisions Page 5 of 22 Form 51.16 (Rev. 4/24) 2.11. Report of Gross Income. On Lessor’s request, Lessee must submit a Report of Gross Income on a form provided by Lessor for the prior five (5) years. This report together with supporting documentation (hereinafter collectively referred to as “Income Reports”) must include all business operations located on or over the Lease Premises. The gross income of sublessees and all others generating income on the Lease Premises must be reported separately and with sufficient organization and detail so that Lessor can identify the source of all gross income generated on the Lease Premises. 2.12. Audits. On not less than ten (10) days' prior written notice to Lessee, Lessor may cause an audit to be made of the Income Reports and all of Lessee's records and accounting books necessary (in Lessor’s judgment) to audit such items. Lessee will make all such books and records available for the audit at the Lease Premises or at Lessor’s offices. If the audit discloses an underpayment of Rent, Lessee will immediately pay to Lessor the amount of the underpayment with "Interest" (as provided in Paragraph 2.5), which will accrue from the date the payment should have been made through and including the date of payment. If the audit discloses an underreporting of rent in excess of two percent (2%) of the reported Gross Income, then Lessee will also immediately pay to Lessor all reasonable costs and expenses incurred in the audit and in collecting the underpayment, including auditing costs and attorney fees. If the audit discloses an overpayment of Rent, Lessee will be entitled to a credit in the amount of the overpayment against the next rent payment(s). Paragraph 3: Surety 3.1. Lessee to Obtain Surety. Lessee shall provide a surety bond or other security device acceptable to Lessor when required by Section 1 of this Lease. Such security shall be for the specified amount, name the State of California, California State Lands Commission, as the assured, and guarantee to Lessor the faithful observance and performance by Lessee of all the terms, covenants, and conditions of this Lease. 3.2. Lessor’s Modification of Surety. Lessor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need for security. The surety bond or other security device may be increased: (i) if any additional Improvements or activities are authorized on the Lease Premises; (ii) if Lessee modifies any existing Improvements such that the cost for removal of such Improvements is increased; (iii) when a periodic rent Section 3 General Provisions Page 6 of 22 Form 51.16 (Rev. 4/24) review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease, (v) Lessor determines it is in the best interest of the state; (v) within the last two years of the Lease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prejudice to its right to modify the surety on the next fifth anniversary or as otherwise provided above. Lessor will provide at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the modification of the surety is considered, or thirty (30) days’ notice prior to the effective date of the increase. 3.3. Lessee’s Modification of Surety. Any security device required under this Lease must be maintained at all times during the Lease term. Lessee must first seek approval of Lessor before changing the surety holder or the type of security device used. Paragraph 4: Insurance 4.1. Lessee Must Insure Lease Premises. Lessee must obtain and maintain in full force and effect during the term of this Lease comprehensive general liability insurance and property damage insurance against any and all claims or liability arising out of the ownership, use, occupancy, condition, or maintenance of the Lease Premises and all Improvements. The coverage limit must be no less than the amount specified in Section 1 of this Lease. 4.2. Insurance Policy Requirements. The insurance policy must identify the Lease by its assigned number. The coverage provided must be primary and non- contributing. Lessee must keep such policy current. Lessor must be named as a “certificate holder” or an “additional interest” on the policy. Lessee must provide Lessor with a current certificate of insurance at all times. At Lessor’s request, Lessee must provide a full copy of the current insurance policy, along with any and all endorsements or other such documents affecting the coverage. Lessor will not be responsible for any premiums or other assessments on the policy. 4.3. Notice to Lessor. Lessee shall notify Lessor within five (5) business days if the insurance is canceled for any reason and shall act diligently to replace the insurance. Failure to timely replace the insurance may result in a default of the lease. 4.4. Modification. Lessor may require an increase in the amount of the insurance to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need. Insurance Section 3 General Provisions Page 7 of 22 Form 51.16 (Rev. 4/24) coverage may be increased: (i) if any additional Improvements or activities are authorized on the Lease Premises; (ii) if Lessee modifies any existing Improvements or intensity of use; (iii) when a periodic rent review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease; (v) Lessor determines it is in the best interest of the state; (vi)within the last two years of the Lease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prejudice to its right to modify insurance requirements on the next fifth anniversary. Lessor will provide at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the modification of insurance is considered, or thirty (30) days’ notice prior to the effective date of the increase. Paragraph 5: Taxes, Assessments, and Fees 5.1. Revenue and Tax Code Section 107.6 Statement. Issuance of this Lease creates a possessory interest that may be subject to property taxation. The Lessee may be subject to, and is solely responsible for, any possessory interest taxes levied on the leasehold interest. 5.2. Lessee to Pay All Taxes, Assessments, and Fees. In addition to any Rent due under this Lease, Lessee must pay when due all real and personal property taxes imposed on or associated with the Lease Premises during the term of this Lease. This includes, without limitation: possessory interest taxes, assessments, special assessments, user fees, and service charges. If this Lease begins or ends during a tax year, Lessee must pay the taxes, assessments, and fees for the portion of the tax year the Lease was in effect. 5.3. Reimbursement Agreements. Lessee must pay in full any amount owed on the Application Reimbursement Agreement within 30 days of invoice. 5.4. Records of Payments. Lessee shall keep the official and original receipt for payments required by this paragraph 5 and provide to Lessor upon request. Paragraph 6: Land Use 6.1. Only Authorized Uses. Lessee will use the Lease Premises only for the purposes stated in this Lease. Any additional uses or Improvements require separate authorization from Lessor. Lessee must submit a separate application to Lessor to amend this Lease if Lessee intends to add to or alter the Improvements on, or change the uses of, the Lease Premises. 