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Home My WebLink AboutAli, Michael - 1997-06-16NOTE TO FILE FOLDER y G:Forms/Note to File Folder Page 12 - Council/Agency Onda - 06/16/97 (12) E-27. (City Council) Outside Legal Counsel - PERS (Public Employee Retirement System) Litigation - Agreement Between City & Whitmore, Johnson & Bolanos for Legal Services & Approval Of Amendment To Insurance Requirements - Approve and authorize execution by the Mayor and City Clerk of an Agreement between the City of Huntington Beach and Whitmore, Johnson & Bolanos, a Law Corporation, For Legal Services to serve as co -counsel with the firm of Liebert, Cassidy and Frierson on the litigation initiated by the City against the Public Employees Retirement System; and approve the Liability Policy 10-day notice cancellation clause and the $25,000 deductible on Professional Services, thereby waiving the 30-day notice of cancellation requirement and the "no deductible" insurance clause Submitted by the Deputy City Administrator - Administrative Services Director [Approved 6-0 (Harman: Absent)] E-28. t_Clitv Council) Concession Contract Between Citv & Michael Ali For Five Beac Concessions On Bolsa Chica State Beach & ADDroval Of Amendment To Insurance Requirements - Approve the Concession Contract between the City of Huntington Beach and Michael Ali for Bolsa Chica State Beach to sublease and operate the five beach concessions located on Bolsa Chica State Beach which the City leases from the State of California Parks and Recreation Department; accept a 10 day notice of cancellation of insurance due to non-payment; and direct the Mayor and City Clerk to execute said agreement. Submitted by the Community Services Director (Term of Agreement June 17, 1997 to November 30, 1999) [Approved 6-0 (Harman: Absent)] F. Administrative Items F-1. (City Council) (Deferred From June 2, 1997) ADDroval In Concept Of Huntinaton Beach Collaborative (Network Of Service Providers Created To Heighten Community Awareness, Share Information, And Interactive Participation) - Request For Proposals For Professional Services Communication from the Economic Development Director recommending that Council approve in concept the initiation of a Huntington Beach Collaborative, a network of service providers. Recommended Motion: Approve in concept the creation of a Huntington Beach Collaborative, a network of service providers to increase community awareness, share information, and assist in improving the quality of life in the Huntington Beach community; and authorize staff to issue a Request For Proposals (RFP) for professional services to assist the Collaborative in establishing its mission and vision, organize various task forces (clusters), maintain membership lists, and provide for general administrative support for one year. [Approved 6-0 (Harman: Absent)] (12) if//. 1 ��✓ Council/Agency Meeting Held: � &/6 !2 Deferred/Continued to: IA p roved ❑ conditionally At) oved ❑ Denied i" City rk' Signature —D ouncil Meeting Date: June 16, 1997 LC Department ID Number. CS 97-039 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator (� PREPARED BY: RON HAGAN, Director, Community Services SUBJECT: AGREEMENT WITH MIKE ALI FOR STATE BEACH CONCESSIONS Statement of Issue, Funding Source, Recommended -Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the city approve an agreement with Mike Ali to operate the five beach concessions on Bolsa Chica State Beach? Funding Source: Concessions will provide income to the city's General Fund. Recommended Action: Approve the agreement with Mike Ali to sublease and operate the five beach concessions located on Bolsa Chica State Beach which the city leases from the State of California Parks and Recreation Department; accept 10 day notice _of can- cellation of insurance due to non-payment; and, direct Mayor and City Clerk to execute same. _Alternative Action(s): 1. ' Do not approve the agreement with Mike Ali, and direct the Community Services Department to operate the concessions directly; or 2. Do not approve the agreement with Mike Ali, and authorize the city to rebid for proposals to operate the five concessions on the state beach. Analysis: As a result of the settlement of the TLC (Sunny's) lawsuit, the city now has the operating agreement with the State of California Parks and Recreation Department for the five beach concessions located on Bolsa Chica State Beach. This operating agreement runs until 2000. At that time, the state will solicit proposals for bids and the city will no longer be responsible for the concessions. The Community Services Department could operate the concessions itself, however, this would necessitate approximately $75,000 in start up costs and the hiring of recurrent employees to manage and staff the concessions. City staff believes it is more prudent to enter into a sublease agreement with an existing concessionaire for the remaining three years on this contract. The city solicited proposals to all of its existing concessionaires and received three responses. During negotiations, two 161 i REQUEST FOR COUNCIL ACTION MEETING DATE: June 16, 1997 DEPARTMENT ID NUMBER: CS 97-039 concessionaires opted to remove their bids for the sublease. Mike Ali, who is the current concessionaire for Zacks, Too and the Waterfront's Beach Cabana on the city beach, has presented the proposal staff is recommending. Under the master agreement with the state, the city is required to pay the state 10 percent of the first $200,000 gross revenue from the concessions and 12 percent of gross revenue over $200,000. Mr. Ali has proposed that in addition to these percentages paid to the state, 5 percent of total gross revenue would also be paid to the city. The new agreement is concurrent with the existing operating agreement with the state and contains the same terms and conditions. Mr. Ali already has his deposit, performance bond, business license and insurance in place. He is willing to invest in the concessions and take his chances on successfully negotiating with the state in 2000 when Ali's agreement with the city will expire. Staff estimates that the concessions will gross between $200,000 and $300,000 per year which would provide $10,000 to $15,000 in annual net income to the city. The big advantage of operating the Bolsa Chica State Beach concessions through a sublease is that the sublessee, Mike Ali, would be responsible for the minimum rent payment to the state, thus relieving the city of any financial risk in the concession operations. The city settled with TLC, for $43,000 which it should recoup in the three year contract with Ali. Environmental Status: Attachment(s): 1. Concession Contract 2. Location Map 3. Insurance Certificates 4. Evidence of Bond 0025860.01 -2- 06/06/97 4:51 PM C� CONCESSION CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICHAEL ALI FOR BOLSA CHICA STATE BEACH TABLE OF CONTENTS Page 1. GRANTOR CONCESSION FOR THE PREMISES 2 2. TERM 3 3. CONDITIONS OF PREMISES 3 4. QUITCLAIM DEED 3 5. RENTAL 3 6. BOOKS AND RECORDS 7 7. AUDIT OF GROSS RECEIPTS 7 8. USE OF PREMISES 8 9. QUALITY OF SERVICE AND CONTROL OF RATES AND CHARGES 10 10. HOLD HARMLESS AGREEMENT 11 11. LIABILITY INSURANCE 12 12. FIRE INSURANCE 13 13. TAXES 14 14. TITLE TO IMPROVEMENTS 15 15. PERSONAL PROPERTY IMPROVEMENTS 15 16. MAINTENANCE OF IMPROVEMENTS 16 17. UTILITIES AND SERVICES 18 18 SIGNS, ADVERTISING AND APPROVAL OF NAME 18 19. INSPECTION OF PREMISES 19 20. BREACH OF CONTRACT 19 21. WITHOUT CAUSE TERMINATION 20 22. INTERPRETATION OF CONTRACT 20 23. ASSIGNMENTS 20 24. WAIVER OF CLAIMS 21 25 RIGHT OF ENTRY AS AGENT 21 26. TERMS BINDING ON SUCCESSORS 22 27. DURATION OF PUBLIC FACILITIES 22 28. TIME OF ESSENCE 22 29. EMINENT DOMAIN 22 30. CONFLICT OF INTEREST 22 C� • 31. PHOTOGRAPHY 32. HAZARDOUS SUBSTANCESS 33. NONDISCRIMINATION 34. PARAGRAPH TITLES 35. CONTRACT IN COUNTERPARTS 36. ALCOHOLIC BEVERAGES 37. HEALTH CERTIFICATE 38. EMPLOYEE TRAINING 39. AGREEMENT IN WRITING 40. STATE MARKETING AND ADVERTISING PROGRAM 41. ALTERATIONS AND LIENS 42. INSTALLATION AND REMOVAL OF TRADE FIXTURES 43. UNREMOVED TRADE FIXTURES 44. RELOCATION AND ASSISTANCE 45. ABANDONMENT BY CONCESSIONAIRE 46. INSOLVENCY OF CONCESSIONAIRE 47. CUMULATIVE REMEDIES 48. WAIVER OF BREACH 49. FORCE MAJEURE - UNAVOIDABLE DELAYS 50. BONDS 51. EMERGENCY CLOSING OR CLOSING TO EFFECT REPAIR/REMODELING THE PREMISES 52. DELIVERIES OF SUPPLIES 53. EMPLOYEE PARKING 54. NOTICE 23 23 24 25 25 26 26 26 26 27 27 28 28 29 29 30 30 30 31 31 32 32 32 32 CONCESSION CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICHAEL ALI FOR BOLSA CHICA STATE BEACH 1l0 THIS CONCESSION CONTRACT is made and entered into effective June/, 1997 by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "City"), and MICHAEL ALI (hereinafter referred to as "Concessionaire "). WHEREAS, the State of California, acting through its Department of Parks and Recreation, hereinafter referred to as "State", and the City entered into an "Operating Agreement" dated December 1, 1986 which agreement provides for the care, maintenance, and control of the Bolsa Chica State Beach from the Huntington Beach Pier to immediately south of Seapoint Avenue by City; and State entered into a "Concession Contract" for Bolsa Chica State Beach dated September 5, 1979, with Donald W. Tosh, Ted E. Christensen, and Tom A Lewis (herein referred as "TLC") to operate within Bolsa Chica State Beach five (5) food and beverage stands located between Warner Avenue and Seapoint Drive, which TLC was required to construct (hereinafter referred to as the "Premises"); and Pursuant to the authority of and in accordance with Section 5080.30 et seq., of the Public Resources Code, the State and the City amended the Operating Agreement (hereinafter referred 1 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 to as the "Amendment") to assign to the City all of State's right, interests, and duties in the Concession Contract; and City desires to grant a concession in the Premises to Concessionaire;. NOW, THEREFORE, the parties covenant and agree as follows: SECTION 1. GRANTOR CONCESSION FOR THE PREMISES The City, in consideration of the Contract hereinafter stated, grants to Concessionaire for the purposes stated herein, the right, privilege and duty to equip, operate, and maintain a nonexclusive concession in Bolsa Chica State Beach at the Premises (hereinafter referred to as the "Concession"). The Premises are more particularly described in Exhibits "I" and "II" attached and hereby made a part of this Contract. The possessory interest herein given to the Concessionaire does not exclude the general public from the Premises; however, the use by the general public is limited by the terms and conditions of the possessory interest given herein. This Contract is not intended to confer third party beneficiary status to any member of the public who is benefited by the terms of this Contract. The Concession is subject to all valid and existing contracts, leases, licenses, encumbrances and claims of title which may affect the Premises, and the use of the word "grant" herein shall not be construed as a covenant against the existence of any thereof. 