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HomeMy WebLinkAboutSAMMATH TAN AND HENRY AND MELYNDA TAN - 2006-10-16 /0,0 6',,SMj-t -h) 10) � �16' 2006 OCT 74 PH 5: 37 " Council/Agency Meeting Held: D b 6 Gi(° ` t�l 4 , CITY OF Deferred/Continued to: EUNTIPJIGTOt3 E�ACIA X(,A roved ❑ Conditionally Approved ❑ Denied `C1R'%bWCi lerk Sig ure MCI Council Meeting Date: 10/16/2006 Department ID Number: ED 06-42 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAY R AND CITY 9OUNCIL A SUBMITTED BY: PENtP—ECRETH-GR FT, DPA, CITY ADMINISTRATOR PREPARED BY: ST NSMALEWITZ, DIRECTOR OF ECONOMIC DEVEOLPMENT1� � SUBJECT: Approve License Agreement for Operation of Food Concession at the Huntington Beach Civic Center Complex I[ . Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The City Council is asked to approve a License Agreement for management of the snack shop within the basement level of the Huntington Beach Civic Center Complex. The staff selection committee recommends retaining the services of the Tan family (dba City Cafe) to operate the lower level snack shop space. Funding Source: N/A Recommended Action: Motion to: 1. Approve the License Agreement between the City of.Huntington Beach and Sammath, Henry and Melynda Tan for operation of a food concession at the Huntington Beach Civic Center complex. 2. Authorize execution of the License Agreement by the Mayor and City Clerk. Alternative Action('): Do not approve the License Agreement as submitted and direct staff to renegotiate the terms and conditions. REQUEST FOR COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: ED 06-42 Analysis: The previous snack shop operation on the lower level of the Huntington Beach Civic Center ceased operations several years ago, and the State of California removed the equipment owned by the state with the snack shop location remaining vacant to date. After months of staff deliberations to determine the best concept for the snack shop use, a plan and an approach to solicit interest in this space were identified. Several small restaurant operations and catering companies were approached and proposals solicited. Two proposals were received out of the five potential providers of food service. A review of the proposals was performed and the subject proposal was found to be most responsive to the City of Huntington Beach's needs and scope of desired service. Key factors in the review were cost exposure to the city, quality and variety of foods and snacks proposed, estimated prices of foods and snacks to be offered for sale, dedication of management and staffing for a successful operation, and flexibility of the proposed licensee to meet the needs and scope of the City of Huntington Beach snack shop operation. With several other venues in Southern California, the Tan's are familiar with the City's expectations for operation. They will spend $30,000 for improvements to make the space operational. As is standard with the City's other concession agreements, this amount will be credited to the Tan's over the term of the lease. The proposed contract includes a monthly lease payment of $500 and has a ten-year term with the possibility of three, five-year extensions. Further, the proposal seeks to fulfill the following benefits that are important to City employees and City Hall patrons: • Selection: A wide choice of fresh, bakery items (many homemade) and bagels; breakfast sandwiches, luncheon sandwiches, soups, salads, a variety of gourmet coffees, hot chocolate and tea and cold drinks. • Customer Service: City Cafe is committed to providing the highest level of attention and favorable hours of operation to all patrons. • Competitive Pricing: All products/services will be competitively priced as illustrated on Attachment 2, relative to comparable cafeterias/snack shops and catering services. Food Quality: City Cafe acknowledges the preference for high-quality ingredients as customers are learning to appreciate the qualitative differences. The message that the snack shop will seek to communicate is that it offers the freshest, most creative, health conscious, reasonably priced and convenient meals. On August 14, 2006, staff presented the Tan family proposal to the Council's Economic Development Committee. Committee Members favorably directed staff to proceed with a License Agreement with the Tan family for consideration by the City Council G:\Steve\Temp\RCA Snack Shop food service.doc -2- 10/9/2006 5:37 PM REQUEST FOR COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: ED 06-42 Environmental Status: The project is categorically exempt pursuant to the California Environmental Quality Act, Section 15301. Attachment(s): City Clerk's Page Number No. Description 1. License Agreement between the City of Huntington Beach and Tammath, Henry and Melynda Tan. Exhibit A: General Description Exhibit B: Map Depicting the Premises Exhibit C: Licensee's Proposal I G:\Steve\Temp\RCA Snack Shop food service.doc -3- 10/9/2006 5:37 PM License Agreement ATTACHMENT , 1 LICENSE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND SAMMATH TAN, HENRY TAN, AND MELYNDA TAN FOR OPERATION OF A FOOD CONCESSION AT THE HUNTINGTON BEACH CIVIC CENTER COMPLEX THIS LICENSE AGREEMENT (the "Agreement") is made and entered into by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ("City") or ("Licensor") and SAMMATH TAN, HENRY TAN, AND MELYNDA TAN ("Operator") ("Licensee") collectively (the"Parties"). WHEREAS, City wishes to provide for the management of certain real property (the "Property"), described as a food concession cafe space for the sole purpose of operating a food concession at the basement level of the Huntington Beach Civic Center Complex, located at 2000 Main Street, Huntington Beach, California. The term "Premises" as used in this Agreement shall mean both the Property and the Improvements. Operator desires to operate and manage the Premises in the manner set forth below. NOW, THEREFORE, the parties covenant and agree as follows: SECTION 1. GRANT OF CONCESSION ON THE PREMISES City, pursuant to the terms of this License, grants to Licensee for the purposes stated herein, the right, privilege and duty to equip, operate and maintain a concession open to the public and City employees located on the Premises (hereinafter sometimes referred to as the "Concession"). 1 I Licensee will be required to comply with the City's existing exclusive license agreement i with Coca-Cola. Licensee shall not use.the Premises for any other purpose or business other than those specifically provide for herein. The cafe area is located in the central area ofi the lower level of City Hall, across from the Credit Union and near City Council Chambers. Besides 06-459/4281 1 ' I this space, the Licensee will have two other spaces available for patron seating: the adjacent east- west hallway leading to the back patio and the back patio; at the sole discretion of the City, Licensee may occasionally use the back patio area to prepare barbeque meals. The occasional use of the back patio area.must be approved by the City, and will be for a limited time as determined by the City. Licensee must obtain written approval prior to using the back patio area (Together the areas generally described above shall constitute the "Licensed Space" or "Premises"). The description of the Premises is set forth in Exhibit "A", which is attached and incorporated herein by this reference. A map depicting the Premises is set forth in Exhibit "B", which is attached hereto and incorporated herein by this reference. This License is not intended to confer third-party beneficiary status to anyone'. Licensee ,will obtain at its sole expense all licenses and/or approval necessary for its operation of a cafe on the Premises and shall maintain such licenses/approvals throughout the time it uses the Premises. Licensee will comply with all local, state, and federal laws and- ordinances in operating the cafe. SECTION 2. ACCESS TO AND USE OF PREMISES Current hours of operation for City Hall: 8:00 AM — 5:00 PM, Monday through Friday, excluding City-recognized holidays. Current working hours for most City Hall employees: 7:30 AM—5:30 PM, Monday through Friday, excluding City-recognized holidays. Licensor retains the right, in its sole discretion, to limit the hours of operation to the hours i of 7:00 AM—4:00 PM, Monday through Friday. For the purposes of food preparation, cleaning, etc., the Licensee will be allowed regular access to the premises between the hours of 6:00 AM and 8:00 PM Monday through Friday, excluding City-recognized holidays. Later operating 06-459/4281 2 hours may be allowed to accommodate City Council or other public evening meetings, or as otherwise necessary. The Licensee shall have no right to use the premises except during those hours described herein or as specifically approved by the Real Estate Manager or his/her designee, which permission shall not be unreasonably withheld. The cafe operation shall not interfere with the normal operations of City Hall. Deliveries must be made through the back loading area of the building. Deliveries need to be carried into the building, directly to the cafe. The Licensor will not accept deliveries on behalf of the Licensee nor assume responsibility for any products left in the City Hall loading area. The seating area of the cafe, including the adjacent hallway and patio, shall be available during the operating hours to all City employees and the public regardless of whether they have purchased a beverage or food item from the Licensee. There are public restrooms available on the lower level of City Hall that may be used for the Licensee's employees and patrons. SECTION 3. PERSONNEL REQUIREMENTS a. The Licensee will be required to employ the optimum number of employees to match the work requirements. Service is expected to be timely, attentive, and friendly, and each employee should: a) be clean, neat, and well-groomed; b) be free from offensive body odor; c) be professional, courteous, and friendly to the public; d) have a thorough health examination before employment at City Hall; and e) not wear excessive amounts of jewelry, perfume, or cologne. The Licensee shall require its employees to comply with all instructions, regulations, and codes of conduct as specified by the City. 06-459/4281 3 b: An on-site manager with the experience and qualifications must be present during daily operations. The person(s) designated as manager is subject to approval by the Licensor and once approved may not be changed or replaced without the prior consent of the City. c._ The Licensee or on-site manager must be present in the cafe during lunch during serving hours (11:30 AM to 1:30 PM). During all other operating hours, the manager or an approved assistant may be present. d. Employees of the Licensee shall be appropriately uniformed when performing their work assignments in the cafe. The term appropriate uniform is interpreted to include all apparel, visible badges, hats, hairnets, etc. The Licensee must submit samples of uniforms and other apparel of all service personnel for approval by the City prior to commencement of services. e. Employees of the Licensee shall not take breaks during peak hours of operation (8:00 AM to 9:00 AM, and 11:30 AM to 1:30 PM). SECTION 4. RESERVATIONS AND ENCUMBRANCES a. City expressly reserves a right to enter upon the Premises with as much advance written, verbal or electronic notice as possible to Licensee for any reason associated with public health, safety or welfare, or for the protection of life, limb or property. In all other cases unless otherwise specifically set forth herein, City reserves the right for such entry but City shall give Licensee at least twenty-four (24) hours advance written, verbal or electronic notice. 