HomeMy WebLinkAbout07.a. Consider adopting CoCo San Sustainable Farm Business PlanCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: July 3, 2014
Subject: ACCEPT THE COCO SAN SUSTAINABLE FARM BUSINESS PLAN AS
MEETINGTHE INTENT OF THE LEASE AGREEMENT AND ADOPT A
RESOLUTION AUTHORIZING STAFF TO RECORD A MEMORANDUM
OF LEASE
Submitted By: Initiating Dept. /Div.:
Danea Gemmell Engineering /Environmental Services
Environmental Services Division Manager
REVIEWED AND RECOMMENDED FOR BOARD ACTION: `
r
Kent Alm Roger S. Bailey
District Counsel General Manager
ISSUE: The Board authorized the General Manager to execute a Lease Agreement
with AgLantis on April 17, 2014 and determined that the effective date would
commence after review and approval of a Business Plan for the COCO San
Sustainable Farm.
RECOMMENDATION: Accept the Coco San Sustainable Farm Business Plan
presented by AgLantis as meeting the intent of the Lease Agreement approved by the
Board, making the effective date of the lease July 3, 2014, and adopt a resolution
authorizing staff to record a Memorandum of Lease with the Contra Costa County
Recorder.
FINANCIAL IMPACTS: None by this action.
ALTERNATIVES /CONSIDERATIONS: The Board could request modifications to the
Business Plan.
BACKGROUND: On April 17, 2014, the Board authorized the General Manager to
execute a lease with AgLantis for a period not to exceed ten years, subject to approval
by the Ad Hoc Committee of seven modifications to the proposed lease terms. In
addition, the Board determined that the effective date of lease would be upon approval
by the Board of a business plan, which was required to be submitted by the project
proponent within 60 days.
The modifications were incorporated into the lease, approved by the Ad Hoc
Committee, and subsequently signed by AgLantis and the General Manager (See
Attachment 1.) One of the modifications changed the Performance Goals in Exhibit "D"
of the Lease Agreement to Performance Requirements, which if unmet would be the
basis for default of the lease terms. These performance requirements are the minimum
acceptable standards that the District felt were necessary to show progress on
the Farm.
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POSITION PAPER
Board Meeting Date: July 3, 2014
subject: ACCEPT THE COCO SAN SUSTAINABLE FARM BUSINESS PLAN AS
MEETINGTHE INTENT OF THE LEASE AGREEMENT AND ADOPT A
RESOLUTION AUTHORIZING STAFF TO RECORD A MEMORANDUM OF
LEASE
The proposed Business Plan was received at the District on June 15, 2014. The Plan
includes both the minimum Performance Requirements as well as other aspirational
goals for the duration of the ten -year lease term. The project proponent intends to
utilize this document for multiple purposes including fundraising, volunteer solicitations
and public outreach. To that end, the Business Plan includes long -range visions, such
as the Sustainable Teaching Center, that have not yet been fully developed. Because
there are components of the Business Plan that are not directly authorized under the
current Lease Agreement, District Counsel and the Ad Hoc Committee recommended
that the Board consider "acceptance" rather than "approval" of the Business Plan to
commence the Effective Date of the Lease, notwithstanding previous direction by the
Board requiring approval of the Business Plan to activate the effective date of the lease
agreement. Acceptance of the Business Plan would not imply endorsement or approval
of these future contemplated improvements. Any future alterations to the site, not
currently specified in the Lease Agreement, will be addressed in accordance with
Section 6.1 of the Lease Agreement.
The terms of the Lease Agreement provide for a Memorandum of Lease to be recorded
with the Contra Costa County Recorder. As such, a resolution authorizing staff to do so
is required.
AD HOC COMMITTEE RECOMMENDATION: The Ad Hoc Committee reviewed the
Business Plan at its meeting on June 26, 2014 and requested clarifications from the
project proponent. The Committee determined that the Business Plan provides the
basis to perform the minimum requirements for the intent of the lease and
recommended that the Board accept the Business Plan rather than approve it as
previously directed by the Board on April 17, 2014.
RECOMMENDED BOARD ACTION: Accept the Coco San Sustainable Farm Business
Plan presented by AgLantis as meeting the intent of the Lease Agreement approved by
the Board, making the lease effective July 3, 2014, notwithstanding previous direction
by the Board on April 17, 2014 to require approval of the Business Plan to activate the
effective date of the Lease Agreement; and adopt a resolution authorizing staff to
record the Memorandum of Lease with the Contra Costa County Recorder.
Attached Su000rtino Documents:
1. Signed AgLantis Lease Agreement
2. Memorandum of Lease Agreement
3. Business Plan
4. Resolution
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Item 7.a.
Attachment 1
Signed AgLantis Lease
Agreement
ATTACHMENT 1
LEASE AGREEMENT
by and between
CENTRAL CONTRA COSTA SANITARY DISTRICT
TIM
AGLANTIS
A California Non - Profit Public Benefit Corporation
for the
COCO SAN SUSTAINABLE FARM PROJECT
Property located in
Contra Costa County at the Kiewit Property (APN 159 -140 -051)
April 18, 2014
April 18, 2014
TABLE OF CONTENTS
RECITALS................................................................................................................................... ............................... 3
ARTICLE I DEFINITIONS, DEMISE OF PROPERTY .......................................................... ..............................3
1.1 DEFINITIONS ........................................................................................................ ..............................3
1.2 INCORPORATION OF RECITALS ........................................................................... ............................... 5
1.3 CREATION OF LEASE .......................................................................................... ............................... 5
1.4. CONDITION OF TITLE .......................................................................................... ............................... 5
ARTICLE II TERM OF LEASE, RENT, SECURITY DEPOSIT ........................................... ..............................5
2.1 TERM .................................................................................................................. ............................... 5
2.2 RENT .................................................................................................................. ............................... 6
2.3 ADDITIONAL TENANT PAYMENTS ...................................................................... ............................... 6
2.4 TRIPLE NET LEASE ............................................................................................. ............................... 6
2.5 SURRENDER ......................................................................................................... ..............................7
ARTICLE III TAXES, ASSESSMENTS AND OTHER CHARGES ....................................... ..............................7
3.1 IMPOSITIONS ....................................................................................................... ............................... 7
3.2 TENANT RIGHT TO CONTEST .............................................................................. ............................... 8
3.3 TENANT DUTY TO FILE ....................................................................................... ............................... 8
ARTICLE IV MANAGEMENT, USE AND OPERATION OF THE PROPERTY ............... ..............................8
4.1
PERMITTED USES ................................................................................................ ............................... 8
4.2
PERFORMANCE AGREEMENT .............................................................................. ...............................
9
4.3
EASEMENTS, RESERVATION OF RIGHTS .............................................................. ............................... 9
4.4
MAINTENANCE, SECURITY AND INSPECTION OF THE PREMISES .......................... ...............................
9
4.5
DISTRICT'S RIGHT TO PERFORM TENANT OBLIGATIONS .................................. ...............................
10
4.6
DISTRICT NOT OBLIGATED TO PERFORM REPAIRS ........................................... ...............................
10
4.7
COMPLIANCE WITH LAWS ................................................................................ ...............................
10
4.8
TENANT RIGHT TO CONTEST ............................................................................ ...............................
11
4.9
ANNUAL REPORTING OBLIGATION .................................................................. ...............................
11
4.10
UTILITIES ........................................................................................................... .............................11
4.11
NONDISCRIMINATION ......................................................................................... .............................11
ARTICLE V CONDITION OF THE PREMISES; ENVIRONMENTAL MATTERS ......... .............................12
5.1
CONDITION OF THE PREMISES ............................................................................. .............................12
5.2
TENANT'S COVENANTS .................................................................................... ............................... 12
5.3
RELEASE OF CLAIMS ........................................................................................ ............................... 13
5.4
ENVIRONMENTAL INDEMNITY .......................................................................... ............................... 14
5.5
DEFINITIONS ....................................................................................................... .............................14
ARTICLE VI ALTERATIONS AND NEW CONSTRUCTION ............................................. .............................15
6.1
CHANGES AND ALTERATIONS ........................................................................... ...............................
15
6.2
NO RIGHT TO DEMOLISH .................................................................................. ...............................
16
6.3
COMPLIANCE WITH LAWS ................................................................................ ...............................
16
6.4
RIGHTS OF ACCESS ........................................................................................... ...............................
16
6.5
INDEMNITY ....................................................................................................... ...............................
16
6.6
MECHANIC'S LIENS .......................................................................................... ...............................
17
6.7 CONTEMPLATED IMPROVEMENTS .............................................:....................... ............................... 17
ARTICLE VII INDEMNITY AND INSURANCE .................................................................... .............................17
7.1 INDEMNITY ....................................................................................................... ............................... 17
7.2 INSURANCE REQUIREMENTS ............................................................................. ............................... 18
ARTICLE VIII DAMAGE AND DESTRUCTION .................................................................. .............................19
8.1 DAMAGE OR DESTRUCTION .............................................................................. ............................... 19
8.2 NOTICE REQUIRED ........................................................................................... ............................... 19
8.3 DISTRICT'S RIGHT TO TERMINATE ................................................................... ............................... 20
ARTICLE IX SECURITY AND PREMISES CLEAN -UP BOND .......................................... .............................20
9.2 SECURITY DEPOSIT OR PREMISES CLEAN -UP BOND ......................................... ............................... 20
ARTICLE X AGENCY'S RIGHT TO PERFORM TENANT'S COVENANTS ................... .............................21
ARTICLEXI MORTGAGES ..................................................................................................... .............................21
11.1 NON - SUBORDINATION OF FEE .......................................................................... ............................... 21
ARTICLE XII ASSIGNMENT, TRANSFER, SUBLETTING; NONDISTURBANCE AND ATTORNMENT
....................................................................................................................................... ............................... 21
12.1 RESTRICTIONS ON TRANSFER, ASSIGNMENT AND ENCUMBRANCE ................... ............................... 21
12.2 NO INVOLUNTARY TRANSFERS ........................................................................ ............................... 21
12.3 ASSUMPTION AGREEMENT AND RELEASE ........................................................ ............................... 22
12.4 SALE BY DISTRICT ............................................................................................ ............................... 22
ARTICLE XIII DEFAULT, REMEDIES AND TERMINATION .......................................... .............................22
13.1
EVENT OF DEFAULT ......................................................................................... ...............................
22
13.2
NOTICE AND OPPORTUNITY TO CURE ............................................................... ...............................
23
13.3
REMEDIES UPON DEFAULT ............................................................................... ...............................
24
13.4
REMEDIES CUMULATIVE .................................................................................. ...............................
25
13.5
NO ELECTION OF REMEDIES ............................................................................. ...............................
25
13.6
SURVIVAL OF OBLIGATIONS ............................................................................. ...............................
25
ARTICLE XIV GENERAL PROVISIONS ............................................................................... .............................25
14.1
FORCE MAJEURE, EXTENSION OF TIMES OF PERFORMANCE ............................. ...............................
25
14.3
REPRESENTATIONS OF DISTRICT AND TENANT ................................................. ...............................
26
14.4
MISCELLANEOUS ................................................................................................ .............................26
14.4.1
NOTICES ............................................................................................................. .............................27
14.4.2
CAPTIONS, CONSTRUCTION .............................................................................. ...............................
27
14.4.3
SUCCESSORS AND ASSIGNS .............................................................................. ...............................
28
14.4.4
SHORT FORM OF LEASE ...................................................................................... .............................26
14.4.5
GOVERNING LAW ............................................................................................. ...............................
28
14.4.6
ATTORNEY'S FEES ............................................................................................ ...............................
28
14.4.7
INDEMNITY INCLUDES DEFENSE COSTS ........................................................... ...............................
28
14.4.8
NO THIRD PARTY BENEFICIARIES, DISCLAIMER OF PARTNERSHIP, LENDER/BORROWER
RELATIONSHIP.................................................................................................. ...............................
28
14.4.9
ENTIRE AGREEMENT ........................................................................................ ...............................
28
14.4.10
WAIVER, MODIFICATION .................................................................................. ...............................
29
14.4.11
TIME IS OF THE ESSENCE .................................................................................. ...............................
29
14.4.12
COUNTERPARTS .................................................................................................. .............................29
14.4.13
ACTION BY THE PARTIES .................................................................................. ...............................
29
14.4.14
MUTUAL NON - LIABILITY OF OFFICIALS AND EMPLOYEES ................................. ...............................
29
2
This LEASE AGREEMENT (this "Lease" or this "Agreement "), dated as of ,
2014 (the "Effective Date "), is entered into by and between the CENTRAL CONTRA COSTA
SANITARY DISTRICT, a California special district ( "District ") and AGLANTIS, a California
Non - profit Public Benefit Corporation ( "Tenant "), currently Doing Business As CoCo San
Sustainable Farm. District and Tenant are collectively referred to in this Agreement as the
"Parties."
RECITALS
A. Under Health & Safety Code § 6514.1(e), the District can lease property not
to exceed ten (10) years without subjecting the lease of the property to a competitive bid
process.
B. The District is the owner of fee title to real property located at Imhoff Drive,
Martinez, Contra Costa County (the "Property "), known as APN 159- 140 -051, as more
particularly described in Exhibit "A" attached hereto and incorporated herein by this reference.
C. The Tenant desires to lease from the District a portion of the Property consisting
of approximately fourteen and eight tenths (14.8) acres (the "Premises "), as depicted in Exhibit
"B" attached hereto and incorporated herein by this reference.
D. The property subject to this lease is required by the District to be used as a
buffer zone. The Tenant desires to lease the Premises from the District for a term up to ten (10)
years for the creation of CoCo San Sustainable Farm to (i) directly support the District's
mission to foster sustainable and renewable practices, including recycled water; (ii) teach
sustainable living practices, recycled water science, Delta awareness, sustainable watershed
practices, integrated pest management, pollution prevention, soils science and other science
related to the District's educational programs; (iii) promote the District's environmental
messages, including collecting and diverting household hazardous waste for proper reuse or
disposal; (iv) showcase green technologies, including fostering green building practices and
green jobs; and (v) demonstrate how to reduce the carbon and environmental footprint of food
production and distribution (collectively, the "Sustainable Farm ").
E. The use of the Sustainable Farm for teaching and educational purposes benefits
the constituents of the District within central Contra Costa County.
F. District desires to lease the Premises to Tenant under the terms and conditions of
this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, including the benefits to the District and public set forth in the
Recitals above, the District and the Tenant hereby agree as of the Effective Date as follows.
ARTICLE I
DEFINITIONS, DEMISE OF PROPERTY
1.1 Definitions. For purposes of this Agreement, the following terms have the meanings set
forth in this section. Additional definitions are set forth in the Recitals and the text of this
Agreement.
(a)
"Agreement" is defined on page 3.
(b)
"Applicable Laws" is defined in paragraph 6.2.
(c)
"As -is" is (not defined)
(d)
"Border Zone Property" is defined in paragraph 5.2(c).
(e)
"Claims" is defined in paragraph 3.2.
(f)
"Commencement Date" is defined in paragraph 2.1.
(g)
"Default Rate" is defined in paragraph 10.2.
(h)
"District" is defined on page 3.
(i)
"Effective Date" is defined on page 3.
0)
"Events of Default" is defined in paragraph 13.1.
(k)
"Expiration Date" is defined in paragraph 2.1.
(1)
"Force Majeure" is defined in paragraph 14.1
(m)
"Hazardous Materials" is defined in paragraph 5.5.1.
(n)
"Hazardous Materials Claims" is (not defined)
(o)
"Hazardous Materials Laws" is defined in paragraph 5.5.2.
(p)
"Impositions" is defined in paragraph 3.1.
(q)
"Improvements" is defined in paragraph 6.1.
(r)
"Indemnitees" is defined in paragraph 3.2.
(s)
"Land Use Claims" is defined in paragraph 5.2(c).
(t)
"Late Payment Penalty" is (not defined)
(u)
"Lease" is defined on page 3.
(v)
"Lease Termination" is defined in paragraph 2.1.
(w)
"Notice of Default" is defined in paragraph 13.2.1.
(x)
"Parties" is defined on page 3.
2
(y) "Performance Agreement" is defined in paragraph 4.2.
(z) "Premises" is defined in Recital C.
(aa) "Premises Clean -up Bond" is defined in paragraph 9.2.
(bb) "Property" is defined in Recital B.
(cc) "Rent" is defined in paragraph 2.2.
(dd) "Security Deposit" is defined in paragraph 9.2.
(ee) "Sustainable Farm" is defined in Recital D.
(ff) "Tenant" is defined on page 3.
(gg) "Term" is defined in paragraph 2.1.
(hh) "Transfer" is defined in paragraph 12.1.
(ii) "Utilities" is defined on page 11.
1.2 Incorporation of Recitals. The Parties acknowledge the truth of the Recitals set forth
above, and all such Recitals are hereby incorporated into this Agreement.
1.3 Creation of Lease. District hereby leases to Tenant, and Tenant hereby leases from
District, the Premises for the Term subject to the terms and conditions and for the purposes set
forth in this Agreement.
1.4. Condition of Title. Landlord leases the Premises to Tenant subject to all easements,
covenants, conditions, restrictions and other title matters of record existing as of the Effective
Date, including the airport navigation restrictions, and all matters that would be apparent from an
inspection of the Premises on the Effective Date.
ARTICLE II
TERM OF LEASE, RENT, SECURITY DEPOSIT
2.1 Term. The term of this Agreement (the "Term ") shall commence on , 2014 (the
"Commencement Date "), and unless terminated earlier pursuant to the provisions hereof, shall
expire on April 16, 2024 (the "Expiration Date "). The expiration of the Term or the sooner
termination of this Agreement is referred to herein as the "Lease Termination." Before the
Expiration Date, District or Tenant may initiate negotiations for a new lease term for a period not
to exceed an additional ten (10) years. Although neither party shall have an obligation to extend
or enter into further negotiations, should Tenant desire to negotiate a new lease, Tenant must
provide written notice to District of the desire to negotiate a new lease at least one (1) year, and
not more than two (2) years, prior to the Expiration Date. The Parties agree to execute and
record a Memorandum of this Lease in the Official Records of Contra Costa County in
accordance with Paragraph 14.4.4 of this Agreement. Tenant shall have no right to take
5
possession of the Premises for the uses of the property provided for in Article IV until insurance
policies are in place. Until such time that a land use permit, as referenced in Section 3.1 and
Section 4. 1, is obtained, Tenant shall only engage in activities such as fund raising, planning and
minor construction and maintenance that are allowed under the existing zoning and permitted
uses.
Notwithstanding the foregoing, the District will have the right to terminate this lease and
Agreement as to any or all portions of the Premises, if the District Board declares the same to be
required for public use. If such a determination of the need for public use of the Premises is
made, this Lease shall be subject to cancellation and termination by the District at any time
thereafter by giving Tenant notice in writing as soon as possible, but at least one year prior to
the date such termination shall become effective.
2.2 Rent. Commencing on the first day of the month after the Commencement Date, the
Tenant shall pay to the District rent for the Premises ( "Rent ") during the initial portion of the
Term in the amount of One Dollar ($1.00) per year. Rent is due and payable on the
Commencement Date and on the first day of March in each subsequent year to District at the
address shown in Paragraph 14.4.1 or such other place as the District may designate in writing.
It is the intention and expectation of the Parties that during the Term, the Sustainable Farm
project will generate revenues from donations and the sale of farm products and related services.
It is further understood and agreed that it will take several years for the Sustainable Farm project
to reach a level where it may generate funds sufficient to pay Rent in excess of the One Dollar
($1.00) per year. In order to address the potential that the Sustainable Farm project may have
sufficient revenues to pay additional Rent, it is agreed that within ninety (90) days from the
expiration of the third year of the Term, the Parties will meet and confer to discuss the potential
viability of the Sustainable Farm project and paying additional Rent to District. In the event
revenues are available and an agreement between the Parties cannot be reached as to the amount
of additional Rent to be charged during the remainder of the Term, either party may request that
the amount of the additional Rent appropriately payable must be mediated. Absent an alternative
agreement by the Parties as to the selection of a mediator, the mediation shall be administered by
JAMS with the mediator selected by agreement or as follows: The mediator shall be mutually
selected by the Parties, but in case of disagreement, the mediator shall be selected by lot from
among two (2) nominations provided by each party. All costs and fees required by the mediator
shall be split equally between the Parties; otherwise, each party shall bear its own costs of
mediation. If mediation fails to resolve the dispute within thirty (30) days, either party may
pursue litigation to resolve the dispute.
2.3 Additional Tenant Pam. The Tenant shall pay, and discharge when due, all
Impositions described in Article III, all insurance premiums, utility costs, maintenance costs and
all other liabilities and obligations which the Tenant assumes or agrees to pay or undertake
pursuant to this Agreement and any that are necessary for farm operations.
2.4 Triple Net Lease. This is a triple net lease to the District. It is the intent of the Parties
that the Rent shall be an absolutely net return to the District and that the Tenant shall pay all
costs and expenses relating to the Premises of any kind or nature whatsoever. Such costs and
expenses shall include, without limitation, all amounts attributable to, paid or incurred in
on
connection with the ownership, operation, repair, restoration, maintenance and management of
the Premises, real property possessory interest taxes, rent taxes, gross receipt taxes (whether
assessed against the District or assessed against the Tenant and collected by the District, or both),
potable water charges, insurance premiums, utilities, refuse disposal, lighting (including outside
lighting), fire detection systems including monitoring, maintenance and repair, security, labor,
maintenance costs, repair costs, service contracts, costs of licenses, permits and inspections, and
all other costs and expenses paid or incurred with respect to the Premises.
An exception to these inclusive obligations of Tenant is that recycled water shall be furnished
without charge to Tenant for the first three (3) years of the lease Term, and potentially for the
duration of the Term except as provided in § 4.10.
2.5 Surrender. Upon the expiration or earlier termination of this Lease, or upon the exercise
by District of District's right to re -enter the Premises without terminating this Lease, Tenant
shall surrender the Premises free of Hazardous Materials, except for Hazardous Materials found
to have been present at the time the Tenant took possession, (as defined in Paragraph 5.5. 1) and,
unless otherwise approved in writing by District, Tenant shall, at its own cost and expense,
remove all equipment and Improvements (as defined in Paragraph 6.1 below) constructed upon
the Premises, except the roads, utilities, fencing, and any buildings that are pre- approved by
District to remain on the Premises. All other Improvements and equipment shall be removed
unless the District and Tenant agree otherwise in a separate writing. Unless otherwise agreed to
by the Parties, Tenant shall return Premises to the graded and cleared condition existing at the
initiation of the Term.
ARTICLE III
TAXES, ASSESSMENTS AND OTHER CHARGES
3.1 Impositions. Throughout the Term, the Tenant shall pay prior to delinquency, all real
property taxes, possessory interest taxes, license and permit fees, except the fee for the land use
permit which will be applied for by the District within sixty days (60) of the commencement of
this lease, and sales, use or occupancy taxes, assessments whether general or special, ordinary or
extraordinary, unforeseen, as well as foreseen, of any kind or nature whatsoever, pertaining to
the Premises or part thereof, including, but not limited to (i) any assessment, levy, imposition or
charge in lieu of or in substitution for real estate taxes; and (ii) any assessment for public
improvements or benefits which is assessed, levied, or imposed upon or which becomes due and
payable and a lien upon (a) the Premises or any part thereof or any personal property, equipment
or other facility used in the operation thereof; (b) the rent or income received by the Tenant;
(c) any use or occupancy of the Premises or part thereof; or (d) this transaction or any document
to which the Tenant is a party creating or transferring an estate or interest in the Premises or part
thereof. All of the foregoing are hereinafter referred to as "Impositions."
3.1.1 Installments. If by law any Imposition is payable, or may at the option of the
taxpayer be paid in installments (whether or not interest shall accrue on the unpaid balance of
such Imposition), the Tenant may pay the same together with any accrued interest on the unpaid
balance of such Imposition in installments as the same respectively becomes due and before any
fine or penalty may be added thereto for the nonpayment of any such installment and interest.
7
Any Impositions relating to tax years that are only partially included in the Term of this
Agreement shall be prorated between the Tenant and the District.
3.1.2 Evidence of Payment. Upon request by the District, the Tenant shall furnish, in
form satisfactory to the District, evidence of payment prior to delinquency of all Impositions
payable by the Tenant.
3.2 Tenant Right to Contest. The Tenant shall have the right before any delinquency occurs
to contest'or object to the amount or validity of any Imposition by appropriate legal proceedings,
but such right shall not be deemed or construed in any way as relieving, modifying or extending
the Tenant's covenant to pay any such Imposition at the time and in the manner required by law.
Any such contest shall be conducted in accordance with and subject to the requirements of all
Applicable Laws and otherwise in a manner that does not subject the District's title to the
Property to foreclosure or forfeiture. Tenant shall indemnify, defend, and hold the District and
its elected and appointed officers, officials, employees, agents and representatives (all of the
foregoing, collectively the "Indemnitees ") harmless from and against all liabilities, losses,
damages, fines, deficiencies, penalties, claims, demands, suits, actions, causes of action, legal or
administrative proceedings, judgments, costs and expenses (including without limitation
reasonable attorneys' fees and court costs) (all of the foregoing, collectively "Claims ") arising as
a result of or in connection with any such contest brought by the Tenant. During any contest of
an Imposition, the Tenant shall (by payment of disputed sums, if necessary) prevent any
advertisement of tax sale, foreclosure of, or any divesting of the District's title, reversion or other
interest in the Property or the Premises. Upon final determination of the amount or validity of
any Imposition contested pursuant to this Paragraph 3.2, the Tenant shall immediately pay such
Imposition and all costs and expenses relating to such challenge.
3.3 Tenant Duty to File. The Tenant shall have the duty of making or filing any declaration,
statement or report which may be necessary or advisable in connection with the determination,
equalization, reduction or payment of any Imposition which is or which may become payable by
the Tenant under the provisions of this Article III, and shall notify the District in writing upon
making such filing, declaration, statement or report, and the District shall not be responsible for
the contents of any such declaration, statement or report, provided; however, the District shall
cooperate with the Tenant in connection with the foregoing, including joinder in any application
pertaining thereto to the extent required under Applicable Laws, all at no cost to the District.
ARTICLE IV
MANAGEMENT, USE AND OPERATION OF THE PROPERTY
4.1 Permitted Uses. The Tenant may use the Premises for the creation of a non - profit
sustainable urban farm with teaching facilities as described in Recital D, and as further described
in Exhibit "C," and as further conditioned and described in any land use permit obtained by the
District and applicable to the Premises, and as otherwise described herein, and for no other
purposes without the prior written consent of the District. Commencing upon the date that IRS
Code 501(c)(3) non - profit status is obtained by Tenant after the execution of this Lease, which
shall not be more than six (6) months after its execution, it shall be an Event of Default under
this lease if at any time during the term of this lease after the aforementioned date Tenant is not a
501(c)(3) entity recognized by and in good standing with the United States Internal Revenue
Service. The Tenant shall not use or permit the Premises to be used in whole or in part during
the Term for any purpose other than as permitted pursuant to this Lease or by the District's
written consent, including but not limited to the use of the Premises for human shelter,
habitation, residential, or camping purposes. Tenant may have overnight security guard(s) upon
the Premises, as needed.
4.2 Performance Agreement. Tenant shall enter into a performance agreement (the
"Performance Agreement ") with District that will set forth performance requirements as per
Exhibit "D" for the Sustainable Farm, including but not limited to, operating requirements,
annual reporting requirements, farming, teaching and outreach goals. Failure to comply with the
Performance Requirements is an Event of Default under this Agreement.
4.3 Easements, Reservation of Rights. The District reserves the right to locate and construct
its own utilities and to grant nonexclusive easements across the Property for utility and other
purposes including the installation, maintenance, repair and replacement of utilities, provided
that the exercise of such rights does not unreasonably interfere with the Tenant's use of the
Premises for the purposes set forth herein.
4.4 Maintenance, Security and Inspection of the Premises.
4.4.1 Maintenance. At the Tenant's sole cost and expense throughout the Term, the
Tenant shall operate, maintain and manage the Premises including all improvements thereon in
good order and repair and in neat, clean, sanitary, and safe condition in compliance with all local,
state and federal laws, statutes and regulations relating to the use, occupancy or operation of the
Premises including all FAA and similar regulations that apply to properties adjacent to an
airport. To the extent the Tenant makes use of the property during any non- daylight periods, the
Tenant shall ensure that the Premises are served by adequate lighting in accordance with
applicable local, state and federal laws. The Tenant shall keep and maintain all portions of the
Premises in a clean and orderly condition, free of accumulation of rubbish and graffiti. The
Tenant shall promptly, at the Tenant's own cost and expense, make all necessary repairs,
including replacements or renewals when necessary, and all such repairs to all improvements
provided by Tenant as may be set forth in Exhibit "C" or provided pursuant to Exhibit "C" or
Article VI (Alternations and New Construction) shall be at least equal in quality to the original
work. The Tenant's failure to maintain the Premises in accordance with this Agreement shall, in
the District's discretion, be grounds for termination of this Agreement pursuant to Article XIV.
4.4.2 Security. Tenant shall construct a fence surrounding the Premises to ensure
security of the Premises. The Parties acknowledge that the CalTrans installed and maintained
fencing meets this requirement on part of the southern edge of the property, as depicted in
Exhibit B. Tenant shall also provide security for the Premises, either in the form of on -site
security guards or security cameras, in consultation with District. Tenant shall prepare and
deliver an emergency response plan for the Sustainable Farm use of the Premises by July 1, 2014
to be delivered concurrently with the business plan required under Paragraph 4.9, which must be
updated and delivered to the District on an annual basis. Tenant shall ensure that no person is
living or camping on the Premises at any time. Overnight security personnel are not considered
to be living or camping on the premises.
4.4.3 Inspection. At any time during the Term, upon reasonable advance notice, except
in emergency situations, the District may conduct interior and/or exterior inspections of the
Premises to confirm that it is in compliance as required herein. The District may deliver to the
Tenant written notification of any portions of the Premises which the District has determined are
not properly maintained, and the Tenant shall promptly prepare and deliver to the District the
Tenant's proposed plan for remedying the indicated deficiencies. If the Tenant disputes the
characterization of the deficiencies, it may provide an explanation of why the determination of
improper maintenance is incorrect. The parties shall meet and confer and use best efforts to
resolve any such dispute, but if an agreement is not reached, the District's determination shall be
final and binding. The Tenant's failure to deliver a remedial plan and to complete remedial work
within a reasonable time as determined by the District in its reasonable discretion shall be an
Event of Default.
4.4.4 The failure of the District to inspect or to notify the Tenant of any deficiency shall
not be a waiver of default or of the District's right to enforce the Tenant's maintenance and
repair obligations.
4.5 District's Right to Perform Tenant Obligations. If the Tenant fails to perform its
obligations to maintain the Premises in accordance with the standards set forth in this Lease, the
District shall have the right, but not the obligation, to perform such work upon delivery of
written notice to the Tenant, and the Tenant shall reimburse the District for all expenditures the
District incurs in connection with such work together with interest thereon at the Default Rate
specified in Article X. The District's election to undertake such obligation shall not operate as a
waiver of any other right or remedy the District may have pursuant to this Agreement.
