Agenda — Avalon City Council, January 17, 2023

AVALON CITY COUNCIL MEETING
TUESDAY, JANUARY 17, 2023 - 5:00 P.M.
410 AVALON CANYON ROAD
THIS VIRTUAL MEETING IS HELD PURSUANT TO AB 361
AGENDA
In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office (310) 510-0220. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35. 102-

35.104 ADA Title II). All public records relating to an agenda item on this agenda are available for the public inspection at the time the records are distributed to all, or a majority of all, members of the City Council. Such records shall be available at City Hall located at 410 Avalon Canyon Rd Due to health recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA), and the declared state of emergency wherein social distancing measures have been imposed or recommended, the CITY OF AVALON'S CITY COUNCIL and PLANNING COMMISSION MEETINGS SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.

Council Chambers are open to a maximum 30 members of the general public. Once the Council Chambers reach maximum occupancy, the general public may participate in Oral Communication and address the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chambers who is ill or exhibiting symptoms of COVID-19. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments to [email protected].

The meeting can be viewed:

On local cable: Catalina Broadband Solutions channel 3
Streaming Online: www.cityofavalon.com/meetings
*Streaming on Facebook Live: www.facebook.com/CityOfAvalonOfficial Streaming on YouTube: https://www.youtube.com/CityofAvalonCA To submit comments live using ZOOM, please register in advance for this meeting:
https://us06web.zoom.us/j/82313836839?pwd=R3UzWU01ZmtXUEpQVnRZTCtPTzEOUT09

ZOOM PUBLIC PARTICIPATION
If you wish to speak on any item on the agenda, please register in advance by clicking the following link: https://us06web.zoom.us/j/82313836839?pwd=R3UzWU01ZmtXUEpQVnRZTCtPTZEOUT09 even when submitting this request you will need to use the "raise hand" feature via Zoom during the presentation of that Agenda Item in order to confirm with the City Clerk's Office that you wish to provide comments.

CITY COUNCIL AGENDA
JANUARY 17, 2023
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1) Join Zoom Meeting via the internet:

URL: https://us06web.zoom.us/j/82313836839?pwd=RUzWU01ZmtXUEpQVnRZTCtPTzEOUT09 Meeting ID: 823 1383 6839
During meeting we t"raise hand" button through Zoom at the time the Agenda Item is being presented for City Council consideration. 2) Join Zoom Meeting via Phone Conference (Voice Only):

Phone Number: (669) 444-9171,
Meeting ID: 823 1383 6839
When you would like to comment during the meeting enter *9 on the phone's key pad to activate the "raise hand" button at the time the Agenda Item is being presented for City Council consideration.

Please note, the City is not responsible for the public's use of Zoom as it relates to the software, configuration, and setting on a personal device. The public is encouraged to visit the Zoom website for information on use of this software.

CALL TO ORDER / PLEDGE OF ALLEGIANCE / INVOCATION / ROLL CALL

ANNOUNCEMENTS / WRITTEN COMMUNICATIONS

DEPARTMENT HEAD REPORTS

CITY MANAGER REPORT / CITY ATTORNEY REPORT

COUNCILMEMBER REPORTS / MAYOR REPORT

ORAL COMMUNICATION
Members of the public may address the City Council at this time. No action will be taken on non- agenda items at this meeting. Speakers should limit comments to two (2) minutes each.

PRESENTATIONS

1. A representative from Southern California Edison will provide an update regarding Phase I mandatory water conservation.

2. A representative from Avalon Environmental Services, Inc. (CR&R) will provide an update regarding SB 1383 implementation.

3. A representative from the Catalina Island Medical Center will provide an update regarding the Hospital.

CITY COUNCIL AGENDA
JANUARY 17, 2023
PAGE 3

CONSENT CALENDAR
Minutes
Although the live recording is the official record of public meetings, actions are prepared for the Council's approval.

Recommended Action
Approve minutes from the December 6, 2022 regular City Council Meetings, and December 14, 2022 Special City Council Meeting.

2. Warrants
Expenditures Submitted for Approval
• Warrants in the amount of $1,865,962.02.
• Two payrolls in the amount of $435,655.96.
• Four electronic fund transfers totaling $154,973.40.

Recommended Action
Approve total expenditures for December 12, 2022 through January 6, 2023 totaling $2,456,591.38.

3. Findings to Continue to Hold Remote Teleconference/Virtual City Council Meetings Pursuant to Assembly Bill 361
At the November 16, 2021 City Council meeting, the City Council made findings pursuant to Assembly Bill 361 to continue to meet remotely. To continue this practice, it is required, that the City Council determine that the COVID-19 state of emergency proclaimed by the Governor still exists and has been considered by the City Council in deciding to continue to have teleconference meetings and that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and that as a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees. Because these findings must be made every thirty (30) days, the City Council will have to make these findings at its upcoming February 7, 2023 meeting and thirty (30) days thereafter.

Recommended Action
Determine that the COVID-19 state of emergency proclaimed by the Governor still exists and has been considered by the City Council in deciding to continue to have teleconference meetings and that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and that as a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees.

4. Appointment of Southern California Association of Governments Regional Conference and General Assembly Delegate
The Annual Southern California Association of Governments Regional Conference and General Assembly will be held May 4-5, 2023. The City's voting delegate will vote on agenda items pertaining to the General Assembly -Business Meeting.

CITY COUNCIL AGENDA
JANUARY 17, 2023
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Recommended Action
Adopt a resolution appointing Mayor Ann H. Marshall as the City of Avalon voting delegate and Councilmember Michael Ponce as the alternate delegate for the Annual Southern California Association of Governments Regional Conference and General Assembly in May 2023.

Adopt an Ordinance of the City of Avalon Amending Article 6 of Chapter 5 of Title 9, of the Avalon Municipal Code, to Reflect New Statewide Legislation (SB 897) Pertaining to Accessory Dwelling Units
This ordinance was introduced, and all readings waived during the December 6, 2022 regular City Council Meeting. The Planning Commission made a recommendation for City Council to approve this item at its November 16, 2022 meeting following a public hearing.

The proposed Zoning Ordinance Amendment implements revisions to the Avalon Municipal Code, to reflect new statewide legislation that goes into effect on January 1, 2023.

Recommended Action
Adopt an ordinance updating the Accessory Dwelling Unit ("ADU) regulations to reflect new mandatory changes in CA State requirements.

Development Impact Fees Annual Report for the Fiscal Year Ended June 30, 2022 Reporting requirements specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year. The report must describe the fee, the amount of the fees collected, interest earned, and identification of any expenditures from those funds. The code also specifies that reports must be reviewed by the City Council at a regularly scheduled meeting not less than 15 days following release to the public.

Recommended Action
Receive and file the Fiscal Year 2021-22 Development Impact Fees Annual Report.

Island Company Agreements
The Catalina Island Company (Island Co.) grants the City of Avalon use of specific properties for activities associated with infrastructure storage and maintenance for both exclusive City staff use and general public use. Though the City and Island Co. have not had an executed agreements for use of these spaces in the last ten years, both sides would like to formalize the use of these properties by executing use agreements.

Recommended Action
Authorize the City Manager negotiate and execute license and a sublease agreements with the Catalina Island Company for properties necessary for public use. 2023 Waterside Permit Renewals
Prior to December each year, the Harbor Master reviews all existing Waterside Permits.

Waterside Permits expire annually on December 31. Most Waterside Permits are recommended for approval and the list of those recommended for approval included in the Staff Report.

Recommended Action
Authorize the Harbor Master to renew Waterside Permits for 2023.

CITY COUNCIL AGENDA
JANUARY 17, 2023
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9. Waterside Permit Application - Avalon Anglers
The applicant has submitted a Waterside Permit Application to offer fishing charters and tours.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant a Waterside Permit to Avalon Anglers, with the following conditions:

1. All operations to load and unload charter passengers will take place on Cabrillo Mole floats except on cruise ship days when all loading and unloading will be from the floats on the Green Pier. 2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

10. Waterside Permit Application - Catalina Charter Boat Inc. (Commercial Diving and Mechanical Services)
The applicant has submitted a Waterside Permit Application to offer mechanical services and commercial dive services.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit Application to Catalina Charter Boat Inc. with the following conditions: 1. All operations to conduct mechanical repair or commercial dive services do not negatively impact the safe operation of Avalon Harbor. 2. All qualifying mechanical certificates and insurance required for commercial dive services be current and on file with Avalon Harbor Department. 3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

11. Waterside Permit Application - Catalina Charter Boat Inc. (Retail Lobster Sales) The applicant has submitted a Waterside Permit Application to offer retail sales of lobster from his vessel in Avalon Harbor.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalina Charter boat Inc, with the following conditions: 1. All operations to conduct retail sales of lobster do not negatively impact Avalon Harbor. 2. All bait, fish, traps, or other materials do not cause foul odor or attract birds. 3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

12. Waterside Permit Application - Catalina Charter Boat Inc. (Fishing Charters) The applicant has submitted a Waterside Permit Application to offer Fishing Charters.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalina Charter Boat Inc., with the following conditions: 1. All operations to load and unload charter passengers will take place on Cabrillo Mole floats except on cruise ship days when all loading and unloading will be from the floats on the Green Pier. 2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

CITY COUNCIL AGENDA
JANUARY 17, 2023
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13. Waterside Permit Application - Vintage Vessel Voyages The applicant has submitted a Waterside Permit Application proposing vintage vessel day charters using a 40' Topsail Ketch sailing boat offering day and evening charters originating from Avalon Harbor.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Lively Schooner Inc DBA Vintage Vessel Voyages, with the following conditions: 1. Any direct loading or unloading of passengers on the Green Pleasure Pier shall be prior to 10:00 AM or after 5:00 PM daily and for a period of time not to exceed 10 minutes. Arrangements for docking along the Green Pleasure Pier for the purpose of loading and unloading between the hours of 10:00 AM and 5:00 PM may be requested by contacting the Harbor Master on VHF Ch. 12. Request for dock space will be considered on case by case basis and may be declined for any reason where the Harbor Master has determined that landing is not advised. Use of public or private shore boat to load and unload charter passengers between the hours from 10:00 AM to 5:00 PM is recommended. 2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

14. Waterside Permit Application - Fishin Funactic's (Added Sailboat) The applicant has submitted a Waterside Permit Application to add a second vessel to its current Waterside Permit. Fishin Funatic's is proposing the addition of a second vessel described as a 33' Sloop sailing boat to allow for day and evening charters originating from Avalon Harbor.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Fishin Funatic's, with the following conditions:1. Any direct loading or unloading of passengers on the Green Pleasure Pier shall be prior to 10:00 AM or after 5:00 PM daily and for a period of time not to exceed 10 minutes. Arrangements for docking along the Green Pleasure Pier for the purpose of loading and unloading between the hours of 10:00 AM and 5:00 PM may be requested by contacting the Harbor Master on VHF Ch. 12. Request for dock space will be considered on case by case basis and may be declined for any reason where the Harbor Master has determined that landing is not advised. Use of public or private shore boat to load and unload charter passengers between the hours from 10:00 AM to 5:00 PM is recommended. 2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

15. Waterside Permit Application - Catalina Adventure Sailing The applicant has submitted a Waterside Permit Application to add a second vessel to its current Waterside Permit. Catalina Adventure Sailing is proposing the addition of a second low admissions 42' hybrid sailing boat to allow for overnight short term guest occupancy while offering day and evening charters originating from Avalon Harbor.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Skippers Sea B&B LLC DBA Catalina Adventure Sailing, with the following conditions: 1. Report to the finance office on a

CITY COUNCIL AGENDA
JANUARY 17, 2023
PAGE 7
monthly basis the number of night's rented, total gross receipts, and applicable taxes due.

2. Any direct loading or unloading of passengers on the Green Pleasure Pier shall be prior to 1000 AM or after 5:00 PM daily and for a period of time not to exceed 10 minutes.

Arrangements for docking along the Green Pleasure Pier for the purpose of loading and unloading passengers between the hours of 10:00 AM and 5:00 PM may be requested by contacting the Harbor Master on VHF Ch. 12. Request for dock space will be considered on case by case basis and may be declined for any reason where the Harbor Master has determined that landing is not advised. Use of public or private shore boat to load and unload charter passengers between the hours from 10:00 AM to 5:00 PM is recommended. 3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

16. Waterside Permit Application - Catalina Coastal Tours & Fishing, LLC The applicant has submitted a Waterside Permit Application to revise its current Waterside Permit to allow for Parasailing. Catalina Coastal Tours & Fishing LLC is proposing to remove 1 of the 3 vessels they have on their current Waterside Permit that is used for scheduled Eco Tours, and replace this boat with a Parasail boat with similar schedule.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalina Coastal Tours & Fishing LLC, with the following conditions: 1. All operations to load and unload charter passengers will take place on Catalina Coastal Tours End Float during seasonal operation, except during off season from October to April when the End Float is not available and no longer installed, at which time all loading and unloading will be from the floats on the Green Pleasure Pier and shall not exceed 10 minutes. 2.Applicant abides by the Standard List of Conditions for Waterside Permit Holders. 3. Applicant pays mooring fees as set by Avalon Municipal code while moored in Avalon harbor or affixed to End Float owned and operated by Catalina Coastal Tours & Fishing, LLC.

17. Waterside Permit Application - Catalina Island Mermaids The applicant has submitted a Waterside Permit Application proposing Catalina Island Mermaids use of Middle Beach area behind the Wrigley Stage and use of Step Beach for PADI approved Mermaid Swimming Classes. These instructor led classes shall not exceed 4 students per instructor led course that specializes in use of a mono-fin or mermaid fin.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalina Island Mermaids, with the following conditions: 1. Use of Step Beach be limited to Mermaid swimming classes as so that no classes may be allowed from June 16 to September 14 during peak summer season.

From September 15 to October 14 and from Palm Sunday to June 15 weekend use of Step Beach will not be allowed however weekday use may be approved upon request to the Harbor Master. From October 15 to Palm Sunday of each year (off season) use of Step Beach may be approved upon request to the Harbor Master. 2. Middle Beach area behind the Wrigley Stage may be used for Mermaid swimming classes as long as the

CITY COUNCIL AGENDA
JANUARY 17, 2023
PAGE 8
instructor led classes do not block public access to the beach or access to swim area.

3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

18. Waterside Permit Application - Trace Marine Environment Inc.

The applicant has submitted a Waterside Permit Application to offer mobile pump out services in Avalon Harbor between the months of May to October.

Recommended Action
Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Trace Marine Environment Inc. with the following conditions: Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

19. Rehabilitation of Floats 5 and 5a
The City Council made the determination that a competitive market does not exist for the maintenance of City-owned floats and authorized the City Manager to dispense with the competitive purchasing process and designated Catalina Boatyard Inc. and Diversified Composites Inc. as vendors meeting the Economic Efficiency standard. To expedite the rehabilitation process, Staff are seeking authorization to enter into negotiations to determine the vendor with the best value and availability to fulfill the outlined scope of work by the intended deadline.

Recommended Action
Authorize the City Manager to negotiate and execute contracts) for rehabilitation of Floats 5 and 5a for a not-to-exceed amount of $75,000.

20. Avalon Wastewater Treatment Plant Aeration Basin Diffuser Replacement Equipment Procurement
The City's wastewater treatment plant operator, Montrose Environmental is completing planned major maintenance on one of the three aeration basins at the plant. The remaining two basins are planned to be completed one at time over the next two years.

Recommended Action
Authorize the procurement of supplies, equipment and services for the replacement of the Avalon WWTP aeration basin diffuser system for a not to exceed cost of $41,700.00.

GENERAL BUSINESS - None.

ADJOURN

NOTICE OF POSTING
1, Devin Elise Hart, declare that the City Council Agenda for Tuesday, January 17, 2023 was posted on Friday, January 13, 2023 on the City's website www.cityofavalon.com, and at City Hall, 410 Avalon Canyon Road.

DiClis Haut
Devin Elise Hart, Management Analyst

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 1
ORIGINATING DEP: City Clerk CITY MANAGER: DMM
PREPARED BY: Gabrielle Morones, Deputy City Clerk
SUBJECT: City Council Minutes
RECOMMENDED ACTION(S): Approve minutes from the December 6, 2022 regular City Council Meeting and December 14, 2022 Special City Council Meeting.

REPORT SUMMARY: Although the live recording is the official record of public meetings, minutes are prepared for the Council's approval.

FISCAL IMPACTS: N/A.

GOAL ALIGNMENT: Not Aligned.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A.

FOLLOW UP ACTION: File minutes in the City Clerk's office.

ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS:
1) December 6, 2022 Regular City Council Minutes.
2) December 14, 2022 Special City Council Minutes.

AVALON CITY COUNCIL MEETING WHICH ALSO INCLUDED

A MEETING OF THE CITY COUNCIL ACTING AS

THE SUCCESSOR AGENCY TO THE ACIA AND THE HOUSING AUTHORITY, AND

THE HOUSING AUTHORITY
TUESDAY, DECEMBER 6, 2022 - 5:00 Р.M.

COMMISSION MEETINGS SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.

CALL TO ORDER-5:00 P.M.

ROLL CALL-Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce, Mary Schickling and Yesenia De La Rosa. Also present: City Manager David Maistros, City Attorney Scott Campbell and Management Analyst Devin Hart.

WRITTEN COMMUNICATIONS-None
PRESENTATIONS:

1. Southern California Edison Compliance Advisor, Traci Degnan, provided the state mandated Annual Propane Gas Safety Public Awareness presentation.

2. Avalon Environmental Services (CR&R) provided an update regarding implementation of recycling standards mandated by SB 1383.

CONSENT CALENDAR-There were six items on the Consent Calendar. Motion to approve items #1-#6 made by Lisa Lavelle, seconded by Michael Ponce. (All Ayes) :

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY MINUTES DECEMBER 6, 2022
PAGE 2
Minutes
Approved minutes from the November 15, 2022 regular City Council Meeting.

Warrants
Approved warrants in the amount of $1,758,796.99, one Successor Agency warrant in the amount of $5,695.00, one payroll in the amount of $216,714.57, two electronic fund transfers totaling $37,358.89 for a total expenditure of $2,018,565.45 for November 7, 2022 through November 25, 2022.

Findings to Continue to Hold Remote Teleconference/Virtual City Council Meetings Pursuant to Assembly Bill 361
Determined that the COVID-19 state of emergency proclaimed by the Governor still exists and has been considered by the City Council in deciding to continue to have teleconference meetings and that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID- 19, and that as a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees. ** The following item on the Consent Calendar was the City Council acting as the Housing Authority **
Housing Authority Annual Report for Fiscal Year 2021-22 Adopted Housing Authority Resolution No. HA 22-01 of the City of Avalon approving a Housing Successor Agency Annual Report for Fiscal Year 2021-22. ** The following item on the Consent Calendar was the City Council acting as the Successor Agency to the Avalon Community Improvement Agency **

5. Recognized Obligation Payment Schedule (ROPS) 23-24 and Successor Agency Adopted Resolution No. SA 22-53 of the Successor Agency to the Avalon Community Improvement Agency Approving a Recognized Obligation Payment Schedule 23-24 and Successor Agency Administrative Budget for Fiscal Year 2023-24.
** The following item on the Consent Calendar was the City Council acting as the Sousing A Agrigy to the Avalon Community Improvement Agency and the

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY MINUTES DECEMBER 6, 2022
PAGE 3
Multi-year Renewal Agreement with RSG, Inc. through FY 2025-26 for Successor Agency and Housing Authority Consulting Services
Authorized the City Manager/Agency Director to enter into a three year contract with RSG, Inc., to provide Successor Agency and Housing Authority consulting services through FY 2025-26 in an amount not-to-exceed $35,000 per year (or $105,000 over length of contract).

GENERAL BUSINESS
Consideration of Amendment to Transportation Permit - Sara Mintz and Juan Saldana, dba Avalon Local Tour
City Council made the affirmative findings that the criteria set forth in Avalon Municipal Code Section 5-14.04 have been meet and amend the Transportation Permit for Avalon Local Tours to allow for an additional commercial autoette.

Motion to approve made by Lisa Lavelle, seconded by Yesenia De La Rosa. (All Ayes)

8. An Ordinance of the City of Avalon Amending Article 6 of Chapter 5 of Title 9, of the Avalon Municipal Code, to Reflect New Statewide Legislation (Sb 897) Pertaining to Accessory Dwelling Units
possibility that this activity will have a significant adverse effect on the environment; 2. Introduced and waived all further readings of an ordinance updating the Accessory Dwelling Unit ("ADU) regulations to reflect new mandatory changes in CA State requirements.

Motion to approve made by Lisa Lavelle, seconded by Michael Ponce. (All Ayes) Mayor Marshall adjourned the meeting at 7:04 p.m.