06-459/4281 4 b. City expressly reserves the right to license, convey, or encumber the Premises, in whole or in part, for any purpose not inconsistent or incompatible with the rights or privileges of Licensee under this License. C. This License is subject to pre-existing contracts, licenses, licenses, easements, encumbrances and claims affecting the Premises and it is made without warranty by City of title, condition or fitness of the licensed property for the stated or intended use. SECTION 5. TERM The Term of the License shall be ten years with the possibility of three additional 5-year terms at the mutual consent of both parties, from the date of execution hereof. The License shall commence at 12:01 a.m. on f , 2006, for a ten (10) year term, which shall end at 14:59 p.m. on D 3 , 2016 unless extended, or sooner terminated, as provided for herein. The Licensor may terminate the agreement at any time upon written notice to Licensee for any reason, including convenience or cause. In the case of a termination for the Licensor's convenience,. the Licensee will be given 60 days written notice and will be compensated for any unamortized capital investment made in the Concession. SECTION 6. CONDITIONS OF PREMISES The taking of possession of the Premises by Licensee shall, in itself, constitute d acknowledgment that the Premises are in good and tenantable condition. Upon taking possession of the Premises, Licensee agrees to accept the Premises in their presently existing condition, "as is", and agrees that City shall not be obligated to make any alterations, additions or betterments thereto. 06-459/4281 5 SECTION 7. DURATION OF PUBLIC FACILITIES By entering into this License, City makes no ,stipulation as to the type, size, location or duration of public facilities (excluding the Premises), including, without limitation, any City parking lots to be maintained on property owned, controlled or occupied by City.. SECTION 8. ADDITIONS, ALTERATIONS AND REMOVAL a. No modifications, alterations or additions to the Premises, including, without limitation, construction of Improvements or changes to structural design, landscape design, or interior or exterior furnishings, shall be constructed or made by Licensee without Licensee first obtaining the prior written approval of City. b. Except as provided under this License, no alteration or removal of existing Improvements on or natural features of the Premises shall be undertaken without Licensee first obtaining the prior written approval of City. C. Licensee's obligation to obtain City's prior written approval is separate and independent of Licensee's obligation to obtain any permits from City, such as, without limitation, a building permit. d. Any equipment, furnishings, fixtures, or appurtenances the installation of which requires a permanent alteration to the premises shall become the property of the i Licensor upon expiration or termination of the agreement. The Licensor may, at its discretion, allow the Licensee to remove equipment, fixtures, or appurtenances if the Licensee, at its own expense and to the Licensor's satisfaction, restores the premises to its condition prior to installation. e. The Licensor will, without obligation, consider modifications to the facility which the Licensee desires to enhance serviceability. All such modifications will be 06-459/4281 6 performed by, or overseen by the Licensor's crews or contractors. In no instance shall failure by the Licensor to perform a requested modification relieve the Licensee from fully performing its obligations under the agreement. SECTION 9. FACILITIES AND EQUIPMENT: The Licensee will prepare a design for the cafe, which will be subject to City approval. Because the area available for the cafe and patron seating is limited and subject to change from time to time, special attention must be given to the organization of each element. All elements are to be designed as an integral part of the cafe and must remain mobile in nature to accommodate any future space design changes. Generally, the design must adhere to these guidelines. Careful attention is to be given to each piece of equipment and how it will be viewed by the public. Artificial wood grain or other simulated material finishes are not permitted on equipment. Natural metal, glass, or porcelain finishes are acceptable. All equipment is subject to design.review and approval by the Real Estate Manager and/or his/her designee. a. Structures such as canopies and sneeze guards are not acceptable. b. Neon, exposed fluorescent, and track lighting are not permitted. C. Signage/menu boards are subject to approval. d. Cabinets and drawers are to be designed to be lockable. e. The Licensor will not be responsible for damage, loss, or theft of property in the Concession. The Licensee will complete improvements to the Concession area as described in the Licensee's proposal (attached hereto as Exhibit C and incorporated herein by reference). Licensee shall be responsible for providing any additional equipment which it deems necessary 06-459/4281 7 by reason of its operation of the cafe in the premises. All such additional equipment to be delivered to or installed in the premises must be approved in advance by the Real Estate Manager or his/her designee and the Public Works Director, or his/her designee. The Licensee will not perform any spatial modifications,to the Premises. The Licensee shall be responsible for providing additional equipment and furnishings including but not limited to tables, chairs, and waste receptacles required for the convenience of customers in the cafe or seating area. Any such furnishings purchased pursuant to section 24, Rent Credit provisions of this License shall remain the property of the City. All other equipment and furnishings shall be promptly removed upon expiration or termination of the agreement. The Licensee shall provide all required equipment, furnishings, appliances, dishware, flatware;.paper goods, and other utensils required for the serving and consumption of the menu . items. ,Commercial quality paper/plastic ware for customer use will be acceptable. Licensee will be .required to comply with the City's ordinance prohibiting the use of Styrofoam products at City.facilities. The Licensee is strongly encouraged to use recycled products (i.e. paper coffee cups, etc.) The Licensee does not guarantee, the uninterrupted provision of electricity or other utilities or service except to ensure ,that, all reasonable and diligent efforts will be pursued in restoring interrupted service. The Licensee shall not be held liable for any losses incurred by the Licensor which may result from interruptions or failure of such service. SECTION 10... RENT The initial base rent will be $500.00 per month with the cost of electricity, water, and sewer provided by the Licensor. Rent will begin the first month the Concession is open to the public. In the case that the first month of operation is not a full month, rent will be pro-rated. 06-459/4281 g The Licensee will make rent payments within 30 days of the last day of each preceding month. If the. Licensee is delinquent f6r 30 days or longer in paying any amount owed under the agreement, the Licensee shall. pay to the Licensor 10% of rent, accrued monthly until the payment is made in full. Base rent will be automatically adjusted effective upon the date of the first renewal, to an amount determined as follows: the base amount as then in effect (i.e., as established by this section and subsequently. determined) shall be increased by the annual I ercentage increase in the Consumer Price Index (all items, Base 1982-84=100) as published by the United States Department of Labor Statistics, for all consumers for the Los Angeles, Riverside, Orange County, CA Metropolitan Statistical Area for the 12 month period beginning. 16 months prior to the anniversary date per the License Agreement. Licensee shall pay the rent monthly to City at the City Treasurer's Office, P.O. Box 711, Huntington Beach, California, 92648, or at such other place or places as City may from time-to- time.designate by written notice delivered to Licensee. Licensee shall pay the rent; which must - be received by the City Treasurer within fifteen (15) calendar days after the,end of the month for which the rent is being paid, or on the next business day if the fifteenth day falls on a weekend or holiday. SECTION 11. LATE CHARGE AND PENALTY If the rent is not received by the City Treasurer within fifteen (15) calendar days after the end of the month for which the rent is being paid, or the next business day if the twentieth day falls on a weekend or holiday, Licensee shall pay the following late charge and penalty: (1) a late charge of ten percent (10%o) shall be applied to any outstanding balance after any payment hereunder is due but unpaid; and (2) one and a half percent (1 11/2%) penalty per month shall be added for each month the rent is due but unpaid. With respect to any other payments required by i a 06-459/4281 9 i Licensee, a one and a half percent (1 11/2%) penalty per month shall be added for each month such payment hereunder is due but unpaid. SECTION 12. BOOKS AND RECORDS Licensee shall keep true and, accurate books and records showing all of its business transactions in separate records of account for the Concession in a manner acceptable to City, and City and/or its designated representatives shall have the right, at all reasonable times, to inspect such books and records including, without limitation, State of California sales or use tax returns or other State return records, and Licensee hereby agrees that all such records and instruments shall .promptly be delivered and made available to City and/or its.