The URL can be used to link to this page

Home My WebLink AboutNATIONAL EQUESTRIAN CENTERS INC (original lease Better Built Enterprises) - 1982-10-131(Z3 *9C1jov5b CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 7/21/2014 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Janeen Laudenback, Community Services Director Ken Domer, Assistant City Manager Dept. ID ED 14-26 Page 1 0 2 Meeting Date: 7/21 /2014 -7-0 SUBJECT: Approve and authorize execution of the Landlord's Acknowledgement and Subordination of the Lease with National Equestrian Centers, Inc. (NEC) for the Huntington Central Park Equestrian Center Statement of Issue: The City is in a lease agreement with National Equestrian Centers Inc. for the operation and maintenance of the Huntington Central Park Equestrian Center. The Equestrian Center has applied for and received a Small Business Administration (SBA) Loan. The City Council is requested to approve a Subordination in support of this SBA Loan. Financial Impact: No fiscal impact to the City. Recommended Action: A) Approve the "Landlord's Acknowledgment and Subordination" for the Equestrian Centers, Inc.; and, B) Authorize the City Manager to sign all related documents. Alternative Action(s): Do not approve the subordination and direct staff as necessary. Analysis: The City has a lease with National Equestrian Centers (NEC) for the operation and maintenance of the Huntington Beach Equestrian Center. The Equestrian Center was developed by the NEC in 1982. The lease is valid through February 2023 with a ten year option to extend the lease through February 2033. The NEC has been upgrading the property over the last few years and continues to maintain the Equestrian Center in excellent condition and is highly recognized in the region. The SBA Loan obtained will be for improvements to the Equestrian Center front landscape, event area, and arena improvements in furtherance of enhancing the equestrian experience and site aesthetics. The Subordination required by the SBA loan is administrative in purpose and provides for the City (Landlord) to notify the SBA as the lender, in writing, sixty -days before commencing any proceedings or taking any action to terminate the lease or to enforce its remedies there under. The Subordination agrees that National Equestrian Centers, Inc. property which is located on the leased property shall remain with the NEA and any City lien would be subordinated to the lender. HB -225- Item 11. - 1 Dept. ID ED 14-26 Page 2 of 2 Meeting Date: 7/21/2014 It is important to note that this Subordination agreement is not for any City loan or financial interest, which is typical of standard subordination agreements, but is purely for notification purposes to the SBA regarding the City's lease agreement with NEA. As such there is not fiscal impact now or in the future regarding this action. Environmental Status: Not applicable. Strategic Plan Goal: Enhance Economic Development Attachment(s): Landlord's Acknowledgment and Subordination Item 11. - 2 HB -226- Landlord's Acknowledgment and Subordination As of July _ d , 2014, the undersigned, City of Huntington Beach, Landlord (City), under the terms of a Lease, a copy of which is attached hereto ("Lease"), acknowledges that, National Equestrian Centers, Inc. , Borrower (Concessionaire), has or will receive from California United Bank ("Lender") certain credit accommodations. Notice: Landlord agrees to notify Lender in writing (at the address specified below or at any other address given by Lender in writing to Landlord) not less than sixty (60) days before commencing any proceedings or otherwise taking any action to terminate the Lease or to enforce its remedies thereunder. Subordination: Landlord agrees that all of Borrower's machinery, equipment, inventory, fixtures or other property ("Borrower's Property") which may be located on the leased premises shall remain the personal property of the Borrower and shall not become a fixture or part of the realty notwithstanding anything that may be implied by law from the mode of attachment, installation or otherwise. Landlord further agrees that any lien or security interest Landlord may claim against any of Borrower's Property is subordinated to any lien or security interest now or subsequently held by Lender in any of such property. Limited Right of Entry: Landlord acknowledges that, notwithstanding any noncompliance with or default by Borrower under the Lease, the Lender shall have the limited right to enter into and remain in possession of the leased premises for a reasonable period not to exceed ninety (90) consecutive days for the purpose of enforcing its liens and security interests in Borrower's Property, including the sale and/or detachment and/or removal from the leased premises of such property. Lender shall pay to Landlord, on a weekly basis in advance (pro rata, depending on the number of days Lender is in possession), the current monthly rent accruing under the Lease during the period while Lender is in possession of the leased premises. Lender shall have no responsibility whatsoever for any back rent or other obligations which have accrued under the Lease prior to Lender's entry into possession under this paragraph. No Assumption: Landlord further agrees that Lender's rights have been given for security purposes only, and that unless and until Lender enters into the leased premises andlor agrees expressly and in writing to do so, Lender shall have no obligations whatsoever under the Lease. ADDRESS OF LEASED PREMISES: 18381 Goldenwest St., Huntington Beach, CA 92648 By: - ACKNOWLEDGMENT OF Borrower: National Equestrian Services, Inc. By: C - Mary L. Be e Its: President / Secretary Landlord: City of Huntington Beach California United Bank 2400 East Katella Avenue Suite 200 Anaheim, CA 92806 Counterparts: This Agreement may be executed in any number of counterparts, each of which will be deemed an original, and all of which together constitute one and the same instrument. Authorlty to Execute Agreement. The persons signing below certify that they have bty authorized to execute this Agreement on behalf of their respective party RD AS TO FORM MI-00171 (8-96) TH, City mey ig rotta Deputy City Attorney DATE: CITY OF HUNTINGTON BEACH 2000 MAIN STREET July 11, 2002 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK TO: National Equestrian Centers, Inc. Name See Remarks Below Street City, State, Zip CALIFORNIA 92648 ATTENTION: President & Treasurer DEPARTMENT: REGARDING: Amendment to Concession Agreement for HCP Equestrian Ctr. See Attached Action Agenda Item F-5 Date of Approval 7 / 1 / 02 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. dmz Remarks: 18381 Golden West St. & 315 W. 3rd St. Huntington Beach, CA Santa Ana, CA Connie Brockway 92648 92701 City Clerk Attachments: Action Agenda Page x Agreement x Bonds _ RCA Deed CC: R. Hagan Com' Sery x x Name Department RCA Name Name Name C. Mendoza Name Department RCA Department RCA Department RCA Risk Mgmt x Department RCA Agreement Agreement Agreement Agreement Insurance Other X Insurance Insurance Insurance Insurance x Insurance x Other Other Other Other (Telephone: 714-536.5227 ) CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: July 15, 2002 TO: OC Assessor's Office ATTENTION: Liz Canzano Name 12 Civic Center Plaza DEPARTMENT: Special Projects Street Santa Ana, CA 92702 REGARDING: Possessory Interest City, State, Zip See Attached Action Agenda Item F-5 Date of Approval 7/ l/02 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page x Agreement x Bonds Insurance x RCA Deed Other CC: Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA. Agreement Insurance Other Name Department RCA Insurance ( Telephone: 714-536-5227 ) W__ R .)Wrf, (vro,wv- Council/Agency Meeting Held: 7-/-02 Deferred/Continued to: rovo d ❑ Conditionally Approved El Denied - ep City Clerk's Signa ure Council Meeting Date: July 1, 2002 Department ID Number: CS02-013 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION o z � SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: c RAY SILVER, City Administratoro2e) = r, PREPARED BY: RON HAGAN, Director, Community Services SUBJECT: Ul - APPROVE AMENDMENT TO CONCESSION AGREEMENTcWIVH NATIONAL EQUESTRIAN CENTERS, INC. FOR THE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachments) Statement of Issue: Per City Council direction, the city is amending the concession agreement with National Equestrian Centers, Inc. for the operation of the Huntington Central Park Equestrian Center to address the use of city water and other issues relating to the Equestrian Center. Funding Source: N/A; equestrian center lease provides revenue to the General Fund. Recommended Action: Approve the Amendment to Concession Agreement with National Equestrian Centers, Inc. for the Huntington Central Park Equestrian Center, and authorize the Mayor and City Clerk to execute same. Alternative Action(s): Do not approve an amendment to the concession agreement for HCP Equestrian Center, and give staff direction on changes to the terms and/or conditions of the proposed amendment. Analysis: The city entered into a concession agreement in 1982 with National Equestrian Centers, Inc. for the development and operation of an equestrian center in Huntington Central Park. Since that time, there have been several changes in the law pertaining to such issues as drainage, runoff, disposal of waste, water quality, etc. In addition, the services that the public is desirous of have changed since 1982 with regard to uses at the equestrian center. In 2001, City Council directed staff to begin negotiations with the equestrian center concessionaire to amend the original lease so that the equestrian center paid for water consumption instead of the city providing free water to the center, which was a condition of the original agreement. Staff has completed those negotiations and the City Attorney's Office REQUEST FOR COUNCIL ACTION MEETING DATE: July 1, 2002 DEPARTMENT ID NUMBER: CS02-013 has prepared an amendment to the concession agreement that clarifies language from the original lease and addresses all of the above issues (Attachment 1). Following is a summary of the changes to the concession agreement that the amendment will implement: 1. Overflow parking for horse shows and events at the equestrian center will now take place at the new HCP Sports Complex parking lot as approved by the Director of Community Services, rather than at the former Marion property at the corner of Ellis and Goldenwest. The former Marion property, if available, may still be used for temporary stalls until it is developed for park purposes or added to the equestrian leasehold by amendment. 2. Maintenance obligations have been further defined and maintenance standards set so as to better insure clean, attractive, and well -maintained premises. 3. There are requirements for equestrian center staff to wear identification badges for security and customer service purposes. 4. All rates for public services and merchandise will need to be approved by the city; however, � upon the initial establishment of prices for all merchandise and services, the concessionaire will be allowed to increase those rates each year in an amount not to exceed the Anaheim/Long Beach Annual Consumer Price Index. Any request for price increases above this amount can only be approved by the City Council, except that the Director of Community Services may approve an additional price increase to the extent that direct cost of operations can be documented that they have increased over the Anaheim/Long Beach Annual Consumer Price Index. In other words, if the cost of hay, for example, suddenly skyrockets due to a hay shortage, and the equestrian center can provide documented proof of their actual costs exceeding the consumer price index, the Director of Community Services could approve a price increase to the public equal to the direct increase in cost. However, if the equestrian center wished to increase the fee greater than the direct cost, it would require City Council approval. (Attachment 2 is the current price list for the equestrian center services.) 5. The amendment requires the equestrian center to pay all charges for utilities including fuel, gas, electricity, telephone, and water. 6. Ten years are being added to the existing term of the lease. This is being done in order to create a lease that is financeable so that the equestrian center can make improvements required by its conditional use permit. 7. The city will receive ten percent of gross receipts from all private parties. The city will continue to receive two percent of receipts from retail income and four percent of gross receipts from boarding. The amendment further defines the term "gross receipts". G:\RCA\2002\02-013 Amendment to Equestrian Center Lease.doc -2- 6/21 /2002 11:05 AM REQUEST FOR COUNCIL ACTION MEETING DATE: July 1, 2002 DEPARTMENT ID NUMBER: CS02-013 8. The amendment updates such items as late payment penalties; hold harmless language; worker's compensation insurance requirements; and, public liability insurance requirements. 9. Finally, the amendment increases the amount of the performance bond and includes language requiring the concessionaire to comply with the city's Coca-Cola exclusivity agreement. In summary, staff feels that the negotiations for the amendment successfully implement the Council -directed actions, and provide for a lease that will insure quality operations at the HCP Equestrian Center for the next twenty years. There has been some discussion between the parties regarding changing the boundary lines of the equestrian center. The issue would require a change in the HCP Master Plan and, possibly, a Charter Section 612 vote, so staff is recommending approval of this amendment and future exploration of a boundary change. Environmental Status: All environmental requirements were met with the processing of the equestrian center's conditional use permit. Attachment(s): I 2 RCA Author: RH:cr Amendment to Concession Agreement with National Equestrian Centers, Inc. National Equestrian Centers, Inc. Price List G:\RCA\2002\02-013 Amendment to Equestrian Center Lease.doc -3- 6/21 /2002 11:05 AM ATTACHMENT #1 AMENDMENT TO CONCESSION AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND NATIONAL EQUESTRIAN CENTERS, INC. FOR THE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER Recitals WHEREAS, on October 25, 1982, this Agreement was entered into between the CITY of Huntington Beach ("CITY") and Better Built Enterprises, Inc. On March 6, 1989, an assignment was approved by the Huntington Beach CITY Council assigning all rights and title to the Agreement to National Equestrian Centers, Inc. (hereinafter "CONCESSIONAIRE"). On November 16, 1992, this Agreement was amended to assist the CONCESSIONAIRE in obtaining financing. CONCESSIONAIRE and CITY now desire to amend this Agreement to clarify the rights and responsibilities of the parties. NOW, THEREFORE, the parties covenant and agree as follows: SECTION II, subsection A2 is amended to read as follows: 2. Horse Rental Service. At least 10 horses must be available for rental. SECTION IV, subsection D is amended to read: D. Employees — Affirmative Action: CONCESSIONAIRE shall provide personnel whether by contract or employment relationship, with appropriate qualifications and experience, and in sufficient numbers to provide all services appropriate for the concession granted. An instructor, capable of teaching Western and an instructor capable of teaching English riding styles will be members of the staff and will be available for instruction during days and hours deemed acceptable to the Director. All employees of CONCESSIONAIRE shall be satisfactory to the Director as to their personal contact, honesty, courtesy, efficiency, training, health, personal appearance, attitude toward the public and willingness to cooperate with Department employees. CONCESSIONAIRE shall not 02agice/eyuesu'ia11 amend/0/21/02 employ any person who shall use improper language, act in a loud or boisterous manner, use narcotics unless prescribed by a doctor or mistreat any animals. The Director shall have the right to observe and inspect employees at any time, and, in the event an employee is not satisfactory as herein defined, the Director may direct CONCESSIONAIRE to correct the cause of said dissatisfaction or to remove him from the premises within a reasonable time after written notice is received by CONCESSIONAIRE. CONCESSIONAIRE shall provide the Director with certificates on each employee indicating freedom from communicable tuberculosis required by Section 5163 of the Public Resources Code. CONCESSIONAIRE shall agree and obligate itself not to discriminate during the performance of this Agreement against any employee or applicant for employment because of employee's or applicant's race, religion, national origin, ancestry, sex, age or physical handicaps. SECTION IV, subsection A is amended to read: A. Cleanliness: CONCESSIONAIRE shall keep the premises clean and sanitary at all times. No offensive or refuse matter, nor any substance constituting an unnecessary, unreasonable or unlawful fire hazard, or material detrimental to the public health, shall be permitted or remain thereon, and CONCESSIONAIRE shall prevent any such matter or material from being or accumulating upon said premises. CONCESSIONAIRE shall see that all garbage or refuse is collected as often as necessary and in no case less than twice a week and shall pay any charges which may be made for the removal of refuse or garbage. He shall furnish all equipment and materials necessary therefor, including trash receptacles of a size, type and number approved by CITY for use by public. CONCESSIONAIRE shall provide at his own expense and with the Director's approval, an enclosed area concealing the trash 02acrce/equestriall amend/6/21/02 2 storage from public view. He shall empty trash receptacles into the trash storage area as often as necessary. In addition to the requirements set forth above, CONCESSIONAIRE shall remove debris and broken glass from the parking lot, and clean all manure from the premises on a daily basis. CONCESSIONAIRE will also clean all stalls and paddocks on a daily basis, including the removal of all manure. Manure will be kept in a manure compound, dumpster trash container or similar device which shall be located so as to prevent offensive odors and insects from bothering patrons. Manure shall be removed from the premises at least three times each week. Restrooms shall also be cleaned daily. If an adult fly population problem is created on premises or in the surrounding community, CONCESSIONAIRE shall, under the guidance of appropriate agencies, institute a contact spray program. If CONCESSIONAIRE fails to perform the action necessary to comply with these provisions, the Director may immediately exercise option "d" under default provisions (item X). 4. SECTION IV, subsection I is amended to read: I. Maintenance of Premises CONCESSIONAIRE shall be required to perform all exterior and interior maintenance on the premises, including but not limited to those maintenance obligations as set forth in CONCESSIONAIRE's conditional use permit, throughout the duration of the Agreement. The Director may direct that certain maintenance or repairs be performed where such work is necessary to protect the premises or to provide clean, attractive and well maintained premises. If CONCESSIONAIRE fails to perform any of the above duties, the Director may, after giving ten (10) days written notice by certified mail to correct, exercise option "D" under default provisions (item X) of this Agreement. 5. SECTION IV, subsection L is amended to read: L. Prices: Base prices for all rates for services and merchandise charged by CONCESSIONAIRE are as set forth in Exhibit A to this Agreement. CONCESSIONAIRE may, at its own option, increase 02a,ree/eyuesman amend/6/21/02 prices no higher than the Anaheim/Long Beach annual CPI. Variations from the approved price list exceeding the Anaheim/Long Beach annual CPI will be permitted only with the prior approval of CITY, except the Director of Community Services may approve additional price increases to the extent that direct costs of operations of the Huntington Central Park Equestrian Center exceed the annual CPI upon submission of documented proof of said direct costs. Section II, A of this Agreement requires CONCESSIONAIRE to make a Training Ring available for public use and also gives CONCESSIONAIRE the option of restricting the use of the Show Arena to shows and related uses. CONCESSIONAIRE may establish fees for the individual or group use of either or both of these facilities and this list shall be forwarded to CITY for approval. These are not entry fees but are fees for individual or group use of the facilities. Once established, these fees may not be waived for any individual or group unless approved by CITY. CONCESSIONAIRE is therefore advised that if it wishes any individuals or groups to be exempt from these fees, CONCESSIONAIRE should submit to CITY for approval a criteria for the waiving of fees with justification or reasoning thereof. CONCESSIONAIRE shall post signs advertising the prices approved by CITY. The signs shall not be of a gaudy or offensive nature, and the final design shall be subject to approval by the Director. The signs shall be subject to the provisions of item IV-M of this Agreement. SECTION IV, subsection O is amended to read: O. Use of Areas CONCESSIONAIRE shall not interfere with the public's enjoyment and use of the premises or surrounding public property for the purposes of which they were intended. CONCESSIONAIRE shall not use the premises for any purpose which is not essential to the licensed operations, except it may permit weddings and private parties on the premises. However, any event which includes the service of alcohol must follow the procedures as set forth in Huntington Beach Municipal Code regulating specific events and any amendments thereto. 02agree/cyucsUian amend/0/21/02 4 7. SECTION IV, subsection P is amended to read: P. Utilities CONCESSIONAIRE shall pay all charges for fuel, gas, electricity and telephone service necessary to carry on the concession operations. The telephone number shall be .placed in the name of the facility and shall not be transferable to any other location. CITY shall provide a water meter in the main line feed to the premises. CONCESSIONAIRE shall provide and incur all costs of all utility requirements, including all water rates, fees and charges within the premises. CONCESSIONAIRE is permitted to allocate the direct costs of water services to tenants and other users of the Huntington Central Park Equestrian Center. 8. SECTION IV, subsection T is added to read as follows: T. Staff Identification: All staff directly employed by CONCESSIONAIRE, including but not limited to, maintenance, clerical, administrative, and other ongoing, onsite staff, shall wear a staff identification card, badge, or shirt, which is visible at all times to any party on the premises of Huntington Central Park Equestrian Center. The identification card, badge or shirt shall clearly state the staff member's name and the CONCESSIONAIRE's name. 9. SECTION IV, subsection U is added to read as follows: U. Use of Huntington Central Park Sports Complex CONCESSIONAIRE may have non-exclusive use of the 850-space parking lot located at the Huntington Central Park Sports Complex as approved by the Director of Community Services in writing. 10. SECTION V is amended to read as follows: V. Term 02agrce/equcsu_ia1 amend/6/21/02 5 The term of this Agreement shall commence July 1, 2002 , and shall terminate February 2, 2023, with an option to extend the term to February 2, 2033, at the option of CONCESSIONAIRE, if CONCESSIONAIRE is in compliance with all provisions of the Agreement as determined by the CITY, unless previously terminated in accordance with other provisions of this Agreement, such as default on the part of the CONCESSIONAIRE. 11. SECTION VI is amended to read as follows: VL Rental And Renegotiation CONCESSIONAIRE shall pay to CITY the following monthly rental as consideration for the rights and privileges contained in this Agreement 4% of Gross Receipts from boarding and rentals. 10% of Gross Receipts from all private party and horse show income. 2% of Gross Receipts from retail income. CONCESSIONAIRE shall pay to CITY a minimum of seventy-five percent (75%) of the previous year's actual percentage rent in the event the above payments total less than said minimum. Monthly rental shall be due and payable by the fifteenth day of each month for the operation for the preceding month to the CITY at the City Treasurer's Office, P. O. Box 711, Huntington Beach, CA 92648, or at such other place or places as the CITY may from time -to -time designate by written notice delivered to CONCESSIONAIRE. Included in the boarding category are gross receipts from the boarding, feed and care of horses. Included in the private party and horse show category are gross receipts from the rental of the facilities for private parties and horse shows, excluding entry fees for horse shows paid by contestants to enter the shows. Included in the retail sales category are the gross receipts from all services not mentioned above. This includes, but is not limited to, the rental of horses and tack, hayrides, the fees received for individual and group instruction, sales of the clubhouse and restaurant, sales of the western and saddle goods store, charges for the veterinary and farrier service, charges for saddle and tack repair, and vending machines. Rental shall be based on a 02a once/eyucsu'ian amend/6/21/02 6 percentage of gross receipts received by CONCESSIONAIRE even if some or all of the services in any particular category are sublicensed. The term Gross Receipts is defined to mean the total amount of the sale price of all sales, or the total amount charged or received for the performance of any act or service whether such act or service is done as a part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit is allowed, including all receipts, cash, credits and property of any kind or nature. However, Gross Receipts does not include cash discounts allowed or taken on sales, nor the amount of any sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser and paid by the CONCESSIONAIRE. In the event merchandise is taken in trade, Gross Receipts means the full price of the merchandise sold, less the fair market trade-in allowance, less retail sales taxes. When the traded merchandise is sold, Gross Receipts means the actual selling price, less retail sales taxes. In the case of vending machines, Gross Receipts shall be the total amount taken by the vending machines after sales and excise taxes. For the purpose of this Agreement, CONCESSIONAIRE's operating year shall be from January through December. Rental calculations including the annual guarantee shall be made from the first day of the operating year defined above. CONCESSIONAIRE shall transmit with its rental payment a Monthly Gross Receipts and Rent Report for the month for which rent is submitted. The Director shall provide form for this purpose, and the completed form shall include a statement of the Gross Receipts by source of sales, and such other information as the Director may properly require. The monthly gross receipts and rent report shall be addressed to: City of Huntington Beach Director of Administrative Services 2000 Main Street Huntington Beach, CA 92648 02agrcc/cyucst1'1a11 amend/6/21/02 A late charge of ten percent (10%) shall be applied to any outstanding balance after any payment hereunder is due but unpaid. In addition, if the rent is not received by the City Treasurer within twenty (20) calendar days after the end of the month for which rent is being paid, or the next business day if the twentieth day falls on a weekend or holiday, one and a half percent (1 %) interest per month shall be added for each month the rent is due but unpaid. With respect to any other payments required by CONCESSIONAIRE, one and a half percent (1 %%) interest per month shall be added for each month such payment hereunder is due but unpaid. 12. SECTION VIII is amended to read: A. Hold Harmless. CONCESSIONAIRE shall hold harmless, defend and indemnify CITY and its officers, agents and employees from any and all claims, demands, damages, actions and costs or expenses in connection therewith, that may arise out of the concession granted. CONCESSIONAIRE expressly waives any and all claims for compensation and releases and discharges CITY and its officers, agents and employees from any and all demands, claims, actions and causes of actions arising from any defect, deficiency or impairment of the water supply system, drainage system, heating system, gas mains, electrical apparatus or wire furnished for the premises which may occur from time to time from any cause or for any loss resulting from water, tornado, civil commotion, riot, windstorm and earthquake. B. Workers' Compensation And Employers' Liability Insurance CONCESSIONAIRE acknowledges awareness of Section 3700 et seq. of the California Labor Code, which requires every employer to be insured against liability for workers' compensation. CONCESSIONAIRE covenants that it shall comply with such provisions prior to the commencement of this Agreement. CONCESSIONAIRE shall obtain and furnish to CITY workers' compensation and employers' liability insurance in amounts not less than the State statutory limits. 02agrce/eyuc;trian amend/6/21/02 8 CONCESSIONAIRE shall require all sublessees and contractors to provide such workers' compensation and employers' liability insurance for all of the sublessees' and contractors' employees. CONCESSIONAIRE shall furnish to CITY a certificate of waiver of subrogation under the terms of the workers' compensation and employers' liability insurance and CONCESSIONAIRE shall similarly require all sublessees and contractors to waive subrogation. C. General Public Liability Insurance In addition to the workers' compensation and employers' liability insurance and CONCESSIONAIRE's covenant to defend, hold harmless and indemnify CITY, CONCESSIONAIRE shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage against any and all claims arising out of or in connection with the Premises. This policy shall indemnify CONCESSIONAIRE, its officers, employees and agents, while acting within the scope of their duties, against any and all claims arising out of or in connection with the Premises, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of Two Million Dollars ($2,000,000.00) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than Two Million Dollars ($2,000,000.00) for the Premises. This policy shall name CITY, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Agreement shall be deemed excess coverage and that CONCESSIONAIRE's insurance shall be primary. 02ag1'ec/cqucst1-ia11 amend/6/21/02 9 Under no circumstances shall said above -mentioned insurance contain a self -insured retention, or a "deductible" or any other similar form of limitation on the required coverage greater than $10,000.00. D. Property Insurance CONCESSIONAIRE shall provide before commencement of this Agreement and shall obtain and furnish to CITY, at CONCESSIONAIRE's sole cost and expense, property and fire insurance with extended coverage endorsements thereon, including vandalism and malicious mischief endorsements, by a company acceptable to CITY authorized to conduct, insurance business in California, in an amount insuring for the full insurable value of all improvements, trade fixtures, personal property whether or not owned or leased by CONCESSIONAIRE, and all trade inventory in or on the Premises against damage or destruction by fire, theft or the elements. This policy shall contain a full replacement cost endorsement naming CONCESSIONAIRE as the insured and shall not contain a coinsurance penalty provision. The policy shall also contain an endorsement naming CITY as an additional insured. The policy shall contain a special endorsement that such proceeds shall be used to repair, rebuild or replace any such improvements, trade fixtures, personal property whether or not owned or leased by CONCESSIONAIRE, and all trade inventory so damaged or destroyed; and if not so used to repair, rebuild or replace, such proceeds shall be paid to CITY (excluding therefrom any insurance proceeds for trade fixtures, personal property, whether or not owned or leased by CONCESSIONAIRE, and trade inventory). The proceeds of any such insurance payable to CITY may be used, in the sole discretion of CITY, for rebuilding or repair as necessary to restore the Premises or for any such other purpose(s) as CITY sees fit. This policy shall also contain the following endorsements: 02agree/equestrian amcnd/6/21/02 10 (a) The insurer shall not cancel or reduce the insured's coverage without (30) days prior written notice to CITY; (b) CITY shall not be responsible for premiums or assessments on the policy. A complete and signed certificate of insurance with all endorsements required by this Section shall be filed with CITY prior to the execution of this Agreement. At least thirty (30) days prior to the expiration or termination of any such policy, a signed and complete certificate of insurance showing that coverage has been renewed shall be filed with CITY. E. Increase in Amount of General Public Liability and Property Insurance Not more frequently than once every two (2) years, if, in the sole opinion of CITY, the amount and/or scope of general public liability insurance in Section VIII(C) above and/or property insurance coverage in Section VIII(D) above at that time is not adequate, CONCESSIONAIRE shall increase the insurance coverage as reasonably required by CITY. F. Certificates of Insurance; Additional Insured Endorsements Prior to commencement of this Agreement, CONCESSIONAIRE shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; these certificates shall: (a) provide the name and policy number of each carrier and policy; (b) shall state that the policy is currently in force; and (c) shall promise to provide that such policies shall not be canceled or modified without thirty (30) days' prior written notice of CITY; however ten (10) days' prior written notice in the event of cancellation for nonpayment of premium, which 10-day notice provision shall not apply to property insurance. 02agree/equestrian amend/6/21/02 I I CONCESSIONAIRE shall maintain the foregoing insurance coverages in force during the entire term of the Agreement or any renewals or extensions thereof or during any holdover period. The requirement for carrying the foregoing insurance coverages shall not derogate from CONCESSIONAIRE'S defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representatives shall at all times have the right to demand the original or a copy of any or all the policies of insurance. CONCESSIONAIRE shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. G. Insurance Hazards CONCESSIONAIRE shall not commit or permit the commission of any acts on the Premises nor use or permit the use of the Premises in any manner that will increase the existing rates for, or cause the cancellation of any liability, property, or other insurance policy for the Premises or required by this Lease. CONCESSIONAIRE shall, at its sole cost and expense, comply with all requirements of any insurance carrier providing any insurance policy for the Premises or required by the Agreement necessary for the continued maintenance of these policies at reasonable rates. H. Independent Contractors — Certificates of Insurance; Additional Insured Endorsements. CONCESSIONAIRE shall require evidence of a policy of general public liability coverage of any independent contractor that enter upon the premises. Said policy shall name CONCESSIONAIRE and CITY, its officers, elected or appointed officers, elected or appointed officials, employees, agents, as volunteers as additional insureds. 13. SECTION IX, subsection A is amended to read: A. Amount Of Bond: 02agrce/eques11'ian amend/6/21/02 12 $50,000.00 14. SECTION XII is amended to read: XIL BUSINESS RECORDS: CONCESSIONAIRE shall be required to maintain a method of accounting of all the receipts and disbursements in connection with the subject concession which shall correctly and accurately reflect the gross receipts and disbursements received or made by CONCESSIONAIRE from the operation of said concession. The method of accounting, including bank accounts, established for the subject concession shall be separate from the accounting system used for any other business operated by CONCESSIONAIRE or for recording CONCESSIONAIRE's personal financial affairs. Such method shall include the keeping of the following documents: Regular computer accounting records. 2. Computer journals and records, including any supporting and underlying documents such as vouchers, checks, tickets, bank statements, etc. State and federal income tax returns and sales tax returns and checks and other documents proving payment of sums shown. 4. Any other accounting records that CITY, in its sole discretion, deems necessary for proper reporting of receipts. All documents, books and accounting records shall be open for inspection and reinspection at any reasonable time during the term of this Agreement and for a reasonable period, not to exceed one year, thereafter. In addition, CITY may from time to time conduct an audit and reaudit of the books and business conducted by CONCESSIONAIRE and observe the operation of the business so that accuracy of the above records can be confirmed. If the report of gross sales made by CONCESSIONAIRE to CITY shall be found to be less than the amount of gross sales disclosed by such audit and observation, CONCESSIONAIRE shall pay CITY within 30 days after billing any additional rentals disclosed by 02agncdcqucstrian amend/6/21/02 1 3 such audit. If discrepancy exceeds two percent and no reasonable explanation is given for such discrepancy, CONCESSIONAIRE shall also pay the cost of the audit. CONCESSIONAIRE shall transmit a Profit and Loss Statement and a Balance Sheet for the concession operations, prepared in a form and by a company acceptable to the Director within 60 days of the close of each of CONCESSIONAIRE's fiscal or calendar years during the term of the Agreement. The Profit and Loss Statement shall set forth an expense account entitled "Compensation to Officers" or an account having some similar title. The amount shown opposite this item shall include all salaries or other compensation for services derived from the concession operations by CONCESSIONAIRE, members of its family, officers of CONCESSIONAIRE's corporation, directors, shareholders, any individuals owning stock indirectly and other persons employed by CONCESSIONAIRE to manage the operations or supervise CONCESSIONAIRE's employees. These salaries or other compensation shall not be indicated in any other expense category. All information obtained in connection with CITY's inspections of records or audits shall be received and maintained in confidence and shall not be disclosed to anyone not directly connection with the official business of CITY. 15. SECTION XIII, subsection G is added to read: G. Use Of Coca-Cola Products CONCESSIONAIRE shall comply with CITY's exclusivity agreement with the Coca- Cola Bottling Company of Southern California, ("Coca-Cola") by doing the following: only Coca-Cola fountain and bottling products shall be bought and sold in, on , or from the Premises for the term of the CITY's agreement with Coca-Cola. This includes all carbonated and non -carbonated, non-alcoholic beverages defined as soft drinks, juices, juice drinks, teas, isotonics, water and frozen beverages. Frozen beverages shall not include ice creams and frozen yogurts. CONCESSIONAIRE's failure to adhere to the Coca-Cola exclusivity clause shall constitute a Default of this Agreement. This exclusivity shall not apply to third -party rentals that bring their own drink products. 02a ice/cyuc;u'ian amend/6/21102 14 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their authorized offices the day, month and year first above written. NATIONAL EQUESTRIAN CENTER, INC By: "print name ITS: (circle one) Chairman/ residen ice President AND print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. ecretary -Treasurer �_ REVIEWED AND APPROVED: City AArimistrator CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor ATTEST: L�x� c� City Clerk J1-II-ot APPROVED AS TO F RM: 1 City Atto ey Diiector of Con(ofunity Services Please forward all correspondence by certified mail to: Mary Warren; President National Equestrian Centers, Inc. 18381 Golden West Street Huntington Beach, Ca 92648 And Willard V. Harris, Jr.; Treasurer National Equestrian Centers, Inc. 315 W. 3rd Street Santa Ana, Calif. 92701 02agree/equestrian amend/6/21/02 15 _ 06/24/02 MON 10:16 FAX 626 4455100 0 001 ACORD CERTIFICATE OF LIABILITY INSURANCE PRaouc2R THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Equilee insurence c ��y c�k ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 11 f� HOLDER. THIS CERTIFICATE DOES NOT A16VD, E ffEND OR P. O. Box 66103e ALTER THE COVERAGE AFFORDED BY THE POLICIES OF -LOW. Arcadia CA 9100 Nt� 6 �aa35 INSURERS AFFORDING CGVERAI92E INSUF a NHional Equestrian Ctrs, Inc. LIISURELL m ACE Indemnity Insurance Company Huntington Central Park Eq. Ct wsul aw. StOCammadon Fund 18381 Goldenwedt Street aLsuRER Ce lk Huntington Beach CA 92648 INSc,RM a i COVERAGES THEPOLICIESOFINSURANCEUSTEDBEI INH VEBEENISSUOMTHEINSUREDNAMEDASOVEFORTHEPOUCYPERIODINDICA7FDWOMTHSTANDING ANY REQUIREMENT', TERM OR CONdTION OVANY CONTRACTOR OTHER DOCUMENTIMTH RESPECT TO WHICH THIS CERnFICATEMAY BE MWED OR MAYPERTAIN,THEINSURANCEAFFORDEC'BYTHEPOUCIESOE5CRIBEDHEREINISSUBJECTTOALLTHI:TERMA EXCL USIONSANDCONOMONSOFSUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF INSURANCE POLIL NUSwBFR POIJOY EF'EFME POLICY it "ATION ATE IMINTIDAMn *9NMkALLIAEt.rY EACH OCCURRENCE AMON s3100 000 A x CamERmAL GFJNERAL uAaLrtY CLAM MADE 91 OCGUR FPC 0 35495M 1210712001 1210712M -nnuAmAwAmomrao Ni1Eo w jalu one owma SS OW i PERSONAL $ ACV INJ s1 00 000 GENERAL AGGREGATE -;2,000,000 GL:N'L AGGKGATE uwT APPuC6 PRODUCTS - CONIPIOP AGG s2,000,000 POLICY Pfm- I = AUTOMOBILE !]A&LITI ANY AUTO COMMNE0 SINGLE LIMIT I� accldostt) s eOWLYINJURY (PeI Pelson) S i I ALL OWNED AUTOS SCHEDULED AUTOS BODILYINJURY (Pair ' L HIRED AUTOS NON -OWNED AUTOS PROPERTY DAMAGE (Per amiderM S i - - GARAOF UABLLJTY AUTO ONLY - FA ACCIDEOT S OTHER THAN EA'= I s ANYAUTO S I AUTO ONLY_ A= A EXCE95 LIABILITY X occuR ❑CLwnMADE X00+318243672 12107101: 1VOI102 EACH O=URRE$= $5,000 000 AGGREGATE $ s i S OEDuLmOLE s RETENTION s WARNERS COMPENSATION AND 1MC STATU- I B EMPLovEas ivan.IrY 15247 3701 1110110t 12101102 EL EACH ACLDDENT s1,000,000 E.LFARMOTEJ OMAN ' E.L. DISEASE - POLICY L.afr S1,000,000 I OTHER I. I DF,SGRIPTION of oPVIATI0N&t=TloWVVu=;UCLU=N3 AMW s+►etNDORSOMEWISPECuu. PROMMS I Additonal Insured: City of Huntington Beach, its agents, office and employees as additionally insured, but only with respect to the Ilati ty arising out of the operations or worst of the named in:rumd, ' I City of Hlmtiagton 8wh 2000 Blain St Hunlinpo Beach, CA 9264E Alm. Cheryl Robinson SHOULDANY OFTHEABOVEOESCRISED POLICIES BE CANCEl1ED BEFORE THE EMIZATION DATE TNERECP, THE ISSUING MURER WILOWEANEft MAIL _K_ DAYS WRITTEN NOTNCETO THE CERTIFICATE HOLORR NAMPED TO THE LEFT, AFORD 25-S (719T) 1 06/24/02 MON 10:17 FAX 626 4455100 0 002 Vw4W dt by dit poff'Y- -PLEMEIIIIEMY CAFORUILLY - _ ADDi17 AL.[NSUR�-LANDLORD VA m+. �ron,�sd�a �r�sd wiow e�rb.m an ars.p:rao. sd�.au�arac os�,do�L Poky Number: #PC D35496646 i Name - Person or Organnaftcr_ City of Huati.ngton Beach 2000'Main`street, Huntington Reach, CA 92648 Location of Premises: 18381 Galdenweat' Street, Huntington Beach, CA 926!46 The Commercial LiahTrty CQvarage is amended as follows: DERNMONS The definition of bmwed is amended = include the. person or organization above, but only► tor liability arising out c f premises shown sbove, only while you lease or occupy those prsm!=04 This insurance does not apply to sz-za"mral alterations, new construction and demolition oy rations performed by or for that person or ar-canization. i i ATTACHMENT #2 4 NATIONAL EQUESTRIAN CENTERS, INC 18381 Golden West Street Huntington Beach, Calif. 92648 714.848.6565 714.848.6858 facsimile hcpecgaol.com www.hcpec.com Horse Show Price List Per day arena fee $500.00 Per Night; Lights $250.00 Per day parking fee $ 50.00 (fee paid directly to the City of Huntington Beach) Per week stall fee $135.00 Feed and Bedding: Shavings Alfalfa Oat Hay Timothy Bermuda Hay 0 & M (#50) A&M (#50) Beet Pulp Bran (#50) Bran (#25) Equine Senior Rolled Oats Omolene 100 (#50) Alf/Oat hay pellets (#50) Oat Hay Satin Finish $8.00 $12.00 $16.00 $20.00 $14.00 $10.00 $12.00 $10.00 $12.00 $7.50 $15.00 j $11.00 $13.00 $9.00 $14.00 $29.00 NATIONAL EQUESTRIAN CENTERS, INC 18381 Golden West Street Huntington Beach, Calif. 92648 714.848.6565 714.848.6858 facsimile hcpec@aol.com www.hcpec.com Price List 12 x 12 fully enclosed box stalls $445.00 (includes shavings) 24 x 24 fully enclosed box stall $605.00 (includes shavings) 12 x 24 (%z) covered pipe corrals $325.00 (shavings excluded) 24 x 24 (%z) covered pipe corrals $445.00 (shavings excluded) 12 x 24 full covered pipe corrals $51 5.00 (includes shavings) Extra's: Outside material installed Water as per meter per unit $8.00 Late Fee's $50.00 Install stall gate $10.00 Shavings @ 12 cubic feet $8.00 Install stall mats $25.00 1 yard decomposed granite $35.00 Install waterer $25.00 Pipe corral dig out $25.00 - $75.00 (price dependant on depth of material to be removed) Alfalfa Hay: * Two flakes per day $25.00 Three flakes per day $55.00 Four flakes per day $85.00 One bale $14.00 Timothy Hay: * Two flakes per day $50.00 Three flakes per day $97.00 Four flakes per day $145.00 One bale $20.00 OW l� �l tPinta�d, �rc� 18381 Goldenwest Street Huntington Beach, Calif. 92648 714.848.9695 714.848.6858 hor.veplayrntl@aoI.com ................................................................. Horse Rental Western Lesson Birthday party Scouts Clinic Rental of party area Bridal/conference room Price List $25.00 per hour, guided ride $40.00 per hour $250.00 for five children $25.00 each additional child $30.00 per person; two hour program $275.00 per person per week; four hour/ day $2,500.00 base price $1,000.00 base price RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: APPROVE AMENDMENT TO CONCESSION AGREEMENT WITH NATIONAL EQUESTRIAN CENTERS, INC. FOR HCP EQUESTRIAN CENTER COUNCIL MEETING DATE: July 1, 2002 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 Unbudget, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report If applicable Attached 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 rCity Clerk EXPLANATION FOR RETURN AFJTEM: RCA Author: RH:cr AMENDMENT TO CONCESSION AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND NATIONAL EQUESTRIAN CENTERS, INC. FOR THE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER Recitals WHEREAS, on October 25, 1982, this agreement was entered into between the City of Huntington Beach ("CITY") and Better Built Enterprises, Inc. On March 6, 1989, an assignment was approved by the Huntington Beach City Council assigning all rights and title to the agreement to National Equestrian Centers, Inc. (hereinafter "CONCESSIONAIRE") CONCESSIONAIRE now desires to make substantial improvement to the Center which requires them to obtain financing. To obtain the financing an addition to the term of the agreement is required along with certain clarification of its terms. CONCESSIONAIRE agrees as partial consideration for this extension that existing fees will not be increased for a period of one year after execution of this agreement. The CITY desires these improvements and therefore the parties agree as follows: 1. Section II C is added to the agreement to read as follows: II. CONCESSION GRANTED C. Leasehold Interest This Concession agreement is to be construed as a leasehold interest, and as such may be used as pledges as collateral. 10/92:453:AFJk 1 2. Section V is amended to read as follows: V. TERM The term of this agreement shall commence thirty (30) days after approval and execution of this agreement by the City Council of CITY, and shall terminate February 1, 2013 unless previously in accordance with other provisions of this agreement, such as default on the part of the CONCESSIONAIRE. 3. Section X is amended to add subsection F to read as follows: X. DEFAULT AND CANCELLATION F. Notice to Collateral Holder Should the CONCESSIONAIRE post this agreement as collateral for the purpose of obtaining a loan, upon notice to CITY of the posting and the name and address of the party holding the collateral the CITY shall send to that party all notices required by this agreement to be sent to the CONCESSIONAIRE. 10/92:453:AFJk K 4. Section XI is amended to add the following paragraph: XI. ASSIGNMENT, SUBLEASE, BANKRUPTCY If this agreement is used as collateral for a loan and the lender for any reason including foreclosure becomes the legal owner of this agreement that legal owner shall notify the CITY within ten (10) days of his assuming ownership and shall notify the CITY of their choice of operator which shall be approved or disapproved by the City Council within ninety (90) days. If disapproved, lender shall select a new operator within ten (10) days of notice of disapproval. CITY shall approved or disapprove the selected operator within ninety (90) days. If the second operator selected by legal owner is rejected by the CITY the legal owner may select another operator and if that operator is rejected by the CITY his rejection shall not be effective until the matter is heard by a member of the National Arbitration Commission. All questions arising out of the matter shall be decided by such a 10/92:453:AFJk member in accordance with the Rules of National Arbitration Commission and such a judgment shall be final. NATIONAL EQUESTRIAN CENTERS, INC. By (Si nat ) Name ( yped or printed) Title (typed or printed) By (Signature) ' Name (typed or printed) 5? C' G/ Title (typed or printed) CITY OF HUNTINGTON BEACH a municipal corporation of the State of California Mayor ATTEST: APPROVED AS TO FORM: P i l City Clerk Cl �d_,;L 79zCity At orn y REVIEWED AND APPROVED: INITI D AN APPROVED: A V� City Administrator ecto f _Community -Services 10/92:453:AFJk 4 4' Submitted to: Submitted by Prepared by: Subject: REQUES . FOR CITY COUNCIL ACTION Date July 6 , 1992 The Honorable Mayor and City Council Michael T. Uberuaga, City Administrat Ron Hagan, Director, Community Servi( Robert Franz, Deputy City Administrat PERMISSION FOR SUBLEASE OF PORTION Of EQUESTRIAN CENTER Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception rrtcv v L 1 411 1 v Statement of Issue, Recommendation, Analysis, Funding Source, Alternativ cfions, ttac ments: 19_ZeZ- S.T.ATEMENT OF S S SUE �ITY cLI;R� National Equestrian Centers, Inc., operators of the city's Central Park Equestrian Center, wishes to sublease a 24' X 24' space for a retail tack store located in barn number four, to be known as "Steinberg's Tack and Feed." Grant permission to National Equestrian Centers, Inc. for Steinberg's Tack and Feed to be a sublessee at the Equestrian Center for an equestrian related products retail store. The city approved an assignment of concession agreement between assignor, Better Built Engerprises, Inc. and assignee, National Equestrian Centers, Inc., dated October 9, 1986. National Equestrian Centers, Inc. now wishes to sublease a 24' X 24' space for a tack shop. The city had given previous approval for the tack shop, "Bits and Pieces," but this shop is no longer subleasing at the equestrian center. The term of the lease would be six (6) months with an option to renew every six (6) months with a cancellation clause of sixty (60) days by either party. Lease commencing on June 16, 1992. First six (6) months rent of $400 per month, with second six (6) months and thereafter at $600 per month. Proper insurance requirements will be complied with by sublessee, together with other city rules and regulations. Two percent (2%) of gross receipts plus four percent (4%) of space rental from Steinberg's Tack and Feed will go to the city, per the concessionaire's master agreement between the city and National Equestrian Centers, Inc. PI05/85 ''' REQUEST FOR CITY COUNCIL ACTION None FA IV 9 DI C►, •► Do not allow lessee to sublease this area. Sublease agreement Harris' May 26, 1992 letter RH:JBE:am PAGE TWO 17 rs s ...� 4;'l �r ..'• .-.>~i iA�. y _.5 �,11' , ,1 .l `.�1\�\��' ry'`:-•i �J rne,� LEASE (General, Short Form) f'a to ,,. !'• = < 1�•i' 1. PARTIES: a This Lease is made and entered into this Sixteenth of _ June 19 by and between National EcglPstrian CentQrs, Tnr_ (hereinafter referred to as "Landlord") and- Steinberg Tack & Feed (hereinafter referred to as "Tenant"). 2. PREMISES: Landlord hereby leases to Tenant and,Tenant hereby leases from Landlord, on the terms and conditions hereinafter set forth, that certain real property and the building and other improvements located thereon situated in the City of Huntington Beach , County of Oranae , State of ralifornia 18381 Goldenwest St. Huntington Beach, Calif. 92648 (here insert address) and described as 24 x 24 retail store space located in barn four (here insert legal description) (said real property is hereinafter called the "Premises") commonly known as 3. TERM: The term of this Lease shall be for a peri orb of ci x mont-Its witYLan option to renew eveiw si x months. 60 day cancellation clause with written notification by either parry- 4. RENT: Tenant shall pay to Landlord as rent for the Premises, the sum of S. 00 for 6 mnths/ 600. 00 _econ,d 6 mnths ($_abl ) dollars per month, in advance on the first day of each month during the term hereof. Rent shall be payable without notice or demand and without any deduction, off -set, or abatement in lawful money of the United States to the Landlord at the address stated herein for notices or to such other persons or such other places as the Landlord may designate to Tenant in writing. 5. USE: Tenant shall use the Premises for Retail stolre — Fqunstrian related products and for no other purpose without the Landlord's prior written consent. 6. TAXES: (a) Real Property Taxes. Landlord shall pay all real property taxes and general assessments levied and assessed against the Premises during the term of this Lease. (b) Personal Property Taxes. Tenant shall pay prior to the delinquency all taxes assessed against and levied upon the trade fixtures, furnishings, equipment and other personal property of Tenant contained in the Premises. 7. UTILITIES: N.E.C., Inc. shall make all arrangements and pay for all water, gas, heat, light, power, and other utility services supplied to the Premises together with any taxes thereon and for all connection charges. Tenant shall pay for all telephone charges. If Tenant shall be responsible for the payment of utility charges hereunder, if any such services are not separately metered to Tenant, the Tenant shall pay a reasonable proportion, to be determined by Landlord, of all charges jointly metered with other premises. 8. ALTERATIONS AND ADDITIONS: Tenant shall not, without the Landlord's prior written consent, make any alterations, improvements or additions in or about the Premises. 9. HOLD HARMLESS: Tenant shall indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the Premises or from the conduct of its business or from any activity, work, or things which may be permitted or suffered by Tenant in or about the Premises including all damages, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising therefrom. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property or injury to person in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against Landlord. 10. ASSIGNMENT AND SUBLETTING: Tenant shall not voluntarily or by operation of law assign, transfer, sublet, mortgage, or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises without Landlord's prior written consent which consent shall not be unreasonably withheld. 11. DEFAULT: It is agreed between the parties hereto that if any rent shall be due hereunder and unpaid, or if a receiver be apointed to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in the Lease, or if Tenant shall make a general assignment or arrangement for the benefit of creditors, or if Tenant shall take any action under any insolvency or Bankruptcy act, or if Tenant shall default and breach any other covenant or provision of the Lease, then the Landlord, after giving the proper notice required by law, may re-enter the Premises and remove any property and any and all persons therefrom in the manner allowed by law. The Landlord may, at his option, either maintain this Lease in full force and effect and recover the rent and other charges as they become due or, in the alternative, terminate this Lease. In addition, the Landlord may recover all rentals and any other damages and pursue any other rights and remedies which the Landlord may have against the Tenant by reason of such default as provided by law. 12. SURRENDER: On the last day of the term of this Lease, Teiint shall surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear and damage by fire and the elements excepted. WOLCOI IS FORM 980--SIORE LEASE (GENERAL, SHORT FORM) This standard form covers most usual problems in the held indicated. Before you sign, read it, fill in all blanks. Rev. 9-84 (c) 1984 WOLCOITS. INC and make changes proper to your transaction Consult a lawyer it you doubt the form fitness for your purpose, (price class 31 4. 4, LANDLORD: National Equestrian Centers, Inc. By By t• ;,n ~..� 13. HOLDING OVER: � r: n If Tenant, with the Landlord's consent, remains in possession of the Premises after expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be a tenancy from month -to -month at a rental in the amount of the last monthly rental plus all other I'f V charges payable hereunder, and upon the provisions of this Lease applicable to such a month -to -month tenancy. 14. BINDING ON SUCCESSORS AND ASSIGNS: Each provision of this Lease performable by Tenant shall be deemed both a covenant and a condition. The terms, conditions and oa covenants of this Lease shall be bindinq upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns 15. NOTICES: Whenever under this Lease a provision is made for any demand, notice or declaration of any kind, it shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed at the addresses as set forth below: TO LANDLORD AT: 18381 Goldenwest st. Huntington Beach, Calif. 92648 TO TENANT AT: 18381 Goldenwest Huntington Beach, Calif. Jc, 648 Such notice shall be deemed to be received within forty-eight (48) hours from the time of mailing, if mailed as provided for in this paragraph. 16. WAIVERS: No waiver by Landlord of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Tenant of the same or any other provisions. 17. TIME: Time is of the essence of this Lease. 181- INSrTanpd Provide National Equestrian Centers, Inc and t_h_e_City of Huntington HParh with an insurance binder noting the following conditions: 1 One million dollar ($1,000,000 00) liability coverage 2 The City of Huntington Beach as the named insured 3. Policy shall contain a cancellation clause reading in substance as the following approved notice: "It is agreed that this policy shall not be cancelled nor the amounts of coverage provided herein reduced until thirty (30) days after the CITY's City Attorney shall have received written notice of such cancellation or reduction, as evidenced by return receipt of registered mail." 4. Workers Compensation and Employers Liability insurance In accordance with the applicable state statutes with limits in the case of employers' liability in amounts not less than: a. $100,000 bodily injury by accident, each occurrence, AND b. $100,000 bodily injury by disease, each employee, AND C. $250,000 bodily injury by disease, policy limit. AS TO FORM., yT"f", t; r t'GiTNEY Ry. The parties hereto have executed this Lease on the date first above written. e uty City Attorney TENANT: Steirberg's Tack & eed By: Jenny�Jason HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 18381 Goldenwest Street Huntington Beach, CA 926U (714) 848-6565 FAX: (714) 848-6858 May 26, 1992 Jim Engle Community Services Dept. City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Re: Tack store Dear Jim, As of May 15, 1992, Bits and Pieces Tack is no longer sub -leasing the tack store located on the Equestrian Center property. Steinberg's Tack & Feed would like to open up a second store here and we need your approval for them to come in. Steinberg's has been operating a tack store at 2929 W. Edinger in Santa Ana for the past twenty five years, and I feel they will be a great asset here at the Equestrian Center. Please let me know what further information you need to get them approved to sub -lease the tack store. They would like to open for business the first part of June. Thank -you for all your help in this matter. Sincerely, Mary Harris General Manager Huntington Central Park Equestrian Center cc: Finance Dept. 4 � K. CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK Jury 8, 1992 Orange County Assessor's Office P. 0. Box 149 Santa Ana, CA 9.2702 Attn: Real Property Department CALIFORNIA 92648 Enclosed is a copy of a sub -lease agreement between the National Equestrian Center, Inc. and Steinberg's Tack and. Feed for city -owned property located at 18381 Goldenwest Street, Huntington Beach, CA 92648. If you have any questions, please call- the Office of the City Clerk, 536-5405. Connie Brockway City Clerk CB:bt Enc. 1 Telephone: 714-536-5227 ) I• ' CITY OF HUNTINGTON 13EACH',,',jfC��T1NG 0;! o� �; i>� aCFi, CA INTER -DEPARTMENT COMMUNICATION C HUNTINGTON BEACH ZE S`P I A : 3� To Shari Freidenrich, City Treasurer From Ron Hagan, Director, Community Services 0-- Date September 6, 2002 Subject Performance Bond — Equestrian Center The lessee and operator of the Huntington Central Park Equestrian Center is obligated to provide a Performance Bond to the city. Attached is the Annual Performance Bond in the amount of $50,000 as required by National Equestrian Centers, Inc. lease with .the city. Please retain this bond on file. RH:cr Attachment cc: Jim B. Engle; City Clerk's Office OND NUMBER : 58605595 ANNUAL PREMIUM CHARGE: $1,500.00 WISMINSYNITYCANP,fiffiv ANNUAL PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That National Equestrian Center, Inc., as Principal, and Western Surety Company, as Surety, are held and firmly bound unto City of Huntington Beach, as Obligee, in the sum of Fifty Thousand Dollars ($50,000.00) for the payment of which we bind ourselves, our legal representatives, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into a Concessionaire Agreement for the operation of the Huntington Beach National Equestrian Center. A copy of that agreement is hereby made a part of this bond by reference. NOW, THEREFORE, if the Principal shall indemnify and save harmless the Obligee from all cost and damage by reason of Principal's failure to comply with the terms and conditions of the above described Agreement, then this obligation shall be null and void; otherwise to remain in full force and effect. The Surety's aggregate liability under this bond shall not exceed the bond amount, nor shall the Surety have any cumulative liability to the Obligee should there be multiple renewals of this bond. The initial term of this bond shall be from July 1, 2002 to and through June 30, 2003. PROVIDED, however, this bond is subject to the following express conditions: First: This Bond is an annual bond, renewable each year at the sole option of the Surety, and subject to a Sixty (60) day notice of intention not to renew. The decision not to renew is at the sole discretion of the Surety. The decision of the Surety not to renew at any annual period shall not cause a default under the Agreement or this Bond, nor shall the terminating Surety be liable if the Principal is unable to obtain a replacement bond. Notice of the Surety's intent to not renew will be sent to City Attorney, City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Second: That in the event of any default on the part of the Principal, written notice thereof shall be delivered to the Surety as promptly as possible, and in any event within ten (10) days after the Obligee shall become aware of such default(s). The Surety's address for notification is Western Surety Company, C/O CNA Surety Company, Surety Claim Center, CNA Plaza — 13S, Chicago, IL 60685. If the Principal shall abandon said Agreement or be compelled by the Obligee to cease operations thereunder, then the Surety shall have the option to proceed or procure others to proceed with the performance of such Agreement. All monies paid by the Principal prior to any said default shall reduce the penalty of this bond by an equal amount. Third: The Surety shall not be liable for any damages resulting from strikes, labor difficulties, or from mobs, riots, civic commotion, public enemy, fire, the elements, acts of God; or for damages arising out of injuries to persons or property or for the death of any person or persons, or by virtue of any statutory provisions for damages or compensation for injury to or the death or any employee; or for any loss that would otherwise be covered through the existence of an appropriate insurance policy. Fourth: Any claim by the Obligee, other than the 10 day notice above, must be made within 90 days of the termination of this bond. Further, any such claim can only be for periods of time prior to the effective date of bond termination. Page One of Two Pages Fifth: Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within the time prescribed by the appropriate statute after a Principal Default, cessation of work by the Principal, or after the Surety's refusal or failure to perform the Surety's obligations under this Bond, whichever occurs first. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. Signed, Sealed and Dated this 31 st Day of July, 2001. National Equestrian Center, Inc. Principal By Western Surety Company By Gerald L. Ervin; Attorney in Fact Page Two of Two Pages Western Surety Company POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY -IN -FACT Know All Men By These Presents, That WESTERN SURETY COMPANY, a South Dakota corporation, is a duly organized and C.xisung corporation having its principal office in the City of Sioux Falls, and State of South Dakota, and that it does by virtue of the signature and seal herein affixed hereby make, constitute and appoint Gerald L. Ervin, Gina O'Shea, Individually of Woodland Hills, CA, its true and lawful Attomey(s)-in-Fact with full power and authority hereby conferred to sign, seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar nature - In Unlimited Amounts - and to bind it thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the corporation and all the acts of said Attorney, pursuant to the authority hereby given, are hereby ratified and confirmed. This Power of Attorney is made and executed pursuant to and by authority of the By -Law printed on the reverse hereof, duly adopted, as indicated, by the shareholders of the corporation. In Witness Whereof, WESTERN SURETY COMPANY has caused these presents to be signed by its Senior Vice President and its corporate seal to be hereto affixed on this 24th day of June, 2002. WESTERN SURETY COMPANY RErtc W(4 00 Paul Y.Bruflat, Senior Vice President State of South Dakota I ss County of Minnehaha On this 24th day of June, 2002, before me personally came Paul T. Bruflat, to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that he is the Senior Vice President of WESTERN SURETY COMPANY described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said corporation and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said corporation. My commission expires J. MOHR f October 22, 2005 NOTARY PUBLIC 1 EAu SOUTH DAKOTA s�ti lI f Mr Communion Expire. 10.22-2005 ? a M J. Mohr, Notary Public CERTIFICATE I, L. Nelson, Assistant Secretary of WESTERN SURETY COMPANY do hereby certify that the Power of Attorney hereinabove set forth is still in force, and further certify that the By -Law of the corporation printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said corporation this 31st day of Jul y , 2002 SirREry WESTERN SURETY COMPANY AP �PO.i,�a P �lN OrM4� L. Nelson, Assistant Secretary Fon..p4280-01-02 i RESOLUTION NO. 6663 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING A SUBLEASE BY VIRGINIA SPOONER AT THE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER WHEREAS, the City Council of the City of Huntington Beach entered into a concessionaire's agreement with National Equestrian Centers; and National Equestrian Centers would like to sublease land to Virginia Spooner to operate a riding school; and Virginia Spooner has been operating the school as an employee of the equestrian center for five years. Previous to that time, the riding school was operated as a sublease. The concessionaire believes that service would be improved to the public if it were again operated as a sublease. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Huntington Beach finds a need for such a riding school, and hereby authorizes and approves a sublease between Virginia Spooner and National Equestrian Centers, Inc., that is consistent with the Master Lease and subject to the insurance requirements of the city, at Huntington Beach Equestrian Center. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6th day of February 1199 5 ATTEST: r Mayor Ar r/ APPROVED AS TO FORM: City Clerk City Attorney (K C�-_6( Nj L V111211" ( REVIEWED AND APPROVED: INITIA3�t AND APPROVED: A ;1 ✓—� City Administrator Dir646r'df Itommunity Services Res. No. 6663 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 6th of February, 1995 the following vote: AYES: Councilmembers: Harman, Sullivan, Leipzig, Dettloff, Green, Garofalo NOES: CounciImembers: None ABSENT: Councilmembers: Bauer City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/kw/r-bkPB RECEIVED FggB CA 1 AND MODE A PART OF THE RECORD AT COUNCIL MEETING OF i1—i - o Z OFROE OF THE CITY CLERIC OONNE BROCKINAY. CITY CLERK ITEM:_ Marcia Diane Salans And Peanut the Shetland Pony 7151 Little Harbor Drive Huntington Beach, California 92648 Home: 714-969-4031 Work: 714-373-7870 Email Address: Walano.SoCal.a.com July 1, 2002 City Council City Of Huntington Beach 2000 Main Street Huntington Beach, California 92648 iSubject: Lease Extension — Huntington Central Park Equestrian Center Dear City Council: I'm Marcia Salans, a BeachWalk resident, local taxpayer and my Shetland Pony lives at the Public Equestrian Center. I want to thank each Council Member for taking time from your respective families to serve our community and I am very grateful for that. I also sincerely appreciate the Council's past support of the Equestrian Center and I am respectfully asking Council to continue support and approve the request for lease extension. The Public Equestrian Center has fulfilled my personal dreams — by day I'm an executive with Panasonic and then I get to go and share my pony with visiting children, their Moms and Dads. The Equestrian Center consistently provides a variety of family oriented recreational and learning opportunities - so important in today's post 9/11 world. The Equestrian Center is a naturally beautiful community resource and a wonderful educational environment. As part of the City's master plan — it's a true gift to the entire Huntington Beach community and positions our City in the upper echelon of the Orange County public recreational community. From trail rides to riding lessons; to family movies under the summer stars — and the unique family opportunities represented in the tireless efforts of the Therapeutic Riding Center; the Equestrian Center is an important part of the Huntington Beach community. Additionally, the Equestrian Center's boarders and trainers represent significant economic contributions to the local Huntington Beach business community. We are local taxpayers, we are homeowners and apartment renters, and we shop locally. The Public Equestrian Center also provides a positive, safe, drug -free environment for a variety of diversified youth. As a boarder, I consistently see many educational activities, interested/supportive management and a variety of children - Caucasian, African American, Asian, Hispanic and others increasing their confidence, communication, poise, and becoming young adults. I see the positive effects with the pre -teen and teenage youth — their interaction and growth - that the Public Equestrian Center, being a unique learning source and educational center - provides to our children and to the entire community. Again, thank you for serving our community and please support the request for lease extension. Respectfully, Marcia Diane Salans r I Mq, r know IO UE bus,/ r vv vv he Y, S, 60wei ME 4�e (eS - Y6Ur horse Pea out,-i�, us S tw f from PS, \(our ponny Yvgj u r new �V'%n•r Lake, ac_em'be(- aq.aboa T e- V yo Poi 02 ill.;l al FROM Edle Fischer 34 Cape Andover Newport Beach. CA 92660 gQm 7 L tits k Py .�i.l �v�k,, �J, wl ').�, �J-� Seems like you never miss an opportunity to do something nice! 41 N'�,�„ � l I �:{{{ �, tl li {w. I :�u9�'•�a-�� tey�a,, .` F � � ' ._` r 1x",'—_ TIT, VK t-A 4g 9 Aln' woo fr; IMMIAA MN Pro, Ilk ji, , I N. vm ROL- y CORINNE D. DEKKER 21661 Brookhurst St., Apt. 171 Huntington Beady CA 92646 Tel. 7141206-9919 • Corc ne()yahoo.cojn TO HB CITY COUNCIL MEMBERS FROM CORINNE DEKKER RE Huntington Central Park Equestrian Center DATE July 1, 2002 RECEIVED FROM A DR - AND WDE A PART OF TFIE RECORDA� COUNCL MEETL4G OF n - \, -a OFFICE OF THE CITY CLERK CONNIE BROCkW AY, CITY CL.EiiA( ITEM a F According to the American Horse Council and USA Equestrian, the average horse owner's household income is $134,500. 84% own their main residence, 90% attended college, 25 % attended graduate school and 52 % are married. The horse community speaks all languages and transcends age and gender with a contagious spirit. It instills dedication, confidence and commitment with a clean, healthy and drug -free image enjoyed by families, which men and women enjoy on an equal footing, where medallists and grass roots riders compete on equal terms. In the past month, we have had ten separate equestrian events. Out of town participants included trainers, riders and their families. They stayed at the Hotel Huntington Beach and the Waterfront Hilton. They ate breakfast and dinner in our restaurants, they shopped in our stores and, when they went home, they bought our gasoline. But let's address the public that does not own horses. The Therapeutic Riding Center has a big resident volunteer group. Their students live in and around our city. The same is true with the Riding School, the rental barn, the families who come visit the horses, who use the facility for birthday parties, and the Girl Scout troops who come in for tours. Each one comes here because of our public stable. This is in addition to the boarders and businesses that rely on it. We buy gas and groceries on our way home, and we buy our vehicles on the Beach Boulevard of Cars. We support the fundraising shows that bring in money for the places like the Art Center and the Richland Farms Junior Posse for underprivileged children. In the past 25 years, we have seen the demise of over a dozen HB stables. The last remaining facility provides an attraction to a very horizontal section of the community. While golfers already have a choice right here in Huntington Beach, we would have to travel thirty miles to a comparable facility where our children could interact with our gentle giant friends, where they can be around horses for possibly the only time in their lives. They can do this without paying for free. 27 million people over the age 12 in the US ride a horse at least once a year. We have on occasion been painted into a corner, accused of being a facility which does nothing for the community and is there for the sole use of the owners who keep their horses there. Nothing could be further from the truth. MW RECEIVED FROM AND MADE A PART OF 7HE RED, -,, ? ' , �a COUNCIL MEETING OF i - ��- OFRCE OF THE qN C t'; "'- CONK BROCKVIIAY, Cn-` �. pj( ITEM 0.--� - Agenda Item F - 5 HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER • The HCP Equestrian Center has been operated under lease to National Equestrian Centers, Inc. since 1982. • At Council's direction staff has prepared a new lease amendment for council approval that contains the following provisions: Page HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER • Extends the term of the lease 10 years from 2013 to 2023, in order for NEC Inc. to obtain financing for $600,000 of city required improvements. ( They need a 20 year lease to finance a loan for 10 years) . Requires NEC, Inc. to pay for all utilities, including water, which the city previously provided. • Allows the additional use of the grass area next to the office for weddings & private parties. HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER • Further defines and sets maintenance standards to insure a clean, attractive and well maintained premises. • Updates insurance, performance bond requirements, hold harmless language and definition of gross receipts. • Allows use of the Sports Complex parking lot for overflow parking when horse show events are scheduled. • Requires concessionaire to comply with the city's Coca Cola agreement. Page 3 RECOMMENDATION Staff is still working with NEC Inc. for the possible change in the lease boundary lines that would extend the equestrian center south along Goldenwest on the former AC Marion property and then release property on the west end of the center that could be added to the proposed urban forest area. However, this will take some time and may require a Charter Section 612 vote of the people, so staff is recommending approval of this amendment so that the required improvements at the equestrian center can begin, the lease can be updated and the city can be relieved from paying the water costs for its operation. Staff will continue to work with NEC Inc. on the boundary issue and return to council in the future. PW4 2 Council/Agency Meeting Held: 05' -- 07-0) Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied 10- CI r 's Signature Council Meeting Date: May 7, 2001 Department ID Number: CS01-028 0 iJK CITY OF HUNTINGTON BEACH o REQUEST FOR COUNCIL ACTION C-) a z o -C SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS - > SUBMITTED BY: RAY SILVER, City AdministratoraA ui C-) PREPARED BY: RON HAGAN, Director, Community Services DepartmenrQ = D SUBJECT: APPROVE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASE Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should approval be given for an increase in the Huntington Central Park Equestrian Center (HCPEC) boarding fees as requested by National Equestrian Centers, Inc. (NEC)? Funding Source: Concession revenue to the General Fund. Recommended Action: Motion to: Approve the following monthly, boarding fee increases at Huntington Central Park Equestrian Center as requested by National Equestrian Centers, Inc. to be effective upon approval: Current Fee Proposed Fee 12' x 12' Box Stall including tack lockers $405 $420 12' x 24' Pipe Stall including tack lockers $290 $300 24' x 24' Pipe Stall including tack lockers $385 $400 Alternative Action(s): (1) Approve boarding fee increases based on the inflation rate of 3.7 percent per the Bureau of Labor Statistics Consumer Price Index which would increase 12' x 12' box stalls to $420; 12' x 24' pipe stalls to $301; and 24' x 24' pipe stalls to $399, (2) Approve boarding fees based on the inflation rate and negotiate an amendment to the existing lease with NEC making them responsible for paying all domestic, industrial, and irrigation water on the premises, (3) Approve boarding fees as requested by NEC and negotiate an amendment to the existing lease with NEC making them responsible for paying all domestic, industrial, and irrigation water on the premises, or (4) Do not approve boarding fee increases at HCPEC. �i REQUEST FOR COUNCIL ACTION MEETING DATE: May 7, 2001 DEPARTMENT ID NUMBER: CS01-028 Analysis: National Equestrian Centers, Inc. has written the city (Attachment 2) to request an increase in boarding fees at Huntington Central Park Equestrian Center (HCPEC). Section IV.L of the concessionaire's agreement states: All rates for services and merchandise charged by the CONCESSIONAIRE shall be uniform at all times and seasons and subject to the approval of the CITY. The standard used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services. (Emphasis added.) The concessionaire's last approval for boarding fee increases was April 17, 2000. The concessionaire indicates that fee increases are being requested due to higher costs to operate the facility at the same level of service. Within the last year, HCPEC reports that its labor costs have risen 8.7 percent due to an increase of the federal minimum wage from $5.75 to $6.25 per hour as of January 2001. Rates for green waste disposal have also increased by 35 percent and increases in electricity and fuel costs have added to the expense of food, bedding, and other products that are shipped to the facility and supplied to the boarders. Although operating costs noted above have increased beyond the current Consumer Price Index (CPI) rate (3.7%), NEC's proposed fees are consistent with the CPI. When evaluating proposed fee changes in the past, the city has used the Orange County Fairground Equestrian Center (OCFEC) as a comparable facility. Although OCFEC does not include open pipe stalls or trail systems, it has been determined to be the best local comparison. A 12' x 12' box stall at OCFEC currently rents for $415 per month. At its April 17, 2000 meeting, Council questioned the provisions for water within the city's lease with NEC. Under the lease, the city is responsible for all domestic, industrial, and irrigation water consumed on the premises. If Council is desirous of changing the current lease, it may do so at the time of renewal in 2007. Another approach would be to negotiate an amendment to the lease requiring NEC to pay for the water, and have NEC incorporate the cost by increased boarding fees. Based on an annual cost of $35,000 for water, a fee of $84 per year or $7 per month would be added to each of the 420 stalls on the premises. Attachment 1 is a fee comparison table of the proposed boarding fees by NEC, fees based on the CPI, and fees based on the CPI including water. Currently, the city receives approximately $75,000 per year in lease revenue from NEC. The equestrian center provides a variety of recreational opportunities to the community including lessons, events, and rental horses for trail rides. Of the 420 boarders, approximately 50 percent are Huntington Beach residents. Attachment(s): HCPEC Rate Increase CS01-028 -2- 04/19/01 4:49 PM ATTACHMENT #1 ----Jl HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE PROPOSAL Stall Current Fee Fee Increase based on Proposed Fee/% of Fee Increase Fee Increase based on Orange County Fairground CPI* 3.7% CPI and water fee** Equestrian Center 12' x 12' box stall $405 $420 $420/3.7% $427 $415 12' x 24' pipe stall $290 $301 $300/3.5% $308 N/A 24' x 24' pipe stall $385 $399 $400/3.9% $406 N/A All fees are per month *Consumer Price Index (CPI) figures from the California Department of Finance rounded to the nearest dollar **Water fee calculated at $35,000 per year, $84 per year per stall ($7/month) if NEC is allowed to pass total water cost on to boarder's fee rate schedule. Rkpec:comparison fees 4/19/01 ATTACHMENT #2 Huntington Central Park Equestrian Center 18381 Od.& *t Street HuiWijtoA Bekh, CA 92648 014) 848450 (714) 848.6058 ; fax emnll: hcpecaowl.com February 26, 2001 Dave Domi0ques; Senior Recreation Supervisor Community Services City of Huntington Beach 2000 Main Street Huntington Beach, Calif 92649 • Re: --ftee, facrease/ Letter of February 6, 2001 Deac,Dive, Am-yoU know, HCPEC rental rate increases are governed by our concession agreement -'-with the City of Huntington Beach. Historically, our rates have been tied to tha orange County Fairground rates. As of March 1, 2001, the Fairgrounds will be charging fair' ' hpnd,od and twenty dollars ($420.00), which include tack lockers. r To further justify our increase, the following is a list of costs we have encountered since last year. 1..The Federal minimum wage went from $5.75 per hour to $6.25 per hour, rewiting in ' an 8.7 % increase in our labor cost. .2. -Electricity increase at this time is at 7% with more increases likely. 3.. On. January 26, 2001, we received a letter from our'waste vendor, increasing our . cage by 35%. 44, ',duel costs have gone up approximately 15%, which has increased the cost of feed, bedding and other products that are shipped to this facility. P We .have also .added additional staff to give better service to our boarders. Dave, although our rental increase is not based on the Consumer Price Index,•this rate increase is comparable to the C. P.I. for Orange County. For the year 2000, the Consumer Price Index increased by 3.8%, I Z0'd WC vv:90 T00Z-LZ-a33 Page 2 Rate increast 2/26/01 Thank .you for Our time regarding this matter. Attached you will find our new fee schedule we would like approved for May 1, 2001. Sincerely, Mary Warren President National Equestrian Centers, Inc. r • Wt1 bb:90 i0©Z-LZ-fi3� Rental Rate Increase May 1, 2001 Boarding: 12 x 12 fully enclosed box stall at $405.00 per month to S420.00 per month. 12 x U % covered pipe corral at $290.00 per month to S300.00 per month 24 x 24 i covered pipe corral at S395.00 per month to S400.00 per month RCA ROUTING SHEET INITIATING DEPARTMENT: Community Services SUBJECT: APPROVE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASE COUNCIL MEETING DATE: May 7, 2001 ................................................................................................. ........................................................................................................................................ RCA ATTACHMENTS . ............................................................................................................................................................................................................................................ <;:> :: TAT;IS ............................... 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 Attorney) Not Applicable Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds if applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable M EXPLANATI N. R T _... Q 0 R U RCA Author: Dave Dominguez NATIONAL EQUESTRIAN CENTERS INC. Willard & Mary Harris 1 Exp `�L)c'� 2013 1982-1994-1996-1998 1 . � .t. t I a i7vr?n i" u• f'1..., .Y-,.'S.+YS: •. ,,. � �t � } . r r_ "5 x +•ii r 55 is i 1; i!; ' :I.:i '4, i. -t i �•��.�...�':"�^��rT�. i.��. 4,Z' :•:t •G�.,i.,_`, +*�.i 4"�.;'.��«'. ,,+ -'r: glZDIM J�. JJ46A4 , (pMM- JRIV. 14/1 W,Nt� pj) Council/Agency Meeting Held: 9— I1--00 Deferred/Continued to: A/�-- '*tkApppoved ❑ Conditionally Approved ❑ Denied WI a Pignature Council Meeting Date: 4/17/00 Department ID Number: CS 00-019 CITY OF HUNTINGTON BEACH C= REQUEST FOR COUNCIL ACTION -� 33 SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City AdministratoroK/ >m PREPARED BY: RON HAGAN, Director, Community Service SUBJECT: APPROVE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASE Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should approval be given for an increase in Huntington Central Park Equestrian Center fees as requested by National Equestrian Centers, Inc? Funding Source: N/A Recommended Action: Approve the following monthly fee increases to boarders at HCPEC as requested by National Equestrian Centers, Inc.: Box stalls including tack lockers from $385 to $405 Pipe stalls including tack lockers from $275 to $290 Box stalls with full grooming including tack lockers from $495 to $515 Double pipe corral including tack lockers from $365 to $385 Tack room from $150 to $175 Alternative Action(s): 1. Approve fee increase based on the inflation rate of 3.5 percent per the Bureau of Labor Statistics Consumer Price Index which would increase box stalls to $399, pipe stalls to $285, box stalls with full grooming service to $512, double pipe stalls to $378, and tack rooms to $155. 2. Do not approve fee increases at the Huntington Central Park Equestrian Center. REQUEST FOR COUNCIL ACTION MEETING DATE: 4/17/00 DEPARTMENT ID NUMBER: CS 00-019 Analysis: National Equestrian Centers, Inc. has contacted the city to request the boarders' fees be increased at the Huntington Central Park Equestrian Center (HCPEC). Section IV.L of the concessionaire's agreement states: All rates for services and merchandise charged by the CONCESSIONAIRE shall be uniform at all times and seasons and subject to the approval of the CITY. The standard used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services. (Emphasis added.) The concessionaire's last approval for fee increases to boarders was January 4, 1999. The concessionaire indicates that fee increases are being requested due to higher costs to operate the facility at the same service level. Within the last year, HCPEC labor costs have risen 11 percent and, because of green waste laws, hauling fees have risen by 70 percent; from $70 per container to $120 per container. Additional administrative staff has also been hired to maintain service levels, resulting in an additional 20 percent increase in overall operating costs. Although the proposed fees are higher than the Consumer Price Index rate, they are for a seventeen -month period, bringing them more in line with the rate of inflation. Furthermore, the proposed fee increases would bring in an additional $95,000 in gross revenues per year — this figure is below the increase in annual operating costs that the concessionaire cites at $120,000. When evaluating proposed fee changes in the past, the City has always used the Orange County Fairground Equestrian Center (OCFEC) as a comparable facility. Although OCFEC does not include open pipe stalls or trail systems, it has been determined to be the best local comparison. The proposed fee of $405 by the HCPEC for a 12' x 12' box stall (the most similar facility) is consistent with what is being charged at OCFEC. The other proposed fees are listed in the attached fee compariso Environmental Status: N/A Attachment(s): 1. 1 Fee Comparison n 2. 13/14/00 letter from Mary Warren, General Manager, HCPEC 3. 3/28/00 letter from Mary Warren, General Manager, HCPEC RCA Author: Dave Dominguez HCPEC Fee Increase CS00-019 -2- April 6, 2000 11:55 AM ATTACHMENT #1 HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE PROPOSAL RECOMMENDED ACTION Current Fee Proposed Fee % of Fee Increase 12 x 12 box stall $385 $405 5.2% 12 x 12 upper box stall w/ roomin $495 $515 4.0% 12 x 24 pipe stall $275 $290 5.5% 24 x 24 pipe stall $365 $385 5.5% 12 x 12 tack room* $150 $175 16.6% * Rates have not been raised since 1990 ALTERNATIVE ACTION #1 Current Fee Fee Increase based on CPI** (3.5%) 12 x 12 box stall $385 $399 12 x 12 upper box stall w/ roomin $495 $512 12 x 24 pipe stall $275 $285 24 x 24 pipe stall $365 $378 12 x 12 tack room $150 $155 ** Consumer Price Index (CPI) figures rounded to the nearest dollar H: hcpec: comparison fees 4/6/00 ATTACHMENT #2 Huntington Central Park'' "Equestr.i,an�Center,.:. ` .' '1838t-Goldenwest,Street - /,Huntirigton Beach, GP+ 92648 , (710.848-6565 '.:(714) '848-6858 _ fax` ,eriiail::hcpec®aol.com Mardi '1 -, 2000 Jiin`Engle- Deputy Director Community Services - 'City. of Huntington Beach 2000 Main Street _ - Huntington Beach, Calif. 9264$ Re: Fee increase ` bear•Jim, Thank you for your quick response to the letter 1 sent you. As you are aware, our concession agreement allows us to increase our fees with the comparable fees in the -area. The last fifteen years the`Grange County Fairground fees have been deemed comparable _ to ours. I would like to.point out that -this price increase is for.se'venteen months, and based on a seventeen month -period our fee increase of 5% is in line with the Consumer Price Index. Within the last ,year, we have experienced an 11 % "labor increase and because of the. Green Waste law,, we. have -incurred a 70% increase in hauling fees fori our,waste::I was hoping there would be a way we could work out a solution to, our waste problem with the , - City by'coordinating with the Parks Department4o useourwaste product. Because.of our concern's to `give good service and excellence to our boarders we.have.% increased our administrative personnel; which also increased our costs by 20%. ; - - B' elow. are•'our revised fee increases for the, ear 2000: r % _ ,! _ j-.. ' 12.- 42 box`stalls°'. �, 5405.00 1: x 24;pipe corrals; $290,00 `24 x 24`pipe corrals `' $385.00' 12 x 12; tack room . (: *$1.75':00 o 'ere�'pi.pe coral:: $425�OQ 1"2x24c v ** , =�. \ 12 x .12 .box stall: w/grooming $515.00 r l page two Jim Engle/increase r i _ - /' M rch 14,2000 *These,rate's have,not been raised since)1990 and it does not seem-unfair.to ask fora _ twenty=five-dollar increase. , Y \ -' **Fully covered and -enclosed 12 x 24 pipe corral with bedding \ , Jim, it is always a.pleasure .working• with you. It is our, desire to continue making -this the . one facility.•in Southern California: number ` Sincerely, - ' Mary Warren Owner/Manager, . Huntington Central Park Equestrian Center ; � i I � , `, it • " .� - - , , .\ .__ ", � ATTACHMENT #3 Huntington. Central Park Equestrian Center ' M81 Goldenwest Street Huntington Bead i, CA 92648 (714) 848-6565 (714) '848-6858 - fax email: hcpecpauLcom March 28, 2000 Jim Engle; Deputy Director Community' Services City of Huntington Beach '2000 Main Street r V Huntington Beach, Calif 92648 �Re: Fee increase ,Dear Jim, 'At this time, we f nd it necessary to ask for an increase in our fees. As you are aware, our concession agreement allows us to increase our fees with the comparable fees in the area. The last fifteen years the Grange County Fairground i'ees have been deemed comparable ,to ours. I would like to point out that this price increase is for seventeen months, and based -on a seventeen month period Our fee increase of 5% is in'line with. the Consumer Price Index. ` I Within the last year, our payroll expenses have increased by $66,941.00 and because of the Green Waste,'law, our: hauling fees for our waste have increased by $6,000.00 for the year. I•was hoping,there would be a way we could work out a solution to our waste problem with the City.by coordinating with the Parks Department to use our waste product. Because of our concerns to give. good service and excellence to our boarders, we have increased. our administrative personnel, which also increased our costs by $48,500.00. Below are our fee incre8ps for the year 2000: J 12 x I2'box stalls$405.00 12'x.24 pipe corrals ' $290.00 24 x 24 pipe corals - $385.,00 12 x 12 tack room'' ' *$1'75100 , vered 12x,24 coPeorral_ c**$425.00 111 2 x,.12..box stall w/grooming $515.00 I • page 'two Jim Engle/increase March 28, 2000 *These Irateslhave not been raised since 1990 and it does not seem unfair to ask for a 1 twepty-five dollar increase. **Ful ly covered` and enclosed 121 x 24 pipe corral with bedding i Mn, it is always a pleasure working with you. It is our desire to continue making thisthe number one' facility in Southern California. 