HomeMy WebLinkAboutApplied Computer Solutions - 2000-06-19Council/Agency Meeting Held: v
Deferred/Continued to:
ApproveApproveQ ❑ Conditionally Approved ❑ Denied
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Council Meeting Date: May 17, 2010
Department ID Number: ED 10-19
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Administrator
PREPARED BY: Stanley Smalewitz, Director of Economic Development
SUBJECT: Approve and authorize execution of Amendment No. 1 to the Sales
Tax Agreement between the City of Huntington Beach and Applied
Computer Solutions (ACS)
Statement of Issue: The purpose of this Amendment is to extend the existing Agreement
with Applied Computer Solutions to rebate a portion of the of annual sales tax increment
generated by their taxable sales for ten (10) years, and establish a new formula with which to
calculate the rebated amount.
Financial Impact: This Agreement is funded through General Fund revenues, using a
formula that reimburses a portion of the sales tax revenue generated by Applied Computer
Solutions. Funds are available in account 10180101.79350 (Economic Development,
Business Development) to cover this expenditure through the remainder of 2009/2010.
Recommended Action: Motion to:
Approve and authorize execution of the "Amendment No. 1 to Sales Tax Agreement Between
the City of Huntington Beach and Applied Computer Solutions."
Alternative Action(s):
Do not approve and authorize execution of Amendment No. 1 and direct staff accordingly.
-29- Item 4. - Page 1
REQUEST FOR COUNCIL ACTION
MEETING DATE: 5/17/2010 DEPARTMENT ID NUMBER: ED 10-19
Analysis: Applied Computer Solutions (ACS) is a local computer systems firm providing
systems design and integration, security, design, project management, and training and
support of computer equipment. ACS' corporate office is located on Springdale Avenue in
the Northwest Industrial Area, where they have been since 2001, and previously located on
Sampson Lane in Huntington Beach. They have consistently remained as one of the top 25
Huntington Beach sales tax producers during the past several years.
Under an Agreement between the City of Huntington Beach and ACS, the City currently
rebates a portion of the sales tax increment to ACS that is generated in Huntington Beach.
Under the existing Agreement, ACS receives a rebate of 30% of the sales tax increment it
generates annually over a base generation of $200,000. If they generate a sales tax
increment of over $600,000 annually, ACS then receives a rebate of 35%. The maximum
rebate ACS can receive in any one calendar year is $200,000. The Agreement went into
effect on July 5, 2000, and expires on June 30, 2010.
The Agreement approved by the City Council in 2000, was an effort to keep ACS in
Huntington Beach, as they were considering a move to another city to find a site that could
accommodate their continuing growth at a lower cost. They made this request to the City for
this assistance so they could remain in Huntington Beach, and moved to the Springdale
location after the original Agreement was approved.
While ACS continues to be a major generator of sales tax, they are also making efforts to cut
costs in a challenging economy. They have indicated that options include relocating their
corporate offices to another community entirely, or to consider a transfer of its point of sale
operations to one or more of its nine other offices outside of Huntington Beach. Either option
will result in a loss to the City of all sales tax generated by ACS. With an interest in remaining
in Huntington Beach, ACS approached the City with a request to consider an extension of the
Agreement prior to its expiration in June. Staff met with ACS and successfully negotiated a
reduction in the percentage of sales tax shared.
Under the proposed Amendment, ACS shall receive a rebate of 25% of the sales tax
increment it generates annually over a base of $200,000. Should they generate a sales tax
increment of over $600,000 annually, they will receive a rebate of 35%. The term of the
Amendment is for ten (10) years, expiring on June 30, 2020. The Amendment also provides
ACS with an exclusive option to request consideration of an increase in the rebate
percentage, base generation of sales tax increment, or annual sales tax increment for the
second half of the operating period, July 1, 2015-June 30, 2020. However, should the City
choose not to consider an increase, or should any such increase not receive approval from
the City Council, the rebate amounts will remain the same for the remainder of the operating
period.
Environmental Status: Not applicable.
Strategic Plan Goal: Enhance Economic Development
Item 4. - Page 2 -30-
MEETING DATE: 5/17/2010 DEPARTMENT ID NUMBEY.—ED—WI-9
Attachrnent(s):
Amendment No. 1 to Sales Tax Agreement Between the City of Huntington Beach and
Applied Computer Solutions.
-31- Item 4® - Page 3
L W ',ATTACHMENT
AMENDMENT NO. 1 TO
SALES TAX AGREEMENT BETWEEN THE
CITY OF HUNTINGTON BEACH AND APPLIED COMPUTER SOLUTIONS
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 APPLIED COMPUTER SOLUTIONS, a California corporation, hereinafter
referred to as "Business Owner."
WHEREAS, City and Business Owner are parties to that certain agreement, dated July
5, 2000, entitled "Sales Tax Agreement Between the City of Huntington Beach and Applied
Computer Solutions" which agreement shall hereinafter be referred to as the "Original
Agreement," and
City and Business Owner wish to extend the term of the Original Agreement and
amend various other Sections of the Original Agreement as set forth below,
NOW, THEREFORE, it is agreed by City and Business Owner as follows:
1. Section 1. DEFINITIONS, the following subsections are modified to read:
Section 1.2, "Commencement Date" shall mean July 1, 2010.
Section 1.6, "Operating Period" shall mean the period beginning with the
Commencement Date and expiring ten (10) years later, on June 30, 2020.
2. Section 2. THE PARTIES, subsection 2.1 Business Owner is amended to
reflect the mailing address for Business Owner as 15461 Springdale Street, Huntington
Beach, CA 92649.
3. Section 4. OBLIGATIONS OF CITY, subsection 4.1 is amended to read as
follows:
4.1: Tax Rebate. During the first five years of the operating period (July 1,
2010-June 30, 2015), the rebate shall be provided as follows:
- City shall rebate to business owner twenty-five percent (25%) of annual Sales
Tax Increment above a base of Two Hundred Thousand Dollars ($200,000) per
year generated by the Business Owner within the City of Huntington Beach. Such
rebate shall apply to annual Sales Tax Increment above a base of Two Hundred
Thousand Dollars ($200,000) up to an Annual Sales Tax Increment of Six Hundred
Thousand Dollars ($600,000). If the Sales Tax Increment is at or above Six
Hundred Thousand Dollars ($600,000) per year, the tax rebate shall then be
calculated at the rate of thirty percent (30%) of annual Sales Tax Increment above
the Two Hundred Thousand Dollars ($200,000) base, not to exceed a total rebate of
Two Hundred Thousand Dollars ($200,000) per year, all as more particularly set
forth in Exhibit "A" to this amendment.