4.6 District Not Obligated to Perform Repairs. Notwithstanding any contrary provision
herein, the District shall not be obligated to make any repairs, alterations, additions,
improvements or betterments to the Premises during the term of this Agreement nor shall the
District be obligated to maintain or operate the Premises.
4.7 Compliance with Laws. The Tenant, at its sole cost and expense, shall comply with all
Applicable Laws, Rules and Regulations pertaining to the use, operation and management of the
Premises, including but not limited to all laws relating to the use of property adjacent to airports
and/or navigation easements, specifically including selection of crops and maintenance of the
property or to minimize or limit the potential for attraction of birds. The Parties acknowledge and
agree that the Sustainable Farm use of the Premises lies between two avian corridors (Walnut
Creek and Grayson Creek); the Tenant is not responsible for the activities of any federally
protected birds. The Tenant shall not itself use the Premises for any unlawful purpose or
perform, permit or suffer any act, omission to act or commission to act upon or about the
Property or the Premises that would result in a nuisance or a violation of law. The Tenant shall
use its best efforts to not allow any permittees, licensees, guests or invitees to use the Premises
for any unlawful purpose or perform, permit or suffer any act, omission to act or commission
upon or about the Property or the Premises which would result in a nuisance or a violation of
law. The District will apply for the initial land use permit within two months of the
commencement of this Lease. The Tenant will be responsible for obtaining all other necessary
permits prior to the commencement of any activity requiring a permit.
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4.8 Tenant Right to Contest. The Tenant shall have the right to contest by appropriate
proceedings, in the name of the Tenant, and without cost or expense to the District, the validity
or application of any Applicable Law. If compliance with any Applicable Law may legally be
delayed pending the prosecution of any such proceeding without the incurrence of any lien,
charge or liability against the Premises or Tenant's interest therein, and without subjecting the
Tenant or the District to any liability, civil or criminal, for failure so to comply therewith, the
Tenant may delay compliance therewith until the final determination of such proceeding. The
Tenant shall indemnify, defend (with counsel approved by the District), protect and hold the
District harmless from and against all Claims arising in connection with any such contest brought
by the Tenant. The foregoing indemnity obligation shall survive the expiration or earlier
termination of this Agreement.
4.9 Annual Reporting Obligation. No later than annually on April 1St of each year during the
Term, the Tenant shall deliver to the District an Annual Report as set forth in Exhibit "D."
Among other requirements, it shall include a business plan, in a form and substance satisfactory
to the District, setting forth the Tenant's plans for current operation and a minimum of three (3)
years future operations of the Sustainable Farm use on the Premises. The business plan must
include an estimated annual operating budget and an annual capital improvement budget for the
coming year, as well as, after the first year of operations, a report on the previous year's
performance results, including but not limited to, the approximate number of people instructed
while visiting the Premises; the approximate number of volunteers who worked upon the
Premises; and approximate number of people that participated in other Sustainable Farm
programs delivered offsite. Exhibit "D" outlines the performance agreement that shall be
included in the business plan. Tenant shall also submit annual financial reports to the District
setting forth the operating costs and profit and loss statements for the Sustainable Farm and
financial condition of the Sustainable Farm, all in accordance with Generally Accepted
Accounting Principles, within one hundred (100) days of the fiscal year end of the Sustainable
Farm.
4.10 Utilities. Tenant agrees to arrange for and pay for all potable water, fuel, telephone,
electric power, materials, sanitation and other property- related services obtained from third
parties, and for the removal of trash, garbage, rubbish and other waste in and around the
Premises. District will permit Tenant to connect to District's facilities for the use of recycled
water, which recycled water will be provided at no cost for a minimum of three (3) years and
thereafter shall be metered separately and billed to Tenant or may continue to be free of charge at
the sole discretion of the District. District may, in its sole discretion, waive the recycled water
costs if District determines that Tenant is fully compliant with this Agreement. Tenant hereby
agrees that District's finding related to the billings for recycled water, if charged, will be
conclusive. Tenant may install renewable energy facilities or equipment upon the Premises, as
long as such facilities or equipment comply with all Applicable Laws and provisions of this
Lease. Tenant may provide positive energy flow to the District upon the District's consent.
4.11 Nondiscrimination. The Tenant herein covenants by and for itself, its heirs, executors,
administrators, and assigns, and all persons claiming under or through Tenant that this lease is
made and accepted upon and subject to the following conditions: That there shall be no
discrimination against or segregation of any person or group of persons, on account of any basis
listed in subdivision (a) or (d) of § 12955 of the Government Code, as those bases are defined in
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sections 12926, 12926. 1, subdivision (m) and paragraph (1) of subdivision (p) of section 12955,
and section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use,
occupancy, tenure or enjoyment of the Premises herein leased nor shall the Tenant, or any person
claiming under or through Tenant, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, sublessees, subtenants, invitees, volunteers or vendees in the Premises herein
leased.
ARTICLE V
CONDITION OF THE PREMISES; ENVIRONMENTAL MATTERS
5.1 Condition of the Premises.
5.1.1 As -is Condition. The Tenant will lease the Premises in the condition the Premises
exists as of the Commencement Date, unless Tenant and District agree in writing to retain any
changes to Premises. Tenant acknowledges that modifications to the current land use
entitlements are required for Tenant's use of the Premises as anticipated by this Agreement. The
District will apply for the necessary land use permit within sixty (60) days of the commencement
of this lease. District does not make any representations, guarantees or warranties as to any
conditions imposed upon the Premises by any land use permit issued. Tenant shall not look to
District for any satisfaction or execution of any conditions imposed by a land use permit that are
not in the District's control or jurisdiction.
5.1.2 No Representations. The Tenant acknowledges that except as expressly set forth
herein, the District makes no representations or warranties expressed or implied regarding the
condition of the Premises or the fitness or suitability thereof for the Tenant's purposes, including
but not limited to, the condition of the soil, its geology, topography, the presence or absence of
fill, the presence or absence of Hazardous Materials, drainage, flood zone designation, or
compliance with Hazardous Materials Laws, and no patent or latent defect or deficiency in the
condition of the Premises shall affect the rights of the Tenant or the District hereunder. The
Tenant shall rely solely on its own independent investigation and judgment as to all matters
relating to the Property. The Tenant acknowledges and agrees that prior to the Effective Date it
has made such investigations of the Premises, including without limitation such inquiries of
governmental agencies, soils testing, tests and inspections as Tenant deemed necessary to
determine the condition of the Property, and has approved all such characteristics and conditions
and shall lease the Property in its condition as of the Effective Date "As -is" "Where -is" and with
all faults. The Tenant further acknowledges that the District has made available to Tenant all
data and information related to the Premises available to the District, but without warranty or
representation by the District as to the completeness, correctness or validity of such data and
information, except as otherwise set forth in this Agreement.
5.2 Tenant's Covenants. The Tenant hereby covenants and agrees that throughout the Term:
(a) The Premises, and the use and operation thereof, shall be in compliance with all
Hazardous Materials Laws, and the Tenant shall not cause or permit the Premises or any portion
thereof to be in violation of any Hazardous Materials Laws.
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(b) The Tenant shall not permit the Premises or any portion thereof to be a site for the
use, generation, treatment, manufacture, storage, disposal or transportation of Hazardous
Materials nor shall the Tenant permit the presence or release of Hazardous Materials in, on,
under, about or from the Premises with the exception of materials customarily used in
construction, operation, use or maintenance of similar agricultural operations, provided such
materials are used, stored and disposed of in compliance with Hazardous Materials Laws.
Tenant shall have the right to review all District and other publicly available records pertaining
to the prior uses of the Property and may undertake such examinations as it deems appropriate as
further referenced in Paragraph 5.1.2 above.
(c) Upon receiving knowledge of the same, the Tenant shall immediately advise the
District in writing of: (i) any and all enforcement, cleanup, removal or other governmental or
regulatory actions instituted, completed or threatened against the Tenant, the Premises or the
Property pursuant to any applicable Hazardous Materials Laws; (ii) any and all complaints,
claims, citations, demands, inquiries, reports, or notices made or threatened by any third party
against the Tenant, the Premises or the Property relating to damage, contribution, cost recovery,
compensation, loss or injury resulting from any Hazardous Materials; (iii) the presence or release
of any Hazardous Materials in, on, under, about or from the Premises or the Property; or (iv)
Tenant's discovery of any occurrence or condition on any real property adjoining or in the
vicinity of the Property classified as "Border Zone Property" (i.e. Runway Protection Zone)
under the provisions of California Health & Safety Code section 25220 et seq., or any regulation
adopted in connection therewith, that may in any way affect the Property pursuant to any
Hazardous Materials Laws or cause it or any part thereof to be designated as Border Zone
Property. The matters set forth in the foregoing clauses (i) through (iv) are hereinafter referred
to as "Land Use Claims." The District shall have the right to join and participate in, as a party if
it so elects, any legal proceedings or actions initiated in connection with any Hazardous
Materials Claim, and to have its reasonable attorney's fees in connection therewith paid by the
Tenant. The District and Tenant share the good faith belief that the soil has been adequately
tested and is not the site of a toxic spill from the previous "clean fill" activities of the District.
However, Tenant shall not be responsible for clean -up of any Hazardous Materials discovered on
the property, if such are found to have been present at the time this lease is executed. The Tenant
will clean up reasonably small materials such as garbage, but not large toxic dumps, should they
be discovered to have already occurred prior to possession by the Tenant. Any dispute will be
settled by the mediation process set forth above in section 2.2 of this Lease.
(d) Without the District's prior written consent, which shall not be unreasonably
withheld, the Tenant shall not take any remedial action in response to the presence of any
Hazardous Materials in, on, under, or about the Premises or the Property (other than in
emergency situations or as required by governmental agencies having jurisdiction in which case
the District agrees to provide its consent without delay), nor enter into any settlement agreement,
consent decree, or other compromise with respect to any hazardous materials claim and
remediation or cleanup orders.
5.3 Release of Claims. The Tenant hereby waives, releases and discharges forever the
Indemnitees from all present and future claims the Tenant may have arising directly or indirectly
from the presence or alleged presence of hazardous materials on, under, in or about the Premises;
provided however, this release excludes and shall not apply to (i) any hazardous material that
13
originates from District -owned property other than the Property and which migrates onto the
Premises after the Commencement Date, or (ii) any hazardous materials that are generated or
caused by the Indemnitees' acts or omissions after the Commencement Date. The Tenant is
aware of and familiar with the provisions of § 1542 of the California Civil Code which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.
5.3.1 As such relates to this Paragraph 5.3, the Tenant hereby waives and relinquishes
all rights and benefits which it may have under § 1542 of the California Civil Code.
Tenant Initials
5.4 Environmental Indemnity. The Tenant shall indemnify, defend and hold the District
harmless from and against all claims arising during the Term and resulting, arising, or based
directly or indirectly in whole or in part, upon (i) the presence, release, use, generation,
discharge, transport, storage or disposal of any Hazardous Materials on, under, in or about, or the
transportation of any such Hazardous Materials to or from the Premises during the Term; (ii) the
failure of the Tenant, the Tenant's employees, agents, contractors, subcontractors, licensees,
permittees, or any person acting on behalf of any of the foregoing to comply with Hazardous
Materials Laws; or (iii) the breach by the Tenant of any of its covenants contained in this
Article VII. The foregoing indemnity shall further apply to any residual contamination in, on,
under or about the Premises or affecting any natural resources, and to any contamination of any
property or natural resources arising in connection with the generation, use, handling, treatment,
storage, transport or disposal of any such Hazardous Materials, and irrespective of whether any
of such activities were or will be undertaken in accordance with Hazardous Materials Laws and
shall include, without limitation, any Claims arising in connection with any investigation of site
conditions or any cleanup, remedial, removal or restoration work ordered by a court or required
by any federal, state, or local governmental agency or political subdivision. This Paragraph 5.4
shall survive the expiration or earlier termination of this Agreement.
5.5 Definitions.
5.5.1 Hazardous Materials. As used herein, "Hazardous Materials" means any
substance, material, or waste which is or becomes regulated by any local, state or federal
authority, agency or governmental body, including any material or substance which is: (i)
defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste"
under § 25115, 25117 or 25122.7, or listed pursuant to § 25140 of the California Health & Safety
Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (ii) defined as a "hazardous
substance" under § 25316 of the California Health & Safety Code, Division 20, Chapter 6.8
(Carpenter- Presley - Tanner Hazardous Substance Account Act); (iii) defined as a "hazardous
material," "hazardous substance," or "hazardous waste" under § 25501 of the California Health
14
& Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and
Inventory); (iv) defined as a "hazardous substance" under § 25281 of the California Health &
Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances);
(v) petroleum; (vi) friable asbestos; (vii) polychlorinated biphenyls; (viii) listed under Article 9
or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the
California Administrative Code, Division 4, Chapter 20; (ix) designated as "hazardous
substances" pursuant to § 311 of the Clean Water Act (33 U.S.C. § 1317); (x) defined as a
"hazardous waste" pursuant to § 1004 of the Resource Conservation and Recovery Act, 42
U.S.C. § 6901, et seq. (42 U.S.C. § 6903); or (xi) defined as "hazardous substances" pursuant to
§ 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42
U.S.C. § 9601, et seq., as the foregoing statutes and regulations now exist or may hereafter be
amended.
5.5.2 Hazardous Materials Laws. As used herein "Hazardous Materials Laws" means
all federal, state and local laws, ordinances, regulations, orders and directives pertaining to
Hazardous Materials, including without limitation, the laws, statutes and regulations cited in the
preceding Paragraph 5.5.1, as any of the foregoing may be amended from time to time.
ARTICLE VI
ALTERATIONS AND NEW CONSTRUCTION
6.1 Changes and Alterations. During the Term of this Agreement, the Tenant shall not make
any change, alteration or addition to the Premises (collectively, the "Improvements ") without the
prior written consent of the District, which shall not be unreasonably withheld. All alterations
and additions shall be made at the Tenant's sole cost and expense and shall comply with all of
the following, including, but not limited to, any conditions imposed by the District:
(a) The Improvements shall be necessary for the operation of the Sustainable Farm,
and the permitted uses set forth in Paragraph 4.1 of this Agreement.
(b) No Improvements shall be undertaken until the Tenant shall have obtained all
required permits and authorizations of any federal, state or local government or departments or
subdivisions of any of them, having jurisdiction.
(c) The Improvements shall be made in a good and workmanlike manner and in
accordance with all applicable permits, Exhibit C, and all Applicable Laws.
(d) During the construction of any Improvements on the Premises, or the permitted
demolition or new construction or any restoration, the Tenant shall comply with the insurance
requirements set forth in Paragraph 7.2, which policy or policies by endorsement thereto, if not
then covered, shall also insure any change, alteration or addition or new construction, including
all materials and equipment incorporated in, on or about the Premises.
(e) Prior to commencement of any construction, change, alteration or repair, the
Tenant shall deliver to the District not later than thirty (30) days written notice of the proposed
work, a general description of the proposed work and sufficient information to permit the District
to post a notice of non - responsibility on the Property and/or Premises.
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6.2 Compliance with Laws. The Tenant shall carry out the construction of the Improvements
in conformity with all applicable state and federal laws and regulations, including without
limitation, all applicable state and federal labor laws and standards, and all applicable disabled
and handicapped access requirements, including without limitation, the Americans with
Disabilities Act, 42 U.S.C. § 12101, et seq., California Government Code § 4450, et seq.,
California Government Code § 11135, et seq., and the Unruh Civil Rights Act, California Civil
Code § 51, et seq. The Tenant shall comply with all local ordinances and regulations relating to
the conduct of construction, including without limitation, all local ordinances and regulations
relating to noise, construction hours and maintenance of the construction site. All of the
foregoing state, federal and local laws, regulations and ordinances are hereafter referred to as the
"Applicable Laws."
6.3 Rights of Access. The District shall have the right of access to the Premises for purposes
of assuring compliance with this Agreement and to access and repair the onsite infrastructure of
District including but not limited to recycled water and sewer lines, so long as the District
complies with all safety rules and does not unreasonably interfere with the progress of
construction of the Improvements. The District shall give the Tenant reasonable advance notice
prior to exercising its rights pursuant to this Paragraph 6.3 except in the event of emergency in
which case notice shall not be required.
6.4 Indemnity. In lieu of and not withstanding any statute, regulation or rule that may
otherwise affect the terms of this Agreement, the Parties agree that all losses or liabilities
incurred by a party shall not be shared pro rata, but instead the Tenant and the District agree to
the following:
(a) The Tenant shall defend (with counsel reasonably acceptable to the District),
indemnify and hold harmless the Indemnitees from and against any and all present and future
Claims arising during the term of this Agreement from or in connection with the Tenant's failure
to comply with all Applicable Laws relating to the operation or maintenance of the Premises or
the Improvements, or the Tenant's activities or performance under this Agreement, whether such
activity or performance is by the Tenant or by anyone directly or indirectly employed by or
contracted with by the Tenant and whether such Claims shall be discovered before or after Lease
Termination. The Tenant's indemnity obligations under this Paragraph 6.4 shall not extend to
Claims to the extent they arise as a result of the Indemnitees' active negligence or willful
misconduct.
(b) At its sole discretion, the District may participate at its own expense in the
defense of any claim, action or proceeding, but such participation shall not relieve the Tenant of
any obligation imposed by this Agreement. The District shall notify the Tenant promptly of any
claim, action or proceeding and cooperate fully in its defense.
(c) The Tenant agrees to defend, indemnify and hold harmless the Indemnitees from
any claim, action or proceeding against the Indemnitees, arising solely out of the acts or
omissions of the District in the performance of this Agreement. At its sole discretion, the
District may participate at its own expense in the defense of any claim, action or proceeding, but
such participation shall not relieve the District of any obligation imposed by this Agreement.
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The District shall notify the Tenant promptly of any claim, action or proceeding and cooperate
fully in the defense.
6.5 Mechanic's Liens. Subject to the right to contest the same prior to payment, the Parties
agree and shall keep the Premises and the Property free and clear of all mechanics' liens and
other liens including stop notices, on account of work done by or for a Party. Each Party shall
indemnify, defend (with counsel reasonably acceptable to the other Party) and hold such Party's
Indemnitees harmless from and against all liability, loss, damages, costs and expenses (including
reasonable attorney's fees) incurred by or brought against a Party for claims of lien of laborers or
materialmen or others for work performed or materials or supplies furnished to a Party or
persons claiming under it. In the event any lien is recorded, the appropriate Party shall, within
twenty (20) days following such recordation, cause such lien to be removed of record by bonding
or otherwise.
6.6 Contemplated Improvements. Notwithstanding any other provisions of this Article VI,
the Parties contemplate that the following Improvements will be constructed by Tenant upon
design review and written approval from District: (i) secure fencing around Premises; (ii)
installation of electrical power poles; (iii) irrigation; (iv) parking facilities; (v) teaching facilities
(vi) green houses, barns, and farm support structures; (vii) signage as allowable by County and
Caltrans regulations; and (viii) renewable energy installations; (ix) potable water installation; (x)
any off - Premises traffic impact or street improvements that are required due to the operation of
the Sustainable Farm. Construction and contemplated Improvements shall be consistent with all
additional descriptions contained in Exhibit "C."
ARTICLE VII
INDEMNITY AND INSURANCE
7.1 Indemnity. The Tenant shall indemnify, defend and hold the District harmless from and
against any and all Claims arising during the Term and arising from or in connection with any of
the following: (i) the operation or management of the Premises; (ii) any work or thing done on
or in the Premises; (iii) any condition of any alteration or addition constructed by the Tenant on
the Premises; (iv) any breach or default by the Tenant in the performance of any covenant or
agreement to be performed by the Tenant pursuant to the terms of this Agreement; (v) any gross
negligence of the Tenant, or any of its agents, contractors, subcontractors, employees, volunteers
or licensees; (vi) any accident, injury or damage caused to any person occurring during the Term
in or on the Premises; and (vii) the furnishing of labor or materials by the Tenant or its
contractors, subcontractors, employees, volunteers or agents. In the event any such action or
proceeding is brought against the District by reason of any such Claim, the Tenant, upon notice
from the District, covenants to defend such action or proceeding by counsel reasonably
satisfactory to the District. If an insurer under insurance required to be maintained by the Tenant
hereunder shall undertake to defend the District under a reservation of rights with respect to
ultimate coverage and the District shall reasonably deem it necessary to retain independent
counsel with respect to such matter, the Tenant shall pay the reasonable fees of such counsel.
The obligations of the Tenant under this Article VII shall not apply to any Claim or other matter
to the extent such arises as a result of the gross negligence or willful misconduct of the District.
This section shall survive the expiration or earlier termination of this Agreement.
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7.2 Insurance Requirements. Tenant, at its sole expense, shall maintain in effect at all times
during the performance of its obligations hereunder, Comprehensive General Liability Insurance
coverage with limits not less than those set forth below with insurers and under forms of policies
satisfactory to the District.
7.2.1 General Liability Insurance, including contractual liability, independent
contractors, and broad form property damage coverage. This insurance shall be in a
comprehensive occurrence form with an endorsement naming the District as an additional
insured and with a standard cross - liability clause or endorsement. The limit amount for this
insurance shall not be less than $5,000,000 per occurrence combined single limit for bodily
injury and property damage.
7.2.2 The insurance policy described above shall include the following provisions or
have them added by endorsement:
(a) The coverage shall be primary, and no other insurance or self- insurance
such as may be utilized by the District shall contribute to a loss under the policy.
(b) The policy shall not be canceled or materially altered without thirty (30)
days prior written notice to the District.
(c) The certificates and endorsements are to be signed by a person authorized
by the insurers to bind coverage on their behalf.
7.2.3 The insurer(s) utilized shall conform to the following terms:
(a) Insurers shall have at least an "A" policyholder rating and a "VII"
financial rating in accordance with the most current Best's Key Rating Guide.
(b) Tenant shall furnish to the District, no later than ten (10) days prior to the
expiration of the current insurance, with adequate certificates of insurance and with original
endorsements affecting coverage as will demonstrate that the provisions and /or requirements of
this section have been complied.
(c) Tenant shall provide thirty (30) days' prior written notice to the District
before the policy is canceled or materially altered.
7.2.4 Tenant shall maintain Workers' Compensation and Employer's Liability
coverages per the statutory requirements at the location of work and to the extent included under
the Workers' Compensation Insurance Policy. Tenant shall also maintain coverage pursuant to
the general liability policy or through endorsements or through separate insurance policies which
provide coverage for products liability, bee stings, and other potential agricultural dangers as
well as with the aviation liabilities associated with proximity of the Premises to an airport.
7.2.5 The District reserves the right to require receipt of complete copies of all required
insurance policies at any time.
V.
7.2.6 If the Tenant undertakes the construction of any improvements pursuant to
Article VI, the Tenant shall ensure that its general contractor carries liability, property damage,
workers' compensation and builder's risk insurance throughout construction of the
Improvements, naming the District as additional insureds and otherwise in compliance with all
requirements set forth in this Paragraph 7.2.
7.2.7 District reserves the right to increase the General Liability insurance from
$5,000,000 per occurrence up to $10,000,000 per occurrence depending upon the increased
exposure to the District as the Sustainable Farm public activity increases. District will review
the minimum coverage amount within ninety (90) days of the anniversary date of this
Agreement.
7.2.8 Tenant shall obtain signed waivers from all invitees and volunteers entering or
working upon the Premises. The waivers shall provide that District is held harmless from any
and all damages to persons or property that may occur while the invitee or volunteer is upon the
Premises. Parents of minors shall be required to execute the waiver on behalf of their minor
child before the child may enter upon the Premises.
ARTICLE VIII
DAMAGE AND DESTRUCTION
8.1 Damage or Destruction. In the event of any damage to or destruction of the Premises
during the Term, the District shall elect by written notice delivered to Tenant within sixty (60)
days following the date of the occurrence of the damage, or becoming aware of the damage to,
either remove or restore the damage to contemplated Improvements and Improvements on
Premises or restore and rebuild the Premises as nearly as possible to their condition immediately
prior to such damage or destruction, subject to any restrictions imposed by changes in any
Applicable Law. If the District elects to restore the Premises, the District shall commence
diligently and continuously to carry out such rebuilding to full completion as soon as possible
and shall commence reconstruction of the Premises within the earlier of ninety (90) days
following the date of occurrence of the damage or the date upon which insurance proceeds are
made available for such work. Upon the occurrence of damage or destruction, all insurance
proceeds paid in respect of such damage or destruction shall be applied to the payment of the
costs of the restoration and rebuilding required to be performed by the District pursuant to this
Agreement. If the District does not elect to restore the Premises and the District does not
exercise its right to terminate this Agreement pursuant to Paragraph 13.3 within one hundred
twenty (120) days following the date of the occurrence of the damage, then at the District's
option this Agreement shall terminate upon delivery of written notice to the Tenant. If the
District elects to restore the Premises, the District shall confer with the Tenant regarding the
design and plans for such restoration of the Premises.
8.2 Notice Required. In the event of material damage to or destruction of the Premises, or
any part thereof, the Tenant shall promptly give the District notice of such occurrence and take
all actions reasonably required to protect against hazards caused by such damage or destruction.
For purposes of this Article VIII, damage or destruction shall be deemed to be material if the
estimated cost to repair equals or exceeds Fifty Thousand Dollars ($50,000).
19
8.3 District's Right to Terminate. Notwithstanding any contrary provision of this Article
VIII, the District shall have the option to terminate this Agreement and be relieved of the
obligation to restore the Premises where all or substantially all of the Premises are substantially
damaged or destroyed and such damage or destruction resulted from a cause not insured against
by the Tenant and /or the District nor required to be insured against by the Tenant and/or the
District under this Agreement.
ARTICLE IX
SECURITY AND PREMISES CLEAN -UP BOND
On the Commencement Date and on an annual basis each April 1 during the Term, Tenant shall
furnish to District a bond or a deposit covering the faithful performance of Tenant's Premises
clean -up obligations set forth in Paragraph 2.5 in such form as District may prescribe, and with
such sureties as District may approve, in the exercise of District's reasonable judgment. This
bond or security shall also operate as a security bond or deposit.
9.1 Use of Security Deposit or Bond.
If the Tenant is in default with respect to any provision of this Agreement, the District may, but
has no obligation to, use the Security Deposit or any portion of the Security Deposit or Premises
Clean -up Bond or any portion of the Premises Clean -up Bond to cure such default or to
compensate the District for any damage or reasonable expense sustained by the District and
resulting from such default, but only after providing the Tenant with an opportunity to cure such
default pursuant to the provisions of Paragraph 13.1. The District shall provide the Tenant with
evidence of damages incurred as a result of a default by the Tenant. If this Agreement has not
been terminated as a result of such default, the Tenant, on demand from the District, shall
promptly restore the Security Deposit to the full amount required by Paragraph 9.2.
9.2 Security Deposit or Premises Clean -up Bond.
Upon execution of this Agreement, the Tenant may provide a security deposit to the District in
the amount of one thousand Dollars ($1000), until such time as the District obtains the land use
permit, at which time the security deposit will increase to a total of $5000 (the "Security
Deposit" or "Premises Clean -up Bond ") or as noted above, may provide a Bond. If a Security
Deposit is provided, and the Tenant is not in default under this Agreement, the District shall
return the Security Deposit or Premises Clean -up Bond to the Tenant upon termination of this
Agreement. The District shall have no obligation to pay or earn interest on the Security Deposit
and Premises Clean -up Deposit, if selected by the Tenant. If interest is paid thereon, such interest
shall become part of the Security Deposit or Premises Clean -up Bond. The District retains the
right to increase the Security Deposit up to $10,000, with sixty (60) days' notice, if the District
deems this is necessary because of increased activities by the Tenant. The District may further
increase the bond to an appropriate amount if Tenant proposes new construction activity and the
proposed structures increase removal costs, unless Parties agree that such structures may remain
after termination.
20
ARTICLE X
AGENCY'S RIGHT TO PERFORM TENANT'S COVENANTS
10.1 If the Tenant shall at any time fail to pay any Imposition or other charge payable by the
Tenant to a third party as required by this Agreement, or to comply with the requirements set
forth in Paragraph 7.2 pertaining to insurance, or to make any other payment or perform any
other act on its part to be made or performed hereunder within the time permitted by this
Agreement, then the District, after thirty (30) days' written notice to the Tenant and without
waiving or releasing the Tenant from any obligation of the Tenant hereunder, may (but shall not
be required to): (i) pay such Imposition or other charge payable by the Tenant; (ii) pay for and
maintain the insurance policies required pursuant to this Agreement; or (iii) make such other
payment or perform such other act on the Tenant's part to be made or performed under this
Agreement; and the District may enter upon the Premises for such purpose and take all such
action thereon as may be reasonably necessary therefor.
10.2 All sums paid by the District and all costs and expenses incurred by the District in
connection with any such payment or the performance of any such act (together with interest
thereon at the Default Rate from the respective dates of the District's making of each such
payment) shall constitute additional Rent payable by the Tenant under this Agreement and shall
be paid by the Tenant to the District on demand. The "Default Rate" means interest calculated at
an annual rate equal to the lesser of twelve percent (12 %) or the maximum rate of interest
permitted by law.
ARTICLE XI
MORTGAGES
11.1 Non - Subordination of Fee. Nothing in this Agreement shall be construed as an
agreement by the District to subordinate its fee interest in the Property or its right to rent
payments hereunder or any other right of the District herein. Except as expressly set forth in this
Agreement, the Tenant shall not mortgage its interest in the Premises without the District's prior
written approval. Notwithstanding anything to the contrary, the District shall have no obligation
to encumber or otherwise subordinate its fee interest in the Property or approve any mortgage of
the Tenant's leasehold estate.
ARTICLE XII
ASSIGNMENT, TRANSFER, SUBLETTING; NONDISTURBANCE AND ATTORNMENT
12.1 Restrictions on Transfer, Assignment and Encumbrance. The Tenant shall have no right
to sell, transfer, sublet, assign, encumber, hypothecate or otherwise convey ( "Transfer ") its
leasehold interest hereunder or any portion of its interest in the Premises or this Agreement
voluntarily, involuntarily, by operation of law, or otherwise, without the District's prior written
consent, including but not limited to use of the property or sublease to the public for community
gardens. No voluntary or involuntary assignee, subtenant, or successor in interest of the Tenant
shall acquire any rights or powers under this Agreement absent such consent.
12.2 No Involuntary Transfers. Without limiting any other restrictions on transfer contained
in this Agreement, no interest of the Tenant in this Agreement, the Premises or part thereof shall
be assignable or transferable without written approval of the District: (i) pursuant to any
21
voluntary or involuntary proceeding under federal or state bankruptcy or insolvency law; (ii)
pursuant to any assignment of the Tenant's assets for the benefit of its creditors; or (iii) pursuant
to any order of attachment, garnishment, receivership, or similar action. Any transfer described
in this Paragraph 12.2 shall constitute an Event of Default under this Agreement by the Tenant,
and the Tenant shall have the right to terminate this Agreement pursuant to Article XII as a result
of any such transfer taking place, in which case this Agreement shall not be treated as an asset of
the Tenant.