•.designated representatives within thirty (30) days of receiving written request therefore. Licensee shall furnish to City, and/or its designated representatives copies of its quarterly.California sales and .,use tax returns at the time each is filed with the State of California. The books and records shall show the total amount of Gross Sales made each calendar �montlrin; on, or from the Premises and any exclusions listed in Section 13 above. All sales and charges shall be recorded by means of cash registers which.display the amount of the transaction . certifying the amount recorded. The register shall be equipped with devices which log in daily sales totals and which shall record on tapes the transaction numbers and sales details. Licensee agrees to maintain on the Premises, or another location subject to the prior written approval of City, all records, books of account and cash register tapes, showing, or in any way pertaining to the Gross Sales .made in, on, or from the Premises, including, without limitation, State of California sales or use tax returns or other State tax returns, for a period of five (5) years following the close of each calendar month. 06-459/4281` 10 SECTION 13. USE OF COCA-COLA PRODUCTS Licensee shall comply with City's exclusivity agreement with the Coca-Cola Bottling Company of Southern California ("Coca-Cola"). This includes all carbonated and non- 9 arbonated, 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. ,Licensee's failure to adhere to the Coca-Cola exclusivity clause shall 'constitute a Default of this License as defined in Section 36 below. This exclusivity shall not apply to third-party rentals that bring their own drink products. SECTION 14. QUALITY OF SALES, RENTALS AND SERVICES Licensee, at its sole cost and expense, shall equip, operate, manage and maintain the Premises. and Concession and shall keep the same equipped and maintained in..a manner acceptable to City during the entire term of this License or any renewals or extensions thereof or during any holdover period.` It is the intent of City that the cafe's services be provided in a manner to meet.the needs of the visiting public, and should City deem the cafe's hours of operation and/or food, merchandise, services or rentals inadequate to meet such needs, City may require Licensee to make such changes requested by City. Licensee's Proposal; including management plan and menu (Exhibit C) has'been reviewed and approved by the City. Any request to modify the Proposal (including prices and menu items).must be in writing submitted to the City. City reserves the right to reject any proposed modifications to the Proposal. Licensee.shall not use or permit the Premises to be used, in whole or in part, during the entire term of this License or any renewals or extensions thereof or during any holdover period for any purpose other than as herein set forth, without the prior written consent of City. 06-459/4291 ] ] Except as permitted in advance in writing by City, all foods and beverages shall be sold in disposable paper or plastic containers. No pull-top cans or styrofoam containers are to be vended or dispensed from the Premises unless pre-approved in writing by City. Licensee, wherever feasible,shall eliminate.the use of non-recyclable containers and plastics. City may from time to time review the items sold and containers or utensils used or dispensed by Licensee. City reserves the right to prohibit the sale or use of non-recyclable containers or plastics. City in its sole discretion reserves the right to prohibit Licensee's sale, provision or rental of any item or service rendered or performed, which it deems objectionable or offensive, beyond the scope deemed necessary for proper service to the public, inappropriate for sale, provision or . rental by the Concession, or of inferior quality. .�'SECTION 15. INDEMNIFICATION, DEFENSE AND HOLD HARMLESS AGREEMENT -Licensee hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected:or appointed officials, employees, agents and volunteers from and against any and all claims,=.Aamages, losses,.expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation (including arbitration) of every,nature or liability of any kind or nature) arising out of or in connection with (1) the use or occupancy of the Premises by Licensee, its officers, employees or agents, or(2) the death or injury of any person or the damage to property caused by a condition of the Premises, or (3) the death or injury of any person or the damage to property caused by any act or omission of Licensee, its officers, employees or agents, or (4) any failure by Licensee to keep the Premises in a safe condition, or (5) Licensee's (or Licensee's agents and/or sublicensees, if any) performance of this License or its failure to comply with any of its obligations-contained in this License by Licensee, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful 06-459/4281 12 misconduct of City. Licensee shall hold all Trade Fixtures, personal property and trade inventory on the Premises at the sole risk of Licensee and save City harmless from any loss or. .damage thereto by any cause whatsoever, except such loss or damage which was caused by the sole negligence or willful misconduct of City. Licensee will conduct all defenses at its sole cost and expense and City shall approve selection of Licensee's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by Licensee. SECTION 16. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE Licensee acknowledges awareness of Section 3700 et seq. of the California Labor Code, which requires"every employer to be insured against liability for workers' compensation. Licensee covenants that it shall comply with such provisions prior to the commencement of this License. Licensee shall obtain and furnish to.City workers' compensation and employers' liability insurance in amounts not less than the State statutory limits. Licensee shall require all sublicensees and contractors to provide such workers' compensation and employers' liability insurance for all of the sublicensees' and contractors' employees. Licensee shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation and employers' liability insurance and I Licensee shall similarly require all sublicensees and contractors"to waive subrogation. SECTION 17. GENERAL PUBLIC LIABILITY INSURANCE In addition to the workers' compensation and employers' liability insurance and Licensee's covenant to defend, hold harmless and indemnify City, Licensee 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 06-459/4281 13 • I indemnify Licensee, 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 One Million Dollars ($1,000,000.00) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000.00) 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 License shall be deemed excess coverage and that Licensee's insurance shall be primary. "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. SECTION 18. PROPERTY INSURANCE Licensee shall provide before commencement of this License and shall obtain and furnish to City, at Licensee's sole cost and expense, property and fire insurance with extended coverage j endorsements thereon, 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 licensed by Licensee, 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 Licensee 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 06-459/4281 14 I property whether or not owned or licensed by Licensee, and all trade inventory so damaged or destroyed; and if not so used, such proceeds (excluding any insurance proceeds for Trade Fixtures, personal property whether or not owned or licensed by Licensee, and trade inventory, but only to the extent the insurance proceeds specifically cover those items) shall be paid to City. The policy shall also contain a special endorsement that if the Premises are so destroyed triggering the parties' ability to terminate as set forth in Section 52 (Destruction) below, and either party elects to terminate the License, the entire amount of any insurance proceeds (excluding such proceeds for Trade Fixtures, personal property whether or not owned or licensed by Licensee and trade inventory, but only to the extent the insurance proceeds specifically cover those items) shall be paid to City. The proceeds of any such insurance payable to City maybe 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: 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 License. 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. I 06-459/4281 15 SECTION 19. 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 21 above and/or property insurance coverage in Section 22 above at that time is not adequate, Licensee shall increase the insurance coverage as reasonably required by'City. SECTION 20. CERTIFICATES OF INSURANCE: ADDITIONAL INSURED ENDORSEMENTS Prior to commencement of this License, Licensee shall furnish to City certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as-required by this License; 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 in Section 22 above. Licensee shall maintain the foregoing insurance coverage in force during the entire term of the License or any renewals or extensions thereof or during any holdover period. The requirement for carrying the foregoing insurance coverage shall not derogate from Licensee's defense, hold harmless and indemnification obligations as set forth in this License. City or its representatives shall at all times have the right to demand the original or a copy of any 06-459/4281 1 or all the policies of insurance. Licensee shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. SECTION 21. INSURANCE HAZARDS Licensee 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 License. Licensee 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 this License necessary for the continued maintenance of these policies at reasonable rates. SECTION 22. MAINTENANCE OF PREMISES .