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Home My WebLink AboutBeach Hut - 1995-09-1814 NOTE TO FILE FOLDER 10/09 This contract carries the option of three 5-year automatic renewals from 1995. The next renewal date is 2010. G:Forms/Note to File Folder I — /r,r✓ I0s ►-� Council/Agency Meeting Held: Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied o a City Clerk's Signatur Council Meeting Date: September 18,1995 Department ID Number: 95-007 REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Admini PREPARED BY: ROBERT J. FRANZ, Deputy City Admini SUBJECT: "BEACH HUT" BEACH CONCESSION Statement of Issue, Funding Source, Recommended Action, Alternative Action, Analysis, Environmental Status, Attachment(s) Statement of Issue: The renewal of a beach concession lease between Roy C. McClymonds and Beth A. McClymonds, DBA "Beach Hut" as Lessee and the City of Huntington Beach as Lessor. A new term of five (5) years is proposed, with three five (5) year options if mutually agreed by the concessionaire and the City Council. Step Increase Rents as follows: Annual Sales Volume $ 1 to 100, 000 $100, 000 to 200, 000 $200,000 - Plus Funding Source: None Percentage Rate 10.5% 12.5% 14.5% Recommended Action: Approve the lease with Roy C. McClymonds and Beth A. McClymonds, DBA "Beach Hut" Alternative Action(s): Continue the lease for a period of time - month to month. REQUEST FOR COUNCIL ACTION MEETING DATE: September 18, 1995 DEPARTMENT ID NUMBER: 95-007 Analysis: Mr. & Mrs. McClymonds have been associated with the City's "Beach Hut" concession since their original lease dated April 1, 1968. An Amendment to the Lease, dated June 4, 1984, established their present lease basis at a flat 12.5% fee to the City. Current plans to complete the Pier and beach area include the need to continue this concession operation in its current location. The proposed step increase in the rents will allow the City a greater income return as gross sales increase. This lease, with renewed terms which are in line with the current concession lease market, will continue proven good service to the beach public and maximize profitability for the City. This lease will further enable the concessionaire to continue improving the present City owned facility. Environmental Status: N/A Attachment(s): Proposed new lease agreement. City Clerk's Page Number ■ RCABCHUT.DOC -2- 09/08/95 4:53 PM REQUEST FOR COUNCIL ACTI04W MEETING DATE: September 18, 1995 DEPARTMENT ID NUMBER: 95-007 BEACH HUT CONCESSION REVENUES The following represents Net Revenues to the City for the last four Calendar years: Year Rent to City 1991 $8,456 1992 $6, 946 1993 $6, 489 1994 $5, 318 RCABCHUT.DOC -3- 09/08/95 4:53 PM CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK October 5, 1995 Mr. Ray McClymonds Mrs. Beth McClymonds 8262 Niland Way Garden Grove, CA 92644 CALIFORNIA 92648 The City Council of the City of Huntington Beach at their meeting held September 18, 1995 approved the "Lease Agreement Between the City of Hunt- ington Beach and Roy C. McCl.ymonds and Beth A. McClymonds dba 'Beach Hut' Beach concession." Enclosed is a copy of the executed agreement for your records. If you have any questions regarding this matter please call the Office of the City Clerk (714) 536-5227. Connie Brockway City Clerk Evelyn Schubert Deputy City Clerk cc: Robert J. Fran4, Deputy City Administrator Wayne, Lee, Accounting Officer Ron Hagan, Director of Community Services (Telephone: 714.536-5227) LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND ROY C. McCLYMONDS AND BETH A. McCLYMONDS dba "BEACH HUT" BEACH CONCESSION TABLE OF CONTENTS Paqe 1. DESCRIPTION OF PREMISES 1 2. ORIGINAL TERM 1 3. OPTION TO EXTEND 1 4. TERMS AND CONDITIONS 2 5. HOLD OVER 2 6. RENT 2 7. LATE CHARGE 3 8. GROSS SALES DEFINED 3 9. GROSS SALES EXCLUSIONS 4 10 BOOKS AND RECORDS 4 11. STATEMENT OF GROSS SALES 5 12. PERMITTED USE 5 13. PAYMENT OF UTILITY CHARGES 6 14. PERSONAL PROPERTY TAXES 6 15. REAL PROPERTY TAXES 