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HomeMy WebLinkAboutAli, Michael - 1998-11-02Nr 6F > ✓ > Dept. ID ED 13-38 Page 1 of 2 Meeting Date: 11/4/2013 wr 011 MEETING DATE: 11/4/2013 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Fred A. Wilson, City Manager Janeen Laudenback, Director of Community Services SUBJECT: Approve and authorize execution of an Amendment to extend the Lease Agreement between the City and Michael Ali, dba Pier Plaza Beach Concession Statement of Issue: Transmitted for City Council consideration is an Amendment to Lease Agreement between the City of Huntington Beach and Michael Ali, dba Pier Plaza Beach Concession. The proposed Amendment would activate the third and final five (5) year lease extension as specified in the original Lease Agreement. Financial Impact: Approval of the proposed Amendment does not affect rental rates. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the "Amendment to Lease Agreement Between the City of Huntington Beach and Michael Ali, dba Pier Plaza Beach Concession." Alternative Action(s): Do not approve the Agreement and direct staff accordingly. Analysis: On November 2, 1998, the City Council approved and executed a five-year lease with Michael Ali for the operation of the Pier Plaza Beach Concession Stand, otherwise known as Zack's Pier Plaza. Lease terms specify that the Lease may be extended for three (3) additional periods of five (5) years by mutual agreement of the parties. Currently, the Lease term is in its second five (5) year extension period and is set to expire on October 31, 2013. The Lessee has requested the third and final five (5) year extension be approved and authorized by the City. Based upon Lessee's qualifications and previous experience with the City, staff recommends approval of the proposed Amendment. HB -123- Item 11. - 1 Dept. ID ED 13-38 Page 2 of 2 Meeting Date: 11/4/2013 Environmental Status: Not applicable. Strategic Plan Goal: Improve the City's infrastructure Attachment(s): 1. "Amendment to Lease Agreement between the City of Huntington Beach and Michael Ali, DBA Pier Plaza Beach Concession" Item 11. - 2 HB -124- V C a t �� . a - r`'s� X t'F� c�.r yr ;dY � � ., 't�,,.j z. +Za �y { f9 S` .� r� � � '} t1 r 2llr..,.�,, y � ��; � r( r� .t: :.1 L-� ;._,�?' ,..f � d +� i �&�, ice. �.: t:'� h,s i�, F� AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICIlAEt-ALI, DBA PIER PLAZA BEACH CONCESSION THIS AMENDMENT is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City," and MICHAEL ALI, an individual, DBA PIER PLAZA BEACH CONCESSION, hereinafter referred to as "Lessee." WHEREAS, City and Lessee are parties to that certain agreement dated November 2, 1998, entitled "LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICHAEL ALI, DBA PIER PLAZA BEACH CONCESSION," which agreement shall hereinafter be referred to as the "Original Agreement," and City and Lessee desire to extend the Term of the Original Agreement for a third additional five (5) year period as authorized therein, NOW, THEREFORE, it is agreed by City and Lessee as follows: EXTENSION OF TERM The term of the Original Agreement is hereby extended for five (5) additional years. The Original Agreement shall now expire at 11:59 p.m. on October 31, 2018. 2. NON -RECYCLABLE MATERIALS Except as permitted in advance in writing by City, all foods and beverages shall be sold in disposable paper or plastic containers. No pull -top cans or Styrofoam containers are to be vended or dispensed from the Premises unless pre -approved in writing by City. Lessee, wherever feasible, shall eliminate the use of non -recyclable containers and plastics. City may from time to time review the items sold and containers or utensils used or dispensed by Lessee. City reserves the right to prohibit the sale or use of non -recyclable containers or plastics. 13-3936 / 101426 3. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their authorized officers on ViS V 6 , 203. LESSEE: MICHAEL ALI, an individ , DBA PIER PLAZA BEACH CONC ION 11 Ali CITY: CITY OF HUNTINGTON BEACH, a California municipal corporation Mayor City Manager APPROVED AS TO FORM: (�PityAttorney 10s1� 13-3936 / 101426 2 November 21, 2013 Mr. Michael Ali Pier Plaza Beach Concession 19102 Beachcrest Lane Huntington Beach, CA 92646 Dear Mr. Ali: Enclosed for your records is a duplicate original of the "Amendment to Lease Agreement Between the City of Huntington Beach and Michael Ali, dba Pier Plaza Beach Concession." Sincerely, Joan L. Flynn, CIVIC City Clerk JF:pe Enclosure AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITE' OF HUNTINGTON BEACH AND MICHAEL ALI, DBA PIER PLAZA BEACH CONCESSIO THIS AMENDMENT is made and entered into by and between thq CITY OF / HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City," and MICHAEL ALI, an individual, DBA PIER PLAZA BEAC}ICONCESSION, hereinafter referred to as "Lessee." WHEREAS, City and Lessee are parties to that certain agreement dated November 2, r 1998, entitled "LEASE AGREEMENT BETWEEN HE CITY OF HUNTINGTON BEACH AND MICHAEL ALI, DBA PIER PLAZA BEACH CONCESSION," which agreement shall hereinafter be referred to as the "Original Agr'eement," and f City and Lessee desire to extend tl e Term of the Original Agreement for a third �r. additional five (5) year period as authorized therein, NOW, THEREFORE, it i agreed by City and Lessee as follows: 1. EXTENSION OF TERM The term 7offhe Original Agreement is hereby extended for five (5) additional years. The Original Ag>ccment shall now expire at 11:59 p.m. on October 31, 2018. REST OF PAGE INTENTIONALLY LEFT BLANK 1 13-3936 / 101426 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their authorized officers on , 20, 3 LESSEE: CITY: f MICHAEL ALI, an individual, DBA PIER CITOF HUNTINGTON BEACH, a PLAZA BEACH CONCESS N _ Cq, ifornia municipal corporation chael Ali Mayor v City Clerk REVIEWED AND APPROVED: IN TED AN APPROVED: City Manager ssistant City anager APP OVED A T FORM: ttorney 2 13-3936 / 101426 $ // 14R � - Corn . ts�t/ 'P,,,,�� l9� ��t-svree. -� ie,e�eNR,cr� ITY OF HUNTINGTON BEAC MEETING DATE: November 2, 1998 DEPARTMENT ID NUMBER: CS-039 Council/Agency Meeting Held: / a 600.5 S erred/Continued to: (De Approved ❑ Conditionally Approv ❑ Denie 19??Ao46 D - -/ILl"M'bEP,)rY Clerk's Signature Council Meeting Date: November 2, 1998 Department ID Number: CS-039 c50 6745CT 715 7716 I O)e. ,41- ' of �,�e sc�',� CITY OF HUNTINGTON BEACH Z ,4r.6 le"IP-.ea�oWREQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City AdministratorOW PREPARED BY: RON HAGAN, Director, Community Services SUBJECT: APPROVE PIER PLAZA BEACH CONCESSION AWARD TO MICHAEL ALI Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the City award the concession agreement for the Pier Plaza beach concession to Mike Ali? Funding Source: Revenue to the Pier Plaza funding and Pier Plaza maintenance and debt service. Recommended Action: MbfiQajo approve the concessbnagreement with Michael Ali for the operation of the beach concesslo ted on the north side he pier in the Pier Plaza Master Plan. Alternative Action(s): Award the concession agreement to an alternate bidder. Analysis: In June, 1998, the City distributed Request for Proposals for Pier Plaza beach concession services and tenant improvements (Attachment 1). Thirty-six proposals were sent out to prospective concession operators. The City received three complete proposals. Community Services staff, along with Administrative Services staff interviewed each of the applicants and rated the applications accordingly to the following criteria: ✓ Responsiveness of the proposal ✓ Experience/past performance with other clients ✓ Past experience with City of Huntington Beach 9 ✓ Responses to other specific requirements stated in the RFP: Pier Plaza Concession.doc -2- 10/22/98 3:34 PM • REQUEST FOR ACTION • MEETING DATE: November 2, 1998 DEPARTMENT ID NUMBER: CS-039 ✓ Understanding of the operations of a beach -side concession ✓ Understanding of completion of tenant improvements ✓ Time to complete ✓ Qualifications of applicants and subcontractors ✓ Completeness of income projections, marketing and sales plans ✓ Completeness of insurance requirements At the conclusion of this process, staff is recommending that Mike Ali, the City's current concessionaire at Zacks II, located at Beach Blvd. and Pacific Coast Highway, be awarded the concession agreement for the Pier Plaza concession. The proposed beach concession agreement has the same term and conditions for the City's other beach concessions. The City will receive 10 percent of gross sales up to $100,000, 