6.2. Lessee to Comply with All Applicable Laws. Lessee, at Lessee’s sole expense, Section 3 General Provisions Page 8 of 22 Form 51.16 (Rev. 4/24) will comply with all Applicable Laws. Lessee must give Lessor immediate written notice on Lessee’s becoming aware that the use or condition of the Lease Premises is in violation of any Applicable Laws. Lessee must obtain and maintain all permits or other entitlements. 6.3. Lease Does Not Substitute for Permits. This Lease does not substitute for or provide preference in obtaining approval from other federal, state, or local agencies. Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and will be solely responsible for all costs incurred thereby. 6.4. No Discrimination. Lessee, in its use of the Lease Premises, must not discriminate against any person or class of persons on any basis protected by federal, state, or local law. 6.5. “As Is.” Lessee accepts the Lease Premises “as is” and acknowledges that: 6.5.1. Lessor, including its officers and employees, made no representations or warranties as to the suitability of the Lease Premises for any uses authorized under this Lease. Lessee is solely responsible for determining the suitability of the Lease Premises for any proposed use or Improvements; and 6.5.2. Lessor, including its officers and employees, has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to Applicable Laws. Lessee agrees to inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for the Lessee’s intended use; and 6.5.3. Damage to or destruction of any Improvements on the Lease Premises by any cause whatsoever does not entitle Lessee to any reduction in rent or extension of this Lease; and 6.5.4. Any Improvements on the Lease Premises are considered personal property and not fixtures; and 6.5.5. Lessee accepts the hazards involved in using or improving such lands. Lessor is not responsible for any damages or reduced use of the Lease Premises caused by: local or invasive flora or fauna, flooding, erosion, climate change, sea level rise, storms, freezing, inclement weather of any kind, acts of god, maintenance or failure of protective structures, and any other such hazards. Lessee will not be reimbursed or receive offset of rent for such hazards; and 6.5.6. The Lease Premises may be subject to pre-existing contracts, leases, Section 3 General Provisions Page 9 of 22 Form 51.16 (Rev. 4/24) licenses, easements, encumbrances, and claims. The Lease is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose. 6.6. Uses Inconsistent with the Public Trust Prohibited. Unless specifically authorized in this Lease, any use of the Lease Premises which is inconsistent with the Public Trust is prohibited when the Lease Premises are lands subject to the Public Trust. Paragraph 7: Climate Change 7.1. Lessee acknowledges that the Lease Premises and adjacent upland may be subject to the hazards exacerbated by climate change, including sea level rise. Potential hazards to the Lease Premises from climate change include but are not limited to flood damage, erosion damage, earthquakes, tsunamis, and damage from waves and storm-created debris. Lessee acknowledges that these impacts associated with climate change may require additional adaptation or protection strategies applied to the improvements on the Lease Premises and additional maintenance. 7.2. Lessee assumes the risks associated with such potential hazards and agrees to be solely responsible for all damages, costs, and liabilities arising as a result of the impacts of such hazards on the Lease Premises. Any additional maintenance or protection strategies necessitated by such hazards may be subject to environmental review and require additional approval by the Lessor. 7.3. Lessee shall conduct monitoring reports within the first three years of lease execution or construction, and at five-year intervals thereafter for the life of the project; and shall also provide Lessor with monitoring reports following any extreme event, including, but not limited to: extreme tide event (including King Tides), earthquake, or tsunami that results in the declaration of a Local Emergency or a State of Emergency (as defined in Cal. Gov. Code § 8558) or a federal Emergency or Major Disaster (as defined in 44 C.F.R. § 206.2). Paragraph 8: Environmental Matters 8.1. Lessee to Comply with Environmental Laws. Lessee, at its sole cost and expense, will comply with all Environmental Laws. 8.2. Hazardous Materials. Lessee will immediately notify Lessor of any known violation of any Environmental Laws, along with any action, claim, demand, inquiry, or order relating to a violation of Environmental Laws on the Lease Section 3 General Provisions Page 10 of 22 Form 51.16 (Rev. 4/24) Premises. Lessee must immediately provide copies of all related documents upon Lessor’s request. Lessee must immediately notify Lessor and the appropriate governmental emergency response agency, or agencies in the event of any release or threatened release of any Hazardous Material on or about the Lease Premises. 8.3. Cleanup of Hazardous Materials. If Hazardous Materials are located on or released onto or about the Lease Premises due to Lessee’s activities on the Lease Premises, the Lessee is responsible for the cleanup and disposal of such Hazardous Materials consistent with all Applicable Laws. Lessee must submit a site assessment and removal/remediation plan prepared by a professional, licensed and qualified to remove or remediate the Hazardous Materials for review and approval by Lessor. If Lessor approves the plan in writing, Lessee must commence the removal/remediation at its sole expense, in conformance with all Applicable Laws. Alternately, Lessor may elect to perform the removal/remediation at Lessee’s expense. Lessee must compensate Lessor for the actual cost of the removal/remediation within thirty (30) days of receiving a written invoice from Lessor. 8.4. Inspection. Lessee will permit Lessor or its agents to enter the Lease Premises on 24-hour notice to inspect, monitor, or take remedial action with respect to Hazardous Materials. If Hazardous Materials are generated, stored, or transported on the Lease Premises, Lessor may require Lessee to conduct an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Materials. If this assessment or inspection is required, Lessor will be allowed to review and approve the contractor, and the work will be done at Lessee’s expense. 8.5. Conservation. Lessee will cooperate with and participate in conservation programs for water, electricity, composting, natural gas and recycling programs, including those for the collection of cardboard, metals, plastics, and glass at Lessee’s expense. Paragraph 9: Repairs, Major Repairs, and Alterations 9.1. Lessee Required to Perform Repairs. Lessee is solely responsible for maintaining the Lease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition. Lessee is not required to get Lessor’s advanced approval for routine Repairs. 