12.3 Assumption Agreement and Release. No permitted Transfer shall be effective until any
curable default hereunder shall have been cured and there shall have been delivered to the
District an assumption agreement, executed by the transferor and the proposed transferee,
whereby such transferee expressly assumes such obligations as arise and/or accrue at any time
after such Transfer takes place, and whereby such transferee assumes liability for the obligations
of this Agreement.
12.4 Sale by District. Nothing contained in this Agreement shall be deemed in any way to
limit, restrict or otherwise affect the right of the District to sell, transfer, assign or convey all or
any portion of the right, title and estate of the District in the Property and in this Agreement;
provided, however, that in each such instance any such sale, transfer, assignment or conveyance
shall be subject to this Agreement, and the Tenant's other rights arising out of this Agreement
shall not be affected or disturbed in any way by any such sale, transfer, assignment or
conveyance. At such time as the District shall sell, transfer, assign or convey the entire right,
title and estate of the District in the Property and in this Agreement, all obligations and liability
on the part of the District arising under this Agreement after the effective date of such sale,
transfer, assignment or conveyance shall terminate as to the District, and thereupon all such
liabilities and obligations shall be binding upon the transferee.
12.5 Nondisturbance. Provided that the Tenant is not in default under this Agreement, the
Tenant's possession, use and enjoyment of the Premises shall not be unreasonably interfered
with or otherwise affected in any manner inconsistent with the terms of this Agreement as a
result of any act or omission of the District. None - the -less, the District shall have reasonable
rights of access to the Premises, including Improvements, for inspections and confirmation of
consistency with the Agreement conditions and other written approvals. The Tenant shall also
ensure that its possession, uses and enjoyment of the Premises does not interfere with, disturb or
diminish or otherwise affect in any manner any other tenants on the Property
ARTICLE XIII
DEFAULT, REMEDIES AND TERMINATION
13.1 Event of Default. The Tenant shall be in default under this Agreement upon the
occurrence of any of the following ( "Events of Default "):
(a) Payment of Rent. The Tenant at any time is in default hereunder as to payment of
Rent and such default continues for ten (10) days.
(b) Other Monetary Obligations. The Tenant at any time is in default hereunder as to
any monetary obligation (including without limitation, the Tenant's obligation to pay taxes and
22
assessments due on the Premises or part thereof, subject to the Tenant's rights to contest such
charges pursuant to Paragraph 3.2), and such default continues for thirty (30) days after the date
upon which the District shall have given the Tenant a Notice of Default (as defined in Paragraph
13.2.1).
(c) Insurance. The Tenant fails to obtain and maintain any insurance required
pursuant to Paragraph 7.2 of this Agreement, and the Tenant fails to cure such default within ten
(10) days following receipt of Notice of Default.
(d) Abandonment. The Tenant abandons the Premises and ceases to use it for the
purposes authorized hereby for a period of ninety (90) days or more or as established pursuant to
§ 1951.3 of the California Civil Code except when prevented by Force Majeure.
(e) Transfer. A voluntary or involuntary Transfer of all or any portion of the
Tenant's interest in this Agreement occurs in violation of the provisions of Article XII.
(f) Non - Monetary, Obligations. The Tenant defaults in the performance of any term,
provision, covenant or agreement contained in this Agreement other than an obligation
enumerated in this Paragraph 13. 1, and unless a shorter cure period is specified for such default,
the default continues for thirty (30) days after the date upon which the District shall have given
written notice of the default to the Tenant; provided however, if the default is of a nature that it
cannot be cured within thirty (30) days, an Event of Default shall not arise hereunder if the
Tenant commences to cure the default within thirty (30) days and thereafter prosecutes the curing
of such default with due diligence and in good faith to completion and in no event later than one
hundred and eighty (180) days after receipt of a Notice of Default.
(g) Bankruptcy. The Tenant files a voluntary petition in bankruptcy or files any
petition or answer seeking or acquiescing in any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief for itself under any present or future
federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief
for debtors or seeks or consents to or acquiesces in the appointment of any trustee, receiver or
liquidator of the Tenant or of all or any substantial part of its property, or of any or all of the
royalties, revenues, rents, issues or profits thereof, or makes any general assignment for the
benefit of creditors, or admits in writing its inability to pay its debts generally as they become
due.
(h) Attachment. A writ of execution or attachment or any similar process is issued or
levied against all or any part of the interest of the Tenant in the Premises and such execution,
attachment or similar process is not released, bonded, satisfied, or vacated or stayed within sixty
(60) days after its entry or levy, such sixty (60) day period to be extended during any period of a
bona fide appeal diligently pursued by Tenant.
13.2 Notice and Opportunity to Cure.
13.2.1 Notice of Default. Upon the occurrence of a default hereunder, the non - defaulting
party shall deliver a notice to the nonperforming party (the "Notice of Default"), stating the
23
nature of the obligation which such nonperforming party has failed to perform and stating the
applicable period of time, if any, permitted to cure the default.
13.2.2 Failure to Give Notice, No Waiver. Failure to give, or delay in giving, the Notice
of Default shall not constitute a waiver of any obligation, requirement or covenant required to be
performed hereunder. No failure or delay by either party in asserting any rights and remedies as
to any breach shall operate as a waiver of any breach or of any such rights or remedies. Delay by
either party in asserting any of its rights and remedies shall not deprive such party of the right to
institute and maintain any action or proceeding which it may deem appropriate to protect, assert
or enforce any such rights or remedies.
13.3 Remedies Upon Default.
13.3.1 District's Remedies. Upon the occurrence of any Event of Default and in addition
to any and all other rights or remedies of the District hereunder and/or provided by law, the
District shall have the right to terminate this Agreement and/or the Tenant's possessory rights
hereunder, in accordance with applicable law to re -enter the Premises and take possession
thereof and of the Fixtures and any Improvements, and except as otherwise provided herein, to
remove all persons and property therefrom, and to store such property at the Tenant's risk and
for the Tenant's account, and the Tenant shall have no further claim thereon or hereunder. The
District's re -entry or taking of possession of the Premises shall not be construed as an election on
the District's part to terminate this Agreement unless the District shall have given written notice
of such intention to the Tenant. In no event shall this Agreement be treated as an asset of the
Tenant after any final adjudication in bankruptcy except at the District's option so to treat the
same but no trustee, receiver, or liquidator of the Tenant shall have any right to disaffirm this
Agreement.
13.3.2 Remedies Upon Abandonment. If the Tenant should default under this
Agreement and abandon the Premises, the District may, at its option, enforce all of its rights and
remedies under this Agreement, including the right to recover the rent as it becomes due
hereunder. Additionally, the District shall be entitled to recover from the Tenant all costs of
maintenance and preservation of the Premises, and all costs, including attorneys' and receiver's
fees incurred in connection with the appointment of and performance by a receiver to protect the
Premises and the District's interest under this Agreement.
13.3.3 District Rifzht to Continue Lease. In the event of any default under this Agreement
by the Tenant (and regardless of whether or not the Tenant has abandoned the Premises), this
Agreement shall not terminate (except by an exercise of the District's right to terminate under
Paragraph 13.3. 1) unless the District makes such election by the giving of any notice (including,
without limitation, any notice preliminary or prerequisite to the bringing of legal proceedings in
unlawful detainer) to terminate the Tenant's right to possession. For so long as this Agreement
continues in effect, the District may enforce all of the District's rights and remedies under this
Agreement, including, without limitation, the right to recover all rent and other monetary
payments as they become due hereunder. For the purposes of this Agreement, the following
shall not constitute termination of the Tenant's right to possession: (a) acts of maintenance or
24
preservation or efforts to relet the Premises; or (b) the appointment of a receiver upon initiative
of the District to protect the District's interest under this Agreement.
13.3.4 Right to Injunction, Specific Performance. In the Event of Default by the Tenant
under this Agreement, the District shall have the right to commence an action against the Tenant
for damages, injunction and/or specific performance. The Tenant's failure, for any reason, to
comply with a court- ordered injunction or order for specific performance shall constitute a
breach under this Agreement.
13.4 Remedies Cumulative. No remedy specified in this Article XIII shall be considered
exclusive of any other remedy, but the same shall be cumulative and shall be in addition to every
other remedy provided hereunder or now or hereafter existing at law or in equity or by statute,
and every power and remedy provided by this Agreement may be exercised from time to time
and as often as occasion may arise or as may be deemed expedient, subject to any limitations set
forth herein.
13.5 No Election of Remedies. The rights given in this Article XIII to receive, collect or sue
for any rent or rents, moneys or payments, or to enforce the terms, provisions and conditions of
this Agreement, or to prevent the breach or nonobservance thereof, or the exercise of any such
right or of any other right or remedy hereunder or otherwise granted or arising, shall not in any
way affect or impair or toll the right or power of the District upon the conditions and subject to
the provisions in this Agreement to terminate the Tenant's right of possession because of any
default in or breach of any of the covenants, provisions or conditions of this Agreement beyond
the applicable cure period.
13.6 Survival of Obligations. Nothing herein shall be deemed to affect the right of the District
under Article VIII of this Agreement to indemnification for liability arising prior to the
termination of this Agreement for personal injuries or property damage, nor shall anything herein
be deemed to affect the right of the District to equitable relief where such relief is appropriate.
No expiration or termination of the Term by operation of law, or otherwise, and no repossession
of the Improvements or any part thereof shall relieve the Tenant of its previously accrued
liabilities and obligations hereunder, all of which shall survive such expiration, termination or
repossession.
ARTICLE XIV
GENERAL PROVISIONS
14.1 Force Majeure, Extension of Times of Performance. Subject to the limitations set forth
below, performance by either Party shall not be deemed to be in default, and all performance and
other dates specified in this Agreement shall be extended where delays are due to war,
insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the
public enemy, epidemics, quarantine restrictions, freight embargoes, governmental restrictions or
priority, unusually severe weather, acts or omissions of the other party, acts or failures to act of
any public or governmental agency or entity or any other cause beyond the affected party's
reasonable control ( "Force Majeure Times ") All of performance under this Agreement may also
be extended in writing by the mutual agreement of the Tenant and the District (acting in the
discretion of its District Manager unless he or she determines in his or her discretion to refer
25
such matter to the Board of Directors of District). Each party expressly assumes the risk of such
adverse economic or market changes and /or financial inability, whether or not foreseeable as of
the Effective Date.
14.3 Representations of District and Tenant.
14.3.1 The Tenant hereby represents and warrants that all of the following are true and
correct as of the Effective Date:
(a) The Tenant has taken all requisite action in connection with the execution
of this Agreement and the undertaking of the obligations set forth herein. This Agreement
constitutes the legally valid and binding obligation of the Tenant, enforceable against the Tenant
in accordance with its terms, except as it may be affected by bankruptcy, insolvency or similar
laws or by legal or equitable principles relating to or limiting the rights of contracting parties
generally; and
(b) The execution of this Agreement and the acceptance of the obligations set
forth herein do not violate any court order or ruling binding upon the Tenant or any provision of
any indenture, agreement or other instrument to which Tenant is a party or may be bound.
14.3.2 District hereby represents and warrants that all of the following are true and
correct as of the Effective Date:
(a) The District has taken all requisite action in connection with the execution
of this Agreement and the undertaking of the obligations set forth herein. This Agreement
constitutes the legally valid and binding obligation of the District, enforceable against the
District in accordance with its terms, except as it may be affected by bankruptcy, insolvency or
similar laws or by legal or equitable principles relating to or limiting the rights of contracting
parties generally; and
(b) The execution of this Agreement and the acceptance of the obligations set
forth herein do not violate any court order or ruling binding upon the District or any provision of
any indenture, agreement or other instrument to which the District is a party or may be bound.
Neither the entry into nor the performance of this Agreement will violate, be in conflict with or
constitute a default under any charter, bylaw, partnership agreement, trust agreement, mortgage,
deed of trust, indenture, contract, judgment, order or other agreement, charge, right or interest
applicable to the District.
14.4 Miscellaneous.
14.4.1 Severability. If any term or provision of this Agreement or the application thereof
to any person or circumstance shall, to any extent, be held by a court of competent jurisdiction to
be invalid or unenforceable, the remainder of this Agreement, or the application of such term or
provision to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall
be valid and be enforced to the fullest extent permitted by law
26
14.4.1 Notices. Except as otherwise specified herein, all notices to be sent pursuant to
this Agreement shall be made in writing, and sent to the Parties at their respective addresses
specified below or to such other address as a Party may designate by written notice delivered to
the other parties in accordance with this section. All such notices shall be sent by:
(i) Personal delivery, in which case notice is effective upon delivery;
(ii) Certified or registered mail, return receipt requested, in which case notice
shall be deemed delivered on receipt if delivery is confirmed by a return receipt;
(iii) Nationally recognized overnight courier, with charges prepaid or charged
to the sender's account, in which case notice is effective on delivery if delivery is confirmed by
the delivery service; or
(iv) Facsimile transmission, in which case notice shall be deemed delivered
upon transmittal, provided that (a) a duplicate copy of the notice is promptly delivered by first
class or certified mail or by overnight delivery, or (b) a transmission report is generated
reflecting the accurate transmission thereof. Any notice given by facsimile shall be considered
to have been received on the next business day if it is received after 5:00 p.m. recipient's time or
on a nonbusiness day.
Tenant: AgLantis
62 Scenic Drive
Orinda, CA 94563
Attention: Carolyn R. Phinney
Telephone: 925- 788 -7374
Facsimile: 925 -253 -9500
District
Manager: Central Contra Costa Sanitary District
5500 Imhoff Drive
Martinez, CA 94553
Attention: Environmental Services Division Manager
Telephone: 925- 229 -7118
Facsimile: 925- 228 -4624
With copy to:
Meyers Nave Riback Silver & Wilson
555 12th Street, Suite 1500
Oakland, CA 94607
Attention: Counsel for the District
Telephone: (510) 808 -2000
Facsimile: (510) 444 -1108
14.4.2 Captions, Construction. The section headings and captions used herein are solely
for convenience and shall not be used to interpret this Lease. The Parties acknowledge that this
27
Agreement is the product of negotiation and compromise on the part of both Parties, and the
Parties agree that since both Parties have participated in the negotiation and drafting of this
Agreement with the advice of counsel, this Agreement shall not be construed as if prepared by
one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had
prepared it.
14.4.3 Successors and Assigns. Subject to the restrictions on transfer set forth in Article
XII, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their
respective successors and assigns. Any reference in this Lease to a specifically named Party
shall be deemed to apply to any permitted successor and assign of such Party who has acquired
an interest in compliance with this Agreement as if in every case so expressed.
14.4.4 Short Form of Lease. A memorandum of lease shall be executed by the Parties
and recorded in the Official Records of Contra Costa County.
14.4.5 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the state of California without regard to principles of conflicts of
laws. Any action to enforce or interpret this Agreement shall be filed in Contra Costa Superior
Court of California or in the United States District Court, Northern District of California.
14.4.6 Attorney's Fees. If either Party commences an action against the other to enforce
any obligation contained herein, or to interpret any provision hereof, the prevailing party shall be
entitled to recover from the other Party reasonable counsel fees, costs and necessary
disbursements, as determined by the court having jurisdiction over the action.
14.4.7 Indemnity Includes Defense Costs. In any case where either Party is obligated
under an express provision of this Lease, to indemnify and to save the other Party harmless from
any damage or liability, the same shall be deemed to include defense of the indemnitee by the
indemnitor, such defense to be through legal counsel reasonably acceptable to the indemnitee.
14.4.8 No Third Party Beneficiaries, Disclaimer of Partnership, Lender /Borrower
Relationship. Nothing contained in this Agreement is intended to or shall be deemed to confer
upon any person, other than the Parties any rights or remedies hereunder. The relationship of the
parties under this Agreement is solely that of landlord and tenant, and it is expressly understood
and agreed that the District does not as a result of this Agreement in any way nor for any purpose
become a partner of the Tenant or a joint venturer with the Tenant in the conduct of the Tenant's
business or otherwise. This Agreement is not intended to, and shall not be construed to, create
the relationship of principal and agent, partnership, joint venture, or association as between the
District and the Tenant. It is further expressly understood and agreed that this Agreement is not
intended to, and shall not be construed to create the relationship of lender and borrower, and the
District does not, solely as a result of this Agreement, become a lender to the Tenant.
14.4.9 Entire Agreement. This Agreement, together with Exhibits "A," "B," "C," and
"D," which by this reference is hereby incorporated herein, contains the entire agreement
between the Parties relative to the transactions covered hereby. All previous correspondence,
communications, discussions, agreements, understandings or proposals and acceptances thereof
between the Parties or their representatives, whether oral or written, are deemed to have been
integrated into and superseded by this Agreement and are of no further force and effect except as
expressly provided in this Agreement.
14.4. 10 Waiver, Modification. No waiver of any breach of any covenant or provision of
this Agreement shall be deemed a waiver of any subsequent breach of the same or any other
covenant or provision hereof. No waiver shall be valid unless in writing and executed by the
waiving party. An extension of time for performance of any obligation or act shall not be
deemed an extension of the time for performance of any other obligation or act, and no extension
shall be valid unless in writing and executed by the waiving party. This Agreement may be
amended or modified only by a written instrument executed by the Parties.
14.4.11 Time is of the Essence. Time is of the essence of this Agreement and of each
provision hereof.
14.4.12 Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be an original and all of which together shall constitute one and the same
instrument.
14.4.13 Action by the Parties. Except as may be otherwise specifically provided herein,
whenever any approval, notice, direction, consent or request by the Tenant in its capacity as
tenant hereunder is required or permitted under this Agreement, such action shall be in writing,
and such action may be given, made or taken by the District General Manager or by any person
who shall have been designated by the District General Manager, without further approval by the
Board of Directors of District unless the District General Manager determines in his or her
discretion that such matter requires consideration by the Board of Directors of District.
14.4.14 Mutual Non - Liability of Officials and Employees. No member, official,
employee, agent or volunteer of the Tenant or the District shall be personally liable to Tenant or
District or their successors in interest in the event of any default or breach by the Tenant or the
District or for any amount which may become due to the District pursuant to this Agreement,
consistent with existing laws protecting corporate officers and public officials.
29
IN WITNESS WHEREOF, the Parties have entered into this Lease as of the Effective Date.
ATTEST:
Secretary of the District
APPROVED TO FO
i
Counsel for the District
TENANT:
AGLANTIS
By:
Its:f
DISTRICT:
,I I C'x
CENTRAL CONTRA COSTA SANITARY DISTRICT
B y:. Z,
Its: C
30
EXHIBIT "A"
PROPERTY
REAL PROPERTY IN THE COUNTY OF CONTRA COSTA, STATE OF
CALIFORNIA DESCRIBED AS FOLLOWS:
ALL THAT PORTION OF PARCEL C AS DESCRIBED IN THE GRANT DEED
TO THE CENTRAL CONTRA COSTA SANITARY DISTRICT RECORDED
JANUARY 16, 1981 IN BOOK 10168 OF OFFICIAL RECORDS OF SAID
COUNTY AT PAGE 209 (10168 O.R. 209), DESCRIBED AS FOLLOWS:
COMMENCING AT FOUND 1.5" IRON PIPE MONUMENT WITH TAG
STAMPED "CEN SAN" HAVING COORDINATES OF (Y) 2190838.42 FEET
AND (X) 6112255.80 FEET, NORTH AMERICAN DATUM OF 1983, ZONE 0403,
GPS EPOCH 2007.00 [NAD83], SAID IRON PIPE MONUMENT BEING
LOCATED AT THE NORTHERLY TERMINUS OF THE COURSE SHOWN AS
SOUTH 440 44'31 " EAST 85.45 FEET AS SHOWN UPON THE PARCEL MAP
RECORDED DECEMBER 29, 1980 IN BOOK 91 OF PARCEL MAPS PAGE 41
(91 PM 41);
THENCE NORTH 880 15'39" WEST 433.92 FEET (NORTH 88° 15' 06" WEST
433.56 FEET - RECORD PER 91 PM 41) TO A SIMILAR FOUND IRON PIPE
MONUMENT BEING LOCATED AT THE EASTERLY TERMINUS OF THE
COURSE SHOWN AS SOUTH 760 06'45" EAST 190.56 FEET AS SHOWN
UPON SAID MAP (91 PM 41), LAST SAID IRON PIPE MONUMENT HAVING
COORDINATES OF (Y) 2190851.59 FEET AND (X) 6111822.09 FEET [NAD83];
THENCE SOUTH 740 39' 18" WEST 423.32 FEET TO A POINT ON THE
WESTERLY LINE OF SAID PARCEL C (10168 O.R. 209), SAID POINT BEARS
SOUTH 210 52'50" WEST 79.20 FEET FROM THE SOUTHWESTERLY
TERMINUS OF THE COURSE SHOWN AS NORTH 660 33'16" EAST 211.61
FEET UPON SAID MAP (91 PM 41), SAID POINT BEING THE POINT OF
BEGINNING;
THENCE FROM SAID POINT OF BEGINNING LEAVING SAID WESTERLY
LINE NORTH 810 46'53" EAST 267.40 FEET;
THENCE SOUTH 76015'56" EAST 178.22 FEET;
THENCE SOUTH 000 20'34" EAST 641.06 FEET;
Kiewit Lease Parcel 1 Page 1 of 2
Central Contra Costa Sanitary District
APN 159 - 140 -051
THENCE SOUTH 640 04'52" WEST 608.10 FEET;
THENCE SOUTH 310 28'37" EAST 315.76 FEET TO A POINT ON THE
SOUTHEASTERLY LINE OF SAID PARCEL C;
THENCE ALONG SAID SOUTHEASTERLY LINE THE FOLLOWING TWO
COURSES, (1) SOUTH 560 39' 09" WEST 135.95 FEET, (2) SOUTH 680 02'48"
WEST 361.53 FEET;
THENCE LEAVING SAID SOUTHEASTERLY LINE NORTH 220 27' 58" WEST
181.39 FEET TO A POINT ON THE WESTERLY LINE OF SAID PARCEL C;
THENCE ALONG SAID WESTERLY LINE THE FOLLOWING THREE
COURSES, (1) NORTH 21- 52' 50" EAST 267.00 FEET, (2) NORTH 27° 08'57"
WEST 39.70 FEET, (3) NORTH 21- 52'50" EAST 1012.35 FEET TO THE
POINT OF BEGINNING.
EXCEPTING THEREFROM ALL THAT PORTION OF LAND AS DESCRIBED IN
THE QUITCLAIM DEED TO THE CONTRA COSTA COUNTY FLOOD
CONTROL AND WATER CONSERVATION DISTRICT RECORDED JULY 24,
1973 IN BOOK 7003 OF OFFICIAL RECORDS AT PAGE 798, CONTRA COSTA
COUNTY RECORDS.
UNLESS OTHERWISE SPECIFIED ALL BEARINGS AND DISTANCES SHOWN
HEREIN ARE BASED ON THE NORTH AMERICAN DATUM OF 1983, ZONE
0403, GPS EPOCH 2007.00. MULTIPLY GRID DISTANCES SHOWN HEREIN
BY 1.00005736 TO OBTAIN GROUND DISTANCES.
CONTAINING A TOTAL OF 14.8 ACRES MORE OR LESS.
ATTACHED HERETO IS A PLAT ENTITLED EXHIBIT "B" AND BY THIS
REFERENCE MADE A PART HEREOF.
lk
J,
WEXP.11/15
DATE: APRIL 4, 201
Kiewit Lease Parcel 1 Page 2 of 2
Central Contra Costa Sanitary District
APN 159 - 140 -051
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9 Y P 9 9. P Y
CerwalCormaCosta 0 100 200 Proposed Sustainable Exhibit
Sanitary District AP N : 159- 140 -051 B
INOW, Feet Farm Lease
EXHIBIT "C"
Use of Premises Description
Land Uses:
As shown in Exhibit `B ", the project site is primarily located in the within Safety Zones 2 and 4, associated with
Runways 14L and 14R of Buchanan Field Airport. The allowable uses included in the Air Port Land Use
Compatibility Plan (ALUCP) sets forth a variety of safety compatibility policies that are applicable to this
development. The majority of the project site is located within Safety Zone 2. Aircraft at Buchanan Field Airport
overfly Safety Zone 2 at low altitudes on final approach and during departure /takeoff. According to the
California Airport Land Use Planning Handbook, the majority of off - airport aircraft accidents occur in Safety
Zones 1 and 2.
Land use compatibility policies applicable to Safety Zone 2 at Buchanan Field Airport include the following:
5.3.3(a) Land uses shall be limited to a maximum of 30 people per acre or 1 person per 500 square feet of
gross building floor area.
5.3.3(a)(1) Hotels, restaurants, shopping centers, theaters, and other places of public assembly typically
do not comply with this criterion, but are acceptable if the usage is limited through building design, use
permit, and/or other mechanisms. 5.3.3(b) Buildings shall have no more than two habitable floors above
ground.
5.3.3(c) Residences, children's schools (through grade 12), day care centers, hospitals, and nursing homes
are specifically prohibited.
5.3.3(d) Aboveground bulk storage of hazardous materials is prohibited with the exception of:
(1) On- airport storage of aviation fuel and other aviation - related flammable materials
(2) Up to 2,000 gallons of nonaviation flammable materials.
The western portion of the project site is located within Safety Zone 4. Land use compatibility policies applicable
to Safety Zone 4 include the following:
5.3.5(a) Land use intensity is not limited2 other than that buildings shall have no more than four habitable
floors above ground.
5.3.5(b) Aboveground storage of more than 2,000 gallons of fuel or other hazardous materials is
prohibited in existing or planned residential or commercial areas.
Hazardous Wildlife Attractants
Wildlife that is hazardous to aircraft in operation, and the types of land uses that attract them, have become an
increasing focus of the FAA and airport operators over the last few years. FAA guidance documents, such as AC
150/5200 -33B, Hazardous Wildlife Attractants on or Near Airports, asks airport operators, local planners, and
developers to consider whether a proposed land use will increase wildlife hazards. A variety of land use types and
activities, including agriculture, have been identified by the FAA as potential hazardous wildlife attractants. The
FAA definition of wildlife attractants includes human -made or natural areas, such as poorly drained areas,
retention ponds, agricultural activities, and wetlands.
Two key objectives were identified for the analysis of plant species (or farm crops) and their compatibility with
airport hazard wildlife management, including (1) identifying plant species that provide low or no habitat or food
sources for wildlife and (2) planting native species where feasible to avoid facilitating the spread of potential
invasive species.
ALLOWABLE CROPS FOR CULTIVATION AT THE PROJECT SITE
Allowable Crop or Plant Species Suitability for Cultivation Near Airports
Pineapple guava (Acca sellowiana)
Moderately suitable. Birds are not known to eat the fruit of the
• Evergreen large shrub growing to 20 feet tall and produces fruit
pineapple guava plant; however, small bird species may eat the
in the winter.
flowers.
Meyer lemon (Critrus x meyen)
Moderately suitable. Plant is not known to attract many bird or
• Small to medium shrub growing to 6 -10 feet tall; evergreen;
wildlife species. As with most shrubs, small birds may use the
produces fruit in the winter.
canopy for nesting.
Parry's agave (Agave parryi ssp. neomexicana)
Highly suitable.
• Perennial slow - growing shrub that grows to 3 feet tall; mature
plants produce tall (12 -15 feet) flowering spike that attracts
hummingbirds; resists deer and rabbits.
Mexican marigold (Tagetes lemmonii)
Moderately to highly suitable.
• Mounding evergreen shrub that grows to 6 feet tall; flowers in
the summer.
Rosemary'lndian Spire' (Rosmarinus officinalis)
Highly suitable.
• Columnar perennial shrub growing to 5 feet tall; fragrant needle -
like leaves with blue flowers in the spring.
White sage (Salvia apiana) Highly suitable.
• Mounding evergreen shrub that grows to 5 feet tall; leaves have
strong aroma; flowers are very attractive to bees.
Bee Garden Plants T
Yarrow (Achillea spp.) Highly suitable.
Sage (Salvia spp.)
Mint (Mentha spp.)
Sweet alyssum (Lobularia maritima)
Lavender (Lavandula spica, Lavandula vera, Lavandula intermedia,
Lavandula dentate)
Wonder of Staffa (Aster frikartil)
California poppy (Eschscholzia callfomica)
Penstemon'Blue Bedder'
Vegetable Crops
Salad greens (lettuces) Moderately suitable. Rodents that are found in irrigated row and
- -— — - - - - -- field crop habitats need to be controlled via trapping or other
Tomatoes _ methods to reduce potential prey base for raptor species.
Other vegetable crops (e.g., kale)
Herbs (Basil, etc.) Highly suitable.
Other
Flowers: Depending on the species, some flowers may produce
seeds that attract small bird species. For example, sunflower or
species from the sunflower family are known to produce large seeds
that are edible to many passerines and moderate -sized birds.
These crops are subject to modifications.
Suitability varies depending on species and extent of plantings.
Anticipated Capital Improvements
Per Article VI of this Agreement, the Tenant shall not make any change, alteration or addition to the
without the prior written consent of the District. The following Improvements are anticipated as part of
the Agreement.
Capital Improvements for first Three Years
• 20-foot gravel road along perimeter as shown in Exhibit B _
• Parking Facilities including accessible stalls as shown in
Tenant Provided Plan Document
• Teaching Gardens _-
• Green House
• Barn
• Secure Perimeter Chain Link Fence similar to District
Standards
• Distribution Irrigatiois,
stem
- - - - --
• Solar Panels and renewable enema installations
• Installation of electrical power op les
• SiZnAe as allowable by_ County and Caltrans regulations-
_ _ -
• Potable water installation
All improvements, both temporary and permanent, shall comply with all permit requirements in
accordance with Section 6.3 of the Agreement.
Tenant Provided Planning Document
PARKING
BARN
TEAGHINO GARDENS
RESTROOOM5
STAIR TO GREEN ROOF
KID'S CORNER
OFFIGE
GREEN HOUSE
TEAGHINO FAG I L I TY
200 SEATS
TEAGHINO OARDENS
,
,
,
n,
ry0
4p,
EXHIBIT "D„
Performance Agreement
Included in Business Plan
Per Section 4.9 Annual Report Obligation, a Business Plan will be submitted prior to the effective date
of this Agreement and annually thereafter. The business plan must include an annual operating budget,
an annual capital improvement budget and performance goals for the coming year; and a report on the
prior year's performance results. Specific performance requirements will start after the approval of the
Land Use Permit.