- Licensee agrees to maintain the Premises in good order and repair,at Licensee's sole cost !and expense, during the entire term of this License or any renewals or extensions thereof or during.any-holdover period, pursuant to the City's maintenance standards. Except as provided above, Licensee; at its sole cost and expense, shall perform any maintenance and repairs including, without limitation,the following: a. All equipment, including, all optional equipment provided by the. Licensee, including but not limited to soda display cases, and other refrigerated cases, shall be serviced at Licensee's expense at least semi-annually to ensure proper operation. Service to heating and cooling equipment must include compressors, coils, and related mechanical components. It shall be the Licensee's responsibility to ensure that all display cases are moved and the compressors, coils, interior, and exterior of machines/equipment washed and cleaned of dirt, dust, grease, and debris including behind and beneath the units (regardless of 06-459/4281 17 size). Upon expiration of the agreement, the equipment belonging to the Licensor shall be left in a condition correspondent to its status at contract commencement, normal wear and tear expected. b. The Licensee shall comply specifically with all cleaning requirements listed herein and shall maintain all areas of the cafe space in a clean and sanitary manner in accordance with the highest industry standards. The Licensee shall train all employees in a "clean-as-you-go" policy. The cafe facilities will be subject to regular inspection by City and County officials. C. Cleaning frequency of processing areas shall be mandated by the types of food processed and any change in operation for that area. Also, at the end of each working day, utensils, equipment, and surfaces used in.processing shall be washed and sanitized. Non-food contact areas and equipment shall be cleaned as often as necessary to prevent buildup of dirt, food particles, and other debris. d.., The Licensee must provide a plan for the daily and monthly cleaning schedule in addition to a listing of qualified personnel or contractors to perform those duties. All cleaning shall be coordinated by and the responsibility of the Licensee, working through the City Hall maintenance supervisor when necessary. e. Continually through the day the Licensee shall keep clean the floor in the food preparation and serving areas and shall ensure the seating area, including tables and chairs, are clean and free of crumbs and other debris. On a weekly basis, the Licensee shall wash and wax the floors. f. Cafe patrons may be expected to bus their trays, plates, cups, and other debris to designated receptacles and locations. The Licensee shall be responsible to 06-459/4281 18 monitor the cafe seating area during service hours to ensure it is maintained in a clean condition, with trash and debris removed from tables, trash receptacles emptied, and tables and chairs wiped down as needed. The Licensee may deposit trash in the City Hall dumpster. g. If the Licensee notices any condition which is unsafe, unhealthy, or in any other way would cause an accident, the Licensee shall make or cause to be made appropriate repairs to remedy the condition. If correction of the condition will take more than routine attention, the Licensee shall notify the City Hall maintenance supervisor immediately. h. The Licensee must comply with all City, County, State, and Federal environmental health laws and regulations regarding health, including but not limited to. grease disposal, waste water discharge, sanitary food preparation etc. Licensee is expected to maintain a rating of A from the County Health Department and at no time fall below a B rating. Should Licensee receive a B rating, they must take immediate action to obtain an A rating. i Licensee's obligation includes, without limitation, maintaining and operating the Premises and adjacent areas to a distance of not more than fifty (50) feet, in a clean, safe, wholesome and, sanitary condition free of trash, garbage or obstructions of any kind and in compliance with any and all present and future_ laws, general rules or regulations of any governmental authority now, or at any time during the entire term of this License or any renewals or extensions thereof or during any holdover period, in force, relating to sanitation or public health, safety or welfare, or for the protection of life, limb or property; and Licensee shall i at all times faithfully obey and comply with all laws, rules and regulations applicable thereto. 06-459/4281 19 i Licensee, at its sole cost and expense, shall remedy without delay any-defective, dangerous or unsanitary,condition(s) caused by Licensee or anyone related thereto. Provided, however, that Licensee shall have no obligation to repair or maintain sewer lines or respond to sewer leaks. Licensee hereby expressly waives the right to make repairs at the expense of City and the benefit, if any, of the provisions of Sections 1941 and 1942 of the California Civil Code relating thereto. SECTION 23. RENT CREDIT City in its sole discretion may decide to give Licensee rent credit if Licensee undertakes (1) repair or maintenance under this License, (2) any work City in its sole discretion deems necessary and appropriate or (3) any Licensee improvements, fixtures, furnishings, and/or equipment. Prior to Licensee undertaking any such work or purchases, City must agree in. writing to.the amount of and procedures for the rent credit, the work to be done by Licensee and- the cost of such work. Any procurement made pursuant to this section shall become the property of the City. , SECTION 24. DAMAGE, DESTRUCTION OR NUISANCE Licensee shall not commit or permit the commission by others -of, any damage or destruction of, on, or to the Premises and/or Concession. Licensee shall not maintain, commit or permit the maintenance or commission of any nuisance as defined in Section 3479 and/or Section 3480 of the California Civil Code on the Premises; and Licensee shall not use or permit the use of the Premises for any unlawful purpose. I SECTION 25. PAYMENT OF OBLIGATIONS Licensee shall promptly pay, at its sole cost and expense, before they become delinquent, any and all bills, debts, liabilities and obligations incurred by Licensee in connection with • i 06-459/4281 20 I r Licensee's occupation and use of the Premises and/or operation. of the Concession. Upon request, Licensee shall promptly furnish to City satisfactory evidence establishing such payment. SECTION 26. BUSINESS LICENSE Licensee shall maintain a business license from.City during the entire term of this License or any renewals or extensions thereof or during any holdover period.. SECTION 27. SIGNS, ADVERTISING AND APPROVAL OF NAME City shall have the right to approve in its sole discretion and at any time require Licensee to change or remove signs, names, placards, decorations or advertising placed on, or_inscribed, painted or affixed upon the Premises. Should City approve 'of any sign, name, placard, decoration or advertising, Licensee shall maintain the same at all times during the entire term of this License or any renewals or extensions thereof or during any holdover period in good appearance and repair. All signs, names, placards, decorations or advertising must comply with all requirements of any governmental authority with jurisdiction. °.'.SECTION 28. NO ASSIGNING, SUBLEASING OR ENCUMBERING The parties acknowledge thatCity is entering into the License in reliance upon the experience and abilities of Licensee and its principals. Consequently, Licensee shall not voluntarily assign, encumber or otherwise transfer its interest in the License or in the Premises, or sublicense all or any, part of the Premises, or allow any other person or entity. (except Licensee's authorized representatives) to occupy or use all or any part'of the Premises without the prior written consent of City, which consent shall not be unreasonably withheld. SECTION 29. TERMS BINDING ON SUCCESSORS All the terms, covenants and conditions of this License shall inure to the benefit of and be binding upon the parties and their successors, including, without limitation, their assignees, 06-459/4281 21 encumbrances, occupiers of users, sublicerisees or other transferees. The provisions of this Section shall not'be deemed as a (1) waiver of any of the prohibitions and conditions against assignments, encumbrances, occupations or uses, sublicenses or other transfers hereinbefore set forth, or (2) City's consent thereto: If more than one licensee is a party to this License, the obligations of the licensees shall be joint and several. Even if City's consent is not required, Licensee shall immediately provide City with written notice of any, assignment, encumbrance, occupation or use, sublicense or other transfer. ' SECTION 30. DEFAULT The occurrence of any one or more of the following events'shall constitute a material default and breach ("Default") of this License by Licensee: a.;' Licensee's failure to make any payment of the rent or other payment required to be made by Licensee at the time required for payment under this License. b. Licensee's failure to obtain or maintain the insurances as required under this License. C. Licensee's vacating or abandonment of the Premises during the entire term of this License or any renewals or extensions thereof or during any holdover period. Closure of the Concession for more than a combined total of one hundred eighty (180) days in a calendar year, minus any days of closure of the Concession caused by City, shall be deemed an abandonment of the Premises. d. Licensee's violation of Section 16 (Indemnification, Defense and Hold Harmless Agreement), Section 29 (No Assigning, Subleasing or Encumbering), Section 35 (Hazardous. Substances), Section 36 (Nondiscrimination), Section 37 (Sale of 06-459/4281 22 Alcoholic Beverages and Entertainment Prohibited), Section. 