I, Gabrielle Morones, Deputy City Clerk, do hereby certify that the DVD videotape of the Regular City Council Meeting on December 6, 2022, is the official record of the Council Meeting and is on file and maintained in City Hall.

Gabrielle Morones, Deputy City Clerk / Sr. Administrative Assistant

SPECIAL AVALON CITY COUNCIL MEETING
WEDNESDAY, DECEMBER 14, 2022 - 10:00 A.M.

MINUTES
Due to health recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA), and the declared state of emergency wherein social distancing measures have been imposed or recommended, the CITY OF AVALON'S CITY COUNCIL and PLANNING COMMISSION MEETINGS SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.

Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments to [email protected].

CALL TO ORDER-10:00 a.m.

ROLL CALL- Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce, Mary Schickling and Yesenia De La Rosa. Also present: City Manager David Maistros and Management Analyst Devin Hart. Absent: City Attorney Scott Campbell.

WRITTEN COMMUNICATIONS-There were 2 written correspondences that were received regarding Item #1 Vehicle Discussion.

PRESENTATION - Barry Bergman of W-Trans and Brian Hannegan of RRM Design delivered a presentation on the Mode Shift Feasibility Study, summarizing the input collected from stakeholders and the public to date as well as the preliminary recommendations.

GENERAL BUSINESS
Vehicle Discussion
By Consensus, City Council directed Staff to move forward on implementing a phased action plan to speed up the state established timeline to convert commercial autoettes to electric autoettes, developing an amnesty program to allow illegal vehicles and owners with outstanding tickets support in legalizing vehicles, and eliminating the floater policy in order to maintain a more accurate record of vehicles registered in Avalon and to ensure DMV registration.

Mayor Marshall adjourned the meeting at 12:29 a.m.

SPECIAL CITY COUNCIL MINUTES
DECEMBER 14, 2022
PAGE 2
I, Gabrielle Morones, Deputy City Clerk, do hereby certify that the DVD videotape of the Special City Council Meeting on December 14, 2022, is the official record of the Council Meeting and is on file and maintained in City Hall.

Gabrielle Morones, Deputy City Clerk / Sr. Administrative Assistant

CITY OF AVALON CITY COUNCIL
2 MEETING DATE: January 17, 2023 AGENDA ITEM:

ORIGINATING DEP: Finance CITY MANAGER: SUM
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve total expenditures for December 12, 2022 through January 6, 2023 totaling $2,456,591.38.

REPORT SUMMARY: These disbursements through January 6th are comprised of warrants totaling $1,865,962.02, two payrolls totaling $435,655.96, and other electronic fund transfers totaling $154,973.40.

ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 35346-35396 430,320.67 12/22/22 GF US BANK WARRANTS CK# 35397-35479 1,435,641.35 01/06/23 PAYROLL 209,590.45 12/16/22
226,065.51 12/30/22
EFT - CALPERS MEDICAL 80,069.44 01/04/23
EFT - CALPERS RETIREMENT 36,516.74 12/12/22
EFT - CALPERS RETIREMENT 36,782.77 12/23/22
EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 1,604.45 01/06/23 TOTAL DISBURSEMENTS $ 2,456,591.38
GOAL ALIGNMENT: Ongoing meeting of City obligations.

FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY22-23 Budget.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: Audit Certificate, Warrant List, US Bank Credit Card Details

CITY OF AVALON
DECEMBER 12, 2022 - JANUARY 6, 2023 DISBURSEMENTS
January 17, 2023

ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 35346-35396 430,320.67 12/22/22 GF US BANK WARRANTS CK# 35397-35479 1,435,641.35 01/06/23 PAYROLL 209,590.45 12/16/22
[PAYROLL 226,065.51 12/30/22
EFT - CALPERS MEDICAL 80,069.44 01/04/23
EFT - CALPERS RETIREMENT 36,516.74 12/12/22
EFT - CALPERS RETIREMENT 36,72.77 12/23/22
EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 1,604.45 01/06/23 TOTAL DISBURSEMENT$ 2,456,591.38

CERTIFICATE
IN ACCORDANCE WITH SECTION 32702

OF THE GOVERNMENT CODE, I CERTIFY

THAT THE ABOVE DEMANDS ARE ACCURATE

AND THAT FUNDS ARE AVAILABLE FOR
PAYMENT.

APPROVED AND AUDITED THIS
17TH DAY OF JANUARY 2023 I CERTIFY UNDER PENALTY OF PERJURY

THAT THE FOREGOING IS TRUE AND
CORRECT.

AUDIT COMMITTEE - LISA LAVELLE EXECUTED THIS 17TH DAY OF JANUARY 2023

AUDIT COMMITTEE - MARY SCHICKLING FINANCE DIRECTOR - MATTHEW BAKER

CITY OF AVALON
DECEMBER 12, 2022 - JANUARY 6, 2023 DISBURSEMENT:

January 17, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
35346 12/22/2022 2,456.82 AAA OIL, INC FUEL - ALL DEPTS 35347 12/22/2022 85.70 AIR SOURCE INDUSTRIES SUPPLIES- FIRE 35348 12/22/2022 78.95 ALBERTSON COMPANIES SUPPLIES - RECREATION 35349 12/22/2022 3,191.33 AMAZON CAPITAL SERVICES, INC. SUPPLIES - ALL DEPARTMENTS 35350 12/22/2022 1,363.74 AT & T COMMUNICATIONS - ALL DEPARTMENTS 35351 12/22/2022 5,502.60 AVALON ENVIRONMENTAL SVCS SWEEPER - 11/2022 35352 12/22/2022 3,318.13 AVALON FREIGHT SERVICES, LLC FREIGHT - ALL DEPARTMENTS 35353 12/22/2022 1,987.40 AVALON MOORING & DIVING SERVICE - HARBOR 35354 12/22/2022 3,121.50 BEYOND SOFTWARE SOLUTIONS CONTRACT SERVICES - IT 35355 12/22/2022 299.58 BROWN, MARISA RETIREE INSURANCE - 12/2022 35356 12/22/2022 634.40 CAFE METROPOLE SENIOR MEALS - 11/2022 35357 12/22/2022 7,695.88 CATALINA BEVERAGE CO SUPPLIES - ALL DEPARTMENTS 35358 12/22/2022 172.58 CATALINA BROADBAND SOLUTIONS SERVICE - FIRE/PUBLIC WORKS 35359 12/22/2022 8,178.00 CATALINA ISLAND COMPANY RENT - 12/2022 35360 12/22/2022 248.00 CATALINA PEST CONTROL SERVICE - HARBOR 35361 12/22/2022 385.00 CISNEROS, CHRISTIAN REIMB O/P COSTS 35362 12/22/2022 208,101.10 COLLINS COLLINS MUIR & STEWARD, LLP LITIGATION COSTS 35363 12/22/2022 9.83 CUEVAS, JOSE REIMB O/P COSTS
35364 12/22/2022 7,169.52 DELTA DENTAL DENTAL - 12/2022 35365 12/22/2022 818.00 DEWEY PEST CONTROL SERVICE - ALL DEPARTMENTS 35366 12/22/2022 544.76 DION & SONS MARINE FUELS INC FUEL - HARBOR 35367 12/22/2022 45,359.17 EDISON UTILITIES - ALL DEPARTMENTS 35368 12/22/2022 1,049.56 FIDELITY SECURITY LIFE INSURANCE VISION - 12/2022 35369 12/22/2022 1,955.01 FINELINE CONSTRUCTION SERVICE - FIRE 35370 12/22/2022 50.94 GALLS, LLC UNIFORMS - FIRE
35371 12/22/2022 885.27 GRAINGER SUPPLIES - PUBLIC WORKS 35372 12/22/2022 1,443.43 HINDERLITER, DE LLAMAS & ASSOCIATES SERVICE - FINANCE 35373 12/22/2022 229.74 KECO PUMP & EQUIPMENT SUPPLIES - HARBOR 35374 12/22/2022 1,802.51 LINDE GAS & EQUIPMENT INC. SUPPLIES - HARBOR 35375 12/22/2022 70.00 LLOYDS OF AVALON SUPPLIES - RECREATION 35376 12/22/2022 514.47 MATTHEWS INTERNATIONAL CORPORATION SUPPLIES - CEMETERY 35377 12/22/2022 911.89 MCMASTER-CARR SUPPLIES - HARBOR/PUBLIC WORKS 35378 12/22/2022 80.00 MOFFATT & NICHOL SERVICE - PLANNING 35379 12/22/2022 5,450.26 OUTDRIVE EXCHANGE SERVICE - HARBOR 35380 12/22/2022 809.67 QUILL CORP SUPPLIES - ALL DEPARTMENTS 35381 12/22/2022 23.10 RADDE, DENISE REIMB O/P COSTS
35382 12/22/2022 20.57 RICOH USA, INC. COPIER LEASE - PLANNING 35383 12/22/2022 1,137.96 SHERWIN-WILLIAMS SUPPLIES - HARBOR 35384 12/22/2022 9,357.91 SIRIA'S CLEANING SERVICE 2ND HALF 12/2022 35385 12/22/2022 1,205.89 STANDARD INSURANCE COMPANY LIFE INSURANCE - 12/2022 35386 12/22/2022 13,676.00 SWRCB PERMIT FEES - WWTP
35387 12/22/2022 48.50 UNDERGROUND SERVICE ALERT/SC SERVICE - PUBLIC WORKS 35388 12/22/2022 2,449.96 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL 35389 12/22/2022 15,208.33 VEGA, EDMUNDO CONTRACT SERVICES - 12/2022 35390 12/22/2022 1,713.26 VERIZON WIRELESS COMMUNICATIONS - ALL DEPARTMENTS 35391 12/22/2022 2,026.75 WALTERS WHOLESALE ELECTRIC CO SUPPLIES - HARBOR 35392 12/22/2022 36,000.00 WEST COAST ARBORISTS, INC SERVICE - PUBLIC WORKS 35393 12/22/2022 5,821.85 WESTRIDGE ENVIRONMENTAL GROUP SUPPLIES - WWTP

Page 1 of 4 ends

CITY OF AVALON
DECEMBER 12, 2022 - JANUARY 6, 2023 DISBURSEMENTS
January 17, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
35394 12/22/2022 24,385.25 W-TRANS SERVICE - PLANNING
35395 12/22/2022 1,080.30 XEROX CORPORATION COPIER LEASE - ADMINISTRATION 35396 12/22/2022 190.30 ZOLL MEDICAL CORP. SUPPLIES - FIRE 35397 01/06/2023 24,083.33 CATALINA COASTAL TOURS & FISHING CONTRACT SERVICES - 01/2023 35398 01/06/2023 2,843.72 AAA OIL, INC FUEL - ALL DEPTS 35399 01/06/2023 557.63 ACTION SALES & METAL CO. SUPPLIES - HARBOR 35400 01/06/2023 3,007.30 AMAZON CAPITAL SERVICES, INC. SUPPLIES - ALL DEPARTMENTS 35401 01/06/2023 2,745.20 AVALON BOAT STAND SUPPLIES - HARBOR 35402 01/06/2023 340.87 AVALON FREIGHT SERVICES, LLC FREIGHT - ALL DEPARTMENTS 35403 01/06/2023 713.00 AVALON MOORING & DIVING SERVICE - HARBOR 35404 01/06/2023 7,901.07 BRAY, BRIAN MED REIMB 07-12/22, HRA 07-09/22 35405 01/06/2023 332.22 BROWN, MARISA RETIREE INSURANCE - 01/2023 35406 01/06/2023 1,918.08 CATALINA BEVERAGE CO SUPPLIES - ALL DEPARTMENTS 35407 01/06/2023 2,009.90 CATALINA BROADBAND SOLUTIONS INTERNET - ALL DEPARTMENTS 35408 01/06/2023 104,500.00 CATALINA CHAMBER OF COMMERCE TOT - 01/2023 35409 01/06/2023 57,198.47 CATALINA EXPRESS SUBSIDY - 12/2022 35410 01/06/2023 150.00 JACKSON, JOHN HENRY SERVICE - STREETS 35411 01/06/2023 594.38 CATALINA ISLAND COMPANY SERVICE - RECREATION 35412 01/06/2023 175.00 CATALINA ISLAND JANITORIAL SERVICE - ADMINISTRATION 35413 01/06/2023 175.95 CATALINA YAMAHA SUPPLIES - GARAGE 35414 01/06/2023 - CIRA VOID - MULTI STUB CHECK
35415 01/06/2023 758,125.55 CIRA WORKERS COMP FY23, INSURANCE POLICIES FY23 35416 01/06/2023 800.20 CREATIVE SIGN, INC. REISSUE CHECK 35132 35417 01/06/2023 193.50 DAPEER, ROSENBLIT & LITVAK, LLP SERVICE - VEHICLES 35418 01/06/2023 576.00 DION & SONS MARINE FUELS INC FUEL - HARBOR 35419 01/06/2023 8,499.00 THE WANDERLUST GROUP INC CONTRACT SERVICES - HARBOR 35420 01/06/2023 175.20 EMS SAFETY SERVICES, INC TRAINING - FIRE 35421 01/06/2023 4,990.63 ESG ENGINEERING SERVICE - PUBLIC WORKS 35422 01/06/2023 3,928.30 ESG ENGINEERING SERVICE - PUBLIC WORKS 35423 01/06/2023 2,295.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 35424 01/06/2023 919.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 35425 01/06/2023 687.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 35426 01/06/2023 6,993.30 ESG ENGINEERING SERVICE - PUBLIC WORKS 35427 01/06/2023 11,048.99 ESG ENGINEERING SERVICE - PUBLIC WORKS 35428 01/06/2023 5,677.55 ESG ENGINEERING SERVICE - PUBLIC WORKS 35429 01/06/2023 3,531.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35430 01/06/2023 540.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35431 01/06/2023 900.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35432 01/06/2023 687.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 35433 01/06/2023 3,167.20 ESG ENGINEERING SERVICE - PUBLIC WORKS 35434 01/06/2023 935.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35435' 01/06/2023 360.00 ESG ENGINEERING SERVICE - PUBLIC WORKS

Page 2 of 4 ends

CITY OF AVALON
DECEMBER 12, 2022 - JANUARY 6, 2023 DISBURSEMENTS
January 17, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
35436 01/06/2023 15,078.20 ESG ENGINEERING SERVICE - PUBLIC WORKS 35437 01/06/2023 720.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35438 01/06/2023 900.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35439 01/06/2023 11,793.70 ESG ENGINEERING SERVICE - PUBLIC WORKS 35440 01/06/2023 540.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35441 01/06/2023 10,159.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 35442 01/06/2023 1,260.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35443 01/06/2023 2,068.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35444 01/06/2023 720.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35445 01/06/2023 1,080.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 35446 01/06/2023 285.24 FINANCIAL CREDIT NETWORK SERVICE - FINANCE 35447 01/06/2023 122.28 GALLS, LLC UNIFORMS - FIRE
35448 01/06/2023 662.02 GRAINGER SUPPLIES - PUBLIC WORKS 35449 01/06/2023 1,020.00 HERNANDEZ, GLORIA SERVICE - ADMINISTRATION 35450 01/06/2023 595.00 LUPO, KARLA SERVICE - RECREATION 35451 01/06/2023 49.50 ISLAND THREADZ UNIFORMS - FIRE
35452 01/06/2023 101.50 JORDAHL CONSTRUCTION HHW DISPOSAL 35453 01/06/2023 290.93 KONA TEES SCREENPRINTING & EMBROID SUPPLIES - FIRE 35454 01/06/2023 951.00 MASA DUES - 01/2023
35455 01/06/2023 605.72 MATTHEWS INTERNATIONAL CORPORATION SUPPLIES - CEMETERY 35456 01/06/2023 2,926.42 MCBRIDE, MATTHEW MEDICAL REIMBURSEMENT 06-12/2022 35457 01/06/2023 819.75 MCMASTER-CARR SUPPLIES - HARBOR 35458 01/06/2023 19,000.00 SULLIVAN, MATTHEW PRORESS PAYMENT 2 35459 01/06/2023 141,817.59 MONTROSE ENVIRONMENTAL SOLUTIONS CONTRACT SERVICES - 11/2022 35460 01/06/2023 892.61 NAPA AUTO PARTS SUPPLIES - GARAGE 35461 01/06/2023 18.70 SANCHEZ, TIMOTHY SUPPLIES - RECREATIO 35462 01/06/2023 3,757.05 POLYDYNE, INC. SUPPLIES - WWTF 35463 01/06/2023 1,125.00 QUADIENT POSTAGE REFILL
35464 01/06/2023 348.27 QUILL CORP SUPPLIES - ALL DEPARTMENTS 35465 01/06/2023 2,613.82 REGAN, JOHN CHECK REISSUANCE
35466 01/06/2023 52.50 SAMPSON, RUTH REIMB O/P COSTS
35467 01/06/2023 9,357.91 SIRIA'S CLEANING SERVICE 1ST HALF 2023

Page 3 of 4 ends

CITY OF AVALON
DECEMBER 12, 2022 - JANUARY 6, 2023 DISBURSEMENTS
January 17, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
35468 01/06/2023 399.30 STERICYCLE, INC SUPPLIES - FIRE 35469 01/06/2023 3,554.38 SUPERION, LLC SOFTWARE LEASE - FINANCE 35470 01/06/2023 142,661.03 PARKING CONCEPTS, INC. CONTRACT SERVICES - 11-12/2022. 35471 01/06/2023 : CORPORATE PAYMENT SYSTEMS VOID - MULTI STUB CHECK 35472 01/06/2023 CORPORATE PAYMENT SYSTEMS VOID - MULTI STUB CHECK 35473 01/06/2023 25,410.52 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL 35474 01/06/2023 1,893.50 WALTERS WHOLESALE ELECTRIC CO SUPPLIES - HARBOR/PUBLIC WORKS 35475 01/06/2023 273.83 WEST MARINE PRO SUPPLIES - HARBOR 35476 01/06/2023 427.34 WITMER PUBLIC SAFETY GROUP, INC. 35477 01/06/2023 4,125.00 WITTMAN ENTERPRISES, LLC SERVICE - FINANCE 35478 01/06/2023 326.70 ZOLL MEDICAL CORP. SUPPLIES - FIRE 35479 01/06/2023 560.00 HICKMAN, JESSICA SERVICE - RECREATION 1,865,962.02

Page 4 of 4 ends

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID DECEMBER 22, 2022
January 17, 2023

LAST NAME POST DATE AMT USD DESCRIPTION DEPARTMENT
HERNANDEZ 106.54 HOSEWAREHOUSE.COM GARAGE SUPPLIES PUBLIC WORKS HERNANDEZ 10/19/2022 210.32 PEBBLY BEACH BUILDING SUPPLY MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 25.29 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 10/24/2022 399.51 HARRY'S MARINE SERVICE GARAGE SUPPLIES PUBLIC WORKS

HERNANDEZ GARAGE SUPPLIES PUBLIC WORKS
HERNANDEZ 95.15 CHET'S HARDWARE JMF MAINTENANCE PUBLIC WORKS HERNANDEZ 17.11 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 102.89 CHET'S HARDWARE SALTWATER MAINTENANCE PUBLIC WORKS HERNANDEZ 941.43 TRAFFICSAFETYSTORE.COM SAFETY SUPPLIES PUBLIC WORKS HERNANDEZ 140.60 PEBBLY BEACH BUILDING SUPPLY HARBOR MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 294.99 PEBBLY BEACH BUILDING SUPPLY SKATE PARK MAINTENANCE PUBLIC WORKS HERNANDEZ 10.55 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS $ 2,449.96 CHECK 35388

Page 1 of 1 ends

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID DECEMBER 22, 2022
January 17, 2023

LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT GONZALES 12/12/2022 1,629.44 NAPA AUTO PARTS GARAGE SUPPLIES FINANCE GONZALES 12/12/2022 499.00 FEDERAL PROCESSING REGISTRATION SAM REGISTRATION FINANCE HERNANDEZ 11/16/2022 40.02 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 11/17/2022 8.78 CHET'S HARDWARE SALT WATER MAINTENANCE PUBLIC WORKS HERNANDEZ 11/30/2022 7.26 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/1/2022 35.11 CHET'S HARDWARE SALT WATER MAINTENANCE PUBLIC WORKS HERNANDEZ 12/2/2022 39.78 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/2/2022 39.91 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/5/2022 48.15 CHET'S HARDWARE VIA CASINO ARCH MAINTENANCE PUBLIC WORKS HERNANDEZ 12/5/2022 50.57 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/5/2022 77.39 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/7/2022 220.73 PEBBLY BEACH BUILDING SUPPLY MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/8/2022 98.91 CHET'S HARDWARE VIA CASINO ARCH MAINTENANCE PUBLIC WORKS HERNANDEZ 12/9/2022 14.26 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/9/2022 90.40 EBAY GARAGE SUPPLIES PUBLIC WORKS HERNANDEZ 12/12/2022 8.78 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/12/2022 113.27 CHET'S HARDWARE TOOL SUPPLIES PUBLIC WORKS HERNANDEZ 12/13/2022 66.52 CHET'S HARDWARE VIA CASINO ARCH MAINTENANCE PUBLIC WORKS HERNANDEZ 12/13/2022 19.67 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/13/2022 28.20 PEBBLY BEACH BUILDING SUPPLY VIA CASINO ARCH MAINTENANCE PUBLIC WORKS HERNANDEZ 12/14/2022 101.04 PEBBLY BEACH BUILDING SUPPLY VIA CASINO ARCH MAINTENANCE PUBLIC WORKS SCHMIDT 11/16/2022 14.00 UCLA SELF-SERVE PARKING PARKING HARBOR SCHMIDT 11/17/2022 14.00 UCLA SELF-SERVE PARKING PARKING HARBOR SCHMIDT 11/21/2022 14.00 UCLA SELF-SERVE PARKING PARKING HARBOR SCHMIDT 11/21/2022 8.00 UCLA SELF-SERVE PARKING PARKING HARBOR SCHMIDT 11/28/2022 197.99 CHET'S HARDWARE OFFICE SUPPLIES HARBOR SCHMIDT 12/6/2022 572.02 SHOES FOR CREWS UNIFORMS HARBOR SCHMIDT 12/7/2022 28.59 AMAZON HOLIDAY DECORATIONS HARBOR SCHMIDT 12/15/2022 26.09 AMAZON HOLIDAY DECORATIONS HARBOR HMIELAK 11/17/2022 9.89 CHET'S HARDWARE AFD BUILDING MAINTENANCE PUBLIC WORKS HMIELAK 11/17/2022 56.07 REDWING BRANDS OF AMERICA UNIFORMS PUBLIC WORKS HMIELAK 11/18/2022 17.59 CHET'S HARDWARE AFD BUILDING MAINTENANCE PUBLIC WORKS HMIELAK 11/18/2022 39.08 CHET'S HARDWARE AFD BUILDING MAINTENANCE PUBLIC WORKS HMIELAK 11/18/2022 61.83 PEBBLY BEACH BUILDING SUPPLY AFD BUILDING MAINTENANCE PUBLIC WORKS HMIELAK 11/21/2022 494.99 CHET'S HARDWARE CITY HALL MAINTENANCE PUBLIC WORKS HMIELAK 11/21/2022 86.31 CHET'S HARDWARE CITY HALL MAINTENANCE PUBLIC WORKS HMIELAK 11/21/2022 138.97 HARBOR FREIGHT TOOLS MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 11/21/2022 682.00 CREATIVE BUS SALES BUS MAINTENANCE PUBLIC WORKS HMIELAK 11/23/2022 36.18 CHET'S HARDWARE HOLIDAY DECORATIONS PUBLIC WORKS HMIELAK 11/23/2022 69.48 PEBBLY BEACH BUILDING SUPPLY JMF MAINTENANCE PUBLIC WORKS HMIELAK 11/25/2022 53.77 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 11/25/2022 78.49 CHET'S HARDWARE STREET MAINTENANCE PUBLIC WORKS HMIELAK 11/30/2022 387.38 BRIMAR INDUSTRIES TRAFFIC SAFETY SUPPLIES PUBLIC WORKS HMIELAK 11/30/2022 125.28 PEBBLY BEACH BUILDING SUPPLY PUMP OUT FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 12/5/2022 3.17 CHET'S HARDWARE CITY HALL MAINTENANCE PUBLIC WORKS HMIELAK 12/5/2022 21.99 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 12/5/2022 77.99 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 12/6/2022 238.44 LOWES RESTROOM MAINTENANCE PUBLIC WORKS HMIELAK 12/7/2022 33.57 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 12/7/2022 6.59 CHET'S HARDWARE CITY HALL MAINTENANCE PUBLIC WORKS HMIELAK 12/8/2022 83.50 CATALINA EXPRESS TRAVEL PUBLIC WORKS HMIELAK 12/9/2022 15.89 ARCO TRAVEL PUBLIC WORKS
HMIELAK 12/9/2022 168.67 HYATT LODGING PUBLIC WORKS
HMIELAK 12/12/2022 220.93 ENTERPRISE CAR RENTAL PUBLIC WORKS HMIELAK 12/12/2022 643.55 ACCESSDOORSANDPANELS.COM VIA CASINO ARCH MAINTENANCE PUBLIC WORKS HMIELAK 12/14/2022 (643.55) ACCESSDOORSANDPANELS.COM CREDIT PUBLIC WORKS HMIELAK 12/14/2022 36.39 CHET'S HARDWARE PUMP OUT FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 12/14/2022 220.39 CHET'S HARDWARE PUMP OUT FLOAT MAINTENANCE PUBLIC WORKS

Page 1 of 3 ends

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID DECEMBER 22, 2022
January 17, 2023

LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT HMIELAK 12/14/2022 54.89 CHET'S HARDWARE PUMP OUT FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 12/15/2022 80.27 CHET'S HARDWARE PUMP OUT FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 12/15/2022 371.85 PEBBLY BEACH BUILDING SUPPLY VIA CASINO ARCH MAINTENANCE PUBLIC WORKS HMIELAK 12/15/2022 32.43 PEBBLY BEACH BUILDING SUPPLY VIA CASINO ARCH MAINTENANCE PUBLIC WORKS CARSTARPHEN 11/16/2022 13.17 CHET'S HARDWARE OFFICE SUPPLIES HARBOR CARSTARPHEN 11/25/2022 514.00 CABRILLO BOAT SHOP PUMP OUT FLOAT MAINTENANCE HARBOR CARSTARPHEN 11/29/2022 3.99 WEATHERFLOW WEATHER SERVICE SUBSCRIPTION HARBOR CARSTARPHEN 11/30/2022 5.49 CHET'S HARDWARE PUMP OUT FLOAT MAINTENANCE HARBOR CARSTARPHEN 12/5/2022 35.71 CHET'S HARDWARE HARBOR BOAT MAINTENANCE HARBOR CARSTARPHEN 12/5/2022 500.00 DATATEL COMMUNICATIONS PAYMENT SERVICE HARBOR CARSTARPHEN 12/13/2022 171.56 AMAZON.COM OFFICE SUPPLIES HARBOR GREENLAW 11/25/2022 27.26 U-HAUL OXNARD UMAX TRANSPORT PUBLIC WORKS GREENLAW 11/25/2022 81.46 U-HAUL OXNARD UMAX TRANSPORT PUBLIC WORKS GREENLAW 11/29/2022 (50.00) U-HAUL OF VAN NUYS CREDIT PUBLIC WORKS GREENLAW 11/30/2022 21.80 U-HAUL OF OXNARD UMAX TRANSPORT PUBLIC WORKS GREENLAW 12/1/2022 (27.26) U-HAUL OF OXNARD CREDIT PUBLIC WORKS GREENLAW 12/1/2022 (81.46) U-HAUL OF OXNARD CREDIT PUBLIC WORKS GREENLAW 12/1/2022 49.18 U-HAUL OF OXNARD UMAX TRANSPORT PUBLIC WORKS GREENLAW 12/1/2022 125.81 EXXON MOBIL FUEL PUBLIC WORKS RADDE 12/2/2022 82.96 CYBERLINK NETWORK IT SUBSCRIPTION ADMINISTRATION RADDE 12/5/2022 25.35 VAST CONFERENCE COMMUNICATIONS ADMINISTRATION HART 12/6/2022 72.59 AMAZON.COM OFFICE SUPPLIES ADMINISTRATION MAISTROS 11/21/2022 373.75 ROTOLITE INC. OFFICE SUPPLIES ADMINISTRATION MAISTROS 12/7/2022 625.00 CALCITIES CONFERENCE REGISTRATION ADMINISTRATION BAKER 11/21/2022 423.95 WESTIN SAN DIEGO LODGING FINANCE BAKER 12/2/2022 56.08 CHET'S HARDWARE MAINTENANCE SUPPLIES FINANCE BAKER 12/2/2022 164.19 CROWN AWARDS HOLIDAY DECORATING AWARDS FINANCE BAKER 12/5/2022 94.35 WESTIN SAN DIEGO LODGING FINANCE
BAKER 12/7/2022 125.00 CSMFO MEMBERSHIP FINANCE
BAKER 12/7/2022 470.00 CSMFO CONFERENCE REGISTRATION FINANCE BAKER 12/9/2022 1,570.00 SOLARWINDS IT SUBSCRIPTION FINANCE BAKER 12/12/2022 499.00 SANGOMA US INC. IT SUBSCRIPTION FINANCE CAMPBELL 11/18/2022 104.00 SENDHUB SUBSCRIPTION COMMUNICATIONS HUMAN RESOURCES CAMPBELL 11/18/2022 547.14 LINKEDIN JOB ADVERTISEMENT HUMAN RESOURCES CAMPBELL 11/28/2022 532.09 LINKEDIN JOB ADVERTISEMENT HUMAN RESOURCES CAMPBELL 12/5/2022 547.69 LINKEDIN JOB ADVERTISEMENT HUMAN RESOURCES CAMPBELL 12/7/2022 122.09 AMAZON.COM OFFICE SUPPLIES HUMAN RESOURCES CAMPBELL 12/12/2022 549.83 LINKEDIN JOB ADVERTISEMENT HUMAN RESOURCES ALEGRIA 12/5/2022 83.50 CATALINA EXPRESS TRAVEL FIRE
ALEGRIA 12/5/2022 325.00 CATALINA EXPRESS TRAVEL FIRE
ALEGRIA 12/5/2022 51.30 LA TAQUERIA TRAVEL FIRE
ALEGRIA 12/5/2022 189.34 FAIRFIELD INN LODGING FIRE
ALEGRIA 12/7/2022 13.18 VONS MAINTENANCE SUPPLIES FIRE
ALEGRIA 12/7/2022 27.50 DOLLAR TREE HOLIDAY SUPPLIES FIRE ALEGRIA 12/7/2022 1,183.67 SERTA SIMMONS DORM MATTRESSES FIRE ALEGRIA 12/8/2022 124.99 ETSY.COM MISCELLANEOUS SUPPLES FIRE ALEGRIA 12/14/2022 24.00 USPS FREIGHT FIRE
ALEGRIA 12/15/2022 2,529.00 FDIC TRAINING FIRE
ALEGRIA 12/15/2022 1,870.00 FDIC TRAINING FIRE
HART 11/16/2022 296.16 ROTOLITE INC. OFFICE SUPPLIES RECREATION HART 11/21/2022 720.55 FLORIDA SAIL CRAFT CANOE SUPPLIES RECREATION HART 11/21/2022 720.55 FLORIDA SAIL CRAFT CANOE SUPPLIES RECREATION HART 11/21/2022 60.49 CHET'S HARDWARE MAINTENANCE SUPPLIES RECREATION HART 11/23/2022 65.95 CHET'S HARDWARE MAINTENANCE SUPPLIES RECREATION HART 11/23/2022 10.98 CHET'S HARDWARE MAINTENANCE SUPPLIES RECREATION HART 11/23/2022 436.03 THE HOME DEPOT MAINTENANCE SUPPLIES RECREATION HART 11/25/2022 (39.57) CHET'S HARDWARE CREDIT RECREATION HART 11/25/2022 48.32 CHET'S HARDWARE MAINTENANCE SUPPLIES RECREATION

Page 2 of 3 ends

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID DECEMBER 22, 2022
January 17, 2023

LAST NAME POST DATE AMT USD DESCRIPTION DEPARTMENT
HART 20.00 FREEONLINESURVEYS.COM SERVICE RECREATION
HART 11/28/2022 19.27 CHET'S HARDWARE MAINTENANCE SUPPLIES RECREATION HART 48.05 PEBBLY BEACH BUILDING SUPPLY MAINTENANCE SUPPLIES RECREATION HART 61.03 CHET'S HARDWARE MAINTENANCE SUPPLIES RECREATION HART 12/1/2022 14.36 VONS PRIME TIMERS SUPPLIES RECREATION HART 14.95 OTC BRANDS MEMBERSHIP FEE RECREATION
3 25,410.52 CHECK 35473

Page 3 of 3 ends

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 3
ORIGINATING DEP: City Attorney CITY MANAGER: DMM
PREPARED BY: Scott Campbell, City Attorney
SUBJECT: Findings to Continue to Hold Remote Teleconference/Virtual City Council Meetings Pursuant to Assembly Bill 361
RECOMMENDED ACTION(S): Determine that the COVID-19 state of emergency proclaimed by the Governor still exists and has been considered by the City Council in deciding to continue to have teleconterence meetings and that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and that as a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees.

REPORT SUMMARY: Traditionally, the Brown Act allows for teleconference or virtual meetings, provided that the physical locations of the legislative body's members joining by teleconference are posted on the agenda, that those locations are open to the public and that a quorum of the members is located within its jurisdiction. Newly enacted AB 361 provides an exception to these procedures in order to allow for fully virtual meetings during proclaimed emergencies, including the COVID-19 pandemic.

Since March of 2020 and the issuance of Governor Newsom's Executive Order N-29-20, which suspended portions of the Brown Act relating to teleconferencing, the City Council has had virtual meetings without having to post the location of the legislative body members attending virtually.

Most public agencies have been holding public meetings using virtual platforms since this time.

In June of 2021, Governor Newsom issued Executive Order N-08-21, which provided that the exceptions contained in EO N-29-20 would sunset on September 30, 2021.

On September 10, 2021, the Legislature adopted AB 361, which allows public agencies to hold fully virtual meetings under certain circumstances without the posting of the agenda from each location a legislative body member is attending. Governor Newsom signed the bill into law on September 16, 2021. Because it contained an urgency provision, it took immediate effect.

Specific Findings Required under AB 361
Under AB 361, the City Council can hold virtual meetings without providing notice of the City Council's teleconference location if the City Council makes the determination that there is a Governor-proclaimed state of emergency, which the City Council will consider in their determination, and one of two secondary criteria listed below exists:

1. State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; or
65059.00000134520481.1

2. The City Council determines that requiring a meeting in person would present an imminent risk to the health or safety of attendees.

COVID-19 continues to present an imminent threat to the health or safety of members of the public, and the Governor's declaration of a COVID-19 emergency still exists. Although vaccines are now widely available, many people in the State and County are still not fully vaccinated and remain susceptible to infection. The disease can still spread rapidly through person-to-person contact and those in close proximity. Further, more contagious variants of the disease are now present in the State and County, the most predominant of which is a new variant of the Omnicron variant. The County of Los Angeles recently re-instituted some mandates given the rise in cases and deaths nationally and public health officials have indicated that they may reinstitute certain mask requirements if cases continue to rise. The City's economy is dependent upon visitors to the island, the presence of which, increases the likelihood of transmission of the disease. Also, having members of the public attend council meetings at locations where council members are in attendance due to their desire to avoid exposure to COVID-19 poses an imminent risk to the health or safety of attendees.

Re-Authorization is Required Within 30 Days
The City Council made the findings listed above at its December 20, 2022 City Council meeting.

Consistent with the provisions of Government Code Section 54953(e), the findings must be made every 30 days "after teleconferencing for the first time" under AB 361. Thus, if the City Council desires to continue to meet remotely without having to post the location of each teleconference location, the City Council must again find that the COVID-19 emergency still exists and that one of the two following findings can be made: that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, or, that a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees. Because these findings must be made every thirty (30) days, the City Council will have to make these findings at its upcoming February 7, 2023 meeting and thirty (30) days thereafter.

It is recommended that the City Council make these findings.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City Council will have to follow the Brown Act provisions that existed prior to the COVID-19 pandemic.

FOLLOW UP ACTION: That the City Council make the findings under AB 361 at its February 7, 2023 City Council meeting.

GOAL ALIGNMENT: N/A
FISCAL IMPACTS: None.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS: None.
65059.00000\34520481.1

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 4
ORIGINATING DEP: Administration CITY MANAGER: AMM
PREPARED BY: Gabrielle Morones, Deputy City Clerk/Sr. Admin. Assistant SUBJECT: Appointment of Southern California Association of Governments Regional Conference and General Assembly Delegate
RECOMMENDED ACTION(S): Adopt a resolution appointing Mayor Ann H. Marshall as the City of Avalon voting delegate and Councilmember Michael Ponce as the alternate delegate for the Annual Southern California Association of Governments Regional Conference and General Assembly in May 2023.

REPORT SUMMARY: The Annual Southern California Association of Governments Regional Conference and General Assembly will be held in Palm Desert, CA from May 4-5, 2023.

Nearly 1,000 of Southern California's most influential leaders and innovators will attend, including local elected officials, business and civic leaders, transportation and environmental stakeholders, local government staff and others.

The City's voting delegate will vote on agenda items pertaining to the General Assembly - Business Meeting.

GOAL ALIGNMENT: Professional development.

FISCAL IMPACTS: Funds will be placed in Account #10110-5510 of FY 2022-2023 Budget to attend the conference.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will not have designated representatives.

FOLLOW UP ACTION: Implement City Council Direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Resolution
RESOLUTION NO. _

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVALON

APPOINTING A VOTING DELEGATE AND AN ALTERNATE DELEGATE TO THE 2023 ANNUAL SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS

REGIONAL CONFERENCE AND GENERAL ASSEMBLY
WHEREAS, the Annual Southern California Association of Governments Regional Conference and General Assembly will be held in Palm Desert, CA on May 4-5, 2023.

WHEREAS, traditionally, the Mayor has been appointed to be the City of Avalon's voting delegate; and
WHEREAS, the voting delegate will vote on agenda items pertaining to the General Assembly - Business Meeting; and
WHEREAS, the voting delegate will also have the opportunity to bring any policy matter in the form of a proposed resolution or proposed SCAG bylaw resolution before the General Assembly for determination; and
WHEREAS, the Mayor, will be attending the Annual Southern California Association of Governments Regional Conference and General Assembly and be available to represent the City of Avalon.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Avalon hereby resolves as follows:

The Mayor Ann H. Marshall shall be the City of Avalon's voting delegate and Councilmember Michael Ponce as the alternate voting delegate.

PASSED, APPROVED AND ADOPTED on the 17th day of January, 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Ann H. Marshall, Mayor
ATTEST:

Gabrielle Morones, Deputy City Clerk / Sr. Admin. Assistant

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 5
ORIGINATING DEP: Planning Department CITY MANAGER: OMM
PREPARED BY: Susanna Gutierrez, Assistant Planner
SUBJECT: Adopt an Ordinance of the City of Avalon Amending Article 6 of Chapter 5 of Title 9, of the Avalon Municipal Code, to Reflect ew Statewide Legislation (SB 897) Pertaining to Accesson RECOMMENDED ACTION(S): Adopt an ordinance updating the Accessory Dwelling Unit ("ADU") regulations to reflect new mandatory changes in CA State requirements.

REPORT SUMMARY: This ordinance was introduced, and all readings waived during the December 6, 2022 regular City Council Meeting.

The Planning Commission made a recommendation for City Council to approve this item at its November 16, 2022 meeting following a public hearing. A first reading of an ordinance Amending Article 6 of Chapter 5 of Title 9, of the Avalon Municipal Code, pertaining to Accessory Dwelling units. The Zoning Ordinance Amendment implements revisions to the Avalon Municipal Code ("AMC") Title 9: Planning and Zoning - Accessory Dwelling Units, to reflect new statewide legislation (SB 897) that goes into effect on January 1, 2023. This proposed ordinance is exempt from further environmental analysis under CEQA Section 15061(b)(3) as there is no possibility that the activity in question may have a significant effect on the environment or qualify as a project.

Specifically, new main changes are outlined in the California Department of Housing and Community Development Handbook, dated July 2022, which is attached to the Planning Commission staff report which is included herein. Those changes pertain to height limitations on certain ADUs, changes in setback requirements and changes in the review procedures for ADUS.

FISCAL IMPACTS: None.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Without a local code adoption ordinance the City would be subject to the state statues without any modification as allowed by the state.