Requirements to be Submitted Annually which shall include:
• Annual Operating Budget _
• Proposed Canal Improvements for followm_g year _
• Number of people taught at the Farm
• Number of volunteers
• Number of people that participated in other Sustainable
Farm programs delivered offsite
• Annual financial reports to the District setting forth the
operating costs and profit and loss statements - • _ Operational Requirements
_ _• Updates to Business Plan
Year 1 Performance Requirements
• Amount of Produce provided to Food Bank or other non-
commercial institutions
• Construct perimeter fencing around all aboveground
improvements (excepting fencing around green manure crop
and some simple- farm infrastructure to allow planting) -
• Plant a crop (such as green manure crop) - 5 acres
Year 2 Performance Requirements
• Plant a crop (such as geen manure crop)- 5 acres
• Provide goods to a market or Donate goods to Food Bank or
School District (Quantity as set forth in Business Plan)
•_Develop a teaching plan curriculum
• Increase volunteers participation by 15% from previous year
Year 3 Performance Requirements
Provide remaining fencing around food crops and
aboveground improvements
• Provide goods to a market or Donate goods to Food Bank or
School District (Quantity as set forth in Business Plan)__ _
• Get Building Permit and construct Green House _
• Provide a teaching facility and start sustainable curriculum _
• Submit long term Strategic Plan
• Submit Performance Requirements for Years 4,5 & 6 (which
shall be subject to approval by District
Year 6 Performance Requirements
• Submit Performance Requirements for Years 7,8,9& 10
(which shall be subject to approval by District _ __
Item 7.a.
Attachment 2
Memorandum of
Lease Agreement
ATTACHMENT 2
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
CENTRAL CONTRA COSTA SANITARY
DISTRICT
5500 IMHOFF DRIVE
MARTINEZ, CA 94553
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§ 6103, 27383
APN 159- 140 -051 Space above this line for Recorder's use.
MEMORANDUM OF LEASE
This Memorandum of Lease (this "Memorandum "), dated for reference purposes as of
, is executed by and between CENTRAL CONTRA COSTA SANITARY
DISTRICT, a California special district ( "Landlord ") and AGLANTIS, a California non - profit
public benefit corporation ( "Tenant "), currently doing business as COCO SAN SUSTAINABLE
FARM in reference to and consideration of that certain Lease Agreement dated as of
, by and between Landlord and Tenant (the "Lease ").
1. The purpose of this Memorandum is to provide notice of the existence of the
Lease which is incorporated herein by this reference. This Memorandum incorporates all of the
terms and provisions of the Lease as though fully set forth herein.
2. The Landlord is the owner of fee title to the land located at Imhoff Drive, in the
city of Martinez, county of Contra Costa, California, as more particularly described in
Exhibit "A" attached hereto and incorporated herein by this reference ( "Property ").
3. This is unimproved property that has been leased for agricultural, teaching and
related purposes ( "Premises ").
4. Pursuant to the Lease, the Landlord leases to the Tenant, and the Tenant leases
from the Landlord, the Premises subject to all of the terms and conditions set forth in the Lease.
The Landlord hereby grants and conveys unto the Tenant for the term of the Lease
the Premises.
6. The term of the Lease shall not exceed ten (10) years.
IN WITNESS WHEREOF, the parties have executed this Memorandum as of the date
first set forth above.
TENANT:
AGLANTIS
By:
Its:
flk110131161913
CENTRAL CONTRA COSTA SANITARY DISTRICT
UO-A
Its:
LANDLORD AND TENANT SIGNATURES MUST BE NOTARIZED
ATTEST:
Secretary of the District
APPROVED AS TO FORM:
Counsel for the District
2293204.2
Page 2
EXHIBIT "A"
PROPERTY
REAL PROPERTY IN THE COUNTY OF CONTRA COSTA, STATE OF
CALIFORNIA DESCRIBED AS FOLLOWS:
ALL THAT PORTION OF PARCEL C AS DESCRIBED IN THE GRANT DEED
TO THE CENTRAL CONTRA COSTA SANITARY DISTRICT RECORDED
JANUARY 16, 1981 IN BOOK 10168 OF OFFICIAL RECORDS OF SAID
COUNTY AT PAGE 209 (10168 O.R. 209), DESCRIBED AS FOLLOWS:
COMMENCING AT FOUND 1.5" IRON PIPE MONUMENT WITH TAG
STAMPED "CEN SAN" HAVING COORDINATES OF (Y) 2190838.42 FEET
AND (X) 6112255.80 FEET, NORTH AMERICAN DATUM OF 1983, ZONE 0403,
GPS EPOCH 2007.00 [NAD83], SAID IRON PIPE MONUMENT BEING
LOCATED AT THE NORTHERLY TERMINUS OF THE COURSE SHOWN AS
SOUTH 440 44'31 " EAST 85.45 FEET AS SHOWN UPON THE PARCEL MAP
RECORDED DECEMBER 29, 1980 IN BOOK 91 OF PARCEL MAPS PAGE 41
(91 PM 41);
THENCE NORTH 880 15'39" WEST 433.92 FEET (NORTH 88° 15' 06" WEST
433.56 FEET - RECORD PER 91 PM 41) TO A SIMILAR FOUND IRON PIPE
MONUMENT BEING LOCATED AT THE EASTERLY TERMINUS OF THE
COURSE SHOWN AS SOUTH 760 06'45" EAST 190.56 FEET AS SHOWN
UPON SAID MAP (91 PM 41), LAST SAID IRON PIPE MONUMENT HAVING
COORDINATES OF (Y) 2190851.59 FEET AND (X) 6111822.09 FEET [NAD83];
THENCE SOUTH 740 39' 18" WEST 423.32 FEET TO A POINT ON THE
WESTERLY LINE OF SAID PARCEL C (10168 O.R. 209), SAID POINT BEARS
SOUTH 210 52'50" WEST 79.20 FEET FROM THE SOUTHWESTERLY
TERMINUS OF THE COURSE SHOWN AS NORTH 660 33'16" EAST 211.61
FEET UPON SAID MAP (91 PM 41), SAID POINT BEING THE POINT OF
BEGINNING;
THENCE FROM SAID POINT OF BEGINNING LEAVING SAID WESTERLY
LINE NORTH 810 46'53" EAST 267.40 FEET;
THENCE SOUTH 76015'56" EAST 178.22 FEET;
THENCE SOUTH 000 20'34" EAST 641.06 FEET;
Kiewit Lease Parcel 1 Page 1 of 2
Central Contra Costa Sanitary District
APN 159 - 140 -051
THENCE SOUTH 640 04' 52" WEST 608.10 FEET;
THENCE SOUTH 310 28'37" EAST 315.76 FEET TO A POINT ON THE
SOUTHEASTERLY LINE OF SAID PARCEL C,
THENCE ALONG SAID SOUTHEASTERLY LINE THE FOLLOWING TWO
COURSES, (1) SOUTH 560 39'09" WEST 135.95 FEET, (2) SOUTH 680 02'48"
WEST 361.53 FEET;
THENCE LEAVING SAID SOUTHEASTERLY LINE NORTH 220 27'58" WEST
181.39 FEET TO A POINT ON THE WESTERLY LINE OF SAID PARCEL C;
THENCE ALONG SAID WESTERLY LINE THE FOLLOWING THREE
COURSES, (1) NORTH 21° 52'50" EAST 267.00 FEET, (2) NORTH 27° 08,57'.
WEST 39.70 FEET, (3) NORTH 21- 52'50" EAST 1012.35 FEET TO THE
POINT OF BEGINNING.
EXCEPTING THEREFROM ALL THAT PORTION OF LAND AS DESCRIBED IN
THE QUITCLAIM DEED TO THE CONTRA COSTA COUNTY FLOOD
CONTROL AND WATER CONSERVATION DISTRICT RECORDED JULY 24,
1973 IN BOOK 7003 OF OFFICIAL RECORDS AT PAGE 798, CONTRA COSTA
COUNTY RECORDS.
UNLESS OTHERWISE SPECIFIED ALL BEARINGS AND DISTANCES SHOWN
HEREIN ARE BASED ON THE NORTH AMERICAN DATUM OF 1983, ZONE
0403, GPS EPOCH 2007.00. MULTIPLY GRID DISTANCES SHOWN HEREIN
BY 1.00005736 TO OBTAIN GROUND DISTANCES.
CONTAINING A TOTAL OF 14.8 ACRES MORE OR LESS.
ATTACHED HERETO IS A PLAT ENTITLED EXHIBIT "B" AND BY THIS
REFERENCE MADE A PART HEREOF.
DATE: APRIL 4,
Kiewit Lease Parcel 1 Page 2 of 2
Central Contra Costa Sanitary District
APN 159 - 140 -051
lk
Item 7.a.
Attachment 3
Business Plan
Attachment 3
AgLantis: CoCo San Sustainable Farm
CoCo San Sustainable Farm
Project of AgLantis TM
Carolyn Phinney, Ph.D.
President and Executive Director
62 Scenic Drive
Orinda, CA 94563
SustainableFarm @comcast.net
925- 788 -7374 cell
June 27, 2014
AgLantis: CoCo San Sustainable Farm
AgLantis: CoCo San Sustainable Farm
Table of Contents
Executive Summary
6
1. Mission
8
2. Company History and Overview
8
3. Market Research
9
A. Global and Local Need for Food
9
B. Market for Organic Produce
10
C. Solution to Market Problems
10
4. Products and Services
12
5. Marketing and Sales
14
6. Financial Plan
14
A. Revenue Sources
14
B. Market Segmentation
14
C. Competition
16
D. Competitive Edge
17
E. Risk/Reward Ratio
18
F. Challenges
19
G. Competition for Advertising and Rental
21
H. Pricing Model
21
I. Industry Analysis
21
J. Marketing Strategy
21
K. Sales Strategy
22
8. 1St Three Years of Operations
23
A. Objectives for 1St Full Operational Year (2015)
24
B. Objectives for 2nd Full Operational Year (2016)
25
C. Objectives for 3rd Full Operational Year (2017)
26
9. Goals for the Next 5 Years
28
10. Financial Data
28
A. Projection Assumptions
28
1. Cost of Production
28
2. Decrease in Costs
28
3. The First Two Years
28
4. Hydroponics
28
5. Education and Internship Costs
28
6. Worldwide Demand for Produce
29
7. Price of Produce
29
8. Grants and Donations
29
9. Growth Rate
29
10. Projected Profit, Loss, and Cash at End of 2015
29
11. Revenue and Costs Forecast
29
3
AgLantis: CoCo San Sustainable Farm
B. Farm Products
30
1. Produce Sales
30
2. Herbs
30
3. Potted Plants and Seedling Sales
30
4. Sales of Other People's Products
30
5. Facilities and Event Rental
30
6. Advertising
30
7. Space Rental for Green Businesses
30
8. Classes
30
C. 5 -Year Income Projections
30
D. Consolidated 5 -Year Profit and Loss
31
E. Consolidated Cash Flow
31
F. Consolidated Balance Sheet
31
G. 1 st -Year Break Even Analysis
31
H. Financial Ratios
31
1. Common Sized Income Statements
31
11. Assessment of Outcomes
31
A. Infrastructure and Capital Improvements
31
B. Planting Data
31
C. Harvesting Data
31
D. Cost Data
32
E. Produce Donation Data
32
F. Produce Sales Data
32
G. Security and Physical Safety Data
32
H. Volunteer Data
32
I. Classes Data
32
J. Student Data
32
K. Community Outreach Data
32
L. Survey Evaluation Data
32
12. Management Team; Key Team Members, Key Positions
32
A. AgLantis
32
B. AgLantis Board
33
C. Other Key Personnel
34
D. Personnel Plan
34
E. Volunteers
35
13. Organization
35
A. Overview
35
B. Accounting
36
C. Legal
36
D. Insurance
36
E. Security and Physical Safety
37
14. Keys to Success
37
4
15. References
Appendix A: Five Year Financial Projections
Appendix B: Organizational Chart
Appendix C: Security and Physical Safety
AgLantis: CoCo San Sustainable Farm
38
AgLantis: CoCo San Sustainable Farm
Executive Summary
CoCo San Sustainable Farm's mission is to feed people nutritious food by deploying under - utilized
natural resources to grow fresh produce using sustainable organic methods, while nearly eliminating
four of the major financial & carbon costs of produce production, creating a scalable model that can be
replicated worldwide, and educate the public about sustainable living practices.
PROBLEM & PROPOSED SOLUTION: It costs $1 a day to feed a child a salad. Most schools
cannot afford that. The Contra Costa Food Bank cannot get donations of significant quantities of fresh
salad vegetables because they are highly perishable and by the time they are donated they are often
starting to spoil and unusable. No large local supply exists that they can afford. We will be providing
greatly reduced price salad vegetables and other produce to schools and the Food Bank.
We will grow produce on 14.8 acres of Central Contra Costa Sanitary District (CCCSD) buffer land,
using water, which is otherwise discharged into the Bay. With one more treatment, this water becomes
recycled water, certified by the State of California's to be safe for agriculture. Recycled water has been
used extensively in organic produce production in Monterey County and other locations for more than a
decade. Recycled water is high in nitrogen, providing free fertilizer. The Contra Costa Food Bank is less
than a mile from the farm and will pick up the produce and use existing systems to distribute it to schools
and clients, providing transportation.
Hence, we are deploying under - utilized resources to nearly eliminate four of the major costs of food
production: LAND, WATER, FERTILIZER, and TRANSPORTATION.
EDUCATE: One of the primary goals of the farm is to educate. Every aspect of science touches a farm
such as physics, soil science, hydrology, meteorology, and nutrition. We will be working with the State
Superintendent of Public Instruction, school science and nutrition teachers, community colleges,
members of the Workforce Development Board, the county Resource Conservation District and an expert
who created internships for NASA to integrate the farm into school curricula and create internships and
job training on the farm.
ENVIRONMENT: The environment will also benefit because we will be rebuilding barren soil and
planting crops that sequester carbon to clean the air. We also reduce two of the major types of carbon
pollution associated with food production: Fossil -fuel based fertilizer and transportation.
HIGH TECH LOW WATER USE GREENHOUSES: In addition to growing field crops, we will use a
state -of -the -art 6000+ square foot AgraTech Solar Light greenhouse for hydroponic production. Using
hydroponics we will grow produce in water, without soil, using mineral nutrient solutions. Hydroponics
uses approximately 2% of the water of conventional agriculture and provides as much as 40 times the
production. The environment can be controlled so production is not dependent upon nature. The product
is uniform and predictable. Food safety concerns are greatly diminished because of the controlled
environment. Production can be scheduled precisely to meet schedules of customers, because the
controlled environment provides a predictable growing timetable. With ever - increasing population and
unpredictable weather conditions due to global warming and drought, growing in controlled
environments will become more important in the future, as it is in the Middle East where climate and
population demand greenhouse production.
Eel
AgLantis: CoCo San Sustainable Farm
Greenhouses are just starting to be used to sequester carbon emissions and utilize this carbon to grow
algae, which is then turned into plastic or compost. This process can use recycled water and discussions
are underway for some large producers along the Northern Waterfront of Contra Costa County to
sequester carbon emission using greenhouses similar to the one that will be on our farm. This process
will require a workforce trained in greenhouse management, including water chemistry and other
sciences involved in production of algae or crops. Currently, one must travel to Arizona State University
to get much of this training. That's too far. Our greenhouse will be a training site for high tech
greenhouse production and management and we will work with local community colleges and JFK
University to augment our hands -on training with courses, certificates, and degrees.
SUSTAINABLE METHODS, BUT NOT ORGANIC CERTIFICATION: We will use sustainable
production methods (e.g., no fossil -fuel based fertilizers, no pesticides), but we will not attempt to obtain
organic certification because it is extremely costly to obtain and maintain and takes years to obtain.
(See http: / /www.ams. usda. gov /AMSv l .O /aetfile ?dDocName= STELPRDC5 ] 07710). By providing
produce grown with sustainable methods that are similar to those used for organic certification, but not
certified, we are able to provide an excellent, healthy product at a greatly reduced cost.
GREEN JOBS: The farm will be an incubator for green jobs. We will partner with other sustainable
businesses to showcase their products and teach aspects of jobs related to these industries. For instance,
Ecoloblue has offered to donate a machine that produces potable water from the atmosphere.
SCALABLE: Wastewater treatment facilities in Contra Costa and Alameda Counties discharge as much
as a trillion gallons of water per year into the Bay. These agencies also have a thousand of acres of
buffer land. Our business model is scalable and our farm once proven, can be replicated with other
wastewater agencies to utilize these precious resources; reduce nutritional poverty; and educate the
public about sustainable living practices.
SUMMARY: CoCo San Sustainable Farm (CoCo Farm) is a project of AgLantis. CoCo Farm is a
14.8 -acre urban farm using buffer land owned by the CCCSD which will grow produce using
sustainable, organic methods in both conventional and hydroponic greenhouse production to provide
for salads for schools and fresh produce for the Food Bank at a very low cost with a minimal carbon
footprint. And we will be providing hands -on science training and greenhouse management training, as
well as teaching sustainable agricultural production.
7
AgLantis: CoCo San Sustainable Farm
An tipple a day will not keep the doctor away. But a salad a day might!
1. Mission
Our mission is to deploy under - utilized natural resources to grow fresh produce using sustainable
methods, while nearly eliminating four of the major financial & carbon costs of produce production,
creating a scalable model that can be replicated worldwide and teaching sustainable living practices.
2. Company History and Overview
We learned that CCCSD discards approximately 40 million gallons of reclaimed water which is high in
nitrogen into Suisan Bay on a dry day. With one more treatment and relatively low cost, this water is
agricultural - grade. CCCSD has 91 acres of minimally used buffer land, 33 to the East of the plant and
58 to the North of the plant. It costs about a dollar per day to feed a child a salad and 35 cents to feed
that child pizza. Schools cannot afford to feed children the fresh produce that they need. We want to
help add salad to the menu for children in local schools, by selling to schools at greatly reduced prices.
The Contra Costa /Solano Food Bank directed by Larry Sly also has an unmet need to provide fresh
produce to their clients. The Food Bank is less than a mile away and has a complex distribution
network. We will work together to create Salads for Schools and the Food Bank.
Two members of the Contra Costa County Community College Board members and the President(s) of
one or two local community colleges and the President of JFK University are discussing working with
us to develop programs to link community college classes to the farm's hands -on education and
training programs. We hope that the Community Colleges will expand their relevant course offerings
and create high -tech agriculture programs and certificates that include high tech greenhouse
management and that JFKU will complete the local offerings with a 4 year degree program.
We are working with the Chair and members of the Contra Costa County Workforce Development
Board, members of the East Bay Leadership Council, and other business leaders to provide business -
to -farm acumen and support facilitate green jobs apprenticeships through the farm. We also will partner
with local related green businesses such as Ecoloblue, which creates potable water from the
atmosphere, and local farmers and the Mt. Diablo Beekeepers. The Contra Costa County Resource
Conservation District Board has voted to collaborate with us on grants and projects and discussions are
already underway.
Local city council members such as Concord's Edi Birsan are partnering with us to provide linkages
between the farm and nearby projects such as the Concord Naval Weapons Station, which has
considerable buffer land and will have recycled water. We have also talked to decision makers at three
other sanitary districts who are interested in partnering with us, once our CoCo Farm is proven.
We have created tremendous momentum in the community and have the strong support among elected
officials including State Superintendent of Public Instruction Tom Torlakson, who would like to see
this program replicated throughout the state. State Senator Mark DeSaulnier (likely to soon be
Congressman Mark De'Saulnier) is considering legislation to support the replication of our model.
Many other elected officials in state, county and city governments, as well as school board members,
and thousands of local citizens are supporters.
8
AgLantis: CoCo San Sustainable Farm
3. Market Research
A. Global and Local Need for Food. According to The Human Rights Council report to the United
Nations, food production needs to increase by 70% by 2050. Degradation of ecosystems due to lack of
organic farming practices, global warming & lack of rainfall are described as among the main risks that
the world will not produce enough
CHILD FOOD ESTIMATED PROGRAM ELIGIBILITY
INSECURITY RATE AMONG FOOD INSECURE CHILDREN
p dteerema
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a
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19.5 % gaaor.
d,ll�an
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maNyk m��my. 7nt.Hanpn pogram. nark m protect mMonsof dddmm Fan hunpm. h�a Mm repnd dao rmeakx,nmany dddren n need of katlasaiabve
wpm wary k- ra�.al awls aueium lxoBmm. andabm anam.manm+yan dla,dy,k,nemF,dmw.nmm rows. maye+e MeW Caa Pmneaaew ae nke
�mralmaeol rhid and nseamty arms good Iwel, rtGUdnp Iris ahem of dlltimn rno ae rvaamc- cllpbb mr federd r.Md n:rti9un peupans hko kn n reb ocd
Fnx uhanl meals By pnM,9 abaul cHid hunpm at ri,!=W In'd, Alas U�m Nod bap m Wig p tti )^ kam avl serves paWle,s d�Ne vleeitlry
aaaapm. m ems rcaa famfim ar4 aradmn In <aed �a kad a.mnar.
fi
F E E QI N G riisit /esdYgamerlcaurp / nupthegap l ;r rnnre i0--b-
AMER CA W, reeding NRe+ica. Nl rghfs rRServM. •Due t�r�und�r,g, totals range f*orn 93 -1Pt%
food. By 2080, an additional
6,000,000 people are predicted to be
hungry. U.S. Secretary of Agriculture
Tom Vilsack stated (2014 at the San
Francisco Commonwealth Club) that
food production needs increase 70%
in the next 40 years, as much as the
increase in the last 200 years.
At a local county level, hunger and
nutritional poverty are on the rise
with food prices sky- rocketing.
Poverty among school children was
21 % in Contra Costa County in 2012.
The Contra Costa /Solano Food Bank
serves approximately 160,000 people
per month. Other charities feed many
more. Feeding America's 2012
statistics showed that 13.2% of
Contra Costa residents felt food
insecurity, which was 139,290
people. 50,760 children were food
insecure (19.5 %) and 54% were
eligible for federal nutrition programs
(below 185% of the federal poverty
level). They estimated that over $72
million more money was needed to
meet the county's food needs.
http: / /feedingamei-ica.or /g hLinger- in- america /hunger- studies /map- the- ineal-
gap.aspx ? &utm source = cultivation newsletter &utrn medium = email &utm campai n =f ey &utm
content= leadarticle
Food needs include not just calories but also food with the nutrients necessary not to suffer from
malnutrition. Food systems are needed that achieve three objectives, according to the Human Rights
Council. Food must be available, accessible & adequate. Available means enough food is produced.
Accessible means both physically and economically, including for vulnerable populations such as
children, elderly, & disabled. Adequate refers to the nutritional value of the food, food safety, & free of
adverse substances. We believe the doubling in global food demand in this century, challenges all
aspects of sustainability. These dramatically increasing needs must be met with decreasing and
unpredictable water supplies and unstable climate. And these needs must be met fostering sustainable
practices to reduce and even reverse environmental damage.
AgLantis: CoCo San Sustainable Farm
The local Food Bank does not receive adequate fresh
produce to meet the nutritional needs of its clients. Much
of what it does receive is shipped from the Central Valley
or further after it hasn't sold for several days. Hence, the
products that are highly perishable are no longer of a
quality that can be served to clients. Instead, the Food
Bank clients can regularly only get the "hard" produce that
survives, such as potatoes, carrots, apples, oranges, and
melon. The Food Bank needs lettuce, broccoli, tomatoes,
spinach, green beans, kale, zucchini, red, green, and hot
peppers, and summer squash and nutrient rich fresh herbs like basil, cilantro, and parsley to meet its
clients' nutritional needs.
B. Market for Organic Produce. The Packer's Guide which is due out in June is anticipated to show
organic fresh produce sales to have increased to $3.46 billion in 2013. This is up 21.5% from the $2.85
billion in 2012. The number of pounds sold as increased 21.6% from 996 million in 2012 to 1.21
billion in 2013. FreshLook research estimates that organic fresh produce in 2013 accounted for 6% of
total retail produce sales, up from 5.3% in 2012. http: / /www.thepacker.com /fruit -ve eta
www.packersproduceguide.com
Teens are showing an increased interest in eating organic,
with 39% buying organic, up 6% from two years ago.
http:// www .r)it)eriaffray.com /2col.ast)x ?id =178 &releaseid
= 1863548& title = Piper +Jaffray +Completes +26th +Semi -
Annu -
al+ "Taking +Stock +with +Teens" +Market +Research +Proj e
ct The increase in demand is expected to continue as
teens become young adults and establish their own house-
holds. http: / /www.thepacker.com /fruit -ve etg able -
enewsletter /Week In Review /Study- teens - buying- more - organic- 237315731.html This increasing in-
terest by younger generations, compared to older, in organic is also verified in a 2012 study by Jefferies
and AlixPartners, a global investment and business advisory firm. The study revealed that 58% of Mil -
lennials surveyed were willing to pay more for natural /organic products compared with only 43% of
Baby Boomers (approximately their parents' age). - See more at: http: / /www.thepacker.com /fruit-
vegetable- enewsletter /Week In Review /Study- teens - buying- more -organic-
23731573 1 .html #sthash.kxMrk9gb.dpuf and at
http:// www. alixpartners. com /en/MediaCenter /PressReleases /tabid /821 /articleType /ArticleView /articleI
d /258 /Rise -of- the - Millennials- and - Aging -of -the- Boomer - Generation -W ill- Mean - Trouble -in- Aisle -5-
for- Established- Food -Br ands - and - Traditional- Grocery- Stores.aspx #sthash.I l s6Bclh.IrldZoay.dpbs
C. Solution to Market Problems. Organic clearly captures only a fraction of the total market largely
due to the higher cost of production and higher prices at market. Part of that cost is organic
certification, which is very important when buying from unknown growers. Our goal is to dramatically
bring down the cost of pesticide free, sustainably grown product by creating an urban farm right in the
center of a densely populated area deploying underutilized public resources (buffer land and recycled
water) and demonstrating low water use techniques and high -tech hydroponic greenhouse production.
The third National Climate Assessment has concluded that water will be the dominant issue for
California growers (http: / /www.thepacker.com/ fruit - vegetable- enewsletter /packer - daily /Researcher-
10
AgLantis: CoCo San Sustainable Farm
say- climate - change- 25820231 l.html) and www.globalchange.gov. We are demonstrating recycled
water use as a solution to a critical problem.
The public resources we will use are the buffer land of a public utility and the recycled water produced
by this water reclamation facility. Wastewater agencies across the county have buffer land and throw
away millions of gallons of treated wastewater every day (secondary or tertiary treatment). Contra
Costa and Alameda Counties alone discharge approximately a trillion gallons of reclaimed water into
the Bay every year. And this water is discharged during rainy days and drought. This water is high in
nitrogen which may be detrimental to the Bay but is fabulous for agriculture when treated further to
recycled water quality (tertiary treatment). Hence turning the hose around and discharging the water
onto land brings positive environmental impact and can produce wonderful fresh produce without
using our increasing limited potable water supply. Using recycled water in urban areas redirects a
resource that may have a negative impact, such as causing algae bloom, where it is discharged. Adding
another level of treatment -- tertiary treatment — turns this treated water into a quality for healthy,
productive use, eliminating the need to use precious potable water, as well as the need for fossil -fuel
based fertilizers. Much of the certified organic produce grown in Monterey County during the past
decade has been grown in recycled water, which has been certified by the state of California as safe and
healthy for agricultural production. http://www.thepacker.com/ fruit - vegetable- news /Almond- growers-
look-to- recycled- water - for- survival-
259819691.html
Hydroponic (and aquaponic - with fish) greenhouse
production uses a tiny fraction (estimated at 2 %) of
the water used by conventional agriculture. Green-
house production controls the climate, thereby pro-
tecting against the vagaries of climate extremes and
drought. Conventional production can be damaged
by even a few days of harsh weather. For instance,
much of the lettuce crop in Salinas, Monterey and
San Benito counties was damaged by 3 days of ex-
treme heat in May 2014.
http:// www .piperiaffray.com /2col.asl2x ?id= 178 &re leaseid= 1863548 &title= Piper +Jaffray +Completes +2
6th +Sem i- Annual+ "Taking_+ Stock +with +Teens" +Market +Research +Project
The best way to produce a large, predictable large quantity of high quality produce with a reduced
carbon footprint, enhanced food safety, and greatly reduced harvest waste is to use high tech, high
volume greenhouse production in urban areas, using recycled water that is state certified for organic
agricultural use. This provides extremely high volumes of nutrient rich produce, easily accessible in
highly populated areas at low cost because the costs of water, fertilizer, and transportation are nearly
eliminated. Using public buffer lands eliminates another major cost of production. Most of the food
safety issues and costs are greatly reduced. Greenhouse growing can produce a predictable, large,
consistent supply of organic produce, free of the toxins from fossil fuel based fertilizers & pesticides.
Growing produce in urban areas, where the recycled water is located, reduces the carbon footprint of
transportation. Furthermore, greenhouse production nearly eliminates the post production waste of
conventional agriculture by growing produce locally, in a controlled climate, minimizing pests, and
reducing distance for distribution. The United Nations estimates as much as 40% of production is lost
due to problems in the field, storage, and distribution, etc.
AgLantis is leasing the land from CCCSD for $1.00 per year. CoCo Farm is to be developed on buffer
11
AgLantis: CoCo San Sustainable Farm
land of the sanitary district and will use recycled water from
CCCSD's existing recycled water system. The water used
would otherwise have been discharged into Suisan Bay.
Fossil fuel fertilizer will not be used because the recycled
water is high in nitrogen, providing free fertilizer. Organic
compost from donations and the farm will also be used. The
Food Bank is less than a mile away from the farm and will
provide transportation from farm to schools. Because the
produce will be grown right in the heart of the urban area,
transportation distance is dramatically reduced. On this farm
four of the major costs of food production are all but
eliminated: land, water, fertilizer, and transportation.
Furthermore, farm -to -table has a very low carbon footprint,
saving carbon costs and money. Production can be planned
and the schedule controlled and predictable. Urban sanitary
districts across the country and world have unused buffer
land and throw away recycled water. We will provide a
well- documented model for utilizing these otherwise wasted
resources. CoCo Farm will provide a replicable model for
sanitary districts to follow.
Greenhouses are just starting to be used to sequester carbon
emissions and utilize this carbon to grow algae, which is
then turned into plastic or compost. This process can use
recycled water and discussions are underway for some large
producers along the Northern Waterfront of Contra Costa
County to sequester carbon emission using greenhouses similar to the one that will be on our farm.
This process will require a workforce trained in greenhouse management, including water chemistry
and other sciences involved in production of algae or crops. Currently, one must travel to Arizona State
University to get much of this training. That's too far. Our greenhouse will be a training site for high
tech greenhouse production and management and we will work with local community colleges and JFK
University to augment our hands on training with courses, certificates, and degrees. This farm will
improve public health while educating the public and protecting the environment.
4. Products and Services
CoCo Farm will grow produce, herbs, potted plants and seedlings using sustainable organic methods,
although we will not seek costly organic certification at this time. Our produce will include citrus
fruits and vegetables such as lettuce and other leafy greens, tomatoes, red peppers, green onions and
highly perishable vegetables which do not travel well, providing an advantage to growing these locally.
A consistent, predictable high quality supply of these vegetables are desired by local schools for menu
planning. Farm - related services also will be offered to support the non -profit efforts.
We will also sell advertising on our farm and website to fund our products. We believe green
businesses such as solar businesses and more unique businesses like www.Ecoloblue.com, which
creates potable water from atmospheric water, will want to advertise and showcase their products on
the farm.