45 (Conflict of Interest) or Section 47 (Compliance with Laws). e. The insolvency of Licensee as evidenced by a receiver being appointed to take possession of all or substantially all of Licensee's assets located at or on the Premises or of Licensee's interest in this License, or the making by Licensee of a general arrangement or assignment for the benefit of creditors, or Licensee's filing a petition in bankruptcy, whether voluntary or involuntary, or the attachment, execution or the judicial seizure of substantially all of Licensee's assets located at or on the Premises or of Licensee's interest in the License. f. Licensee's failure to observe or perform any other term, covenant, .obligation, duty, responsibility or condition of this License to be observed or performed by Licensee when such failure shall continue for a period .of thirty (30) days after City's giving .written notice to Licensee, or such earlier period if specifically set . . forth in this License; however, if the nature of such failure is such that more than thirty (30) days are reasonably required for its cure, then Licensee shall not be deemed to be in Default if Licensee notifies City of the length of the additional time required to cure and receives City's written approval of the additional time required, which approval will not be unreasonably withheld, and commences such cure within such thirty (30) day period and,diligently proceeds with such cure to completion during such additional time period approved by City. SECTION 31. TERMINATION. In the-event of a default by Licensee, City may at City's sole discretion terminate this License by giving Licensee written notice of termination. In the event City, terminates this 06-459/4281 23 License, City may recover possession of the Premises (which Licensee shall immediately _ surrender and "vacate upon demand) and remove all persons therefrom, and Licensee shall comply with, without limitation, Sections 56 and 57 below. City also-shall be entitled to recover as damages all of the following: _ a. The worth at the time of the award of any.unpaid rent or other charges which have been earned at the time of termination; b. The worth at the time of the award of the amount by which the unpaid rent (each month's rent would be calculated as the average rent for that same month in the preceding years, or if Licensee did own/operate the Concession in the preceding years, then each month's rent would be calculated as the average of all months Licensee owned/operated the Concession) and other charges which- would have been earned after termination until the time of the award exceeds the amount of - the loss of such rental and other charges that Licensee proves could have been, reasonably avoided; C. The worth at the time of the award of the amount by which the unpaid rent (each month's rent would be calculated as the average rent for that same month in the preceding years, or if Licensee did not own/operate the Concession in the preceding years, then each month's rent would be calculated as the average of all months Licensee owned/operated the Concession) and other charges for the balance of the term after the time of the award exceeds the amount of the loss of such rental and other charges -that Licensee proves could have been reasonably avoided; 06-459/4281 24 d. Any other amount necessary to compensate City for the detriment proximately caused by Licensee's failure to perform its obligations, liabilities, duties or d responsibilities under this License; and e. At City's sole discretion, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable California law. SECTION 32. WAIVER OF CLAIMS Licensee hereby waives any claim against City, its officers, elected or appointed officials, employees, agents or volunteers for damage or loss caused by any suit or proceeding directly or indirectly attacking the validity of this License, or any part thereof, or caused by any judgment or award in any suit or proceeding declaring this License null, void or voidable, or delaying the License-or any part thereof from,being carried out. •SECTION 33. PHOTOGRAPHY Licensee acknowledges and agrees that City may grant permits to third parties engaged in the production of still and motion pictures and related activities to take photographs or videos of or on the Premises when such permission shall not interfere with the primary business of Licensee, all without providing Licensee with notice or requiring consent by Licensee. SECTION 34. HAZARDOUS SUBSTANCES Licensee represents and warrants that its use.or occupation of the Premises shall not generate any Hazardous Substance (as defined below in this Section), and it shall not.store or dispose on the Premises nor transport to or over the Premises any Hazardous Substance during the entire term of this License or any renewals or extensions thereof or during any holdover period. The foregoing restrictions shall not be deemed to restrict or prohibit the use by Licensee of ordinary cleaning products as customarily used in Licensee's ordinary course of business at 06-459/4281 25 r the Concession, provided that Licensee complies with all provisions of law as to the use, storage . and disposal of such products. Licensee further agrees to clean up and remediate any such Hazardous Substance on the Premises, and agrees' to protect, defend, indemnify and hold harmless City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses,judgments, demands and defense costs (including, without limitation, costs and fees of litigation (including arbitration) of every nature or liability of any kind or nature) arising out of or in connection with any such Hazardous Substance and any rdamage, loss, .or expense or liability resulting from any such Hazardous Substance including,.without limitation, all attorneys fees, costs and penalties incurred as a result,thereof except any relicense caused by the sole negligence or willful misconduct of City. Licensee will conduct all defense at its sole cost and expense and City shall approve selection of Licensee's counsel. This indemnity shall apply to all claims and liability regardless of whether- any any insurance policies are applicable. The policy limits do not act as limitation upon the amount <.r of indemnification to be provided by Licensee. "Hazardous substance shall be interpreted broadly to mean any substance or material defined or designated as a hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance, or other similar term, by any Federal, State or local environmental law, regulation or rule presently in effect or promulgated in the future, as such law, regulation or rule may be amended from time to time; and it shall be interpreted to include, without limitation, any substance which after relicense into the environment will or may reasonably be anticipated to cause sickness, death or disease. SECTION 35. NONDISCRIMINATION Licensee and its employees shall not discriminate because of race, religion, color, ancestry, sex, age, sexual orientation, family or marital status, national origin or physical 06-459/4281 26 handicap against'any person by refusing to furnish such person any accommodation, facility, rental, service or privilege offered to or enjoyed by the general public. Nor shall Licensee or its employees publicize the accommodation, facilities, rentals, services or privileges in anymanner that would directly or inferentially reflect upon or question the acceptability of the patronage of any person because of race, religion, color, ancestry, sex, age, sexual orientation, family or marital status,.national origin or physical handicap. In the performance of this License, Licensee shall not discriminate against any employee or applicant for employment, because of race, religion, color, ancestry, sex, age, sexual orientation, family or marital status, national origin or physical handicap. Licensee shall take affirmative action to ensure that applicants are employed and that employees are treated during employment, without regard to their race, religion, color,.ancestry, sex, age, sexual orientation, - family or,marital status, national origin or physical handicap. Such action shall include, without limitation; the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including, without limitation, apprenticeship. Licensee shall post in conspicuous places, available to all employees and applicants for employment, notices setting forth,the provisions of this Section. SECTION 36. SALE OF ALCOHOLIC BEVERAGES AND ENTERTAINMENT PROHIBITED Notwithstanding anything to the contrary, the sale or provision of alcoholic beverages and/or live entertainment in, on, or from the Premises is expressly forbidden, unless expressly permitted in writing by City in advance. For any proposed sale or provision of alcoholic 06-459/4281 27 beverages, Licensee must.first obtain written City approval prior to submitting any request for approval to the Alcohol Beverage Commission. SECTION 37. LIENS Licensee shall keep the Premises free and clear from any and all liens, including, without limitation, mechanics' or materialmens' liens, claims and demands for work performed, materials furnished, or operations conducted on or about the Premises or by reason of any use or occupancy by Licensee, or any person claiming under Licensee. When applicable, Licensee shall cause a notice of nonresponsibility to be posted and recorded pursuant to California Civil Code Section 3094. SECTION 38. INSTALLATION AND REMOVAL OFTRADE FIXTURES Licensee shall have the,right during the entire term of this License or any renewals or extensions thereof, at Licensee's sole cost and expense, to install or affix in, to, or on the Premises.'any machinery, equipment and other objects (the "Trade Fixtures"), for use .in Licensee's:trade or business as Licensee may deem-advisable. Any and all such Trade Fixtures that can be removed without structural damage to the Premises shall, subject to Section 57 below, remain the property of Licensee and may be removed by Licensee at anytime prior to the expiration or termination of this License, provided Licensee repairs any damage caused by the removal. Upon execution of this License and every anniversary, Licensee shall provide City with a list of all Trade Fixtures on the Premises. SECTION 39. DESTRUCTION Should the Premises be partially destroyed, this License shall continue in full force and effect, and Licensee, at Licensee's sole cost and expense, shall complete the work of repairing and restoring the Premises to their prior condition providing such work can be accomplished 06-459/4281 28 under all applicable governmental laws and regulations within one hundred eighty (180).days.. Should the Premises be so far destroyed that in City's reasonable judgment they cannot be repaired,or restored to their former condition within one hundred eighty.