10-2462/45711 Page 1 of 3
- Business Owner shall have an exclusive option to request consideration of an
increase in the rebate percentage, base generation of Sales Tax Increment or
Annual Sales Tax Increment for the second operating period of July 1,2015-July
1,2020. If the City should choose not to consider an increase, or should a negotiated
increase not receive approval by a majority of the City Council, the City shall
continue to rebate to business owner, through the remainder of the operating
period, not less than twenty-five percent (25%) of annual Sales Tax Increment
above a base of Two Hundred Thousand Dollars ($200,000) per year generated by
the Business Owner within the City of Huntington Beach. Such rebate shall apply
to annual Sales Tax Increment above a base of Two Hundred Thousand Dollars
($200,000) up to an Annual Sales Tax Increment of Six Hundred Thousand Dollars
($600,000). If the Sales Tax Increment is at or above Six Hundred Thousand
Dollars ($600,000) per year, the tax rebate shall then be calculated at the rate of
thirty percent (30%) of annual Sales Tax Increment above the Two Hundred
Thousand Dollars ($200,000) base, not to exceed a total rebate of Two Hundred
Thousand Dollars ($200,000) per year. For the entire operating period, or until such
time as the Annual Sales Tax Increment is amended by majority vote of the City
Council, the City shall not begin paying a reimbursement at the thirty percent
(30%) rate until the Sales Tax Increment actually exceeds Six Hundred Thousand
Dollars for the fiscal year to date and not merely when a quarterly reimbursement
would exceed Six Hundred Thousand Dollars if it were to be annualized.
4. Section 4. OBLIGATIONS OF CITY, subsection 4.3.3 deleted and replaced as
follows:
4.3.3. For purposes of reconciling the reimbursement payments City is
required to make to Business Owner during any Fiscal Year of the Operating Period, the Sales
Tax Increment thresholds set forth in 4.1 shall be prorated on a quarterly basis.
5. Section 6. GENERAL PROVISIONS, subsection 6.13 Notices is amended as
follows:
6.13. Notices. Any notice, approval, demand or other communication
required or desired to be given pursuant to this Agreement shall be in writing and shall be
effective upon personal service (including by means of professional messenger service) or,
five (5) days after mailing via United States first-class mail or two (2) days after mailing via
Federal Express or other similar reputable overnight delivery service. Any notice shall be
addressed as set forth below:
If to City:
If to Business Owner:
City of Huntington Beach Applied Computer Solutions
Attn: Director of Economic Development Attn: Mike Davis, CFO
2000 Main Street 15461 Springdale Street
Huntington Beach, CA 92648 Huntington Beach, CA 92649
10-2462/45711 Page 2 of 3
Either City or Business Owner may change its respective address by giving written notice to
the others in accordance with the provisions of this section.
6. 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 and through their authorized officers / ?'? A0 /d
APPLIED COMPUTER SOLUTIONS
By:,
print name
ITS: (circle one) Chainna(reside)Vice President
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
A INITIATED AN APPROVED:
By:
A CHA�-r s Director of Economic Deve opment
print name
ITS: (circle one) Secreta Chief Fin
Officer/Asst. Secretary - Trea
Administrator
APPROVED AS TO FORM:
pp r-
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City Attorney
L4-j.16
10-2462/45711 Page 3 of 3
EXHIBIT "A"
ILLUSTRATIVE SALES TAX REBATES
Annual; Salbi3pTax
Amount,,Ablove,,.RAp,,e-
ACYS ,
lNet Sales Tax to City
111111;
" NMI , ''
"A '00'19
>9"
$
250,000.00
$
50,000
$
12,500.00
$
237,500.00
$
300,000.00
$
100,000.00
$
25,000.00
$
275,000.00
$
350,000.00
$
150,000.00
$
37,500.00
$
312,500-00
$
400,000.00
$
200,000.00
$
50,000.00
$
350,000-00
$
450,000.00
$
250,000.00
$
62,500.00
$
387,500-00
$
500,000.00
$
300,000-00
$
75,000.00
$
425,000-00
$
550,000.00
$
350,000.00
$
87,500.00
$
462,500.00
$
600,000.00
$
400,000.00
$
100,000.00
$
500,000-00
$
650,000.00
$
450,000-00
$
112,500.00
$
537,500-00
$
700,000.00
$
500,000-00
$
125,000.00
$
575,000-00
$
750,000.00
$
550,000-00
$
137,500.00
$
612,500-00
$
800,000.00
$
600,000.00
$
180,000.00
$
620,000-00
$
850,000.00
$
650,000.00
$
195,000.00
$
655,000-00
City of Huntington Beach
2000 Main Street ® Huntington Beach, CA 92648
OFFICE OF THE CITY CLERIC
JOAN L. FLYNN
CITY CLERK
May 27, 2010
Applied Computer Solutions
Attn: Mike Davis, CFO
15461 Springdale Street
Huntington Beach, CA 92649
Dear Mr. Davis:
Enclosed for your records is a copy of Amendment No. 1 to the Sales Tax Agreement
between the City of Huntington Beach and Applied Computer.
Sincerely,
JF:pe
Enclosure
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Sister Cities: Anjo, Japan • Waitakere, New Zealand
(Telephone: 714-536-5227 )
•
CITY OF HUNTINGTON BEACH
2000 MAIN STREET
CALIFORNIA 92648
OFFICE OF THE CITY CLP-RK
CONNIE BROCKWAY
CITY CLERK
LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
DATE: 07-19-00
TO: Applied Computer Solutions ATTENTION: Mike Davis, CFO
Name
17911 Sampson Lane DEPARTMENT:
Street
Huntington Beach, CA 92647 REGARDU G: Sales Tax Agreement
City, state, Zip
See Attached Action Agenda Item E-4 Date of Approval 7-5-00
Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks:
Connie Brockway
City Clerk
Attachments: Action Agenda Page
CC: D. Biggs
X Agreement X
RCA
Econ. Dev.
Name
Department
E. Naffah
Eton. Dev.
