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HomeMy WebLinkAboutJ.M. HOLLISTER, LLC - 2004-07-19 (3)• r: CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK DATE: 80//0 A TO: I-4TA4At-rl Name 63`3 Gc-Csr n,$)4A)r,E4-as. C4 90o :i City, State, Zip CALIFORNIA 92648 ATTENTION: 11 /S y DEPARTMENT: See Attached Action Agenda`Item� ` Date of Approval .7 D Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: City Clerk Attachments:'- Action Agenda Page ✓ Agreement: ✓ Bonds Insurance RCA Deed Other CC: y6 a)OAA:: yh^j iomT- C"-N %Flit ---- Name artment RCA E%)6[.E c. 41�- N Department RCA Name Department RCA Name Department RCA Name Department RCA Agreement Insurance Other Agreeasnt Insurance Other Agra—t Insurance Other APM=nt Insurance Other Insurance (Telephone: 714-536-5227) I I� . [Jb ti� 1-9�/ 4-U7. C. A . 1)7A,'�_7_2 rU) Council/Agency Meeting Held: 2 - - D Deferred/Continued to: pproved ❑ Conditionally Approved ❑ Denied Ci lerk' Sign re Council Meeting Date: July 19, 2004 Department ID Number: CS O4-019 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR GREEN AND CITY COUNCIL SUBMITTED BY: PENELOPE CULBRETH- RAFT, C �D`MI�NIST PREPARED BY BILL WORKMAN, ASSISTANT CITY ADMINISTRATC JIM B. ENGLE, DIRECTOR of COMMUNITY SERVIC CLAY MARTIN, DIRECTOR of ADMINISTRATIVE SE a o c SUBJECT: APPROVE HOLLISTER LICENSE AGREEMENT FOR VIDEO AUTHORIZATION AT MUNICIPAL PIER Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachments) Statement of Issue: Hollister clothing and apparel stores have approached the. city with a request for a live video feed from the Huntington Beach Pier in its fifty (50) clothing stores. Should the city enter into an agreement with Hollister for this purpose? Funding Source: Not applicable. The city will receive $5,000 per month for the license agreement, for a total of $300,000 for the five-year base term. Recommended Action: Motion to: Recommend approval of the License Agreement with J.M.Hollister, LLC to provide live video feed to its stores from the Huntington Beach Pier., and authorize the Mayor and City Clerk to execute said agreement. Alternative Action(s): 1. Direct staff to make specific modifications to the terms of the license agreement. 2. Do not enter into a license agreement with Hollister at this time. Analysis: Hollister stores are limited liability companies comprised of J.M. Hollister, Hollister Michigan, Hollister Ohio, and Hollister California. Through its agent, Hollister has contacted the City of Huntington Beach asking to place two (2) fixed focal cameras under the pier. These cameras would provide live feed to approximately fifty (50) stores nationwide. These cameras would not have the ability to rotate or zoom in -on individuals on the beach so as not to impact privacy issues or rights of the public. The focus on the cameras will allow a view of beach activity without being able to identify individuals. The advertising concept is that Hollister serves teens and young adults and wishes to create t^) SOxmy /1 =I • REQUEST FOR ACTION • MEETING DATE: July 19, 2004 DEPARTMENT ID NUMBER: CS O4-019 a casual atmosphere of a beach cottage. Store clientele would be able to walk around or sit on couches and look out large "windows" (monitors) onto the beach and ocean. The goal is to create a casual, laid-back atmosphere within the stores. This is a unique concept and Hollisters wishes to utilize Surf City as its "view" out of its "windows." The basic deal points are as follows: ■ Agreement is for five (5) years with a $5,000/month license fee to the city; total $300,000 for five-year contract. ■ The live picture presented in the stores will include the name Huntington Beach, California Surf City on its display monitors. ■ Hollister will have to use a pre-recorded loop of action on the beach when the city has contractual constraints due to agreements with special events such as AVP and US Open of Surfing or at other times due to public necessity or emergencies, e.g., natural disaster, oil spill, etc. ■ License fee .shall increase annually based on the Consumer Price Index, up to 5 percent annually. ■ Hollister shall install two (2) 21-inch, flat panel monitors and one (1) satellite dish at Lifeguard Headquarters. Hollister shall maintain city equipment during the term of the agreement. ■ City shall not be held responsible or liable for any damage to the camera equipment or interruption of live video feed. ■ Hollister is responsible for costs for any and all utility services. ■ Hollister shall protect, defend, indemnify, save and hold harmless the city. ■ The agreement may not be terminated by Hollister for the first three (3) years. However, if Hollister terminates this agreement after the third year, it shall pay a termination fee of $60,000. ■ City may elect to terminate the agreement upon thirty (30) days written notice in the event that the city determines that certain advertising or marketing materials are inappropriate. BENEFITS TO CITY/CONCLUSION: This agreement is beneficial to the city in three ways. 1. The city will receive $60,000 per year or $300,000 over the 5-year term of the lease; this funding may be used to -support beach safety and maintenance. 