'Sincerely, \ ;Mary arren i ;''Own&iManager Huntington Central Park Equestrian Center, ' " CI , RCA ROUTING SHEET INITIATING DEPARTMENT: Community -Services Department SUBJECT: Approve Huntington Central Park Equestrian Center Fee --....._ -Increase COUNCIL MEETING DATE: April 17, 2000 1 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) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEVVED RETURNED FORWARDED Administrative Staff /(-� ) J ( ) Assistant City Adminis ator (Initial) City Administrator (Initial) ( ) -z; a); City Clerk ( ) E-,XPLANATION FOR RETURN OF ITEM: 7 HPGRN - C' I>v posy ..lvr. �c Council/Agency Meeting Held: /Z/2 a�S�Q. / rred/Continued to: Approved ❑ Conditionally Approved ❑ Denied tl J E,04)7 / ity Clerk's Signature Council Meeting Date: 12/21/98 Department ID Number: 98-045.2 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS +cz SUBMITTED BY: RAY SILVER, City Administrator 0V PREPARED BY: RON HAGAN, Director, Community ServicIV - . SUBJECT: APPROVE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASE Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should approval be given for an increase in Huntington Central Park Equestrian Center fees as requested by National Equestrian Centers, Inc.? Funding Source: Not applicable. Recommended Action: Approve the following monthly fee increases to boarders as requested by National Equestrian Centers, Inc.: Box Stalls including tack lockers from $360 to $385. Pipe Stalls, including tack lockers, from $255 to $275. Box Stalls with full grooming, including tack lockers, from $470 to $495. Double Pipe Corral, including tack lockers, from $340 to $365. Alternative Action(s): 1. Approve a fee increase 'based on the inflation rate of 3.6% per the Bureau of Labor Statistics Consumer Price Index which would increase Box Stalls to $373, Pipe Stalls to $265, Box Stalls with full grooming service to $487 and Double Pipe Stalls to $352. (See Attachment 1) 2. Approve a fee increase based on the 6.6% increase that the Orange County Fairgrounds Equestrian Center is instituting January 1, 1999. Huntington Central Park Equestrian Center rates would increase as follows: Box Stall to $384, Pipe Stalls to $272, Box Stalls with full grooming service to $501 and Double Pipe Stall to $362. (See Attachment 2) Analysis: National Equestrian Centers, Inc. has contacted the city to request the boarders' fees be increased at the Huntington Central Park Equestrian Center (HCPEC). Section IV.L of the Concessionary Agreement states: All rates for services and merchandise charged by the concessionaire shall be uniform at all times and seasons and subject to the approval of the City. The standard used to approve or disapprove prices shall be REQUEST FOR COUNCIL ACTIA MEETING DATE: 12/21/98 DEPARTMENT ID NUMBER: 98-042 the prevailing market price for the same grade of merchandise and services. The concessionaire's last approval for fee increases to borders was July 15, 1996. The concessionaire indicates that fee increases are being requested due to increases in expenses to operate and maintain the equestrian center. The minimum wage has increased from $4.25 to $5.25 per hour. Two years ago the HCPEC was paid $1,500 per month for its manure and hauled away at no charge. Because of green waste laws, they currently have to pay $3,000 per month for the manure to be hauled away. This is a cost differential of $4,500 per month. Feed costs have also increased by 15 percent. There has always been a concern by the Huntington Central Park Equestrian Center's Boarders' Committee regarding comparable facilities. After several years of comparing equestrian centers and stables in Los Angeles, Riverside and Orange County areas, it was finally determined that the Orange County Fairgrounds Equestrian Center (OCFEC), while not exact, is the best comparison in this immediate area. However, the Huntington Central Park Equestrian Center includes facilities such as open pipe stalls and an equestrian trail for use by boarders, not available at the county facility. The practice has been to take this issue of boarders' fees to the Huntington Central Park Equestrian Boarders' Committee as an "information item" only. This was done because the Boarders' Committee would have a conflict of interest with regard to increasing fees since they are the boarders who would have to pay these fees. The committee was notified by management of the proposed fee increases on October 28, 1998, at the committee's quarterly meeting. Since it has been determined that the Orange County Fairgrounds Equestrian Center, although not exact, is the best local comparison, these proposed fee increases were evaluated relative to the Fairgrounds. OCFEC is currently charging $365 for box stalls plus $15 for tack lockers for a total of $380. OCFEC only has box stalls, not outdoor pipe stalls. The manager of the OCFEC has indicated that as of January 1, 1999, this fee will be increased to $390, plus $15 for the tack lockers, for a total of $405. This is a 6.6% increase. This compares with the HCPEC's proposed rate increase as of January 1, 1999 of $385, including the tack lockers which is a 4.2% increase. The other proposed HCPEC percentage increases are listed in the Monthly Fee Schedule below along with the associated percentage increase of each fee. Staff has also provided a table for Alternative 2 that shows increases to the HCPEC rates based on the 6.6% increase at OCFEC. (See Attachment 2). The rate of inflation from July, 1996 to December, 1998 per the Bureau of Labor Statistics Consumer Price Index has been 3.6% for LA/Riverside/Orange County Region. This is an overall inflationary factor that is provided for comparison. Attachment 1 represents Alternative 1 HCPEC increases based on this inflation rate of 3.6%. As noted previously, the HCPEC management is indicating that their costs have increased above and beyond the 3.6%. HCPEC-FE.DOC -2- 12/14/98 11:40 AM REQUEST FOR COUNCIL ACTION MEETING DATE: 12/21/98 DEPARTMENT ID NUMBER: 98-042 Monthly Fee Schedule O.C. Fairgrounds As of 1/1/99 % Increase Current HCPEC Proposed HCPEC As of 1/1/99 % Increase Box Stall $390 + $15 tack box = $405 6.6 $360 (incl. tack box) $385 (incl. tack box) 4.2 Pipe Stall Not available N/A $255 (incl. tack box) $275 (incl. tack box) 7.8 Box Stalls w/full Grooming" Not available N/A $470 (incl. tack box) $495 (incl. tack box) 5.3 Double Stalls Not available N/A $340 (incl. tack box) $365 (incl. tack box) 7.4 "OCFEC does not offer tull grooming service. Note: Box stalls are protected stalls within a barn. Pipe stalls are stalls made of pipe that may or may not have a roof, but are outdoors. Environmental Status: Not applicable Attachment(s): 1 Table representing Alternative Action 1—Increased rates based on 3.6% inflation 2 Table representing Alternative Action 2—Increased rates based on 6.6% increase that OC Fairgrounds Equestrian Center is implement January 1, 1999 3 October 26, 1998 Letter from Mary Warren, General Manager, HCPEC 4 October 15, 1998 Letter from Mary Warren, General Manager, HCPEC 5 August 20, 1990 Memo from City Attorney re: Profit and Loss Statements/HCPEC Fee Increases RCA Author: HCPEC-FE.DOC -3- 12/15/98 3:37 PM ATTACHMENT 1 ALTERNATIVE ACTION #1 POTENTIAL HCPEC MONTHLY FEE INCREASES BASED ON 3.6% INFLATION Per Bureau of Labor Statistics Of LA/Riverside/Orange County Current HCPEC Fee Fee with 3.6% Inflation HCPEC Request Box Stall* $360 $373/mo $385 Pipe Stall* $255 $265 $275 Box Stall with full grooming* $470 $487 $495 Double Stalls* $340 $352 $365 *All fees include use of a tack box. ATTACH.DOC ATTACHMENT 2 ALTERNATIVE ACTION #2 POTENTIAL HCPEC MONTHLY FEE INCREASES BASED ON 5.3% OC FAIRGROUND INCREASE Current HCPEC Fee Fee with 6.6% Inflation HCPEC Request Box Stall* $360 $384/mo $285 Pipe Stall* $255 $272 $275 Box Stall with full grooming* $470 $501 $495 Double Stalls* $340 $362 $365 *All fees include use of a tack box. ATTACH.DOC Huntington Central Park . Equestrian Center 18381 Goldenwest Street ' Huntington Beach, CA 92648 \ - (714) 848.6365 1 , (714)'848-6858 - 6. : October 26, 1998 - , Jim Engle; Deputy. Director}_ - 4 Communityi Services F City of Huntington Beach. 2000 Main Street Huntington Beach,, Calif 92648' ; Re: Price increase \ -Dear Jim; r This letter is to confirm the rates we would like to increase to.on January'l, 1999- ' i. a Bok Stalls to $3,85.00 from $360.60 ' Upper Barn/Stalls with, full, grooming to $495.66 `from �470.00 12 x 24 pipecgrfals to $275.00 from $255'00 \ i 24 k 24 pipe corrals to 065.00 from 340..00 \ ' Thank -you, Jim. If -you have any questions, please contact me at (7.14) 848-6565. Sincerely, - \ v v Mary Warren ' General Manager 'Huntington Central ,Park Equestrian Center , rig Huntington Central Park Equestrian Center I�i�I l6dJcn��,.t stir,. 1 14I S.rti.l,;n; 1 141 October 15, 1998 Jim Engle; Deputy Director i-011111irinrty Services City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 RE: Rate increase Dear J inl, It has been two years since our last price increase. As you know labor is a major part of running the Equestrian Center and our labor costs have increased by 35%. Mlnlnlunl wage was raised from $4.25 to $5.75 in the last two years. Two _years ago Nve were being paid for our manure and having it hauled away, receiving $1500.00 per month. 13ccause of the green waste law that went into effect, we currently are having to pay $ 3,000.00 per month to have the manure hauled away. .lust in manure costs, it is a $4,500.00 d114crence per month. Feed has also gone up 15%. Our rent increases in the past have been based on the rent at the Orange County lull, Grounds. The Fair Grounds is currently charging $365.00 for box stalls plus $15.00 Ior tack lockers. We are currently charging $360.00 for box stalls and $255.00 for pipe corrals, and $340.00 for double stalls, including tack lockers. I have talked to Larry Gimple, manager ofthe Fair Grounds, and as ol'January 1, 1999, they will be charging $385.00 plus $15.00 for the tack lockers. , This is to request an increase in rental rates. We would like to'ancrease our box stalls to $385,00, pipe corrals to $27.F00, double pipe corrals to $365.00 (all including tack lockers) and O w.� MAi W`� -}— page two Jim Engle, rate increase 10/ 15/98 Please let me know at your earliest convenience when we can take this to the City Council. We would like to have these increases go into effect .January I, 1999. Sincerely, Mary Warren General Manager Huntington Central Park Equestrian Center TACHMENT #5AT r, e• We are advised that the above request for opinion is needed to address the issue of fee increases presently set for Council action an August 20, 1990. The subject of fee increases was discussed in our opinion of may �2, 1989, attached hereto for your convenience. We concluded then, and still conclude, that the standar<j for fee _ increases is the prevailing market price rather than the, financial condition of the Equestrian Center. Accordingly, the opinion on the issue of the confidentiality of the prozit and lass statements is not required for consideration of fee increases on August 20, 1990. Such opinion shall, howe-�er, be ,orward-''shortly under separate cover. City Attorney achment: Memaorandum re: H.B. Fques ria:i Center Fee Increases dated May 12, 1989 CITY CF . HUNTIN4GT0H OF-A.CH INTER -DEPARTMENT COMMUNICATION [M B. ENGLE irector of Community �rvices From GAIL H11'TTON .City Attorney Date opi- nion Regarding Profit August 20, 1990 and Loss Statements RLS # 90-598 INTEFt•DEPARTMENT COMMUNICATION .:4+1Ni1'nH;7�N BOFIMA.N Frorri . GAIL HUTTON %S DIRECTOR. OF' COMMUNITY SERVICES Ci7`Y ATTORNEY " =° ©ate :OPINION ZE±GARDING H.B.. EQUESTRIAN May 12, 1989 CENTER FEE ' TodREASE6 Ifthe fees requested by the .Equestrian Center are y i"scnabl'e customary, for like facilities, does the City � re: the 'right to disapprove them? 4 'SCUSSION: Section "L" of the concession .agreement., at .page provides' that "all ratbs .for services,... charged by ..01,06,' c.essi.ohaire shall be... subject to approval of City: The ..Ot.a.hd.ard used to approve or disapprove prices shall- be' the far the same. grade of merciiandi`6 :a;io .` iPk,AS i s. ADDED) :'•.;;:;7 ccordzngly, so long as the .prices requested are consistent i*, ..nth the .-Prevailing Market Price" the price l" be r, ;:j pproved. If .the prices requested are not consistent with tk.e 't; evai�-ing 'Market. Price" it -would 'likewise hold trixe, th4t f k* ey should. not be approved. Sjs: are adviS9d that: y he Concessionaire, and the Communit 'ervices Director will supply sufficient .information regardirg ;w +' p es support a finding with re market tie t:d. Spelt City Council must apply the Prevail.i'ng Market Price as ,) standard in approving or :disapproving proposed :prices. U� K!+IL HUTTON ATTORNEY � 241 }: 'C, Art DeLaLoza', Deptzty.City Attorney RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: APPROVE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASE COUNCIL MEETING DATE: December 21, 1998 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) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable 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: (8) 12/21/98 - Council/Agency Agenda - Page 8 E. CONSENT CALENDAR All matters listed on the Consent Calendar are considered by the City Council and Redevelopment Agency to be routine and will be enacted by one motion in the form listed. Recommended Action: Approve all items on the Consent Calendar by affirmative roll call vote. E-1. (City Council) Approve Maddy Local Appointive List Act (1999 Term Expiration Dates) (110.50) - Approve the 1999 Maddy Local Appointive List showing vacancies which will occur on city boards and commissions in 1999 and direct the City Clerk to post the list at the official posting locations (Huntington Central Library, Civic Center, Main Street Library). Submitted by the City Clerk (The Maddy List and notices of vacancies are also available at each library annex to inform the public of opportunities to serve on city boards and commissions.) [Approved 6-0 (Julien: Absent)] E-2. (City Council) Approve Construction Contract For The Marina High School Sidewalk Project - CC-1094 - Approve Bid Award To Nobest, Inc. (600.70) - 1. Approve the lowest responsive/responsible bid submitted by Nobest Incorporated, for the Marina High School Sidewalk Project; and 2. Authorize the Mayor and City Clerk to execute an appropriate construction contract in the amount of $57,398; and 3. Authorize the Director of Public Works to expend a total of $65,000 including the contract amount of $57,398, anticipated construction change orders of $5,740 and supplemental expenditures of $1,862. Submitted by the Public Works Director [Approved 6-0 (Julien: Absent)] E-3. (City Council) ADgrove Huntington Central Park Equestrian Center Fee Increase As Requested By National Equestrian Center, Inc. (340.20) - Approve the following monthly fee increase to boarders as requested by National Equestrian Centers, Inc.: Box Stalls including tack lockers from $360 to $385. Pipe Stalls including tack lockers from $255 to $275. Box stalls with full grooming, including tack lockers, from $470 to $495. Double Pipe Corral, including tack lockers, from $340 to $365. Submitted by the Public Works Director [Approved 6-0 (Julien: Absent)] E-4. (City Council) Adopt Resolution No. 98-96 & 98-97 Approving Program Supplements For CC-1086 & CC-1088 - Traffic Signalization - Bolsa Chica Street/Heil Avenue - Springdale StreetMlarner Avenue (600.20) - 1. Adopt Resolution No. 98-86 authorizing the Mayor and City Clerk to execute Program Supplement No. 004-M to Agreement 12-5181, modified 11/29/95, for the intersection of Bolsa Chica Street and Heil Avenue - "A Resolution of the City Council of the City of Huntington Beach Authorizing the Mayor and City Clerk to Execute Program Supplement No. 004-M to Agreement 12-5181, Modified 11129195, for the Intersection of Bolsa Chica Street and Heil Avenue." and 2. Adopt Resolution No. 98-97 authorizing the Mayor and City Clerk to execute Program Supplement No. 005-M to Agreement 12-5181, modified 11/29195, for the intersection of Springdale Street and Warner Avenue. - "A Resolution of the City Council of the City of Huntington Beach Authorizing the Mayor and City Clerk to Execute Program Supplement No. 005-M to Agreement 12-5181, Modified 11129195, for the Intersection of Springdale Street and Warner Avenue." Submitted by the Public Works Director [Approved 6-0 (Julien: Absent)] . Je CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK CALIFORNIA 92648 LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: c 7'1(JGt. f 71 / ? `l TO: J�D 552,�SOxS�lr� 7��r�s L, Na 7D 6oX /�zi S et »tom- 0/rg I rarrlF�rni�J City, State, Zip 9oA 7O Z ATTENTION: r-Ae1 /ty/�5 d- DEPARTMENTpn REGARDING:J�/jr/Nl'mi1/ ;P'4X-4 "t7 /%5 7;el.4N C',E1yT'P-k-% F� inVCweft J-'O� See Attached Action Agenda Item Date of Approval AzL / Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page t/ Agreement Bonds Insurance RCA Deed Other CC: Na= D�anment RCA/ Agreement Insurance Other _27) � yeasy re Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Risk Management Dept. Insurance Received by Name - Company Name - Date G:Followup/coverltr (Telephone: 714-536-5227 ,AN KOF AM ERICA - 00885-02357 638883 ACCOUNT NUMBER Arcgdia _�_ BRANCH Arq_4d14___r_-� CALIFORNIA� DATE October_12, 198-2 Better Built Enterprises 'Inc.------ --------- --- HASfFikIEDFPOSITEDINTHISBANK S*10 000.00* .. 1 .} DOLLARS 1 )O __�jty.st€_.Hunt ngtQn ,Beach - ------ -- 'Upon Vatu.rity and llpori'$urrpndendfThis Ce/{tifiCate,Rroperly,Endpr$, i" ) 1E i L l I ILI )11.0 1JL EiIw1RORT M�NpTIC'IQ �R ., E EUF�R,tSE:' nmiurdy GI !h;S ceruucate,s one year from dale. This certificate will be renewed naticatly tut a snnuat period unless (a) presented tot redemption within ten (10) days after a maturity date. -st at the rate ot-9-252% will be paid or credited in accordance with your instructions. :E IMPORTANT NOTICE ON REVERSE uthonzed Signature/Bank of America NT&SA D %O IIUNTINGTON CENTRAL -CARK EQUESTRIAN CENTER 18381 Goldenwcst Strect Huntington Beach, CA 92648 (714) 848-6565 (714) 848-6858 Fax June 26, 1996 To: All Boarders From: Mary Harris Re: Rate increase At this time, National Equestrian Centers, Inc., finds it necessary to increase the rental rates at the equestrian center. It has been eighteen months since our last increase and this is only our second increase since 1990. The following board rates will take effect August 1, 1996: 12 x 12 box stalls $360.00 Upper office stalls 470.00 12 x 24 pipe corrals 255.00 24 x 24 pipe corrals 300.00 All other prices (ie; hay, shavings, etc..) will remain the same. Thank -you, we appreciate your patronage. Sincerely, Mary Harris General Manager Huntington Central Park Equestrian Center HU INEiTON ( IINTRAL PARK EQUEAWIAN CE1V`I"ER PRICE INFORMATION 714/848-6565 18381 GOLDENWEST ST. 714/848-6858 FAX HUNTINGTON BEACH, CA OUR BOARDING FACILITY OFFERS: * Riding, turnout and lunging arenas * Lighted arenas * Western and English horse trainers and riding instructors onsite * Newly renovated arena footing (tennis shoe) * 12 X 12 box stalls with shavings * 12 X 24 pipe corrals * 12 X 12 tack rooms (extra) * Steinbergs Tack and Feed shop on the premises * Two feedings per day with alfalfa cubes (alfalfa hay is available for an additional charge) * Automatic watering system * Stall cleaning once per day Rentals - Box stalls and Pipe Corrals BOX STALLS Includes: Cleaning once a day Feeding twice a day Shavings as needed TRAILER PARKING SHAVINGS 1 Cu. Yd. - 1/2 load 2 Cu Yd. - Full load SAND/D&G 1/2 Scoop 1 Scoop HAY ► EWki:>-19ff441 $360.00 JPIPE CORRALS j $255.00 Includes: Cleaning once a day Feeding twice a day $35.00 EXTRAS SAWDUST $15.00 1 Cu. Yd. - 1/2 load $30.00 2 Cu Yd. - Full load $10.00 $20.00 $18.00 $35.00 Two Flakes per day $20.00 1 Flake $1.50 Three Flakes per day $50.00 1 Bale $11.50 Four Flakes per day $80.00 PRIOR TO MOVE IN, FIRST MONTHS BOARD AND A SECURITY DEPOSIT (EQUAL TO ONE MONTHS BOARD) MUST BE PAID IN FULL. A HEALTH CERTIFICATE IS REQUIRED ON ALL HORSES PRIOR TO MOVE -IN. NATIONAL EQUESTRIAN CENTERS, INC INCREASE IN EXPENSES 1990- 1996 HAY 1990 1996 % INCREASE MONTHLY INCREASE COMMENTS HAY CUBES $135. TON $157. TON 16% $2,200./MONTH ALFALFA HAY $110.TON $156. TON 40.9% $1.848./MONTH SHAVINGS $8.50/YARD $9.90NARD 16.5% $1,980./MONTH WASTE MATERIAL $.50 YD. PAID $1.00 YD PAID 100% $1,750./MONTH VENDOR PAID $.50/YARD IN 1990. WE PAID VENDOR $1.00IN 1994 LABOR $4.25 PER/HR $5.00 PER/HR 17.6% $1,320.00 INTEREST RATE ON DEBT 9% 11.0% 33% $2,000./MONTH INCREASE IN DEBT SERVICE CAPITOL IMPROVEMENT REQUIRED BY PLANNING COMMISSION $205,000.00 $1,794./MONTH EDISON $570./MONTH NEW LIGHTS-1990 PROPERTY TAX INCREASE $13,608.00 $15,249.00 $137./MONTH TOTAL INCREASE/MONTH $13,599. A DESCRIPTION SCHEDULED RENTS JAN 91- DEC 94 JAN 95- AUG 96 NEW RATE 127 BOX STALLS $320X= $40,640. $340X= $43,180 $360.X= $45,720 20 BOX STALLS $265X= $5,300. $285X= $5,700. $305X= $6,100. 09 BOX STALLS WITH GROOM $420:X= $3,780. $450X= $4,050 $470X= $4,230. 224 PIPE CORRALS $225X= $50,400 $240.X= $53,760, $255X= $57,120. 07 FOALING PENS $255X= $1,785. $280X= $1,960. $300X= $2,100. 02 FOALING PENS WITH GROOM $0 $450X= $900. $470X= $940.00 17 TACK ROOMS $125X= $2,125. $125X= $2,125. $125X= $2,125. 09 TACK ROOMS $150X= $1,350. $150X= $1,350 $150X= $1,350. 01 TACK STORE $400X= $400. $400X= $400, $450X= $450. GROSS INCOME $105,780. $113,425. $120,135. LESS EXPECTED VACANCY 10% $10, 578. $11, 342.50 $12, 013. PROJECTED GROSS INCOME $95,202. $102,082.50 $108,122. '4%t, J� g e>�.'. - r., Council/Agency Meeting Held: i24(o9,6 Deferred/Continued to: 2"Approved ❑ Condi i Wally Approv d Denied ity Clerk's Signature Council Meeting Date: 12/16/96 Department ID Number: CS 96-046 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrat —7—(-- - . PREPARED BY: RON HAGAN, Director, Community Service SUBJECT: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER PROPOSED FEE INCREASE FOR DOUBLE STALL Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should City Council approve a fee for HCP Equestrian Center boarders to utilize a double stall that will be constructed by the concessionaire from two single stalls? Funding Source: Not applicable. Recommended Action: Approve the proposal by the Huntington Central Park Equestrian Center concessionaire to construct double pipe stalls, at the request of boarders, for a fee of $340 per month. Alternative Action(s): Do not approve the proposed fee. Analysis: Mary Harris, General Manager of the Huntington Central Park Equestrian Center, has indicated that boarders are requesting double pipe stalls (24'X24'). This would be meeting some of the boarders' desire for a larger horse enclosure. A single pipe stall (12'X24') rents for $260 per month; therefore, a double pipe stall could, realistically, be as much as $520 a month. Mary Harris has requested that the City Council approve a more reasonable rate of $340 per stall for new double stalls. City Council approved a fee of $300 on July 15, 1996 for five existing foaling stalls that are double pipe stalls. Additional costs will be incurred for the new double stalls, and the concessionaire is asking for a slightly higher fee of $340. This issue was taken to the HCPEC Boarders Committee on October 23, 1996, and it was agreed that the $300 fee for existing and $340 fee for newly created double stalls was reasonable. Environmental Status: Not applicable 5 REQUEST FOR COUNCIL ACTIUN MEETING DATE: 12/16/96 DEPARTMENT ID NUMBER: CS 96-046 Attachment(s): November 11, 1996 Letter from Mary Harris 0021728.01 -2- 11/25/96 8:13 AM Huntington Central -Parka Equestrian Center \ \ 1 18381 Goldenwest Street Huntingtojt Beach, \GA 92648 / (714) 848-6565, / - (714�848-6858 /fax` \ `� November 11, 1 1996 Jini Engle;, Deputy Director \ ' Community Services` - pity of Huntington Beach.. 2000 Main St. Huntington Beach Calif , 92648- - ., -, , ,', / Re:. Double,pipe corrals Dear Jim The purpoose of this letter is to request an increase in the amount,we now charge for any new double corrals. I have had' many requests for converting our;12x24 pip"e corrals,' \ _pipe into Ax 24 pipe corrals, but due to the, fee we now charge, wefeasibly can not ` accorWdate our boarders. Below is what we currently charge -for a''24x24 pipe corral _ and what we woiild'like to charge; with councihapproval: Currently: 3300.00 With approval: $340.00 `\ ` ! , - \ 'Because we just hada'price increase, the 24x24 pipe corrals cuirently,ontfie premises Will '� /, v ` remain the same price of:$3'00.00 •per month. -. r - If you have any questions regarding this matter,, please call me at,(714)18481-6565. Tharik-you for your attention in this'matter: " • ' . 1 , . ='_ v Sincerely, 1Vlary. Harris �'- i \ \ General-1Vlanager. , - , 7" Huntington Central Park Equestrian Center ): ! \ 1 , 1, i \,j t Council/Agency Meeting Held: 7 %/5/9 4 Deferred/Continued to: ❑ Approved ❑ Conditionally Approved ❑ Denied 6ACity Clerk's Sign re Council Meeting Date: 7/15/96 Department ID Number: CS 96-032 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrat PREPARED BY: RON HAGAN, Deputy Director, Community Services SUBJECT: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASE Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Env!Wmental Status, Attachments) Statement of Issue: Should approval be given for an increase in the Huntington Central Park Equestrian Center fees? Funding Source: Not applicable. Recommended Action: CONCESSIONAIRE: Approve the monthly fee increases to boarders as follows: Box stalls whack box from $340 to $360; Box stalls w/groom from $450 to $470; Pipe stalls w/tack box from $240 to $255; Foaling pens from $280 to $300; and, Tack store from $400 to $450. or STAFF: Approve the monthly fee increase to boarders by the Consumer Price Ir*x df 3.2 percent as follows: Box stalls whack box from $340 to $351; Box stalls w/groom from $450 to $464; _ _ m Pipe stalls w/tack box from $240 to $248;, r; Foaling pens from $280 to $289; and, Tack store from $400 to $413. - LSD - C ;-> Alternative Action(s): Do not approve a fee increase at this time. Analysis: National Equestrian Centers, Inc., has contacted the city to request the boarders fees be increased at the Huntington Central Park Equestrian Center (HCPEC). Section IV.L. of the concessionaire's agreement states: i REQUEST FOR COUNCIL ACTION MEETING DATE: 7/15/96 DEPARTMENT ID NUMBER: CS 96-032 All rates for services and merchandise charged by the concession- aire shall be uniform at all times and seasons and subject to the approval of city. The standard used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services. The concessionaire's last approval for fee increases to boarders was December 19, 1994, and became effective January 1, 1995. The concessionaire indicates that the fee increases are being requested due to increases in expenses to operate and maintain the equestrian center. The concessionaire has recently improved the facility including $35,000 to landscape the eastern border of the property. Also, $20,000 has been spent on state of the art "air footing" for two arenas with plans to do more as funds become available. Boarders and the city have requested significant amounts of work to be done at the center and the concessionaire has moved forward to make these improvements. See attached maintenance and improvement items listed in Attachment 2. The repairs are substantially complete, but some issues are still being addressed. The concessionaire has significant expenses yet to be paid for capital improvements such as replacing the entire fire sprinkler system that was originally approved by the city, but is no longer functional or up to code. At the time the lease was awarded, the concessionaire was informed by the previous lessee that the building was connected to the sewer system; this is not the case and the concessionaire is required to connect the office building to the sewer. The city realizes that there are considerable expenses involved with the improvements and ongoing maintenance of the equestrian center. Staff, therefore, feels that the Consumer Price Index (C.P.I.) of 3.2 percent (see C.P.I. column below) cost of living increase based on the US Department of Labor, Bureau of Labor Statistics is reasonable. However, the increases as proposed by the concessionaire vary from 4.44 percent to 12.50 percent. The City Attorney has stated that the city cannot, unreasonably, keep the concessionaire from making these fee increases. The proposal for fee increases from the concessionaire is as follows: Description Present Increase OC Fairgrnd % Increase C I P 3.2% Box stalls w/tack box $340 $360 $365 5.88% $351 Box stalls w/groom 450 470 N/A 4.44% 464 Pipe stalls w/tack box 240 255 N/A 6.25% 248 Foaling Pens 280 300 N/A 7.14% 289 Tack Store 400 450 N/A 12.50% 413 There has always been a concern of the Huntington Central Park Equestrian Center Boarders Committee regarding comparable facilities. After several years of comparing equestrian centers and stables in the Los Angeles, Riverside and Orange County areas, it 0019797.01 -2- 07/03/96 11:21 AM REQUEST FOR COUNCIL ACTION MEETING DATE: 7/15/96 DEPARTMENT ID NUMBER: CS 96-032 was finally determined that the Orange County Fairgrounds Equestrian Center, while not exact, is the best comparison. However, the Huntington Central Park Equestrian Center includes facilities such as open pipe stalls and an equestrian trail for use by boarders, not available at the county facility. This issue of boarders' fees has not been taken before the Huntington Central Park Equestrian Center Boarders Committee. This was not done because the boarders committee would have a conflict of interest with regard to increasing fees since they are boarders. Environmental Status: Not applicable Attachment(s): 0019797.01 -3- 07/03/96 2:42 PM IIUNTINGTON CENTRAL, rARK EQUESTRIAN CENTER 18381 Goldemvest Street Huntington Beach, CA 92648 (714) 848.6565 (714) 848-6858 Fax June 19, 1996' Jim Engle; Deputy Director of Community Services City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 c. 1.iva:u Laic [ii::rcu3c . Dear Jim, At this time, we would like to request that you submit to the City Council our request for a rate increase, making the increase effective August 1, 1996. As you know, our last price increase was effective January 1; 1995. Below is a schedule of rents we now charge, the new rate increase, and what the Orange County Fair Equestrian Center charges. The Fairgrounds have been used as a basis for rate increases for the. past ten years. Description Pr6ent n rea.sT Fairgrounds Box stalls w/ tack box $340.00 $360,00 $365.00 Box stalls w/groom 450.00 470.00 n/a Pipe stalls w/tack box 240.00 255.00 n/a Foaling Pens 280.00 300.00 n/a Tack Store 400.00 450.00 n/a As you l::.otiY, ±i i, t.,e fequestrian-center has recently improved the facility considerably. Thirty-five thousand dollars was spent on the "east property line landscaping. Twenty thousand dollars has been spent on state of the art "air footing" for two arenas, with plans to do more as fund: become available. The City -has flooded the project with inspectors and required•replacemerit of previously inspected and approved capital improvements. Orange County Animal Control has rated this project above average as has many other city and county agencies. To keep this . facility running at the level expected by all concerned, the equestrian center requires this, price increase. -Please contact me at your earliest convenienc:, to let me:know when this request, will be on the, City Council agenda. page 2 Jim Engle- Deputy Director of Community Seryices r Rate increase < , \. 6/ 18/96 Thank -you for'your time in this.matter,-Jim. Your help is verymuch appreciated. Sincerely, / = Mary Harris, General Manager Huntington Central Park Equestrian Center" HUNTINGTON CENTRAL x-ARK EQUESTRIAN CENTER 18381 Goldenwest Street Huntington Beach, CA 92648 (714) 848-6565 ' (714) 848-6858 Fax July 3, 1996 Mr. Ron Hagan Director of Community Services City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Re: Rate increase Dear Ron, Attached is an analysis of major cost increases -the Equestrian Center has had since] 990. The centers expenses have increased by $13,599.00. per month while the revenue from rentals will have increased approximately $ 12,900, including the requested increase. As you are aware our price increases, as per our concession agreement, are based on rents being charged at similar facilities. The facility used for this comparison for the past 10 years has been the Orange County Fair Equestrian Center in Costa Mesa. If you need any other information regarding this matter, please contact me at (714) 848- 6565. Your help in this matter is greatly appreciated. Sincerely, Mary Harris General Manager , Huntington Central Park Equestrian Center Ate/ Elyse M. Barrett 20072 Cove Circle Huntington Beach, CA 92646 15 July 1996 RECEIVED FROM A PART OF T RE OR AND MADE _ Jc COUNCIL MEETING OF OFFICE OF THE CITY CLERK CONNIE BROCKWAY, CITY CLERK Huntington Beach City Council Meeting Date: 15 July 1996 Item: Huntington Central Park Equestrian Center Fee Increase Dept. i.d.: CS 96-032 Honorable Mayor Sullivan and City Council Members: I have been a boarder at the Equestrian Center for five and one- half years and a member of the Boarders Committee since 1994. This letter is :submitted to you to recommend against the proposed fee increases for the Huntington Central Park Equestrian Center that have come before you today. Besides the three specific arguments below, it is of concern to me that the concessionaire announced the fee increases to boarders in writing on June 26, and posted price information sheets in a brochure box on the office wall, .stating this increase would go into effect August 1 -- all well prior to today's discussion with you, the City Council, who decide such matters. Does this mean you have already approved such a fee hike and today's hearing is less than a formality? i j` Hoping that your `_Ionorable c::ouncil members at least waCit to follow procedure, please become aware of the following: In your "request for council action" materials is a description of the fees requested and :i rationale that includes "The concessionaire has recently IMPROVED the facility, including $35,000 to landscape the eastern border . . . $20,000 . . . state-of-the-art 'air footing' for two arenas . . and boarders and the city have required SIGNIFICANT AMOUNTS OF WORK to be done at the center. . ." You need to understand several facts: 1) The landscaping along Goldenwest St. (eastern border of property) was required by the city as part of the completion of the street widening project, and it is not yet completed, even though the city requested completion by November 1995. This landscaping was not done voluntarily. continued 15 July/Barrett page 2 2) There are seven riding arenas and .five turn -out corrals. The state-of-the-art "air footing" is installed in the two ji_lmping arenas only. These arenas cannot be used by the majority of boarders when any training, lessons or shows are in progress, or about 50 percent of any day of the week, or during winter evenings. Floodlights are fitted above only two arenas -that are open to the polo club and generic boarders and, at the .first sign of rain, the jumping arenas are locked, preventing anyone from using them. 3) ''Boarders and the city required significant amounts of work to be done. . ." Why? Because the center was not being maintained at basic levels of quality as required in the concessionaire's agreement, and upon ,your granting the previous feeincrease in .January, 1995. Basic maintenance means activities such as fixing broken boards in arenas; cleaning of weeds and dirt out of rain gutters around stalls; containment and hauling of manure three days per week; fixing broken hardware in grooming stalls and wash racks; controlling the rodent population; replacing broken hardware on arena gates, repairing the perimeter fence, and more. Among your attachments to your request for action is the 35-issue matrix of these basic maintenance items. Have you seen any other city concessionaire with a similar list? The point is: It required boarders constant contact with the city to make these chores get done --- and they are still not all done -- for instance the landscaping/trail along troldenwest and the repair,,/reinstallation of :dire sprinklers in the barns. Many of us came before you in the winter of 1994 to point out the above -mentioned inattention to detail; we are doing so again. That City Staff has recommended an alternative fee increase tied to the Consumer Price Index is an interesting compromise. It tells me that, in the present economic climate, the "prevailit;; mF,rket rate'' is not the one dictated by the concessionaire's fee proposal or the rates at the Orange County Fairgrounds, which has been inappropriately deemed the facility most comparable to HCPEC . For a boarder with a horse in a pipe stall (the majority of horses at HCPEC are in pipe stalls), this year's fee increase, combined with last ,ear's increase .represents more than a 12 percent fee increase in 24 months. Have you received a pay raise of 12 percent in the same time period? We haven't either. continued 15 July/Barrett page 3 I have watched my board increase steadily from August of 1990, when I first visited the equestrian center to November 1990 when I moved my horse in and on to 1995 -- all seemingly without regard for city regulations or boarders' needs until the "chores matrix" came about this spring. The fees on a pipe coral have risen as follows: Aug. 190 $200 Nov. '90 $215 Jan. '92 $225 .Jan. '95 $240 Please, give us a break -- keep the lid on fees at the equestrian center, and make the .concessionaire follow up on basic maintenance and safety chores. Sincerely, Elyse M. Barrett Cc;eVrra eX '-5 J.S. DEPARTMT1T OF LABOR, BUREAU OF LABOR STATISTICS, FAXSTAT Phone 415-975-4567 Note: To receive FAXSTAI -xplanation on how to compute a percentage change between any two peirods request Faxstat Code #9255. To request CODE nformation on using the CPI as an escalator on rental agreemant and other contracts request FAXSTAT Code #9256 9230 LOS ANGELES-ANAHEIM-RIVERSIDE 06/12/96 Consumer Price Index, All Items, 1982-84=1 00 for All Urban Consumers (CPI-U) YEAR JAN FEB MARCH APR►L MAY JUNE JULY AUG SEPT OCT NOV DEC ANNUAL AVERAGE 1976 55.7 55.4 55.5 55.5 56.3 56.5 57.1 57.4 57.8 58.0 58.3 58.5 56.9 1377 59.2 59.7 59.8 60.2 60.4 60.8 61.1 61.1 61.5 61.5 61.9 62.4 60.8 1978 62.8 63.1 63.4 64.2 64.8 65.5 65.8 66.0 66.8 66.9 67.1 66.7 65.3 1979 67.6 68.3 69.0 70.3 71.4 72.1 72.7 73.6 74.7 75.1 75.9 77.2 72.3 1980 78.7 80.4 81.7 82.8 84.3 84.7 84.2 83.7 84.5 85.5 86.5 87.6 83.7 1981 87.8 88.5 69.1 89.9 90.5 90.7 92.1 93.0 94.5 95.2 95.3 95.5 91.9 1982 96.7 96.6 96.9 97.0 97.2 98.2 97.9 97.9 37.5 38.0 97.6 96.6 97.3 1983 96.7 97.1 97.2 98.0 98.8 99.4 99.7 99.9 100.3 100.5 100.4 100.8 99.1 1984 101.2 101.6 101.8 102.5 103.4 103.4 103.5 104.5 105.0 105.5 105.5 105.3 103.6 1985 105.9 106.3 106.5 106.9 108.0 108.1 108.8 109.6 109.6 110.4 110.0 110.4 108.4 1986 110.6 110.5 111.1 110.6 111.5 1121 112.0 112.0 113.3 113.8 113.0 112.7 111.9 1987 113.4 114.7 115.5 116.0 116.8 116.5 116.5 117.3 118.0 118.6 118.2 118.5 116.7 1988 118.9 119.7 120.6 121.1 12Z 0 122.0 122.1 122.6 123.4 124.0 124.1 124.2 122.1 1989 124.6 125.5 126.2 127.2 128.3 128.7 129.0 128.9 130.1 130.0 130.0 130.6 128.3 1890 132.1 133.6 134.5 134.2 134.6 135.0 135.6 136.3 137.7 138.7 138.'� 13y.2 l 1981 140.0 138.9 139.7 14U.7 140.8 140.8 141.5 141.7 142.6 142.9 143.5 143.1 141.4 1 yy2 144.3 144.9 145.5 145.8 146.0 146.2 146.7 146.9 147.4 148.4 148.2 148.2 146.5 1993 149.2 150.0 149.8 149.9 150.1 149.7 149.8 149.9 150.2 150.9 151.6 151.9 150.3 Q 6 5 1995 154.3 154.5 154.6 154.7 155.1 154.8 154.5 154.4 154.E 155.2 154.4 154.E 154.tO'- jj5�31996 155.7 156.2 157.3 157.7 157.5C�S a5le a over a year a increases. n entry for eb. I J82 mica es the percentage increase rom F a 6. 1 99T to a c•:_ �r,"� 777 e;:•yn.p a 1977 6.3 7.8 7.7 8.5 7.3 7.6 7.0 6.4 6.4 6.0 6. 5 7 b ., 1978 6.1 5.7 6.0 6.6 7.3 7.7 7.7 8.0 8.6 8.8 8.4 by 7.4 1979 7.6 8.2 8.8 9.5 10.2 10.1 10.5 11.5 11.8 12.3 13.1 15.7 10. i 1980 16.4 17.7 18.4 17.8 18.1 17.5 15.8 13.7 13.1 13.8 14.0 13.5 15.8 1981 11.6 10.1 9.1 8.6 7.4 , 7.1 9.4 11.1 11.8 11.3 10.2 9.0 9.8 1982 10.1 9.2 8.8 7.9 7.4 8.3 6.3 5.3 3.2 2.9 2.4 1.2 5.9 1983 0.0 0.5 0.3 1.0 1.6 1.2 1.8 2.0 2.9 2.6 2.9 4.3 1.8 1984 4.7 4.6 4.7 4.6 4.7 4.0 3.8 4.6 4.7 5.0 5.1 4.5 4.5 1985 4.6 4.6 4.6 4.3 4.4 4.5 5.1 4.9 4.4 4.6 4.3 4.8 4.6 1986 4.4 4.0 4.3 3.5 3.2 3.7 2.9 2.2 3.4 3.1 2.7 2.1 3.2 1987 2.5 3.8 4.0 4.9 4.8 3.9 4.0 4.7 4.1 4.2 4.6 5.1 4.3 1988 4.9 4.4 4.4 4.4 4.5 4.7 4.8 4.5 4.6 4.6 5.0 4.8 4.6 1989 4.8 4.8 4.6 5.0 5.2 5.5 5.7 5.1 5.4 4.8 4.8 5.2 5.1 1390 6.0 6.5 6.6 5.5 4.9 4.9 5.1 5.7 5.8 6.7 6.8 6.6 5.9 1931 6.0 4.7 3.9 4.8 4.6 4.3 4.4 4.0 3.6 3.0 3.3 2.8 4.0 1392 3.1 3.6 4.2 3.6 3.7 3.8 3.7 3.7 3.4 3.8 3.3 3.6 3.6 1933 3.4 3.5 3.0 2.8 28 2.4 2.1 2.0 1.9 1.7 2.3 2.5 2.6 1994 2.0 1.5 1.8 1.4 0.9 1.1 1.3 1.4 1_.7 1.7 0.9 1.0 1.3 1995 1.4 1.5 1.4 1.8 24 2.3 1.8 1.6 1.2 1.2 1.0 0.8 1.5 1996 0.9 1.1 1.7 1.3 1.5 A 7f. 52 AAA-1f-#1Vx 1-- N I s HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER ISSUE OVERVIEW REPORT JULY 1, 1996 UPDATE \ Listed below are issues that have been raised by boarders or city staff and comments from HCPEC management, HCPEC Boarders Committee's and city. The original report (including committee comments) was prepared by the city and reviewed by Mary Harris, HCPEC management, and Barbara Marshall, Chair of the HCPEC Boarders Committee. This report provides an update on HCPEC's efforts to address the issues. ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE 1. TB x-rays for staff Employees have been x-rayed Committee satisfied Confirmed--HCPEC Management has provided copies of medical reports 2. Visitors are to sign in Sign -in board and visitors sign outside of Concern expressed that public climbs . Confirmed --visitors sign and check - upon arrival office the fence to get into HCPEC and comes in board into contact with the horses. . City has printed 1,000 signs "Private horses, look, but please do not touch or feed." These will be made available to boarders at HCPEC office • Management needs to add signs on perimeter fence regarding trespassing 3. Public Rest Rooms a. Repair sinks a. Completed a. Committee satisfied a. Confirmed b. Paint interior b. Completed b. Committee satisfied b. Confirmed c. Daily cleaning c. Scheduled twice a day c. Committee satisfied c. Confirmed d. Completed as requested by committee d. Committee concerned about open d. Confirmed --Trash cans have tops trash can in rest room. or lids e. Confirmed --City asked management to add signs in Men's rest room asking public not to put used toilet paper in trash cans (English and Spanish) N Y Paqe Two 7/1 /96 Uodate ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE 4. Need "quick release" on all cross Completed Concern about some of the older chains Completed, including replacing chains ties on cross ties at Row A/B 5. Electrical problems City electrical inspector made site visit Committee satisfied Completed --Inspector's report on file and reported facility passed inspection except for some minor maintenance issues which HCPEC management has addressed 6. Manure not removed three times Manure removed everyday except Committee satisfied that this not an Completed —Receipts for last three per week per agreement Sundays, receipt provided as proof issue; the manure IS removed months on file 7. Employees not identified T-shirts with staff numbers purchased to Committee liked numbered T-shirts on Confirmed address this issue staff 8. Wet areas from leaking drinkers Checked every drinker and they are now No one aware that this was a problem • Confirmed --City noted drinkers spot constitute mosquito breeding on in good working order NOTE: Some checked and none leaking grounds horses play with drinkers causing wet . Confirmed --Border and Schwietzer's areas; Border and Schwietzer stalls stalls checked (per their phone checked I I request) 04 Paqe Three 7/110r, 1 Ir,,4,+� ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE 9. Rodents HCPEC management has worked with Committee feels management is doing a . Confirmed —Preliminary report O.C. Vector Control in the past years to good job in this area, but that it is provided by Vector Control. Follow - address this problem. Contact made with impossible to totally eliminate rodents at up report requested from Vector Vector Control to address current an equestrian center that has hay and Control problem. grain; it was suggested that rodent . HCPEC putting out squirrel bait to holes be filled with dirt and suggested address problem cats on premises might help. 10. East side landscaping not Landscaping scheduled for completion by Committee satisfied Work has almost been completed completed end of May, 1996; there was a delay to (80%). Working with city's Public determine who is responsible for trail Works Dept. inspector to address last of (HCPEC or city). City is responsible, but issues in field HCPEC will fund with reimbursement by city in order to move forward with landscaping project 11. Public Works permit See City Comments for updates Question if it is new wash rack or one Items a, b--HCP management getting a. Fire hydrant by Row F bids; complete work by end of August b. Office to be on sewer system Item c--work in progress (see #10) not septic tank Item d, f—same item; HCP managment c. Landscape east side getting bids to centrally locate all wash d. Install sewer pump station racks as most cost effective solution; e. Complete curb and parking lot complete work by end of August improvements Item a --staff confirms Planning f. Connect new wash rack to Commission condition removed. sewer pump station N Page Four 7/1/96 Update ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE 12. Fire sprinkler system System was approved by the city when No comments regarding sprinkler Sprinkler system is being addressed by originally installed, but some breaks system; there was discussion regarding HCPEC and Fire Department; HCPEC now; HCPEC management will placing hoses by pipe stall rows or by out to bid; work anticipated to be Ireported work with city Fire Department officials to office; no conclusion because of completed in August at a cost of determine correct solution committee's concern hoses would be $35,000 used by boarders improperly (i.e., wash- ing horses in middle of row) 13. Grading in barn area is not being HCPEC management only aware of Wash racks cause the problem; improve Confirmed --Barn 3 inspected after a maintained problem with Barn 3; Steps taken to grading or gravel might improve rain and okay; gravel added to areas correct problem; management has added situation and more will be added as necessary gravel to some sections of HCPEC and (per HCPEC management) will explore expanding gravel to other areas (per committee's request) 14. Poor quality wood shavings HCPEC buys from Long Beach Shavings Shavings sometimes not as good as at Confirmed--HCPEC management Co. which supplies to other equestrian other times; suggested that manage- contacted company; company indicated centers ment contact shavings company to it would address problem. make it aware of the problem 15. Trainers, farriers, etc., must have HCPEC management has received proof Committee concerned that if farriers, City checked requirements with city business license of business licenses from trainers veterinarians, etc. are negatively Business License Division of impacted, (must have license) they will Treasurer's Office and license is not provide the service at HCPEC required per Municipal Code Section because they work in several cities 5.08.010 16. No alcohol on premises Management has made appropriate con- Committee satisfied City has approved for special events tact with individuals alcohol is not only permitted except at approved special events Paqe Five 7/1/96 Uodate ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE 17. Eliminate standing water by HCPEC management put in curb to Committee satisfied Confirmed --curb will help minimize wash rack located between address problem problem barns by Rick Baer's office Confirmed --City asked HCPEC management to post signs for boarders to wash horses only in wash racks; completed 18. Bull Pen Repairs --reattach HCPEC management has fixed door Committee previously asked HCPEC to Confirmed rubber at bottom of pen; repair latches, raked uneven areas and made check inside latch too; raking uneven broken boards; repair exterior pen safe. Cosmetic improvemnets to be areas would correct drainage problem latch made in future 19. Stall 347--Top wood rail not Complete Committee satisfied Confirmed attached and unsafe 20. Arena 3, 4 & 5--fix gates and Complete Committee feels all three gates at each Confirmed latches; 2 gates should be arena need to be operational for shows operational; 3rd gate could be eliminated at each arena 21. Arena 3--fix broken wood fence Complete Committee satisfied Confirmed slats 22. Judge's Booth by Arena 3-- Complete Committee satisfied Confirmed remove portable electrical box or build storage unit for it 23. Metal safety railings (fence) west Complete Committee satisfied Confirmed of barn 3 needs to be fixed Paae Six 7/1/96 Update ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE 24. Check & replace rubber matting In process Good idea Completed where necessary at wash racks 25. Row F--repair metal roof edge on In process Committee satisfied HCPEC looking for company to make west side metal edge; to be completed by end of August 26. Wash rack by Row F needs Completed; changed entire drain Committee satisfied Confirmed improved drainage COMMITTEE ADDED THE FOLLOWING NEW ISSUES: ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE 27. Repair faucet between Rows K Complete Issue raised by committee Confirmed and L so that it can be used 28. Committee asked that an Determining best option, then will Issue raised by committee This is above and beyond issue of emergency light be added complete correcting problems at HCPEC; HCPEC behind riding school for management has indicated it will do this emergency night visits by when funding is available (before the veterinarians end of the year) 29. Committee asked if a cross tie Determining best option, then will Issue raised by committee This is above and beyond issue of could also be added by complete correcting problems at HCPEC; HCPEC school management has indicated it will do this when funding is available (before the end of the year) Page Seven COMMITTEE ADDED THE FOLLOWING NEW ISSUES: (CONT.) 7/1/96 Update ISSUE MANAGEMENT'S COMMENT/ACTION COMMITTEE COMMENTS CITY COMMENT/RESPONSE Confirmed 30. A committee member felt that A check will be done on monthly basis Issue raised by committee member; there should be a check for committee comment was that everyone protruding nails at arenas; could help with this issue another member felt that everyone should be able to help with this problem 31. Roof gutters should be kept Complete Issue raised by committee Confirmed clean and replaced as needed 32. Goalie cage wall in Polo arena Complete Issue raised by committee Confirmed should be repaired 33. Suggestion box at office Night drop available in both main office Issue raised by committee Confirmed --including signs identifying and service center; will add sign to use as suggestion box suggestion box 34. Need handicapped parking and New request; accessible port -a -potty Issue raised by committee HCPEC management is providing rest rooms to be accessible to provided by Row O; parking will be accessible portable rest room for handicapped addressed in future by restriping parking Therapeutic Riding School and other ° spaces need for disabled parking boarders; HCPEC management will paint & sign handicapped parking spaces by end of August. 35. At end of Row P on metal pipe In progress Issue raised by committee Confirmed that separates area from parking lot, add sign "Do not tie horses to railing" N • RECDVEc REQUE� r" FOR CITY COUNCi._ ACTION 6rY r �.n' ,;-r- -,F HUNTI!iG?';,r' A Fi, t AI 1p. Date December 19, 1994 � c + � d i s9�he Honorable Mayor and City Council APPROVED BY CITY COUNCIL ubmltte t�: Michael Uberuaga, City Administrators$2� Submitted by: '� -^-�---- 19� Ron Hagan, Director, Community Service C:R/ Prepared by: ri�E1 R!� HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER Subject: FEE INCREASES Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: ,( STATEMENT OF ISSUE The Huntington Central Park Equestrian Center concessionaire has requested fee increases. RECOMMENDED ACTION Approve the proposed fee increases as presented by the Huntington Central Park Equestrian Cen- ter concessionaire. ANALYSIS National Equestrian Centers, Inc., has contacted the city to request that boarders' fees be in- creased. Section IV.L. of the concessionaire's agreement states: All rates for services and merchandise charged by CONCESSIONAIRE shall be uniform at all times and seasons and subject to the approval of CITY. The concessionaire's last approval for fee increases to boarders was November 18, 1991, and went into effect January 1, 1992. The fee increases are being requested due to increases in expenses to operate the equestrian center such as the costs for manure removal and flakes of hay. The Con- sumer Price Index has risen 9.07 percent from January, 1991, to September, 1994, per the Administrative Services Department records for the Los Angeles -Anaheim -Riverside area. Listed below are the existing fees, proposed increases for the Huntington Central Park Equestrian Center and the Orange County Fairground Center: ITEM 12 x 12 box stall with tack locker 12 x 24 pipe corral with tack locker HCPEC CURRENT FEE $320 $225 HCPEC PROPOSED FEE JANUARY, 1995 $340 $240 ORANGE COUNTY FAIRGROUND FEES CURRENT FEE JANUARY, 1995 $340 ($325 stall plus $15 locker) No pipe stalls $365 ($350 + $15) I0MR P10 5/85 December 19, 1994 Page two HCPEC HCPEC PROPOSED FEE ORANGE COUNTY FAIRGROUND FEES ITEM CURRENT FEE JANUARY, 1995 CURRENT FEE JANUARY, 1995 2 flakes of hay per $15 $20 N/A NA/ day* 3 flakes of hay per $45 $50 N/A N/A day* 4 flakes of hay per $75 $80 N/A NA/ day* Trailer parking $-0- $35 $35 $35 24 x 24 pipe corral $245 $280 No pipe stalls N/A with tack locker Show barn $420 $450 N/A N/A *Note: Stall rental fee includes $50 for hay cubes. If a boarder wants flakes of hay, the $50 credit is applied to the cost of flakes. The fee indicated above is the additional cost above the $50 credit. On October 26, 1994, the Huntington Central Park Equestrian Center Committee reviewed the fees, but took no action. This is a difficult issue for a boarders' committee to address since it directly affects them. One of the primary issues raised by the boarders was the issue of comparable facilities. In past years, a variety of equestrian centers and stables was surveyed; however, the committee felt that the survey provided a skewed picture because facilities and services were not necessarily comparable. Three years ago, the committee decided upon Orange County Fairgrounds as the most comparable facility since it is in the immediate area and a government -operated facility. At the October, 1994, meeting, it was pointed out that even this facility is not directly comparable, so this makes surveying very difficult; however, this comparison of Orange County Fairgrounds and Huntington Central Park Equestrian Center is provided in Attachment 1. The consensus of the group is that tying the fees directly to the Consumer Price Index for this area would be the most equitable method in determining fee increases in the future. FUNDING SOURCE Not applicable ALTERNATIVE ACTION Do not approve the fee increases. December 19, 1994 Page three ATTACHMENT 1. Fairgrounds/Equestrian Center Survey and Percentage Increases 2. Mary Harris' letters re: Proposed Fee Increases 3. October 27, 1994, Huntington Central Park Equestrian Center Committee minutes MTU:RH:am Attachment 1 HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE COMPARISON HCPEC HCPEC PERCENTAGE ORANGE COUNTY FAIRGROUND FEES ITEM CURRENT FEE PROPOSED FEE INCREASE CURRENT FEE JANUARY, 1995 JANUARY, 1995 12 X 12 box stall $320 $340 6.25 $340 (325 stall plus $15 $365 ($350 + $15) with tack locker locker) 12 x 24 pipe corral $225 $240 6.67 No pipe stalls N/A with tack locker 2 flakes of hay per $15* $20 ** N/A N/A day 3 flakes of hay per $45* $50 ** N/A N/A day 4 flakes of hay per $75* $80 ** N/A N/A day Trailer parking $-0- $35 --- $35 $35 24 x 24 pipe corral $245 $280 18.4 No pipe stalls N/A with tack locker Show barn $420 $450 7.1 N/A N/A * Cost for flakes of hay above $50 credit included in stall rental fee for feed. ** COST PER FLAKE PERCENTAGE > (INCLUDING $50 CREDIT) CURRENT PROPOSED INCREASE rt 2 Flakes $65 $70 7.7 0) 3 Flakes 95 100 5.3 4 Flakes 125 130 4.0 r� Note: Stall rental fee includes $50 for feeding a horse hay cubes. If a boarder wants the horse to be fed flakes of hay instead of cubes, the rt $50 credit is applied to the cost of flakes. pp � The fee indicated above with asterisk (''� is the additional cost above the $50 credit. Percentages ~ of increases in the lower section are based on total cost of flakes (**). Attachment 2 HUNTINGTON CENTI 1, PARK EQUESTRIAN CENTER 18381 Goldenwe8t Blvd. Hunungton Beach, CA 92648 (714) 848-6565 October 14, 1994 Jim Engle Deputy Director, Community Services City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Re: Price increase on box stalls and pipe corrals Dear Jim, As you know, the Equestrian Center has not raised the price of stalls since January of 1992. Due to increased costs of running this facility, we find it now necessary to raise our board rates. The following are the prices we would like approved by City Council as soon as possible so that we may increase our board rates by January 1, 1995. These reflect only a 2.301 increase per year. 12 x 12 box stalls with tack lockers at $340.00,. currently $320.00. 12 x 24 pipe corrals with tack lockers at $240.00, currently $225.00. The Orange County Fair Grounds is currently charging the above amount of $340.00 for their box stalls with tack lockers. If you need further information, please give me a call at (714) 848-6565. Thank -you, Jim, for your time in this matter. Sincerely, Mary Harris General Manager Huntington Central Park Equestrian Center HUNTINGTON CENIOL PARK EQUESTRIAN CENTER 18381 Goldenwest Blvd. Huntington Beach, CA 92648 (714) 848-6565 October 14, 1994 Jim Engle Deputy Director, Community Services City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Re: Price increase on miscellaneous services Dear Jim, The following are some services that we supply to our customers. At this time, due to increases in our costs, we need to adjust the price of these services. * Two flakes of Hay per day (in lieu of cubes) at $20.00 additional per month, currently $15.00 per month. * Three flakes of Hay per day (in lieu of cubes) at $50.00 additional per month, currently $45.00 per month. * Four Flakes of Hay per day (in lieu of cubes) at $80.00 additional per month, currently $75.00 per month. * Trailer parking at $35.00 per month, currently $no charge * 24x24 pipe corrals with tack lockers at $300.00, currently $245.00 (last price increase in October 1990) * Show Barn at $450.00, currently $420.00. This barn stall includes full grooming, turn -outs and hot walker with use of a 12 x 12 tack room. If you need any further information, please give me a call at (714) 848-6565. Thank -you, Jim, for your time in this matter. Sincerely, Huntington Cen ral Park Equestrian Center Attachment 3 MINJTES HCP EQUESTRIAN CENTER COMMITTED Wednesday, October 26, 1994 City Hall, Room B-7 2000 Main Street Huntington Beach, CA 92648 MEMBERS PRESENT: Arter; Barrett; Berman; Bowland; Crawford; Cutler; Dekker; Ippolito; Marshall; Meyer; Roberts; Smith; Thoman; Van Holt; Winters (alternate for Hall) MEMBERS ABSENT: Bell (excused); Capalbo (unexcused); Carlson (excused); Hall (excused); Ryan (unexcused) MANAGEMENT PRESENT: Mary Harris STAFF PRESENT: Jim B. Engle; Karen Kaufman APPROVAL OF JULY 27, 1994 MINUTES - Chairman Marshall requested approval of the minutes from the last meeting. MOTION: MOVED BY MEYER AND SECONDED BY SMITH, THE MINUTES OF THE JULY 27,1994 MEETING BE APPROVED. MOTION PASSED .UNANIMOUSLY. PUBLIC COMMENTS: Jeff Lace of Row K questioned why the proposed fee increase for the 24' x 24' corral is a greater percentage increase than the proposed fee increases for the 12' x 12' box stalls or the 12' x 24' pipe corrals. He stated that he conducted a brief survey which indicated that fees charged for 24' x 24' pipe corrals at other Orange County equestrian centers are considerably less. Norma Ankerstar of Barn I compared boarding fees of other equestrian facilities and questioned why HCPEC's boarding fees are higher than other comparative facilities. She also inquired about the expenditure of Play Day revenues. NEW BUSINESS INTRODUCTION OF NEW REPRESENTATIVES - Marshall announced that she will continue as a representative of Row E for her third term, and Annette Berman is the new representative for Rows N & O. ELECTION OF VICE CHAIR - After a brief discussion, the following motion was made: MOTION: MOVED BY DEKKER AND SECONDED BY VAN HOLT, MEYER BE ELECTED AS VICE CHAIR MOTION PASSED UNANIMOUSLY. HCP EQUESTRIAN CEN" R COMMITTEE MINUTES OCTOBER 26, 1994 PAGE TWO PROPOSED FEE INCREASES - Van Holt indicated that several of the boarders she represents felt that comparing HCPEC fees to Orange County Fairgrounds Equestrian Center fees was not a fair comparison. Several amenities -not available at HCPEC are included in the current fees at the Orange County Fairgrounds Equestrian Center. Van Holt also indicated a cursory survey she conducted of Orange County equestrian centers revealed that HCPEC charges more for pipe stalls than other equestrian centers. In response Harris stated that this is the first fee increase in three years; and because her costs have gone up, she needs to raise the fees to provide better service. Harris also indicated that the Orange County Fairgrounds Equestrian Center is subsidized by the state, and their fees will increase the first of the year and will be higher than those requested for HCPEC. HCPEC also has a trail system that is not available to fairground boarders. Van Holt also stated that several boarders have expressed concern regarding the state of disrepair and the lack of regular maintenance at the center. It was the consensus of the committee that, although they may understand the necessity of raising the fees, management needs to improve maintenance and inspection of the center needs to be conducted on a more regular basis. Harris agreed to make more regular inspections of the center; and in a meeting that day with city staff, Harris also agreed to finish the landscaping, the perimeter fencing and to explore the possibility of composting to insure the regular removal of manure. Meyer suggested that management's financial records be available to committee members so they can better understand the costs involved in running an equestrian center, and perhaps make some suggestions. Engle indicated that those records are not available to the public. Engle also stated that management has a right per the concessionaire's agreement to request a fee increase through City Council. The City receives an annual audit statement from a private consultant. Staff will notify the committee of the date the fee increase will go before City Council so they may have the opportunity to address the council. Dekker expressed concern about cars continuing to speed in the back rows of the center, and she also indicated that the 5 minute loading zone signs have not been effective in deterring boarders from parking in that area. The committee discussed enforcement alternatives. Engle stated that he will check to see if the police can periodically ticket that area and will report back to the committee at the next meeting. Roberts inquired about the availability of sawdust and also suggested that management tie fee increases to a Consumer Price Index so boarders could anticipate fee increases. He expressed concern about the impact fee increases would have on the trainer with multiple horses and trailers as well as the boarder with a single horse. Other committee members expressed concurrence with the idea of tying fee increases to the C.P.I. OTHER BUSINESS NEWSLETTER UPDATE - Dekker encouraged the committee to submit articles for the newsletter. She stated that the next two deadlines to submit articles are October 31, 1994 and January 31, 1995. Van Holt suggested that a schedule of events for the center be included in the newsletter, and extra copies be made available to boarders. Dekker also suggested that the agenda be posted at the equestrian center prior to the meeting, and the deadline to submit an item for the agenda be reduced to two weeks prior to a meeting. •' HCP EQUESTRIAN CEN" _'� COMMITTEE OCTOBER 26,1994 MINUTES PAGE THREE ITEMS DISTRIBUTED TO COMMITTEE: ENGLE'S OCTOBER 13, 1994 MEMO JULY 27, 1994 MINUTES UPDATED REPRESENTATIVE/ALTERNATE ADDRESS/PHONE LIST HARRIS' OCTOBER 14, 1994 LETTERS ENGLE'S MEMOS REGARDING PROPOSED FEE INCREASES BY HCPEC MANAGEMENT EQUESTRIAN CENTER MANAGEMENT UPDATE/ANNOUNCEMENTS - Harris announced that there will be a special Christmas event at the equestrian center, and Dekker commended Harris on the new dressage area. NEXT REGULAR MEETING JANUARY 25, 1995 ADJOURNMENT Meeting adjourned at 7:55 p.m. Submitted by, je�puIN Q5� B. ENGLE Director, Community Services ty eeation, Beaches and Development BY: Karen Kaufman, Recording Secretary JBE:kk 0 REQUE.. r FOR CITY COUNCIL ACTION 926- ?d Date March 1, 1993 Submitted to: The Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrator Prepared by: Ron Hagan, Director, Community Services A+' Subject: ELLIS/GOLDEN WEST QUARTER SECTION �rn� EQUESTRIAN FACILITIES Consistent, with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a request to provide equestrian facilities in the southwest Ellis/Golden West quarter section for use by the residents and general public. RECOMMENDATION 1. Approve utilizing the $108,000 in equestrian bonds provided by the residential developer in the Ellis/Golden West quarter section for acquisition and development of land therein for equestrian facilities with the stipulation that the home owners associations assume the liability and operate such facilities as is the case with the existing equestrian trails. 2. Designate the triangular section noted on Attachment I as the site for the equestrian facilities. ANALYSIS Residents from the southeast Ellis/Golden West quarter section have requested that equestrian facilities, such as an arena, be developed adjacent to the existing equestrian trails. Staff, including the city's Risk Manager, have reviewed the request and feel that such a city owned and operated, but unsupervised facility would be unacceptable from a liability and maintenance perspective. An alternative would be to have the home owners associations assume the total responsibility for such a facility as is the case with the horse trails. Some of the residents have expressed a willingness to do this, but all the residents in that quarter section would have to be polled. Prior to surveying the residents, staff felt that Council approval for the concept, location and funding source should be addressed. No 5/85 REQUEST FOR CITY COUNCIL ACTION If the project were to move forward, a could be removed from the proposed park purposes. Council approved the site as and indicated that a minimum four acres site is approximately five acres. The recommended for equestrian facilities i Therefore, the minimum park acreage wou Page two small triangular section and used for equestrian a park (see Attachment I) would be developed. The triangular portion s less than one acre. ld still be maintained. Although City Council indicated that the entire five acre site be designated for park purposes, the land has not been purchased. If the triangular section were removed from the proposed park, designated as common area equestrian facilities, and purchased with funds other than the Park Acquisition and Development Fund monies, then the property could be considered common space under the auspices of the home owners associations and not parkland. It would not fall under the jurisdiction of Measure C. Acquisition would come from two sources. Pacific Coast Homes is dedicating parcels for a storm drain as per conditions on its residential development in that area. Since the pipe is underground, the surface could be used for an arena. When the land is dedicated in such a manner, it is available for public purposes. In 1980 the Planning Commission put conditions on the equestrian -related residential development in the subject quarter section to post bonds for equestrian facilities. To date, this funding has not been used for that purpose. These bonds have a ten-year expiration date, at which time the funds would be returned to the developer. There is $108,000 in bonds plus interest. $56,000 is available with $52,000 still in litigation. With Council direction, this money could be used to acquire parcels and develop the equestrian facilities. The city would assist with the acquisition and development. The equestrian facilities would be turned over to the home owners associations which would have the same responsibility for these facilities as they do for the existing horse trails. The facilities, like the trails, would be open to the general public. FUNDING SOURCE Developers' Equestrian Bonds ALTERNATIVE ACTIONS 1. Develop the entire five acres as parkland, including development of the triangular section as equestrian facilities with the city assuming the liability and maintenance for such a facility on parkland. REQUEST FOR CITY COUNCIL ACTION Page three 2. Do not construct equestrian facilities on this site and move ahead with the development of the entire site as parkland. ATTACHMENTS 1. Park/Equestrian Location Map 2. Location Map 3. Planning Commission's conditions on projects that required setting aside equestrian bond money. JBE:RH:am i--T—� —I—T—f � T—I— ICenter Line for Proposed Street —I_ Triangular are for I I ! I I I proposed Equestrian I I I I I I ( I I I ! I Facilities z I.L. 5' WIDE I TO M D'RAI EA EMEINT .. I I I I I I I I 1 1 T IC1j N 6 • 13 1 I I I I I I i I I Proposed Park Site �.1 I I I I II I jl I I i F—TT—FT_I-7 T--1— as I ! I I ( I I I I ! ! I l I I I ! I I ! ! N o r t h T. T. 14009 IN G CTIONAL DISTRICT MAP 34-5-II = ,CTIONAL CITY OF [UNTINGTON BEACH RANGE COUNTY, CALIFORNIA USE OF PROPERTY MAP ze zz\ CI UNTIN( ANGE C01 „.l i� a i i i a a a a I d 3 0 j I{ i C. PUBLIC HEARING ITEMS Clr C-1 EQUESTRIAN BOND ASSESSMENT FOR TENTATIVE TRACTS 11769 AND 13210 (CONTINUED FROM MAY 16, 1989 PLANNING COMMISSION MEETING) �. 3 4 APPLICANT: THE DAHL COMPANY The determination of the per lot equestrian bond assessment was continued by the Planning Commission to the June 20, 1989 meeting. Both the applicant and staff requested this item be continued until the City Council had taken action on the Ellis-Goldenwest Specific Plan. On June 5, 1989 the City Council approved the Ellis- Goldenwest Specific Plan with minor revisions. The Ellis-Goldenwest Specific Plan as approved by the City Council does not require the establishment of a common equestrian stable within 160 Ellis-Goldenwest Quartersection. Rather the Specific Plan promotes estate residential with equestrian amenties. The Specific Plan contains the provisions to encourage on -site stabling of horses rather than requiring the construction and long-term maintenance of a common stable. The equestrian bond assessment will not be required of future subdivisions within the 160 acre quartersection. The equestrian bond assessment was imposed by the Planning Commission on existing residential subdivision projects which were approved prior to the adoption of the Ellis-Goldenwest Specific Plan. There are three existing residential subdivisions which have been conditioned by the City to provide an equestrian bond assessment which needs to be addressed prior to final occupancy of the last phase of development in each tract. Staff has identified three possible uses of the equestrian bond assessment obligation required of Tracts 11769, 13210 and 11473, Lot 1. As an alternative, the Planning Commission may determine that the equestrian bond assessment is not necessary since the adopted Specific Plan does not require the establishment of a common equestrian facility. STAFF RECOMMENDATION: Direct staff accordingly. THE PUBLIC HEARING WAS OPENED David Dahl, 505 Park Avenue, Balboa Island, spoke in support of staff's position on the bond amount. He feels the amount proposed is reasonable and encouraged the use of the fees to promote the General Estate theme. John Fisher, 6692 Shetland Circle, spoke in support of staff's position on the bond amount and said he would like to see the funds used for enhancing the area not purchasing more land. PC Minutes - 6/20/89 -2- (3187d) �- Gerald Chapman, 6752 Shire Circle, said the only reason the homeowners agreed to sell the set -aside lot is because they were promised another in the area. He feels the developer should deposit the money in an interest -bearing loan and if a decision is made to not use it the money should be returned to the homeowners. Don Jankowiak, 6711 Shetland Circle, said the developer agreed to an amount of $108,000 and feels the money should be used to improve the area. In answer to questions from the Commission he stated 20 percent of the homeowners either have horses or are taking riding lessons and that 15 trained horses will become homeless without an equestrian facility. There were no other persons present to speak for or against the bond issue and the public hearing was closed. A MOTION WAS MADE BY LEIPZIG, SECOND BY ORTEGA, TO REQUIRE AN EQUESTRIAN BOND ASSESSMENT BE POSTED FOR TENTATIVE TRACTS 11769, 13210 AND 11473, LOT 1, FOR A PERIOD OF 10 YEARS BY THE DEVELOPER IN THE AMOUNT OF $108,000 AND SHALL BE POSTED PRIOR TO THE ISSUANCE OF BUILDING PERMITS FOR THE LAST LOT IN EACH TRACT, BY THE FOLLOWING VOTE: AYES: Shomaker, Kirkland, Bourguignon, Ortega, Mountford, Leipzig NOES: Williams ABSENT: None ABSTAIN: None MOTION PASSED ON MINUTE ACTION STAFF WAS REQUESTED TO IDENTIFY AN AREA FOR A COMMUNITY PARK IN THE ELLIS-GOLDENWEST AREA AND FORWARD TO CITY COUNCIL FOR ACTION. C-2 ODE AMENDMENT NO. 89-4/NEGATIVE DECLARATION NO. 89-11 APPLI T: CITY OF HUNTINGTON BEACH Code Amendment No. -4 and Negative Declaration No. 89-11 is a request to amend Artic 963 (Unclassified Uses) to allow social service type uses in resi tial zones and to amend Article 908 (Definitions) to include a d 'nition for social services. ENVIRONMENTAL STATUS: Pursuant to the environmental regulations 'n effect at this time, the Department of Community Development pos draft Negative Declaration No. 89-11 for ten days, and no co ents either verbal or written were received. STAFF RECOMMENDATION: Deny Code Amendment No. 89-4 with findings. PC Minutes - 6/20/89 -3- (3187d) f REQUES . FOR CITY COUNCIL iCTIO ��.. 1- 0C Date November 16, 1992 Submitted to: The Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrato Prepared by: Ron Hagan, Director, Community Services Subject: NATIONAL EQUESTRIAN CENTERS, INC. AGREEMENT EXTENSION Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:V ,& a4l C�4 C'ourncL 1 4?v(% Do &b P- STATEMENT OF ISSUE The National Equestrian Centers, Inc. has requested a five year extension of its agreement in order to obtain a loan through the United States Small Business Administration (SBA). RECOMMENDATION Authorize the Mayor to sign a five-year extension of the Huntington Central Park Equestrian Center Concessionaire's Agreement with National Equestrian Centers, Inc. ANALYSIS National Equestrian Centers, Inc. has requested that the city extend its lease by five years in order to qualify for a loan with SBA. There are fifteen years remaining on the current agreement. SBA will issue a ten-year loan conditioned on the concessionaire's lease agreement being extended ten years beyond the proposed loan. This necessitates extending the concessionaire's agreement with the city by five years. This loan will finance the buy out of the equestrian center lease from Mr. Eddie Milligan. The Harrises are currently making payments to Mr. Milligan who retains certain rights to reenter the operation if the Harrises cannot for any reason make the monthly payments. The Harrises want to pay off Mr. Milligan with the SBA loan. It will also be used to complete the landscaping and monument sign at the equestrian center. The Harrises have done a good job in operating the equestrian center and have made significant improvements to the facility. They are also agreeing to maintain the existing fees to boarders at the current rate for one year. This is written into the amendment. They have raised these rates on an annual basis over the past few years. The City Attorney, Real Property Manager and Community Services staff have reviewed the request, feel that it is reasonable, and recommend [� approval of the five-year extension. l� i PIO 4/84 i REQUEST FOR CITY COUNCIL ACTION FUNDING SOURCE Not applicable ALTERNATIVE ACTION Page two November 16, 1992 Do not approve the requested five-year extension. ATTACHMENTS Mary Harris' letter to Jim Engle Ron DeNapoli's letter to Dan Brennan Art Folger's letter to Ron DeNapoli, Golden Pacific Bank Amendment RH:JBE:am CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK November 24, 1992 Mary Harris National Equestrian Centers, Inc. 18281 Goldenwest Street Huntington Beach, CA 92648 Dear Ms. Harris: CALIFORNIA 92648 Enclosed is a copy of the amendment to the Concession Agreement between the City and National Equestrian Centers, Inc. which was approved by the Huntington Beach_ City Council at their regular meeting held November 16, 1992. If you have any questions regarding this matter please call the City Clerk's Office (714) 536-5227. Sincerely, Connie Brockway, CMC City Clerk CB: pm Enclosure (Telephone: 714-536.5227 ) CITY OF HUNTINGTON . BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK November 20, 1992 Orange County Assessor's Office Real Estate Department P. 0. Box 149 Santa Ana, CA 92702 Attn: Jack Walker Dear Mr. Walker: Enclosed is a duly executed copy of the amendment to the agreement between the city and National Equestrian Centers, Inc. for city owned property. If you have any questions, please call the Office of the City Clerk at (714) 536-5227. Sincerely, Connie Brockway, CMC City Clerk CB:mj Enclosure 1390K (Telephone: 714-536-5227) HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 18381 Goldenwest Street Huntington Beach, CA 92648 (714) 848-6565 FAX: (714) 848-6858 September 21, 1992 Jim Engle City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Re: Lease extention Dear Jim, National Equestrian Centers, Inc., is now in the process of re- structuring its financial commitments through the Small Business Association. This restructuring process will enable us to payoff our loan to Eddie Milligan, complete the final steps in our improvements of the facility with regards to the master plan (ie; landscaping), and do some miscellaneous improvements such as a new entrance sign. The only thing the S.B.A. is requiring from us now to complete this loan package, is an extention of our lease with the city. Please contact me, Jim, at your earliest convenience in regards to this matter. Your help will be greatly appreciated. Time is of the essence: Sincerely, Mary Harris General Manager Huntington Central Park Equestrian Center t PROPERTY GOL13EN PACIFIC BANK MANAGEMENT September 22, 1992 Daniel Brennan Director of Administrative Resources City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: National Equestrian Centers Inc. Dear Mr. Brennan: Golden Pacific Bank has approved a loan to National Equestrian Centers Inc. subject to appraisal of collateral and concurrence of our loan approval by the U.S. Small Business Administration. Collateral would consist of a first lien position on leasehold under Lease and an Assignment of that Lease and Concession Agreement with the City of Huntington Beach. As to the above information certain questions have arisen which, it is hoped, you will clarify for us. 1. Is the Concession Agreement between the City and Concessionaire also the lease agreement? 2. Are the property rights a leasehold? 3. Can the Concession Agreement be assigned as collateral? 4. According to the California State Banking financial code section 1228.... "a commercial bank may lend on the security of a first lien... on a leasehold under a lease which does not expire, or which has been extended or renewed so that it does not expire, for at least 10 years beyond the maturity date of the loan, if ... (c) The Loan is one in which the Small Business Administration cooperates through agreements to participate on an immediate or deferred basis under the Small Business Act, as amended. The original agreement to Better Built Enterprises, Inc. was signed on October 25, 1982 for a term of 25 years. The agreement has run for .10 years with 15 P.O. Box 630 11 845 North Euclid Avenue 0 Ontario, CA 91762 ❑ (714) 983-4600 Fax (714) 391-1 168 r National Equestrian Centers, Inc. Page 2 years remaining. The bank loan term is set at 10 years which would require a remaining term of the agreement, after maturity of the bank loan, to have 10 years remaining. Assuming a March 1, 1993 1st payment date, maturity of the loan would be February 1, 2003. According to. the California State Banking Code the leasehold held as collateral would have to mature no sooner than February 1, 2013. Presently the agreement will expire October 25, 2008. Can the agreement be extended to meet the time frame of 10 years remaining on the lease after the maturity of the loan as specified in the California State Banking Code? Due to the timing requirements of the loan request your immediate help in this matter is greatly appreciated. Sincerely, Ron DeNapoli Vice President/Manager SBA Department cc: National Equestrian Centers, Inc. OFFICE OF CITY ATTORNEY P. O. BOX 2740 yy�ovtty*�2000 MAIN STREET HUNTINGTON BEACH CALIFORNIA 92647 GAIL HUTTON TELEPHONE City Attorney (714) 536-5555 FAX 714 374-1590 October 1, 1992 Ron DeNapoli Golden Pacific Bank P.O. Box 630 Ontario, CA 91762 Re: National Equestrian Center Dear Mr. DeNaooli: Your letter of September 22, 1992 has been referred to this office as the questions presented are of a legal nature. The paramount question is the one asking if the lease can be extended. The answer to this question is yes, but it must be done by amendment to the agreement approved by the City Council. As to whether the concession agreement is a leasehold that is an arguable question, however, this potential problem can be cured by a statement in the amendment that it constitutes a leasehold interest. The question as to whether or not the agreement can be assigned as collateral is also questionable, but can be clarified by allowing it in the amendment. We would also include a notice requirement that your bank be sent any notices that are sent to the concessioner. The operator of the concession is of paramount importance to the city and we would require that a clause be inserted on the amendment that if the bank was required to take over the concession that the operator or subleasee selected by you be approved by the City Council within 90 days of their appointment by your bank. In preparing the amendment to the agreement we would also consider any additional clauses which you or your legal staff may suggest. We hope this has answered your questions, but if you have any additional questions or require clarification, please contact me. Very truly yours, GAIL HU TON, City-Ara, BY: ARTHliR J. FOLGER Deputy City Attorney AJF::t cc: National Equestrian Centers, Inc. Ron Haaan, Director of Community Services bcc: Don-;gatson, Treasurer CODE SUB -CODE INSURED IInNAI F(] rT_RS IDl L HUNTINGTON CENTRAL PK EQ CTR. 96 CORPORATE PARK, 7f2 IRVINE, CA 92714 DATE (M M DD ISSU E / Fe bruary 25 1992 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW COMPANIES AFFORDING COVERAGE Y A Frontier Insurance Company LCOMrPR COMPANY B LETTER COMPANY `. LETTER COMPANY D LETTER COMPANY E LETTER THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH 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. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO POLICY EFFECTIVE POLICY EXPIRATION .TR TYPE OF INSURANCE POLICY NUMBER DATE (MM/DD/YY) DATE (MM/DD/YY) ALL LIMITS IN THOUSANDS A GENERALLIABILTTY X COMMERCIAL GENERAL LIABIUTY CLAIMS MADE OCCUR. OWNER'S & CONTRACTORS PROT. AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULEDAUTOS HIRED AUTOS NON -OWNED AUTOS GARAGE LIABILITY EXCESS LIABILITY OTHER THAN UMBRELLA FORM WORKER'S COMPENSATION AND EMPLOYERS' LIABIUTY MPS-0000210-01 1 12/07/91 1 12/07/92 -,;-y At'LlOI ney G ��II: riU`i � •` ,, i-c' 1�t t:orneY BY Deput �n.�(��Y ArA'-H'b GENERAL AGGREGATE $ Does Not Apply PRODUCTS-COMP/OPS AGGREGATE $ 1000 PERSONAL& ADVERTISING INJURY S 1000 EACH OCCURENCE $ 1000 FIRE DAMAGE (Any one fire) $ Not Covered MEDICAL EXPENSE (Any one person) IS 5 COMBINED SINGLE LIMIT $ BODILY INJURY (Per person) $ BODILY INJURY $ PROPERTY I$ DAMAGE S s S EACH AGGREGATE OCCURRENCE ............. STATUTORY (EACH ACCIDENT) (DISEASE - POLICY UMIT) (DISEASE - EACH EMPLOYEE OTHER A SECTION I PROPERTY MPS-0000210 - 01 1 12/07/91 12/07/92 1 TOTAL: 1,064,468.00 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/RESTRICTIONS/SPECIAL ITEMS EQUI FARM PACKAGE CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 ADDITIONAL INSURED SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY V9glffiE1'E MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,157�}4J$tJGFs3]K118[��584�?CP�SKI$iCAGXiF� I }t25QMXtNISL atPl� pT$�i� 8E3F pdff AUTHORIZED REPRESENTATIVE Peter L. Rhulen / BD D 7'0 �� /l 0 ' 00 49 : , 5 F'HGE . 002 CE TIFICAT E —.,F INSURANCE :,.. `ATf ..%1M!DD/YY) 12-7 -'92 rR �rvcER THIS CERTIFICATE IS ISSUEL) AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE Equine Insurance DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE 70.10 K}f. 1-la AvC_,n>ir� POLICIES BELOW. L,os Alainitos, Ca. 90720 COMPANIES AFFORDING COVERAGE~ Cf)MPANY A LETTER Frontier Insurance r,OMPANY B iNSURED LETTER Z.ational Equestrian Cntr., Inc. COMPANYC DBA: Iuntington Centeral Park LETTER Equestrian Center COMPANY i7992 Mitchell South #100 LETTER Irvine, Ca. 92714 COMPARNY LETTE COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE t$SUED OR MAY PERTAIN, THE INSURANCE AFFORDED SY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, FX IISIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS co TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE (MMIDD/YY) DATE (MMIDDIYY) GENERAL LIABILITY A X COMMERCIAL GENERAL LIABILITY CLAIMS MADE X OccuR. MPS -CO 0 0 210 12 / 7 / 9 2 12 / 7 / 9 3 OWNER'S & CONTRACTOR'S PROT. +UTOMODILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS hIRED AUTOS NON-OY+•aLD AUTOS GAP.FGF I-:AQ:LITY EXCESS LIABILITY UMBRELLA FORM GTHER THAN UN11RELLA FORK! WURKER'S COMPENSATION AFFROVED AS TO FORM•1 AND GAIL HUTT 1T, City Attorney EMPLOYERS' LIABILITY ED ISy": UeU:: City Attorney UTHFR s GENERALAGGREGATboes' Nat Apply PRODUCTS-COMPJOP AGG, S 11000,000 PERSONAL & ADV. INJURY $ 11000,000 EACH OCCURRENCE $S 1, 0 0 010 O 0 FIRE DAMAGE (Any cne 11r LNOL Covered MED. EXPENSE (Any one por►o6) S 51000 COMBINHO SINGLE S LIMIT BODILY INJURY S (Per pennon) BODILY INJURY S (Per accldynl) PROPERTY DAMAGE S EACH OCCURRENCE _ — AGGREGATE $ STATUTORY LIMITS EACH ACCIDENT S DISEASE —POLICY LIMIT $ DISEASE —EACH EMPLOYEE S DE9CRIPTIONOfOPPRATIONSILOCATIONSJYEHICLESISPECIALITEMS I is hereby understood and agreed that the ` certificate holder is named additional insured, but only with respect to the operations conducted by the named insured. CERTIFICATE HOLDER ADDITTONAT, TNS1TRF.0 CANCELLATION City of Huntington Beach 2000 Main Street Huntington Beach, Ca. 92648 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL 5WWKWK= MAIL 3 0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE AUTHORIZEIAREPAESLNTATIVEII J I it- I l ACORD 25•S (7190) i i 1 k,-V - -" v - i CACOR CORPORATION 1990 DEC 02 " 92 17:20 r(_ IF O. O. C. POLIC;`'i' P.2/2 STATE P.O. BOX 4205,)7. SAN FRANCISCO. CA 94142.080 COh1PCf�5wTION I N.S IJ RONCe PU N D CERTIFICATE OF WORKERS' COMPENSATION INSURANCE DECEIMER 2. 1992 P01,IL7 NUNJaEM' 1222)24 - l:_HI IH::A1 t I:AF'IRES: 12-01-93 f� CITY OF HUNTINGTON BEACH RISK MANACE;PENT/ATTN: JVLIE FITTERY 2000 MATN STREET HUNTINGTON BEACH, CA 92648 JOB: ALL OPERATIONS L Tkia .s to Certify that vve have 65u@d a valid in a form appiuved by the Uifuu Irrsurdr•ce Curnmk-�iu:irr to Ow euluiuyet ndmcd utluw fur the policy uttiud indicated. 30 Tnli policy is not subject to cancella-ior. by the fund except Loon 21f days' advance written notice to the employer. 30 We will also give you xxM days' advance not,ce shuuld :his policy be cancelled prior To its normal expiration. This certi'icate of insurance is nct an insurance policy and does net amend, extend or alter the coverage afforded by r, policies IMed herein No1w;thstanding any requirement tPrnt. nr cnnrlitinn of any rnntrart nr whar (tr)rrrms)nt wi rwepart in wh,ch thK rartitirata nt rM:ranru m.; hit ,csuyn .fir etay (.gr!a,n, the :nStIrarve attorded b9 the polio described hereon subject '0 all the terms, evchr,ons and cond.trons of such policies. V4 PP 7.& mFnT EMPLWEV S LIABILITY LIMIT: S3,000,QUO PER OCCURRENCE. ENDUXZ M� NT #0 15 ENTITLED QDITIONAL INSURED EI2LOYER EFFECTIVE 12/01/02 IS ATTACHED TO AND TO:RMS A PART OF THT.S PULTCY, NAME OF ADDiTiONAL INSUREDi CITY OF HUNTINGTON BEACH ENDORSEMENT #2465 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 12/01/92 IS aTTAnHED ANn FnRMS A PART OF THIS POLICY. EfV_DYER f— N0.TIONAL EQUESTRIAN CENTER3 I14C. 17992 MITCHELL S01.11'k IRVINE, CA 92714 L Boarders' Concerns_ COMMUNITY SERVICES DEPARTMENT -Huntington *Central Pack Equestrian Center - Responses to Concerned Boarders _ March 10, 1987 Staff Response Management' Response Boarders.' Committee Response_ Disposition January "it, 1987. 1. The rental fees of box- City requested a, list: of Management stated 'it had Soard rates have not been -staff'.to request council stalls and paddocks should all equestrian center fees submitted a list of fees _ approved since 1982;,there- accept the established fee be reduced to current be submitted by manage- . -,-.- '_: which was approved in fore, 1982 rates' should be. of 7/1/86 : ($2o0' paddock, $275 market price. Increases. ment by 2/15/87.. Present 1982, but city has, no -` applied_ ($150 & $2oo)..': " boxstall with $25 discount if - in fees should be _sent to lease agreement requires record' of such list or'. ---Thirty day notice'was.not -` paid by first)-_ - Management boarders a minimum of 30 all fees be submitted - approval of 'same. • -,'given for the unauthorizedF -',":to provide. 1987 fee schedule days notice. annually for city approval._ '- - -;•increases. for: Council approval. and management will com= - - - . ply henceforth. 2. The discrimination of Required boarders' riding Management stated seven Boarders to -ride in all Based oil management response, arena use be stopped. rings are being provided 'riding rings are available arenas; management to no fuither'action required. Boarders should be able to regardless of riding to boarders and it will designate one arena for use any arena (except when lesson is in preferences. designate the one arena public use a progress) regardless of for public use_ - riding preferences; _ full-trainin ;..partial - :. training or no train- :.. 3. The footing'of all None. _ - Maria Management, stated this g - Management'sad•this is arenas' needs to be _ has been accomplished. taking`place and -will be improved, specifically P P y completed by July 1, 1987. the bottom "western" arena and the turn- outs for boarder use. - - . "4. Shavings should be Management must provide Management only provides Agree with staff; shavings in- Management wi21 include - provided to the paddocks. shavings to boxstalis and.:- .shavings for: boxstalls, cluded with board -.- this shavings in its fee schedL padddocks.' _' in paddocks for a fee. means paddocks and barns. for paddocks.' staff and $. Provide for public ::' Management stated park- where is. the parking with _' management disagree. Legal opinion will be requested. parking (trailers and rigs) < ,: ' ing is available for a -electrical and water hookups? so that the public can _ fee ,and with reserva- 'Lions._ Fee should be. comparable to _ park while they ride on . :_ '_ ;' =s ?.t " other stables, charging a "day No further'action required. _ the Huntington Beach _= ;_ fee" and should be.city Four water/electrical hook trail system. approved and posted. _:.ups are presently being provided_ ` 6. Reduce. the overspray None.,. ..-.,:::; _.. .- - Management will alert its employees to be -more - = No _further action required. of the water truck into '• the d t : paddocks anono. P .. attentive -* - blankets hanging outside the stalls. Restrict employees from watering the turn -outs while a - horse is inside. ' 7. Stop the harrassment' None. Management stated this has . No further action required. of the public who ride occurred but felt it was _ through. the center:, .: _ - ;=. - being done by all parties.. _ - ,: at '�_ Rude ellin and _. ,. yelling , .c'- Management will_ be more' -,. - . - -• . times •profanity,:_are ..:.•,:-.: _ __ -- - _ attentive to is practice. -.- _ not to be tolerated. Ma ent stated this The.. lunging arena, :_;.:-- -, None.:' _•_: __x; , ." _ -;, :__ nagem has =- - No Jfurther action required. t q gate needs-repairing.::.v.:::::`, ' -:.'-. .:;.-.- :`'..•v ;;=:..'-' .:.._ ;.:... :- been accomplished. - - _ -:,-Management has been advised. Also, a pole ,that is sticking up needs to be cut off as it is a : safety hazard: - 2 :. - : - March 10, 1987 _ Page Three Boarders' -Concerns Staff Response Management Response Boarders' Committee Response ...,--.-Disposition .9. Lightingneeds to.be-- .Not required in contract.