Name'
Department
Name
Department
Name
Department
C. Mendoza
X
Risk Management Dept.
x
RCA
X
RCA
RCA
RCA
Bonds
Insurance X
Deed
Other
x
X
Agreement
Insurance
Other
x
x
Agreement
Insurance
Other
Agreement
Insurance
Other
Agreement
Insurance
Other
X
Insurance
GTollowup/Letters/coverltr
t Te to pho n e: 714-53"2271
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Council/Agency Meeting Held:
efer d ontinued to: -1-- S — eo
❑ Approved ❑ Conditionally Approved 0 Denied
• Ci I s Signature
Council Meeting Date: June 19, 2000
Dep rtment ID Number: ED 00-24
Ce:
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
C-_
SUBMITTED BY: RAY SILVER, City Administrator
PREPARED BY: DAVID C. BIGGS, Director of Economic Development__ T
SUBJECT: Approve the Retention/Relocation Of Applied Computer Sofutipps
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Applied Computer Solutions, a California corporation owned by Michael and
Sandy Davis of Huntington Beach, is a Huntington Beach computer systems integrator located on
Sampson Lane since 1994. ACS provides systems design & integration, system & network security,
network design, project management, and training & support of computer equipment. ACS was the
City's twenty second largest sales'tax generator during the last quarter of 1999. During the prior four
quarters, the business generated over $360,000 in sales tax revenue to the City. ACS has outgrown
its current location and has difficulty in identifying a new location in Huntington Beach that meets its
needs without incurring extraordinary costs. City staff has assisted Applied Computer Solutions in
their site search for a Huntington Beach location, and a suitable location has been identified. ACS is
requesting assistance from the City to meet the increased costs associated with retaining its
operations in Huntington Beach as opposed to more cost effective locations in other cities.
Funding Source: General Fund revenues through a formula that reimburses a portion of the sales
tax revenue generated by Applied Computer Solutions.
Recommended Action: Motion to:
1. Approve the Sales Tax Agreement between the City of Huntington Beach and Applied Computer
Solutions and authorize its execution by the Mayor and City Clerk.
2. Approve an appropriation of $15,000.00 from the General Fund Unappropriated Fund Balance for
maximum costs for the 1999-2000 fiscal year.
Alternative Actlon[s]:
1. Do not approve the attached Sales Tax Agreement between the City of Huntington Beach and
Applied Computer Solutions.
2. Direct city staff/City Attorney to modify the attached Sales Tax Agreement between the City of
Huntington Beach and Applied Computer Solutions.
0 •
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: June 19, 2000 DEPARTMENT ID NUMBER: ED 00-24
Analysis: The proposed agreement between the City of Huntington Beach and Applied Computer
Solutions has an effective date of July 1, 2000. While only half of its sales are taxable, ACS is one of
the City's top sales tax producers with a high probability of future growth in taxable sales. ACS
currently operates in leased premises, which it has outgrown. ACS has had difficulty in locating a
building within Huntington Beach that would accommodate its needs and timing requirements. As
such, ACS has been looking also at locations outside of Huntington Beach. There are locations in
neighboring communities that generally meet ACS's requirements and timing needs at lower cost
than the opportunities in our City.
ACS's options are either to move to a city with flex -tech buildings (combined industrial warehouse
and commercial office space with increased parking), or to find a building in Huntington Beach with
adequate parking. ACS has been looking to meet the parking requirements of its staff, but the
parking ratios in the City would require it to find a much larger building. ACS has been looking to
lease a larger building in order to meet its near -term and longer -term space needs. The principals of
ACS, Mike and Sandy Davis, have bought a larger building in Huntington Beach that they will lease to
ACS. The $3 million in improvements to this building and its size, (currently double the needs of
ACS), will result in substantially higher occupancy costs. ACS is requesting that the City assist them
in meeting some of these extraordinary occupancy costs.
In keeping with the general direction provided by Council regarding these types of requests, staff has
formulated an offer of assistance, based upon the following:
♦ ACS to invest all required funds upfront;
♦ Offer a rebate of the annual sales tax increment above a base of $200,000 generated by the
retention of this use and any increases in taxable sales volume. The rebate shall be 30% until the
annual sales tax reaches $600,000, and above $600,000 the rebate level shall increase to 35%
above the base;
♦ The rebate shall be applied to repay ACS for a portion of these extraordinary occupancy costs not
to exceed $200,000 per year for a period not to exceed 10 years;
♦ Payments to ACS would be made quarterly in arrears following the receipt of the City of the sales
tax revenues for the quarter.
Further details are included in the attached Agreement prepared by the City Attorney's office.
In summary, approval of this agreement will convert a potential significant loss to the General Fund
into a possible long-term financial gain for the City. Applied Computer Solutions has identified
locations in Garden Grove and Irvine that better meet its needs, and contemplated leaving Huntington
Beach if unable to find a suitable site. In addition, other cities have offered ACS an incentive
package to induce them to relocate. If ACS moves, the current $360,000 in annual sales tax revenue
to the City will become $0. With this agreement, the City retains at least $312,000 of sales tax at the
$360,000 level with substantial opportunity for growth in the future.
All indications are that ACS will continue to grow. - From the 97198 fiscal year to the 98199 fiscal year,
the annual sales tax revenue to the City from ACS increased by $165,000. By the 99100 fiscal year,
revenue to the City from ACS will exceed $100,000 over last fiscal year. This agreement will assure
that Applied Computer Solutions will remain in Huntington Beach for the foreseeable future.
Rcaacs -2- 618/00 8:22 AM
REQUEST FOR CITY COUNCIL 11CTION
MEETING DATE: June 19, 2000
DEPARTMENT ID NUMBER: ED 00-24
Council Polic Re ardinci Requests For An Appropriatlon Of Funds: As adopted by the City
Council in March 1998, all requests for appropriation of funds must meet one of the following criteria:
1) The request is for an unanticipated emergency, 2) The request is required to implement labor
negotiations, or 3) The request will be offset by related new revenues.
The new appropriation requested is offset by related new revenues retained by the Sales Tax
Agreement between the City and Applied Computer Solutions.
Environmental Status:
Attachment(s):
1►n
1. 1 Sales Tax Agreement Between the City and ACS.
2. Fiscal Impact Statement
3. 1 Certificates of Insurance.
RCA Author: Eli Naffah, 5088
RCAACS -3- 6/7100 8:37 AM
0
Sales Tax Agreement Between the City and ACS
#
E.. N
�!AT ;:.1:` '[p.
SALES TAX AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH
AND
APPLIED COMPUTER SOLUTIONS
THIS SALES TAX AGREEMENT ("Agreement"), dated as of July 5
2000, is entered into by and between the CITY OF HUNTINGTON BEACH, a municipal
corporation of the State of California ("City"), and APPLIED COMPUTER SOLUTIONS, a
California corporation ("Business Owner").
RECITALS
A. Business Owner is in the business of selling computer systems. Business Owner's
current point of sale for purposes of the uniform Local Sales and Use Tax Law is located at
17911 Sampson Lane, Huntington Beach, CA 92647.
B. Business Owner is currently contemplating relocating its business to a location
outside of Huntington Beach because substantially higher occupancy costs would result if
Business Owner remained in Huntington Beach.