2 SF/s:PCD:AIi-6/97 RLS 97-270 6/6/97 - #4 SECTION 2. TERM This Contract shall commence at 12:01 a.m. on June 17, 1997, and end at 12:01 a.m. on November 30, 1999, unless sooner terminated as herein provided. The Contract may be carried on after November 30, 1999 on a month -to -month basis. SECTION 3. CONDITIONS OF PREMISES The taking of possession of the Premises by the Concessionaire shall, in itself, constitute acknowledgment that the Premises are in good and tenantable condition. Concessionaire agrees to accept the Premises in its presently existing condition, "as is", and that the City shall not be obligated to make any alternations, additions or betterments thereto. SECTION 4. QUITCLAIM DEED Upon expiration of this Contract, Concessionaire shall execute and deliver to City within thirty (30) days after service of written demand therefor, a good and sufficient quitclaim deed to the Premises. Should Concessionaire fail or refuse to deliver to City a quitclaim deed as aforesaid, a written notice by City reciting the failure of the Concessionaire to execute and deliver said quitclaim deed as herein provided, shall after ten (10) days from the date of recordation of said notice be conclusive evidence against Concessionaire and all persons claiming under Concessionaire of the expiration of this Contract. SECTION 5. RENTAL Concessionaire shall pay, without demand, as minimum annual rental for the Premises the sum of Two Thousand Dollars ($2,000.00) payable monthly at the rate of Four Hundred Dollars ($400.00) in each of the specified months (June, July, August, September, and October) SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 of each year of this Amendment or the following percentage(s) of annual gross receipts, whichever sum is greater: 15% of first $200,000.00 of annual gross receipts, plus 17% of all over $200,000.00 of annual gross receipts. The minimum rent for June 1997 shall be prorated to be $175.00. Beginning on July 15, 1997, Concessionaire shall furnish to the City a verified statement of the gross receipts of the Premises for the preceding month, or portion thereof. On or before the 15th day of each month thereafter, Concessionaire shall furnish the Director of Community Services of the City ("Director") a verified statement of gross receipts through the end of the preceding month for the then current year for each of the five (5) individual stands and cumulatively for the entire Premises. A current year is defined as a year that begins on June 1 and continues for 12 months thereafter: e.g., June 1, 1997 the current year begins and May 31, 1998 the current year ends. With such monthly statement, the Concessionaire shall pay to City the rental fee for the preceding calendar month. The rental payment for each preceding month shall be such an amount as will, if added to all previous months' payment of that current year, equal the prescribed percentage of the accumulated gross sales to the end of that month, or the total minimum monthly rental to date, whichever is greater. In addition to the gross receipts statement, the Concessionaire shall furnish copies of all sales and use tax returns submitted by Concessionaire to the California State Board of Equalization, the Employment Development Department, the Franchise Tax Board, and any other governmental agency for the Premises. 4 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 • • In the event a rental payment is not made on or before the due date herein provided, Concessionaire shall pay to City a late charge on said unpaid rental at the rate of one percent (1 %) per month from and after the due date thereof until the date of payment. Should there be unusual or extenuating circumstances for not paying said rental on or before the due date herein provided, the Director may recommend and the City in its discretion may waive the late charge on the unpaid rental. Payments to the City shall be made to the order of the City of Huntington Beach and made at the Office of the Director at Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California 92648, or at such other location as may from time to time be designated by City. Concessionaire will submit to the City, no later than forty-five (45) days after the close of each business year during the term of this Contract and no later than forty-five (45) days after the end of the term of this Contract, a profit and loss statement prepared by a Certified Public Accountant or Public Accountant licensed by the State. of California. Said statement shall contain an appropriate certification that all gross receipts during the yearly accounting period covered by said statement shall have been duly and properly reported to the City. In the event this Contract is terminated, a profit and loss statement for the period of operation not previously reported, prepared in the manner stated above, shall be submitted by the Concessionaire to the City within fifteen (15) days after this Contract is terminated. SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 Concessionaire agrees that as part of its record -keeping activity; it shall at its own cost and expense install and maintain such cash register equipment as may be deemed necessary by City. Such cash register equipment shall contain a continuous registering tape. The term "gross receipts, wherever used in this Contract, is intended to and shall mean all moneys, property or any other thing of value received by Concessionaire through the operation of the Concession or from any other business carried on or upon the Premises or any portion thereof, or from any other use of the Premises or any portion thereof by Concessionaire, without any deduction or deductions. Gross receipts shall include the total selling price of all merchandise or services sold or rendered in, or property rented on, or from the Premises by Concessionaire, 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 Concessionaire in or on the Premises;. (b) Commissions received by Concessionaire from such automatic vending, weighing, and other machines not owned by Concessionaire but operated in or on the Premises; (c) Commissions received by Concessionaire 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 the Premises for merchandise or services to be delivered or rendered off, or from sources outside, the Premises; and SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 • (e) Proceeds from the renting of beach equipment of any kind from said Premises. Gross receipts shall not include any sales taxes imposed by any governmental entity and collected by Concessionaire. SECTION 6. BOOKS AND RECORDS Concessionaire shall keep true and accurate books and records showing all of its business transactions in separate records of account for the Concession in a manner acceptable to City and the City shall have the right through its representative and at all reasonable times, to inspect such books and records including State of California sales -tax return records, and Concessionaire hereby agrees that all such records and instruments are available to the City. The books and records shall show the total amount of gross receipts made each calendar month in, on, or from the Premises. Furthermore, Concessionaire 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 the Premises to be recorded in a cash register or cash registers that have cumulative totals and are sealed in a manner approved by City. Concessionaire agrees to maintain on the 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 the Premises during such calendar month. SECTION 7 AUDIT OF GROSS RECEIPTS City may at any time within three (3) years after receiving the year-end profit and loss statement, at its own cost and expense, cause all books, records, and cash register tapes described SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 in Section G of this Contract for the business year purportedly covered by the statement, be audited by a public or certified public accountant selected by City. Concessionaire shall on receiving written notice of City's desires for such an audit deliver and make available all such books, records, and cash register tapes to the public or certified public accountant selected by City. Furthermore, Concessionaire shall promptly on demand reimburse City for the full cost and expense of the audit should the audit disclose that the questioned statement understated gross sales or the rent payable because of gross sales by five (5) percent or more. City further reserves the right to examine all such books and records at any time during the one (1) year period following the termination of this Contract. SECTION 8. USE OF PREMISES: The Concessionaire shall use the Premises for the sale of food and beverages (non- alcoholic) and items of a similar nature usually sold at a beach refreshment stand; and for the rental and sale of beach equipment and fishing tackle. Such items shall include, but not be limited to hamburgers, deli sandwiches, hotdogs, sodas, smoothies, slush's, fruit juices, chips, popcorn, ice cream, candy, towels, kites, beach toys, sunglasses, T-shirts, shorts, sunscreen, boogies boards, bikes, wetsuits, and unbrellas. The Concessionaire shall also sell firewood, which shall be the same quantity and quality of wood as is sold by the State. Concessionaire, at its own expense, shall equip the Premises and shall keep the same equipped in a first-class manner throughout the term of this Contract. In addition, Concessionaire shall provide a mobile food service to be offered on weekends and holidays or more often as demand warrants, which SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 shall provide food items beyond the typical fast foods, such as salads, fruit, frozen yogurt, and bottled water. These services shall be provided on a schedule no less than the following: (i) from the