ALTERNATIVE ACTION(S):

Provide modifications allowed by State Code, generally less restrictive than the model CA ADU ordinance, and return to the Planning Commission for reconsideration. 1 FOLLOW UP ACTION: Implement ordinance.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Ordinance
a. ADU Zoning Code Amendment
b. PC Staff Report 11.16.22
Attachment 1: Ordinance
ORDINANCE NO.M.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AVALON
AMENDING ARTICLE 6 OF CHAPTER 5 OF TITLE 9, OF THE

AVALON MUNICIPAL CODE, TO REFLECT NEW STATEWIDE
LEGISLATION (SB 897) THAT GOES INTO EFFECT ON JANUARY 1, 2023 PERTAINING TO ACCESSORY DWELLING UNITS AND

DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA
WHEREAS, in 2022, the California Legislature approved, and the Governor signed into law Senate Bill 897 ("SB 897") and Assembly Bill 2221 ("AB 2221"), both of which amended Gov. Code section 65852.2; and
WHEREAS, SB 9 and AB 2221 go into effect on January 1, 2023 and preempts any conflicting local ordinance; and
WHEREAS, the City of Avalon ("City") has engaged in ongoing internal discussions and analysis concerning necessary amendments to the Avalon Municipal Code (AMC") to comply with state legislature; and
WHEREAS, the proposed ordinance attached hereto as Exhibit "A" (the "Ordinance") amends the AMC to amend existing regulations regarding Accessory Dwelling Units; and WHEREAS, after a duly-noticed public hearing held on November 16, 2022, the Planning Commission voted to forward a recommendation to the City Council recommending that the Council adop he Ordinance; and
WHEREAS, the City Council has considered the Planning Commission's recommendation, the staff report and supporting documents, public testimony, and all appropriate information that has been submitted with the Ordinance: and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON DOES ORDAIN AS FOLLOWS:

Section 1. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings.

Section 2. The City Council finds that the Ordinance is exempt from the California Environmental İs no iny Act i that ari any to Seave a significant overse Et On the einonmen Section 3. The Avalon Municipal Code is hereby amended as set forth in Exhibit "A" hereto, incorporated herein by this reference.
3 The City Clerk of the City of Avalon shall certify the passage and adoption of this Ordinance and shall cause the same, or a summary thereof, to be published and/or posted in the manner required by law.

Section 5. This Ordinance shall take effect and be in full force 30 days after its adoption.

Section 6. If any provision of this Ordinance or its application to any person or circumstance is held o be invalid, such invalidity has no effect on the other provisions or applications of thi ordinance that can be given effect without the invalid provision or application and, to thi extent, the provisions of this ordinance are hereby declared to be severable.

INTRODUCED at a regular meeting of the City Council of the City of Avalon on the 6'' day of December, 2022, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Avalon on this day of 202_ _ by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

City of Avalon
Ann H. Marshall, Mayor
ATTEST:

Gabrielle Morones, Deputy City Clerk
APPROVED AS TO FORM:

Scott H. Campbell
Best Best & Krieger
4 Exhibit A: ADU Zoning Code Amendment
Article 6 Accessory Dwelling Units
§ 9-5.601 Accessory Units.
(a) Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and 65852.22.
(b) Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not (1) Deemed to be inconsistent with the city's general plan and zoning designation for the lot on which the ADU or JADU is located.
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.
(3) Considered in the application of any local ordinance, policy, or program to limit residential growth.
(4) Required to correct a nonconforming zoning condition, as defined in subsection (c)(7) below. This does not prevent the city from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12. (c) Definitions. As used in this section, terms are defined as follows:
(1) "Accessory dwelling unit" or "ADU" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
(A) An efficiency unit, as defined by section 17958.1 of the California Health and Safety Code; and
A manufactured home, as defined by section 18007 of the California Health and Safety Code.
(2) "Accessory structure" means a structure that is accessory and incidental to a dwelling located on the same lot.
(3) "Complete independent living facilities" means permanent provisions for living, sleeping. eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.
(4) "Efficiency kitchen" means a kitchen that includes all of the following:
(A) A cooking facility with appliances.
5 (B) A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.
(5) "Junior accessory dwelling unit" or "JADU" means a residential unit that satisfies all of the following:
(A) It is no more than 500 square feet in size.
(B) It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure. (C) It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure.
(D) If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main (E) It includes an efficiency kitchen, as defined in subsection (c)(4) above. (6) "Living area" means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (7) "Nonconforming zoning condition" means a physical improvement on a property that does not conform with current zoning standards.
(8) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.
(9) "Proposed dwelling" means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
(10) "Public transit" means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (11) "Tandem parking" means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. (d) Approvals. The following approvals apply to ADUs and JADUs under this section:
(1) Building-permit Only. If an ADU or JADU complies with each of the general requirements in subsection (e) below, it is allowed with only a building permit in the following scenarios:
(A) Converted on Single-family Lot: One ADU as described in this subsection (d)(1)(A) and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:
6 (i) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and
(ii) Has exterior access that is independent of that for the single-family dwelling; and
(iii) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.
(iv) The JADU complies with the requirements of Government Code Section 65852.22.
(B) Limited Detached on Single-family Lot: One detached, new-construction ADU JABI watta proposed or biting sine mily dovelin sin adition (A above), if the detached ADU satisfies each of the following limitations:
(i) The side- and rear-yard setbacks are at least three feet. (ii) The total floor area is 800 square feet or smaller. (iii) The peak height above grade does not exceed the applicable height limit in subsection (e)(2) below.
(C) Converted on Multifamily Lot: One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection (d)(1)(C), at least one converted ADU is allowed within an existing multifamily dwelling, up to a quantity equal to 25 percent of the existing multifamily dwelling units.
(D) Limited Detached on Multifamily Lot: No more than two detached ADUs on a lot that has an existing or proposed multifamily dwelling if each detached ADU satisfies both of the following limitations:
(i) The side- and rear-yard setbacks are at least three feet. If the existing (ii) The peak height above grade does not exceed the applicable height limit provided in subsection (e)(2) below.
(2) ADU Permit.
7 (A) Except as allowed under subsection (d)(1) above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in subsections (e) and (f) below.
(B)
(3) Process and Timing.
(A) An ADU permit is considered and approved ministerially, without discretionary review or a hearing.
(B) The city must approve or deny an application to create an ADU or JADU within 60 days from the date that the city receives a completed application. If the city has not approved or denied the completed application within 60 days, the application is deemed approved unless either
(i) The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or
(ii) When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwellin on the lot, the city may delay acting on the permit application for th ADU or JADU until the city acts on the permit application to create the new single-family or multifamily dwelling, but the application to creat the ADU or JADU will still be considered ministerially withou discretionary review or a hearing.
(C) If the city denies an application to create an ADU or JADU, the city must provide theive ar vicentems and desertion of hother applica lion mall the remedied by the applicant. Notice of the denial and corresponding comments suse i provided to thovelicant within the 60-day time period established by (D) A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time. (e) General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that are approved under subsections (d)(1) or (d)(2) above:
(1) Zoning.
(A) An ADU or JADU subject only to a building permit under subsection (d)(1) above may be created on a lot in a residential or mixed-use zone. (B) An ADU or JADU subject to an ADU permit under subsection (d)(2) above may be created on a lot that is zoned to allow single-family dwelling residential use o multifamily dwelling residential use.
8 (2) Height.
(A) Except as otherwise provided by subsections (e)(2)(B) and (e)(2)(C) below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height (B) A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. (C) A detached ADU created on a lot with an existing or proposed multitamily dwelling that has more than one story above grade may not exceed 18 feet in height.
(D) An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower: Notwithstanding the foregoing, ADUs subject to this subsection (e)(2)(D) may not exceed two stories. (E) For purposes of this subsection (e)(2), height is measured above existing legal grade to the peak of the structure.
(3) Fire Sprinklers.
(A) Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.
(B) The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
(4) Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days.

This prohibition applies regardless of when the ADU or JADU was created. (5) No Separate Conveyance. An ADU or JADU may be rented, but, except as otherwise provided in Government Code Section 65852.26, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot).
(6) Septic System. If the ADU or JADU will connect to an onsite wastewater-treatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years. (7) Owner Occupancy.
(A) An ADU that is permitted after January 1, 2020, but before January 1, 2025, is not subject to any owner-occupancy requirement.
9 (B) Unless applicable law requires otherwise, all ADUs that are permitted on or after January 1, 2025 are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property as the person's legal domicile and permanent residence.
(C) As required by state law, all JADUs are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must eside on the property, in either the primary dwelling or JADU, as the person':
egal domicile and permanent residence. However, the owner-occupancy requirement in this subsection (e)(7)(C) does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization. (8) Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder's office and a copy filed with the Director (or their designee) and filed with the Planning Department. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the city and must provide that:
(A) Except as otherwise provided in Government Code Section 65852.26, the ADU or JADU may not be sold separately from the primary dwelling. (B) The ADU or JADU is restricted to the approved size and to other attributes allowed by this section.
(C) The deed restriction runs with the land and may be enforced against future property owners.
(D) The deed restriction may be removed if the owner eliminates the ADU or JADU, . removal of the kitchen facilities. To remove the
ted restried by, an exer pa, eke a of then itchest cite Directer pretting evidence that the ADU or JADU has in fact been eliminated. The Director ma› then determine whether the evidence supports the claim that the ADU or JADL (E) The deed restriction is enforceable by the director or his or her designee for the benefit of the city. Failure of the property owner to comply with the deec restriction may result in legal action against the property owner, and the city is uthorized to obtain any remedy available to it at law or equity, including, but no imited to, obtaining an injunction enjoining the use of the ADU or JADU i violation of the recorded restrictions or abatement of the illegal unit. (9) income Reporting. In order to facilitate the city's obligation to identify adequate site or housing in accordance with Government Code sections 65583.1 and 65852.2, th following requirements must be satisfied:
10 (A) With the building-permit application, the applicant must provide the city with an estimate of the projected annualized rent that will be charged for the ADU or JADU.
(B) Within 90 days after each yearly anniversary of the issuance of the building notice of violation and allow the owner another 30 days to submit the report. If the owner fails to submit the report within the 30-day period, the city may enforce this provision in accordance with applicable law. (10) Building & Safety.
(A) Must comply with building code. Subject to subsection (e)(10)(B) below, all ADUs and JADUs must comply with all local building code requirements. (B)
for residential use in accordance with this section.
(f) Specific ADU Requirements. The following requirements apply only to ADUs that require an ADU permit under subsection (d)(2) above.
(1) Maximum Size.
(A) The maximum size of a detached or attached ADU subject to this subsection (f) is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms.
(B) An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.

Application of other development standards in this subsection (f), such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection (f)(1)(B) above or of an FAR, front setback, lot coverage limit, or open-space requirement may require the ADU to be less than 800 square feet.
(2) Floor Area Ratio (FAR). No ADU subject to this subsection (f) may cause the total FAR of the lot to exceed 45 percent, subject to subsection (f)(1)(C) above. (3) Setbacks.
11 (A) An ADU that is subject to this subsection (f) must conform to a 3-foot front-yard setback, subject to subsection (f)(1)(C) above.
(B) An ADU that is subject to this subsection (f) must conform to 3-foot side- and rear-yard setbacks.
(C) No setback is required for an ADU that is subject to this subsection (f) if the ADU is constructed in the same location and to the same dimensions as an existing structure.
(4) the or ee pore a sit to his subein a cause the total lot coverage of (5) Minimum Open Space. No ADU subject to this subsection (f) may cause the total percentage of open space of the lot to fall below 50 percent, subject to subsectio (f1 C) above
(6) Passageway. No passageway, as defined by subsection (c)(8) above, is required for an ADU.
(7) Parking.
(A) Generally. One off-street parking space is required for each ADU. The parking pace may be provided in setback areas or as tandem parking, as defined t ubsection (c)(11) above
(B) Exceptions. No parking under subsection (f)(7)(A) is required in the following situations:
(i) The ADU is located within one-half mile walking distance of public transit, as defined in subsection (c)(10) above.
(ii) The ADU is located within an architecturally and historically significant historic district.
(iii) The ADU is part of the proposed or existing primary residence or an accessory structure under subsection (d)(1)(A) above.
(iv) When on-street parking permits are required but not offered to the occupant of the ADU.
(V) When there is an established car share vehicle stop located within one block of the ADU.
(vi) When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections (f)(7)(B)(i) through (v) above.
12 (C) No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced. (8) Architectural Requirements.
(A) The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling.

The roof stope must match that of the dominant roof stope of the primary dwelling. The dominant roof slope is the stope shared by the largest portion of the roof.
(C) The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
(D) The ADU must have an independent exterior entrance, apart from that of the primary dwelling.
(E) The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet. (F) Windows and doors of the ADU may not have a direct line of sight to an djoining residential property. Fencing, landscaping, or privacy glass may b ised to provide screening and prevent a direct line of sigh (G) All windows and doors in an ADU are less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.
(9) Landscape Requirements. Evergreen landscape screening must be planted and maintained between the ADU and adjacent parcels as follows:
(A) At least one 15-gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one 24" box size plant shall be provided for every ten linear feet of exterior wall.
(B) Plant specimens must be at least six feet tall when installed. As an alternative, a solid fence of at least 6 feet in height may be installed. (C) All landscaping must be drought-tolerant.
(D) -All landscaping must be from the city's approved plant list. (10) Historieal Protections. An ADU that is on or within 600 feet of real property that is fisted in the California Register of Historic Resources must be located so as to not be visible from any public right of way.
13 (g) Fees. The following requirements apply to all ADUs that are approved under subsections (d)(1) or (d)(2) above.
(1) Impact Fees.

No impact fee is required for an ADU that is less than 750 square feet in size. For purposes of this subsection (g)(1), "impact fee" means a "fee" under the Mitigation Fee Act (Gov. Code § 66000(b)) and a fee under the Quimby Act (Gov. Code § 66477). "Impact fee" here does not include any connection fee or capacity charge for water or sewer service.
(B) Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primarilal deeming, im she lorical of tount charged for a ne or area (2) Utility Fees.
(A) If an ADU is constructed with a new single-family home, a separate utility connection directly between the ADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required. (B) Except as described in subsection (g) (2)(A), converted ADUs on a single-family lot that are created under subsection (d)(1)(A) above are not required to have a new or separate utility connection directly between the ADU and the utility. Nor is a connection fee or capacity charge required.
(C) Except as described in subsection (g)(2)(A), all ADUs that are not covered by subsection (g)(2)(B) require a new, separate utility connection directly between the ADU and the utility.
(i) The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU based on either the floor area or the number of drainage-fixture units (DU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system. (ii) The portion of the fee or charge that is charged by the city may not exceed the reasonable cost of providing this service.
(h) Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
(1) Generally. The city will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that doe not present a threat to the public health and safety and that is not affected by th construction of the ADU or JADU.
(2) Unpermitted ADUs constructed before 2018.
14 (A) Permit to Legalize. As required by state law, the city may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January, 2018, if denial is based on either of the following grounds:
(i) The ADU violates applicable building standards, or
(ii) The ADU does not comply with the state ADU law (Government Code section 65852.2) or this ADU ordinance (AMC 9-5.6).
(B) Exceptions:
(i) Notwithstanding subsection (h)(2)(A) above, the city may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if the city makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the structure.
(ii) Subsection (h)(2)(A) above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code section 17920.3.
(i) Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that does not conform to the objective standards set forth in subsections (a) through (h) of this section may be allowed by the city with a conditional use permit, in accordance with the other provisions of this title.
15 Attachment 2: PC Staff Report 11.16.22

AVALON PLANNING COMMISSION
STAFF REPORT - PC# 2826
WEDNESDAY November 16, 2022
Application File: Zoning Ordinance Amendment
Item No. - Public Hearing Submitted by: Susanna Gutierrez, Assistant Planner A public hearing to consider Zoning Ordinance Amendment ZOA revising the Avalon Municipal Code 'AMC") Title 9: Planning and Zoning - Accessory Dwelling Units, to retlect new statewide legıslatı AB 2221 & SB 897) that goes into effect on January 1, 2023. The proposed ordinance is exempt fro further environmental analysis under CEQA Section 15061(b)(3) as there is no possibility that the activity in question may have a significant effect on the environment or qualify as a project Owner/Applicant: Planning Dept.

Files: ZOA - ADU Update
PC #: 2826
Zone: All Residential Zones

CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT

ACCESSORY DWELLING UNIT

HANDBOOK
UPDATED JULY 2022
16 BACKGROUND
Summary
AB 2221 and SB 897 are the latest legislative moves in this direction. Both bills will take effect on Jan. 1, 2023. When they do, any local ordinance will be null and void if it does not conform to AB 2221's and SB 897's changes to state ADU law. To avoid this result, local agencies should update their ADU ordinances before Jan. 1, 2023.

AB 2221 and SB 897, both of which amended Gov. Code section 65852.2, include numerous changes to the state ADU laws. There are two dominant themes in the changes. First, cities must let ADUs go taller and closer to the property lines. Second, the Legislature codified a number of interpretations of the law that agencies developed as they've interpreted and applied the ADU law in different situations over the last tew years.

Height Limitations - local agencies must allow ADUs taller than 16 feet in the following circumstances:
• If it is located within a half-mile of a major transit stop or high quality transit corridor, a detached ADU that is on a lot with a single-family or multifamily dwelling may be up to 18 feet in height by right, and the ADU be up to two feet taller (for a maximum of 20 feet) if necessary to match the roof pitch of the ADU to that of the main house. Before this most recent legislation, local agencies could cap the height of a detached ADU at 16 feet.
• If a detached ADU is on a lot with an existing or proposed multistory multifamily dwelling, the ADU may be up to 18 feet in height (again, by right), regardless of how close it is to transit. • An attached ADU may now be up to 25 feet high or as high as a primary dwelling may be under the underlying zone, whichever is lower. But a city may still limit the ADU to two stories.

Front Setbacks
Cities have authority to impose front-yard setbacks on ADUs that are subject to an ADU permit, and that remains generally true, but now a front setback must yield to the extent necessary to enable the construction of an 800 square foot ADU with four-foot side- and rear-yard setbacks. The law has included a similar "must yield" provision for FAR, lot coverage and open-space requirements; the Legislature has added front setbacks to that list.

Adjustments to Application Review Procedures; Additional Restrictions on Denials • If a city denies an ADU application, it must now provide the applicant with a "full set of comments" listing the specific items that are "defective or deficient." These comments must also describe "how the application can be remedied" by the applicant. Most cities have been doing this already in practice. • A demolition permit for a detached garage that is to be replaced with an ADU must now be reviewed with the ADU application and issued at the same time. Many cities have already been doing this in practice, too.

Local agencies cannot deny an application to create an ADU solely because corrections are needed to address nonconforming zoning conditions, building code violations, or unpermitted structures elsewhere on the lot that do not present a threat to public health and safety and are not affected by the 17 construction of the ADU. Not many cities have been attempting to do this since the ADU law already required cities to disregard nonconforming zoning conditions and building code violations to a great Expansion of Where JADUs Can be Built; New Configuration Requirements • Under existing state law, a junior accessory dwelling unit (JADU) must be "within the walls" of a proposed or existing single-family dwelling. In light of HCD commentary, most cities have understood this to include nonlivable space within the primary dwelling structure, such as attached garages. Now the Legislature has made that express. The new amendments specify that "enclosed uses within the residence, such as attached garages, are considered part of the proposed or existing single-family residence." This is more a change in the text of the law (that needs to be reflected in the local ordinance) than it is a substantive change in what the law requires. Most cities have already been doing this.

In instances where the JADU shares a bathroom with the primary dwelling, local agencies must now require the JADU to have an interior entry to the primary dwelling's "main living area," independent of the exterior entrances of the JADU and primary dwelling. This too is something that has widely been done in practice but is now an express requirement in the law.

Meaning of "Objective"
Lastly, most cities have understood what the law means by objective standards (based on other changes to housing law in recent years), but the Legislature has now inserted an express definition into the ADU law:

An "objective" standard as a standard that involves "no personal or subjective judgment by a public official" and that is "uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal." Next Steps
Because state law requires complete, across-the-board consistency between a local ordinance and the state ADU law, nearly every — if not every — city and county in the state with an ADU ordinance will once again need to amend its ordinance to comply with the changes above. Failure to do so by Jan. 1, 2023, will render any nonconforming local ordinance null and void. *Note from Staff
"Under previous amendments to State law (2019), the City is already mandated to ministerially approve Accessory Dwelling Units (ADUs) and Junior ADUs. In other words, if an application for an ADU is submitted to the City and is found to be in compliance with State low and City zoning regulations (to the 18 GENERAL PLAN, LAND USE, AND ZONING COMPLIANCE

ENVIRONMENTAL DETERMINATION
CEQA:

Under California Public Resources Code section 21080.17, the California Environmental Quality Act * sec 698201 or the otheadopion of ordinarily A rementin there in f section 65852.2 of the Government Code.

JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEOA in that the proposed ordinance implements the State's ADU law.