9.2. Major Repairs Require Lessor Approval. Lessee must obtain Lessor’s Section 3 General Provisions Page 11 of 22 Form 51.16 (Rev. 4/24) advanced written approval prior to conducting any Major Repairs. The decision whether a Repair is a Major Repair, and the decision whether a lease amendment is necessary, will be made by Lessor and based on the scope, cost, and impacts of the work. 9.3. Alterations Require Lessor Approval. Any material change in the size, scope, density, type, nature, or intensity of Improvements on or uses of the Lease Premises from what is authorized in this Lease will be considered an Alteration. Lessee may not conduct any Alterations without a modification of this Lease approved by Lessor. The decision whether a change constitutes an Alteration will be made by Lessor and based on the individual facts. 9.4. Improvements in Disrepair or Unsafe Condition. Lessee’s failure to maintain the Lease Premises or Improvements that have become unsafe or derelict entitle Lessor to require removal under Paragraph 14. After providing notice and opportunity to cure, Lessor may require submission of a written plan to restore the Lease Premises under Paragraph 14. Lessee’s failure to comply shall entitle Lessor to terminate this Lease, remove the Improvements from the Lease Premises and recover the costs incurred in doing so from the Lessee. Paragraph 10: Lessor’s Reservation of Rights 10.1. Non-Exclusive Lease. Lessee’s right of occupancy is non-exclusive. Lessee may control access to the Improvements on the Lease Premises. Unless otherwise stated in this Lease, Lessee may exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with the Authorized Use of the Lease Premises. 10.2. Lessee Responsible for Impacts to Natural Resources and Public Trust Uses. When the Lease Premises include school lands or sovereign lands, the Lessee is responsible for any damage or adverse impacts to Natural Resources within or adjacent to the Lease Premises. It is the intention of Lessor to limit the transfer of rights under this lease to the minimum level required to carry out the primary purpose of the Lease. Lessee’s use of the Lease Premises must minimize impacts to the Public Trust if the Lease Premises are subject to the Public Trust. Lessee must not interfere with public access or Public Trust uses authorized under statute and common law. 10.3. Mineral Resources. Mineral Resources may not be removed from the Lease Premises unless specifically authorized under this Lease. Lessee shall not extract, sell, damage, or use Mineral Resources found within the Lease Premises without Section 3 General Provisions Page 12 of 22 Form 51.16 (Rev. 4/24) specific authorization under this Lease. Lessor reserves the right to grant and transfer Mineral Resources along with the right to grant leases to third parties in and over the Lease Premises for the extraction of such Mineral Resources. Such leasing will not be inconsistent or incompatible with the rights or privileges of Lessee under this Lease. 10.4. Right to Inspect. Lessor reserves the right to inspect the Lease Premises. If access to the Lease Premises is reasonably accomplished by passing through adjacent property owned by Lessee, Lessor shall provide 24-hour notice prior to entry and Lessee shall grant such entry for inspection of the Lease Premises. 10.5. Statutory Reservations. Lessor reserves to the public an easement across the Lease Premises complying with Public Resources Code section 6210.4 and Public Resources Code section 6210.5. 10.6. Multiple Overlapping Leases Allowed. Lessor reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the Lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. Paragraph 11: Indemnity 11.1. Lessee’s Sole Risk. Lessee’s use of the Lease Premises and any Improvements thereon, including use by guests and invitees, is at Lessee’s sole and exclusive risk. 11.2. Lessee to Indemnify Lessor. Except to the extent caused by the sole negligence or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend Lessor, its officers, agents, and employees from any and all Damages resulting from Lessee’s occupation and use of the Lease Premises. Lessee shall reimburse Lessor in full for all reasonable costs and attorneys’ fees, specifically including, without limitation, any Damages arising by reason of: (1) The issuance, enjoyment, interpretation, or breach of this Lease; (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based; (3) The death or injury of any person, or damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the Lease Premises; (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work performed on the Lease Premises or material furnished to the Lease Section 3 General Provisions Page 13 of 22 Form 51.16 (Rev. 4/24) Premises; (7) Lessee’s failure to comply with any Applicable Laws or violation of any Environmental Laws; (8) The costs for any cleanup or other response costs relating to the release or threatened release of Hazardous Materials on the Lease Premises during Lessee’s occupation of the Lease Premises. This obligation includes any prior leases between Lessee and Lessor and will continue until Lessee has performed all duties under Paragraph 14. 11.3. Lessor Not Required to Defend. Lessor need not defend itself against all or any aspect of any challenge to this Lease or any associated environmental review. However, Lessee may take whatever legal action is available to it to defend this Lease or any associated environmental review against any challenge by a third party, whether or not Lessor chooses to raise a defense against such a challenge. 11.4. Lessee to Notify Lessor. Lessee shall notify Lessor immediately in case of any accident, injury, or casualty on the Lease Premises. Paragraph 12: Assignment, Encumbrance, or Sublet 12.1. Lessor’s Consent Required for Assignment. Lessee shall not mortgage; hypothecate; encumber; assign; sublet; enter into franchise, license, or concession agreements; or otherwise transfer all or part of this Lease (collectively “Assign” or “Assignment”) without Lessor’s advanced and expressed consent at a properly noticed public meeting. Any purported Assignment without Lessor’s consent will be void and of no force or effect and will not confer any estate or benefit on anyone. A consent to one Assignment by Lessor will not be deemed to be a consent to any subsequent Assignment by or to any other party. 12.2. Lessee Actions Not Considered Assignments. If Lessee is a public corporation whose stock is traded on a nationally recognized stock exchange, sale or transfer of such stock is not an Assignment. 12.3. Procedures. If Lessee desires to Assign this Lease, Lessee will apply to Lessor for the proposed Assignment. The Assignment will be considered by Lessor at a public meeting. Lessor may require any of the following in considering consent of an Assignment: (a) the nature, effective date, terms, and conditions of the assignment; (b) a description of the identity, net worth, and previous business experience of the proposed assignee; (c) a complete business plan prepared by the proposed assignee; and (d) any further information relevant to the proposed Assignment that Lessor reasonably requests. Lessor may either (i) consent to the proposed Assignment; (ii) refuse to consent to the proposed Section 3 General Provisions Page 14 of 22 Form 51.16 (Rev. 4/24) Assignment; or (iii) determine that it is preferable to terminate this Lease and issue a new lease to the proposed assignee. 