(180) days, City shall give Licensee notice of such determination in writing and each party may, in that party's sole discretion- a. Continue this License in full force and effect in which case Licensee shall repair and restore, at Licensee's sole cost and expense,the the Premises to their former condition; or -b. Terminate this License by giving the other party thirty (30) days' written notice of such termination within sixty (60) days after the date that City gives Licensee notice that the Premises cannot be repaired or restored to their former condition ' within one hundred eighty (180) days. In the event that either party elects to terminate this License, the entire amount of any insurance proceeds (excluding such proceeds for Trade Fixtures, personal property whether or not owned or licensed by Licensee and trade inventory, but only to the extent that the insurance proceeds specifically cover those items) shall be paid to City. 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 other such purpose(s) as City sees fit. In addition, if Licensee elects to terminate the License, Licensee must still comply with all of its obligations, liabilities, duties and responsibilities under the License, including, without limitation, paying any rent due up to the time of termination and surrendering the Premises, pursuant to Sections 56 and 57 below. 06-459/4281 29 } In the event of the damage or destruction of Improvements, Trade Fixtures and/or personal property located on the Premises not giving rise to a termination of this License, Licensee shall, at its sole cost and expense, replace and repair the same as soon as reasonably possible to permit the prompt continuation of Licensee's business at the Premises. SECTION 40. NO ABATEMENT OF RENT DURING REPAIR WORK The rent shall not be abated for the time Licensee is prevented from using the whole or a portion of the Premises. In addition, Licensee shall not be excused from the payment of taxes, insurance or any other obligations for the time Licensee is prevented from using the whole or a portion of the.Premises. SECTION 41. CITY'S OPTION TO CLOSE THE PREMISES ;:City may close the Premises without liability and without advance notice to Licensee therefore at any time as City in its sole discretion deems necessary for the protection of life, limb or property,, or for public health, safety or welfare purposes, or upon reasonable notice to effect ;.: any repair, remodeling or rebuilding deemed necessary by City in its sole discretion. The length of time of any closing of the Premises by City longer than two (2) weeks during a period when the Concession would otherwise be open shall extend the term of the License by the same amount of time. If this occurs, Licensee and City shall memorialize this extension in writing. SECTION 42. DELIVERIES OF SUPPLIES City may establish the days and times deliveries of supplies may be,made and advise Licensee in writing thereof. SECTION 43. EMPLOYEE PARKING City shall establish the days, times and locations where Licensee and Licensee's employees may park, and the.number of automobiles, trucks, and other motorized and non- 06-459/4281 30 motorized vehicles that Licensee and Licensee's employees may park, and advise Licensee in writing thereof SECTION 44. CONFLICT OF INTEREST Licensee warrants and covenants that no official or employee of City, nor any business entity in which an official or employee of City is interested, (1) has been employed or retained by Licensee to solicit or aid in the procuring of this License; or (2) shall be employed by Licensee in the.performance of this License without the immediate written divulgence of such -fact to City. In the event City determines that the employment of any such official, employee or business entity is not compatible with such official's or employee's duties as an official or employee of City, Licensee, upon request of City, shall terminate such employment immediately. For breaches or violation of this Section, City shall have the right both to terminate this License without liability and, in its discretion, recover the full amount of any such compensation paid to such.official, employee or business entity. No official or employee of City shall have any financial ,'interest in this License in violation of the applicable provisions .of the California . Government Code. SECTION 45. NOTICE Unless specifically providing for verbal or electronic notice, all notices,'certificates, or other communications required to be given hereunder shall be in writing and made in the following manner, and shall be sufficiently given and deemed received when (a) personally delivered; or (b) three (3) business days after being sent via United States certified mail —return receipt requested; or i (c) one (1) business day after being sent by reputable overnight courier, in each case to the .addresses specified below; provided that City and Licensee, by notice given hereunder, may I 06--459/4281 31 designate different addresses to which subsequent notices, certificates or other communications will be sent: CITY: LICENSEE: City of Huntington Beach `Sammanth Tan,_Henry Tan and Melynda Tan ATTN Real Estate Manager f1:/80 North Azure Street 2000 Main Street, P.O. Box 190 Anaheim, CA .92807 Huntington Beach, CA 92648 SECTION 46. COMPLIANCE WITH LAWS Licensee,- .at its sole cost and expense, shall comply with, all statutes, ordinances, t regulations and requirements of all governmental entities, including, without limitation, Federal, State, county or municipal, relating -to Licensee's use and occupancy of the Premises and/or .• operation of the Concession whether such statutes, ordinances,regulations and requirements be . now in.force or hereinafter enacted. This License is expressly subject to the laws, regulations and policies of City. Licensee shall deliver to City a copy of any notice from any governmental entity received by Licensee regarding any alleged violation of law regarding the License,. Premises or the Concession or from any person allegedly entitled to give notice under any conditions, covenants, or restrictions binding or affecting the Premises. The judgment of any court of competent jurisdiction, or the admission by Licensee in a proceeding brought against Licensee by any government entity, that Licensee has violated any such statute, ordinance, regulation or requirement shall be conclusive as between City and Licensee and shall be grounds for termination of this License by City. ' SECTION 47. MODIFICATION No waiver or modification of any language in this License shall be valid unless in writing and duly executed by both parties. 06-459/4281 32 SECTION 48. INDEPENDENT CONTRACTOR Licensee is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of City. Licensee shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for Licensee and its officers, agents and employees and all business licenses, if any, in connection with the License and/or any services to be performed hereunder. SECTION 49. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this License or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non-prevailing party. r SECTION 50. GOVERNING LAW This License shall be governed and construed in.accordance with the laws of the State of California. SECTION 51. ENTIRETY The parties acknowledge and agree that they are entering into this License freely and voluntarily following extensive arm's length negotiations, and that each has had the opportunity to consult with legal counsel prior to executing this License. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party, or anyone acting on that party's behalf, which are not embodied in this i License,and that that party has not executed this License in reliance on any representation, A inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this . i 06-459/4281 33 License. The License, and the attached exhibits, contain the entire agreement between the parties respecting the-subject matter'of this License, the Premises, the leasing of the Premises to Licensee, or the license term created under this License and supersede all prior understandings and agreements, whether oral or in writing between the parties respecting the subject matter hereof. IN WITNESS WHEREOF, the parties hereto have caused this License to be executed by and through their authorized officer's ?p,� � , 2006. OPERATOR: CITY OF HUNTINGTON BEACH, a SAMMATH TAN, HENRY TAN, AND municipal corporation of the State of MELYNDA TAN California By: Mayor By: y Clerk I-1 Off. APPROVED AS TO FORM." f REVIEWED AND APPROVED: r City Attorney 0 Ci-1�-(� Ci Administrator, �q� q 12JOI, INITIATED AND APPROVED: Director of Economic elopment Exhibits: A. Description of the Premises B. Map Depicting the Premises C. Licensee's Proposal 06-459/4281 34 GENERAL DESCRIPTION Exhibit A General Description Lower Level Eatery The proposed. location of the eatery is in the lower level floor of Huntington Beach City Hall. The eatery is a total of 702 square feet, of which 454 square feet is the dining and service area, and the remaining 252. square feet is divided and designated as the storage area. The eatery is centrally located in the lower level with its entrance 42 feet from the Credit Union; 52 feet, from the public restrooms-, 31 feet from the elevators, and 90 feet from the Council Chambers. Approximately six deuce tabletops are proposed in the dining'area of the eatery. The hall adjacent to the eatery is 39 feet and 'the perpendicular hallway leading to the patio is. 48 feet .with a current count of 11 deuce tabletops: There is additional seating and opportunity for outdoor service in the patio at the southeast area of City Hall, which is 60 feet away from the .entrance of the eatery. The patio is approximately 3,650 square feet and has nine tables, seating six comfortably per table. r MAP OF LAYOUT 77" Exhibit $ Credit Union.... Lower Level Eatery Council Chambers Mj Elevators 1 Restrooms Eatery M , " Storage 18 Patio area Licensee's Proposal -------------- �l Henry and Melynda Tan Sammath Tan 1780 N. Azure St. Anaheim, C'a 92807 Tel (949)234-1251 Cell (714) 743-9196 Fax(949) 2344255 City of Huntington.Beach 2000 Main St. Huntington Beach; Ca 92648 July 23, 2006 Dear Mr. Holtz, We had a pleasure of meeting Maureen and Randy of your management team regarding the available space at,City Hall of Huntington Beach. We, Henry and Melynda Tan; (husband and wife) are currently operating two successful bagel and coffee shops. Sammath and Henry started the bakery business since 1982 (resumes attached). As owners of donut/bagel shops for twenty-four years,Henry and Sammath designed and built the shops, researched and created many successful products. We have expertise`in coordinating activities and directing the indoctrination and training of bakers and other kitchen staff to ensure an efficient and profitable food service. We have passion for baking a"perfect" product for our customers. We obtained many resources and relations over the years which will facilitate us in revenue increase at City of Huntington Beach. For the past eight years,Melynda have been operating her own successful business in the food service. Because of her ability to organize, train, and work effectively with personnel in,quality, high-volume restaurants, she is able to maintain a conscientious; highly productive workforce. Now she is ready to apply the same expertise and principles and hard work in starting a new but the same business. The establishment would be operating from 7:OOam to 4:OOpm(M—F) and from 7 am to 8 pm on meeting nights. We would be serving Diedrich coffees, espresso, smoothies, bottled drinks, bagels, bakeries, pastries, croissants, muffins, breakfast sandwiches, cold sandwiches, soups, and salads (please see attached sample menu).