C. City recognizes that relocation of Business Owner to another city will harm the
economic vitality of the City. City further recognizes that retention of Business Owner will
contribute to the economic vitality of the City, provide additional jobs, expand the City's tax base
and otherwise improve economic and physical conditions in the City.
D. In order to induce the Business Owner to retain its business in Huntington Beach
and lease a 39,000-square-foot premises therein, the City is willing to provide financial
assistance to the Business Owner as described in this Agreement, provided that Business Owner
leases the 39,000 square foot premises and continues to make Computer Systems Sales within
the City during the Operating Period.
E. By its approval of this Agreement, the City Council of City finds and determines
that this Agreement serves a valid public purpose through expanding economic opportunities for
businesses in the City, expanding the City's employment base, and generating Sales Tax that City
can utilize to fund general governmental services such as police, fire, street maintenance, and
parks and recreation programs. City and Business Owner have agreed that the respective
considerations are a fair exchange.
F. The City has found that it is of benefit to the City and its citizens that certain
obligations be imposed upon Business Owner's current and future place of business and to ensure
continued computer systems sales and the resulting increase in sales -tax revenues to the City.
0 •
NOW, THEREFORE, based upon the foregoing Recitals and in consideration of the
mutual covenants and conditions hereinafter set forth, Business Owner and City agree as follows:
DEFINITIONS.
The capitalized terms and words used in this Agreement shall have the following
meanings unless expressly provided to the contrary:
1.1 'Base Sales Tax Increment" shall mean the first Two Hundred Thousand Dollars
(S200,000.00) the City receives in Sales Tax Increment.
1.2 "Commencement Date" means July 1, 2000.
1.3 "Event of Default" means any event so designated in this Agreement.
1.4 "Fiscal Year" means July 1 through June 30.
1.5 "Laws" means all statutes, laws, ordinances, regulations, orders, writs, judgments,
injunctions, decrees or awards of the United States or any state, county, municipality or other
Governmental Agency.
1.6 "Operating Period" means the period beginning with the Commencement Date
and expiring ten (10) years later, on June 30, 2010.
1.7 "Party" means any party to this Agreement. The "Parties" shall be all parties to
this Agreement.
1.8 "Penalty Assessments" means penalties, assessments, collection costs and other
costs, fees or charges resulting from late or delinquent payment of Sales Tax and which are
levied, assessed, or otherwise collected from the business on the Site owing or obligated to pay
Sales Tax.
1.09 "Person" means any entity, whether an individual, trustee, corporation,
partnership, trust, unincorporated organization, governmental agency or otherwise.
1.10 "Sales Tax Increment" means that portion of taxes derived and received by the
City of Huntington Beach from the imposition of the Bradley Burns uniform Local Sales and
Use Tax Law, commencing with Section 7200 of the Revenue and Taxation Code of the State of
California, as amended, or its equivalent, arising from all businesses and activities conducted on
the Sites. Sales Tax Increment shall not include Penalty Assessments, any Sales Taxes levied
by, collected for or allocated to the State of California, the County of Orange, a district or any
other entity, or any funds paid, granted or allocated to City by the State of California, the County
of Orange, a district or any other entity, notwithstanding that such funds received by City are
derived or measured by such other entity based upon Sales Taxes. The Sales Tax Increment shall
not exceed one percent (1%) upon taxable sales and uses on the Sites.
adlagrecApplied-Sales Tax 5'03 2
1.11 "Sites" refer to the properties within the city of Huntington Beach where Business
Owner currently operates its business and the new premises located at 15461 Springdale,
Huntington Beach, California, which Business Owner will ]ease and wherein Business Owner
will -relocate to conduct Computer Systems Sales in the future.
1.12 "Sales Tax" means the tax derived from the Business Owner's business conducted
on the Site and a portion of which is a] located to and received by the City pursuant to the
Uniform Local Sales and Use Tax Law, commencing with California Revenue and Taxation
Code Section 7200 et seq., as amended.
2. THE PARTIES
2.1 Business Owner. Business Owner Applied. Computer Solutions, a California
corporation whose mailing address for purposes of this Agreement is: 17911 Sampson Lane,
Huntington Beach, California. Wherever the term "Business Owner" is used in this Agreement,
the term shall be deemed to refer to Applied Computer Solutions.
Business Owner may not assign the rights and obligations of this Agreement to any other
person without the written consent of the City, which consent the City may not unreasonably
withhold.
By executing this Agreement, Business Owner warrants and represents to City that it has
the full power and authority to enter into this Agreement and that all authorizations and approvals
required to make this Agreement binding upon Business Owner have been duly obtained.
2.2 The City. The City is a municipal corporation, duly organized and existing
pursuant to its Charter.
3. OBLIGATIONS OF BUSINESS OWNER
3.1 Agreement. Business Owner hereby covenants and agrees to operate its
Business on one or the other Site during the Operating Term.
3.2 Sites. Business Owner shall continue to lease its current Site for operating its
Business. Business Owner shall, within a reasonable time, not to exceed one year, relocate its
Business to a new Site in Huntington Beach pursuant to a ten-year lease. If Business Owner is
unable to lease the building in Huntington Beach, Business Owner and the City Administrator
shall negotiate in good faith on an alternative site in the City of Huntington Beach for Business
Owner's business. If said negotiations are unsuccessful, either party may terminate this
Agreement upon thirty (30) days' written notice to the other party.
adlingree::Applied-Sales Tax 5 03 3
3.3 Maximize Sales Tax. During the Operating Period, Business Owner shall use its
best efforts, consistent with the requirements of law, to designate the Sites as the point of sale in
all sales of its products.
3.4 Indemnification. From the Commencement Date of this Agreement through the
Termination Date, Business Owner shall indemnify, defend, and hold harmless City and its
officers, employees and agents, from and against all liabilities, obligations, claims, damages,
penalties, causes of action, judgments, costs and expenses (including, without limitation,
reasonable attorneys' fees and expenses) (collectively "Claims") imposed upon or incurred by or
asserted against City arising out of any act or omission of Business Owner its Business; provided,
however, that the aforesaid obligations of Business Owner shall not apply to the extent any Claim
results from the active negligence or intentional misconduct of City or any of City's officers,
employees, agents, or contractors. In the event that any action, suit or proceeding is brought
against City by reason of any such occurrence, Business Owner, upon City's request, will, at
Business Owner's expense, defend such action, suit or proceeding.