RECOMMENDATIONS
Staff recommends the Planning Commission adopt the attached Resolution, which will:

1. Recommend to City Council adoption of an Ordinance repealing and replacing Article 6 ("Accessory Dwelling Units") of Chapter 5 of the Avalon Zoning Code in compliance with new State Legislature AB 2221 and SB 897.
extent they don't conflict with State law), the City must issue Planning approval and Building Permits upon approval of building plans for the proposed ADU.
19 Attachments
• Reso 22-46
* Exhibit A: ZOA (ADU Update)
Attachment 1: Resolution No. 22-46

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF AVALON RECOMMENDING THAT THE CITY

COUNCIL ADOPT AN ORDINANCE REPEALING AND
REPLACING ARTICLE 6 ("ACCESSORY DWELLING UNITS")
OF CHAPTER 5 OF TITLE 9 OF THE AVALON MUNICIPAL

CODE FOR COMPLIANCE WITH STATE LEGISLATION AB
2221 AND SB 897
WHEREAS, the proposed zoning ordinance amendment (Exhibit A - attached) amends the AMC to repeal and replace Article 6 ("Accessory Dwelling Units") of Chapter 5 of Title 9 of the Avalon Municipal Code in compliance with state legislation AB 2221 and SB 897; and WHEREAS, the City of Avalon ("City") has engaged in ongoing internal discussions and analysis concerning amendments to its Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit ("'JADU") ordinance in line with recent changes in State guidance and for greater clarity; and WHEREAS, on November 16"', 2022, the Planning Commission held a duly-noticed public hearing, at which all those in attendance were given the opportunity to speak; and WHEREAS, the Planning Commission has considered the staff report, supporting documents, public testimony, and all pertinent information submitted.

NOW THEREFORE, THE PLANNING COMMISSION OF THE CITY OF AVALON DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Planning Commission hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings.

Section 2. Under California Public Resources Code section 21080.17, the California Environmental Quality Act ("CEQA") does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California's ADU law and which also regulates JADUs, as defined by section 65852.22.

Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State's ADU law.

Section 3 The Planning Commission of the City of Avalon hereby finds that this proposed zone text amendment (ZOA XX) is consistent with the Goals and Policies of the General Plan, specifically Goal V.C Provision of Adequate Housing Sites. Additionally, the proposed zone text amendment is consistent with Goal V.D Removal of Governmental Constraints.

Further it is consistent with Goal II.A Community Design and II.B Land Use Goals, Policies and Implementation Measures.
20 Section 3. Based on the foregoing recitals and findings, the Planning Commission hereby recommends that the City Council approve and adopt the proposed code revisions as denoted in Exhibit A (attached).

BE IT FURTHER RESOLVED that a copy of this Resolution be delivered to the City of Aval ity Clerk for transmittal to the City of Avalon City Counci PASSED, APPROVED AND ADOPTED this 16 day of November, 2022.

Chairman Bart Glass
ATTEST:

Dave M. Maistros, City Manager
CERTIFICATE:
1, Donna Terpinitz-Romo, hereby certify that the foregoing Resolution 22-46 was adopted by the By the folowing wite, to the Gily of Avalon at a regular meting held on the 1th day of November, 2022, AYES:

NOES:

ABSENT:

ABSTAIN:

Donna Terpinitz-Romo Administrative Assistant
21 CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 6
ORIGINATING DEP: Finance CITY MANAGER: AMM
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Dune 30, 20t Impact Fees Annual Report for the Fiscal Year Ended RECOMMENDED ACTION(S): Receive and file the Fiscal Year 2021-22 Development Impact Fees Annual Report.

REPORT SUMMARY: On February 18, 2020, City Council adopted the findings of the development impact fee nexus study and established certain development impact fees and capacity charges. Development impact fees (DIFs) are fees charged by a local government agency that developers and applicants pay for either all or a portion of the cost of providing public infrastructure and services to the new development. DIFs can also help streamline the development approval process as the typical impacts will have been identified and quantified in a per unit basis, in advance of any development proposal. Capacity charges are City imposed charges on new development for existing and/or future wastewater capacity needed for new development.

Reporting requirements under California Government Code 66006 specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year. The fiscal year ended June 30, 2022 was the second year with fees paid subject to reporting requirements. The report must describe the fee, the amount of the fees collected, interest earned, and identification of any expenditures from those funds. The code also specifies that reports must be reviewed by the City Council at a regularly scheduled meeting not less than 15 days following release to the public. The Fiscal Year (FY) 2021-22 Development Impact Fee Annual Report was released for public review on December 8, 2022 (Attachment 1).

The FY 2021-22 Development Impact Fee Annual Report is attached for City Council's review and approval. A summary of the fees collected and expenditures incurred in FY 2021-22 are included in the report.

GOAL ALIGNMENT: Compliance with reporting requirements
FISCAL IMPACTS: There is no fiscal impact by the recommended action as this reports development impact fee activity for the fiscal year ended June 30, 2022.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: FY 2021-22 Development Impact Fees Annual Report City of Avalon

ANNUAL DEVELOPMENT IMPACT FEE REPORT
| FISCALYEAR ENDED JUNE 30, 2022
Legal Requirements for Development Impact Fee Reporting California Government Code Section 66006 (b)
California Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 DIFs on new development. Annually, for each separate fund established for the collection and expenditure of DIFs, the local agency shall, within 180 days of the close of the fiscal year, make available to the public the information shown below for the most recent fiscal year.
a) A brief description of the type of fee in the account or fund. b) The amount of the fee.
c) The beginning and ending balance of the account or fund. d) The amount of the fees collected and interest earned. e) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with tees.
1) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
g) A description of each inter-fund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an inter-fund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. h) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001.

California Government Code Section 66001 (d)
For all funds established for the collection and expenditure of DIFs, California Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:
a) Identify the purpose to which the fee is to be put.

Demonstrate a reasonable relationship between the fee and purpose for which it is charged. c) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a). 1 d) Designate the approximate dates on which the funding referred to in subparagraph (c) is expected to be deposited into the appropriate account or fund.

California Government Code Section 66002
The State of California Government Code Section 66002 states that:
a) Any local agency, which levies a fee subject to Section 66001, may adopt a capital improvement plan, which shall indicate the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the fees. b) The capital improvement plan shall be adopted by, and shall be annually updated by, a resolution of the governing body of the local agency adopted at a noticed public hearing.

Notice of the hearing shall be given pursuant to Section 65090. In addition, mailed notice shall be given to any city or county, which may be significantly affected by the capital improvement plan. This notice shall be given no later than the date the local agency notices the public hearing pursuant to Section 65090. The information in the notice shall be not less than the information contained in the notice of public hearing and shall be given by first-class mail or personal delivery.
c) "Facility" or "improvement," as used in this section, means any of the following:
1) Public buildings, including schools and related facilities; provided that school facilities shall not be included if Senate Bill 97 of the 1987-88 Regular Session is enacted and becomes effective on or before January 1, 1988. 2) Facilities for the storage, treatment, and distribution of nonagricultural water. 3) Facilities for the collection, treatment, reclamation, and disposal of sewage. 4) Facilities for the collection and disposal of storm waters and for flood control purposes.
5) Facilities for the generation of electricity and the distribution of gas and electricity.

Transportation and transit facilities, including but not limited to streets and supporting improvements, roads, overpasses, bridges, harbors, ports, airports, and related facilities.
7) Parks and recreation facilities.
8) Any other capital project identified in the capital facilities plan adopted pursuant to Section 66002.
2 Fire Protection (Fund 301)
Description of Development Impact Fees (DIF)
The fire protection impact fee revenues may be used to purchase land for expansions to the fire station and/or to construct new facilities, upgrade existing facilities, purchase vehicles and personal protection equipment and other equipment with a minimum five-year life span, enhance the utility of existing systems, and/or perform refurbishment within the parameters allowed by Government Code Section 66000.

Fee Amount
Land Use Type Fire Protection Fee
sidential (per square foo $3.56
onresidential (per-square foot or as note
Lodging (per room) $2,588.04
Retail/Commercial $1.28
Office/Professional Services $1.37
Industrial $0.68
Medical Clinics S1.02
Leisure/Hospitality Services $0.85
Public/Institutional $1.02
Transportation/Warehouse/Utilities $0.51
Fee Report
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2022
Revenues FY 21/22
Fees $2,719.84
Investment Earnings 32.86
Other 0.00
Total Revenues $2,752.70
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) 0.00
Total Expenditures $0.00
Rev Over (Under) Exp $2,752.70
Beginning Fund Balance 10,725.10
Ending Fund Balance $13,477.80
3 California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees. No improvements were funded with Fire Protection DIF during the fiscal year.

Capital Project DIF Project % Funded by
Expenditures Expenditures DIF
No active projects funded by DIF N/A N/A NIA
Section 66001 requires that, for the fifth fiscal year following the first deposit of any impact fee revenue into an account or fund as required by Section 66006, and every five years thereafter, the City must make all of the following findings for any fee revenues that remain unexpended, whether committed or uncommitted:

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship • between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited in to the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 10,690.68 $2,719.84
Investment Earnings 34.42 32.86
Other 0.00 0.00
Total Revenues $10,725.10 $2,752.70
Expenditures
Expenditures 0.00 0.00
Other 0.00 0.00
Transfers in (out) 0.00 0.00
Total Expenditures $0.00 $0.00
ev Over (Under) E 10,725.10 $2,752.70
ginning Fund Balan 0.00 10,725.10
Ending Fund Balance $10,725.10 $13,477.80
Fire Protection Fund 301 reports no funds being held past the fifth fiscal year following the first deposit. Sufficient funds from the Fire Protection DIF have not been collected to complete the financing on an incomplete public improvement. No inter-fund transfers or loans were made during the reporting period. No refunds were issued due to protests during this reporting period. 4 Circulation (Fund 302)
Description of Development Impact Fees (DIF)
The circulation fee is intended to contribute to the funds needed to improve mobility, access and safe travel to and from homes, businesses and activities for all users of the circulation system, including bicyclists and pedestrians as well as motor vehicles. The circulation and mobility improvements will be designed with the goal of also providing benefits related to parking by reducing the overall demand for motor vehicle parking spaces.

Fee Amount
Land Use Type Circulation Fee
Residential (per square foot) $1.32
Nonresidential (per square foot or as noted)
Lodging (per room) $923.13
Retail/Commercial $1.69
Office/ Professional Services $0.52
Industrial $0.35
Medical Clinics $0.90
Leisure/Hospitality Services $0.66
Public/Institutional $0.21
Transportation/Warehouse/Utilities $0.69
Fee Report
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2022
Revenues EX 21/22
Fees $1,008.48
Investment Earnings 21.89
Other 0.00
Total Revenues $1,030.37
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) 0.00
Total Expenditures $0.00
Rev Over (Under) Exp $1,030.37
Beginning Fund Balance 3,976.72
Ending Fund Balance $5,007.09
5 California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees. No improvements were funded with Circulation DIF during the fiscal year.

Capital Project DIF Project % Funded by
Expenditures Expenditures DIF
No active projects funded by DIF N/A N/A N/A
Section 66001 requires that, for the fifth fiscal year following the first deposit of any impact fee revenue into an account or fund as required by Section 66006, and every five years thereafter, the City must make all of the following findings for any fee revenues that remain unexpended, whether committed or uncommitted:

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited in to the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 3,963.96 $1,008.48
Investment Earnings 12.76 21.89
Other 0.00 0.00
Total Revenues $3,976.72 $1,030.37
Expenditures
Expenditures 0.00 0.00
Other 0.00 0.00
Transfers in (out) 0.00 0.00
Total Expenditures $0.00 $0.00
Rev Over (Under) Exp 3,976.72 $1,030.37
Beginning Fund Balance 0.00 3,976.72
Ending Fund Balance $3,976.72 | $5,007.09
Circulation Fund 302 reports no funds being held past the fifth fiscal year following the first deposit. Sufficient funds from the Circulation DIF have not been collected to complete the financing on an incomplete public improvement. No inter-fund transfers or loans were made during the reporting period. No refunds were issued due to protests during this reporting period.

Transportation (Fund 303)
Description of Development Impact Fees (DIF)
The transportation improvements provide for expanded wharf, pier, docking, and moorage facilities to accommodate the increase in passengers on cruise ships and cross channel ferries that will attend new development. Transportation improvements may also include freight handling facilities and airport improvements. The public use facilities fee revenues may be used to purchase land, to construct, upgrade, and expand facilities, and/or to perform refurbishment within the parameters allowed by Government Code Section 66000.

Fee Amount
Land Use Type Transportation Fee
Residential (per square foot) $2.63
Noting pid per square or or as nored) $1,886.59
Retail/Commercial $0.94
Office/Professional Services $1.01
Industrial $0.50
Medical Clinics $0.75
Leisure/Hospitality Services $0.63
Public/Institutional $0.75
Transportation/Warehouse/Utilities $0.38
Fee Report
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2022
Revenues FY 21/22
Fees $2,009.32
Investment Earnings 43.62
Other 0.00
Total Revenues $2,052.94
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) 0.00
Total Expenditures $0.00
Rev Over (Under) Exp $2,052.94
Beginning Fund Balance 7.923.31
Ending Fund Balance $9,976.25
7 California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees. No improvements were funded with Transportation DIF during the fiscal year.

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited in to the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 7,898.89 $2,009.32
Investment Earnings 25.43 43.62
Other 0.00 0.00
Total Revenues $7,923.31 $2,052.94
Expenditures
Expenditures 0.00 0.00
Other 0.00 0.00
Transfers in (out) 0.00 0.00
Total Expenditures $0.00 $0.00
Rev Over (Under) Exp 7,923.31 $2,052.94
Beginning Fund Balance 0.00 7,923.31
Ending Fund Balance $7,923.31 | $9,976.25
Transportation Fund 303 reports no funds being held past the fifth fiscal year following the first deposit. Sufficient funds from the Transportation DIF have not been collected to complete the financing on an incomplete public improvement. No inter-fund transfers or loans were made during the reporting period. No refunds were issued due to protests during this reporting period. 8 Landfill (Fund 304)
Description of Development Impact Fees (DIF)
Landfill fund impact fee revenues may be used for the landfill closure-post closure and corrective action costs, constructing a new solid waste transfer station and recycling center, and funding the capital costs of enhanced recycling programs. The fair-share capital costs of alternatives to landfill disposal may also be funded by the fee revenues.

Fee Amount
Land Use Type _ Landfill Fee
Residential (per square foot) $2.88
Nonresidential (per squarefoot or as noted)
Lodging (per room)
Retail/Commercial
Office/Professional Services
Industrial
Medical Clinics
Leisure/Hospitality Services
Public/Institutional
Transportation/Warehouse/Utilities $0.41
Fee Report
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2022
Revenues FY 21/22
Fees $2,200.32
Investment Earnings 47.78
Other 0.00
Total Revenues $2,248.10
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) 0.00
Total Expenditures $0.00
Rev Over (Under) Exp $2,248.10
Beginning Fund Balance 8.676.49
Ending Fund Balance $10,924.59
California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees. No improvements were funded with Landfill DIF during the fiscal year.

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited in to the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 8,648.64 $2,200.32
Investment Earnings 27.85 47.78
Other 0.00 0.00
Total Revenues $8,676.49 $2,248.10
Expenditures
Expenditures 0.00 0.00
Other 0.00 0.00
Transfers in (out) 0.00 0.00
Total Expenditures $0.00 $0.00
Rev Over (Under) Exp $8,676.49 $2,248.10
Beginning Fund Balance 0.00 8,676.49
Ending Fund Balance $8,676.49 $10,924.59
Landfill Fund 304 reports no funds being held past the fifth fiscal year following the first deposit.

Sufficient funds from the Landfill DIF have not been collected to complete the financing on an incomplete public improvement. No inter-fund transfers or loans were made during the reporting period. No refunds were issued due to protests during this reporting period. 10 Wastewater (Fund 305)
Description of Capacity Charges
Wastewater capacity charge revenues may be used for any of the improvements listed in Table 8.3 of the Development Impact Mitigation Fees Nexus Study and Capacity Charges for Wastewater and Reclaimed Water Report adopted by City Council on February 18, 2020 or for capacity expansion, or sanitary sewer service extension projects. Portions of the revenues may also be used for waste water treatment plant (WWTP) capital replacements or system rehabilitation, and/or be placed in the sewer system capital reserve account to be used to offset future rate increases.

Charge Amount
Land Use Type | Wastewater Charge
Residential (per square foot) $5.41
Nonresidential (per squarefoot or as noted)
Lodging (per room) $2,921.39
Retail/Commercial $2.43
Office/Professional Services $4.87
Industrial $4.87
Medical Clinics $7.25
Leisure/Hospitality Services $2.92
Public/Institutional $4.06
Transportation/ Warehouse/Utilities $0.60
Charge Report
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2022
Revenues FY 21/22
Fees $4,133.24
Investment Earnings 39.96
Other 0.00
Total Revenues $4,173.201
Expenditures
Expenditures 0.00
Other
Transfers in (out)
Total Expenditures $0.00
Rev Over (Under) Exp $4,173.20
Beginning Fund Balance 6,111.27
Ending Fund Balance $10,284.47
11 California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees. No improvements were funded with Wastewater Capacity Charges during the fiscal year.

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited in to the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 6,091.66 $4,133.24
Investment Earnings 19.61 39.96
Other 0.00 0.00
Total Revenues $6,111.27 $4,173.20
Expenditures
Expenditures 0.00 | 0.00
Other 0.00 0.00
Transfers in (out) 0.00 0.00
Total Expenditures $0.00 $0.00
Rev Over (Under) Exp $6,111.27 $4,173.20
Beginning Fund Balance 0.00 6,111.27
Ending Fund Balance $6,111.27 $10,284,47
Wastewater Fund 305 reports no funds being held past the fifth fiscal year following the first deposit. Sufficient funds from the Wastewater Capacity Charges have not been collected to complete the financing on an incomplete public improvement. No inter-fund transfers or loans were made during the reporting period. No refunds were issued due to protests during this reporting period.
12 CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM:_
ORIGINATING DEP: Administration CITY MANAGER: DAM
PREPARED BY: Devin Hart, Management Analyst
SUBJECT: Island Company Agreements
RECOMMENDED ACTION(S): Authorize the City Manager negotiate and execute license and a sublease agreements with the Catalina Island Company (Island Co.) for properties necessary for public use.

REPORT SUMMARY: The Catalina Island Company (Island Co.) grants the City of Avalon use of specific properties for activities associated with infrastructure storage and maintenance for both exclusive City staff use and general public use.

These properties include:
- Pump-a-Head Storage Area at Casino Point. This 48 square foot area is used for storage and operation of the pump-a-head system equipment that is used to service Avalon Harbor Boaters.
- Alley between 113 and 117 Catalina Avenue. This 400 square foot area houses five trash compactors and three trash bins utilized by adjacent businesses. - 404 Bodega Road. This 3,721 square foot area houses the City of Avalon Harbor Garage.

Though the City and Island Co. have not had an executed agreements for use of these spaces in the last ten years, both sides would like to formalize the use of these properties by executing use agreements at this time.

The proposed lease for all three properties would be effective as of January 1, 2023 and expire on various dates with no renewal terms.

The rate for use of these properties has increase slightly from 2022:

Location Rate paid in 2022 | 2023 Rate Rate Increase
Pump-a-Head Area at Casino Point $175.00 $200.00 14%
Alley between 113 and 117 Catalina Ave. _ $1,019.00 $1,121.00 10% 404 Bodega Road $5,640 $5,837.00 4%
All three agreements are subject to an annual CPI increase.

City Staff recommends authorizing the City Manager to negotiate, finalize and execute the agreements with the Island Co.

GOAL ALIGNMENT: Infrastructure.

FISCAL IMPACTS: The lease rates are included in the FY 2022-2023 Budget.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will not have formal agreements in place for use of Island Company properties.

FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:
- Proposed Island Company Agreements.

DocuSign Envelope ID: 9653FB36-5A28-4C73-BDF6-ABC98944709E

LICENSE AGREEMENT

FOR USE OF CATALINA ISLAND COMPANY PROPERTY
CATALINA ISLAND COMPANY, a California corporation, hereinafter referred to as Licensor, hereby grants to City of Avalon, a municipal corporation, hereinafter referred to as Licensee, permission to use the following property situated on Santa Catalina Island in the City of Avalon, approximately 48 square feet as depicted in the drawing attached as Exhibit A hereto (the "Premises"), described as a portion of Casino Point, for the purposes and on the terms and conditions set forth herein. No modification to Article 3, License or other provision of this agreement will be made if the actual size of the Premises is more or less than 48 square feet.