12.4. Standard for Consent. Lessor may refuse its consent to the proposed Assignment on any reasonable grounds. Reasonable grounds include, without limitation: (a) the proposed assignee intends to use the Lease Premises for different activities or uses than those set forth in Section 1; (b) the proposed assignee’s financial condition is deemed by Lessor to be inadequate to support the financial and other obligations of Lessee under this Lease; (c) the business reputation or character of the proposed assignee is not reasonably acceptable to Lessor; (d) the proposed assignee is not likely to conduct a business of a quality substantially equal to that conducted by Lessee; (e) the proposed assignee’s planned use of the Lease Premises would increase the burden on the Lease Premises, involve an increased risk of the presence, use, release, or discharge of Hazardous Materials; or (f) Lessor has not received adequate assurance that all breaches will be cured before the effective date of the proposed Assignment. 12.5. Additional Terms. Lessee’s Assignment of the Lease does not release Lessee from liability for any Hazardous Materials or ordinance manufactured, generated, used, placed, disposed, stored, or transported on the Lease Premises during Lessee’s tenancy. An unauthorized assignment does not relieve Lessee from its covenants and obligations under this Lease. Lessor’s acceptance of any payment due under this Lease from any person other than Lessee will not be deemed to be a waiver by Lessor of any provision of this Lease or to be a consent to any Assignment. 12.6. Bankruptcy. If Lessee files a petition or an order for relief is entered against Lessee under the Bankruptcy Code (11 U.S.C. § 101, et seq.), then the trustee or debtor-in-possession must elect to assume or reject this Lease within sixty (60) days after filing of the petition or appointment of the trustee, or as that deadline may be extended by order of the court, or the Lease shall be deemed to have been rejected and Lessor shall be entitled to immediate possession of the Lease Premises. No assumption or assignment of this Lease shall be effective unless it is in writing and unless the trustee or debtor-in-possession has cured all breaches of this Lease (monetary and non-monetary) or has provided Lessor with adequate assurances (a) that within ten (10) days from the date of such assumption or assignment, all monetary breaches of this Lease will be cured; and (b) that within thirty (30) days from the date of such assumption, all non-monetary breaches of this Lease will be cured; and (c) that all provisions of this Lease will Section 3 General Provisions Page 15 of 22 Form 51.16 (Rev. 4/24) be satisfactorily performed in the future. 12.7. Permitted Assignments. The following Assignments are permitted under this Lease without Lessor’s consent: (a) Assignment caused by the death of a spouse where the full interest of the deceased spouse is Assigned to a surviving spouse who is a co-lessee on this Lease, provided Lessor is notified in writing within thirty (30) days of the assignment; (b) assignment caused by the dissolution of the marriage of Lessee when the full interest of one spouse is assigned to the other spouse who is a co-lessee on this Lease, provided Lessor is notified in writing within thirty (30) days of the transfer; and (c) substitution or succession of a new trustee if the Lease is held in trust and the Lessee is a trustee or successor trustee thereof, provided Lessor is notified in writing no later than sixty (60) days after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as trustee for any reason. 12.8. Lessee Remedies. If Lessor withholds or conditions its consent and Lessee believes that Lessor did so contrary to the terms of this Lease, then Lessee’s sole remedy will be to prosecute an action for declaratory relief to determine if Lessor properly withheld or conditioned its consent, and Lessee hereby waives all other remedies. Paragraph 13: Breach 13.1. Events of Breach. All covenants and agreements contained in this Lease are declared to be conditions to this Lease. Lessee’s failure to pay rent when due or any other charges under this Lease for five (5) days after written notice from Lessor to Lessee will be considered a monetary breach. Lessee’s failure to perform any other promise, covenant, or agreement under this Lease for more than thirty (30) days after written notice from Lessor to Lessee will be considered a non-monetary breach. If a non-monetary breach cannot be cured within the thirty (30)-day period, the breach will be deemed to be cured if Lessee begins to cure the breach within the thirty (30)-day period and continues to diligently complete the cure. 13.2. Breach of Lease. Lessor shall provide written notice to Lessee specifying the particulars of the breach. Should Lessee fail to cure the breach within the period specified in Paragraph 13.1, then Lessor may elect to pursue any available remedies under law, or those specified in paragraph 13.3, below. 13.3. Remedies on Breach of Lease. In addition to any other rights or remedies at law or equity, Lessor may, without further notice, (a) terminate this Lease, reenter Section 3 General Provisions Page 16 of 22 Form 51.16 (Rev. 4/24) and take possession of the Lease Premises and remove all persons and all Improvements therefrom at Lessee’s cost; or (b) keep this Lease in effect without declaring this Lease terminated and without terminating Lessee’s right to possession, reenter the Lease Premises and occupy the whole or any part for and on account of Lessee and collect any unpaid rentals and other charges that have become payable or that may thereafter become payable; or (c) terminate this Lease after reentering the Lease Premises as provided in subclause (b) above. Any notice required to be given by Lessor above will be instead of, and not in addition to, any notice required under the laws of the State of California. 13.4. Determination of Rental Value. If rent under this Lease is calculated as percentage of Lessee’s income attributable to the Lease Premises and Lessee abandons the Lease Premises, then the reasonable rental value shall be the percentage of proceeds Lessor would have received had Lessee operated the Lease Premises in the usual and customary manner. 13.5. Acceptance of Rent When Lessee is in Breach. Lessor’s acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the failure to pay the particular rent accepted regardless of Lessor’s knowledge of the preexisting Breach at the time rent is accepted, unless the breach was a monetary breach and the payment occurs during the cure period specified in Paragraph 13.1. 