3.5 Insurance. Business Owner shall take out and maintain in.effect through the .
Operating Period, at Business Owner's sole cost and expense, the following insurance policies in
the minimum amounts specified and in the forms provided below:
(i) Comprehensive General Liability in an amount not less than One Million
Dollars (SI,000,000) combined single limits for each occurrence for bodily injury, personal
injury, and property damage including contractual liability. City and its officials, employees and
volunteers shall be covered as additional insureds with respect to liability arising out of activities
by or on behalf of Business Owner or in connection with the use or occupancy of the Sites.
Coverage shall be in a form reasonably acceptable to the City's Risk Manager and shall be
primary as to any insurance or self-insurance maintained by City.
(ii) Workers' Compensation as required by the Labor Code of the State of
California and Employers' Liability insurance in an amount not less than Two Hundred Fifty
Thousand Dollars (5250,000).
3.5.1 Acceptable insurance coverage shall be placed with carriers admitted to
write insurance in California, or carriers with a rating of or equivalent (as reasonably determined
by City's Risk Manager) to ANIII by A. M. Best & Company. Any deviation from this rule shall
require specific written approval from City's Risk Manager. Any deductibles or self -insured
retentions in excess of Ten Thousand Dollars must be declared to and approved by City, which
approval may not be unreasonably withheld. Coverage under each policy shall not be suspended,
avoided, or canceled except after 30 days (or 10 days in the case of nonpayment of premiums)
prior written notice to City. Business Owner shall furnish City with certificates of insurance and
with original endorsements effecting coverage as required under this section. The certificates
and endorsements for each insurance policy shall be signed by a person authorized by the insurer
to bind coverage on its behalf. City reserves the right to require complete certified copies of all
insurance policies at any time.
ad]/agree/Applied-Sales Tax 903 4
0 •
3.6 Local, State and Federal Laws. Business Owner shall carry out the operation of
the business in conformity with all applicable local, state and federal laws.
3.7 Anti -discrimination. Business Owner shall not discriminate against any employee
or applicant for employment because of age, sex, marital status, race, handicap, color, religion,
creed, ancestry, or national origin.
3.8 Business Owner's Representations and Warranties. Business Owner makes the
following representations and warranties as of the date of this Agreement and agrees that such
representations and warranties shall survive and continue thereafter but shall not be remade after
the date of this Agreement.
3.8. l No Litigation. There is no litigation, action, suit, or other proceeding
pending or threatened against the Business Owner or the Sites that may adversely affect the
validity or enforceability of this Agreement or the Computer Systems Business at the Sites. To
the best of Business Owner's knowledge, Business Owner is not in violation of any statute, law,
regulation or ordinance, or of any order of any court or governmental entity the effect of which
would prohibit the Business Owner from performing its obligations hereunder.
3.8.2 Authority. Business Owner has complied with all governmental
requirements concerning its organization, existence and transaction of the Computer Systems
Business. Business Owner has the right and power to own and operate its business as
contemplated in this Agreement.
3.8.3 No Breach. To Business Owner's knowledge, none of the undertakings
contained in this Agreement violate any applicable governmental requirements, or conflicts with,
or constitutes a breach or default under, any agreement by which the Business Owner is bound or
regulated.
3.8.4 Warranty gainst Payment of Consideration for Agreement. Business
Owner warrants that it has not paid or given, and will not pay or give, to any third person, any
money or other consideration for obtaining this Agreement, other than normal costs of
conducting business and costs of professional services such as accountants and attorneys.
3.9 Release of City Officials. No member, official, agent, employee, or
attorney of the City shall be personally liable to Business Owner, or any successor in interest of
the Business Owner, in the event of any default or breach by the City or for any amount which
may become due to the Business Owner or its successors, or on any obligations under the terms
of this Agreement. The Business Owner hereby waives and releases any claim it may have
personally against the members, officials, agents, employees, consultants, or attorneys of the City
with respect to any default or breach by the City or for any amount that may become due to the
Business Owner or its successors, or on any obligations under the terms of this Agreement.
adllagree/Applied-Sales Tax 5r03
0
0
4. OBLIGATIONS OF CITY
4.1 Tax Rebate. During the operating period of this Agreement, City shall rebate to
Business Owner thirty percent (30%) of annual Sales -Tax Increment above a base of Two
Hundred Thousand Dollars (S200,000) per year generated by the Business Owner within the City
of Huntington Beach. Such thirty percent (30%) rebate shall apply to annual Sales -Tax
Increment above a base of Two Hundred Thousand Dollars (5200,000) up to an annual Sales -Tax
Increment of Six Hundred Thousand Dollars ($600,000). If the Sales Tax Increment is at or
above Six Hundred Thousand Dollars'($600,000) per year, the tax rebate shall then be calculated
at the rate of thirty-five percent (35%) of annual Sales Tax increment above the -Two Hundred
Thousand Dollars ($200,000) base, not to exceed a total rebate of Two Hundred Thousand
Dollars ($200,000) per year, all as more particularly set forth below.
Illustrative Sales Tax Rebates
Annual Sales Tax
Amount Above Base
Rebate to ACS
Net Sales Tax to City
S
250,000
$
50,000
S
15,000
$
235,000
$
300,000
Is
100,000
' Is
30,000
$
270,000
S
350,000
Is
150,000
S
45,000
$
305,000
S
400,000
$
200,000
S
60,000
$
340,000
S
450,000
S
250,000
$
75,000
S
375,000
S
500,000
S
300,000
$
90,000
: S
410,000
$
550,000
S
350,000
$
105,000
$
445,000
$
600,000
$
400,000 IS
140,000
$
460,000
$
650,000
Is
450,000
$
157,500
$
492,500
S
700,000
$
500,000
S
175,000
$
525,000
$
750,000
$
550,000
S
192,500
$
557,500
$
800,000
Is
600,000
$
200,000 IS
600,000
S
850,000 Is
650,000 1
$
200,000 IS
650,000
4.2 Citv's Obligation to Provide Assistance Conditional on Sales Tax Increment. The
City's obligation to provide Business Owner with assistance pursuant to Section 4.1 is
conditioned upon Business Owner producing a Sales Tax Increment of not less than Two
Hundred Thousand Dollars ($200,000) per fiscal year. To the extent that Business Owner does
not meet the Base Sales Tax Increment, then the tax rebate obligations herein shall be reduced to
zero.