2. The live video feed to Lifeguard Headquarters will provide another avenue or tool for lifeguards to use to protect the public at the beach. 3. As the City of Huntington Beach endeavors to become an overnight destination, the advertisement at approximately fifty (50) Hollister stores with the words Huntington Beach, California Surf City will be invaluable meeting that goal. For these reasons, staff is recommending City Council approve the lease with Hollister. This is a time sensitive issue for Hollister in that it desires to utilize the video feed beginning this summer at all of its stores. Environmental Status: Not applicable. Attachment(s): G:\RCA\2004\RCA CS-019 Approval of Hollisters License Agreement.doc -2 71121200410:29 AM • REQUEST FOR ACTION • MEETING DATE: July 19, 2004 DEPARTMENT ID NUMBER: CS 04-019 RCA Author: Workman/Engle/Martin G:\RCA\2004\RCA CS-019 Approval of Hollisters License Agreement.doc -3- 71121200410:29 AM LICENSE AGREEMENT This LICENSE AGREEMENT (this "Agreement"), is made by and between the City of Huntington Beach, a municipal corporation (the "City"), on the one hand, and J.M. Hollister, LLC (a Delaware limited liability company), Hollister Michigan, LLC (a Virginia limited liability company), Hollister Ohio, LLC (an Ohio limited liability company), and Hollister California, LLC (an Ohio limited liability company) (hereinafter referred to collectively as "Hollister"), on the other hand. RECITALS A. City is the owner of the Huntington Beach Pier and Lifeguard Station, Tower 0 located on the Pier (the "Lifeguard Station"), located within the City of Huntington Beach (hereinafter the "Public Property"). B. Hollister desires to install two fixed focal cameras on the Huntington Beach Pier between Light Poles 17 and 18, one control center rack and equipment in the interior space of the Lifeguard Station, and the necessary wireline connections between the fixed focal cameras and rack and between the rack and existing telecommunications facilities, all as described further on Exhibit A, (the cameras, control center rack, connections and the supporting equipment are hereinafter referred to collectively as the "Camera Equipment"). C. Hollister desires to use and operate the Camera Equipment to broadcast a live video feed of Huntington Beach to certain of its Hollister Co. stores across the United States and related purposes ("Live Video Feed"). Representative photographs of the Live Video Feed are attached hereto as Exhibit B. D. Hollister desires to obtain a license from the City for the purposes- of installing, operating and maintaining the Camera Equipment in connection with its desire to broadcast a Live Video Feed. E. City also desires to utilize the Live Video Feed at the main lifeguard station in Huntington Beach. NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and conditions contained herein, and other valuable consideration, the receipt of which is hereby acknowledged, the City and Hollister do hereby agree as follows: I. License Area. The area subject to this License (the "License Area") includes those areas of the Huntington Beach Pier between Light Poles 17 and 18, the interior space of the Lifeguard Station and necessary wireline connections for the Camera Equipment, as more particularly described on Exhibit A. 04agree/beach video/7/7/04 I 2. Grant of License. The City hereby grants to Hollister a license to use the Huntington Beach Pier and Lifeguard Station for the purposes of installing, operating and maintaining the Camera Equipment in connection with the broadcasting of the Live Video- Feed and any necessary discretionary permits for the term of the Agreement (the "License"). The scope of the License shall be further defined by the following: a. City shall make the Huntington Beach Pier and Lifeguard Station available to Hollister to install, operate and maintain its Camera Equipment for Live Video Feed purposes. b. Hollister shall be entitled to use such License Area for the purposes of installing, operating and maintaining its Camera Equipment for Live Video Feed purposes subject to receipt of any necessary ministerial approvals or permits (including electrical permits) from the Huntington Beach Department of Building and Safety. C. Hollister shall be entitled to use such Camera Equipment to broadcast a Live Video Feed; provided, however, that Hollister shall not be permitted to broadcast a Live Video Feed during certain exclusive, proprietary events that restrict filming at or near the Huntington Beach Pier as identified to Hollister by the City. d. Hollister acknowledges and agrees that the City is not endorsing the products or advertising of Hollister by the grant of this License. 