We will have special events on the farm for a fee. Parents and adults are always looking for a special
12
AgLantis: CoCo San Sustainable Farm
place to have a party. Our farm will not only be a site for special events, but we will provide teaching
and hands on farming experiences to make the party more unique. Once our Contra Costa County
Sustainable Living Center is built, we will be able to host more formal and larger events to bring in
revenue and enhance our ability to teach sustainable practices. Our vision is to become THE meeting
place for sustainable efforts around Contra Costa County. The Contra Costa County Food System
Alliance and Brentwood Area Land Trust has expressed interest in using our space according to co-
founder and organizer Kathryn Lyddan of Lafayette.
Our pro bono architects have envisioned a building that will inspire the community to change their
behavior to live more sustainable lives and make Contra Costa County's brand to be California's high
tech green county. Hence, they have developed this is grand vision, which should not be interpreted as
a real depiction of the building. The actual teaching center will be approved by CCCSD and the county.
The wings of this building in this vision would be covered with plants creating a green roof. We expect
the teaching building to run on renewable energy and demonstrate other renewable practices. We will
find one or many major donors who want to be recognized to construct a sustainable living center.
Every domain of science and engineering happens on a farm. Classes will be taught on the farm
focused on soil and water science, including hands on chemistry, physics, botany, biology and
engineering, as well as sustainable agricultural (AgroEcology) and backyard gardening practices,
including beekeeping, composting, soil and water conservation, low water use irrigation practices,
recycled water, integrated pest management and many other aspects of sustainable living. We will also
teach high tech greenhouse management, which includes skills involved in tracking water chemistry
and computerized management techniques. We will link with local schools, colleges and universities to
provide a site for their classes. Although many of these classes will be free, we may charge for special
educational events (with free entry to anyone who says they cannot afford to pay).
At the farm, we will also sell our logo products and some products made by others for a small fee at
special sales events a few times a year. We expect to sell crafts made by others and green products for
a commission. This will be a small percentage of our revenue.
13
AgLantis: CoCo San Sustainable Farm
5. Marketing and Sales
One local school district, the Mt. Diablo School District, feeds 3.75 million meals per year, all of which
contain produce, according to their food service director. The Contra Costa /Solano Food Bank feeds
approximately 160,000 people per month and wants to buy at least 100,000 pounds of produce from the
farm. In Contra Costa County alone, schools and local agencies such as Meals on Wheels and other
non - profits feed more than 50 million meals per year, all of which they would like to serve produce. I
have talked to two school food service directors who serve many millions of meals per year and both
are eager and interested in buying our produce. They said that if we can sell them a predictable supply
of high quality produce grown using organic methods and sell it to them at even a few percent savings,
they would be extremely interested.
The cost of fresh produce has increased 20% or more in recent months due to the drought. When the
greenhouse is up and running, we should be able to produce a reliable stream of high quality produce at
reduced prices. The predictability of the production allows buyers to plan in advance and for us to
grow what is ordered.
6. Financial Plan
A. Revenue Sources. Revenue will be generated from the following sources:
1) Subscription fees from Community Supported Agriculture subscriptions (CSAs);
2) Direct sales of herbs;
3) Direct sales to the Contra Costa /Solano Food Bank;
4) Direct sales to schools and non - profits;
5) Wholesale direct sales to businesses;
6) Direct sale of potted plants and seedlings;
7) Special Events Rental of parts of the farm such as the barn (e.g., for birthday parties);
8) Percentage of Direct sales of products made by others (e.g., crafts, solar panels);
9) Advertising fees from businesses who want to showcase their services and products on
the farm or on our website;
10) Advertising fees on website filled with tips and videos that are fun and interesting about
the farm;
11) Space Rental for green businesses to showcase their products;
12) Crowd - funding for specific capital improvements such as greenhouse equipment;
13) Grants from Foundations and Government;
14) Individual Donations (cash, stock, vehicles, bequests);
15) Major Gifts from Businesses (e.g, Solar Light greenhouse from AgraTech);
16) In -Kind Donations.
B. Market Segmentation. CoCo Farm has identified 5 major customer groups:
1) Food Bank, Schools and other institutional buyers,
2) Individual CSA members;
3) Business CSA buyers of produce;
4) Green businesses or groups fostering sustainability who want to advertise, and
5) Individuals, groups, and businesses who want to rent some part of our facilities for
activities.
14
AgLantis: CoCo San Sustainable Farm
Local schools serve millions of meals per year with produce and young people are increasingly
interested in eating organic produce and other organic products. There is an increasing demand for
organic produce among teens and Millenials. Teen have increased choosing organic from 33% to 39%
in the last two years, so we believe schools can work with nutrition teachers such as Cindy Gershen at
Mt. Diablo High School to increase their healthy eating habits.
http:// www .piperiaffray.com /2col.aspx ?id= 178 &releaseid = 1863548 &title = Piper +Jaffray +Completes +2
6th +Senn i- Annual + %22Taking+ Stock +with +Teens %22 +Market +Research +Project
According to the Packer, this trend is likely to continue as teens become adults and start their own
households. http: / /www.thepacker.com/ fruit - vegetable - enewsletter /Week In Review /Study- teens-
buying -more - organic - 23731573 Lhtml.
Local organic farmers markets are attractive to customers, but prices are prohibitive for many families.
Our produce will be organically grown, but not organically certified, which provides a huge cost
savings to consumer. We will also have a competitive edge because the land, water, fertilizer, and
transportation costs are low.
Our location is highly visible, located close to one of the busiest intersections in the county with the
farm lying along half a mile of major Hwy 4 and
adjacent to the interchange with Hwy 680.
Hence, the will be visible from Hwy 4, which will
boost awareness and gives us free advertising.
There is easy access to freeway exit and entrance,
which will boost produce sales and makes us an
ideal location for advertising and events.
We will have a membership only CSA
(Community Supported Agriculture) program.
Volunteers and participants in classes and other
programs at the farm are also expected to join our
CSA and
buy our
produce.
We expect
to derive CSA members from employees in local businesses
such as CCCSD, County Quarry, Tesoro and Lowes and local
businesses. We also will derive new members from the
weekend Concord Flea Market which is less than a mile away.
There are many families living nearby in the Blum Road area
and the trailer park and local residents in Martinez, Concord,
and Pacheco will become members and subscribe to a CSA.
Furthermore, the farm is on the main artery to Pittsburg, Bay Point, and Antioch in East Contra Costa
County. This visibility should bring new CSA members. Individuals will pick up their CSAs at the
farm or some centralized locations at specified times. Businesses will be sought who want to contract
for large CSAs buying our produce on a regular basis such as restaurants, hospitals, chef schools, etc.
We will deliver to businesses.
We will have land set aside for community classes, including raised beds for demonstration and
accessibility. Our classes will be taught by Farm Manager and Master Gardener Bethallyn Black as
well as highly trained volunteers, possibly other Master Gardeners. Other experts who will volunteer
15
AgLantis: CoCo San Sustainable Farm
to teach their expertise will draw customers to our farm, as well. Basic classes will be free. Specialty
classes will be taught requesting a small donation, but free to anyone who cannot afford the donation.
Classes such as horticulture; integrated pest management; soils science; water science including
recycled water; low water landscape design, irrigation; high and low tunnel greenhouse construction
and operation will be provided to individuals and groups. Businesses who have green jobs will be
allowed to come teach classes pertaining to their business using the farm for a fee, as long as their
business' mission is consistent with our mission.
We will rent advertising space on our website, brochures, and signage within the farm to businesses,
institutions, and individuals with a mission consistent with the farm's mission.
Individuals, groups, and businesses will be allowed to rent areas of our farm for parties and events for
a fee. These parties will include teaching related to the farm's mission. Special sales events a few times
a year for items such as seedlings and young trees in the spring, also will bring in revenue.
C. Competition. The buying patterns of customers are typically based on these variables:
Price
Availability
Quality
Sustainable vs. non Sustainable Growing Methods
Freshness due to distance between farm and table
Ability to deliver consistent product
Seasonality
Convenience
Competition comes from farm stands and produce markets and large grocery stores within 10 miles of
our farm, such as the Concord Produce Market, Costco and Safeway. Our competitors sell a mix of
certified organic and non - organic produce. All of our produce will be organically grown, but it will not
be certified for many years, if we ever pay the fees for such certification. Certification adds
considerable cost and administration and will not improve our product, so we may not ever seek
certification. Our goal is to provide produce grown using organic practices at the lowest possible cost,
whether to the Food Bank, schools, or the public. Our buyers can come to our farm and see our
practices first hand to assure themselves that we are using organic sustainable practices. And most of
our customers will come to our farm because that is where they will pick up their CSAs and where they
will take classes and volunteer. Our reputation and the freshness and quality of our products will
replace the need for expensive ongoing certification, we believe.
Our produce will be among the freshest because we have virtually eliminated transportation. We will be
priced at the low end of the market. Our greenhouses will increase our ability to deliver consistently
and for a much longer growing season than our competitors. They are unlikely to have locally grown
produce in the winter months and we will.
Most of our competitors are located where there is much distance to travel on heavily trafficked streets
to shop. We are located along a freeway, about 3 minutes from the Solano exit and entrance, so we are
more convenient to access for many customers. We will have plenty of parking and customers will be
able to call or email their orders and have us pack an individual box of produce where they can just
drive in and pick it up, or pick it up at another local CSA distribution site such as a local home.
L
AgLantis: CoCo San Sustainable Farm
D. Competitive Edge.
1. Costs of Production. Four of the main costs of production are greatly reduced: land, water,
fertilizer and transportation. The two other main costs are capital and labor. Furthermore, some
of the capital costs will be reduced because of monetary and in -kind d. For instance, local
farmers have offered to donate their time and come to the farm with their tractors, if we pay for
gas. Furthermore, the cost of labor will be mitigated by a large volunteer component carrying
out some of the labor. Costs for labor, seed, infrastructure, and marketing will be paid for with
revenues.
2. Hydroponic Production
Hydroponic Production can produce at 400% of conventional production. One acre of
hydroponic production of lettuce can equal approximately 40 acres of field crops.
http: / /www.taproduce.com /consumer /sustainabiliiy_php
Hydroponic production is viable and increasing in the U.S. In 2003 U.S. greenhouse production
of tomatoes accounted for 30% of market. Today, four of the largest greenhouse growers
produce 67% of the tomato production in the U.S.
http: / /www.ers.usda.gov /media /307169 /err2b 1 .pol'
MIT's Mission 2014: Feeding the World lists the following advantages of hydroponic
production.
"Advantages
• No soil is needed so there is no crop limitation due to soil type, eroded or diseased soils.
• Water can be recycled so it is advantageous in drought prone areas or deserts.
• No nutrition waste due to water run -off which in turn can lead to eutrophication.
• Higher and stable yields because the plants does not expend too much energy in finding nutrients in the
soil thus this energy is invested into the growth of the plant. Also in soil plants compete with weed for
food and water but in hydroponics the adequate nutrients are delivered straight to the roots."
• Less frequent occurrence of diseases because of the absence of soil which a bacteria growth media
• Due to container mobility hydroponics enables the farmer to grow crops near the area of use thus reducing
transportation costs.
• Labor intensive work such as tilling, cultivating, fumigation, and watering is not required for hydropon-
ic farming (Jones, 1997). And as for advanced hydroponics the system is usually automated using pumps
or even computers, labor costs will decrease dramatically.
• The simplified hydroponic technique is easy to understand and does not require any prior knowledge to
achieve concrete results.
Most importantly, hydroponic greenhouses are not susceptible to drought. A recent University
of California, Davis study found that drought has already caused $1.67 billion impact directly
and indirectly on the economy of the Central Valley of CA in 2014.
https:Hwatershed.ucdavis.cdu /tiles /bibIio /Preliminary 2014 drought economic impacts -
05192014.pdf
3. Environmental Benefits to the Community - Food production generally has very high
17
AgLantis: CoCo San Sustainable Farm
carbon foot print in that water is pumped from afar using some sort of fuel to move it, fertilizer
is made from petroleum products, and transportation using petroleum products brings produce
large distances where wholesalers pick it up and then transport it again to their stores. By
growing food in the middle of an urban area, using public buffer land and reclaimed water that
is produced at the site and which is high in nitrogen, and by using the local Food Banks existing
distribution processes and CSAs, the carbon footprint of this food is vastly reduced.
Environmentally conscious community members will want to support us and see our model
replicated.
According to the USDA, (http: / /www.ers.usda.gov /data - products /chart-
ag llery /detaiLaspx ?chartld= 40151 &ref = collection &embed =True) agriculture accounted for
approximately 8% of greenhouse gas U.S. greenhouse gas emissions by economic sector, 2011
emission in 2011, while providing only Total U.S. emissions in 2011= 6,702 minion
1% of the Gross Domestic Production. metric tons of carbon- dioxide equivalent
Furthermore, transportation accounted
for about 28% of the total greenhouse Industry
gases and some of this transportation is Transportation
due to shipping agricultural products. 2a°%
The use of fossil fuel for fertilizer also
Commercial and
contributes to carbon emissions.
Growing food locally using recycled
agricultural grade water that is high in
nitrogen reduces the carbon footprint
of produce production greatly.
residential
33%
Agriculture
Electricity
Growing produce in greenhouses with
recycled water, allows a tremendous Source: USDA, Economic Research Service using data from Environmental Protection
y Agency, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990 -2011.
amount of local production, further
reducing the greenhouse gases due to transportation of water and food.
4. Health Benefits to the Community - There has been a national drought and food prices are
soaring. Produce prices have gone up over 20% in the last few months, on average. The
economic crisis of the last few years has driven a large percentage of the population into food
insecurity and particularly nutritional poverty, as fresh vegetables offer fewer calories per dollar
than junk food. Produce is not only one of the most expensive items per calorie, but also one of
the most perishable. Due to the inability to get fresh produce those most in need often do
without the nutrition they need to be healthy. The consequences are a lifetime of medical
problems. By growing the food locally at very low cost, we can help those in need to get the
nutrients necessary for healthy strong bodies. They can either get these at no cost from the
Food Bank or low cost at our farm stand. The revenues from the CSA program will help
subsidize discounts for the Salads4Schools and Food Bank programs, giving customers an
incentive to buy CSAs from us.
E. Risk/Reward Ratio. The primary risk is the cost of the infrastructure, including the cost of the
greenhouses. One of the five largest greenhouse manufacturers in the country has donated a 42' X 144'
X 25' (height) Solar Light greenhouse, which retails with taxes at about $90,000 (see
www.AgraTech.com). The cost of constructing this greenhouse is about $40,000 and the cost of the
equipment inside is about $90,000. Other infrastructure is needed on the CoCo Farm, including
fencing, roads, barn, refrigeration unit, and teaching building. We have expert volunteers who will help
with construction. The cost of these will vary depending on the time and materials donated. Three
18
AgLantis: CoCo San Sustainable Farm
architects have already donated their time for the Master Plan and building vision. They will probably
continue to donate their time for much of the design.
F. Challenges.
1. Hydroponic Crops. Setting up the hydroponic nutrient film system will have initial high
capital investment cost. Greenhouse production also requires expertise for the engineering and
use. MIT's Mission 2014: Feeding the World lists the following disadvantages of hydroponic
production.
"Disadvantages
• Although the use of advanced hydroponics is cheaper in the long run, its initial startup cost is rather high
as it is expensive to procure the equipment required.
• The hydroponic conditions (presence of fertilizer and high Nutrient Film Technique
humidity) create an environment that stimulates salmonella
FT
r'
growth. ;r�
• Requires the use of uncontaminated water (salmonella -free
water)"
In our climate, some heating will be required in the win-
ter and cooling may be required in the summer, which
adds additional cost and makes it difficult to cover costs
year- round.
http: / /www.ers.usda.gov /media /307169/err2b I .pdf
V
ay
Air Pump
Reservoir
Fortunately, we have a greenhouse that has been donated,
saving us approximately $90,000 of startup costs. We will be using propane gas for heating and
cooling, until we have a solar donation and we retrofit for solar.
We will use gloves and other safety procedures to reduce the likelihood of salmonella introduc-
tion and regularly test our produce to be sure it is safe.
Our tertiary grade (cleaned with 3 processes) recycled water is constantly tested by CCCSD and
will be uncontaminated. It is permitted by the Regional Water Quality Control Board and the
California Department of Health and approved for agriculture use.
2. Trained Greenhouse Staff. At present, few universities teach hydroponic and aquaponic
greenhouse management and hence few employees are available in this industry. We are
functionally creating a new industry and hence must train the workforce. These interns will be
receiving training, so their salaries will be lower than those already trained, providing a steady
stream of potential employees. The farm will be educational facility, as well as a green jobs
incubator. Every aspect of science touches a farm and the public will be provided many types
of learning opportunities. A major focus will be education about protecting the environment,
teaching recycled water use, integrated pest management, soils conservation, low water use
growing, etc. We hope that the farm will be integrated into the curriculum of local schools and
will provide a living science laboratory. The greenhouse will use propane gas to provide heat.
Eventually, we hope the farm will only use renewables and will be off the grid and using solar
and wind and other green technologies generated at the farm.
19
AgLantis: CoCo San Sustainable Farm
Many facets of the green economy will be demonstrated on the farm and it will be a green jobs
incubator. Feeding the planet demands dramatic increases 1
in businesses in all aspects of a Sustainable Food Web
including: 1) food production, storage & distribution -
(including urban agriculture); 2) conservation of natural
resources; 3) water and soils engineering; 4) agribusiness
and marketing and even 5) agritourism. The field of
AgroEcology combines all of these careers. AgroEcology is
the application of ecology to the design and management of
sustainable food web systems.
3. Field Crops. Hilary Philips from the NRCD/USDA has visited the farm and confirmed our
belief that it will be necessary to spend the first couple of years building up the organic matter
in our soil and trying to increase soil uniformity. The soil on this farm has been trucked in from
construction projects all over the county and has a wide mix of soil types — sandy, full of iron,
depleted of organic matter, rich loam. The soil is of poor quality with most of the top soil
having been removed prior to our taking possession of the land. We will be continuously
amending our soil to turn it into rich farmland. The soil has been compacted with heavy
equipment, so we will be planting deep- rooted green manure crops such as radishes. As our soil
develops, we will be able to deliver consistently high quality produce from field crops.
The soil has been tested in a grid, but there is always a risk that the soil has some unknown
contamination at the time that we obtain it from CCCSD, so we will continue to test.
Another weakness will be concerns about the safety of our food. We must protect against human
and animal intrusion. Homeless encampments nearby present an ongoing threat and we must
work closely with the county sheriff to mitigate this problem. Although this area is zoned heavy
industrial, turkeys are still in the area and deer and other animals that like produce live nearby.
These problems will be mitigated by securing the property is secure with high fences and gates
and animal traps. We will probably use high and low tunnels to protect our most vulnerable
crops from turkeys and other birds and to demonstrate this methodology for educational
purposes. We must also follow all known best practices for food safety. It will take time to
develop our reputation for high quality, safe, great tasting, produce grown using sustainable
organic methods.
20
AgLantis: CoCo San Sustainable Farm
G. Competition for Advertising and Rental
There is always a great deal of competition for advertising dollars. However, there is no other urban
sustainable non - profit teaching farm of this size within 10 miles of this farm. This is in a densely
populated region and we believe many members of the local community will come for classes and to
volunteer and to buy our CSAs. The humanitarian goals of this farm will bring emotional investment
in the farm and the community involvement will bring interest in advertising.
There are many other facilities that can be rented for events, but not locally on farms. These facilities
will be unique and we will offer education along with our events. We believe parents may want to have
a child's birthday party at the farm with some farming lessons and other activities related to the farm.
Parents and others will be attracted to this option because it will be unique in supporting our programs
for salads- for - schools and the Food Bank and sustainable living.
H. Pricing Model.
The pricing model is to price CSAs using local farmer's market pricing and the Pacific Coast Farmer's
Market and local CSA prices for organic produce as a guideline. We will not be certified organic, so we
will price slightly below the organic benchmarks. We use 100 pounds as the base unit for large quantity
sales and CSAs will be roughly 25 pounds. The
Food Bank can only pay about $0.10 to $0.12 per
pound. Given that the Food Bank will be washing
our produce for us, we will price this at the low end
at about $0.10 per pound. Larry Sly predicts that
the Food Bank will want to buy 100,000 pounds per
year, as available. Schools and non - profits will not
I: Industry Analysis.
receive as deep a discount as the Food Bank, but
will receive a discount compared to wholesale. We
estimate we will charge them $.70 per pound. We
estimate that wholesalers, businesses and CSAs and
will pay an average of $1.00 per pound, changing
as necessary (See Products in Appendix A).
Demand for organic produce have been increasing and have remained high even during the recession as
more people eat at home. As mentioned above, young people represent a burgeoning group of organic
buyers. Buyers are increasingly interested in buying locally to find fresher, more nutritious produce,
with a lower carbon footprint for production. National droughts have reduced supply and driven up
prices of fresh produce. Our produce will be priced on the low end of the competition. The
Hydroponic Crop Farming industry is in the growth stage of its life cycle because of its increasing
number of participants, high industry value added (IVA) and rapid growth of customer acceptance.
Industry value -added is expected to grow at an average annual rate of 2.8% from 2008 to 2018, which
is faster than the national GDP growth rate of 2.1 % during the same time period.
http: / /www.ibisworld.com /industr /hydroponic- crop- fari-ning html
J. Marketing Strategy.
We will focus on free publicity. The farm is in a highly visible location lying along Hwy 4 near the
21
AgLantis: CoCo San Sustainable Farm
intersection with Hwy 680. We will put signage and directions along Hwy 4 to guide people to our
farm. Farm operations will be during daylight hours following all noise ordinances. Public access for
education and events will be primarily from 10 a.m. to 4 p.m. weekdays and 10 a.m. to dusk weekends.
Once facilities are available, we may have some evening events. We will be highly visible from Hwy 4
and have already received considerable press coverage and will seek more stories in local papers. We
will create a strong online presence with a website and social media. We will list ourselves on websites
that help people find farms such as www.elp.com and www.about.com,
http://localfoods.about.com/od/csas/tp/bayareacsa.htm.
We have extensive experience using social media. We already have a presence on Facebook and will
build other social media venues such as Twitter and Google +. We will create farm videos and upload
these to YouTube to bring traffic to our website. We will also be using Twitter to send out blasts about
our daily harvest and classes and events and other platforms such as S1ideShare and Tumbler to
increase our visibility.
Our educational programs will provide us indirect marketing for our products and services. Our classes
will bring in buyers, as will our volunteering opportunities. Our biggest problem may be supply, not
demand.
CCCSD has a quarterly publication called the Pipeline which is sent to their approximately 150,000
rate payers. If the Pipeline Communication Manager and Board so desire, we will provide information
for this publication. We will register the farm in directories created by major online industry leaders in
related fields. We will go to civic organizations and give talks and disseminate information about the
farm. We will ask local political leaders to put
stories about the farm in their publications to
constituents. We are already giving talks to local
business groups and will continue to do this.
Attending trade shows and environmental meetings
will bring us more attention.
K. Sales Strategy.
CoCo Farm's sales strategy will focus on identifying
volunteers and those interested in taking classes and
turn these individuals into paying customers. We
will focus on retaining customers by providing
excellent produce and other valued services such as classes that are relevant to the customers. We will
sell monthly subscriptions to CSAs to bring repeat business. We will sell memberships that provide
CSAs, discounts and other benefits to keep our customers loyal to us.
The Food Bank has already informed us that they want to buy at least 100,000 pounds of fresh produce
per year. We will work with them to survey their clients to find out what produce they are most likely
to eat and then try to grow those crops.
The Mount Diablo Unified School District Food Service Director, Anna Fisher has written that they
serve 3.75 million meals per year and that any reduction in cost that we can provide them would be
welcome. We will be working closely with this school district to provide reduced cost produce. We do
not know yet what problems we will encounter meeting the requirements of a school district, but we
can work these details out as we amend our soil and build our greenhouse.
22
AgLantis: CoCo San Sustainable Farm
If we have any more produce to sell, we will approach other non - profits organizations that feed people
such as Meals on Wheels and the Monument Crisis Center and churches and businesses to see if they
would like to buy CSAs of varying sizes or buy bulk. We will also sell large CSAs wholesale to
businesses either on a subscription basis or as- needed ordered and delivered.
8. First Full Three Years of Operations (2015, 2016, 2017)
We need to first build our physical infrastructure including installing gravel parking lots and roads
across the property and increasing fencing and gating around the acres we plant with crops to provide
security from humans and animals. Other immediate needs include soil amendments 15 tons per acre
for 10 acres (ideally 250 tons of compost or wood chips or other soil amendment); a barn with
equipment storage space, and refrigeration for temporary cold storage. Capital improvements will be as
much as $130,000 the first year, about $90,000 of which has already been promised to be donated. We
hope some of the remaining $40,000 will be donations of cash, material, and in -kind donation of labor.
Operations costs will be about $100,000 in the first year. Both capital improvements and operations
costs will be limited to the cash on hand. We will not go into debt or take out loans.
To finance this $230,000 for infrastructure and operations the farm needs to raise money in donations,
grants, crowd - funding, sales of potted plants and herbs and possibly some produce, rental, and fees for
service, in addition to in -kind donations such as those from farmers who have volunteered to bring
their tractors and disk our field and architects, who have volunteered design services and have already
23
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23
AgLantis: CoCo San Sustainable Farm
developed a Master Plan for the farm. We are seeking major corporate sponsors who would like to
partner with us to benefit the community. Tesoro has already stepped forward and expressed an interest
in helping us ship the greenhouse back from Texas, where it is being stored. We are also seeking
private donors large and small, who want to support this project. Local small businesses will be
contacted to establish partnerships and seek discounts, donations, and other funding. We are also
seeking entities who would like to advertise with us. We will be seeking Federal and State and private
foundation grants. We hope many community groups will partner with us and provide different types of
support including volunteers to learn and reduce our costs of employment. Numerous revenue streams
will bring in funds. More details of the objectives that we hope to meet, are listed below. These are not
assessment metrics for compliance with the lease. These are goals.
A. Objectives for 1St Full Operational Year (2015):
1. Continuously update the CoCo San Sustainable Farm Business Plan
2. Obtain the needed state and county permissions and permits;
3. Secure donation of as much fencing and other infrastructure and structures as possible;
4. Fund -raise $80,000 from grants, businesses, organizations, and individual donors;
5. Obtain about $100,000 from the sale of farm products, advertising, and services;
6. Enrich the diverse soil with a green manure crop, compost and other organic amendments;
7. Begin to build the physical infrastructure needed for the farm, especially irrigation system,
fencing, secure gating, gravel roads and parking lot, high tunnel greenhouses, raised beds
for handicap access; picnic tables and chairs, trellises for shade. The AgraTech greenhouse
and other above ground improvements will be fenced as soon as it is starting to be built.
8. Buy some of the equipment needed for greenhouse;
9. Create 5 teaching garden beds, which will be raised or otherwise handicap accessible;
10. Plant at least 5 -acre cover crop;
11. Create 3 environmental, science or green jobs classes using the farm as a living science
laboratory and educate the public on the farm;
12. Engage 200 members of the community in gardening, classes, donating, and /or
volunteering;
13. Collaborate with local beekeepers and establish bees on the farm;
14. Raise public awareness about the farm so that 5000 citizens in Contra Costa County are
aware of the farm and some of its educational goals and programs, teaching them about
recycled water and protecting the environment using the press, social media, and email
24
AgLantis: CoCo San Sustainable Farm
marketing by press coverage, internet marketing, social media marketing, classes, and word
of mouth;
15. Involve community leaders in the farm;
16. Involve 10 community organizations in the farm;
17. Involve students and teachers from local communities in the farm;
18. Involve 20 young adults in green jobs experiences or some job training related to the farm;
19. Disseminate information about the model of the farm to at least 3 other sanitary districts;
20. Have key staff and volunteers certified as Site Supervisors for Recycled Water Use Permit;
21. Have key staff and volunteers certified for CPR;
22. Develop a Food Safety Practices Plan for the farm.
23. Develop a Physical Safety and Emergency Plan;
24. Have an excellent safety record with only minor injuries (cuts and bruises);
25. Have an excellent complaints record with only minor complaints;
26. Develop a website with educational component (see example http://www.taproduce.com/
Run a frugal, fiscally transparent operation with excellent accounting practices;
28. Have no deficit spending;
29. Track Assessment Outcomes;
30. Complete Annual Report by April 1, 2016;
31. Update the Business Plan;
32. Fulfill all performance requirements of the lease.
B. Objectives for 2nd Full Operational Year (2016):
1. Continuously update the CoCo San Sustainable Farm Business Plan;
2. Continue to build infrastructure and make capital improvements;
3. Fund -raise $100,000 from grants, businesses, organizations, and individual donors;
4. Obtain about $200,000 from the sale of farm products, advertising, and services;
5. Enrich and rebuild the soil with a green manure crop, compost and other organic
amendments;
6. Obtain more of the equipment needed;
7. Start planting citrus trees along West edge of property to create a hedge as wind break;
25
AgLantis: CoCo San Sustainable Farm
8. Create 5 more teaching garden beds, which will be raised or otherwise handicap accessible;
9. Plant a crop on at least 5 acres;
10. Create 1 new environmental, science or green jobs classes using the farm as a living science
laboratory and educate the public on the farm;
11. Engage 300 members of the community in gardening, classes, donating, and /or
volunteering;
12. Continue to collaborate with local bee - keepers and keep bees on the farm;
13. Continue to raise public awareness about the farm so that 10,000 citizens in Contra Costa
County area are aware of the farm and some of its educational goals and programs, teaching
them about recycled water and protecting the environment using the press, social media, and
email marketing by press coverage, internet marketing, social media marketing, classes, and
word of mouth;
14. Involve community leaders in the farm;
15. Involve 5 new community organizations in the farm;
16. Involve students and teachers from local communities in the farm;
17. Involve 30 young adults in green jobs experiences or some job training related to the farm;
18. Disseminate model and update status of the farm to other sanitary districts;
19. Review Food Safety Plan;
20. Review Physical Safety and Emergency Plan;
21. Have an excellent safety record with only minor injuries (cuts and bruises);
22. Have an excellent complaints record with only minor complaints;
23. Continuously add new material to website;
24. Run a frugal, fiscally transparent operation with excellent accounting practices;
25. Have no deficit spending;
26. Track Assessment Outcomes;
27. Complete Annual Report by April 1, 2017;
28. Update the Business Plan;
29. Fulfill all performance requirements of the lease.
C. Objectives for 3rd Full Operational Year (2017):
1. Continuously update the CoCo San Sustainable Farm Business Plan
2. Obtain any needed permits;
3. Continue to build infrastructure and structures and fence above ground improvements;
4. Fund -raise $100,000 from grants, businesses, organizations, and individual donors;
5. Obtain about $285,000 from sales of farm products, advertising, and services;
6. Enrich and rebuild the soil with a green manure crop, compost and other organic
amendments;
26
7.
8.