6 16. MAINTENANCE BY LESSEE 6 17. MAINTENANCE OF SHOW WINDOW GLASS 7 18. ALTERATIONS AND LIENS 7 19. INSPECTION BY LESSOR 8 20. SURRENDER OF PREMISES 8 21. INSTALLATION AND REMOVAL OF TRADE FIXTURES 8 22. TRADE FIXTURES AS SECURITY FOR LEASE 9 23. UNREMOVED TRADE FIXTURES 9 24. SIGNS 10 25. PARTIAL DESTRUCTION 10 26. TOTAL DESTRUCTION 10 27. INSURANCE PROCEEDS 11 28. ABATEMENT OF RENT 11 29. CONDEMNATION COMPENSATION 12 30. RELOCATION AND ASSISTANCE 12 31. SUBLEASING OR ASSIGNING AS BREACH 12 32. ABANDONMENT BY LESSEE 13 33. DEFAULT BY LESSEE 14 34. INSOLVENCY OF LESSEE 14 35. CUMULATIVE REMEDIES 15 36. WAIVER OF BREACH 15 37. FORCE MAJEURE - UNAVOIDABLE DELAYS 15 38. CARE OF PREMISES - MAINTENANCE DEPOSIT 15 39. SECURITY DEPOSIT 16 6/clapp/2/22/95 TABLE OF CONTENTS- Continued Page 40. EMERGENCY CLOSING OR CLOSING 16 41. DELIVERIES OF SUPPLIES 17 42. EMPLOYEE PARKING 17 43. NOTICE 17 44. LESSEE'S RIGHT TO RENEGOTIATE 17 45. INSURANCE HAZARDS 18 46. WASTE OR NUISANCE 18 47. COMPLIANCE WITH LAW 18 48. BINDING ON HEIRS 19 49. PARTIAL INVALIDITY 19 50. SOLE AND ONLY AGREEMENT 19 51. TIME OF ESSENCE 19 52. INDEMNIFICATION/HOLD HARMLESS 19 53. WORKERS COMPENSATION 20 54. INSURANCE 20 6/clapp/2/22/95 LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND ROY C. McCLYMONDS AND BETH A. McCLYMONDS dba "BEACH HUT" BEACH CONCESSION THIS AGREEMENT is made and entered into this day of zeci 1995, by and between THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "LESSOR"), and ROY C. McCLYMONDS and BETH A McCLYMONDS, dba "Beach Hut' (hereinafter referred to as "LESSEE"). WHEREAS, LESSOR owns certain real property (hereinafter referred to as the "PREMISES"), in the City of Huntington Beach, and LESSEE desires to lease the aforesaid premises in the manner set forth below. NOW, THEREFORE, the parties covenant and agree as follows: SECTION 1. DESCRIPTION OF PREMISES LESSOR hereby leases to LESSEE that certain real property commonly known and described as "Beach Hut", located in the City of Huntington Beach, and as outlined on the attached map marked as Exhibit A. SECTION 2. ORIGINAL TERM This lease shall be for a term of five (5) years commencing at 12:01 A.M. on lgjgS and ending at 12:01 A.M. on 20ODunless sooner terminated as herein provided. SECTION 3. OPTION TO EXTEND LESSEE is hereby granted and shall, if not then in default under this lease, have an option to extend the term of this lease for an additional period of three five (5) year extensions by mutual agreement only from the expiration of this lease, exercisable by LESSEE with City Council approval upon no less than six (6) months prior written notice, on the same terms, 3/k/bchhut/2/22/95 covenants, and conditions and subject to the same exceptions and reservations contained in this lease. SECTION 4. TERMS AND CONDITIONS LESSOR 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 LESSOR in the event of failure of LESSEE to comply with any of the terms or conditions or agreements hereof, or when public 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. SECTION 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. SECTION 6. RENT LESSEE agrees to pay to LESSOR 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. Sales Volume $1.00 - $100,000 $100, 001 - $200, 000 $200,001 - plus Percentage Rate 10.5% 12.5% 14.5% The rent specified in this section shall be paid by LESSEE to LESSOR at 2000 Main Street, Huntington Beach, California, 92648, or at such other place or places as LESSOR may from time to time designate by written notice delivered to LESSEE, within fifteen (15) days 2 3/k/bchhut/2/22/95 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'h%) per month shall be added on the 10th day after any payment hereunder is due, but unpaid. SECTION 7. LATE CHARGE In the event any rental payment is not received by the LESSOR on or before the due date as herein provided, a late charge of ten percent (10%) of the amount of each rental payment shall be assessed on the day following the date such rental payment becomes due and payable. This charge will compound monthly. SECTION 8. 