- Management stated that righting has been installed No further_ action required. ' 'installed immediately. _ lighting is in the process '.in- lower. arenas. Page 14 of Lighting is -An reference r ' =-This would- improve safety of being installed-. contract states sales pavillion sales pavillion, no arena. and allow boarders to and arena to have night light - .exercise their horses - + '-ing._ (upper -arena). after- 5:00 p.m. during the winter. - ^ 10. -- Provide adequate _ On special event days. `Adequate parking is :being (No response from boarders.). -_ No further 'action required. parking- for: boarders there will _be some in- provided for boarders in :during, the "two, three. convenience, for boarders:' -_ ..;;side the.-. premises.. '; : ; ' ,- _= '•_ .': = = - _ four day shows. •Management- noted that ' during the . show times, . it is- an . inconvenience. 11. 'Provide additional - None Additional wash rack hash - Additional wash -racks not com- No further action required. wash racks.. Replace been installed and plas-.. plete, existing wash racks -plastic drain will be plastic drain caps tic drain caps have been still have PLASTIC drains, not :- replaced by. April 10, 1987. with metal caps. replaced with metal ones. - metal as claimed by management. 12. Golf carts and None Management .will alert Still presents a hazard. Man-- No further action required. ' tractors should be - . its employees' to curtail agement. needs to be alerted. - driven at a. slower speed rate of speed _ .13- If the gate to the None Boarders must contact Need a 24-hour phone number' No further action required. center is to be locked for a key in emergency to_1. get in'. Board- : _24-hour phone number will ',be'provided. at':_9:00 p.m- - 5 30_ a.m., _management .and give, a. definite reason: for ers who request key should get - .:Center will keys should be provided needing it. one. Should remain open .untii. `- ; remain- open until 10 p.m., to boarders requesting - 11. p. m. - same as park. curfew. Key rki3e one. will only provided with justification: Boarders —Concerns Staff Response March 10, 1987 Page Four Management. Response Boarders' Committee Response Disposition " 14. Management is now- None. Horses will be fed as Agree with management on ., : _ No further action require' Stating -'that if boarders - _ needed: There will -be =amount of _feed. Horses are Boarder should contact want horses fed more no charge for extra not being fed what requested, management re feeding than 12 pounds per feed- feed. however -- staff did not practices: ing, it will cost extra. ; address option of feeding" . Why were boarders given alfalfa hay.' what are some options of up to 20' horses still being missed at pounds per feeding in feedings? What the wrong the contract? If a amount? horse eats- less than 12 - -- pounds or no cubes at all, will the owner be given a cash rebate? 15- Dogs should be on ` ' None. Everyone `must have their :--,Agree with management'.:: Dogs ='No further action required. a leash at all times - dogs on a leash, no "should be on a leash at all this goes for everyone. ,. exceptions.. Z times! This is a city ordinance._ 16- Turn -outs None. Management knows this Management agrees this is a No further_ action required. .being used by the western happens. Riders are to safety hazard_ If all arenas arena cause horses in - have control of their open to boarders, boarders the arena to "spook." _ horses. could move to another arena, i when turnouts in.use.. January 26, 1987 ' 1. Y N/A - Landscaping plans, for the, _-' -. Submitted Iandscaping .plans N/A _ '-=Plans. are --.under review •- - ;center are -to be=: submitted_ ;. bn` February 13, 1987. by city: No further on, 'or before, February 15- .:: .: = . = _- action at this time. 2. N/A A $10,000 -cashbond is to` Submitted $10,000 cash bond. N/A - No further action required. submitted to city treasurer on February'3, 1987. ' on or -before January 30.. - -' 3- N/A Sewer line plans and Submitted sewer line plans N/A Plan `were approved by specs to be submitted on to Public Works on February - _ Public Works and a or before_ February 15. 20, 1987- permit was issued. No 4. .-further action required. Boarders' Concerns Staff Response -'March 10, 1987 Page Five Management Response Boarders' Committee Response' : Disposition 4.. N/A Equestrian center only has Has provided requested N/A -Liability insurance was _ $500,000, liability coverage. insurance coverage. ' - increased'to=$i million. No further action neede. February 2. 1987 Contract Interpretation Page.1, Clause II.A., Center. -must, be open -to- all Center_is and always has Needs to be stated more clear= No -further action required. "Concessionaire shall:be persons, not, limited- to,-. been open to public who ly.' Public: (non -boarders ) '' ='Agreement specifies that granted the exclusive boarders. Management has - are our customers. have -flee access to ride :-_:management has the right right to design, construct,: the rightto charge a , through, may be charged a . ' _ =''to. charge the - approved fee _ - maintain -and operate the reasonable entry fee as city -approved fee for using V !jo,r all.'services except following services and approved by the city. - arenas. Boarders to use-- - one arena_`' facilities at the premises all arenas at no fee." for .the amusement and pleasure of the general - public more fully des- cribed in various sections of this Agree- ment Page 1, Clause II,.A.2., Management must provide 20 Center is presently'provid- Enforce contract.- = No further action required. "Horse rental - service., horses, for' -rent. Fee to be ing 15 horses for supervised Management, will have 20 At Ieast.20 horses must-- - = approved -by-city: Refer- riding. Whenthere is a :_ - horses; available April 6, be ,available for rental` ' . ence to' hourly, ' daily or `monthly _ need for '20 horses, menage- .: ;' r 1987.- within six months" of 'rate would be ment will provide. " execution of this established when the fee. Agreement." .is a roved b city. PP. Y Y- - - .. Page 1, Clause II.A.4., Training ring must be ;_Agree with staff response. Boarders are -customers - -.:no. No -further action required. "Training. ring. Open open to boarders or - fee. Public (non -boarders) _ Management has right to for public use at a fee public when a show or pay city -approved fee. What-: •_.'charge approved fee other except that Concession-' event is not taking place._ equipment? than one arena. 5. _ March 10, 1987 - Page Six Boarders' Concerns Staff Response Management Response Boarders'- "Committee Response " ~Disposition sire. -may restrict its use - Management has -the right Agree with staff response. (No response from boarders.) .-No, further action required. - on any -day that he re-- -too-. charge city approved- - quires. At for a show or fee" for the use.- - - "Concessionaire. may Management has the right_ " "":'Agree..with staff. response." Management is not qualified -_.._Agreement gives management also prohibit use "of the a to judge riders' - ability. - t o judge riders' ability_ _ _ the. right to judge riding " training ring by those - �s o kills f s _all per ons. No . persons" 'who; in .his. ".' " ... ' " - - _ -further action required. expert .judgment, after -. obseivin their riding S g 'do -. - _ s_. kills - not possess •- - - -horsemanship ability of a degree sufficient to -insure their h it safe use of •:- - _ - the ring and their equip- ment therein." _ Page 3.. Clause W.A. , Management shall clean and Management only provides' Enforce contract. To be pro- Management: will provide "Concessionaire will, also replace shavings. shavings for boxstalls; and vided to paddocks at no fee. shavings in paddocks at a clean all, stalls and in paddocks for a fee. Staff agrees, management to ,fee. Staff will request paddocks on a daily .' provide. legal opinion on this item. = basis,- removing all manure " and . replacing - wet - sawdust' or straw. _ -- - _-Manure. "will: be kept = ` Open piles of manure must :" 'Has always been done: pisagree with management. -_-No.further'action required. in a manure compound, .' _" be' cleaned (manure (Manure is being disposed of" ,: _ - Manure is being hauled off dumpster trash container" in owe' arenas, health ". • _ of" the"- premises daily. or similar device. which '- _ - =_ hazard.) .-portion-of shavings is used -shall "be located so -as _.., --.from time -to time in arenas _ .•to'..prevefit offensive .- practice ractice odors and insects from = is equestrian operations. bothering " patrons." 6._ March 10, 1987 _ Page_,4. Clause IV.S.. --..: `:,= Management stated this'-- Management will be more - staff's' response is inconsis- No, further action required. "Concessionaire shall dt- .. has occurred: but -:'felt' : ' "attentive to .this practice. tent with boarders' concerns. all times conduct his •:. it was being done, by - business in a quiet and all parties. _ orderly manner to the > --reasonable reasonable satisfaction - - of -the Director." Page 4,':,Clause IV.C. r _ ; . ". Management will be made - f =_Manage Went will be more - Agree with staff..'_ ; Na`furthe; action required. "'Concessionaire shall, use aware of this issue and . .- ` : attentive to this practice.. . ;. his best efforts to permit will be advised to, con-., ,- •- Police will'be called ':" -" "'• '::",. -'. -s--- ` . - _, . - no intoxicated: person or tact the police . when - when needed. - -- :. persons, profane or needed: _ - - - _ ' : --language,.= indecent or _ boisterous or loud con - - - :-. .- duct- in or about the - - - premises_ and will call upon the aid of peace officers to assist in maintaining peaceful conditions .- Page 4. `Clause IV.D., Employees must wear . Employees will -wear'-' Agree with staff: No further action require ''Every: employee' shall ..- :` = _..identification.,'. ,-• - : - : __ jacket. or. shirt with a - .:-,wear' a. badge or patch g ` - bad a identifying g ying them - - "'- - _= indicating his name or _ -` = - as center employees - y - _ employee number, and _ _ ry,- to'not =_eve employee. P ee• - - _ directly involved: in animal maintenance, shall also wear a` clean uni- - form . of a type- approved by the -Director. Con-:. - - - _ cessionaire shall provide.. . all uniforms." 7 - March 10, 1987 Page Eight Page 8, Clause IV.L., All fees are to be sub- Will submit a list of Clear violation of contract. Staff will provide the "Allrates for services and , .:- mitted" annually -for city _ requested fees hence- City has been negligent in _ " requested ,Fee schedule merchandise., charged by = '-_Concessionaire approval. City has not' forth. " "• administering contract. since _`ta Council.' for approval 'shall- be received or previously r P, Y 1982. Demand price rollback - as.. soon as submitted. _ uniform " at all times and " , approved any fees. and refund_.. M"anagement .is charging seasons and subject to '. .. -immediate fees that_ were in effect the approval of. City.. " .July . Y,.': 1986. staff is The standard used to - Without waiving the_" Clity's Agree with staff response: •requesting Council to approve. or disapprove rights, staff will recom- - :": accept.;July' 1, 1986 fee prices shall be the- pre- mend- nd Council approval of -.,. _ _. s. schedule;`($200 paddock, vailing �"market' price- for a present fees that have F $275 boxstall with $25 the same;grade.of mer=" "" been cfiarged.from.I982-..discount,i�:paid by first.) :chandise' and services. - throu h 1986.. g - - �.�"" Concessionaire - - - _ shall submit to City for _ its approval -a list of prices for all merchan- dise , foods and bever- ages to be sold or -- rented and the quality " and quantity of each, " and a list of the '' = prices -to be charged for., " =..- all services offered. - He - .shall resubmit a com Iete P - - - - - Iist. at the beginning or _ each calendar year under.. -- the terms of. this A ree- - "ment; together with any. ~ requested changes. ; Con- cessionaire shall be -.. notified- in writing of City's approval or dis- approval -and City re- - serves the right to re-... _ voke its approval of any - listed price when it _ 8. '- - March 10, 1987 Page Nine Boarders'- Concerns Staff Response Management Response µ' Boarders` 'Comrriittee Response Disposition appears that the. price - is above the prevailing market Pri-:far the -same ofce grade merchandise. Variations from the. approved price List will be permitted, only - with.. -the prior, approval of- :: city :,..... _ - _ y :Page -9. Clause.IVA.,- ==' "Concessionaire Signs will be,posted- at .' _ Agrees with staff recommen.-`,�.. Agree with staff: the and `= dction.._ '. = - '. No further action required. - shall. post office riding si ns advertising the _ school. - prices : aPProved by . the Page 9, Clause IV.O.; Management is. onI'y re- ;Agree with staff response: y' Staff did not address board- "Concessionaire shall not quired to provide one No further -action _ ion required. ers interfere with the public's arena. The use of other concerns._ Refer to staff response. enjoyment and use of the arenas is open to the. premises'. or surrounding public at the city approved . public property for the fee when a show or event = purposes of -which ,they is not' taking. place. Hot _ were intended.. He shall walkers are not 'required.. not use the premises for under the -lease for boarders' `anpurpose,-which is' not° Y use.- .Guests of. boarders- are.,. -.- :" essential to- the licensed: permitted; hy` management if- operations. Heshall ' • n thd_. and. whecity' ; --not: rent;"sell, lease, or.: ':.:::.:fee: ''is paid. -'.Staff has no - _ - - - _ -offer -any space for ; :`. , .-: . _.. "' knowledge: bf- subletting." =. ::storing of any article - or articles whatsoever within or on the con- cession premises other than own equipment; " -his without the written con- sent of the-, Director." :.. - March 10. 1987 Page Ten Boarders' Concerns Staff Response - Management' Response Boarders'ACommittee Response' :.. Disposition Page 10, Clause IV.R., Hazardous condition must Lunging arena pole and Hazardous conditions continue -No further- action required. If Concessionaire be repaired. gate have, been repaired. to exist. Recommend Default- x ; Plastic draiir to be re- : fails . to' correct_ hazardous . ;" _ - °` .'i .:' ` =,:: =: :. ; - _ ...: •.. •: Wash racks'_ plastic drain clause. - _,' place3_by. April ]D, 1987. conditions which have ledhave!"been repaired. .. - . or, in the opinion of - • ' -. - : City, could lead to.in- - - 'jury,, the* Director may immediately exercise op- tion "d" under default - : provisions ,(item X) of - - this Agreement . Pa es 13 14. Claus • "Concessionaire shall - -' - - - -• - - - - - develop, design and cause - - - - - _ - - - _ - - be his tructod at - - - sole expense the following " _ minimum improvements within the first year of operation: Two (2) riding rings _ -Management must provide Management states there are Arenas must be available to.. No further action required. two riding rings (arenas). seven arenas open for the boarders (all arenas). -Management is providing boarders, plus one which is seven arenas and' all arenas not available "when. lessons - are,available to boarders _ = - - - - - are bein conducted_ "Th' - g� - This _ - sub "ect. to- a loved fees J P _ - is a total of "eik ht arenas: when Tessons or -events are One waitin .area= ' aiWtin area: aiid.;office4 `One arena has; portable* view - not being -conducted. and .office. •One- (1) - - _ _ have been -built.,- _ ing. stands.: -They are ro- P arena and viewing - - viding.during"shows when' - stands. _ needed. Perimeter fencing of _ .:-The facility is not com- . Has not fenced the center N/A _~" Will be- fenced" when the entire premises. . pletely fenced because upon_ request - of the city. city 'purchases the the city doesn't own three. lots. No further - three lots adjacent to -action._;-.: , the facility. 10. Boarders' Concerns W. Staff Response Management Response' Boarders' Committee Response March 10, 1987 Page Eleven Disposition Each breaking pen shall Management is required to. There is no breaking pen Agree with staff. No further action at this be 7' high x 40' dia construct. breaking pen at this time..- Planning time. . Development to metes. The waiting. and' construction to be. com— be completed. by July 1, area - shall contain pleted by July 1,' 1987. 1987. tables and chairs and Management disagrees with include an office of not staff that the breaking pen less ,than 22' x 12' is required. - with steel frames, lum— ber wall inserts and " : - _ aluminum roof. One of the outdoor-.' At the .present time, there ' Portable bleachers are. pro- .Agree with staff .--_No- further action re required. arenas shall be con— are.no permanent bleach— vided_during'.shows. structed of two inch ers. Staff feels portable _ (2") steel post set in bleachers are acceptable.: - concrete and two inch (2") steel rail with steel frame and lumber bleachers. The parking spaces shall Agreement requires that Management to contact be large enough to prior to a.special event, Development Services De — accommodate car —trailer management is to contact . _ partment when special and camper units with,.• Development- Services De— events are -to take place electricity and water' :: partment ' which will to have staff _designate hook-up. Designated-, designate parking area ` .parking.. _ - parking spaces shall for overflow. The lo— .- ' be. provided for indi= cation- and .size'of .the -' viduals who wish to designated. parking area park on the premises would depend on the and use the City's nature of the special equestrian trails. Over— event. = flow parking areas for special events shall also be designed by Development Services. (City approved fees may be charged.)" 11' Did not address issue. No further action required. City.park property adjacent to the center will be utilized upon request and approved by the department director.. March 10, 1987 Page Twelve v:_ Boarders' Concerns Staff Response Management Response Boarders' Committee Response Disposition Page Page 14,- Clause VII.B., Additional improvements Management will request Disagree with staff_ Management will request "In addition to the im- shall have staff approval. staff approval before city approval. No provements required - Boarders and..general . commencing .any improve— .. further action. . . . Concessionaire public are entitled to ments.. may develop, design and their use when the _ cause to. be constructed approved fees are paid.. - -at his sole expense other improvements' provided, however, that there is = public demand for such improvements and pro—:. vided further that the Director shall approve -. each of these improve— . ments before. construe—' tion of same.,. Page 24, Clause XI., At the present, there are Agree with staff response. staff is incorrect: staff requested boarders to "Concessionaire shall not no sublessees. _ Manage— -• ' show proof_ They have not underlet or sublet the ment will make written • provided as of April 3, 1987. subject premises or any request in future which No further action required. part thereof or allow the will be subject to Council same to be used or occu— approval. pied by any other person or for any. other use than that -herein specified, nor' assign this Agreement, -•:. nor_ transfer; - assign or. _ in any ,manner `convey... any of" the 'rights or privileges therein. granted - without the written con— sent of City." How does .City interpret- Subletting by management Management will seek City N/A Management will request sub —let or conveying .-must be approved by City. -, approval for subletting, city approval. No rights and. -,privileges? further action. 12. i ASSIGNMENT OF CONCESSION AGREEMENT HUNTINGTON PARK EQUESTRIAN CENTER This Assignment of rights in a Concession Agreement is i entered into this 9th day of October, 1986, by and between BETTER BUILT ENTERPRISES, INC., a California corporation, hereinafter called Assignor, and NATIONAL EQUESTRIAN CENTERS, INC., a California corporation, hereinafter called Assignee. WITNESSETH WHEREAS, Assignor is the concessionaire of Huntington Central Park Equestrian Center, pursuant to that certain "CONCESSION AGREEMENT HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER" dated October 25, 1982, by and between the City of Huntington Beach, a municipal corporation of the State of California, and Assignor; and WHEREAS, Assignor desires to assign to Assignee all of its right, title and interest in and to the aforementioned Concession Agreement; and WHEREAS, after such assignment, the stock of Assignee will be owned 50% by Eddie Milligan, 25% by Willard V. Harris, Jr., and 25% by Mary Harris; and WHEREAS, the consent of the City of Huntington Beach is required for this Assignment to be effective, NOW THEREFORE, the parties agree as follows: 1. Assignor hereby assigns and transfers to Assignee all of its right, title and interest in and to said Concession Agreement. 2. Assignee hereby accepts the assignment of the Concession Agreement and expressly assumes and agrees to keep, perform and fulfill all of the rights, duties, obligations, and liabilities of 1. Assignor thereunder, including the duty to pay all rental and other charges pursuant to said Concession Agreement with city. 3. Assignee shall construct a retention basin and separation structure to protect Huntington Lake from siltation and organic contamination. Plans for retention basin shall be submitted to the Director of Public Works for approval within 30 days from execution of this agreement. Plans for the separation structure shall be submitted to the California Regional Water Quality Control Board for approval within 30 days from execution of this agreement. Construction of the retention basin as approved by the city shall be complete within 90 days from the date of approval of final plans. This will be constructed off -site on city property as per approved plans. Construction of the separation structure as approved by the Regional Water Board shall be complete within 60 days of approval by city and Regional Water Quality Control Board. Assignee shall guarantee construction of the retention basin and separation structure by posting a $10,000 cash bond prior to the execution and delivery of this agreement by the city 4. Attached herewith and marked Exhibit "A" is a conceptual landscaping plan and Assignee agrees to submit to the City for review and approval by the City Engineer a detailed construction landscaping plan prepared by a California licensed landscape architect by January 1, 1987. The portions of the landscaping as noted on Exhibit "A" shall be completed within one hundred and twenty (120) days from the date of execution of this agreement. Installation of all the landscaping as shown on the 2. approved detailed landscaping plan shall be completed within one (1) year from the date of execution of this agreement. 5. Assignee will submit to the City Engineer a detailed construction plan for lighting within ninety (90) days from the date of this agreement and construction shall be completed within one (1) year from the date of this agreement. 6. Assignee further agrees to assume the defense of any legal action against the city which may result from this assignment and to indemnify and hold city harmless from and against any loss that may result therefrom. 7. In consideration of this assignment and its approval by city, Assignor and Assignee agree that paragraph XI of the Concession Agreement shall be amended to add thereto a restriction as follows: Any dissolution, merger, consolidation, or other reorganization of concessionaire, or the sale, assignment or other transfer of any stock or interest in the corporation totaling more than 25% of the capital stock or interest of concessionaire, or the sale of 51% of the value of the assets of concessionaire, shall be deemed a voluntary assignment. Provided, however, that any transfer of shares to a shareholder's spouse, children, or grandchildren in a living trust or to a testamentary trust caused by the shareholder's death shall be excepted from this provision. 3. IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment of Concession Agreement. NATIONAL EQUESTRIAN CENTERS, INC. a California orpora-t-ion (Assignee) By4- X� � �/`CL�C Title By: Title BETTER BUILT ENTERPRISES, INC. a Californi or oration (Assignor By• Title NO FURTHER TEXT ON THIS PAGE 4. V CONSENT The City of Huntington Beach does hereby acknowledge that they have read and approved the terms and conditions of the above assignment of the Concession Agreement and consent to the assignment as provided for in the Clause XI of the original lease. ATTEST: City Clerk REVIEW AND APPROVED: Kw9 City Administrator 1659L 10-15-86 CITY OF HUNTINGTON BEACH, a municipal corporation 44 +�• Mayor APPROVED AS TO FORM: City Attorn y INITIATED AND APPROVED: Director of Community pervices 5. �R1V6 T.M Vale Ar I / 1ee' . aaa F..1— a ..V..e.1 0 ol ISO Sol IBM HUHUOHOUDH [EQUESTROAH CEH7HAL cEH7EH PARK -O B�mTE.MT�oJ.T.eYE.KR�IYBUILT UILT QEN T�E...uR.v..P.+KovRJ{S. ES'lJ ]A! W LLNM AVE •RG101A. CA 91000 (810135a-l576 n Lamar Asaoclates .��•...`b�1.�.`I..� X bA (ca0,35 CURRENT HORSE -OWNER PROBLEMS IN HUNTINGTON BEACH A Summary for the City Council by Kristen Bender With the closing of two major boarding stables which between them held more than 200 horses and ponies, there is a considerable need for additional horse stabling space in Huntington Beach. The need is particularly acute for the owners of "hobby" horses ---animals kept for pleasure riding and general enjoyment rather than for showing and competition. Most of the local horse owners are in this "hobby" category, keeping horses and/or ponies for themselves or their children, 6r breeding and raising young horses for the pleasure of working with the animals themselves. (More than 10 years association with horses in Huntington Beach has shown that only 5-30% of the local horse owners are interested in showing, competition, and professional training ---the other 70-95% of local owners are interested in horses for the hobby aspects just explained.) Most of the horses being displaced by current land development are in this "hobby" category, and there is presently no local alternative for space for them. Available stables in the San Juan Capistrano or Norco -Riverside areas are too far away for daily access, particularly by children who ride after school. The only sizeable stables remaining nearby are the fairgrounds and the H. B. Equestrian Center, both of which are strongly training -and -competition oriented, much more expensive, and have long waiting lists. The Huntington Beach Equestrian Center is on city -owned park land and therefore in effect "subsidized" by local tax dollars, including those of the local "hobby" horse owners. The initial intent of the city (and of the many local horse people who worked to get the Center established) was to provide facilities and stabling to serve local needs. In reality, what we have is a facility that is physically very attractive (especially to non -horse -owning people), but as constructed and presently run, does not fill the needs of hobby owners and riders for the following reasons: 1. There is not enough space. At present there is a 6 month to 1 year waiting list to bring a horse into an outdoor pipe stall. The only readily -available openings are in trainers' barns, where $200-$300 per month in training fees must be paid in addition to the barn board fees of over $200 per month. 2. Most of the horse housing at the Center is in enclosed box stalls in barns, with only a small proportion in outdoor pipe corrals ("paddocks"). Most hobby owners do not want to house their horses shut up in barn stalls because the horses are cut off from sunlight, separated from the sight and company of other horses, get much less natural movement and exercise, and are more prone to health problems such as colic,' depression, and lameness problems caused by lack of blood circulation to the feet and legs. 3. The cost, even for pipe stalls that do exist at the Center is considerably above the average for the private boarding stables in the area. The Equestrian Center charges $175/month ---Fox Meadow charges $135 and Huntington Crest $125-$135. 4. Use of most of the facilities of the Center, especially the riding arenas, is reserved for those riders enrolled with a professional trainer or taking lessons with the Center staff. Only one ring (out of five) has'been available for recreational riders. Regardless of the previous training or competence of horse or owner, hobby owners with English -trained, horses are not allowed to use the jumps or ride in the jump arenas unless they pay for training from one of the professionals. 5. The competition -focussed atmosphere created in a trainer - oriented facility such as this one is not what most families and hobby owners are interested in , or what they want for their children. The corrosive effect of wealth on value is quickly communicated among children (and adults) in such an atmosphere. The child whose family buys him a very expensive horse, puts it in the care of a trainer (at considerable additional cost), and then pays to transport horse and child to numerous shows _ is perceived as being much "better" than the child who does the daily care and exercise of his own horse, perhaps with lessons to improve riding technique when desired. The facts that the second child may be a much better horseman (rather than only a more finished -looking rider on a trainer -finished horse), that his horse may be a much more pleasurable horse to ride than the high-priced mount, and that he may have a great deal more fun with his lower -priced horse, are smothered in the atmosphere, and the child not "in training" is looked down on or even treated as a nuisance. 6. The facilities and present management prevent use of, the Equestrian Calmer by hobby people wanting to breed, raise,'and train their own foals and young horses, or by families buying ponies for their younger children instead of full-sized horses. In summary, there are two basic problems here: A. The lack of sufficient space in the Huntington Beach area for hobby or recreational horses and ponies. B. The policies and present management of the Equestrian Center. Even if space for more horses were added by the Equestrian Center, the following problems would still exist. 1. The cost is much higher (especially if the added spaces were barn stalls rather than the needed pipe corrals). 2. The non -training "hobby" boarders would not be allowed to use most of the facilities. 3. Many desired recreational horse activities are not allowed there, i.e. a. ponies, b. breeding, foaling, and young horses (not enrolled with a professional trainer), c. recreational riding in the arenas and recreational jumping by English riders. We need two things in Huntington Beach to fill the present need: A. more stall space ---primarily pipe corrals, not barns, and sufficient to house the 200+ horses displaced by the closing of Fox Meadow and Four Seasons Stables by development. B. facilities and atmosphere managed for hobby or recreational owners and riders, rather than for professional trainers and their more affluent, competition -oriented clients. Both of these things could best be provided by additional, privately operated boarding stable(s) not under the management of the present Huntington Beach -Equestrian Center. yao. �U i-zw - s REQUES , FOR CITY COUNCOACTION C,,//), Date November 18, 1991 Submitted to: The Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrato Prepared by: Ron Hagan, Director, Community Services Subject: HUNTINGTON CENTRAL PARK EQUESTRIAN CEN AP FEE INCREASES PROVED BY CITY COUNCIL p Consistent with Council Policy? ( ] Yes [ ] New Policy or Exception CI CLE�K Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: 15M National Equestrian Centers, Inc., operator of the Huntington Central Park Equestrian Center, has requested fee increases. RECOMMENDATION Approve the fee increases for the Huntington Central Park Equestrian Center as requested by National Equestrian Centers, Inc., from $305 to $320 per month for a box stall and from $215 to $225 per month for a pipe stall. New fees to be effective January 1, 1992. ANALYSIS National Equestrian Centers, Inc.; has contacted the city to request that the boarders' fees for box stalls and 12' X 24' pipe stalls be increased. Section IV.L. of the concessionaire's agreement states: All rates for services and merchandise charged by Concessionaire shall be uniform at all times in seasons and subject to the approval of the City. The standard used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services. The concessionaire last requested and received permission for fee increases for box stalls, pipe stalls, tack room and riding school lessons on August 20, 1990 which were effective October 1, 1990. Prices for stalls and services vary from equestrian center to equestrian center. Centers vary in size, quality and quantity of services and amenities. PIO 5/85 REQUEST FOR CITY COUNCIL ACTION Page two The Huntington Central Park Equestrian Center Committee (HCPEC Committee) addressed the fee increase issue at its October 15 meeting. It formed a subcommittee to look for comparable facilities. A special meeting of the committee was held on October 29. The subcommittee evaluated other equestrian centers, but found none that were directly comparable relative to size, amenities and run by a private concessionaire on public land. After considerable discussion, including input from boarders not on the committee, the owners of National Equestrian Centers, Inc. decided to reduce the request from $325 to $320 for box stalls and from $230 to $225 for pipe stalls. This is lower than the Consumers Price Index of 5.2 percent for the 15 month period (October, 1990 to January, 1992) as determined by the city's Finance Director. The HCPEC Committee voted 12-0-1 in favor of the recommended fees. N/A 1. Direct staff to do an in-depth analysis of HCPEC and other equestrian centers for services and fees. 2. Increase fees commensurate with the Consumer Price Index. None RH:JBE:am REQUES i FOR CITY COUNCIL ACTION Date November 18, 1991 Submitted to: The Honorable Mayor and City Council Submitted b Michael T. Uberuaga, City Administr toT Y: Prepared by: Ron Hagan, Director, Community Services Subject: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASES Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: National Equestrian Centers, Inc., operator of the Huntington Central Park Equestrian Center, has requested fee increases. Approve the fee increases for the Huntington Central Park Equestrian Center as requested by National Equestrian Centers, Inc., from $305 to $320 per month for a box stall and from $215 to $225 per month for a pipe stall. New fees to be effective January 1, 1992. National Equestrian Centers--, Inc.; has contacted the city to request that the boarders' fees for box stalls and 12' X 24' pipe stalls be increased. Section IV:L. of the concessionaire's agreement states: All rates for services and merchandise charged by Concessionaire shall be uniform at all times in seasons and subject to the approval of the City. The standard used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services. The concessionaire last requested and received permission for fee increases for box stalls, pipe stalls, tack room and riding school lessons on August 20, 1990 which were effective October 1, 1990. Prices for stalls and services vary from equestrian center to equestrian center. Centers vary in size, quality and quantity of services and amenities. , I G A133 REQUEST FOR CITY COUNCIL ACTION Page two The Huntington Central Park Equestrian Center Committee (HCPEC Committee) addressed the fee increase issue at its October 15 meeting. It formed a subcommittee to look for comparable facilities. A special meeting of the committee was held on October 29. The subcommittee evaluated other equestrian centers, but found none that were directly comparable relative to size, amenities and run by a private concessionaire on public land. After considerable discussion, including input from boarders not on the committee, the owners of National Equestrian Centers, Inc. decided to reduce the request from $325 to $320 for box stalls and from $230 to $225 for pipe stalls. This is lower than the Consumers Price Index of 5.2 percent for the 15 month period (October, 1990 to January, 1992) as determined by the city's Finance Director. The HCPEC Committee voted 12-0-1 in favor of the recommended fees. ► I ej 8► • : N/A 1. Direct staff to do an in-depth analysis of HCPEC and other equestrian centers for services and fees. 2. Increase fees commensurate with the Consumer Price Index. ATTACHMENTS None RH:JBE:am Submitted to: --9A0, 70 FOR CITY COUNCI. ACTIO (I Date Ailg,ist 20, iq)n The Honorable Mayor and City Council Submitted by: _, __ Michael T. Uberua a, City Administrator _ Prepared by: c x Jim B. Engle, ing Director, Community Services_,,,, Subject: HUNTINGTON CENTRAL PARR EQUESTRIAN CENTER FEE "' co m Consistent with Council Poll cy�EASEs�]/Yes [ ] New Policy or Exception r' rn t NO n�o Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: LA STATEMENT OF ISSUE National Equestrian Centers, Inc., operator of the Huntington Central Park Equestrian Center (HCPEC), has requested fee increases. RECOMMENDATION Approve the fee increases for the Huntington Central Park Equestrian Center as requested by National Equestrian Centers, Inc. to $305/month for a box stall; $215/month for a 12'x 24' pipe stall; $245/month for 24' x 24' pipe stall; $150/month for 12'x 12' tack room; and, $35/hour riding school lessons. New fees to be effective October 1, 1990. AWAT.VCTC National Equestrian Centers, Inc. has contacted the city to request that the boarders' fees for box stalls, pipe stalls, tack rooms, and riding school lessons be increased. Section IV.L. of the concessionaire's agreement states: All rates for services and merchandise charged by CONCESSIONAIRE shall be uniform at all times and seasons and subject to the approval of the CITY. The standard used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services. The concessionaire last requested and received permission for a fee increase for box and pipe stalls on May 15, 1989. Prices for these stalls vary from equestrian center to equestrian center. Equestrian centers vary in size and quality and quantity of services and amenities. The survey attached provides information regarding the number of box and pipe stalls, arenas, types of feed included in boarding fees and whether the center is public, private, or private on public land to assist Council in making its decision. The arenas noted include any size of arena from turnouts up to the largest size arena as long as it is fenced and can be used to ride in by a boarder PIO 4/84 Request for Council Action August 20, 1990 Page two or trainer. Monthly financial statements and profit/loss statements can be provided to Council if desired. If additional information is requested, an in-depth analysis may have to be undertaken by a party knowledgeable in financial matters, equestrian issues, and other equestrian centers' fees, facilities and services. HCPEC is proposing an increase for the 24'x 24' foaling pipe stalls from $225 to $245. Mary Harris notes in her August 7 letter that, due to an oversight on her part, this fee has never received Council approval. The HCPEC Boarders Committee has not reviewed the proposed fees due to the conflict of interest that would exist in boarders making recommendations on the fees that would be charged to them by HCPEC management. Prior to the last increase in May, 1989, the committee did request that the proposed fees and other related information be made available to the individual committee members prior to the issue being addressed by City Council. The committee members have received a copy of this RCA and survey. FUNDING SOURCE None ALTERNATIVE ACTIONS 1. Do an in-depth analysis of HCPEC and other equestrian centers' services and fees; 2. Increase fees commensurate with the Consumers Price Index which is estimated by Administrative Services to be 6.8 percent for the period from May 1989 to October 1990 (date fees would go into effect); 3. Refer the matter to an arbitrator. ATTACHMENTS 1. June 8 and August 7, 1990 letters from Mary Harris 2. Survey JBE:cs HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 18381 Goldenwest Street Huntington Beach, CA 9ZW (714) 848-6565 FAX: (714.) 848-6858 Jim Engle City of Huntington Beach 2000 Hain St. Huntington Beach, Calif. 92648 Re: Fee increase Dear Jim, This letter is a request for approval to increase our fees at the Huntington Central Park Equestrian Center. These fees are proposed to start on September 1, 19?0. Below is the fee schedule we would like approved: Box stalls 12x24 pipe corrals 24x24 pipe corrals 12x12 tack: rooms $305.00 with tack boxes $215.00 with tack: boxes $245. 00 with tack: boxes $150.00 Attached, you will find a current comparable fee schedule from other facilities in Southern California.1- It has been fourteen months since our last fee increase and our costs have escalated on a monthly basis. If you have any questions, please give me a c.a_11 at 865b5, Sincerely, Mary Harris General Mantger Huntington Central Park: Equestrian Center C 4-„ 41 HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 18,481 Goldenwest Street Huntington Beach, CA 92648 (714) 848-6565 FAX: (71 4) 848-6858 June 29, 1990 Jim Engle City of Huntington Beach '2000 Main St. Huntington Beach, Calif. 926-48 Fe: Riding school fee increase Dear Jim, This letter is a request for approval to increase our fees at C the Huntington Central Park Riding School. Below is the fee schedule we would like approved: Per lesson fee: $35.00 Attached, you will find a current comparable fee schedule from other lessons programs in Orange County1f Since the start of the riding school, there has not been a fee increase. If you have any questions, please give me a. call 7 at / 14, 348 65VJ. Sincerely, CL Mary Harris General Manager Huntington Central Pars; Equestrian Center CEN1 k A L FARE EQUESTRIAN CE14TER iPM1 Goldcnacet Street Huntington Beach. CA 92W (714) 848-8565 FAR: (714) M-6858 August 71, 1990 I Jim Engle Acting Cpmmunity Services Director City of Huntington Beach Huntingtpn Beach, Calif. 92646 I Dear Ji , Per our ponversation today, I did not realize that I did not recieve approval for -the foaling pen fee of two hundred twenty ive dollars ($225.00) that I have been charging for this la t year.. I apologize for this oversight. 1 am requesting at this time to raise this fee to two hundred forty five dollars ($245.00). The foaling pen is 24 x 24 and for,this size of stall the price is very reasonable. If you have any questions, please call me at 714/848--6565. Thank -you for your time on this matter. Sincerely, Mary Harris General Manager Huntingdon Central Park Equestrian Center N L O r r 4- O N r C Li V v C/ X X X X X 7 C r ai O ti 4-)r N - N d N +1 - d � ij r a U r OW L .� O 9 V C r an d O t C C W N C r a) r VI r C r uy N 1A r C N Q) N C O. rr Q G/ y ,_ Cf 7 Q d tl O N y r CC b 4- r O rQp r OC 4� rp• 0 r Cr '0 0 E OC �F O oD Of 0 lL fe Oto �, C C 4. +� 4J !� !� 0 !1 O C W O N Equestrian Center C J i N t X C d X- �i c a CL `rc a s 11 0 a c"i A X E3 o. v L and Contact ar oca o o ..- 0 3 +- •� o A o o r o >, v d> COzm aZ za o za t-� z� V)W z ►-a cM a G H.C.P. Equestrian Ctr $285 164 1200 166 $225 2 $100 22 B/yes 9 cubes=re? feed, inc in private/ 2-boarders (120'x250'; 150'x300'); Existing Fee $25/hr w/tack w/tack w/tack P/no boarders fee; baled= city 2-boarders w/trainers using for - opt; 2 flakes/day 15/ leased lunging only (150'xl50'); 1-boarders P sed Fee $35/hr $305 $215 $245 $150 B/yes mo; 3 flakes/day $45/mo land (50'x50'); 3-trainers (120'x250'); w/tack w/tack w/tack P/no 4 flakes/day $75/mo 1-riding school (boarders secondary usage (125'xl25');1-shared bull pen (50'dia); all arenas posted for usag Anaco Ranch private $205 110 Anaheim contractor w/tack Anaheim Hills $25/hr $250 45 Riding Club group w/tack Anaheim Huntington Crest not not N/A Huntington Beach offered offered Industry Hills private $300 160 Industry contractor w/tack L.A. Equestrian Center private $379 330 Burbank contractor w/tack O.C. Fairgrounds Costa Mesa Paddock Riding Club Los Angeles private $305 contractor w/tack $290 w/o tack $60/hr $310 0/hr intro w/tack $185 70 not N/A not N/A B/yes 1 info unavailable info w/tack offered offered P/yes unavail $200 60 not N/A not N/A B/yes 3 baled private w/tack offered offered P/no $145 50 w/tack $155 50 w/tack not N/A offered B/NA P/no not N/A not N/A $100 23 B/yes offered offered P/NA $282 120 not N/A 10'x10' B/yes w/tack offered $150 P/yes 240 not offered 220 not offered N/A not N/A offered N/A not N/A offered $50/mo 40 P/NAs private trainer $100 to 12 B/yes 00 based on size P/NA of turnout stall 2 baled info unavailable trainers -early morning; rest of day shared private shared 7 pellets private/ all arenas are "first come -first city leased served" land 15 cubes private/ 1-boarders; 2-trainers; remainder city leased are shared land 6 baled state each trainer assigned an arena, but all arenas shared 6 cubes private 2-trainers; remainder are shared " • i O N 41 4 r r i0 L. 4J 4- r g0 i C •r C O (n 4 VN L t0 O_ J .-. v 1 Ri N X - N X X N X V b Z 4-1 La C r N r dl 00 � � N r 4 N tT N J� eY .N- 4- r d U r 0 L. O U, O) 7 Q d t C C 41 N C r 41 r N r G r 4/ N N r C N 41 N C d '-+ Q 41 41 r 4j C 41 {> O N r OC b� 4- r O r C O e0 — OC Y- r O 3 g W O 4- O e0 N_ 4- O � ra C C O 4EE► 0N OI 0 c '� 4-3 r "' L +� " N L N 41 43 N i y 0/ d: S. 0OC 4/ C m " i 47 O r C 4 C Equestrian Center Y + u c � V +rs ` m 41 + 0 ,� S ,� > d T a c QL, > ' ar and Contact d e$ o z m a z r o d s z 0 1- e t 0 Q d Q oG d d a a z Z 1-- N m z F�' CD Rancho del Rio private $195 65 $145 135 $185 25 not N/A B/yes 4 baled in 1-trainers; other 3 shared Anaheim contractor w/tack w/tack w/tack offered P/yes transition - shavings included shavings not to be included private/ city land Rancho Sierra Vista private $250 250 $170 66 $285 11 not N/A B/no 7 baled private shared arenas San Juan Capistrano contractor w/tack w/tack w/tack offered P/no San Pascual Stables 30/.5 hr $310 120 $260 30 not N/A not N/A B/yes 2 cubes private/ shared arenas; unwritten Pasadena $60/hr) w/tack est w/tack est offered offered P/yes city land agreement that trainers $290 aren't imposed upon if w/o tack giving instruction Santiago $15/hr $225 24 $140 72 not N/A not N/A B/yes 3 baled private shared arenas Equestrian Center group w/o tack w/o tack offered offered P/no El Toro Showpark not $325 400 $225 60 not N/A not N/A B/yes 12 baled private shared arenas Del Mar offered w/tack w/tack offered offered P/yes Sy are Trails private $225 328 $185 90 not N/A not N/A B/yes 7 cubes private shared arenas San Juan Capistrano contractor w/tack w/tack offered offered P/no (COST SUMMARY: Highest Fee 0/hr group 79 290 260 140 85 N/A 200* Lowest Fee 5/hr group 195 225 1268 145 140 155 N/A 15 Average 0/hr t,7/hr group 78 200 140 08 N/A 103 4696e/4-6 1107 Current Fee Plus group 04 N/A 214 N/A 40 N/A l6.8 % (CPI -estimated from May '89 increase to proposed increase October '90 w/tack w/o tack w/tack w/o tack w/tack w/o tack *attached to turnout stall ------------ HCPEC Existing Fee ---- $25/hr --- ---- $285 ----- ---- $200 ------ ----- 225 ----- ---------------- 100 -Proposed Fee $35/hr $305 $215245 t150 44 o Cr ry of muwn AG-roN BEACH INTER -DEPARTMENT COMMUNICATION NVNTING70N REACH To MAX BOWMAN From GRAIL HUTTON DIRECTOR OF COMMUNITY SERVICES CITY ATTORNEY Subject Date OPINION REGARDING H.B. EQUESTRIAN May 12, 1989 CENTER FEE INCREASES C,f'Y lwi C:) w LO C= QUESTION: If the fees requested by the Equestrian Center are reasonable and customary for like facilities, does the City have the right to disapprove them? ANSWER: No. DISCUSSION: Section "L" of the concession agreement, at page 8, provides that "all rates for services... charged by concessionaire shall be... subject to approval of City. The standard used to approve or disapprove prices shall be the PrQyailinq market Price for the same grade of merchandise and services." (EMPHASIS ADDED) Accordingly, so long as the prices requested are consistent with the "Prevailing Market Price" the price "shall" be approved. If the prices requested are not consistent with the "Prevailing Market Price" it would likewise hold true that they should not be approved. we are advised that.�he Concessionaire and the Community Services Director will supply sufficient information regarding prevailing market prices to support a finding with respect thereto. CONCLUSION: The City Council must apply the "Prevailing Market Price" as the standard in approving or disapproving proposed prices. GAIL HUTTON CITY `` ATTORNEY cc: Art DeLaLoza, Deputy City Attorney r; c� -D. M rn ;0 o x f5 REQUES _ FOR CITY Submitted to: Submitted by: Prepared by: COUNCI ACTIONg Date A ri 1 16, l q9n i 4j -< n m The Honorable Mayor and City Council CA c:) { , w �a Michael T. Uberuaga, City Administrato��"�--�` Jim B. Engle, 1ng Director, Community Services C= Subject: APPROVED BY CITY COUNCIL HCP EQUESTRIAN ENTER - FEE FOR HAY Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception '31-_ 16 - 19 —9-0 Statement of Issue, Recommendation, Analysis, Funding Source, AlternativeA ctions, Attachments: CITY CLERK. STATEMENT OF ISSUE There is a need to evaluate a new fee proposed by the Huntington Central Park Equestrian Center management. RECOMMENDATION Approve a new monthly fee to be charged to boarders by the Huntington Central Park Equestrian Center management for baled hay. 2kNAT.VCT C Huntington Central Park Equestrian Center (HCPEC) management has been, providing horses with baled hay since November, 1989 because of the outbreak of botulism at several stables, although botulism was never detected at HCPEC. Prior to the botulism problem at other areas, hay cubes were the food source for horses. Management returned to cubes when the threat of botulism appeared to be over and because baled hay is more costly. Hay cubes are included in the boarders' rental cost for a stall. Pursuant to Section IV.L. of the concessionaire's agreement, Council must approve the proposed fee. On March 13, 1990, the HCPEC ad hoc committee addressed this issue and recom- mended that management provide baled hay at no additional cost to the boarders. At that time, management indicated it would provide baled hay for $60 per month. Dr. Byrd, a veterinarian who has worked at the Orange County Fairgrounds and other stables, has indicated that stables usually charge $40 to $50 per month extra for baled hay. He noted that several stables are considering returning to cubed hay as a food source. Cathy Edmonson, HCPEC Committee member, has worked with management on an alternative that should be more acceptable to all parties. It entails providing baled hay for boarders who supply a hay feeder at a one time cost of $15.94 (wholesale cost including tax). The cost to boarders for baled hay would then be as follows: $15 per month for two flakes per day, $45 per month for three flakes per day, and $75 per month for four flakes per day .000 PIO 4/84 `HCP Equestrian Center - :ee for Hay April 16, 1990 Page 2 The cost is reduced from management's original proposal because the hay feeder reduces the amount of wasted hay. Management indicated that due to the cost of baled hay, it cannot afford to offer it as an optional service unless boarders pay the additional fee. There is no additional cost if the boarder desires cubed hay. FUNDING SOURCE None ALTERNATIVES Do not offer optional service. ATTACHMENTS 1. Proposed fee and cost analysis 2. Mary Harris' April 3, 1990 letter 3. Survey of Stables re: Baled Hay JBE:cs Proposed Fees: Cost Analysis: Boarder's Cost= PROPOSED FEES AND COST ANALYSIS $15/month for 2 flakes $45/month for 3 flakes $75/month for 4 flakes 2 flakes/day x 30 day/mo 60 flakes/mo 410 flakes/bale 6 bales/mo x $10/bale $60/mo -$45 cubes* $15/mo 3 flakes/day x 30 days/mo 90 flakes/mo :10 flakes/bale 4 flakes/day x 30 days/mo 120 flakes/mo T10 flakes/bale 9 bales/mo 12 bales/mo x $10/bale x $10/bale $90/mo -$45 cubes* $45/mo $120/mo -$45.cubes* $75/mo *Cost of $45 for hay cubes is deducted since this is paid as part of the boarder's monthly stall rental. EQUESTRIAN CF0T8R 18381Gmdenww*t Blvd. April 3, 1990 dim Engle City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Re: Fee charge for baled hay Dean Jim, 1� A representative from our boarders committee, KathyA% monson,` , came up with a solution to the additional fee charge for hay. After checking the figures, it is a solution that will work for the Equestrian Center. 1 Boarders have the choice of one fseding program: . 1' Cubed hay - provided at no edditonal cost 2. 2 flakes of hay per day = $15'00 per month (6 bales a month at $10.00 = $60.00 minus $45.00 for cubes) 3. 3 flakes of hay per day = $45.00 per month (9 bales a month at $10,00 = $90.00 minus $45'00 for cubes) 4. 4 flakes of hay per day = $75.00 per month (K bales a , month at $10.00 - $120.00 minus $45.00 for cubes) If the boarders choose one of the hay options, they will have to provide a hay feeder, which the taqk store "Bits & Pi8ces" will provide at their cost plus tax 1$15.94>' With a hay feeder, there will be Ivy, wawte and labor involved with feeding hay. As you know, I need the City Councils approval. If you could put this on the agenda as soon as possible, I woul(j appreciate it. Thank -you for all your help in this matter. Sincerely Mary Harris General Wager Huntington Central Park Equestrian Center / 04-o-:-1 : o3 : -� 7rM � oc STABLES SURVEY RE: BALED HAY O V 4) h• C (Ai G7 � a 4 N C� i � ro O s Equestrian Centers >'o, Contacted and > Contact Name = h h N N L ro C1 d ++ CD GJ y C d V Qf >, 7 W 7 to h 61 C ro CJ O �— N G1 r t L E w of Y- C >, O ro L. i Z1 ro i ro >> 7 N t N N N L ro 4J rn t n u t N ro O S. +J i d iJ ro N N t C • •r- O! C d/ G1 U �`• O Of L V O "a > >, • 4 r •� i ro V N > C > +) > t d N O ro O ro O N o r i CI- i c a, v ro m n n N 0 N o +) r ro O 7 O r C d ro 3 >> V >, ro +J 4- Z L. ro L 10 0 O O O C L O N 4- C O c++ c ro av- .• o to on Anaheim Hills Riding yes - no - - - Club, Anaheim Contact: Kelly Huntington Crest, no no no $60/mo. no no Huntington Beach never Contact: Linda Felix used cubes Ortega Equestrian Ctr. no no no $50/mo. no no San Juan Capistrano approx. Contact: Dee Dee Gates 0. C. Fairgrounds no decision no fee included no no Costa Mesa pending in monthly Contact: Bonnie Monary boarding fee of $290/mo. River Trail Stables, no decision no- $50/mo. no no Orange pending Contact: Leslie Haradon Sycamore Trails, yes - no - - - San Juan Capistrano Contact: Robin Crestwell Santiago Equestrian no no no fee included no no Center, E1 Toro in monthly Contact: Debbie Grogan boarding fee which ranges from $140 - $225/mo. depending on accommodations Rancho Del Rio no no no fee included no no Anaheim never in monthly Contact: Terry Orvis used boarding fee cubes (fee wouldn't be given out) L.A. Equestrian Center no decision no fee included no no Griffith Park pending in monthly Equestrian Office, Burbank boarding fee Contact: Pam Pierce and which ranges Robin Cohen from $265 - $356/mo. depending on i accommodations CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK December 10, 1992 Golden Pacific Bank P. 0. Box 630 Ontario, CA 91760 Attn: Ron DeNapoli, Vice President/Manager SBA Dept. CALIFORNIA 92648 Enclosed is an executed copy of an Amendment to Concession Agreement between the City of Huntington Beach and National Equestrian Centers, Inc., for the Huntington Central Park Equestrian Center which was approved by the City Council of the City of Huntington Beach on November 16, 1992. t� Connie Brockway City Clerk CB:bt Enc. (Telephone: 714-536-5227 ) r� O 94 a a %- N CITY OF HUNTINGTON BEACH CITY COUNCIL COMMUNICATION • • • • MUNTINGTON BEACH N RABLE MAYOR AND CITY COUNCIL TO HONORABLE GRACE O FROM W4N�`HFL MEMBERS Councilwoman SUBJECT EQUESTRIAN CENTER GRIEVANCE DATEJanuary 23, 1983 PROCEDURE The grievance procedure at the Huntington Central Park Equestrian Center is as follows: 1. Equestrian center management will endeavor to mitigate problems or concerns of equestrian center users when such problem or concern is brought to its attention. 2. If the issue is not mutually resolved, concerned parties are to submit a written description of the issue, including why it is not resolved, to the equestrian center committee. The committee is to be composed of two management representa- tives, one representative from each barn, one representative from each cluster of paddocks, and one representative from the Community Services Commission (each representative to be elected by the group they represent from anyone who volunteers for the position). The Director of Community Services, or his designee, will verify each representative and serve as staff liaison. The committee will meet on an "as needed" basis, but no less frequently than quarterly. Notice of meetings is to be posted in each area of the center at least two weeks prior to the meeting. The committee's function is to hear grievances, find facts, evaluate issues, examine alternatives, and recommend solutions. 3. The Director of Community Services, or his designee, is the next step in the appeal process and in resol- ving any issue will utilize documentation presented by the committee, along with his authority as defined in the agreement. A. City Council is the final appeal body. GW: bb xc: Paul Cook Max Bowman /, 4ww r-" Page 9 - Council/Agency ,4inutes - 2/1/88 (City Council) HUMAN RESOURCES BOARD APPOINTMENTS APPROVED - BORNS/CHURCHILL/ WALTON/WIEBE/YOUNGBLOOD On motion by Finley, second Bannister, Council unanimously appointed the fol- lowing members to the Human Resources Board: Vivian Borns, Lisa Taylor Churchill, Shirley Ann Walton, Karl H. Wiebe, Barbara G. Youngblood. (City Council) STATUS REPORT REQUESTED - PROPOSED LINEAR PARK A motion was made by Finley, seconded by Kelly, to request a status report on the proposed linear park to be submitted to Council by February 11, 1988. The motion carried by unanimous vote. (City _Council) ENVIRONMENTAL BOARD'S "HAZARDOUS MATERIALS IN THE HOME" LETTER OF APPRECIATION TO BE SENT Councilwoman Finley commended the video "Hazardous Materials in the Home" A motion was made by Finley, seconded by Winchell, to send a letter of appre- ciation to Lee Wieder, Environmental Board, Orange County Burn Center, Public Information Office, Tim Flanagan, Huntington Beach/Fountain Valley Board of Realtors and Rainbow Disposal for their participation in the "Hazardous Mater- ials in the Home" video. The motion carried by the following roll call vote: AYES: Kelly, Green, Finley, Erskine, Mays, Winchell, Bannister NOES: None ABSENT: None (City Council) HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER GRIEVANCE PROCEDURE - ACCEPTED AS AMENDED AND ADDED TO RULES AND REGULATIONS Councilwoman Winchell referred to her communication to Council dated January 28, 1988 recommended an Equestrian Center Grievance Procedure. Following discussion, a motion was made by Bannister, seconded by Kelly, to accept the Equestrian Center Grievance Procedure, as amended, and to add it to the Rules and Regulations: 1. Equestrian center management will endeavor to mitigate problems or con- cerns of equestrian center users when such problem or concern is brought to its attention. 2. If the issue is not mutually resolved, concerned parties are to submit a written description of the issue, including why it is not resolved, to the equestrian center committee. The committee is to be composed of two management representatives, one representative from each barn, one repre- sentative from each row f paddocks, and one representative from the Com- munity Services Commission (each representative to be elected by the group they represent from anyone who volunteers for the position). The Director of Community Services, or his designee, will verify each repre- sentative and serve as staff liaison. The committee will meet on an "as needed" basis, but no less frequently than quarterly. Notice of meetings is to be posted in each area of the center at least two weeks prior to the meeting. The committee's function is to hear grievances, find facts, evaluate issues, examine alternatives, and recommend solutions. The com- mittee will also function as an advisory body to the management and City Council regarding equestrian center services, facilities and operation. The committee will provide the City Council with a quarterly activity report. Page 10 - Council/Agent,, Minutes - 2/1/88 3. The Director of Community Services, or his designee, is the next step in the appeal process and in resolving any issue will utilize documentation presented by the committee, along with his authority as defined in the agreement. 4. City Council is the final appeal body. The motion carried by the following roll call vote: AYES: Kelly, Green, Finley, Erskine, Mays, Winchell, Bannister NOES: None ABSENT: None (City Council) REPORT REQUESTED - NON-PROFIT/TAX EXEMPT STATUS - PIER GROUP Discussion was held regarding the request, during the Public Comments portion of the meeting, requesting a non-profit and tax exempt status of the PIER Group. Councilman Mays requested the City Attorney to review the issue of granting the PIER Group non-profit and tax exempt status and to submit a report on the matter to Council. CITY COUNCIL - CLOSED SESSION Mayor Erskine called a closed session of Council pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has already been initiated formally and to which the the City is a party. The title of the litigation is SBE Financial Corp. vs City of Hunting- ton Beach - 0. C. Superior Court Case 53-43-52 and Orange County Bankruptcy Court #SA 87-07118 JR. RECESS - RECONVENE The Mayor called a recess of Council at 10:50 p.m. The meeting was reconvened at 11:05 p.m. ADJOURNMENT - COUNCIL/REDEVELOPMENT AGENCY The Mayor/Chairman adjourned the regular meeting of the City Council and the regular meeting of the Redevelopment Agency of the City of Huntington Beach to 7 p.m., Thursday, February 11, 1988 in the Council Chamber, Civic Center Com- plex. Alicia M. Wentworth Clerk of the Redevelopment Agency and City Clerk and ex-officio Clerk of the City Council of the City of ATTEST: Huntington Beach, California BY Deputy City Clerk/Deputy Clerk City Clerk/Clerk Mayor/Chairman BY Deputy City Clerk/Deputy Clerk V ` REQUE% 'FOR CITY COUNCI, ACTION Date December 23, 1987 Submitted to: The Honorable Mayor and City Coun li On! 1217 /F Submitted by: Paul Cook, City Administrator (✓- Prepared by: Melvin M. Bowman, Director, Community Service Subject: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER RULES AND REGULAT ONS Consistent with Council Policy? [ ]Yes [ ]New Policy or Exception 5�,Q„1112��rsv Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a need to establish rules and regulations for the Huntington Central Park Equestrian Center. RECOMMENDATION Approve Exhibit A, Huntington Central Park Equestrian Center Rules and Regulations. ANALYSIS At its December 7, 1987, meeting, the City Council referred the Huntington Central Park Equestrian Center rules and regulations to Community Services and City Attorney's Office staff for review. A meeting was held December 22, 1987 with representatives from Community Services and the City Attorney's Office and the Council Ad Hoc committee on the equestrian center. It was the committee's consensus that the Exhibit A rules and regulations for the equestrian center were reasonable. ALTERNATIVE ACTIONS 1. Wait until the financial audit and/or the five-year renegotiation period to implement changes in the equestrian center operation. 2. Modify the Exhibit A rules and regulations. ATTACHMENTS Exhibit A rules and regulations RCA continued from December 7, 1987 Council meeting MMB:cs PIO 4/84 Page 6 - Minutes Council/Agency - 1/19/88 (City Council) PROFESSIONAL SERVICES AGREEMENT - WILLDAN & ASSOC - ENVIRON- MENTAL IMPACT REPORT FOR GPA REQUEST ON ASCON PROPERTY - SW CORNER MAGNOLIA/- NEWLAND The Deputy City Clerk presented a communication from the Deputy City Admini- strator/Community Development regarding a Professional Services Agreement between the City and Willdan Associates, Inc. to prepare an Environmental Impact Report on the Ascon Property General Plan Amendment request. A motion was made by Finley, seconded by Kelly, to approve and authorize exe- cution of the Professional Services Agreement between the City and Willdan Associates, Inc., for Environmental and Planning Services to prepare an Envi- ronmental Impact Report as required by the California Environmental Quality Act to analyze the potential impacts of the Ascon Property General Plan Amend- ment request and to direct staff to include a complete study on the contents of the mud dump in the Environmental Impact Report. The motion carried by the following roll call vote: AYES: Kelly, Green, Finley, Erskine, Mays, Winchell, Bannister NOES: None ABSENT: None (City Council) HUNTINGTON CENTRAL PARK EQUESTRIAN RULES & REGULATIONS - APPROVED AS AMENDED The Deputy City Clerk presented a communication from the Community Services Director transmitting proposed rules and regulations for the Huntington Cen- tral Park Equestrian Center. The Community Services Director presented a staff report. Councilwoman Winchell reported on the amendments to the Rules and Regulations as recom- mended by the Equestrian Ad Hoc Committee. A motion was made by Kelly, seconded by Mays, to approve the Huntington Cen- tral Park Equestrian Center Rules and Regulations, as set forth in "Exhibit A" of the December 23, 1987 RCA, amended General Rules as follows: 3. Dogs in Equestrian Center must be on a six foot leash. 8. Parking on concrete parking lots only. Extra parking will be designated during scheduled shows. 9. No motorized vehicles on dirt surfaces unless loading or unloading horses and/or equipment. 17. Arenas 1, 2 and 3 exclusively for training and jump work (no lunging or turnouts). 18. Arena 4 and 5 for all boarders (no lunging or turnouts). Arena A prior- ity to riding school use; open to all boarders when not being used for lessons. Arena B and C for riding, lunging or turnouts; riders have priority; fifteen minute turnout limit; open to all boarders. Arenas D, E and F for lunging or turnouts; open to all boarders. 31 Page 7 - Minutes Council/Agency - 1/19/88 20. All persons to conduct themselves in a quiet, orderly manner. and amended.Operational Rules as follows: 2. All fees and rules shall be posted in the office for public viewing. 3. Management must provide to prospective boarders prior to rental a written list of services and facilities included in the boarding fee and of optional services and facilities with fees. 4. All fees and rules must have city approval. 8. Equestrian Center to provide city with a copy of the waiting list on a monthly basis along with the current boarder list. 11. Management and employees to conduct business in a quiet, orderly manner and maintain a positive, professional image; no profanity or abusive language. 13. Employees must wear identification badge or patch indicating name and number. The motion carried by the following roll call vote, with Councilmembers Winchell and Finley stating for the record they objected to General Rules 17 and 18, as amended; the vote was as follows: AYES: Kelly, Green, Erskine, Mays, Bannister NOES: Winchell, Finley ABSENT: None Following discussion, it was the consensus of Council that wording to esta- blish a grievance procedure in the Huntington Central Park Equestrian Rules and Regulations would be returned to Council for consideration. (City Council) PROPOSED AMENDMENTS TO SB 1517 - (BERGESON) - AMENDMENTS APPROVED AS AMENDED - THE BOLSA BAY HARBOR & CONSERVATION DISTRICT The City Administrator informed Council/Agency that they had been provided with copies of a communication from James Palin, Deputy City Administrator/ - Zoning Administrator and Richard Barnard, Assistant to the City Administrator regarding the Bolsa Bay Harbor and Conservation District - SB 1517 (Bergeson). Mr. Palin presented Section 119.7 for Council/Agency consideration. Catherine Stone, representing Burke, Williams and Sorenson, city consultant, recommended that the second sentence be deleted from the amendment. Following discussion, a motion was made by Mays, seconded by Green, to approve Section 119.7, as amended, to read as follows: Section 119.7. PROJECT PROPONENT: Project proponent for the purpose of this act shall be a person, firm, corporation, partnership, association, or public agency who proposes to develop or causes to develop real property into resi- dential, commercial or a small craft harbor pursuant to the Bolsa Chica Land Use Plan when certified. HUN- 'GTON CENTRAL PARK EQUESTRIAN C' -ER RULES AND REGULATIONS January 7, 1988 I. GENERAL RULES (to be posted) 1. Equestrian Center Hours: 6:00 a.m. to 10:00 p.m. 2. Public access (non-equine)allowed during open hours; visitors must check in at the office. 3. Dogs not allowed in Equestrian Center, except during scheduled shows and then dogsust be on six foot leashes. 4. No smoking in barn areas: 5. Alcohol and drugs prohibited. 6. No profanity or abusive language. 7. Ten mile per hour speed limit for all vehicles. 8. Parking on concrete parking lots only., 9. Nod riving on dirt surfaces unless loading or unloading horses and/or equipment. 10. Bicycles must be walked, not ridden, on Equestrian Center property. 11. Horses must be walked in aisleways, paddocks, or barn areas. No riding under breezeways or on cement surfaces except to cross driveways. 12. All horses being transported in trailers either entering or leaving Equestrian Center must be checked in at office. 13. Jumping allowed only if approved by Equestrian Center management. 14. Helmets required when jumping. 15. Boarder to clean up after horse after using cross ties or wash racks. 16. Use cross ties to secure horses; do not tie horses to rails, outside of stalls or fences. 17. Arenas 1 and 3 exclusively for training and jump work (no lunging or turnouts). 18. Arenas 4 and 5 for all boarders (no lunging or turnouts). Ar-eaa-2-- for—al]--boa-rder-s—(-no 1-ungi-ng—or tur_nou_tsJ_; tr_ai-ne.rs—have--priority. Arena A priority to riding school use; open to all boarders when not being used for lessons. Arena B and C for riding, lunging or turnouts; riders have priority; fifteen minute turnout limit; open to all boarders. Arenas D, E and F for lunging or turnouts; open to all boarders. ti HUNTINGTON CENTRAL PART. -QUESTRIAN CENTER Page Two RULES AND REGULATIONS January 7, 1988 19. Turnout 6 for concessionaire and turnout 7 for boarders. 20.-Baar_de-r-s- to conduct themselves in a quiet, orderly manner. II. OPERATIONAL RULES (for management) 1. All arenas, including lunging and turnout areas, to be posted including permitted activity and user (boarder and/or trainer). 2. All fees,Ashall be posted in office for public viewing. 3. Management must provide to peIrrspective boarders prior to rental a written list. -.of- services and facilities included in the boarding fee. 1 r_ 4. Boarding and 6ther fees must have city approval. 5. Public day use and overnight use parking spaces for non -boarders must be properly identified with signs. 6. On -site caretaker's phone number will be used as a twenty-four hour number. 7. A key will be provided to any boarder on a short-term emergency basis. 8. Equestrian Center to provide city with a copy of the waiting list o,,k vANu - �\�s� on a monthly basis. 9. Equestrian Center to maintain and improve the footing in all arenas, turnouts, etc., as needed. This is to be reviewed by the Community Services Director or his designee. 10. There will be no discrimination between ponies and horses. c14 _g Lott._ 11. ManagementAto conduct business in a quiet, orderly manner and maintain a positive, professional image. '�, 12. An arena or arenas will be closed by management or city due to unsafe conditions. 2864e/3-4 1/7/88 C.ty — Aidin" T,so r 00' 1,0* 00'x I So' Cement Drive -Pafk;n Lunqng, t.n .ng A -7 10, - 0. .100. J_Ana Area City Riding Trail Utility Area G'.Ss T., —i, 00.ndeck —ing Are. 2 / r I 101,9bv 1 10,X260, Hunt C—S. —:r. A u I c L AIA I oo'. 125' 20'z 24 ;z Utility A,.. I - I.. . --- .. I . . -. --, 1 2-1r— 8'7 REQUES ( FOR CITY COUNCIL ACTION November 25, 1987 Date Submitted to: Honorable Mayor and City Council Submitted by: Paul Cook, City Administrato Prepared by: Melvin M. Bowman, Director, Community Services v�- Subject: EQUESTRIAN CENTER RULES AND REGULATIONS co Consistent with Council Policy? [ Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a need to establish rules and regulations for the Huntington Central Park Equestrian Center. RECOMMENDATION Approve the rules and regulations attached and direct implementation at the Huntington Central Park Equestrian Center. ANALYSIS The City Council, at its October 5 meeting, directed staff to implement rules for the operation of the Equestrian Center in Huntington Central Park. Section XIIIA of the concession agreement states, "Concessionaire and his employees shall at all times abide by all rules and regulations heretofore adopted or that may hereafter be adopted by city." Staff has prepared a list of rules and regulations for the operation of the Equestrian Center that can be implemented at this time. The City Attorney has also reviewed the proposed set of rules and concurs with their implementation under Section XIIIA of the concession agreement. These rules are in agreement with the recommendations made by City Council's Equestrian Center Ad Hoc Committee, with the four following exceptions: (1) Dogs are not permitted on the premises; the committee had allowed dogs on a leash. (2) The committee recommended limiting trainers to two arenas with the remainder being open to the boarders. The agreement calls for only one arena for boarders. The proposed rules provide use by boarders of one upper arena, three lower arenas and three smaller lunging arenas, while limiting trainers to four upper arenas. P10 5/85 REQUEST FOR CITY COUNCIL -TION PAGE TWO EQUESTRIAN CENTER RULES AND REGULATIONS (3) The committee recommended a combination lock or card lock system on the front gate for emergency access. These rules indicate there will be a twenty-four hour phone number for an on -site caretaker available. Also, a key is to be provided to any boarder on a short-term, emergency basis. (4) The committee wanted a public trail through or around the facility to enhance the public riding facilities. It is proposed that the public be allowed into the Equestrian Center with cause, but must check in at the office. Management will be reasonable if there is a valid reason, such as visiting a boarder. FUNDING SOURCE None ALTERNATIVE ACTIONS 1. Wait until the financial audit and/or five-year renegotiation period to implement changes in the Equestrian Center's operation. 2. Modify the rules and regulations as presented in the attachment. ATTACHMENTS Equestrian Center Rules and Regulations Equestrian Center Arena Location Map MMB:mb 0706E/62 HUN._,4GTON CENTRAL PARK EQUESTRIAN CL,.fER RULES AND REGULATIONS 1. Equestrian Center Hours: 6:00 a.m. to 10:00 p.m. 2. No dogs allowed in Equestrian Center. 3. Ten mile per hour speed limit for all vehicles. 4. Parking on concrete parking lots only. 5. No driving on dirt surfaces unless loading or unloading horses and/equipment. 6. Arena 1, 2, 3 and 5 (hunt/jump course) for training and jump work (no lunging, riding or turnouts). 7. Arena 4 for serious, flat or rail work (no lunging, riding or turnouts). Arena A, B and C for riding, lunging or turnouts. Riders have priority. Fifteen minute turnout limit. Arenas D, E and F for lunging or turnouts. All -of these arenas are open to all boarders. 8. Turnout 6 for trainers and turnout 7 for boarders. 9. Jumping allowed only if approved by Equestrian Center management. 10. Helmets required when jumping. 11. Horses must be walked in aisleways, paddocks, or barn areas. No riding under breezeways or on cement surfaces except to cross driveways. 12. Use cross ties to secure horses. Do not tie horses to rails, stalls or fences. 13. Clean up after your horse when using cross ties or wash racks. 14. All horses being transported in trailers either entering or leaving Equestrian Center must be checked in at office. 15. No smoking in barn. areas. 16. Alcohol and drugs prohibited. 17. Bicycles must be walked, not ridden, on Equestrian Center property. 18. Public is allowed access into the Equestrian Center with due cause, but must check in at the office. Management will be reasonable if there is a valid reason, such as visiting a boarder. 19. All arenas, including lunging and turnout areas, to be posted including permitted activity and user (boarder and/or trainer). •HUNTINGTON CENTRAL PART, EQUESTRIAN CENTER RULES AND REGULATIONS Page Two 20. No profanity or abusive language. 21. All fees shall be posted in office for public viewing. 22. Management must provide to perspective boarders prior to rental a written list of services and facilities included in the boarding fee. Boarding and other fees must have city approval. 23. Public day use and overnight use parking spaces must have proper signage for identification. 24. On -site caretaker's phone number will be used as a twenty-four hour number. 25. A key will be provided to any boarder on a short-term emergency basis. 26. The boarders' grievance procedure is as follows: I. Equestrian Center General Manager will interface with public regarding any complaints or concerns of boarders. General Manager will endeavor to provide mitigation measures. II. If issue is not resolved, the Boarders' Committee will evaluate and provide a solution. III. Director of Community Services or his designee is the next step in the appeal process and will utilize his authority as defined in the agreement to resolve the issue. IV. City Council is the final step, in the appeal process. 2864e e Oe;elo:ment r C"Y — Rid,nng Vad k Cement D,i,e -Palk.ng A,— ,-q.ng A— L-ging 0,000, A,ea_ ■ ii City Riding Trail C , ay Riding Trail A-- V. uto Cement Drire Entrance Conditioning 011ie. 't. Track o i frvarsi awt ;iN i 1 •' `r ,; .I � \ � a-sna Arena 3 1 10'.260' Hunt C—,.. aii Turnout':. Grass Turnout De:k EE mom. u Lunging area es:'ooms so* A-4 00'. 225 G.nd P- 2 JuZ Course Jj Utility Area Adopt rules and regulations for the Equestrian Center as proposed except for: 2. Dogs allowed in the Equestrian Center on leash only. 6. Arenas 2 and 3 for English trainers and customers only. No lunging or turnout. Open to boarders when not in use by trainers. Arenas 1, 4 and 5 for boarders. Riding only, no lunging or turnouts. 7. Arenas A, B and C are for riding, lunging or turn outs. Riders have priority. Lesson arena (not identified - but arena between B and C, to be open to boarders when lessons are not in progress.) Fifteen minute turnout limit. Turnouts D, E and F for lunging, turnouts or riding. All of these arenas are open to boarders. 9. Jumping allowed provided riders wear hardhats and an adult "spotter" is present. 18. Public is allowed access during open hours. 25. A key to the front gate will be provided to each boarder who requests one. 26. Boarders' Grievance Procedure: Who comprises this committee? What is the length of term? Who is named as the General Manager? When does this committee meet? Boarding -fees be reduced by $25/mo. immediately. $150/mo. paddocks (including shavings) and $200/mo. for barn stalls *All city ordinances and municipal codes to be enforced. The City Attorney's Office is currPnt--1y nrosecut-inq the Cnnrac-'innaira in regards to permits not taken out, etc. *Waiting List to be maintained by the city. The Ccnmunity Services Department is still NOT controlling this waiting list_ *Financial Records (Profit & Loss Statements) were to have been turned in this past August. Books still have not been turned in. The Ad Hoc Committee agreed in August to wait on reduction of board payments pending profit & loss statement results. The Concessionaire has refused to comply - WHY? REDUCE BOARD PANS TO: $150/mo. paddocks (includes shavings) $200/mo. barn stalls These figures are consistent with your own staff survey of stables in Orange County, the Concerned Boarders Survey and the Ad Hoc Committees tours/survey. In addition, the lease agreement states that fees SHALL BE APPROVED BY COUNCIL IN ADVANCE. The boarding fee increases have never hceen ar= mvecl _ Also, the lease agreement states: The Council may revoke any approved fees when it APPEARS fees are above market price. *INSURANCE policies were to be st ed for what activities are covered. *Concessionaire was told -to submit site plan and stop all construction, etc. until current buildings were brought to code and applied for and received permits. During that time a Grand Prix Course and Hunt Course, Polo Arena, wash racks and additional temporary paddocks were built. Why is the Concession allowed to continue? We ask that the City Attorney exercise the DEFAULT Clause immediately! .. .. .:C.' - - .. .. � ., i !:. - +yam' ,• � T 't- i" L` - S•- = - .:i LEASE (General, Short Form) 1. PARTIES: This Lease is made and entered into this FTF11I of November by and between motional 'Prnuestrian Centers Tnr— (hereinafter referred to as ''Landlord") and Rick & Julie O'Connor — "Bi tG K Pi eves" (hereinafter referred to as ''Tenant"). 2. PREMISES: Landlord hereby leases to Tenant and,Tenant hereby leases from Landlord, on the terms and conditions hereinafter set forth, that certain real property and the building and other improvements located thereon situated in the City of Huntington Beach Orange California County of State of commonly known as 18381 Goldenwest St. Huntin oni_Beach, Calif. 92648 (here insert address) . and described as 12 x 24 retail store space located in harn four (here insert legal description) (said real property is hereinafter called the "Premises'') TERM: The term of this Lease shall be for a pe-ri a of six mont-hG with an opt -inn t-o renew every six months fir, at period of three years. commencing on January 1, 1990 and ending on January 1, 1993 4. RENT: Tenant shall pay to Landlord as rent for the Premises, the sum of $200.00 01190-06190, $300.00 07190 - ? ($ n ) dollars per month, in advance on the � Y of each month during the term hereof. Rent shall be payable without notice or demand and without any deduction, off -set, or abatementro ful money of the United States to the Landlord at the address stated herein for notices or to such other persons or such other places as the Landlord may designate to Tenant in writing. to 5. USE: Tenant shall use the Premises for Retail store — nuestrian related products and for no other purpose without the Landlord's prior written consent. 6. TAXES: (a) Real Property Taxes. Landlord shall pay all real property taxes and general assessments levied and assessed against the Premises during the term of this Lease. (b) Personal Property Taxes. Tenant shall pay prior to the delinquency all taxes assessed against and levied upon the trade fixtures, furnishings, equipment and other personal property of Tenant contained in the Premises. 7. UTILITIES: N.E.C., Inc. shall make all arrangements and pay for all water, gas, heat, light, power, and other utility services supplied to the Premises together with any taxes thereon and for all connection charges. Tenant shall pay for all telephone charges. If Tenant shall be responsible for the payment of utility charges hereunder, if any such services are not separately metered to Tenant, the Tenant shall pay a reasonable proportion, to be determined by Landlord, of all charges jointly metered with other premises. B. ALTERATIONS AND ADDITIONS: Tenant shall not, without the Landlord's prior written consent, make any alterations, improvements or additions in or about the Premises. 9. HOLD HARMLESS: Tenant shall indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the Premises or from the conduct of its business or from any activity, work, or things which may be permitted or suffered by Tenant in or about the Premises including all damages, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising therefrom. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property or injury to person in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against Landlord. 10. ASSIGNMENT AND SUBLETTING: Tenant shall not voluntarily or by operation of law assign, transfer, sublet, mortgage, or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises without Landlord's prior written consent which consent shall not be unreasonably withheld. 11. DEFAULT: It is agreed between the parties hereto that if any rent shall be due hereunder and unpaid, or if a receiver be apointed to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in the Lease, or if Tenant shall make a general assignment or -II ,.. 1.� f; or Dn.. I.... nin„ �..♦ if T..ii�rit :f 4i u arrinyru eni fuf iit l UIICiIt of rc liiur3, ur it l i:ii i � Oi' w ni uNw, I of nli ail Jliun rGnc al.) �i G;i :i �j u ., breach any other covenant or provision of the Lease, then the Landlord, after giving the proper notice required by law, may re-enter the Premises and remove any property and any and all persons therefrom in the manner allowed by law. The Landlord may, at his option, either maintain this Lease in full force and effect and recover the rent and other charges as they become due or, in the alternative, terminate this Lease.•In addition, the Landlord may recover all rentals and any other damages and pursue any other rights and remedies which the Landlord may have against the Tenant by reason of such default as provided by law. 12. SURRENDER: On the last day of the term of this Lease, Tenant shall surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear and damage by fire and the elements excepted. WOLCOTTS FORM 980--SIORL I f ASE (Of NFRAL. SIIORI FORM) Ihis standard form covers most usual problems in the field indicated. Before you slgli, read it, till in all blanks. Rev. 9-84 U 1984 WOLCOTT S, INC and make changes proper to your transaction. Consult a lawyer if you doubt the loim`s fitness for your purpose. (price class 3) ' P ,. 13. HOLDING OVER: If Tenant, with the Landlord's consent, remains in possession of the Premises after expiration or termination of the term of this Lease, such possession by Tenant shall be deemed to be a tenancy from month -to -month at a rental in the amount of the last monthly rental plus all other charges payable hereunder, and upon the provisions of this Lease applicable to such a month -to -month tenancy. 14. BINDING ON SUCCESSORS AND ASSIGNS: Each provision of this Lease performable by Tenant shall be deemed both a covenant and a condition. The terms, conditions and covenants of this Lease shall be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns. 15. NOTICES: Whenever under this Lease a provision is made for any demand, notice or declaration of any kind, it shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed at the addresses as set forth below: TO LANDLORD AT: 18381 Goldenwest St Huntington Beach, Calif. 92648 TO TENANT AT: 18381 Goldenwest St. Huntington Beach, Calif. 92648 Such notice shall be deemed to be received within forty-eight (48) hours from the time of mailing, if mailed as provided for in this paragraph. 16. WAIVERS: No waiver by Landlord of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Tenant of the same or any other provisions. 17.. TIME: Time is of the essence of this Lease. 18 INSURANCE: — Provide National Equestrian Centers, Inc and the C-i ty of u„nting_tnn Beach t,iith an insurance binder noting the following conditions• 1 One million dollar ($1,000,000 00) liability coverage 2. The City of Huntington Beach as the named insured 3. Policy shall contain a cancellation clause reading in substance as the following approved notice: "It is agreed that this policy shall not be cancelled nor the amounts of coverage provided herein reduced until thirty (30) days after the CITY's City Attorney shall have received written notice of such cancellation or reduction, as evidenced by return receipt of registered mail." 19. Exhibit "A" is incorporated into this sub -lease agreement. APPROVED AS TO FORM:I GAIL HUTTON, City Attorney' By:, Deputy City Attorney The parties hereto have executed this Lease on the date first above written., DJ?Ad�q* Eque �ianCenters, Inc. Ric ulie 'Co its & Pieces" By: By: By: By: ��1��1— EXHIBIT "A" Bits & Pieces Nov. 21, 1989 Huntington Central Park Equestrian Center 18381 Goldenwest Huntington Beach, California Dear Ms. Harris: In reference to our proposal to rent space from you and the City of Huntington Beach, I have read the portion of your lease that pertains to subletting to concessionaires. I understand the portion of that lease that applies to us to be as follows: Business Records: 1. We shall maintain an accounting system that is separate from all other accounting systems that we use, both in personal and other business financial affairs. 2. We will maintain accounting records that include: Profit & Loss General Ledgers Journals including any supporting documents State & Federal income tax returns Any other accounting records required by the City 3. Our system will correctly reflect all gross receipts and disbursements and will be subject to audit and inspection. All daily receipts and disbursements will be maintained and identified for accounting audit and inspection by Federal, State, City, and Equestrian Center. Our system includes numbered receipts and a computerized accounting system. 4. We will supply an audited Balance Sheet and Profit and Loss within 60 days of the close of our fiscal year, which is December 31 of each year. The Profit and Loss will indicate compensation to officers. Deparlrnent Rules: 1. We shall, at all tunes, abide by all rules and regulations adopted by the City and will cooperate fully with city employees in the performance of their duties. Term: 1. The terms of your lease that applies to Bits & Reces states that 2% of the Gross Receipts from Retail Sales will be paid to the City of Huntington Beach. 2. Monthly rental shall be due and payable by the fifteenth day of each month for the operations for the preceding month. Page 1 of 2 f � r Exhib; 'A" page 2 3. We understand Gross Receipts to be defined as the total amount of the sales price of all sales, or the total amount charged or received for the performance of any service. a. Gross Receipts does not include cash discounts allowed on sales nor the amount of any sales tax required by law. b. In the event of items taken in trade, Gross Receipts means the full price of the merchandise sold, less the fair market trade-in, less sales tax. When the trade-in is sold, Gross Receipts means the actual sales price. c. Gross Receipts do not include sales where the mark-up is less than 2% of the cost to Bias & Pieces , or at "wholesale". The only items to be sold at wholesale, at this time, will be to the owners of Bits & Pieces and the owners of the Huntington Central Park Equestrian Center. We understand that any further sales at wholesale must first be approved by the City of Huntington Beach, if it is not to be included as Gross Receipts. Liability: 1. We will hold the City harmless and 'indemnify the City from any and all claims, demands,actions, and costs in connection with our business that may arise out of the concession granted. 2. We will put on file, with the city, 2 copies of our public liability and property damage insurance as soon as our lease is approved. We will also name the city as additional insured, in the following amount $1,000,000 combined single limits bodily injury, property damage, and products liability. This policy will meet ail requirements required by the City and will be approved by the City. I look forward to our future business together. If there are any further questions,do not hesitate to call on me. Sincerely, Richard D. O'Connor 10199 Falcon Ave. Fountain Valley, California 91708 Page 2 of 2 AYYEUVrill AJ 7'U rUtm VlTL' HUTTON fC 4TTORM ❑ Aetna INSURANCE COMPANY ❑ Aetna FIRE UNDERWRITERS INSURANCE COMPANY " O BANKERS STANDARD INSURANCE COMPANY 8 Rey L"�� t�Orne� ® INSURANCE COMPANY OF NORTH AMERICA DECLARA IYS O PACIFIC EMP►_OYERS INSURANCE COMPANY Insurance is provided by the stock company designated by and hereinafter called the Company. POLICY NO. FEZ DI 61 76 74 6 POLICY PERIOD P196VY. SUKCHARGE OF $185. FROM 11/15/88 TO 11/15/89 .Y The premium for your policy payable at inception is $18 , 685. 0 Annual Premium ❑ Quarterly Premium ❑ Semi -Annual Premium ❑ Monthly Premium RENEWALOF FEZ D1 61 71 67 0 YOUR NAME (NAMED INSURED) HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER The balance of the Prem. is payable in_ payments of $ MAILING ADDRESS (NO., STREET, CITY, STATE, ZIP) 18381 GOLDENWEST BLVD., HUNTINGTON BEACH, CA 92648 NAMED INSURED IS: ❑ INDIVIDUAL O PARTNERSHIP 0 TENANT $7 CORPORATION ❑ OWNER OCCUPANT O ABSENTEE OWNER THE INSURED LOCATIONS ARE DESCRIBED BELOW AND IN THE SUPPLEMENTAL PAGES: LOCATION NO. ACRES SECTION TOWNSHIP OR RANGE ROAD NAME MILES NSEW AS PER FZ-5M96 CIVIL DISTRICT FROM TOWN OF COUNTY STATE Coverages: Insurance applies only to those coverages for which a limit of insurance is shown below. The following limits of insurance are the total amounts of, insurance for all locations. COVERAGE LIMIT OF DEDUCTIBLE INSURANCE AMOUNT A. MAIN DWELLING $ $ B. UNSCHEDULED HOUSEHOLD PERSONAL PROPERTY $ $ C. LOSS OF USE $ NO DEDUCTIBLE APPLIES SECTION D. FARM BUILDINGS, FARM STRUCTURES, $ 797,000. $ 500. 1 ADDITIONAL DWELLINGS &CONTENTS PROPERTY E. SCHEDULED -FARM PERSONAL PROPERTY $ 51,000. $ 500. UNSCHEDULED FARM PERSONAL PROPERTY $ $ F. FARM EXTRA EXPENSE $ NO DEDUCTIBLE APPLIES G. FARMERS COMPREHENSIVE $ EACH OCCURRENCE PERSONAL LIABILITY H. MEDICAL PAYMENTS TO OTHERS $ EACH PERSON SECTION $ t EACH ACCIDENT I. DAMAGE TO PROPERTY OF OTHERS $ EACH OCCURRENCE II LIABILITY J. PERSONAL INJURY LIABILITY $ EACH OCCURRENCE COMPREHENSIVE GENERAL LIABILITY $ EACH OCCURRENCE ❑ OWNERS, LANDLORDS. TENANTS $ EACH OCCURRENCE SECTION AS PROVIDED IN THE BUSINESS AUTO POLICY ATTACHED TO THIS POLICY. III NOTE: NONE OF THE TERMS, CONDITIONS, DECLARATIONS, FORMS OR AUTOMOBILE ENDORSEMENTS FORMING A PART OF THE COMBINE APPLY TO SECTION III - AUTOMOBILE. FORMS AND ENDORSEMENTS ATTACHED AT INCEPTION:FZ-7M18, FZ-5M93, FZ-5r196, FZ-5M94, FZ-5r195, FZ- M00, NAMEAND ADDRESS OF ❑ MORTGA EE ❑LOSS PAYEE AS PER FORM ATTACHED DATE OF ISSUE: COUNTER N 12/05/88 5GI/ORANGE,te/et MM FZ-5M93 Ptd.in U.S.A. 6/83 AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA RENEWAL OF POLICY CCC010.u55 11222 QUAIL ROOST DRIVE. MIAMI, FLORIDA 33I57 RENEWAL DECLARATION * * * EFFECTIVE 11/15/88 NOON STANDARD TIME AT INSUREDS ADDRESS NAMED BELOW PO C '`.NUMBER ; ::-.:..;:TYPE.:::; AGENCY P CCCO102476 11 15 88 1 11 15 89 J,LIVESTOCK CARE, CUSTODY, CONTROL 1 3284001 YOU.: AS:'NAMED INSURED:: AND:'. ADDRESS.