Saturday preceding Palm Sunday to the Saturday of the Memorial Day weekend and from the day following Labor Day through September 30, a minimum of one stand shall be open daily, from 10:00 a.m. to 4:00 p.m.; (ii) from the Saturday of Memorial Day weekend through Labor Day, Concessionaire shall be fully prepared and staffed to open daily all the Concession stands and shall maintain open a minimum of one stand from 10:00 a.m. to 10:00 p.m. Concessionaire shall open and maintain open additional stands to accommodate visitor attendance and usage. It is the intent of the City that services be provided in a manner to meet the needs of the visiting public and should City deem hours of operation or number of stands open inadequate to meet such needs City may require Concessionaire to adjust its schedule to a schedule provided by City. Concessionaire may remain open on other dates, observing same hours, at its discretion with the concurrence of the Director. In the event of adverse weather or other operating conditions, the Director or his authorized representative, may permit the Concessionaire to close at any time during the term of this Contract. The Concessionaire shall not use or permit the Premises to be used in whole or in part during the term of this Contract for any purpose, other than as herein set forth, without the prior written consent of the City first had and obtained. The described schedule is a minimum operating schedule. The Concessionaire shall at all times faithfully obey and comply with all laws, rules and regulations applicable thereto adopted by federal, state or other governmental bodies or SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 departments or officers thereof. This contract is expressly subject to regulations and policies of the State Park and Recreation Commission and the Director. All foods and beverages (non-alcoholic) sold directly on the beaches shall be sold in disposable paper containers. No pull -top cans or styrofoam containers are to be vended or dispensed from the Premises. The City shall from time to time review items sold and containers or utensils used or dispensed by Concessionaire and wherever feasible, eliminate the use of non -returnable containers and plastics. The City reserves the right to prohibit the sale or use of non -recyclable containers or plastics. SECTION 9. QUALITY OF SERVICE AND CONTROL OF RATES AND CHARGES Service to the public, with goods and merchandise of the best quality and at reasonable charges, is of prime concern to the City and is considered a part of the consideration for this Contract. Therefore, Concessionaire agrees that it will operate and manage the services and facilities offered in a first-class manner, and comparable to other first-class Concessions providing similar facilities and services, during the entire term of this Contract. Where such facilities are provided, Concessionaire agrees that it shall and will furnish and dispense foods and beverages (non-alcoholic) of the best quality and shall and will maintain a high standard of service at least equal to that of other establishments in State Parks and/or adjacent communities and to those prevailing in such areas for similar products and services, and without discrimination. 10 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 The City shall have access to and the right to inspect the schedule of prices and rates for goods sold or services rendered or performed upon the Premises, and menus, lists, portion schedules, and schedules of prices in the restaurant or other food -serving activities of Concessionaire; and in the event that after Concessionaire has been advised and given a reasonable opportunity to confer with the City and justify the prices or portions mentioned above, if the City shall determine any price or prices to be unreasonable or inappropriate for the services rendered, the item sold, or any portion or portions to be inadequate, the same shall be modified as directed by the City. Concessionaire shall post rates and prices for all goods and services in such places as may be designated by City. City reserves the right to prohibit the sale or rental of any item which it deems objectionable, beyond the scope of merchandise deemed necessary for proper service to the public or of inferior quality. No pesticides, herbicides or fungicides may be used that are not approved in writing by the Director in advance of use. A competent person shall be on the Premises at all times while the Concession is in operation. If the on -site manager is other than the Concessionaire, City reserves the right to approve such manager. SECTION 10. HOLD HARMLESS AGREEMENT Concessionaire shall protect, defend, indemnify and hold harmless the City and the State from all costs, expenses, suits, liabilities, damages, and claims of every type, including but not limited to those arising out of injury or death of any person(s), or damage to any real or personal 11 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 • property of any person(s), including the City and the State, in any way relating to the acts or omissions of the Concessionaire in the performance or exercise of any of the duties, powers, or authorities herein or hereafter granted to Concessionaire, except to the extent arising from the active negligence, gross negligence or willful misconduct of the City, the State, and their officers, agents or employees. In the event the City or the State are named as codefendant, the Concessionaire shall notify the City and the State of such fact and shall represent the City and the State in such legal action unless the City or the State undertakes to represent themselves as codefendant in such legal action, in which event the City and the State shall bear their own litigation costs, expenses and attorney's fees. In the event judgment is entered against State and City because of the negligence of State and City, their officers, agents or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. SECTION 11. LIABILITY INSURANCE Concessionaire shall provide before entering the Premises and shall maintain in force during the term of this Contract public liability insurance in the sum of One Hundred Thousand Dollars ($100,000.00) for injury to or death of any one person; and Three Hundred Thousand Dollars ($300,000.00) for injury to or death of more than one person; and property damage and products liability insurance in the sum of Fifty Thousand Dollars ($50,000.00). This policy or policies of liability insurance shall contain the following special endorsement: 12 SF/s:PCD:AIi-6/97 RLS 97-270 6/6/97 - #4 • 1. The City of Huntington Beach, the State of California, and their officers, employees, and servants are included as additional insured but only insofar as operations under this Contract are concerned; 2. The insurer will not cancel or reduce the insured's coverage without thirty (30) days prior written notice to City and State. 3. Neither the City nor the State will be responsible for premiums or assessments on the policy. No cancellation provision in any insurance policy shall be construed in derogation of the continuous duty of Concessionaire to furnish insurance during the term of this Contract. Said policy or policies shall be underwritten to the satisfaction of the City. A signed and complete certificate of insurance, with all endorsements required by this paragraph, shall be submitted to City concurrently with the execution of this Contract. At least thirty (30) days prior to the expiration of any such policy, a signed and complete certificate of insurance, with all endorsements required by this paragraph, showing that such insurance coverage has been renewed or extended, shall be filed with City. days. Upon request, insurer shall furnish City a certified copy of the policy within fifteen (15) SECTION 12. FIRE INSURANCE Concessionaire shall provide before entering the Premises and shall maintain in force during the term of this Contract, fire insurance with extended coverage endorsements thereon, on the Premises in an amount equal to ninety percent (90%) of the full replacement cost and/or 13 SF/s:PCD:AIi-6/97 RLS 97-270 6/6/97 - #4 RA" . • . �c.� L/as/g7 value thereof; said policy to contain a replacement cost endorsement naming the Concessionaire as the insured. The policy shall contain a special endorsement that such 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 the City. The proceeds of any such insurance payable to the City shall be used for rebuilding or repair as necessary to restore the Premises and at the discretion of City. This policy or policies shall also contain the following endorsements: 1. The insurer will not cancel or reduce the insured's coverage without ten (10) days prior written notice to City, per approval of City Council on June 16, 1997; 2. City will not be responsible for premiums or assessments on the policy. A complete and signed certificate of insurance with all endorsements required by this paragraph shall be filed with the City prior to the commencement of operation of the Premises. At least thirty (30) days prior to the expiration of any such policy, a signed and complete certificate of insurance coverage has been renewed, shall be filed with the City. days. Upon request, insurer shall furnish City a certified copy of the policy within fifteen (15) SECTION 13. TAXES This Contract may create a possessory interest in public property which is subject to property taxation. In the event that such possessory interest is created, Concessionaire agrees to be subject to the payment of and to pay property taxes levied on such interest. Concessionaire agrees to pay the above and all other lawful taxes, assessments or charges which at any time may be levied by the State, County, City or any tax or assessment levying body upon any interest in 14 SFATCD:AH-6/97 RLS 97-270 6/25/97 - #4 • • this Contract or any possessory right which Concessionaire may have in or to the Premises covered hereby or the improvements thereon by reason of its use or occupancy thereof or otherwise, as well as all taxes, assessments, and charges on goods, merchandise, fixtures, appliances, equipment, and property owned by it in or about the Premises. Concessionaire shall comply with all laws, regulations and ordinances regarding the collection of taxes due a local government agency, and otherwise administer the same. Concessionaire 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 Concessionaire in, on, or about the Premises SECTION 14. TITLE TO IMPROVEMENTS Concessionaire hereby acknowledges the title of City in and to the Premises described in this Contract, including real property improvements existing or hereafter erected thereon, by Concessionaire, City or others and hereby covenants and agrees never to assail, contest or resist said title. Title to improvements will remain in City upon any termination of this Contract and no sums whatsoever shall be paid to Concessionaire or any other person upon termination for default of any terms of this Contract. SECTION 15. PERSONAL PROPERTY IMPROVEMENTS Title to all personal property provided by Concessionaire and additions and betterments thereto made by Concessionaire shall remain in Concessionaire. 