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; (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 3/k/bchhut/2/22/95 (e) Proceeds from the renting of beach equipment of any kind from said premises. SECTION 9. 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 LESSOR: (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 or entities 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. SECTION 10. 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 Article 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 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 LESSOR. 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. 4 3/k/bchhut/2/22/95 SECTION 11. 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 LESSOR 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. LESSOR 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 LESSOR. LESSEE shall on receiving written notice of LESSOR'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 LESSOR. Furthermore, LESSEE shall promptly on demand reimburse LESSOR 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 (5) percent or more. SECTION 12. 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, and other such uses as may from time to time be approved in writing by LESSOR. LESSOR 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 LESSOR 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 5 3/k/bchhut/2/22/95 prices established by LESSOR shall be reasonable and in accordance with the best interests of the public, the LESSEE, and the LESSOR. SECTION 13. PAYMENT OF UTILITY CHARGES LESSEE shall pay, and hold LESSOR and the property of LESSOR 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. SECTION 14. 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. SECTION 15. 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. SECTION 16. 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 6 3/k/bchhut/2/22/95 window glass. LESSOR shall promptly be reimbursed by LESSEE for the full cost of any such repairs made by LESSOR. 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 repair and in as safe and clean a condition as they were when received by LESSEE from LESSOR, reasonable wear and tear also excepted. SECTION 17. MAINTENANCE OF SHOW WINDOW GLASS LESSEE shall, at his own cost and expense, repair and replace any glass in any show window on said premises that becomes broken regardless of cause, including show window glass that is broken by fire, by act of God, except by fault of LESSOR, or by fault of some employee or agent of LESSOR. Furthermore, LESSEE shall at his own cost and expense at all times during the term of this lease carry adequate plate glass insurance on the glass in all show windows on said premises to perform the repair and replacement requirements of this section. Should LESSEE fail to repair or replace any glass broken in a show window or fail to maintain adequate plate glass insurance on the glass in show windows on said premises, LESSOR may replace or repair the broken glass or secure such insurance and LESSEE will promptly reimburse LESSOR for the cost thereof and pay LESSOR interest on such costs at the rate of ten (10) percent per annum from the date the costs were incurred by LESSOR to the date they are reimbursed to LESSOR by LESSEE. SECTION 18. 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 LESSOR first had and obtained. LESSEE shall keep the premises free and clear 7 3/k/bchhut/2/22/95 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 alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or on said premises by LESSEE or any other person shall on expiration or sooner termination of this lease become the property of LESSOR and remain on said premises' provided, however, that LESSOR 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 alterations, additions, improvements, or fixtures from said premises. SECTION 19. INSPECTION BY LESSOR LESSEE shall permit LESSOR or LESSOR'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 LESSOR's interest in said premises under this lease or to perform LESSOR's duties under this lease. SECTION 20. 