12 percent of gross sales from $100,000 - $200,000, and 14 percent of gross sales over $200,000. Staff estimates that this concession will produce gross sales of $300,000 per year which would result in anticipated revenue to the Pier Plaza fund of $36,000 annually. The income for the beach concession has been included in the Proforma for the maintenance operation and debt service of Pier Plaza. Mr. Ali has been very successful historically with the City of Huntington Beach and has been an excellent concessionaire. He will be responsible for making the tenant improvements to the concession and indicates he can accomplish this and be open for business by the Spring, 1999. Mr. Ali has been a substantial sponsor of special events on the beach and with the two concessions, has the ability to store and deliver the kind of quantity of food required for special events. Mr. Ali will also provide beach equipment rentals along with food service which compliments the public and events taking place on the north side of the pier. Although the proposals from Nick Ali and Michael and Christie Bartusick were good, it is staffs opinion that Mike Ali has the most experience and financial capability to make the Pier Plaza concession a successful operation. Environmental Status: Not applicable Attachment(s): 10/22/98 3:34 PM 0 0 E • • EXHIBIT A 0 e1y �.�untirigton,Bea REQUEST FOR PROPOSAL For Beach Concession Services and Tenant Improvements New Facility Adjacent to the Pier and Pier Plaza Main Street and Pacific Coast Highway City Council Mayor Shirley Dettloff Mayor Pro Tem Peter Green Ralph Bauer Dave Garofalo Tom Harman Pam Julien Dave Sullivan City Administrator Ray Silver s 0 • REQUEST FOR PROPOSALS FOR BEACH CONCESSION SERVICES AND TENANT IMPROVEMENTS Beach Concession Adjacent to Pier and Pier Plaza at Main Street and Pacific Coast Highway Responses to the Request for Proposal (RFP) are to be submitted to: City of Huntington Beach Attention: Jim B. Engle, Deputy Director Community Services Department 2000 Main Street Huntington Beach, CA 92648 no later than 5:00 PM on Friday, July 24, 1998. Five (5) copies of the proposal shall be submitted in a sealed envelope marked: `Proposal for Beach Concession & Tenant Improvements'. Proposals received after the specific time will not be accepted and will be returned unopened. Questions regarding this proposal must be submitted in writing or FAX (714) 374-1551 to Jim B. Engle of the Community Services Department. There will be a pre -submittal meeting on Friday, June 26 at 9 AM on site, located just north of the Huntington Beach Pier and Pier Plaza.. Sections: I. Introduction H. Schedule of Events III. What to Include in Proposal IV. General Requirements V. Evaluation and Selection • 0 • III WHAT TO INCLUDE IN PROPOSAL A. A detailed plan for food service including menus, types of food products, fresh, cooked on site or packaged, and beverages. Both packaged and on site pre- pared foods will be allowed. Alcohol product sales will not be permitted. B. A detailed plan for beach rental services including beach equipment and products for sale. C. A detailed sales plan including income projections for the first five years. D. Conceptual plans and cost estimates for all tenant (interior) improvements. E. A list of past experiences in this type of retail sales and rental service. F. A statement of understanding of the concession business and its relation- ship to the beach, pier and Pier Plaza. Include any terms and conditions that les- see would require with regard to a long-term agreement, i.e., rent credits for the tenant improvements, accounting of sales, etc. G. A brief outline of proposal to handle this project and a timeline for the completion of the tenant improvements and setup for service. The city has pro- vided a tentative timeline. Feel free to adapt it to meet your requirements. • H. Three business references. I. A description of company's qualifications. A list of the key personnel who will be operating/managing the concession and their background. J. A list of the contractors who will be doing the tenant improvements, and a description of each of the firms and their qualifications. The city reserves the right to approve all contractors employed by lessee. K. Submit proposal signed and sealed. Prices and other proposal information shall not be made public until the proposal is awarded. At that time, the executed contract will become public information. There will be no public opening of proposals. IV GENERAL REQUIREMENTS A. Insurance - The lessee shall furnish with the proposal proof of the follow- ing minimum insurance coverage. These minimum levels of coverage are re- quired to be maintained for the duration of the operating contract. 1. General Liability Coverage - $1,000,000 combined single limit coverage per occurrence. The City of Huntington Beach, its agents, offi- cers and employees must be named as certificate holder and as additional insured on the certificate. Thirty -day cancellation notice is mandatory. 0 i • 2. Worker's Compensation Coverage: State statutory requirements.. • • 3. Deductibles, self-insurance retention, or similar forms of coverage limitation or modifications must be declared to and approved by the city. The lessee and contractors are encouraged to contact their insurance carri- ers during the proposal stage to ensure that the insurance requirements can be met if selected for negotiation of a contract agreement. Questions concerning insur- ance requirements should be addressed to the Risk Management Division at (714) 536-5252 or FAX to (714) 374-1597. B. Standard Form of Agreement -The lessee will enter into an agreement with the city based upon the contents of the RFP and the lessee's proposal. C. Disclaimer - This RFP does not commit the city to award a contract or to pay any costs incurred in the preparation of the proposal. The city reserves the right to extend the due date for the proposal, to accept or reject any or all propos- als received as a result of this request, to negotiate with any qualified applicant, or to cancel this RFP in part or in its entirety. The city may require the selected les- see to participate in negotiations and to submit additional documents and infor- mation pertaining to their proposal as may result from negotiations. �Y�y ma`s �. 1 43 a P J Concessionaire facility is located northwest of the pier and Pier Plaza. • V EVALUATION AND SELECTION An advisory selection committee may be used for evaluating the proposals. Such committee is generally comprised of at least three (3) staff members. The following is a sample of criteria that may be used when evaluating proposals and scoring finalists: • Responsiveness of the proposal, • Experience/past performance with other clients • Past experience with City of Huntington Beach • Responses to other specific requirements stated in the RFP • Understanding of the operations of a beach -side concession • Understanding of completion of tenant improvements • Time to complete • Qualifications of applicants and subcontractors • Completeness of income projections, marketing and sales plans • Completeness of insurance requirements is Responses to the Request for Proposal are to be submitted to: City of Huntington Beach Attention: Jim B. Engle, Deputy Director Community Services Department 2000 Main Street Huntington Beach, CA 92648 LJ 0 i Cedric Swirsky 3 j Linden Avenue #311 LBeach, CA. 90807 Gregory B. Sorum 606 Eleventh Street Huntington Beach, CA. 92648 Joseph Palmer 5791 Orange Avenue Cypress, CA. 90630 Norman Korn 8856 Cardinal Avenue Fountain Valley, CA. 92708 Samini & Samini Ltd. c/o C. Behtash, Esq. 2383 Silver Spring Drive Westlake, CA. 91361 In Bral 64 Sandpiper Irvine, CA. 92604 Mike Bartusick 20431 Graystone Huntington Beach, CA. Dan McLind Parvin Oshideri WDF Marketing 232A S. Mission Drive 515 W. Commonwealth, Ste. 212 San Gabriel, CA. 91776 Fullerton, CA. 92632 Duane Munk 7946 Southwind Circle Huntington Beach, CA. Terence J. Syrett 43221 San Miguel Way Hemet, CA. 92344 George Zverina 9949 Walker Street Cypress, CA. 90630 Nasim M. Yusuf 13401 Palm, # 1 Garden Grove, CA. Synia Falcony 335 S. Palo Cedro Drive 92648 Diamond Bar, CA. 91765 Robert Bartels 16743 Butterfield Country Club Hills, IL. 60477 David Bennett P.O. Box 46025 Los Angeles, CA. 90046 George Kadar 10044 Adams Avenue, #174 92643 Huntington Beach, CA. 92646 Valarie Brumfield 818 East Riverview Avenue Orange, CA. 92665 Monte Nitzkowski 7041 Seal Circle 92646 Huntington Beach, CA Mr. Roy McClymonds 8262 Niland Way Garden Grove, CA. 92644 Michelle Ifland 332 Forest