15 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 SECTION 16. MAINTENANCE OF IMPROVEMENTS Concessionaire agrees to maintain the Premises in good order and repair at its own cost and expense during the entire term of this Contract. Such maintenance shall conform to the same standards and schedule as the State provides in its Facility Maintenance Program for Bolsa Chica State Park. Concessionaire shall perform at its own cost and expense, any required maintenance and repairs including structural maintenance and landscape maintenance, and should Concessionaire fail, neglect or refuse to do so, the City shall have the right to perform such maintenance or repairs for the Concessionaire's account, and the Concessionaire agrees to promptly reimburse the City for the cost thereof, provided, however, that the City shall first give Concessionaire ten (10) days written notice of its intention to perform such maintenance or repairs for a Concessionaire's account for the purpose of enabling Concessionaire to proceed with such maintenance or repairs at its own expense. The City shall not be obligated to make any repairs to or maintain any improvements on the Premises. Concessionaire hereby expressly waives the right to make repairs at the expense of the City and the benefit of the provisions of Section 1941 and 1942 of the Civil Code of the State of California relating thereto if any there [:� Concessionaire expressly agrees at all times during the term of this Contract, at its own cost and expense, to maintain and operate the Premises and areas adjacent to a distance of not less than fifty (50) feet, in a clean, safe, wholesome and sanitary condition free of trash, garbage or obstructions of any kind and in compliance with any and all present and future laws, general rules or regulations of any governmental authority now or at any time during the term of this 16 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 0 • Contract in force relating to sanitation or public health, safety or welfare; and Concessionaire shall at all times faithfully obey and comply with all laws, rules and regulations applicable thereto, adopted by Federal, State or other governmental bodies or departments or officers thereof. This Contract is expressly subject to regulation and policies of the State Park and Recreation Commission and the Director of Parks and Recreation. Concessionaire shall remedy without delay any defective, dangerous or unsanitary conditions. Concessionaire shall paint, stain or seal the Premises' stucco, trim, etc., a minimum of every two years, unless it is determined by City in its sole discretion, that such work shall be done once every year. All exterior metal surfaces shall be painted no less than once each year except the roof. Any and all graffiti shall be removed by Concessionaire at its own expense from the Premises within forty-eight (48) hours of notice thereof. Concessionaire shall not obstruct, cause or permit any obstruction surrounding the Premises or any part thereof in any manner whatsoever. Concessionaire shall comply with all written notices served by City 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 Concessionaire fail to comply with City's written notice within fifteen (15) days, or within a time deemed reasonably necessary of the time specified therein, Concessionaire shall pay over to City the estimated cost of such work as set forth in the 17 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 notice. Upon receipt of such sum, City shall then proceed to cause the required work to be performed. In the event that modifications or additions to the Premises are desired, including changes to structural design, landscape design or interior or exterior furnishings, the approval in writing of the City shall first be had and obtained prior to such modification or addition. SECTION 17. UTILITIES AND SERVICES Concessionaire shall be responsible for the payment of all utility charges, including furnishing all necessary refuse and garbage containers and removal and disposal of all rubbish, refuse and garbage resulting from operation of the Premises. All such rubbish, refuse and garbage removed shall be disposed of outside of Bolsa Chica State Park and in accordance with applicable laws and local ordinances. All trash containers and/or trash bins shall be adequately screened to the satisfaction of the Director. For the purpose of this paragraph, sewage disposal shalLbe construed as a utility. SECTION 18. SIGNS ADVERTISING AND APPROVAL OF NAME No signs, names, placards or advertising matter, other than those specified in Exhibit "I" hereto, shall be inscribed, painted or affixed upon the Premises, circulated or published without written consent of the City first had and obtained. 18 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 SECTION 19. INSPECTION OF PREMISES The City hereby reserves the right to enter upon the Premises occupied by Concessionaire at any reasonable time to inspect the same. The State shall also have the right of ingress and egress to inspect, investigate and survey the Premises as deemed necessary, and the right to do any and all work of any nature necessary for preservation, maintenance and operation of Bolsa Chica State Park. Concessionaire will be given reasonable notice when such work may become necessary and shall adjust operation of the Premises in such a manner that State may proceed expeditiously. SECTION 20. BREACH OF CONTRACT This Contract is made upon the condition that if the rents or other sums which Concessionaire herein agrees to pay or any part thereof shall be unpaid on the date on which the same shall become due, or if breach be made in any of the terms, agreements, conditions or covenants herein contained on the part of the Concessionaire, or should Concessionaire become insolvent or bankrupt either voluntarily or involuntarily, then, and in such event at the option of the City, this Contract shall cease and terminate and the City may enter upon and take possession of the Premises and Concessionaire shall vacate the Premises within 30 days after notice that this Contract is terminated and Concessionaire agrees to pay all costs incurred by City in its taking possession of the Premises. Except for the payment of rent, Concessionaire will have thirty (30) days to cure a breach or if more than thirty (30) days is necessary to cure a breach, Concessionaire, upon the written concurrence of City, will faithfully commence to cure such breach. 19 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 Notwithstanding any of the above breach of contract provisions, should Concessionaire create or allow to be created a nuisance on the Premises, City at its discretion may immediately declare this Contract and all rights therein terminated. SECTION 21. WITHOUT CAUSE TERMINATION Notwithstanding any other provision in this Contract and in addition to any other remedy available to City, City shall have the option to terminate this Contract upon six (6) months written notice to Concessionaire. It is expressly understood that this Section 21 does not apply to the situation where the City may terminate this Contract for any breach on the part of the Concessionaire. SECTION 22. INTERPRETATION OF CONTRACT This Contract is made under and is subject to the laws of the State of California in all respects as to interpretation, construction, operation, effect and performance. SECTION 23. ASSIGNMENTS (a) Assignment Without Consent Prohibited: No transfer, assignment or corporate merger by the Concessionaire that affects this Contract or of any part thereof or interest therein, directly or indirectly, voluntarily or involuntarily, for purposes of security or otherwise, shall be made unless such transfer, assignment or corporate merger is first consented to in writing by City. (b) SubConcessions: With the prior written consent of City, portions of the Premises may be operated by others. The following conditions must be met: (1) The sub -tenant must be fully qualified. 20 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 (2) The sub -tenant understands that his interest is taken under this Contract. SECTION 24. WAIVER OF CLAIMS The Concessionaire hereby waives any claim against the City, its officers, agents or employees for damage or loss caused by any suit or proceeding directly or indirectly attacking the validity of this Contract, or any part thereof or by any judgment or award in any suit or proceeding declaring this Contract null, void or voidable or delaying the same or any part thereof from being carried out. SECTION 25. RIGHT OF ENTRY AS AGENT In any case in which provision is made herein for the termination of this Contract by the City or in the case of abandonment on vacating of the Premises by Concessionaire, the City, in lieu of declaring a forfeiture, may enter upon the Premises. To such end, Concessionaire hereby irrevocably appoints the City its agent to remove any and all persons or property on the Premises and place any such property in storage for the account of and at the expense of Concessionaire and to relet the Premises. In such case, the City may relet the Premises upon such terms as it may deem proper, and if a sufficient sum shall not be realized thereby, after paying expenses of such reletting, to satisfy the rent and other sums herein agreed to be paid by Concessionaire, Concessionaire agrees to save the City harmless from any loss or damage or claim arising out of the action of the City in pursuance of this paragraph. 