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 LESSOR 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 LESSOR excepted. SECTION 21. 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, at LESSEE's sole cost and expense, to install and affix in, to, or on said premises such items, herein called "trade fixture", for use in LESSEE's trade or business as LESSEE may, in his sole discretion, deem advisable. Any and 8 3/k/bchhut/2/22/95 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. SECTION 22. 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 LESSOR a security interest in all trade fixtures and equipment owned by LESSEE and now or hereafter placed on said premises by LESSEE as security for the faithful performance of all the terms, conditions and 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, LESSOR 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. SECTION 23. UNREMOVED TRADE FIXTURES Any trade fixtures described in this Article 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 9 3/k/bchhut/2/22/95 property of LESSOR 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. SECTION 24. 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 LESSOR. 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 LESSOR. Should LESSOR 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 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 LESSOR. This lease is expressly contingent upon approval of all signs by both LESSOR and LESSEE. SECTION 25. PARTIAL DESTRUCTION Should said premises of 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 LESSOR, at LESSOR'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 regulations within one hundred eighty (180) working days. 10 3/k/bchhut/2/22/95 SECTION 26. 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, LESSOR may, at LESSOR's option: (a) Continue this lease in full force and effect by repairing and restoring, at LESSOR's own cost and expense, said premises to their former condition; or (b) Terminate this lease by giving LESSEE written notice of such termination. SECTION 27. INSURANCE PROCEEDS Any insurance proceeds received by LESSOR because of the total or partial destruction of said premises or the building on said premises shall be the sole property of LESSOR, 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. SECTION 28. ABATEMENT OF RENT Should LESSOR 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) LESSOR 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 LESSOR promptly and efficiently to carry out the work of repair and restoration; and 11 3/k/bchhut/2/22/95 (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. SECTION 29.CONDEMNATION COMPENSATION All compensation and damages awarded for a total taking of the PREMISES shall belong to and be the sole property of LESSOR, 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 leasehold improvements and fixtures that LESSEE has the right to remove under this lease but does not remove from the PREMISES; or when LESSEE does remove the fixtures or improvements, a reasonable amount for removal and relocation expenses, provided that amount does not exceed the market value of the improvements and fixtures. LESSEE hereby irrevocably assigns and transfers to LESSOR any right LESSEE may have to compensation or damages to which LESSEE may become entitled. This Lease shall have no condemnation value to LESSEE. SECTION 30. RELOCATION AND ASSISTANCE In the event this lease is terminated for any reason by LESSOR, LESSEE shall not be entitled to any relocation rights or benefits and, except those itemized in Section 28, expressly waives such benefits and rights under City, State or Federal Relocation Assistance Plans. SECTION 31. 