Ave. #25 Laguna Beach, CA. 92651 Mike Ali 19105 C Beachcrest Lane Huntington Beach,CA. 92646 Alice Gustafson Post Office Box 111 92648 Huntington Beach, CA. 92648 Frank Dowd Waterfront Beach Cabana 21100 Pacific Coast Highway Huntington Beach, CA. 92648 Michael C. Adams Associates P. O. Box 382 Huntington Beach CA 92648- 0382 Jack Clapp 1210 Main Street Huntington Beach, CA. 92648 Dave Shenkman P.O. Box 53 Huntington Beach, CA. 92648 Wescott/Tina Viray Robert Koury Doug Cavanaugh -1 /2 5th Street 200 Main Street, #206 110 Newport Center Drive # 110 Huntington Beach, CA. 92648 Huntington Beach, CA. 92648 Newport Beach, CA. 92660 Warren Zahler Blatteis Realty WS. Beverly Drive rly Hills CA 90212 Asmy N. Dimyan 19381 Coralwood Huntington Beach CA 92646 LJ 0 Janet Marietta Beach City Services 4400 MacArthur #500 Newport Beach CA 92660 Ed Sakal 201 main Street Huntington Beach CA 92648 Dan Genet P. O. Box 10644 Prescott AZ 86304 Steve Abruzzese ZZ Food Service 31441 Santa Margarita Pkwy A245 Rancho Santa Margarita CA 92688 C� • June 29, 1998 Dear Applicant: RE: REQUEST FOR PROPOSALS FOR BEACH CONCESSION SERVICES AND TENANT IMPROVEMENTS AT PIER PLAZA You have received a copy of the Request for Proposal and are on the list to provide beach concession services and tenant improvements at Pier Plaza in Huntington Beach. A presubmittal meeting was conducted on Friday, June 26 at the site. This was not a mandatory presubmittal meeting. The primary request from those who did attend was to get a floor plan of the building. Attached is that floor plan. Questions asked were about tables being allowed outside the building. There is very limited space around the building. Space exists to the west,' but that would include the beach path and there can be no encroachment onto the beach path. The only other available space is to the south of the building. It may be possible to use a small area to the south for the placement of tables, but that would have to be reviewed and approved by the city based on proposals. I would anticipate that there will be some limited space available in this direction, but the majority of the area between the building and the Great Lawn would only be available periodically because it would be needed to service performances and other activities in the Amphitheater/Great Lawn area. Therefore, access to this area would be limited, but some space adjacent to the building will be considered for use by the concessionaire for tables. There was also discussion about placing a storage container outside of the building. This is highly unlikely since the space is limited and the area is immediately adjacent to the Pier Plaza public space and highly visible. If questions arise prior to the July 24 submittal date, please contact me. Remember, as indicated in the Request for Proposal, these questions should be submitted in writing. Thank you for your interest in providing services to the public at Pier Plaza on behalf of the City of Huntington Beach. Sincerely, JIM B. ENGLE Deputy Director Community Services xc: Ron Hagan Mike Mudd Dan Brennan • • • • EXHIBIT B In CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: 21j/Q UCL3 TOA5Lj;'e-_<S6& ATTENTION: 1'r-z fir • xeA Street 0_ _/ - City, State, Zip i See Attached Action Agenda Item Date of Approval / Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. &'L� 4 alv�zt Connie Brockway City Clerk Remarks: Attachments: Action Agenda Page ✓ Agreement V RCA CC: _ Name Department RCA Bonds Insurance ✓ Deed Other Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Risk Management Dept. Insurance Received by Name - Company Name - Date G:Followup/coverltr (Telephone: 714-536.5227 ) a .,"�e CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK - CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY 'COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: TO: zz Cif A Name Stre vA -77r/G -7Z)A/ /d,M(-VA , . City, State, Zip ATTENTION: DEPARTMENT: REGARDING: �o Y� � p ss f d�✓ See Attached Action Agenda Item e' 0 Date of Approval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Page Attachments: • Action Agenda� V Agreement � Bonds . Insurance ✓ RCA Deed Other f CC: / #,a A- / oh�x I, / � ✓—Z / ✓ N�^e - I�1CD�NR �C� D.artment 1Yeccs� �2 R� RCA / Agreement ✓ Insurance Other Name Department RCA Agreement Insurance Other Name uepartmem RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other �— Risk Management Dept. Insurance Received by Name - Company Name - Date G:Followup/coverltr ( Telephone: 714-536.5227 ) (5) 0 11/02/98 - Council/AgIncy Agenda - Page 5 E-5. (City Council) Adopt Resolution No. 98-83 — Approves Temporary Closure Of Portions Of Seapoint/Palm/Goldenwest — For Pacific_ Shoreline Marathon 1/31/99 (960.50) — Adopt Resolution No. 98-83 - "A Resolution of the City Council of the City of Huntington Beach to Approve the Temporary Closure of Portions of Seapoint, Palm and Goldenwest for the Pacific Shoreline Marathon on January 31, 1999." Submitted by the Community Services Director [Approved 5-1-1 (Sullivan: No; Julien: Absent)] E-6. (City Council) Approve 1998 Agreement With Employment Systems Inc. For Ambulance Operator/Fire Interns (600.10) — Approve and authorize the Mayor and City Clerk to execute the Agreement Between The City Of Huntington Beach And Employment Systems, Inc. To Supply Personnel To The City in the amount not to exceed $795,000 to provide leased ambulance operator/fire intern personnel to the City. Submitted by the Fire Chief [Approved 5-1-1 (Sullivan: No; Julien: Absent)] E-7. (City Council) Adopt Resolution No. 98-84 — Approve Memorandum Of Understanding Between The City And The Marine Safety Officers Association (720.20) - Adopt Resolution No. 98-84 — "A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between The Huntington Beach Marine Safety Officers Association and the City of Huntington Beach for 1011197 - 9/30/99. " Submitted by the Deputy City Administrator -Administrative Services' [Adopted 5-1-1 (Sullivan: No; Julien: Absent)] E-8. (City Council) Approve Pier Plaza Beach Concession Award To Michael Ali — Approve Lease Agreement Between City & Michael Ali. DBA — Pier Plaza Beach Concession (600.35) — [Subject to the approval of the State of California Department of Parks and Recreation,] Approve the concession agreement with Michael Ali for the operation of the beach concession located on the north side of the pier in the Pier Plaza Master Plan - Lease Agreement Between The City Of Huntington Beach And Michael Ali, DBA Pier Plaza Beach Concession and authorize the execution by the Mayor and City Clerk. Submitted by the Community Services Director [Approved as Amended 6-0-1 (Julien: Absent)] f y \AID �t4f:�Fiipi LEASE AGREEMENT BETWEEN" �(Vol THE CITY OF HUNTINGTON BEACH AND MICHAEL ALI, DBA PIER PLAZA BEACH CONCESSIO W Table of Contents Section Page 1 DESCRIPTION OF PRESMISES 1 2 ORIGINAL TERM 1 3 EXTENSION OF AGREEMENT. 2 4 TERMS AND CONDITIONS 2 5 HOLD OVER. 2 6 RENT . 2 7 GROSS SALES DEFINED 3 8 GROSS SALES EXCLUSIONS 4 9 BOOKS AND RECORDS 4 10 STATEMENT OF GROSS SALES 5 11 PERMITTED USE 5 12 PAYMENT OF UTILITY CHARGES 6 13 PERSONAL PROPERTY TAXES 6 14 REAL PROPERTY TAXES 7 15 MAINTENANCE BY LESSEE 7 16 TENANT IMPROVEMENTS 7 17 ALTERATIONS AND LIENS 8 18 INSPECTION BY CITY 8 19 SURRENDER OF PREMISES 9 20 INSTALLATION AND REMOVAL OF TRADE FIXTURES 9 21 TRADE FIXTURES AS SECURITY FOR LEASE . 9 22 UNREMOVED TRADE FIXTURES 10 23 SIGNS 10 24 PARTIAL DESTRUCTION 11 25 TOTAL DESTRUCTION 11 26 INSURANCE PROCEEDS 11 27 ABATEMENT OF RENT 12 28 CONDEMNATION COMPENSATION 12 29 RELOCATION AND ASSISTANCE 13 30 SUBLEASING OR ASSIGNING AS BREACH 13 31 ABANDONMENT BY LESSEE 14 32 DEFAULT BY LESSEE 15 33 INSOLVENCY OF LESSEE. 15 34 CUMULATIVE REMEDIES. 15 35 WAIVER OF BREACH 15 36 FORCE MAJEURE — UNAVOIDABLE DELAYS 15 37 CARE OF PREMISES — MAINTENANCE DEPOSIT 16 • 38 SECURITY DEPOSIT 17 39 EMERGENCY CLOSING OR CLOSING TO EFFECT 17 REPAIR OR REMODELING OF THE PREMISES 40 DELIVERIES OF SUPPLIES 17 41 EMPLOYEE PARKING 18 42 NOTICE 18 43 LESSEE'S RIGHT TO RENEGOTIATE LEASE 18 44 INSURANCE HAZARDS 19 45 WASTE OR NUISANCE 19 46 COMPLIANCE WITH LAW. 19 47 BINDING ON HEIRS AND SUCCESSORS 20 48 PARTIAL INVALIDITY 20 49 SOLE AND ONLY AGREEMENT 20 50 TIME OF ESSENCE . 20 51 INDEMNIFICATION, DEFENSE, HOLD HARMLESS 20 52 WORKERS' COMPENSATION 21 53 INSURANCE. 