13.6. Acceptance of Payments After Lease Termination. Lessee’s submission or Lessor’s acceptance of any payments after the expiration or termination of this Lease shall not reinstate or extend this Lease. Lessor may elect to retain any payment submitted and apply these payments to offset any damages claimed against Lessee; or Lessor may elect to allow a holdover tenancy under Paragraph 14.6; or Lessor may elect to refund the payments less a reasonable handling fee. 13.7. Waiver of Rights. The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any Breach by the other party. Paragraph 14: Conditions of Lease Termination 14.1. Use of State Land. This Lease authorizes the use or occupation of state land for a fixed term of years without options or rights of renewal. Lessee accepts that future leases authorizing the continued existence of any Improvements Section 3 General Provisions Page 17 of 22 Form 51.16 (Rev. 4/24) constructed or maintained by Lessee on the Lease Premises are subject to a discretionary action of the California State Lands Commission. Submission of an application for a new lease does not guarantee a new lease will be granted to Lessee. Lessee acknowledges that construction of Improvements on the Lease Premises and investment in or obtaining financing for the uses authorized under this Lease is done in full understanding that future leases are not guaranteed. Lessee also affirmatively represents that the cost of removing Improvements was considered before entering into this Lease and placing or assuming any Improvements on state land. 14.2. Abandonment. Lessee’s right of access to the Lease Premises was a material consideration in Lessor issuing this Lease. If, without prior notice to Lessor, Lessee sells, abandons, or loses title to the upland property adjacent to the Lease Premises, or otherwise loses the legal right to access the Lease Premises, Lessor may deem this an abandonment of the Lease Premises. Lessee must actively maintain and manage any Improvements authorized by this Lease. Should Lessee discontinue use, management, or maintenance of the authorized Improvements, Lessor may deem this an abandonment and elect to terminate the Lease. Alternately, Lessor has the remedy described in California Civil Code section 1951.4 (Lessor may continue lease in effect after Lessee’s breach and abandonment and recover rent as it becomes due if Lessee has right to sublet or assign, subject only to reasonable limitation). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease. 14.3. Restoration. In issuing this Lease it is Lessor’s understanding that all Improvements will be removed from state land at the expiration or termination of this Lease. If Lessee abandons the Lease Premises, or Lessor terminates this Lease, or this Lease expires without execution of a new lease authorizing Lessee’s use of the Lease Premises, Lessee must: 1) remove all Improvements regardless of whether Lessee constructed or placed Improvements together with all debris at its sole expense and risk, restoring the Lease Premises to as close as possible to an unimproved condition to Lessor’s satisfaction; and 2) immediately surrender possession of the Lease Premises. Lessor may, in its sole discretion, allow all or any portion of the Improvements to remain in place. In carrying out this obligation, Lessee acknowledges that further authorizations, review of the Restoration Plan, and environmental review may be necessary as outlined in Section 14.4 below. 14.4. Two Years Prior to Expiration. (A) If Lessee desires to continue the uses authorized under this Lease, Lessee shall submit an application together with all Section 3 General Provisions Page 18 of 22 Form 51.16 (Rev. 4/24) required fees at least two years prior to the expiration of this Lease. Submission of an application does not guarantee a new lease will be granted to Lessee. (B) If Lessee does not desire to occupy the Lease Premises beyond the term of this Lease, then two years prior to the expiration of this Lease, Lessee shall submit an application, including a detailed plan to remove all Improvements and restore the Lease Premises to the condition existing prior to the installation or construction of any Improvements. The plan must include a timeline for obtaining all necessary permits. The restoration plan may require a subsequent environmental review and approval from Lessor. (C) Lessor may modify annual rent, surety and insurance within the last two years of the Lease. 14.5. Failure to Restore Lease Premises. Lessee’s failure to remove improvements, restore the Lease Premises, or surrender possession of the Lease Premises at the expiration or sooner termination of this Lease shall not constitute a renewal or extension and shall not give Lessee any rights in or to the Lease Premises or any part thereof. Lessee shall not be entitled to any compensation for Improvements left on the Lease Premises at the termination or expiration of this Lease. Lessor may, in its sole discretion, elect to treat the Improvements as abandoned and remove all or any portion of Improvements from the Lease Premises. Lessee’s failure to adequately restore the Lease Premises imposes significant financial liability on Lessor. As a result, Lessee shall be responsible for all expenses incurred by Lessor in restoring the Lease Premises, including, without limitation, staff time, environmental work or permitting, contractor costs, and reasonable attorney’s fees. 14.6. Holdover. This Lease terminates without further notice at the end of its term. Lessor may, in its sole discretion, choose to accept Rent for the Lease Premises and allow a period of holdover tenancy. Any holdover tenancy shall be on a month-to-month basis. Lessee’s submittal of annual rent during holdover does not constitute tenancy longer than month-to-month. Any holdover tenancy shall be on the same terms as this Lease insofar as such terms can be applicable to a month-to-month tenancy. The rent for each month or any portion thereof during such holdover period is one hundred fifty percent (150%) of one-twelfth (1/12) of the total compensation for the most recent year paid. The month-to-month tenancy may be terminated by Lessor upon thirty (30) calendar days’ prior written notice to Lessee. 14.7. Holdover on Leases with No Monetary Consideration. In the event this Lease does not require monetary consideration, 14.6 shall continue to apply, and in addition: 1) Lessor shall have the right to establish rent based on the fair Section 3 General Provisions Page 19 of 22 Form 51.16 (Rev. 4/24) market value of the Lease Premises, and 2) In no way shall the prior lease consideration limit damages for trespass. 14.8. Quitclaim. In the event this Lease is terminated prior to expiration, Lessee shall deliver a quitclaim of all rights under this Lease to Lessor on request. Lessee shall execute and deliver such quitclaim to Lessor in a form provided by Lessor. Should Lessee fail or refuse to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against Lessee of the termination of this Lease and all other claimants. Paragraph 15: Additional Provisions 15.1. Conflict in Terms. In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control. 15.2. Boundaries. This Lease does not establish the State's boundaries in so far as it relates to land and resource jurisdiction and ownership and is made without prejudice to either party regarding any land and water boundary or title claims which may be asserted presently or in the future. 15.3. No Waiver. Lessor’s acceptance of a late or nonconforming performance shall not constitute a waiver unless such waiver is expressly acknowledged by Lessor in writing. Lessor’s delay in or omission to exercise any right under this Lease shall not constitute a waiver. 15.4. Time is of the Essence. Time is of the essence for this Lease and each and all of its terms, covenants or conditions in which performance is a factor. 