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 LESSOR 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, 12 3/k/bchhuV2/22/95 to occupy said premises or any part thereof without the prior written consent of LESSOR. A consent by LESSOR 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 LESSOR, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of LESSOR, terminate this lease. The consent of LESSOR 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 withheld; however, LESSOR shall have the right of first refusal in connection with any assignment, 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. SECTION 32. ABANDONMENT BY LESSEE Should LESSEE breach this lease and abandon said premises prior to the natural expiration of the term of this lease, LESSOR may: (a) Continue this lease in effect by not terminating LESSEE's right to possession of said premises, in which event LESSOR shall be entitled to enforce all his right 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; 13 3/k/bchhut/2/22/95 (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 LESSOR for all detriment proximately caused by LESSEE's failure to perform his obligations under this lease. SECTION 33. DEFAULT BY LESSEE Should LESSEE default in the performance of any of the covenants, conditions, or agreements contained in this lease, LESSEE shall have breached the lease and LESSOR 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. SECTION 34. 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 LESSOR to re-enter and regain possession of said premises. 14 3/k/bchhut/2/22/95 SECTION 35. CUMULATIVE REMEDIES The remedies given to LESSOR 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. SECTION 36. WAIVER OF BREACH The waiver by LESSOR 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. SECTION 37. FORCE MAJEURE - UNAVOIDABLE DELAYS Should the performance of any act required by this lease to be performed by either LESSOR or LESSEE be prevented or 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, LESSOR or LESSEE, required to perform the act. SECTION 38. 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 LESSOR 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 except the roof. 15 3/k/bchhut/2/22/95 (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 notice served by LESSOR with regard to the care and maintenance of the premises. Any written notice hereunder shall specify the work to be done, the estimated cost thereof, and the period of time deemed to be reasonably necessary for completion of such work. Should LESSEE fail to comply with LESSOR's written notice within fifteen (15) days, or within a time deemed reasonably necessary of the time specified therein, LESSEE shall pay over to LESSOR the estimated cost of such work as set forth in the notice. Upon receipt of such sum, LESSOR shall then proceed to cause the required work to be performed. SECTION 39. SECURITY DEPOSIT Upon execution hereof, LESSEE shall pay and maintain at all times hereunder, a security deposit with LESSOR in a sum of not less than Two Thousand Five Hundred Dollars ($2,500) 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. SECTION 40. EMERGENCY CLOSING OR CLOSING TO EFFECT REPAIR/REMODELING THE PREMISES. LESSOR 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 deemed necessary by LESSOR. 16 3/k/bchhut/2/22/95 SECTION 41. DELIVERIES OF SUPPLIES. LESSOR shall establish the days and times deliveries of supplies may be made and advise :LESSEE in writing thereof. SECTION 42. EMPLOYEE PARKING. LESSOR shall establish the days and times when LESSEE's and LESSEE's employees and number of automobiles, trucks, and other motorized and non -motorized vehicles may park and where and advise LESSEE in writing thereof. SECTION 43. 