21 54 NONDISCRIMINATION 22 55 ATTORNEY'S FEES. 23 • n • • LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICHAEL ALI, DBA PIER PLAZA BEACH CONCESSION This Agreement is made and entered into this Ad,_ day of Alomim,, 1998, by and between THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "CITY") and MICHAEL ALI (herein referred to as `LESSEE"). V. WHEREAS, CITY operates certain real property within the Pier Plaza in the City of Huntington Beach, and LESSEE desires to lease said Property under the terms and conditions and in the manner set forth below, NOW, THEREFORE, the parties covenant and agree as follows: 1. DESCRIPTION OF PREMISES. CITY hereby leases to LESSEE that certain real property located in the City of Huntington Beach commonly known as the PIER PLAZA BEACH CONCESSION, which property is more particularly described in the legal description and sketch attached hereto as Exhibits A and B, respectively, and incorporated by this reference as though fully set forth herein. Said property shall hereinafter be referred to as "The Premises." 2. ORIGINAL TERM. This lease shall be for a term of five (5) years commencing at 12:01 a.m. on November 1, 1998 and ending at 11:59 p.m. on October 31, 2003, unless sooner terminated as herein provided. 4/sA-98Agree:ALI0998 RLS 98-596 c 3. EXTENSION OF TERM. Subject to the period of the Operating Agreement between the CITY and the State, this lease may be extended for three (3) additional periods of five (5) years, by mutual agreement of the parties. If the parties agree to an extension, this lease shall be subject tothesame terms, covenants, conditions, exceptions, and reservations contained herein. 4. TERMS AND CONDITIONS. CITY may upon three (3) days notice in writing to LESSEE for rent and thirty (30) days notice in writing to LESSEE for covenants, terminate this agreement and the lease granted herein without liability to the CITY in the event of failure of LESSEE to comply with any of the terms or conditions or agreements hereof, or when public is necessity so requires. In the event of termination, LESSEE shall be allowed fifteen (15) days after notice within which to cure the failure or default which gave rise to such termination. 5. HOLD OVER. Should LESSEE hold over and continue in possession of said Premises after expiration of the terms of this lease or any extension thereof, LESSEE's continued occupancy of said Premises shall be considered a month -to -month tenancy subject to all the terms and conditions of this lease. 6. RENT. LESSEE agrees to pay to CITY as rent for the use and occupancy of said Premises a sum equal to the following percentages of the amount of gross sales as defined in this • Article, made each month by LESSEE in, on or from said Premises: 2 4/s:4-98Agree:ALI0998 RLS 98-596 0 0 • Sales Volume Percentage Rate $1.00 - $100,000 10.5% $100,001 - $200,000 12.5% $200,001— plus 14.5% The rent specified in this section shall be paid by LESSEE to CITY at 2000 Main Street, Huntington Beach, California 92648, or at such other place or places as CITY may from time to time designate by written notice delivered to LESSEE, within fifteen (15) days after the end of the calendar month during which the gross sales on which it was computed were made. A late charge equal to one and one-half percent (1-1/2%) per month shall be added on the 101h day after any payment hereunder is due, but unpaid. i7. GROSS SALES DEFINED. For the purposes of this Article, the term "gross sales" shall mean the total selling price of all merchandise or services sold or rendered in, or property rented on, or from said Premises by LESSEE, his sublessees, licensees, or concessionaires, whether for cash or on credit, and if on credit whether or not paid, and shall include without limitation: (a) Proceeds from all automatic vending, weighing, and other machines owned and operated by LESSEE in or on said Premises; (b) commissions received by LESSEE from such automatic vending, weighing, and other machines not owned by LESSEE but operated in or on said Premises; (c) commissions received by LESSEE from the operation of public telephones . in or on said Premises; 3 4/s:4-98Agree:ALI0998 RLS 98-596 • (d) proceeds from sales based on orders solicited or taken from, in, or on said Premises for merchandise or services to be delivered or rendered off, or from sources outside, said Premises; and (e) proceeds from the renting of beach equipment of any kind from said Premises. 8. GROSS SALES EXCLUSIONS. Notwithstanding the provisions of Section 7 of this lease, the term "gross sales" shall not include the following items, and such items may be deducted from "gross sales" to the extent they have been included therein or have been included in a prior computation of "gross sales" on which a percentage rental has been paid under this lease to CITY: . (a) Any sales or excise taxes otherwise includable in "gross sales" as defined in this Article become part of the total selling price of merchandise or services rendered in, from, or on said Premises where LESSEE must account for and remit the taxes to the government entity by which they are imposed; and (b) any transfer of merchandise from said Premises to the manufacturer or supplier from whom it was obtained by LESSEE. 9. BOOKS AND RECORDS. LESSEE shall at all times keep or cause to be kept on the said Premises full, complete, and accurate records and books of account showing the total amount of gross sales as defined in this Section made each calendar month in, on or from said Premises. Furthermore, LESSEE shall at the time of sale and in the presence of the customer • cause the full selling price of each piece of merchandise and each service rendered in, on, or 4 4/s:4-98Agree:ALI0998 RLS 98-596 • 0 • from said Premises to be recorded in a cash register or cash registers that have cumulative totals and are sealed in a manner approved by CITY. LESSEE agrees to maintain on said Premises for a period of three (3) years following the close of each calendar month all records and books of account and all cash register tapes showing or in any way pertaining to the gross sale made in, or from said Premises during such calendar month. 10. STATEMENT OF GROSS SALES. At the time specified in Section 6 of this lease for the payment of the rent specified in that section, LESSEE shall deliver to CITY a true and accurate statement signed by LESSEE or by an authorized employee of LESSEE showing the total gross sales made during the preceding calendar month in, on, or from said Premises and the amount of rent then being paid calculated on such gross sales pursuant to this lease. CITY may • at any time within three (3) years after receiving any such statement, at his own cost and expense, cause all books, records; and cash register tapes described in Section 9 of this lease for the calendar month purportedly covered by the statement to be audited by a public or certified public accountant selected by CITY. LESSEE shall on receiving written notice of CITY's desires for such an audit deliver and make available all such books, records, and cash register tapes to the public or certified public accountant selected by CITY. Furthermore, LESSEE shall promptly on demand reimburse CITY for the full cost and expense of the audit should the audit disclose that the questioned statement understated gross sales or the rent payable because of gross sales by five percent (5%) or more. 11. PERMITTED USE. The Premises are let for the purpose of operation of a beach • concession for the sale of merchandise, food and rental of beach equipment, including kites and 4/s:4-98Agree:ALI0998 RLS 98-596 0 other such uses as may from time to time be approved in writing by CITY. CITY reserves the • right to prohibit the sale of any item or article which is objectionable or beyond the scope of the merchandise necessary for proper service to the public or public safety. The prices for the merchandise sold and the rental of the recreational beach and water equipment shall be fixed by LESSEE, and CITY reserves the right to establish and revise a schedule of maximum prices for any or all items sold or rented to the public by LESSEE; provided, however, that such schedule of maximum prices established by CITY shall be reasonable and in accordance with the best interests of the public, the LESSEE, and the CITY. 12. PAYMENT OF UTILITY CHARGES. LESSEE shall pay, and hold CITY and the property of CITY free and harmless from, all charges for the furnishing of gas, water, electricity, telephone services, and other public utilities to said Premises during the term of this lease or any extension thereof and for the removal of garbage and rubbish from said Premises during the term of this lease or any extensions thereof. 