3. Term of Agreement. This Agreement shall have a term of five years ("Term") commencing upon the Effective Date of this Agreement, which shall be automatically extended on a year-to-year basis after the expiration of the Term, provided neither party objects. 4. Pam. a. Hollister shall pay to the City $5,000 per month commencing upon the Effective Date of this Agreement (the "License Fee"). The License Fee shall be increased on each anniversary of the Effective Date in proportion to any increase in the Los Angeles -Riverside - Orange County "Consumer Price Index" as announced by the State of California, Department of Industrial Relations, Division of Labor Statistics and Research on or between such anniversary dates, but in no case shall such increase exceed five (5) percent per year. Notwithstanding, the parties acknowledge that the License Fee shall not be decreased at any time, regardless of any decrease in the Consumer Price Index defined above. b. Hollister shall pay the License Fee to the ' City on the first of each month, commencing on the first full month after the Effective Date through and until the termination of this Agreement. 04agree/beach video/7/6/04 2 C. Hollister shall install two 21-inch flat panel monitors and one satellite dish (the "City Equipment") at a location to be determined by the City and shall provide the Live Video Feed to such location during the term of the Agreement to the extent reasonably available. Hollister shall maintain the City Equipment and Live Video Feed to the extent reasonably available during the term of this Agreement upon reasonable request by the City. d. Hollister shall configure the Live Video Feed to exhibit the text "Huntington Beach, California —'Surf City" on all display monitors. The size of the text shall be legible with a minimum and maximum size of text to be determined subject to the City's reasonable approval. The -parties acknowledge and agree that this text shall not be associated with any advertising slogan or symbol. e. A late payment fee of ten percent (10%) will be assessed if City receives any payment later than the thirtieth (30`h) day after that payment is due but unpaid. In addition, one and one-half percent (1'/2) interest per month shall be added for each month the payment hereunder is due but unpaid. 5. Operation Hollister shall have the sole right, at its expense, to install, operate and maintain the Camera Equipment and broadcast the Live Video Feed during the Term of the Agreement, as may be extended. 6. Safety Reauirements. In exchange for the License granted above, Hollister agrees that it shall not suffer or permit any dangerous condition to be created, exist, or continue on the License Area as a result of its installation, operation or maintenance activities associated with the Camera Equipment; and, that all of its acts and those of its contractors and subcontractors shall be carried out in a careful and reasonable manner. Hollister acknowledges and agrees that the City shall not be held responsible or liable for any damage to the Camera Equipment or interruption of Live Video Feed caused by disasters, riots, fires, vandals, storms, waves, water, wind and/or earthquakes. 7. Commercial Photography Permit. City hereby grants to Hollister the right to obtain a Commercial Photography Permit during the Term of the Agreement, as may be extended, free of charge. 8. Condition of License Area. Hollister acknowledges that it shall enter the License Area at its own risk, and that neither the City nor any of its officers, employees, agents, or contractors have made any warranty or representation to Hollister with regard to the safe condition of the License Area. 04agree/beach video/7/6/04 3 9. Utilities. Hollister shall be solely responsible for the cost of any and all utility services related to the installation, operation and maintenance of the Camera Equipment during the Term of this Agreement, as may be extended. 10. Indemnification, Defense, _Hold Harmless. Hollister hereby agrees to protect, defend, indemnify and hold and save harmless the City, its officers, and employees against -any and all liability,claims, judgments, costs and - demands, however caused, including. those resulting from death or injury to Hollister's employees and damage to Hollister's property, arising directly or indirectly out of the grant of License herein contained, including those arising from the passive concurrent negligence of the City, but save and except those which arise out of the active concurrent negligence, sole negligence, or the sole willful misconduct of the City. Hollister will conduct all defense at its sole cost and expense. 