- We would also accommodate on any caterings. The following equipments would be installed: 2-door Fridge - Pastry Showcase 2-glass-door cooler - Opened-face cooler Showcase Sandwich table cooler - Fruit dispenser - Coffee brewer - Coffee grinder - Yogurt/Fruit freezer - Espresso grinder Toaster& microwave - POS system Espresso machine - Coke machine 1 We would like to offer $500/mo of rent.with five year term and five year option. An estimated leasehold improvement of$7,500 (see attached) and equipments of'$24,110 would be reimbursed to us by crediting 75% of our rent each month. We are sure that the customers would appreciate the fresh and the high quality ingredients we put into our products. We are ready to take on the responsibilities and the challenge. We are also confident of our ability to operate the new food service that will have better positive results as experienced by the past owner. We appreciate your consideration and look forward to hearing from you. We can be reached at 714-476-0734(Sammath) or 714-743-9196 (Henry and Melynda). Sincerely, Sammath Tan Henry Tan Melynda Tan 2 Sample Menu Bagels -Single $ 0.75 -Banana-Nut,-Blueberry, Cranberry, Cinn'Raisin, Jalapeno Cheese, Plain, Poppy, Sesame, Sourdough, Onion, the Works, Honey-Wheat Spinach-Parmesan Cheese, Cinnamon Glaze, Cheese Tops $ 0.99 Bagels w/Tappings Butter or Jelly $ 1.25 Cream Cheese (Regular) $ 1.79 Cream Cheese (Flavor) $ 1.99 Cream Cheese (Smoked Salmon) $, 2.35 Bakeries Gourmet Muffins $ 1.55 Banana Walnut,-Blueberry,-Poppy-Almont, Double chocolate,_Pumpkin, Zuchini, Cheesecake, Fat Free Bran, Pineapple Bran Danish Cream Cheese, Peach $ 1.45 Croissants Butter $ 0.99 Filled (Chocolate,-Strawberry, Pineapple) -$ 1.45 Ham & Swiss Cheese $ 1.95 Pastries Turnover $ 1.45 -Brioche -$ 1.55 Cinnamon Roll $ 1.65 Twist $ 1.45 i Breakfast Sandwiches Served with your choice of toasted bagel .EZ 2 eggs with Cheddar Cheese $ 2.95 Sunrise Eggs, Cheddar, Bacon or Ham $ 3.95 Europe Eggs, Ham and Cream Cheese $ 4.25 .Veggie Omelet Cheddar, Tomatoes, Mushrooms& Bell Peppers $ 4.85 Spanish Eggs, Cheddar, Salsa & Black Olives $ 3.95 Italian Eggs, Tomato,,Provolone& Italian Sausage $ -4.65 Gourmet Cream Cheese, Avocado, Tomatoes&.Lemon Pepper $ 3.65 Cheddar& Tomato Melt $ 2.95 Cheese Pizza $ 2.95 Sandwiches Sandwiches-may-include Lettuce, Tomato, Onions, Mayo &Mustard, with a side of Potato Salad, Green Salad, or Chips, and Dill Pickle Spear. (Variety of Breads available upon request.) Happy Turkey $ 4.60 Oven Roasted-Turkey, Swiss-Cheese,-Lettuce, -Tomato, with Avocado, add$.75 Turkey Pesto $ 4.95 Roasted Turkey, Provolone, Lettuce, Tomato, Pesto Turkey Berry $ 4.65 Roasted Turkey, Cream Cheese, Cranberry Sauce Triple Decker Club $ 5.95 Turkey, Ham, Bacon, Avocado & Swiss Chicken Salad $ 4.95 Chicken Salad, Lettuce, Tomato, Red Onion Tuna Salad $ 4.95 Tuna Salad, Lettuce, Tomato, Red Onion Texas $ 4.95 Roast Beef, Swiss, Lettuce, Tomato, BBQ Sauce Tavern Ham & Cheese $ 4.60 . BLT with Avocado, add$.75 $ 4.25 Garden-Fresh $ -4.60 Tomato;Alfalfa Sprouts, Red Onion, Cucumber Avocado, Veggie Cream Cheese Soups Soup & Bagel $ 3.75 Soup & Salad.Combo $ 5.60 Cup of Soup, Petite Gourmet Garden Sald& Small Drink Soup &-Sandwich Combo $ .5.95 . Soup, Turkey, Tuna or Ham/Cheese Sandwich and Smi Drink Salads Charbroiled Chicken Caesar $ 4.95' . Caesar $ 3.95 Chicken or Tuna Salad $ 4.95 Gourmet Garden $ 4.85 Avocado,-Mozzarella-Cheese, Tomatoes,-Sprouts, Cucumbers, Bell Peppers, Onions, Carrots, Black Olives, Romaine and Croutons CofFee Small Medium -Large Fresh Brewed $ 1.50 $ 1.70 $ 1.85 Cafe Au Lait $ 1.85 $ 2.10 $ 2.50 -Cappuccino -$ 2.60 -$ -3.1-5 -$ -3.45 Caffe Latte $ 2.60 $ 3.15 $ 3.45 Caramel-Latte -$ -2.95 -$ -3.60 -$ -3.90 Caffe Mocha $ 2.95 . $ 3.45 $ 3.75 Raspberry-Mocha $ ;-3.1-5 -$ -3.70 -$ -4.00 White Chocolate $ 3.00 $ 3.60 . $ 4.00 Hot Chocolate -$ 2.20 -$ 2:45 -$ -2.75 Hot Tea $ 1.50 Chai (Hot or Blended) Choice of Spice or Vanilla $ 3.15 $ 3.50 Cold Drinks Coke, Diet Coke, Mr. Pipp, Sprite, Pink Lemonade, $ 1.25 $ 1.45 $ 1.65 With.Fruit Flavor, Add$.50 -With-Boba, Add-$:50 Fresh Brewed Iced Tea $ 1.25 $ 1.45 $ 1.65. Iced Mocha $ 2.91 $ 3.45 $ 3.95 Iced Cappuccino or Latte $ 2.80 $ 3.15 $ 3.45 Mocha or Vanilla Glacier $ 3.25 Caramel Latte Glacier $ 3.75 White Chocolate Glacier $ 3.75 -Smoothies Made with 1004-natural-fruit juices. $ 3.75 Each Smoothie includes 2 free Nutrients 3 'Management Employees: 2 employees - 1 st Shift: 6:00 am to.2.00 pm 2nd Shift 9:00 am to 4:00 pm Hours: 7:00 Am to 4:00 Pm (M - F) (Shop will remain opened until 8:00 pm during meetings.) 1780 N Azure St, Tel: (714)356-8898 Anaheim,Ca 92807 Fax:(949)234-1255 Henry Tan Objective Owner and manager for bagel&cafe Experience 2001 -Current Avenue Bagel&Cafe S. I Capistrano,Ca Owner • Managed cashiers/sandwich,coffee preparers,and the cook. • Baked. • Prepared bagels,bakery items such as croissants,muffins,and turnovers. • Suggested new products that increased earnings. • Ordered supplies. • Fixed and maintained equipment,machine,furniture,and fixture. 1998-2000 5 h Avenue Bagel&Cafe Corona,Ca Owner • Managed cashiers/sandwich and coffee preparers,and the cook. • Baked. • Prepared bagels,bakery items such as croissants,muffins,and turnovers. • Suggested new products that increased earnings. • Ordered supplies. • Fixed and maintained equipment,machine,furniture,and fixture. 1994 1997 Miss Donuts Anaheim,Ca Manager/Baker • Designed the shop. • Laid tiles, setup equipment,machine,and fixture. • Managed cashiers/sandwich and coffee preparers,and the cook. • 'Baked. • Prepared bakery items such as croissants,muffins,and turnovers. • Suggested new products that increased earnings. • Ordered supplies. • Fixed and maintained equipment,machine,fiuniturc,and fixture. 1991 - 1994 Miss Donuts La Vern,Ca 1989 - 1990 Miss Donuts Orange,Ca 1984 - 1988 Miss Donuts Houston,Ca Manager/Baker • Designed the shop. • Laid tiles,setup equipment,machine,and fixture. 1780 N Azure St, - -Tel: (714)356-8898 Anaheim,Ca 92807 Fax:(949)234-1255 �i s, Henry.Tan • Managed cashiers/sandwich and coffee preparers,and the cook. • Baked. Prepared bakery items such as croissants,muffins,and turnovers. • Suggested new products that increased earnings. * Ordered supplies. • Fixed and maintained equipment,machine,furniture,and fixture Education High school Cambodia Interests Reading food and bakery magazines,attending food shows. 1780 N Azure St, Tel: (714)743-9196 Anaheim,Ca 92807 r Fax:(949)234-1255 Melynda Tan Oblectwe Owner and manager for bagel&cafe Expenence 2001 --Current Avenue Bagel&Cafe S. J. Capistrano,Ca Owner • Managed and trained 7 cashiers/sandwich and coffee preparers. • Prepared catering orders and prep'for the cook. • Suggested new products that increased earnings by 20%. • Bookkeeping. • Redesigned the ordering system with the registers. 1998-2000 5"'Avenue Bagel&Cafe' Corona,Ca Owner • Managed and trained 6 cashiers/sandwich and coffee preparers. • Prepared catering orders and prep for the cook. • Bookkeeping. • Wired kitchen printer and designed the ordering system. _ 1995- 1997 Euro National Los Angeles,Ca Bookkeeper • Bookkeeping—A/R,A/P,bank reconciliation,general ledger,financial statements. •. Managed 12 employees from accountingi to production department: • Set up 3-computer network with Peachtree Accounting Software. • Expanded sales to include mass-market accounts by suggesting having booths at the shows nationwide. 1990-1994 Zip-Zag,USA Los Angeles, Ca Controller • Bookkeeping-A/R,A/P,bank reconciliation,general ledger;financial statements. • Managed 25 employees from accounting to production department. • Set-up the accounting software from paper to software accounting system. • Responsible for staffing. Etlucat�on = 1986—Not Yet Graduated Cal State University,L.A. Los Angeles,Ca • B.S., Accounting.. Interests r Running,gardening,computers,reading,attending food shows. T ® T R Cyr iPa� , Name, Henry & Samath Tan Place ot. Bare: canu)oata Cell Phone: ('714) 476-0734 T se following co panice hwvo been )Duilt, designed, xianag2g. aid pro d �� vx��w54A:c�w�: Ri 7 A.s.�ai�` � `�i�i��€% Tar S Comoany game Year Ave Bagel `..-.. i.'afd .. Step. ..Fuan '+r.�apiJi-+i��no Z.r'K 20if 5' Ave Bagel IU Cafe Carona, Ca 1997 5 ' .eve laeE Cfato Buena.Park, t a 1997 Miss Db.r uts Costa Mesa, Ca 1994 T a 1994 Miss Donuis 3dfi DIQge, Ca Miss,i.)fJn is San Diego, Ca 190-1 . Miss.Donuts Monte Belo, Ca 1992 t ss Do,uts Pxna"6 a : Oa991 `mit$ D' nuts Icem" ton, ca 1990 Mass u0nuts La Vern, Ca . 