1. Permitted Use: Placement and operation of pump-a-head system equipment to service vessels in Avalon Harbor and nearby coves and anchorages.

2. Term: The license and rights granted hereunder shall commence on January 1, 2023 and shall end on December 31, 2025 (terminable under Section 11) and are non-exclusive.

3. License Fee, Taxes, Utilities: The license fee is $200.00 per month, payable in advance on the first day of each month. Licensee is not responsible for City fees so long as no fees are passed through to Licensee or property taxes attributable to the Premises. Licensee is responsible for all other utilities servicing the property. (a) Commencing on the first January 1 after the Commencement Date and on each January 1 thereafter throughout the Term (each such date is hereinafter referred to as an "Adjustment Date"), the Base Rent rate in effect immediately prior to the Adjustment Date will be adjusted upward (never downward) by an amount equal to the greater of: (i) three and one-half percent (3.5%) or (ii) the percentage increase in the "Index" (defined below) for the twelve (12) month period ended on the last day of the month preceding the Adjustment Date. Sublessor will give Sublessee written notice of the increase. Until Sublessor gives Sublessee written notice of the increase, Sublessee shall pay Base Rent at 103.5% of the Base Rent rate in effect immediately prior to the Adjustment Date. If the percentage increase in the Index exceeds 3.5%, Sublessee shall pay the additional amount owing within twenty (20) days after receipt of Sublessor's notice of increase.

The "Index" is the Consumer Price Index (CPI-U) for the Los Angeles - Long Beach --Anaheim area published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued, such similar index selected by Landlord will be the Index. If the base year of the Index is changed, the published conversion factor will be used to make the calculation. Licensor shall give Licensee written notice of the increase which shall be retroactive to the Adjustment Date.

No delay by Licensor in giving such notice shall constitute a waiver of Licensor's right to collect the full increase. Within twenty (20) days after such notice is given, Licensee shall pay any accrued unpaid amount of the increase retroactively to the Adjustment Date.

4. Maintenance: Licensee shall maintain the Premises in a clean, safe and orderly condition. Licensor shall have absolutely no maintenance or repair responsibility under this Agreement.
13193/000000/01738367-2
1 DocuSign Envelope ID: 9653FB36-5A28-4C73-BDF6-ABC98944709E

5. Laws: Licensee shall at all times during which this Agreement remains in force and effect, at its sole expense, abide by all statutes, ordinances and regulations of public authorities • ("'Applicable Laws") with respect to Licensee's business operations and/or the Premises.

6. Condition: Licensee is familiar with the Premises and their condition and accepts them in their present condition "as is and where is." Licensee shall, at its sole expense, prepare the Premises for its use, and clean up upon vacating the Premises, leaving them in a condition satisfactory to Licensor.

Hazardous Substances.
(a) Without Licensor's prior written consent, Licensee shall not keep store, use or generate on the Premise or on property adjacent to the Premises any hazardous waste, material, substance or contaminant, as so defined or treated by any Applicable Law, including petroleum products (collectively "Hazardous Substances") nor shall Licensee install or use on the Premises or on land adjacent to the Premises any underground storage tank for any Hazardous Substance; provided, however, that without Licensor's prior consent, Licensee may use any ordinary and customary Hazardous Substance reasonably required for Licensee's use permitted by this Lease, so long as (i) the quantities are limited to Licensee's reasonable needs and do not pose a risk of material contamination from a spill or discharge, (ii) no underground storage tank is used, (iii) permits from governmental authorities are obtained if required by Applicable Laws and (iv) Licensee complies strictly with all Applicable Laws relating to its use or storage of Hazardous Substances. (b) Licensee indemnifies and agrees to hold Licensor, the Premises and Licensor's shareholders, directors, officers, employees and agents ("Affiliates"), entirely free and harmless from all claims and liabilities, and all fines, penalties and costs of investigation, containment and remediation, including without limitation consultants fees (collectively "environmental costs") arising from or related to any Hazardous Substance brought onto the Premises by, or generated on the Premises, by Licensee or any employee, guest or other invitee of Licensee, whether during the term of this Lease, as it may be renewed or extended, or during the term of any predecessor lease. In the event a claim is asserted against Licensor, the Premises or Licensor's Affiliates that is within the scope of the foregoing indemnity, Licensor and Licensor's affiliates may elect either to tender the claim to Licensee, or Licensor and Licensor's affiliates may elect to defend the claim through Licensor's counsel.
(c) Licensee agrees to give Licensor prompt notice of any claim which appears to be within the scope of the foregoing indemnity but no failure or delay on the part of Licensor to so notify Licensee shall absolve Licensee of its indemnity obligations unless substantial prejudice to Licensee results. Licensor and Licensee further agree to cooperate reasonably but without expense to Licensor, in dealing with any such claims. If the claim is tendered to Licensee, Licensee shall retain counsel and environmental consultants reasonably satisfactory to Licensor to represent Licensor and Licensor's affiliates, and Licensee shall not make any admissions of liability or settle any such claim without Licensor's prior written consent. If Licensor elects not to tender the claim, the actual cost of the attorneys and environmental consultants retained by Licensor shall be reimbursed to Licensor on a monthly or other periodic basis as Licensor elects. Licensor shall be free to settle the claim on such basis as Licensor deems appropriate, and Licensee shall indemnify 13193/000000/01738367-2
2 DocuSign Envelope ID: 9653FB36-5A28-4C73-BDF6-ABC98944709E Licensor from all liabilities and environmental costs incurred in connection with the claim or the settlement thereof.
(d) The indemnity set forth in this Section 7 shall survive the expiration or earlier termination of this Agreement.

8. Licensor's Non-Liability: Licensor shall not be liable for any loss, damage or injury of any kind of character to any person or property arising out of any breach of any term or condition of this Agreement by Licensee, or arising from any use of the said Premises and/or facilities, or any part thereof by Licensee, its employees, agents, representatives or invitees, including without limitation members of the public, or caused by any defect in the Premises or any improvements thereon or caused by or arising from any other cause whatsoever, unless the same be attributable solely to the active negligence or willful misconduct of Licensor, its agents or employees. Licensee indemnifies and agrees to defend (through counsel reasonably satisfactory to Licensor) and hold Licensor, its affiliated corporations and their respective directors, officers, employees and agents free and harmless from all claims, demands, legal actions, governmental proceedings, judgments, liabilities, losses, costs and expenses, including attorneys fees, arising from Licensee's use of the Premises, unless attributable solely to the active negligence or willful misconduct of Licensor, its agents or employees. The indemnity set forth in this Section 8 shall survive the expiration or earlier termination of this Agreement.

9. Liability Insurance: Licensee shall at its cost and expense, at all times during the term of this agreement, procure and maintain for the joint benefit of Licensor, the Santa Catalina Island Company and Licensee, Commercial General Liability Insurance under the terms of which (or by endorsement satisfactory to licensor) "Santa Catalina Island Company and its subsidiaries of any tier" are named as additional insureds, and shall be indemnified against liability for damage or injury to the property or person (including death of any person entering on or using the Premises, or any part thereof, or arising from the use and occupancy thereof by Licensee.

Such Commercial General Liability insurance shall have combined single limits of coverage of not less than $1,000,000 per occurrence and aggregate. Such insurance shall be endorsed as primary and noncontributing with any and all other insurance maintained by Licensee. Such insurance policy or policies shall specifically provide that not less than ten (10) days notice of cancellation or any material change in such policy or policies shall be given to Licensor. Licensee also shall provide and maintain worker's compensation insurance and employer's liability insurance with limits of $500,000 per accident and per employee, and shall provide a subrogation waiver in favor of "Santa Catalina Island Company and its subsidiaries of any tier" under such worker's compensation and employer's liability policies.

If motor vehicles are brought onto the Premises, Licensee shall also procure and maintain automobile liability insurance for owned, hired and non-owned vehicles with limits of not less than $1,000,000 per occurrence with "Santa Catalina Island Company and its subsidiaries of any tier" named as additional insureds in the policy or by endorsement satisfactory to Licensor.

Licensee shall furnish to Licensor the certificate of each insurance carrier and the required endorsements prior to the commencement of the term of this Agreement and thereafter at 13193/000000/01738367-2
3 DocuSign Envelope ID: 9653FB36-5A28-4C73-BDF6-ABC98944709E least twenty (20) days before expiration of each policy period. All insurance carriers shall be reasonably satisfactory to Licensor. Licensee may provide liability insurance through PARSAC, provided coverage meets the foregoing requirements in all material respects and has been approved in writing by Licensor.

The limits of Licensor's insurance policies shall not limit Licensee's indemnification obligations under this Agreement.

10. Default: Licensee shall be in default if it shall fail to perform any provision or obligation under this Agreement and such failure continues for more than three (3) days after receipt of written notice from Licensor describing such failure in reasonable detail.

Termination: This Agreement shall be terminable by either party, without cause, upon ninety (90) days' advance written notice, and shall be terminable in the event of default by either party upon three (3) days' written notice specifying the event of default.

12. Miscellaneous:
(a) This Agreement contains the entire agreement of the parties on the subject of an Agreement to use the Premises for the purposes herein provided. This Agreement can be amended only by a writing executed by both parties hereto.
(b) No failure or delay by Licensor in exercising any right or remedy in relation to this Agreement shall constitute a waiver thereof in that instance or in any subsequent instance. No waiver shall be effective again Licensor unless contained in writing signed by Licensor. The acceptance by Licensor of any performance by Licensee while the Licensee is in default under this Agreement shall not constitute a waiver by Licensor of such default.

No expiration or termination of the Agreement shall relive either party of any liability or obligation incurred or accrued as of the effective termination or expiration date. (d) Each of the parties hereto expressly waives any right to a trial by jury in any action or proceeding relating to their Agreement or to Licensee's use or occupancy of the premises and agree that any such action or proceeding shall be tried to a court sitting without a jury. (e) Iflegal action is brought to construe or enforce this License, or because of an alleged breach hereof, the prevailing party shall be entitled to recover its cost of suit including reasonable attorney's fees.
13193/000000/01738367-2
4 DocuSign Envelope ID: 9653FB36-5A28-4C73-BDF6-ABC98944709E This Agreement can be executed in counterparts each of which shall be deemed an original and which together shall constitute one in the same instrument. Delivery o counterparts can be made by email or fax and shall be deemed an origina Dated:_ CATALINA ISLAND COMPANY
By:_
Gina Long
Its: Sr. VP Administration
Dated:_ CITY OF AVALON
By:

David Maistros
Title: City Manager
Attest:
, City Clerk
13193/000000/01738367-2
5 DocuSign Envelope ID: 9653FB36-5A28-4C73-BDF6-ABC98944709E Pacific Ocean
CASINO BLDG.

PLANTER
Pacific Ocean

EXHIBIT 'A'
RFI Date:

Scale: 1'= 60-0" Casino Pump-Ahead
1 SITE MAP SÄNTA CATALINA ISŁAND COMPANY
Drawn: Area: 48 s.f.

Of 1 Sheets Job: Anion ostoit FP.

DocuSign Envelope ID: DF735BDB-FFA1-4FAF-8C87-F3089A3B79A7

LICENSE AGREEMENT

FOR USE OF CATALINA ISLAND COMPANY PROPERTY
CATALINA ISLAND COMPANY, a California corporation, hereinafter referred to as Licensor, hereby grants to City of Avalon, a municipal corporation, hereinafter referred to as Licensee, permission to use the following property situated on Santa Catalina Island in the City of Avalon, approximately 400 square feet as depicted in the drawing attached as Exhibit A hereto (the "Premises"), described as a portion of the alley area between 113 and 117 Catalina Avenue, for the purposes and on the terms and conditions set forth herein. No modification to Article 3, License or other provision of this agreement will be made if the actual size of the Premises is more or less than 400 square feet.

1. Permitted Use: Placement and maintenance of five (5) trash compactors and three (3) trash bins.

Term: The license and rights granted hereunder shall commence on January 1, 2023 and shall end on December 31, 2027 (terminable under Section 11) and are non-exclusive.

3. License Fee, Taxes, Utilities: The license fee is $1,121.00 per month, payable in advance on the first day of each month. Licensee is not responsible for City fees so long as no fees are passed through to Licensor or property taxes attributable to the Premises. Licensee is responsible for all other utilities servicing the property.
(a) Commencing on the first January 1 after the Commencement Date and on each January 1 thereafter throughout the Term (each such date is hereinafter referred to as an "Adjustment Date"), the Base Rent rate in effect immediately prior to the Adjustment Date will be adjusted upward (never downward) by an amount equal to the greater of: (i) three and one-half percent (3.5%) or (ii) the percentage increase in the "Index" (defined below) for the twelve (12) month period ended on the last day of the month preceding the Adjustment Date. Sublessor will give Sublessee written notice of the increase. Until Sublessor gives Sublessee written notice of the increase, Sublessee shall pay Base Rent at 103.5% of the Base Rent rate in effect immediately prior to the Adjustment Date. If the percentage increase in the Index éxceeds 3.5%, Sublessee shall pay the additional amount owing within twenty (20) days after receipt of Sublessor's notice of increase.

5. Laws: Licensee shall at all times during which this Agreement remains in force and effect, at its sole expense, abide by all statutes, ordinances and regulations of public authorities ("'Applicable Laws") with respect to Licensee's business operations and/or the Premises.

7. Hazardous Substances.

Without Licensor's prior written consent, Licensee shall not keep store, use or generate on the Premise or on property adjacent to the Premises any hazardous waste, material, substance or contaminant, as so defined or treated by any Applicable Law, including petroleum products (collectively "Hazardous Substances") nor shall Licensee install or use on the Premises or on land adjacent to the Premises any underground storage tank for any Hazardous Substance; provided, however, that without Licensor's prior consent, Licensee may use any ordinary and customary Hazardous Substance reasonably required for Licensee's use permitted by this Lease, so long as (i) the quantities are limited to Licensee's reasonable needs and do not pose a risk of material contamination from a spill or discharge, (ii) no underground storage tank is used, (iii) permits from governmental authorities are obtained if required by Applicable Laws and (iv) Licensee complies strictly with all Applicable Laws relating to its use or storage of Hazardous Substances.

Licensee indemnifies and agrees to hold Licensor, the Premises and Licensor's shareholders, directors, officers, employees and agents ("Affiliates"), entirely free and harmless from all claims and liabilities, and all fines, penalties and costs of investigation, containment and remediation, including without limitation consultants' fees (collectively "environmental costs") arising from or related to any Hazardous Substance brought onto the Premises by, or generated on the Premises, by Licensee or any employee, guest or other invitee of Licensee, whether during the term of this Lease, as it may be renewed or extended, or during the term of any predecessor lease. In the event a claim is asserted against Licensor, the Premises or Licensor's Affiliates that is within the scope of the foregoing indemnity, Licensor and Licensor's affiliates may elect either to tender the claim to Licensee, or Licensor and Licensor's affiliates may elect to defend the claim through Licensor's counsel.

Licensee agrees to give Licensor prompt notice of any claim which appears to be within the scope of the foregoing indemnity but no failure or delay on the part of Licensor to so notify Licensee shall absolve Licensee of its indemnity obligations unless substantial prejudice to Licensee results. Licensor and Licensee further agree to cooperate reasonably but without expense to Licensor, in dealing with any such claims. If the claim is tendered to Licensee, Licensee shall retain counsel and environmental consultants reasonably satisfactory to Licensor to represent Licensor and Licensor's affiliates, and Licensee shall not make any admissions of liability or settle any such claim without Licensor's prior written consent. If Licensor elects not to tender the claim, the actual cost of the attorneys and environmental consultants retained by Licensor shall be reimbursed to Licensor on a monthly or other periodic basis as Licensor elects. Licensor shall be free to settle the claim on such basis as Licensor deems appropriate, and Licensee shall indemnify 13193/000000/01738367-2
2 DocuSign Envelope ID: DF735BDB-FFA1-4FAF-8C87-F3089A3B79A7 Licensor from all liabilities and environmental costs incurred in connection with the claim or the settlement thereof.
(d) The indemnity set forth in this Section 7 shall survive the expiration or earlier termination of this Agreement.

8. Licensor's Non-Liability: Licensor shall not be liable for any loss, damage or injury of any kind of character to any person or property arising out of any breach of any term or condition of this Agreement by Licensee, or arising from any use of the said Premises and/or facilities, or any part thereof by Licensee, its employees, agents, representatives or invitees, including without limitation members of the public, or caused by any defect in the Premises or any improvements thereon or caused by or arising from any other cause whatsoever, unless the same be attributable solely to the active negligence or willful misconduct of Licensor, its agents or employees. Licensee indemnifies and agrees to defend (through counsel reasonably satisfactory to Licensor) and hold Licensor, its affiliated corporations and their respective directors, officers, employees and agents free and harmless from all claims, demands, legal actions, governmental proceedings, judgments, liabilities, losses, costs. and expenses, including attorneys fees, arising from Licensee's use of the Premises, unless attributable solely to the active negligence or willful misconduct of Licensor, its agents or employees. The indemnity set forth in this Section 8 shall survive the expiration or earlier termination of this Agreement.

Liability Insurance: Licensee shall at its cost and expense, at all times during the term of this agreement, procure and maintain for the joint benefit of Licensor, the Santa Catalina Island Company and Licensee; Commercial General Liability Insurance under the terms of which (or by endorsement satisfactory to licensor) "Santa Catalina Island Company and its subsidiaries of any tier" are named as additional insureds, and shall be indemnified against liability for damage or injury to the property or person (including death) of any person entering on or using the Premises, or any part thereof, or arising from the use and occupancy thereof by Licensee.

Licensee shall furnish to Licensor the certificate of each insurance carrier and the required endorsements prior to the commencement of the term of this Agreement and thereafter at 13193/000000/01738367-2
3 DocuSign Envelope ID: DF735BDB-FFA1-4FAF-8C87-F3089A3B79A7 least twenty (20) days before expiration of each policy period. All insurance carriers shall be reasonably satisfactory to Licensor. Licensee may provide liability insurance through PARSAC, provided coverage meets the foregoing requirements in all material respects and has been approved in writing by Licensor.

The limits of Licensor's insurance policies shall not limit Licensee's indemnification obligations under this Agreement.

Default: Licensee shall be in default if it shall fail to perform any provision or obligation under this Agreement and such failure continues for more than three (3) days after receipt of written notice from Licensor describing such failure in reasonable detail.

No failure or delay by Licensor in exercising any right or remedy in relation to this Agreement shall constitute a waiver thereof in that instance or in any subsequent instance. No waiver shall be effective again Licensor unless contained in writing signed by Licensor. The acceptance by Licensor of any performance by Licensee while the Licensee is in default under this Agreement shall not constitute a waiver by Licensor of such default. (c) No expiration or termination of the Agreement shall relive either party of any liability or obligation incurred or accrued as of the effective termination or expiration date. (d) Each of the parties hereto expressly waives any right to a trial by jury in any action or proceeding relating to their Agreement or to Licensee's use or occupancy of the premises and agree that any such action or proceeding shall be tried to a court sitting without a jury.

If legal action is brought to construe or enforce this License, or because of an alleged breach hereof, the prevailing party shall be entitled to recover its cost of suit including reasonable attorney's fees.
13193/000000/01738367-2
4 DocuSign Envelope ID: DF735BDB-FFA1-4FAF-8C87-F3089A3B79A7 This Agreement can be executed in counterparts each of which shall be deemed an original and which together shall constitute one in the same instrument. Delivery of counterparts can be made by email or fax and shall be deemed an original.

Dated: CATALINA ISLAND COMPANY
By:

Gina Long
Its: Sr. VP Administration
Dated: CITY OF AVALON
By:_
David Maistros
Title:_City Manager
Attest:
, City Clerk
13193/000000/01738367-2
DocuSign Envelope ID: DF735BDB-FFA1-4FAF-8C87-F3089A3B79A7

GLENMORE PLAZA TRASH COMPACTOR'S
BINS
HOTEL

CHET HAR WARE

UPHOLSTERY

EATALINA AVENUE

PARKING
EXHIBIT 'A' north
200 мит KEDICAMON
стися
SerT
CATALINA ISLAND COMPANY 1
DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

CATALINA ISLAND COMPANY

COMMERCIAL SUBLEASE
THIS COMMERCIAL SUBLEASE (this "Sublease"), dated for reference purposes January 1, 2023, is made by and between Catalina Island Company, a California corporation ("Sublessor"), and City of Avalon, a municipal corporation ("Sublessee" and collectively with Sublessor the "Parties," or either individually a "Party")

RECITALS
A. Sublessor is the current tenant under that certain Lease Agreement made and entered into effective as of January 1, 2011 by and between the Santa Catalina Island Company ("Master Lessor") as landlord and Sublessor as tenant (the "Master Lease") of real property of which the Premises (defined below) are a part.