11. Worker's Compensation and Employers' Liability Insurance. Pursuant to the California Labor Code Section .1861, Hollister acknowledges awareness of Section 3700 et seq. of said code, which requires every employer to be insured against liability .for workers' compensation;. Hollister covenants.. that it will comply with all such .laws and provisions prior to the encroachment into Public Property pursuant to this license. Hollister shall maintain such, Workers' Compensation Insurance in an amount of not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, and Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit, at all times incident hereto, in forms and underwritten by insurance companies satisfactory to the City. 12. General Liability Insurance. Hollister shall carry at all times incident hereto, on all activities to be performed in Public Property as contemplated herein, general liability insurance, including coverage for bodily injury, and property damage. All insurance shall be underwritten by insurance companies in forms satisfactory to the City. Said insurance shall name the City, its officers, agents and employees and all public agencies as determined by the City as Additional Insureds. Hollister shall subscribe for and maintain said insurance policies in full force and effect during the life of this Agreement, in an amount of not less than One Million Dollars ($1,000,000) combined single limit coverage. If coverage is provided under a form which includes a designated general aggregate limit, such limit shall be not less than One Million Dollars ($1,000,000). In the event of aggregate coverage, Hollister shall immediately notify the City of any known depletion of limits. Hollister shall require its insurer to waive its subrogation rights against the City and agrees to provide certificates evidencing the same. 04agree/beach video/7/6/04 4 • 0 13. Property Insurance. Before entering the License Area, Hollister shall provide property insurance with extended coverage endorsements thereon, on the License Area in an amount equal to the full replacement cost thereof; this policy shall be on a replacement cost basis and shall not contain a coinsurance penalty provision. In the event of loss, the policy proceeds shall be used to repair or rebuild any such improvements so damaged or destroyed and if not so used, such proceeds shall be paid to City. The proceeds of any such insurance payable to City shall be used for rebuilding or repair as necessary to restore the License Area and at the sole discretion of City. The policy shall name City as an additional insured. The policy or policies shall also contain the following: 1. The insurer will not cancel or reduce the insured's coverage without thirty (30) days prior written notice to City; and 2. . City will not be responsible for premiums or assessments on the policy. A complete and signed certificate of insurance required by this Paragraph shall be filed with City prior to the execution of this Agreement. At least thirty (30) days prior to the expiration of any such policy, a signed and complete certification of insurance showing that coverage has been renewed, shall be filed with City. Upon request, Hollister shall furnish City a certified copy of the applicable policy within fifteen (15) days. 14. Certificates of Insurance: Additional Endorsements. Prior to the encroachment into Public Property pursuant to this license, Hollister shall furnish to the City certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled without thirty (30) days prior written notice to the City. Hollister shall maintain the foregoing insurance coverages in force until this Agreement is terminated. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of the City by Hollister under this Agreement. The City or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. Hollister shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of Hollister's insurance policies, naming the City, its officers and employees as Additional Insureds shall be provided to the City Attorney for approval prior to the encroachment into Public Property pursuant to this License. 04agree/beach video/7/6/04 5 • 15. Insurance Proceeds. Any insurance proceeds received by City because of the total or partial destruction of said License Area or any buildings on said License Area shall be the sole property of the City. 16. Insurance Hazards. Hollister shall not commit or permit the commission of any acts on said License Area nor use or permit the use of said License Area -in any manner that will increase the existing rates for or cause the cancellation of any property, liability or other insurance policy insuring the Huntington Beach Pier and Lifeguard Station, said License Area or the improvements on said License Area. Hollister shall, at its sole cost and expense, comply with any and all requirements of insurance carriers necessary for the continued maintenance at reasonable rates of property, liability and other insurance policies on the Huntington Beach Pier and Lifeguard Station, said License Area and the improvements on said License Area. 17. Liens. Hollister shall not permit or suffer any mechanic's or materialmen's or other liens of any kind or nature to be recorded and/or enforced against the License Area for work done or materials furnished on its behalf. 