21 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 SECTION 26. TERMS BINDING ON SUCCESSORS All the terms, covenants and conditions of this Contract shall inure to the benefit of and be binding upon the parties and their successors and assigns. The provisions of this paragraph shall not be deemed as a waiver of any of the conditions against assignment hereinbefore set [Med a In the event this paragraph becomes operative, the selection by the Concessionaire of a manager for the Concession shall be subject to the consent of City. SECTION 27. DURATION OF PUBLIC FACILITIES By entering into this Contract, City makes no stipulation as to the type, size, location, or duration of public facilities to be maintained at Bolsa Chica State Park, or the continuation of public ownership thereof, nor does the City make any guarantee regarding the tentative projections in any prospectus furnished to the Concessionaire at any time. SECTION 28. TIME OF ESSENCE Time shall be of the essence in the performance of this Amendment. SECTION 29. EMINENT DOMAIN If, during the term of this Contract, any property described herein or hereinafter added hereto, is taken in eminent domain, the entire award shall be paid to City. SECTION 30. CONFLICT OF INTEREST Concessionaire warrants and covenants that no official or employee of City nor any business entity in which an official or employee of City is interested; (1) has been employed or retained to solicit or aid in the procuring of this Contract; (2) will be employed in the 22 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 s 0 performance of this Contract without the immediate divulgence of such fact to City. In the event City determines that the employment of any such official, employee or business entity is not compatible with such official's or employee's duties as an official or employee of the City of Huntington Beach, Concessionaire, upon request of City, shall terminate such employment immediately. For breaches or violation of this paragraph, City shall have the right both to annul this Contract without liability and, in its discretion, recover the full amount of any such compensation paid to such official, employee or business entity. SECTION 31. PHOTOGRAPHY City and State may grant permits to persons or corporations engaged in the production of still and motion pictures and related activities, for the use of the Premises for such purposes when such permission shall not interfere with the primary business of Concessionaire. SECTION 32. HAZARDOUS SUBSTANCES No goods, merchandise or material shall be kept, stored or sold in or on the Premises which are in any way explosive or hazardous; and no offensive or dangerous trade, business or occupation shall be carried on therein or thereon, and nothing shall be done on the Premises, other than as is provided for in this Contract, and no machinery or apparatus shall be used or operated on the Premises which will in any way injure the Premises or adjacent buildings, provided however, that nothing in this paragraph contained shall preclude Concessionaire from bringing, keeping or using on or about the Premises such materials, supplies, equipment and machinery as are appropriate or customary in carrying on its said business or from carrying on its 23 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 business in all respects as is generally usual. Gasoline and oils shall be stored, handled and dispensed as required by present or future regulations and laws. SECTION 33. NONDISCRIMINATION The Concessionaire and its employees shall not discriminate because of race, religion, color, ancestry, sex, age, national origin or physical handicap against any person by refusing to furnish such person any accommodation facility, service or privilege offered to or enjoyed by the general public. Nor shall the Concessionaire or its employees publicize the accommodation, facilities, services or privileges in any manner that would directly or inferentially reflect upon or question the acceptability of the patronage of any person because of race, religion, color, ancestry, sex, age, national origin or physical handicap. In the performance of this Contract, the Concessionaire will not discriminate against any employee or applicant for employment, because of race, color, religion, ancestry, sex, age, national origin or physical handicap. The Concessionaire will take affirmative action to ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, ancestry, sex, age, national origin or physical handicap. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Concessionaire shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this Fair Employment Practices Section. Form 809, Equal Employment Opportunity Poster, may be used. 24 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 The Concessionaire will permit access to its records of employment, employment advertisement, application forms, and other pertinent data and records by the State Fair Employment Practices Commission, or any other agency of the State of California designated by the awarding authority, for the purpose of investigation to ascertain compliance with the Fair Employment Practices Section of this Amendment. The City may determine a willful violation of the Fair Employment Practices provision to have occurred upon receipt of a final judgment having that effect from a court in an action to which Concessionaire was a party, or upon receipt of a written notice from the Fair Employment Practices Commission that it has investigated and determined that the Concessionaire has violated the Fair Employment Practices Act and has issued an order, under Labor Code Section 1426, which has become final, or obtained an injunction under Labor Code Section 1429. In the event of violation of this paragraph, the City will have the right to terminate this Contract, and any loss of revenue sustained by the City by reason thereof shall be borne and paid for by the Concessionaire. SECTION 34. PARAGRAPH TITLES The paragraph titles in this Contract are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope of intent of this Contract or in any way affect this Contract. SECTON 35. CONTRACT IN COUNTERPARTS This Contract is executed in counterparts, each of which shall be deemed an original. 25 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 SECTION 36. ALCOHOLIC BEVERAGES Notwithstanding anything to the contrary, the sale of alcoholic beverages on the Premises is expressly forbidden. SECTION 37. HEALTH CERTIFICATE Concessionaire shall file with the Director a certificate showing that within the last two years, every person employed in the operation of the Premises has been examined and has been found to be free of communicable tuberculosis, all in accordance with Section 506.1 et seq. of the Public Resources Code. SECTION 38. EMPLOYEE TRAINING All employees involved in the operation of the Premises are to receive an orientation on the State Park System, the Bolsa Chica State Park in which the Premises are located, and local points of interest, which will be sufficient to permit such employees to reply adequately to inquiries from the visiting public. The employee Orientation Program is subject to the approval of the Director. SECTION 39. AGREEMENT IN WRITING This Contract contains and embraces the entire agreement between the parties hereto and neither it nor any part of it may be changed, altered, modified, limited or extended orally or by any agreement between the parties unless such agreement be expressed in writing, signed and acknowledged by the City and the Concessionaire, or their successors in interest. 26 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 0 • SECTION 40. STATE MARKETING AND ADVERTISING PROGRAM The Concessionaire acknowledges that the State has an advertising program designed to promote additional revenue for the State, and the Concessionaire agrees to participate in this program without compensation from the City for such participation. The Concessionaire agrees to place on the Premises any advertising that the State approves under this program. The Concessionaire agrees to rent or sell, along with all other items of merchandise that are part of the Concessionaire's normal and customary inventory, any item of merchandise that the State approves under this program, provided that Concessionaire is authorized to sell it under the terms of this Contract, and the Concessionaire receives reasonable compensation for its sale. The Concessionaire agrees that through the State advertising program, merchandise or beverages may be sold or given away on the beach. SECTION 41. ALTERATIONS AND LIENS Concessionaire shall not make or permit any other person to make any alterations to the Premises without the written consent of City. Concessionaire shall keep the premises free and clear from any and all liens, claims, and demands for work performed, materials furnished, or operations conducted on the Premises at the instance or request of Concessionaire. Furthermore, any and all alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or on the Premises by Concessionaire or any other person shall on expiration or sooner termination of this Contract become the property of City and remain on the Premises' provided, however, that City shall have the option on expiration or sooner termination of this 27 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 Contract of requiring Concessionaire, at Concessionaire's sole cost and expense, to remove any or all such alterations, additions, improvements, or fixtures from the Premises. SECTION 42. INSTALLATION AND REMOVAL OF TRADE FIXTURES Concessionaire shall have the right at any time and from time to time during the term of this Contract and any renewal or extension of such term, at Concessionaire's sole cost and expense, to install and affix in, to, or on the Premises such items, herein called "trade fixture", for use in Concessionaire's trade or business as Concessionaire may, in his sole discretion, deem advisable. Any and all such trade fixtures that can be removed without structural damage to the Premises or any building or improvements on the Premises shall remain the property of the Concessionaire and may be removed by Concessionaire at any time prior to the expiration or sooner termination of this Contract. SECTION 43. UNREMOVED TRADE FIXTURES Any trade fixtures described in this Section that are not removed from the Premises by Concessionaire within thirty (30) days after the expiration or sooner termination, regardless of cause, of this Contract shall be deemed abandoned by Concessionaire and shall automatically become the property of City as owner of the real property to which they are affixed. Notwithstanding anything else in this Contract, where the Contract has been terminated due to a breach on the part of the Concessionaire, under any terms of this Contract, the City shall not be obligated to purchase any improvements made by Concessionaire or to pay the Concessionaire before or after taking possession of the Premises. 