13. PERSONAL PROPERTY TAXES. LESSEE shall pay before they become delinquent all taxes, assessments, or other charges levied or imposed by any governmental entity on the furniture, trade fixtures, appliances, and other personal property placed by LESSEE in, on, or about said Premises including, without limiting the generality of the other terms used in this section, any shelves, counters, vaults, vault doors, wall safes, partitions, fixtures, machinery, plant equipment, office equipment, television or radio antennas, or communication equipment brought on said Premises by LESSEE. 6 4/s:4-98Agree:ALI0998 RLS 98-596 0 14. REAL PROPERTY TAXES. All real property taxes or possessory interest taxes and assessments levied or assessed against said Premises by any governmental entity, shall be paid, before they become delinquent by LESSEE. 15. MAINTENANCE BY LESSEE. LESSEE shall, at his own cost and expense, maintain in good condition and repair the exterior roof, exterior walls, structural supports, and the foundation of said Premises including window glass. CITY shall promptly be reimbursed by LESSEE for the full cost of any such repairs made by CITY. Except as otherwise expressly provided in Section 16 of this lease, LESSEE shall at his own cost and expense keep and maintain all portions of said Premises as well as all improvements on said Premises and all facilities appurtenant to said Premises in good order and 0 repair and in as safe and clean a condition as they were when received by LESSEE from CITY, reasonable wear and tear also excepted. 16. TENANT IMPROVEMENTS. LESSEE shall complete all interior Tenant Improvements, including without limitation, flooring, ceiling, kitchen, fixtures, lighting, seating, signage and counter areas. The cost of such Tenant Improvements shall be reimbursed by CITY to LESSEE, on a 60-month prorated basis, in the form of rent credit. LESSEE shall submit requests for reimbursement, containing itemized costs and receipts, for review and approval by CITY, which approval shall not be unreasonably withheld. LESSEE shall pay all permit fees that may be required for completion of the Tenant Improvements. Such fees shall be reimbursed by CITY to LESSEE in the same manner as the Tenant Improvements described herein. After . reimbursement as provided herein, all Tenant Improvements for which CITY has reimbursed 7 4/s:4-98Agree:ALI0998 RLS 98-596 • LESSEE shall become the sole property of CITY, and LESSEE shall make no claim of ownership or otherwise to said Tenant Improvements. 17. ALTERATIONS AND LIENS. LESSEE shall not make or permit any other person to make any alterations to said Premises or to any improvement thereon or facility appurtenant hereto without the written consent of CITY first had and obtained. LESSEE shall keep the Premises free and clear from any and all liens, claims, and demands for work performed, materials furnished, or operations conducted on such Premises at the instance or request of LESSEE. Furthermore, any and all Tenant Improvements as described in Section 16 hereof, alterations, additions, other improvements, and fixtures, except furniture and trade fixtures as described below, made or placed in or on said Premises by LESSEE or any other person shall on 0 expiration or sooner termination of this lease, or upon reimbursement as described in Section 16 hereof, become the property of CITY and remain on said Premises provided, however, that CITY shall have the option on expiration or sooner termination of this lease of requiring LESSEE, at LESSEE's sole cost and expense, to remove any or all such Tenant Improvements, alterations, additions, other improvements, or fixtures from said Premises. 18. INSPECTION BY CITY. LESSEE shall permit CITY or CITY's agents, representatives, or employees to enter said Premises at all reasonable times for the purpose of inspecting said Premises to determine whether LESSEE is complying with the terms of this lease and for the purpose of doing other lawful acts that may be necessary to protect CITY's interest in said Premises under this lease or to perform CITY's duties under this lease. CITY shall make • quarterly inspections of concession and provide written reports to LESSEE. LESSEE shall make 8 4/s:4-98Agree:ALI0998 RLS 98-596 • 0 • necessary repairs, clean or take any other reasonable action as required by quarterly evaluation summary sheet (see attachment) within time limit set by CITY. 19. SURRENDER OF PREMISES. On expiration or sooner termination of this lease, or any extensions or renewals of this lease, LESSEE shall promptly surrender and deliver said Premises to CITY in as good condition as they are now at the date of this lease, reasonable wear and tear and repairs herein required to be made by CITY excepted. 20. INSTALLATION AND REMOVAL OF TRADE FIXTURES. LESSEE shall have the right at any time and from time to time during the term of this lease and any renewal or extension of such term, as LESSEE's sole cost and expense, to install and affix in, to or on said Premises such items, herein called "trade fixtures," for use in LESSEE's trade or business as LESSE may, in his sole discretion, deem advisable. Any and all such trade fixtures that can be removed without structural damage to said Premises or any building or improvements on said Premises shall, subject to Section 21 of this lease, remain the property of the LESSEE and may be removed by LESSEE at any time prior to the expiration or sooner termination of this lease. 21. TRADE FIXTURES AS SECURITY FOR LEASE. Subject to and to be subordinated to any security interest which LESSEE may give to any leading institution and/or financing source for the purpose of obtaining financing for the purchase of trade fixtures and equipment or the operation of said Premises, LESSEE hereby grants to CITY a security interest in all trade fixtures and equipment owned by LESSEE and now or hereafter placed on said 0 Premises by LESSEE as security for the faithful performance of all the terms, conditions and 9 4/s:4-98Agree:ALI0998 RLS 98-596 • E • covenants of this lease to be performed by LESSEE. Any rights or rights of removal of trade fixtures given LESSEE by the provisions of Section 20 of this lease shall be exercisable only if, at the time of removal, LESSEE is not in default in performance of this lease. LESSEE may, however, at any time he is not in default in performance of this lease, trade in or replace any trade fixture free of the security interest created by this section and this security interest will then attach to the item that replaced such trade fixture. On default in performance of any obligation of this lease to be performed by LESSEE, CITY shall immediately have as to the trade fixtures the remedies provided to a secured party under the Uniform Commercial Code as enacted in the State of California. 22. UNREMOVED TRADE FIXTURES. Any trade fixtures described in this Article is that are not removed from said Premises by LESSEE within thirty (30) days after the expiration or sooner termination, regardless of cause, of this lease shall be deemed abandoned by LESSEE and shall automatically become the property of CITY as owner of the real property to which they are affixed and not simply because of the lien described in Section 21 of this lease. 23. SIGNS. LESSEE shall not place and maintain, nor permit any other person to place or maintain, on or in any exterior door, wall, or window of said Premises any sign, awning, canopy, marquee, or other advertising without the express written consent and approval of CITY. Furthermore, LESSEE shall not place any decoration, lettering, or advertising matter on the glass of any interior or exterior shop window of said Premises without the written approval and consent of CITY. Should CITY consent to any such sign, awning, canopy, marquee, decoration, • or advertising matter, LESSEE shall maintain it at all times during this lease in good appearance 10 4/s:4-98Agree:ALI0998 RLS 98-596 0 0 and repair. On expiration or sooner termination of this lease, any of the items mentioned in this section not removed from said Premises by LESSEE on such expiration or termination of this lease may, without damage or liability, be destroyed by CITY. This lease is expressly contingent upon approval of all signs by both CITY and LESSEE. 