Sublessee agrees that this Sublease entirely supersedes any existing lease or occupancy agreement between the Master Lessor and Sublessee and that this Sublease is subject and subordinate to the Master Lease, subject to Paragraph 26.1.

In consideration of the mutual obligations herein set forth, Sublessor hereby subleases to Sublessee and Sublessee hereby subleases from Sublessor the premises described herein for the term and on and subject to the terms and conditions set forth in this Sublease. This Sublease consists of the following Basic Sublease Provisions, the Standard Sublease Terms, and the Exhibits attached hereto.

BASIC SUBLEASE PROVISIONS
A. Premises: The real property located at 404 Bodega Road, Avalon, California, (see Paragraph 1) consisting of 3,721 s.f. and adjacent yard consisting of 2,476 s.f. as outlined on Exhibit A, attached hereto ("Premises"). The Premises are • / are not • a part of a multi-tenant property or building (which, if applicable, is called the "Project" in this Sublease).

B. Term: Five (5) year(s) and no (0) months) ("Original Term") commencing (see Paragraph 2) January 1, 2023 ("Commencement Date") and ending December 31, 2027 ("Expiration Date").
c. Base Rent: Rent in the initial amount of $5,837.00 per month, subject to adjustment (see Paragraph 3) ("Base Rent"), payable on the first (1) day of each month.

D. Base Rent Payable Upon $5,837.00 for the period January 1-31, 2023.

Execution:

E. Percentage Rent: In addition to the Base Rent, Sublessee shall • / shall not Xpay to (see Paragraph 3.2) Sublessor for each lease year or partial lease year during the Term additional rent in the amount and upon the terms and conditions set forth in the Percentage Rent Rider attached hereto as Exhibit B (if applicable) ("Percentage Rent").

F. CAM Charges: In addition to the Base Rent, Sublessee shall / shall not • pay to (see Paragraph 3.5) Sublessor monthly, concurrently with its payment of Base Rent, common area charges in the initial amount of $50.00 (CAM Charges").
{13193/000000/01781257-7)
(REV. 9/2022)
DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C Marketing Charges: In addition to the Base Rent, Sublessee shall X / shall not • pay to (see Paragraph 3.6) Sublessor monthly, concurrently with its payment of Base Rent, marketing charges in the initial amount of$ _(Marketing Charges").

H. Security Deposit: Subsase in Seir pepsession / payable on execution of this (see Paragraph 3.3)
I. Permitted Use: For the repair and maintenance of City-owned vehicles and equipment (see Paragraph 4.1) and for no other purpose ("Permitted Use").

J. Insurance (see Paragraph 7) Sublessee shall provide insurance as specified in Paragraph 7 Sublessee shall X / shall not | reimburse Sublessor for Sublessor' cost of insuring the Premises (single tenant properties), or for Sublessee's Share of the cost of insuring the Project (multi-tenant properties), as the case may be, under cause of loss-special insurance.

K. Real Estate Taxes (see Sublessee shall X/ shall not pay all Real Estate Taxes.

Paragraph 5)
L. Exhibits: A - Outline of Premises
Percentage Rent Rider, if applicable
M. Guarantor(s): -
N. Sublessee's Share 3.97% (multi-tenant properties only)

0. Lease Year Each calendar year or portion of a calendar year at the beginning or end of the Term ("lease year").

P. Possession X Sublessee is in possession of the Premises. (Paragraph 1.3) • Sublessee's right to possession of the Premises begins on the Commencement Date.

The Basic Sublease Provisions are qualified in their entirety by the Standard Sublease Terms, the Exhibits and any Addenda. In the event of a conflict between or among any of the provisions of this Sublease, the following shall prevail in the order stated: the Addenda, the Exhibits, the Standard Sublease Terms, and the Basic Sublease Provisions.
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DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

STANDARD SUBLEASE TERMS

1. Sublease of Premises
Demise. Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor, the Premises, for the Term, at the rental, and upon all of the terms, covenants and conditions set forth in this Sublease. Unless otherwise provided herein, any statement of square footage set forth in this Sublease is an approximation which Sublessor and Sublessee agree is reasonable. No rental adjustment shall be made if the actual square footage is more or less than the approximation.

Condition. The Premises have been examined by Sublessee and are accepted "as is" in their present condition, and Sublessor makes no representation as to the condition of the Premises or their fitness for any purpose. Sublessor shall not be liable for any defect, latent or patent, or change of conditions resulting from any

1.3 Possession. Unless Sublessee is already in possession of the Premises, Sublessor shall give Sublessee possession of the Premises on the Commencement Date; provided that Sublessee will have early possession of the Premises if and when so notified by Sublessor for the limited purposes of installation of fixtures, equipment, and inventory or to otherwise prepare the Premises for Sublessee's use and occupancy, provided that Sublessee shall not thereby interfere with the prosecution of any work being done by Sublessor and provided that the Sublessee insurance required by Paragraph 7 is in force and satisfactory evidence thereof has been provided to Sublessor. The provisions of this Sublease, including but not limited to Sublessee's insurance and indemnity the Commencement Date, Sublessor will not be subject to any liability for its failure to do so. This failure will not affect the validity of this Sublease or the obligations of Sublessee under it, but the Term will commence on the date on which Sublessor delivers a possession of the Premises to Sublessee.

Term. The Commencement Date, Expiration Date and Original Term of this Sublease are as specified in Paragraph B of the Basic Sublease Provisions. The word "Term," as used in this Sublease, means the Original Term and any extension or renewal term and any period of holdover with Sublessor's consent.

3. Rent and Security Deposit

3.1 Base Rent.
(a) Sublessee shall pay Base Rent, Percentage Rent and other charges due under this Sublease, as the same may be adjusted from time to time, to Sublessor in lawful money of the United States, without offset or deduction, in advance, on or before the day on which they are due under the terms of this Sublease.

Provided Sublessee is not in Default or Breach under this Sublease, Base Rent and all charges for any partial period during the Term hereof shall be prorated based upon the actual number of days elapsed in the period. Payment of Base Rent, Percentage Rent (if due) and other charges shall be made to Sublessor at its address stated herein or to such other persons or at such other addresses as Sublessor may from time to time designate in writing to Sublessee.

Commencing on the first January 1 after the Commencement Date and on each January 1 thereafter throughout the Term (each such date is hereinafter referred to as an "Adjustment Date"), the Base Rent rate in effect immediately prior to the Adjustment Date will be adjusted upward (never downward) by an amount equal to the greater of: (i) three and one-half percent (3.5%) or (ii) the percentage increase in the "Index" (defined below) for the twelve (12) month period ended on the last day of the month preceding the Adjustment Date.

Sublessor will give Sublessee written notice of the increase. Until Sublessor gives Sublessee written notice of the increase, Sublessee shall pay Base Rent at 103.5% of the Base Rent rate in effect immediately prior to the Adjustment Date. If the percentage increase in the Index exceeds 3.5%, Sublessee shall pay the additional amount owing within twenty (20) days after receipt of Sublessor's notice of increase. The "Index" is the Consumer Price Index (CPI-U) for the Los Angeles-Long Beach-Anaheim area published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued, such similar index selected by Sublessor will be the Index.

If the base year of the Index is changed, the published conversion factor will be used to make the calculation. The (13193/000000/01781257-7 )
3 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C Base Rent as adjusted will be the Base Rent until the next Adjustment Date. No delay in giving or failure by Sublessor to give Sublessee written notice of an increase shall relieve Sublessee of the obligation to pay the increase called for by this Paragraph.

Percentage Rent. If required by Paragraph E of the Standard Sublease Terms, Sublessee shall pay to Sublessor for each month or partial month during the Term Percentage Rent in the amount and upon the terms and conditions set forth in the Percentage Rent Rider attached hereto as Exhibit B.

Security Deposit. Sublessee shall deposit with Sublessor upon execution hereof the Security Deposit as security for Sublessee's faithful performance of its obligations under this Sublease. If Sublessee fails to pay rent, or otherwise Defaults under this Sublease, Sublessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Sublessor or to reimburse or compensate Sublessor for any liability, expense, loss or damage which Sublessor may suffer or incur by reason thereof. If Sublessor uses or applies all or any portion of the Security Deposit, Sublessee shall within ten (10) days after written request therefor deposit monies with Sublessor sufficient to restore said Security Deposit to the full amount required by this Sublease. If the Base Rent increases during the Term of this Sublease, Sublessee shall, within ten (10) days after written request from Sublessor, deposit additional monies with Sublessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Permitted Use be amended to accommodate a material change in the business of Sublessee or to accommodate a sublessee or assignee, Sublessor shall have the right to increase the Security Deposit to the extent necessary, in Sublessor's reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Sublessee occurs during this Sublease and following such change the financial condition of Sublessee is, in Sublessor's reasonable judgment, significantly reduced, Sublessee shall deposit such additional monies with Sublessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. If no Security Deposit is called for by Paragraph H of the Basic Sublease Provisions, but Sublessee Defaults under this Sublease, Sublessor shall have the right to require Sublessee to deliver to Sublessor promptly upon demand a Security Deposit in an amount not to exceed three months' Base Rent at the rate then in effect. Nothing herein is intended to waive the requirement that Sublessor's consent, which Sublessor can grant or withhold in its sole and absolute discretion, be obtained in connection with a change in the Permitted Use or any change in control of Sublessee pursuant to Paragraph 10.1 below. Sublessor shall not be required to keep the Security Deposit separate from its general accounts. Sublessee waives the provisions of Civil Code section 1950.7. Within thirty (30) days after the Premises have been vacated pursuant to Paragraph 6.4(c) below, Sublessor shall return that portion of the Security Deposit not used or applied by Sublessor. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Sublessee under this Sublease.

Late Charge. If Sublessee fails to pay to Sublessor any payment of Base Rent, Percentage Rent, CAM Charges, Marketing Charges or other charge or payment due Sublessor under this Sublease within ten (10) days after the due date thereof, Sublessee shall pay to Sublessor, within three (3) days after demand (which demand shall be in lieu of and not in addition to any notice required under California Code of Civil Procedure §1161), a late charge of six percent (6%) of the delinquent amount or $100.00, whichever is greater, as liquidated damages to compensate Sublessor for the inconvenience and additional expense, including administrative expense, incurred by Sublessor. Sublessor's acceptance of a late charge on one or more occasions shall not constitute a waiver of Sublessor's right to insist on timely payment thereafter. The late charges shall, for purposes of Sublessor's remedies, constitute additional rent and shall be in addition to any interest charge or returned check charge that also may be applicable to the delinquency.

CAM Charges. Sublessee shall pay to Sublessor monthly, concurrently with its payment of Base Rent, as additional rent, the amount set forth in Paragraph F of the Basic Sublease Provisions (as adjusted), if applicable, for (i) maintenance and repair of Project Common Areas (defined in Paragraph 4.8 below), (ii) maintenance of landscaping, if any, and (iii) maintenance and repair of building systems (defined in Paragraph 6.3(a)) or elements shared by Sublessee with one or more other tenants as may be indicated in Paragraph 6.2. These charges may also include a charge for the use and maintenance of privately owned roads of Sublessor. CAM charges are based on Sublessor's estimates and are not reconciled to actual costs. Sublessor shall have the right to adjust the monthly CAM Charges payable by Sublessee from time to time on not less than thirty (30) days written notice to Sublessee. Utility charges are covered by Paragraph 9. {13193/000000/01781257-7}
DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

3.6 Marketing Charges. To help defray Sublessor's cost of marketing Santa Catalina Island as a destination, Sublessee shall pay to Sublessor monthly, concurrently with its payment of Base Rent, as additional rent, the amount set forth in Paragraph G of the Basic Sublease Provisions. Sublessor shall have the right to increase the Marketing Charges from time to time on not less than thirty (30) days written notice to Sublessee.

3.7 Returned Check Charge. If any check tendered to Sublessor by Sublessee is dishonored, Sublessee shall pay to Sublessor as liquidated damages, upon demand, a returned check charge of $50.00 to compensate Sublessor for the inconvenience and additional expense, including administrative expense, incurred by Sublessee Sublessor's acceptance of a returned check charge on one or more occasions shall not constitute a waiver of Sublessor's right to insist on timely payment thereafter. The returned check charge constitutes additional rent anc shall be in addition to any interest charge that also may be applicable.

4. Use
Permitted Use/Restrictions. Sublessee shall use and occupy the Premises only for the Permitted Use set forth in Paragraph I of the Basic Sublease Provisions, and for no other purpose. Sublessee shall not use or permit the use of the Premises in a manner that is unlawful, creates waste or a nuisance, that disturbs owners and/or occupants of, or causes damage to, neighboring premises or properties, that reasonably tends to injure the reputation of Sublessor or which is offensive or immoral, that causes alterations to the Premises or Project to be required, or that causes cancellation of property insurance on the Premises or Project or an increase in the cost thereof.

Sublessee shall not, without Sublessor's prior written consent, (i) install or affix to the Premises or Project any exterior fixtures, shades, awnings or exterior decorations, (ii) paint or otherwise alter the exterior of the Premises or Project or the publicly accessible areas of the Premises interior, (iii) display or sell any merchandise outside of the Premises interior, (iv) use any loudspeakers or mechanical or moving display, flashing lights or similar devices or (v) solicit business, distribute handbills, post signs or obstruct any area outside of the Premises interior (except use of exterior signage otherwise permitted by this Sublease).

Sublessor shall have the right to require Sublessee to change any interior display in a publicly accessible area of the Premises or any window display which Sublessor finds to be objectionable, such change to be made promptly upon written notice from Sublessor.

4.2 Storage Yard License. Sublessor hereby grants Sublessee a license (the "License") to use and to permit Sublessee's employees, agents, contractors and invitees who are on the Premises to use the open yard area immediately adjacent to the Premises ("Yard") for storage or other uses consistent with Paragraph 4.1 on the following terms and conditions:
(i) Term: The term of this License is co-extensive with the term of this Lease.

Non-Exclusive: The License herein granted is non-exclusive. Sublessor reserves the right to use, and to permit others to use, the Yard so long as such use does not materially interfere with Sublessee's use of the Premises for the Permitted Use. Sublessor and its permittees who use the Yard are herein collectively called "Other Users." Sublessee shall not materially interfere with the use of the Yard by Other Users. The Yard is not Common Area for purposes of this Sublease, but rather is deemed part of the Premises for purposes of Sublessee's covenants and other provisions of this Lease except as otherwise expressly provided in this Sublease. (iii) Maintenance: Sublessee shall cause said Yard to be maintained in a state of good repair and in a clean and sanitary condition; provided that Sublessee shall not be responsible for repairing damage caused by Other Users of the Yard. For purposes of Sublessor's remedies in the event of a default by Sublessee in performing the required maintenance, Sublessor, after ten (10) days prior written notice to Sublessee, may cause such maintenance to be performed in which event Sublessor's costs incurred, directly to outside contractors or equitably allocable wage, payroll tax and benefit costs of Sublessor's own employees, shall be reimbursed to Sublessor by Sublessee promptly upon demand.
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4.3 Hazardous Substances
(a) Without Sublessor's prior written consent, Sublessee shall not keep, store, use or generate on the Premises or Project any hazardous waste, material, substance or contaminant, as so defined or treated by any Applicable Law, including petroleum products (collectively "Hazardous Substance") nor shall Sublessee install or use on the Premises or Project any underground storage tank for any Hazardous Substance; provided, however, that without Sublessor's prior consent, Sublessee may use any ordinary and customary Hazardous Substance reasonably required for Sublessee's use permitted by this Sublease, so long as (i) the quantities are limited to Sublessee's reasonable needs and do not pose a risk of material contamination from a spill or discharge, (ii) no underground storage tank is used, (iii) permits from governmental authorities are obtained if required by Applicable Requirements (defined in Paragraph 4.4), and (iv) Sublessee complies strictly with all Applicable Requirements relating to its use or storage of Hazardous Substances.

Sublessee indemnifies and agrees to hold Sublessor, the Premises, Project and Sublessor's affiliates, as defined in Paragraph 47(a), entirely free and harmless from all claims, demands, actions, proceedings, liabilities, judgments, losses, costs and expenses, and all costs of investigation, containment and remediation, including without limitation consultants' fees (collectively "environmental costs"), arising from or related to any Hazardous Substance brought onto the Premises or Project by, or generated on the Premises or Project, by Sublessee or any employee, guest or other invitee of Sublessee, whether during the Term of this Sublease or during the term of any predecessor lease or sublease. In the event a claim is asserted against Sublessor, the Premises, the Project or Sublessor's affiliates that is within the scope of the foregoing indemnity, Sublessor and Sublessor's affiliates may elect either to tender the claim to Sublessee or Sublessor and Sublessor's affiliates may elect to defend the claim through Sublessor's counsel.

Sublessor agrees to give Sublessee prompt notice of any claim which appears to be within the scope of the foregoing indemnity but no failure or delay on the part of Sublessor to so notify Sublessee shall absolve Sublessee of its indemnity obligations unless substantial prejudice to Sublessee results. Sublessor and Sublessee further agree to cooperate reasonably but without expense to Sublessor, in dealing with any such claims.

If the claim is tendered to Sublessee, Sublessee shall retain counsel and environmental consultants reasonably satisfactory to Sublessor to represent Sublessor and Sublessor's affiliates, and Sublessee shall not make any admissions of liability or settle any such claim without Sublessor's prior written consent. If Sublessor elects not to tender the claim, the actual cost of the attorneys and environmental consultants retained by Sublessor shall be reimbursed to Sublessor on a monthly or other periodic basis as Sublessor elects. Sublessor shall be free to settle the claim on such basis as Sublessor deems appropriate, and Sublessee shall indemnify Sublessor from all liabilities and environmental costs incurred in connection with the claim or the settlement thereof.

The indemnity set forth in this Paragraph 4.3 shall survive the expiration or earlier termination of this Sublease. The indemnity does not apply with respect to Hazardous Substances generated on or brought onto the Yard by Other Users.

4.4 Applicable Requirements.

Sublessee shall, at Sublessee's sole cost and expense, fully, diligently and in a timely manner, comply with all current and future "Applicable Requirements," which term is used in this Sublease to mean all laws, rules, regulations, ordinances, directives, covenants, easements and restrictions of record, permits, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Sublessor's engineers and/or consultants, relating in any manner to the Premises (including, but not limited to, matters pertaining to (i) industrial hygiene; (ii) environmental conditions on, in, under or about the Premises, including soil and groundwater conditions; (iii) the use, generation, manufacture, production, installation, maintenance, removal, transportation, storage, spill, or release of any Hazardous Substance, and (iv) seismic requirements), which are in effect on the date hereof or became effective thereafter. Sublessee shall, within five (5) days after receipt of Sublessor's written request, provide Sublessor with copies of all documents and information, including, but not limited to, permits, registrations, manifests, applications, reports and certificates, evidencing Sublessee's compliance with any Applicable Requirements specified by Sublessor, and shall immediately upon receipt, notify Sublessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, {13193/000000/01781257-7}
6 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C complaint or report pertaining to or involving failure by Sublessee or the Premises to comply with any Applicable Requirements.

If Sublessor is required to perform or conduct any investigations, studies, monitoring activities, reporting, remedial work or other action in order to comply with Applicable Requirements relating to the Premises or ocean waters adjacent to the Premises (except alterations covered by Section 4.4(c)), Sublessee shall pay or reimburse Sublessor for Sublessor's out of pocket expenses so incurred. If the required work relates not only to the Premises but also to other real property of Sublessor or the Master Lessor or to ocean waters adjacent to the Premises and other real property of Sublessor or the Master Lessor, Sublessee shall pay or reimburse Sublessor for an equitably allocable share of such expenses, and Sublessor's good faith determination of Sublessee's equitably allocable share shall be conclusive and binding on Sublessee. Payments/reimbursements are due thirty (30) days after invoice. The expenses payable or reimbursable by Sublessee under this Paragraph 4.4(b) include, without limitation, the cost of experts and consultants. The foregoing notwithstanding, unless the expenses are attributable to a violation of Applicable Requirements by Sublessee (in which event Sublessee's payment/reimbursement responsibility is unlimited), Sublessee shall not be required to pay more than an amount equal to one (1) month's Base Rent per calendar year during the Term under this Section 4.4(b). (c) Anything in Paragraph 4.4(a) or elsewhere in this Sublease notwithstanding:
(i) Except as provided in Paragraph 4.4(c)(ii), Sublessee shall be responsible for making, in compliance with Paragraph 7, any alterations to the Premises necessitated by any changes in Applicable Requirements after the date of execution of this Sublease and any alterations to the Premises or the remainder of the Project to conform to any existing or future Applicable Requirements which are necessitated by either Sublessee's special use of the Premises (as opposed to the use of commercial tenants generally) or other alterations or improvements made by Sublessee;
Sublessor shall be responsible for making alterations to the Premises or Project elements for which Sublessor is responsible under Paragraph 6.2 to conform to existing or future Applicable Requirements, provided such alterations are not Sublessee's responsibility under Paragraph 4.4(c)(i); and (iii) A party which has obligations to make alterations under this Paragraph 4.4(c) may instead elect to terminate this Sublease upon written notice to the other party if either the reasonably estimated cost of such alterations exceeds six (6) months' Base Rent at the rate then applicable or the reasonably estimated cost of such alterations exceeds three (3) months' then Base Rent and there is less than one (1) year remaining of the Term of this Sublease.