28 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 SECTION 44. RELOCATION AND ASSISTANCE In the event this Contract is terminated for any reason by City, Concessionaire shall not be entitled to any relocation rights or benefits and expressly waives such benefits and rights under City, State or Federal Relocation Assistance Plans. This Contract shall have no condemnation value to Concessionaire. SECTION 45. ABANDONMENT BY CONCESSIONAIRE Should Concessionaire breach this Contract and abandon the Premises prior to the natural expiration of the term of this Contract, City may: (a) Continue this Contract in effect by not terminating Concessionaire's right to possession of the Premises, in which event City shall be entitled to enforce all his right and remedies under this Contract, including the right to recover the rent specified in this 'Contract as it becomes due under this Contract; (b) Terminate this Contract and recover from Concessionaire: (1) The worth at the time of award of the unpaid rent which had been earned at the time of termination of the Contract; (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 Contract until the time of award exceeds the amount of rental loss that Concessionaire proves could have been reasonably avoided; 29 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 s 0 (3) The worth at the time of award of the amount by which the unpaid rent for the balance of the term of this Contract after the time of award exceeds the amount of rental loss that Concessionaire proves could be reasonably avoided; and (4) Any other amount necessary to compensate City for all detriment proximately caused by Concessionaire's failure to perform his obligations under this Contract. SECTION 46. INSOLVENCY OF CONCESSIONAIRE The insolvency of Concessionaire as evidenced by a receiver being appointed to take possession of all or substantially all of the property of Concessionaire, or the making of a general assignment for the benefit of creditors by Concessionaire, or filing a petition in bankruptcy shall terminate this Contract and entitle City to re-enter and regain possession of the Premises. SECTION 47. CUMULATIVE REMEDIES The remedies given to City in this Article shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this Contract. SECTION 48. WAIVER OF BREACH The waiver by City of any breach by Concessionaire of any of the provisions of this Contract shall not constitute a continuing waiver or a waiver of any subsequent breach by Concessionaire either of the same or another provision of this Contract. 30 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 • 0 SECTION 49. FORCE MAJEURE - UNAVOIDABLE DELAYS Should the performance of any act required by this Contract to be performed by either City or Concessionaire 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 Concessionaire as required by this Contract or the performance of any act rendered difficult solely because of the financial condition of the party, City or Concessionaire, required to perform the act. SECTION 50. BONDS Concessionaire, at its own cost and expense, shall furnish the City within thirty (30) days after the final awarding of this Contract, a valid surety bond issued by a corporate surety licensed to transact surety business in the State of California and in a form satisfactory to City, in the sum of Ten Thousand Dollars ($10,000) payable to the City and conditioned upon full and satisfactory performance of the obligations of Concessionaire set forth in this Contract. Said bond renewable annually shall be kept in full force and effect by the Concessionaire during the entire term of this Contract to insure faithful performance by Concessionaire of all the covenants, terms and conditions of this Contract inclusive of, but not restricted to, the payment of all rentals, fees and charges. The corporate surety issuing said bond or bonds shall give City, as well as the 31 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #44 Concessionaire, notice in writing at least thirty (30) days prior to each anniversary date of its intention to renew or not to renew bond or bonds of Concessionaire. SECTION 51. EMERGENCY CLOSING OR CLOSING TO EFFECT REPAIRIREMODELING THE PREMISES. The State 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 the State. SECTION 52. DELIVERIES OF SUPPLIES. The State may establish the days and times deliveries of supplies may be made and advise Concessionaire in writing thereof. SECTION 53. EMPLOYEE PARKING. The State may establish the days and times when Concessionaire and Concessionaire's employees and number of automobiles, trucks, and other motorized and non -motorized vehicles may park and where and advise Concessionaire in writing thereof. SECTION 54. NOTICE. Any written notice, given under the terms of this Contract, shall be either delivered personally or mailed, certified mail, postage prepaid, addressed to the party concerned, as follows: 32 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 9 • CITY OF HUNTINGTON BEACH: Mr. Ron Hagan Director of Community Services City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 LESSEE: Mr. Michael Ali ZACK' S TOO 19102 Beachcrest Lane Huntington Beach, CA 92646 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. CONCESSIONAIRE: MICHAEL ALI By: .ice Michael Ii ATTEST: 06L City Clerk �a 6 '77 VIEWED AND APPROVED: City Admims rator 33 SFATCD:AH-6/97 RLS 97-270 6/6/97 - #4 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor APPROVED AS TO FORM: City Attorney INITIA ANDAPPROVED: Services 0 EXHIBIT #2 "1 REMESPMENT REFRESH MEN T COucC-SSlnu STAgr� G09cESSlorJ STAND J —�—_� aareAr ar•rwr a eArnNa hoer 7 �� _ /•I/rlrl llq llCll /A•rgr A/O �_ IMaga •N of ��'� Nff•fwfrpr llr(f:._--� �+. tt �O 9 eLo- ter'/I'•.,;!. �::::::•:.�j'D LL 9 — •�rltA• Act rlptluu • PNf tN.Y1a n•. ••1•. • Ir�.r .r.. _ .. • . .. C_ aP at Paer L•r.0 lNf n+saa w•. Nf• — 1'Z N(rrpY7�I•r MI/r I.r1/ f•aAMKe _. _ .. 1 0• T ! i a•aA 4!lI AINr r••L 01 JO • r.f l.Nrla1 f MMI••41 1,ti( � it Pai i[L OLsa)v • •Y 2 O cc�ucEsslc��( � � GcJMM�5�,4RY 2E FRE'SMENT y C .1 colyca5151 sr -4ID a ' •t••NI tKt•Na tl•rga\ PARK ENTRANCE � s �� . �,, .- F .ESA resin[ [oMl oL • [ t -.1c I 41H.MIfref110M•OM pK - • 11.160.0 IOAte .. A�.W 111[C•.NAO T .al • • _ �Y a L! l I f r•ON.•N .. x J a ' 0 C L a N �LIt•� u W H m Z STATE BEACH BOUNDARY W W CL RE FRESF+Mf-N T l S T,4g o Y PROPOSED CONq6 DRESSING PINS. S. N f V PROPOSED CONClSC[fSM1N MlNXL01Nif Q W A END OF PROPOSED DEVELOPMENT x > • PROPOSED LN[DUAAO STAND' u W [M(ei(KT [•7AA•K1 / U [/(,,-^-^a PROPOSED PLANTING f[Mlrt /[K[ MINI i ®PROPOSED PRDY[NAD[ D PICNIC TERRACE • J �! 0 :J -off COL. 1 O �[Mlr oal �•frrr IUA �' FACILITIES SUMMARY m • . _.. ... ��' •� f..S.r.a P.AMI■a o4. use C.-` Pus [ 2� L MI A IA f _ 1 r r �• rKNIC■N{'II\P•4a1 NaN•NarN1••�aAwl 100 )D a L ! % /I L O C L a /[ CONFOAT suloN MTN DRESSING RI 1 • O..N+q ru .-r�.-� � [BIT'. ��. LLL _ CONCESSION "Lwwof f 125861 IpIA•L[ LI1LiJAAD SIANDS �.11.�.� 1 � � .OYINIf TA.TION WILWNCIMAa OPIK[1 OL watt "O LII[CUAAD CC lAIOgES 1 I •tAal Nntl Se a /M • I'le •1q t0• PAfM•[NAO( W.a• \ SAND A(T(MTNN HALL a f. MLI I CNILOA(M'S SAND PLAT AREAS 6 O vv. . I..o..GH !DM[ a F99? A PORTION OF RANCHO LA BOLSA C HICA LEGEND �• "In K.. lo.11rDwr T. 5 81 6 S., R. I I W.! S. B.M. ORANGE COUNTY rye /ti� © ro,.r ar Korwp J v 4RECORO OF SURVEY ......... [wos ruln.ssso s.lrw [wo rr[! BK. 92 PG. 19 cwulvre. ru„os A y wwrn w.us+ lJ9Y �ITT.YtrR • Y �17Tr . _.... ._ ....._ _..._ _ .. .. _. _ ! RECORD OF SURVEY BK. 33 PG. �O , P A C I F I C tie / 9~ sl Wad . A • A �r O C E A N O C E A •.M..wr NOTE- PARK BOUNDARY ALONG PACIFIC OCEAN BETWEEN MAIN STREET AND NESIFALY BOUNDARY EXHIBIT OF CITY OF HUNTINGTON BEACH FMED BY AGREEMENT RE"r ED 2.23-V IN BOOK 0993 FACE 3 OFFICIAL RECGRDS. i • EXHIBIT #3 0 • EXHIBIT #4 • Member FDIC 11 JUNE 1997 CITY OF HUNTINGTON BEACH TREASURERS OFFICE RE: DEPOSIT FOR CITY OF HB FROM MIKE ALI TO WHOM IT MAY CONCERN; THIS IS TO VERIFY THAT MIKE ALI HAS HAD A CERTIFICATE OF DEPOSIT WITH FIRST BANK & TRUST (PREVIOUSLY HUNTINGTON NATIONAL BANK) SINCE 1991. THIS WAS PREVIOUSLY LISTED AS OWNED BY CECIL WHEAT. WITH THE NEW CERTIFICATE OF DEPOSIT PURCHASED THIS DATE, ON DEPOSIT FOR SECURITY FOR THE CITY OF HUNTINGTON BEACH IS THE AMOUNT OF $10,000.00, AS VERIFIED WITH CERTIFICATES PROVIDED BY MR ALI. IF YOU WISH FURTHER INFORMATION, PLEASE TELEPHONE THE NUMBER LISTED BELOW. THANK YOU. l� CHERRIE WADINSKI BRANCH MANAGER First Bank & Trust / 501 Main Street / Huntington Beach, California 92648 / 714-536-0096 / Fax 714-536.1556 • i CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION HUNTINGTON BEACH To City Council via City Administrator From Ron Hagan, Director, Community Services;l,: 0'�� Date June 13, 1997 Subject Chronology of Operating Agreement for Bolsa Chica State Beach Concessions This memo will document the chronology of events that led to the current operating agreement between the city and the state and the subse- quent lease agreement between Mike Ali and the city for the operation of beach concessions at Bolsa Chica State Beach. The city has been working on the Pier Plaza master plan since 1992. From 1992 through 1994, the city developed the master plan and secured the entitlement for the project through the California Coastal Commission. During this time, the city negotiated with Tom Lewis and his partners (TLC) with regard to the portion of TLC's lease with the state that was assigned to the city in 1986 along with five miles of state beach. The portion of the lease covered Sunny's beach concession and the 260 space parking lot, both just north of the pier. The city offered TLC a chance to participate in the Pier Plaza project by providing the capital financing necessary to rebuild the parking lot and the concession north of the pier. After negotiating for over eighteen months, TLC decided it was not interested in investing in the project and submitted a claim for $880,000 as an offer of buyout for the lease interest. The city denied TLC's claim in 1995 and, in October, gave TLC its termina- tion notice effective September, 1996. In September, 1996, TLC refused to vacate the property and resubmitted its claim for $880,000 for buyout of its lease. TLC's claim was