15.5. Notice. All notices required to be given under this Lease shall be given in writing, sent by U.S. Mail or other reputable private carrier with postage prepaid, to Lessor at the offices of the State Lands Commission and the Lessee at the address specified in this Lease. Lessor’s staff and Lessee may agree to accept any notice by electronic mail. Lessee shall give Lessor notice of any change in its name or address. 15.6. Consent. Lessor’s consent to one transaction or event shall not be deemed to be a consent to any subsequent occurrence. 15.7. Changes. This Lease may only be amended, revised, or supplement by written agreement of the Parties. 15.8. Joint and Several Obligation. If more than one Lessee is a party to this Section 3 General Provisions Page 20 of 22 Form 51.16 (Rev. 4/24) Lease, the obligations of the Lessees shall be joint and several. 15.9. Captions. The section and paragraph captions used in this Lease are for the convenience of the Parties. The captions are not controlling and shall have no effect upon the construction or interpretation of this Lease. 15.10. Severability. If any term, covenant, or condition of this Lease is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and enforceable to the fullest extent permitted by law. 15.11. Representations. Lessee agrees that no representations have been made by Lessor or by any person or agent acting for Lessor except those stated in this Lease. This document contains the entire agreement of the Parties. No verbal agreements, representations, warranties, or other understandings affect this Lease. Lessor and Lessee, as a material part of the consideration of this Lease, waive all claims against the other for rescission, damages, or otherwise by reason of any alleged covenant, agreement, or understanding not contained in this Lease. 15.12. Gender and Plurality. In this Lease, words importing any gender include any or all genders, and the singular number includes the plural whenever the context so requires. 15.13. Survival of Certain Covenants. All covenants pertaining to bond, insurance, indemnification, restoration obligations, breach or remedies shall survive the expiration or earlier termination of this Lease until Lessee has fulfilled all obligations to restore the Lease Premises as required by this Lease. 15.14. Counterparts. This agreement may be executed in any number of counterparts and by different Parties in separate counterparts. 15.15. Delegation of Authority. Lessor and Lessee acknowledge that Lessor as defined herein includes the Commission Members, their alternates or designees, and the staff of the Commission. The ability of staff of the Commission to give consent, or take other discretionary actions described herein will be as described in the then-current delegation of authority to Commission staff. All other powers are reserved to the Commission. 15.16. Successors. The terms, covenants, and conditions of this Lease shall extend to and be binding upon and inure to the benefit of the heirs, successors, and assigns of the respective parties. Section 3 General Provisions Page 21 of 22 Form 51.16 (Rev. 4/24) [Remainder of the page left intentionally blank.] Section 3 General Provisions Page 22 of 22 Form 51.16 (Rev. 4/24) STATE OF CALIFORNIA - STATE LANDS COMMISSION LEASE NUMBER: 8034 This Lease shall become effective only when approved by and executed on behalf of the State Lands Commission of the State of California and Lessee. The submission of this Lease by Lessor, its agent, or representative for examination by Lessee does not constitute an option or offer to lease the Lease Premises upon the terms and conditions contained herein, or a reservation of the Lease Premises in favor of Lessee. Lessee's submission of an executed copy of this Lease to Lessor shall constitute an offer to Lessor to lease the Lease Premises on the terms and conditions set forth herein. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date hereafter affixed. LESSEE: CITY OF BURLINGAME By: ________________________________ Title: ________________________________ Date: _______________________________ LESSOR: STATE OF CALIFORNIA STATE LANDS COMMISSION By: _________________________________ ROBERT BRIAN BUGSCH Title: Chief, Land Management Division Date: ________________________________ Execution of this document was authorized by the California State Lands Commission on _______________________________. ATTACH ACKNOWLEDGMENT Page 1 of 2 EXHIBIT A LEASE 8034 LAND DESCRIPTION PARCEL 1 A 33 foot wide strip of State owned land in the city of Burlingame, County of San Mateo, being a portion of Parcel H as shown in Volume 52 of Parcel Maps at Page 70 in the records of said County, and a portion of Parcel A as shown in Volume 61 of Maps at Pages 20 and 21 in the records of said County, lying 12 feet Northerly and 21 feet Southerly of the following described line: BEGINNING at the westerly terminus of the line described as East 230.31 feet, as shown on said map filed in Volume 61 of maps at Page 21; thence along the westerly prolongation of said line, across said Parcel A and said Parcel H West 138 feet to the terminus of said strip. The sidelines of said strip are to be prolonged or shortened so as to commence at the easterly line of said Parcel A, and terminate a point perpendicular to the terminus of said strip. PARCEL 2 A parcel of State owned land in the City of Burlingame, County of San Mateo, being a portion of Parcel H as shown in Volume 52 of Parcel Maps at Page 70 in the records of said County, more particularly described as follows: COMMENCING at westerly corner of said Parcel H, said corner being the westerly terminus of that line described as N 85°44’23” W 971.30 feet as shown on said Map, thence along the northerly and westerly boundary of said Parcel H, S 85°44’23” E 620.76 feet to the POINT OF BEGINNING; thence along said northerly and westerly boundary, S 85°44’23” E 350.54 feet; thence N 0°17’00” W 244.07 feet; thence leaving said northerly and westerly boundary to a point on the easterly boundary of said Parcel H, N 89°43’ 00” E 50.00 feet; thence along the easterly and southerly boundary of said Parcel H the following four (4) course: 1) S 0°17’00” E 319.28 feet; 2) S 64°00’00” W 19.88 feet; 3) N 0°00’00” E 31.11 feet; 4) N 85°44’23” W 379.37 feet; thence leaving said easterly and southerly boundary N 4°15’37” W 50.56 feet to the POINT OF BEGINNING. Page 2 of 2 END OF DESCRIPTION Prepared by the California State Lands Commission Boundary Unit August 21, 2024. PROFESSIO N A L LAND S U RVEYORST A TE OF CA L I F O RNIADANIE L J .F R I NKNo.8 8 6 4 LEASE PARCEL 2 APN 026-363-470 APN 026-363-470BAY FRONT CHANNELAIRPORT BLVD. LEASE PARCEL 1 APN 026-363-230LEASE 8034 CITY OF BURLINGAME APN 026-363-230 & 470 GENERAL LEASE - PUBLIC AGENCY USE SAN MATEO COUNTY MAP SOURCE: USGS QUAD ANZA PARK, CITY OF BURLINGAME THIS EXHIBIT IS SOLELY FOR PURPOSES OF GENERALLY DEFINING THE LEASE PREMISES, IS BASED ON UNVERIFIED INFORMATION PROVIDED BY THE LESSEE OR OTHER PARTIES AND IS NOT INTENDED TO BE, NOR SHALL IT BE CONSTRUED AS, A WAIVER OR LIMITATION OF ANY STATE INTEREST IN THE SUBJECT OR ANY OTHER PROPERTY.DJF 8/21/2024 EXHIBIT BNO SCALE SITE LOCATION SITE NO SCALE N N SITE SAN FRANCISCO