4.3 Reimbursement Procedures. All City payments as provided for in Section 4.1 will
be made on a reimbursement basis only. Business Owner shall be reimbursed on a quarterly
basis.
adl:'aeree Applied -Sates Tax 5.103 6
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4.3.1 Business Owner shall submit to City with each reimbursement request
proof of Sales Taxes owed and paid by Business Owner (which proof may be in the form
attached as Attachment No. 1).
4.3.2 City shall reconcile Sales Tax Increment each quarter of the Fiscal Year in
which the Sales Tax Increment was generated on the Sites.
4.3.3 For purposes of reconciling the reimbursement payments City is required
to make to Business Owner during any Fiscal Year of the Operating Period, the Sales Tax
Increment thresholds set forth in Section 4.1 herein shall be prorated on a quarterly basis. For
example, for the third quarterly reconciliation of the fiscal year beginning July 1, 2000, assume
the total amount of Sales Tax Increment paid by Business Owner to the State Board of
Equalization between July 1, 2000, and March 31, 2001, is Five Hundred Thousand Dollars
(S500,000). The portion of the Base Sales Tax Amount attributable to the July 1 — March 31
period would be One Hundred Fifty Thousand Dollars ($150,000) (75% of $200,000), and the
portion of Sales Tax Increment above the base would be Three Hundred Fifty Thousand Dollars
($350,000) for the three quarters. Accordingly, the reimbursement owed by City to Business
Owner would be One Hundred Five Thousand Dollars ($105,000) less any reimbursements
previously paid for the first two quarters. However, City shall not begin paying a reimbursement
at the thirty-five percent (35%) rate until the Sales Tax Increment actually exceeds Six Hundred
Thousand Dollars ($600,000) and not merely when a quarterly reimbursement would exceed Six
Hundred Thousand Dollars if it were to be annualized.
4.3.4 The City shall finally determine if the Business Owner has met the Sales
Tax Increment threshold for each Fiscal Year for purposes of reconciling the reimbursement
payments pursuant to Section 4.1, as soon as the City has confirmed receipt of Sales Tax
Increment for the same Fiscal Year. If it is determined that there was an overpayment or
underpayment of the quarterly reimbursement payment, then the City shall be entitled to a credit
or the Business Owner shall be entitled to an additional payment concurrently with the next .
reimbursement payment due.
4.4 Confirmation that Sales Tax Increment Has Been Received. City may confirm
that Sales Tax Increment has been received in one of several ways. First, Business Owner shall
provide City, using the form provided as "ATTACHMENT NO. 1", with copies of the quarterly
(or, if applicable, monthly) Board of Equalization reports filed by Business Owner together with
a copy of its canceled check or other proof of payment of Sales Tax reasonably satisfactory to
City. City also may rely upon the Board of Equalization report, which follows payment to City
setting forth the sources of City's portion of the Sales Tax. Should City rely upon Board of
Equalization for reports, Business Owner may challenge the accuracy of such reports.
4.5 Legal Challenge. Should any third party successfully challenge the validity of this
Agreement through a taxpayer suit or otherwise, either party may terminate this Agreement upon
thirty (30) days written notice.
adl:agrmApplied-Sales Tax 5:`03
•
4.6 Contingent Liability and Limitations . The tax rebate obligations of the City of
Huntington Beach shall be subject to the provisions of City Charter Section 605, regarding
annual budget appropriations, and shall not exceed the sum of Two Hundred Thousand Dollars
(5200,000) per fiscal year, nor be payable for a period in excess of the ten-year operating period
after relocation to the new site.
5. DEFAULTS AND REMEDIES
5.1 Events of Default. The following shall initiate the default sequence:
(a) If Business Owner materially breaches any of its obligations under
Sections 3.1 through 3.7 of this Agreement.
(b) If Business Owner is found by a trier of fact, after hdaring, to be in
violation of any Local, State or Federal law.
(c) If Business Owner is found by a trier of fact, after hearing, either to be in
violation of any anti -discrimination regulation or to be liable in a suit for discrimination.
(d) If Business Owner fails to provide the City with copies of the quarterly (or,
if applicable, monthly) Board of Equalization reports filed by its Business Owner together with a
copy of its canceled check or other proof of payment of Sales Tax reasonably satisfactory to City,
as required pursuant to Section 4.3.
(e) If City fails to timely pay its obligations hereunder.
When any of the initiating events occur, City or Business Owner may give the other written
notice to cure. Where such act or omission is not cured within thirty (30) days after that Party's
receipt of written notice that such -obligation was not performed, it shall constitute an Event of
Default; provided that, if cure cannot reasonably be effected within such 30-day period, such
failure shall not be an Event of Default so long as the Party promptly (in any event, within 10
days after receipt of such notice) commences cure, and thereafter diligently (in any event within a
reasonable time after receipt of such notice) prosecutes such cure to completion.
5.2 Remedies Upon Default. Upon the occurrence of any Event of Default, and thirty
(30) days after written notice of default, and after a reasonable opportunity to cure such default,
City or Business Owner, as appropriate, may terminate this Agreement and file any action
available in law or equity.
6. GENERAL PROVISIONS
6.1. Time of the Essence. Time is of the essence of this Agreement and all Parties'
obligations hereunder.
ad]/agree/Applied-Sales Tax 5103 8
6.3 Venue. In the event of any litigation hereunder, all such actions shall be instituted
in the Superior Court of the County of Orange, State of California, or in an appropriate municipal
court in the County of Orange, State of California or an appropriate Federal District Court in the
Southern District of California.
6.4 Applicable Law_. The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
6.5 Execution in Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which shall constitute one and the
same instrument.
6.6 Attachments Incorporated. The Attachment to this Agreement is incorporated
herein by this reference.
6.7 Copies. Any executed copy of this Agreement.shall be deemed an original for all
purposes.
6.8 Severability. If any one or more of the provisions contained herein shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability, unless it affects the substantial rights of a party or defeats the purpose of this
Agreement, shall not affect any other provision of this Agreement, but this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had not been contained herein.
6.9 Interpretation. The language in all parts of this Agreement shall in all cases be
construed as a whole according to its fair meaning, and not strictly for or against any party.
When the context of this Agreement requires, the neuter gender includes the masculine, the
feminine, a partnership or corporation or joint venture or other entity, and the singular includes
the plural.
6.10 No Partnership or Joint Venture. The parties hereto agree that nothing contained
in this Agreement shall be deemed or construed as creating a partnership, joint venture, or
association between City and Business Owner; or cause City or Business Owner to be
responsible in any way for the debts or obligations of the other, and no other provision contained
in this Agreement nor any acts the parties hereto shall be deemed to create any relationship
between City and Business Owner other than that of contracting parties. Further, nothing herein
shall give or is intended to give any rights of any kind to any person not an express party hereto.