18. Termination. This Agreement may not be terminated by Hollister .for the first three (3) years of the Term. After the third year of the Term, this Agreement may be terminated by Hollister upon thirty (30) days written notice, provided, however, that if Hollister elects to terminate this Agreement prior to the expiration of the Term, Hollister shall pay to City a termination fee of $60,000. In addition, in the event the Agreement terminates or expires and Hollister no longer desires to broadcast the Live Video Feed, City will have the option in its sole discretion to elect that Hollister either (i) remove the Camera Equipment and restore the License Area to the condition existing prior to installation, or (ii) transfer full possession and ownership of the Camera Equipment to City. Notwithstanding, City may elect to terminate this Agreement upon thirty (30) days written notice, provided however that any such determination to terminate is preceded by a meeting between the City Administrator's office and Hollister and if Hollister cannot address the City's concerns within a reasonable time, Hollister will be entitled to a public hearing before the City Council. The City Council will then vote on whether or not to terminate the agreement. 19. Miscellaneous. A. Assignment. Neither .Hollister nor the City shall assign its rights or responsibilities under this Agreement, in whole or in part, except with the written consent of the other party hereto. Any attempted assignment without such prior written consent shall be invalid and void. 04agree/beach video/7/6/04 6 B. Compliance with Laws. Hollister shall comply with all required State, County and City laws and regulations relating to the use of the License Area and shall be solely responsible for all costs incurred in connection with such compliance. C. Applicable Law. This Agreement shall be construed, governed and enforced in accordance with the laws of the State of California. D. Attorney's Fees. In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. The prevailing party shall not be entitled to recover its attorney's fees. E. Release. Hollister hereby releases and forever discharges City of and from any and all claims, demands, actions or causes of action whatsoever which Hollister may have, or may hereafter have, against the City specifically arising out of the matter of the entry of Hollister onto the Public Property. This is a complete and final release and shall be binding upon Hollister and the heirs, executors, administrators, successors and assigns of Hollister's use of the Public Property. Hollister hereby expressly waives any rights under or benefit of any law of any jurisdiction whatsoever providing to the contrary. Neither the acceptance of this release nor any payment made hereunder shall constitute any admission of any liability of City. F. Waste. Hollister shall not alter, damage or commit any kind of waste upon the Public Property or any improvement, equipment or personal property thereon and shall not interfere in any manner with the operations or activities of City. Hollister shall make no change in the use of the Public Property nor shall the design of the Public Property be changed other than as authorized herein without prior written consent of City. Hollister shall not cause any workmen's or materialmen's liens to be placed upon the Public Property and agrees to indemnify and hold City harmless against any such liens including but not limited to the payment of attorneys' fees. G. Entire Agreement. This Agreement contains a full and complete expression of the parties and it shall supersede all other agreements, written or oral, hereto made by the parties with respect to the subject matter hereof. This Agreement may be modified only in writing, signed by the parties hereto. H. Service Interruption. City may, upon written notice to Hollister, suspend or revoke this Agreement without liability to Hollister when public necessity so requires, or suspend operation immediately hereunder, without any advance notice and without any liability to Hollister, in the event of public emergency or necessity, as may be determined by the City Administrator. Such suspension will terminate when the public necessity or emergency no longer exists. IN WITNESS WHEREOF, authorized representatives of the City and Hollister have duly executed this Agreement-.V1U,y /9 , 2004 (the "Effective Date"). SIGNATURES ON FOLLOWING PAGES 04agree/beach video/7/7/04 7 LICENSEES: J.M. HOLLIST R, LLC By: point name ITS: (circle one) Chairma (re�sidenice President A -1 ND B: print name ITS: (circle one) Secret Chief Financial Of ' er/Asst. Secretary - Treasurer HOLLISTER O , ,LLC By: —,J--A print name ITS: (circle one) Chairma resin AND By: J prin name , ITS: (circle one) Secretary Chief Secretary - Treasurer Asst. HOLLISTER� MICHIGAN, LLC A /� n . A " print name 1-' ITS: (circle one) Chairma residen ice President A D By: fLA SuE print name ITS: (circle one) Secretary hief Financial Officer st. Secretary — Treasurer HOLLIS ER ALIFOR , LLC By: !' ITS: (circle one) Chairmar>[(President/ ✓ice President By: ITS: (circle one) Secretary hief Financial Office Asst. Secretary - Treasurer CITY SIGNATURES ON NEXT PAGE 04agree/beach video/7/6/04 8 LICENSE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND HOLLISTER, LLC signatures continued CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California M or _ City C erK-7 APPROVED AS TO FORM: �ty� mey Di ec */of -comm-unity: Services RLVfEWED AND APPROVED: GYty Administrator 04agree/beach video/7/6/04 9 • • Project Description EXHIBIT A Project Information Hollister will install two cameras facing opposite directions on the underside of the .Huntington Beach Pier between Light Poles 17 and 18. The cameras will.be in a fixed position and will not swivel or zoom in and out. The cameras will be connected by wireline to a small control center rack that will be mounted in an unused space inside the Lifeguard .Station. The control center rack will convert the Live Video Feed and send it through high speed transmission lines to a local HUB provided by a local telecommunications company. The local HUB will send the Live Video Feed to a satellite uplink facility which will broadcast the Live Video Feed to a satellite orbiting in space. . The satellite will broadcast the Live Video Feed to certain Hollister stores. Hollister will display the Live Video Feed on 21-inch flat LCD display monitors within these stores to create a window -like effect. On occasions, when picture quality is less than optimal due to weather conditions or other unforeseen circumstances or when certain beach events restrict filming, Hollister will use a pre-recorded DVD that will display similar views of Huntington Beach's coastline. Hardware Components The exterior components will consist of two cameras which will each be housed in a weather proof enclosure and sunshroud. Each camera unit will weigh approximately 20 pounds and measure approximately 8 inches in height by 18 inches in length by 7 inches in width. The interior components will consist of one control center rack mounted in the interior space of the Lifeguard Station. The control center rack will plug into an electrical outlet. The control center rack serves as the control system and power source for the cameras and will deliver the image to high speed transmission lines. The control center rack will weigh approximately 50 pounds and measure approximately 27 inches in height by 20 inches in width by 23 inches in depth. The high speed transmission lines will be run from the control center rack in the Lifeguard Station to a local HUB provided by the local telecommunications company. Installation will take approximately one day. The cameras will be cleaned approximately twice per month. 04agree/beach video/7/6/04 10 ATTACHMENT 2 View from Cameras RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: HOLLISTER LISCENSE AGREEMENT COUNCIL MEETING DATE: July 19, 2004 . = 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 Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attome Not Applicable Certificates of Insurance (Approved by the City Attome) Not Applicable Financial Impact Statement Unbud et, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Find in s/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR;MISSING ATTACHMENTS REVIEWED ;;RETURNED..: FORW D D Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk DATE ACORD CERTIFICATE OF LIABILITY INSURANCE 08/06/2004) PRODUCER (614)221-322S FAX (614)221-3414 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Archer -Meek -Weiler Agency, Inc _ ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Suite 30$ �QQ , ID O HOLDER. THI5 CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. 150 East Mound Street (#0 L AdJ Columbus, OH 43215-547K V�sT INSURERS AFFORDING COVERAGE NAIC # INSURED Abercrombie & Fitch Co. �-f INSURERA- Federal Insurance Company 6301 Fitch Path Road INSJRER6 New Albany, OH 430S4 >-0 'Q/jn ® % INCURERC INSURER D: �. INSURER E: rn%ICOACF'C THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO T1iE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATGC. NornITHSTANDIN- ANY REQUIREMENT, 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_ AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR DO' TYPE OF INSURANCE POLICY NUMBER' POLICY EFFECTIVE DATE fMKIDDIYYI POLICY EXPIRATION LIMITS GENERAL UABIUTY 35823902 06/30/2004 1 06/30/2005 EACH OCCURRENCE S 11000,000 X COMMERCIAL GEN-. R'ALL LIIABILITY DAMAGE TO RENTED S 300 00 ( I CLAIMS MADE I X OCCUR ,� MED EXP (Any one