based on the' fact that it was not a signatory to the transfer (assignment of the Sunny's beach concession and parking lot portion) of its lease with the state to the city. TLC claimed that the entire agreement had to be terminated, i.e., both the city assigned portion of the lease and the remaining portion of the lease on Bolsa Chica State Beach consisting of five beach concessions. PM The city filed a lawsuit to enforce the termination notice of TLC from its as- signed portion of the lease, i.e., Sunny's and the parking lot north of the pier. In early 1996, a jury ruled unanimously that the city did have the right to terminate its assigned portion of the lease. TLC filed an appeal in Su- perior Court claiming that any termination notice required a buyout of the depreciated cost of TLC's original capital investment. At this point, the city began negotiations with the state Parks and Recreation Department to ascertain the value of TLC's improvements of the portion of the lease assigned to the city. It was determined that there were no improvements done by TLC other than maintenance items to the city's assigned portion of the lease. TLC did, however, build five beach concessions on Balsa Chico State Beach which had a remaining depreciated value of ap- proximately $45,000. When the city informed TLC that it would fight the appeal on the grounds that there was no depreciated value to the city's portion of the lease, TLC offered to withdraw the appeal and give up possession of both the city's assigned portion of the lease and the remaining five beach concessions if TLC were paid the $45,000 in depreciated value for them. State and city officials then met and negotiated an agreement whereby the city would pay the state the $45,000 necessary to buy out TLC.and assume TLC's ob- ligations for the three years remaining on the lease (Ap(l, 2000). Both the City Council and the state approved this agreement in April, 1997, and the city took possession of the entire TLC leasehold with the state. Since the city takeover of the parking lot north of the pier it has netted $51,000 in revenue as of June 22, 1997. Consequently, the city has, in a little over four months, recouped the cost of the buyout of the TLC lease in addition to gaining possession of the property in order to proceed with the Pier Plaza project. The portion of the lease pertaining to the five beach concessions at Bolsa Chico State Beach still has three years in which the city is obligated to operate those concessions. When TLC va- cated, it took all of its fixtures and equipment. A cost analysis on the pur- chase of new fixtures and equipment to operate the concessions reveals that a minimum of $75,000 would be needed. There would also be an ini- tial investment of approximately $25,000 in merchandise for resale and rental as well as the need to hire staff to operate the concessions. An al- ternative to city operation was to request proposals from existing city concessionaires who have the expertise and surplus equipment to oper- ate the Balsa Chico concessions. The city received three proposals, two of which determined they did not wish to proceed after negotiations be- gan. Mike Ali, operator of Zack's, Too and the Waterfront's Beach Cabana, submitted a proposal to assume all of the obligations under the master lease between the state and the city, provide a minimum of $100,000 in capital investment for equipment, fixtures and merchandise, and pay the city an additional 5 percent of gross revenues for each year of the re- maining three years on the lease. Staff felt this turnkey approach to meeting its obligations under the operating agreement with the state for the Bolsa Chica concessions was the best for the city and has, conse- quently, recommended it to the City Council. If Council approves, the concessions will be opened by July 1, 1997, and city staff will monitor the operations as it does its other contracts. If there are any questions on the above chronology of events, please contact me. RH:cr ;, J CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK CITY CLERK LETTER OF TRANSMITTAL REGARDING ITEM APPROVED BY THE CITY COUNCIL/REDEVELOPMENT AGENCY APPROVED ITEM l � i 11 Name . I _ i stred City, State, ATTENTION: DEPARTMENT: See Attached Action Agenda Item .C. —oS Date of Approval / Enclosed For Your Records Is An Executed Copy Of The Above Referenced Item For Your Records. Connie Brockway City Clerk Attachments: Action Agenda Page V Agreement V Bonds Insurance RCA Deed Other Remarks: CC: �• N e De artment RCA Agreement Insurance r e De 9ftincnI RCA Agreement -1L— Insurance Other e Department , /. RCA Agreement Insurance Other .Risk Management Department Copy G: Follo%%vp'agrmtz transltr ( Telephone: 714.536.5227 ) .. .... .... , .. .. ■■ 'fq psi AI6111t1I Yx r t, q kxNx x3k$a5 Ad �kr`,K xt! `�� PIR * FX x ti A • iFR ..: iFF ii -ems-- i. :Inv....... ...•.,,x m, �.....�. ...... ....y x ..: -x ....... ..... / . itah��Y nn k }'� Yt V6 d 97 PRODUCER THIS C TIFICATE>1 S ISSUED M R F INFORMATION WHITE & COMPANY INSURANCE INC ONLY AND CONFERS NO RIGHTS UPON THt CERTIFICATE NQlQSR. THIS CERTIFICATt DOES NOT AMMO. !X'[SNQ OR (.310) 393-9477 ALTER THE COVERAGE AFFORDED BY THE POLIICAS 4SLOW. PO BOX 70 COMPANIES AFFORDING COVERAGE, _ SANTA MONICA CA 90406-0070 coMPwr - - _, _• ._.A PENN AMERICAdz MOUND COMPANY ZACK TOO / BEACH CABANA MIKE ALI COMPANY 19105 BEACH CREST LN #C C� HUNTINGTON BEACH CA 92646 COMPANY - e. `y.:x % y yNn x ,S, x x..� i f� u x - H - :: ,. »:;.. >, x.`•o .S',no ..:. r, •k,». "K: s �rF'..S .�a<W:.:,...,: x; r;£3...�`.weRi�:. >i -, xa, ur:'?ny.'&`vrS'`%•x .:x '.'`.y.�xn ::tK�'t'e`5.''. . THIS 18 TO CERTIFY THAT THE POLICIES OF INSURANCE USTEO BELOW HAVE BEEN ISAUEO TO THE INSURED NAMED ABOVE FOR UK POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THNS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 1E SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS KNOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTm OF wuRANos POLICr N1IMetA o TZ;M ` r(MMMoAnY)N Lo" aIIItRAlUME1Tr PAC6023575 6/04/97 6/04/98 anitRALAG mum sl 000 000 X CoMMERCUu. oTJA[RAL UABsm PRODUCTS • 00MPW AGO $1 0 0 0 0 0 0 CLAIMS MAD! U OCCUR PERSONAL A ADV INJURY 41,000j000 OMMEWS A CONTRACTOR'S PROT EACH OCCURREWE $1 000 OOO FIRr DAMAGE (Ally ar U•I = 5 d 000 MFM RXP a+. won) • 1 000 AUTomoms IJmam ANY AUTO THE PARTIES SPECIFIED F EREUNDER 0 GREE THAT COMBING c mw LIMB a ALL OWNS AUTOS ALL REQUIRED NOTICES i RE THE RESI QNSIBILITY soo Ly wuRY ` WHOX MAUT0 OF THE "COMPANIES AFFORDING COVERAGE". THE IP-"(ftni HIRE° Aurae PRODUCER WHETHER AN UTHQRIZED REPRESEN- BODILY NJURY NO"WNED AUTOS TATIVE OR NOT, BEARS NO RESPONSI SILITY FOR {`tff "'* "q — ANY NOTICE, PROPERTY DA,MApS a GMA09 UAMLM A_ i S .0 VED S' 1 J i- clti : AUTO ONLY • EA ACCIDENT ANY AM G G.IL FUTTON OTHER THAN AUTO ONLY 777 CITY AVJ- 0 iv Y 9ACH ACCIDlMt REGAAT! !XCKU UABILM De p y 1tY EACH OCCURRENCE S tlGfRo"y RuMems"PORE AoaREaATE HI "tPk THAN UMBRELLA PORM WORKERS COMMMATION AND V 8TA7UTORY LIMBS 11MKOVEMV LIAMMYY 0 EACH ACCIOWT 7HS PROPRICMFV INCH PARTNERBRXECUTIV! - .-. :- ; '." `,t' i ri'v 1 , L J 018 E • POuOY LMAIT 0"10IMSAPR; RXCL 'DD'L• IN-S �u LI"�u On" .J'� 018EA8!• RAC44 IDAPLOYE S MICRWIION OF OPtMT+O KOCAMICII DIMI O"MCULL REMQ CERTIFICATE HOLDER IS NAMED AS AN ADDITIONAL INSURED WITH RESPECTS LOCATION: 21579 & 21351_ PACIFIC COAST HIGHWAY, BOLSA CHICA STATE BEACH 0112,3,4 & 5, HUNTINGTON BEACH CA 92648 - *10 DAY NOTICE OF CANCELLATION FOR NON-PAYMENT ..x.,�,% x:f5< VC?�rjeiFs:x .e:Fr x}:•�:'::::k `:R r^..k:i a �S:ea •< . .:..::..:. F. x+x }.x £�.a. Y.'xi�'d• fv' �y }'\:b''''11'" X' •F ::•x•a, GIN. tN!° • ;`>;. � > . :> •x'. .... � n...:v .. •:eaa, ..: � .. x:4... � ... .: ...:.,.. �.. ....:.vsmx>, •..� x« .N,... ....xb>�r �!.r , r; . `t�.a:'ww-,,.. '.�`, .. SHOULD AW Of THE A80VR DRSCNIM0 POLIM ei CANCIIIJAD WAOM TN! CITY OF HUNTINGTON BEACH RXPIRAMN DAM YMAEOF, IM ISSUING COMPANY WaL:oMY4ft)ft MAIL 2000 MAIN ST . .-Q_• DAYS WRrrmm NoTICR TO THE AxRTmAYR HOLDM NAmac TO Vm LEM P.O. PDX 711 xEk} ,ar HUNTINGTON BEACH, CA 92648 .� AUTWORUID RHIERSSENTATIYI CAROLYN B. CROWE'� M 'b ` ,y,:etJM ".' Sk� ?:k::�x�Y�27:J L�Y:.. �:�:: ...!>. :.Y.•• �:-.{:',:.b `Yl&�� •.v of Y. e �•p\l +ryp�•��R in _ _ nOT!_CaC_C)TC•flT AAIH.4i,i -) -41TH1TI (�/46)= rFORR i�`i kK s:..+,•: �•.:::..�.,,.,�,..M.,...,.�•..,•„«,wrVR+t�'3hS;?`S.w.xe.MKRA?��S!i7T xsK,,....:..v.�`xe.3stss��!�..........: THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, Is IN FORCE, AND CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY. paccue"IAlO Ma r(310 i 3 9 3— 9 4 7 7 COMPANY Gdc WHITE & COMPANY INSURANCE INC p0•. 3�-� (310) 393-9477 PENN AMERICA 6 PO BOX 70 %BLISS & GLENNON 416If7 SANTA MONICA CA 90406-0070 P 0 BOX 3638'k - 000l/ aue•CODI: _ _ TORRANCE CA 90510 M sAZACTAO-5 IIAURIJ, �- •LOAN NUM!!p POLK:Y NUMsIN ZACK TOO / BEACH CABANA MIKE ALI 19105 BEACH CREST LN #C HUNTINGTON BEACH CA 92646 BOLSA CHICA STATE BEACH #1,21,314,5 HUNTINGTON BEACH, CA 92648 I,PAC6023575 i14ICnYI OATR I%PIIATH M DA" coNrNum uNn► 6./04 97 06/04/98 i nenAge PRION n049M VAT11111 LOC I#1 D4vIRAtlrJPIlu./IPOAM• — BUSINESS PERSONAL PROPERTY -- FIRE ECE V&MM AMOUM>r OF DMIKAWX DIDuOlou $25,000 $1,000 SPECIAL FORM — REPLACEMENT COST LOC #2 — BUSINESS PERSONAL PROPERTY — FIRE ECE V&MM $251000 $1,000 SPECIAL FORM — REPLACEMENT COST LOC 13 — BUSINESS PERSONAL PROPERTY — FIRE ECE V&MM $25,600 $1,000 SPECIAL FORM — REPLACEMENT COST LOC #4 — BUSINESS PERSONAL PROPERTY -- FIRE ECE V&MM $25,000 $1,000 SPECIAL FORM •- REPLACEMENT COST LOC #5 — BUSINESS PERSONAL PERPERTY — FIRE ECE V&MM $25,000 $1,000 SPECIAL FORM — REPLACEMENT COST *10 DAY NOTICE OF CANCELLATION FOR NON—PAYMENT ARr- r'+I- RESPONS{BIL{TY OF THE .,COi�, P): "•PPS AFFORDING COVERAGES", THs_ A ILL i AND/OR BROKER WHETHER AN NU l',-iORiZED REPRESENTATIVE OR NOT, bs _-ARS NO RESPONSIBILITY FOR ANY NOTICE. THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW -1n DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW. MAMI AND ADOAI" CITY OF HUNTINGTON BEACH 2000 MAIN ST. P.O. BOX 711 HUNTINGTON BEACH CA 92648 JMORTOACEI i ADDITIONAL MUM L088 PAYI N LOAN AUT1401U720 AFnILOINTATIYQ DENNIS WHITE TW ( A .t - rn rinr—S]_s?