6.11 Intimation. This Agreement, including the Attachments attached hereto, is the
entire Agreement between and final expression of the parties, and there are no agreements or
representations between the parties except as expressed herein. All prior negotiations and
agreements between City and Business Owner with respect to the subject matter hereof are
superseded by this Agreement. Except as otherwise provided herein, no subsequent change or
addition to this Agreement shall be binding unless in writing and signed by the parties hereto.
adVagree;'Applied-Sates Tax 5.103 9
E
•
6.12 Nonwaiver. None of the provisions of this Agreement shall be considered waived
by any party except when such waiver is given in writing. The failure of any party to insist in any
one or more instances upon strict performance of any of its rights hereunder shall not be
construed as a waiver of any such provisions or the relinquishment of any such rights for the
future, but the same shall continue and remain in full force and effect.
6.13 Notices. Any notice, approval, demand or other communication required or desired
to be given pursuant to this Agreement shall be in writing and shall be effective upon personal
service (including by means of professional messenger service) or, five (5) days after -mailing via
United States first-class mail or two (2) days after mailing via Federal Express or other similar
reputable overnight delivery service. Any notice shall be addressed as set forth below:
If to City:
David Biggs,
Director of Economic Development
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
with copies to (which shall not constitute)
notice:
City Attorney
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
If to Business Owner:
Applied Computer Solutions
Attn: Mike Davis, CFO
17911 Sampson Lane
Huntington Beach, CA 92647
with copies to (which shall not constitute
notice):
and
Either City or Business Owner may change its respective address by giving written notice to the
others in accordance with the provisions of this Section.
adVagreciApplied-sales "fax 5103 10
•
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
on the dates hereinafter respectively set forth.
BUSINESS OWNER: CITY OF HL-NTI GTO>\ BEACH, a
ATTEST:
dmwe�
City Clerk
REVIEWED AND APPROVED:
Ci Administrator
municipal corporation of the State of
APPROVED A�TO FORM:
f City Attorney
INITIATED AND APPROVED:
6�4# C'
Director of E onomic Development
adl:'agree/Applied-Sales Tax 5 03 11
ATTACHMENT NO. 1
Business Owner's Certificate
Date
Applied Computer Solutions, hereby requests a sales tax rebate in the amount, and on the date,
set forth below, pursuant to that certain Sales Tax Agreement between the City of Huntington Beach
and Applied Computer Solutions. Capitalized terms used and not otherx ise defined herein shall have
the meanings set forth for them in the Agreement.
REQUESTED AMOUNIT:
Business Owner hereby represents and warrants to City that:
On , , Business Owner paid Sales Taxes for the
to fiscal year quarter [month] to the California Board of
Equalization in the amount of S . Attached hereto is a true and complete photocopy
of our quarterly [monthly] filings or other proof of payment.
Applied Computer Solutions
PAYMENT APPROVED:
City Representative
Fiscal Impact Statement
0
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, City Administrator
From: John Reekstin, Director of Administrative Services
Subject: FIS 2000-45 — Approve payment for the
Retention/Relocation of Applied Computer Solutions
Date: May 31, 2000
As required by Resolution 4832, this Fiscal Impact Statement has
been prepared for "Approve payment for the Retention/Relocation of
Applied Computer Solutions."
If the City Council approves this request (total appropriation
$15,000), the estimated unreserved, undesignated General Fund
balance at September 30, 2000 will be reduced to $9,557,659.
�/r
J n Reekstin,
Director of Administrative Services
0
Beginning Fund Balance 10/1/99 (audited)
$ 11,734,000
$ 19,291,000
Plus: Estimated Revenue
114,110,841
114,110,841
Less: Estimated Expenditures
(120,169,841)
(120,169,841)
Pend i ng/Approved FIS's:
(3,659,341)
Less: FIS 2000-45
-
15,000
Estimated 9/30/00 Balance
S 5,675,000
$ 9,557,659
ESTIMATED GENERAL FUND BALANCE
- SEPTEMBER 30,2000
$10,000,000 ..........................
$9,0009000
$8,000,000
$7,000,000
$62000,000 $9,557,659
$5,000,000
$4900%000
$3,000,000 $5,675,000
$2,00%000
$1100%000
$-
ADOPTED BUDGET CURRENT
ESTIMATE
Certificates of Insurance
fir
_ TAICH
�- I''T-Fli!;,
-�,�1.I. I� I IN :r - rl --I'. H I I . I I,- I,I .III I. ��- I,..i+I. _
7.�
G�RTIF1CAiE OF �NSUR/aNCE April 1-8, 2000
PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY
Marsh Advantage America C' ' ` L AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER
701 South Parker Street, 41h Floor *'A1E�+�• THAN THOSE PROVIDED IN THE POLICY. THIS CERTIFICATE DOES NOT
Orange, CA 92868-4720 a� Mr� AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
Ii W LISTED HEREIN.
COMPANIES AFFORDING COVERAGE
INSURED
Applied Computer Solutions
17911 Sampson Lane
Huntington Beach, CA 92647
COMPANY A St. Paul Fire & Marine
LETTER
CO
LETTERNY 6
COMPANY c
LETTER
COMPANY ID
LETTER
COVERAGE$
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION
OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES LISTED HEREIN IS SUBJECT TO ALL THE TERMS,
CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO
LTR
TYPEOFINBURANCE
POLICY NUMBER
POLICY EFFECTIVE
OATIMMMOIYYI
POLICY EXPIRATION
DATEONMMOrm
LIMITS
A
GENERAL
LIABILITY
COMMERCIAL GENERAL LIABILITY
❑ CLAIMS MADE ❑x OCCUR.