1..990 Miss Donuts Corrtntonz Ca 1989 Miss Ljo-Al Ut r y e is i Senimy Donuts Houston; Tx NamMy UonLlts Houston, Tx 1984 i E +y it 13fliiiifc t7uustou, Tx 1982 to 3 d 3.jV0GNV-I39VS3AVHis 9SZZb£Z6tI6 �T:Oz 9OaZ,/OZ/LO ..Space Improvement Layout: See Attached Improvement Costs: Front Window (closeout door) $ 1,500.00 Glass Door $ 1,000.00 Wall Painting & Mirror $ 1,500.00 Ceiling & Lighting $ 1,500.00 Counters $ 1,000.00 Floor Polishing $ 1,000.00 0 Total: $ 7,500.00 Equipments: 18 X 24 (3 compartment sink) $ 518.00 Hand Sink $ 88.00 USA Pre-Rinse (Spray) $ 260.00 True- Fridge $ 2,128.00 Beverage Air Sandwich Table Cooler $ 1,618.00 Turbo Air - Opened Face Cooler $ 3,318.00 Fedral Pastry Showcase $ 2,500.00. . Arc Tic Air Chest Freezer $ 788.00 True- 3-Glass-Door Fridge $ 3,488.00 Metro Shelvings (24 x 60) (8 x $20) $ 160.00 Metro Shelving. Posts - 72 (8 x $24) $ 192.00 Metro Shelving Posts -60" (8 x $20) $ 160.00 Rosito Bisani Capuccino Machine $ 2,998.00 Berkel Slicer $ 668.00 Bagel Toaster $ 298.00 Microwave $ 988.00 Scotman Ice Maker $ 1,468.00 Vita Mix (Blender) $ 368.00 Mop Bucket $ 46.00 Locker $ 98.00 Table Bases ( 10 x $16) $ 160.00 Table Tops (10 x$66) $ 660.00 Chairs (20 x $57) $ 1,140.00 Total: $ 24,110.00 I Timeline: Approx. 3 Weeks su '' INSURANCE AND INDEMNIFICATION ,11� R_ MODIFICATION REQUEST ` 20 City nt orHu . 1. Requested by: Christi Mendoza, Risk Management� . C AttornE? oftica 2. Date: September 19, 2006 3. Name of contractor/permittee: Avenue Bagel Cafe (Tan, Henry & Melynda) 4. Description of work to be performed: Operating city cafeteria in city hall's basement (ten year contract, paying city $500/month rent 5. Value and lengthof contract: $6,000; Ongoing operation 6 Waiver/modification request: Cancellation clause wording/qeneral liability 7. Reason for request and why it should be granted: Unable to comply with the city's cancellation clause wording insurance requirement 8. Identify the risks to the City in approving this waiver/modification: None Department Head Si ture ate: APPROVALS „ Approvals;must be obta„�ned m,the order fisted on this form Two,approvals are required x= for a request to be granted Approv 1 from hekCity A Mip1strator s Office#is only required if ` ...: , ., RiskManagem y and th City Attar ey" OfficedisagreeAm 1. Pio Management It z/ Approved Denied 1 v Si gnat L 6ate 2. City Attorney's Office — J� pproved ❑ Denied Signature Date 3. City Administrator's Office El Approved ❑ Denied Signature Date ' If approved the completed waives/modification request is to be submitted to the City Attorney s'Off�ce along iivith the,contract forxapprova! Once the contract:has:been approved x this form �s-to be filed with the Risk;Nlanagement,DEvision of Ad n h strative=Services z-- - TempWaiver 9/19/2006 4:41 PM CERTIFICATE OF INSURANCE Th' i4 }�, t El. STATE FARM FIRE_AND CASUALTY COMPANY, Bloomington, Illinois ® STATE FARM GENERAL INSURANCE COMPANY, Bloomington, Illinois - STATE FARM FIRE AND CASUALTY COMPANY, Scarborough,Ontario INSORAN[R ❑ STATE FARM FLORIDA INSURANCE COMPANY,Winter Haven, Florida ❑ STATE FARM LLOYDS, Dallas,Texas insures the-following policyholder for the coverages indicated below: Policyholder Tan, 14nnry & Mclynda DBA: AVE' BAGEL CAFE Address of policyholder 2000 Main St, f-tunti.ngl_on Leach, CA 92648 Location of operations Same a.s Above Description of operations The policies listed below have been issued to the policyholder for the policy periods shown_ The insurance described in these policies is Subject to all the terms exclusions, and conditions of those policies,The limits of liability shown may have been reduced by any,paid claims. POLICY PERIOD LIMITS OF LIABILITY POLICY NUMBER TYPE OF INSURANCE Effective Date ; Expiration Date (at beginning of policy perlod) Comprehensive BODILY INJURY AND `32•-n7-65349 Business Liability 08 04.06 08-04-07 PROPERTY DAMAGE ---- -- Susr --- This insurance includes: ❑ Products-Completed Operations ❑ Contractual Liability ❑ Underground Hazard Coverage Each Occurrence $ 1,000,000 ❑ Personal injury Advertising Injury General Aggregate $ 2,000,000 Explosion Hazard Coverage ❑ Collapse Hazard Coverage Products—Completed $2,o00,0oo ® BUSINESS PROPERTY �36,000 - Operations Aggregate Jul_;Ducr:r.Blr sl,o0ri POLICY PERIOD BODILY INJURY AND PROPERTY DAMAGE EXCESS LIABILITY Effective Date Expiration Date (Combined Single Limit) ❑Umbrella Each Occurrence. $ ❑ Other I Aggregate $ Part 1 STATUTORY Part 2 BODILY INJURY 0 --T)8-3904-I Workers'Compensation CRID4/06 08/04/07 and Employers Liability Each Accident $ 1,000,on Disease- Each Employee$ Disease-Policy Limit $ POLICY PERIOD LIMITS OF LIABILITY POLICY NUMBER TYPE OF INSURANCE Effective Data ; Expiration Date (at beginning of policy period) THE CERTIFICATE OF INSURANCE iS NOT A CONTRACT OF INSURANCE AND NEITHER AFFIRMATIVELY NOR NEGATIVELY AMENDS, EXTENDS OR ALTERS THE COVERAGE APPROVED BY ANY POLICY DESCRIBED HEREIN. If any of the described policies are canceled before its expiration date, State Farm will try to mail a written notice to the certificate holder 3t) days before, Name and Address of Certificate Holder cancellation. If however, we fail to mail.such notice, no obligal or liability will be imposed on State n1)1)1'rT0NAT-. TNSURLD: � ? Farm or it gents or representatives. -, V HE CiTY OF ilUNTINGTON 3EAC.11, iTS AC-4ENT9, OFFICERS AND EMP.f OYr;Eo hND / Signature o thori edRepresentative 1111E. RFDgL.OPMLN1' AGENCY OF Ti� Date GENT 09/08/2006 TQ ,;'[ IiUNTT-NG'P0N1 i31 H.AC . _ 2000 MATRf G'P } %/ / Agents God Stamp 1".I.l1NT.1'?\TCTON BEACH, CA 926480 I{ (! / � ,, , fJ°V`21 AFO code 790 55.8-991 a,A 11-12-2002 F'rinted rri'U.S.A. � \ qN aq1\0� . J O3 Ofl/,07/06 TE A5.05 F-U 80,ri 863 2089 N.COAST,UW li�003 SH Policy iVo. 92-1)7-6348-2 asp ADDIT110N,AL INSURED ENDORSEMENT Managers or Lessors of Premises Policy No,: 92-3)7-6348-2 Named•Inculred; TAX, EMY & mn)dWA Name of Person or Organization; THE CXTY.OF H NTINGTON BEACH, TTS AGENTS, OFFICERS AND rMPILO'YEtS, AN}J, THE kI�DEVELOFMENT AGENCY OF HWTINGTON BEACH 2000 MAIN STREET HUNTINGTON REACH,, CA 92648 Designation of Premises: 2000 MAIN S'S TO' �. xurrrxrr BCH CA 926e-2702 PROVED ; . THE C' Aga � WHO IS AN. INSURED, under SECTION I! This insurance dues not apply to- DESIGNATION OF INSURl_b, Is amended to include as an Insured the person or organization shown 1: any ocacurronap which.takes place after you above,but only vAth respect to their liability arising out cease to be a-tenant In that premises;or of the ownership,maintentince or use of the premises leased to you and designated above. 2. structural alteratiom, new con*uctlon or demolition operations performed by or on behalf , of this person or organization shown abaft. FE,$494 printed in USA .09/07/06 THU i.5:04 PAX 605 663 2089 N.COAST U4P 1 002 Policy Number DECLARATIONS PAGE AMENDED AUG 42006 �N'^ 92-D7-5348-2 STATE FARM GENERAL INSURANCE.COMPANY - 900 OLD RIVER RD,BAKERSFIELD CA 9 331 1-6000 A STOCK COMPANY WITH HOME OFFICES IN BL.00MINGTON,ILLINOLS Agent Copy Named Insured and Mailing Address 23-3020-F790 U . TAN,HENRY&MFLYNDA OVED AST °FOR DBA AVE BAGEL:CAS C -1 �- 2000 MAIN$T IFER M Cc RATH,City Attorrie�, HUNTINGTN BCH CA 92648.2702 Carr A-inflation Coverage index: N/A BUSINESS POLICY SPECIAL FORM 3 Carr R-Con-Sumer Price Indw 203.5 AUTOMATIC RENEWAL - If the POLICY PERIOD Is shown as 12 MONTHS, this policy will be renewed autornaticaJ . sub'ect to the rE�iiurns, rules �d forms in effect for each succeeding policy period. It this policy is terminated we Wi� gO you and t e I ortgagee/I:enholder written notice in compliance rnr h the policy provisions or as required by I&W Policy Period, 12 Months The policy period begins and ends at 12:01 am standard time at the- Effective Date- AUG 4 2006 premises location. Eniira6onl note; AUG 4 2007 Named Insured:lildlvidual Your policy is amended AUG 4 2006 AIDDL INSURE-D NAME &ADDRESS.CHANQEU Location of Covered Premises: ENDORSE-MI;NT FL-6494 ADDED 2000 MAIN ST HUNTINQTN BCH CA 92648.2702 Coverages&Property Limits of Insurance ccuparicy: ercantl I e� Section I A Buildings Excluded B Business Personal Property $ 30 000 C Loss of Income -12 Months $ Actual >'oss eotion II Deductibles-Section I L Business Liability 1,000,000 M Medical Paymarits 5 000 $ 1,00c,Basic Products-Completed Operations 2,000,000 (PCO)Aggregate General Aggregate(Other $ 2,000,DDO Than PCQ) In case of loss under this policy. the deductible will be applied to each occurrence and will be deducted from the amount of the loss, Other deductibles may apply- refer to. policy. Endorsement Premium ' None Forms,Options,and Endorsements Special Form 3 FP-6143 'Additional Insured Endorsement FE-6494 Discounts Applied: Amendatory Ettdorsernbnt FE•-6205 Enclosed Building Business Policy'Endorsoment PE-6464 Protective;Devices Debris removal Endorsement FE-646i Policy Endorsement' > FE-6506.2 Glass Deductible-Section i FE-6538.1 Now Form Attached r , Continued on Reverse Side of Page OTHER LIMI7's AND EXCLUSIONS MAY APPLY-REFER YOUR POLICY Prepared CdWntorSl +� CEP 06 200�5 9� " FP-8030.2C A8MG BY Agent 0611993 JOE NGUYEN �. Your policy con&10m of thin page,any endorsemonf (714),938-4500 and the policyfdrm.PLEASE KEEP THESE TOGETHER. � (o112772a) i RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development. SUBJECT: Approve License Agreement for Civic Center Snack Shop COUNCIL MEETING DATE: October 16, 2006 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not'Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached (Signed in,full by the City Attorney) Not Applicable ❑ Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance.(Approved by the City Attorney) Attached ®' Not Applicable ❑" Fiscal Impact Statement (Unbudget, over$5,000) Attached ❑; Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑1 Not Applicable Commission, Board or Committee Report (If applicable) Attached El Not Applicable ®, Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable r "; tXPLANATION FOR,"MISSING ATTp►CHMENTS_;. REVIEWED ,. RETURNED F_OR1N, RQ ED Administrative Staff ( ) Assistant City Administrator Initial ) City Administrator.(Initial) ) City Clerk ) ;EXPLANATION FOR RETURN'OF ITEM: (Below • RCA Author: Steve Holtz-ext 5901 I I j, Ie CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK October 23, 2006 Sammath Tan, Henry Tan and Melynda Tan 1780 North Azure Street Anaheim, CA 92807-1024 To Whom It May Concern: Enclosed is a fully executed copy of the License Agreement by and between the City of Huntington Beach and Sammath Tan, Henry Tan, and Melynda Tan for operation of a food concession at the Huntington Beach Civic Center Complex. Sincerely, tan L. Flynn City Clerk JF:pe Enclosure: Agreement G:foI1owup:agrmt1tr (Telephone: 714-536-5227)