BAY BURLINGAME 1 Meeting Date: 10/17/24 Lease Number: 8034 Staff: M. Schroeder Staff Report 22 APPLICANT: City of Burlingame PROPOSED ACTION: Issuance of a General Lease – Public Agency Use. AREA, LAND TYPE, AND LOCATION: Sovereign land in the Bay Front Channel, adjacent to Assessor’s Parcel Number 026- 363-470, Burlingame, San Mateo County (as shown in Figure 1). Figure 1. Location Staff Report 22 (continued) 2 AUTHORIZED USE: Use of a bicycle and pedestrian bridge and abutment, maintenance easement, and one water pipe attached to the bridge. (as shown in Figure 2). Figure 2. Site Map NOTE: This depiction of the lease premises is based on unverified information provided by the Applicant or other parties and is not a waiver or limitation of any State interest in the subject or any other property. TERM: 25 years, beginning October 17, 2024. CONSIDERATION: The public use and benefit, with the State reserving the right at any time to set a monetary rent if the Commission finds such action to be in the State’s best interests. Staff Report 22 (continued) 3 SPECIFIC LEASE PROVISIONS:  Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend Lessor from all damages, injuries, or claims arising from the construction, maintenance, or operation of Lessee’s facilities on State land, including any attached, suspended, or otherwise fixed to the improvements. Further, Lessee shall indemnify the State for the period of occupation prior to October 17, 2024.  Lessee shall not install, attach, or authorize the placement or attachment of any additional utilities or other improvements on the bridge or within the Lease Premises without Lessor’s prior review and approval. STAFF ANALYSIS AND RECOMMENDATION: AUTHORITY: Public Resources Code sections 6005, 6216, 6301, 6501.1, and 6503; California Code of Regulations, title 2, sections 2000 and 2003. PUBLIC TRUST AND STATE’S BEST INTERESTS: On June 19, 1998, the Commission authorized a 25-year General Lease – Public Agency Use to the Applicant for installation of a bicycle and pedestrian bridge abutment, along with maintenance and construction easement (Item 85, June 19, 1998). That lease expired on April 30, 2023. The Applicant is now applying for a General Lease – Public Agency Use, for the use of a bicycle and pedestrian bridge and abutment, maintenance easement, and one water pipe attached to the bridge. The bridge abutment, prefabricated steel bicycle and pedestrian bridge, and one water pipe have existed for many years at this location. The bridge provides the regional and statewide public the ability to cross and re-cross the Bay Front Channel. In addition, the bridge is part of the San Francisco Bay Trail consisting of several miles of trails allowing the public to explore the San Francisco Bay and shoreline. The bridge has an attached water pipe owned and operated by the Applicant. The water pipe provides critical infrastructure for conveyance of water in support of the Applicant’s operations on both sides of the waterway. The proposed lease includes provisions protecting the public use of the proposed lease area. Furthermore, the bridge and water pipe do not substantially interfere Staff Report 22 (continued) 4 with Public Trust uses in this area. The public can enjoy use of the waterway for recreational Public Trust activities. The proposed lease does not alienate the State’s fee simple interest or permanently impair public rights. The lease is limited to a 25-year term and does not grant the lessee exclusive rights to the lease premises, which allows the Commission flexibility to determine if the Public Trust needs of the area have changed over time. Upon termination of the lease, the lessee may be required to remove all improvements from State land and restore the lease premises to their original condition. The proposed lease requires the lessee to indemnify the State for any liability incurred as a result of the lessee’s activities thereon. CLIMATE CHANGE: Climate change impacts, including sea level rise, increased wave activity, storm events, and flooding may impact the pedestrian/bike bridge and abutment subject to the proposed lease, located on the Bay Front Channel. The California Ocean Protection Council updated the State of California Sea-Level Rise Guidance in 2018 to provide a synthesis of the best available science on sea level rise projections and rates. Commission staff evaluated the “high emissions,” “medium-high risk aversion” scenario to apply a conservative approach based on both current emission trajectories and the lease location and structures. The San Francisco gauge was used for the projected sea level rise scenario for the lease area as listed in Table 1. Table 1. Projected Sea Level Rise for San Francisco Year Projection (feet) 2030 0.8 2040 1.3 2050 1.9 2100 6.9 Source: Table 13, State of California Sea-Level Rise Guidance: 2018 Update Note: Projections are with respect to a 1991 to 2009 baseline. As stated in the Safeguarding California Plan: 2018 Update (California Natural Resources Agency 2018), climate change is projected to increase the frequency and severity of natural disasters related to flooding, drought, and storms (especially when coupled with sea level rise). In tidally influenced waterways, more frequent and powerful storms can result in increased flooding conditions and damage from storm-created debris, especially when storms coincide with high tides. Climate Staff Report 22 (continued) 5 change and sea level rise will further influence coastal and riverine areas by changing erosion and sedimentation rates. Waterfront areas will be exposed to higher water levels, potentially resulting in greater bank erosion and scour than previously experienced. The increase in sea level combined with more frequent and stronger storm events will likely expose the lease area to higher flood risks, comprised of greater total water levels for longer periods of time. The pedestrian/bike bridge (including abutment and water pipe) is a fixed structure that may need additional reinforcement to withstand higher levels of flood exposure, scouring, and more frequent storm events. Regular maintenance, as referenced in the lease, may reduce the likelihood of severe structural degradation or dislodgement. Pursuant to the proposed lease, the Applicant acknowledges that the lease premises and adjacent upland are located in an area that may be subject to the effects of climate change, including scour, sea level rise, and extreme storm events. The pedestrian/bike bridge (including abutment and water pipe) could be impacted by higher water levels and increased scouring towards the later years of the lease term. Any adaptation strategies applied to the pedestrian/bike bridge (including abutment and water pipe) to reduce scouring and flood risks should not adversely impact equitable public access in the area, water quality, shoreline habitat, wildlife, or public health and safety. The Commission prefers nature-based adaptation strategies as explained in the 2023 Shoreline Adaptation Report. Staff also encourages further consideration of the living shorelines strategy that was proposed for this location in the City of Burlingame’s Understanding Risks and Vulnerabilities Memorandum. CONCLUSION: For all the reasons above, staff believes the issuance of the proposed lease will not substantially interfere with Public Trust rights to navigation, fishing, and commerce; or substantially interfere with Public Trust needs and values at this location, at this time, and for the term of the lease; and is in the best interests of the State. OTHER PERTINENT INFORMATION: 1. Approval or denial of the application is a discretionary action by the Commission. Each time the Commission approves or rejects a use of sovereign land, it exercises legislatively delegated authority and responsibility as trustee of Staff Report 22 (continued) 6 the State’s Public Trust lands as authorized by law. The lessee has no right to a new lease or to renewal of any previous lease. 