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GRAZING LEASE <br />THIS GRAZING LEASE ("Lease") is entered into this day of , 2008 <br />between the City of Pleasanton (City or Lessor) and Al Spotorno (collectively, Spotorno or <br />Lessee). <br />RECITALS <br />A. City owns certain open space property, commonly known as Pastures # 1 and #2, <br />adjacent to property owned by Spotorno, and the City is willing to lease such Pastures to <br />Spotorno on the terms and conditions as provided in the Lease. <br />B. Spotorno desires to lease the Pastures and is agreeable to the terms and conditions of <br />this Lease. <br />NOW, THEREFORE, in consideration of the promises herein, the parties agree as <br />follows: <br />1. Lessor leases to Lessee for cattle pasturage/grazing purposes the real property <br />depicted as Pasture #l, approximately 62 acres, and Pasture #2, approximately 41 acres, in <br />Exhibit A to this Lease (the Pastures) for cattle grazing as provided in the City of Pleasanton <br />Happy Valley Golf Course Grazing /Resource Management Plan by Sage Associates dated Nov. <br />2001 (the Grazing /Resource Management Plan). <br />2. Because the significant amount offence repair work needed at the Pastures which <br />Lessee will need to carry-out to make the Pastures usable by cattle, as well as the requirement <br />that the City subject the Pastures to a burn program (which would have a cost to City) if there <br />was no grazing program, City shall charge Lessee rent as follows: <br />(a) for years one to three of the term of this Lease, Lessee shall pay no rent, <br />but be required to fix and maintain the Pasture fences, and graze cattle on the <br />Pastures as required by this Lease and the Grazing /Resource Management <br />Plan; and <br />(b) for years four and five of this Lease, so long as Lessee has cattle graze the <br />Pastures as required by the terms of this Lease and the Grazing/ Resource <br />Management Plan, Lessee shall pay one-half (1/2) of the a variable rate <br />charged by the City and County of San Francisco Public Utilities Commission <br />(Commission) for similar watershed property that the Commission leases for <br />grazing purposes in Alameda County; the rate shall be based on animal unit <br />months (AUM), i.e., the number of cattle on the property for certain periods <br />of time. <br />3. Lessee shall keep no more than twenty-two (22) units on the Pastures at any time, <br />unless prior written approval is given to the Lessee from the City's Rangeland Manager and the <br />Page 1 of 6 <br />