24. PARTIAL DESTRUCTION. Should said Premises or the building on said Premises be partially destroyed by any cause not the fault of LESSEE or any person in or about said Premises with the consent, express or implied, of LESSEE, this lease shall continue in full force and effect and CITY, at CITY's own cost and expense, shall promptly commence and diligently continue and complete the work of repairing and restoring said Premises to their prior condition providing such work can be accomplished under all applicable governmental laws and 0 regulations within one hundred eighty (180) working days. 25. TOTAL DESTRUCTION. Should said Premises or the building on said Premises be so far destroyed by any cause not the fault of LESSEE or any person in or about said Premises with the consent, express or implied, of LESSEE that they cannot be repaired or restored to their former condition within one -hundred eighty (180) working days, CITY may, at CITY's option: (a) Continue this lease in full force and effect by repairing and restoring, at CITY's own cost and expense, said Premises to their former condition; or (b) terminate this lease by giving LESSEE written notice of such termination. 26. INSURANCE PROCEEDS. Any insurance proceeds received by CITY because of othe total or partial destruction of said Premises or the building on said Premises shall be the sole 11 4/s:4-98Agree:ALI0998 RLS 98-596 • 0 property of CITY, except LESSEE shall be compensated for loss to leasehold improvements and fixtures beyond any and all insurance proceeds including business interruption insurance which would ordinarily flow to the benefit of LESSEE. 27. ABATEMENT OF RENT. Should CITY elect under Section 25 of this lease or be required under Section 24 of this lease to repair and restore said Premises to their former condition following partial or full destruction of said Premises or the building on said Premises: (a) CITY shall have full right to enter said Premises and take possession of so much of said Premises, including the whole of said Premises, as may be reasonably necessary to enable CITY promptly and efficiently to carry out the work of repair and restoration; and . (b) the percentage rent described in Section 24 of this lease shall be not abated • for the time LESSEE is prevented from using the whole of said Premises. 28. CONDEMNATION COMPENSATION. All compensation and damages awarded for a total taking of the Premises shall belong to and be the sole property of CITY, and LESSEE shall have no claim to any amount or part of any award except, however, that LESSEE shall be entitled to receive the portion of any award attributable to the taking of those trade fixtures that LESSEE has the right to remove under this lease but does not remove from the Premises; or when LESSEE does remove the trade fixtures, a reasonable amount for removal and relocation expenses, provided that amount does not exceed the market value of the trade fixtures. LESSEE hereby irrevocably assigns and transfers to CITY any right LESSEE may have to compensation 12 4/s:4-98 Agree: ALI0998 RLS 98-596 • 0 • or damages to which LESSEE may become entitled. This Lease shall have no condemnation value to LESSEE. 29. RELOCATION AND ASSISTANCE. In the event this lease is terminated for any reason by CITY, LESSEE shall not be entitled to any relocation rights or benefits and, except those itemized in Section 28, and LESSEE expressly waives such benefits and rights under City, State or Federal Relocation Assistance Plans. 30. SUBLEASING OR ASSIGNING AS BREACH. LESSEE shall not encumber, assign, or otherwise transfer this lease, any right or interest in this lease, or any right or interest in said premises or any of the improvements that may now or hereafter be constructed or • installed on said premises without the express written consent of CITY first had and obtained. Neither shall LESSEE sublet said premises or any part thereof or allow any other person, other than LESSEE's agents, servants, and employees, to occupy said premises or any part thereof without the prior written consent of CITY. A consent by CITY to one assignment, one subletting, or one occupation of said premises by another person shall not be deemed to be a consent to any subsequent assignment, subletting, or occupation of said premises by another person. Any encumbrance, assignment, transfer, or subletting without the prior written consent of CITY, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of CITY, terminate this lease. The consent of CITY to any encumbrance, assignment including occupation or transfer hereof of LESSEE's interest in this lease or the subletting by LESSEE of said premises or parts of said premises shall not be unreasonably 0 withheld; however, CITY shall have the right of first refusal in connection with any assignment, 13 4/s:4-98 Agree: ALI0998 RLS 98-596 • sale, sublease or transfer hereof and agrees to exercise or refuse such right in writing within thirty (30) days of notice by LESSEE. Such right shall not apply, however, to assignments, transfers, or sublettings to immediate family members of LESSEE, a family trust, or to any corporate entity of which LESSEE, or any of LESSEE's immediate family, are sole stockholders. 31. ABANDONMENT BY LESSEE. Should LESSEE breach this lease and abandon said premises prior to the natural expiration of the term of this lease, CITY may: (a) Continue this lease in effect by not terminating LESSEE's right to possession of said premises, in which event CITY shall be entitled to enforce all of its rights and remedies under this lease, including the right to recover the rent specified in this lease as it becomes due under this lease; • (b) terminate this lease and recover from LESSEE: (1) The worth at the time of award of the unpaid rent which had been earned at the time of termination of the lease; (2) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination of the lease until the time of award exceeds the amount of rental loss that LESSEE proves could have been reasonably avoided; (3) the worth at the time of award of the amount by which the unpaid rent for the balance of the term of this lease after the time of award exceeds the amount of rental loss that LESSEE proves could be reasonably avoided; and (4) any other amount necessary to compensate CITY for all detriment . proximately caused by LESSEE's failure to perform his obligations under this lease. 14 4/s:4-98Agree: ALI0998 RLS 98-596 �1 L_J 32. DEFAULT BY LESSEE. Should LESSEE default in the performance of any of the covenants, conditions, or agreements contained in this lease, LESSEE shall hale breached the lease and CITY may, in addition to the remedy specified in the subparagraph (b) of Section 35 of this lease, re-enter and regain possession of said premises in the manner provided by the laws of unlawful detainer of the State of California then in effect. 33. INSOLVENCY OF LESSEE. The insolvency of LESSEE as evidenced by a receiver being appointed to take possession of all or substantially all of the property of LESSEE, or the making of a general assignment for the benefit of creditors by LESSEE, or filing a petition in bankruptcy shall terminate this lease and entitle CITY to re-enter and regain possession of said • Premises. 34. CUMULATIVE REMEDIES. The remedies given to CITY in this Article shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this lease. 35. WAIVER OF BREACH. The waiver by CITY of any breach by LESSEE of any of the provisions of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach by LESSEE either of the same or another provision of this lease. 36. FORCE MAJEURE — UNAVOIDABLE DELAYS. Should the performance of • any act required by this lease to be performed by either CITY or LESSEE be prevented or 15 4/s:4-98Agree: ALI0998 RLS 98-596 • l_ J delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause except financial inability not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused; provided, however, that nothing contained in this section shall excuse the prompt payment of rent by LESSEE as required by this lease or the performance of any act rendered difficult solely because of the financial condition of the party, CITY or LESSEE, required to perform the act. 37. CARE OF PREMISES — MAINTENANCE DEPOSIT. (a) Lessee shall paint, stain or seal the Premises' stucco, trim, etc., a minimum of • every two years, unless it is determined by CITY in its sole discretion, that such work shall be done once every year. All exterior metal surfaces shall be painted no less than once each year .7 except the roof. (b) Any and all graffiti shall be removed by LESSEE at its own expense from the leased premises within forty-eight (48) hours of notice thereof. (c) LESSEE shall not obstruct, cause or permit any obstruction surrounding the premises or any part thereof in any manner whatsoever. (d) LESSEE shall comply with all written notices served by CITY with regard to the care and maintenance of the Premises. (e) LESSEE shall, at this sole cost and expense, install a grease trap and provide for said grease trap to be pumped out a minimum of once per year. 16 4/s:4-98Agree:ALI0998 RLS 98-596 • 0 Any written notice hereunder shall specify the work to be done, the estimated cost 11 thereof, and the period of time deemed to be reasonably necessary for completion of such work. Should LESSEE fail to comply with CITY's written notice within fifteen (15) days, or within a time deemed reasonably necessary of the time specified therein, LESSEE shall pay over to CITY the estimated cost of such work as set forth in the notice. Upon receipt of such sum, CITY shall then proceed to cause the required work to be performed. 