TE06101718
10/11 /99
1011 1 /00
GENERAL AGGREGATE
t 2000000
x
PRODUCTS-COMP±OP AGG
a 2000000
PERSONAL & ADV INJURY
1 1000000
EACH OCCURRENCE
t 1000000
FIRE DAMAGE lany One fire]
0 250000
MEO.EXPENSE {any one person)
ersonl person
0 10000
A
AUTOMOBILE
LIABILITY
ANY AUTO
ALL OWNED AUTOS
SC4EDULED AUTOS
HIRED AUTOS
NON -OWNED AUTOS
TE06101718
10/ 11 /99
1 0/ 1 1 /00
COMBINED SINGLE LIMIT
0 1000000
BODILY INJURY leer parson)
S
BODILY INJURY [Per accident)
t
PROPERTY DAMAGE
0
x
x
GARAGE
LIABILITY
ANY AUTO
1 T, j
r�:'�`
1;r 'iU
r�� �''
ph
ph,+tt+
rnH ay
AUTO ONLY • EA ACCIDENT
0
OTHER THAN AUTO ONLY
EACH ACCIDENT
0
AGGHEGATE
0
EXCESS LIABILITY
UMBRELLA FORM
OTHER THAN UMBRELLA FORM
EACH OCCURRENCE
0
AGGREGATE
0
WORKERS' COMPENSATION AND
EMPLOYERS LIABILITY
STATUTORY LIMITS
EACH ACCIDENT
0
DISEASE - POLICY LIMIT
0
DISEASE • EACH EMPLOYEE
0
TITHER
DESCRIPTION OF OPERATIQNSILOCATIONSTYEHICLESISPECIALITEMS The City of Huntington Beach, its Agents, Officers and Employees are named
As Additional Insured, but only as respects operations ususal to the Named Insured. *10 Days for Non -Payment of
Premium. "Revised and replaces Certificate dated 411 B/00"
Certificate Holder
CITY OF HUNTINGTON BEACH
Attn: Dept. Of Economic Development
2000 Main Street
Huntington Beach, CA 92648
CANCELLATION
SHOULD ANY OF THE POLICIES LISTED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER
AFFORDING COVERAGE WILLS MAIL 30* DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER
NAMED HEREIN
Marsh Advantage America Inc. hy:
V
KNT GT N"i S
HAY -8 illk Eu= �)o
r:Y-17-2000 09:55 MERIDIAN INS SERUICES P-01/01
Xu. �tK l lric;t Vf l-iABILI I Y ENS IVC�R sa AHA05/17/01
ADAV1 05/1/00
PRODUCER THIS CERTIFICAT ISSUrED AS A (NATTER OF IN
Cl ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
MERIDIAN INSURANCE BRRV. INC. j�� HOLDER. THIS CERTIFICATE DOES NOT AMEND. E)CTEND OR
4501 S. LA PALMA AVE. STE, 150 Y ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
ANAHBYM CA 93807- �ID- �?INSURERS AFFORDING COVERAGE
Phonee714-693-9100 Fax:714-693-9108
INSURER A:
APADAV COMPUTER SUPPLIES, INC'. INSURER R:
DBA; Applied Computer
Solutions INSURER C:
17 911 SwTeou Lane WaUREIR D
Huntington Reach CA 99647
I INSURER E:
COVERAGES
THE POLIC166 OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONOTTION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WNICN THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN. THE INSURANCE AFFORDED BY THE POUGBS DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
LSK
TR
TYPE OF INSURANCQ
POLICT NUMBER
DATE �
D TE
UMTTS
GENERAL LIABILITY
COMMERCIAL GEf*5RAL LIABILITY
CLAIMS MADE [j OCCUR
EACH OCCURRENCE s
FIRE: DAMAGE {Any am f:Ia] . S
MEI] EXP (Any me porrcn] S
PERSONAL A ADV INJURY I S
GENERAL AGGREGATE IS
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY F7 M F7LOC.
PRODUCTS . COMPIOP AGG
I I
AUTOMOBILE
LIABRJTV
ANY AUTO
ALL OWNED AUTOS
SCHEDULEOAUTOS
HIRED AUTOS
NON-0WNEDAUTOS
u ;,
a � ;{� ` r +� �`�
:t
!LIL
cY
x�`" i 1 Tii�
COMBINED SWGLEUMIT
(Ea acddml)
S
I s
0013 LY WJURY
(P-Per )
'
H
..•
I BODILY INJURY
(Paa�ddant]
I S _
' S
PROPPERTY DAMAGE
PROPERTY
( ]
GARAGE LIAMILITY
ANAUTO
pal " tY O
CiY
u i
AUTO ONLY - EA ACCIDENT
s
OTHER THANFA ACC
AUTO ONLY: AGJi
Y --
S
EXCESS UABILfTY
. OCCUR ❑ CLAIMSMADE
DFJ7UCTIBLE
RETENTION
I
EACH OCCURRENCE
S
AGGREGATE
S
If
_ ...
A
I
WORKERS COMPENSATION AND
EMPL°'rERsuAeuln
14475601
10/01/99
10/01/00
X Y LIMITS ER
F-LEACH ACCIDI:xr
41000000
E.LMSEABE•EAEMPLOYEE
81000000 _
S 1000000
E.L. DISEASE . POLICY LIMIT
OTHER
DESCRIPTION OF OPERATIONS1LO ATIONGNEHICLESUBIONS ADDFA BY EIIDORSEMENTISPECIAL PROVtOONS
+10 Ray Notice of Cancellation Por Han Payment, Of Premium or Nan Report Of
Payroll.
VCR 1 Ir iu^ i G RUL.UGR 0 1 AOWTWKAL INbU1iED; INMWA (.MIA: L4Af7L.CL.1LJAf ILJIa
CITT"2 SNOULO ANY OFTIQ ADM DESCRIBED POLICIES BE CANCELLED BEFORE THE ECPIRATID
City of Huntington Beach DATE THEREOF. THE 188WNGINBURERWILLMAIL 30+ OAYswwTTEN
9conomic Development Div. NOTICE TOTKECERTIFICATE HOLDER NAMED TOTHE LEF7,BUTS
Eli Naffah
7000 Main Street
Huntington Bench CA 92648 �ar�r..�er•
- • T —. A
MAY-17-2000 09:43
CERTIFICATE DEPT
CORPORATION 1988
TOTAL P.01
99% P.01
0 0
RCA ROUTING SHEET
INITIATING DEPARTMENT:
Economic Development
SUBJECT:
App a theRetentIR,eloeation?ofApplied3Computer
��—�
rSolutions�
COUNCIL MEETING DATE:
June 1'9, 2000
R A'ATTACHMENTS. `. -.
STATUS: `
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Not A licable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (wlexhibits if applicable)
Si ned in full 6 the City Attome
Attached
Subleases, Third Party Agreements, etc.
LApproved as to form by City Attome
Not Applicable
Certificates of Insurance (Approved by the City Attome
Attached
Financial Impact Statement Unbud et, over $5,000
Attached
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
EXPLANATION F4.R MISSING:ATTACHMENTS . .
,: RE .IEWED , , h t:
=SRTUR:1E1] ;
�a`I 'II,VARD�D
Administrative Staff 7 adc7
Assistant City Admi istrator Initial
City Administrator (Initial)
-a"
LCity Clerk
E�XPLi�:1►NATIO_N FOR R TU.RIMOOMITEM� n
a_
RCA Author: Naffah