<,::.:::::;; :>. `:;;'; ;.:. > AGENT:::: HUNTINGTON CENTRAL PARK EQUINE INS./PHD EQUESTRIAN CENTER 18381 GOLDENWEST STREET P.O. BOX 3205 HUNTINGTON BEACH, CA 926-4.81 GARDEN GROVE, CA. 92642 LIMITS OF LIABILITY PREMIUM 5,060.00 25,000 DOLLARS MAXIMUM LIMIT -PER HORSE. 250,000 DOLLARS MAXIMUM LIMIT PER OCCURENCE,. REGARDLESS OF NUMBER OF ANIMALS INVOLVED. 250,000 DOLLARS MAXIMUM AGGREGATE LIMIT OF OUR LIABILITY DURING .POLICY PERIOD, REGARDLESS OF NUMBER OF LOSSES.AND/OR OCCURRENCES. -- POLICY ADDITIONAL INSUREDS: CITY OF HUNTINGTON BEACH ATTN: MAX BOWMAN 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 FORMS AND ENDORSEMENTS: AB8942PM 07/84*. IIPPRONTFD AS Tn PORM.,, :cI.TI: n TOI: , pcputy city w-c-tcr V MINIMUM PREMIUM PER POLICY TOTAL PREMIUM 350.00 // 5,060.00 COUNTERSIGNED: ?o ISN AT �P(pa, l��OJC� (�� BY AUTHORIZED =GENT -CENT COPY 'r CITY OF HUHTING79��.A-r'- INTER-DEPARTMENT COM10JAM a,N City Attorney onnie Brockway, Deputy City Clerk Subject National Equestrian Centers Date March 14, 1987 Would you please advise as to the accuracy of the attached insurance certificates as nowhere is "National Equestrian Centers, Inc." stated on the certificates - only "Better Built Enterprises" or "Huntington Central Park Equestrian." As the agreement !1st page attached sets forth National Equestrian Centers as the assignee from Better Built Enterprises, we would appreciate an opinion as to whether the current certificates are accurate. If not, would you request National Equestrian Centers to provide new certificates. s CITY OF HUNTINGTON BEACH 2000 MAIN STREET April 22, 1987 Mr. Richard Dale P. 0. Box 3352 Huntington Beach, Dear Mr. Dale: COMMUNITY SERVICES DEPARTMENT Melvin M. Bowman, Director (714) 536-5486 CA 92605 CALIFORNIA 92648 Re: Your April 11, 1987 letter to Mayor Jack Kelly Thank you for your recent letter. As Director of the Community Services Department, one of my responsibilities is to administer and monitor the operation of Huntington Central Park Equestrian Center. Beginning last December and continuing through the early part of this month, we have had several concerned boarders register complaints similar to your own. The City Council, through the City Administrator, established.a task force made up of repre- sentatives from this department, Administrative Services, Public Works, Development Services and the City Attorney's Office. The task force was asked to do an operational and financial audit of the HCP Equestrian Center. After task force input and several meetings with the management of the center and a committee of concerned boarders, each item of concern was addressed and final disposition obtained. A copy of the task force report is attached for your information. It is self-explanatory and will certainly give you an insight into what has been done on a.staff level to mitigate the boarders' concerns. If you have any other concerns or wish to discuss the staff report with me, please feel free to contact me directly. Sincerely, MELVIN M. Director Community BOWMAN Services MMB:cs cc: Mayor and City Council Charles W. Thompson, City Administrator Erclostirc CITY OF HUNTINGTON BEACH White City Attorney REQUEST FOR LEGAL SERVICES canary City Clerk Pink City Administrator Goldenrod Departmental HUNTINGTON BEACH Date Request Made By Department Feb. 4, 1987 1 Max Bowman :1Community Services INSTRUCTIONS: File request in the City Attorney's Office as soon as possible. Print or type facts necessary for City Attorney. Out- line briefly reasons for the request. Attach all information and exhibits pertinent to the subject. Type of Legal Service Requested: [ l Ordinance [ ] Insurance [ l Other [ ] Resolution [ ] Bonds [XIC Contract/Agreement [ I Opinion All exhibits must be attached, or this request will be returned to you. [ ] Exhibits Attached EQUESTRIAN CENTER TASK FORCE In conjunction with the task force set up at the direction of City Council to audit the financial and operational aspects of the HCP Equestrian Center leased by National Equestrian Centers, Inc., please give an interpretation of the paragraphs marked CA, i.e., City Attorney. We would like to have this by February 20, 1987. If for Council Action, If not for Council action, desired completion date Signature: Agenda deadline Council meeting PIO 1209 LAO `Q9 HUNTINGTON BEACH `. CITY OF HUNTINGTON BEACH REQUEST FOR LEGAL SERVICES r 'Whife City Attorney Canary City Clerk s Pink , City Administrator Goldenrod Departmental Date Request Made By Department x Feb. 3, 1987 Max Bowman Dommunity Services INSTRUCTIONS: File request in the City Attorney's Office as soon as possible. Print or type facts necessary=•for City Attorney. Out- line briefly reasons for the request. Attach all information and exhibits pertinent to the subject. l Type of Legal Service Requested: [) Ordinance [ ] Insurance [) Other [ ] Resolution [ ] Bonds [ ] Contract/Agreement [ XI Opinion All exhibits must be attached, or this request will be returned to you. [ ] Exhibits Attached The city's agreement with National Equestrian Centers, Inc. (formerly Better Built Enterprises) requites the lessee to submit a list of fees and charges for the equestrian center to the city every` January. The , lease was executed on§inally in 1982. The boarders at the center are' aware that the lessee never received city approval to increase fees, which he has apparently done steadily since 1982. Please provide an opinion on whether the boarders may seek a refund of the amount of the increase of fees over the original 1982 fees. Please call me if you have any questions. The City Council asked for this opinion at last night's Council meeting and want a response by February 17. If for Council Action, If not for Council action, desired completion date Signature: Agenda deadline Council meeting 2/17/87 P10 12/79 60D•.�S REQUES FOR CITY COUNCE NCTION January 8, 1990 Date Submitted to: HONORABLE MAYOR AND CITY COUNCIL CITY COUNC= AYlgp ED BY Submitted by: PAUL E. COOK, CITY ADMINISTR.ATORN E' 19 ?f Prepared by: ROBER.T J. FRANZ, DEPUTY CITY ADMINISTRA / CLE x ' Sub -Lease of Portion Equestrian Center Central Par Subject: W. of Goldenwest and N. of Ellis Avenue Consistent with Council Policy? [T Yes [ j New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: National Equestrian Centers, Inc., operators of the City's Central Park Equestrian Facility, wishes to sub -lease a 12' x 24' space for a retail tack store located in barn number four, to be known as "Bits and Pieces". RECOMMENDATION: Approve the proposed sub -lease between National Equestrian Centers, Inc. and Rick and Julie O'Connor, dba "Bits and Piecd1for an equestrian related products retail store. ANALYSIS: The City approved an assignment of concession agreement between assignor, Better Built Enterprises, Inc. and assignee, National Equestrian Centers, Inc., dated October 9, 1986. National Equestrian Centers, Inc. now wishes to sub -lease a 12' x 24' space for a tack shop. The term of the lease would be a period of six (6) months, with an option to renew every six (6) months for a period of three (3) years. Lease commencing on January 1, 1990 and ending January 1, 1993. First six (6) months rents of $200.00 per month and second six (6) months at $300.00 per month. Proper insurance requirements will be complied with by sub -lessee, together with other City rules and regulations. Two percent (2 %) of gross receipts from "Bits and Pieces" will go to the City. FUNDING SOURCE: None ALTERNATE ACTION: Do not allow lessee to sub -lease this area. ATTACHMENT: Sub ,Lease agreement. P10 4/84 8'3 % eo h4 i„ „* o .$ e a 04010*c. i -o pp--/-) -82 City of Huntington Beaen P. O. BOX 190 • 2000 MAIN STREET • CALIFORNIA 92648 July 24, 1987 CHARLES W. THOMPSON City Administrator RE: Assignment of Concession Agreement: Huntington Beach Equestrian Center Dear Mr'. Thompson: The Equestrian Center Ad Hoc Committee has met and conferred relative to the above and finds and recommends as follows: MAYOR Jack Kelly MAYOR PRO TEMPORE John Erskine COUNCILMEMBERS Wes Bannister Ruth Finley Peter Green Tom Mays Grace Winchell The above agreement was executed on October 25, 1982. The 5th year thereof concludes on October 25, 1987. Section IV, of page 12, provides for renegotiation "at the conclusion of the fifth year." The same section requires the city, at such time, to "perform a detailed analysis of the... financial status of the concession." In that connection, Section XII of page 26 requires the concessionaire to "transmit a Profit and Loss Statement and a Balance Sheet for the concession operations... prepared by a company... acceptable to the Director (of Community Services)"..:at the close of each fiscal year of the agreement. Since a detailed financial analysis is required in order to intelligently renegotiate, based upon "changing economic conditions," (see page 12 next to last paragraph attached)_ we believe it is necessary to secure all such financial statements by the end of August. This will allow for renegotiations during September and October. RECOMMENDATION: That the City Council direct that the City Administrator secure and assemble all of the financial statements and reports required by the agreement and prepare a detailed financial status of the concession not later than August 31, 1987. I Assignment of Concession Agreement:-HB Equestrian Center July 24, 1987 Page (2) Accordingly, kindly arrange to place this matter on the Agenda for discussion at the August 3, 1987 City Council meeting. Very truly yours, Grace Winchell Councilmember and Chairperson of the Huntington Central Park Equestrian Center AD HOC Committee i CONCESSIONAIRE_ shall transmit with his rental payment a Monthly Gross - Receipts and Rent Report for the month for which rent is submitted. The Director shall provide a form for this purpose, and the completed form shall Include a statement of the Gross Receipts by source of sales, and such other information as the Director may properly require. The rental payment shall be addressed to: City of Huntington Beach Director of Administrative Services 2000 Main Street Huntington Beach, California 92648 In the event CONCESSIONAIRE_ fails to submit his rental payment by the date it is due, an additional payment of ten percent (10%) of the amount due will be charged for each month, or fraction thereof, that the payment is due. As provided hereinbelow, CONCESSIONAIRE may sell merchandise at wholesale, and such sales need not be included in gross receipts upon which the, monthly rental is calculated. The term "at wholesale" shall mean that the mark-up on such merchandise is not more than two percent (2%) over its cost to CONCESSIONAIRE. All merchandise sold for more than two percent (2%) over CONCESSIONAIRE's cost thereof shall be subject to the established rental percentage paid by CONCESSIONAIRE to CITY on retail sales. All merchandise shall be accounted for in accordance with the procedures utilized in reporting regular gross receipts. Before selling any merchandise at wholesale, CONCESSIONAIRE shall obtain the written approval thereof of the Director or his designated representative. Such approval, if any, shall specify the brand name of the merchandise to be offered at wholesale and the length of such sales period. Only the merchandise approved by the Director may be sold at wholesale. At the conclusion of the fifth year and every five years thereafter of this Agreement, CITY will perform a detailed analysis of the performance and i financial status of the concession. If it appears at that time thot any of the terms of the Agreement require change due to changing economic conditions, etc., CITY will meet with CONCESSIONAIRE_ to renegotiate rental or other provisions of this Agreement. If both parties agree to amend this Agreement, it shall be in writing and approved by the City Council of CITY. If an impasse occurs regarding any provision relating to rental or the anrnjal guarantee required in this Agreement, then arbitration shall be implemented. CITY and CONCESSIONAIRE shall mutually select the arbitrator. ' In the event CITY and CONCESSIONAIRE cannot agree upon an arbitrator, each shall select on arbitrator who in turn will select a third arbitrator and said third arbitrator . shall,resolve the impasse(s) which shall be subject to acceptance by CITY and CONCESSIONAIRE. CITY and CONCESSIONAIRE -shall equally shore all expenses of arbitration including the arbitrator's fee. C1%o� SUB -LICENSEE - is to be involved in construction of any facility, the equlrements of Section VII (IMPROVEMENTS) of this contract shall be adhered Any request -to sub -license services and facilities other than those listed above will be evaluated by CITY upon Its presentation. GETTER DUILT LNTERPRISES. INC. must remain in control throughout the term of this Agreement unless an assignment or other transfer of majority control (voluntary or involuntary) is approved by CITY's City Council. Xll. BUSINESS RECORDS: CONCESSIONAIRE shall tie required to maintain a method of accounting of all the receipts and disbursements in connection with the subject concession which shall correctly and accurately reflect the gross receipts and disbursements received or made by CONCESSIONAIRE_ from the operation of said concession.. The method of. accounting, Including bank accounts, established for the subject concession shall be separate from the accounting system used for any other business operated by CONCESSIONAIRE or for recording CONCESSIONAIRE'S personal financial affairs. Such method shall Include the keeping of the i following documents: I. Regular books of accounting such as general ledgers. 2. Journals including any supporting and underlying documents such ai vouchers, checks tickets, hank statements, etc. 3. State and Federal income tax returns and sales tax returns and checks and other documents proving payment of sums shown. 4. Cash register tapes (daily tapes may be separated but shall be retained so that day -today sales can be identified). S. Any other accounting records that CITY, in its sole discretion,- deems . necessary for proper reporting of receipts. CONCESSIONAIRE shall obtain and install a cash register(s) on which he shall record all gross sales. The cash register shall be nonresetable and sufficent to supply an accurate. recording of all.soles on tape. The register soles counter shall be visible to the public. CONCESSIONAIRE shall not purchase or install the cash register before obtaining the Director's approval of the specific register to be purchased. 2 S. a> 0` 3� All documents, books and accounting records shall be open for inspection and reinspection at any reasonable time during the term of this Agreement and for a reasonable period, not to exceed one year, thereafter. In addition, CITY may from time to time conduct an audit and reaudit of the books and business conducted by CONCESSIONAIRE and ohserve the operatlon of the business so that accuracy of the above records can be confirmed. If the report of gross sales made by CONCESSIONAIRE to CITY shall be found to be less than the amount of gross sales disclosed . by such avdIt and observation, CONCESSIONAIRE shall pay CITY within 30 days after billing any additional rentals disclosed by such audit. If, discrepancy exceeds two percent and no reasonable explanation is given for iuch discrepancy, CONCESSIONAIRE shall also pay the cost of the audit. - CONCESSIONAIRE shall transmit a Profit and Lnss Statement and a Balance Sheet for the concession operations, prepared in a form and by a company acceptable to the Director within 60 days .of the close of each of CONCESSIONAIRE'S fiscal or calendar years during the term of the Agreement. The Profit and Loss Statement shall set forth an expense account entitled "Compensation to Officers" or an account having some similar title. The amount shown opposite this Item shall include all salaries or other compensation 'for services derived from the concession operations by CONCESSIONAIRE, members of his family, officers of CONCESSIONAIRCs corporation, directors, shareholders, any individuals owning stock indirectly and. other persons employed by CONCESSIONAIRE to manage the operations or supervise CONCESSIONAIRE's employees. , These solaties or other compensation shall not be indicated in any other expense category. All Information obtained in connection with CITY's inspections of records or audits shall be received and maintained In confidence and shall not be disclosed to anyone not directly connected with the official business of CITY. XII1. REGULATIONS, INSPECTION AND DIRECT1VESt A. Department Rules: CONCESSIONAIRE and his employees shall at oil times abide by all rules and regulations heretofore adopted or that may hereafter he adopted by CITY and cooperate fully with CITY employees in the performance of their duties. Park Rangers are specifically designated CiTY agents and are empowered by CITY to conduct inspections of the concession _premises, evaluate CONCESSIONAIRE and inform the Director fully as to CONCESSIONAIRE's conduct of the concession. Other CITY employees may also be so designated. 0 E. ADMINISTRATIVE ITEMS E.-1. RELOCATION OF DISPLACED HORSES Communication from Community Services Director regarding the need to relocate horses from stables off Ellis Avenue between Goldenwest and Edwards Streets and the need to renegotiate the present lease agreement with National Equestrian Centers, In.c. in order to accommodate the displaced horses and to addre§$ several issues of concern. OnO. haVf Car m*R+% 4( Pit ��t t� RA: (a) Authorize the City Administrator o negotiateCo r 7'4"'s amendment to the lease agreemen with National Equestrian Centers, Inc. to accommodate the relocation of horses from stables off Ellis AvenuQ between Goldenwest and Edwards Streets and to rework those portions of the lease agreement of concern in order to best serve the boarders, lessee and citizens of the community. j. Q (b) Appoint an ad hoc committee,4representing staff, lessee, boarders, Council, Community Services Commission or any other group or persons at Council discretion, to act as an advisory body to Council on any and all matters relating to the equestrian operation. .! HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 1t 81 Goldcnwcwt Blvd. Huntington E3cuch, CA 9`2.fr'{ii (714) 84"565 May 21, 1987 City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Attn: Max Bowman Dear Max: After careful consideration, the.Huntington Central Park Equestrian Center is willing to provide the following boarding facilities in return for certain considerations. We will provide boarding facilities as follows: Additional 35 horses in 30 days Additional 65 horses in 60 days A maximum additional 100 horses by January 1, 1988 or as needed. In order to justify this additional capital investment, we need an additional fifteen (15) years added to our concession agreement to properly amortize the cost. Your help in this regard would be appreciated. Sincerely, Mary Harris Huntington Central Park Equestrian Center A00101,10- .- :CERTIFICATE uF. INSURANCE -ISSUE DATE (MM/DD/YY) 3/14/90 PRODUCER RISKMT CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS USAA GENERAL AGENCY, INC. (�C�, THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, ,jlSAA BUILDING EXTEN UNHR THE COVERAGE AFFORDED BY THE POLICIES BELOW { y TAN ANTONIO HAR q' '�, ' COMPANIES AFFORDING COVERAGE 782880000 C COMPANY 90 00DE SUB -CODE LETTER A SAFEGUARD INSURANCE CO COMPANY INSURED KATHLEEN P . PARTRIDGE / LETTER B BITS & PIECES 1 COMPANY LETTER C' 2615B DELAWARE STREET HUNTINGTON BEACH COMPANY CA LETTER 3 2 6 4 8 0 0 0 0 COMPANY E LETTER COVERAGES; THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH 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. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE _TR POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION ALL LIMITS IN THOUSANDS DATE (MM/DD/YY) DATE (MM/DD/YY) A GENERAL LIABILITY DYJM9 5 9 1 8 11 / 15 / 8 9 11 / 15 / 9 O GENERAL AGGREGATE $ l 10 0 0 COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OPS AGGREGATE $ 1,000 - CLAIMS MADE X OCCUR.' PERSONAL & ADVERTISING INJURY $ INCL OWNER'S & CONTRACTOR'S PROT: EACH OCCURRENCE $ 1,000 FIRE DAMAGE (Any one fire) $' 100 MEDICAL EXPENSE (Any one person) $ 2,5 - A AUTOMOBILE LIABILITY DYJM9 5 9 1 8 1 1/ 1 5/ 8 9 11 / 15 / 9 0 COMBINED SINGLE $ ANY AUTO LIMIT INCL ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS (Per person) , HIRED AUTOS BODILY INJURY $ NON -OWNED AUTOS (Per accident) GARAGE LIABILITY EXCESS LIABILITY OTHER THAN UMBRELLA FORM WORKER'S COMPENSATION , ,\ � I.� R_ AND c EMPLOYERS' LIABILITY v I� - ` OTHER DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/RESTRICTIONS/SPECIAL ITEMS USAA#2737868 PROPERTY $ DAMAGE EACH AGGREGATE OCCURRENCE $ S STATUTORY $ �Ck v N,�ty �ytif ati ,• (EACH ACCIDENT) (DISEASE —POLICY LIMIT) (DISEASE —EACH EMPLO) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE THE CITY OF HUNTINGTON BEACH EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL NX)EXIl{blf.ItXXX ATTN; RISK MANAGEMENT MAIL pp30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE 2000 MAIN ST HUNTINGTON BEACH CA 92648 AUTHORIZEMRESE / p ACORD 25-S ORD CORPORATION 1988 . 0 JJLo. LAI CITY OF HUNTINGTON BEACH 2000 MAIN STREET RISK MANAGEMENT DIVISION (714) 536-5990 CALIFORNIA 92648 In order to comply with City Council Resolution No. 6023, you are required to provide this office with a workers' compensation Certificate of Insurance., If you use no employees in the performance of the work for which this permit is issued, then you must sign this form and ret:urn.it at your earliest convenience to the Risk Management office at 2000 Main Street:, Huntington Beach, California 92648. Attn: Julie Fittery. I certify that in the performance of the activity and/or work for which this permit is issued, I shall not employ any person in any manner so as to become subject to the workers' compensation e` 2 laws of California. 1� C APPLICANT'S SIGNATURE: ; DATE: d LOCATION: CQ - (,3- (City icy ich yc�t?. are signing his form) NAME AND ADDRESS OF APPLICANT/INSURED: (please print) 1 (52�7 � /��// , , - ��xj P"'%ONE NUTIBER : `41 a L. 'CITY OF HUNTINGTON BEACH REQUEST FOR LEGAL SERVICES HUNTINGTON BEACH White City Attorney Canary City Clerk Pink' City Administrator Goldenrod Departmental Date Request Made By Department 1-15-87 r Les Evans Public.Works INSTRUCTIONS: File request in the City Attorney's Office as soon as possible. Print or type facts necessary for City Attorney. Out- line briefly reasons for the request. Attach all information and exhibits pertinent to the subject. l Type of Legal Service Requested: [ ] Ordinance [ ] Insurance [ ] Other ACTION [ ] Resolution [ ] Bonds [ ] Contract/Agreement [ I Opinion All exhibits must be attached, or this request will be returned to you. [XI Exhibits Attached Ed Milligan has not made any attempt to.carry out the terms of his agreement (attached). I would like to take his $10,000 cash bond and the $15,000 cash bond from the previous agreement and hire someone to get the work done. Our lake is silting up and raw sewage from the stables is also draining directly into the lake. Bob Sangster handled the preparation of,the agreement and assured me -it was iron clad. What should I do to get started. If for Council Action, Agenda deadline If not for Council action, desired completion date Signature: Council meeting February 1, 1987 PIO 12/79 DATE (MM/DDNY) PRODUCER "--ktHIS CERTIFICATE IS ISSUED AS A MAAER & INFbRMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COPAROON & BLACK INS. SE? .,RCES P.O. Box 90190 COMPANIES AFFORDINQ COVERAGE Pasadena, California 91109-0190 (818) 796-3888 (213) 661-0400 COMPANY .L% LETTER CHI AGO INSUWCE C,jpj.M COMPANY INSURED LETTER HUNTINGI'ON CENTRAL PARK EQUESTRIAN LETTER 18381 GDLDEN WEST COMPANY HUNTINGTON REACH, CA. 92648 LETTER lj COMPANY Y LETTER $y THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI- TIONS OF SUCH POLICIES. "? CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIABILITY LIMITS IN THOUSANDS EACH OCCURRENCE AGGREGATE LTR DATE (MWDD/YY) DATE (MWDDNY) GENERAL LIABILITY BODILY A COMPREHENSIVE FORM 80200151,3 11/15/86 11/15/87 INJURY $ $ PROPERTY PREMISES/OPERATIONS UNDERGROUND - DAMAGE $ $ EXPLOSION & COLLAPSE HAZARD PRODUCTS/COMPLETED OPERATIONS CONTRACTUAL BI & PD BI COMBINED $ 1,000 $ 1, 000 INDEPENDENT CONTRACTORS BROAD FORM PROPERTY DAMAGE PERSONAL INJURY PERSONAL INJURY $ 1, 000 AUTOMOBILE LIABILITY BODILY ANY AUTO INJURY (PER PERSON) $ ALL OWNED AUTOS (PRIV. PASS.) BODILY ALL OWNED AUTOS (OTHER THAN INJURY (PER ACODENT) $ PASS. PRIV.HIRED PROPERTY AUTOS NON -OWNED AUTOS DAMAGE $ GARAGE LIABILITY BI & PO I.. COMBINED $ EXCESS LIABILITY UMBRELLA FORM BI & PD COMBINED $ $ OTHER THAN UMBRELLA FORM STATUTORY WORKERS' COMPENSATION $ (EACH ACCIDENT) AND $ (DISEASE -POLICY LIMIT) EMPLOYERS' LIABILITY $ (DISEASE -EACH EMPLOYEE) OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS EFFECTIVE 2/1/87. MIS CERTIFICATE IS IN LIM OF ADDITIONAL INSURED: cny OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA. 92648 DATED 1/18/87 . SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX- PIRATION DATE THEREOF, THE ISSUING COMPANY %QNXV40XAWX TO MAIL 7 n DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE ATIVE 1 I i I STATE P.O. BOX 807, SAN FRANCISCO, CALIFORNIA 94101 COMPENSATION INSURANCE FU N D CERTIFICATE OF WORKERS' COMPENSATION INSURANCE FEB 05, 1987 POLICY NUMBER: 0364199-87 CERTIFICATE EXPIRES: 01-01 ,88 CITY OF HUNTINGTON BEACH DEPT OF BLDG & SAFETY AB Tp Foy", rney CITY ATTORNEYS OFFICE GALE HUTTON Pp D City A tto 2000 MAIN STG�IL De.)uty city Attorney HUNTINGTON BED ACH, CA 92648 By. L This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except uponAodays' advance written notice to the employer. 30 We will also give you -PUN days' advance notice should this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate of insurance 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. "ENDORSEMENT NO. 0015 ENTITLED ADDITIONAL„INSURED PLOiED tTO PRESIDENT CITY QF H.UNTINGTQN BEACH EFFECTIVE FEB 05 1987 IS AND FORMS A PART OF THIS POLICY." r— EMPLOYER BETTER BUILT ENTERPRISES INC. 345 WALNUT AVE ARCADIA CA 91006 L SCIF 10262 (REV. 10.86) OLD 262A aofcj 0 PRODUCER LONDON*AMERICAN GENERAL AGENCY P.O. BOX 3188 ANAHEIM, CA 92803 INSURED HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 18381 GOLDEN WEST HUNTINGTON BEACH, CA 92648 ` ISSUE DATE (MM/DDNY) 1-29-87 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. I COMPANIES AFFORDING COVERAGE COMPANY LETTER COMPANY LETTER B. COMPANY • LETTER C COMPANY D LETTER, COMPANY E LETTER CHICAGO INSURANCE COMPANY THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI- TIONS OF SUCH POLICIES. 'O TR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIABILITY LIMITS IN THOUSANDS EACH AGGREGATE DATE (MMIDDNY) DATE (MM/DDIYY) OCCURRENCE GENERAL LIABILITY BODILY COMPREHENSIVE FORM INJURY $ $ X PREMISESIOPERATIONS' di ' UNDERGROUND .•» PROPERTY DAMAGE $ $ EXPLOSION & COLLAPSE HAZARD - X PRODUCTSICOMPLETED OPERATIONS _" - = A CONTRACTUAL 80-2001513 11-1546 11-15-A87 131 & Eo $ 500, $ 500, INDEPENDENT CONTRACTORS H _ X BROAD FORM PROPERTY DAMAGE i PERSONAL INJURY'• PERSONAL INJURY g X PRF.MTSF.S MED CAT. $1,000.00/$10, 00.00 AUTOMOBILE LIABILITY. BODILY ANY AUTO Km O $ ALL OWNED AUTOS (PRIV. PASS.) BODILY BOlkLY ALL OWNED AUTOS (OTHER THAN ` PRIV. PASS.,T" (PER $ HIRED AUTOS PROPERTY r :, NON -OWNED AUTOS DAMAGE $ ; GARAGE LIABILITY R_Y, BI & PD COMBINED $ EXCESS LIABILITY UMBRELLA FORM BI & PO COMBINED $ $ OTHER THAN UMBRELLA FORM STATUTORY WORKERS' COMPENSATION $ (EACH ACCIDENT) AND $ (DISEASE -POLICY LIMIT) EMPLOYERS' LIABILITY $ (DISEASE -EACH EMPLOYEE) OTHER A CARE,CUSTODY,CONTROL 80-2001513 11-15-86 11-15-87 $5,000.00/$25,000.00 IESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX- PIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. AUTHORIZ,f,p RE ,PfESEWATIVE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 18381 Golden west Blvd. Huntington Beach, CA 92648 (714) 848.6565 Feb. 3, 1987 City of Huntington Beach 500 Main Huntington Beach, Ca 92648 Attn: Warren Hall - City Treasurer Dear Mr. Hall, Please hold the $10,000- cashiers check No. 1266445 until I deliver our $10,000- performance bond which will subsitute for Mr. Milligans original CD performance bond. Mr. Milligans bond then will replace the check No. 1266445 for the siltation bond required from your city. Thank -you, Mary Harris General Manager HCPEC FIRST STATE BANK OF SOUTHERN CALIFORNIA 11277 So. Atlantic Ave. Lynwood, CA 90262 mg: OF * * City of Huntington BeacA ` F IHST "Zit"!, F "Iu 11111• IIIII�I 1111111 lii I BAPIK�� 1 -'1:It 90-1509\ No- 1266445 1222 __ February 3 _ 19 87 * * * $ 10, 000.00** DOLLARS ES C E C V Authorized Signature e ll' 1 266L,4 511'' 1: 1 2 2 2 150901:00-000 00 1 91" USE BALL POINT PEN ONLY — PRESS FIRMLY, f l CASH BOND RECEIPT • CITY OF HUNTINGTON BEACH is J• P.O. BOX 711 HUNTINGTON BEACH, CALIFORNIA 92648_ r _ (714) 536-5200 CITY TREASURER — WARREN G. HALL ISSUED BY TREASURER'S DEPT. `" _ DATE ~`- RECEIVED FROM ADDRESS S ��c4'z" L'.e4- - i i FOR I i I AMOUNT RECEIVED CASH 0 CHECK FYa %0 j p O O .00 4 fi�5?i?i?f i?iN??'�T»?�±�t�f�-±�SiSifafuS##x�i?xk f?f?Si Y f?7��,±Sx C, L i if?S?fxf?rfS3 ......,... A.B.A. -r RECEIVED BY AL i I I DESCRIPTION PERMIT = AMOUNT CASH BOND — ACCT U-221 BLDG. MODELS BLDG. RELOCATION SUBDIVISION SIGN SWIMMING P�OOQLSS�j�T�� OTHER — _�M"'"`•.1-GC.C�"'' '-�." "' DATE PAID: CHECK NO.: BY: NO. T 608 Rev. 2/84 TOTAL $ '(6; Ooo . C i �� ®�� "JLr �LJlsv °�Lr�J�� ✓ WT /�!� June 12� PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF ENFORMATION ONLY ARID CONFERS r NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOPES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Corroon 8 Black Insurance Services P. 0. Box 90190 C�ONPAMES QFFOOWD� S COVERAGE Pasadena, CA 91109-0190 COMPANY Q LETTER Chicago Insurance Company LETTERNY Q INSURED COMPANY LETTER O sTO F�OR�• rne� National Equestrian Centers, Inc. dba: Huntington Central Park Equestrian Center COMPANY D A4 x TON, ��rney 18381 Golden West LETTER GP IL ty 'kttO Huntington Beach, CA 9264G COMPANY By.. � LETTER 0 THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI- TIONS OF SUCH POLICIES. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MWDD/YY) POLICY EXPIRATION DATE (MWOD/YY) LIABILITY LIMITS IN THOUSANDS EACH OCCURRENCE AGGREGATE A GENERAL X LIABILITY COMPREHENSIVE FORM 80-2001513 11/15/86 11/15/87 BODILY INJURY $ $ PREMISES/OPERATIONS UNDERGROUND EXPLOSION & COLLAPSE HAZARD PROPERTY DAMAGE $ $ PRODUCTS/COMPLETED OPERATIONS CONTRACTUAL BI & PD COMBINED $1 000 ' $1 040 9 , INDEPENDENT CONTRACTORS BROAD FORM PROPERTY DAMAGE PERSONAL INJURY PERSONAL INJURY $ 7 Premises Medical $1,000/$1 ,000 AUTOMOBILE LIABILITY BODILY ANY AUTO INJURY (PER PERSON) $ ALL OWNED AUTOS (PRIV. PASS.) BODILY ALL OWNED AUTOS (OTHER THAN) `PRIV. PASS. INJURY (PER AWDENn $ HIRED AUTOS NON -OWNED AUTOS PROPERTY DAMAGE $ GARAGE LIABILITY BI&PD COMBINED $ EXCESS LIABILITY UMBRELLA FORM BI & PD COMBINED $ $ OTHER THAN UMBRELLA FORM WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY STATUTORY $ (EACH ACCIDENT) $ (DISEASE -POLICY LIMIT) $ (DISEASE -EACH EMPLOYEE) OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS LC•E-Riffil FI:C�'AtTiEVO:LD:ERI ADDITIONAL INSURED: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 CC�A�CELL- �ATiI:QN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EN- PIRATI(N DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 33VV DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY. ITS AGENTS OR REPRESENTATIVES. ATIVE Za ` Cr f 'P CITY OF HUNTINGTOh BEACH ATTN. BRENDA KOURY CORRf"`N & BLACK INSURANCE SERVICES uth Lake Avenue • P.O. Box 90190 Pasadena, California 91109-0190 (818) 796-3888 0 (213) 681-0400 Telex: 9105883784 ANSWERBACK CORBLACK PSD SUBJECT: NATIONAL EQUESTRIAN CENTERS DATE 6/15/87 PLEASE ACCEPT THE ATTATCHED CERT. THE CO WILL NOT -ALLOW THE DELETION OF THE DISCLAIMER CLAUSE, BUT YOU ARE ADDED AS ADDITIONAL INSURED WHICH MEANS YOU GET THE SAME NOTICE THAT THE INSURED DOES. MUA 34=0 MOULTON PLEASE REPLY BELOW ❑ NO REPLY NECESSARY ❑ DATE TO REPLY: SNAP OUT CARBON COPY. RETURN TO SENDER. RETAIN ORIGINAL. C&B FORM 19 (REV 1/84) REQUEO FOR CITY COUNAkCTION y Submitted to: Submitted by: Prepared by: Date June 5, 1987 The Honorable Mayor and City Council 11_*1 Charles W. Thompson, City Administrator Lip, Melvin M. Bowman, Director, Community Services Subject: RELOCATION OF DISPLACED HORSES 1; - Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a need to relocate horses being removed from stables off Ellis Avenue between Golden West and Edwards Streets. Also, there is a need to renegotiate the present lease agreement with National Equestrian Centers, Inc. in order to accommodate the displaced horses and to address several issues which surfaced through the concerned boarders, equestrian center management and staff's report of April 8, 1987. RECOMMENDATION Authorize the City Administrator to negotiate an amendment to the lease agree- ment with National Equestrian Centers, Inc. to accommodate the relocation of horses from stables off Ellis Avenue between Golden West and Edwards Streets and to rework those portions of the lease agreement of concern in order to best serve the boarders, lessee and citizens of the community. In addition, appoint an ad hoc committee, representing staff, lessee, boarders, Council, Community Services Commission or any other group or persons at Council dis- cretion, to act as an advisory body to Council on any and all matters relating to the equestrian operation. ANALYSIS At its April 6, 1987, meeting, Council asked the Community Services Commission to consider use of the Marion property as a temporary or permanent equestrian center. The commission, at its May 13, 1987, meeting, approved the following motions: RECOMMENDED COUNCIL DIRECT STAFF TO WORK WITH THE HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER OPERATORS TO INCREASE THE NUMBER OF HORSES STABLED ON THE EXISTING EQUESTRIAN CENTER WITHOUT EXPANDING THE SITE FROM ITS CURRENT 25 ACRES. RECOMMENDED COUNCIL GIVE THE 61 LOCAL HORSE OWNERS PRIORITY OVER THE EQUESTRIAN CENTER'S EXISTING WAITING LIST. Staff contacted the present equestrian center lessee to explain that there were approximately 135 horses needed relocation from stables off Ellis Avenue between Golden West and Edwards Streets due to development of that area. Staff asked if lessee would be willing to stable these displaced horses if the owners so PIO 4/84 • 6 REQUEST FOR CITY COUNCIL ACTION SUBJECT: RELOCATION OF DISPLACED HORSES June 5, 1987 Page Two desired. The lessee advised that there is presently a waiting list of 63 persons wanting a stall within the existing facility. Lessee would be willing to add 35 stalls within 30 days and an additional 65 stalls in 60 days, for a total of 100 stalls. By January 1, 1988, lessee advised he could add another 100 stalls, for a total of 200 stalls which would accommodate not only the 135 displaced horses, but also the 63 horses on the waiting list. The attached letter from the lessee requests an additional 15 years on the term of the present agreement with the city to compensate for the additional 200 stalls with no increase in acreage. The offer to accommodate the displaced horses is with the understanding that the 63 horses on the waiting list will be bumped until January, 1988. The issue of relocating other stable operations to the Marion property has been raised. The City Attorney's Office has provided a legal opinion that no other stables can be operated within Huntington Central Park due to the exclusivity clause in the National Equestrian Centers, Inc. lease. City Council purchased the Marion property with the intent that it be part of HCP. Therefore, no out- side equestrian operation can be relocated to that property. FUNDING SOURCE None. ALTERNATIVE ACTIONS 1. Look for alternative relocation sites for the displaced horses. 2. Negotiate with National Equestrian Centers, Inc. to mitigate the concerns of boarders. ATTACHMENT Letter from Huntington Central Park Equestrian Center MMB:cs 1416 7ZI 60 -A, 1, by "w GOOD EVENING COUNCIL MEMBERS. MY NAME IS MARY YELOVICH, I AM A RESIDENT OF HUNTINGTON BEACH AND I BOARD MY HORSE AT THE EQUESTRIAN CENTER. Y SPEAKING FOR THE TAX -PAYING, CONCERNED BOARDERS OF HUNTINGTON BEACH, WE WILL ADDRESS THE INCONSISTENCIES IN THE TWO ORGANIZATIONAL AUDITS - THE PRELIMINARY AUDIT AND THE FINAL AUDIT. THE CONCERNED BOARDERS REQUEST CITY COUNCIL TO HAVE THE AUDIT REDONE BY AN IMPARTIAL, OUTSIDE FIRM. WE FIND THE AUDIT UNACCEPTABLE AND VOID DUE TO NUMEROUS DISCREPANCIES. I WOULD LIKE TO BRIEFLY OUTLINE SOME OF THE DISCREPANCIES OF THIS AUDIT. ON PAGE 1, NUMBER 1: THIS CONCERNS UNAUTHORIZED RENT INCREASES. IRREGARDLESS OF THE FACT THAT WE HAVE BEEN PAYING THE RENT WITHOUT COMPLAINING TO THE CITY UNTIL DECEMBER OF 1986, WHY SHOULD WE BE PENALIZED BECAUSE THE CITY AND CONCESSIONAIRE DID NOT ABIDE BY THE SIGNED LEASE AGREEMENT? AS TO THE CHARGE THAT BOARDERS DID NOT COMPLAIN TO THE CITY DURING THE INCREASES, WE COMPLAINED TO MANAGEMENT OF THE EQUESTRIAN CENTER, ESPECIALLY WHEN WE DID NOT RECEIVE 30-DAYS NOTICE, HOWEVER, THE STAFF IS CORRECT THAT WE DID NOT COMPLAIN DIRECTLY TO THE CITY. THIS WAS BECAUSE WE WERE NOT AWARE AND WERE NEVER TOLD THAT THE CENTER IS A CITY -LEASED CONCESSION! PAGE 1, NUMBER 3: IN REGARDS TO IMPROVEMENT OF ARENAS, CONCESSIONAIRE STATES THAT THIS HAS BEEN DONE. STAFF GIVES THEM UNTIL JULY 1, 1987. THE ARENAS ARE BEING COVERED WITH SHAVINGS AND MANURE WHICH PRESENTS A HEALTH HAZARD. IF STAFF HAD TALKED TO MANAGEMENT AS NOTED IN THE RESPONSE, AND MANAGEMENT HAD STATED THAT IMPROVEMENT OF THE ARENAS WERE DONE, WHY IS STAFF GIVING THEM UNTIL JULY 1, 1987? WHY WAS THE BOARDERS RESPONSE WAS LEFT OFF? PAGE 2, NUMBER 4: IN THE SIGNED LEASE AGREEMENT IT STATES THAT SHAVINGS SHALL BE PROVIDED TO PADDOCKS AND BOX STALLS. TO DATE, NO SHAVINGS HAVE BEEN PROVIDED TO THE PADDOCKS BY CONCESSIONAIRE. WHY? STAFF HAS TOLD US REPEATEDLY THAT THIS WILL BE ENFORCED. STAFF EVEN REQUESTED A LEGAL OPINION ON THIS AS EARLY AS JANUARY 26, AND LEGAL OPINION WAS THAT CONCESSIONAIRE MUST PROVIDE SHAVINGS. PAGE 2, NUMBERS 6,7 AND 8: BOARDERS RESPONSES HAVE BEEN LEFT OFF. WHY? WE COMMENTED ON THESE ITEMS. PAGE 3, NUMBER 11: CONCERNING HAZARDOUS CONDITIONS, SPECIFICALLY THE PLASTIC DRAINS. CONCESSIONAIRE HAS REPEATEDLY STATED THAT THEY HAVE BEEN REPLACED WITH METAL. THIS HAS BEEN STATED DURING THEIR DECEMBER 10 MEETING WITH MR. BOWMAN, THE JANUARY 27 MEETING WITH CITY STAFF, THE PRELIMINARY ORGANIZATIONAL AUDIT IN MARCH AND AGAIN IN THE FINAL ORGANIZATIONAL AUDIT IN APRIL. CONCERNED BOARDERS HAD TO POINT OUT TO STAFF MANY TIMES THAT THIS HAD NOT BEEN DONE. STAFF AGAIN REQUESTED THAT CONCESSIONAIRE COMPLY AND REPLACE THESE DRAINS BY,APRIL 10. THESE DRAINS HAVE NOT YET BEEN REPLACED. STAFF CONTINUES TO IGNORE OR EXCUSE CONCESSIONAIRE'S BREACHES OF AGREEMENT. HOW LONG WILL THIS CONTINUE? PAGE 6, CONCERNING MANURE. STAFF AND MANAGEMENT STATE THAT THE MANURE IS BEING HAULED OFF THE PREMISES DAILY. THIS IS NOT TRUE TO THE BEST OF OUR KNOWLEDGE. MANURE, WHEN NOT HAULED OFF, IS BEING SPREAD IN THE LOWER BOARDERS ARENAS. PAGE 10, IN REGARDS TO FIRST YEAR IMPROVEMENTS, SPECIFICALLY TWO RIDING ARENAS - CONCESSIONAIRE AND STAFF STATE THERE ARE 7 ARENAS AVAILABLE TO ALL BOARDERS. IN THIS AUDIT AND IN THE MEETING FOLLOWING, WE WERE TOLD VARIOUS NUMBERS OF ARENAS WERE AVAILABLE TO BOARDERS - 4, 6, 7 AND 8. THE TRUTH IS THAT BOARDERS HAVE ACCESS TO ONE SAND ARENA UP AT THE FRONT OF THE FACILITY AND MAY USE FOUR OF THE LOWER ARENAS IF THEY ARE NOT BEING USED IN LESSONS. THOSE ARENAS ARE INFERIOR TO THE UPPER ARENAS AND ARE IN CONSTANT USE BY THE RIDING SCHOOL. PAGE 11, CONCERNING PORTABLE BLEACHERS - CONCESSIONAIRE STATES THAT THESE ARE PROVIDED DURING SHOWS. THIS ALSO IS NOT TRUE. I HAVE BEEN TO SHOWS AT THE EQUESTRIAN CENTER ON SEVERAL OCCASSIONS AND HAVE NEVER SEEN PORTABLE BLEACHERS. WHY DOES STAFF STATE NO FURTHER ACTION? PAGE 13 - IN REGARDS TO EXCLUSIVE USE OF THE THREE FRONT ARENAS BY ENGLISH TRAINERS ONLY. CONCESSIONAIRE AGREES WITH STAFF'S RESPONSE THAT WHEN THESE ARENAS ARE NOT IN USE FOR LESSONS THAT THEY ARE OPEN TO ALL BOARDERS. THIS IS NOT TRUE. BOARDERS ARE STILL NOT ALLOWED TO USE THESE ARENAS. IN RETROSPECT, WE, THE BOARDERS, DID NOT WRITE OR SIGN THIS LEASE AGREEMENT. THE CITY PLACED THE REQUIREMENTS AND TIME LIMITATIONS ON THE CONCESSIONAIRE. WE HAVE MERELY BROUGHT TO YOUR ATTENTION WHAT THE DIRECTOR OF COMMUNITY SERVICES HAS FAILED TO DO IN THE LAST FIVE YEARS. ALSO, SINCE DISCREPANCIES HAVE BEEN DISCOVERED, WHY IS STAFF RECOMMENDING REWRITING THE LEASE AGREEMENT? CONCESSIONAIRE HAS NOT HONORED THE PRESENT AGREEMENT, REWRITING THE AGREEMENT WILL ONLY GIVE CONCESSIONAIRE FREE LICENSE TO DO WHATEVER HE CHOOSES. IF THE CITY CANNOT DRAW UP AND ENFORCE CONTRACTS, THEN THE CITY SHOULD NOT AUTHORIZE ANY MORE CONCESSIONS. WE, THE CONCERNED BOARDERS, ARE APPALLED THAT STAFF CONTINUES TO EXCUSE AND PROTECT THE CONCESSIONAIRE"S BLATENT DISREGARD OF THE SIGNED LEASE. WE, AS TAXPAYERS OF THIS CITY, ARE OUTRAGED THAT THE CITIZENS ARE CONTINUING TO DO THE JOB CITY STAFF IS RESPONSIBLE FOR. WE REQUEST THE CITY COUNCIL TONIGHT TO EXECUTE THE DEFAULT CLAUSE ON THIS AGREEMENT AND TO REMOVE THE CONCESSIONAIRE IMMEDIATELY. THANK YOU. City Council Operational Audit 4-10-87 Page 3. The City Council has the opportunity and the responsibility to take control of this situation. The Council must do so before it continues to fester to the detriment of the city and its taxpayers. The contract provides for termination under DEFAULT X. We, as concerned boarders, demand the City to exercise their moral obligation and terminate the contract with this Concessionaire. We are delighted with the personal efforts of the Council in touring the facility, talking with boarders and reading through the massive amounts of paperwork. We believe the Council has a good grasp of the situation and we are comfortable that the Council members will act on the information presented to them, terminate the contract and that the citizens who have suffered will be made whole. Respectfully Submitted, Catherine Edmonson for the Concerned Boarders 18341 Oxboro Lane Huntington Beach, CA 92648 cc: Max Bowman Charles Thompson Jim Engle Gail Hutton CONCERNED BOARDERS AT April 3 Meeting: Cathy Edmonson Laura Hermer Ruben Loshak Beth Shafer Bob Shaw Linda Shue Stacie Sigel Mary Yelovich Bill Zoern L� March 27, 1987 Mr. Max Bowman Director, Community Services City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Dear Mr. Bowman: After Ms. Edmonson's meeting of Friday, March 20, in which you gave her Staff's results of the Operational Audit of the Equestrian Center, a meeting of concerned boarders was immediately set up for Wednesday, March 25. Many boarders attended this meeting and the results have been typed in script onto the Operational Audit form. During this meeting, many concerns were expressed and. the boarders voted that the following questions and statements be presented to you. These statements and concerns are listed below: • Why was the Disposition (recommended action) already determined BEFORE the Boarders responses were received? Not only -is this unacceptable, it shows a bias or pre -determination on the part of Staff. • Operational and Financial Audits should be conducted by an independent, third -party. The staff "task force" was apparently comprised of five departments - what departments and what staff members? • The Audit is unacceptable due to staff responses not being consistent with boarders concerns and not addressing all items. o It is obvious to the boarders that the task force failed to investigate fully the concerns of the boarders and the task force also failed to visually inspect these same issues. March 27, 1987 Concerned Boarders Page 2. • Boarders requested an immediate price rollback and reimbursement of monies paid in unauthorized price increases. Not only did staff not address this major concern.expressed by boarders, staff continued to disregard this issue even after the City Council at their February 3 meeting directed Staff to prepare a report on the feasibility of this issue and present it to Council at their next meeting. Mr. Milligan is quoted in the Orange County Register dated March 24, 1987 saying "he never mistreated anyone and that no one can do anything about his rates." Also he is quoted as stating "What if I have (raised the rents)? What can they do about it?" Does this mean that City Staff has in fact told Mr. Milligan that he can raise his rates and the city will not hold him to his contract? If so, who authorized this? o When conducting an operational audit, most companies interview "customers" and employees at different stages of the audit - not in the presence of management. We found no indication that this had been done. Why not? o Public and boarders were not adequately defined in staff's response. • Fees to be charged for arena use should be at the prevailing market price, city -approved and posted. Has Staff determined the prevailing market price? If it is Staff's intention to charge boarders for use of the facilities, Staff must be aware that the prevailing market price for such activities is $0. Therefore, according to the contract, use of the entire facility is free to boarders (included in boarding rate). At this'time, the boarders reserve the right, in the future, to formulate additional questions, such as - bidding process, background investigation procedures used by the city, keeping of public records, financial checks done throughout the five year history and other items to be determined at a future date. Sincerely, Concerned Boarders Huntington Central Park Equestrian Center CITY OF HUNTINGTON 'BEACH INTER -DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Charles W. Thompson Fr Max Bowman City Administrator Director, Community Services Subject Equestrian Center ,Operational Date April 8, 1987 - Audit; Council Follow-up #87-18• Pursuant to Council direction on February 2, 1987, to look into the concerns of boarders at the Huntington Central Park Equestrian Center, the following report addresses three specific communications, i.e., January 8, January 26 and February 2,' 1987, from the boarders. You appointed me'to head a task force for this purpose. The task force was com- posed of representatives'from this department,.as well as Development Services, Public.Works, Administrative Services and City Attorney'. Task force members were to respond to the boarders' concerns for inclusion in a report made up of staff, equestrian center management -and boarders' committee responses, followed by.disposition on each item. Prior to the report's finalization, I met with the concerned boarders on two different occasions, as well as the equestrian center management in.order.to obtain•their,comments. I feel that the attached report is"c64rehensive and adequately addresses each boarder's concerns with the exception of two items.; 1) The boarders' committee is.'requesting a rollback of boarding fees,,.,to 1982 ($150 per.' month for paddocks, and $200 for boxstall.s:,) It is staff s .position that Council adcept, the established•boarding fees as of July 1, 1986 ($200 for paddocks and $2?5 for boxstalls,'with a $25 discount•i-i paid by the.first'of the month, making the actual cost$175 and $250, respectively.) I feel that since the boarders had accepted the fees that were changed from 1982 to July 1, 1986 without objection, a rollback of boarding fees is not appro- priate. A legal opinion has been requested for clarification. 2) Staff andw,management' of ` the .equestrian center, disagree on the provision of shavings for paddocks. *Management.provides shavings for,,bpxstalls for the $275 per month boarding fee; .however, shavings for-paddocks;will'only be provided if board- era pay.an extra fee. I have requested a legal opinion from the,City Attorney's Office -to interpret the agreement on this issue. Once I.have received that opinion, I will meet with the equestrian center management to negotiate the intent of the agreement. Charles W. Thompson April 8, 1987 - Page Two A financial.audit on the equestrian center -,will be addressed and directed to you separately by Bob Franz. In conclusion, I.Teel that all issues that were brought to the • city's attention by the concerned boarders have been addressed adequately by staff. If you need additional information or further clarification, it will be provided. MMB:cs Attachment • -01- Good evening members of the City Council. My name is ... and I live at .... I am here tonight expressing concerns that are shared by many boarders at the HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER. I would like to briefly outline many of these concerns which continue to exist after the city staff was informed many months ago. 1. At the February 3 Council Meeting the Concerned Boarders submitted numerous concerns and complaints to the Council. At the same meeting, it was moved,.seconded and approved to direct staff to perform operational and financial audits of the Equestrian Center. The preliminary operational audit was completed and sent to the boarders for their input on March 20. The final operational audit was completed on April 8. This operational audit was very discouraging for numerous reasons: A. There was no "operational audit" performed. This document merely listed our complaints in order - nothing more. Our concerns were to have been included in this audit, not comprise the entire document. Is staff incapable of conducting an operational audit on their own? Must we, the Concerned Boarders, continue to advise the Council of inaccurate, incomplete reporting by staff? B. Staff had already included, typed on the documents, the recommended disposition of each complaint before the Boarders responses were received. Mr. Bowman did apologize, however, this shows a bias or pre -determination on the part of staff in favor of the Management of the Equestrian Center. We do realize that the Management has made a sizeable investment in the Equestrian Center, but, this investment should not play a role in a true operational audit. C. The Concerned Boarders submit to you, tonight, that this operational audit is further unacceptable in that Boarders responses were in some cases altered or left out completely from the final document. Again, why is it left to the citizens of this city to continually monitor employees work? D. It is obvious, to us, that this "task force" failed to investigate fully the concerns of the boarders and merely asked Management of the Equestrian Center questions and accepted those answers without bothering to check the accuracy. 1. 2. BOARD PRICES were to be addressed by staff. In the lease agreement it is stated that the fees should be the current market price and that these fees must be submitted and APPROVED by City Council every year. The boarders asked for a price rollback and reimbursement in boarding fees for two reasons: first, the fees are above current market price as evidenced by our survey that was forwarded to Mr. Bowman on December 10, 1986 and confirmed by the city's survey dated April 24, 1987 and secondly because the boarding fees were NEVER approved by City Council as required. Staff was directed to determine the feasibility and legality of remibursemnt. To our knowledge, Mr. Bowman did neither. Excluding the two Equestrian Centers in Los Angeles County, the city's survey confirms that the prices charged for boarding at the Huntington Central Park Equestrian Center are $85 and $59 more per month for boxstalls and paddocks respectively. Including the Centers in Los'Angeles County the Huntington Central Park Equestrian Center is still above the average price by $63 and $52. In looking at these figures, we ask that you look at the average prices excluding the Equestrian Centers in Los Angeles for two reasons; firstly, only stables in Orange County should have been surveyed and secondly, both of the Los Angeles County stables are having financial difficulties resulting in filing Chapter 11. Again, once more, we protest the incomplete and haphazard work by city staff. The city staff only surveyed 12 unnamed stables and we surveyed 18 and identified them by name. The city staff did not ask if these stables allowed boarders to jump their horses - one of our complaints. We know, however, from our own survey that the overwhelming majority do allow boarders to jump their horses whereas the Huntington Central Park Equestrian Center does not. In regards to the number of arenas at each facility, it is again obvious that the city did not visually check answers submitted by the Huntington Central Park Equestrian Center. The management of that Center responded that there is a total of 11 arenas at the facility. Most of you are aware, through your own efforts of touring the facility, that the number is incorrect. Also, Management stated that the Western trainers have two arenas for their exclusive use. This, again, is absolutely untrue. Furthermore, in the city's own survey, 92.7% of the stables opened ALL ARENAS TO THE BOARDERS WHEN LESSONS WERE NOT IN PROGRESS. The Huntington Central Park Equestrian Center, on the other hand, has made it policy that three of the four arenas with sand footing and wood fencing are for the use of the English Trainers ONLY. The public, boarders and Western trainers are not allowed entrance AT ANY TIME! The field arenas that were hurriedly built in January, more than a month after our complaints, are not the same quality as the exclusive arenas by any stretch of the imagination. Why? 2. 3. In the lease agreement it is stated that shavings will be replaced in both boxstalls and paddocks. However, shavings have never been supplied to the paddocks. The Boarders requested that this be enforced and that boarders be reimbursed for their out-of-pocket expenses for supplying shavings on their own. Staff was counseled by the Attorney's office in a meeting on January 26 that this be enforced. In meeting with the boarders April 3, Mr. Bowman stated more than once that he was under the impression after talking with the Management that this was already being supplied. Mr. Bowman also stated more than once at this same meeting that he hadn't talked to the Management of the Equestrian Center and didn't know if the paddocks were receiving shavings or not. Mr. Bowman then stated in the final Operational Audit that he would seek legal advice on this matter. At this point, we are almost as confused on this item as Mr. Bowman is. Did he speak with the Management or not? Did he receive legal counsel on January 26 or not? Did Mr. Bowman seek legal counsel after the April 3 meeting? Will the legal opinion differ the second time around? 4. The Boarders asked that the agreement be enforced in regards to public access to park property. It was our understanding that this had been accomplished, however; in the stable survey dated April 24, 1987, the Management of the Equestrian Center answered NO to the question of does the Center have a "ride through policy." Also, parking large enough to accomodate trucks and trailers with water and electrical hook-ups were to be provided so that the public could come in and park and enjoy the city's trail system. The operational audit stated that there were four such spaces and hook-ups available. Where are they? What is the fee? Is it posted as required in the contract? 5. The boarders demanded that certain safety hazards be rectified immediately. One of these hazards is the plastic drains in the washracks. These drains break easily leaving a hole large enough for the horses to put their foot through. We complained and were told that this would be taken care of immediately or that it was already taken care of with metal drains on these dates: December 10, 1986, January 27, 1987, and March 27, 1987. Finally, at our meeting with Mr. Bowman on April 3, 1987 - which is stated on the April 8 Operational Audit - the drains were to be fixed by April 10, 1987. Today is May 20. Are the drains fixed? Does Mr. Bowman know the answer? If not, why not? The answer, of course, is NO. The Management of the Equestrian Center told city staff on three occasions that the drains were fixed, then told staff they would be fixed on a fourth occasion by April 10. Does it really take four times for the staff to realize that the Management of the Equestrian Center has no intention of correcting this hazard on their own? 3. Mr. Bowman did point out that new washracks had been installed for the boarders use and that because of these new washracks he was sure that this exceeded the amount actually needed. When it was pointed out that these new washracks were not usable because the drain had not been hooked up and that there were no hoses, etc., Mr. Bowman stated to give them more time. To this, we respond, how much more time? In January of this year, three large, working washracks were dismantled to make room for six smaller washracks. To this date, the new washracks are still not usable. Another major concern is the speed of tractors and golfcarts driven around the property by employees of the Concession, specifically driven by Mr. Milligan. The only response to this issue was that the Management would be more attentive to this concern. We are here to inform you tonight, Management's attentiveness to this problem has not been good enough. On January 31, March 12, April 11 and April 12 there were incidences involving vechicles all driven by Mr. Milligan. Two of these incidences caused the horses to "spook" and the riders fell. Fortunately, neither riders nor horses were injured during these occurences. Another safety issue has been the footing of the arenas. As previously stated, after our initial complaints of December 10, 1986, additional sand was brought in and dumped in the one sand boarder arena. Three additional "field arenas" were hurriedly constructed in January and manure and soiled shavings were dumped into these instead of sand. When manure and shavings are dumped on top of hard clay and not worked into the ground, the "footing" can become very slippery when wet. It was only this month that shavings were dumped into the smaller turn -outs making the footing much better. These shavings were not as deep and were worked into the soil better. However, footing is NOT THE SAME QUALITY AS IN THE EXCLUSIVE ENGLISH ARENAS and this problem has already contributed to one horse breaking one of the small bones in a front leg. A claim for damages has already been filed against the city by the owner of that horse. 6. Another concern expressed was that a 24-hour phone number be given in case of emergency because the Center closes and locks the gate at 10:00 p.m. Management responded by stating that a 24-hour number would be provided to the boarders. This has not be done. Also, Management stated that it would give out keys to those 4. boarders who requested one with a good reason. Richard Edmonson asked for a key on March 28. Management responded in writing to his request on April 8 stating that it was impossible to provide a key on a long-term basis to boarders. Ms. Harris' solution was to give out her home phone number and that in case of emergency she would drive to the center and let him in. This is ludicrous! Mr. Edmonson was and is willing to pay to have a key made. Does Ms. Harris really want to drive to Huntington Beach in the middle of the night to open a gate when this all could be avoided by giving out the key? What will happen if Ms. Harris is not at home for the evening or is out of town? Letters are enclosed in your packets. 7. In the Lease Agreement, the Management agreed to provide 20 rental horses. This has not been done. Rental horses have never been available, only horses for riding lessons. There have never been 20 horses available for riding lessons, either. In fact, we were told by one of the Riding Instructors that most of the horses had been sold and that there were only three left. The others were sold to people who received a 50 percent reduction in board if they would allow their horses to be used for lessons. There are a couple of concerns here. First, it was stated in the Operational Audit that there would be 20 horses by April 6. Second, does the percentage of boarding receipts paid to the city reflect the full board price or the reduction? Third, how much liability is there for the city in case of injury to riders and/or horses? Fourth, is Mr. Bowman aware of this situation? Again, if not, why not? On Saturday and Sunday, May 16 and 17, the Riding Instructors left, taking with them approximately 14 horses and many students. We suggest that you verify this statement and determine how many horses in the Riding School are now available. 8. In the Operational Audit, Mr. Bowman was also directed to interpret the status of Ferrari Farms. Mr. Bowman stated that this operation was not a sub -lease and that if we disagreed, we needed to show written documents as proof to dispute this. Our response, first of all, is that it is not our responsibility or job to prove anything. That is Mr. Bowman's job. Secondly, if Ferrari Farms is just boarding not sub -leasing as Mr. Bowman suggests, why are they boarding their horses exclusively in what is supposed to be the "SALES BARN" required in the lease agreement? Why are they the only boarders not in full -training with an English instructor who are allowed to use the upper sand arenas? Why are they the only boarders allowed to use the grass turn -outs? Why are they the only boarders allowed to use the hotwalker? Why are they the only boarders allowed to store their large truck, horse -trailer and camper? Why are they the only boarders allowed to jump their horses without being in a lesson or training? Why was Mr. Bowman unwilling or unable to answer these questions? 61F We have shown and proven, over and over again numerous breaches in contract including: denial of public access, discrimination, unauthorized board increases, shavings not provided to paddocks, safety hazards which have not been rectified in a timely manner after repeated requests by the city, pollution of Central Park Lake over a long period of time - ignoring the City and the California Regional Water Quality Control Board demands that a water retention basin be built, not posting the faithful performance bond, inadequate insurance coverage, workers compensation insurance lapsing, required permits for buildings and lights not obtained, rental horses not provided, not reporting all income to the city as shown by the Financial Audit, numerous other breaches in the contract and MOST IMPORTANTLY THE ABUSIVE HARASSEMENT directed at those boarders who did complain to the city. Council members are by now aware of the extent of this harassment which included foul language, threatened eviction, eviction in one incident, and implied threats against the boarders horses. Council members were made aware in January of this abuse because the Community Services Department was either unable or unwilling to control the situation. This situation is still continuing and we want it stopped immediately! Why has neither the Community Services Office nor the Attorney's Office put the Concessionaire on notice? What does it take to remove the Concessionaire? We are aware that the Concessionaire has a large investment in this facility; however, in our opinion, this does not excuse or give free license for the Concessionaire to do anything he wants. Council attention is long overdue! The Concerned Boarders of the Huntington Central Park Equestrian Center are demanding that the lease agreement between the Concessionaire and the City be enforced and that the following items be addressed: A. Board fee rollback to $200 for boxstalls and $150 for paddocks. Reimbursement to boarders for all monies paid in unauthorized rent increases. B. Shavings be supplied to the paddocks. Reimbursement to all boarders for out-of-pocket expenses in supplying shavings themselves in the past. C. All boarders to use ALL ARENAS! No discrimination, segregation or exclusive arenas. D. Footing to be improved in all arenas. MIR E. All safety hazards to be taken care of IMMEDIATELY! 'This includes washrack drains, footing, vehicles driven by employees and any other safety violations found in the future. F. Employees to wear uniforms or badges identifying them as employees as stated in the lease agreement. G. 20 Rental Horses. H. Public Access to facility. We ask that public be allowed to ride through and that one arena be designated for public use at a fee. This fee is to be posted as stated in lease agreement. I. A 24-hour phone number be given out to boarders for emergencies. Keys to be provided to boarders if requested. J. Parking, large enough to accomodate trucks and trailers be provided along with electrical and water hook-ups. K. Boarders be allowed to jump their horses. Stipulations of wearing hardhats is recommended. L. Removal of Concessionaire. We would like to ask the City Council, what can we, as Concerned Boarders, do now? What are our options if the Concessionaire continues to not comply with the lease agreement and the city continues to not enforce this same agreement? We feel it would be counterproductive for the taxpayers of this city to incure the burden of our next logical step. We ask that the Council review our complaints and concerns and reach a solution by the next Council meeting. Thank you. 7. • April 10, 1987 City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Dear Council Members: In our meeting of Friday, April 3, 1987, several boarders from the Huntington Beach Central Park Equestrian Center met with Mr. Max Bowman, Mr. Jim Engle and Councilman Wes Bannister to further discuss the Operational Audit of the Equestrian Center. We have listed below our comments: o Our responses to the Operational Audit stand as previously stated - UNCHANGED. Several of our concerns were either not fully addressed or staff offered no solution. As you recall, our original concerns and complaints included board price increases, arena usage, public access, safety hazards, footing, shavings for stalls, discrimination and harassment. o We have been told and have reason to believe, that the bid for the concession was awarded to a weak candidate on the basis of being the only bid. Other prospective bidders were discouraged as they felt they could not fulfill demands of the city. To date, the Concessionaire has failed to fulfill some of these same obligations. In addition to not providing the above -mentioned services to boarders, there was inadequate insurance coverage, the Central Park Lake was silting up and that sewage coming from the stables was draining directly into the lake, and the performance cash bond had not been posted. In pointing out these "breaches" of contract, and asking if the city had been negligent in supervising this facility, Mr. Bowman stated "Yes, it's my fault. I'll take full responsibility." o In areas of the contract where staff pleads ambiguity or vagueness - we are disgusted! After all, the city wrcte the contract and it is the citizens and taxpayers of this city that are paying for it. In other areas of the contract, staff suggests amending the contract to relieve the Concessionaire of some of these obligations that prove to be costly, etc. This provides vet further arcunds for terminating the contract NOW and renidding on a clearer, fairer contract. City Council Operational Audit 4-10-87 Page 2. o In our opinion, the Concessionaire is capricious in that the rules are not enforced equally. A few examples are: * There have been numerous boarders who have paid late fees after being a month or more delinquent in their payments. The Concessionaire refused to take payment from one lady, however, when she was only five (5) days late! Management broke into her tack shed and removed her personal belongings and promised the stall to someone else. There is NO CONTRACTURAL BASIS FOR HER REMOVAL! * The Concessionaire allows some boarders to use certain arenas, others may not. * Certain boarders are told they may lunge their horse in the "field arenas" others are told they may not. * Some boarders may jump their horses without a trainer present and without hardhat, others are not allowed to jump their horses at all. * Boarders, who bring their dogs to the stable, must keep their dogs on a leash (city ordinance), others let their dogs run loose. * No stallions may be boarded at the Equestrian Center. Several boarders have been told to either geld their stallions or move. However, Management has allowed other boarders to board their stallions. * Pregnant mares must be moved out before foaling date as per Management. However, one individual who has three or four horses in training with one of the English trainers is keeping their mare at the Center during the mare's pregnancy and birth. * Boarders who complained to the city early in December have been victims of harassment to the point where one person has since moved her horse to another city, others have been frustrated and reduced to tears and still others are so afraid and intimidated that thev will not "visit" their horses alone - they are accompanied by friends or family members. THIS IS NOT ACCEPTABLE AND WE WILL NOT TOLERATE THIS TYPE OF BEHAVIOR. Boarders' Concerns Staff Response How would the City interpret City has no knowledge Ferrari Farm's arrangement of subleases by manage — for the top barn and ment. grass rings? Can anyone rent a box— Staff would need more stall in either of the information on barns two English trainers' being used by trainers. barns or must they be in full training? Is there a waiting list Management submitted a for those barns? list of over sixty names and addresses on Feb- ruary 20, 1987. How would the City interpret The front arena may be the exclusive use of the used exclusively by the front three arenas by only trainers as long as they two English trainers? don't discriminate against anyone. When the arenas are not in use, they must be open to all persons. Manage— ment has the right to charge City approved fee for the use. Since most patrons and "Racing track" is better the public are not referred to as a con — allowed to ride in the ditioning track. This - racing track, for whose track is open to all use is it intended? persons when not used for Special events, at the approved city fee. March 10, 1987 Page Thirteen Management Response Boarders' Committee Response Disposition Management states it has staff needs to investigate. Management will request no sublease agreements. city approval for any (sublease. No further action required. These barns have been full. They are opened to the public when avail— able. There is a waiting list of List verified? Persons No further action required. over sixty persons. waiting for paddocks or barns? Management agrees with Discrimination continues. Management has the right staff response. to use arenas for training. Other times, arenas will opened to other persons at the fee approved by city. No further action. The track is not finished. Agree with management. No further action required. All boarders have had use of track with controls. 13. STABLE A.J.A. FARM BOARDER'S SURVEY WITH STAFF INFORMATION % OF ARENAS OPEN TO BOARDERS # OF ARENAS # OF ARENAS WHEN NOT IN FOR BOARDERS FOR TRAINERS USE BY TRAINERS 2 0 100% FOUR SEASONS 2 0 100% FOX MEADOWS 3 0 100% HUNTINGTON CENTRAL PARK 5 HUNTINGTON CREST 2 INDUSTRY HILL__S (L.A. COUNTY) 3 GRIFFITH PARK (L.A. COUNTY) 5 OCEAN VIEW 5 ORANGE C_U_NTY FAIRGROUNDS 7 ORTEGA EQUESTRIAN CENTER 3 RANCHO DEL RIO 3 RIVER TRAIL STABLES 4 SANTIAGO EQUESTRIAN CENTER 2 in Is 1 1 0 0 1 N 1 a Private City XState 66.75% 100% 100% 100% 100% 100% 100% 100% 100% 100% BOARDER'S SURVEY WITH STAFF INFORMATION STABLE BOXSTALLS PADDOCKS A.J.A. FARM $200 $120 FOUR SEASONS $185 $163 FOX MEADOWS $185 $135 HUNTINGTO_ N CENTRAL PARK $275* $200* HUNTINGTON CREST - $130 INDUSTRY HILLS' $225 - GRIFFITH PARK $272 $240 OCEAN VIEW $195 $145 ORANGE COUNTY FAIRGROUNDS $250 - ORTEGA EOUESTRIAN CENTER $210 $150 RANCHO DEL RIO $180 $150 RIVER TRAIL STABLES $180 $139 SANTIAGO EQUESTRIAN CENTER $185 $132 Average Boxstall Price w/o L.A.: $197 Average Paddock Price w/o L.A.: $140 Average Boxstall Price with L.A.: $207 Average Paddock Price with L.A.: $150 H.C.P.E.C. Box - Stalls: $275* H.C.P.E.C. Paddocks: $200* *$25 Discount if paid on or before the first of the month. Private x City -/—\State March 28, 1987 Ms Mary Harris Huntington Beach Central Park Equestrian Center 18381 Golden West Street Huntington Beach, Ca. 92648 Dear Ms. Harris, On February 24, 1987 I was sworn in as a Reserve Deputy Sheriff with the Orange County Sheriff -Coroner Department. I am attatch to the Mounted Unit with this organization. This requires that at times I and my horse be available to respond at any time deemed necessary by the Sheriffs Dept. This letter is to request a key to the front gate for access to the Equestrian Center Facility at times outside normal operating hours. This will allow my timely response to any emergencey relating to law enforcement activities or search and rescue functions as required. If you feel it necessary I will be happy to provide proper identification on request. Sincerely, GU Richard W. Edmonson Jr. 18341 Oxboro Lane Huntington Beach, Ca. 92648 HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 18381 Goldenwest Blvd. Huntington Beach, CA 92648 (714) 848-6565 April 8, 1987 Richard Edmonson 18341 Oxboro Lane Huntington Beach, Calif. 92648 Dear Mr. Edmonson: Due to the size of our facility and the number of people we have, it is impossible to provide keys on a long time basis. We will provide keys to people on a temporary basis if they have a sick horse, etc... If you ever need to have access to the facility at any time, please call me at my home. That number is (714)432-8717. I am only fifteen minutes away and would be happy to help you in any way I can. Sincerely, Mary Harris General Manager Huntington Central Park Equestrain Center REQUEZI.. FOR CITY COUNCACTION December 4, 1989 Date Submitted to: Honorable Mayor and City Council Submitted by: Paul E. Cook, City Administrator g- Prepared by: Melvin M. Bowman, Director, Community Service Subject: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER COMMITTEE MEMBERSHIP TERM Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a need to set the length of term for the members of the Huntington Central Park Equestrian Center Committee. RECOMMENDATION Voting members of the Huntington Central Park Equestrian Center Committee to serve for a term of two years and may serve up to four terms if reappointed. ANALYSIS The Huntington Central Park Equestrian Center Committee, which was established by City Council, is comprised of boarders who represent specific rows or barns, a representative from the Community Services Commission, a city staff liaison and up to two equestrian center management representatives. City staff and equestrian center management do not vote. The committee, at its October 17 regular quarterly meeting, decided to recommend to City Council that voting members serve two year terms and that row/barn representatives can be reappointed by a vote of their fellow boarders from the specific row or barn that they represent. The committee also recommends a maximum of four terms, which is similar to city boards and commissions. The Community Services Commission representative will also serve up to a maximum of four two year terms, unless the commission chair assigns a different representative to the committee. All terms will be based on appointment dates. The Huntington Central Park Equestrian Center Committee members feel that this length of term and number of terms will provide continuity to the committee. FUNDING SOURCE N/A ALTERNATIVE ACTION 1. Committee members to serve only one term. 2. Council to set different length of term and number of terms for committee members. ATTACHMENT None MMB:mb 0706E/78 PIO 4/84 REQUES'i FOR CITY COUNCIL ,-ACTION Date September 5, 1989 Submitted to: Honorable Mayor and City Council APPROVED BY CITY COUNCIL Mn Submitted by: Paul E. Cook, City Administrator Prepared by: Melvin M. Bowman, Director, Community Servi ILITY CLERK Subject: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER PENALTY FEE Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a need to establish late penalty fees charged by National Equestrian Centers, Inc. (NEC) when boarders do not pay the monthly stall rent on time. RECOMMENDATION Approve the late penalties of $25 after the fifth of the month and another $25 after the fifteenth of the month that is charged by NEC at the Huntington Central Park Equestrian Center. ANALYSIS NEC charges late fees to boarders if they do not pay the monthly stall rental fees in a reasonable period of time. The charge is $25 after the fifth of the month, and another $25 if the rental fee has not been paid by the fifteenth of the month. The rental fee is due on the first of each month. The issue of late fees was discussed by the Huntington Central Park Equestrian Committee. The committee felt that such a penalty should be approved/disapproved by City Council because it is a fee. Section IV.L. of the Concessionaire's Agreement states: "AlI rates for services and merchandise charged by the CONCESSIONAIRE shall be uniform at all times and seasons and subject to the approval of the CITY." The Orange County Fairgrounds Equestrian Center has a penalty of $50 if the rent is not paid by the tenth of the month. The late fee goes to $100 for the second occurrence. If a boarder is late a third time, he/she is asked to leave the facility. Staff feels that NEC's penalty is reasonable and makes sense from a business standpoint. NEC indicates that the penalties help to rectify the problem of late payments without having to take more drastic steps. FUNDING SOURCE N/A i\�4/84 HUNTINGTON CENTRAL PARK ESTRIAN CENTER PENALTY Page 2 September 5, 1989 ALTERNATIVE ACTIONS 1. Refer the matter to staff for additional research regarding penalty fees. 2. Modify the late penalty at City Council's discretion. ATTACHMENTS one 0706E/63/64 ORDINANCE NO 2939 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE BY ADDING CHAPTER 3.48 ENTITLED "LATE CHARGES" The City Council of the City of Huntington Beach does ordain as follows: SECTION 1. The Huntington Beach Municipal Code is hereby amended by adding Chapter 3.48, being Sections 3.48.010 through 3.48.050 to read as follows: Sections: CHAPTER 3.48 LATE CHARGES 3.48.010 Definitions 3.48.020 Established 3.48.030 Due Date 3.48.040 Basic Late Charge; Additional Penalty 3.48.050 Application of Amounts Received 3.48.010 Definitions. Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: (a) "City" means the City of Huntington Beach (b) "Miscellaneous receivables" means all billings except those for taxes, business licenses, and water as otherwise governed by titles 3, 5 and 14 of this code, respectively. (c) "Person" means any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership of any kind, joint venture, club, trust, business, society, individual or municipal corporation. 3.48.020 Established. Late charges are established on all persons in the city on all miscellaneous receivables. A late charge will be applied to the miscellaneous receivable if payment is not received by the due date. -1- 2939 3.48.030 Due Date. The due date is thirty (30) days after the billing date, unless otherwise agreed to by the city and the person billed. 3.48.040 Basic Late Charge; Additional Penalty. The basic late charge is ten percent (10%) of the amount billed. An additional penalty of one-half of one percent (0.5%) per month shall be assessed for non-payment of the amount billed and the basic late charge. 3.48.050 Application of Amounts Received. Amounts received shall apply first to any late charge, and then to the original amount billed. SECTION 2. This ordinance shall take effect thirty days after the date of its adoption, or as soon after the thirty day period as possible. SECTION 3. The City Clerk shall certify to the adoption of this ordinance and shall cause the same to be published in the manner prescribed by law. Passed and adopted this 2nd day of MaY 1988. ATTEST: �//17 1--"2 City Clerk R D ND A V City Administrator rf Mayor PROVE111 AAS TO FORM BMW" Ii—ir�,cfor of/�Ad�istra ve Services L / -2- 2939 ,, • Or io. 2939 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 18th day of April 19 88 , and was again read to said City Council at a regular meeting thereof held on the 2nd day of May , 19 88 and was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council. AYES: Councilmen: Kelly, Finley, Erskine, Mays, Winchell, Bannister NOES: Councilmen: None ABSENT: Councilmen: None OUT OF ROOM: Green ' �y %7/,rz_t� City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 2939 CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION HUNTINGTON BEACH To From CONNIE BROCKWAY ARTHUR FOLGER City Clerk Deputy City Attorney Subject Date RCA Huntington Park Equestrian August 11, 1989 Center Penalty Fee The RCA is a bit confusing, however, this is not a fee being charged by the city. The city, in this instance, is merely approving a fee which our concessionaire is going to charge the users of the equestrian center. It is only before the Council because the lease between the city and the concessionaire requires that any charges be approved by the City Council. If you have any further questions or if this memo does not clarify this matter, please contact me. ARTHUR FOLGER Deputy City Attorney AJF/rj 1 REQUES f FOR CITY COUNCIL ACTION May 15, 1989 Date Submitted to: Honorable Mayor and City Council G by: r Submitted Paul E. Cook, City Administrator Prepared by: Melvin M. Bowman, Director, Community Service ry -0:6,ln Subject: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER FEE INCREASES APPROVED BY WY`3OUNCIL c.o Consistent with Council Policy? [ ] Yes [ ] New Policy or Exceptio ~S - �s i9 �?% Statement of Issue, Recommendation, Analysis, Funding Source, Alternative , STATEMENT OF ISSUE National Equestrian Centers, Inc. has requested fee increases for box stalls and pipe stalls at the Huntington Central Park Equestrian Center. RECOMMENDATION Approve increase of the fees at the Huntington Central Park Equestrian Center from $250 per month to $285 per month for a box stall and from $175 per month to $200 per month for a pipe stall effective June 1, 1989. ANALYSIS National Equestrian Centers, Inc. has contacted the city to request that the boarders' fees for box and pipe stalls be increased. Section IV.L. of the concessionaire's agreement states, "All rates for services and merchandise charged by CONCESSIONAIRE shall be uniform at all times and seasons and subject to the approval of the CITY. The standard used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services." Staff surveyed other equestrian centers (see attachment) and found box stalls and pipe stalls varied in price up to $320 and $240 per month, respectively. Therefore, the requested increase to $285 for a box stall and $200 for a pipe stall is reasonable within the limits set by comparable equestrian centers. Also, it should be noted that, at the request of City Council, current rates at the equestrian center have been in effect since July; 1986. FUNDING SOURCE N/A PI O 5/85 REQUEST FOR CITY COUNT ACTION MAY 15, 1989 HCP EQUESTRIAN CENTER .-t INCREASES PAGE TWO ALTERNATIVE ACTIONS 1. Refer the matter to the Council Ad Hoc Equestrian Center Committee of Tom Mays and Grace Winchell. 2. Modify the request for increased fees. 3. Refer the matter to an arbitrator. wrr wry ururr 1. May 2, 1989 letter from Mary Harris 2. Survey 0705E/52-53 ^ - ` ^ ' HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 1&@m/Golden west Blvd. o"muxxgtono=u"h.cumum4m (714) 048-6505 May 2, 1989 City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Attn: Jim Engle Re: Fee increase Dear Jim; This letter is a request for approval to increase our fees at the Huntington Central Park Equestrian Center. Below is the ..fee schedule we would like approved: Box stalls $285.00 Pipe corrals 200.00 If you have any questions regarding this issue, please contact me. Sincerely, Mary Harris General Manage! ---- Huntington Central Park Equestrian Center 5-1-89 EQUESTRIAN CENTERS SURVEY 4J � C: V) d JOf J N Jof to W J J I..� J to L- J Q O J O Q C) O Uj W O <n cn �F- wN CrN W �J WQ wN WQ 4-)w+� CO C d C no S._ X m W £ d co £ :3: MZ H £ w O O m£ o d£ 00 2 m O.-. Z d 00 Z C):: S Q HCP EQUESTRIAN CTR $250 $175 155 166 3 7 lg (714) 848-6565 2 sm CURRENT FEES +bull pen ---------------------------------------------------- HCP EQUESTRIAN CTR $285 $200 155 166 3 7 lg PROPOSED FEES 2 sm +bull pen ANAHEIM HILLS RIDING $250 $150 45 50 2 3 CLUB (714) 998-2830 12xl2 f200 2x24 $225 33 sides open 1 side closed HUNTINGTON CREST N/A 135 0 100 1 2 (714) 847-5510 2x12 $145 12x24 INDUSTRY HILLS $275 N/A 200 N/A 5 7 (818) 964-6773 LA EQUESTRIAN CTR $320 $240 360 200 5 8 (818) 840-9066 MALIBU RIDING AND $290 240 90 30 2 3 TENNIS CLUB 260 (213) 457-9783 cov'd OC FAIRGROUNDS $275 N/A 276 0 6 7 (714) 641-1328 OCEAN VIEW STABLES $220 N/A 36 0 1 3 (714)842-2778 PADDOCK RIDING CLUB $310 N/A 200 20 3 7 by 7/89 (213) 662-3523 PICO RIVERA $225 $175 96 72 4 4 (213) 699-0983 RANCHO SIERRA VISTA $203 $121 280 66 3 8 (714) 661-3867 part cover $140 half cover 0// 0 c REQUES i" FOR CITY COUNCIL" ACTION Date Submitted to: Honorable Mayor and City Council Submitted by: Paul E. Cook, City Administrator Prepared by: Melvin M. Bowman, Director, Community Servi Subject: ASSIGNMENT OF CONCESSION AGREEMENT - I- HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER Consistent with Council Policy? [V Yes [ ] New Policy or Exception March 6, 1989 CITY CU UNCIL Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE The lessee of the Huntington Central Park Equestrian Center is National Equestrian Centers, Inc. Ed Milligan, who has a 50 percent interest in the corporation, is selling his share of same to Willard and Mary Harris. The concessionaire's agreement gives the lessee the right of assignment with the consent of the city. RECOMMENDATION Adopt the resolution consenting to the transfer -,of Ed Milligan's 50 percent interest in the Huntington Central Park Equestrian Center to Willard and Mary Harris. ANALYSIS In October of 1982, the city entered into a twenty-five year lease agreement with Better Built Enterprises, Inc. for the finance, design, construction, operation and maintenance of an equestrian center in Central Park. Section XI of the agreement gives the lessee the right of assignment, with written consent of the city, which consent is not to be unreasonably withheld. On November 3, 1986, City Council approved transferring the concession to National Equestrian Centers, Inc. with Willard and Mary Harris becoming 50 percent owners and Mr. Milligan retaining 50 percent ownership. Mr. Milligan is now selling his .share of the corporation to the Harris' who will now have sole interest in National Equestrian Centers, Inc. It is necessary for the city to give its consent to this transaction. .19 89 FUNDING SOURCE N/A ALTERNATIVE ACTIONS Deny the request for assignment. D ATTACHMENT Resolution with Exhibits Al, A2, A3 / PI O 5/85 RESOLUTION NO. 5998 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH CONSENTING TO THE NATIONAL EQUESTRIAN CENTER'S REQUEST FOR APPROVAL OF A TRANSFER OF OWNERSHIP This request for consent to the transfer of shares is pursuant to that certain concession agreement for the HUNTINGTON BEACH CENTRAL PARK EQUESTRIAN CENTER ("AGREEMENT") between the CITY OF HUNTINGTON BEACH ("CITY") and NATIONAL EQUESTRIAN CENTER INCORPORATED ("CONCESSIONAIRE"). WHEREAS, CONCESSIONAIRE is a California corporation with fifty percent (50%) of its capital stock owned by Mr. Eddie Milligan, and Mr. Milligan wishes to transfer such stock to Willard V. Harris, Jr. and Mary Harris ("TRANSFEREES"), as of January 19, 1989, and The AGREEMENT requires the CITY to approve such transfers, and TRANSFEREES have requested such approval by virtul(e of the letter dated January 24, 1989 attached hereto as Exhibit "A" and incorporated herein by this reference. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the r City of Huntington Beach hereby consents to the above transfer of ownership. PASSED & ADOPTED by the City Council of the City of Huntington Beach at a Regular Meeting thereof held on the 6th day of March , 1989 ATTEST: City Clerk Ll REVIEWED AND APPROVED: City Administrator Mayor APPROVED AS TO FORM: City Attorney INITIATED AND APPROVED: 7)4ec'tor�ofc�ommun�l—t—y—�� Services as J Res, No. 5998 STATE OF CALIFORNIA COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 6th of March , 19 89 by the following vote: AYES: Councilmembers: day MacAllister, Green, Winchell, Bannister, Mays, Silva, Erskine NOES: Councilmembers: ABSENT: Councilmembers: None City Cler and ex-officiolelerk of the City Council of the City of Huntington Beach, California ik! -4 == 1; :1,-19 r ,T _H. i_i=-1 r.� HLl21 TINGTON CENTRAL PARK EQUkSTRIAN UNTER 1$U1 Goldenweat Blvd. Huntington Beach, CA OW48 (714.) 848-8868 January 24, 1989 Mr. Paul Cook Administrator City of Huntington Beach 2000 Main Street Huntington Beach, CA Dear Mr. Cook! Kindly approve the transfer of the 50% stocks ownership of Eddie Milligan in the Huntington Central Park Equestrian Center to Mary Harris and myself, effective January 20, 1989. Respectfully, Willard V. Harris,'Jr. cc,, Art Delaloza, Esq. EXHIBIT "A" 1 . . HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER 183e1Gvudenwom cupu. Huntington Beach, o\n2648 (714)0116565 January 16, 1989 City of Huntington Beach 2000 Main St. Huntington Beach, Calif. Attn: Max Bowman Re: Transfer of 50% ownership Dear Max; National Equestrian Centers, Inc. is the concessionaire of the Huntington Central Park Equestrian Center as per the assignment dated October 9, 1986. As president of National Equestrian Centers, Inc., I am requesting that the City approve a transfer of 50% ownership. I am selling my interest in National Equestrian Center and resigning as president and director. This letter is to request that you approve the sale of my 50% interest to Bill Harris and Mary Harris. ^ Sincerely Eddie J' Milligar President National Equestrian Centers, inc. EXHIBIT "A" 2 1 Fi'IT _H. I_I'_,r r._ "n The Board of Directors of Nat'ona? Equeat=ian Center, A California Corporation. NOTICE IS HEREBY GIVEN that 1, Edward J. M' -_gd::, recig, 2v a director, cff'cer and/cr employee of ;detional Equestrian Center on Jan; aa} y 20, ' 9 $9 . _''Dated: January cC, 1969 6fQ ...__� Edward Z. 21i .{.ga . 7 EXHIBIT "A" 3 REQUEST FOR CITY COUNCIL ACTION Submitted to: Submitted by: Prepared by: Subject: Date May 25 UNCIL ,7:A4 E The Honorable Mayor and City Council 6 19 Paul E. Cook, City Admi ni strator`\�c� ,CITY CLL_� Melvin M. Bowman, Director, Community Servi CONTROL OF DOGS AT HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER Consistent with Council Policy? [✓J es [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a need to reevaluate the city's rule that dogs on a six-foot leash will be allowed at the Huntington Central Park Equestrian Center. RECOMMENDATION Amend the equestrian center rules by eliminating the rule allowing dogs on the premises and institute a rule disallowing dogs on the premises except during shows when they must be on a six-foot leash. ANALYSIS On March 7, 1988, City Council approved a rule for the Huntington Central Park Equestrian Center which stated "dogs must be a a six-foot leash." In an April 11, 1988 .letter to the City Administrator, the attorney for equestrian center management (attachment 1), asked to have this rule revoked. If not, the city would have to assume the liability for dogs on the premises. In addition, management feels that dogs in an equestrian center constitute an unsafe condition. Management is willing to allow dogs on the facility when people are coming from outside the area to the equestrian center for shows, but this would be the only exception. The City Administrator referred the matter to the Community Services Director who requested a legal opinion from the City Attorney. The City Attorney's May 11, 1988 memo (attachment 2) indicated that if dogs, even on a leash, are a danger, they should be banned from the center. She also noted that unreasonable interference in safety rules by the city could result in increased liability for the city. .1 PIO 5/85 RECOMMENDED FOR CITY C 'CIL ACTION CONTROL OF DOGS AT HCP EQUESTRIAN CENTER MAY 2.5, 1988 PAGE TWO Staff has investigated the situation. Management has indicated that individuals have been thrown from horses that were "spooked" by dogs at the facility. Staff has also contacted four other equestrian centers and found that the Orange County Fairgrounds Equestrian Center, which is a state -operated facility, is the only one that does not allow dogs on the premises except during shows. FUNDING SOURCE N/A ALTERNATIVE ACTIONS Continue to allow dogs on a six-foot leash at the Huntington Central Park Equestrian Center. ATTACHMENT 1) Management Attorney's Letter of Request 2) City Attorney's May 11, 1988 Response MMB:mb 0706E/42-43 C/) ..JEROME M. BAME ATTORNEY AT LAW 2130 MAIN STREET, SUITE 140 HUNTINGTON BEACH, CALIFORNIA 92648 (714) 960-4329 HAND CARRIED Mr. Paul Cook City Administrator CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 April 11, 198 DH U E f 11 U APR z CITY OF HUNTINGTON BEACH r°MM.INISTRATIYE OFFICE RE: Request that the City of Huntington Beach Rescind General Rule #3 of the Equestrian Center Rules & Regulations Dear Mr. Cook: This letter is written on behalf of our client, Huntington Central Park Equestrian Center ("Equestrian Center"), and is in regard to General Rule #3 of the Equestrian Center Rules and Regulations, which was adopted by the City Council on March 7, 1988, which states, to -wit: "Dogs must be on a six-foot leash." A copy of the Minutes of the March 7, 1988 City Council meeting pertaining to that particular Agenda Item and Rule is attached hereto for your reference. By this letter, our client requests that the City Council recon- sider said General Rule #3 within the next thirty (30) days, and take action to rescind said General Rule #3. It is a generally accepted maxim among "horse people" that "dogs and horses don't mix!" Our client indicates that there has been at least one noted incident at the Equestrian Center in which a dog caused a horse to bolt, resulting in its young rider being ejected from the saddle. In the experienced opinion of the Manage- ment of the Equestrian Center, the presence of dogs on the premises of the Equestrian Center is a menace to the patrons and horses of the Equestrian Center, regardless of the length of the leash. Management of the Equestrian Center is making this request in accordance with Item IV.R. (OPERATING RESPONSIBILITIES, Safety) of the Concession Agreement for the Equestrian Center, which states, in part, as follows: "CONCESSIONAIRE shall correct safety deficiencies... of safety practices immediately —occurring on the premises...." If, in the event, the City Council should fail or refuse to take this action as requested herein, please be advised that our client nl Mr. Paul Cook April 11, 1988 Page 2 will, pursuant to Item II.A. (CONCESSION GRANTED, Authorized Services) of said Concession Agreement which grants CONCESSION- AIRE the exclusive right to maintain and operate the services and facilities at the Equestrian Center, avail itself of all appropriate legal remedies necessary to enjoin the City's enforce- ment of said General Rule #3 so as to prevent potential impending injuries at the Equestrian Center. We are hopeful that your good office and the City Council will favorably consider and take the action herein requested, bearing in mind the best interests of the patrons, horses and general public utilizing the facilities at the Equestrian Center. Thank you. Very truly yours, JEROME M. BAME JMB:mgw Attachment xc: Mr. Max Bowman, Director Community Services Dept. CITY OF HUNTINGTON BEACH Page 5 - Council/Agen Minutes - 3/7/88 The Deputy City Clerk presented a communication from the Director of Commun- ity Services regarding the Huntington Central Park Equestrian Center Rules and Committee formulation. Councilwoman Winchell stated that it was the intent of the Equestrian Ad Hoc Committee that Equestrian Management and members of the Community Services Department would be non -voting members of the proposed Equestrian Center Com- mittee. A motion was made by Winchell, seconded by Mays, to approve that Equestrian Center Rules and Regulations General Rule #3, "Dogs must be on a six-foot leash", is to be administered based on S. 7.04.010 of the Huntington Beach Municipal Code, which adopts the Orange County ordinances regarding animal control (Article 2, Section 4-1-45). The motion carried by the following roll call vote: AYES: Green, Finley, Mays, Winchell, Bannister I NOES: Kelly, Erskine ABSENT: None CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION HUNTINGTON BEACH MAX BOWMAN From GAIL HUTTON To Director of Community Services City Attorney Subject Control of Dogs at the Date May 11, 1988 Equestrian Center Question: Does the dog leash rule expose the City to liability? Answer: . The approval of a decision to ban dogs from the Equestrian Center or to require a six foot leash is one that may be exercised by the City pursuant to its approval authority. (see previous opinions regarding rules) If there are sufficient facts brought to the attention of the Equestrian Center Management, the rule makers, to support the conclusion that the presence of -dogs presents an unreasonable risk of harm to the users of the Equestrian Center and the City refuses to approve the ban, such approval refusal may give rise to liability on the part of the City. However, to impose City liability, there must be a showing that the facts lead to the conclusion that dogs even on leashes are a danger. The "one incident" in Mr. Bame's letter of April 11, 1988 may or may not support such a conclusion as to impose liability since no mention is made with respect to whether the dog was on a leash. Conclusion: We recommend that the Community Services Director investigate the issue of dogs at the Equestrian Center and report back to the City Council with facts so that an approval or non -approval can be made on such issue. If dogs, even on leashes are a danger, then they should be banned from the Center. Additionally, unreasonable interferences in safety rules by the City may give rise to City liability if it conflicts with.the rights to day to day management by the Concessionaire. Recommendation: Ongoing day to day City involvement over every little rule is inappropriate for City property owned in a proprietary capacity. The Community Services Director should explore a renegotiated agreement with the Equestrian Center where the City is not directly involved in the daily management of Equestrian Center safety and management matters. Reference to the Meadowlark Golf Course Agreement would assist in this regard. 