38. SECURITY DEPOSIT. Upon execution hereof, LESSEE shall pay and maintain at all times hereunder, a security deposit with CITY in a sum of not less than Two Thousand Five Hundred Dollars ($2,500.00) to guarantee the repair and maintenance of the leased premises as provided hereinabove. Such deposit may be in the form of cash or an assignment of certificate of deposit or savings account. The form of any such assignment shall be approved by the City Attorney. The interest accrued on said deposit shall be paid to LESSEE annually. 39. EMERGENCY CLOSING OR CLOSING TO EFFECT REPAIR OR REMODELING OF THE PREMISES. CITY may close the beach without liability therefore at any time it deems necessary for the protection of life, limb or property, or upon reasonable notice to effect any repair, remodeling or rebuilding of the Premises deemed necessary by CITY. 40. DELIVERIES OF SUPPLIES. CITY shall establish the days and times for deliveries of supplies, and advise LESSEE in writing thereof. All vendors, salesmen, and guests of LESSEE must obey all parking and traffic regulations. 17 4/s:4-98Agree:ALI0998 RLS 98-596 0 0 41. EMPLOYEE PARKING. CITY shall establish the days, times, and locations for vehicular parking by LESSEE and LESSEE's employees, and the maximum number of allowed automobiles, trucks, and other motorized and non -motorized vehicles on the Premises and shall advise LESSEE in writing thereof. LESSEE and its employees must obey all parking and traffic regulations. LESSEE agrees to provide change upon request to members of the public for operation and use of CITY's "Park `n Pay" system. 42. NOTICE. Any written notice, given under the terms of this Agreement, shall be either delivered personally or mailed, certified mail, postage prepaid, addressed to the party concerned, as follows: CITY OF HUNTINGTON BEACH LESSEE Director of Administrative Services Mr. Michael Ali Administrative Services Department Pier Plaza Beach Concession Cite of Huntington Beach 19102 Beachcrest Lane 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92646 Huntington Beach, CA 92648 43. LESSEE'S RIGHT TO RENEGOTIATE LEASE. If, in the event CITY shall at some future time within the term of this lease or any extension thereof, redevelop the immediate area on which said Premises is situated, or the immediately adjacent surrounding area thereto, to the extent that one or more new eating facilities are constructed and situated either on said immediate area or adjacent thereto, and, in such event, LESSEE can demonstrate that such has or will cause him to be detrimentally affected thereby, then, in such event, LESSEE shall have the right to request that the terms, conditions, and provisions of this lease be renegotiated. The • parties agree that each shall deal with the other in good faith. 18 4/s:4-98Agree:ALI0998 RLS 98-59b • • 44. INSURANCE HAZARDS. LESSEE shall not commit or permit the commission of any acts on said premises nor use or permit the use of said premises in any manner that will increase the existing rates for, or cause the cancellation of any fire, liability, or other insurance policy insuring said Premises or the improvements on said Premises. LESSEE shall, at his own cost and expense, comply with any and all requirements of CITY's insurance carriers necessary for the continued maintenance at reasonable rates of fire and liability insurance policies on said Premises and the improvements on said Premises. 45. WASTE OR NUISANCE. LESSEE shall not commit or permit the commission by others of any waste on said Premises; LESSEE shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined in Section 3479 of the California Civil Code on said premises; and LESSEE shall not use or permit the use of said premises for any unlawful purpose. 46. COMPLIANCE WITH LAW. LESSEE shall at LESSEE's own cost and expense comply with all statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and county or municipal, relating to LESSEE's use and occupancy of said Premises whether such statutes, ordinances, regulations, and requirements be now in force or hereinafter enacted. The judgment of any court of competent jurisdiction, or the admission by LESSEE in a proceeding brought against LESSEE by any government entity, that LESSEE has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between CITY and LESSEE and shall be ground for termination of this lease by CITY. is 19 4/s:4-98Agree:ALI0998 RLS 98-596 47. BINDING ON HEIRS AND SUCCESSORS. This lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. 48. PARTIAL INVALIDITY. Should any provision of this lease be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this lease shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. 49. SOLE AND ONLY AGREEMENT. This instrument constitutes the sole and only • agreement between CITY and LESSEE respecting said Premises, the leasing of said Premises to LESSEE, or the lease term herein specified, and correctly sets forth the obligations of CITY and L.J LESSEE to each other as of its date. Any agreements or representations respecting said Premises or their leasing by CITY to LESSEE not expressly set forth in this instrument are null and void. 50. TIME OF ESSENCE. Time is expressly declared to be the essence of this lease. 51. INDEMNIFICATION, DEFENSE, HOLD HARMLESS. LESSEE shall indemnify and save and hold harmless CITY, its officers and employees, from any and all liability, including any claim of liability and any and all losses or costs arising out of the performance of this Agreement by LESSEE, its officers or employees or from any willful 20 4/s:4-98Agree:ALI0998 RLS 98-596 . misconduct of LESSEE, its officers or employees while engaged in the performance of this Agreement. 52. WORKERS' COMPENSATION. LESSEE shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by LESSEE under this • Agreement. LESSEE shall obtain and furnish evidence to CITY of maintenance of statutory workers' compensation insurance and employers' liability in an amount of not less than $500,000 bodily injury by accident, each accident, $500,000 bodily injury by disease, each employee, and $1,000,000 bodily injury by disease, policy limit. 53. INSURANCE. In addition to the Workers' Compensation insurance and LESSEE's covenant to indemnify CITY, LESSEE shall obtain and furnish to CITY the following insurance policies covering the Premises: (a) General Liability Insurance. A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify LESSEE, its officers, agents and • employees, while acting within the scope of their duties, against any and all claims arising out of 21 4/s A-98 Agree : ALI0998 RLS 98-596 • • or in connection with the Premises, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence and in the annual aggregate. Said policy shall name CITY, its officers and employees as Additional Insureds and shall specifically provide that any other insurance coverage which may be applicable to the Project shall be deemed excess coverage and that LESSEE's insurance shall be primary. (b) Fire Insurance. In order that the business of LESSEE and the gross sales of LESSEE as defined in this lease may continue with as little interruption as possible, LESSEE shall, during the full term of this lease and any renewals or extensions thereof, maintain as LESSEE's own cost and expense an insurance policy issued by a reputable company authorized . to conduct insurance business in California insuring for their full insurable value all fixtures and equipment and, to the extent possible, all merchandise that is, at any time during the term of this r� LJ lease or any renewal or extension thereof, in or on the premises against damage or destruction by fire, theft, or the elements. LESSEE shall also maintain in force during the entire term of this Agreement, a standard broad form fire insurance policy in which the CITY is named and which any and all losses are made payable to CITY. The face amount of the policy shall be for ninety (90) percent of the replacement value of the premises, and be in a form acceptable to the City Attorney. 