2. This action is consistent with the “Meeting Evolving Public Trust Needs” and “Leading Climate Activism” Strategic Focus Areas of the Commission’s 2021- 2025 Strategic Plan. 3. Staff recommends that the Commission find that this activity is exempt from the requirements of the California Environmental Quality Act (CEQA) as a categorically exempt project. The project is exempt under Class 1, Existing Facilities; California Code of Regulations, title 2, section 2905, subdivision (a)(2). Authority: Public Resources Code section 21084 and California Code of Regulations, title 14, section 15061 and California Code of Regulations, title 2, section 2905. RECOMMENDED ACTION: It is recommended that the Commission: CEQA FINDING: Find that the activity is exempt from the requirements of CEQA pursuant to California Code of Regulations, title 14, section 15061 as a categorically exempt project, Class 1, Existing Facilities; California Code of Regulations, title 2, section 2905, subdivision (a)(2). PUBLIC TRUST AND STATE’S BEST INTERESTS: Find that the proposed lease will not significantly impair the public rights to navigation or substantially interfere with the Public Trust needs and values at this location, at this time, and for the term of the lease; and is in the best interests of the State. AUTHORIZATION: Authorize issuance of a General Lease – Public Agency Use to the Applicant, beginning October 17, 2024, for a term of 25 years, for the use of a bicycle and pedestrian bridge and abutment, maintenance easement, and one water pipe attached to the bridge; consideration: the public use and benefit, with the State reserving the right at any time to set a monetary rent if the Commission finds such action to be in the State’s best interests. MINUTE ITEM This Calendar Item No. C$5 was approved as Minute Item No. 85 by the California State Lands Commission by a vote of 3 to - at its 6-19-d meeting. CALENDAR ITEM C85 A 19 06/19/98 W 25449 N. Smith GENERAL LEASE - PUBLIC AGENCY USE APPLICANT: City of Burlingame 501 Primrose Road Burlingame, California 94010 AREA, LAND TYPE, AND LOCATION: 0.77 acres, more or less, of sovereign lands in Bay Front Channel and Sanchez Creek Lagoon, city of Burlingame, San Mateo County. AUTHORIZED USE: Installation of pedestrian/bike bridge abutment, along with maintenance and construction easement. LEASE TERM: 25 years, beginning May 1, 1998. CONSIDERATION: The public use and benefit; with State reserving the right at any time to set a monetary rent if the Commission finds such action to be in the State's best interest. OTHER PERTINENT INFORMATION: 1 . Applicant has a right to use the uplands adjoining the lease premises. 2. On April 26, 1994, the San Francisco Bay Conservation and Development Commission (BCDC) granted Permit # M93-46 under its certified program. (Title 14, California Code of Regulations, section 15251 (h)). 3. Staff has reviewed the document and determined that the conditions, as specified in Title 14, California Code of Regulations, section 15253 (b) have been met for the Commission to use the environmental analysis document certified by the BCDC as a (Negative Declaration) equivalent in order to comply with the requirements of the CEQA. -1- CALENDAR PAGE MINUTE PAGE 407 CALENDAR ITEM NO. C85 (CONT'D) APPROVALS OBTAINED: San Francisco Bay Conservation and Development Commission EXHIBITS: A. Land Description B. Location Map PERMIT STREAMLINING ACT DEADLINE: December 7, 1998 RECOMMENDED ACTION: IT IS RECOMMENDED THAT THE COMMISSION: CEQA FINDING: FIND THAT AN ENVIRONMENTAL ANALYSIS DOCUMENT, SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT, ( BCDC PERMIT # M93-46), WAS ADOPTED FOR THIS PROJECT BY THE COMMISSION (BCDC) UNDER ITS CERTIFIED PROGRAM (TITLE 14, CALIFORNIA CODE OF REGULATIONS, SECTION 15251 (h)), AND THAT THE CALIFORNIA STATE LANDS COMMISSION HAS REVIEWED AND CONSIDERED THE INFORMATION THEREIN AND CONCURS IN BCDC'S DETERMINATION. AUTHORIZATION: AUTHORIZE ISSUANCE TO THE CITY OF BURLINGAME OF A GENERAL LEASE - PUBLIC AGENCY USE, BEGINNING MAY 1, 1998, FOR A TERM OF 25 YEARS, FOR INSTALLATION OF PEDESTRIAN/BIKE BRIDGE ABUTMENT, ALONG WITH MAINTENANCE AND CONSTRUCTION EASEMENT ON THE LAND DESCRIBED ON EXHIBIT A ATTACHED AND BY THIS REFERENCE MADE A PART HEREOF; THE PUBLIC USE AND BENEFIT; WITH THE STATE RESERVING THE RIGHT AT ANY TIME TO SET A MONETARY RENT IF THE COMMISSION FINDS SUCH ACTION TO BE IN THE STATE'S BEST INTEREST. -2- CALENDAR PAGE MINUTE PAGE 408 Exhibit A Land Description W 25449 PARCEL 1 Real Property in the city of Burlingame, County of San Mateo. a portion of Parcel H as shown in Volume 52 of Parcel Maps at Page 70 in the records of said County, being described as follows: Beginning at the most southerly corner of said Parcel H. thence N 64 00'00" E. 19.88 feet: Thence N 0017'00" W, 46.35 feet to the True Point of Beginning: Thence S 89 43'00" W. 35.00 feet Thence N 00 17'00" W. 33.00 feet Thence N 89 43'00" E, 35.00 feet Thence S 0017'00" E, 33.00 feet to the True Point of Beginning and containing 1155 square feet of land more or less. PARCEL 2 Real Property in the City of Burlingame, County of San Mateo, a portion of Parcel H as shown in Volume 52 of Parcel Maps at Page 70 in the records of said County, being described as follows: Beginning at the most westerly corner of Parcel A as shown in Volume 28 of Parcel Maps at page 39, said point being on the southeasterly right-of-way line of Airport Boulevard as shown on said map; Thence S 46 00'00" E, 588.29 feet to a point on the northerly line of said Parcel H; Thence S 85 44'23" E, 54.39 feet to the True Point of Beginning; Thence S 85 44'23" E, 343.05 feet: Thence N 00 17'00" W, 244.07 feet: Thence N 8943'00" E, 50.00 feet; Thence S 00 17'00" E. 319.27 feet; Thence S 64 00'00" W, 19.88 feet; Thence N 00 00'00" E, 31.11 feet; Thence N 85 44'23" W, 379.37 feet; Thence N 04 15'37" W, 50.00 feet to the True Point of Beginning and containing 0.747 acres of land more or less. REVIEWED BY SFBCC BOUNDARY STAFF APRIL 1998 CALENDAR PAGE MINUTE PAGE 409 W Sacramento IS A CR Adenopie Dirun dyes NORTH Er Verane Napa 's A O Failtield verton Monthrums Beds Landing burSanta Island San Ratan Sen San Pabid Concord Queming. forte PULL M.oder Rive Hall ANBerTiburonfin Car OF BERKSausalito Poems Labes SAN FRANC FRANCISC Daly City urbane San Francisco San Bruno NYS Exhibit BPacifica W 25449Burlinga SITE Moss Beachb San Gregono 410CALENDAR PAGEN Lom Pescadero Perme 002656MINUTE PAGE