42 L, �� dt " ('�_ GAIL HUTTON, City Attorney /cb cc: Councilperson Winchell Councilperson Finley Paul Cook Jim Engle r � CITY OF HUNTINGTON BEACH / LOLV INTER -DEPARTMENT CO;MUNICAT'ON HUNTINGTON BEACH To Department Heads ax Bowman Director, Community Services Subject National Equestrian Centers, Inc. Date May 26, 1988 The operating agreement with National Equestrian Centers, Inc. includes a provision that at the conclusion of the fifth year of operation and every five years thereafter, the city will perform a detailed analysis of the performance and financial status of the concession. The fifth year of the Huntington Central Park Equestrian Center has come to a close and we are now seeking any amendments which the departments feel should be made to the operating agreement. Please submit any items for considera- tion to me by June 20, 1988, or call me if you have any questions on this matter. MMB:cs cc: Paul E. Cook, City Administrator Jim B. Engle, Superintendent CITY OF HUNTINGTON BEACH 2000 MAIN STREET COMMUNITY SERVICES DEPARTMENT Melvin M. Bowman, Director 1714) 536-5486 May 24, 1988 Ms Mary Harris 18381 Goldenwest Street Huntington Beach, CA 92648 Dear Mary: Re: Insurance CALIFORNIA 92648 Please be advised that both the general liability and workers' compensation insurance have expired for the equestrian center. Your agreement with `the city re- quires National Equestrian Centers, Inc. to carry this type of insurance at all times. Recently, the City Council enacted a resolution increas- ing the insurance liability limits for lessees to $1 million per occurrence, $2 million aggregate. Please inform your insurance company of these new requirements and ask them to transmit evidence of your coverage to this office as soon as possible. Thank you for your continued cooperation. Sincerely, MELVIN M. BOWMAN Director Community Services MMB:cs cc: City Clerk's Office Insurance and Benefits Office Jim B. Engle, Superintendent REQUL,jT FOR CITY COUNI„L. ACTION Date Submitted to: Honorable Mayor and City Council Submitted by: Paul E. Cook, City Administrator e� Prepared by: Melvin M. Bowman, Director, Community Service February 19, 1988 �3y&1111"Y CQLT`;C[L 2� Subject: HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER RULES AND COMMITTEE FORMULATION Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE There is a need to define the rule that dogs must be on a six-foot leash at the Equestrian Center and to redefine the makeup of the Equestrian Center Committee as delineated in the grievance procedure. RECOMMENDATIONS 1. Equestrian Center Rules and Regulations General Rule #3, "Dogs must be on a six-fcot leash", is to be administered based on Chapter 7.04,010 of the Huntington Beach Municipal Code, which adopts the Orange County, ordinances regarding animal control (Article 2, Section 4-1-45). �� ,�cr / s-_ a 2. Modify the boarders representation section of the Equestrian Center Committee utilizing one representative for up to twenty boarders in a given cluster of stalls and a second representative for clusters that contain up to forty . boarders ANALYSIS To insure that there is no misunderstanding about the Equestrian' Center General Rule #3, "Dogs must be on a six-foot leash", the rule will be interpreted based on the municipal code and Orange County ordinances that relate to animal control. The ordinance states, "No person owning or having charge, care, custody, or control of any dog shall cause or permit, either willfully or through failure to exercise due care or control, any such dog to be upon any public property unless such dog be restrained by a substantial chain or leash not exceeding six feet in length, and is under the charge of a person competent to exercise care, custody, and control over such dog...." This will also provide for consistency regarding enforcement throughout the park system. I0 00060P P!O 5/85 1REOUEST FOR CITY COUNCI' "TION EQUESTRIAN CENTER RULES „Z COMMITTEE FORMULATION PAGE TWO The grievance procedure previously approved by City Council calls for a representative for each barn or row of paddocks. A barn has up to forty stalls, while a paddock has only twenty stalls. To ensure more equitable representation, it is being recommended that one representative will be chosen by the boarders for stalls number 1 thru 20 and a second representative wi l l be selected by the boarders for stalls from number 21 up to number 40 in any given barn. This will still allow an individual to where his or her horse resides, whether But, it will also tie representation to every twenty horse stalls. FUNDING SOURCE None ALTERNATIVE ACTION be represented in a section of stalls it be in a barn or a row of paddocks. approximately one committee member for Continue to use the existing grievance procedure ruling which calls for one representative for each barn or row of paddocks. ATTACHMENT None MMB:mb 0706E/66-67 I� HUNTINGTON BEACH CITY OF HUNTINGTON BEACH REQUEST FOR LEGAL SERVICES White City Attorney Canary City Clerk Pink City Administrator Goldenrod Departmental Date Request Made By Department 11/24/87 Max Bowman Community Services INSTRUCTIONS: File request in the City Attorney's Office as soon as possible. Print or type facts necessary for City Attorney. Out- line briefly reasons for the request. Attach all information and exhibits pertinent to the subject. Type of Legal Service Requested: [ ] Ordinance [ ] Insurance [x] Other Annrnval of rules/rPanlafi�na [ ] Resolution [ ] Bonds for equestrian center (] Contract/Agreement ( I Opinion All exhibits must be attached, or this request will be returned to you. (] Exhibits Attached HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER Please approve the attached list of rules and regulations formulated by the City Council Ad Hoc Committee on the equestrian center for implementation at that facility. Art De La Loza has been assigned this project as part of the equestrian center committee. If for Council Action, If not for Council action, desired completion date Signature: Agenda deadline Council meeting DEC 30 1987 PIO 12/79 Iilie HUNTINGTON BEACH CITY OF HUNTINGTON BEACH REQUEST FOR LEGAL SERVICES JW White City Attorney Canary City Clerk Pink City Administrator Goldenrod Departmental Date 11 . Request Made By Department Max Bowman I Community Services INSTRUCTIONS: File request in the City Attorney's Office as soon as possible. Print or type facts necessary for City Attorney. Out- line briefly reasons for the request. Attach all information and exhibits pertinent to the subject. Type of Legal Service Requested: [ 1 'Ordinance [ ] Insurance [ Other Legal Action [ l Resolution [ ] Bonds [ ] Contract/Agreement [ j Opinion All exhibits must be attached, or this request will be returned to you. [ ] Exhibits Attached Take action to obtain financial statements from Better Built Enterprises for the four years of operating the Huntington Central Park Equestrian Center, specifically, from October, 1982 to October, 1986. The lease agreement with Better Built Enterprises requires the concessionaire to transtait a profit and loss statement and a balance sheet for the ' operation each of the fiscal or calendar years during the term of the agreement. This statement and balance sheet has never been submitted to the city during the period stated above. In October of 1986, the concessionaire assigned his rights to National Equestrian Centers, Inc., of which concessionaire is half owner., We have tried to obtain the financial statements by letter requests to no avail. Please contact Max Bowman if you need any further informa- tion. If for Council Action, If not for Council action, desired completion date .Signature: Agenda deadline Council meeting Dec. 18, 1987 �n PIO 12f79 Good evening members of the City Council, My name is BETH SHAFER and I live at 8166 Bushwick Drive, Huntington Beach, California. I am here tonight expressing EQUESTRIAN CENTER CONCERNS that are shared by several boarders at the HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER. Because the CITY has been made aware of our concerns regarding the Water Retention Basin, Faithful Performance Bonds, insurance coverage and timely submital of landscaping and lightning plans, I will not address these issues this evening. I would like to briefly outline areas in the Concessionaire's contract with the CITY OF HUNTINGTON BEACH, which I shall refer from now on as the CITY. The contract states the purpose of the concession: CONCES3I01V AGREEMENT N,U1V7-ING7-0N CEIV7-914L PARk' EgUE r,2I111V C` IV TE,4 . Page .1. Section II . A . t= i r- t "CONCES S IONAI,4E shall be gr-anted the e.xcl u i ti e ri,gh t t0 c.7`e .1 gn, 00175 tr-uc t, ma.i n ta.z n, and on era to the following set -vices and facilities at the pt—awi se: for the amusement and pleasure of the ganeral publ i c more fully de cr-i bed in vat-1 our Sections of this Agr-eement.- " We would appreciate the interpretation of the CITY as WHO IS the GENERAL PUBLIC? ANY INDIVIDUAL, THE BOARDERS, or ONLY BOARDERS WHO ARE IN FULL TRAINING with DESIGNATED TRAINERS by the CENTER. We would like to ask the CITY to interpret what RENTAL SERVICE means: CONCESSION ftG,4EEMENT Hl ,'NTING FON CENT,414L I'N,41V CENTE,4. Rage 1. Section II. 14. : 2 . y0 rs e rental s o r r1 G , . Nt least 20 %7 G --e- !11 u.it be available for r-ental within nl0r7ti7s of e,x,ecu t ion of this 14gr-eemen t . - Was the intent of the CITY when it said RENTAL to mean HOURLY? Was the intent of the CITY to have horses available to be RENTED by the HOUR or be LEASED by the MONTH? 1 EQUESTRIAN CENTER CONCERNED BOARDERS Training Ring: CONCESSION AGREEI'7ENT HUNTINGTON CE,^I r',YqL PA,4ti CENTE,4. l�age 1. Section II. A. 4 11,4 . Tt-ua .2 l71 ng t-i 17g, Open ; "or �( b 11 C• ex•ce,n t that CONCESSIONAIRE may r-es tt-i c• t i is use on an), day tha t he t-egUi r-es it 'for a show or a eL'e17 r. . CONCESSIONAI,4E may also prohi .bi t use o :F the training ring by those pet -sons cvho, in his expat-r_ iudgmen t, of tet- obset-v'i ng thei t- ri cYi ng skills, :,'o not possess horsemanship ability of a deg"-ee sufficient to insure their safe use of the ri n' 7 and their equipment therein. " As of this date there is no TRAINING RING available to the PUBLIC. To be able to use the THREE UPPER ARENAS, a boarder MUST BE IN FULL TRAINING WITH ONE OF TWO ENGLISH TRAINERS, regardless of riding ability. THE OTHER TRAINERS AT THE FACILITY DO NOT QUALIFY TO RIDE THE UPPER THREE ARENAS. Under the CENTER'S current policy if you are a boarder you can only ride in ONLY ONE OF THE SAND ARENAS regardless of your riding ability and style. The Center shall replace wet sawdust or straw from the paddocks and keep the horse manure out of sight in a container. CO3'V0ES5I0N htG,Y %ENT HUNTINGTO,NC`;'VTR,,L CENTE,4. Page J. Section IV. A. Star-t1 n<7 wit/7 the third paragraph,, second sentence. "CONCESSIONAIRE will also Clean all tails and paddocks on a daily basis, t-emvvz ng all manut-e and r-epl aci ng 4ve t sacvdus t or s tracv. , Manure cvi l 1 .be kept in a manut-e compounc-, dums ter trash Con tai net- or similar device �vhi ch shall be located so as to - ,Cv-even t o l foosi va odot and 1 n: �eC,• t._> ft c'w bo thet 1 17<5" Pa trons. " IN THE PADDOCKS THE WET SAWDUST HAVE NEVER BEEN REPLACED BY THE CONCESSIONAIRE. Is it the intent of the contract to have the CONCESSIONAIRE REMOVE AND REPLACE WET SAWDUST IN THE PADDOCKS? Paddock patrons have been replacing the sawdust at their own expense. IF THE CITY'S INTENT IS FOR THE CENTER TO REPLACE THE SAWDUST, ARE THE PADDOCK PATRONS ENTITLED TO A REIMBURSEMENT? We would like the CITY to interpret the contract and determine if an OPEN -PILE of MANURE NEXT to the PADDOCK WASH -RACKS, LESSON -HORSE -ARENA and TRAIL leading to and from the facility is considered THE PROPER STORAGE? E EQUESTRIAN CENTER CONCERNED BOARDERS Conduct of the Operator and his personnel: C0A10ESSI01V AGREEMENT HUNTINGTQN CEN7-,414L FARA' EIJUEST,41'141\1 CENTER. Page 4. Section IV. S. 11 CONCESSIONAI,4E shall at all times conduct bu_•iness, in a quiet and orderly manner to the reasonable satisfaction of the Director. " C0/VCE5 S ICON AGREEMENT HUNTING TCIV CENTR14L P14RA' E0CJES T,4I11N CENTE,4. 1-'age 4. Section IV.C. CONCESSIONAI,4E shall use his best efforts to per-mi t no i n to.vi ca ted person or persons,' profane or indecent language, or .boisterous,, or loud conduct in or a.00ut the premises ancy will call upon the aid of peace officers to assist in inain tai ni ng, peaceful concyi ti cns. ... " Is it the intent of the CITY that BOARDERS and PUBLIC SHALL BE TREATED IN A RESPECTFUL MANNER AND NOT IN LOUD AND IMPROPER LANGUAGE? Center's personnel identification: CONCESSION AGREEMENT HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER. Page 4. Section IV.D. Starting with the foUth paragraph. "Every employee shall wear a bacyge or patch indicating his name or employee number, and every employee not di rectl y i nvol ved in animal maintenance shall also wear a Clean uniform of a type approvecy by the Director. CONCESSIONAIRE shall provsde all uni for-rns. " We are asking that the CITY interpret this paragraph as none of the employees wear uniforms, badges or patches. We have no way of knowing who are employees, and if they are supposed to be in the horse stalls. 3 EQUESTRIAN CENTER CONCERNED BOARDERS Rental Price: CONCESSIO,'V AG,4EEP9t N T NJN T ING TON N T,4 �tL i�F ,�?ti' CENTE,4. Page S. Section I(i. L . Fit- t parag•raph.• "A11 rates for set -vices and met-chandi e chargocl by C01VCE5^IONNI,4E shall be uniform at all timer and seasons anC7` Subject to the appr-oval OF the CITY". Tl7e standat-d used to approve o;- _c-li appt-ove 1. i-,2 cos :hall be the prevailing market pt-.ice for t17e game gt-aa7-- of met-chanda e anc` sal -vices. Council members have been provided with a comparison of 18 stables in Orange County. How was the prevailing market price arrived at for OUR CURRENT PRICE? This is a beautiful facility, however, when comparing facilities we request that also be taken in consideration the facilities that the boarders may use. Most of the stables provide more facilities for the boarders -at a lower price as the comparison list shows. Rental changes: CONCESSION AG,4EE/7EN7- HUNTINGTON CE17-/Ze4L PA,9K LOL'EO7I91 # V C,~ENTE,4. Page S. Section IV. L . Second paragraph: „As SOO/7 as po:J.Ji.b1 e a f ter he as been 17o tz fi e(y tha t his proposal has been Se1eCted, C0N0E55I0NAI,9, hall eub777i t to CITY' for its appt-01.,al a 1 i t• o c 'r Gem °or all me1-017al7di O,, foods and ,beverage to be zol d Or rented` and the quality 3nav quantity of �'aGl7, a17c7 3 list of the pt-i Ces to be char yea fot a l 1 per v3 Gee of et ec7. He shall t—asu.bm t o OOmpl e to list at beg't /7/7d l7g Of each Cal ene-Yar- year undet- the 1"at-177 of rh;.s:. ,agreement,, together kv th a/73/ t-equ,e t•ed G•hanre , CONCESSIONAI,4E shall be nv ti fi ea` i /7 wr-i tl /7zy 0 CITY' approval or disapproval and CITY t-oserves the tight to revoke i ts appt-oval of any 1 i tec7 pri ce when i t appears that the price is above the pt-evaz 1.z ng mat-ket pt-.a oe rot- the same gracYe Of met-Ghandi e. vat-Za tl ons Ft-0711 the appt-ovee-t ,: f--z C`•e list will .be permitted Only with the pt-iot- apnr-Os a1 o'f CITY' , " Has the CITY EVER APPROVED PRICES FOR BOARDING at the facility? Have the THREE BOARD INCREASES since 1984 BEEN APPROVED IN WRITING BY THE CITY? Have BOARD PRICES BEEN SUBMITTED EACH YEAR? IF NOT, ARE THE BOARDERS ENTITLED TO A REIMBURSEMENT FOR INCREASES NOT SUBMITTED TO OR APPROVED BY THE CITY? 111 EQUESTRIAN CENTER CONCERNED BOARDERS Concessionaire shall post signs ...: CONCE5 51-ON AG,4Et17ENT HUNTING TON CENTPAL PAPA' EOUEO TPIAN CENTE,9. Page 9. Section I1I. L . s to r-ti ng in the 'four-th Para graph (` top of page 9,) CONc,LSSIONAIRE s17a11 post signs aalve-tz ss n<:, the pr-i cos approved .by the CITY. " We have been unable to find any signs advertising prices_ Use of Area: CONCEOS ION AGPEEPfENT HUNTINGTON CENTRAL PA,9h' E0,'E5,T9I1_�N CENTE,9. Section I11. O. " CONCESOIONAI,9E shall not interfere with the pu.bll c 's e/7 70}/t11e/7 t a/Icy Use OF the p,'"et11Z es 0/- sur-rouncyi nC public property for- the put -pose of 4v/7i ch they Gver-e inte""deal. He shall /70t Use the of-e1171 se o/- any/ pul-Pose which is /70t es=•ential t0 the l i ce/7secy opera ti one. He shall not r-en t,, sell, lease or offer- any space for storing of any article or- arti c1 es cvha tsoever- cvi thi n or- on the concessi on premises other than his 04v/7 equipment, cvi thou; t the cvri t ten consent of the Director-_ " Again, we are asking that the CITY interpret this paragraph, as the Concessionaire often denies access to the Center to horseback riders who do not board at the facility. The Concessionaire allows the use of ONE arena to all patrons of the Center (about 231 horses are boarded at the moment). While patrons who sign for full -training with one of the selected English Trainers (at the moment there are about 87 horses in full -training), have the exclusive use of THREE arenas and are allowed to use the remaining arenas (the Center has FIVE arenas, ONE is dedicated to the Equestrian Center's Riding School). We are not allowed to use the race track or any of the facilities adjacent to the Centers offices' which includes the only HOT WALKER of the Center. Ferrari Farms has the exclusive use of the facilities adjacent to the Center office's, which has box stalls, private lounging arenas, the hot walker, plus other amenities. During some English Shows, patrons who do not participate in the show CAN NOT USE ANY ARENA, NOT EVEN RIDE HORSES TO VIEW THE SHOW. We could not find in the City's public records any request from Mr. Milligan to sub -lease some of the facilities for private use by the English Trainers or Ferrari Farms. 5 EQUESTRIAN CENTER CONCERNED BOARDERS Safety: CONCESSION AG,QEEMENT HUNTING TON CZ ,NT,4AL P14,Y;i ST,,?.r4N CENTE,4. Page 10. Section ISi. R. Starting on the 7th line of the paragraph. "if C01VCE SS10NAIRE fails to cot-rec t hav arc o., condi ti one which have 1 ec7 or-, in the opinion of.- tl7e CITYcould 1 eacl to injury, the Di i-oc tor- 1171171v-Q1ately exercise option "d" unde,�- defaul t provi i one (item h' ) of this Ag,-aemen t . Because horses weigh about 1200 pounds, when the animal is hurt there is danger to the rider and/or handler. We would like the CITY to investigate concerns of hazardous conditions and if the CITY agrees that the situations are hazardous, to direct the Concessionaire to immediately correct those problems. Specific concerns have been the upright pole and the broken gate on the lunging arena which had been in .that condition for almost a year, the washrack drains which are made of plastic and break under the weight of the horses leaving a hole large enough for a foot, human or equine, to step through and the speed at which golfcarts and tractors are driven through the facility spooking the horses and endangering the riders. Permanent Improvements Required During First Year, riding arenas: CONCESSION AG,4EENENT HUNTINGTON CENT,414L PARK CENTE,4. Page 1 J. Section VII. A. 1 ".b? Two ( C) riding r-i ngs . " For whose use? How does the CITY interpret the use of the two arenas? Permanent Improvements Required During First Year, Riding academy facilities: CONCESSION 14G,4EE1,7ENT HUNTINGTON CENT,4I-�L PA,YA f9UE5 T!?IAN CEN1 E,?. Page 13. Section i/II. A.2 "c) One (I) ) cvai ti ng area and office. d) One (1) arena and viewing sta/7d . Is the Center's main office the same as the riding school office and waiting areas? The main office is at one end of the facility and the riding school is at the other. Where are the viewing stands located? 6 EQUESTRIAN CENTER CONCERNED BOARDERS Permanent Improvements Required During First Year, Other first year improvements include: FENCING. CONCESSION AGREE,"?'ENT HUNTINGTON CEM-RA`L I-714Rh' EOUESTRIAIV CENTER. (Page 14. Section VII. 4.4 c•,} por-.Z me te'r fencing of the entire prel;? ses, We are asking the city to define the fencing necessary. The entire facility does not have fencing. Horses have become loose and run into the streets at Golden West and Ellis. Permanent Improvements Required During First Year, Other first year improvements include: BRAKING PENS. CONCESSION AGREE MEN T HUNTING TON CENTRAL I•PARA' EOUES T,91-InN CENTER. Rage 14. Section VII. A. Second paragroph.- "Each breaking pen shall .be ?" high x 40' di ame for . The waiting area shall contain tables and chairs and i ncl ude 0/7 Office of not lei than 12" \ 1.;: ' wl th s teel fr-amss; lumber- wall inserts and al ul"? num roof. " We would 1 i ke the CITY to point out these items as we were unable to locate them, and if we should find them are we the boarders allowed to use them? Permanent Improvements Required During Fi rs t Year, Other first year improvements include-- OUTDOOR ARENA. CONCESSION AGREEMENT HUNTINGTON CENTRAL (PARR' EOVESTRIAr`I CENTER. !Page 14. Section VII. A. Fourth paragraph: "Ore of the outdoor arenas shall be constructed Of two i 17ch ("2 ") steel post set i /7 0017cre to 3/7d tkVO t S ",j steel rails c i th steel frame and l umt er bleachers. " Again, we have been unable to locate the bleachers on ANY ARENA. 7 EQUESTRIAN CENTER CONCERNED BOARDERS Permanent Improvements Required During First Year, Other first year improvements include: PARKING SPACES_ CONCESSION AGREEMENT HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER. Page 14. Section VII. A. Fifth paragraph "The parking spaces shall be large enough to accommodate car -trailer and camper units with electricity and water hook-up. Designated parking spaces shall be provided for i ndi vi duals who wish to park on the premises and use the CITY's equestrian trails. Overflow parking areas for special events shall be designated by Development Services Department. (City approved fees may be charged. ) " We would like to have pointed out to us the designated parking spaces for rigs with electrical and water hook-ups. Also, what are the city -approved fees? Permanent Improvements Required During First Year, Other first year improvements include: Additional Improvements. CONCESSION AGREEMENT HUNTINGTON CENT,4AL PORK EOUESTRIA/Y CEN7-E,4. 1-'age 14. Section VII. S. "In acidi ti on to the improvements required in Section VII-A above, C01VCESSI0NAI,4E may develop, design and cause to be constructed at his mole e.5,.nense other improvements provided, however, that there 1s Public daInar7d -for Such improvement.`_: and prOLialed further that the Director shall approve each of these improvements before construction ol` same. We would like the CITY to interpret if the additional arenas were built for public demand with the Director's approval, are these arenas for use by the boarders? ASSIGNMENT, SUBLEASE, BANKRUPTCY: CONCESSION AGREEMENT HUNTINGTON CENTRAL PARIi' E�JUEST,4IA.N CENTER. Page 24. Section XI. First paragraph7. "C;C IVCESSIONRIRE shall not underl e t or sublet the subject premises or any part tl7ereo'f or allow the sabre to be used Or occupied by any other person or - for any other use than herein `. pecifiad, 1,or 35s1<.in this Agreement, /7or- transfer, assign ot- in ally IW1717er' conVey any of 'the rights a/7U pr1V1le�:7e therein granted without the wf-ittel7 con_oent or the Cr T y,. 9 EQUESTRIAN CENTER CONCERNED BOARDERS How does the CITY interpret sub -let or conveying rights and privileges? How would the CITY interpret Ferrari Farm's arrangement for the top barn and grass rings? Can anyone rent a boxstall in either of the two english trainers' barns or must they be in full training? Is there a waiting list for those barns? How would the CITY interpret the exclusive use of the front three arenas for by only two english trainers? Since most patrons and the public are not allowed to ride in the racing track, for whose use is it intended for? Thank you for your time and your interpretations and enforcement of this contract between the Concessionaire and the city for the public, who are the third -party beneficiaries to this contract. We also request from the CITY protection against harassments, threatening remarks and eviction from the Facility because of our complaints and concerns. Thank you. Cathy Edmonson 18341 Oxboro Ln. Huntington Beach, CA. 92648 Ruben Loshak 6171 Norbrook Dr. Huntington Beach, CA. 92648 Beth Shafer B1266 Bushwick Dr. Huntington Beach, CA. 92646 Linda Shue 605 11th. Street Huntington Beach, CA. 92648 Vicki Thompson 19846 Waterview Huntington Beach, CA. 92648 Huntington Beach, California, February 2, 1987 ri N CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK November 4,.1986 National Equestrian Center, Inc. 18381 Goldenwest Street Huntington Beach, CA 92647 Attn: Eddie Milligan The City Council of the City of Huntington Beach at its regular meeting held November 3, 1986, approved assignment of an agree- ment for operation of an equestrian center at Huntington Central Park from Better Built Enterprises to National Equestrian Centers, Inc. Enclosed is an executed copy of the agreement for your files. Alicia M. Wentworth City Clerk AMW:bt Enclosure CC: Wayne Lee, Finance Max Bowman, Community Services Director 0. C. Assessor (Telephony:- 714-536-5227) A REQUEL FOR CITY COUNC►__ ACTION Submitted to: The Honorable Mayor and City Council Submitted by: Charles W. Thompson, City Administrator Prepared by: Melvin I.':. Bowman, Director, Community Service Subject: ASSIGN*:TENT OF CONCESSION AGREEMENT - HUNT INGTON CENTRAL PARI EQUESTRIAN CENTER 6" Consistent with Council Policy? N Yes [ ] New Policy or Exception- %� - �-CIS Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE The lessee of the Huntington Central Park Equestrian Center, Better Built Enter- ; 'pr-ises, wishes to assign its lease agreement to National Equestrian Centers, -Inc. RECOMMENDATION Approve the Assignment of Concession Agreement - Huntington Central Park Eques- trian Center and direct the Mayor to execute same. ANALYSIS In October of 1982, the city entered into a 25 year lease agreement with Better Built Enterprises, Inc., P_resident, Ed Milligan,: for F9 .the finance design, construe- , .. _ .. tion, operation and maintenance of an equestrian center in Central Park. Para- graph XI of that agreement gives lessee the right of assignment with written consent of the city, which consent is not to be unreasonably withheld. Mr. Milligan's request to assign his lease is attached. He explains that he is involved in many diverse businesses and wishes to decentralize various sub- sidiaries while improving management personnel. Mr. Milligan will remain as President of the assignee corporation, National Equestrian Centers, Inc., and will retain 50 percent of the corporate stock. FUNDING SOURCE Not applicable. ALTERNATIVE ACTIONS Deny the request for assignment. ATTACHMENTS Assignment of Concession Agreement Milligan's written request MMB:cs PIO 4/84 ASSIGNMENT OF CONCESSION AGREEMENT HUN,T.INGTON' CENTRFzI, _BARK -EQUE,STR-IAN CENTER This Assignment of rights in a Concession Agreement is entered into this day of October, 1986, by and between BETTER BUILT ENTERPRISES, IN , a California corporation, hereinafter called Assignor, a d NATIONAL EQUESTRIAN CENTERS, INC., a California corporatio`R, hereinafter called Assignee. WITNESSETH WHEREAS, Assignor is tNhe concessionaire of Huntington Central Park Equestrian Center, pursaant to that certain "CONCESSION AGREEMENT HUNTINGTON CENTRAL P\RKEUESTRIAN CENTER" dated October 25, 1982, by and between the CHuntington Beach, a municipal corporation of the State of Caia, and Assignor; and WHEREAS, Assignor desiressign to Assignee all of its right, title and interest in and to tie aforementioned Concession Agreement; and WHEREAS, after such assignment, the \stock of Assignee will be owned 50% by Eddie Milligan, 25% by Willar&,V. Harris, Jr., and 25% by Mary Harris; and WHEREAS, the consent of the City of HuntiAgton Beach is required for this Assignment to be effective, NOW THEREFORE, the parties agree as follows: 1. Assignor hereby assigns and transfers to A signee all of its right, title and interest in and to said Concessi0 Agreement. 2. Assignee hereby accepts the assignment of the Concession Agreement and expressly assumes and agrees to keep, perform and fulfill all of the rights, duties, obligations, and liabilities of 1. Assignor thereunder, including the duty to pay all rental and other charge", -,pursuant to said Concession Agreement with city. 3. Assicmee shall construct a retention basin and separation struct re to protect Huntington Lake from siltation and organic contaminati n. Plans for retention basin shall be submitted to the Dir ctor of Public Works for approval. Plans for the separation structu e shall be submitted to the California Regional Water Quality C ntrol Board for approval. Construction of\hd n basin as approved by the city shall be complete with'from the date of this agreement. Construction otion structure as approved by the Regional Board shale within 90 days of this agreement. Assignee shall gstruction of the retention basin and separation structure by posti\aree cash bond prior to the execution and delivery of ent by the city. 4. Assignee further agrees to asfense of any legal action against the city which maym this assignment and to indemnify and hold cifrom and against any loss that may result theref 5. In consideration of this assignment and its approval by city, Assignor and Assignee agree that paragraph XI of the Concession Agreement shall be amended to add thereto a restriction as follows: Any dissolution, merger, consolidation, or other reorganization of concessionaire, or the sale, assignment or other transfer of any stock or interest in the corporation totaling more 2. than 25% of the capital stock or interest of concessionaire, or the sale of 51% of the value of the assets of concessionaire, shall be deemed voluntary assignment. Provided, however, that any transfer of sh es to a shareholder's spouse, children, or grandchildren in a li ng trust or to a testamentary trust caused by the shareholder's dea shall be excepted from this provision. IN WITNESS WHEREOF, th parties hereto have duly executed this Assignment of Concession greement. NATI NAL EQUESTRIAN CENTERS, INC. a CaA&2�� '' ratioa-(Assignee By: .. Title BETTER BUIL ENTERPRISES, INC. a Californi orpoKation (Assignor) inA��& r ✓f By: Title NO FURTHER TEXT ON THIS PAGE 3. CONSENT The City of Huntington Beach does hereby acknowledge that they have read and approved the terms and conditions of the above assignment of the Concession Agreement and consent to the assignment as provided �or in the Clause XI of the original lease. ATTEST: City Clerk REVIEWE ND ... • City AdministfaTor 1659L 10-15-86 4. CITY OF HUNTINGTON BEACH, a municipal corporation or APPROVED AS TO FORM: City Atto ey f� INITIATED AN APPROVED: Director of Community Services r_ CITY OF HUNTINGTON BEACH \� 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK October 27, 1982 Better Built Enterprises, Inc. 345 Walnut Avenue Arcadia, CA. 91006 Attn: Eddie Milligan, President The City Council of the City of Huntington Beach at its adjourned regular meeting held Monday, October 25, 1982 approved a lease agreement with your firm for construction and operation of a twenty-five acre equestrian center at Huntington Central Park. Enclosed is a duly executed copy of said lease agreement.. Alicia M. Wentworth City Clerk AMW:CB:bt Enclosure CC: Jack Walker, 0. C. Assessor's Office ( Telephone: 714-536-5227 ) f�,W CITY so HUNTINGTON ks * • BEACH, ' 2000 MAIN STREET CALIFORNIA 92648 INSURANCE AND BENEFITS DIVISION February 5, 1987 (714)536-5990 Huntington Central Park Equestrian Center 18381 Golden West Huntington Beach, CA. 92648 The enclosed certificate is returned to you for the following reason(s): XX Cancellation clause must be amended as follows: SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ¢yI¢T' �/ MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER. XX— Proof of worker's compensation coverage has not been provided or present coverage has -lapsed. NO CERTIFICATE OF INSURANCE WILL BE APPROVED UNTIL EVIDENCE OF WORKERS' COMPENSATION COVERAGE IS FUR- NISHED, OR A CERTIFICATE OF CONSENT TO SELF -INSURE ISSUED BY THE CALIFORNIA DIRECTOR OF INDUSTRIAL RELATIONS. EXPIRED ON 1/1/87 XX Certificate does not provide at least $1,000,000 CSL coverage. Certificate is not signed by authorized agent. The additional insured endorsement is unacceptable to the city (city contracts only). Such endorsements serve no useful purpose for per- sons performing work in the private sector. Certificates required for ENROACHMENT PERMITS must furnish general liability coverage, workers' compensation coverage, name the city as an additional insured, and contain a hold harmless clause ap- proved by the city. City consultant contractors shall include professional liability or errors and omissions coverage. All certificates shall name the CITY OF HUNTINGTON BEACH as certifi- cate holder. Please do not name individuals or departments. We have no address for your insurance agent. Please forward the enclosed papers to him for correction at your earliest convenience for return to the Division of Insurance and Benefits. If we may be of further assistance, please call. CITY OF HUNTINGTON BEACH NOTE: PLEASE REFER TO THE LETTER SENT TO BETTER BUILT ENTERPRISES, INC. FROM THE CITY ATTORNEY OFFICE DATED 1/27/87. ALSO THE INSURED IS NOT IN THE BY,_ IL l;\ ' r`" �� ) NAME OF THE LESSEE, BETTER BUILT ENTERPRISES, INC'. THANK YOU, STATE P.O. BOX 807, SAN FRANCISCO, CALIFORNIA 94101 COMPENSATION t I INSURANCE [ FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE /�- FEB 05, 1987 POLICY NUMBER: 03641 99-87 CERTIFICATE EXPIRES: 01 -01 --88 CITY OF HUNTINGTON BEACH DEPT OF BLDG & SAFETY CITY ATTORNEY`-S OFFICE GALE HUTTON 1 2000 MAIN ST V "y HUNTINGTON BEACH, CA 92648 L This is to certify that we have issued a valid Workers' Compensation insurance policy in, --fofm,aii roved by the California Insurance Commissioner to the employer named below for the policy period indicated. '' This policy is not subject to cancellation by the Fund except uponA rdays' advance written notice to the employer. 30 We will also give you TM days' advance notice should. this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate of insurance 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. "ENDORSEMENT NO. 0015 ENTITLED ADDITIONAL,INSURED PLOYE PRESIDENT CITY OF HUNTINGTON BEACH EFFECTIVE FEB 05; 1987 IS ED TO AND FORMS A PART OF THIS POLICY." F EMPLOYER BETTER BUILT ENTERPRISES INC. 345 WALNUT AVE ARCADIA CA 91006 L SCIF 10262 (REV. 10-861 OLD 262A e tY �y. ' �i4' k • i .(., . bk ,g ,,, G.� yi.*1 4 - ' b s +�r "$',� • e," '�, "�,t54v'.' ,d ISSUE DATE (MM/DD/YY)' Fay, 4 a�Pk. } 4.. .`�• -�. N++ ^r / h �'' 18/ 8 7- e a a 4 f PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, CORROON &BLACK INS. SERVICES EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. P.O. Box 90190 COMPAMES AFFORDING COVERAGE Pasadena, California 91109.0190 (818) 796 - 3888 (213) 681. 0400 COMPANY .A (L O N D O N & A M E R I C A N) ; LETTER zx COMPANY LETTER R INSURED D. HUNTINGTON CENTRAL PARK EQUESTRIAN 18381 GOLDEN WEST COMPANY LETTER: 0y HUNTINGTON BEACH, CA 92648 COMPANY LETTER � 0 .nf�'•Z , `s��'� COMPANY�j-•a f a= �-t i, LETTER v RJ •,rY THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY «, BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI- TIONS OF SUCH POLICIES. !k CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MWODNY) POLICY EXPIRATION DATE (MWDD/YY) LIABILITY LIMITS IN THOUSANDS EACH OCCURRENCE AGGREGATE GENERAL LIABILITY BODILY x A COMPREHENSIVE FORM PREMISES/OPERATIONS UNDERGROUND EXPLOSION & COLLAPSE HAZARD 802001513 1 1 / 15 / 8 6 11 / 15 / 8 7 INJURY $ $ PROPERTY DAMAGE $ $ PRODUCTSICOMPLETED OPERATIONS CONTRACTUAL 81 & PO COMBINED $ 5 0 0,$ 500, INDEPENDENT CONTRACTORS BROAD FORM PROPERTY DAMAGE PERSONAL INJURY PERSONAL INJURY $ 500, Extended Liabilit AUTOMOBILE LIABILITY BODILY ANY AUTO INJURY (PER (PER PERSON) ALL OWNED AUTOS (PRIV. PASS.) BODILY ALL OWNED AUTOS OTHER THAN I PRIV. PASS. INJURY(PER ACCIDENT) $ PROPERTY DAMAGE $ HIRED AUTOS NON -OWNED AUTOS GARAGE LIABILITY Ell & PD COMBINED $ EXCESS LIABILITY UMBRELLA FORM BI & PD COMBINED @ ,P $ OTHER THAN UMBRELLA FORM WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY STATUTORY $ (EACH ACCIDENT) $ (DISEASE -POLICY LIMIT) $ (DISEASE -EACH EMPLOYEE) OTHER CORROON & BLACK INSURANCE SERVICES 70 South Lake Avenue • P.O. Box 90190 Pasadena, California 91109-0190 (818) 796-3888 • (213) 681-0400 Telex: 9105883784 ANSWERBACK CORBLACK PSD TO: CITY OF H•UNTINGTON BEACH 1/16/87 �n C&B FORM 15 (4/86) Re:HUNTINGTON CENTRAL PARK EQUESTRIAN Enclosed are Certificates of Insurance in connec- tion with the above Insured, as follows: SEE ATTACHED. If you have any questions, please give us a call. Yours very truly, VERONICA CHANG,?eaa CORROON & BLACK INSURANCE SERVICES t CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK March 10, 1989 Real Property Department Orange County Assessor's Office P. 0. Box 149 Santa Ana, CA 92702 Attn: Jack Walker. CALIFORNIA 92648 Enclosed is a copy of the City Council action transferring 50% interest in the National Equestrian Center which is city owned property to Williard and Mary Harris. This was previously owned by Eddie Milligan. Connie Brockway City Clerk CB:bt Enc. ( Telephone: 714-536-5227 ) Y OFFICE OF CITY ATTORNEY P. O. BOX 2740 2000 MAIN STREET HUNTINGTON BEACH CALIFORNIA 92647 GAIL HUTTON TELEPHONE City Attorney (714) 536.6555 January 27, 1987 Better Built Enterprises, Inc. 345 Walnut Avenue Arcadia, California 91006 Re: Insurance Certificate Gentlemen: The attached is not acceptable for the following reasons: / 1. Not in the name of lessee, Better Built Enterprises, Inc. 2. $1,000,000 required. 3. Cancellation clause needs amendment, per attached Exhibit A. 4. The insurance requirements specified on the attached Exhibit B have not been met. Very truly yours, GAIL HUTTON City Attorney By C" ARTHUR DE LA LOZA Deputy City Attorney ADL:ps Enclosures cc: Risk Management CORRO.ON & BLACK INS. SERVICES P.O. Box 90190 Pasadena, California 91109.0190 (818) 796.3888 (213) 681.0400 HUNTIN= CE_ iP,7 18381 GOLDEN I -EST HT ---i TNGP(NJ BEACH Qi 92648 1/8/37 7; T 71 1 C D ?: 7 U T HC_'7'Fr7 T!;!, AFFORDiNG C 0 V F R "t"SEH CHICAGO INSURANCE CQ.'-1P:%_',-_Y 77 7• ', T ':AY A X 802001513 11/15/86 11/15/87 X X X 500, 500, X 500, aria' y S Z -.7 XccSs -!flu;,-!-Y COMB Z" WORKERS' COMPENSATION AND EMPLOYERS' LIA611-7Y (Z 10: 1232 'UNTINUD""... EE.T�CTHI C.A. (:_,DD:7'TO:J,U is SOP 7 7 •6"Foi, 7Hr C��- ANY Z�;! THE A[3-"V--' 0 PIR�,71 34TE TH__OzH ISSUI? C; N" AVG P. 70 C) 0 0 V S77,7;:-7 30 TO T�ir 70 r� YIR;77� j,' 7 V 92648 :7 7 A r! v v :� PRODUCER r CORROON & BLA'CK ,INS.,SERVICES P;O.,Box 90196 Pasadena, California 91109-0190 (818) 796-3888 (21`3)-6&1-0400 c INSURED HUNTINGTON CENTRAL PARK EQUESTRIAN 18381 GOLDEN WEST HUNTINGTON BEACH, CA. 92648 v v v v v v y� @197 Vag @�W@a4 ISSUE DATE (MM/DD/YY) J r-- 5/7/86 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EMEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPANY A LETTER CHICAGO INSURANCE COMPANY LETTER COMPANY 93 RgTTERNY COMPANY LETTER COMPANY LETTER THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REOUIREMENT, TERRA 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 CONDI- TIONS OF SUCH POLICIES. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MMADDNY) POLICY EXPIRATION DATE (MM/DD/YY) LIABILITY LIMITS IN THOUSANDS EACH OCCURRENCE AGGREGATE A GENERAL LIABILITY COMPREHENSIVE FORM 80 0133961 11/15/85 11/15/86 BODILY INJURY 1 ,P $ X PROPERTY DAMAGE $ $ PREMISESIOPERATIONS UNDERGROUND EXPLOSION & COLLAPSE HAZARD X PRODUCTSICOMPLETED OPERATIONS CONTRACTUAL INDEPENDENT CONTRACTORS COMBINED $ 500, $500, X BROAD FORM PROPERTY DAMAGE X PERSONAL INJURY PERSONAL INJURY $ 500, AUTOMOBILE LIABILITY ANY AUTO BODILY INJURY (PER PERSON) $ ALL OWNED AUTOS (PRIV. PASS.) BODILY ALL OWNED AUTOS (OTHER THAN PASS. PRIV.HIRED INJURY (PER ACCIDENT) $ AUTOS NON -OWNED AUTOS APPROVED AS TO FURN., PROPERTY DAMAGE $ GARAGE LIABILITY / A/ BI &PD COMBINED $ EXCESS LIABILITY " UMBRELLA FORM 3T BI & PD COMBINED $ $ OTHER THAN UMBRELLA FORM WORKERS' COMPENSATION AND EMPLOYERS"LIABILITY STATUTORY $ (EACH ACCIDENT) $ (DISEASE -POLICY LIMIT) $ (DISEASE -EACH EMPLOYEE) OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS LOCATION — 18381 GOLDENWEST, HUNTINGTON BEACH, CA. ADDITIONAL INSURED IS LESSOR. HU1J1111J1VH l , 11V5UJ:CCdJ ; CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA. 92648 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX- PIRATION DATE THEREOF, THE ISSUING COMPANY WILL HiNNNSBE M' MAIL i() DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE AUfhfRIZED REPR SENTATIVE d, 0.aQrf1`wG�,. nr. z�3 E,, rk�X#Ni 6 STATE P.O. BOX 807, SAN FRANCISCO, CALIFORNIA 94101 COMPENSATION JANUARY 30, 1986 INSURANCE FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE POLICY NUMBER: 364199-86 CERTIFICATE EXPIRES: 1-1-87 CITY OF HUNTINGTON BEACH DEPT OF BLDG & SAFETY P.O. BOX 190 HUNTINGTON BEACH, CA 92648 L This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon ten days' advance written notice to the employer. We will also give you TEN days' advance notice should this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate of insurance 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. 1—I—$6/1-1-87 �-��'� RESIDENT APPROVED AS TO FORM: GAIL H11TTON C jrr\�� By: Deputy City At$orfi@V EMPLOYER BETTER BUILT ENTERPRISES, INC. 345 WALNUT AVE. ARCADIA, CA 91006, L SCIF 10262 (REV. 8-84) OLD 262A ".4 'Rofte-n Original and Copy completed certificate to: City of Huntington Beach City Attorney P. O. Box 190 Huntington Beach, CA 92648 5 -fh F_/CA Cry i ERTIFICATE OF INSURANCE o TO CITY OF HUNTINGTON BEACH, CALIFORNIA Approved as to Form: Gail Hutton, City At rney By. Copy to Risk Manager after approval A MUNICIPAL CORPORATION This is to certify that the policies of insurance as described below have been issued to the insured by the undersigV,d and are in force at this time. It these policies are cancelled or changed in such a manner that will affect this certificate, the insurance company agrees to give 10 days prior written notice, by mail, to City of Huntington Beach P. O. Box 711, Huntington Beach, California 92648. ALL ITEMS MUST BE COMPLETED, ANY DELETION OR CHANGE IN THIS FORM SHALL BE SIGNED AND DATED BY AN AUTHORIZED REPRESENTATIVE OF THE INSURANCE COMPANY AND MUST BE APPROVED IN WRITING BY THE CITY ATTORNEY. Name of Insured HUNTINGTON CENTRAL PARK .�EOUESTRIAN CENTER Address of Insured 18381 Goldenwest , Huntington Beach Location of Work or Operations to be performed Same Description of Work or Operations Equestrian Center POLICY DATES LIMITS OF LIABILITY NAME OF COMPANY Effective Expiration , POLICIES IN FORCE POLICY NO. In.Thousands (000) ( INS.) GENERAL LIABILITY L I COMPREHENSIVE FORM $ CSL Each Occurance I I PREMISES - OPERATIONS I I EXPLOSION AND COLLAPSE HAZARD I I UNDERGROUND HAZARD I I PRODUCTS COMPLETED OPERATIONS HAZARD I I CONTRACTUAL INSURANCE I I BROAD FORM PROPERTY DAMAGE I J INDEPENDENT CONTRACTORS I J PERSONAL INJURY AUTOMOBILE LIABILITY I I COMPREHENSIVE FORM I I OWNED $ CSL Each Occurance I I HIRED I I NON -OWNED EXCESS LIABILITY I I UMBRELLA FORM I I OTHER THAN $ UMBRELLA FORM WORKERS' COMPENSATION and EMPLOYERS' LIABILITY Additional Insured Endorsement: The insurer agrees that the City of Huntington Beach and its City Council, and/or all City Council appointed groups, committees, commissions, boards and any other City Council appointed body, and/or elective and appointive officers, servants or employees of the City of Huntington Beach, when acting as such are additional insureds hereunder, for the acts of the insured, and such insurance shall be primary to any insurance of the City of Huntington Beach, as their interest may appear. Date INSURANCE COMPANY _ Name Address City AUTHORIZED REPRESENTATIVE OF INSURANCE COMPANY Address Tole HOLD HARMLESS AGREEMENT (to be executed by insured) The insured " Ed Milligan protect, to agrees , defend, indemnify, g p save, and hold harmless the City of Huntington Beach its officers, agents, and employees against any liability, loss, damage, cost, or expense by reason of any and all liability, suits, claims, demands, judgments and causes of action caused by insured, his employees, agents or any subcontractor or by any third party arising out of or in consequence of the performance of all or any operations or activity for which this ce 'ficate of (insurance is furnished. " (1) Sole'Proprietorship (2) Partnership (3) Corporation (4) Other (st to) HOLD HARMLESS SIGNED: By Insured: Title ICJ A (All names shall be printed Better Built nterprises, Edd'e ligan, Pres. P typed By Insured: Title below each signature.) If Corporation, TWO Officers must sign, or present evidence of authorization to bind Corporation. �I % ROWAN—WILSON INSURANCE SERVICES e ENDORSEMENT This endorsement, effective 9-29-82 M. forms a part of policy No. PRO 262 21 93 issued to BETTER BUILT ENTERPRISES, INC. by GR9AT AMERICAN IT IS HEREBY AGREED TO ADD THE FOLLOWING AS ADDITIONAL INSURED: PAUL E. COOK — DIRECTOR OF PUBLIC WORKS CITY OF HUNTINGTON BEACH 200 MAIN STREET t HUNTINGTON BEACH, CA 92648 REGARDING TIME CONSTRUCTION OF: HUNTINGTON! CENTRAL PARK EQUESTRIAN CENTER TO START 12-1-8.2. IT IS FURTHER AGREED THAT THIS POLICY SHALL NOT BE CANCELLED NOR THE AMOUNTS OF COVERAGE PROVIDED HEREIN REDUCED UNTIL THIRTY (30) DAYS AFTER THE CITY'S CITY ATTORNEY SHALL HAVE RECEIVED WRITTEN NOTICE OF SUCH CANCELLATION! OR REDUCTION, AS EVIDENCED BY RETURN RECEIPT OF REGISTERED MAIL. APPROVED AS TO FOR1[:1 GAIL HUTTON City Attorney Hy:t ssietan City, 4 to eyg ROWAN - WILS0N '- I�ISURAidC,� SE$.� t Cl A orize �R resentative Form 1803 w9 v, Qo, RENEWAL CERTir^"l' -,- ATTACN THIS CERTIFICATEC AIGINAL POLICY - C® INSUR 7 r M 1 � InSU%318•E.y6REEN-S-T=. NY PASQDEIVAiyCQI;lF,�91109 .IF�T AINERIC.�111 793-8M 681-6961 / INSURANCE COMPANIES --- ADMINISTRATIVE OFFICE: 580 WALNUT STREET �- El G = GREAT AMERICAN INSURANCE COMPANY 2 THE PROTECTOR LN A AMERICAN NATIONAL FIRE INSURANCE COMPANY LLJ AA= AMERICAN ALLIANCE INSURANCE COMPANY ❑ AG= AGRICULTURAL INSURANCE COMPANY CATASTROPHE LIABILITY RENEWAL CERTIFICATE (Each a stock corporation, herein called the company) Insurance.is afforded by Company designated. Item � RENE POLICY NUMBER PRO 262 21 93 IETTTzR l9UILT EIZTERPRISESI INC. ' / / 45 $tilA2,i`ItJT AVE. Tamed JnJured ARCADIA, CALIF. 91006 1. 2. Policy Period: IT IS AGREED THAT THIS POLICY IS RENEWED FOR A PERIOD OF TWELVE (12) MONTHS: STANOARD TIE AT THE From: 11-15-F31 To: 11-15-82 ADDRESS MOF THE NAMINSURED. Agent or Broker CODE ROIRM—WILSC H PABADFNA, Mir. 3. Limits of Liability — Retained Limit - SAME AS EXPIRING 4. Premium Computation: (A) Premium Basis (B)Estimated Exposure (C) Rate Per (D) Estimated Premium (E) Minimum Premium (F) Advance Premium FLAT CRUM $ 900, $ 900. $ 900. Personal Catastrophe Liability Endorsement(s) #1 23001 #2 23081 M3 23017 #4 23100 $ 34, -x i5 23036 _ �;- TOTAL ADVANCE PREMIUM $-934*..-• In the event of cancellation by the named insured, the company shall receive and retain not less than $ 187 • as a pol icy Imum premium. 5. Endorsement Changes*" [ ADDED (ATTACHED) 23036E 23001F - AHWDED L DELETED 6. Changes in Schedule of Underlying Insurance" NEW CARRIER TYPE OF POLICY APPLICABLE LIMITS SEE AMDED END'T III TRUE AND'ORIGINAL COPY AS CERTIFIED BY ROWAN-WILSOIJ INSURANCE SERVICES **ABSENCE OF AN ENTRY MEANS "NO CHANGES" ZC At,J"AV—Q& IN WITNESS WHEREOF, The Company has caused this certificate to be signed by its President and Secretary, and countersigned by a duly authorized agent of the Comoanv. Secretory CARL H. LINDNER President Countersigned by AUTHORIZED REPRESENTATIVE F.23086-3/79 JL G4W ANSI CM INSURANCE COMPANIES ''' 1E PR T L CATASTROPHE LIABILITY POLICY SCHEDULE A —SCHEDULE OF UNDERLYING POLICIES ,INSURED EFFECTIVE ON AND AFTER 19_12:01 A.M. STANDARD TIME THIS SCHEDULE FORMS PART OF POLICY NUMBER PRO CARRIER, POLICY NUMBER AND PERIOD TYPE OF POLICY APPLICABLE "MITP (a) STATE FUND Standard Workers' Employers' Liability TO FOXJDW Compensation and Employers' Liability $ 100,000. each accident (b) INDUSTRIAL INDgjyN=Y Comprehensive Bodily Injury Liability #AA8074877 Automobile Liability $ each person 11-15-79 t0 11-15-82 including $ each occurrence Property Damage Liability ® owned automobiles $ each occurrence ® non -owned automobiles Bodily Injury and Property Damage Liability Combined ® hired automobiles $ 500,000. each occurrence ❑ garage keepers' legal liability $ each location (c) Comprehensive Personal or Bodily Injury Liability INDUSTRIAL 3XIM TITY General Liability AMP 8314513 including $ each. occurrence 11-15-80 t0 11"15-83 ® products —completed $ aggregates operations liability ® contractual liability Property Damage Liability ® personal injury liability $ each occurrence ❑ injury to employees $ aggregates covered ❑ employees as additional Personal or Bodily Injury and Property Damage Liability Combined insureds $ 5000000. '/ each occurrence/aggregates ❑ liquor law liability (d) Aircraft Liability Bodily Injury Liability including $ each person ❑ owned aircraft $ each occurrence Property Damage Liability ❑ non -owned aircraft $ each occurrence Bodily Injury and Property Damage Liability Combined ❑ passenger bodily injury $ each occurrence (e) Watercraft Liability Bodily Injury Liability $ G each person including $ each occurrence Property Damage Liability ❑ owned watercraft $ each occurrence Bodily Injury and Property Damage Liability Combined ❑ non -owned watercraft $ each occurrence If) # 1 AMENDED An "X" marked in the box indicates the coverage is provided in the Underlying Policies. F.23001F-8'81 n THE PROTECT R ,,� CATASTROPHE LIABILITY POLICY THE FOLLOWING SPACES AAE 10 BE COMPLETED. -ONLY IF ENDORSEMENT IS NOT ATTACHED TO THE POLICY WHEN ISSUED. PERSONAL INJURY LIABILITY It is agreed that this policy shall not apply to any liability arising out of false arrest, false imprisonment, wrongful eviction, wrongful entry, wrongful detention, malicious prosecution, libel, slander, defamation of character, humiliation, or invasion of the rights of privacy unless such liability be covered by valid or collectible underlying insurance at the full limits of liability as set out in the Schedule of Underlying Policies and .then only for such hazards for which coverage is afforded under said underlying insurance. F.23036B-7-74 # rj PRINTED IN U.S.A. .r� Declarations Page —Part Twoo IV GZWAWFUCJW INSURANCE COMPANIES ADMINISTRATIVE OFFICE: 580 WALNUT STREET W • CINCINNATI, OHIO 45202 THE PROTECTOR E]G = GREAT AMERICAN INSURANCE COMPANY I] A — AMERICAN NATIONAL FIRE INSURANCE COMPANY CATASTROPHE LIABILITY POLICI ❑ AA — AMERICAN ALLIANCE INSURANCE COMPANY �� r R AG — AGRICULTURAL INSURANCE COMPANY (Each a stock corporation, herein called the company) Insurance is afforded by Company designated. �VJ Item DECLARATIONS / J/ Tamed POLICY NUMBER PRO 2 BEZTF.R BUILT 62 21 , INC. .93 PREVORUINSUR POLICY N0. 1, nJured 345 yALMM AVE. and P. 0. Address . ARCAM, CA. 91005 NM (Number, Street, Town, County, State & Zip No.) . 2. Pollc Period: ° A M STANDARD TIME AT THE ADDRESS From:. Y OF THE NAMED INSURED AS STATED HEREIN. 11-15-60 To. 11-15-8 Agent or Broker : R0WM. fjLS0N CODE ti PASAMM, CA. 3. Limits o'r Liability — Retained Limit (A) Occurrence Limit $ 1,000,000. (B) Aggregate Limit $ 1, 000 0,000 . (C) Retained Limit $ 10,000. 4. Premium Computation: (A) Premium Basis (B) Estimated Exposure (C) Rate per (D) Estimated Premium (E) Minimum Premium (F) Advance Premium Annual JJ Annual E] Annual Annual FLAT CHAIM ❑ Three Year Three Year ❑ Three Year Three Year E] Term Term Term Term $ 850. $ 850. $ 850. Personal Catastrophe Liability Endorsement(s) #1) 23001F, #2) 23081, #3) 230I7E. #4 23100 $ 30. TOTAL. ADVANCE PREMIUM a $ 880 INSTALLMENT PREMIUM In the event of cancellation by the named insured the company shall receive and retain not less than $ 170. as a policy minimum premium. 5. During the past year no insurer has canceled any similar insurance issued to the named insured, nor declined to issue such insurance, unless otherwise stated herein: " "ABSENCE OF AN ENTRY MEANS "NO EXCEPTION". hh/12-3--80 Countersigned by Authorized Representative F, 23000C — 2/80 PROnl1{'FR COPY n THEJ1JR0T§CT0'11' G,JL CATASTROPHE LIABILITY POLICY IEM AN w%Vq.rNcf COu... r.i �f% .SCHFnIJI F 'A—SCHFnm F nF IINnFRI YI Nn Pill iri FC INSURED EFFECTIVE ON AND AFTER—J____-__—_--_._'.__-___ 19_12:01 A.M. STANDARD TIME THIS SCHEDULE FORMS PART OF POLICY NUMBER PRO CARRIER, POLICY NUMBER AND PERIOD TYPE OF POLICY APPLICABLE LIMITS (a) STATE FUND ' Standard Workers � Employers' Liability # TO F�I�A� Compensation and, $ 100,000. each accident Employers' Liability (b)INMgTRM INDEMNITY Comprehensive Bodily Injury Liability #MP8229709 Automobile Liability $ each person 1 1-15-$0�81 including $ each occurrence Property Damage Liability owned automobiles $ each occurrence ] non -owned automobiles Bodily Injury and Property Damage Liability Combined �] hired automobiles $ 50O/ 000 • each occurrence ❑ garagekeepers' legal liability $ each location (c) 3NDUSTRIAL INDEMNITY Comprehensive Personal or Bodily Injury Liability #AA8074877 General Liability 11-15-79/82 including $ each occurrence products —completed $ aggregates operations liability' contractual liability Property Damage Liability ] personal injury liability $ each occurrence ❑ injury to employees $ . aggregates covered ❑ employees as additional Personal or Bodily Injury and Property Damage Liability Combined insureds $ 500/000. f each occurrence/aggregates ❑ liquor law liability (d) Aircraft Liability Bodily Injury Liability including $ each person ❑ owned aircraft $ each occurrence Property Damage Liability ❑ non -owned aircraft $ each occurrence, Bodily Injury and Property Damage Liability Combined 0 passenger bodily injury $ each occurrence (e) Watercraft Liability Bodily Injury Liability $ each person including S each occurrence Property Damage Liability ❑ owned watercraft S each occurrence Bodily Injury and Property Damage Liability Combined ❑ non -owned watercraft $ each occurrence (fl #1 Ao "X" marked in the box indicates thr cnverw is provided in the Urrdorlyiny Polir-ivs. [a INSURANCE COMPANIES THE PROTECTOR CATASTROPHE LIABILITY POLICY THE FOLLOWING SPACES ARE TO BE COMPLETED ONLY IF ENDORSEMENT IS NOT ATTACHED TO THE POLICY WHEN IIEp. LILY NO. [►►[CTIV[ DAT[ INURE PUNITIVE OR EXEMPLARY DAMAGES ENDORSEMENT (Following Form) With respect to Lability arising out of punitive or exemplary damages, this policy shall apply only to the extent similar coverage is afforded by underlying insurance at the full limits of liability described in Schedule A. F.23081 — 11/77 Printed in USA:` #2 V.AJA-C INSURANCECOMPANIES r THE PROTECTOR CATASTROPHE LIABILITY POLICY THE .FOLLOWING SPACES ARE TO BE COMPLETED ONLY IF ENDORSEMENT IS NOT ATTACHED TO THE POLICY WHEN I$VED, LICT NO. [I/[CTIV[ DATC CONTRACTORS It is agreed that Exclusion (b) is deleted and the following is substituted therefore. Unless coverage is afforded by underlying insurance at the full limits of liability described in Schedule A, this policy shall not apply to liability for property damage: (1) to property owned by, leased or rented to, occupied or used by or in the care, custody, or control of the insured or as to which the insured is, for any purpose, exercising physical control; (2) to the insured's products arising out of such products or any part of such products; (3) to work performed by or for the insured arising out of the work or any portion thereof, or out of materials, parts, or equipment furnished in connection therewith; (4) arising out of: (a) blasting or explosion other than the explosion of air or steam vessels, piping under pressure, prime movers, machinery or power transmitting equipment; (b) the collapse of or structural injury to any building or structure due to (i) grading of land, excavation, borrowing, filling or back -filling, tunneling, pile driving, coffer -dam work, or (ii) moving, shoring, underpinning, raising or demolition of any building or structure, or removal or rebuilding of any structural support thereof; (c) injury to or destruction of wires, conduits, pipes, mains, sewers, tanks, tunnels, any similar property, and any apparatus in connection therewith, beneath the surface of the ground or.Water, caused by and occurring during the use of mechanical equipment for the purpose of grading land, paving, excavating, drilling, borrowing, filling, back -filling or pile driving. It is further agreed that this policy shall not apply to liability: (1) assumed by the insured under any contract or agreement unless such contract is covered' by underlying insurance at the full limits of liability described in Schedule A; (2) arising out of any professional services performed by or on behalf of the insured, including the preparation or approval of maps, plans, opinions, reports, surveys, designs or specifications, and any supervisory, inspection or engineering services. F.23017E-11/77 Printed In U.S.A. 4� i l� THE PROTECTOR iNE GUMAIMNY CATASTROPHE LIABILITY POLICY -SUn ANCE CO-—:5 THE FOLLOWING SPACES ARE TO BE COMPLETED ONLY IF ENDORSEMENT IS NOT ATTACHED TO THE POLICY WHEN ISSUED. P' ►OLIC♦ MO "FICTIVE DATE IN[Uw[D SIGNATURE OF AUTHORIZED REPRESENTATIVE PERSONAL CATASTROPHE LIABILITY ENDORSEMENT In consideration of the premium charged, it is agreed, except as respects such coverage as is afforded by this endorsement, this policy does not cover any "non -business" activities of any individual named insured. It is further agreed the word " business" includes trade, profession, or occupation. (1) Individual Named Insured DECLARATIONS EDWARD MILLIGAN (2) Address 345 WUNM AVE., ARCADIA, CA. 91006 (Number, Street, Town, County, State & Zip No.) (3) Limit of Liability — As Insuring Agreement V (a) Coverage — Personal Liability with respect to any one occurrence $ 1,000,000. (b) Retained Limit $ 250. (4) Premium $ INCL+ Installments Payable $ r) $ 1 st Anniversary, $ In advance, 2nd Anniversary (5) . During the past year no insurer has cancelled any similar insurance issued to the Individual Named Insured, stated in Item 1 of this endorsement, nor declined to issue such insurance, unless otherwise stated herein:" *ABSENCE OF AN ENTRY MEANS "NO EXCEPTION" (6) Cancellation: (7) For the purpose of the insurance afforded by this endorsement, it is warranted by the insured stated in item #1 above that the insured shall maintain in force valid and collectible underlying insurance written without special restrictive endorsements on standard forms in general use as set out below, or for the purpose of the insurance afforded under this endorsement it shall be deemed such insurance is in force with limits of at least: Comprehensive Personal Liability Automobile Liability Bodily Injury Liability and Property Personal Damage Liability Combined Liability $ 300,000. each occurrence $ each occurrence or Watercraft Protection & Indemnity or Automobile Liability Bodily Injury Liability Liability Bodily Injury and Property $ each person Damage Liability combined $ each occurrence $ each occurrence Property Damage Liability or $ each occurrence Bodily Injury Liability Standard Workmen's Coverage B — Employers' /.� $ each person Compensation & Liability $ each accident Employers' Liability $100, 000. one accident Property Damage Liability $ each accident #4 F.23100-2-74 . PRINTED IN U.S.A. \ 1n consideration of the payment of the .amium and in.reliance upon the statements in L...: Declarations and subject to the limits of liability, insuring agreements, exclusions, conditions and other terms of this endorsement, the Company agrees with the Individual Named Insured as follows: INSURING AGREEMENTS I. Coverage —Personal Liability. To pay on behalf of the insured the ultimate net loss in excess of the retained limit which the ? insured shall.become legally obligated to pay as damages because of personal injury or property damage. In jurisdictions where the company may be prevented bylaw from carrying out the agreement to pay on behalf of the insured, the company shall indemnify the insured, in accordance with this agreement. If. Defense —Settlement. With respect to any occurrence not'covered by the underlying insurance described in Item 7 of the Declarations of this endorsement or any other underlying insurance collectible by the insured, but covered by the terms and conditions of this endorsement except for the amount of retained limit specified in Item 3(b) of the Declarations of this endorsement, the company shall: a. defend any suit against the insured alleging such injury or destruction and seeking damages on account thereof, even if such suit is groundless, false or fraudulent; but the company may make such investigation, negotiation and settlement of any claim or suit as it deems expedient; b. pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this endorsement, all premiums on appeal bonds required in any such defended suit, the cost of bail bonds required of the insured during the endorsement period, but without any obligation to apply for or furnish any such bonds; c. pay all expenses incurred by the company, all costs taxed against the insured in any such suit and all interest accruing after entry of judgment until the company has paid or tendered or deposited in court such part of such judgment as does not exceed the limit of the: company's liability thereon; d. reimburse the insured for all reasonable expenses, including actual loss of wages or salary (but not loss of other income) not to exceed $100 per day, incurred at the company's request; and the amounts so incurred, except settlement of claims and suits, are payable by the company in addition to the applicable limit of liability of this endorsement. In jurisdictions where the company may be prevented by law or otherwise from carrying out this agreement, the company shall pay any expense incurred with its written consent in accordance with this agreement. The insured shall promptly reimburse the company for any amount of ultimate net loss paid on behalf of the insured within the retained limit specified in Item 3(b) of the Declarations of this endorsement. III. Definition of "Individual Named Insured" and "Insured". "Individual Named Insured" means the individual named in the declarations of this endorsement and also includes the spouse thereof if a resident of the same household. f The unqualified word "insured" includes the individual named insured and also: a. any relative, but with respect to the ownership, maintenance, operation, use, loading or unloading of automobiles, only as provided in the following paragraph b(2); b. (1) any person while using an automobile or watercraft owned by, loaned to or hired for use.by or on behalf of the individual named insured with the permission of the individual named insured, provided his actual operation or (if he is not operating) his other actual use thereof is within the scope of such permission, or (2) any relative.while using (i) an automobile owned by the individual named insured or a relative, or (ii) an automobile not owned by the individual named insured or any relative, provided his actual operation or (if he is not operating) the other actual use thereof is with the permission, or reasonably believed to be with the permission, of the owner and is within the scope of such permission; c. any person or organization using or having custody or possession of animals owned by the individual named insured with his permission; provided that none of the following is an insured; (1) the owner or lessee of an automobile or watercraft loaned to or hired for use by or on behalf of the individual named insured; (2) any person (other than the individual named insured) using automobiles or watercraft while employed or otherwise - engaged in the business of selling, servicing, repairing, maintaining, parking, docking, mooring or storing automobiles or watercraft, and any person or organization (other than the.indi"vidual named insured) with respect to his or its liabilityfor " the acts or omissions of any such person; (3) any person or organization (other than the individual named insured, his employees or agents or a relative) with respect to the loading or unloading of automobiles or watercraft; The insurance afforded applies separately to each insured against whom claim is made or suit is brought but the inclusion in this endorsement of more than one insured shall not operate to increase the limit of the company's liability. IV. Other Definitions. a. "Ultimate Net Loss" means the sum actually paid or payable in the settlement or -satisfaction of losses for which the insured is liable either by adjudication or compromise with the written consent of the company, after making proper deduction for all r recoveries and salvages collectible, but excludes all loss expenses and legal expenses (including attorney's fees, court costs and interest on any judgment or award) and all salaries of employees and office expense of the insured, the company or any underlying insurer so incurred. Page 2 F.2 3100-2.74 This endorsement shall not apply to dettiese, investigation, settlement or legal expenses cu%ered by underlying insurance. "Personal Injury" means: (1) bodily injury, sickness, disease, disability, shock, fright, mental anguish and mental injury; I (2) false arrest, false imprisonment, wrongful eviction, wrongful detention, malicious prosecution or humiliation; (3) libel, slander, defamation of character or invasion of rights of privacy; including death resulting therefrom, sustained by any person. c. "Property Damage" means injury to, or destruction of tangible property and all direct and consequential loss resulting therefrom. d. "Automobile" means a land motor vehicle, trailer or semi -trailer, including farm tractors, trailers and implements. e. "Business" includes trade, profession or occupation. f. "Relative" means any resident of the same household as the individual named insured; (1) who is related by blood or marriage to the individual named insured, or (2) who is a ward or adopted child of the individual named insured, or (3) who is under the age of twenty-one and in the care of the individual named insured. V. Retained Limit —Limit of Liability. The company's liability shall be only for the ultimate net loss in excess of the insured's retained limit defined as the greater of: a. the total of the applicable limits of the underlying insurance described in Item 7 of the Declarations of this endorsement and the applicable limits of any other underlying insurance available to the insured; or; b. an amount as stated in Item 3(b) of the Declarations of this endorsement as the result of any one occurrence not covered by the insurance as described in Item 7 of the Declarations of this endorsement or any other insurance: and then up to the sum not exceeding the amount stated in Item 3(a) of the Declarations of this endorsement as the result of any one occurrence. There is no limit to the number of occurrences during the endorsement period for which claims may be made. For the purpose of determining the limit of the company's liability, all injury, loss or damage arising out of one accident, or continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one occurrence. VI. Policy Period, Territory. This endorsement applies only to occurrences happening anywhere during the policy period. EXCLUSIONS This endorsement shall not apply: a, to any obligation for which the insured or any of his insurers may be held liable under any workmen's compensation, unemployment compensation or disability benefits law, or,under any similar law; b. to any liability arising out of the ownership, maintenance, operation, use, loading or unloading of any aircraft; c. to any liability arising out of the ownership, maintenance, operation, use, loading or unloading of watercraft while away from premises owned by, rented to or controlled by an insured if (1) owned by or rented to any insured if the watercraft has inboard or inboard outboard motor power of more than 50 horsepower or is a sailing vessel (with or without auxiliary. power) 26 feet or more in overall length; or (2) powered by any outboard motor(s) singly or in combination of more than 25 total horsepower, if such outboard motor(s) is owned by any insured unless: (i) 'insurance therefor is provided by an underlying insurance described in item 7 of the Declarations of this endorsement, or (ii) notice is given the company within forty-five days following date of acquisition of such a new watercraft and additional premium is charged; d. to .any business pursuits or business property (other than farms) of an insured except to the extent that insurance therefor is provided by. underlying insurance described in item 7 of the Declarations of this endorsement. e. to the rendering of any professional service or the omission thereof by the insured; f. to personal injury or property damage with respect to which an insured under this endorsement is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; g. to any act committed by or at the direction of the insured with intent to cause personal injury or property damage, but this exclusion does not apply to personal injury resulting from an act committed for the purpose of preventing or eliminating danger in the operation of automobiles or watercraft or for the purpose of protecting persons or property; h. to property damage to: (1) property owned by the insured, or (2) aircraft or watercraft rented to, used by or in the care, custody or control of the insured, or (3) any property, other than aircraft or watercraft, rented to, used or occupied by or in the care, custody or control of the insured, to the extent that the insured has agreed to'provide insurance therefor; l i. to any act or omission of the insured as an officer or member of the board of directors of any corporation or other organization other than a non-profit corporation or organization. Page 3 CONDITIONS A. Notice of Occurrence. Upon the happening of an occurrence reasonably likely to involve the company hereunder, written notice shall'be given as soon as practicable to the company or any of its authorized agents. Such notice shall contain particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances of the occurrence or injury, the names and addresses of the injured and of available witnesses. ^^ B. Notice of Claim -or Suit. If claim is made or suit is brought against the insured relating to such an occurrence or injury, the.,:, insured shall immediately notify the company in writing and forward to the underlying insurer and to the company every demand, notice, summons or other process received by him or his representative. C. Assistance and Cooperation. The insured shall cooperate with the underlying insurers as required by the terms of the underlying insurance. The insured shall cooperate with the company and, upon the company's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of loss with respect to which insurance is afforded under this endorsement or the underlying insurance; and the insured shall attend hearings and trials and assist in'securing and giving evidence and obtaining the attendance of witnesses. D. Appeals. In the event the. insured or the insured's underlying insurers elect not to appeal a judgment in excess of the retained limit, the company may elect to make such appeal at its cost and expense, and shall be liable for the taxable costs and .disbursements and interest incidental thereto, but in no event shall the liability of the company for ultimate net loss exceed the amount set forth in Insuring Agreement V. for any one occurrence and in addition the cost and expense of such appeal. E. Action Against the Company. No action shall lie against the company with respect to any one occurrence unless, as a condition precedent thereto, the insured shall have fully complied with all.the terms of this endorsement, nor until the amount of the insured's ultimate net loss in excess of the retained limit shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the company. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this endorsement to the extent of the insurance afforded by this endorsement. No person or organization shall have any right under,this endorsement to'join the company as a party to any action against the insured to determine the insured's liability, nor shall the company be impleaded by the insured or his legal representative. Bankruptcy or insolvency of the insured shall not relieve the company of any of its obligations hereunder. If, however, the insured shall die or be adjudged bankrupt or insolvent within the endorsement period, this endorsement, unless cancelled, shall cover the insured's legal representative for the unexpired portion of such period. F. Other Insurance. If other valid and collectible insurance with any other insurer is available to the insured covering a loss also covered by this endorsement, other than insurance that is in excess of the insurance afforded by this endorsement, the insurance afforded by this endorsement shall be in excess of and shall not contribute with such other insurance'. Nothing herein shall be construed to make this endorsement subject to the terms, conditions, and limitations of other insurance. G. Underlying Insurance. If any underlying insurance is exhausted by any occurrence, the company shall be obligated to assume charge of the settlement or defense of any claim or proceeding against the insured resulting from the same occurrence. H. Subrogation. In the event of any payment under this endorsement, the company shall participate with the insured and any underlying insurer in the exercise of all the insured's rights of recovery against any person or organization liable therefor. The insured shall do nothing after loss to prejudice such rights. Recoveries shall be applied first to reimburse any interest (including the insured) that may have paid any amount with respect to liability in excess of the limit of the company's liability hereunder; then to reimburse the company up to the amount paid hereunder; and lastly to reimburse such interests (including the insured), as to which this, insurance is excess, as are entitled to claim the residue, if any; but a different apportionment may be made to effect settlement of a claim by agreement executed by all interests. Reasonable expenses incurred in'the exercise of rights of recovery shall be apportioned among all interests in the ratio of their respective losses for which recovery is sought. I. Changes. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this endorsement or estop the company from asserting any right under the terms of this endorsement; nor shall the terms of this endorsement be waived or changed except by endorsement hereon. J. Cancellation. This endorsement may be cancelled by the individual named insured by surrender thereof to the company or any of its authorized agents, or by mailing to, the company written notice stating when thereafter such cancellation shall be effective. This endorsement may be cancelled by the company by mailing to the individual named insured at the address shown in this endorsement written notice stating when, not less than either: 1) thirty (30) days, or 2) if an entry is made, the number of days .stated in Item 6 of the Declarations of this endorsement thereafter, such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient notice and the effective date of cancellation stated in the notice shall become the end of the endorsement period. Delivery of such written notice either by the individual named insured or by the company shall be equivalent to mailing. If the individual named insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the company cancels, earned premium shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected or as soon as practicable thereafter. The check of the company or its representative, mailed or delivered, shall be sufficient tender of any refund due the individual named insured. K. Assignment. Assignment of interest under this endorsement shall not bind the company until its consent is endorsed hereon. L. Conflicting Statutes. In the event that any provision of this endorsement is unenforceable by the insured under the laws of any state or other jurisdiction wherein.it is claimed that the insured is liable for any injury covered hereby, because of non-compliance with any statute thereof, then this endorsement shall be enforceable by the insured with the same effect as if it complied with such statute. M. Maintenance of Underlying Insurance. It is warranted by the insured that the underlying insurance described in Item 7 of the Declarations of this endorsement or renewals or replacements thereof not more restricted, shall be maintained in force as collectible insurance during the currency of this endorsement. In the event of failure by the insured so to maintain such policies or to meet all conditions and warranties subsequent to loss under such policies, the insurance afforded by this endorsement shall apply in the r' same manner it would have applied had such policies been so maintained in force. Page 4 All Industrial Indemnity ENDORSEMENT G a Crum and Forster organization IT IS HEREBY AGREED THAT THE�FOLLOWING IS NAMED AS ADDITIONAL INSURED: ATTN:.PAUL E. COOK, DIRECTOR OF PUBLIC WORKS CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA. 92648 AS RESPECTS: CONSTRUCTION OF HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER IT IS AGREED THAT THIS POLICY SHALL NOT BE CANCELLED NOR'THE AMOUNTS OF COVERAGE PROVIDED HEREIN REDUCED UNTIL THIRTY.(30) DAYS AFTER THE CITY'S CITY ATTORNEY SHALL HAVE RECEIVED WRITTEN NOTICE- OF SUCH CANCELLATION OR REDUCTION, AS EVIDENCED.BY RETURN RECEIPT OF REGISTERED MAIL. APPROVE AS TO PORata GAIL HUTTON Ciss�istant torney " ity �. All other terms and conditions of this.Policy remain unchanged. (The information below is required,to be completed only when this endorsement is issued•subsequent to the policy effective date. Effective 9_29-82 this endorsement forms part of Policy Number MP 831-4513 of INDUSTRIAL INDEMNITY Issued to - BETTER BUILT ENTERPRISES, INC. Endorsement no. UTHORIZED PRESENTATIVE ,X003-R3 (1/80) �� ROWAN-WILSON ASURANCE SERVICES 10/6/82/sl NAME AND ADDRLSS OF AGENCY ' COMPANIES AFFORDING COVERAGES J.. ROWAN-WILSON INSURANCE SERVICES P.O. BIN 40, ARROYO ANNEX COMPA!, V A INDUSTRIAL INDEMNITY PASADENA, CALIFORNIA 91109 LL I if I? (213) 793$111 681.6961 IAFIERCOMPANY B AMERICAN NAT'L FIRE INS. CO.- 1.1 r1ER' NAME AND ADDRESS Or INSURED COMPANY BETTER BUILT ENTERPRISES, INC. LETTER 345 WALNUT AVENUE ':OMPANY ® .ARCADIA, CALIFORNIA 91006 'ErTLa—°' COMPANY ca LFTIER ' Thisps to certify that policies of insurance listed below have been issued to the insured named above and are in force at this time. COMPANY POLICY ___ Limits of Liability in Thousands (000) TYPE OF INSURANCE POLICY NUMBER FACH LETTER EXPIRATION DATE AGGREGATE OCCURRENCE GENERAL LIABILITY j BODILY INJURYE E e A L� COMPREHENSIVE FORM PREMISES ---OPERAI"IONS EXPLOSION AND COLLAPSE. jj HAZARD lr� UNDERGROUND HAZARD I PRODUCTS/COMPLETED j OPERATIONS HAZARD U CONTRACTUAI INSURANCE BROAD .FORM PROPERTY DAMAGE INDF.PENDENT CONTRACTORS PERSONAL INJURY AUTOMOBILE LIABIf f rr N 06 !_.1 COMI'l?EHENFIVF FORbf ar L. IOv'NEh whit Dr HIP11) affoi NON OWNt;1) is sU EXCESS LIABILITY B L] UMBRELLA I'ORM C� OTHER IHANIJMBRELLA FORM — d1'O'7I(FRS' COIiPENSATI0N and EMPLOYERS' LIARILII Y 01HER MP 831-4513 11-15-83 jthstanding any requirement, ter or condition y contract or rJtber ct.ocumont wait r^spect to ii the certificate is isaued, the insurance ded by the policies listed on the certificate bject to all the terms of such poli4les. RENEWAL PRO 2 62 21 93 1 11-15-83 PROPERTY DAMAGE $ g BODILY tNJIIRY AND PRLIPI: FIT Y DAMAGE E 500 S 500 COMJINI D operations Hazar, U01 M. INJURY Am I1�""��. ..)f'. .RIt•I ;(:; 1 "f tin:: Fl P'fll'i irl:;."I',r, FOR: CONSTRUCTION OF HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER TO BEGIN 12/1/82 Cancellation: Should any of fhe above desc-46d policies be I.ancelled heforc, the expiration date thereof, the i;Suifq cc,ln- pany will endeavor to mail clays written notice.to the below named certificate holder• bu! failme to mail such notice: shall impose no obligation or liability of any kind upon the company. INAMF.ANDADDRESSOfC[.F7nl"u::ArE.I101DER: ' CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CALIF. 92648 ATTN: PAUL E. COOK, DIRECTOR OF PUBLIC WORKS 9-29-82 DATE ISSUED: -------'------.--.—_._ -- ROWAN-WILSON INSURANCE SERVICES/sl S.F:' jrORM ( PROVISIONAL FORM) PREMIUM ADJUSTMENT FORM 449 (Dec. 1954) I DATED ATTACHED TO POLICY NO. NAME OF INSURANCE COMPANY 6/30/81 AND FORMING . PART OF a MP 831-4513 INDUSTRIAL INDEMNITY BETTER _BUILT ENTERPRISES INC. ISSUED([INSURED'S NAME " MAIL NG ADDRESS) A SIGNED VAMENA, CA. ROWAN WILSON, INC. AGENT 11..1...... _.....__a..A /I..__ ___A:a_LI_ ____.L_ .__.._ __-.__.__-J__a.__I _a_.\ f__ aL_ ___:-.7 f_...._ L_ • ITEM No. ITEM No. ITEM No. ITEM No. `_)• d'CATIONS RATE REFERENCE MO. YR. JAN............ ............................ FEB..................................... ................................................... .............................................................. ........ .. . ........ ............ ... .... .... ...... ...... ... ..... .... .......... _.... ..... ...... ...................................... .... MARCH............................. APRIL.................................. ................................................ . ............................................ ............ --- ........... .... ................................................. _................................. _..... MAY........................................................................ .............. ............ .................................. ................................................................ _.......... .......... DUNE.................................................. ...................... ........ :................................... _.............................................. JULY...............................................................................:...... ................. _.................................... -... .......................... .......... .. ..................... .............. _. . AUG........--•..................................................:.....:.......................................................................----...................................I......._ ......... _.... _........................... SEPT.......... 08.................. ...........1.57 Zi........................................................................................ OCT........... ........ ............... .................................................................................. _.............................. ......... ................................ NOV....................................... .........................................._..........................._...._.........................._ DEC..................................................................................................................................._........._..................................................._................................. TOTAL............................................. 7.3 ............................................................ _.................. :.................... _...................... ..... _.......... ................ AVERAGE..................................................... ........................................................._................................. ........YR. FIRE RATE............................................................................................................................................................................................................ ........YR. FIRE PREM.......................................................................................................................................................................................................... 1 YR. FIRE PREM....................................................................:.......................... ................ ........................................................._................................. ........Yr. Ext. Cov. End. Rate.................................................................................... ................ ................. _............................... ......... _.................................. Yr. Ext. Cov. End. Prem.. ........................................................................................ :.......... ................. _.............................. ......... _................ _................ IYr. Ext. Cov. End. Prem.................................................. ................................................................................................ ..........................._............... .... MnMTHLY... PUM............... ............JA......... .......... .............................. ........................................................... _.......................... _.... . ....................................................... ....PREM.I.LtM.............................................. .............. ................................--•---....................:............................................................................._.........................._...... $9 ......................................................... .. - ............... ....................................................................................................................................................................................................................................................... ....................................................... ............................................................ .................................................................................................. .. ................................................. ............................................. YR PREM. CALCULAUL;TION FIRE E. C. E. TOTALS 1 Year Deposit ........ ....... :........................ ................................... ........ ....... ...--••----..............................................................:........:..........5...�.R............. I Year Earned ........ ............ ...................... . ................................ ....... .......... �.89........... _. AdditionalPrem .............................. .......:.......................:........................................._................. �............... ReturnPrem........... ............................ ........... ..........3�r................... Required Deposit toExpiration ...... ................................ ................. .............. ... ................................. W. . Depositon Hand....................................................................... ................................... .................................................................... .. ............................... AdditionalPrem..................................... ..... ............ ................................ ..................... ......... ......••---.............. ..................... .............. ............... Prem. .................................................. �sReturn 'this --Company's AP ......................... AP......................... AP.......................... AP.......................... AP......................... ............. RP RP RP RP RP.......................... P. .................................%D ............... --•--...... .......................... ............. :........ -... .......................... ....... `THE FOREGOING IS HEREBY CERTIFIED TO BE A TRUE STATEMENT OF THE VALUES SUBMITTED OVER H SIGNATURE OF INSURED AND RECEIVED IN ACCORDANCE WITH RULES FOR WRITING PROVISIONAL RE- - PORTING -FORM -POLICIES.-- " "-----•-- - - ;, . i INDUSTRIAL INDEMNITY ...................................NAME OF INSURANCE COMPANY ................................. Company Checked by ................................................ i 449 Dec. 1954 By ...... :....................... .................................................................................. Date ................................................ OFFIf 5-4— ' CHANGE ENDORSEMENT THIS ENDORSEMENT. FORMS A PART OF THE POLICY NUMRERFD RFI OW - MP 12 01 (Ed. 02 79) ENDORSEMENT EFFECTIVE DATE POLICY NUMBER TERM FROM TO 3-23-82 MP 831-4513 3 YRS F11— 15-80 COMPANY INDUSTRIAL INDEMNITY INSURED'S NAME AND MAILING ADDRESS AUTHORIZED. REPRESENTATIVE'S NAME AND MAILING ADDRESS BETTER BUILT ENTERPRISES, INC. ROWAN WILSON, INC. PRODUCER CODE POLICY CHANGES ADDED: LOCATION #3 313 SANTA ANITA AVE., ARCADIA, CA. FORMS APPLICABLE COMPREHENSIVE OFFICE EQUIPMENT (IF164) SPECIFY FORM NOS. AND EDITION DATES AFFECTED BY POLICY CHANGES: SECTION I —PROPERTY COVERAGE Coverage Description Loc. No. Bldg.J No. LIMITS OF LIABILITY RATES PREMIUMS Previous New Previous New Previous New Add'I ❑ Return $ $ $ $ $40. $ $ $ $ 1 1 $ $ $ $ $ $ SECTION II —LIABILITY COVERAGE COVERAGE LIMITS OF LIABILITY PREMIUMS Previous New Previous New ❑ Add'I ❑ Return SMP Liability Insurance Form: $ $ Bodily Injury and Property ea. Occurrence ea. Occurrence Damage Liability $ $ $ $ _ $ (Combined Single Limit) Aggregate Aggregate Premises Medical Payments $ $ ❑ SMP Liability Insurance Form ea. Person ea. Person ❑ Medical Payments $ $ $ $ $ Coverage Part ea. Accident ea. Accident ❑ Forms other than BODILY INJURY LIABILITY _ SMP Liability Insurance Form $ $ Specify Coverage Part ea. Occurrence ea. Occurrence $ $ $ Aggregate Aggregate PROPERTY DAMAGE LIABILITY $ $ ea. Occurrence ea. Occurrence $ $ $ Revised Dual Limits: Aggregate Aggregate INSTALLMENT PAYMENT PREMIUMS. Previous Installments Additional Premium Return Premium Revised 'Installments Dates of subsequent installments, 2. if payable in annual installments: 3. $ $ $ $ $ $ $ $ PREMIUM DUE AT EFFECTIVE DATE OF ENDORSEMENT: $ Total for remainder of policy term: $IIA MP 12 01 (Ed. 02 79) _51t, policy change endorsement A CRUM., FORSTER pY 1119a ►- . ;IAI(IIMCI COMPANY , In consideration of a(n) ADDITIONAL premium of $ 155.00 it is agreed that the policy is amended as follows: O In consideration of a premium to be determined at audit, it is agreed that the policy is amended as follows: • In consideration of the premium charged, it is agreed that the policy is amended as follows: PREMIUM ADJUSTMENTS PREMIUM BASES LOCATION OESIGNA- TION CLASSIFICATION AND CODE NO. A. AREA B. FRONTAGE C. REMUNERATION RATES B.I. P.D. NEW PREMIUM B.I. P.D. OLD PREMIUM B.I. P.D. ADDITION RETURN B.I. P.D. ADDED 1) BUILDINGS OR PREMISES —OFFICE 313 SANTA ANITA A E. ARCADIA, CA. 65121S A)10600. 12.375 .066 198. INCL . — — 129. — AMENDED. 