54. NONDISCRIMINATION. LESSEE agrees not to discriminate against any person or class of persons by reason of sex, age, race, color, creed, physical handicap, or national origin 22 4/s:4-98Agree:ALI0998 RLS 98-596 0 0 • in employment practices and in the activities conducted pursuant to this Agreement, in accordance with Government Code § 19702. • 55. ATTORNEY'S FEES. In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on the day, month and year first above written. LESSEE Michael Ali ATTEST: City Clerk 9� REVIEWED AND APPROVED: City Admi trator 4/s:4-98Agree:ALI0998 RLS 98-596 23 CITY OF HUNTINGTON BEACH, a California municipal corporation Mayor APPROVED AS TO FORM C ttorney y0�2��l�C�� IMTIAT AND APPROVED: DejXty City Afninistrator/ Director of Community Services 10/23/1998 14:44 3103937186 WHITE & COMPANY INS PA E 02 6� VAM 1 1 GMT me dmw� me grans00 "a WHITE & CWFANY INSUltANCE INC. "CLOW "n ow"N"Al" Olt (310) 393-9477 AL"m Tm 22ML" Appomm sr vm P-O..L.X—= OIL" P. 0. BOX 70 =w� Aobworis ftvr SANTA NONICA, CA. 90406-0070 cowvw A POW ANERICA, ZACK TOO/BEACH CABANA A 040ro ,��q� °a �"'n ZACK PEIR PLAZA cowul 19106 BEACH MST LK OC HUNTINGTON REACH. CA 92646 Jill "a It To Mary ""IT "a ram" cry momwo amm @am omm "m wee 'm we on~ Kum 'am no Im ftLw 010- 10WWMWIRPOM AW FUCUMMOff, WW OR 001MMM OF AW CONIMAT OR 0. 000AMW WM PMPNI 10 WNW "M mmmft MAY a ON= am MAY pm*^,nu omftvm mwavw ov us Poum =swam "WIM Is awjw 10 ML "m 7w WOMMOM #AD oo1MfT0 1 CW SM F=X=& IMM WIWM MAY WM @M NOW= M PAID ft*&At A amn wm am PAC6023575 6/4198 6/4/99 mama amw sum—f,61-mal'am OWN" 4 WARM ON" W THE PARTIES SPECIFIED IREUNDER 0 OF THAT commem wom umff a momv nimy Au air revs ALL REGUM NOTICES W, OF THE "COMPANIESNG RE THE R $101 CoV C O 0 BlUTY a - THE I PRODUCER WHErKER AN TATWE OR NOT, BEARS0 -- UTH0 Cl RESPONSOILITY REPRESEW FOR �Llft KAM ANY NOTICE. PFA~V "No C) - Raft Gfl�!J- f*r;,T,—, I'm w-pumw 6 CEATIFICATE WOU IS ROM AS AN ADDITIONAL INSURED WITH RESPECTS LOCATION-. 405 PACIFIC COST HIGMY. HUNTINGTON BEACH, CA- 92640 *10 DAY CANCE11ATION FOR- NON -PATIENT CITY OF NUNTINVON COMMITY SERVICES AMIN STREET IpW&= IMM BEACH' -------- --- - sow mw w 10 ADM wwwawasum swam "a BEACH amou"m wm Immom "a somm tompmv suttwwuvlalw DEPARTMENT 30 CA. 92648 i • • RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: APPROVAL OF PIER PLAZA BEACH CONCESSION AWARD TO MICHAEL ALI COUNCIL MEETING DATE: November 2, 1998 Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attome Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable RCA Author: CITY CLERIC FOB CITY OF HUNTINGTON BEAC . a , TON E E=TIrI���?I# IIE�iCH� CA INTER -DEPARTMENT COMMUNICATION HUNMGTON BEACHl i i9 J l- P. 4 2 TO: Connie Brockway, City Clerk - FROM: Gail Hutton, City Attorney DATE: January 5,1999 SUBJECT: Pier Plaza Lease with Mike Ali Pursuant to. Ron Hagan's request, we have prepared changes to pages one and two of the Pier Plaza concession agreement with Mike Ali. The changes are not substantive, and Mr. Hagan informs us that Mr. Ali has reviewed the changes and accepts them. The corrected pages are attached hereto for substitution in the original lease. As you may recall, the City Council approved this lease subject to approval by the State of California. The State has approved the Lease. with the suggested, non -substantive changes. GAIL HUTTON =+- City Attorney s r ;l Attachments: Pages 1 and 2 to Lease Agreement Between the City and, Michael Ali, DBA Pier Plaza Beach Concession,Z C,_ ca 1/8/99 Please have the May�„ornd Michael Ali initial the changes to page 1 and 2 of the agreement and return to my office for eAcution. Thank Yo Connie • RECEIVED FE CiTY CLERK CITY OCITY OF HUNTIWt�'P T11i TON BEACH. A INTER -DEPARTMENT COMMUNICATION -b 4: 22 HUNTINGTON UACH TO: Connie Brockway, City Clerk FROM: Gail Hutton, City Attorney DATE: January 5,1999 SUBJECT: Pier Plaza Lease with Mike Ali Pursuant to Ron Hagan's request, we have prepared changes to pages one and two of the Pier Plaza concession agreement with Mike Ali. The changes are not substantive, and Mr. Hagan The corrected pages are attached hereto for sub st :xn na ease: As you may recall, the City Council approved this lease subject to approval by the State of California. The State has approved the Lease with the suggested, non -substantive changes. GAIL HUTTON City Attorney Attachments: Pages l and 2 to Lease Agreement Between the City and Michael Ali, DBA Pier Plaza Beach Concession 71 � a,�.. G*98ffw=s:c1rk1229 R RECEIVED CITY CLEP,Ii CITY OF HUN TINGTON BEAC 4T;H' D � ACH CA INTER -DEPARTMENT COMMUNICATION f(z{� }'ii .} . NUNnNC,MN BEACH �`fil tii 1 " � P. 4" G �? TO: Connie Brockway, City Clerk FROM: Gail Hutton, City Attorney DATE: January `5,1999 SUBJECT: Pier Plaza Lease with Mike Ali Pursuant to. Ron Hagan's request, we have prepared changes to pages one and two of the Pier Plaza concession agreement with Mike Ali. The changes are not substantive, and Mr. Hagan informs us that Mr. Ali has reviewed the changes and accepts them. The corrected pages are attached hereto for substitution in the original lease. As you may recall, the City Council approved this lease subject to approval by the State of California. The State has approved the Lease. with the suggested, non -substantive changes. GAIL HUTTON .CityAttorney Y Attachments: Pages 1 and 2 to Lease Agreement Between the City and -= Michael Ali, DBA Pier Plaza Beach Concession 118l99 Please have the Mayor and Michael Ali initial the changes to page 1 and 2 of the agreement and return to my office for execution. Thank You Connie • 11-02-98 11:30AM FROM 114 TO CITY CLERK 0 P01 a CTly �R • CITY OF * ' CITY OF HUNTINGTON BEACUNTIN ��IN . ACC, CA INTER -DEPARTMENT COMMUNICATION jgg8 � � � A` ' 31 HUNTINGTON BEACH City Council via City Administrator Ron Hagan, Director, Community Services DATE: \ November 2, 1998 SUBJECT: CORRECTION ON AGENDA ITEM E-8 MIKE ALI LEASE There is a typo in the nalysis section of the RCA for Item E-8. The proposed percentage rates are stated in the RISA at 10%, 12%, and 14%, In fact, they are 10-1/2%, 12-1/2%, and 14- I /2% as shown in a agreement attached to the RCA. Staff apologizes for the error kd any confusion that it may have caused. • RH.gc cc: Department Heads J� CITY OF HUNTINtiT't1 BEACH FE)INTER -DEPARTMENT COMMUNICATION HU"NGTON BEACH TO: City Council via City Administrator FROM: Ron Hagan, Director, Community Services DATE: November Z, 1998 SUBJECT: ADDITIONAL LANGUAGE FOR THE RECOMMENDED ACTION ON AGENDA ITEM E-8 (MIKE ALI PIER PLAZA BEACH CONCESSION LEASE The City Attorney's office has informed staff that per the terms and conditions of the city's operating agreement for Pier Plaza, the Pier Plaza. Beach Concession Lease Agreement is required to, have the approval of the State Department of Parks and Recreation as well as the city's approval. Consequently, staff would like the City Council to amend the recommended action as follows: Subject to the approval of the State of California Department of Parks and Recreation, motion to approve the concession agreement with Mike Ali for the operation of the beach concession located on the north side of the pier in the Pier Plaza Master Plan. RH:gc �., 6-4"� na knl cl i"` CITY OF HUN' ' W IC"OW;,SWACH INTER -DEPARTMENT COMMUNICATION HU"NGTON BEACH TO: City Council via City Administrator FROM: Ron Hagan, Director, Community Services DATE: November 2, 1998 SUBJECT: CORRECTION ON AGENDA ITEM E-8 N41U ALI LEASE There is a typo in the analysis section of the RCA for Item E-8. The proposed percentage rates are stated in the RCA at 10%o, 12%, and 14%. In fact, they are 10.5%, 12.5%e, and 14.5% as shown in the agreement attached to the RCA. Staff apologizes for the error and any confusion that it may have caused. RH:gc cc: Department Heads r7 > `"� 2' J. CITY OF HtiMiT` MOT W SUAC# INTER -DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: City council via city Administrator FROM: Ron Hagan, Director, Community Services DATE: November 2, 1998 SUBJECT: CORRECTION ON AGENDA ITEM E-8 MIKE ALI LEASE There is a typo in the analysis section of the RCA for Item E-8. The proposed percentage rates are stated in the RCA at 10%, 12g/, and 140%. In fact, they are 10.50%, 12.50/9, and 14.5% as shown in the agreement attached to the RCA Staff apologizes for the error and any confusion that it may have caused. RH:gc cc: Department Heads c� b