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: TO LESSOR: Mr. Robert Franz Deputy City Administrator City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 TO LESSEE: Mr. Ray McClymonds Mrs. Beth McClymonds 8262 Niland Way Garden Grove, CA 92644 SECTION 44. LESSEE'S RIGHT TO RENEGOTIATE LEASE. If, in the event, LESSOR 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 immediate 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, 17 3/k/bchhut/2/22/95 conditions, and provisions of this lease be renegotiated. The parties agree that each shall deal with the other in good faith. SECTION 45. 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 LESSOR'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. SECTION 46. 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. SECTION 47. 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 LESSOR and LESSEE and shall be ground for termination of this lease by LESSOR. 18 3/k/bchhut/2/22/95 SECTION 48. 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. SECTION 49. 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. SECTION 50. SOLE AND ONLY AGREEMENT. This instrument constitutes the sole and only agreement between LESSOR 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 LESSOR and LESSEE to each other as of its date. Any agreements or representations respecting said premises or their leasing by LESSOR to LESSEE not expressly set forth in this instrument are null and void. SECTION 51. TIME OF ESSENCE. Time is expressly declared to be the essence of this lease. SECTION 52. INDEMNIFICATION, DEFENSE, HOLD HARMLESS LESSEE shall indemnify and save and hold harmless LESSOR, 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 negligent performance of this agreement by LESSEE, its officers or employees or from any willful misconduct of LESSEE, its officers or employees while engaged in the performance of this agreement. 19 3/k/bchhut/2/22/95 SECTION 53. 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 LESSOR 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 LESSOR, 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 LESSOR 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. SECTION 54. INSURANCE In addition to the workers' compensation insurance and LESSEE's covenant to indemnify LESSOR, LESSEE shall obtain and furnish to LESSOR the following insurance policies covering the PROJECT: (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 of arising out of or in connection with the PROJECT, 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. 20 3/k/bchhut/2/22/95 Said policy shall name LESSOR, 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 at 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 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 LESSOR is named and which any and 21 3/k/bchhuV2/22/95 all losses are made payable to LESSOR. 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. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. LESSEE: CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California By: R y . McClymond Mayor By: a. Beth A McClymonds ATTEST: (jam a'azo ' City Clerk 9-2&— js REVIEWED AND APPROVED: C.At' City4Xdministrator 22 3/k/bchhut/2/22/95 APPROVED AS TO FORM: _. - ► EAC I MAIN ST. EXHIBIT "A" AKE AVE. HUNTINGTON AVE. Q PIERSIDE VILLAGE D ....... COAST MAXN� ELLS DWIGIIT'S G I - -1— G 2 HDOS BR2 BC3 VIC'S I— G 3 ]ACK-S I 1 • l oo PACIFIC COAST HIGHWAY— I 1 C 1 N C/{. OF 10' PIPELINE EASEMENT TO WILSH OIL C0MPANY o R . .R. D-156.260 — HIGHWAY ROAD: u C cAat, arAfA II \ I PARKING 1042.33' N5 '-0' W_ 957' WNdICIPAL AUTO I 'r, PARKING LOT AUTO PARKING LOT WALL M BUILDING •v'�il�, LEASE �,I "- SETBACK LINE d IV isaw �r O f W BEACH BLVD. G4 STATE .* I ZACK'S UT TOO L* �� `�2 z i C o u y '� R1 4 K yj 400 N co cy - W N a PK. t TIN ON LEASE LINE I PROD. 0.69' SERVICE ROAD JUN-Z&- b 1 HU 1 H: L 1 bU�" ' L 1 N�UKHNUL f HX NU, HJ 155�H F. U1 �. DD • GATE (MM/DD/YY) A00101al) • •C E.RTI F.I CAT : ..... 1 ! 