9) LIABILITY EXTENDED COVERAGE • 99990 20$ 181. 20. 142. 20. 26. — PREMIUM ADJUSTMENT IF THE PREMIUM IS PAYABLE IN INSTALLMENTS: DATES DUE ORIGINAL INSTALLMENTS INCREASE, DECREASE REVISED INSTALLMENTS ENDT. #L-1 (The information below is required to be completed only when this endorsement is issued subsequent to the policy effective date.) Effective 3-23-82 , this endorsement forms a part of -Policy No. MP 831-4513 issued to BETTER BUILT. ENTERPRISES.. INC. _ z ' by INDUSTRIAL INDEMNITY 5=4-82 M9 r AUTHORIZED REPRESENTATIVE 11.264 R2 (6/78) r It# CERflfi�{A�E CIS A V rA •,E • F INFbRM G r�0 AND `ORfER �yC Tj•, U�r r �, •aL'ai�,;GER?ILIA �> wig +1 �R1 COMPANIES AFFORDING • ' CI, LrMPANY A INDUSTRIAL INDEMNITY PASADENA, CALIFORNIA 91109- coMPANv B 1213) 792-8111 691-6961 NAME AND ADDRESS Or INSURED COMPANY BETTER BUILT ENTERPRISES, INC. LEIIF:R 345 WALNUT AVENUE COMPANY • _ ARCADIA, CALIFORNIA 91006 "r'E`t COMPANY , LFTII I? This is to certify that policies of insurance listed below have been issued to the Insured named above and are In force,at this time. COMPAHJY LETTER —� TVPEOFINSURANCE POLICY NUMBER POLICY - EXPIRATION DATE Limits of Liability in Thousands EACH OCCURRENCE (000) AGGREGATE GENERAL LIABILITY A COMPREHENSIVE FORM MP 831-4513 ❑ PREMISES -OPERATIONS ❑ EXPLOSION AND COLLAPSE HAZARD LJ UNDERGROUND HAZARD ❑ T'RODUCTS/COMPLETED OPERATIONS HAZARD ❑ CONTRACTUAL INSURANCE ❑ BROAD FORM PROPERTY DAMAGE ❑ INDI:PI.NDE.N1 CONTRACIORS ❑ PERSONAL INJURY ��AUTOMOBILE LIABILITY ((jj lJ COMPREHr NSIVE FORM ❑j jOWNLD jIj_I I I I RE D l� NON-OWNIA) EXCESS LIABILITY l'_,1 UMBRELLA FORM u OTFITR T HAN IIMHRILLA FORM °!�•R14ER5 COMPENSATIQI` and EPA PLOYERS' LIABILITY ------ OTIiER-�--------- 11-15-83 PROPS RTY DAMAGE S $ BODILY INJURY AND PRor'E_RrYDAMAGE $ 500 $ 500' COMBINED •A�pl,cs to Products/ComplMrd Operations Hazard. BOL`II_" INJURY R (f ii,l PERSON) L'ODILY IN-11 W" 9: PRnPLPI Y DAII/V'.�: '_d(1DI1 Y IrJJUR`I AND I'R'JPERI Y DAMAGE $ T:O,MBINED Br`DIl_Y INJURY AND PROPLRIYDAMAGE $ COMBINED SfAIUiCntY 2 S (PLRSONAL INJURY) g 0& 1;n-CIUf NT1 7,7-1-'^'- .' DESCRII--r..._._._...... -._. ... .. _..._-...... .._.__. ...._., .. _ .__.. _.., -. __ __..,.p.? IDS ON tiT OPERATIONS/IOCATIONS,Vf:lllClf:; Notwithstanding any requirement, term or condition of any contract or other document with respect to which the certificate is issued, the insurance afforded by the policies listed on the certificate , Is subject to all the terms of such policies. Cancellation: Should any of the above descri!;,;'d policies be cancelled before the expiration date thereof• the issuing cr lm- pany will endeavor to rrlail __10_ days written notice to the below named certificate holder, but failure to mail such notice shall impose no obligation or liability of any kind upon the company. NAME AND ADDRESS Or CFRI"IFICATE HOLDER: ' STONEMAN CORPORATION 606 WILSHIRE BLVD., ROOM 616 P. 0. BOX 1187 SANTA MONICA, CALIFORNIA 90406 DATE ISSUED:-----5-11-82_-----------_------ AUl1101 t ( RI I'Iil Sr NI 4I IV� ROWAN-WILSON INSURANCE SER ICES/sl 7/76 1` CO DIY PRODUCER r 0.1 23 2 /9QU INSURED BETTER BUILT ENTERPRISES, INC., 345 WALNUT AVENUE, ARCADIA, CA. 9100.6 PRODUCER ROWAN -WI LSON, INC. POLICY NURbRR MP 831-4513 11\ DUSTRIAL INDEMNITY DATE OF INVOICE 2-10-82 PERIOD OF INVOICE FROM 11-15-80. TO 11-15-81 POIaICY iTO NO_ DAY DAY YR. r0. DAY YR., REMIUM RATE STATE Pl 1MQD �q (I 6 y 11-15-80 11-15-83. F�� Y$1,011. A/P - 04 CODE . CLASSIFICATIONS AND LOCATIONS PREMIUM BASES RATES PREMIUM BI PIS BI PD MED PAY PREMIUM DUE PER SCHEDULE ATTACHED. 2-10-82 M/M 3LOO4-R3 (11.79) INDUSTRIAL GENERAL.'LIA•81LI Y: Insured BETTER BUILT ENTERPRISES INC. ACRtW FORSTER wasuRANM Comm if Policy Period Dates 11-15-80 TO 11-15-83 Comm. Rate Policy Number MP 831-4513 Previously Billed B.I . P. D. Additional orRetuart B.I _ P. D. Code Classifications and Locations Premium Bases Period If Less Than Policy Term In Force % Rates B.I . P. D. Premium B.I. P. D. 24309 PREFABRICATED BUILDING P) 101805. .809 .083 87. 9. 578. 59. (491.) (50- 17535 PREFAB,BLDG ERECTION P 170146, 1.3051 .307 224. 53. 86. 20. 138. 33. 144 DRIVEWAY., K N P 180449, 1,096 225 202 42. 0. 0. 202.. 42. 17225 PAINTINGE IN 150609. 4.176 2.364 652. 369. 0. 0. 652. 16291 CONST, OPERATIONS MINIMUM APPLIES MP 2�+. MP 1 24. 18. - - ENDED LIABILITY -2 -6 238. 98. 138. 19. 100. 79. 2 PREFAB, BLDG, MFG,R 1810530, 288 869 52. 158. 143. 430... 01.) (272. WPM, 6 547 62 86. 7. 10. 55. 76. .276 .257 38.6. 0. 0.1 38. f 17235 PAINTING OR PAPERHANGING R) 127 072. .240 .5151 30. 65. 0. 0. 30. 65. 11609. 934. 976.0 556. 633. 7" EARNED PREMIUM $2 543. --LESS PREY, BILLED 1 2: 2-10-82 M/M 3L009 k4 (10/73) SAGE 1 e CMPAl.Nt 'R IndusttW i n�A'-'g! -I:VmMMERC KAGM ? T� hd�14r"pI PRODUCER NAME AND ADDRESS POLICY NUMBER INSV RED .ROWAN WILSON, INC. MP831-4513 BETTER BUILT ENTERPRISES, INC. —P.cT'— DATE ENDORSEMENT NUMBER (.—R .1 lssu.D; ONEW AN'NIVERSAPY D RENEWAL ❑CHANGES OR.W..T. 11/15/81 AFTER POLI C Y . INCEPTION) G-4 jX j'w H g OC "COMPA'c- Icyl,'COVERAGE�*,"',r. , ANfi` I." J BUILDING (LOC. #1) 268. BUILDING (LOC #2) i 105. COMMERCIAL BLOCK (LOC. 535. OFFICE BLOCK (LOC. #2) 54. INSTALLATION FLOATER 540. DEPOSIT • TOTAL SECTION I PREMIUM 502. COMPREHENSIVE GENERAL LIABILITY 1,625. TOTAL SECTION 11 PREMIUM 1,625. NOT COVERED TOTAL SECTION III PREMIUM $ TOTAL COMPAC POLICY PREMIUM, $ 3,127. INSTALLMENT SERVICE CHARGE PER FORM IX202 ATTACHED 63. V/ TOTAL PAYMENT REQUIRED - PER FORM IX202 ATTACHED 9/22/81 LR E C ' -,ln :I I VE D ISET 2 5 031 I. I'. R, (,,Joe) --1 INDUSTRIAL installment rcemium endorsement • ACAMFORSTER .• . 1L71M1AMCK COF~Y .The, purpose of this amendment to your policy is to allow you, the insured, to defer part of your annual insurance premium by paying in. installments. By accepting it, you agree to pay us the. . estimated annual premium and service charge, in accordance with the schedule shown below. This. endorsement does not affect your right to cancel this policy and receiygxg,r fund .of any unearned premium and unearned service charges paid. DATE POLICY NO. ENDORSEMENT NO. 9/22/81 MP 831-4513 G-3 -BETTER-BUILT ENTERPRISES, INC. POLICY PERIOD (FROM -TO) TRAN5AGTION PERIOD (FROM -TO) 11-15-80 TO 11-15-83 11-15-81 TO 11-15-82 PAYMENT PLAN SELECTED THREE (3) PAYMENTS FOUR (4) PAYMENTS TEN (10) PAYMENTS CHANGE IN CHARGES CURRENT REVISED CHARGES ❑ ADDITIONAL CHARGES ❑ RETURN ESTIMATED ANNUAL INSURANCE PREMIUM (CASH PRICE) 3,127. INSTALLMENT SERVICE CHARGE (@ 2. % OF PREMIUM times pro rata factor if applicable) 63. TOTAL PAYMENT REQUIRED (DEFERRED PRICE) 3,190. INSTALL- DATE CURRENT CHANGEIN AMOUNT DUE* REVISED INSTALL- DATE CURRENT CHANGE IN AMOUNT DUE * REVISED MENT NO. DUE PAYMENTS ❑ ADDITIONAL FUTURE PAYMENTS MENT NO. DUE PAYMENTS FUTURE ❑ ADDITIONAL PAYMENTS e` V ❑ RETURN ❑ RETURN 1 6. 11/15/ 1( 1 ,5Q6 2 4/1/8 797•, 7 3 �97 8 . 8/ 1 /8 4 9 5 10 �k AMOUNT OF ADDITIONAL OR RETURN PREMIUM DUE NOW The terms of this insurance policy control the actual earned premium due to us. Notwithstanding this endorsement, additional premiums may be payable to us, or return premiums may be due to you in accordance with the terms and conditions of the policy, or'subsequent endorsements. 9/22/81LR IX202 (4/79) PRODUCER CHANGE ENDORSEMENT MP 12 01 (Ed. 02 79) THIS ENDORSEMENT FORMS A PART OF THE POLICY NUMBERED BELOW: P ENDORSEM NT EFF CTIVE DATE POLICY NUMB RR 1 /15/_1 MP t3 1-4513 TERM 3 YRS FROM 11/15/80 TO 11/15/83 COMPANY INDUSTRIAL INDEMNITY INSURED'S NAME AND MAILING ADDRESS. AUTHORIZED REPRESENTATIVE'S NAME AND MAILING ADDRESS BETTER BUILT ENTERPRISES, INC. ROWAN WILSON, INC. 345 WALNUT AVENUE BIN 40, ARROYO,ANNEX ARCADIA, CA. 91006 PASADENA, CA. 91109 PRODUCER CODE 79461 POLICY CHANGES INCREASED AS SHOWN BELOW ENDT. P-2 SPECIFY FORM NOS. AND EDITION DATES AFFECTED BY POLICY CHANGES: SECTION I —PROPERTY COVERAGE Coverage Description Loc. No. Bldg. No. LIMITS OF LIABILITY RATES . PREMIUMS ' Previous New Previous New Previous New ® Add'I Return BLDG. 1 1 $ 82,000 $ 9 , - - $ - $ $ BLDG. $ 54,000 $ 59,400 - - $ - $ - $ON ANNIV SECTION II —LIABILITY COVERAGE COVERAGE LIMITS OF LIABILITY PREMIUMS Previous New Previous New' ❑ Add'I Return SMP Liability Insurance Form: $ $ Bodily Injury and Property ea. Occurrence ea. Occurrence Damage Liability $ $ $ $ $ (Combined Single Limit) Aggregate Aggregate Premises Medical Payments $ $ SMP Liability Insurance' Form ea. Person ea. Person Medical Payments $ $ $ $ $ Coverage Part ea. Accident ea. Accident ❑ Forms other than BODILY INJURY LIABILITY SMP Liability Insurance Form $ $ Specify Coverage Part ea. Occurrence ea. Occurrence $ $ $ Aggregate Aggregate PROPERTY DAMAGE LIABILITY ea. Occurrence ea. Occurrence $ $ $ Revised Dual Lynits: Aggregate Aggregate INSTALLMENT PAYMENT PREMIUMS Previous Installments Additional Premium Return Premium Revised Installments Dates of subsequent installments, 2. if payable in annual installments: 3. $ $ $ $ $ $ $ $ PREMIUM DUE AT EFFECTIVE DATE OF ENDORSEMENT: $ $ Total for remainder of policy term: $ $ 9/22/81LR ROWAN WILSON, INC. MP 12 01 (Ed. 02 79) Agency, By �,- • i 4a-. LIABILITY, SCHEDULE 1ST ANNIVERSARY NAMEU'TNSURED POLICY NUMBER BETTER BUILT;ENTERPRISES, INC.' MP 831-4513 :,KEY NUMBERS: (1) OWNERS', LANDLORDS' AND TENANTS'; (2) MANUFACTURERS AND CONTRACTORS: (3) PREMISES MEDICAL PAYMENTS; (4) STOREKEEPERS LIABILITY; (5) OWNER'S AND CONTRACTOR'S PROTECTIVE; (6) PRODUCTS AND COMPLETED OPERATIONS; (7) CONTRACTUAL; (8) LIQUOR LAW LIABILITY; (9) LIABILITY EXTENDED COVERAGE; (10) PERSONAL INJURY; (11)'EMPLOYERS' NON•OWNERSHIP; (12) HIRED AUTOMOBILES PREMIUM BASIS: a — AREA b — FRpNTAGE m — ADMISSIONS p — PAYROLL r — RECEIPTS', t - OTHER KEY CLASSIFICATIONS AND LOCATIONS NO.j'; "' CODE. ` PREMIUM BASIS ADVANCRR PREMIUM BODILY PROPERTY , BODILY - PROPERTY " INJURY DAMAGE INJURY DAMAGE fe `..345 WALNUT AVE. t ,ARCADIA,. CA. 2) "PREFABRICATED BUILDING MANU- •FACTURING�ME7AL-EXCLUDING ERECTION 24309 P)78,650 .759 .078 597. 61. 2) PREFABRICATED BUILDING EREC- TION 17535 07,260 1.224 .288 89. 21. 5) CONSTRUCTION OPERATIONS -CON- TRACTOR (NOT RAILROADS) -EX CLUDING OPERATIONS ON BOARD MIN. PREM. SNIPS 16291 T)1,000. .026 .012 22 .. 9) .LIABILITY EXTENDED. COVERAGE 20$ _ 99990 142. 204j -1. 6) PREFABRICATED BUILDING MANU- FACTURING -METAL -!EXCLUDING ERECTION- 24302 R)544,500 .236 .936 129. 510. 6) PREFABRICATED BUILDING EREC- TION 17862 R)17,600 .293 .513 7. 100 986. 639. 9/22/81LR 1 L029 R6 (4179) im STATE y COMPENSATION P.O. BOX 807, SAN FRANCISCO, CALIFORNIA 94101 1NSUR^"CE FUND OCTOBER 6, 1982- CERTIFICATE OF WORKER'S COMPENSATION INSURANCE POLICY NUMBER: 364199 CERTIFICATE EXPIRES: 1 -1 -83 CITY OF HUNTINGTON BEACH DEPT. OF BUILDING & SAFETY 2000.MAIN STREET HUNTINGTON BEACH,' CA 92648 This is to certify that we have issued a valid Worker's Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon ten days' advance written notice to the employer. We will also give you TEN days' advance notice should this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein.. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate of insurance. 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. 1-1-82/1-1-83 EMPLOYER PRESIDENT BETTER BUILT ENTERPR I SES ,dOVE7j 345 WALNUT -AVE . 1 yL BUT^ AS T� Fp ARCADIA, CA 91006 .4t RAI, °2'ne Y- . f9e,0tY Cit Y Att�e� SCIF FORM 262A (REV. 12.80) t#i�'S TR Co. DIV. POLICY NUMBER gas 43 ,iSI MP,.,,831-4513 fi;No,M`:oat -- - .. � � A 1 y" N BETTER BUILT ENTERPkISES, iNC'.__-_' R o �' d ff DDRESS ;;; 345 WALNUT AVENUE, ' INSURANrCE JSER�VIC S •' �" , i - I r III SLiC9n0 Fr GREENEST: ARCADIA ICA. 91006 y .� ..,r:�w... and,' PASADEN�AyCALlF,Z91109 793-81681-6961 THE "" - JOINT �• ,,,INSUREDJS INDIVIDUAL ❑ PARTNERSHIP CORPORATION ❑ VENTURE OTHER .. ,, ROWAN WILSON INC. TRUE COPY OF 0 INAL POLICY COVERAGE IsPROVIG=��` �R ER ► J erbc�l"+sun�r°reew"uP�°ir.!+'.. .,'BIN 40 ARROYO ANNEX — „�; , nERE,Rwuecrweca,Pu+ne•�� ' CERTIFIED BY PASADENA, CA. 91109 ks - -COMPANY AND HOME OFFICE -LOCATION INCEPTION EXPIRATION 12:01 A.M. STANDARD YEARS RENEWAL OF �'I'NDIJSTRI'AL INDEMNITY MO. DAY YR. MO. DAY YR. TIME AT LOCATION POLICY OF DESIGNATED PER"" ► 11 15 80 11 15 83 PREMISEs. 3 MP 822-9709 H0: SAN FRANCISCO, CA. _., 3 -: In Consideration of the premium, insurance is provided the named insured with respect to the designated premises shown below and with respect to those coverages and • kinds ofproperty for which a.specifiC limit of liability. is shown, subject to all of the terms of this policy including forms and endorsements made a part hereof: - .. tt. ' rite ► '+A. LOCATION OF DESIGNATED PREMISES (ENTER "SAME" IF LOCATION IS SAME AS ABOVE) OCCUPANCY OF PREMISES i 701- W. CIENEGA AVE. SAN DIMlAS CA. METALWORKER �rR i4;1u7 I ; 2. SAME OFFICE ''>i$. ❑ MULTIPLE BUILDINGS OR PREMISES AS DESIGNATED ON SUPPLEMENTAL DECLARATIONS ATTACHED. ; FORMS AND ENDORSEMENTS MADE A PART ,Ogh t. - aye+..Fa,g:,:t".,:: COINSURANCE' f r r PROPERTY,COVEiiA LIMIT OF LIABILITY ,'. DEDUCTIBLE THIS POLICY AT TIME OF ISSUE: I PERCENTAGE (INSERTNO. AND DATE) ,_rkz.... �" J.. IICn "D" CLASS BLDGS. LOC. 1 & 2 90 136,000. 100 MP0013, 438BFUNS OFFICE CONTENTS PER FORMS ATTACHED IF164 Ir ry BUSINESS PERSONAL PROPERTY PER'FOR1V1S ATTACHED IF156, MP033.1 I—STALLATION FLOATER PER FORMS ATTACHED IM106, IM0521* IM050, END. A'S ;►"''"j MORTGAGEE SUBJECT TO THE PROVISIONS OF THE MORTGAGE CLAUSE ATTACHED HERETO, LOAN OR ACCOUNT NUMBER 1>, = LOSS IF ANY, ON BUILDING ITEMS SHA L P Y L T • �9g BANK OF AME(2ICA, 10 NO. SQNT� ,VfT� AV`E., ARCADIA, CA. 91006 ATTN. DONNA BROWN _. x�e�� }yyy� ► w i' < ° ,':,e'LIABILITY 'COVERAGE,Q . '" t�' -d's: -°� THE ONLY INSURANCE AFFORDED IS THAT CONTAINED ON THOSE COVERAGE LIMIT OF LIABILITY COVERAGE &TYPE ` PARTS AND ENDORSEMENTS LISTED BELOW WHICH ARE PRECEDED BY A FORM NUMBER. , . $ each occurrence A BODILY INJURY LIABILITY 1L21OR2 COMPREHENSIVE GENERAL :Y =i V-10 p, $ aggregate (SEPARATE LIMIT PLAN) i '. ,';;•..,• _- SPEC. MULTI PERIL LIAB. INS. POL. $ each occurrence B PROPERTY DAMAGE LIABILITY • a �',,r�sg.;�; .Y MANUFACTURER'S &CONTRACTORS $ aggregate (SEPARATE LIMIT PLAN) "•t`;�„ �it��' _ - OWNER'S LANDLORDS 8 TENANTS $ 500 • each occurrence GENERAL LIABILITY ;•;; I ® A&B SINGLE LIMIT PLAN OWNER'S OR CONTRACTOR'S PROTECTIVE $ 500 000. aggregate ❑ SPEC. MULTI PERIL LIAB. INS. POL. _ _ _ STOREKEEPER'S LIABILITY $ each person PREMISES MED. PAYM. ❑ COVERAGEE PERSONAL INJURY ❑ SPEC. MULTI PERIL $ each accident LIAB. INS. POL. _ PREMISES MEDICAL PAYMENTS ,, na,.. �A PERSONAL INJURY 1L357R3 LIABILITY EXTENDED COVERAGE ,: e n» P LIABILITY $ aggregate EMPLOYER'S NON OWNERSHIP AUTO. LIAB. 1L394, GL0019 Automobile Coverage. If indicated by ®- a,ek,,a See Supplement 1X144 attached. "BEE?BECTioN>II►'� CRIME COVERAGE SAND ENDORSEMENTS OTHER THAN ABOVE MADE PART OF THIS POLICY AT ; , 4M TI E'OF ISSUE (INSERT NO. AND EDITION DATE) I ❑ Crime Coverage. If indicated by f See SMP Comprehensive Crime Coverage MP0090 MP0103 MP0127 Endorsement Atta ' ' �PREMIU a, ► TOTAL POLICY PREMIUM PAYABLE AUDIT PERIOD -ANNUAL UNLESS OTHERWISE STATED: r azx r¢',� AT -INCEPTION 1ST ANNIVERSA2ND ANNIVERSARY 3 :e $ 2913. Q $ B.D. $ T. B. D. ❑ MONTHLY ❑ QUARTERLY ❑ ANNUAL ❑OTHER _...T'. _ ?t : COUNTER R COUNTERSIGNATURE DATE =GY¥3^g ROWAN - WILSONv v, INSURANCE SERVICES. 11-19-8o M/M - 1X74 1 (9179) COPY po7w f L c,cOMPAC,111- • ♦ .s rial a, COMMER IAL PACKAGE: 1 PREMIUM W, �IV PRZ;DUCER NAME AND -RE- POLICY U.- INSURED ROWAN WILSON INC. BIN 40 ARROfO ANNEX MP 83174513 BETTER BUILT ENTERPRISES P SADE�A, CA gllng ENDORSEMENT NUMBER (ENTER IF ISSUED ONEW IT.. POLICYINCEPTION) [-jA...V.RSA.loR.N-Al [:]R--RITE 11-15-80) -2 LLll]lG ty, Y/ omp 'y" 0,VERAGES'..:i��,;�l,�',-,�,--- 77, E 1� K BLDGS, 340. RUSINESS PERSONAL PROPERTY •447, OFFICE BLOCK 54, INSTALLATION FLOATER 540. DEPOSIT TOTAL SECTION I PREMIUM 1381. tlf COMPREHENSIVE GENERAL LIABILITY 1532. TOTAL SECTION 11 PREMIUM 1532. NOT COVERED 3-5-81 M/M TOTAL SECTION III PREMIUM $ TOTAL COMPAC POLICY PREMIUMO, $ .2913. INSTALLMENT SERVICE CHARGE - PER FORM IX202 ATTACHED $ 58. TOTAL F-MTIE-QU RED- PER. FORM iX202-ATTACH IS SUMMARY CANCELLED & SUPERSEDED THE PREVIOUS SUMMARY rvl)"- installment premium endorsement • ' ACFWK, FORSTER • O MRANC[ CO!MNV s.. The purpose of this amendment to your policy is to allow you, the insured, to defer part of your annual insurance premium by paying in installments. By accepting it, you agree to pay us the estimated annual premium and service charge, in accordance with the schedule shown below. This endorsement does not affect your right to cancel this policy and receive a refund ,of any unearned premium and unearned service charges paid. REVISED DATE POLICY NO. ENDORSEMENT NO., 3-5-81 MP 831-4513 G-1 NAMFD INSURED BETTER BUILT ENTERPRISES POLICY PERIOD (FROM -TO) TRANSACTION PERIOD (FROM -TO) 11-15-80/83 11-15-80/81 'PAYMENT PLAN SELECTED THREE(3) PAYMENTS FOUR (4) PAYMENTS TEN (10) PAYMENTS i CHANGE IN CHARGES CURRENT REVISED CHARGES ❑ ADDITIONAL CHARGES ❑ RETURN ESTIMATED ANNUAL INSURANCE PREMIUM (CASH PRICE) 2913 INSTALLMENT SERVICE CHARGE (@ 2 % OF PREMIUM times pro rata factor if applicable) 58 TOTAL PAYMENT REQUIRED (DEFERRED PRICE) 2971 INSTALL- DATE CURRENT CHANGE IN AMOUNT DUE* REVISED INSTALL - DATE CURRENT CHANGEIN AMOUNT DUE* REVISED MENT NO. DUE PAYMENTS ❑ gDDITIONAL FUTURE PAYMENTS MENT NO. DUE PAYMENTS ❑ADDITIONAL FUTURE PAYMENTS RETURN ❑RETURN 1 11-15 1485 �9� � 6 2 4-1 743 3 XZy ( 7 3 9-1 743 8 4 9 5 10 �k AMOUNT OF ADDITIONAL OR RETURN PREMIUM DUE NOW The terms of this insurance policy control the actual earned premium due to us. Notwithstanding this endorsement, additional premiums may be payable to us, or return premiums may be due to you in accordance with the terms and conditions of the policy, or subsequent endorsements. IX202 (4/78) PRODUCER I t1' F wk 0 Industrial Incle it t: -si CruriI end Forster organlzatfon'4� 1 M4 "N 'COMMERCIAUTACKA "ps�jAjf- 'z- GE'," MP" ,-83 . . . . . . . . . . . . V4WMT:t--r'Ns13 PREMIUM"' SUMMARY it AH w N PRODUCER NAME AND ADDRESS INSURED ROWAN WILSON INC. BIN 40 ARROfO ANNEX PASADF6A CA_ g1log BETTER BUILT ENTERPRISES., INC. 111111111 DATE ENDORSEMENT NUMBER (ENTER IF ISSUED AFTER POLICY FINE- A R.- R - FK] R AI. ....... []RE -..I. 1-15-80 1 ' At M;,f kCOMPAC�POL1CYCpVERAGES., ANNJAL-PREM I U m BUILDINGS 340. BUSINESS PERSONAL PROPERTY 447. OFFICE BLOCK 54. INSTALLATION FLOATER 540. DEPOSIT 1 381. TOTAL SECTION I PREMIUM COMPREHENSIVE GENERAL LIABILITY 110532. • TOTAL SECTION 11 PREMIUM. $ 1, 532. NOT COVERED TOTAL SECTION III PREMIUM $ 11-19-80 M/M TOTAL COMPAC POLICY PREMIUM 2,913. 1XII9 R4 (4/20) PRODUCER'S COPY D ENDORSEMENT �. IT IS AGREED THAT THE PREMIUM OF $2,913. IS HEREBY DUE AND PAYABLE;- IN INSTALLMENTS'AS FOLLOWS: 11-15-80 $1,457 ' 2-15-81 $728. ($Z11J6J 12-11S 2J 5-15-81 $728.7 W V0 (tip 4 �IU All other terms and conditions of this Policy remain unchanged. (The information below is required to be completed only when this endorsement is issued subsequent to the policy effective date.) Effective 11-15-80 this endorsement forms part of Policy Number MP 831-4513 Of INDUSTRIAL INDEMNITY Issued to BETTER BUILT ENTERPRISES Endorsement no. AUTHORIZED REPRESENTATIVE X003-R214,7211 ROWAN-WILSON INSURANCE SERVICES 12/1/80/si .t...t ' I .[ r ** �.....•'`sX h `�'•_ .i ..ter b _. >..:�' . -R ,y�,'. :4.��,;�Iy +D•'(:"Kil.Ss'aw�;�' �' r:tiri'�o v"„,,;,"i'��'y- _:. %, .. (mil'- , •. � .. 4..: yyMrll►!• , '. .r Sfr�'• .+'�:.:.•Y::.°' ►1i.T ,. ,:.Iff..�F .. ��''.�Yry� �'i/� ... .J+. 5.. .. i �`..�[`.* nC"•��[� �'s.`.7 �.f'�r. tM ..I. t: ..1N./. V ••. nir•$��.. l.' A �. "':$ : t_•*- �;, . .. _. � .5� fir_. •� _ 7+Tv.. 5*.icc^ .�� S�,L� tr � "�-:,� �.•+• n.. . .. ..� 'i•�.�:0;�rafi'j•�.T ��+�'4�' :.r�%'..'�'l '•�.�.'a7:.:a:y:ti~�'� 7'i��"ti, "' tS ►:T.s.`:4 5'� � ✓�!,[.i„��jn.. ,.�,,'Rf �.. .. Y '�.� . �pw .,ySS .. _:. �. �_ .-_i ...w. t..._ _ .7T': .•... .t'.. �. .,_"'":._i._r3�. =�L� "��• 0.��\t..`F,:: V'Joindustrial Indemnity a Crum and Forster organization ENDORSEMENT SECTION I — PROPERTY, IT IS UNDERSTOOD AND AGREED THAT MORTGAGEE ENDT (FORM 438BRINS) -IN FAVOR OF BANK OF AMERICA IS APPLICABLE ONLY TO LOC #2 BLDG. 345 WALNUT AVE., ARCADIA., CA. All other terms and conditions of this Policy remain unchanged. (The information below is required to be completed only when this endorsement is issued subsequent to the policy effective date. Effective 11-15-80 this endorsement forms part of Policy Number MP 831-4513 of INDUSTRIAL INDEMNITY CO. Issued to BETTER BUILT ENTERPRISES Endorsement no. P-1 3-5-8AUTHORIZED REPRESENTATIVE 1 WIM I XOO 3-R3 (1/80) A o9 W Raft -it h. *n. !n Jf� 0" K, S.F. FORM Form 438BFU NS - (Rev. May"1, 1942) X LENDER'S LOSS PAYABLE ENDORSEMENT 1. Loss or damage, if any, under this policy, shall be paid to the Payee named on the first page of this policy, its successors and assigns, hereinafter referred to as "the Lender", in whatever form or capacity its interests may appear and whether said interest be fiduciary ik in vested in said Lender in its individual or in its disclosed or undisclosed or representative capacity, or tithe ,) a„or vested a nominee or trustee of said Lender.;'?. t `' 2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, its succes- sors and assigns, shall not be invalidated nor suspended: (a) by any error, omission, or change respecting the ownership, description, = 4. possession, or location of the subject of the insurance or the interest therein, or the title'thereto; (b) by the commencement of foreclosure proceedings or the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (c) by any breach of warranty, act, omission, neglect, or non-compliance with any of -the provisions of this policy, including any and all riders = now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor,.vendee, owner, tenant, warehouseman, cus- todian, occupant, or by the agents of either or any of them or by the happening of any event permitted by them or either of them, or their agents, or which they failed to prevent, whether occurring before or after the attachment of this endorsement, or whether before or after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or sus- M .-_yr.:'mac' pend the insurance as to the named insured, excluding herefrom, however, any acts or omissions of the Lender while exercising active the s , control and management of property.'.:�gm 3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of r" ,,;2•, this policy or on account of. any change in occupancy or increase in hazard not permitted by this policy, this Company agrees to give written notice to. the Lender of such non-payment of premium after sixty .(60)- days from and within one hundred and twenty (120) _ days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified in writing by this Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten (10) days following receipt of the Company's demand in writing therefor. If the Lender shall decline to pay said premium or additional premium, the rights of the Lender under this Lender's Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said written notice by the Lender. 4. Whenever this Company shall pay to the Lender any sum for loss or damage under this policy and shall claim that as tothe insured no liability therefor exists, this Company, at its option, may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured, .(with refund of all interest not accrued), and this Company, to the extent of such payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights and securities held as collateral thereto. 5. If there be any other insurance upon the within described property, this Company shall be liable under this policy as to the:Lender,..: for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified, and also any Contribu- tion Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards other than fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate this Company (pro rata with all other insurers con- i tributing to said payment) to all of the Lender's rights of contribution under said other insurance. 6. This Company reserves the right to cancel this policy at any time, as provided by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by the Lender and ="-`e shall then cease. 7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) days after its expiration unless an acceptable policy.in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lender's _ Loss Payable Endorsement, shall have been issued by some insurance company and accepted by the Lender.- 8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or r . *' ' its agents, insurance under this policy shall continue for the term thereof for the benefit of the Lender but, in such event, any privileges granted by this Lender's Loss Payable Endorsement which are not also granted the insured under the terms and conditions of this [ policy and/or under other riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property. 9. All notices herein provided to be given by the Company to the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed to or delivered.to the Lender at its office or branch described on the first page of the policy. - Approved: Board of Fire Underwriters of the Pacific, California Bankers' Association, Committee on Insurance. i ., .. •:y,"'T; '. •...'. .. , �, �p.J....:..i�3•�a.,r;,::...yL.d::X:...,...:n,..ti.r..<.:.n..:..JJI�'''•.�+' 1..,,, :+."`... ,.� .. ',.,':'�'.;k,+ '.•�.' ~ 'y,'• "l,Y;' • '• - 1' ,` .�,:+,iP '_ jet.'^► - - •V s:�, _ - �`, ".... ,.in *+x r W SPECIAL MULTI -PERIL POLICY SECTION I —SPECIAL BUILDING :M I. PROPERTY COVERED BUILDING(S): Building(s) or structure(s) shall include attached addi- tions and extensions; fixtures, machinery and equipment constituting a permanent part of and pertaining to the service of the building(s); ma- terials and supplies intended for use in construction, alteration or repair of the building(s) or structure(s); yard fixtures: personal property of the insured used for the maintenance or service of the building(s), including This policy does not cover: r u u a .a (Ed. 07 77) fire extinguishing apparatus, outdoor furniture, floor coverings and ap- pliances for refrigerating, ventilating, cooking, dishwashing and launder- ing (but not including other personal property in apartments or rooms furnished by the named insured as landlord); all while at the designated premises. II. PROPERTY NOT COVERED A. Outdoor swimming pools; fences; piers, wharves and docks; beach or diving platforms or appurtenances; retaining walls not constituting a part of a building; walks, roadways and other paved surfaces. B. The cost of excavations, grading or filling; foundations of buildings, machinery, boilers or engines whose foundations are below the undersur- face of the lowest basement floor, or where there is no basement, below the surface of the ground; pilings, piers, pipes, flues and drains which are underground; pilings which are below the low water mark. C. Outdoor signs, whether or not attached to a building or structure. D. Lawns; outdoor trees, shrubs and plants, except as provided in the Extensions of Coverage. E. Property which is more specifically covered in whole or in part by this or any other contract of insurance, except for the amount of loss which is in excess of the amount due from such more specific insurance. . III. PROPERTY SUBJECT TO LIMITATIONS . The following property is subject to these additional limitations: A. Plumbing, heating, air conditioning or other equipment or appliances (except fire protective systems) are not covered against loss caused by or resulting from freezing while the designated buildings are vacant or unoccupied, unless the insured shall have exercised due diligence with respect to maintaining heat in the buildings or unless such equipment and appliances had been drained and the water supply shut off during such vacancy or unoccupancy. B. Steam boilers, steam pipes, steam turbines or steam engines are not covered against loss caused by any condition or occurrence within such boilers, pipes, turbines or engines (except direct loss resulting from the explosion of accumulated gases or unconsumed fuel within the firebox, or combustion chamber, of any fired vessel or within_ the flues or passages which conduct the gases of combustion therefrom). C. Hot water boilers or other equipment for heating water are not covered against loss caused by any condition or occurrence within such boilers or equipment, other than an explosion. D. Glass is not covered against loss for more than $50 per plate, pane, multiple plate, insulating unit, radiant heating panel, jalousie, louver or shutter, nor for more than $250 in any one occurrence, unless caused by fire, lightning, windstorm, hail, aircraft, vehicles, discharge from fire protection or building service equipment, explosion, riot or civil commo- tion, and then the Company shall be liable only to the extent that such perils are insured against in this policy. E. Fences, pavements, outdoor swimming pools and related equipment, retaining walls, bulkheads, piers, wharves or docks, when covered under this policy, are not covered against loss caused by freezing or thawing, impact of watercraft, or by the pressure or weight of ice or water whether driven by wind or not. F. Metal smokestacks and, when outside of buildings, (1) awnings of fabric or slat construction, canopies of fabric or slat construction, includ- ing their supports, and (2) radio or television antennas, including their lead-in wiring, masts or towers are not covered against .loss caused by ice, snow or sleet, nor by windstorm or hail. G. The interior of buildings is not covered against loss caused by rain, snow, sand or dust, whether driven by wind or not, unless (1) the build- ings shall first sustain an actual damage to roof or walls by the direct action of wind or hail, and then the Company shall be liable for loss to the interior of the buildings as may be caused by rain, snow, sand or dust entering the buildings through openings in the roof or walls made by direct action ofwind or hail; or (2) such loss results from fire, lightning, aircraft, vehicles, explosion, riot or civil commotion, vandalism or mali- cious mischief, weight of ice, snow or sleet, to the extent that such perils are insured against in this policy. H. Buildings or structures in process of -construction, including materials and supplies therefor, when covered under this policy, are not covered against loss unless caused by fire,, lightning, windstorm, hail, aircraft, vehicles, smoke, explosion, riot or civil commotion, vandalism or mali- cious mischief, and then the Company shall be liable only to the extent that such perils are insured against in this policy. I. Property undergoing alterations, repairs, installations or servicing is not covered against loss if such loss is directly attributable to the opera- tions or work being performed thereon, unless a peril not excluded by this policy ensues, and then the Company shall be liable for only loss caused by such ensuing peril. IV. EXTENSIONS OF COVERAGE Except with respect to Extension D. Replacement Cost: (A) Each of the limits of liability specified for the following Extensions of Coverage applies as an additional amount of insurance. (B) The Coinsurance Clause shall not apply to loss under the Extensions of Coverage. The total amount recoverable under the Extensions of Coverage in this form and Extensions of Coverage in any other form made a part of this policy are not cumulative and shall not exceed the largest amount recoverable under any single form made a part of this policy. When, in accordance with the Other Insurance condition, there is Contributing Insurance, the Company shall not be liable for more than its pro rata share of the limits set forth in the following Extensions of Coverage. A. Newly Acquired Property: The insured may apply up to 25% of the limit of liability specified for Building(s), but not exceeding $100,000, to cover direct loss in any one occurrence by a peril not otherwise excluded to the following described property: 1. New buildings and new structures being constructed on the designated premises and intended for similar occupancy when not otherwise covered by insurance. This coverage shall cease 30 days from the date construction begins or on the date the values of new construction are reported to the Company, or on the expira- tion date of the policy, whichever occurs first. 2. Buildings acquired by the insured at any location, elsewhere than at the designated premises, within the territorial limits of this policy and used for similar occupancies or warehouse pur- poses. This coverage shall cease 30 days from the date of such acquisition or on the date values of the buildings are reported to the Company, or on the expiration date of the policy, whichever occurs first. MP 00 13 (Ed. 07 77) Page 1 of 2 Additional premium shall be due and payable for values ... reported from the date construction begins or the property is acquired. B. Off -Premises: The insured may apply up to 2% of the limits of liability specified for Building(s), but not exceeding $5,000, at a described loca- tion -to cover direct loss in any one occurrence by a peril not,otherwise excluded to property covered under Building(s) while removed from designated premises for purposes of cleaning, repairing, reconstruction or restoration. This Extension of Coverage shall not apply to property in transit, nor to property on any premises owned, leased, operated or controlled by the insured. C. Outdoor Trees, Shrubs and Plants: The insured may apply up to $1,000 to cover outdoor trees, shrubs and plants at the designated premises against direct loss in any one occurrence by the perils of fire, lightning, explosion, riot, civil commotion or aircraft, but only to the extent such perils are insured against herein. The Company shall not be liable for more than $250 on any one tree, shrub or plant, including expense incurred for removing debris thereof. D. Replacement Cost: In the event ss to a building structure covered under this policy, when the full cost of repair or replacement is less than $1,000, the coverage of this policy is extended to cover the full cost of repair or replacement (without deduction for depreciation). Coverage shall be applicable only to a building structure covered hereunder, but exclud- ing outdoor furniture, outdoor equipment, floor coverings, awnings, and appliances for refrigerating, ventilating, cooking, dishwashing and laundering, all whether permanently attached to the building structure or not. The Company shall not be liable under this Extension of Coverage unless the whole amount of insurance applicable to the building structure for which claim is made is equal to or in excess of the amount produced by multiplying the co-insurance percentage applicable (specified in the Declarations) by the actual cash value of such property at the time of the loss. V. PERILS INSURED AGAINST This policy insuresagainst all risks of direct physical loss subject to the provisions and stipulations herein and in the policy of which this form is made a part. VI. EXCLUSIONS This policy does not insure under this form against: A. Loss occasioned directly or indirectly by enforcement of any ordinance or law regulating the use, construction, repair, or demolition of buildings or structures including debris removal expense. B. Loss occasioned directly or indirectly by any electrical injury or dis- turbance to electrical appliances, devices, fixtures or wiring caused by electrical currents artificially generated unless fire as insured against ensues, and then this Company shall be liable for only loss caused by the ensuing fire. C. Loss caused directly or indirectly by the interruption of power or other utility service furnished to the designated premises if the interruption takes place away from the designated premises. If a peril insured against ensues on the designated premises, this Company will pay only for loss caused by the ensuing peril. D. Loss caused by, resulting from, contributed to or aggravated by any of the following: 1. earth movement, includingbut not limited to earthquake, land- slide, mudflow, earth sinking, earth rising or shifting; 2. flood, surface water, waves, tidal water or tidal wave, overflow of streams or other bodies of water, or spray from any of the fore- going, all whether driven by wind or not; 3. water which backs up through sewers or drains; or 4. water below the surface of the ground including that which exerts pressure on or flows, seeps or leaks through sidewalks, driveways, foundations, walls, basement or other floors, or through doors, windows or any other openings in such sidewalks, drive- ways,. foundations, walls or floors; unless fire or explosion as insured against ensues, and then this Company shall be liable for only loss caused by the ensuing fire or explosion; but these exclusions shall not apply to loss arising from theft. E. Loss caused by: 1. wear and tear, deterioration, rust or corrosion, mould, wet or dry rot; inherent or latent defect;. smog; smoke, vapor or gas from agricultural or industrial operations; mechanical breakdown, in- cluding rupture or bursting caused by centrifugal force; settling, cracking, shrinkage, bulging or expansion of pavements, founda- tions, walls, floors, roofs or ceilings; animals, birds, vermin, ter- mites or other insects; unless loss by a peril not otherwise excluded ensues and then the Company shall be liable for only such ensuing loss; 2. explosion of steam boilers, steam pipes, steam turbines or steam engines (except direct loss resulting from the explosion of accumulated gases or unconsumed fuel within the firebox, or combustion chamber, of any fired vessel or within the flues or passages which conduct the gases of combustion therefrom) if owned by, leased by or operated under the control of the insured, or for any ensuing loss except by fire or explosion not otherwise excluded, and then the Company shall be liable for only such ensu- ing loss; 3. vandalism, malicious mischief, theft or attempted theft, if the building had been vacant or unoccupied beyond a period of 30 consecutive days immediately preceding the loss, unless loss by a peril not excluded in this policy ensues, and then the Company shall be liable for only such ensuing loss; 4. leakage or overflow from plumbing, heating, air conditioning or other equipment or appliances (except fire protective systems) caused by or resulting from freezing while the building is vacant or unoccupied, unless the insured shall have exercised due diligence with respect to maintaining heat in the buildings or unless such equipment and appliances had been drained and the water supply shut off during such vacancy or unoccupancy; 5. theft (including but not limited to burglary and robbery) of any property which at the time of loss is not an integral part of a building or structure (except direct loss by pillage and looting oc- curring during and at the immediate place of a riot or civil com- motion), unless loss by a peril not excluded in this policy ensues from theft or attempted theft, and then the Company shall be liable for only such ensuing loss; 6. unexplained or mysterious disappearance of any property, or shortage disclosed on taking inventory, or caused by any willful or dishonest act or omission of the insured or any associate, em- ployee or agent of any insured; or 7. continuous or repeated seepage or leakage of water or steam from within a plumbing, heating or air conditioning system or from within a domestic appliance which occurs over a period of weeks,. months or years. VII. VALUATION The following bases are established for valuation of property: All property at actual cash value at the time of loss, but not exceeding the amount which it would cost to repair or replace the property with material MP 00 13 (Ed. 07 77) of like kind and quality within a reasonable time after such loss, nor in any event for more than the interest of the named insured. Page 2 of 2 -•- . _ _ _ _ SMP DEDUCTIBLE ENDORSEMEN , MP 03 31 (Ed. 12 793 m In consideration of the premium, the provisions of this deductible endorsement apply at the location number and building number to insurance afforded under Building(s) and Personal Property of the Insured of Section I of this Policy only when designated by an "Y in the box(es)•(M) in the Schedule of this endorsement. SCHEDULE Item Designated Property Loc. No. Bldg. No. Deductible Amount 1 ❑ Building(s) AS PER FORM iF156 ITEMS 250. ® Personal Property of the Insured $ 2 ❑ Building(s)' ❑ Personal Property of the Insured 1, C� CB) AND (C) IV., VI . $ 3 ❑ Building(s) ❑ Personal Property of the Insured AND VI I . $ 4 ❑ Building(s) ❑ Personal Property of the Insured $ 5 ❑ Building(s) ❑ Personal Property of the Insured $ 6 ❑ Building(s) ❑ Personal Property of the"Insured $ 1. The Company shall be liable for loss to property designated in any item of the Schedule of this endorsement at the location shown for such property,, only when the whole loss to such property exceeds the "Deductible Amount" specified in said Schedule and then only for the amount of such excess. In the event there is other insurance (whether collectible or not) covering the property (or which would have covered the property except for the existence of this insurance) against'the peril(s) which caused the loss, the conditions applicable to Contributing Insurance and Specific Insurance under Condi- tion 8, Other Insurance of the provisions applicable to Section I of this policy.shall apply. 2. The "whole loss" as used herein is defined as the amount which would be recoverable under this:policy and any other contributing insurance (whether collectible or not) covering the property (or which would have covered the property except for the existence of this insurance) against the peril(s) which caused the loss in any one occurrence, disregarding, this deductible endorsement and any other deductible provisions in this policy or in such other insurance policies. 3. The provisions of this deductible endorsement shall apply separately to each item of the Schedule of this endorsement. 4. The provisions of this deductible endorsement shall not apply to any loss by earthquake or volcanic eruption, if such perils are insured against by this policy. 11_19_80 M/Nf his Endorsement must be attached to Change Endorsement when issued after the Policy is written. MP 03 31 (Ed. 12 79) INDEMNITY COMPR,..—NSIVE PERSONAL PROPERTY JVERAGE •CRVMCFORSTER IIiAURUM I OTM Y PROPERTY COVERED: ®.Personal Property of the Insured [Personal Property of Others This policy is amended in accordance with the provisions contained herein at the locations shown below in the Schedule with respect to the coverage specified by an "X" in the box(es) (9) shown above.. The limit of liability stated for each location shall apply to all Personal Property of the Insured and Personal Property of Others combined. Except for Debris Removal and the Loss Clause, which are superseded by this endorsement, all the policy provisions not inconsistent with this endorsement apply. I. LIMITS OF LIABILITY THIS POLICY BEING FOR 100 % THE TOTAL CONTRIBUTING INSURANCE, LIABILITY OF THIS COMPANY IS LIMITED TO THE SAME PERCENTAGE OF ANY LOSS RESULTING FROM ONE OCCURRENCE REGARDLESS OF WHETHER ONE OR MORE PERILS CONTRIBUTE TO SUCH LOSS, AND IN NO EVENT TO EXCEED THE SAME PERCENTAGE OF EACH OF THE FOLLOWING LIMITS, BUT NO INSURANCE ATTACHES UNDER ANY ONE OR MORE OF THE FOLLOWING ITEMS UNLESS A SPECIFIC LIMIT IS INSERTED IN THE BLANK IMMEDIATELY OPPOSITE THE ITEM: LIMIT(S) OF LIABILITY FOR ALL CONTRIBUTING INSURANCE (A) Property at locations owned, leased, operated, regularly used, or specifically declared by the Insured, EXCEPT PROPERTY COVERED UNDER SECTIONS (B) OR ICI: Location —Street Address, City and State 1. $ 15,000 at 701 W. CIENEGA AVER SAN DIMAS, CA. 2. $ at 3. $ at 4. $ at 5. $ at 6. $ NOT COV. at any other location declared at the inception of this insurance, 7 $ NOT COV, at any new location acquired in the state in which this policy is issued IF INCLUDED IN THE NEXT SUCCEEDING MONTHLY REPORT OF VALUES as provided in III. "Reporting Provisions", paragraph B. (B) Property at locations not owned, leased, operated, or regularly used by the Insured, EXCEPT PROPERTY COVERED UNDER SECTIONS (A) OR (C): $ NOT COV. in the aggregate at all such locations NOT TO EXCEED $ NCn CQV- AT ANY ONE SUCH LOCATION. (C) Property in the following situations: 1. $ NET OV• in any one occurrence (and not to exceed $ NOT COV* per salesman) in the care, custody or control of Insured's salesmen away from the Insured's premises; 2 $ NOT Cav• in any one occurrence (and not to exceed $ NOT CW- per vehicle) in transit (OTHER THAN PROPERTY IN THE CARE, CUSTODY OR CONTROL OF SALESMEN) on vehicles owned, operated or leased by the Insured; 3. $ NOT COV. in any one occurrence while in the custody of carriers or bailees for hire OTHER THAN AIR CARRIERS OR AIR -FREIGHT FORWARDERS; 4. $ NOT COV• in any one occurrence while in the custody of air carriers or air freight forwarders. II. RATE AND PREMIUM [)�FLATANNUAL (NON-REPORTINGI: Coinsurance 90 % This policy is issued in consideration of a premium of $ 595 • for the period from 11-15-80 to 11�15�1 Section III. Reporting Provisions of this endorsement shall not apply. ❑ REPORTING: This policy is issued in consideration of a(n) Deposit Premium of $ Annual Deposit Premium: Payable at inception and on each anniversary. Monthly or Ouarterly Deposit Premium: Payable at inception and held by. the Company until expiration or cancellation. If the term of this policy is for more than one year, additional deposit premiums may be required by endorsement and the amount of subsequent deposit premiums may be amended. Rate: per per $100.60 of values reported. If this policy is for more than one year, the rate named herein may be amended by endorsement at any anniversary to this Company's then current rate. 1 P156 R5 (4/80) 11-19-80 M/M Page I of 4 ' � r 111. REPORTING PROVISIONS A. Provisional Amount Clause: The amount Of insurance provided for hentunder is .provisional and is the amount on which the advance premium is based, it being, the intent of this insurance, to insure hereunder the total actual cash value of the properly described herein subject to. the Limits of Liability for all Conhihuhng, Insurance. Any loss in excess of the limits stated in this policy shall be borne,by the insured, notwithstanding the requirement that piemium is to he adjusted on the basis Of full values reported B. Value Reporting Clause: The insured shall report in wriling to the Company the exact location of all property covered and the total actual cash value of such property at each location covered under L(A). and.the aggregate actual cash value of such property at all such locations covered under I:(B). as it the last day of each calendar month as follows: 1' Annual Adjustment: Such reports shall be due the Company no later than 30 days after the last day of each calendar month. 2. Monthly Adjustment: Such reports shall be due the Company no later than 30 days after the last day of each calendar month. 3. Quarterly Adjustment: Such reports shall be due the Company no later than 30 days after the last day of each quarter of the policy term and shall contain separate values for each month of the quarter 4. Newly Acquired Locations: In consideration of the extension of coverage, under 1.(A)7., to property at new locations acquired in the state in which this policy is issued, during the term of this policy, d.is agreed that the value of such property shall be reported to this Company within 30 days from the date such property becomes at the risk of the insured. Coverage is afforded under this item for a period of 30 days after date of acquisi- tion, or until this policy is endorsed to cover property at such acquired locations, whichever first occurs Al the time of any loss, if the insured has failed to file with the Company reports of values as above required, this policy, subject otherwise to all its terms and condi- tions, shall cover only at the locations and for not more than the amounts included in.the last report of values filed prior to the loss, and further, if such delinquent report is the first report of values herein required to be filed, liability shall be limited to 90% of the amount for which the Company would otherwise be liable. If the inception date of this policy is the last day of the calendar month, then the first report of values due shall show the total actual cash value as of that date. C. Full Reporting Clause: Liability under this policy shall not in any case exceed that proportion of any loss hereunder which the last value reported prior to the loss, at the location where the loss occurs, bears to the total actual cash value at the location on the date for which such report was made, covered under L(A) Liability for loss hereunder occurring at any location acquired since filing the last report (except as provided in the Value Reporting Clause) shall be apportioned in a like manner, except that the.proportion used shall be the relation that the values reported prior to the loss at all locations bear to the total actual cash values at all locations on the date for which such report was made, covered under L(A). Liability under this policy shall not in any case exceed that proportion of any loss hereunder which the last value reported prior to the loss bears to the total aggregate actual cash value of all such other locations on the date for which such report was made, covered under L(B) D. Premium Adjustment Clause: The premium slated in this policy is an advance premium only The actual premium consideration for the liability assumed hereunder shall be determined by application of the following 1. Annual Adjustment: An average of the total nwnthly values reported during the annual period for which the adjustment is being made shall be calculated. If the premium on such average at.the rate applying exceeds the deposit premium, the insured shall pay to the Company the additional premium for such excess. The Company shall refund to the insured any excess paid. 2. Monthly Adjustment: The premium consideration hereunder is payable monthly and shall be determined by applying the monthly rate to each monthly report of values The deposit premium held by the Company until expiration or cancelation shall -be applied against any unpaid premium due the Company; any excess shall be refunded to the insured. 3. Quarterly Adjustment: An average of the three monthly values reported during the quarter for which the adjustment is being made shall be calculated. The premium consideration hereunder is payable quarterly and shall be deter- mined by applying the quarterly rate to the average value. The deposit premium held by the Company until expiration or cancelation shall be applied against any unpaid premium due the Company: any excess shall be refunded to the insured. If the insured has failed to report values for any month or quarter, the Company, at its sole discretion and after 30 days' notice, may compute the actual premium for the adjustment period by substitution for such unreported values the limits of liability stated in this policy. Such substitution shall not be held to waive or modify any of the provisions of the Value Reporting or Full Reporting Clause, paragraphs III. B. and C. E. Debris Removal Clause (Limited Coverage): This insurance covers expense incurred in the removal of debris of the property covered, which may be occasioned by loss caused by any of the perils insured against in this policy. The total liability under this policy for both loss to property and debris removal expense shall not exceed the Company's proportion of 100% of the total actual cash value of the property covered at the location where the loss occurs, subject to the limits of liability and all other provisions of this policy. The Company shall not be liable for debris removal expense occasioned directly or indirectly by enforcement of any ordinance or law regulating the use, construction. repair or demolition of property. Debris removal expense shall not be considered in the determination of actual cash value in the application of any clause forming a part of this policy. IV. PROPERTY COVERED PERSONAL PROPERTY OF THE INSURED: Business personal property owned by the insured and usual to the occupancy of the insured. including the insured's interest in personal property owned by others to the extent of the value of labor, materials and charges furnished, performed or incurred by'the insured, all while (1) in or on the building(s). or (2) in the open (including within vehicles) on or within 100 feet of the designated premises. This coverage shall also include Tenants Improvements and Betterments. meaning the insureds use interest in fixtures. alterations, installations or additions consti- tuting a part of the building(s) occupied but not owned by the insured and made or acquired at the expense of the insured exclusive of rent paid by the insured. but which are not legally subject to a removal by the insured PERSONAL PROPERTY OF OTHERS: (Not applicable unless specified by "X' in box (®) on page 1 `) This insurance shall cover for the account of the owner(s) (other than the named insured) personal property belonging to others in the care, custody or control of the insured, while (1) in or on the huilding(s), or (2) in the open (including within vehicles) on or within 100 feet of the designated premises. Loss shall be adjusted with the named insured for the account of the owners of the property. except that the right to adjust any loss with the owners is reserved to the Company and the receipts of the owners in satisfaction thereof shall be in full satisfaction of any claim by the named insured for which payments have been made. "If not applicable, Extension of Coverage VILE. applies. PROPERTY NOT COVFRFD This policy does not cover. A. Property sold by the insured under conditional sale, trust agreement, installment payment or other deferred payment plan, after delivery to customers. B. Aircraft, watercraft, including motors, equipment and accessories (except rowboats and canoes, while out of water and on the designated premises); and automobiles, trailers, semi -trailers or, any self-propelled vehicles or machines, except such property not licensed for use on public thoroughfares and operated principally on the premises of the insured. This provision does not apply to the following types of property when held for sale or sold but not delivered: 1. Watercraft (including motors, equipment and accessories) while'not afloat 2. Motorcyles, motorscooters, motorized bicycles and snowmobiles, or 3. Trailers designed for use with private passenger vehicles for general utility purposes or carrying boats This provision does not apply to the following types of property when manufactured, processed or warehoused by the insured: 1. Aircraft: 2. Watercraft, including motors. equipment and accessories, while not afloat; or 3 Automobiles. trailers. semi -trailers or any self-propelled vehicles or machines. C. Property shipped by mail from the time it passes into the custody of the Post Office Department. D. Property while waterborne, except ferry operations incidental to other modes of transportation. Page 2 of 4 f-- E. Household and personal effects contained in living quarters occupied by the. insured, any officer, director, stockholder or partner of the insured or relatives of any of the foregoing, except as provided in the Extensions of Coverage. F. Accounts, bills, currency, deeds, evidences of debt, money and securities.. G. Growing crops and lawns. H. Properly which is more specifically covered in ;,hole or in part by this or any other contract of insurance, except for the amount of loss which is in excess of the amount due from such more specific insurance. VI. PROPERTY SUBJECT TO LIMITATIONS The following property is subject to these additional limitations: 1. Except for loss caused by the "specified perils": (a) Fur and fur garments are covered for not exceeding loss in the aggregate of $1,000 in any one occurrence for all contributing,insurance. (b) Jewelry and watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum and other precious alloys or metals are covered for not exceeding loss in the aggregate of $1.000 in any one occurrence for all contributing insurance. This limitation shall not apply to jewelry and watches valued at S25 or less per item (c) Stamps, tickets and letters of credit are covered for not exceeding loss in aggregate of $250 in any one occurrence for all contributing insurance. 2. Neon, automatic, and electric signs not held for sale are covered only against loss by the "specihed.perils" other than vandalism or malicious mischief 3. Animals and pets are not covered, except when held for sale or sold but not delivered, and then only against death or destruction directly resulting from or made necessary by the ''specified perils". 4. Outdoor trees, shrubs and plants are not covered, except when held for sale or sold but not delivered, and then only against direct loss by the "specified perils". 5. Glass, glassware, statuary, marbles, bric-a-brac, porcelains and other articles of a fragile or brittle nature are covered against loss by breakage only if directly caused by the "specified perils". This limitation shall not apply to bottles or similar containers of property for sale, or sold but not delivered, nor to lenses of photographic or scientific instruments. 6. Steam boilers, steam pipes, steam turbines and steam engines are not covered against loss caused by bursting, rupture, cracking or explosion originating therein (other than explosion of accumulated gases or unconsumed fuel within a fire box or combustion chamber). 7. Machines and machinery are not covered against loss caused by rupture, bursting or disintegration of their rotating or moving parts resulting from cen- trifugal or reciprocating force. The term "specified perils" shall mean direct loss by fire, lightning, aircraft, explo- sion, riot, civil commotion, smoke, vehicles, windstorm or hail to property contained in any building, vandalism and malicious mischief, leakage or accidental discharge from automatic fire protective systems. VII. EXTENSIONS OF COVERAGE Each of the limits of liability specified for the following Extensions of Coverage applies as an additional amount of insurance. The Coinsurance Clause shall not apply to loss under the Extensions of Coverage The total amount recoverable under the Extensions of Coverage in this form and Extensions of Coverage in any other form made a part of this policy are not cumulative and shall not exceed the largest amount recoverable under any single form made a part of this policy When, in accordance with the Other Insurance condition, there is Contributing Insurance, the Company shall not be liable for more than its pro rata share of the limits set forth in the following Extensions of Coverage. A. Personal Effects: The insured may apply up to $500 to cover direct loss in any one occurrence by the perils not otherwise excluded to personal effects while located on the designated premises, belonging to the insured, officers, partners or employees thereof, and limited to $100 on personal effects owned by any one individual This Extension of Coverage does not apply if the loss is covered by any other insurance, whether collectible or not, or which would have been covered by such other insurance in the absence of this policy At the option of the Company, loss under this Extension of Coverage may be adjusted with and payable to the insured. B. Valuable Papers and Records: The insured may apply up to-S500 to cover direct loss in any one occurrence by a peril not otherwise excluded to valuable papers and records consisting of books of account, manuscripts, abstracts, drawings, card index systems, film, tape. disc, drum, cell and other magnetic recording or storage media for electronic data processing, and other records, all the property of the insured at designated premises. This Extension of Coverage covers only the cut of research and other expense necessarily incurred by the insured to reproduce, replace or restore such valuable papers and records. The total amount payable in any one occurrence under, this Extension of Coverage shall not exceed the. limit specified above, regardless of the number of premises designated in the Declarations C. Extra Expense: The insured may apply up to 51.000 to cover the necessary extra expense incurred by the insured in order to continue as nearly as practicable the normal operations of the insured's business immediately following damage by a peril not otherwise excluded under this form to the buildings or personal property situated at the designated premises "Extra expense" means the excess of the total cost incurred during the period of restoration chargeable to the operations of the insured's business over and above the total cost that would normally have been incurred to conduct the business during the same period had no loss occurred. Any salvage value of property obtained for temporary use during the period of restoration. which remains after the resumption of normal operations, shall be taken into consideration in the adjustment of any loss hereunder "Period of restoration" means that period of time, commencing with the date of damage and not limited by the date of expiration of this policy, as would be required with the exercise of due diligence and dispatch to repair, rebuild or replace such part of said buildings or personal property as have been damaged. The Company shall not be liable under this Extension of Coverage for: I. loss of income: 2. the cost of repairing or replacing any of the described property, or the cost of research or. other expense necessary to replace or restore books of account, manuscripts, abstracts, drawings, card index systems, film, tape, disc, drum, cell and other, magnetic recording or storage media for electronic data processing, and other records that have been damaged by a peril not otherwise excluded, except cost in excess of the normal cost of such repair, replacement or restora- tion necessarily incurred for the purpose of reducing the total amount of extra expense. In no event shall such excess exceed the amount by which the total extra expense otherwise payable under this Extension of Coverage is reduced-, or 3 any other consequential or remote loss. D. Damage to Buildings from Theft, Burglary or Robbery: This policy includes loss (except by fires or explosion) to that part of the building occupied by the insured and containing property covered, and to equipment therein pertaining to the service of the building but not building property or equipment removed from premises, directly resulting from theft, burglary or robbery (including attempt thereat), provided the insured is the owner of such building or equipment or is liable for such damage, but in no event shall this coverage apply to glass (other than glass building blocks) or to any lettering or ornamentation thereon E. Non -Owned Personal Property: (Not applicable if Personal Properly of Others specified by X') The insured may apply at each location up to 2% of the limit of liability specified for Personal Property of the insured at such location, but not exceeding_ $2,000, as an additional amount of insurance, to cover for the account of the owners thereof (other than the named insured) direct loss by a peril not otherwise excluded to personal property, similar to that covered by this policy, belonging to others while in the care, custody or control of the named insured and all while (1) in or on the building(s). or (2) in the open (including within vehicles) on or within 100 feel of the designated premises. Loss shall be adjusted with the named insured for the account of the owners of the property, except that the right to adjust any loss with the owners is reserved by the Company and the receipts of the owners in satisfaction thereof shall be in full satisfaction of any claim by the named insured for which payments have been made. As respects personal property belonging to others. this provision shall replace any loss payable provision of this policy. F. Consequential Loss: This policy includes consequential loss to the property covered when caused by change in temperature or humidity resulting from fire, lightning, windstorm or had, aircraft. explosion, smoke, vehicles, or leakage from automatic sprinkler systems to equipment used for refrigerating, cooling, humidify- ing, dehumidifying, airconditioning, heating, generating or converting power, including their connections and supply or transmission lines and pipes, only when said equipment is within the building where the loss occurs and the connections and supply or transmission lines and pipes are on the designated premises. G. Contingent Interest: This policy covers the contingent interest of the insured in shipments sold by the insured on "free on board" or "freight allowed" terms, providing any loss recoverable under this policy is not collectible from the purchaser or any other insurance that would have attached if this policy had not been issued. Page 3 of 4 Vill. PERILS INSURED AGAINST This policy insures against all risks of direct physical loss subject to the provisions and stipulations herein and in the policy of which this forrr is made a part. IX. EXCLUSIONS A. This policy does not insure under this form against loss caused by: 1. enforcement of any ordinance or law regulating the use, construction, repair, .or demolition of property, including debris removal expense, 2. unexplained or mysterious disappearance of property (except. property in the custody of carriers for hire), or shortage of property disclosed on taking inventory; 3. actual work upon or installation of property covered, latent defect, failure, breakdown, or derangement of machines or machinery, faulty materials or work- manship, all unless loss by fire or explosion ensues, and then only for such ensuing loss; 4. electrical injury or disturbance to electrical appliances, devices, fixtures, or wiring caused by electrical currents artificially generated, all unless loss by fire ensues, and then only for such ensuing loss; 5. delay, loss of market, loss of use, any legal proceeding, interruption of busi- ness, or consequential loss other than as provided in Section VII J9;, 6. inherent vice, wear and tear, marring or scratching, gradual deterioration, moths, or vermin; 7. rain, snow or sleet to property in the open (other than properly in the custody of carriers for hire); 8. dampness or dryness of atmosphere, changes in temperature, rust or corro- sion, shrinkage, evaporation, loss of weight, leakage of contents, exposure to light. contamination, change in flavor, or color, or texture, or finish, all unless such loss or damage to the property insured is caused directly by fire or the combating thereof, lightning, windstorm, hail, explosion, strike, riot or civil commotion, aircraft, vehicles other than transporting conveyances, sprinkler leakage (but not including loss by sprinkler leakage due to earthquake or other earth movement), vandalism, malicious mischief, theft, 'attempted theft; or casualty occurring to conveyance used in transporting the property; 9. voluntary parting with title or possession of any property by the insured or others to whom the property may be entrusted (except by carriers for hire) if induced to do so by a fraudulent scheme, trick, device, or false pretense, or any fraudulent, dishonest, or criminal act done by or at the instigation of any insured, partner, or joint adventurer in or of any insured, an officer, director or trustee of any insured; pilferage, appropriation or concealment of any property covered due to any fraudulent, dishonest, or criminal act of any employee while working or otherwise, or agent of any insured, or any person to whom the property covered may be entrusted, other than any carrier for hire, 10. theft (including attempt. thereat) from any vehicle occurring while such vehicle is unattended, unless the property is contained in a fully enclosed and securely locked body or compartment and theft results from forcible entry evidenced by visible marks (this exclusion shall not apply to property in the custody of carriers for hire); 11. or resulting from neglect of the insured to use all.reasonable.means to save and preserve the property at and after a loss. B. This policy does not insure under this form against loss caused directly or indirectly by the interruption of power or other utility service furnished to the designated premises if the interruption takes place away from the designated premises. If a peril insured against ensues on the designated premises, this Com- pany will pay only for loss caused by the ensuing peril. C. This policy does not insure under this form against loss caused by, resulting from, contributed to or aggravated by any of the following: 1. earth movement, including but not limited to earthquake, landslide, mudflow, earth sinking, earth rising or shifting, 2. flood, surface water, waves, tidal water or tidal waves, overflow of streams or other bodies of water, or spray from any of the foregoing, all whether driven by wind or not; 3. water which backs up through sewers or drains; or 4. water below the surface of the ground including that which exerts pressure on or flows, seeps or leaks through sidewalks, driveways, foundations, walls, base- ment or other floors, or through doors, windows or any other openings in such sidewalks. driveways, foundations, walls or floors; unless fire or explosion as insured against ensues. and then this Company shall be liable for only loss caused by the ensuing fire or explosion, but these exclusions shall not apply to loss arising from theft. X. VALUATION The following bases are established for valuation of property: A. The value of all stock actually sold but not delivered shall be the price at which it was sold, less all discounts and unincurred expenses. B. Tenants' Improvements and Betterments 1. If repaired or replaced at the expense of the named insured within a reasonable time after loss, the actual cash value of the damaged or destroyed improvements and betterments 2. If not repaired or replaced within a reasonable time after loss, that proportion of the original cost at time of installation of the damaged or destroyed property which the unexpired term of the lease or rental agreement, whether written or oral, in effect at the time of loss bears to the periods from the dates such improve- ments or betterments were made to the expiration date of the lease 3. If repaired or replaced at the expense of others for the use of the named insured, there shall be no liability hereunder C. Valuable Papers and Records: 1. Books of account, manuscripts, abstracts, drawings, card index systems and other records (except film, tape, disc, drum, cell and other magnetic recording or storage media for electronic data processing) for not exceeding the cost of blank books, cards or other blank material plus the cost of labor incurred by the named insured for transcribing or copying such records. 2: Film, tape, disc. drum, cell and other magnetic recording or storage media for electronic data processing for not exceeding the cost of such media in unexposed or blank form. D. All other property at actual cash value at the time of loss, but not exceeding the amount which it would cost to repair or replace the property with material of like kind and quality within a reasonable time after such loss, nor in any event for more than the interest of the named insured. Page 4 of 4 I INDUSTRIALINDEMNITY r r 1 INSTALLATION RISK FLOATER 1. INTEREST AND PROPERTY INSURED: This Policy covers machinery and equipment consisting of PORTABLE METAL BUILDING the property of the Insured or the property of others for which the Insured shall be liable or shall have assumed liability to be used in the installation work being performed by the Insured. 2. DEDUCTIBLE: Each claim for loss or damage (separately occurring)_ shall be adjusted separately and from each adjusted claim the following amounts shall be deducted: (a) Theft, vandalism and malicious mischief $ 250. (b) Loading and unloading $ 250. (c) All other perils $ 250. 3. LIMITS OF LIABILITY: The maximum liability of this Company for any one loss, casualty or disaster, regardless of whether one or more perils contribute to such loss, shall in no event exceed: (a) $ 20,000 at the site of installation (b) $ NOT COVERED at any other location (c) $ 5,000 in transit 4. Rate .120 Deposit premium $540. 5. COMMENCEMENT AND DURATION OF RISK: Insurance hereunder attaches from the moment the insured property becomes at risk of the Insured, covers continually thereafter including: (a) While in transit within the territorial limits of this Policy; (b) While temporarily stored in warehouses or other place of storage or deposit (except premises owned or leased by the Insured) awaiting transit to installation site; (c) While at the installation site awaiting and during installation; But in no event after the interest of the Insured ceases, the property is accepted as satisfactory or the expiration of the insurance, whichever first occurs. 6. PROPERTY EXCLUDED: This Policy does not insure: 4a1-raritcactor�-taalcaariequiWueat; DELETED. (b) Motor vehicles, trailers or other conveyances or their appurtenances or accessories; (c) Property shipped via waterborne transportation other than incidental public ferry transportation operated on a sched- uled route; (d) Growing plants; animals, watercraft or aircraft; (e) Electrical appliances or devices (including wiring) against loss by artificially generated electrical currents; steam boilers, steam pipes, steam turbines, steam engines or flywheels against loss by bursting, rupture or explosion of such objects (other than explosion or accumulated gases or unconsumed fuel within a fire box or combustion chamber); machines or machinery by rupture, bursting or disintegrating or rotating or moving parts; (f) Land or land value. IM05215/72) PAGE I 11-19-80 M/M 7. PERILS INSURED AGAINST: This Policy insures, except as provided elsewhere in this Policy, against direct physical loss of or damage to the insured property caused by: (a) Fire or lightning; (b) Explosion; (c) Cyclone, tornado, windstorm or hail; (d) Collapse of bridges or culverts or docks or loading platforms; (e) Theft; (f) Strike, riot and civil commotion; (g) Malicious mischief or vandalism; (h) Aircraft and objects falling therefrom; (i) Collision, derailment, upset or overturning of land conveyances while the insured property is being transported thereon; (j) Perils of the seas while on any inland regular ferry, including general average and salvage charges incurred. 8. PERILS EXCLUDED: This Policy does not insure against loss or damage caused by or resulting from: (a) Earthquake, landslide or other earth movement, but this exclusion shall not apply to property in transit, nor to ensuing loss resulting from fire, explosion or smoke; (b) Flood, surface water, waves, tidal water or tidal wave, overflow of streams or other bodies of water, or spray from any of the foregoing, all whether driven by wind or not; (c) Unexplained loss or mysterious disappearance of property (except property in the custody of carriers for hire); or loss or shortage of property disclosed on taking inventory; (d) Mechanical breakdown, inherent vice or defect, wear and tear or gradual deterioration; (e) Testing operations unless fire or explosion ensues, and then only for loss or damage by such ensuing fire or explosion; (f) 'Misappropriation, secretion, conversion, infidelity or any dishonest act on the part of the Insured or other party of interest, his or their employees or agents or others to whom the property may be entrusted (carriers for hire excepted); (g) Delay, loss of market or use, indirect or consequential loss of any kind, penalty for noncompletion of or delays in completion of contract or. noncompliance with contract conditions; (h) Error, omission or deficiency in design, specifications, materials or workmanship unless fire or explosion ensues and then only for the loss, damage or expense resulting from such fire or explosion; (i) The weight of the load exceeding the registered lifting capacity of any machine, crane, or hoisting apparatus;_ (j) Order of any civil authority (except acts of destruction at the time of and for the purpose of preventing the spread of fire, provided that such fire did not originate from any peril excluded under this policy); (k) Nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the perils insured against in this Policy; however, subject to the foregoing and all provisions of this Policy, direct loss by "fire" resulting from nuclear reaction or radiation contamination is insured against by this Policy: (1) (1) Hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual; impending or expected attack, (i) by any government or sovereign power (de jure or de facto), or by any authority maintaining or using military, naval or air forces, or (ii) by military, naval or air forces, or (iii) by an agent of any such government, power, authority, or forces, it being understood that.any discharge, explosion or use of any weapon of war employing atomic fission or radioactive force shall be conclusively presumed to be such a hostile or warlike action by such a government, power, authority or forces; (2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hinder- ing, combating, or defending against such an occurrence, seizure or destruction under quarantine or regulations, confiscation by order of any government or public authority, or risks of contraband or illegal transportation of trade. 9. VALUATION: This Company shall not be liable beyond the actual cash value of the property insured at the time any loss or damage. occurs plus, labor and other charges and expenses accrued, but not exceeding the. amount which it would cost to repair or replace the same with material of like kind and,quality. 10 MONTHLY REPORTS: The Insured agrees to keep an accurate record of its business, and on or before the 10th day of each month to report to this Company or its duly authorized agent the full amount of gross receipts (whether collected or uncollected) from their business during the preceding month for such time as is within the policy period and to pay +�- premium thereon at the rate indicated in this Policy per $100 of such gross receipts. 1M052 (5/72) PAGE 2 11. FULL REPORTING CLAUSE: In event of loss of.or damage to property insured hereunder, the liability of this Company shall in no event exceed a greater proportion of such loss or damage than the total gross receipts last reported by the Insured prior to such loss or damage bear to the actual total gross receipts for the period for which such report was made. 12. DEPOSIT PREMIUM: This Policy is issued in consideration of the deposit premium indicated in this Policy which shall be held by the Company to the credit of the Insured and applied against the last reports submitted here -under in the event of cancelation by either party. 13.. AUDIT: This Company through any authorized representative and at all reasonable times shall have access to the Insured's books and records for the purpose of determining any fact relating to this insurance: 14. PROPERTY OF OTHERS: In case of claim for loss or damage to property of others, the right to adjust such loss or damage with the owner or owners of the property isreserved to this Company and the receipt of such owner or owners in satisfaction thereof shall be in full satisfaction of any claim of the Insured for which such payment has been made. 15. CARRIERS OR BAILEES: This insurance shall not inure directly or indirectly to the benefit of any carrier or any other bailee. The Insured may accept without prejudice to this insurance the ordinary bills of lading used by common carriers, including released or partially released value bills of lading, and the Insured may waive subrogation against railroads under. Side Track Agreements, and except as otherwise provided, the Insured shall not enter into any special agreement with carriers otherwise releasing them from their common law or statutory liability. The Company shall not be liable for any loss or damage which, without its consent, has been settled or compromised by the Insured. 16. CANCELATION: This Policy may be canceled by the Insured by mailing to the Company written notice stating when thereafter such cancelation shall be effective. This Policy may be canceled by the Company by mailing to the Insured at the address shown in this Policy written notice stating when not less than ten days thereafter such cancelation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date of cancelation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the Insured or by the Company shall be equivalent to mailing. If the Insured cancels, earned premiums shall be computed in accordance with the customary short rate table and proce- dure. If the Company cancels, earned premiums shall be computed pro rata. Premium adjustment may be made at the time cancelation is effected and, if not then made, shall be made as soon as practicable after cancelation becomes effective. The Company's check or the check of its representative mailed or delivered as aforesaid shall be sufficient tender of any refund or premium due_to the insured. 17. CONFORMITY TO STATUTES: Terms of this Policy which are in conflict with the' statutes of the State wherein this Policy is issued are hereby amended to conform to statutes. 18. ALL OTHER MATTERS: All matters not provided -for herein or by endorsement hereon shall be governed by the terms and conditions of the Company's printed Policy form to which this form is attached and which has been issued in conjunc- tion herewith. The foregoing clauses shall, however, be considered to supersede and annul any clause or clauses which may be of the same or similar nature. 1 M052 I5/72) PAGE 3 COMPREHENSIVE OFFICE EQUIPMENT FORM 1. INSURING AGREEMENT: In consideration of the premium for this coverage and subject to the provisions herein and in the policy to which this form is attached including endorsements thereon, this policy insures against.ALL RISKS OF PHYSICAL LOSS OF OR DAMAGE: TO THE PROI'VRI'Y COVERED HEREUNDER FROM ANY EXTERNAL CAUSE, EXCEPT AS HEREINAFTER EXCLUDED. 2. PROPERTY COVERED: This policy covers: Business Personal Property of every description consisting principally of furniture, equipment and supplies usual and incidental to the operation of an office in the conduct of the Insured's business as WTAL-nWORKER _ , all being the property of the Insured or similar property- of others held by the Insured for which the Insured is liable, and Tenants Improvements and Betterments (meaning the Insured's use interest in fixtures, alterations, installations or additions comprising a part of a building occupied but not owned by the Insured, or made or acquired at the expense of the Insured, but which are not legally subject to removal by the Insured) EXCEPT AS PROVIDED ELSEWHERE IN THIS POLICY. 3. LIMITS OF LIABILITY: ITEM LIMIT OF LIABILITY A. $ 10, 000 B. $ C. $ D. $ E. $ 4. DEDUCTIBLE CLAUSE: SCHEDULE OF LIMITS LOCATION: Street Address and City 345 WALNUT AVENUE, ARCADIA, CA. Each cl�j�p for loss or damage (separately occurring) shall. be adjusted separately and from the amount of each such adjusted claim the sum of $ . shall be deducted, or, if there is contributing insurance, this Company's pro-rata share thereof. 5. AVERAGE CLAUSE: THIS COMPANY SHALL NOT BE LIABLE FOR A GREATER PROPORTION OF ANY LOSS LESS THE AMOUNT OF THE DEDUCTIBLE, IF ANY, OF OR TO THE PROPERTY COVERED UNDER ANY ITEM OF THIS POLICY THAN THE AMOUNT WHICH THIS CONIPANY'S PER ENTAGE OF THE SPECIFIED LIMIT OF LIABILITY FOR ALL CONTRIBUTING INSURANCE FOR SUCH ITEM BEARS TO 0 % OF THE ACTUAL CASH VALUE OF ALL PROPERTY INSURED UNDER SUCH ITEM AT THE TIME OF LOSS. Cost of removal of debris shall not be considered in the determination of Actual Cash Value when applying this clause. This clause shall not apply to Paragraph 12, Extensions of Coverage, nor to property in transit. 6. WAIVER OF INVENTORY AND APPRAISEMENT CLAUSE: When an aggregate claim for any loss hereunder is both less than $10,000.00 and less than 5% of the total amount of insurance upon the property described herein at the time such loss occurs, it shall not be necessary for the Insured to make a special inventory or appraisement of the undamaged property, BUT NOTHING HEREIN CONTAINED SHALL OPERATE TO WAIVE THE APPLICATION OF THE AVERAGE CLAUSE TO ANY SUCH LOSS. 7. PROPERTY EXCLUDED: UNLESS OTHERWISE PROVIDED BY ENDORSEMENT HEREON, THIS POLICY DOES NOT INSURE: A. STOCKS OF MERCHANDISE, AND MATERIALS AND SUPPLIES ENTERING INTO THEIR MANUFACTURE, STORAGE OR SALE, BUT THIS EXCLUSION SHALL NOT APPLY TO INCIDENTAL DRUGS AND SUPPLIES USED IN MEDICAL PRACTICE BY THE INSURED AND NOT OTHERWISE HELD FOR SALE; B. CURRENCY, MONEY AND STAMPS, EXCEPT TO THE EXTENT PROVIDED IN PARAGRAPH 1213; . C. VALUABLE PAPERS AND RECORDS, BOOKS OF ACCOUNT, MANUSCRIPTS, DRAWINGS, CARD INDEX SYSTEMS OR OTHER BUSINESS RECORDS, EXCEPT TO THE EXTENT PROVIDED IN PARAGRAPH 1213; D. BILLS, DEEDS, EVIDENCES OF DEBT, LETTERS OF CREDIT, TICKETS, SECURITIES AND BULLION; E. VEHICLES, INCLUDING SELF-PROPELLED MACHINES, EXCEPT MOTORIZED EQUIPMENT NOT LICENSED FOR USE ON PUBLIC THOROUGHFARES AND OPERATED PRINCIPALLY ON THE PREMISES OF THE INSURED; AIRCRAFT, WATERCRAFT, INCLUD- ING MOTORS, EQUIPMENT AND ACCESSORIES (EXCEPT ROWBOATS AND CANOES WHILE OUT OF THE WATER AND ONTHE DESCRIBED PREMISES), ANIMALS AND BIRDS; F. PROPERTY WHICH IS MORE SPECIFICALLY INSURED IN WHOLE OR IN PART UNDER THIS OR ANY OTHER CONTRACT OF INSURANCE; G. FUR, FUR GARMENTS, JEWELRY AND WATCHES, WATCH MOVEMENT, JEWELS, PEARLS, PRECIOUS AND SEMI-PRECIOUS STONES, GOLD, SILVER, PLATINUM AND OTHER PRECIOUS ALLOYS OR METALS; H. PROPERTY SHIPPED BY MAIL FROM THE TIME IT PASSES INTO THE CUSTODY OF THE POST OFFICE DEPARTMENT. 8. PERILS EXCLUDED: UNLESS SUCH LIABILITY IS OTHERWISE SPECIFICALLY ASSUMED BY ENDORSEMENT HEREON, THIS POLICY DOES NOT INSURE AGAINST: A. LOSS CAUSED BY DETERIORATION, RUST, MOULD, MECHANICAL BREAKDOWN, MARRING, SCRATCHING, CHIPPING, INHERENT VICE, WEAR AND TEAR, MOTHS, VERMIN, DAMPNESS OR DRYNESS OF ATMOSPHERE, CHANGES IN T'E\IPERA- TURE OR CORROSION, UNLESS LOSS FROM A PERIL NOT EXCLUDED BY THIS POLICY ENSUES, AND THEN ONLY FOR SUCH ENSUING LOSS; B. LOSS CAUSED BY ELECTRICAL CURRENTS ARTIFICIALLY GENERATED UNLESS LOSS BY FIRE OR EXPLOSION NOT OTHERWISE EXCLUDED ENSUES, AND THEN THE COMPANY SHALL BE LIABLE FOR ONLY SUCH ENSUING LOSS; C. LOSS CAUSED BY ACTUAL WORK UPON OR INSTALLATION OF PROPERTY COVERED, LATENT DEFECT, FAILURE, BREAK- DOWN OR DERANGEMENT OF MACHINES OR MACHINERY, FAULTY MATERIALS OR WORKMANSHIP; UNLESS LOSS BY FIRE OR EXPLOSION ENSUES AND THEN ONLY FOR SUCH ENSUING LOSS; D. LOSS CAUSED BY VOLUNTARY PARTING WITH TITLE OR POSSESSION OF ANY PROPERTY BY THE INSURED OR OTHERS TO WHOM THE PROPERTY MAY BE ENTRUSTED (EXCEPT BY CARRIERS FOR (TIRE) IF INDUCTED TO DO SO BY A FRAUDULENT SCHEME, TRICK, DEVICE, OR FALSE PRETENSE, OR ANY FRAUDULENT, DISHONEST, OR CRIMINAL ACT DONE BY OR AT THE INSTIGATION OF ANY INSURED, PARTNER, OR JOINT ADVENTURER IN OR OF ANY INSURED, AN OFFICER, DIRECTOR OR TRUSTEE OF ANY INSURED; PILFERAGE, APPROPRIATION OR CONCEALMENT OF ANY PROPERTY COVERED DUE TO ANY FRAUDULENT, DISHONEST, OR CRIMINAL ACT OF ANY EMPLOYEE WHILE WORKING OR OTHERWISE, OR AGENT OF ANY INSURED, OR ANY PERSON TO WHOM THE PROPERTY COVERED MAY BE ENTRUSTED, OTHER THAN ANY CARRIER FOR HIRE; 1F164 R4.11/72l (OVER) '.\�". t•r•4 .. «..^�"Or r..�t.. nati� ••W. �,,,y,�.a .L4 •.i4W,.r., E. UNEXPLAINED LOSS, MYSTERIOUS DISAPPEARANCE, LOSS OR SHORTAGE DISCLOSED ON TAKING INVENTORY; F. LOSS CAUSED BY, RESULTING FROM, CONTRIBUTED TO OR AGGRAVATED BY ANY OF THE: FOLLOWING: I. EARTHQUAKE, LANDSLIDE, OR OTHER EAR-111 MOVEMENT (UNLESS LOSS BY FIRE OR EXPLOSION ENSUES, AND THEN ONLY FOR SUCH ENSUING LOSS), BUT THIS EXCLUSION DOES NOT APPLY TO PROPERTY IN 'TRANSIT; 2. FLOOD, SURFACE WATER, WAVES, 'TIDAL WATER OR TIDAL WAVE, OVERFLOW OF STREAMS OR OTHER BODIES OF WATER, OR SPRAY FROM ANY OF THE FOREGOING, ALL WHETHER DRIVEN BY WIND OR NOT; 3. WATER WHICH BACKS UP THROUGH SEWERS OR DRAINS; 4. WATER BELOW THE SURFACE OF THE GROUND INCLUDING THAT WHICH EXERTS PRESSURE ON OR FLOWS, SEEPS, OR LEAKS THROUGH SIDEWALKS, DRIVEWAYS, FOUNDATIONS, WALLS, BASEMENT OR OTHER' FLOORS OR THROUGH DOORS, WINDOWS, OR ANY OTHER OPENINGS IN SUCH SIDEWALKS, DRIVEWAYS, FOUNDATIONS, WALLS OR FLOORS; ALI. UNI.ESS LOSS BY FIRE OR EXPLOSION ENSUES, AND 'Tills COMPANY SHALL THEN BE LIABLE ONLY FOR SUCH ENSUING LOSS, BUT THESE EXCLUSIONS SHALL NOT APPLY TO PROPERTY IN DUE COURSE OF TRANSIT, OR TO LOSS ARISING FRONI THEFT; G. THEFT (INCLUDING ATTEMPT THEREAT) OF PROPERTY WHILE UNATTENDED IN OR ON ANY VEHICLE OR TRAILER, UNLESS CONTAINED IN A FULLY ENCLOSED AND SECURELY LOCKED BODY OR COMPARTNIENT OF SUCH VEHICLE AND THEFT RESULTS FROM FORCIBLE ENTRY, EVIDENCED BY VISIBLE NIARKS, INTO THE BODY OR COMPARTMENT BUT THIS EXCLUSION SHALL NOT APPLY. TO PROPERTY IN THE CUSTODY OF CARRIERS OR BAILEES FOR HIRE; H. LOSS CAUSED BY RAIN, HAIL, SNOW OR SLEET TO PROPERTY IN THE OPEN (OTHER THAN PROPERTY INTHE CUSTODY OF CARRIERS FOR HIRE); " I. LOSS CAUSED BY DELAY, LOSS OF MARKET Olt CONSEQUENTIAL LOSS OF ANY NATURE, OR LOSS CAUSED BY ANY LEGAL PROCEEDING. 9. WAR RISK EXCLUSION CLAUSE: (TEAS CLAUSE APPLIES TO ALL PERILS INSURED AGAINST HEREUNDER EXCEPT THE PERILS OF FIRE AND LIGHTNING, WHICH ARE OTHERWISE PROVIDED FOR, IN THIS POLICY.) THIS COMPANY SHALL NOT BE LIABLE FOR LOSS CAUSED DIRECTLY OR INDIRECTLY BY (a) HOSTILE OR WARLIKE ACTION IN TIME OF PEACE OR WAR, INCLUDING ACTION IN HINDERING, COMBATING OR DEFENDING AGAINST AN ACTUAL, IMPENDING OR EXPECTED ATTACK, (1) BY ANN' GOVERN- MENT OR SOVEREIGN POWER (DE JURE OR DE FACTO), OR BY ANY AUTHORITY MAINTAINING OR USING MILITARY, NAVAL. OR AIR FORCES; OR (2) BY MILITARY, NAVAL OR AIR FORCES; or (3) BY AN AGENT OF ANY SUCH GOVERNMENT, POWER, AUTHORITY OR FORCES, IT BEING" UNDERSTOOD THAT ANY DISCHARGE, EXPLOSION OR USE OF ANY WEAPON OF WAR EMPLOYING NUCLEAR FISSION OR FUSION SHALL BE CONCLUSIVELY PRESUMED TO BE: SUCH A HOSTILE OR WARLIKE. ACTION BY SUCH A GOVERNMENT, POWER, AUTHORITY OR FORCES; (b) INSURRECTION, REBELLION, REVOLUTION, CIVIL. WAR, USURPED POWER, OR ACTION TAKEN BY GOVERNMENTAL AUTHORITY IN HINDERING, COMBATING OR DEFENDING AGAINST SUCH AN -OCCURRENCE. 10. NUCLEAR CLAUSE: THE.WORD "FIRE" IN THIS POLICY OR ENDORSEMENTS ATTACHED HERETO'IS NOT INTENDF,D'1.O AND DOES NOT 1::NIBRACE NUCLEAR REACTION OR NUCLEAR RADIATION OR RADIOACTIVE CONTAMINATION, A1.1. WHETHER CONTROLLI';D OR UNCONTROLLED, AND LOSS BY NUCLEAR REACTION OR NUCLEAR RADIATION OR RADIOACTIVE CONTAMINATION 1S NOT INTENDED TO BE AND IS NOT INSURED AGAINST BY THIS POLICY OR SAID ENDORSEMENTS, WHETHER SUCH LOSS BE DIRECT OR INDIRECT, PROXIMATE OR REMOTE, OR BE IN WHOLE OR IN PART CAUSED BN', CON I'RIBUTFID -1.0, OR AGGRA- VATED BY "FIRE" OR ANY OTHER PERILS INSURED AGAINST BY THIS POLICY OR SAID I•.NDORSENIF.NT'S; HOWEVER, SUB.1F.CI• TO THE FOREGOING AND ALL PROVISIONS OF'Tii1S POLICY, DIRECT LOSS Ill' "1 Iltl." RESULTING FROM NUCLEAR REACTION OR NUCLEAR RADIATION OR RADIOACTIVE CONTAMINATION IS INSURED AGAINST BN' 'FII1S POI•ICY. 11. NUCLEAR EXCLUSION: ('PHIS CLAUSE APPLIES TO ALI, PERILS INSURED AGAINST HF,REUNDLR EXCLPT'Fill•. PERILS OF FIRE: AND 1.1(dHNING, WHICH ARE OTHERWISE PROVIDED FOR IN THE NUCLEAR CLAUSE: AT'IACll1:0 TO TLIIS POLICY.) LOSS BY NUCLI%AR READ TION OR NUCLEAR RADIATION OR RADIOACTIVE (:ONTAII►NA-I'10N, AI.l. \\'HF I IILR CON'I ROI,LF.D ()It UNCON'I'ROLIl.1), OR DUE TO ANY' ACT OR CONDITION INCIDENT TO ANY OF THE FOREGOENG, IS NOI' INSURED AGAINST BN' 1'IIIS I'OI,ICY, WHETHER SUCH LOSS BE DIRECT OR INDIRECT, PROXIMATE OR REV011%, OR BE IN WHOLE OR IN l'AR'1 CAUSED BY, CONTRIBUTED TO, OR AGGRAVATED BY ANY OF THE PERILS INSURED AGAINST BY THIS POLICY. 12. EXTENSIONS OF COVERAGE: A. Extra Expense: The Insured may apply up to 10% of the limit of liability for all contributing insurance at the location invoked, BUT NOT EXCEEDING $1,000 IN ANY ONE OCCURRENCE, to cover the extra expense necessarily incurred by the Insured to continue normal office operations which are interrupted as a result of loss by a peril insured against to the property covered hereunder while in the building(s) at such location, BUT ON!.Y FOR THE PERIOD OF TIME REQUIRED WITH THE EXERCISE OF DUE DILIGENCE AND DISPATCH TO RESTORE NORMAL OPERATIONS. B. Currency, Money and Stamps: Coverage under this policy includes loss of currency, money, and stamps in the premises, or while being conveyed outside the premises by an :nsurcd, or by an employee of the Insured, BUT LIABILITY OF ALL CONTRIBUTING INSURANCE UNDER THIS EXTENSION SHALL NOT EXCEED $250 IN ANY ONE OCCURRENCE. C. Personal Effects: The Insured may apply up to 5% of the limit of liability specified for all contributing insurance at the location involved to cover loss to: 1. Business Personal Property belonging to officers and partners, IF NOT OTHERWISE INSURED; 2. Personal Effects, the property of the Insured or others in the premises of the Insured, IF NOT OTHERWISE INSURED; CAUSED BY FIRE, LIGHTNING, AIRCRAFT, EXPLOSION, RIOT, CIVIL COMMOTION, SMOKE, VEHICLES, WINDSTORM OR HAIL, VANDALISM AND MALICIOUS MISCHIEF, LEAKAGE OR ACCIDENTAL DISCHARGE FROM AUTOMATIC; SPRINKLER SYSTEMS. At the option of this Company, losses to property of others covered under this extension may be adjusted with and payable to the insured. D. Valuable Papers and Records: The coverage under this policy includes. the extra expense necessarily incurred in the reproduction of books of account, manuscripts, drawings, card index systems and other business records, all the property of the Insured, BUT THE LIABILITY OF ALL CONTRIBUTING INSURANCE UNDER THIS EXTENSION SHALL NOT EXCEED $500 IN ANY ONE OCCURRENCE. E. Theft Damage to Buildings: This policy includes loss (EXCEPT BY FIRE OR EXPLOSION) to that part of the building(s) occupied by the Insured and containing property covered, and to equipment therein pertaining to the service of the building directly resulting from theft (including attempt thereat) Orovidcd the Insured is the owner of such building or such equipment or is liable for such damage, BUT IN NO EVENT SHALL THIS COVERAGE APPLY TO GLASS (OTHER THAN GLASS BUILDING BLOCKS) OR TO ANN' I.E'17ERING OR ORNAMENTATION THEREON. F. Off Premises: The Insured may apply up to 10%, but not exceeding $10,000, of the amount of insurance applicable to Business Personal Property, to cover direct loss in any occurrence by a peril not otherwise excluded to such property while away from the premises (not exceeding 30 consecutive days), but within the 50 states of the United States of America, the District of Columbia and in transit within and between such places, anc- in transit between such places and the Dominion of Canada. (CONTINUED) G. Newly Acquired Property: The Insured may apply up to 10%, but not exceeding $10,000, of the limit of liability specified for Business Personal Property to cover direct loss in any one occurrence by a peril not otherwise excluded to such property at any location (except fairs and exhibitions) acquired by the Insured for mercantile or warehouse purposes, elsewhere than at the described locations within the territorial limits of this policy. This coverage shall cease 30 days from the date of such acquisition or on the date values at such locations are reported to the Company, or on the expiration date of the policy, whichever occurs first. Additional premium shall be due and.payable for values so reported cu rn the date the property is acquired. THESE EXTENSIONS OF COVERAGE DO NOT INCREASE THE LIMITS OF LIABILITY OR THE AMOUNTS RECOVERABLE AS SPECIFIED OR PROVIDED FOR ELSEWHERE IN THIS POLICY. THIS COMPANY SHALL NOT BE LIABLE FOR MORE THAN ITS PRO RATA SHARE OF LOSS BY THESE EXTENSIONS OF COVERAGE. 