9.
AgLantis: CoCo San Sustainable Farm
Deliver produce to Food Bank and /or schools or another market;
Buy more of the capital equipment needed;
Plant more citrus trees;
10. Create 5 more handicap accessible teaching
beds, demonstrating different accessible
solutions such as the Lazy Susan planter for
wheel chair gardeners (on right);
11. Plant a cover crop;
12. Create 1 new environmental, science or green
13
14
jobs classes using the farm as a living science
laboratory and educate the public on the farm;
Engage 400 members of the community in
gardening, classes, donating, and /or volunteering;
Continue to collaborate with local bee - keepers, who are self - professionals, to safely foster
bees and other beneficial insects on the farm, while isolating these away from the public;
15. Continue to raise public awareness about the farm so that 15,000 citizens in Contra Costa
County area are aware of the farm and some of its educational goals and programs, teaching
them about recycled water and protecting the environment using the press, social media, and
email marketing by press coverage, internet marketing, social media marketing, classes, and
word of mouth;
16. Involve community leaders in the farm;
17. Involve 5 new community organizations in the farm;
18. Involve students and teachers from local communities in the farm;
19. Involve 40 young adults in green jobs experiences or some job training related to the farm;
20. Disseminate model and update status of the farm to other sanitary districts;
21. Review Food Safety Plan;
22. Review Safety and Emergency Plan;
23. Have an excellent safety record with only minor injuries (cuts and bruises);
24. Have an excellent complaints record with only minor complaints;
25. Continuously add new material to website;
26. Run a frugal, fiscally transparent operation with excellent accounting practices;
27. Have no deficit spending;
28. Track Assessment Outcomes;
29. Update the Business Plan;
30. Complete Annual Report by April 1, 2018;
31. Fulfill all performance requirements of the lease.
27
AgLantis: CoCo San Sustainable Farm
9. Goals for Next 5 Years
Our goal is to involve thousands of members of the community in the farm and to have this farm fully
operational and financially self - sustaining within five years for the operations. We will need additional
funds for capital improvements. Within five years, we hope to have proved our model. We also plan to
work with other sanitary districts and others with land adjacent to recycled water lines, consulting to
design and create farms on their buffer land, using their otherwise wasted reclaimed water.
10. Financial Data
A. Projection Assumptions
1. Cost of Production. Year 1 is conservatively set at 53.41% based on Dun and Bradstreet for
Agricultural Production cost of sales and materials. The cost of goods produced includes sala-
ries, seed, equipment, and all the costs associated with production.
2. Decrease in Costs. The decrease in Cost of Production in subsequent years to 45% is based
this farm's reduced cost due to free land, water, fertilizer and efficiencies due to experience. If
CCCSD raises the rent or charges for water, the estimated savings will be eliminated.
3. The 1st 2 Years will focus on enriching soil
and will yield few field crops. Once the
AgraTech greenhouse is built, we will be pro-
ducing potted plants and seedlings for sale and
a few crops such as basil. Revenues will come
from sales events, donations, advertising, green
businesses renting space, events, grants and
donations. We will be engaging in conventional
greenhouse growing until we raise the approx-
imately $90,000 for equipment for hydropon-
ics.
4. Hydroponics. By Year 3, we plan to hire an expert in hydroponic production, purchased
some of the equipment needed for hydroponics, and the greenhouse will be producing some hy-
droponics vegetables. The sale of hydroponic vegetables will cause a big leap in our sales fig-
ures. Large increase in salary costs for this expert will keep the cost of goods relatively stable.
5. Education and Internship Costs. Teaching and internships expenses are not related to Rev-
enues or the Cost of Production of farm products. Salaries, taxes and expenses related to these
salaries are not included in the Cost of Production are the salaries for teaching and internship
staff. Hence these salary costs are broken out into a separate expense category that does not
yield income. The teaching building is included in capital improvements in buildings, although
only a small percentage of this cost is related to the products sold on the farm. Instead, this cap-
ital improvement cost is an expense which is primarily related to fulfilling AgLantis' and
CCCSD's educational missions (See Appendix A: Products estimate that 5% of Products in-
come from farm is related to event rentals.)
28
AgLantis: CoCo San Sustainable Farm
6. Worldwide Demand for Produce. Other Important assumptions for the sales projections in-
clude that worldwide demand for agricultural products is growing. USDA Agricultural Projec-
tions to 2023, released in February 2014, provide long run projections for the farm sector for the
next 10 years. http: / /www.ers.usda. og v/topics/ farm- economy/agriculturaI- baseline-
projections.aspx and http: / /www.ers.usda.gov /amber- waves / 2013- august/developing- countries-
dominate- world- demand - for - agricultural- products.aspx #.0 1 IU 1 dEU9oM
7. Price of Produce. Our produce price to the Food Bank will remain relatively stable and a
small fraction of what would be charged to wholesale or retail clients. Our prices to schools and
other non - profits that feed people who are vulnerable will be subsidized compared to wholesale.
Although we will keep our prices at the low end of the market, we believe our other customers
will pay increasing amounts for fresh produce, as prices are rising.
http: / /blogs.wsj.com/ economics / 2014/04/15 /attention - shoppers- fruit- and -ve etg able- prices-
risin
8. Grants and Donations. The 5 -year projections assume grant and donation income of about
$65,000 to $75,000 per year.
9. Growth Rate. Gross revenues from all products, grants, and donations will nearly triple in 5
years, growing fastest in the early years and then growth rate leveling off.
10. Proiected Profit, Loss, and Cash at End of 2015. During the first year, CoCo Farm is ex-
pected to receive in -kind donations, gifts, monetary donations, grants, and crowd - funding for
specific projects. Our goal is to raise approximately $230,000 from these sources. Our opera-
tional expenses will break even with our revenue because we do not intend to take out loans.
We project that we will end the first full year of operations (2015) with about $58,000 in cash to
carry us into the low cash flow early months of the following year.
11. Revenue and Costs Forecast. Growth in sales should increase quickly as we grow more
produce and as more customers learn about our products and services. Sales will be highest
during the spring and summer months and will decrease during the wet months when only crops
inside of greenhouses can be sold. There are some risks. Although weather will affect the field
crops, the availability of an unlimited supply of water will eliminate the risk due to drought or
excessive heat as the crops can be watered in accordance with recycled water use guidelines to
cool the crops and soil.
Frost could damage uncovered crops. Unusually cold spring or summer would reduce
production. Pests could negatively impact production or eat our crops. Traps will be used to
capture mammals that eat the crops. Turkeys will be a difficult problem unless we use hoop
greenhouses to cover the crops. We will use integrated pest management strategies to reduce the
risks from insects. We expect sales to increase 25 -50% per year as our soil is enhanced and the
greenhouse is built and our reputation for excellence increases. The direct of cost of sales
should decrease with experience and because the cost of land, water, and fertilizer will remain
close to zero. Equipment costs will be high in the year following the construction of the
greenhouse, because we will be purchasing hydroponics equipment. Our personnel costs will
increase as we hire a greenhouse /hydroponics expert, a farmer and workers field crops and
29
AgLantis: CoCo San Sustainable Farm
teaching staff and an internship expert. We will limit hiring to money available.
B. Farm Products
1. Produce Sales. The products are categorized into categories based on type of product and
pricing. Produce Sales are broken down into weekly CSAs, Fresh Herbs, Food Bank,
Schools/Non- Profits and Wholesale /Businesses as separate categories.
2. Herbs. Our CSAs will include fresh herbs. We will also sell these as a separate item, includ-
ing basil which is a very popular item, as well as rosemary, oregano, parsley, thyme, and cilant-
ro. We will price these at the low end of farmer's market pricing, using local markets.
3. Potted Plants and Seedling Sales. A significant portion of our revenue in early years will
come from plant sales. These estimates are based on the plant sales for Diablo Valley College,
which bring in about $40,000 per year. We do not expect to have sales that equal that the first
year, because we have not developed the customer base. Hence, we estimated less than Diablo
Valley College's typical revenue from sales because they have a regular customer base that is
established.
4. Sales of Other People's Products. At special events, we expect to sell other peoples prod-
ucts that have a nexus with the farm such as homemade farm aprons and farm products. We
will take a small percent of the price of the item to cover our handing costs. We have set this
price low to facilitate community involvement and participation. We expect this to be a very
small fraction of our revenue.
5. Facilities and Event Rental. We
also break out a category for facili-
ties and event rental for parties that
we have on the farm. We believe
these parties are also an opportunity
to educate the community which is
part of our primary mission. Hence,
we price the facilities and teaching at
only $100 /hour to cover the cost of
an instructor and our expenses.
6. Advertising. We believe we can
obtain advertising revenue for green
products and businesses related to
the farm (e.g., nursery, home improvement, landscaping, soil, etc.) advertised at the farm and on
our website.
7. Space Rental for Green Businesses. Some green businesses may want to rent space to
showcase their products. As the farm grows, so will this revenue source.
12. Classes. All of the classes we have planned currently will be free. Special classes may re-
quest a donation. Cost of classes taught for events will be included in the event fee.
C. 5 -Year Income Projections (See Appendix A: IS Consol). Net Income is expected to grow slowly
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AgLantis: CoCo San Sustainable Farm
from approximately $51,000 to $71,000 over the first full 5 years of operations. The slow growth in net
income is due to the need for major capital and equipment expenditures, as well as increases in expert
staff.
D. Consolidated 5 -Year Profit and Loss (See Appendix A: CF Consol). We are limited to spending
cash on hand. We expect to put aside a cash flow reserve every year to carry us through the early
months of the following year when revenues will be limited. We expect to end our 5th year with about
$95,000 in reserves to carry us forward.
E. Consolidated Cash Flow. (See Appendix A: CF Consol) Our cash flow is expected to leave us
with between approximately $55,000 and $95,000 at the end of each year, enough to carry us through
negative cash flow early months of the next year.
F. Consolidated Balance Sheet (See Appendix A: BS Consol). We expect our inventory will double
over 5 years from $10,000 to $20,000, as we more than double our production growing hydroponic
produce in the greenhouse. Our equipment is expected to increase by $115,000 over 5 years, because of
the extensive equipment needed for hydroponic production and other farm and building equipment
needed. The value of our buildings will increase from $90,000 to $280,000 as we start with the green-
house and add a barn, refrigeration unit, and begin to build a teaching building. Our total fixed assets
are estimated to approximately triple over the first full 5 years from $120,000 to $376,250.
G. 1st -Year Break Even Analysis (See Appendix A: 1st Year Breakeven Analysis). For the first full
year of operations (2015) our breakeven is estimated at $138,515 which allows 16% margin of error
($26,485) on sales and grant projections and still not experience financial losses.
H. Financial Ratios (See Appendix A: Ratios). The operation will reflect good financial perfor-
mance, due to above cited benefits, and should remain solvent, liquid, and show a good return to stake-
holders in terms of quality produce and charitable contributions.
I. Common Sized Income Statements (See Appendix A: Income Common Sized). As a percentage of
revenues, G &A costs show cost containment over the five years, despite inflation factor of 5% per an-
num used for variable expense categories. This is a conservative estimate based on the current eco-
nomic outlook.
11. Assessment of Outcomes
We anticipate that our annual report the following outcomes and we will set up methods to keep rec-
ords that address these.
A. Infrastructure and Capital Improvements. Detail records of the types of infrastructure built and
the process and costs will be maintained.
B. Planting Data. Data on what seeds are planted, days to harvesting, and yield and other critical
planting data variables will be maintained.
C. Harvesting Data. We will keep track of the products harvested and quantity in pounds and /or
bushels or other units. We will also keep track of the approximate quantity that is wasted and the rea-
sons it was not sold or donated.
31
AgLantis: CoCo San Sustainable Farm
D. Cost Data. We will keep detailed records of how our money is spent and try to attribute expendi-
tures to products or services provided, so that we understand the costs of products and services.
E. Produce Donation Data_ Produce donated will be weighed or counted, including data on how it
was picked, transported, washed, distributed, any monies paid, and to whom it was given.
F. Produce Sales Data. The price paid for each
documented. Some buyers like the Food Bank
may pay by the pound. Others may pay by a
bulk price in the form of a CSA. We will rec-
ord the quantity of each sellable quality item
that is produced and the various price catego-
ries and quantities sold within each.
G. Security and Safety Data. We will docu-
ment any safety issues and problems.
H. Volunteer Data. We are focusing on highly
trained volunteers, who are high school aged
and above. We will have each volunteer fill out
forms and waivers, and parents or guardians complete waivers if they are not adults. We will track of
how the volunteer learned of the farm, how many volunteers work on the farm and the approximate
number of hours of time donated. We will track any affiliations they wish to provide us, such as em-
ployer or non - profit or group with whom they are affiliated. We will also record if they support the
farm in other ways, such as purchasing a CSA or other products or services.
I. Classes Data. We will keep track of the classes taught, by whom, what was taught and when and
where and attendance. We will also keep track of basic demographics of participants, including their
address (if possible) and in what city and county they reside.
J. Student/Internship Data. If we teach individuals who are identified as students or interns, we will
keep track of demographic data, including their address and in what city and county they reside, the
school they attend, and all the classes and ways they are taught or mentored.
K. Community Outreach Data. We intend to outreach to the community through our website, social
media, the press, and media communications such as possibly through CCCSD's Pipeline. Records
will be maintained of the type of outreach, dates of outreach, method, and approximate people reached.
L. Survey Evaluation Data. To have an ongoing method of assessment of how we are doing, we will
ask those who have contact with us to fill out a brief survey. This will include those who volunteer,
attend classes, buy CSAs, buy bulk produce, etc. We hope this will provide valuable feedback and
suggestions for improvement.
12. Management Team and Key Team Members and Key Positions
(See Appendix B for the Organizational Chart)
A. AgLantis. AgLantis is a CA Non -profit Public Benefit Corporation formed for charitable and
32
AgLantis: CoCo San Sustainable Farm
educational purposes including promoting conservation and utilization of natural resources and
educating the public about sustainable living practices. These purposes are in alignment with CCCSD's
mission as illustrated on their website. AgLantis has four board members: President, Carolyn Phinney;
Vice - President, Bethallyn Black; Treasurer, Steve Hoeft and Secretary, John Mercurio. Brief
biographies ofAglantis' Board are below.
B. AgLantis Board.
Carolyn Phinney, Ph.D. is the Founder and President of AgLantis and Executive Director of the CoCo
Farm. Dr. Phinney has primary responsibility for fund - raising, grant- writing, obtaining in -kind
contributions, volunteer recruitment, developing infrastructure, and financial management. Dr.
Phinney has a Ph.D. in research psychology from the University of California, Berkeley and is a retired
university scientist and teacher. Dr. Phinney has been a community activist and organizer for two
decades. Dr. Phinney has had the self - motivation, grit, and determination for nearly 4 years to bring
this project from inspiration through acceptance by the prestigious Earth Island Institute as one of their
sponsored projects and through concept approval by the Board of CCCSD. She has created the
momentum to bring support from state, county, city, and school board elected officials, the top public
health official in the county, church leaders, the director of the Food Bank, food and environmental
activists, business supporters, the Contra Costa County Resource Conservation District and thousands
of supporters among community 2000+ of whom signed a petition to CCCSD asking them to allow the
public buffer land to be used for this farm.
Dr. Phinney taught and conducted research at the University of Michigan, Ann Arbor where she ran a
large research laboratory and wrote many Federal and foundation grants. In the mid 1990s, Dr.
Phinney completed a year -long internship with a large consulting firm Dannemiller -Tyson Associates
in Ann Arbor, MI, training in long -term strategic organizational planning and change. Dr. Phinney has
extensively studied team- building and creating high performance teams and has been a consultant for
other consultants who were trying to boost team performance. She has taken SBA courses and regularly
attends business webinars and seminars. She is currently enrolled in the Entreprenurial Leadership
certificate program at JFK University's Institute for Entrepreneurial Leadership.
Dr. Phinney is an elected member of her party's county central committee and has been a political
activist and organizing leader for decades. She has 20 years of experience organizing and leading
volunteers and has twice won awards for her volunteer efforts (1997 and 2014). Dr. Phinney was the
field organizer for her county party in 2010 and lead a large group of volunteers to her party's
delivering approximately 10% of the official party slate cards in the state throughout the county,
winning most Federal, State, County and local races. She is closely connected to federal, state, county,
local elected officials, school and Community College Board members and other leaders in the
community many of whom have already openly supported the farm. The political contacts and savvy
are particularly important because the best land to use for replication is sanitary district land, which is
controlled by public officials. Dr. Phinney has extensive experience in the use of online, social media,
and email marketing. One of the groups she founded reached more than 2 million people with one of
her posts. Dr. Phinney has obtained considerable press interest and coverage and also used social
media to bring wide support and visibility to the farm.
Bethallyn Black, M.A. is the Vice - President of the Board of Directors and will be the Director of
Agriculture. Ms. Black has a Masters in ecology, agriculture and adragogy from New College of
California. She has her certification in permaculture design and has completed the University of
California's Landscape Architecture program. She is an Adjunct Professor at JFK University and
33
AgLantis: CoCo San Sustainable Farm
Diablo Valley Community College. Ms. Black teaches Soil Science; Integrated Pest Management;
Plant Production; Irrigation; Introduction to Horticulture; Pruning; and Horticulture Therapy. Ms.
Black was the University of California Cooperative Extension's Urban Horticulture Program Manager
(1997- 2009). She is one of the top Master Gardeners in the county, having taught approximately 500
Master Gardeners. Ms. Black has taught beginning and advanced classes in Botany; Ethnobotany;
Rainwater Harvesting; Water Conservation; Small Scale Urban Farming; Pest management;
Arboriculture; Plant ID; Landscape Design; Plant Propagation; Greenhouse Management; Water
Science; Vermicomposting; and Soil Management. Ms. Black has helped found and managed a 5.8-
acre farm in Marin called the Indian Valley Organic Farm. This innovative organic teaching farm is a
unique collaboration between the College of Marin, the Conservation Corps North Bay and UCCE
Extension, Marin and is a model for the CoCo Farm.
https: / /www.youtube.com /watch ?v= ZjI2PAYQIQk
For more than 20 years, Ms. Black has been the owner and operator of `A Woman's Touch' landscape
design and installation company (California Landscape Contractor C27 #523601), specializing in
regionally appropriate, organic landscapes, emphasizing edibles and natives. Ms. Black will work with
local science teachers and experts from CCCSD to develop the classes taught on the farm and teach the
docents, who will help with instruction. Ms. Black has a long history of working with CCCSD on such
projects as their integrated pest management program. She has many close friends in the organic
farming community and in the Agriculture Department at the University of California, Davis, where
she works. Ms. Black will be the Farm Manager (our "Farm Guru ") in charge of Farm Operations and
Curriculum Development.
Stephen Hoeft, M.A. is Treasurer on Board of AgLantis. Steve has a Masters in Chemistry from the
Washington University in St. Louis, and will oversee some of the science education programs. He has
over ten years of experience in the non - profit sectors of Community Development and Environmental
Conservation. Mr. Hoeft is the Treasurer of AgLantis.
John Mercurio B.A. is Secretary on the Board of AgLantis. John has a teaching credential in second-
ary education and a Masters in Public Administration. John is a former employee of CCCSD, an Engi-
neering Assistant III and is familiar with the organization. John is also on the Planning Commission of
City of Concord. Previously, John served as a Commissioner on Concord's Park, Rec, and Open Space
Commission and Concord's Design Review Board.
C. Other Key Personnel. Martha (Marti) Carlson will be the Internship Director. Ms. Carlson
worked for Girls Inc. and Foothill De Anza Community College creating internships for more than two
decades. She has created internships for NASA, Apple and other Silicone Valley giants for 23 years.
Ms. Carlson will create an internship program where students from local community colleges and high
schools can come to the farm to be trained in AgroEcology and high tech greenhouse management.
This will help provide the workforce needed for AgLantis to eventually replicate the farm on other
sites. Ms. Carlson is currently the Community Engagement Specialist for the non - profit Meals on
Wheels of Contra Costa, Inc. Her hours working on internship programs for the CoCo Farm will be
determined by available funding.
D. Personnel Plan. Dr. Phinney will be responsible for oversight of the entire venture, organizational
development, volunteer recruitment, grant- writing and fund - raising. Ms. Black will manage the farm
operations and teach many classes. The farm expects to hire an experienced organic farmer perform
the day -to -day planting and harvesting of crops. A farmer will be hired part-time for approximately 9
months of the year and will be paid a good living wage.
34
AgLantis: CoCo San Sustainable Farm
Once the greenhouse is built and funds are raised, the farm will hire a greenhouse hydroponics expert
grower, probably from Arizona State University to manage the hydroponics operation and teach
hydroponics greenhouse management. The rest of the field farming and potted plant and herb growing
activities will be managed by Ms. Black. Part -time, personnel may be hired to harvest crops and fill
the CSAs in the summer and fall for slightly more than minimum wage. And the Workforce
Development Board may pay for interns to work on the farm and learn job skills. When funds become
available, Martha Carlson will be hired to develop other internship programs for the farm with
surrounding businesses. Stephen Hoeft, M.S. has a Masters in Chemistry and is our farm's "Bill Nye
the Science Guy." Mr. Hoeft may be hired part -time to teach some science classes.
E. Volunteers. We believe many volunteers will help with planting and harvesting crops and other
activities. In the early years, we will rely primarily on "expert" volunteers such as Master Gardeners or
others with considerable experience. Later, we will involve other volunteers who are less trained and
we will train them. We have already had approximately 40 volunteers worked to clean up debris and
rocks from the farm on Martin Luther King Day in 2012. They happily worked all day and most said
they couldn't wait to come back on a regular schedule.
13. Organization
A. Overview: AgLantis is a CA Non- profit Public Benefit Corporation with 501 c -3 status, which is
awaiting approval letter by the IRS but has 501c -3 status while waiting. AgLantis is formed for
charitable and educational purposes. The Articles of Incorporation state: "The specific purposes for
which this Corporation is organized are to provide charitable and educational services by:
(a) Promoting the conservation and utilization of natural resources, especially public lands and
recycled water, to enhance sustainable, healthy living;
(b) Providing education to the community that fosters sustainable living practices to reduce the
negative environmental impacts of human activity and increase health;
(c) Deploying under - utilized natural resources to feed people and reduce nutritional poverty
with sustainable agricultural and food web practices that protect the environment;
35
AgLantis: CoCo San Sustainable Farm
(d) Focusing efforts especially on augmenting pathways between schools, higher education and
careers;
(e) Focusing especially on benefitting disadvantaged populations such: as at -risk youth,
veterans, disabled, immigrants and /or those under - served; and
(d) Collaborating with, promoting and sponsoring programs that share these goals.
These purposes are in alignment with CCCSD's mission as illustrated on their website
http: / /www.centralsan.org/. AgLantis has four board members: President, Carolyn Phinney; Vice -
President, Bethallyn Black; Treasurer, Steve Hoeft and Secretary, John Mercurio.
B. Accounting: AgLantis will hire a Bookkeeper and CPA. We are considering hiring Vijeh &
Mahoney Consulting Services in Moraga, CA, see www.viieh- mahoney.com. Their website describes
some of the Financial Management services we will use:
The Financial Management Services division provides expert services to non - profit organizations in all
areas of Finance, including:
• Financial Application Software Conversion
• Budgeting
• Project Management
• Audit and Tax Support
• Financial Policies and Procedures
• Financial Reporting
• Bookkeeping Services
Mogjan Vijeh has two decades of experience working with non - profits. If we do not select this firm we
will hire one that is similar.
C. Legal: Attorney Pam Bouey, Walnut Creek, has provided pro Bono services on the lease. We hope
to find an environmental attorney who will provide services for the long term on a pro Bono basis.
D. Insurance: The CoCo Farm will maintain the insurance required in the lease with CCCSD.
7.2.1 General Liability. Insurance, including contractual liability, independent contractors, and broad
form property damage coverages. This insurance shall be in a comprehensive occurrence form
with an endorsement naming the District as an additional insured and with a standard cross -
liability clause or endorsement. The limit amount for this insurance shall not be less than
$5,000,000 per occurrence combined single limit for bodily injury and property damage.
7.2.2 The insurance policy described above shall include the following provisions or have them
added by endorsement:
(a) The coverages shall be primary, and no other insurance or self - insurance such as may be
utilized by the District shall contribute to a loss under the policy.
(b) The policy shall not be canceled or materially altered without thirty (30) days prior
written notice to the District.
36
AgLantis: CoCo San Sustainable Farm
(c) The certificates and endorsements are to be signed by a person authorized by the
insurers to bind coverage on their behalf.
7.2.3 The insurer(s) utilized shall conform to the following terms:
(a) Insurers shall have at least an "A" policyholder rating and a "VII" financial rating in
accordance with the most current Best's Key Rating Guide.
(b) Tenant shall furnish to the District, no later than ten (10) days prior to the expiration of
the current insurance, with adequate certificates of insurance and with original endorsements
affecting coverage as will demonstrate that the provisions and /or requirements of this section
have been complied.
(c) Tenant shall provide thirty (30) days' prior written notice to the District before the
policy is canceled or materially altered.
7.2.4 Tenant shall maintain Workers' Compensation and Employer's Liability coverages per the
statutory requirements at the location of work and to the extent included under the Workers'
Compensation Insurance Policy. Tenant shall also maintain coverage pursuant to the general
liability policy or through endorsements or through separate insurance policies which provide
coverage for products liability, bee stings, and other potential agricultural dangers as well as
with the aviation liabilities associated with proximity of the Premises to an airport.
7.2.5 The District reserves the right to require receipt of complete copies of all required insurance
policies at any time.
E. Security and Physical Safety (See Appendix C): Security and Physical Safety Plan is under
development by John Mercurio, AgLantis Secretary, who was a former employee of CCCSD.
14. Keys to Success
The success of our business will be determined by building a high - performance team, producing fresh,
wonderful tasting produce; creating a genuinely supportive relationship with our partner CCCSD, and
obtaining community involvement to carry us forward with inspiration, expertise and collaboration.
"Better is possible.
It does not take genius. It takes diligence. It takes moral clarity. It takes ingenuity.
And above all, it takes a willingness to try. "
Atul Gawande, 2007
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AgLantis: CoCo San Sustainable Farm
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AgLantis: CoCo San Sustainable Farm
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simplified- hydroponics- in- ecuador /.
http: / /www.thepacker.com/ fruit - vegetable- news /marketing-profi Ies /B right- Farm s - negotiates -Indy_
partnership- 218109101.html
http: / /www.thepacker.com/ fruit - vegetable- enewsletter /Issue Announcement /Cheaper- LED -Ii htg s =may-
make- locally_grown- shine- 262123911.html
http: / /www.ers.usda. og v/topics /animal- products /aguaculture.aspx
http: // www. sainachar .com /Hightech- farmin - Tight- fantastic- ofpuKnbighb.litml
FOOD SAFETY:
GAPS (Strategic Objective: Design out potential food safety risks by implementing and strictly adher-
ing to Good Agricultural Practices (GAPs), Good Handling Practices (GHPs) and Hazard Analysis and
Risk Based Preventive Controls ( HARPC) -- GAPs = pre- harvest practices; GNPs = post- harvest prac-
tices, including packing & shipping; HARPC identifies and monitors specific food safety risks that can
adversely affect the safety of food products) from BackyardFarms.com.
http://www.backyardfarms.coi-n/how-we-grow/food-safety
http://www.mygfsi.com/
http: // www. niygfsi .com /gfsifiles/Newsletter /GFSI NEWSLETTER 2014 GLOBAL FOOD SAFET
Y CONFERENCE_ SPECIAL_ EDITION FEB_2014.pdf
http: / /www.fda.gov/ Food/ GuidanceRegulation /FSMA /default.htm
http: / /www.produceops.com /food - safety/
http: / /www.produceops.com /food- safety /Maine - greenhouse- tomato - grower- earns -food- safety - award-
254669011.html
http: / /sustainableagriculture. net /blog /fsma- eis- scoping- comments/
http: / /sustainableagriculture. net /fsma /learn- about - the - issues / food - safety -plan- and- recordkeeping-
preventive - controls/
http: // sustainableagriculture .net /fsma/learn- about - the - issues /agricultural- water/
littp: / /www.taproduce.com /consumer /agricu I tura I- practices.php
http: / /www.ers.usda. og v/tol2ics /food- safety.aspx
http: // www .unitedfresh.org /iiewsviews /gap harmonization
http: / /en.wikipedia.org /wiki /FDA Food Safety Modernization_ Act
41
AgLantis: CoCo San Sustainable Farm
LEGAL
http: / /www.califomiafarmlink.or /sg tora /iinages /business assistance /CA- Guide- Final.pdf
LOCAL FOOD
http: / /www.ers.usda. aov /topics/ food - markets - prices /local - foods.aspx
http: / /www.ers.usda. aov /publications /err- economic- research- report/err97.aspx
MARKET RESEARCH
http: / /www.bizstats.com /corporation - industry- financials /agriculture- forestry - fishing -hu nting-
11 /agricultu ral- production -111 /show
U.S. Agriculture is an 11 billion dollar industry. California is the leading state for Agriculture in the
U.S. http: / /campus.extension.org /course /view.php ?id =424).
2009 Gross Vegetable Receipts were 20.6 billion U.S. Census .... see excel saved
http: / /www.census. ovg_ / compendia /statab /cats /agriculture.html
2007 Agriculture in California alone, 34 million
2010 Average yield per acre 152 bushels, potatoes more than double that so depends on crop
Aquaculture a 1 billion dollar industry
http: / /www.ers.usda. ov/ topics /animal- products /aquacuIture.aspx
2007 farm to customer sales about 1.2 billion up about 551 million in 1997 see 2007 summary
Edible farm to consumer .8 of total agriculture in 2007.