person) S 10,000 A j t PERSONAL & ADV INJURE' $ 110001000 GENERAL AGGREGATE $ 2,000,00 GENT AGGREGATE LIMIT APPLIES PER- i PRODUCTS - COMPIOP AGG S 2,000,000 POLICY PP.O :ECT X LOC AUTOMOBILE LIABILITY ANY AUTO 74967 S49+ 06/30/2004 - 06/30/7005 ..OMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 X X BODILY INJURY (Pr.' person) I(�— ' BODILY INJURY S - -- A ALL OWNFD AUTOS SCF.EDULED AUTOS HIRED AUTOS X NON -OWNED AUTOS ,I (Pe, axident) S PROPERTY DAMAGF (Per acaceln) 5 GARAGE LIABILITY ALITO ONLY - FA ACCIDENT S OTHER THAN EA ACC AUTO ONLY: AGG S ANY AUTO S ;_ �--EX--C,ESSIUMBRELLALIABILITY � - r OCCUR C CLAIMS MADE 79815225 06/30/2004 06/30/2005 - EACH OCCURRENCE $ 101000,00 AGGREGATE 5 10,000,000 A s $ DEDUCTIBLE $ RETENTION $ WORKERS COMPENSATION AND 71718893 06/30/2004 06/30/2005 X QsTATUT OT.-I-1 A EMPLOYERS' LIABILITY ANY PRO PRIETORIPARTNERIEXECUTIVE OFFICER/MEMSER EXCLUDED? E.L. EACH ACCIDENT S 1,000,000 E.L. DISEASE - EA FMPLOYt 5 1,000,000 If yes, describe under SPFCINL PROVISIONS below E.L. DISEASE • POLICY LIMIT $ 1,000,00 A MPL�YERS LIABILITY 35823902 06/30/2004 06/30/2005 Each Disease $ 11000,000 Each Accident 1.000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS E: Hollister Co. Ave video camera from the Huntington Beach Pier into the Hollister stores AP OVED ertificate holder included as additional insured as their interest may appear ,I ee attached CG2010 J NIF McGRATH, City Att Or rFRTIFICATP Hnl nFR rAMr.FI I ATIAN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL *)&X00M MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, City of Huntington Beach )fA(Kd�dfd�?6'16X�ItXd6lbltKigd(M14XciWtl(�XiXi1�X�4MIKI�f�(XKXX Its agents, officers and employees (�(DNtrXc�JdX�iiid(woux x]tXd(6+FDtl(1lSDi�XXXXXXXXXX AUTHORIZED Huntington Beach, CA therENTATIYE Mart Mathers, CPIW CISR ACORD 25 (2001/08) ©ACORD CORPORATION 1988 -n • 1�1 POLICY NUMBER 35823902 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY - PLEASE READ IT CAREFULLY ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person or Organization: City of Huntington Beach, its agents, officers and employees (If no entry appears above, 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 your ongoing operations performed for that insured. CG 20 10 10 93 Copyright, Insurance Services Office, Inc., 1984 APPROVED ASLTO PO 60/ f cGRATH ,City Attorney 7 • 63a Fifth Street, Suite 4000 Los geles, California 90071-2007 Tel: (213) 485-1234 Fax: (213) 891-8763 www.lw.com LATHAM&WATKINSLLP July 26, 2004 VIA FEDEX Mr. Jim Engle Community Services Director City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 FIRM / AFFILIATE OFFICES Boston New Jersey . Brussels New York Chicago Northern Virginia Frankfurt Orange County Hamburg Paris Hong Kong San Diego London San Francisco Los Angeles Silicon Valley Milan ' Singapore Moscow Tokyo Washington, D.C. File No. 038498-0000 Re: License Agreement Between City of Huntington Beach and Hollister, LLC Dear Jim: Please find attached the original signature page executed by the Licensees from the License Agreement between the City of Huntington Beach and Hollister, LLC. If you have any questions, please to not hesitate to contact me at (213) 891-8796. Very truly yours, Francis Y. Park of LATHAM & WATKINS LLP Enclosure LA\1292593.1 038498-0000 C� Esoarza. P • From: Hennessey, Michael ?s:, Sent: Tuesday, August 03, 2004 12:53 PM To: Esparza, Patty Subject: RE: Hi Patti, Yes, a copy of the agreement should be sent tot Francis Park. The address i( as f Mr. Francis Y. Park Latham & Watkins, LLP. 633 West Fifth Street, Suite 4000 Los Angeles, CA 90071-2007 Tel. 213.891.8796 -----Original Message ----- From: Esparza, Patty Sent: Wednesday, July 28, 2004 2:23 PM To: Hennessey, Michael Subject: Hi Mike: I received the original signature page for the Hollister License Agreement - however, I want to send Hollister a copy of the executed agreement but there is not an address in the agreement or RCA. The signature page was mailed by Francis Y. Park of Latham & Watkins, LLP in Los Angeles - would this possibly be where I would send it? Thanks in advance for your input. Sincerely, Patty Esparza Deputy City Clerk (714) 536-5260 1 Council/Agency Meeting Held: Deferred/Continued to: ' ❑ Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: July 19, 2004 Department ID Number: CS O4-019 z CITY OF HUNTINGTON BEACH G � y REQUEST FOR ACTION Co ? < r SUBMITTED TO: HONORABLE MAYOR GREEN AND CITY COUNCI EMBERS r SUBMITTED BY: PENELOPE CULBR H-GRA , CITY ADMI T O PREPARED BY: BILL WORKMAN, ASSISTANT CITY AD NISTRATO JIM B. ENGLE, DIRECTOR of COM NITY SERVICE CLAY MARTIN, DIRECTOR of MINISTRATIVE SERVICE SUBJECT: APPROVAL OF HOLLISTE ICENSE AGREEMENT Statement of Issue,.Funding Source, Recommended Action, Alt ative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The city has bee pproached by Hollister clothing and apparel stores with a request for a live video feed fr the Huntington Beach pier in its fifty (50) clothing stores. Should the city enter into an greement with Hollister for this purpose? Funding Source: Not applicable(. The city will receive $5,000 per month for the license agreement, for a total of/$�300,0 for the five year base term. Recommended Actionmend approval of the license agreement between the city and Hollister to provideeo feed to its stores from the. Huntington Beach Pier and authorize the Mayor andrk to sign said agreement. 