13. PROPERTY SUBJECT TO LIMITATIONS: A. THE FOLLOWING PROPERTY IS SUBJECT TO THESE ADDITIONAL LIMITATIONS: I. GLASS, GLASSWARE, STATUARY; MARBLES, BRIC-A-BRAC, PORCELAINS AND OTHER ARTICLES OF A FRAGILE OR BRITTLE NATURE ARE COVERED AGAINST LOSS BY BREAKAGE ONLY IF DIRECTLY CAUSED BY THE "SPEC:IFIED PERILS". THIS LIMITATION SHALL NOT APPLY TO LENSES OF PHOTOGRAPHIC OR SCIENTIFIC INSTRUMENTS. 2. NEON, AUTOMATIC AND ELECTRIC SIGNS AT THE DESCRIBED LOCATION(S) ARE COVERED, BUT ONLY AGAINST LOSS BY THE "SPECIFIED PERILS" OTHER THAN VANDALISM AND MALICIOUS MISCHIEF. 3. STEAM BOILERS, STEAM PIPES, STEAM TURBINES AND STEAM ENGINES ARE NOT COVERED AGAINST LOSS CAUSED BY BURSTING, RUPTURE, CRACKING OR EXPLOSION ORIGINATING THEREIN (OTHER THAN EXPLOSION OF ACCUMULATED GASES OR UNCONSUMED FUEL WITHIN A FIRE BOX OR COMBUSTION CHAMBER). 4. MACHINES AND MACHINERY ARE NOT COVERED AGAINST LOSS CAUSED BY RUPTURE, BURSTING OR DISINTEGRATION OF THEIR ROTATING OR MOVING PARTS RESULTING FROM CENTRIFUGAL OR RECIPROCATING, FORCE. 5. TREES, LAWNS, SHRUBS AND PLANTS, EXCEPT PLANTS USED FOR DECORATION OF THE INTERIOR OF A BUILDING, ARE COVERED ONLY AGAINST LOSS BY THE "SPECIFIED PERILS". B. THE TERM "SPECIFIED PERILS" AS USED HEREIN SHALL MEAN DIRECT LOSS BY FIRE, LIGHTNING, AIRCRAFT, EXPLO- SION, RIOT, CIVIL COMMOTION, SMOKE, VEHICLES, WINDSTORM OR HAIL TO PROPERTY CONTAINED IN ANY BUILDING, VANDALISM AND MALICIOUS MISCHIEF, LEAKAGE OR ACCIDENTAL DISCHARGE FROM AUTOMATIC SPRINKLER SYSTEMS. 14. VALUATION: SUBJECT TO THE PROVISIONS AND STIPULATIONS OF THIS POLICY, THE FOLLOWING VALUATIONS OF PROPERTY ARE. ESTABLISHED: A. PROPERTY OF OTHERS — THE AMOUNT FOR WHICH THE INSURED IS LIABLE BUT IN NO EVENT TO EXCEED ACTUAL CASH VALUE. B. TENANTS IMPROVEMENTS AND BETTERMENTS — 1. IF REPAIRED OR REPLACED WITHIN A REASONABLE TIME AFTER LOSS, AT THE EXPENSE OF THE INSURED, THE ACTUAL CASH VALUE OF THE DAMAGED OR DESTROYED PROPERTY; 2. IF NOT REPAIRED OR REPLACED WITHIN A REASONABLE TIME AFTER LOSS, THAT PROPORTION OF THE ORIGINAL COST OF THE DAMAGED OR DESTROYED PROPERTY WHICH THE UNEXPIRED TERM OF THE LEASE OR RENTAL AGREE- MENT, WHETHER WRITTEN OR ORAL, IN EFFECT AT THE TIME OF LOSS BEARS TO THE PERIOD(S) FROM THE DATE(S) SUCH IMPROVEMENTS OR BETTERMENTS WERE MADE TO THE EXPIRATION DATE OF THE LEASE; 3 3. IF REPAIRED OR REPLACED AT THE EXPENSE OF OTHERS FOR THE USE OF THE INSURED, THERE SHALL BE NO LIABILITY HEREUNDER. C. BOOKS OF ACCOUNT, MANUSCRIPTS, DRAWINGS, AND OTHER RECORDS (EXCEPT FILM, TAPE, WIRE OR OTHER RECORD- ING MEDIA), CARD INDEX SYSTEMS FOR NOT EXCEEDING THE COST OF BLANK BOOKS, BLANK CARDS AND OTHER MATERIALS. D. FILM, TAPE, WIRE OR OTHER RECORDING MEDIA FOR NOT EXCEEDING THE COST OF UNEXPOSED OR BLANK FILM, TAPE, WIRE OR OTHER RECORDING MEDIA. E. ALL OTHER PROPERTY AT ACTUAL CASH VALUE. 15. OPTIONAL REPLACEMENT COST COVERAGE: Except for property described in Paragraphs 14 A, C and D, the Insured may elect to make claim hereunder on the basis of Actual Cash Value or Replacement Cost, without deduction as provided herein. If the Insured, elects to make claim on the basis of Replacement Cost, the words "Replacement Cost" shall be substituted for the words "Actual Cash Value" wherever they appear in the policy or in endorsements attached (including the Average Clause, Paragraph 5). When the Insured elects to make claim on the basis of Replacement Cost without deduction for depreciation, THE LIMIT OF LIABILITY FOR ALL CONTRIBUTING INSURANCE,, SUBJECT OTHERWISE TO ALL OF THE TERMS AND CONDITIONS OF THIS POLICY, SHALL NOT EXCEED THE SMALLEST OF THE FOLLOWING AMOUNTS:. A. THE AMOUNT WHICH WOULD BE NECESSARY TO REPAIR OR REPLACE THE DAMAGED OR DESTROYED PROPERTY, OR ANY PART THEREOF, WITH MATERIALS OF LIKE KIND AND QUALITY, WITHOUT DEDUCTION FOR DEPRECIATION, ON THE SAME PREMISES AND INTENDED FOR THE SAME OCCUPANCY AND USE; B. THE AMOUNT ACTUALLY AND NECESSARILY EXPENDED IN REPAIRING OR REPLACING THE DAMAGED OR DESTROYED PROPERTY, OR ANY PART THEREOF (WHETHER OR NOT SUCH REPAIR OR REPLACEMENT IS WITH MATERIALS OF LIKE KIND AND QUALITY TO THOSE OF THE DAMAGED OR DESTROYED PROPERTY). ' 16. DEBRIS REMOVAL: This policy covers expenses incurred in the removal of debris of property covered occasioned by loss insured against in this policy, BUT THIS COMPANY SHALL NOT BE LIABLE FOR LOSS OCCASIONED BY THE ENFORCEMENT OF ANY STATE OR MUNICIPAL LAW OR .ORDINANCE WHICH NECESSITATES THE DEMOLITION OF ANY PORTION OF A BUILDING OR REMOVAL OF CONTENTS THEREOF WHICH HAS NOT SUFFERED DAMAGE BY A PERIL NOT EXCLUDED IN THIS POLICY. 17. LOSS CLAUSE: Any loss hereunder shall not reduce the amount of this policy 18. OTHER INSURANCE: IF THERE IS AVAILABLE TO THE INSURED, OR ANY OTHER INTERESTED PARTY, ANY INSURANCE WHETHER COLLECTIBLE OR NOT, WHICH WOULD APPLY IN THE ABSENCE OF THIS POLICY, THE INSURANCE UNDER THIS POLICY SHALL APPLY ONLY AS EXCESS INSURANCE OVER SUCH "OTHER INSURANCE". 19. CONTRIBUTING INSURANCE: Contributing insurance shall mean insurance written in the name of the Insured and upon the identical plan, terms, conditions and provisions contained in this policy and shall not be deemed to be other insurance. (OVER) 22 1,. 'A'. F y' _ 4.-1f �� 'A t•� SLR•F'•ilti3[r'GlIP.`M�d�wA•-'. D__._ _-_1-_._ ... .... SFa�'t „4.,•J ��.ii'' F:0,'l �k.•8�?..e��t+w:�'+�,.'a'X.b':�`w.�.r^-vcc.ti..'..^.4 `.r.""' .. � .u..� ..r+-..• •-• ..,.. .. ~'mow , .. . . � �;` .. . '.X.�. ..�'-'�'�..-w•+`� .. .w ...�.. .. .....,, ; �..... - .aw:,�.�Y�v . � . ». TFF .��...;� � ..,�, . �. •y '^� •" :' u.�i,: :..w.. :.X ,a d i .. $` �s�.giv4 �'.' ew,t:le�'S; ��','�.'I:" . •r 20. PERMITS AND USE: EXCEPT AS OTHERWISE PROVIDED, permission is hereby granted: (1) for any building to be and remain vacant or unoccupied without limit of time; (2) for existing and increased hazards and for any change in occupancy or use of the premises. 21. NO CONTROL: This insurance shall not be prejudiced: 1. by any act or neglect of the owner of any building if the Insured is not the owner thereof, or by any act or neglect of any occupant (other than the Insured) of any building, when such act or neglect of the owner or occupant is not within the control of the Insured, or 2. by failure of the Insured to comply with any warranty or condition contained in any form or endorsement attached to this policy with regard to any portion of the premises over which the Insured has no control. 22. PROTECTIVE SAFEGUARDS: IT IS A CONDITION OF THIS INSURANCE .THAT THE INSURED SHALL MAINTAIN SO FAR AS IS WITHIN HIS CONTROL SUCH PROTECTIVE SAFEGUARDS AS WERE IN EFFECT AT THE TIME OF ATTACHMENT OF THIS INSURANCE. FAILURE TO MAIN- TAIN SUCH PROTECTIVE SAFEGUARDS SHALL SUSPEND THIS INSURANCE, ONLY AS RESPECTS THE LOCATION OR SITUATION AFFECTED, FOR THE TIME OF SUCH DISCONTINUANCE. 23. SUE AND LABOR: IN THE EVENT OF LOSS OR DAMAGE TO THE PROPERTY COVERED HEREUNDER, IT SHALL BE LAWFUL AND NECESSARY FOR THE INSURED OR HIS OR THEIR FACTORS, SERVANTS OR ASSIGNS TO SUE,-VABE' R AND TRAVEL FOR, IN AND ABOUT THE DEFENSE, SAFEGUARD AND RECOVERY OF THE SAID PROPERTY OR ANY PART THEREOF WITHOUT PREJUDICE TO THIS INSURANCE OR WAIVER OF THE INSURED'S RIGHTS HEREUNDER. THE EXPENSE SO INCURRED SHALL BE BORNE BY THE INSURED AND THE COMPANY PROPORTIONATELY TO THE EXTENT OF THEIR RESPECTIVE INTERESTS. 24. SUBROGATION: In the event of any payment under this policy, the Company shall be subrogated to the Insured's rights of recovery therefor against any person, organization or government, and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. 25. IMPAIRMENT OF RECOVERY: EXCEPT AS NOTED BELOW, THIS COMPANY 'SHALL NOT BE BOUND TO PAY ANY LOSS IF THE INSURED SHALL HAVE IMPAIRED ANY RIGHT OF RECOVERY FOR LOSS TO THE PROPERTY INSURED; HOWEVER, IT IS AGREED THAT: 1. as respects property while on the premises of the Insured, permission is given the Insured to.relcase others in writing from liability for loss prior to loss, and such release shall not affect the right of Insured to recover hereunder, and 2. as respects property in transit, the Insured may, without prejudice to this insurance, accept such bills of lading, receipts or contracts of trans- portation as are ordinarily issued by carriers containing a limitation as to the value of such property. 26. CONFORMITY WITH STATUTE: In any state requiring a standard form of fire policy, insurance hereunder on values and properties in such state shall attach and cover in accord- ance with the terms and conditions of such standard fire policy. 27. ALL OTHER MATTERS: All matters not provided for herein or by endorsement hereon shall be governed by the terms and conditions of this Company's printed Policy form to which this form is attached and which has been issued in conjunction herewith. The foregoing clauses shall, however, be considered to supersede and annul any clause or clauses which may be of the same or similar nature. 28. REPORT TO POLICE: When either a loss or occurrence takes place, the Insured shall give notice thereof to the proper police authority if loss or occurrence is due to a violation of the law. INLAND MARINE 'IM 106 (Ed. 3-77) SCHEDULED PROPERI- i FLOATER SUPPLEMENTAL ENDOR ENT (Based on ISP 04 01 (Ed. 3-1-77) / CM 00 0.1 (Ed. 03 77)) This supplemental endorsement, effective 11-15-80 forms a part of policy No. MP 831-4513 issued by INDUSTRIAL INDEMNITY CO. at its Agency located (city and stale) PASADENA, CA. Date 11-19-80 The terms and conditions of this supplemental endorsement shall apply only to the property covered hereunder and none of the terms and conditions of the policy or any other endorsement which may be. attached thereto, except the cancelation provision, shall apply to the insurance hereunder. If any of the property covered by this supplemental endorsement is also covered under any other provision of the policy to which this supplemental endorsement is attached, those provisions are hereby amended to exclude such property, the intent being that the coverage under this supplemental endorsement is the sole coverage on such property. To the extentthat coverage in this supplemental endorsement replaces coverage in other policies/forms terminating noon standard time on the inception date of this supplemental endorsement, coverage under this supplemental endorsement shall not become effective until such other coverage has terminated. $ INCL. Amount INCL, Rate $ INCL. Premium If the Supplemental Endorsement Period is more than one year and the premium is to be paid in installments, the total pre- mium for this supplemental endorsement is $ payable: $ - on the Effective date, $ on the 1 st Anniversary, $ on the 2nd Anniversary. In consideration of the stipulations herein named and of .the premium above specified the Company does insure hereinafter called the Insured, whose address is from at ❑ 12:01 A.M. / n noon, to at ❑ 12:01 A.M. / noon, Standard Time at place of issuance, to an amount not exceeding the amount(s) above specified, on the following described property: PER FORMS IM052, IM050, ENDT: A,B,C 8 D CONDITIONS I. Misrepresentation and Fraud. This entire supplemental en- 2. Notice of Loss. The Insured shall as soon as practicable re- dorsement shall be void if, whether before or after a loss, the In- port in writing to the Company or its agent every loss, damage sured has concealed or misrepresented any material fact or cir- or occurrence which may give rise to a claim under this supple- cumstance concerning this insurance or the subject thereof, or mental endorsement and shall also file with the Company or its the interest of the Insured therein, or in case of any fraud or agent within ninety (90) days from date of discovery of such false swearing by the Insured relating thereto, loss, damage or occurrence, a detailed sworn proof of loss. THE PROVISIONS PRINTED ON THE BACK PAGE OF THIS SUPPLEMENTAL ENDORSEMENT ARE HEREBY REFERRED TO AND MADE A PART HEREOF. 11-19-80 M/M (over) .............Agent. I NDUSTRIAL.. INDEMNITY ALL RISK, ENDORSEMENT In consideration of the rate and premium for which this policy is written, Paragraph of Form IMF-052_ is deleted and the following substituted in lieu thereof: This Policy insures against all risks of direct physical loss or damage to property covered hereunder from any external cause (including general average and salvage charges on waterborne shipments on any regular ferry) except as hereinafter excluded. 1 M050 R 1 (6/72) 1 -1 . n nn 1 - /t i FORM 1 L269 (1 -67 ) This endorsement modifies such insurance as is afforded by.the provisions of the policy relat- ing to the following: SECTION I PROPERTY COVERAGE EXTENDED CONDITIONS LOCKED BOX WARRANTY IT IS WARRANTED BY THE INSURED THAT: 1. THE BODY OF EACH TOOL BOX CONTAINING PROPERTY INSURED IS OF SOLID CONSTRUCTION AND ENTIRELY ENCLOSED, 2. WHEN LEFT UNATTENDED THIS BOX SHALL BE LOCKED. THIS COMPANY SHALL'•NOT BE LIABLE FOR LOSS OR DAMAGE TO THE INSURED PROPERTY BY THEFT UNLESS THE LOSS OR DAMAGE.IS THE RESULT OF VIOLENT FORCIBLE ENTRY INTO SAID TOOL BOX OF WHICH THERE SHALL BE VISIBLE SIGNS AT THE POINT OF ENTRY OR UNLESS THFT OF A ENTIRE TOOL BOX. (The information belou, is required to be completed only u�hen this endorsement is issued subsequent to the policy effective date.) Effective this endorsement forms a part of Policy No. issued to _ by ENDT: D 1149-80 M/M AUTHORIZED REPRESENTATIVE CIndustrial Indemnity a Crum and Forster organization ENDORSEMENT IT IS UNDERSTOOD AND AGREED FORM IMO52 IS AMENDED IN PART AS FOLLOWS;, ITEM 6—PROPERTY EXCLUDED IS AMENDED TO DELETE•{A) CONTRACTOR'S TOOLS AND EQUIPMENT FROM EXCLUSION. All other terms and conditions of this Policy remain unchanged. (The information below is required to be completed only when this endorsement is issued subsequent to the policy effective date. 1 Effective this endorsement forms part of Policy Number of Issued to Endorsement no. C 11-19-80 M/M AUTHORIZED REPRESENTATIVE IX003-R3(1/80) j i Rt . J '.,:,9':• .. ., J^ .J'%�J;;'1y::n,;.••'.ix.�r.t,,.aA'ie''r-:iT.r;"Cs.`,y`.'.rt; st .�•�- �• t. r%'s t..� .,�: s�+;,.e•v-:_,,. �. .` j„r' _ _ .,�. _ v'r� .. R :��i-�'rn'�a6+h,•`y�. �As'h- �S�i.:,•3•:'.'.�.. .4..,r. �:.._ .... ^.. .^."i•, ' +, . }; v„ lows. .7._i ..�u' w•. -Te V`�{�_ _ ?q. 1^: '�•>•'^iT; -,.•« ,,,_-"?��r°'..�`~'�� arzc i.-:.-. J'i�'+. � .i'-'.c:Ee--�.��:�:W�ji ��, FORM 1 L259 (1 -67 ) This endorsement modifies such insurance as is afforded by the provisions of the policy relat- ing to the following: SECTION 1 PROPERTY COVERAGE IT IS UNDERSTOOD AND AGREED PARAGRAPH 6 OF FORM IM052 IS EX- TENDED TO INCLUDE THE FOLLOWING: (G) AGAINST LOSS OR DAMAGE CAUSED BY THEFE (INCLUDING AT- TEMPT THEREAT) FROM ANY MOTOR VEHICLE OCCURRING WHILE SUCH VEHICLE IS UNATTENDED, UNLESS THE PROPERTY IS CON- TAINED IN A FULLY ENCLOSED AND SECURELY LOCKED BODY OR COMPARTMENT AND THEFT RESULTS FROM FORCIBLE ENTRY EVI- DENCED BY VISIBLE MARKS. (THIS EXCLUSION SHALL NOT APPLY TO PROPERTY IN THE CUSTODY OF CARRIERS FOR HIRE.) (The information belou, is required to be completed only when this endorsement is issued subsequent to the policy effective date.) Effective this endorsement forms a part of Policy No. issued to by ENDT: B 11-19-80 M/M AUTHORIZED REPRESENTATIVE Me I O • . 121 NUCLEAR RADIATION AND REACTION EXCLUSION "This policy does not insured against Loss or Damage caused by or resulting from: Loss by Nuclear reaction or Nuclear radiation or Radioactive contami- nation, all whether controlled or uncontrolled and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the peril(s) insured against in this policy; however, subject to the foregoing and all provisions of this policy, direct loss by fire.resulting from Nuclear reaction or Nuclear Radiation or Radioactive contamination is.insured against by this policy." VAR EXCLUSION "This policy does not insure against Loss or Damage caused by or resulting from: (1) Hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack, (A) By any government or sovereign power We jure or de facto), or by any authority maintaining or using military, naval or air forces; or (B) By military, naval or air forces; (C) By an agent of any such government, power, authority or forces; (2) Any weapon of war employing atomic fission or radioactive force whether in time of peace or war; (3) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence,,. -seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority, or risks contraband or illegal transportation or trade." All other terms and conditions of this Policy remain unchanged. (The information below is required to be completed only wheh this endorsement is issued subsequent to the policy effective date.) Effective: this endorsement forms part of Policy Number of . issued to: ENDT: A LIABILITY SCHEDULE NAMED INSURED POLICY NUMBER .. BETTER BUILT ENTERPRISES, INC. W 831-4513 KEY NUMBERS: (1) OWNERS', LANDLORDS' AND TENANTS'; (2) MANUFACTURERS AND CONTRACTORS: (3) PREMISES MEDICAL PAYMENTS; (4) STOREKEEPERS LIABILITY; (5) OWNER'S AND CONTRACTOR'S PROTECTIVE; (6) PRODUCTS AND COMPLETED OPERATIONS; (7) CONTRACTUAL; (8) LIQUOR LAW LIABILITY; (9) LIABILITY EXTENDED COVERAGE-; (10) PERSONAL INJURY; (11) EMPLOYERS' NON -OWNERSHIP; (12) HIRED AUTOMOBILES PREMIUM BASIS: a — AREA b — FRONTAGE m — ADMISSIONS p — PAYROLL r — RECEIPTS t — OTHER KEY RATES ADVANCED PREMIUM BODILY PROPERTY BODILY PROPERTY CLASSIFICATIONS AND LOCATIONS NO. CODE \ PREMIUM BASIS INJURY DAMAGE INJURY DAMAGE �� A V /�� UAL ADVANCE PREMIUM 345 WALNUT-AVE., ARCADIA, CA. 2) PREFABRICATED BUILDING MMU- FACTURING-METAL - EXCLUDING ,IERECTION 24309 P) 71,500. .809 .083 578. 59. 2) PREFABRICATED BUILDING EREC- TICN 17535 P) 6,600. 1.305 .307 86. 20. 5) CONSTRUCTION OPERATIONS -CON- TRACTOR (NOT RAILROADS)= -EX- CLUDING OPERATIONS CN BOARD MIN. PREM. SHIPS 16291 T) 1,000. .027 .013 2 18. 9) LIABILITY EXTENDED COVERAGE � 20% 99990 138. 19. 5) ""PREFABRICATED BUILDING M*W— FACTURING — METAL— EXCLUDING ERECTICN 24302 R) 495,000. .288 .869 143. 430. 6) PREFABRICATED BUILDING EREG TICN 17862 R) 17,600. .396 .547 7. 10. 976. 556. t i -i a-Rn M /M A029 R6141791 ®t 14 Z.- GL 00 19 07 78 This endorsement forms a part of the policy to which attached, effective on the inception date of the policy unless otherwise stated herein. (The following information is required only when this endorsement is issued subsequent to preparation of policy.) Endorsement Effective Policy No. Endorsement No. Named Insured Countersigned by (Authorized Representative) This endorsement modifies such insurance as is afforded by the provisions of the policy relating to the following: GENERAL LIABILITY INSURANCE SMP LIABILITY INSURANCE BUSINESSOWNERS POLICY AMENDATORY ENDORSEMENT -ADDITIONAL DEFINITION It is agreed that the following definition is added: "loading or unloading", with respect to an automobile, means the handling of property after it is moved from the place where it is accepted for movement into or onto an automobile or while it is in or on an automobile or while it is being moved from an automobile to the place where it is finally delivered, but 'loading or unloading" does not include the movement of property by means of a mechanical device (other than a hand truck) not attached to the automobile. .GL 00 19 07 78 n1 COMPREH NSBVE GENERAL LIABILITY QSURANCE Coverage Part 1. COVERAGE A —BODILY INJURY LIABILITY COVERAGE B—PROPERTY DAMAGE LIABILITY The Company will pay on behalf of the insured oll sums which the insured shall becorne legally ohligated to pay as damages because of Coverage A -bodily injury, or Coverage H property damage to which Ihis iosumnce applies; caused by on occurrence, and the Coro piny shalt have the right and duly to defend any soil against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the sot are groundless, false or fraud ulent, and may make such investigation and settlernent of any claim or suit as it deems expedient, but the Company shall not he obligated to pay any claim or judgment or to defend any stiff after the applicable limit of the Company's liability has been exhausted by payment of judgments or settlements. Exclusions This insurance does not.apply' (a) to liability assumed by the insured under any contract or agreernent except an incidental contract; but [his exclusion does riot apply to a warranty of fitness or quality of the named insured's products or it warranty that work performed by or on behalf of the named insured will be done in a workmanlike manner, (b) to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of (1 ) any automobile or aircraft owned or operated by or rented or loaned to any insured, or (2) any other automobile or aircraft operated by any person in the course of his employment by any insured; h)ut this exclusion does not apply to the parking of an automobile on premises owned by, rented to or controlled by the named insured or the ways immediately adjoining, if such automobile is not owned by or rented or loaned to any insured; (c) to bodily injury or property damage arising out of (1 ) the owner- ship, maintenance, operation, use, loading or unloading of any mobile equipment while being used in any prearranged or organized racing, speed or dernolihnn contest or in any stunting activity or in practice or preparation for any such. con test or activity or (2) the operation or use of any snowmobile or trailer designed for use therewith, (d) to bodily injury or property damage arising out of and in the course of the transportation of mobile equipment by ao automobile owned or operated by or rented w loaned In any insured; (e) to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of (1) any watercraft owned or operated by or rented or to%rued to any . insured, or (2) any other watercraft operated by any person in the course of his employment by any insured; but this exclusion does not apply to watercraft while ashore on prernises owned by, rented to or controlled by the named insured; (f) to bodily injury or property damage arising out of. the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the alrnos- phere or any water course or body of water; but this exclusion does not apply if such discharge, dispersal, release or escape is sudden and accidental; (g) to bodily injury or property damage due to war, whether or not declared, civil war, insurrection, rebellion or revolution or to any act or condition incident to any.of the foregoing, with respect to . (11 liability assumed by the insured under an incidental contract, or (2)expenses for first aid under the Supplementary .Payments provision; (It) to bodily injury or property damage for which the insured or his indemnitee may be held liable (1),is a prison or organization engaged in the business of manufac. hiring, distributing, selling or serving alcoholic beverages, or (2) if not so engaged, as an owner or lessor of premises used for such purposes, if such li,ibility is imposed (il by, or because of the violation of, any statute, ordinance or regulation pertaining to the sale, gift, distribu- tion or use of any alcoholic beverage, or (if) by reason of the selling, serving or giving of any alcoholic beverage to a minor or to a person under the influence of alcohol or which causes or contributes to the intoxication of any person, but part (ii) of this exclusion does not apply with respect to liability of the insured or his indemnitee as an owner or lessor described in (2) above; (i) to any obligation for which the insured or any earner as his insurer may be held liable under any workmen's compensation, unemploy- rnent compensation or disability benefits law, or under any similar law, (j) to bodily injury to any employee of the insured arising out of and in flip. course of his employment by the insured or to any obligation of the insured to indemnify another because of damages arising out of such injury, but this exclusion does not apply to liability assumed by the insured under an incidental contract; (k) to property damage to (1 ) property owned or occupied by or rented to the insured, (2) properly used by the insured, nr (3) property in the care, custody or control of the insured or as to which the insured is for any purposes exercising physical control; but parts (2) and (3) of this exclusion do not apply with respect to liability under a writlen.sidelrack agreement and part (3) of this exclusion does not apply with respect to ,property damage (other than to elevators) arising nru of the use of an elevator at premises owned by, rented to or controlled by the named insured; (1) to property damage to premises alienated by the named insured arising out of such premises or any part thereof; (In) to loss of use of tangible property which has not been physically 'injured or destroyed resulting frorn (11 a delay in or lack of performance by or no behalf of the named insured of any conl7acl'or agreement, or (2) the failure of the named insured's products or work performed by or on behalf of flip. named insured to meet the level of per formance, quality, fitness or durability warranted or represented by the named insured; but this exclusion does not apply to loss of use of other tangible property resulting frorn the sudden and accidental physical injury to or destruction of the named insured's products or work per formed by or on behalf of the named insured after such products or work have been put to use by any person or organization olher than an insured; (n) to property damage to the named insured's products arising out of such pr(Aticts or any part of such products; (o) to property damage to work performed by or on behalf of the named insured arising oot of the work or any portion thereof, or out of materials, parts or equipment furnished in connection therewith; (p) to damages claimed for the withdrawal, inspection, repair, replace. meni, or loss of use of the named insured's products or work cone pleted by or for the named insured or of any property of which such products or work form it part, if such products, work or prop- erty are withdrawn from the market or front use because of any known or suspected defector deficiency therein; 1L210 R2 (7/72) f. II. PERSONS INSURED Each of the following is an insured under Ibis insurance In the exlent set forth holow (a) it the named insured is dcsi(In,hled io the decl;ualions as,uh nidivid ual, the person so designaiucl hul only will) respect to the conduct of a business of which he is the sole proprietor, and the spouse of the named insured with respect to the conduct of such it busioess, (b) if the named insured is designated in the declarations as a partner- ship or joint venture, the partnership or joint venture so designated and any partner or member thereof but only with respect to his liability as such; (c) if the named insured is designated in the declarations as other than an individual, partnership or joint venture, the organization so desig nated and any exerulive officer, director or stockholder Ihereof while acting within the scope of This dirties as such; (d) any person (other than an erployee of the named insured) fir orgdo ization while acting as real estate manager for the named insured; and (e) with respect to the operation, for the purpose of locomotion upon a public highway, of mobile equipment registered under any motor vehicle registration law, W an employee of the named insured while operating any such equipment in the course of his employment, and 00 any other person while operating with the permission of the named insured any such equipment registered in the sarne of the named insured and any person or organization legally respon- sible for such operation, but only if there is no other valid and collectible insurance available, either on a primary or excess basis, to such person or organization; provided that no person or organization shall be an insured under this paragraph (e) with respect to: (1)bodily injury to any fellow employee of such person injured in the course of his employment, or (2) property damage to property owned by, rented to, in charge of or occupied by the named insured or the employer of any person described in subparagraph (ii). This insurance does not apply to bodily injury or property damage arising but of the conduct of any partnership or joint venture of which the insured is a partner or member and which is not designated in this policy as a named insured. III. LIMITS OF LIABILITY Separate Limit Plan described below applies when Separate Limit 'of Liability Declarations is used. Single Limit Plandescribed below applies when Single. Limit of Liability Declarations is used. Regardless of the number' of (1 ) insureds under this policy, (2) persons or organizations who sustain bodily injury or property damage, or (3) claims made or suits brought on ar_count of bodily' injury or prop- erty'damage, the Company's liability is limited as follows: SEPARATE LIMIT PLAN Coverage A —The total liability of the Company for all damages, includ- ing damages for care and loss of services, because of bodily injury sustained by one or more persons as the result of anyone occurrence shall not exceed the limit of bodily injury liability stated in the declara tions as applicable to "each occurrence". Suhject to the above provision respecting "each occurrence", the tnial liability of the Company for all damages because of (1 ) all bodily injury Included within the completed operations hazard and (2) all bodily injury included within the, products hazard shall not exceed the limit of bodily injury liability stated in the declarations as "aggregate". Coverage B--The total liability of the Company for all damages because of all property damage sustained by one or more persons or organiza- tions as the result of any one occurrence shall not exceed the limit of property damage liability stated in the declarations as applicable to each occurrence". Subject to the above_ provision respecting "each occurrence", the total liability of the Company for all damages because of all property damage to which this coverage applies and described in any of the numbered subparagraphs below shall not exceed the limit of property damage liability stated in the declarations as "aggregate": I I ) all property damage arising out of premises or •opelatirnrs rated on a uanunh;rllioo Ir.c:is or contractor's equipment rated on a receipts basis, including property damage for which 14611lity is assurned under airy incidental contract relating to such premises or operations, but exr.ludin(l property damage included in subparagraph 12) below; (?)all property damage arising out of and occurring in the course of operations performed for the named insured by independent con. tractors and general supervision thereof by the named insured, Including any such property damage for which li;1bilily is assumed; under any incidental contract re0ing to such operations, but this subparagraph (2) does not include property damage arising out of ro,cinlenance or repairs at premises owned by or reeled to the named insured or structural alterations at such premises which do not involve changing the size of or moving buildings or other structures, (3) all property damage included within the products hazard and all property damage included within the completed operations hazard. Such aggregate limit shall apply separately to the property damage described in subparagraphs (1l.' (2) and (3) above, and under sub paragraphs (1) and (2), separately with respect to each project away from premises owned by or rented to the named insured. Coverages'A and B—For the purpose of delerrnlntng the limit of the Company's liability, all bodily injury and property damage arising nut of .continuous or repeated exposure to substantially the sarne general conditions shall be considered as arising out of one occurrence. SINGLE LIMIT PLAN Coverages A and B—The limit of liability under the single limit plan stated in the declarations as applicable to "each occurrence" is the total limit of the Company's liability under the bodily injury and property damage liability coverages combined for all damages as the result of one occurrence; provided, subject to the limit of liability with respect to "each occurrence", the limit of bodily injury liability and property damage liahhhty stated in the declarations as "aggregate'' is the total' 'limit of this Company's liability during any one policy year for all damages because of (a) all bodily injury included within the completed operations hazard; (b) all bodily injury Included within the products hazard; (c) all property damage sustained by one or more persons or organiza- . dons as the result of any one occurrence. Subject to the above provision respecting "each occurrence",the total. liability of the Company for all damages to which this coverage applies and described in any of the numbered subparagraphs below shall not exceed the limil of liability stated in the declarations as "aggregate" for: (1) all property damage arising out of premises or operations rated on a remuneration basis or contractor's equipment rated on a receipts basks, including property damage for which liability is assurned under any incidental contract relating to such premises or opera- tions, but excluding property damage included in subparagraph (2) below; (2) all property damage arising out of and occurring in the course of operations performed for the named insured by independent con- tractors and general supervision thereof by the named insured, including any such property damage for which liability is assumed under aoy•incidental contract relating to Stich operations, but this subpomgrtph 12) does not include property damage arising out of maintenance or rer+ahrs at premises owned by or rented to the named insured or structural alteralions at such premises which do not involve changing the si /e of or moving buildings or other structures, (3) all property damage Included within the products hazard arid. all property damage included within the completed operations hazard. The terms of this policy shall apply separately to each premises insured heretinder, and to each project with respect to ope.ralions performed away from premises owned or rented by the named insured. Coverages A and B--For the purpose of determining the limit of the Company's liability, all bodily injury and property damage arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one occurrence. . IV. POLICY PERIOD; TERRITORY This insurance applies only to bodily injury or property damage which occurs during the policy, period within the policy territory, ~ P Industrial Indemnity 0 LiaC l icy Extended Coverage e Crum and Forster organization Endorsement . y This endorsement forms a part of the policy to which attached, effective onthe inception date of the policy unless otherwise stated herein. (The following information is required only when this endorsement is issued subsequent to the preparation ofpolicy.) icy This endorsement modifies such insurance as is afforded by the provisions of the policy relating to the following: COMPREHENSIVE GENERAL LIABILITY INSURANCE SPECIAL MULTI -PERIL POLICY LIABILITY INSURANCE STOREKEEPER'S INSURANCE SCHEDULE Personal Injury and Advertising Injury Liability Aggregate Limit shall be.the per occurrence bodily injury liability limit unless otherwise indicated herein: Limit of Liability $ Aggregate Limitof Liability —Premises Medical Payments Coverage: $1,000 each person unless otherwise indicated herein: $ each person. Limit of Liability —Fire Legal Liability Coverage: $50,000 per occurrence unless otherwise indicated herein: $ per occurrence. Premium Basis Advance Premium 20 % of the Total Comprehensive General Liability, Special Multi -Peril Policy $ INCL 0 Liability or Storekeeper's Insurance Premium as otherwise determined, excluding PRODUCTS COMPLETED OPERATIONS PREMIUM including MINIMUM PREMIUM $ INCL 1. CONTRACTUAL LIABILITY COVERAGE (AI The definition of incidental contract is extended to include any contract or agreement relating to the conduct of the named insured's business. (B) The insurance afforded with respect to liability assumed under an incidental contract is subject to the following additional exclusions: (1) to bodily injury or property damage for which the insured has assumed liability under any incidental contract, if such injury or damage occurred prior to the execution of the incidental contract; (2) if the insured is an architect, engineer or surveyor, to bodily injury or property damage arising out of the rendering of or the failure to render professional services by such insured, including (a) the preparation or approval of maps, drawings, opinions, reports, surveys, change orders, designs or specifications, and (b) supervisory, inspection or engineering services; (3) if the indemnitee of the insured is an architect,. engineer or surveyor, to the liability of the indemnitee, his agents or employees, arising out of (a) the preparation or approval of or the failure to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications, or IL357 R4 (8/80) ' (b) the giving of or the failure to give directions or instructions by the indemnitee, his agents or employees, provided such giving or failure to give is the primary cause of the bodily injury or property damage; (4) to any obligation for which the insured may be held liable in an action on a contract by a third party'beneficiary for bodily injury or property damage arising out of a project for a public authority; but this exclusion does not apply to an action by the public authority or any other person or organization engaged in the project; (5) to bodily injury or property damage arising out of construction operations, within 50 feet of any railroad property, affecting any railroad bridge or trestle, tracks, road beds, tunnel, underpass or crossing; but this exclusion does not apply to sidetrack agreements. (C) The following exclusions applicable to Coverages A (Bodily Injury) and B (Property Damage) or Coverage S (Storekeeper's Liability) do not apply to this Contractual Liability Coverage: (b). (c)(2), (d) and W. IN The following additional condition applies: Arbitration The company shall be entitled to exercise all of the insured's rights in the choice of arbitrators and in the conduct of any arbitration proceeding.. Page 1 of 4 LIAHILl I Y to 1 tlVUtU L.UV LH/%L.iL tNUUHbtWltN I -- 1 1111tie(1 11. PERSONALJNJURY AND ADVERTISINL , ( 1 INJURY LIABILITY COVERAGE v 0VT1u company will pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of personal injury or advertising injury to which this insurance applies, sus- tained by anv person or organization and arising out of the conduct of the: named insured's business, within the policy territory, and the com- pany shall have the right and duty to defend any suit against the insured seekingdamages on account of such injury, even if any of the allegations of the suit are groundless, false or fraudulent, and may make such investigation'and settlement of any claim of suit as it deems expedient, but the company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of the company's liability has been exhausted by payment of judgments or settlements. (B) This insurance does not apply: (1) to personal injury or advertising injury arising out of the wilful violation of a penal statute or ordinance committed by or with the knowledge or consent of the insured; (2) to personal injury or advertising injury arising out of a publication or utterance of a libel or slander, or a publication or utterance in violation of an individual's right of privacy, if the first injurious publication or utterance of the same or similar material by or on behalf of the named insured was made prior to the effective date of this insurance; (3) to personal injury or advertising injury arising out of libel or slander or the publication or utterance of defamatory or disparaging material concerning any person or organization or goods, products or services, or in violation of an individual's right of privacy, made by or at the direction of the insured with knowledge of the falsity thereof; (4) to personal injury or advertising injury arising out of the conduct of any partnership or joint venture of which the insured is a partner or member and which is not designated in the declarations of the policy as a named insured; (5) to advertising injury arising out of (a) failure of performance of contract, but this exclusion does not apply to the unauthorized appropriation of ideas based upon alleged breach of implied contract, or (b) infringement of trademark, service mark or trade name, other than titles or slogans, by use thereof on or in connection with goods, products or services sold, offered for sale or advertised, or (c) incorrect description or mistake in advertised price of goods, products or services sold, offered for sale or advertised; i (6) with respect to advertising injury (a) to any insured iii the business of advertising, broadcasting, publishing or telecasting, or (b) to any injury arising out of any act committed by the insured with actual malice. (C) Limits of Liability Regardless of the number of (1 ) insureds hereunder, (2) persons or organizations who sustain injury or damage, or (3) claims made or suits brought on account of personal injury or advertising injury, the total limit of the company's liability under this coverage for all damages shall not exceed the limit of liability stated in this endorse- ment as "aggregate". (D) Additional Definitions "Advertising Injury" means injury arising out of an offense corn - milted during the policy period occurring in the course of the named insured's advertising activities, if such injury arises out of libel, slander, defamation, violation of right of privacy, unfair competition, or infringement of copyright, title or slogan. "Personal Injury" means injury arising out of one or more of the following offenses committed during the policy period: I1) false arrest, detention, imprisonment, or malicious prosecution, (2) wrongful entry or. eviction or other invasion of the right of private occupancy; (3) a publication or utterance (a) of a libel or 'slander or other defamatory or disparaging material, or (b) in violation of an individual's right of privacy; except publica- Irons or tllter;mces In 1 ulrse of or relate( to adveIIislrig, husrd;asting, puhlishiml U ecasting activities conducted by or or) behalf of -the named insured shall not be deemed'personal injury. 111. PREMISES MEDICAL PAYMENTS COVERAGE The company will pay 10 or for each person who sustains bodily injury caused by accident all reasonable medical expense incurred within one year from the date of the accident on account of such bodily injury, provided such bodily injury arises out of (a) a condition in the insured premises, or (b) operations will, respect to'which the named insured is afforded coverage for bodily injury liability under the policy. This insurance does not apply: (A) to bodily injury (1 ) arising out of the ownership, maintenance, operation, use, loading or unloading of (a) any automobile oraircraft owned or operated by or rented or loaned to any insured, or (b) any other automobile or aircraft operated by any person in the course of his employment by any insured; but thisexclusion does not apply to the parking of an automobile on the insured premises, if such automobile is not owned by or rented or loaned to any insured; (2) arising out of (a) the ownership, maintenance, operation, use, loading or un- loading of any mobile equipment while being used in any pre- arranged or organizedracing, speed or demolition contest or in any stunting activity or in practice or preparation for any such contest or activity, or (b) the operation or use of any snowmobile or trailer designed for use therewith; (3) arising out of the ownership, maintenance, operation, use, loading or unloading of (a) any watercraft owned or operated by or rented,or loaned to any insured, or , (b) any other watercraft operated by any person in the course of his employment by any insured; but this exclusion does not apply to watercraft while ashore on the insured premises; (4) arising out of and in the course of the transportation of mobile equipment by an automobile owned or operated by or rented or loaned to the named insured; (B) to bodily injury (1) included within the completed operations hazard or the products hazard; (2) arising out of operations performed for the named insured by independent contractors other than (a) maintenance and repair of the insured premises, or (b) structural, alterations at such premises which do not involve changing the size of or moving buildings or other structures; ' (3)resulting from the selling, serving or giving of'any alcoholic beverage (a) in violation of any statute, ordinance or regulation, (b) to a minor, (c) to a person under the influence of alcohol, or (d) which causes or contributes to the intoxication of any person, if the named insured is a person or organization engaged in the businessof manufacturing,distributing, selling or serving alcoholic, beverages, or if not so engaged, is an owner or lessor of premises used for such purposes, but only part (a) of this exclusion (13)(3) applies when the named insured is such an owner or lessor; (4) due' to war, whether or- not declared, civil war, insurrection, rebellion.or revolution, or to any act or condition incident to any of the foregoing; (C) to bodily injury (1) to the named insured, any partner thereof, any tenant or other person regularly residing on the insured premises of any employee of Page 2 of 4 LIABILD EXTENDED COVERAGE ENDORSEMEfV10--orttinued any of the fore_roing if the bodily injury arises out of and in the course of his employment therewith. (2) to any ether tenant if the bodily injury occurs on that pert of the insured premises ranted from the named insured or to any employee of such a tenant if the bodily injury t;ccurs on the tenant's part of the insured premises anfr arises gut of and ;n the course of his employment for the tenant; (3) to any person while engaged in maintenance and repair of the insured premises or alteration, demolition or new construction at such premises; (4) to any person if any benefits for such bodily injury are payable or required to be provided under any workmen's compensation, ur employment compensation or disability benefits law, or under any similar law; (5) to any person practicing, instructing or participating in any physical training, sport, athletic activity or contest whether on a formal or informal basis; (6) if the named insured is a club, to any member of the named insured; (7) if the named insured is a hotel, motel, or tourist court, to any guest of the named insured; (D) to any medical expense for services by the named insured, any em- ployee thereof or any person or organization under contract to the named insured to provide such services. LIMITS OF LIABILITY The limit, of liability for Premises Medical Payments Coverage is $1,000 each person unless otherwise stated in the schedule of this endorsement. The limit of liability applicable to "each person" is the limit of the com- pany's liability for all medical expense for bodily injury to any one person as the result of any one accident; but subject to the above provision respecting "each person", the total liability of the company under Premises Medical Payments Coverage for all medical expense for bodily injury to two or more persons as the result of any one accident shall not exceed the limit of bodily injury liability stated in the policy as applicable to each occurrence". When more than one medical payments coverage afforded by the policy applies, to the loss, the company shall not be liable for more than the amount of the highest applicable limit of liability. ADDITIONAL DEFINITIONS When used herein: "insured premises" means all premises owned by or rented to the named insured with respect to which the named insured is afforded coverage for bodily injury liability under this policy, and includes the ways immediately adjoining on land; "medical expense" means expenses for necessary medical, surgical, x-ray and dental services, including prosthetic devices, and necessary ambulance, hospital', professional nursing and funeral services. ADDITIONAL CONDITION Medical Reports; Proof and Payment of Claim As soon as practicable the injured person or someone on his behalf shall give to the company written, proof of claim, under oath if required, and shall, after each request from the company, execute authorization to enable the company to obtain medical reports and copies of records. The injured person shall submit to physical examination by physicians selected by the company when and as often as the company may reasonably require. The company may pay the injured person or any person or organi- zation rendering the services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of liability of any person or, except hereunder, of the company. IV. HOST LIQUOR LAW LIABILITY COVERAGE Exclusion (h) does not apply with respect to liability of the insured or his indemnitee arising out of the giving or serving of alcoholic beverages at functions incidental to the named insured's business, provided the named insured is not engaged in the business of manufacturing, distributing, selling or serving of alcoholic beverages. V. FIRE LEGAL LIABILITY COVERAGE —REAL PROPERTY With respect to property damage to structures or portions thereof rented to or leased to the named insured, including fixtures permanently attached thereto, if such property damage arises out of fire (A) All of the exclusions of the policy, other than the Nuclear Energy Liabilitv Fxclus;on (Broad f- cirri 0,are dyleted and replaced by thefpllowing: This insurance does not apply to liability assumed by the insured under any contract or agrean+ent. (B) The limit oI property damage liability as respects this Fire Legal Liability Coverage —Real Property is $50,000 each occurrence unless other- wise stated in the schedule of this endorsement. (C) The Fire Legal Liability Coverage —Heal Prorerty shall be Pxcess insur- ance over any valid and collectible property insurance (including any deductible portion thereof), available to the insured, such as, but not limited to, Fire, Extended Coverage, Builder's Risk Coverage or Installation Risk Coverage, and the Other Insurance Condition of the policy is amended accordingly. VI. BROAD FORM PROPERTY DAMAGE LIABILITY COVERAGE (Including Completed Operations) The insurance for property damage liability applies, subject to the follow- ing additional provisions: (A) Exclusions (k) and (o) are replaced by the following: (1) to property owned or occupied by or rented to the insured; or, except with respect to the use of elevators, to property held by the insured for sale or entrusted to the insured for storage or safekeeping; (2), except with respect to liability under a written sidetrack agreement or the use'of elevators (a) to property while on premises owned by or rented to the insured for the purpose of having operations performed on such property by or on behalf of the insured, (b) to tools or equipment while being used by the insured in performing his operations, (c) to property in the custody of the insured which is to be installed; erected or used in construction by the insured, (d) to that particular part of any property, not on premises owned by or rented to the insured, (i) upon which operations are being performed by or on behalf of the insured at the time of the property damage arising out of such operations, or 00 out of which any property damage arises, or (iii) the restoration, repair or replacement of which has been made or is necessary by reason of faulty workmanship thereon by or on behalf of the insured; (3) with respect to the completed operations hazard and with respect to any- classification stated in the policy or in the company's manual as "including completed operations", to property damage to work performed by the named insured arising out of such work or any. portion thereof, or out of such materials, parts or equipment furnished in connection therewith. (B) The Broad Form Property Damage Liability Coverage shall be excess insurance over any valid and collectible property insurance (including any deductible portion thereof), available to the insured, such as, but not limited to, Fire, Extended Coverage, Builder's Risk Coverage or Installation Risk Coverage, and the Other Insurance Condition of the policy is amended -accordingly. VI1. INCIDENTAL MEDICAL MALPRAQTICE LIABILITY COVERAGE The definition of bodily injury is amended to include Incidental Medical Malpractice Injury. Incidental Medical Malpractice Injury means injury arising out of the rendering' of or failure to render, during the policy period, the following services: (A) medical, surgical, dental, x-ray or nursing service or treatment or the furnishing of food or beverages in connection therewith; or (B) the furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances. IL.367A 18/80) Page 3 of 4 LIABILITY EXTENDED COVERAGE ENDORSEMENT —Continued This coverage does not apply to: (11 expenses incurred. by the insured for first -aid to others at the time of an accident and the "Supplementary Payments" provision and the "Insured's Duties in the Event of Occurrence, Claim or Suit" Condi- tion are amended accordingly, (2) any insured engaged in the business or occupation of providing any of the services described under VII (A) and (e) above; (3) injury caused by any indemnitee if such inderrtnitee is engaged in the business or occupation of providing any of the services described under V I I (A) and (B) above. Vill. NON -OWNED WATERCRAFT LIABILITY COVERAGE Exclusion (e) does not apply to any watercraft provided such watercraft is neither owned by the named insured nor being used to carry persons or property for a charge. Where the insured. is, irrespective of this coverage, covered or protected against any loss or claim which would otherwise have been paid by the company under this endorsement, there shall be no contribution or partici- pation by this company on the basis of excess, contributing, deficiency, concurrent or double insurance or otherwise. IX. LIMITED WORLDWIDE LIABILITY COVERAGE Paragraph (3) of the definition of policy territory is deleted and the following wording substituted therefor: (3) Anywhere in the world with respect to damages because of bodily injury or property damage arising out of the products hazard, provided the original suit for such injury or damage is brought within the United States of America, its territories or possessions or Canada. Paragraph (4) is added to the definition of policy territory as follows: (4) Anywhere in the world with respect to bodily injury, property damage, personal injury or advertising injury arising out of the activ- ities of any insured permanently domiciled in the United States of America though temporarily outside the United States of America, its territories and possessions or Canada,. provided the original suit for damages because of any such injury or damage is brought within the United States of America, its territories or possessions or Canada., Such insurance as is afforded by paragraph (4) above shall not apply: (a) to bodily injury or property damage included within the com- pleted operations hazard or the products hazard; (b) to Premises Medical Coverage. X. ADDITIONAL PERSONS INSURED As respects bodily injury, property damage and personal injury and adver- tising injury coverages; under the provision "Persons Insured", the following are added as insureds: (A) Spouse —Partnership —If the named insured is a partnership, the spouse of a partner but only with respect to the conduct of the business of the named insured; (B) Employee —Any employee of the named insured while acting within the scope of his duties as such, but the insurance afforded to such employee does not apply: (11 to bodily injury or personal injury, to another employee of the named insured arising out of or in the course of his employment; (2) to personal injury or advertising injury to the named insured or, if the named insured is a partnership or joint venture, any partner or member thereof, or the spouse of any of the foregoing; (3) to property damage to property owned, occupied or used by, rented to, in the care, custody or control of or over which physical control is being exercised for any purpose by another employee of the named insured, or by the named insured or, if the named insured is a partnership or joint venture, by any partner or member thereof or by the spouse of any of the foregoing. XI. EXTENDED BODILY INJURY COVERAGE The definition of occurrence includes .any intentional act by or at the direction of the insured which results in bodily injury, if such injury arises solely from the use of reasonable force for the purpose of protecting persons or property. XII. AUTOMATIC COVERAGE —NEWLY ACQUIRED ORGANIZATIONS (90 DAYS) The word insured shall include as named insured any organization which is acquired or formed by the named insured and over which the named insured maintains ownership or majority interest, other than a joint ven- ture, provided this insurance does not apply to bodily injury, property damage, personal injury or advertising injury with respect to which such new organization under this policy is also an insured under any other similar liability or indemnity policy or would be an insured under any such policy but for exhaustion of its limits of liability. The insurance afforded hereby shall terminate 90 days from the date any such organization is acquired or formed by the named insured. X111. CANCELATION The words "thirty days" are substituted r rds "ten days" appearing in. the second sentence of the policy cancella1/,SVn5�ition, except for nonpayment of premium, in which case ten (10) days nofi�'e V►, Ply. XIV. INSURED'S DUTIES IN THE EVENT OF OCCURRENCE, CLAIM OR SUIT It is agreed that the first paragraph of the Condition entitled "Insured's Duties in the Event of Occurrence or Suit" is amended to read as follows: In the event of an occurrence, written notice containing particulars suffi- cient to identify the insured, and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to the company or any of its authorized agents as soon as practical after knowledge of such occurrence is had by the named insured, if an individual, by a partner, if a partnership; or by an executive officer or insurance manager, if a corporation. Page 4 of 4 ��L�JL��L LI/,:ILITY INS�Jf;�NCE Pf;OOVISIOONS (Applicable to all coverages other than Auto) oII�D�t�II� DEFINITIONS & CONDITIONS SUPPLEMENTARY PAYMENTS C=R&Rma C=� NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT THE COMPANY NAMED ON THE DECLARATIONS PAGE (A capital stock company, herein called the Company) Agrees with the insured, named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the Limit of Liability, Exclusions, Conditions and other terms of this policy: DEFINITIONS When used in this policy (including endorsements forming a part hereof): "automobile" means a land motor vehicle, trailer or semitrailer designed for travelon public roads (including any machinery or apparatus attached thereto), but does not include mobile equipment; "bodily injury" means bodily injury, sickness or. disease sustained by any person which occurs during the policy period, including death at any time resulting therefrom; "completed operations hazard" includes bodily injury and property damage arising out of operations or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily injury or property damage occurs after such operations have.been com- pleted or abandoned and occurs away from premises owned by or rented to the named insured. "Operations" include materials, parts or, equipment furnished in connection therewith. Operations shall be deemed completed at the earliest of the following times: (1) when all operations to be performed by or on behalf of the named insured under the contract have been completed, (2) when all operations to be performed by or on behalf of the named insured at the site of the operations have been completed, or (3) when the. portion of the work out of which the injury or damage arises has been put to its intended use by any person or organiza- tion other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. Operations which may require further service or maintenance work, or correction, repair or replacement because of any defect or deficiency, but which are otherwise complete, shall be deemed completed. The completed operations hazard does not include bodily injury or property damage arising out of (a) operations in connection with the transportation of property, unless the bodily injury or property -damage arises out of a condi- tion in or on a vehicle created by the loading or unloading thereof, (b) the existence of tools, uninstalled equipment or abandoned or unused materials, or (c) operations for which the classification stated in the policy or in the Company's manual specifies"including completed operations"; "elevator" means any hoisting or lowering device to connect floors or landings, whether or not in service, and all appliances thereof including any car, platform, shaft, hoistway, stairway, runway, power equipment and machinery; but does not include an automobile servicing hoist, or a hoist without a platform outside a building if without mechanical power or if not attached to building walls, or a hod or material hoist used in alteration, construction or demolition operations, or an inclined conveyor used exclusively for carrying property or a durnbwaiter used exclusively for carrying property and having a compartment height not exceeding four feet, "incidental contract" means any written (1 ) lease of premises, (2) ease ment agreement, except in connection with construction or demolition operations on or adjacent to a railroad, l3) undertaking to indemnify a municipality required by municipal ordinance, except in connection with work for the municipality, (4) sidetrack agreement, or (5) elevator maintenance agreement, "insured" means any person or organization qualifying as an insured in the "Persons Insured" provision of the applicable insurance covor,tge. The insurance afforded applies separately to each insured against whorn claim is made or suit is brought, except with respect to the limits of the Company's liability; "mobile equipment" means a land vehicle (including any machinery or apparatus attached thereto), whether or not self-propelled, (1) not sub- ject to motor vehicle registration, or (2) maintained for use exclusively on premises owned by or rented to the named insured, including the ways immediately adjoining, or (3) designed for use principally off public roads, or (4) designed or maintained for the sole purpose of affording mobility to equipment of the following types forming an integral part of or permanently attached to such vehicle: power cranes, shovels, loaders, diggers and drills; concrete mixers (other than the mix -in -transit type); graders, scrapers, rollers and other road construc- tion or repair 'equipment, air -compressors, pumps and generators, including spraying, welding and building cleaning equipment, and geo- physical exploration and well servicing equipment; "named insured" means the person or organization named in Itern 1 of the declarations of this policy; "named insured's products" means goods or products manufactured, sold, handled or distributed by the named insured or by others trading under his name, including any container thereof (other than a vehicle), but "named insured's products" shall not include a vending machine or any property other than such container, rented to or located for use of others but not sold, "occurrence means an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured, 1 L394 (7/78) DEFINITIONS (c(nlinucd) O "policy territory" means: (1) thn. United States of Anxnica, its territories or possessions, or Canada, or (2) international waters or air space, provider) the bodily injury of property damage does not occur in the course of travel or trans portation to or from any other country, state or nation, or (3) anywhere in the world with respect to damages because of bodily injury or property damage arising out of a product which was sold for use or consumption within the territory described in paragraph (II above, provided the original suit for such damages is brought within such territory; "products hazard" inchides bodily injury and property damage arising oiI of the named insured's products or reliance ili_wn a represenlalion or warranty inane ;it any lithe with respect therelo, No only if the bodily injury or property damage occurs away from premises owned by Or rented to the named insured and after physical possession of such products has been relinquished to others, "property damage" means (,1) physical injury to or destruction of lanclible property whist occurs during the policy period, including the loss of use thereof at any time resulting therefrom, or (21 loss of use of tangible property which has not been physically injured or destroyed provided such loss of use is caused by an occurrence during the policy period. CONDITIONS. 1. PREMIUM. All premiums for this policy shall be computed in accordance with the Company's rules, rates, rating plans, premiums and minimum premiums applicable to the insurance afforded herein. Premium designated in this policy as "advance premium" is a deposit premium only which shall be credited to the amount of the earned premium due at the end of the policy period. At the close of each period (or part thereof terminating with the end of the policy period) designated in the declarations as the audit period, the earned premium shall be computed for such period and, upon notice thereof to the named insured, shall become due and payable. If the total earned premium for the policy period is less than the premium pre- viously paid, the Company shall return to the named insured the unearned portion paid by the named insured. The named insured shall maintain records of such information as is necessary for premium computation, and shall send copies of such records to the Company at the end of the policy period and at such times during the policy period as the Company may direct. 2. INSPECTION AND AUDIT. The Company shall be permitted but not obligated to inspect' the named insured's property and operations at any time. Neither the Company's right to make inspections nor the making thereof nor any report thereon shall constitute an undertaking, on behalf of or for the benefit of the named insured or others, to determine or warrant that such property or operations are safe or healthful, or are in compliance with any law, rule or regulation. . The Company may examine and audit the named insured's books and records at any time during the policy period and extensions thereof and within three years after the final termination of this policy, as far as they relate to the subject matter of this insurance. 3. FINANCIAL RESPONSIBILITY LAWS. When this policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, such insurance as is afforded by this policy for bodily injury liability or for property damage liability shall comply with the provisions of such law to the extent of the coverage and limits of liability required by such law. The insured agrees to reimburse the Company for any payment made by the Company which it would not have been obligated to make under the terms of this policy except for the agreement contained in this paragraph. 4. INSURED'S DUTIES IN THE EVENT OF OCCURRENCE, CLAIM OR SUIT (a) In the event of an occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the tirne, place and circumstances thereof, and the narnes and addresses of the injured and of available witnesses, shall be given by or for .the insured to the Company or any of its authorized agents as soon as practicable. (b) If clairn is made or suit is brought against the insured, the insured shall immediately forward to the Company every demand, notice, summons or other process received by him or his representative. (c) The insured shall cooperate with the Company and, upon the Com- pany's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of injury or damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The insured shall not, except at his own cost, volun- tarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident. 5. ACTION AGAINST COMPANY. No action shall lie against the Company unless, as a condition precedent thereto, there shall have been full compliance with all of the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the Company. Any person or organization or the legal representative thereof w1m has secured such judgment or written agreement shall thereafterbe entitled to recover under this policy to the extent of the insurance afforded by this policy. No person or organization shall have any right under this policy to join the Company as a party to any action against the insured to determine the insured's liability, nor shall the Company be impleaded by the insured or his legal representative. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the Company of any of its obligations hereunder. 6. OTHER INSURANCE. The insurance afforded by this policy is primary insurance, except when stated to apply in excess of or contin- gent upon the absence of other insurance. When this insurance is primary and the insured has other insurance which is stated to be applicable to the loss on an excess or contingent basis, the arnount of the Company's liability under this policy shall not be reduced by the existence of such other insurance. When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess or contingent, the Company shall not be liable under this policy for a greater proportion of the loss than that stated in the applicable contribution provision below: (a) Contribution by Equal Shares. If all of such other valid and collec- tible insurance provides for contribution by equal shares, the Com- pany shall not be liable for a greater proportion of such loss than would be payable if each insurer contributes an equal share until the share of each insurer equals the lowest applicable limit of liability under any one policy or the.full amount of the loss is paid, and with respect to any amount of loss not so paid the remaining insurers then continue to contribute equal shares of the remaining amount of the loss until each such insurer has paid its limit in full or the full amount of the loss is paid. (b) Contribution by Limits. If any of such other' insurance does not provide for contribution by equal shares, the Company shall not be liable for a greater proportion of such loss than the applicable limit of liability under this policy for such loss bears to the total appli- cable limit of liability of all valid and collectible insurance against such loss. 7. SUBROGATION. In the event of any payment under this policy, the Company shall be subrogated to all the insured's rights of recovery therefor against any person or organization and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The insured shall do nothing after loss to prejudice such rights. 8. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop the Company from asserting any right under the terms of this policy, nor shall the terms of this policy be waived or changed, except by endorsement issued to form a part of this policy. 9. ASSIGNMENT. Assignment of interest under this policy shall not. bind the Company until its consent is endorsed hereon; if, however, the named insured shall die, such insurance as is afforded by this policy shall apply (1 ) to the named insured's legal representative, as the named insured,, but only while acting within the scope of his duties as such, OCONDITIONS (continued) (34, and (2) with respect to the property of the named insured, to the person having proper temporary custody thereof., as insured, but only until the appointment and rlualification of the legal representative. 10. THREE YEAR POLICY. If this policy is issued for a period of three years, any limit of the Company's liability stated in this policy as "aggregate" shall apply separately to each consecutive annual period thereof. If the premium for the three year period is not paid in advance, the premium shall be determined on the basis of, the rates in effect at the inception of each policy year. 11. CANCELATION. This policy may be canceled by the named insured by mailing to the Company written notice stating when thereafter the cancelation shall be effective. This policy may be canceled by the Company by mailing to the named insured at the address shown in this policy, written notice stating when not less than ten days thereafter such cancelation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The effective date and hour of cancelation stated in the notice shall become the end of the policy period. Delivery of such written notice -either by the named insured or by the Company shall be equivalent to mailing. If the named insured cancels, earned premium shall be computed in accordance with the customary short rate tr,ole and procedure. If the Company cancels, earned premium shall be computed pro rota. Premium adjustment may be made either at the time cancelation is effected or as soon as practicable after cancelation becomes effective, but payment or tender of unearned premium is not a condition of cancelation. 12. LIBERALIZATION CLAUSE. If during the period that insurance is in force under this policy, or within 45 days prior to the,inception date thereof, on behalf of this Company there be adopted, or filed with and approved or accepted by the insurance supervisory authorities, all in conformity with law, any changes in the form attached to this policy by which this form of insurance could be extended or broadened without increased premium charge by endorsement or substitution of form, then such extended or broadened insurance shall inure to the benefit of the insured hereunder as though such endorsement or sub- stitution of form had been made. (Not applicable in Texas.) 13. DECLARATIONS. By acceptance of this policy, the named insured agrees that the statements in the declarations are his agreements and representations, that this policy is issued in reliance upon the, truth of such representations and that this policy embodies all agreements existing between himself and the Company or any of its agents relating to this insurance. SUPPLEMENTARY PAYMENTS The Company will pay, in addition to the applicable limit of liability: (a) all expenses incurred by the Company, all costs taxed against the insured in any suit defended by the Company and all interest on the entire amount of any judgment therein which accrues after entry of the judgment and before the Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of the Company's liability thereon; (b) premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of accident or traffic law violation arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but the Company shall have no obligation to apply for or furnish any such bonds, (c) expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this policy applies; . (d) reasonable expenses incurred by the insured at the Company's request in assisting the Company in the investigation or defense of any claim or suit, including actual loss of earnings not to exceed $25 per day. The endorsement below modifies the provisions of the policy relating to ALL GENERAL LIABILITY AND MEDICAL PAYMENTS INSURANCE OTHER THAN COMPREHENSIVE PERSONAL AND FARMER'S COMPREHENSIVE PERSONAL INSURANCE. NUCLEAR. ENERGY LIABILITY EXCLUSION ENDORSEMENT It is agreed that: I. The policy does not apply: A. Under any Liability Coverage, to bodily injury. or property damage (11 with respect to which an insured under the policy is also an in under a nuclear energy liability policy issued by uclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwnters.or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (2) resulting from the hazardous properties of nuclear material and with respect to which (a) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or Ib) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any, agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. B. Under any Medical Payments Coverage, or under any Supple- mentary Payments provision relating to .first aid, to expenses incurred with respect to bodily injury resulting from the haz- ardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. C. Under any Liability Coverage, to bodily injury or property damage resulting from the hazardous properties of nuclear mate- rial, if (1) the nuclear material (a) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (b) has been discharged or dispersed therefrom; (2) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, trans- ported or disposed of by or on behalf of an insured,; or (3) the bodily injury or property damage arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (3) applies only to.property damage to such nuclear facility and any property thereat. II. As used in this endorsement: '- "hazardous properties" include radioactive, toxic or explosive properties, "nuclear material" means source material, special nuclear material or byproduct material; "source material", "special nuclear material", and "byproduct mate- M • CENDORSEME rial• have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; "waste" means any waste material (1) containing byproduct mate- rial and (2) resulting from the operation by any person or organiza- tion of any nuclear facility included within the,definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear facility" means (a) any nuclear reactor, (b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste, (c) any equipment or device used for the processing, fabricating or NT (continued) 0 alloying of "special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (d) any structure, basin., excavation, premises or place pupated of used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; "property damage" includes all forms of radioactive contamination of property. K SMP AMENDATORY ENDORSE (::, MP 01 27 (Ed. 12 79) 9 4 1979 In consideration of the premium charged, this endorsement is made a ery for loss. However, it is agreed that the insured part of this policy. may, as respects property in transit, accept such The SMP Policy is amended as follows: bills of lading, receipts or contracts of transporta- tion as are ordinarily issued by carriers containing 1. SUBROGATION a limitation.as to the value of such goods or mer- General Condition 6. "Subrogation" of the SMP Policy Condi- chandise. tions and Definitions Form is replaced by the following: 2. PERMITS AND USE 6. Subrogation. (a) In the event of any payment under this policy, the Company shall be subrogated to all the in- sured's rights of recovery against any person or organization and the insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The insured shall do nothing after loss to prejudice such rights except as provided below. (b) When SMP Condominium Additional Policy Provision Endorsement MP 00 80 is attached to this policy, the waiver of subrogation condition, paragraph 1. of Form MP 00 80 is deleted and replaced by the following: The Company waives its rights to subrogation against any unit -owner of the condominium described in the declarations. (c) As respects coverage provided under Section I —Property Coverage of this policy, this insurance shall not be invalidated should the Insured waive in writing any or all right of recovery against any party for loss. Provided, however, that in the event the insured waives only a part of his rights against any particular third party, this Company shall be subrogated with respect to all rights of recovery which the insured may retain against any such third party for loss from the perils insured against to the extent that payment therefor is made by this Company; all subject to the following additional provisions: (1) This condition does not apply to crime, inland marine or glass coverage written under Section I Property Coverage of this policy; (2) If made before loss has occurred, such agreement may run in favor of any third party; (3) If made after loss has occurred, such agreement may run only in favor of a third party falling within one of the fol- lowing categories at the time of loss: (i) a third party insured under this policy; or (ii) a corporation, firm, or entity (a) owned or controlled by the named insured or in which the named in- sured owns capital stock or other proprietary interest, or (b) owning or controlling the named insured or owning or controlling capital stock or other proprietary interest in the named insured; or (iii) a tenant of the named insured.' (d) Except as provided in paragraphs (b) and (c) above the Company shall not be bound to pay any loss if the insured has impaired any right of recov- In the Conditions Applicable to Section I of the SMP Policy Conditions and Definitions Form: A. Condition 16. Permits and Use is amended by adding the following: (c) Without prejudice to this insurance, for there to be an error in stating the name, number, street or location of any building(s) covered hereunder, or of building(s) and personal property if covered under a single item of insurance, where there is no willful concealment or mis- representation. B. Condition 17. Vacancy, Unoccupancy and Increase of Hazard is replaced by the following: Permission is granted for: (a) The described building(s) to be vacant without lim- it of time, subject to a 15% reduction in the amount of loss payment otherwise due under this policy while the involved building(s) is vacant beyond a period of 60 consecutive days. This penal- ty will not be applicable during the period of any extension whereby the 60 day period is extended by endorsement. ("Vacant" or "Vacancy" means containing no contents pertaining to operations or activities customary to occupancy of the building. A building in the course of construction shall not be considered vacant.) (b) Unoccupancy. . Provisions (a) and (b) above do not apply to the perils of vandalism or malicious mischief or sprinkler leakage. (c) Increased hazards and for change in use or occu- pancy. 3. PERSONAL PROPERTY OF THE INSURED The following words are deleted from Personal Property of the Insured in Section I. Property Covered: A. "and usual to the occupancy of the insured" in the General Personal Property Form and Special Per- sonal Property Form B. "and usual to the occupancy of the named insured" in the Condominium Unit -owners General Personal Prop- erty Form and Condominium Unit -owners Special Per- sonal Property Form 4. EXTENSIONS OF COVERAGE In the General Building Form Special Building Form Condominium General Building Form Condominium Special Building Form the following words are deleted from A. Newly Acquired Prop- erty under Extensions of Coverage: "but not exceeding $100,000" MP 01 27 (Ed. 12 79) 0 MP 01 03 (Ed. 02 79) (� CALIFORNIA AMENDATORY ENDORSEMENT ■ ■ The SMP Policy is amended as follows: I. Exclusion A. in Section I, Special Multi -Peril Policy: General Building Form General Personal Property Form Special Building Form and exclusion A.1.in Special Personal Property Form are deleted and replaced by the following: Loss occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of buildings or structures; or by order of any civil authority except acts of destruction at the time of and for the purpose of preventing the spread of fire, provided that such fire did not originate from any of the perils excluded by this Policy. IL GENERAL CONDITIONS, SMP Policy Conditions and Definitions Form: A. The following is added to the Cancellation Provision: If the Company cancels this policy for reasons other than nonpayment of the premium, notice of cancellation shall state that any return premium not already paid to the named insured will be refunded upon demand. B. The following is added to the Mortgagee. Clause —Applicable only to Buildings. If the insured does not submit a proof of loss, the mortgagee shall within sixty (60) days submit a proof of loss in accordance with conditions of submission of proof by the insured under "Conditions Applicable to Section I" and be subject to the conditions relating to appraisal time of payment and bringing of suit. This Endorsement must be attached to Change Endorsement Form when issued after the Policy is written. MP 01 03 (Ed. 02 79) SPECIAL MULTI -PERIL POLICY' CONDITIONS A,h ..o DEFINITIONS MP 00 90 ® GENERAL CONDITIONS (Ed. 07 77) The following Conditions apply to Section I and II except as otherwise indicated. Additional Conditions or modifications of the following Conditions may appear in the specific coverage sections. 1. Premium. All premiums for this policy shall be computed in actor- , 6. dance with the Company's rules, rates, rating plans, premiums and mini- mum premiums applicable to the insurance afforded herein. If this policy is issued for a period in excess of one year with a specified expiration date and a premium is payable at each anniversary, such pre- mium shall be determined annually on the basis of the rates in effect at the anniversary date. If this policy is issued for a period without a specified expiration date, it may be continued by payment of the required premium for the succeed- ing annual period. Such premium must be paid to the Company prior to each anniversary date; if not so paid, this policy shall expire on the first anniversary date that the said premium has not been received by the Company. 2. Time of Inception. To the extent that coverage in this policy replaces coverage in other policies terminating noon standard time on the incep- tion date of this policy, coverage under this policy shall not become effec tive until such other coverage has terminated. 3. Cancellation. This policy may be cancelled by the named insured by surrender thereof to the Company or any of its authorized agents or by mailing to the Company written notice stating when thereafter the cancel- lation shall be effective. This policy may be cancelled by the Company by mailing to the named insured at the mailing address shown in the Dec- larations, written notice stating when not less than ten days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured or by the Company shall be equivalent to mailing. If the named insured cancels, the Company shall, upon demand and sur- render of this policy, refund the excess of paid premium above the cus- tomary short rates for the expired time. If the Company cancels, earned premium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned pre- mium is not a condition of cancellation. Notice of cancellation addressed to the named insured and mailed to the mailing address shown in the Declarations shall be sufficient notice to effect cancellation of this policy. 4. Concealment or Fraud. This policy is void if any insured has inten- tionally concealed or misrepresented any material fact or circumstance relating to this insurance. 5. Assignment. Assignment of interest under this policy shall not bind the Company until its consent is endorsed hereon. However, if the named insured shall die, this insurance shall apply: (a) to the named insured's legal representative, as the named insured, but only while acting within the scope of his duties as such; or (b) to the person having temporary custody of the property of the named insured but only until the appointment and qualification of the legal representative. Subrogation. (a) In the event of any payment under this policy, the Company shall be subrogated to all the insured's rights of recovery against any person or organization and the insured shall execute and deliver instru- ments and papers and do whatever else is necessary to secure such rights. The insured shall do nothing after loss to prejudice such rights. (b) The Company shall not be bound to pay any loss if the insured has impaired any right of recovery for loss; however, it is agreed that the insured may: (1) as respects property while on the premises of the insured, release others in writing from liability for loss prior to loss, and such release shall not affect the right of the insured to recover hereunder, and (2) as respects property in transit, accept such bills of lading, receipts or contracts of transportation as are ordinarily issued by carriers containing a limitation as to the value of such goods or merchandise. 7. Inspection and Audit. The Company shall be permitted but not obli- gated to inspect the named insured's property and operations at any time. Neither the Company's right to make inspections nor the making thereof nor any report thereon shall constilute an undertaking on behalf of or for the benefit of the named insured or others to determine or warrant that such property or operations are safe or healthful or are in compliance with any law, rule or regulation. The Company may examine and audit the named insured's books and records at any time during the policy period and extensions and within three years after the final termination of this policy, as far as they relate to the subject matter of this insurance. 8. Liberalization Clause. In the event any filing is submitted to the in- surance supervisory authorities on behalf of the Company, and: (a) the filing is approved or accepted by the insurance authorities to be effective while this policy is in force or within 45 days prior to its inception; and (b) the filing includes insurance forms or other provisions that would extend or broaden this insurance by endorsement or sub- stitution of form, without additional premium; the benefit of such extended or broadened insurance shall inure to the benefit of the insured as though the endorsement or substitution of form had been made. 9. Insurance Under More Than One Coverage, Part or Endorsement. In the event that more than one coverage, part or endorsement of this policy insures the same loss, damage or claim, the Company shall not be liable for more than the actual loss or damage sustained by the insured. 10. Waiver or Change of Provisions. The terms of this insurance shall not be waived, changed or modified except by endorsement issued to form a part of this policy. MP 00 90 (Ed. 07 77) Page 1 of 6 CM JIONS APPLICABLE TO SECTION 1 1. Policy Period, Territory. Section I of this policy applies only to loss to property during the policy period while such property is within or be- tween the fifty states of the United States of America, the District of Co- lumbia and Puerto Rico. 2. Deductible. Unless otherwise provided in the Declarations: (a) The sum of $100 shall be deducted from the amount of, loss to property in any one occurrence. This deductible shall apply: (1) separately to each building, including personal property therein; (2)separately to personal property in each building if no coverage is provided on the containing building; and (3)separately to personal property in the open (including within vehicles). (b)The aggregate amount of this deductible in any one occurrence shall not exceed $1,000. 3. Coinsurance Clause. The Company shall not be liable for a greater proportion of any loss to property covered than the limit of liability under this policy for such property bears to the amount produced by mul- tiplying the actual cash value of such property at the time of the loss by the coinsurance percentage stated in the Declarations. In the event that the aggregate claim for any loss is both less than $10,000 and less than 5% of the limit of liability for all contributing insurance applicable to the property involved at the time such loss occurs, no special inventory or appraisement of the undamaged property shall be required providing that nothing herein shall be construed to waive the application of the first paragraph of this clause. If insurance under Section I of this policy is divided into separate limits of liability, the foregoing shall apply separately to the property covered under each such limit of liability. 4. Removal. This policy covers loss by removal of the property covered hereunder from premises endangered by the perils insured against, and the amount of insurance applies pro rata for five days at each proper place to which such property shall necessarily be removed for preservation. 5. Debris Removal. This policy covers expense incurred in the removal of debris of the property covered which may be occasioned by loss by any of the perils insured against in this policy. The total amount recoverable under this policy for both loss to property and debris removal expense shall not exceed the limit of liability applying to the property. Cost of re- moval of debris shall not be considered in the determination of actual cash value when applying the Coinsurance Clause. 6. War Risk And Governmental Action Exclusion. This policy under Sec- tion I shall not apply to loss caused, directly or indirectly, by or due to any act or condition incident to the following: (a) hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack (i) by any government or sovereign power (de jure or de facto), or by any authority maintaining or using military, naval or air forces; or (ii) by military, naval or air forces_, or (iii) by an agent of any such government, power, authority or forces, it being under- stood that any discharge, explosion or use of any weapon of war em- ploying nuclear fission or fusion shall be conclusively presumed to be such a hostile or warlike action by such a government, power, authority or forces; (b) insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; seizure or destruction under quarantine or custom's regulations, confiscation by order of any gov- ernment or public authority, or risks of contraband or illegal trans- portation or trade. 