Small farms (under 150 acres) make less than $250,000 per year.
http: / /www.ers.usda.gov/pub] ications /eib- economic- information - bulletin /eib66.aspx
17% profit only http: / /sustainableagriculture .net /blog /2012- agriculture-
census/?utm_ source= roundup &utm medium =email
http:// www .census,.aov /compendia/statab /cats /aariculture.htm 1
2007 10 to 49 organic acres 1 4,994 115000 1 $5,000 to $9,999
http://www.thel2acker.com/fruit-vegetable-consumer-research/
Fresh Trends 2014 Magazine: Fresh Trends, the The Packer's annual study of produce consumption
trends, presents consumer attitudes about fresh fruits and vegetables. Published March 15, the Fresh
42
AgLantis: CoCo San Sustainable Farm
Trends 2014 magazine features articles highlighting the major findings of our consumer research, as
well as a breakdown of the results by commodity, and more.
http: / /www.thepacker.com /fruit - vegetable- enewsletter /pulse/ Fruits - and - vegetables- continue -to -show-
organic- ,gains- 259547891.html
http://www.producemarketguide.co
http : / /www.nass.usda.gov /index.asp
https://www.youtube.com/watch?v=Y-9CAmhMRiO
PRODUCE PRICING
http: / /www.thepacker.com/ fruit - vegetable- news /produce- commodity - pricing_/
http: / /www.ers.usda. og v/topics/ crops /vegetables- pulses /commodity-highli hg ts.aspx
http: / /blogs.wsi.com/ economics /2014/04/15/ attention- shoppers - fruit - and -ve etg able- prices -risin /
TEENS AND ORGANIC PRODUCE
http: // www .piperiaffray.com /2col.aspx ?id= 178 &releaseid = 1863548& title = Piper +Jaffray +Completes +2
6th +Sem i- Annual+ "Taking+ Stock +with +Teens" +Market +Research +Project
http: / /www.thepacker.com /fruit - vegetable - enewsletter /Week_In Review /Study- teens - burg -more-
organic- 237315731.html
http: / /www.thepacker.com/ fruit- ve,etable- enewsletter /Week In Rev iew /Study- teens - buying -more-
organ ic- 237315731 .html #sthash.kxMrk9gb.dpuf
http: / /www.thepacker.com/ fruit - vegetable - enewsletter /Issue Announcement/Millennials- have -kids-
who- need -to- eat - prod uce- too- 263043121.html
http: / /www.al ixpartners. com /en /MediaCenter /PressReleases /tabid /821 /articleType /ArticleV iew /articles
d /258 /Rise -of- the- Millennials- and -Agin g -of -the- Boomer - Generation - Will -Mean- Trouble -in- Aisle -5-
for- Established- Food - Brands - and - Traditional- Grocery- Stores.aspx #sthash.I l s6Bclh.IrldZoay.dpbs
tutorial
http: / /www.nass.usda.gov /Quick Stats/
National Sustainable Agriculture Coalition, 2012 Census Released.
http:/ /sustainableagriculture.net /blo 2012-agriculture-
census/?utm_ source= roundup &utm_med ium =emai I
On May 2, USDA released data from the 2012 Census of Agriculture. The Census of Agriculture has been conducted since
1840 and currently is collected once every five years.
In releasing the Census, Secretary of Agriculture Tom Vilsack called particular attention to beginning farmer highlights,
including that 22 percent of all farmers are beginning farmers who have operated a farm for less than ten years and that the
43
AgLantis: CoCo San Sustainable Farm
number of younger beginning farmers (35 and under) who report farming as their principal occupation has increased by 11
percent since the 2007 Census, to 40,499.
The Secretary also noted that 30 percent of all farm operators are women and that Latino farm operators have increased 21
percent since the last Census to 99,734. He also noted that organic sales from farms increased by 82 percent since 2007 to
$3.1 billion in 2012.
USDA's National Agricultural Statistics Service, the agency which conducts the Census, highlighted in their release that
2012 set records for both the value of farm sales and the costs of production, with farmers and ranchers selling $395 billion
worth of products at a cost of $329 billion, such that an average less than 17 percent of sales became actual income.
NASS also noted that in 2012 for the first time ever, corn and soybeans topped 50 percent of all harvested acres. They also
pointed out the 144,530 farms sold directly to consumers, with total direct sales of $1.3 billion, up 8 percent from 2007.
REACHING THE POOR
http : / /www.backyardfarms.com /blog/ 2014/03 /summer -in- the -city- success
RECYCLED WATER/ DROUGHT
http : / /www.farmandranchguide.com /news /regional /census -of- agriculture- reveals - new - trends -in-
farming /article 83787fc8- d213- 11e3- 9a2e- 0019bb2963f4.htm1
http://www.ppic.org/main/pubIication.asp?i=944
http: / /sustainableagricuIture. net /fsma/leam- about - the - issues /agricultural- water/
http://www.thepacker.com/ fruit - vegetable- news /Almond- growers- look -to- recycled- water - for- survival-
259819691.htm1
http: / /www.thepacker.coin/ fruit - vegetable- enewsletter /packer -daily /Fruit -ve ,,eta prices -on- the -rise-
with-drought-25551297 I. ht m 1
ham: / /www.thepacker.com/ fruit - vegetable - enewsletter /Week In Review /California - drought- order-
leaves - citrus - uncertain- 257074871.html
http : / /watennanagement.ucdavis.edu /cooperative- extension/cwvt
44
AgLantis: CoCo San Sustainable Farm
Fruit, vegetable prices on the rise with drought
ShareThisO ii� Resize text Lj CQ� PRINT THIS
I,b Comments
04/16/2014 12:06:00 PM
Tom Karst
Avocados and lettuce may see the biggest produce price increases this year because of drought conditions in
California, one economist believes.
In research released April 16, Timothy Richards of the W.P. Carey School of Business at Arizona State University
said he looked at both retail data from the Nielsen Perishables Group to estimate price inelasticies for the
commodities most likley to be affected by the drought, according to a news release.
"We can expect to see the biggest percentage jumps in prices for avocados and lettuce — 28% and 34 %,
respectively," Richards said in the release. "People are the least price- sensitive when it comes to those items,
and they're more willing to pay what it takes to get them."
Industry estimates range from a half - million to 1 million acres of agricultural land likely to be affected by the
current California drought, according to the release. Richards said in the release that he believes between 10%
and 20% of the supply of certain crops could be lost. California is the biggest supplier of several of those
commodities. For hass avocados, California is the only U.S. source, Richards said in the release.
Richards estimates the following possible price increases due to the drought
• avocados, up 17 to 35 cents to as much as $1.60 each;
• berries, up 21 to 43 cents to as much as $3.46 per clamshell;
• broccoli, up 20 to 40 cents to a possible $2.18 per pound;.
• grapes, a rise of 26 to 50 cents to a possible $2.93 per pound;
• lettuce, could rise 31 to 62 cents to as much as $2.44 per head;
• packaged salad, up 17 to 34 cents to a possible $3.03 per bag;
• peppers, up 18 to 35 cents to a possible $2.48 per pound; and
• tomatoes, likely to rise 22 to 45 cents to a possible $2.84 per pound.
"We predict the increased prices will change consumer purchasing behavior," Sherry Frey, vice president of
Nielsen Perishables Group, said in the release. Frey said that certain consumers — young consumers of
avocados, for example — will be more heavily affected by the price increases.
"While some consumers will pay the increased prices, others will substitute or leave the category completely,"
she said in the release.
For a cateogry like avocadoes, reduced purchases will also hurt sales of some non - produce snacking
categories, such as chips, crackers and ethnic grocery items. Higher prices will mean retailers will start looking
elsewhere for produce, she said in the release.
- See more at: http://www.thepacker.com/ fruit - vegetable - enewsletter /pulse/ Fruit - vegetable - prices -on- the - rise - with - drought-
255512971. htm I #sthash.OgRiXtvU.dpuf
45
Appendix A: AgLantis
5 -Year Projection
AgLantis
Beginning Balance Sheet
For Year Beginning
1/1/2015
ASSETS
Current Assets
LIABILITIES
Current Liabilities
Cash 30000 CPLTD 0
Inventory 10000 Trade Payable 0
Account Receivable 0 Accruals 1000
Other Current Assets 0 Taxes Payable 0
Prepaid Expenses / Deposits 500 Other 0
Total Current Assets 40500 Total Current Liabilities 1000
Long Term Assets
Land 0
Buildings 90000
Equipment 20000
Other Fixed Assets 10000
Accum Depreciation 0
Total Long Term Assets
Total Assets
120000
160500
Long Term Liabilities
Term Debt LTP 0
Other QO
Total Long Term Liabilities 0
Total Liabilities 1000
OWNERS EQUITY Draws
Capital 159500
Total Owners Equity 159500
Total Liabilities and Owners Ei 160500
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting in
the format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Income Statement
For Year Ending
12/31/2015
TOTAL SALES GOAL $100,000
Percent of Sales Per Month 4.00% 4.00% 4.00% 5.00% 10.00% 10.00% 15.00% 15.00% 13.00% 10.00% 5.00% 5.00% 100.00%
JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL
CSAs
Percent of Total Sales
15%
Total Sales
600
600
600
750
1,500
1,500
2,250
2,250
1,950
1,500
750
750
15,000
Less: Cost of Goods Sold
53%
320
320
320
401
801
801
1,202
1,202
1,041
801
401
401
8,012
GROSS PROFIT
280
280
280
349
699
699
1,048
1,048
909
699
349
349
6,989
Price Per Unit
25
25
25
25
25
25
25
25
25
25
25
25
# Units Sold
24
24
24
30
60
60
90
90
78
60
30
30
600
FRESH HERBS
Percent of Total Sales
2%
Total Sales
80
80
80
100
200
200
300
300
260
200
100
100
2,000
Less: Cost of Goods Sold
53%
43
43
43
53
107
107
160
160
139
107
53
53
1,068
GROSS PROFIT
37
37
37
47
93
93
140
140
121
93
47
47
932
Price Per Unit
$2
$2
$2
$2
$2
$2
$2
$2
$2
$2
$2
$2
# Units Sold
40
40
40
50
100
100
150
150
130
100
50
50
1,000
FOOD BANK
Percent of Total Sales
10%
Total Sales
400
400
400
500
1,000
1,000
1,500
1,500
1,300
1,000
500
500
10,000
Less: Cost of Goods Sold
53%
214
214
214
267
534
534
801
801
694
534
267
267
5,341
GROSS PROFIT
186
186
186
233
466
466
699
699
606
466
233
233
4,659
Price Per Unit
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
# Units Sold
40
40
40
50
100
100
150
150
130
100
50
50
1,000
SCHOOLS /NON- PROFITS
Percent of Total Sales
25%
Total Sales
1,000
1,000
1,000
1,250
2,500
2,500
3,750
3,750
3,250
2,500
1,250
1,250
25,000
Less: Cost of Goods Sold
53%
534
534
534
668
1,335
1,335
2,003
2,003
1,736
1,335
668
668
13,353
GROSS PROFIT
466
466
466
582
1,165
1,165
1,747
1,747
1,514
1,165
582
582
11,648
Price Per Unit
$70
$70
$70
$70
$70
$70
$70
$70
$70
$70
$70
$70
# Units Sold
14
14
14
18
36
36
54
54
46
36
18
18
357
WHOLESALE
Percent of Total Sales
5%
Total Sales
200
200
200
250
500
500
750
750
650
500
250
250
5,000
Less: Cost of Goods Sold
53%
107
107
107
134
267
267
401
401
347
267
134
134
2,671
GROSS PROFIT
93
93
93
116
233
233
349
349
303
233
116
116
2,330
Price Per Unit
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
# Units Sold
2
2
2
3
5
5
8
8
7
5
3
3
50
POTTED PLANTS & SEEDLINGS
Percent of Total Sales
30%
Total Sales
1,200
1,200
1,200
1,500
3,000
3,000
4,500
4,500
3,900
3,000
1,500
1,500
30,000
Less: Cost of Goods Sold
53%
641
641
641
801
1,602
1,602
2,403
2,403
2,083
1,602
801
801
16,023
GROSS PROFIT
559
559
559
699
1,398
1,398
2,097
2,097
1,817
1,398
699
699
13,977
Price Per Unit
$5
$5
$5
$5
$5
$5
$5
$5
$5
$5
$5
$5
# Units Sold
240
240
240
300
600
600
900
900
780
600
300
300
6,000
EVENT RENTALS
Percent of Total Sales
5%
Total Sales
200
200
200
250
500
500
750
750
650
500
250
250
5,000
Less: Cost of Goods Sold
50%
100
100
100
125
250
250
375
375
325
250
125
125
2,500
GROSS PROFIT
100
100
100
125
250
250
375
375
325
250
125
125
2,500
Price Per Unit (Per Hour)
$0
$0
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
# Units Sold
0
0
2
3
5
5
8
8
7
5
3
3
46
PRODUCTS MADE BY OTHERS
Percent of Total Sales
1%
Total Sales
40
40
40
50
100
100
150
150
130
100
50
50
1,000
Less: Cost of Goods Sold
90%
36
36
36
45
90
90
135
135
117
90
45
45
900
GROSS PROFIT
4
4
4
5
10
10
15
15
13
10
5
5
100
Price Per Unit
$2
$2
$2
$2
$2
$2
$2
$2
$2
$2
$2
$2
# Units Sold
20
20
20
25
50
50
75
75
65
50
25
25
500
ADVERTISING
Percent of Total Sales
5%
Total Sales
200
200
200
250
500
500
750
750
650
500
250
250
5,000
Less: Cost of Goods Sold
25%
50
50
50
63
125
125
188
188
163
125
63
63
1,250
GROSS PROFIT
150
150
150
188
375
375
563
563
488
375
188
188
3,750
Price Per Unit
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
# Units Sold
4
4
4
5
10
10
15
15
13
10
5
5
100
SPACE RENTAL GREEN BUS.
Percent of Total Sales
2%
Total Sales
80
80
80
100
200
200
300
300
260
200
100
100
2,000
Less: Cost of Goods Sold
20%
16
16
16
20
40
40
60
60
52
40
20
20
400
GROSS PROFIT
64
64
64
80
160
160
240
240
208
160
80
80
1,600
Price Per Unit
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
# Units Sold
2
2
2
2
4
4
6
6
5
4
2
2
40
TOTAL SALES
100.00%
4,000
4,000
4,000
5,000
10,000
10,000
15,000
15,000
13,000
10,000
5,000
5,000
100,000
Less: Cost of Goods Sold
53.41%
2,061
2,061
2,061
2,576
5,152
5,152
7,728
7,728
6,697
5,152
2,576
2,576
51,517
GROSS PROFIT
46.59%
1,939
1,939
1,939
2,424
4,848
4,848
7,272
7,272
6,303
4,848
2,424
2,424
48,483
AgLantis
Income Statement
For Year Ending
12/31/2015
Gross Sales
Grants and Donations
Less: Ret. & Allow.
Net Sales
Cost f Goods
GROSS PROFIT
Jan -15
4000
3000
20
69801
20611
4919
Feb -15
4000
4000
20
79801
20611
5919
Mar -15
4000
4000
20
79801
20611
5919
Apr -15
5000
4000
25
25761
6399
May -15
10000
10000
50
159501
14798
Jun -15
10000
10000
50
159501
14798
Jul -15
15000
5000
75
199281
12197
Aug -15
15000
5000
75
177281
12197
Sep -15
13000
5000
65
166971
11238
00-15
10000
5000
50
1511521
9798
Nov -15
5000
5000
25
25761
7399
Dec -15
5000
5000
25
2576
7399
TOTAL
100000
65000
500
154500
112983
G & A Expenses
Teaching Salary Expense
Rent
Payroll taxes
Travel& Enter.
Prof. & Acctg
Depreciation
Insurance
Interest
Rep & Maint.
Util.& Phone
Office Supplies
Other Taxes
Marketing
Other Expense
Total G &A Exp.
10001 10001 10001 10001 10001 10001 10001 10001 10001 10001 1000 1000
12000
0 0 0 0 0 0 0 0 0 0 0 1
1
117 117 117 117 117 117 117 117 117 117 117 117
1404
500 500 500 500 500 500 500 500 500 500 500 5001
6000
500 5001 5001 5001 5001 5001 5001 5001 5001 5001 5001 500
6000
500 500 500 500 500 500 500 500 500 500 500 500
6000
600 600 600 600 600 600 600 600 600 600 600 600
7200
0 0 0 0 0 0 0 0 0 0 0 0
0
200 200 200 200 200 200 200 200 200 200 200 2001
2400
600 600 600 600 600 600 600 600 600 600 600 600
7200
100 100 100 100 100 100 100 100 100 100 100 100
1200
o =0 01 01 01 01 01 01 01 01 01 0
40 40 50 100 100 150 150 130 100 50 50 56
0
1016
1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
12000
5157 5157 5167 5217 5217 5267 5267 5247 5217 5167 5167 5174
62421
Net Income BT
-238
762
752
1182
9581
9531
6930
6950
6021
4631
2232
2225
50562
Income Taxes
0
0
0
0
0
0
0
0
0
0
0
0
0
Net Income AT
-238
762
752
1182
9581
9531
6930
6950
6021
4631
2232
2225
50562
Enter Factors Below:
Cost of Good percentage
Marketing percentage
Payroll Tax percentage
FICA
SUTA
FUTA
State Compensation
Total Payroll Tax percentage
Return & Allowance %
Income Tax %
53.4%
1.00%
7.65%
1.00%
1.00%
2.00%
11.65%
0.5%
0%
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting
in the format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Cash Flow Statement
For Year Ending
12/31/2015
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting in the
format shown, and makes no claims regarding the accuracy of the presentation."
Jan -15
Feb -15
Mar -15
Apr -15
May -15
Jun -15
Jul -15
Aug -15
Sep -15
Oct -15
Nov -15
Dec -15
Total
Cash Receipts
Sales, Grants, Donations
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
Credit Sales
0
0
0
0
0
0
0
0
0
0
0
0
0
Cash Sales
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
Collections Current Month
0
0
0
0
0
0
0
0
0
0
0
0
Collections 30 -60 days
0
0
0
0
0
0
0
0
0
0
0
0
Collections 60 -90 days
0
0
0
0
0
0
0
0
0
0
0
0
Collections 90 & over
0
0
0
0
0
0
0
0
0
0
0
0
Total Collections
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
Financing Income
Interest Income
0
0
0
0
0
0
0
0
0
0
0
0
0
Loan Proceeds
0
0
0
0
0
0
0
0
0
0
0
0
0
Other Cash Receipts
o
0
0
0
0
0
0
0
0
0
0
0
0
Total Cash Receipts
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
Cash Outflows
Cost of Goods
2061
2061
2061
2576
5152
5152
7728
7728
6697
5152
2576
2576
51517
COD or cash payments
2061
2061
2061
2576
5152
5152
7728
7728
6697
5152
2576
2576
51517
A/P Purchases
0
0
0
0
0
0
0
0
0
0
0
0
0
A/P Payments - 0 to 30 days
0
0
0
0
0
0
0
0
0
0
0
0
A/P Payments - 30 - 60 days
0
0
0
0
0
0
0
0
0
0
0
0
A/P Payments - over 60 days
0
0
0
0
0
0
0
0
0
0
0
0
Total Cash Payments
2061
2061
2061
2576
5152
5152
7728
7728
6697
5152
2576
2576
51517
Operating expenses
3540
3540
3550
3600
3600
3650
3650
3630
3600
3550
3550
3557
43017
Teaching Salary expenses
1117
1117
1117
1117
1117
1117
1117
1117
1117
1117
1117
1117
13404
Income taxes
0
0
0
0
0
0
0
0
0
0
0
0
0
Principal Loan Payments
0
0
0
0
0
0
0
0
0
0
0
0
0
Interest Loan Payments
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30000
Capital Expenditures
30000
o
0
0
0
0
0
0
0
0
0
0
0
WC Line Dec(Inc)rease
0
0
0
0
0
0
0
0
0
0
0
0
0
Inventory Inc(Dec)rease
0
0
0
0
0
0
0
0
0
0
0
0
0
Owners Draw
0
Total cash Outflows
6718
6718
6728
7293
9869
9919
12495
12475
11414
9819
7243
37250
137938
Net Cash Flow
262
1262
1252
1682
10081
10031
74301
7450
6521
5131
2732
-27275
26562
Opening Cash Balance
30000
30262
31525
32777
34459
44540
54572
62002
69453
75974
81105
83837
30000
Cash Receipts
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
Cash Outflows
6718
6718
6728
7293
9869
9919
12495
12475
11414
9819
7243
37250
137938
Ending Cash Balance
30262
31525
32777
34459
44540
54572
62002
69453
75974
81105
83837
56562
56562
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting in the
format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Breakeven Analysis
For Year Ending
12/31/2015
Projected Revenues
165000
Fixed Costs:
Teaching Salary Expense
12000
Rent
1
Payroll taxes
1404
Travel & Enter.
6000
Prof. & Acctg
6000
Depreciation
6000
Insurance
7200
Interest
0
Rep & Maint.
2400
Util. & Phone
7200
Office Supplies
1200
Other Taxes
0
Other Expense
1000
Total Fixed Costs
50405
Cost of Goods Sold Percentage
53%
Breakeven Sales and Grants Level
138515
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and
presenting in the format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Balance Sheet
For Year Ending
12/31/2015
ASSETS
LIABILITIES
Current Assets
0
Current Liabilities
0
Cash
56562
CPLTD
0
Inventory
10000
Trade Payable
0
Account Receivable
0
Accruals
1000
Excess Cash
0
Taxes Payable
0
Other Current Assets
0
Other
0
Prepaid Expenses / Deposits
500
OWNERS EQUITY Owners Draws
0
Total Current Assets
67062
Total Current Liabilities
1000
Long Term Assets
Long Term Liabilities
Land
0
Term Debt LTP
0
Buildings
120000
Other
0
Equipment
20000
Total Long Term Liabilities
0
Other Fixed Assets
10000
Accum Depreciation
(6000)
Total Liabilities
1000
Total Net Fixed Assets
144000
OWNERS EQUITY Owners Draws
0
Capital
210062
Total Owners Equity
210062
Total Assets
211062
Total Liabilities and Owners Equity
211062
"All financial and business information contained herein was provided by the management of the business. The SBDC
assisted in compiling the data and presenting in the format shown, and makes no claims regarding the accuracy of the
presentation."
AgLantis
Income Statement
For Year Ending
12/31 /2016
1st quarter 2nd quarter 3rd quarter 4th quarter TOTAL
Gross Sales 16800 35000 60200 28000 140000
Grants and Donations 10000 20000 20000 20000 70000
Less return & allowances 168 350 602 280 1400
Net Sales 26632 54650 79598 47720 208600
Cost of Goods 7560 15750 27090 12600 63000
GROSS PROFIT 19072 38900 52508 35120 145600
G & A Expenses
Teaching Salary Expense 4000 4000 4000 4000 16000
Rent 0 1 0 0 1
Payroll taxes 466 466 466 466 1864
Travel & Enter. 3000 3000 3000 3000 12000
Prof. & Acctg 2000 2000 2000 2000 8000
Depreciation 1875 1875 1875 1875 7500
Insurance 2000 2000 2000 2000 8000
Interest 0 0 0 0 0
Rep & Maint. 1000 1000 1000 1000 4000
Util. & Phone 2000 2000 2000 2000 8000
Office Supplies 500 500 500 500 2000
Other Taxes 0 0 0 0 0
Marketing 1143 2170 2473 1325 7111
Other Expenses 4000 4000 4000 4000 16000
Total G &A Exp. 21984 23012 23314 22166 90476
Net Income BT (2912) 15888 29194 12954 55124
Income Taxes 0 0 0 0 0
Net Income AT (2912) 15888 29194 12954 55124
Enter Assumptions Below:
Sales change 40.0% FICA 7.65%
General expense change 5.0% SUTA 1.00%
Cost of Good percentage 45% FUTA 1.00%
Marketing percentage 5.0% State Compensation 2.00%
Return & Allowance % 1.0% Total Tax percentage 11.65%
Income Taxes 0%
All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting in the format shown, and makes no claims
regarding the accuracy of the presentation."
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting in
the format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Cash Flow Statement
For Year
Ending
12/31/16
1st quarter 2nd quarter 3rd
quarter 4th
quarter
Total
Cash Receipts
Sales, Grants and Donations
26632
54650
79598
47720
208600
A/R Sales
0
0
0
0
0
A/R Collections
0
0
0
0
0
Total Cash from Sales
26632
54650
79598
47720
208600
Income from Financing
Interest Income
0
0
0
0
0
Loan Proceeds
0
0
0
0
0
Other Cash Receipts
0
0
0
0
0
Total Cash Receipts
26632
54650
79598
47720
208600
Cash Disbursements
Expenses
Cost of Goods
7560
15750
27090
12600
63000
A/P Purchases
0
0
0
0
0
A/P Payments
0
0
0
0
0
Total Cash Payables
7560
15750
27090
12600
63000
Operating expenses
15643
16671
16973
15825
65112
Salary expenses
4466
4466
4466
4466
17864
Income Taxes
0
0
0
0
0
Loan payments, principal
0
0
0
0
0
Loan payments, interest
0
0
0
0
0
Other Capital Expenses
0
0
0
40000
40000
WC Line Dec(Inc)rease
0
0
0
0
0
Inventory Inc(Dec)rease
0
0
0
5000
5000
Owners Draw
0
0
0
0
0
Total cash disbursements
27669
36887
48529
77891
190976
Net Cash Flow
-1037
17763
31069
-30171
17624
Opening Cash Balance
56562
55525
73288
104357
56562
Cash Receipts
26632
54650
79598
47720
208600
Cash Disbursements
27669
36887
48529
77891
190976
ENDING CASH BALANCE
55525
73288
104357
74186
74186
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting in
the format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Balance Sheet
For Year Ending
12/31/2016
ASSETS
LIABILITIES
Current Assets
0
Current Liabilities
0
Cash
74186
CPLTD
0
Inventory
15000
Trade Payable
0
Account Receivable
0
Accruals
1000
Excess Cash
0
Taxes Payable
0
Other Current Assets
0
Other
0
Prepaid Expenses / Deposits
500
OWNERS EQUITY Owners Draws
0
Total Current Assets
89686
Total Current Liabilities
1000
"All financial and business information contained herein was provided by the management of the business. The
SBDC assisted in compiling the data and presenting in the format shown, and makes no claims regarding the
accuracy of the presentation."
Long Term Liabilities
Land
0
Term Debt LTP
0
Buildings
150000
Other
0
Equipment
90000
Total Long Term Liabilities
0
Other Fixed Assets
10000
Accum Depreciation
(13500)
Total Liabilities
1000
otal Net Fixed Assets
236500
OWNERS EQUITY Owners Draws
0
Capital
325186
Total Owners Equity
325186
otal Assets
326186
Total Liabilities and Owners Equity
326186
"All financial and business information contained herein was provided by the management of the business. The
SBDC assisted in compiling the data and presenting in the format shown, and makes no claims regarding the
accuracy of the presentation."
AgLantis
Income Statement
For Year Ending
12/31/17
G & A Expenses
Teaching Salary Expense
1st quarter
2nd quarter
3rd quarter
4th quarter
TOTAL
Gross Sales
23520
49000
84280
39200
196000
Grant & Donation Income
10000
20000
20000
25000
75000
Less return & allowances
235
490
843
392
1960
Net Sales
33285
68510
103437
63808
269040
Cost of Goods
10584
22050
37926
17640
88200
GROSS PROFIT
22701
46460
65511
46168
180840
G & A Expenses
Teaching Salary Expense
6000
6000
6000
3000
21000
Rent
0
1
0
0
1
Payroll taxes
699
699
699
350
2447
Travel & Enter.
4000
4000
4000
4000
16000
Prof. & Acctg
2500
2500
2500
2500
10000
Depreciation
3125
3125
3125
3125
12500
Insurance
5000
5000
5000
5000
20000
Interest
0
0
0
0
0
Rep & Maint.
2000
2000
2000
2000
8000
Util. & Phone
4000
4000
4000
4000
16000
Office Supplies
700
700
700
700
2800
Other Taxes
0
0
0
0
0
Marketing
1600
3038
3462
1855
9955
Other Expenses
5000
5000
5000
5000
20000
Total G &A Exp.
34624
36063
36486
31530
138703
Net Income BT
11923
10397
29025
14638
42137
Income Taxes
0
0
0
0
0
Net Income AT
(11923)
10397
29025
14638
42137
Enter Assumptions Below
Sales change
General expense change
Cost of Good percentage
Marketing percentage
Return & Allowance %
Income Taxes
40.0%
5.0%
45%
5.0%
1.0%
0%
FICA
SUTA
FICA
State Compensation
Total Tax percentage
7.65%
1.00%
1.00%
2.00%
11.65%
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and makes no
claims regarding the accuracy of the presentation."
"All financial and business information contained herein was provided by the management of the business. The
SBDC assisted in compiling the data and presenting in the format shown, and makes no claims regarding the
accuracy of the presentation."
AgLantis
Cash Flow Statement
For Year Ending
12/31/2017
1st quarter
2nd quarter 3rd quarter
4th quarter
Total
Cash Receipts
Sales, Grants, Donations
33285
68510
103437
63808
269040
A/R Sales
0
0
0
0
0
A/R Collections
0
0
0
0
0
Total Cash from Sales
33285
68510
103437
63808
269040
Income from Financing
Interest Income
0
0
0
0
0
Loan Proceeds
0
0
0
0
0
Other Cash Receipts
0
0
0
0
0
Total Cash Receipts
33285
68510
103437
63808
269040
Cash Disbursements
Expenses
Cost of Goods
10584
22050
37926
17640
88200
A/P Purchases
0
0
0
0
0
A/P Payments
0
0
0
0
0
Total Cash Payables
10584
22050
37926
17640
88200
Operating expenses
24800
26239
26662
25055
102756
Salary expenses
6699
6699
6699
3350
23447
Income Taxes
0
0
0
0
0
Loan payment, principal
0
0
0
0
0
Loan payment, interest
0
0
0
0
0
Other Capital Expenses
0
0
0
50000
50000
WC Line Dec(inc)rease
0
0
0
0
0
Inventory Inc(Dec)rease
0
0
0
0
0
Owners Draw
0
0
0
0
0
Total cash disbursements
42083
54988
71287
96045
264403
Net Cash Flow
-8798
13522
32150
-32237
4637
Opening Cash Balance
74186
65388
78910
111060
74186
Cash Receipts
33285
68510
103437
63808
269040
Cash Disbursements
42083
54988
71287
96045
264403
ENDING CASH BALANCE
65388
78910
111060
78823
78823
"All financial and business information contained herein was provided by the management of the business. The
SBDC assisted in compiling the data and presenting in the format shown, and makes no claims regarding the
accuracy of the presentation."
AgLantis
Balance Sheet
For Year Ending
12/31/2017
ASSETS
LIABILITIES
Current Assets
0
Current Liabilities
0
Cash
78823
CPLTD
0
Inventory
15000
Trade Payable
0
Account Receivable
0
Accruals
1000
Excess Cash
0
Taxes Payable
0
Other Current Assets
0
Other
0
Prepaid Expenses / Deposits
500
OWNERS EQUIT Owners Draw
0
Total Current Assets
94323
Total Current Liabilities
1000
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling
the data and presenting in the format shown, and makes no claims regarding the accuracy of the presentation."
Long Term Liabilities
Land
0
Term Debt LTP
0
Buildings
180000
Other
0
Equipment
100000
Total Long Term Liabilities
0
Other Fixed Assets
20000
Accum Depreciation
(26000)
Total Liabilities
1000
Total Net Fixed Assets
274000
OWNERS EQUIT Owners Draw
0
Capital
367323
Total Owners Equity
367323
Total Assets
368323
Total Liabilities and Owners E
368323
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling
the data and presenting in the format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Income Statement
For Year Ending
12/31/2018
Total
Gross Sales
245000
Grant and Donation Income
75000
Less return & allowances
2450
Net Sales
317550
Cost of Goods
110250
GROSS PROFIT
207300
G & A Expenses
Teaching Salary Expense
22050
Rent
1
Payroll taxes
2569
Travel & Enter.
16800
Prof. & Acctg
13000
Depreciation
15000
Insurance
21000
Interest
0
Rep & Maint.