8EACri:�•:� 0b/22/96 PROoucER BOSWELL INSURANCE AGENCY Agents & Brokers, Inc. P.O. Box 4648 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Mission Viejo CA 92690 COMPANIES AFFORDING COVERAGE Patrick Barnes 7147855-0430 _ COMPANY _ _ A Golden Eagle Insurance Company - INSURED COMPANY B The Beach Hut Roy Mc Clym4nds Dba: 20401 Drew Court Huntington Beach CA 92646 COMPANY COMPANY p THIS IS TO CERTIFY TART THE POLICIES OF INSURANCE LISTED DELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOA THE POUCY PERIOD INDICATED, NOTWITHSTANDING ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMIT$ SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. GO i TYPE OFINSURANCE i LTR I POUCYNUMBEA POLICYEFFECTIVE IPOUCYDCPIRATION U1.11T8 DATE (MWPD.rM i DATE (MM/DDM1 GEHERALUABILITY A X` CON.MEFiCALGM' E�.ALUABIUTY CL&VZ UAM CX"l OOCUR I I CCP310247 06/02/95 II 06/02/96 3cNanALAGGREGATE PWDUCTS•COMP)OPAGG PERSONAL a ADV INJURY S2,OOD 000_ s 2,000,000 $ 1 .00D 000 OWNER'S a CCN:.+ACTOR•S PAOT I . I EACH OCCURRENCE i I DOD, OOO -- -- -T, INSURED E I`, J n ^ j�1i!-�!�---r.l.dl C' �.. iw FIRE DAMAGE Wrry aw nre) MED OP (Any one Aertlon) 5 sotq 0 S 5,001) AUTOMOBILE LIABILITY ANY AUTOCOMBINEDSINGLE ! LaelT i i S Al OY.'NE? AUTOS FI S."hcw=AL'TOS IvtiO AL'TC6 — KOG-D zo AUTC3 I APPROVED AS TO ARM: GAII _L' By.., Dakut3 City : ' c torneY BODILY INJURY (Porpers0rp = Ci6e a I PAOPEMY DAMAGE jI f S i GARAGE LIABILITY ANY AUTO I AUTO ONLY-- EA ACCIDENT 13 ` rr OTHER THAN AUTO ONLY; EACH ACCIDENT j I 1 + S AGaRECATE IS EXCESS LIABILITY dL:M5.AEL:A FORM j CTFwITHAN UWZ;E A IWOAKERS COMPENSATION AND IEMPLOYERS'UABIUiY THE P^orFi'Ercw i I\C. P�JiTVERSIc-Y..'-.CUTNE I CFFi:.6R� ARE: EXCL ! I NWC31579300 06/02/95 !! , f 06/02/96 , EACH OCCURRENCE S rA'aGRE3ATE - _ I X 1STATUTORYUMIT9 FACH ACCIDENT ; �. .,.:,'::'• $1, 000, 000 S 1, 000, 000 - o:S EASE • POLICY LIMIT - _ I DISEA:E-EACH EMPLOYEE ...___ s 1.000, OOD OTHER ! I t � ESCFUFTION OF OPERATIONS/LDCATIONSNEHICLESJSPECIAL ITEMS :l0 da1 s for non-ppa ent of pr4mium or non-rggportin of pa roll e �d of �untlug2n beach, tts Aggents, OfftcQrs 2nd Ersp]oYees ar� gamed is a Iona llnsuree s n respects to pro erty Boca ed at 0 42 Pnc ftc oast Sway. auntington Beach. Ca. per orm CG201 R issued 'ERTIFICATE J46LDER..::'.:::':•�.:::.•:; :..':.:r <. `::; .:: •r ::.::r:::. ::' : • :::: CANC:fLLATfON.:::::•:':�:.'::..� .:• ... .. .. HUNTI99 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE City of Huntington Beach Attn: Dan Brennan Real Estate Division EXPIRATION DATE THEREOF, THE 155UING COMPANY WILL MAIL *30 DAY6 WRITTEN NOTICE To THE CERTIFICATE HOLDER NAMED TO THE LEFT, 2000 Main Street Huntington Beach CA 92648 REPRESENTAT� /..- Patrick Barnes- ��`•/�`��?I.c�- OACORD C:OR TION 1 %3 CORD 25 5 (3193) JAUTHORIZED JUN-22-yb THU 18:22 SOSV INSURANCE FAX NO. 8375528 1O INSURED: THE BEACH BUT POLICY NUMBER: CCP310247 EFF: 6/2/95 ExP: 6/2/96 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE. -READ IT CAREFULLY. ADDITIONAL INSURED - MANAGERS OR LESSORS OF PREMISES CG 20 11 11 85 This endorsement modifies. insurance provided under the following: CO_MMERCIA.L GENERALL LIABILITY COVERAGE PART SCHEDULE: 1. Designation of Premises (Part Leased to You): 20742 Pacific Coast Highway, Huntington Beach, Ca. 92648 2. Name of Person or Organization (Additional Insured): City of Huntington Beach, itsAgents, Officers, and Employees 3. Additional Premium: TBD (If no entry appears above, the information required to complete this endorsement will be shown -in the Declarations as applicable to this endorsement) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Schedule and subj-ect to the following additional exclusions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or on behalf of the person or organization shown in the Schedule. L J UN-LZ-yb 1 HU 1 b; Z 1 bUbW' 1 NbUKHNUt h HIS NU, bS 150Cti ` :.,..... "� ,•. :::.:::: p DATE (MMIODAYI " MCATE: t AN.aU .E.R. :.:..........::.:.:.............:......:.. . >3�A06/22/95 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ROSWELL INSURANCE AGENCY ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Agents & Brokers, Inc. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR P,O. Box 4648 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Mission Viejo CA 92690 COMPANIES AFFORDING COVERAGE " Patrick Barnes 7147855-0430 _ COMPANY - _ A _ Golden Eagle Insurance Company y ` INSURED COMPANY B The Beach Hut COMPANY �~ Roy Mc Clymonds Dba: C 20401 Drew Court COMPANY Huntington Beach CA 92646 __` COVERAGES :: • .:: •:::.. >..... .. . .... . ' . . .... .. .... THIS IS TO CERTIFY Tf iAT THE POLICIES OF INSURANCE USTED DELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH TIIJS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCA18ED HEREIN IS SUBJECT TO ALL THE TERMS, AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEENREDUCED13—Y-PAID CLAIMS. _TEXCLUSIONS I CO TYPE OF INSURANCE LTR POLICY NUMBER POLICY EFFECTIVE ]POLICY EXPIRATION LIMITS DATE (MM/DDIY Y) i PATE (MM/DDMy-- GENERAL LIABILITY GENrnAL AGGREGATE s 2 , 000 000 A X-OW..MERC',ALG-ENZAALLABILITY CCP310247 06/02/95 06/02/96 _ s2,000.000 PRODUCTS-CoMP/OPAGG CLA %45 IAADE �X� OCCUR S1,000 000 PERSONAL A ADV INJURY EACH OCCURRENCE 6 1 000, OOO OWNER'S I CON—MACTOR'S FROT 4 . - - aDWZ INSURED E n �� 6 50s000 FIRE DAMAGE (Arty one nre) MEDEXP(Anyone person) I �Crrrter�! �t.�r,1.�r rwr� 6 5,000 AUTOMOBILE LIABILITY COMBINED 81N3LF- L"W S ANY AUTO I30DIL moon)INJURY (Por - s AU. OWN=O AUTOS AS TO FORM: S0<0ULEDALIT03 HakDALR06 gppROVEO -rT 'HU1TOX :.-:`�.r GA.�-. �- :i`.t;Oliie? DcraoN -� NON-MWIEDAUTC3 y:: De�ut� city t t o c", 8001LY INJURY (Poraccldenp i PROPERTY DAMAGE 6 LIABILITY AUTO ONLY- EA ACCIDENT I S —G•AARAOE ANY AUTO W THAN AUTO ONLY: _OTHER EACH ACCIDENT I s "-- AGciRECiATE S EXCESS LIABILITY ^ EACH OCCURRENCE i AGGRE3ATE - g -• a U.V6.9ELLAFORM 6 - IOThulTHAN UMoREL;AFOnM ! + A WORKERS COMPENSATION AND 4 X STATUTORY LIMITS _ EMPLOYERS' LIABILITY EACH ACCIDENT 61,000,000 THEPIETcw PNTNER&EXCuiVE I i-Nm NWC315i9300 06/02/95 06/02/96 DS A9E-POLICY LIMIT -611000.000 DISEASE -EACH EMPLOYEE _- •..__ s 1.000, 000 i CFFICZRS ARE, EXCL OTHER I. I i ESCRIPTION OF OPERATIONSILOCATION5,NEHICLES/SPECIAL ITEMS •110 d s f?r non-ppayment of prgmium or non-r porting f pa Reesll the oT �IU?tiug an each, its Agents. Of icIrs dn$ Erpp ar� gamed is a Iona nsuree s n respects to er oca a at 42 Pac fic ,oast Juntiington Beach. Ca. pro y per orm CG201 R iss ;ERTIFICATENOLDER.. HUNTI99 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE City of Huntington Beach EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL Attn : Dan Brennan Real Estate Division *30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, 2000 Main Street Huntington Beach CA 92648 AUTHORIZED REPRESENTA Patrick Barnes�- CORD 25-S (3/93) ; . ::. ..:..:.:..:..... ..:...�A+rORD G0R... TION 1993 t- UN-22-y5 'I'HU 18 : 22 SOSWI INSURANCE FAX NO. 8375528 P. 02 INSURED: THE BEACH HUT POLICY NUMBER: CCP310247 EFF: 6/2/95 EXP: 6/2/96 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - MANAGERS OR LESSORS OF PREMISES CG 20 11 11 85 This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE: I. Designation of Premises (Part Leased to You): 20742 Pacific Coast Highway, Huntington Beach, Ca. 92648 2. Name of Person or Organization (Additional Insured): City of Huntington Beach, itsAgents, Officers, and Employees 3. Additional Premium: TBD (If no entry appears above, the information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or on behalf of the person or organization shown in the Schedule. RCA ROUTING SHEET INITIATING DEPARTMENT: Administrative Services SUBJECT: Beach Hut Concession COUNCIL MEETING DATE: September 18, 1995 . RCA ATTACHMENTS STATUS 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. (Appoved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached Financial Impact Statement (Unbudget, 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 . ...... EXPLANATIQN FOR MISSING' ATTACHMENTS '"'" .. REVIEWED,: ..:.::::....... RETURNED: FORWARDED Administrative Staff Assistant City Administrator Initial M®Re City Administrator Initial City Clerk EXPLANATION FQR RETURK:DF"ITEM: (Below Space For City Clerk's Use Only) I