7. Nuclear Clause And Nuclear Exclusion. (a) Nuclear Clause (Not Applicable in New York). The word "fire" in this policy is not intended to and does not embrace nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and loss by nuclear reaction or nuclear radiation or radioactive contamination is not intended to be and is not insured against by this policy, whether such loss be direct or indirect, proxi- mate or remote, or be in whole or in part caused by, contributed to, or aggravated by "fire" or any other perils insured against by this policy. However, subject to the foregoing and all provisions of this policy, direct loss by "fire" resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured against by this policy. (b) Nuclear Clause (Applicable only in New York): This policy does not cover loss or damage caused by nuclear reaction or nuclear radiation or radioactive contamination, all whether directly or indirectly result- ing from an insured peril under this policy. (c) Nuclear Exclusion (Not Applicable in New York): Loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, or due to any act or condition incident to any of the foregoing is not insured against by this policy, whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by any of the perils in- sured against by this policy; and nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, is not "explosion" or "smoke". This clause applies to all perils insured against hereunder except the peril of fire, which is otherwise provided for in the nuclear clause above. S. Other Insurance. (a) If at the time of loss there is other insurance written in the name of the insured upon the same plan, terms, conditions and provisions as contained in this policy, herein referred to as Contributing Insur- ance, the Company shall be liable for no greater proportion of any loss than the limit of liability under this policy bears to the whole amount of insurance covering such loss. (b) If at the time of loss there is other insurance other than that as described in (a) above, the Company shall not be liable for any loss hereunder until: (1) the Liability of such other insurance has been exhausted, and (2) then for only such amount as may exceed the amount due from such other insurance, whether collectible or not. 9. Duties Of The Named Insured After A Loss. In case of loss the named insured shall: (a) give immediate written notice of such loss to the Company; (b) protect the building and personal property from further damage, make reasonable temporary repairs required to protect the property, and keep an accurate record of repair expenditures; (c) prepare an inventory of damaged personal property showing in de- tail, quantity, description, actual cash value and -amount of loss. Attach to the inventory all bills, receipts and related documents that sub- stantiate the figures in the inventory; (d) exhibit the remains of the damaged property as often as may be reasonably required by the Company and submit to examination un- der oath; (e) submit to the Company within 60 days after requested a signed, sworn statement of loss that sets forth to the best of the named in- sured's knowledge and belief: (1) the time and cause of loss; (2)interest of the insured and all others in the property involved and all encumbrances on the property; (3) other policies of insurance that may cover the loss; (4) changes in title or occupancy of the property during the term of the policy; (5) specifications of any damaged building and detailed estimates for repair of the damage; (6) an inventory of damaged personal property described in (c) above; (f) give notice of such loss to the proper police authority if loss is due to a violation of law. 10. Appraisal. If the named insured and the Company fail to agree on the amount of the loss, either can demand that the amount of loss be set by appraisal. If either party makes a written demand for appraisal, each shall select a competent independent appraiser. Each shall notify the other of the selected appraiser's identity within twenty (20) days of the receipt of the written demand. MP 00 90 (Ed. 07 77) Page 2 of 6 The two appraisers shall select a competent, impartial umpire. If the ap- praisers are unable to agree upon an umpire within fifteen (15) days, the named insured or the Company may petition a judge of a Court of Record in the state where the insured premises is located to select an umpire. The appraisers shall then set the amount of the loss. If the appraisers sub- mit a written report of an agreement to the Company, the amount agreed upon shall be the amount of the loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Writ- ten agreement signed by any two of these three shall set the amount of loss. Each appraiser shall be paid by the party selecting that appraiser. Other expenses of the appraisal and compensation of the umpire shall be paid equally by the named insured and the Company. 11. Company Options. If the Company gives notice within thirty (30) days after it has received a signed, sworn statement of loss, it shall have the option to take all or any part of the property damaged at an agreed value, or to repair, rebuild or replace it with equivalent property. 12. Abandonment Of Property. The Company need not accept any prop- erty abandoned by an insured. 13. Payment Of Loss. The Company will pay all adjusted claims within thirty (30) days after presentation and acceptance of the proof of loss. 14. Privilege To Adjust With Owner. (a) Except as provided in (b) below, or unless another payee is speci- fically named in the policy, loss, if any, shall be adjusted with and payable to the named insured. (b) In the event claim is made for damage to property of others held by the insured, the right to adjust such loss or damage with the owner or owners of the property is reserved to the Company and the receipt of payment by such owner or owners in satisfaction thereof shall be in full satisfaction of any claim of the insured for which such pay- ment has been made. If legal proceedings be taken to enforce a claim against the insured as respects any such loss or damage, the Company reserves the right at its option without expense to the insured to conduct and control the defense on behalf of and in the name of the insured. No action of the Company in such regard shall increase the liability of the Company under this policy, nor increase the limits of liability specified in the policy. 15. Suit. No suit shall be brought on this policy unless the insured has complied with all the policy provisions and has commenced the suit within one year after the loss occurs. 16. Permits And Use. Except as otherwise provided, permission is granted: (a) to make alterations and repairs; (b) in the event of loss hereunder, to make reasonable repairs, tem- porary or permanent, provided such repairs are confined solely to the protection of the property from further damage, and provided further that the insured shall keep an accurate record of such repair ex- penditures. The cost of any such repairs directly attributable to dam- age by any peril insured against shall be included in determining the amount of loss hereunder. Nothing herein contained is intended to modify the policy requirements applicable in case loss occurs, and in particular the requirement that, in case loss occurs, the insured shall protect the property from further damage. 17. Vacancy, Unoccupancy and Increase of Hazard. (a) This Company shall not be liable for loss occurring while a de- scribed building, whether intended for occupancy by owner or tenant is vacant beyond a period of sixty consecutive days. "Vacant" or "Vacancy" means containing no contents pertaining to operations or activities customary to occupancy of the building, but a building in process of construction shall not be deemed vacant. (b) Permission is granted for unoccupancy. (c) Unless otherwise provided in writing added hereto this Company shall not be liable for loss occurring while the hazard is increased by any means within the control or knowledge of the insured. 18. Protective Safeguards. If as a condition of this insurance that the in- sured shall maintain so far as is within his control such protective safe- guards as are set forth by endorsement hereto. Failure to maintain such protective safeguards shall suspend this insur- ance only as respects the location or situation affected for the time of such discontinuance. 19. Mortgage Clause —Applicable Only To Buildings. This clause is effec- tive if a mortgagee is named in the Declarations. The word "mortgagee" includes "trustee". Loss to buildings shall be payable to the named mort- gagee as interest may appear, under all present or future mortgages on the buildings described in the Declarations in order of precedence of mort- gages on them. As it applies to the interest of any mortgagee designated in the Declarations, this insurance shall not be affected by any of the following: (a) any act or neglect of the mortgagor or owner of the described buildings; (b) any foreclosure or other proceedings or notice of sale relating to the property; (c) any change in the title or ownership of the property; (d) occupancy of the premises for purposes more hazardous than are permitted by this policy; provided, that in case the mortgagor or owner shall neglect to pay any pre- mium due under this policy, the mortgagee shall, on demand, pay the pre- mium. The mortgagee shall notify the Company of any change of ownership or occupancy or increase of hazard which shall come to the knowledge of the mortgagee. Unless permitted by this policy, such change of ownership or occupancy or increase of hazard shall be noted on the policy and the mortgagee shall on demand pay the premium for the increased hazard'for the term it existed under this policy. If such premium is not paid, this policy shall be null and void. The Company reserves the right to cancel this policy at any time as pro- vided by its terms. If so cancelled, this policy shall continue in force for the benefit only of the mortgagee for ten days after notice to the mortgagee of such cancellation and shall then cease. The Company shall have the right to cancel this agreement on ten days notice to the mortgagee. . When the Company shall pay the mortgagee any sum for loss under this policy, and shall claim that, as to the mortgagor or owner, no liability therefor existed, the Company shall, to the extent of such payment, be thereupon legally subrogated to all the rights of the mortgagee to whom such payment shall have been made, under the mortgage debt. In lieu of taking such subrogation, the Company may, at its option, pay to the mortgagee the whole principal due or to grow due on the mortgage, with interest accrued and shall thereupon receive a full assignment and trans- fer of the mortgage and of all such other securities. However, no subroga- tion shall impair the right of the mortgagee to recover the full amount of said mortgagee's claim. 20. Recoveries. In the event the Company has made a payment for loss under the policy and a subsequent recovery is made of the lost or dam- aged property, the insured shall be entitled to all recoveries in excess of the amount paid by the Company, less only the actual cost of effecting such recoveries. 21. Loss Clause. Any loss hereunder shall not reduce the amount of this insurance. 22. No Benefit To Bailee. This insurance shall not inure directly or in- directly to the benefit of any carrier or other bailee. 23. No Control. This insurance shall not be prejudiced: (a) by any act or neglect of the owner of any building if the insured is not the owner thereof, or by any act or neglect of any occupant (other than the insured) of any building when such act or neglect of the owner or occupant is not within the control of the insured, or (b) by failure of the insured to comply with any warranty or condi- tion contained in any endorsement attached to this policy with re- gard to any portion of the premises over which the insured has no control. MP 00 90 (Ed. 07 77) Page 3 of 6 CONr,iTIONS APPLICABLE TO SECTION II 1. Supplementary Payments. The Company will, pay, in addition to the applicable limit of liability: (a) all expenses incurred by the Company, all costs taxed against the insured in any suit defended by the Company and all interest on the entire amount of any judgment therein which accrues after entry of the judgment and before the Company has paid or tendered' or de- posited in court that part of the judgment which does not exceed the limit of the Company's liability thereon; (b) premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of accident or traffic law violation arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but the Company shall have no obligation to apply for or furnish any such bonds; (c)expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this policy applies; (d) reasonable expenses incurred by the insured at the Company's request in assisting the Company in the investigation or defense of any claim or suit, including actual loss of earnings not to exceed $25 per day. 2. Premium. Premium designated in this policy as "advance premium" is a deposit premium only which shall be credited to the amount of the earned premium due at the end of the policy period. At the close of each period (or part thereof terminating with the end of the policy period) designated in the Declarations as the audit period the earned premium shall be computed for such period and, upon notice thereof to the named insured shall become due and payable. If the total earned premium for the policy period is less than the premium previously paid, the Company shall return to the named insured the unearned portion paid by the named insured. The named insured shall maintain records of such information as is neces- sary for premium computation and shall send copies of such records to the Company at the end of the policy period and at such times during the policy period as the Company may direct. 3. Financial Responsibility Laws. When this policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, such insurance as is afforded by this policy for bodily injury liability or for property damage liability shall com- ply with the provisions of such law to the extent of the coverage and limits of liability required by such law. The insured agrees to reimburse the Com- pany for any payment made by the Company which it would not have been obligated to make under the terms of this policy except for the agreement contained in this paragraph. 4. Insured's Duties in the Event of Occurrence, Claim or Suit. (a) In the event of an occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable in- formation with respect to the time, place and circumstances thereof and the names and addresses of the injured and of available witnesses shall be given by or for the insured to the Company or any of its authorized agents as soon as practicable. (b) If claim is made or suit is brought against the insured, the insured shall immediately forward to the Company every demand, notice, summons or other process received by him or his representative. (c) The insured shall cooperate with the Company and, upon the Com- pany's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of injury or damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of wit- nesses. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident. 5. Medical Reports; Proof and Payment of Claim. As soon as practicable the insured person or someone on his behalf shall give to the Company written proof of claim, under oath if required, and shall, after each re- quest from the Company, execute authorization to enable the Company to obtain medical reports and copies of records. The injured person shall submit to physical examination by physicians selected by the Company when and as often as the Company may reasonably require. The Company may pay the injured person or any person or organization rendering the services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of lia- bility of any person or, except hereunder, of the Company. 6. Action Against Company. No action shall lie against the Company un- less, as a condition precedent thereto, there shall have been full Com- pliance with all of the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the Company. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. No person or organization shall have any right under this policy to join the Company as a party in any action against the insured to determine the insured's liability, nor shall the Company be impleaded by the insured or his legal representative. Bankruptcy or insolvency of the insured or of the insured's estate shall not relieve the Company of any of its obligations hereunder. 7. Other Insurance. The insurance afforded by this policy is primary in- surance, except when stated to apply in excess of or contingent upon the absence of other insurance. When this insurance is primary and the in- sured has other insurance which is stated to be applicable to the loss on an excess or contingent basis, the amount of the Company's liability under this policy shall not be reduced by the existence of such other insurance. When both .this insurance and other insurance apply to the loss on the same basis, whether primary, excess or contingent, the Company shall not be liable under this policy for a greater proportion of the loss than that stated in the applicable contribution provision below: (a) Contribution by Equal Shares. If all of such other valid and collect- ible insurance provides for contribution by equal shares, the Company shall not be liable for a greater proportion of such loss than would be payable if each insurer contributes an equal share until the share of each insurer equals the lowest applicable limit of liability under any one policy or the full amount of the loss is paid, and with respect to any amount of loss not so paid the remaining insurers then continue to contribute equal shares of the remaining amount of the loss until each such insurer has paid its limit in full or the full amount of the loss is paid. (b) Contribution by Limits. If any of such other insurance does not provide for contribution by equal shares, the Company shall not be liable for a greater proportion of such loss than the applicable limit of liability under this policy for such loss bears to the total applicable limit of liability of all valid and collectible insurance against such loss. 8. Annual Aggregate. If this policy is issued for a period in excess of one year, any limit of the Company's liability stated in this policy as "ag- gregate" shall apply separately to each consecutive annual period. 9. Nuclear Exclusion. I. This policy does not apply: (a) Under any Liability Coverage, to bodily injury or property damage (1) with respect to which an insured under this policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termina- tion upon exhaustion of its limit of liability; or (2) resulting from the hazardous properties of nuclear material and with respect to which (i) any person or organization is re- quired to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (ii) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. (b) Under any Medical Payments Coverage, or under any Supplemen- tary Payments provision relating to first aid, to expenses incurred with respect to bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear fa- cility by any person or organization. MP 00 90 (Ed. 07 77) Page 4 of 6 (c) Under any Liability Coverage, to bodily injury or property damage resulting from the hazardous properties of nuclear material, if (1) the nuclear material (i) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (ii) has been dis- charged or dispersed therefrom; (2) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, trans- ported or disposed of by or on behalf of an insured; or (3) the bodily injury or property damage arises out of the furn- ishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, op- eration or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (3) applies only to property damage to such nuclear facility and any property thereat. Il. As used in this exclusion "hazardous properties" include radioactive, toxic or explosive prop- erties; "nuclear material" means source material, special nuclear material or byproduct material; "source material", "special nuclear material", and "byproduct ma- terial" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; "waste" meanss any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear facility" means (a) any nuclear reactor, �b) any equipment or device designed or used for (1) separat- ing the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste, (c) any equipment or device used for the processing, fabricat- ing or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; "property damage" includes all forms of radioactive contamination of property. MP 00 90 (Ed. 07 77) Page 5 of 6 DEFIN411ONS APPLICABLE TO SECTION 11 When used in the provisions applicable to Section•II of this policy (includ- ing endorsements forming a part hereof): "automobile" means a land motor vehicle, trailer or semitrailer designed for travel on public roads (including any machinery or apparatus attached thereto), but does not include mobile equipment; "bodily injury" means bodily injury, sickness or disease sustained by any person which occurs during the policy period, including death at any time resulting therefrom; "collapse hazard" includes "structural property damage" as defined herein and property damage to any other property at any time resulting therefrom. "Structural property damage" means the collapse of or struc- tural injury to any building or structure due to (1) grading of land, ex- cavating, borrowing, filling, back -filling, tunneling, pile driving, cofferdam work or caisson work, or (2) moving, shoring, underpinning, raising or demolition of any building or structure or removal or rebuilding of any structural support thereof. The collapse hazard does not include property damage (1) arising out of operations performed for the named insured by independent contractors, or (2) included within the completed opera- tions hazard or the underground property damage hazard, or (3) for which liability is assumed by the insured under an incidental contract; "completed operations hazard" includes bodily injury and property dam- age arising out of operations or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily injury or prop- erty damage occurs after such operations have been completed or aban- doned and occurs away from premises owned by or rented to the named insured. "Operations" include materials, parts or equipment furnished in connection therewith. Operations shall be deemed completed at the earliest of the following times: (1) when all operations to be performed by or on behalf of the named insured under the contract have been completed, (2) when all operations to be performed by or on behalf of the named insured at the site of the operations have been completed, or (3) when the portion of the work out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. Operations which may require further service or maintenance work, or correction, repair or replacement because of any defect or deficiency, but which are otherwise complete, shall be deemed completed. The completed operations hazard does not include bodily injury or prop- erty damage arising out of (a) operations in connection with the transportation of property, un- less the bodily injury or property damage arises out of a condition in or on a vehicle created by the loading or unloading thereof, (b) the existence of tools, uninstalled equipment Dr abandoned or unused materials, or (c) operations for which the classification stated in the policy or in the company's manual specifies "including completed operations"; "elevator" means any hoisting or lowering device to connect floors or landings, whether or not in service, and all appliances thereof including any car, platform, shaft, hoistway, stairway, runway, power equipment and machinery; but does not include an automobile servicing hoist, or a hoist without a platform outside a building if without mechanical power or if not attached to building walls, or a hod or material hoist used in altera- tion, construction or demolition operations, or an inclined conveyor used exclusively for carrying property or a dumbwaiter used exclusively for carrying property and having a compartment height not exceeding four feet; "explosion hazard" includes property damage arising out of blasting or explosion. The explosion hazard does not include property damage (1) aris- ing out of the explosion of air or steam vessels, piping under pressure, prime movers, machinery or power.transmitting equipment, or (2) arising out of operations performed for the named insured by independent con- tractors, or (3) included within the completed operations hazard or the underground property damage hazard, or (4) for which liability is assumed by the insured under an incidental contract; "incidental contract" means any written (1) lease of premises, (2) ease- ment agreement, except in connection with construction or demolition operations on or adjacent to a railroad, (3) undertaking to indemnify a municipality required by municipal ordinance, except in connection with work for the municipality, (4) sidetrack agreement, or (5) elevator mainte- nance agreement; "insured" means any person or organization qualifying as an insured in the "Persons Insured" provision of the applicable insurance coverage. The insurance afforded applies separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the company's liability; "mobile equipment" means a land vehicle (including any machinery or apparatus attached thereto), whether or not self-propelled, (1) not subject to motor vehicle registration, or (2) maintained for use exclusively on premises owned by or rented to the named insured, including the ways immediately adjoining, or (3) designed for use principally off public roads, or (4) designed or maintained for the sole purpose of affording mobility to equipment of the following types forming an integral part of or per- manently attached to such vehicle: power cranes, shovels, loaders, diggers and drills; concrete mixers (other than the mix -in -transit type); graders, scrapers, rollers and other road construction or repair equipment; air - compressors, pumps and generators, including spraying, welding and building cleaning equipment; and geophysical exploration and well servic- ing equipment; "named insured" means the person or organization named in Item 1. of the declarations of this policy; "named insured's products" means goods or products manufactured, sold, handled or distributed by the named insured or by others trading under his name, including any container thereof (other than a vehicle), but "named insured's products" shall not include a vending machine or any property other than such container, rented to or located for use of others but not sold; "occurrence" means an accident, including continuous or repeated ex- posure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured; "policy territory" means: (1) the United States of America, its territories or possessions, or Canada, or (2) international waters or air space, provided the bodily injury or property damage does not occur in the course of travel or transporta- tion to or from any other country, state or nation, or (3) anywhere in the world with respect to damages because of bodily injury or property damage arising out of a product which was sold for use or consumption within the territory described in paragraph (1) above, provided the original suit for such damages is brought within such territory; "products hazard" includes bodily injury and property damage arising out of the named insured's products or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily in- jury or property damage occurs away from premises owned by or rented to the named insured and after physical possession of such products has been relinquished to others; "property damage" means (1) physical injury to or destruction of tangible property which occurs during the policy period, including the loss of use thereof at any time resulting therefrom, or (2) loss of use of tangible prop- erty which has not been physically injured or destroyed provided such loss of use is caused by an occurrence during the policy period; "underground property damage hazard" includes underground property damage as defined herein and property damage to any other property at any time resulting therefrom. "Underground property damage" means property damage to wires, conduits, pipes, mains, sewers, tanks, tunnels, any similar property, and any apparatus in connection therewith, beneath the surface of the ground or water, caused by and occurring during the use of mechanical equipment for the purpose of grading land, paving, ex- cavating, drilling, borrowing, filling, back -filling or pile driving. The under- ground property damage hazard does not include property damage (1) arising out of operations performed for the named insured by independent contractors, or (2) included within the completed operations hazard, or (3) for which liability is assumed by the insured under an incidental con- tract. MP 00 90 (Ed. 07 77) Page 6 of 6 • �/+ Lr-'� REQUES., FOR CITY C®UNCIL`ACTIO /, Date 0 c Dor v�3 , 19 8 2 Submitted to: The Honorable Mayor and City Council ��1v �OV Submitted by: Charles W. Thompson, City Administrat s Prepared by: Vincent. G. Moorhouse, Director, Communi ;-vices�i! Subject: HUNTINGTON CENTRAL PARK/EQUESTRIAN CENTE LA EASE a Statement of Issue, Recommendation, Analysis, Funding Source, Alternativ ions, Attachments: STATEMENT OF ISSUE Better Built Enterprises, proposed lessee of the HCP equestrian center, has fulfilled requirements of a lease agreement which differs from the lease agreement approved by Council,on September 20, 1982. Hence, the Council -approved agreement is not valid and there is a need to approve and execute a new agreement. RECOMMENDATION Approve the lease agreement with Better Built Enterprises, Inc. for construction and operation of a twenty-five acre equestrian.center and authorize Mayor to execute same. AT\T AT V Q T Q � On September 20, 1982, the City Council approved the Equestrian Center Land Lease with Better Built Enterprises, Inc. Prior to the lessee receiving the executed copy of the agreement, he noticed that six items, previously agreed upon by city staff and himself, were not included in the agreement that was approved by Council. Research found that staff had failed to review the final document before submittal to Council to insure that such changes had been incorporated. The six changes are as follows: Page 1.3, VII.A.l. OLD: a) Twenty (2O)box stalls and twenty (20) stall barns within the first year and one hundred (100) paddocks within six months. NEW agreement deletes the twenty box stalls. Page 13, VII.A.2. OLD: a) Seventy-five (75) tie stall barns. NEW agreement calls for twenty tie stall barns. OLD: b) Seventy-five (75) horses and equipment. NEW agreements calls for twenty horses and equipment. (� PIO 4/81 REQUEST FOR CITY COUNCIL ACTION October 13, 1982 Page Two Subject: HUNTINGTON CENTRAL PARK/EQUESTRIAN CENTER LAND LEASE Page 13, VII.A.4. NEW agreement makes one hundred seat clubroom and fifty seat food and refreshment facility optional. Page 14, VII.A.5• NEW agreement` adds parenthetical sentence to last paragraph: (City approved.fees may be charged), and removes restriction. that no structure shall be higher than one story. Page 20, IX.A. NEW agreement changes amount of faithful performance of operations bond from $50,000 to $10,000. FUNDING SOURCE None. ALTERNATIVE ACTIONS. 1. Retain original lease and attempt to _require proposed_lesse to fulfill requirements, this would probably result in litigation; 2. Reject proposed lease and go back out to.bid. ATTACHMENTS Lease Agreement with Better Built Enterprises. VGM:MMB:cs .*::_. - is TABLE OF' CONTENTS ITEM SUBJECT PAGE I. DEFINITION 11. CONCESSION GRANTED A. Authorized Services B. Prohibited Services III. PREMISES IV. OPERATING RESPONSIBILITIES A. Cleanliness B. Conduct C. Disorderly Persons D. Employees - Affirmative Action E. Merchandise F. Hours/Days of Operation G. Equipment, Furnishings'and Expendables H. Maintenance of Equipment I. Maintenance of Premises J. Permits and Licenses K. Personal Attention L. Prices M. Signs and Advertisements N. Taxes 0. Use of Area P. Utilities Q. Vending Machines R. Safety S. Care of Horses V. TERM VI. RENTAL AND RENEGOTIATION V I I. IMPROVEMENTS A. Permanent Improvements Required During First Year B. Additional Improvements C. Detailed Plans and Specifications D. Installation of Improvements E. Water F. Construction Bonds G. Title to Permanent Improvements Vill. LIABILITY A. Hold Harmless B. Insurance C.. Worker's Compensation IX. FAITHFUL PERFORMANCE OF OPERATIONS BOND A. Amount of Bond B. Form, of Bond C. Agreement of Deposit and Indemnity D. Maintenance of Deposit X. DEFAULT AND CANCELLATION XI. ASSIGNMENT, SUBLEASE, BANKRUPTCY I I I 2 3 3 3 4 4 4 5 5 6 6 7 7 7 8 9 9 9 9 9 10 10 10 10 13 13 14 15 15 15 17 17 17 17 18 20 20 20 20 21 22 22 24 TABLE OF CONTENTS (cont.) ITEM SUBJECT XII. BUSINESS RECORDS XIII. REGULATIONS, INSPECTION AND DIRECTIVES A. Department Rules B. Laws and Ordinances C. Permissions D. Right of Inspection E. Nondiscrimination F. Name of Concession XIV. SURRENDER OF PREMISES XV. EXHIBITS TO CONCESSION AGREEMENT PAGE 25 26 26 27 2.7 27 28 28 29 29 i CONCESSION AGREEMENT HUNTINGTON CENTRAL PARK EQUESTRIAN CENTER THIS AGREEMENT, made and entered into this vP5-A day of ��Aw4-n , t� 19by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as CITY, and BETTER BUILT -ENTERPRISES., INC. , hereinafter referred to as CONCESSIONAIRE. RECITALS CITY advertised for proposals for the finance, design, construction, operation and maintenance of an equestrian center in Huntington Central Park, Huntington Beach, California, with proposals received on .._.August 3 , 1982; and, On August 11 , 1982, CITY determined that CONCESSIONAIRE had submitted the best, regular responsible proposal for said concession; and CONCESSIONAIRE desires the right and privilege to finance, construct, operate and maintain said concession; NOW, THEREFORE, it is agreed by CITY and CONCESSIONAIRE as follows: 1 � t 1 I. DEFINITIONS: For the purpose of this Agreement, the following words and.phroses are defined and shall be construed as hereinafter set out: CITY: City of Huntington Beach, California CONCESSION: This Agreement. CONCESSION MANAGER: The person employed by CONCESSIONAIRE with whom the Director deals on a daily basis regarding the subject concession. DIRECTOR: CONCESSIONAIRE: SUB -LICENSEE: II. CONCESSION GRANTED: A. Authorized Services: Director of the Department of Community Services or his authorized representative, acting as an agent of CITY., All actions of the -Director are subject to review and approval of the City Council of CITY. Any person or persons other than CONCESSIONAIRE that is granted any of the rights and privileges contained in Section II(A) of this Agreement, said grant to be given by CONCESSIONAIRE, subject to approval by CITY in the form of an amendment to this Agreement. CONCESSIONAIRE shall be granted the exclusive right to design, construct, maintain and operate the following services and facilities at the premises for the amusement and pleasure of the general public more fully described in various sections of this Agreement: I. Boarding facilities for horses. 2. Horse rental service. At least 20 horses must be available for rental within six months of execution of this Agreement. 3. Show arena -sales pavilion. 4. Training ring. Open for public use at a fee except that CONCESSIONAIRE may restrict its use on any day that he requires it for a show or event. J r l 1 CONCESSIONAIRE may also prohibit use of the training ring by those persons who, in his expert judgment, after observing their riding skills, do not possess horsemanship ability of a degree sufficient to insure their safe use of the ring and their equipment therein. S. Hay Barn - Optional. 6. Farrier Service - Optional. 7. Veterinary Service - Optional. Boarders may bring their own veterinarians onto the premises. 8. Western and Saddle Goods Retail Store - Optional. 9. Saddlery and Tack Repair Shop - Optional. 10. Clubhouse or Restaurant. Including a cocktail lounge which is optional with CONCESSIONAIRE. I I. Equestrian Center oriented community involvement, educational and school competition programs. 12. Hayrides - Optional. 13. Riding Instructional Service. Within six months of execution of this Agreement, CONCESSIONAIRE must provide an individual and group instruction program for both English and Western style and may provide any other style. 14. Any other structures, facilities or services, except as noted below, necessary for the successful operation of an Equestrian Center as requested by CONCESSIONAIRE and approved by the Director. CITY shall not grant. any other contract for a similar development within Huntington Central Park. B. Prohibited Services: The following shall be specifically prohibited at the Huntington Central Park Equestrian Center: Any activity which is not directly related to the purpose set forth in this Agreement for the subject concession. FA . � r � t III. IV. t 0 PREMISES: The . premises granted to CONCESSIONAIRE for the subject concession development and operation shall consist of approximately twenty-five (25) acres of property located at Huntington Central Park, Huntington Beach, California. See XV, EXHIBITS TO CONCESSION AGREEMENT. OPERATING RESPONSIBILITIES: A. Cleanliness: CONCESSIONAIRE shall keep the premises clean and sanitary at all times. No offensive or refuse matter, nor any substance constituting an unnecessary, unreasonable or unlawful fire hazard, or material detrimental to the public health, shall be permitted or remain thereon, and CONCESSIONAIRE shall prevent any such matter or material from being or accumulating upon said premises. CONCESSIONAIRE shall see that all garbage or refuse is collected as often as necessary and in no case less than twice a week and shall pay any charges which may be made for the removal of refuse or garbage. He shall furnish all equipment and materials necessary therefor, including trash receptacles of a size, type and number approved by CITY for use by public. CONCESSIONAIRE shall provide at his own expense and with the Director's approval, an enclosed area concealing the trash storage from public view. He shall empty trash receptacles into the trash storage area as often as necessary. In addition to the requirements set forth above, CONCESSIONAIRE shall remove debris and broken glass from the parking lot, and clean all manure from the premises on a daily basis. CONCESSIONAIRE will also clean all stalls and paddocks on a daily basis, removing all manure and replacing wet sawdust or straw. 'Manure will be kept in a manure compound, dumpster trash container or similar device which shall be located so as to prevent offensive odors and insects from bothering patrons. Manure shall be removed from the premises at least three times each week. Restrooms shall also be cleaned daily. If an adult fly population problem is created on premises or in the surrounding community, CONCESS!ONAIRE_ shall, under the guidance of appropriate agencies, institute a contact spray program. If CONCESSIONAIRE fails to perform the action necessary to comply with these provisions, the Director may immediately exercise option "d" under default provisions (item X). 3. I B. Conduct: CONCESSIONAIRE_ shall at all times conduct his business in a quiet and orderly manner to the reasonable satisfaction of the Director. C. Disorderly Persons: CONCESSIONAIRE shall use his best efforts to permit no intoxicated person or persons, profane or indecent language, or boisterous or loud conduct in or about the premises and will call upon the aid of peace officers to assist in maintaining peaceful conditions. He shall not knowingly permit the use or possession of any substance contrary to law on the premises, and shall promptly notify the authorities should he find persons doing so. D. Employees - Affirmative Action: CONCESSIONAIRE shall employ, train and supervise personnel with appropriate qualifications and experience, and in sufficent numbers to provide all services appropriate for the concession granted. An instructor, capable of teaching Western and an instructor capable of teaching English riding styles will be members of the staff and will be available for instruction during days and hours deemed acceptable to the Director. All employees of CONCESSIONAIRE shall be satisfactory to the Director as to their personal conduct, honesty, courtesy, efficiency, training, health, personal appearance, attitude toward the public and willingness to cooperate with Department employees. CONCESSIONAIRE_ shall not employ any person who shall use improper language, act in a loud or boisterous manner, use narcotics unless prescribed by a doctor or mistreat any animals. The Director shall have the right to observe and inspect employees at any time, and, in the event an employee is not satisfactory as herein defined, the Director may direct CONCESSIONAIRE to correct the cause of said dissatisfaction or to remove him from the premises within a reasonable tirne after written notice is received by CONCESSIONAIRE. Every employee shall wear a badge or patch indicating his name or employee number, and every employee not directly involved in animal maintenance shall also wear a clean uniform of a type approved by the Director. CONCESSIONAIRE shall provide all uniforms. a 4. e CONCESSIONAIRE shall provide the Director with certificates on each employee indicating freedom from communicable tuberculosis required by Section 5163 of the Public Resources Code. CONCESSIONAIRE_ shall agree and obligate itself not to discriminate during the performance of this Agreement against any employee or applicant for employment because of employee's or applicant's race, religion, national origin, ancestry, sex, age or physical handicaps. E. Merchandise: All merchandise including but not limited to sporting goods, garments, footwear, curios, food, drinks, beverages, confections, refreshments, etc., sold or kept for sale by CONCESSIONAIRE shall be first class in quality and shall conform to all Federal, State and CITY laws, ordinances and regulations in every respect. No imitation, adulterated, misbranded or impure articles shall be sold or kept for sale by CONCESSIONAIRE, and all edible merchandise kept on hand shall be stored and handled with due regard for sanitation. In addition, no substitutes, fillers, dilutants, nor reduction in size of standard manufactured or processed food products will be permitted. All merchandise kept for sale by CONCESSIONAIRE shall be kept subject to the approval or rejection of the Director and CONCESSIONAIRE shall remove from the premises any article which may be rejected and shall not again offer it for sale without the consent of the Director. The Director may order the improvement of the quality of any merchandise kept or offered for sale. CONCESSIONAIRE shall not dispense straws, sugar, salt, pepper or other condiments that are individually wrapped unless food or beverages are to be consumed indoors, nor shall he dispense soft drinks and other beverages in bottles. The sale of beer, wine or other intoxicating liquors will not be permitted, except by prior written approval of the City Council of CITY. CONCESSIONAIRE shall not sell or give away or otherwise dispose of any unshelled peanuts or other commodity which in the opinion of the Director will cause undue litter. F. Hours/Days of Operation: CONCESSIONAIRE shall keep the concession open daily, weather permitting, during such hours as required by the Director to adequately serve public demand. Any deviation from such days and hours shall be subject to the prior approval of the Director in writing. 5. � 1 ~ 1 � f t1 i G. Equipment, Furnishings and Expendables: All equipment, appliances, furnishings and materials necessary to the operation of the Equestrian Center shall he provided and installed as necessary at the. sole expense of CONCESSIONAIRE. All items permanently affixed to the ground or structures (except those items leased by CONCESSIONAIRE), such as counters, shelving, sinks, lighting fixtures, faucets, counter stools, feeding trays, water trays, saddle racks, etc., shall become the property of CITY free of liens and encumbrances at the conclusion of the term of this Agreement. In the event of default, CONCESSIONAIRE shall not sell or remove any of the above permanently affixed items without first obtaining permission from CITY. All items not permanently affixed (expendables) such as chairs, tables, cabinets, desks, display cases, electrical or gas appliances, etc., shall remain the property of CONCESSIONAIRE_. CONCESSIONAIRE, with Director's approval, may lease rather than purchase free standing equipment and furnishings required for the operation of the Center. Said equipment shall remain the property of the lessor. Construction shall not begin until CONCESSIONAIRE submits an Equipment Schedule that is acceptable and is approved by CITY. From these schedules, CITY shall draw up an inventory of all property indicating ownership of each item and this inventory list shall become an exhibit to this Agreement. This list will be verified and updated by physical inventory conducted on a random basis throughout the term of this Agreement. If, upon termination of this Agreement, CITY does not execute a new Agreement, CONCESSIONAIRE shall have the right to remove his equipment, furnishings and expendables from the premises and shall be allowed a period of sixty (60) days to make such removal; and if not removed within that period, such furnishings, equipment and expendables shall be and become the property of CITY. H. Maintenance of Equipment: CONCESSIONAIRE shall provide all maintenance, repair and service required on all equipment used in the concession whether CONCESSIONAIRE or CITY owned. Insofar as sanitation and appearance of the concession is involved, the Director may direct CONCESSIONAIRE_ to perform necessary repairs and maintenance to CONCESSIONAIRE . owned equipment. In the event CITY owned equipment is in use, the Director may prescribe in detail the type and frequency of maintenance 6. a and repair to be performed by CONCESSIONAIRE_. If CONCESSIONAIRE fails to perform the work prescribed pursuant to the above provisions, the Director may, after giving ten days notice to correct, exercise option "d" under default provisions (item X) of these Specifications. No equipment provided by CITY shall be removed or replaced by CONCESSIONAIRE without the prior written consent of the Director, and if consent is secured, such removal and/or replacement shall be at the expense of CONCESSIONAIRE. I. Maintenance of Premises: CONCESSIONAIRE shall be required to perform all exterior and interior maintenance on the premises throughout the duration of the Agreement. The Director may direct that certain maintenance or repairs be performed where such work is necessary to protect the premises or to provide a clean, attractive , and well maintained premises. If CONCESSIONAIRE fails to perform any of the above, duties, the Director may, after giving ten (10) days notice to correct, exercise option "d" under default provisions (item X) of this Agreement. J. Permits and Licenses: CONCESSIONAIRE shall be required to obtain at his sole expense any and all permits or licenses that may be required in connection with the operation of the concession including, but not limited to: tax permits, business licenses, health permits, amusement ride permits, police and fire permits, etc. K. Personal Attention: The Concession Manager is the person with whom the Director may deal on a daily basis regarding the subject concession. CITY prefers that the Concession Manager be an officer of the corporation, if CONCESSIONAIRE is a corporation. Any other person selected by CONCESSIONAIRE as Concession Manager shall be skilled in management of businesses similar to the licensed concession and his appointment shall be subject to the approval of the Director. The Concession Manager shall devote the necessary part of his personal time and attention to the operation of the concession and shall promote, increase and develop the business and render every possible service and 7. ' ► ►r t i 4 � i convenience to the public. If he is not himself CONCESSIONAIRE_, the Concession Manager shall be fully acquainted with CONCE_SSIONAIRE's operations and contract obligations, and authorized by CONCESSIONAIRE to act in his behalf and fulfill his obligations in the day-to-day operation of the subject concession. During the days and hours established for the operation of the subject concession, the Concession Manager's personal attention shall be directed toward the operation of the concession business activity. The Director reserves the right to interview the Concession Manager prior to approving his appointment. L. Prices: All rates for services and merchandise charged by CONCESSIONAIRE shall be uniform at all times and seasons and subject to the approval of CITY. The standard. used to approve or disapprove prices shall be the prevailing market price for the same grade of merchandise and services. As soon as possible after he has been notified that his proposal has been selected, CONCESSIONAIRE shall submit to CITY for its approval a list of prices for all merchandise, foods and beverages to be sold or rented and the quality and quantity of each, and a list of the prices to be charged for all services offered. He shall resubmit a complete list at the beginning of each calendar year under the term of this Agreement, together with any requested changes. CONCESSIONAIRE_ shall be notified in writing of CITY's approval or disapproval and CITY reserves the right to revoke its approval of any listed price when it appears that the price is above the prevailing market price for the some grade of merchandise. Variations from the approved price list will be permitted only with the prior approval of CITY. Section II, A of this Agreement requires ,CONCE_SSIONAIRE to make a Training Ring available for public use and also give CONCESSIONAIRE the option of restricting the use of the Show Arena to shows and related uses. CONCESSIONAIRE may establish fees for the individual or group use of either or both of these facilities and this list shall be forwarded to CITY for approval. These are not entry fees but are fees for individual or group use of the facilities. Once established, these fees may not be waived for any individual or group unless approved by CITY. CONCESSIONAIRE is therefore advised that if he wishes any individuals or groups to be exempt from these fees he should submit to CITY for approval a criteria for the waiving of fees with justification or reasoning thereof. CITY also reserves the right to approve any fees established for public admission to view events such as rodeos to be staged in the Show Arena. 8. CONCESSIONAIRE shall post signs advertising the prices approved by CITY. The signs shall not be of a gaudy or offensive nature, and the final design shall be subject to approval of the Director. The signs shall be subject to the provisions of item IV-M of this Agreement. M. Signs and Advertisements: No signs of any kind shall be displayed unless approved by the (director, who may require removal or refurbishment of any sign previously approved. CONCESSIONAIRE shall not permit vendors to display wares inside or outside the buildings or on said property unless written permission is secured from the Director and such permission shall be subject to revocation at any time. N. Taxes: CONCESSIONAIRE shall pay taxes on personal property and improvements located on said premises, the premises herein licensed, and all sales and other taxes, including but not limited to possessory interest tax levied against the operation of said business or other taxes assessed to him. 0. Use of Area: CONCESSIONAIRE shall not interfere with the public's enjoyment and use of the premises or surrounding public property for the purposes of which they were intended. He shall not use the premises for any purpose which is not essential to the licensed operations. He shall not rent, sell, lease or offer any space for storing of any article or articles whatsoever within or on the concession premises other than his own equipment, without the written consent of the Director. P. 'Utilities: CONCESSIONAIRE shall pay all charges for fuel, gas, electricity and telephone service necessary to carry on the concession operations. The telephone number shall be placed in the name of the facility and shall not be transferable to any other location. CITY shall pay for all domestic, industrial and irrigation water consumed on the premises. CITY shall provide all utilities including potable and irrigation water to the perimeter of the premises. CONCESSIONAIRE shall provide and incur all costs for all utility requirements within the concession premises. 9. 0. Vending Machines: CONCESSIONAIRE shall first receive written approval from the Director before installing or permitting vending machines to be installed. The Director shall have the right to order removal of any and all vending machines upon thirty days notice in writing. R. Safety: CONCESSIONAIRE shall correct safety deficiencies and violations of safety practices immediately and shall cooperate fully with CITY in the investigation of accidents occurring on the premises. In the event of injury to a patron or customer, CONCESSIONAIRE shall ensure that the injured person promptly receives emergency medical treatment, and as soon as possible thereafter, he shall notify CITY of the occurrence of the accident or injury.. If CONCESSIONAIRE fails to correct hazardous conditions which have led or, in the opinion of CITY, could lead to injury, the Director may immediately exercise option "d" under default provisions (item X) of this Agreement. S. Care of Horses: CONCESSIONAIRE shall strictly observe all requirements and directives of CITY ordinances and Orange County ordinances adoped by CITY pertaining to animal control. If CONCESSIONAIRE or his employees appear to have mistreated or endangered any livestock the Director may immediately exercise option "d" under default provisions (item X) of this Agreement. V. TERM: The term of this Agreement shall commence thirty (30) days after approval and execution of this Agreement by the City Council of CITY, and shall terminate 25 years thereafter, unless previously terminated in accordance with other provisions of this Agreement, such as, default on the part of CONCESSIONAIRE. IV. RENTAL AND RENEGOTIATION: CONCESSIONAIRE shall pay to CITY the following monthly rental as consideration for the rights and privileges contained in this Agreement: 4% of Gross Receipts from Boarding. 4% of Gross Receipts from Rentals. 2 % of Gross Receipts from Retail Sales. CONCESSIONAIRE shall also pay to CITY a minimum of $6 , 000 per operating year in the event the above payments total less than said minimum. Monthly rental shall be due and payable by the fifteenth day of each month for the operation for the preceding month. Included in the boarding category are gross receipts from the boarding, feeding and care of horses at the Equestrian Center. Included in the rental category are gross receipts from the rental of horses and tack, hayrides, the fees received for individual and group instruction, and any charges for the use of the show arena -sales pavilion or training rings. Included in the retail sales category are the gross receipts from all services not mentioned above. This includes, but is not limited to, the sales of the clubhouse and restaurant, sales of the western and saddle goods store, charges for the veterinary and farrier service, charges for saddle and tack repair, vending machines and admission fees for any shows held in the Show Arena. Rental shall be based on a percentage of gross receipts received by CONCESSIONAIRE even if some or all of the services in any particular category are sublicensed. Entry fees for horse shows, paid by contestants to enter such shows, if collected by CONCESSIONAIRE, will be exempt from the provisions of this section and no rental shall be paid from them. The entire amount of entry fees may be retained to offset the expense of putting on a show. The term Gross Receipts is defined to mean the total amount of the sale price of all sales, or the total amount charged or received for the performance of any act or service whether such act or service is done as a part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit is allowed, including all receipts, cash, credits and property of any kind or nature. However, Gross Receipts does not include cash discounts allowed or taken on sales, nor the amount of any sales or use- tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser and paid by CONCESSIONAIRE. In the event merchandise is taken in trade, Gross Receipts means the full price of the merchandise sold, less the fair market trade-in allowance, less retail sales taxes. When the traded merchandise is sold, Gross Receipts means the actual selling price, less retail sales taxes. In the case of vending machines, Gross Receipts shall be the total amount taken by the vending machines after sales and excise taxes. For the purpose of this Agreement, CONCESSIONA[RF_'s operating year shall begin as soon as revenues are first received for any concession service provided to the public. His fiscal year may begin at any time convenient for his business and may be used to satisfy bookkeeping requirements set out in item XII, but rental calculations including the annual guarantee shall be made from the first day of the operating year defined above. CONCESSIONAIRE shall transmit with his rental payment a Monthly Gross Receipts and Rent Report for the month for which rent is submitted. The Director shall provide a form for this purpose, and the completed form shall include a statement of the Gross Receipts by source of sales, and such other information as the Director may properly require. The rental payment shall be addressed to: City of Huntington Beach Director of Administrative Services 2000 Main Street Huntington Beach, California 92648 In the event CONCESSIONAIRE_ fails to submit his rental payment by the date it is due, an additional payment of ten percent (10%) of the amount due will be charged for each month, or fraction thereof, that the payment is due. As provided hereinbelow, CONCESSIONAIRE may sell merchandise at wholesale, and such sales need not be included in gross receipts upon which the monthly rental is calculated. The term "at wholesale" shall mean that the mark-up on such merchandise is not more than two percent (2%') over its cost to CONCESSIONAIRE. All merchandise sold for more than two percent (2%) over CONCESSIONAIRE's cost thereof shall be subject to the established rental percentage paid by CONCESSIONAIRE to CITY on retail sales. All merchandise shall be accounted for in accordance with the procedures utilized in reporting regular gross receipts. Before selling any merchandise at wholesale, CONCESSIONAIRE shall obtain the written approval thereof of the Director or his designated representative. Such approval, if any, shall specify the brand name of the merchandise to be offered at wholesale and the length of such sales period. Only the merchandise approved by the Director may be sold at wholesale. At the conclusion of the fifth year and every five years thereafter of this Agreement, CITY will perform a detailed analysis of the performance and financial status_ of the concession. If it appears at that time that any of the terms of the Agreement require change due to changing economic conditions, etc., CITY will meet with CONCESSIONAIRE_ to renegotiate rental or other provisions of this Agreement. If both parties agree to arnend this Agreement, it shall be in writing and approved by the City Council of CITY. If an impasse occurs regarding any provision relating to rental or the annual guarantee required in this Agreement, then arbitration shall be implemented. CITY and CONCESSIONAIRE shall mutually select the arbitrator. In the event CITY and CONCESSIONAIRE cannot agree upon an arbitrator, each shall select an arbitrator who in turn will select a third arbitrator and said third arbitrator shall resolve the impasse(s) which shall be subject to acceptance by CITY and CONCESSIONAIRE. CITY and CONCESSIONAIRE shall equally share all expenses of arbitration including the arbitrator's fee. 12. 4 r , Vll. IMPROVEMENTS: CONCESSIONAIRE shall provide temporary stable facilities for horses presently on the leased premises until the new facilities described below are completed. A. Permanent Improvements Required During First Year: CONCESSIONAIRE shall develop, design, and cause to be constructed at his sole expense the following minimum improvements within the first year of operation: I. Boarding facility including: a) Twenty (20) stall barns within the first year and one hundred (100) paddocks within six months. b) Two (2) riding rings. 2. Riding academy facility including: a) Twenty (20) tie stall barns. b) Twenty (20) horses and equipment. c) One (1) waiting area and office. d) One (1) arena and viewing stands. 3. Horse show - sales pavilion facility including: a) One (1) arena, 100' by 2401. b) One (1) warm up arena, 75' x 150' c) Parking spaces to be established by Development Services Department. 4. Administration offices including: a) One hundred (100) seat clubroom is optional. b) Fifty (50) seat food and refreshment facility is optional. 5. Other first year improvements including: a) Site preparation. b) Grading. 14. c) Perimeter fencing of entire premises. d) Entrance approach. e) Roads. f) Signs. g) Water mains, sprinklers and fire hydrants. h) Landscaping of entire premises. The box stalls shall have concrete foundations, steel frames, lumber wall inserts, aluminum roofing, shed row design with center aisles, individual tack compartments, automatic drinkers, metal feeders, fluorescent lighting, separate offices, restrooms and showers. Each box stall shall be 12' x 12' or larger. Each breaking pen shall be 7' high x 40' diameter. The waiting area shall contain tables and chairs and include an office of not less than 12' x 12' with steel frames, lumber wall inserts and aluminum roof. The sales pavilion shall contain an announcer's booth, public address system, night lighting, thirty-foot (301) flagpole, public restrooms, offices and drinking fountains. One of the outdoor arenas shall be constructed of two inch (211) steel post set in concrete and two inch (211) steel rail with steel frame and lumber bleachers. The parking spaces shall be large enough to accommodate car -trailer and camper units with electricity and water hook-up. Designated parking spaces shall be provided for individuals who wish to park on the premises and use the CITY's equestrian trails. Overflow parking areas for special events shall also be designated by Development Services Department. (City approved fees may be charged.) B. Additional Improvements: In addition to the improvements required in Section VII-A above, CONCESSIONAIRE may develop, design and cause to be constructed at his sole expense other improvements provided, however, that there is public demand for such improvements and provided further that the Director shall approve each of these improvements before construction of same. 14. C. Detailed Plans and Specifications: CONCESSIONAIRE shall submit within 120 days of the effective date of this Agreement, complete, detailed construction plans and specifications for the permanent or leased improvements to be completed during the first year. These shall also be prepared by an architect or engineer licensed by the State of California. CONCESSIONAIRE shall submit for necessary approvals complete detailed construction plans and specifications for optional or other improvements prior to construction of same. All plans shall be subject to approval by CITY's Director of Development Services Department, the Department of Public Works and the County Health Department prior to any construction. D. Installation of Improvements: All installation and construction work done at any time by CONCESSIONAIRE or his contractor in or upon the premises of the Equestrian Center shall conform in all respects to the approved detailed plans and specifications, applicable statutes, ordinances, building codes and rules and regulations of CITY, which reserves the right to inspect the installation at any time to insure that all work is satisfactory and complies with approved plans and specifications, and to order any alteration or correction to comply with the approved plans and specif ications. If, during the course of construction, an archaeological site is discovered, CONCESSIONAIRE_ shall immediately inform CITY who shall immediately inform the appropriate Regional District Clearinghouse. CONCESSIONAIRE, his architect, or his contractor shall, at his own expense, procure all building, fire, safety and other permits necessary for such work. There are a number of trees located at the site. Plans should be designed so that these trees are retained. The CITY will approve the removal (at CON CESSIONAIRE's expense) of any trees only if it should be absolutely essential and unavoidable. E. Water: CITY shall have all water and mineral rights, both surface and subsurface; all exploration and water and power development rights and all necessary rights -of -way and easements to the entire area to be developed by CONCESSIONAIRE as the Huntington Central Park Equestrian Center. CITY has established the following requirements relative to the use of this area for development as the Huntington Central Park Equestrian Center: 15. I. GRADING - Grade the entire area such that surface runoff will occur without causing ponding around any of the well sites. Any area within 50 feet of a well shall be graded to drain away from the well at a slope of not less than one percent 0%) for a paved area and not less than two percent (2%) for an unpaved area. 2. SEWERS - No sewer line shall be located within 50-feet of any well. All sewers on the Equestrian Center site. shall be constructed of vitrified clay pipe with Type "F", "G" or "H" joints, or Class 150 cast iron pipe with leaded joints, and shall be maintained by CITY. Any sewer line crossing over or crossing less than three feet (31) under a well collecting line shall be cast iron pipe. The cast iron pipe shall extend horizontally to at least a perpendicular distance of ten feet (101) beyond the edge of the well collecting line;- and no joints shall be allowed within a perpendicular distance of five feet (59 from the edge of the collecting line. 1 STRUCTURES - No structure, show arena, training ring, horse wash rack, stable, corral, horse tie bar or other type facility which would cause horses to congregate shall be constructed within 50 feet of any well, 10 feet of any steel or 2.5 feet of any concrete collecting line, or within 5 feet of any power underground conduit. All relocated collecting lines shall be welded steel pipe with welded joints. No taps or connections of any nature shall be permitted on the collecting lines. 4. CONSTRUCTION AND GRADING PLANS - All construction and grading plans shall be submitted to CITY for review and approval before CONCESSIONAIRE begins construction of any improvements. The Department of Public Works shall approve or disapprove said plans and shall return some to CONCESSIONAIRE within thirty days after receipt of the plans. 5. HORSES - Positive means shall be provided to keep horses at least 50 feet away from all wells. 6. NOTIFICATION OF START OF WORK - CITY shall be notified 48 hours in advance of any construction or grading. 7. RIGHT OF INSPECTION - CITY shall have the right of inspection at any time. 8. STOPPING WORK - CITY shall have the right to stop construction or grading at any time, if in the opinion of CITY, that work is endangering, or could endanger, existing or future use of the property for water supply purposes. 16. 9. IRRIGATION - Irrigation with reclaimed water and .use of the property shall be subject to all the requirements of the CITY. 10. WATER SUPPLY - CONCESSIONAIRE shall not drill or operate a well on the premises for the purpose of supplying water. [I. CONCESSION OPERATIONS - All operations on the premises shall meet therules rules and regulations of the County and State Health Departments, CITY ordinances and Regional Water Quality Control Board. Violation of the aforesaid rules and regulations could constitute cause for CITY to close down the concession operation. F. Construction Bonds: CONCESSIONAIRE or his contractor shall provide a Labor and Material Payment Bond in an amount equal to SO percent of the contract price, and a Faithful Performance Bond to secure the performance of construction, in an amount equal to 100 percent of the contract price. The form of said bonds shall be such that the CITY may proceed against CONCESSIONAIRE, the contractor and their sureties on the bonds immediately upon any default in payments for labor, material, equipment and supplies or failure to perform, without waiting for the completion of the work and the accumulation of damages. No work shall commence before said bonds are received in a form satisfactory to CITY as approved by the City Attorney, and said construction bonds shall thereafter be kept in full force and effect until CITY accepts the work. If at any time during the construction, the Director determines that the sureties, or any of them, becomes irresponsible, he shall have the right to require additional and sufficient sureties, which CONCESSIONAIRE shall furnish to the satisfaction of CITY within ten days after written notice by CITY. G. Title to Permanent Improvements: All permanent improvements, except those improvements leased by CONCESSIONAIRE, including plumbing and electrical fixtures constructed on the site shall become the property of CITY free of liens and encumbrances upon the date of termination. CONCESSIONAIRE may not transfer title to said permanent improvements for any reason without prior CITY approval. VIII. LIABILITY: A. Hold Harmless: CONCESSIONAIRE shall hold harmless, defend and indemnify CITY and its officers, agents and employees .from any and all claims, demands, �� 17. damages, actions and costs or expenses in connection therewith, that may arise out of the concession granted. He expressly waives any and all claims for compensation and releases and discharges CITY and its officers, agents and employees from any and all demands, claims, actions and causes of actions arising from any and all loss or damage sustained by reason of any defect, deficiency or impairment of the water supply system, drainage system, heating system, gas mains, electrical apparatus or wire furnished for the premises which may occur from time to time from any cause or for any loss resulting from water, tornado, civil commotion, riot, windstorm and earthquake. B. Insurance: I. Public Liability and Property Damage: CONCESSIONAIRE shall file with the CITY, prior to execution of this Agreement by CONCESSIONAIRE, two copies of a policy of public liability and property damage insurance, and name the CITY as additional insured, in the following amount: $1,000,000 combined single limits bodily injury, property damage and products liability. and which meets the following requirements: a) No "Deductible" clause is permitted. b) Provides coverage for "all operations of the insured conducted on CITY's property" and contains a description of the work performed by the insured. c) All signatures must be handwritten in ink on any policy, certificate or endorsement; rubber stamp signatures are not acceptable. d) CITY shall be named as an additional insured as respects all operations of the insured. e) Said policy shall contain a cancellation clause reading in substance as the following approved notice: "It is agreed that this policy shall not be cancelled nor the amounts of coverage provided herein reduced until thirty (30) days after the CITY's City Attorney shall have received written notice of such cancellation or reduction, as evidenced by return receipt of registered mail." a • 7 � f) No policy shall be acceptable unless first approved as to form by the City Attorney of CITY. g) If CONCESSIONAIRE is involved with the preparation and/or sale of food and/or drink on the concession premises, then products liability coverage shall also be required. h) Insurance Binders shall not be accepted by CITY as proof of insurance coverage. 2. Fire and Comprehensive: CONCESSIONAIRE shall also file with CITY Fire and Comprehensive insurance to cover all Equestrian Center structures. Said coverage shall insure the Center at 100 percent of replacement value of the . items covered, and shall meet the following requi rements: a) "Deductible" clauses are permitted provided that CONCESSIONAIRE submit to CITY any one of the following instruments in an amount equal to .the total value of said deductibles: A cash deposit made with the City Treasurer. 2) A cashier's check drawn by any bank payable to order of CITY. 3) A check drawn on and certified by any bank payable to the order of CITY. b) Payment of claims against the policy shall be payable to CITY for the benefit of CITY or the insured as the CITY may determine. c) All signatures must be handwritten in ink on any policy, certificate, or endorsement; rubber stamp signatures are not acceptable. d) Said policy shall contain a cancellation clause reading in substance as the following approved notice: "It is agreed that this policy shall not be cancelled nor the amounts of coverage provided herein reduced until thirty (30) days after CITY's City Attorney shall have received written notice of such cancellation; or reduction, as evidenced by return receipt of registered mail." ` 19. e) No policy shall be 'acceptable unless first approved by the City Attorney of CITY. f) Insurance binders shall not be accepted by the CITY as proof of insurance coverage. C. Worker's Compensation: CONCESSIONAIRE shall at all times during the term of this Agreement subscribe to and comply with the Worker's Compensation Laws of the State of California and pay such premiums as may be required thereunder and hold CITY harmless from any and all liability arising from or under such act. Prior to any operations being performed on the premises, and throughout the term of this Agreement, he shall furnish a copy of the official certificate of receipt hereinabove referred to. IX. FAITHFUL PERFORMANCE OF OPERATIONS BOND: A Faithful Performance of Operations Bond ensures that CONCESSIONAIRE will abide by all provisions of this Agreement. In the event he fails to do so, CITY may recover damages from CONCESSIONAIRE by proceeding against his bond. This is not CITY's only course of action in the event of default (see Item X for a list of CITY's options) but is an indispensable provision. CONCESSIONAIRE shall provide a Faithful Performance of Operations Bond within thirty (30) days of approval and execution of this Agreement by CITY's City Council. CONCESSIONAIRE shall not begin operations on the premises until said bond has been received and approved. The Faithful Performance of Operations Bond must meet all of the following requirements: A. Amount of Bond: $10,000. B. Form of Bond: The term "Faithful Performance of Operations Bond" does not mean that only a formal bond from a bonding company is acceptable. Any of the following instruments are acceptable if they meet the requirements spelled out in this section. CONCESSIONAIRE's bond shall be in any one of the following forms but may not be a combination of two or more types: I. A cash deposit made with the City Treasurer. 2. A cashier's check drawn on any bank payable to the order of CITY. 3. A check drawn on and certified by any bank payable to the order of CITY. 26. 4. United States Government negotiable securities (i.e., treasury bills, treasury notes, or treasury bonds). S. A certificate of time deposit in a bank payable to the order of CITY. 6. A corporate surety bond of a surety company satisfactory to the Director of Administrative Services Department of CITY. CONCESSIONAIRE should note that the use of United States Government negotiable securities or of a certificate of time deposit as a bond allows him to collect interest on his capital held by CITY. Interest shall not be accumulated on his capital otherwise. In the event CONCESSIONAIRE has placed a corporate surety bond and defaults in the performance of any of the terms of this Agreement, the sum guaranteed by said bond shall be available to reimburse CITY for any costs, as determined by the Director, occasioned by reason of said default. The form of said bond shall be such that CITY may proceed against CONCESSIONAIRE and his surety immediately upon any default in the performance of this Agreement. C. Agreement of Deposit and Indemnity: NJ The above instruments must be accompanied by an agreement of deposit and indemnity, approved as to form and legality by CITY's City Attorney, wherein CONCESSIONAIRE unconditionally agrees that in the event of any default, CITY shall have full power and authority to use.the deposit in whole or in part to indemnify CITY. Every deposit of securities or certificate of time deposit must be accompanied by express authority for the Director to convert same into cash and to deposit said cash in CITY's Treasury in the manner governing deposit of cash in the CITY's Treasury by the Charter of CITY. All deposits of cash or checks will be immediately so deposited by CITY. The Director shall authorize and request the City Treasury of CITY to receive said United States Government negotiable securities, together with the properly executed agreement of indemnity and deposit, for safekeeping. A receipt shall be issued by the Treasurer. In the event said securities are to be converted to cash because of default, the Director may authorize and request the Treasurer to sell said securities on CITY's behalf. 21. D. Maintenance of Deposit: Said bond shall be held by CITY during the entire term of this Agreement. If the surety, in the opinion of the Director, becomes irresponsible, he shall have the right to require additional and sufficient sureties suitable to him, which CONCESSIONAIRE_ shall furnish within ten days after written notice thereof has been mailed by CITY to CONCESSIONAIRE. United States Government negotiable securities shall at all times have both a par value and a market value of not less than the amount specified in the proposal documents; and, in the event the market value of said securities declines, CONCESSIONAIRE shall, upon written demand of the Director, within ten days of the mailing by CITY of such demand, pledge and furnish such additional United States Government negotiable securities with appropriate agreement of indemnity and deposit approved as to form and legality by CITY's City Attorney, as may be necessary to maintain both a par and market value of securities on deposit of not less than the amount specified in this Agreement. If such additional securities are not received by CITY within ten days after the mailing of written notice as stated above, all default provisions may be exercised at the discretion of CITY. In the event of maturity of the securities prior to termination of this Agreement for which they have been deposited, the Director shall authorize and request the City Treasurer to redeem the securities. The Director shall then use the proceeds of the redeemed securities to purchase a sufficient amount of United States Government negotiable securities to be at least equal as to both par and market value to the original amount of the deposit, and place them with the City Treasurer on receipt. If the redemption proceeds are not sufficient, CONCESSIONAIRE shall deposit cash with CITY in an amount sufficient to make up the difference within ten days of mailing of notice of deficiency by CITY. X. DEFAULT AND CANCELLATION: In the event CONCESSIONAIRE_ defaults in the performance of any of the terms or conditions of this Agreement, or fails to conform to the rules and regulations, or any of the directions or instructions that may be properly made by CITY in the exercise of its powers, or fails, neglects or refuses to pay the consideration or any part thereof within 30 days after the some shall become due, or becomes unable through personal incapacity to fulfill his obligations under this Agreement, or defaults in the performance of any of the other terms or provisions therein required, CITY shall have the following options without any further notice or authorization from CONCESSIONAIRE, and its choice of any option shall in no way waive its rights to select any other option at any time: 22. 1 A. CITY may give CONCESSIONAIRE written notice of such default. If CONCESSIONAIRE does not cure said default within 30 days after it was first discovered (forthwith for a default involving sanitary conditions) or make reasonable progress to cure said default, CITY may terminate this Agreement, assume the operation of the concession, and exclude CONCESSIONAIRE from the premises; and/or, B. CITY may retain any of CONCESSIONAIRE's money in its possession and any of CONCESSIONAIRE's property on the premises and apply same to the payment of any and all claims which may he due CITY; and/or, C. CITY may recover at law any and .all claims which may he due CITY; and/or, D. CITY may perform such work as it deems necessary to cure said default and charge CONCESSIONAIRE for .the full cost of labor and materials expended, plus 30 percent of said cost for administrative overhead. The Director may exercise this option immediately in the event of a default involving cleanliness provisions (item IV -A) or safety provisions (item IV-R) of this Agreement. The Director may exercise this option within ten days after giving CONCESSIONAIRE written notice of a default involving equipment maintenance provisions (item IV-H) or premises maintenance provisions (item IV-1) of this Agreement. E. CITY may recover damages from forfeited amounts of CONCESSIONAIRE's Faithful Performance of Operations Bond. The acceptance of all or part of a rental payment by CITY for any period after a default shall not be deemed a waiver of any of these options, nor a waiver of the default or any subsequent default of the some or any other term, covenant and condition. Any waiver by CITY of a default on the part of CONCESSIONAIRE shall not be construed as, or constitute a waiver of, any subsequent default of the same or any other term, covenant and condition. In the event CITY defaults in the performance of any of the terms and conditions of this Agreement, and if a written notice of such default is issued to CITY by CONCESSIONAIRE by registered mail, and if CITY does not cure said default within 30 days of receipt of said notice, CONCESSIONAIRE may immediately terminate this Agreement and recover at law any and all claims which may be due. However, if CONCESSIONAIRE fails to notify CITY of its default within 60 days after learning of its occurrence, then he has automatically waived any and all of his rights occurring hereunder. 23. ri XI. ASSIGNMENT, SUBLEASE, BANKRUPTCY: CONCESSIONAIRE shall not underlet or sublet the subject premises or any'part thereof or allow the same to be used or occupied by any other person or for any other use than that herein specified, nor assign this Agreement, nor transfer, assign or in any manner convey any of the rights or privileges therein granted without the written consent of CITY. Neither this Agreement nor the rights therein granted shall be assignable or transferable by any process or proceedings in any court, or by attachment, execution, proceedings in insolvency or bankruptcy either voluntary or involuntary or receivership proceedings. CITY recognizes that, due to the size and variety of services that could be offered, it may be to the advantage of CONCESSIONAIRE if some of the services and facilities granted to him in Section II were sub -licensed. CITY therefore agrees that CONCESSIONAIRE may sub -license the services listed below subject to approval of SUB -LICENSEE by CITY who reserves the right to interview any potential SUB -LICENSEE before granting its approval: A. Farrier Service. B. Veterinary Service. C. Western and Saddle Goods Retail Store. D. Saddlery and Tack Repair Shop. E. Clubhouse and Restaurant. F. Snack Stand. G. Vending Machines. Any agreement to sub -license any of the above services will be subject to the rental provisions specified in Section VI (RENTAL) and the requirements of Section VII (IMPROVEMENTS), and the restrictions of this section. In addition, said agreement, whether for operation only or for operation and construction, shall be in writing for approval as an amendment to this Agreement by the CITY's City Council. No SUB -LICENSEE shall be permitted to operate on the premises until the amendment is approved by CITY's City Council. All applicable provisions of this Agreement will apply to all SUB -LICENSEES whose particular attention shall be drawn to Sections VIII (LIABILITY), XII (BUSINESS RECORDS) thereof. The Sub -license Agreement will also specify the rental to be paid CITY and CONCESSIONAIRE (if any). Proposers are reminded that CITY will receive the proposed percentage of the gross receipts from all operations whether concessionaire operated or sub -licensed. Any monies remitted to CONCESSIONAIRE from SUB -LICENSEE in return for the operations granted will be in addition to the sum remitted to CITY. 24. If SUB -LICENSEE is to be involved in construction of any facility, the requirements of Section VII (IMPROVEMENTS) of this contract shall be adhered to. Any request to sub -license services and facilities other than those listed above will be evaluated by CITY upon its presentation. BETTER BUILT ENTERPRISES INC. must remain in control throughout the term of this Agreement unless an .assignment or other transfer of majority control (voluntary or involuntary) is approved by CITY's City Council. XII. BUSINESS RECORDS: CONCESSIONAIRE shall be required to maintain a method of accounting of all the receipts and disbursements in connection with the subject concession which shall correctly and accurately reflect the gross receipts and disbursements received or made by CONCESSIONAIRE from the operation of said concession. The method of accounting, including bank accounts, established for the subject concession shall be separate from the accounting system used for any other business operated by CONCESSIONAIRE or for recording CONCESSIONAIRE's personal financial affairs. Such method shall include the keeping of the following documents: I. Regular books of accounting such as general ledgers. 2. Journals including any supporting and underlying documents such as vouchers, checks tickets, bank statements, etc. 3. State and Federal income tax returns and sales tax returns and checks and other documents proving payment of sums shown. 4. Cash register tapes (daily tapes may be separated but shall be retained so that day-to-day sales can be identified). 5. Any other accounting records that CITY, in its sole discretion, deems necessary for proper reporting of receipts. CONCESSIONAIRE shall obtain and install a cash register(s) on which he shall record all gross sales. The cash register shall be nonresetable and sufficent to supply an accurate recording of all sales on tape. The register sales counter shall be visible to the public. CONCESSIONAIRE shall not purchase or install the cash register before obtaining the Director's approval of the specific register to be purchased. N 25. i All documents, books and accounting records shall be open for inspection and reinspection at any reasonable time during the term of this Agreement and for a reasonable period, not to exceed one year, thereafter. In addition, CITY may from time to time conduct an audit and reaudit of the books and business conducted by CONCESSIONAIRE and observe the operation of the business so that accuracy of the above records can be confirmed. If the report of gross sales made by CONCESSIONAIRE to CITY shall be found to be less than the amount of gross sales disclosed by such audit and observation, CONCESSIONAIRE shall pay CITY within 30 days after billing any additional rentals disclosed by such audit. If discrepancy exceeds two percent and no reasonable explanation is given for such discrepancy, CONCESSIONAIRE shall also pay the cost of the audit. CONCESSIONAIRE shall transtrit a Profit and Loss Statement and a Balance Sheet for the concession 'operations, prepared in a form and by a company acceptable to the Director within 60 days of the close of each of CONCESSIONAIRE'S fiscal or calendar years during the term of the Agreement. The Profit and Loss Statement shall set fortis an expense account' entitled "Compensation to Officers" or an account having some similar title. The amount shown opposite this item shall include all salaries or other compensation for services derived from the concession operations by CONCESSIONAIRE, members of his family, officers of CONCESSIONAIRE's corporation, directors, shareholders, any individuals owning stock indirectly and, other persons employed by CONCESSIONAIRE_ to manage the operations or supervise CONCESSIONAIRE's employees. These salaries or other compensation shall not be indicated in any other expense category. All information obtained in connection with CITY's inspections of records or audits shall be received and maintained in confidence and shall not be disclosed to anyone not directly connected with the official business of CITY. XIII. REGULATIONS, INSPECTION AND DIRECTIVES: A. Department Rules: CONCESSIONAIRE and his employees shall at all times abide by all rules and regulations heretofore adopted or that may hereafter be adopted by CITY ,and cooperate fully with CITY employees in the performance of their duties. Park Rangers are specifically designated CITY agents and are empowered by CITY to conduct inspections of the concession premises, evaluate CONCESSIONAIRE and inform the Director fully as to CONCESSIONAIRE's conduct of the concession. Other CITY employees may also be so designated. 26. B. Laws and Ordinances: CONCESSIONAIRE shall conduct his business in accordance with all the laws, ordinances, rules and regulations applicable to such business as set forth by CITY, County, State and Federal Governments. C. Permissions: Any permission required by this Agreement shall be secured in writing by CONCESSIONAIRE from CITY or the Director and any errors or omissions therefrom shall not relieve CONCESSIONAIRE of his obligations to faithfully perform. the conditions therein. CONCESSIONAIRE shall immediately comply with any written request or order submitted to him by CITY or the Director. D. Right of Inspection: CITY and the Director, their authorized representatives, agents and employees shall have the right to enter upon the concession premises at any and all reasonable time for the purpose of inspection and observation of CONCESSIONAIRE's operations. During these inspections, they shall have the right to utilize photographic devices and other instruments for recording conditions and events taking place upon the . premises. Said inspections may be made by persons identified to CONCESSIONAIRE as CITY employees, or may be made by independent contractors engaged by CITY. Inspections may be made for the purposes set forth below; however, the enumerations below shall not be construed to limit CITY's right of inspection for any purpose incidental to the rights of CITY: I. To determine if the terms and conditions of this Agreement are being complied with. 2. To observe transactions between CONCESSIONAIRE and patrons in order to evaluate the quality and quantities of foods or drinks or other items sold or dispensed, the courtesy extended to and method of dealing with the public, the performance and caliber of CONCESSIONAIRE's employees, and the method for recording recei pts. CITY may choose to hire private shopping service to inspect this concession. As a part of this inspection, the private firm will purchase items for resale offered by CONCESSIONAIRE. All such items will be turned over to CITY who shall then return these items to CONCESSIONAIRE. CONCESSIONAIRE shall then purchase the items back from CITY at the original retail price and CITY shall use these funds 27. ' to reimburse the shopping service. An arrangement shall then be made for CONCESSIONAIRE to recover the rent paid to CITY for each such sale. The information gathered on these inspections will be used to evaluate CONCESSIONAIRE. E. Nondiscrimination: The concession facilities shall be available for use and enjoyment by the public without regard to sex, age, race, color, creed or national origin. F. Name of Concession: The name of this concession is the "Huntington Central Park Equestrian Center". That title shall be used in CONCESSIONAIRE's promotional activities. It shall not be used by CONCESSIONAIRE in conjunction with any other business venture during or after the term of this Agreement. J W-1 XI*V. SURRENDER OF PREMISES: CONCESSIONAIRE shall quit and surrender possession of said premises to CITY in as good and usable a condition, subject to normal wear and tear, acceptable to the Director, as the some were in at the time of the first occupation thereof by CONCESSIONAIRE. XV. EXHIBITS TO CONCESSION AGREEMENT: The following documents are attached hereto, incorporated herein and form a part of this Agreement: A. Map of Premises. IN WITNESS WHEREOF, the City of Huntington Beach, has caused this Agreement to be executed in its behalf by its duly authorized officers and CONCESSIONAIRE has executed the some as of the day and year first hereinabove written. City Clerk 9D"APPROVED- City CONCESSIONAIRE i ses, Inc. CITY OF HUNTINGTON BEACH, a municipal corporation 4t.—I Va. �a..- s Mayor APPROVED AS TO FORM: City Attorney W -�✓-1.�'._........._._'`� _\,1. -.�-• �� .,,_•.��::~�.......,.-.�a,�(�`;��'Ciy._._.. ? /1 �\ � � .�{sru � �;.{ �/" � �\=_1✓l�> `� t y 1. 1r t � �� i a �•.•.�sy�_�y.. il��'i�� Yx .�...�� il.�-_ �=,LIf�.J �'YY1"��-Y.�_r1-�._.-...1..: .,_..n �.w...Y, �, ��i 1 „'.M....��•s+wr.r-.y '� � � � J _ " mot'•, '� ++.+y` .,,ry `v�T-�^ - .. F` •mil •? _ _ _. .. - M -°' �y 'y,�•��•� { _ 1�.. �.-+a,•• i� �: �I;i�I� �i� %I. ;i� i.' � �=ib: i::.:�. •!i�:'firi,;t,a�%�'• J..,.� � ;�: ."t'� ` Wes...- �� CIF ' � l ^ �Y-; r....a... ...�.••^ ' � • �� ` ��?� _ � J'YI �. ik t t i .. f• 1 , r � � ;,tit ' '� i? .t ! 1 1 `.��,`'w. r �'�, .',' 'i' �•` �_"'��``. ,_•_ IT T :-T—] T - - 1�:� "T Ji. .. ..... . .... ... ................................ . ..... Iq C 0 N E* S-�'S ION 11�e!! Vk SAL'LF'4E L16-tc)MPLEX ............. .. L.;J, TUR ................ . ................... ....... ... .... ............... ARE -A. N c A ...... T L bPfdo � MW ROUGHOUT DF-Vr%� OPED ... 2PORTIONS. QFI!THE; PA,RK::-1`-',":,, C HUNTINGTON. SAKE-; 0 m z la d z 0 z 0 0 z 0 m r N m m > z -7 f 0 0 wo �ROPOSED TARK -iXPANSION`::�: PAR CQ , f north, . ......... .. ... ..... .... . 2000--, 0 1000 —iPLANNIVII, YMCA ORIENTED I'IAERCIAL II _ , _ . .. ...... ... ____._.. _. __. f77) EXuc!�, PROr