_L1_Cri�_nti •_t7t -- tAiujI.Iri'l ,�j 7lrum Ah . ....... .. . .. A. IV!.; -MOW: Wong. LQ2L9 7 T S'W DiNCE THAT INSURANCE Ell fit HI i�l N URANCE AS IDENTIFIEDBELOW HAS BEEN ISSUED, IS IN FORCE, AND CONVEYS ALL THE RION" AND PRIVILEGES AFFORDED UNDER THE POLICY. PRODUOrl" UP&310 3 9 3 - 9 4 7 7 COMPANY WHITE & COMPANY INSURANCE INC (310) 393-9477 PENN AMERICA F0 BOX 70 %BLISS & GLENNOu_,-&., SANTA MONICA CA 90406-0070 P 0 BOX 3638 TORRANCE CA 90510 WIT-O" IR 4 t A ZA CTA 0 - 5 rIlURLD LOAN NUMUR POLICY NUIAKA ZACK TOO / BEACH CABANA I PAC6023575 MIKE ALI �06 AXIMAMN DAMcaNrrvuDum19105 BEACH CREST LN OC Q�_9�4/97 ..L04198 m IF CMECKED HUNTINGTON BEACH CA 92646 TM AaPLAM PROM RVIDEWA VAUD, 21579 PACIFIC COAST HIGHWAY 21351 PACIFIC COAST HIGHWAY M 0JJtt : If- ON•9.6 #_-.2 AMOUNT OF MUMIM calmicill!" LOC #1 - BUSINESS PERSONAL PROVERTTY-- F_TR_i fid'E—V&-K—M $100,000 $lt000 SPECIAL,FORM - REPLACEMENT COST LOC #2 - BUSINESS PERSONAL PROPERTY - FIRE ECE V&MM $ 75,000 $1,000 SPECIAL FORM - REPLACEMENT COST glow. OR OWN M10M. .0 WE *10 DAY NOTICE OF CANCELLATION FOR NON-PAYMENT AGREE THAT ALL REQUIRED NOTICES ARE THF, RESPONSIBILITY OF THE "COMPAP,`ES AFFORDING COVERAGES". THE AGEMT AND/OR BROKER WHETHER AN AUTHORIZED REPRESENTATIVE OR NOT, BEARS NO RESPONSIBILITY FOR ANY NOTICE AW. . Q.... THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW ln_ DAYS WRITTEN NOTICE. AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS -OR AS REQUIRED BY LAW. 0 wwx NN, ;@ NAME AND ADDRIEU MORTGAG919 x ADOMONAL IN80W O _L_" PAYER CITY OF HUNTINGTOB BEACH LOAN 2000 MAIN ST. P.O. BOX 711 AMORMtO RURRUWAMI HUNTINGTON BEACH CA 92648 DENNIS WHITE Tw (A) 00T.1_C-rC_nTC`nT TPM i(4000.3:51W L CITY OF HUNTINGTON BEACH 2000 MAIN STREET RISK MANAGEMENT DIVISION CALIFORNIA 92648 In order to comply with City Council Resolution No. 6277, you are required to provide proof of Workers' Compensation insurance. If you have no employees, this form must be signed and returned to the Risk Management Division, 2000 Main Street, Huntington Beach, CA 92648. DECLARATION OF NON -EMPLOYER STATUS I certify that in the performance of the activity or work for which this permit is issued, I shall not employ any person in any manner so as to become subject to California Workers' Compensation insurance requirements. I authorize the City of Huntington Beach to immediately and retroactively revoke the license or permit issued under this declaration if I hire any employee or become subject to the provisions of the laws requiring Workers' Compensation insurance. NAME AND ADDRESS OF COMPANY OR APPLICANT )'rX'e 6LZ TITLE [3 \k 9 V( .s- L-A - LOCATION SIGNED( - TELEPHONE NUMBER (7^6 Z ,� �Pz DATE 6 ^ 1 DRUG USE IS AB I,1997 Date: J , Transmittal To: Shari Friedenrich, City Treasurer From: Connie Brockway, City Clerk Subject: Request For Council Action Dated June 16, 1997, Item E-28, Regarding Agreement With Mike Ali For State Beach Concessions The Request for Council Action (RCA) that went to council does not refer to Certificate of Deposit and we are not certain why they are included. See the second page of the RCA that is highlighted, as this may be what this is about. I have received Certificate of Deposit With First Bank & Trust (Previously Huntington National Bank Previously Listed As Owned By Cecil Wheat). Re: Deposit For Security For The City Of Huntington Beach In The Amount Of $10,000 as verified with certificates provided by Mr. Ali for State Beach Concessions. Date By: • 11 JUNE 1997 CITY OF HUNTINGTON BEACH TREASURERS OFFICE RE: DEPOSIT FOR CITY OF HB FROM MIKE ALI TO WHOM IT MAY CONCERN; THIS IS TO VERIFY THAT MIKE ALI HAS HAD A CERTIFICATE OF DEPOSIT WITH FIRST BANK & TRUST (PREVIOUSLY HUNTINGTON NATIONAL BANK) SINCE 1991. THIS WAS PREVIOUSLY LISTED AS OWNED BY CECIL WHEAT. WITH THE NEW CERTIFICATE OF DEPOSIT PURCHASED THIS DATE, ON DEPOSIT FOR SECURITY FOR THE CITY OF HUNTINGTON BEACH IS THE AMOUNT OF $10,000.00, AS VERIFIED WITH CERTIFICATES PROVIDED BY MR ALI. IF YOU WISH FURTHER INFORMATION, PLEASE TELEPHONE THE NUMBER LISTED BELOW. THANK YOU. CHERRIE WADINSKI BRANCH MANAGER First Bank & Trust / 501 Main Street / Huntington Beach, California 92648 / 714-536-0096 / Fax 714-536-1556 • Member FDIC 16 JULY 1997 CITY OF HUNTINGTON BEACH ATTN: JENNIFER McGRATH 2000 MAIN ST HUNTINGTON BEACH, CA 92649 DEAR MS McGRATH, PER OUR CONVERSATION THIS DATE, THIS LETTER IS TO CONFIRM THE EXISTANCE OF TWO CERTIFICATES OF DEPOSIT IN THE NAME OF MIKE ALI DBA ZACK TOO FOR THE CITY OF HUNTINGTON BEACH AS FOLLOWS: ACCT. #404660001397 WITH HOLD ON $7,935.00 ACCT. #404660001398 WITH HOLD ON $2,065.00 THE TOTAL ON HOLD FOR CITY OF HUNTINGTON BEACH IS $10,000.00. AS YOU CAN SEE BY THE ENCLOSED PRINTOUTS OF THE ACCOUNTS, AND ALSO BY THE ACTUAL CERTIFICATES HELD BY THE TREASURERS OFFICE, THE FUNDS ARE ON HOLD FOR THE CITY AND WILL NOT BE RELEASED UNLESS AUTHORIZED BY THE CITY OF HUNTINGTON BEACH. PLEASE SIGN AND RETURN, IN THE ENVELOPE ENCLOSED, THE COPY OF THIS LETTER I HAVE PROVIDED FOR YOU AS ACKNOWLEGMENT OF THIS CONTRACT BETWEEN THE CITY AND MR. ALI. RESPECTFULLY, (mac, L' L4L CHERRIE WADINSKI BRANCH MANAGER G JENNIFER McGRATH First Bank & Trust / 501 Main Street / Huntington Beach, California 92648 / 714.536-0096 / Fax 714-536-1556 • Member FDIC 16 JULY 1997 CITY OF HUNTINGTON BEACH ATTN: JENNIFER McGRATH 2000 MAIN ST HUNTINGTON BEACH, CA 92649 DEAR MS McGRATH, PER OUR CONVERSATION THIS DATE, THIS LETTER IS TO CONFIRM THE EXISTANCE OF TWO CERTIFICATES OF DEPOSIT IN THE NAME OF MIKE ALI DBA ZACK TOO FOR THE CITY OF HUNTINGTON BEACH AS FOLLOWS: ACCT. #404660001397 WITH HOLD ON $7,935.00 ACCT. #404660001398 WITH HOLD ON $2,065.00 THE TOTAL ON HOLD FOR CITY OF HUNTINGTON BEACH IS $10,000.00. AS YOU CAN SEE BY THE ENCLOSED PRINTOUTS OF THE ACCOUNTS, AND ALSO BY THE ACTUAL CERTIFICATES HELD BY THE TREASURERS OFFICE, THE FUNDS ARE ON HOLD FOR THE CITY AND WILL NOT BE RELEASED UNLESS AUTHORIZED BY THE CITY OF HUNTINGTON BEACH. PLEASE SIGN AND RETURN, IN THE ENVELOPE ENCLOSED, THE COPY OF THIS LETTER I HAVE PROVIDED FOR YOU AS ACKNOWLEGMENT OF THIS CONTRACT BETWEEN THE CITY AND MR. ALI. RESPECTFULLY, c � CHERRIE WADINSKI BRANCH MANAGER i slip Ly� . - . . First Bank & Trust / 501 Main Street / Huntington Beach, California 92648 / 714-536-0096 1 Fax 714-536-1556 file Notes Office of the City Clerk Huntington Beach, California ---,TAW • • CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION HUNTINGTON BEACH TO: Ron Hagan Community Services Director FROM: Connie BrockwayCZ5 City Clerk DATE: June 26, 1997 SUBJECT: Agreement With Mike Ali For State Beach Concessions Please advise the City Clerk's Office if it is appropriate to provide Mr. Ali with his agreement for State Beach Concessions prior to the time the City Treasurer receives the deposit for Security from First Bank & Trust. The City Treasurer's Office has informed us they have not yet received but are working with the bank on this issue. Thank You. CC: City Attorney, Gail Hutton VI Page 12 - Council/AgAgenda - 06/16/97 . (12) E-27. (City Council) Outside Leaal Counsel - PERS (Public Emplovee Retirement Svstem Litigation - Agreement Between City & Whitmore. Johnson & Bolanos for Legal Services & Approval Of Amendment To Insurance Requirements - Approve and authorize execution by the Mayor and City Clerk of an Agreement between the City of Huntington Beach and Whitmore, Johnson & Bolanos, a Law Corporation, For Legal Services to serve as co -counsel with the firm of Liebert, Cassidy and Frierson on the litigation initiated by the City against the Public Employees Retirement System; and approve the Liability Policy 10-day notice cancellation clause and the $25,000 deductible on Professional Services, thereby waiving the 30-day notice of cancellation requirement and the "no deductible" insurance clause _Submitted by the Deputy City Administrator - Administrative Services Director [Approved 6-0 (Harman: Absent)] E-28. LCitY CounciAlConcession Contract Between Citv & Michael Ali For Five Beach Concessions On Bolsa Chica State Beach & Approval Of Amendment To Insurance Requirements - Approve the Concession Contract between the City of Huntington Beach and Michael Ali for Bolsa Chica State Beach to sublease and operate the five beach concessions located on Bolsa Chica State Beach which the City leases from the State of California Parks and Recreation Department; accept a 10 day notice of cancellation of insurance due to non-payment; and direct the Mayor and City Clerk to execute said agreement. Submitted by the Community Services Director (Term of Agreement June 17, 1997 to November 30, 1999) [Approved 6-0 (Harman: Absent)] F. Administrative Items F-1. (Citv_Council) (Deferred From June 2. 19971 Approval In Concept Of Huntinaton Beac Collaborative (Network Of Service Providers Created To Heighten Community Awareness, Share Information, And Interactive Participation)- Request For Proposals For Professional Services Communication from the Economic Development Director recommending that Council approve in concept the initiation of a Huntington Beach Collaborative, a network of service providers. Recommended Motion: Approve in concept the creation of a Huntington Beach Collaborative, a network of service providers to increase community awareness, share information, and assist in improving the quality of life in the Huntington Beach community; and authorize staff to issue a Request For Proposals (RFP) for professional services to assist the Collaborative in establishing its mission and vision, organize various task forces (clusters), maintain membership lists, and provide for general administrative support for one year. [Approved 6-0 (Harman: Absent)] (12) Initial, date, and return to: L Assignment Form Mae Office of the City Clerk E _ �P ' / 1 6 l9 7 IToday's Date 3- .ate" :251 "� Research Notes: To File Notes Office of the City Clerk Huntington Beach, California f---cw 6//�, 157 Date V^ =—,�i Signed �U` Z' Cam. ..7 Date Signed RedIrm 4S 65 SEND PARTS I AND 3 WITH CARBONS INTACT. Poly Pak (50 sefs) 4P465 PART 3 WILL BE RETURNED WITH REPLY. File Notes Office of the City Clerk Huntington Beach, CaCtfornia To Date G xe- F'U:'ASE NIVIV YO -> Signed k'. Date Signed Redifinn 4S 465 SEND PARTS I AND 3 WITH CARBONS INTACT. Poly Pak(50 soh) 0465 PART 3 WILL BE RETURNED WITH REPLY. • Research Request Form Office of the City Clerk Today's Date _ ?0 _ 9 7 Date research needed _ 9 Research requested by: (Name) T lephone or extension ( /) Department ( ) Citizd Received by: Do copies need to be certified? ( ) Yes No Describe research requested, in detail please: / �c �0 /9 7 � J Research Notes: In\record mgr\research.doc . Aj r a � File Notes Office of the City CCerk Huntington Beach, CaCfornia /,,;?(Oh7 lam_ Z�, c��-,a`_ �-,/-0./,z fie. --4:) cus-es_s vc V Aee, i-i'.�,r�j- L.-,(-' &els-Slle. ztitAa,�-- ssi f N ml