8400
Util. & Phone
16800
Office Supplies
2940
Other Taxes
0
Marketing
15878
Other Expenses
21000
Total G &A Exp.
155438
Net Income BT
51862
Income Taxes
0
Net Income AT
51862
Enter Assumptions Here:
Sales change
General expense change
Cost of Good percentage
Marketing percentage
Return & Allowance %
Income Taxes
25.0%
FICA 7.65%
SUTA 1.00%
FUTA 1.00%
State Compensation 2.00%
Total Tax percentage 11.65%
5.0%
45%
5.0%
1.0%
0%
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and makes no
claims regarding the accuracy of the presentation."
AgLantis
Cash Flow Statement
For Year Ending
12/31/2018
Cash Receipts
Sales, Grants, Donations 317550
A/R Sales 0
A/R Collections 0
Total Cash from Sales 317550
Income from Financing
Interest Income 0
Loan Proceeds 0
Other Cash Receipts 0
Total Cash Receipts 317550
Cash Disbursements
Expenses
Cost of Goods
110250
A/P Purchases
0
A/P Payments
0
Total cash payables
110250
Operating expenses
115819
Salary expenses
24619
Income Taxes
0
Loan payment, principal
0
Loan payment, interest
0
Other Capital Expenses
60000
WC Line Dec(Inc)rease
0
Inventory Inc(Dec)rease
0
Owners Draw
0
Total cash disbursements
310688
Net Cash Flow
6862
Opening Cash Balance
78823
Cash Receipts
317550
Cash Disbursements
310688
ENDING CASH BALANCE
85685
Enter assumption:
A/R percentage
A/R Turns (days to collect)
A/P percentage
A/P Turns (days to pay)
0%
0
0%
0
Teaching building started
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and makes no
claims regarding the accuracy of the presentation."
AgLantis
Balance Sheet
For Year Ending
12/31/2018
ASSETS
LIABILITIES
Current Assets
0
Current Liabilities
0
Cash
85685
CPLTD
0
Inventory
20000
Trade Payable
0
Account Receivable
0
Accruals
1000
Excess Cash
0
Taxes Payable
0
Other Current Assets
0
Other
0
Prepaid Expenses / Deposit
500
OWNERS EQUITY Owners Draws
0
Total Current Assets
106185
Total Current Liabilities
1000
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and
makes no claims regarding the accuracy of the presentation."
Long Term Liabilities
Land
0
Term Debt LTP
0
Buildings
225000
Other
0
Equipment
110000
Total Long Term Liabilities
0
Other Fixed Assets
20000
Accum Depreciation
-41000
Total Liabilities
1000
Total Net Fixed Assets
314000
OWNERS EQUITY Owners Draws
0
Capital
419185
Total Owners Equity
419185
Total Assets
420185
Total Liabilities and Owners Equity
420185
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and
makes no claims regarding the accuracy of the presentation."
AgLantis
Income Statement
For Year Ending
12/31/2019
Total
Gross Sales
306250
Grant and Donation Income
75000
Less: Ret. & Allow.
3063
Net Sales
378187
Cost of Goods
137813
GROSS PROFIT
240374
G & A Expenses
Teaching Salary Expense
23153
Rent
1
Payroll taxes
2697
Travel & Enter.
17640
Prof. & Acctg.
14000
Depreciation
17750
Insurance
22050
Interest
0
Rep & Maint.
10000
Util. & Phone
17640
Office Supplies
3087
Other Taxes
0
Marketing
18909
Other Expenses
22050
Total G &A Exp.
168977
Net Income BT
71397
Income Taxes
0
Net Income AT
71397
Enter Assumptions Here
Sales change
General expense change
Cost of Good percentage
Marketing percentage
Return & Allowance %
Income Taxes
25.0%
FICA 7.65%
SUTA 1.00%
FUTA 1.00%
State Compensation 2.00%
Total Tax percentage 11.65%
5.0%
45%
5.0%
1.0%
0%
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and makes
no claims regarding the accuracy of the presentation."
AgLantis
Cash Flow Statement
For Year Ending
12/31/2019
Cash Receipts
Sales, Grants, Donations 378187
A/R Sales 0
A/R Collections 0
Total Cash from Sales 378187
Income from Financing
Interest Income 0
Loan Proceeds 0
Other Cash Receipts 0
Total Cash Receipts 378187
Cash Disbursements
Expenses
Cost of Goods
137813
A/P Purchases
0
A/P Payments
0
Total cash payables
137813
Operating expenses
125377
Salary expenses
25850
Income Taxes
0
Loan payment, principal
0
Loan payment, interest
0
Other Capital Expenses
80000
WC Line Dec(Inc)rease
0
Inventory Inc(Dec)rease
0
Owners Draw
0
Total cash disbursements
369040
Net Cash Flow
9147
Opening Cash Balance
85685
Cash Receipts
378187
Cash Disbursements
369040
ENDING CASH BALANCE
94832
Enter Assumption:
A/R percentage 0%
A/R Turns (Days to collect) 0
A/P percentage 0%
A/P Turns (Days to pay) 0
teaching building continued
"All fiancial and business information contained herein was provided by the management of the business.
The SBDC assisted in compiling the data and presenting in the format shown, and makes no claims
regarding the accuracy of the presentation."
AgLantis
Balance Sheet
For Year Ending
12/31/2019
ASSETS
LIABILITIES
Current Assets
0
Current Liabilities
0
Cash
94832
CPLTD
0
Inventory
20000
Trade Payable
0
Account Receivable
0
Accruals
1000
Excess Cash
0
Taxes Payable
0
Other Current Assets
0
Other
0
Prepaid Expenses / Deposits
500
OWNERS EQUITY Draws
0
Total Current Assets
115332
Total Current Liabilities
1000
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and makes
no claims regarding the accuracy of the presentation."
Long Term Liabilities
Land
0
Term Debt LTP
0
Buildings
280000
Other
0
Equipment
135000
Total Long Term Liabilities
0
Other Fixed Assets
20000
Accum Depreciation
(58750)
Total Liabilities
1000
Total Net Fixed Assets
376250
OWNERS EQUITY Draws
0
Capital
490582
Total Owners Equity
490582
Total Assets
491582
Total Liabilities and Owners Equity
491582
"All financial and business information contained herein was provided by the management of the
business. The SBDC assisted in compiling the data and presenting in the format shown, and makes
no claims regarding the accuracy of the presentation."
Opening Cash Balance
30000
30262
31525
32777
34459
44540
AgLantis
62002
69453
75974
81105
83837
30000
56562
74186
78823
85685
Cash Receipts
6980
7980
7980
8975
19950
Cash
Flow Statement
19925
17935
14950
9975
9975
164500
208600
269040
317550
378187
Cash Outflows
6718
6718
6728
For
Year
Ending
12495
12475
11414
9819
7243
37250
137938
190976
264403
310688
369040
Ending Cash Balance
30262
31525
32777
34459
44540
54572
62002
69453
75974
81105
12/31/15
12/31/16
12/31/17
12/31/18
12/31/19
Total
94832
Jan -15
Feb -15
Mar -15 I
Apr -15 I
May -15 I
Jun -15 I
Jul -15 I Aug
-15 I
Sep -15 I
Oct -15 I
Nov -15 I
Dec -15
Cash Receipts
Sales, Grants, Donations
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
208600
269040
317550
378187
Credit Sales
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Collections
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
208600
269040
317550
378187
Financing Income
Interest Income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Loan Proceeds
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Other Cash Receipts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Cash Receipts
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
208600
269040
317550
378187
Cash Outflows
Cost of Goods
2061
2061
2061
2576
5152
5152
7728
7728
6697
5152
2576
2576
51517
63000
88200
110250
137813
Total Cash Payments
2061
2061
2061
2576
5152
5152
7728
7728
6697
5152
2576
2576
51517
63000
88200
110250
137813
Operating expenses
3540
3540
3550
3600
3600
3650
3650
3630
3600
3550
3550
3557
43017
65112
102756
115819
125377
Salary expenses
1117
1117
1117
1117
1117
1117
1117
1117
1117
1117
1117
1117
13404
17864
23447
24619
25850
Income taxes
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Principal Loan Payments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Interest Loan Payments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Capital Expenditures
0
0
0
0
0
0
0
0
0
0
0
30000
30000
40000
50000
60000
80000
WC Line Dec(Inc)rease
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Inventorylnc(Dec)rease
0
0
0
0
0
0
0
0
0
0
0
0
0
5000
5000
10000
10000
Owners Draw
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total cash Outflows
6718
6718
6728
7293
9869
9919
12495
12475
11414
9819
7243
37250
137938
190976
264403
310688
369040
Net Cash Flow
262
1262
1252
1682
10081
10031
7430
7450
6521
5131
2732
-27275
26562
17624
4637
6862
9147
Opening Cash Balance
30000
30262
31525
32777
34459
44540
54572
62002
69453
75974
81105
83837
30000
56562
74186
78823
85685
Cash Receipts
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
208600
269040
317550
378187
Cash Outflows
6718
6718
6728
7293
9869
9919
12495
12475
11414
9819
7243
37250
137938
190976
264403
310688
369040
Ending Cash Balance
30262
31525
32777
34459
44540
54572
62002
69453
75974
81105
83837
56562
56562
74186
78823
85685
94832
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and presenting in the
format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Income Statement
For Year Ending
12/31/15
12/31/16
12/31/17
12/31/18
12/31/19
%
%
%
%
%
Gross Sales
165000
100.00%
210000
100.00%
271000
100.00%
320000
100.00%
381250
100.00%
Less: Ret & Allow
500
0.30%
1400
0.67%
1960
0.72%
2450
0.77%
3063
0.80%
Net Sales
164500
99.70%
208600
99.33%
269040
99.28%
317550
99.23%
378187
99.20%
Cost of Goods
51517
31.22%
63000
30.00%
88200
32.55%
110250
34.45%
137813
36.15%
GROSS PROFIT
112983
68.47%
145600
69.33%
180840
66.73%
207300
64.78%1
240374
63.05%
G & A Expenses
12000
7.27%
16000
7.62%
21000
7.75%
22050
6.89%
23153
6.07%
Teaching Salary ExpenSE
Rent
1
0.00%
1
0.00%
1
0.00%
1
0.00%
1
0.00%
Payroll taxes
1404
0.85%
1864
0.89%
2447
0.90%
2569
0.80%
2697
0.71%
Travel & Enter.
6000
3.64%
12000
5.71%
16000
5.90%
16800
5.25%
17640
4.63%
Prof. & Acctg.
6000
3.64%
8000
3.81%
10000
3.69%
13000
4.06%
14000
3.67%
Depreciation Exp.
6000
3.64%
7500
3.57%
12500
4.61%
15000
4.69%
17750
4.66%
Insurance Exp.
7200
4.36%
8000
3.81%
20000
7.38%
21000
6.56%
22050
5.78%
Interest
0
0.00%
0
0.00%
0
0.00%
0
0.00%
0
0.00%
Rep & Maint.
2400
1.45%
4000
1.90%
8000
2.95%
8400
2.63%
10000
2.62%
Util. & Phone
7200
4.36%
8000
3.81%
16000
5.90%
16800
5.25%
17640
4.63%
Office Supplies
1200
0.73%
2000
0.95%
2800
1.03%
2940
0.92%
3087
0.81%
Other Taxes
0
0.00%
0
0.00%
0
0.00%
0
0.00%
0
0.00%
Marketing
1016
0.62%
7111
3.39%
9955
3.67%
15878
4.96%
18909
4.96%
Other Expense
12000
7.27%
16000
7.62%
20000
7.38%
21000
6.56%
22050
5.78%
Total G &A Exp.
62421
37.83%1
90476
43.08%
138703
1 51.18%
155438
48.57%
168977
44.32%
Net Income BT
50562
30.64%
55124
26.25%
42137
15.55%
51862
16.21%
71397
18.73%
Income Taxes
0
0.00%
0
0.00%
0
0.00%
0
0.00%1
01
0.00%
Net Income AT
50562
30.64%
55124
26.25%
42137
15.55%
51862
16.21%1
713971
18.73%
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and
presenting in the format shown, and makes no claims regarding the accuracy of the presentation."
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and
presenting in the format shown, and makes no claims regarding the accuracy of the presentation."
AgLantis
Income
Statement
For Year
Ending
12/31/15
12/31/16
12/31/17
12/31/18
12/31/19
Jan -15
Feb -15
Mar -15
Apr -15
May -15
Jun -15
Jul -15
Aug -15
Sep -15
Oct -15
Nov -15
Dec -15
Gross Sales
4000
4000
4000
5000
10000
10000
15000
15000
13000
10000
5000
5000
100000
140000
196000
245000
306250
Grants & Donations
3000
4000
4000
4000
10000
10000
5000
5000
5000
5000
5000
5000
65000
70000
75000
75000
75000
Less: Ret & Allow
20
20
20
25
50
50
75
75
65
50
25
25
500
1400
1960
2450
3063
Net Sales
6980
7980
7980
8975
19950
19950
19925
19925
17935
14950
9975
9975
164500
208600
269040
317550
378187
Cost of Goods
2061
2061
2061
2576
5152
5152
7728
7728
6697
5152
2576
2576
51517
63000
88200
110250
137813
GROSS PROFIT
4919
5919
5919
6399
14798
14798
12197
12197
11238
9798
7399
7399
112983
145600
180840
207300
240374
G & A Expenses
Teaching Salary ExpensE
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
16000
21000
22050
23153
Rent
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
Payroll taxes
117
117
117
117
117
117
117
117
117
117
117
117
1404
1864
2447
2569
2697
Travel& Enter.
500
500
500
500
500
500
500
500
500
500
500
500
6000
12000
16000
16800
17640
Prof.& Acctg.
500
500
500
500
500
500
500
500
500
500
500
500
6000
8000
10000
13000
14000
Depreciation Exp.
500
500
500
500
500
500
500
500
500
500
500
500
6000
7500
12500
15000
17750
Insurance Exp.
600
600
600
600
600
600
600
600
600
600
600
600
7200
8000
20000
21000
22050
Interest
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Rep & Maint.
200
200
200
200
200
200
200
200
200
200
200
200
2400
4000
8000
8400
10000
Util.& Phone
600
600
600
600
600
600
600
600
600
600
600
600
7200
8000
16000
16800
17640
Office Supplies
100
100
100
100
100
100
100
100
100
100
100
100
1200
2000
2800
2940
3087
Other Taxes
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Marketing
40
40
50
100
100
150
150
130
100
50
50
56
1016
7111
9955
15878
18909
Other Expenses
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
16000
20000
21000
21000
Total G &A Exp.
5157
5157
5167
5217
5217
5267
5267
5247
5217
5167
5167
5174
62421
90476
138703
1554381
168977
Net Income BT
(238)
762
752
1182
9581
9531
6930
6950
6021
4631
2232
2225
50562
55124
42137
51862
71397
Income Taxes
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net Income AT
(238)
762
752
1182
9581
9531
6930
6950
6021
4631
2232
2225
50562
55124
42137
51862
71397
"All financial and business information contained herein was provided by the management of the business. The SBDC assisted in compiling the data and
presenting in the format shown, and makes no claims regarding the accuracy of the presentation."
ASSETS
Current Assets
Cash
Inventory
Account Receivable
Excess Cash
Other Current Assets
Prepaid / Deposits
Total Current Assets
AgLantis
Balance Sheet
For Year Ending
1/11/15 12/31 /15 1 12/31/16 112/31/17 112/31/18 112/31/19
30000
56562
74186
78823
85685
94832
10000
10000
15000
15000
20000
20000
0
0
0
0
0
0
100000
0
0
0
0
0
0
0
0
0
0
0
500
500
500
500
500
500
40500
1 67062
1 89686
1 94323
1 106185
1 115332
Land
0
0
0
0
0
0
Buildings
90000
120000
150000
180000
225000
280000
Equipment
20000
20000
90000
100000
110000
135000
Other Fixed Assets
10000
10000
10000
20000
20000
20000
Accum Depreciation
0
6000)
13500)
(26000)
41000)
(58750)
Total Net Fixed Assets
120000
144000
236500
274000
314000
376250
Total Assets
LIABILITIES
Current Liabilities
CPLTD
Trade Payable
Accruals
Taxes Payable
Other
Total Current Liabilities
Long Term Liabilities
Term Debt LTP
Other
Total Long Term Liabilities
Total Liabilities
OWNERS EQUITY
Capital
Total Owners Equity
Total Liabilities and Owners Equity
160500 1 211062 1 326186 1 368323 1 420185 1 491582 1
0
0
0
0
0
0
0
0
0
0
0
0
1000
1000
1000
1000
1000
1000
0
0
0
0
0
0
0
0
0
0
0
0
1000
1 1000
1000
1 1000
1000
1 1000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1000
1000
1000
1000
1000
1000
159500 210062 325186 367323 4191851 490582
159500 210062 325186 367323 4191851 490582
160500 211062 326186 368323 4201851 491582
"All financial and business information contained herein was provided by the management of the business. The SBDC
assisted in compiling the data and presenting in the format shown, and makes no claims regarding the accuracy of the
presentation."
Appendix B: AgLantis
Organizational Chart
AgLantis Board
President: Carolyn Phinney
Vice President: Behallyn Black
Treasurer: Steve Hoeft
Secretary: John Mercurio
Attorney
Internship Executive
Manger Director
Greenhouse
Manager
Farm
Manager
Accountant
Education
Manager
Farmer
Advisory
Boards
Educa- Fund- NRCS College RCD Safety Local Architects/ Greenhouse Wpg Local
tion raising Liaison Committee Growers Builders Experts Business
Appendix C: AgLantis
Emergency Response Plan
Ready Business, Emergency Response Plan
Company Name AgLantis
Address 62 Scenic Drive
Orinda, CA 94563
Telephone 925- 788 -7374 cell
Contact Name Carolyn Phinney Title President
Last Revision Date April 15, 2014
Policy and Organizational Statements
Identify the goals and objectives for the emergency response plan.
Define what your emergency response team is expected to do during an emergency
(e.g., evacuate employees and visitors, provide first aid, etc.)
Identify any regulations covered by your plan (e.g., OSHA, fire code, etc.)
ready.gov /business
-1-
Ready Business,
Evacuation Plan
Emergency Response Plan
Evacuation may be required if there is a fire in the building or other hazard. The evacuation team will direct
the evacuation of the building and account for all employees outside at a safe location.
Employees will be warned to
Emergency Horn Blown 3 Times
evacuate the building using
Bethallyn Black or Carolyn Phinney or Person Responsible that day.
the following system:
N/A
Employees should assemble at the
Entrance Gate on Imhoff Drive
following location for accounting
N/A
by the evacuation team:
Bethallyn Black or Carolyn Phinney or person in charge that day will assign
(Post a map showing the location(s) in a conspicuous location for all employees to see.)
Person who will bring the employee Farm Manager Bethallyn Black
roster and visitor log to the evacuation or President Carolyn Phinney
assembly area to account for all or Primary Person Responsible That Day
evacuees. The evacuation team leader Take sign in sheet to gate and check that all are present
will be informed if anyone is missing
or injured.
Evacuation Team
Name / Location
Evacuation Team Leader
Bethallyn Black or Carolyn Phinney or Person Responsible that day.
Floor Wardens (one for each floor)
N/A
Searchers (one per floor)
N/A
Stairwell and Elevator Monitors
N/A
Aides for Persons with Disabilities
Bethallyn Black or Carolyn Phinney or person in charge that day will assign
aides or be the aides themselves
Assembly Area Monitors
Bethallyn Black or Carolyn Phinney or person in charge that day
(account for evacuees at the
assembly area and inform incident
commander if anyone is missing
or injured)
ready.gov /business
-2-
V
Ready Business,
Severe Weather /Tornado Sheltering Plan
Emergency Response Plan
If a tornado warning is issued, broadcast a warning throughout all buildings instructing everyone to move to shelter.
Shelter -In -Place Team Assignments
Name / Location
Team Leader
Bethallyn Black or Carolyn Phinney or person in charge that day
Person to monitor weather sources
No shelter in place for bad weather, only for earthquake.
for updated emergency instructions
and broadcast warning if issued by
weather services
"
Persons to direct personnel outside
N/A
to enter the building
N/A
Persons to direct employees to
N/A
designated tornado shelter(s)
"
Tornado Warning System & Tornado Shelter Locations
Location of tornado warning
system controls
N/A
Location of tornado shelters
N/A
Shelter -In -Place Plan
If warned to "shelter -in- place" from an outside airborne hazard, a warning shoudl be broadcast and all employees
should move to shelter.
Shelter -In -Place Team Assignments
Name / Location
Team Leader
Bethallyn Black or Carolyn Phinney or person in charge that day.
Direct personnel outside to enter
N/A
the building; then close exterior
doors
Shutdown ventilation system and
"
close air intakes
Move employees to interior spaces
N/A
above the first floor (if possible)
Person to monitor news sources for
"
updated emergency instructions
Assembly Area Monitors (to account
"
for evacuees at the assembly area)
Shelter -In -Place Shutdown of Ventilation System
Location of controls to shutdown
N/A
ventilation system:
Location of air handling units,
N/A
fan rooms, or air intakes:
ready.gov /business
-3-
MAP-
Ready Business.
Lockdown Plan
Emergency Response Plan
Persons trained to use the warning system to warn persons to "lockdown"
Name Location
Instructions for Broadcasting Warnings
Where to Access the Warning System
(e.g., telephone, public address system, etc.)
Emergency Horn in equipment
Instructions for using the system
Blow Horn 3 Times to have people assemble at gate on Imhoff Drive.
ready.gov /business
-4-
V
Ready Business.
Medical Emergency Plan
Emergency Response Plan
If a medical emergency is reported, dial 9 -1 -1 and request an ambulance. Provide the following
information:
• Number and location of victim(s)
• Nature of injury or illness
• Hazards involved
• Nearest entrance (emergency access point)
Alert trained employees (members of the medical response team) to respond to the victim's location and
bring a first aid kit or AED.
Personnel Trained to Administer First Aid, CPR, or use Automated External Defibrillator (AED)
Name
Location / Telephone
Bethallyn Black
925 - 899 -8030
Carolyn Phinney
925 - 788 -7374
Steve Hoeft
925 - 963 -9482
John Mercurio
925 - 876 -0327
Marti Carlson
510 - 295 -3863
Locations of First Aid Kits and Automated External Defibrillator(s)
Locations of First Aid Kits and
"Universal Precautions" kit
(used to prevent exposure to body fluids)
Locations of Automated
External Defibrillator(s) (AEDs)
Procedures
• Only trained responders should provide first aid assistance.
• Do not move the victim unless the victim's location is unsafe.
• Control access to the scene.
• Take "universal precautions" to prevent contact with body fluids and exposure to
bloodborne pathogens.
• Meet the ambulance at the nearest entrance or emergency access point; direct them to victim(s).
ready.gov /business
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V
Ready Business..
Fire Emergency Plan
Emergency Response Plan
If a fire is reported, pull the fire alarm, (if available and not already activated) to warn occupants to
evacuate. Then Dial 911 to alert Fire Department. Provide the following information:
• Business name and street address
• Nature of fire
• Fire location (building and floor or)
• Type of fire alarm (detector, pull station, sprinkler waterfiow)
• Location of fire alarm (building and floor)
• Name of person reporting fire
• Telephone number for return call
Evacuation team to direct evacuation of employees and visitors.
Procedures
• Evacuate building occupants along evacuation routes to primary assembly areas outside.
• Redirect building occupants to stairs and exits away from the fire.
• Prohibit use of elevators.
• Evacuation team to account for all employees and visitors at the assembly area.
• Meet Fire Department Incident Commander (IC). Inform the IC if everyone has been accounted
for and if there are any injuries. Provide an update on the nature of the emergency and actions
taken. Provide building floor plans, keys and other assistance as requested.
• Assign personnel to verify that fire protection systems are operating normally and to operate
building utility and protection systems as directed by the fire department.
Property Conservation
Identify preparations before a forecast event such as severe weather.
Identify how you will assess damage; salvage undamaged goods; and cleanup the building following
an incident.
Identify the contractors, equipment, and materials that would be needed. Update the resource table
at the end of this plan.
ready.gov /business
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Ready Business,
Annexes
Hazard or Threat - specific
Emergency Response Plan
Instructions: Review the following list of hazards and identify those hazards that are foreseeable.
Review the links to information provided within the Ready Business website to develop specific
emergency procedures.
Natural hazards (geological, meteorological, and biological)
Geological hazards
• Earthquake
• Tsunami
• Volcano
• Landslide, mudslide, subsidence
Meteorological Hazards
• Flood, flash flood, tidal surge
• Water control structure /dam /levee failure
• Drought
• Snow, ice, hail, sleet, arctic freeze
• Windstorm, tropical cyclone, hurricane, tornado,
dust storm
• Extreme temperatures (heat, cold)
• Lightning strikes (Wildland fire following)
Biological hazards
• Foodborne Illnesses
• Pandemic /Infectious /communicable disease
(Avian flu, H1 N1, etc.)
Technology caused event
• Utility interruption or failure (telecommunications,
electrical power, water, gas, steam, HVAC,
pollution control system, sewerage system, other
critical infrastructure)
Human - caused events (accidental and intentional)
Accidental
• Hazardous material spill or release
• Nuclear Power Plant Incident (if located in
proximity to a Nuclear power plan)
• Explosion /Fire
• Transportation accident
• Building /structure collapse
• Entrapment and or rescue (machinery,
confined space, high angle, water)
• Transportation Incidents (Motor Vehicle,
Railroad, Watercraft, Aircraft, Pipeline)
Intentional
• Robbery
• Lost Person, Child Abduction, Kidnap,
Extortion, Hostage Incident,
Workplace violence
• Demonstrations, Civil disturbance
• Bomb threat, Suspicious package
• Terrorism
ready.gov /business
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V
Ready Business.,
Appendices
Emergency Response Teams
Emergency Response Plan
Identify the members of emergency response teams not identified elsewhere.
• Facilities or building management staff familiar with building utility and protection systems and
those who may assist with property conservation activities.
• Security
• Others trained to use fire extinguishers, clean up small spills of hazardous materials.
Team Member Name Location Work Telephone Home /Cell Telephone
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A2
Ready Business,
Public Emergency Services & Contractors
Emergency Response Plan
Emergency Service
Name
Emergency Telephone
Business Telephone
Fire Department
N/A
911
N/A
Emergency Medical Services
Blow Horn 3 Times
911
Electronic
Police Department
Martinez 925) 372 -3400
911
County Sheriff (925) 646 -2402
Emergency Management Agency
Cell phones of parties present
Two -way radio
Hospital
Public Health Department
State Environmental Authority
National Response Center (EPA)
Electrician
Plumber
Fire Protection Contractor
Elevator Service
N/A
Hazardous Materials Cleanup
Cleanup / Disaster Restoration
Warning, Notification & Communications Systems
The following systems are used to warn employees to take protective action (e.g., evacuate, move to
tornado shelter, shelter -in- place, or lockdown) and provide them with information. The Communications
capabilities enable members of our emergency team to communicate with each other and others.
ready.gov /business
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Warning System
Fire Alarm
N/A
Public Address
N/A
Other (describe)
Blow Horn 3 Times
Notification System
Electronic
N/A
Telephone call tree
email tree
Communications Capabilities
Telephone
Cell phones of parties present
Two -way radio
ready.gov /business
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R2
Fire Protection Systems
Emergency Response Plan
Document the fire protection systems including the types of systems, location, area, or hazard protected,
and instructions.
System Type
Location
Access Point / Instructions
Sprinkler System
Control Valve
N/A
Control Valve
N/A
Control Valve
N/A
Fire Pump
N/A
Special Extinguishing Systems
Computer Room
N/A
Kitchen
N/A
Manufacturing Area
N/A
Revision History
Revision No. Date Description of Changes Authorization
Plan Distribution & Access
The Plan will be distributed to members of the emergency response team and department heads. A master
copy of the document should be maintained by the emergency response team leader. The plan will be
available for review by all employees.
Provide print copies of this plan within the room designated as the emergency operations center (EOC).
Multiple copies should be stored within the facility EOC to ensure that team members can quickly review
roles, responsibilities, tasks, and reference information when the team is activated.
An electronic copy of this Plan should be stored on a secure and accessible website that would allow team
member access if company servers are down.
Electronic copies should also be stored on a secured USB flash drive for printing on demand.
ready.gov /business
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AgLantis ERP Long Answers
Page 1
Identify the goals...
The goal of the AgLantis ERP is to respond in an emergency at the level appropriate to the skills and training of those
present. The emergency response team will be the lead individuals of AgLantis until police, fire or other professionals
arrive. All board members, employees and primary persons responsible that day are required to be familiar with the
plan.
Define what your emergency...
The emergency response team will be the site coordinators for the necessary actions required by an emergency. They
will determine actions necessary to protect and treat all individuals present. They will provide first aid to the level of
their abilities and training.
Page 6
Identify preparations...
In the event of severe weather, all individuals working outside will be required to seek shelter indoors, or leave the
property. In extreme cases, all individuals will leave the property.
Identify how you will...
Upon cessation of an extreme event causing damage, all board members, available employees and volunteers will be
summoned to participate in appropriate assessment and salvage actions.
Page 7
Identified foreseeable hazards:
Airplane Crash
Earthquake
Hazardous material spill (on Hwy 4 or the CCCSD plant or Tesoro)
Transportation accident (on Hwy -4)
Burglary, Robbery, Assault
Other accident
Wild animal bite
Item 7.a.
Attachment 4
Proposed Resolution
Attachment 4
RESOLUTION NO. 2014- 02 O
A RESOLUTION OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
AUTHORIZING STAFF TO RECORD A MEMORANDUM OF LEASE FOR COCO SAN
SUSTAINABLE FARM
WHEREAS, the District owns approximately thirty -three (33) acres of land located
between Grayson and Walnut Creeks, Highway 4, and Imhoff Drive adjacent to the
District's wastewater treatment plant in Martinez, California ( "Property "), as shown in
Exhibit A; and
WHEREAS, the Property is more specifically identified as APN 159 - 140 -051; and
WHEREAS, the District has received a proposal from AgLantis, a public benefit
corporation, for lease of a portion of the property to create a sustainable urban farm with
teaching facilities on the Kiewit site; and
WHEREAS, the Board of Directors held a noticed public hearing on April 17, 2014 to
determine whether the proposed lease of the Property is compatible with surrounding
uses and zoning and land use regulations, is currently unneeded for the performance of
the District's purposes, and would provide a public benefit.
THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa
Sanitary District as follows:
That staff is authorized to record a Memorandum of Lease Agreement in the
office of the Recorder of Contra Costa County.
2. That each portion of this resolution is severable. Should any portion of this
resolution be adjudged to be invalid and unenforceable by a body of competent
jurisdiction, then the remaining resolution portions shall be and continue in full
force and effect.
PASSED AND ADOPTED this 3rd day of July, 2014, by the Board of Directors of the
Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
David R. Williams
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Resolution No. ,?01# OZO
Central Contra Costa Sanitary District
Page 2 of 2
COUNTERSIGNED:
Elaine R. Boehme, CIVIC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm, Esq.
Counsel for the District