1. Direct staff to/nake specific modifications to the terms of the license agreement. 2. Do not enter/into a license agreement with Hollister at this time. • REQUEST FOR ACTION MEETING DATE: July 19, 2004 DEPARTMENT ID NUMBER: CS O4-019 Analysis: Hollister stores are limited liability companies comprise of J.M. Hollister, Hollisters Michigan, Hollisters Ohio, and Hollisters California. Through its agent Hollisters has contacted the city of Huntington Beach asking to place two (2) fixed focal cameras under the pier. These cameras would provide live feed to approximately fifty (50) stores nationwide. These cameras would not have the ability to rotate or zoom in on individuals on the beach so as not to impact privacy issues or rights of the public. The focus on the cameras will allow the view to beach activity without being able to identify individuals. The advertising concept is that Hollister is a store that serves teens and young adults and wishes to create a casual atmosphere of a beach cottage with the store clientele able to - around or sit on couches and look out large "windows" (monitors) as if one were in each cottage and looking out onto the beach and ocean. The goal is to create casual, laid-back atmosphere within the stores. This is a unique concept and Hollis s wishes to utilize Surf City as its "view" out of its "windows." The basic deal points are as follows: ■ Agreement is for five (5) years with $5,000/m th license fee to the city; total $300,000 for five-year contract. ■ The live picture presented in the stores wi include the name Huntington Beach California Surf City on its display monitors. ■ Hollister will have to use a pre-recorded I op of action on the beach when the city has contractual constraints due to agreem nts with special events such as AVP and US Open of Surfing or at other times du to public necessity or emergencies (e.g. natural disaster, oil spill, etc.). ■ License fee shall increase ann Ily based on the Consumer Price Index, up to 5% annually. . ■ Hollister shall install two (2) 1-inch flat panel monitors and one (1) satellite dish at Lifeguard Headquarters. H Ilister shall maintain city equipment during the term of the agreement. ■ City shall not be held re onsible or liable for any damage to the camera equipment or interruption to live vide feed. ■ Hollister is responsibl for costs for any and all utility services. ■ Hollister shall protec , defend, indemnify, save and hold harmless the city. ■ The agreement m y. not be terminated by- Hollister for the first three (3) years. However, if Holli er terminates this agreement after the third year, it shall pay a termination fee o $60,000. ■ City may elect t terminate the agreement upon thirty (30) days written notice in the event that the city determines that certain advertising or marketing materials are inappropriate. BENEFITS TO CITY/CONCLUSION: This agreement is beneficial to the city in three ways. 1. The city will receive $60,000 per year or $300,000 over the 5-year term of the lease; this funding may be used to support beach safety and maintenance. 2. The live video feed to Lifeguard Headquarters will provide another avenue or tool for lifeguards to use to protect the public at the beach. D:\Documents and Settings\hennessm\Local Settings\Temporary Internet Files\OLK3\RCA CS-019 Approval of Hollisters License Agreementl.doc -2- 7/7/2004 2:09 PM REQUEST FOR ACTION MEETING DATE: July 19, 2004 DEPARTMENT ID NUMBER: CS O4-019 3. As the city of Huntington Beach endeavors to become an overnight destination, the advertisement at approximately fifty (50) Hollister stores with the words Huntington Beach California Surf City will be invaluable advertisement to meet this city goal. For these reasons, staff is recommending that City Council approve the lease. This is a time sensitive issue for Hollister in that it desires to utilize this video feed beginning this summer at all its stores. Environmental Status: Not applicable. Attachment(s): G:\RCA\2004\RCA CS-019 Approval of Hollisters License Agreement.doc -3- 7/6/2004 4:36 PM 0 0 RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: APPROVE HOLLISTER LICENSE AGREEMENT COUNCIL MEETING DATE: July 19, 2004 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. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds (If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: RCA Author: Bill Workman/Jim Engle/Clay Martin