Sublessee is not required to comply with Applicable Requirements which compliance obligation relates solely to, or arises solely because of, use of the Yard by Other Users.

4.5 Entry. Sublessor, Sublessor's agents, employees, contractors and designated representatives, and the holders of any mortgages, deeds of trust or ground leases on the Premises ("Lenders") shall have the right to enter the Premises at any time in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the Premises, verifying compliance by Sublessee with this Sublease and all Applicable Requirements and performing any work required or permitted to be performed by Sublessor.

4.6 No Outside Storage. Sublessee shall not store or permit the storage of goods, materials, equipment or property of any kind whatsoever upon the Premises or Project unless such property is stored within buildings or structures located thereon or unless outside storage is specifically authorized under this Sublease.

4.7 Garbage Cans. Sublessee shall provide and use garbage cans or dumpsters of proper size, and equipped with such covers as will prevent offensive odors from escaping from the same and shall see that said garbage cans or dumpsters are thoroughly cleaned daily and are kept covered excepting such times as garbage is being deposited in them or they are being cleaned or emptied.

Common Areas. The term "Common Areas" means those parts of the Project or other adjacent and nearby areas not reserved for the exclusive use of Sublessee or any other Project tenant and any areas on {13193/000000/01781257-7}
7 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C property adjacent to or nearby the Premises or Project as to which Sublessee has use rights under this Sublease.

Sublessee shall have reasonable non-exclusive use of Common Areas subject to: (i) any Rules and Regulations adopted by Sublessor under Paragraph 35 below, (ii) Sublessor's reservations under Paragraph 37 below, (iii) Sublessor's rights to close Common Areas temporarily to prevent others from acquiring prescriptive rights or for maintenance or other reasonable purpose, and to make changes to the Common Areas, and (iv) Sublessor's right to make alterations to the Common Areas.

Other Operational Requirements. The public areas of the Premises shall be maintained in a clean, attractive and inviting condition. Merchandise, fixtures and supplies shall be of good quality. Personnel shall be properly trained and present a neat and clean appearance. No vending machines, video games, or similar items or devices are permitted without Sublessor's prior consent. None of Sublessor's or its affiliated companies trademarks or service-marks shall be used by Sublessee without Sublessor's prior written consent. Sublessee shall cease any business practice or conduct relating to the Premises which Sublessor, in its reasonable discretion, determines to be adverse to the business reputation or goodwill of the Premises, the Project or of Santa Catalina Island generally.

No Animals Permitted. Except as provided in Civil Code section 54.2 (if applicable), Sublessee shall not (i) bring onto the Premises or keep on the Premises any animal, bird, fowl, fish or reptile or (ii) permit any person to do so.

5. Taxes.

Real Property Taxes. If required under Paragraph K of the Basic Sublease Provisions, Sublessee shall pay all general and special real property taxes attributable to the Premises, all future substitutes for real property taxes, and all other taxes, fees, levies, assessments, charges, and excises imposed with respect to the Premises or Sublessee's use or occupancy thereof, including without limitation a tax on Sublessor's rental receipts from the Premises (but excluding any tax on Sublessor's net income) (collectively "Real Estate Taxes"). Real Estate Taxes for any partial tax year within the Term shall be prorated, subject to Paragraph 5.4.

5.2 Other Taxes. Sublessee shall be responsible for and shall pay before delinquency all municipal, county or state taxes, levies and fees of every kind and nature, including, but not limited to, general or special assessments, assessed during the Term of this Sublease against any leasehold interest, leasehold improvement or personal property of any kind, owned by or placed in, upon or about the Premises or Project by Sublessee (collectively "Personal Property Taxes").

Payment of Real Estate Taxes. Sublessor may collect from Sublessee the Real Estate Taxes attributable to the Premises, at Sublessor's election, after the actual amount has been ascertained and paid or in advance, monthly, quarterly or semi-annually, based on Sublessor's estimates which may be revised by Sublessor from time to time. If payment is made based on estimates, the amount paid shall be reconciled and adjusted between the Sublessor and Sublessee promptly after the actual amount of Real Estate Taxes has been determined. If the Premises are separately assessed, the entire Real Estate Tax bill shall be deemed attributable to the Premises. If the Project is separately assessed, Sublessee's Share of the Project Real Estate Tax bill shall be deemed attributable to the Premises. If the Project is part of a larger tax parcel, Sublessor shall determine the amount of Real Estate Taxes attributable to the Premises in its reasonable discretion based on the relative values of the Project and the remainder of the tax parcel and Sublessee's Share. Sublessee shall pay amounts due under this Paragraph 5.3 within fifteen (15) days after receipt of Sublessor's written request, or if payable monthly based on an estimate, concurrently with the monthly installment of Base Rent. Should Sublessee default in making any tax payment as required by this Paragraph 5.3, the amount of such payment, together with any penalty or other charge incurred by Sublessor to the taxing authority, shall be immediately due and payable by Sublessee upon demand. No failure or delay on the part of Sublessor in billing Sublessee for Real Estate Taxes shall relieve Sublessee of its obligation to pay such Real Estate Other Provisions. Provided no Breach of this Sublease by Sublessee has occurred, Sublessee shall be liable only for the payment of Real Estate Taxes which are for a period within the Term. Sublessee's obligation to pay Real Estate Taxes under this Paragraph 5 includes the obligation to pay all increases in Real Estate Taxes whether because of a change of ownership, improvements or any other cause. {13193/000000/01781257-7}
DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

6. Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations.

6.1 Sublessee's Obligations.

Subject to the provisions of Paragraphs 1.2 (Condition), 4.4 (Applicable Requirements),

6.2 (Sublessor's Obligations), 8 (Damage or Destruction), and 13 (Condemnation), Sublessee shall, at Sublessee's sole cost and expense and at all times, keep the Premises and every part thereof in good order, condition and repair (whether or not such portion of the Premises requiring repair, or the means of repairing the same, are reasonably or readily accessible to Sublessee, and whether or not the need for such repairs occurs as a result of Sublessee's use, any prior use, the elements or the age of such portion of the Premises), including, without limiting the generality of the foregoing, all equipment or facilities located in, or exclusively serving, the Premises (such as plumbing and electrical fixtures, fire hose connections, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, and skylights), but excluding any items which are the responsibility of Sublessor pursuant to Paragraph 6.2 below. Sublessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices. Sublessee's obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair.
(b)
conditioning system, Sublessee shall, at Sublessee's sole cost and expense, procure and maintain a contract, with copies to Sublessor, in customary form and substance for and with a contractor specializing and experienced in the inspection, maintenance and service of the heating, air conditioning and ventilation system for the Premises.

However, Sublessor reserves the right, upon notice to Sublessee, to procure and maintain the contract for the heating, air conditioning and ventilating systems. If Sublessor so elects and the contract relates only to the Premises, Sublessee shall reimburse Sublessor, upon demand, for the cost thereof. If the contract relates to the Premises and other premises in the Project, any reimbursement due Sublessor is included in the charge, if any, under Paragraph 3.5.
(c) If Sublessee fails to perform Sublessee's obligations under this Paragraph 6.1, Sublessor may enter upon the Premises after ten (10) days' prior written notice to Sublessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Sublessee's behalf, and put the Premises in good order, condition and repair, in accordance with Paragraph 11.2 below. (d) Sublessor may elect to perform any alteration work which is Sublessee's responsibility under Paragraph 4.4(c) at Sublessee's expense and may require such deposits from Sublessee, in advance of commencing or continuing work, toward the cost of such alterations as Sublessor in its discretion determines.

Sublessee is responsible for general maintenance of the Yard but not for repairs or alterations attributable solely to use of the Yard by Other Users.

Sublessor's Obligations. Subject to the provisions of Paragraphs 1.2 (Condition), 4.4 (Applicable Requirements), 4.1 (Use), 6.1 (Sublessee's Obligations), 8 (Damage or Destruction) and 13 (Condemnation), Sublessor shall keep in good order, condition and repair the Common Areas, the foundations, exterior walls, structural condition of interior bearing walls and exterior roof of the Premises and Project, and the elements which serve Sublessee and one or more other tenants of the Project which are specified hereinabove. Sublessor shall not be obligated to paint the interior surfaces of exterior walls nor shall Sublessor be obligated to maintain, repair or replace windows, doors or plate glass of the Premises. Sublessee expressly waives the benefit of any statute now or hereafter in effect which would otherwise afford Sublessee the right to make repairs at Sublessor's expense or to terminate this Sublease because of Sublessor's failure to keep the Project, Premises or Common Areas in good order, condition and repair.
(13193/000000/01781257-7)
9 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

6.3 Utility Installations, Trade Fixtures, Alterations.

Definitions; Consent Required. The term "Utility Installations" is used in this Sublease to refer to all air ducts, power panels, electrical distribution, security systems, fire protection systems, communications systems, lighting fixtures, heating, ventilating and air conditioning equipment, plumbing, and fencing in, on or about the Premises. The term "Trade Fixtures" shall mean Sublessee's machinery and equipment which can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification of the improvements on the Premises other than Utility Installations or Trade Fixtures. Sublessee shall not make or cause to be made any Alterations or Utility Installations in, on, under or about the Premises without Sublessor's prior written consent. Sublessee may, however, make non-structural Utility Installations and Alterations to the interior of the Premises (excluding the roof without Sublessor's consent but upon notice to Sublessor, so long as they are not visible from the outside of the Premises, do not affect other tenants of the Project, do not involve puncturing, relocating or removing the roof or any existing walls, or changing or interfering with the plumbing, electrical, mechanical, HVAC or life safety systems ("building systems") and the cumulative cost thereof during the Term of this Sublease does not exceed $10,000. Sublessor may require that Sublessee provide a payment and performance bond issued by a surety satisfactory to Sublessor in an amount at least equal to one hundred fifty percent (150%) of the estimated cost of any Alterations or Utility Installations which require Sublessor's consent, such bond to name Sublessor as an obligee.
(b) Consent. Any Alterations or Utility Installations that Sublessee shall desire to make and which require the consent of the Sublessor shall be presented to Sublessor in written form with detailed plans.

Sublessee's right to make Alterations or Utility Installations is further conditioned upon: (i) Sublessee's acquiring all applicable permits required by governmental authorities; (ii) the furnishing of copies of such permits together with a copy of the plans and specifications for the Alteration or Utility Installation to Sublessor prior to commencement of the work thereon; and (iii) the compliance by Sublessee with all conditions of said permits in a prompt and expeditious manner. Any Alterations or Utility Installations by Sublessee during the term of this Sublease shall be done in a good and workmanlike manner, with good and sufficient materials, and be in compliance with all Applicable Requirements. Sublessee shall promptly upon completion thereof furnish Sublessor with as-built plans and specifications therefor.

Lien Protection. Sublessee shall pay when due all claims for labor or materials furnished or alleged to have been furnished to or for Sublessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or Project or any interest therein. Sublessee shall give Sublessor not less than ten (10) days' notice prior to the commencement of any work in, on, or about the Premises, and Sublessor shall have the right to post notices of non-responsibility in or on the Premises as provided by law. If Sublessee shall, in good faith, contest the validity of any such lien, claim or demand, then Sublessee shall, at its sole expense, defend and protect itself, Sublessor and the Premises and Project against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Sublessor or the Premises or Project, or, at Sublessor's option, Sublessee shall furnish to Sublessor, upon demand, a surety bond satisfactory to Sublessor, in an amount equal to one and one-half times the amount of such contested lien claim or demand, indemnifying Sublessor against liability for the same, as required by law, for the holding of the Premises free from the effect of such lien or claim. In addition, Sublessor may require Sublessee to pay Sublessor's attorneys' fees and costs in participating in such action if Sublessor shall decide it is in its best interest

6.4 Ownership, Removal, Surrender, and Restoration.

Ownership. Until expiration or earlier termination of this Sublease, all Alterations and Utility Installations made to the Premises by Sublessee shall be the property of and owned by Sublessee, but considered a part of the Premises. Unless removal is required by Paragraph 6.4(b) hereof, all Sublessee-owned Alterations and Utility Installations shall, at the expiration or earlier termination of this Sublease, become the property of Sublessor and remain upon the Premises and be surrendered with the Premises by Sublessee without compensation to Sublessee.

Removal. Unless otherwise agreed in writing, Sublessor may require that any or all Sublessee-owned Alterations or Utility Installations be removed by the expiration or earlier termination of this {13193/000000/01781257-7}
10 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C Sublease, notwithstanding that their installation may have been consented to by Sublessor. Sublessor may require the removal at any time of all or any part of any Alterations or Utility Installations made without the required consent of Sublessor. Sublessee shall restore the Premises as near to its pre-existing condition as is reasonably possible following such removal.

Surrender/Restoration. Sublessee shall surrender the Premises by 5:00 p.m. of the last day of the Term or any earlier termination date, clean and free of debris, in good operating order, and in a condition and state of repair as good as when received by Sublessee, ordinary wear and tear excepted. Ordinary wear and tear shall not include any damage or deterioration that would have been prevented by good maintenance practice or by Sublessee's performing all of its obligations under this Sublease. Subject to Paragraph 6.4(b), the Premises, as surrendered, shall include the Alterations and Utility Installations. Sublessee's surrender obligation shall include the repair of any damage occasioned by the installation, maintenance or removal of Sublessee's Trade Fixtures, furnishings, equipment, and Alterations and Utility Installations, as well as the removal of any storage tank installed by or for Sublessee, and the removal, replacement, or remediation of any soil, material or ground water contaminated by Sublessee, all as may then be required by Applicable Requirements and/or good practice.

Sublessee's Trade Fixtures shall remain the property of Sublessee and shall be removed by Sublessee subject to its obligation to repair and restore the Premises per this Sublease.

6.5 Sidewalk Repairs. In the event Sublessor is required by the City of Avalon to make repairs to sidewalks adjacent to the Premises pursuant to City ordinance, or Sublessor determines that adjacent sidewalks require cleaning, Sublessor's costs incurred in making such repairs or cleaning (including amounts paid to contractors or, if done "in house," wages paid to employees plus a 25% benefits surcharge on wages, the cost of materials, permits, and other expenditures incurred by Sublessor) shall be paid by Sublessee if the Premises are a single-tenant property or, if the Premises are a multi-tenant property, Sublessee's Share shall be paid by Sublessee, in either case within thirty (30) days after Sublessee's receipt of an itemized statement therefor.

7. Insurance and Indemnity.

Sublessee's Insurance. Sublessee, at its sole cost and expense, commencing on the date Sublessee is given possession of or access to the Premises, and continuing during the Term, shall procure, pay for, and keep in full force and effect the following types of insurance, in at least the amounts and in the firms specified below. If Paragraph 4.2 has been omitted, references to the "Yard" in this Paragraph 7 are to be disregarded.

Commercial general liability insurance (occurrence basis) with coverage limits of not less than $2 million combined single limit per occurrence and aggregate, insuring against any and all liability of the insureds with respect to the Premises, Common Areas Project or Yard or arising out of the maintenance, use, or occupancy of the Premises, Common Areas Project or Yard or related to the exercise of any rights of Sublessee under this Sublease, subject to increases in amount as Sublessor may reasonably require from time to time. All such liability insurance must specifically insure the performance by Sublessee of the indemnity agreement as to liability for injury to or death of persons and injury or damage to property set forth in Paragraph 7.6. Furthermore, all such liability insurance must include personal injury, blanket contractual, cross liability, and severability of interest clauses; products/completed operations; liquor law liability if the Permitted Use includes the sale of alcoholic beverages; broad form property damage; and independent contractors. (b) If any motor vehicles will be brought onto the Premises, Common Areas or Yard, automobile liability insurance (occurrence basis) for owned, non-owned and hired vehicles with a liability of not less than $1 million per occurrence and aggregate.

Worker's compensation coverage as required by law, including employer's liability coverage, with a limit of not less than Five Hundred Thousand Dollars ($500,000.00) or statutory requirements, whichever is greater, with a waiver by Sublessee's insurer of any right of subrogation against Sublessor and by reason of any payment under such coverage.
(d) Rental loss insurance covering loss of full rent for not less than one (1) year, with an extended period of indemnity for an additional one hundred eighty (180) days, containing an agreed valuation provision in lieu of a coinsurance clause, with the coverage amount to be adjusted annually to reflect the projected (13193/000000/01781257-7}
11 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C rent for the next twelve (12) month period. Sublessee shall be liable for any deductible amount ("Rental Value Insurance").

Plate-glass insurance covering all plate glass of the Premises at full replacement value.

Sublessee has the option either to insure this risk or to self-insure.

Insurance covering (i) all of Sublessee's Utility Installations and Sublessee's Alterations, (ii) trade fixtures, (il) merchandise, and (iv) other personal property from time to time in, on, or about the Premises, all in an amount not less than their full replacement value, including replacement cost endorsement, providing rotection against any peril included within the classification Fire and Extended Coverage, sprinkler damage, randalism, malicious mischief, and such other additional perils as covered in a "special form" standard insurance policy. Any policy proceeds will be used for the repair or replacement of the property damaged or destroyed unless Construction Insurance. Sublessee will maintain any insurance policies designated necessary by Sublessor with regard to Sublessee's or Sublessee's contractors', construction of Alterations including contingent liability and "all-risk" builders' insurance, in amounts acceptable to Sublessor. (h) Sublessee shall carry and maintain during the Sublease Term such other reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Sublessee's operations therein, as may be required by Sublessor's lender or as may be reasonably requested by Sublessor from time to time.

Policy Form. All policies of insurance required of Sublessee under this Sublease shall be issued by insurance companies with general policyholder's rating of not less than an A and a financial rating of not less than Class X, as rated in the most current available "Best's Key Rating Guide," and which are admitted and qualified to do business in the State of California. All such policies, except for the worker's compensation and employer's liability coverage, shall be for the mutual and joint benefit and protection of Sublessor and Sublessee, and shall name the "Santa Catalina Island Company and its subsidiaries of any tier and their respective shareholders, members, directors, officers and employees, and any mortgagees or trust deed beneficiaries of the Premises" as additional insureds by endorsement on a form satisfactory to Sublessor. The policies described in subclauses (d) and (f) of Paragraph 7.1 shall also name Sublessor and Sublessor's mortgagee(s) or beneficiary(ies) as loss payees.

Executed copies of the policies of insurance or certificates and endorsements on forms satisfactory to Sublessor thereof must be delivered to Sublessor prior to Sublessee, its agents, or employees entering the Premises for any purpose. Thereafter, executed copies of renewal policies or certificates thereof and endorsements shall be delivered to Sublessor within thirty (30) days prior to the expiration of the term of each policy. Sublessee will use diligent efforts to cause all policies of insurance delivered to Sublessor to contain a provision that the company writing the policy will give to Sublessor thirty (30) days' prior written notice of any cancellation or lapse or the effective date of any reduction in the amounts of insurance. All policies required of Sublessee under this Sublease shall be endorsed to read that such policies are primary policies and any insurance carried by Sublessor or Sublessor's property manager will be noncontributing with such policies. No policy required to be maintained by Sublessee may have a deductible greater than Five Thousand Dollars ($5,000.00), increased by three percent (3%), cumulatively on each January 1st during the Term, unless approved in writing by Sublessor.

Blanket Policies. Despite anything to the contrary contained in this Paragraph 7, Sublessee's obligation to carry insurance may be satisfied by coverage under a so called blanket policy or policies of insurance; provided that the coverage afforded Sublessor will not be reduced or diminished by losses on other properties and that the requirements set forth in this Sublease are otherwise satisfied by such blanket policy or policies.

Increased Premiums Due to Use of Premises. Sublessee shall not do any act in or about the Premises that will tend to increase the insurance rates on the Premises. Sublessee agrees to pay to Sublessor, on demand, the amount of any increase in premium for insurance resulting from Sublessee's use of the Premises, whether or not Sublessor has consented to the act on the part of Sublessee. If Sublessee installs on the Premises any electrical equipment that constitutes an overload of the electrical lines servicing the Premises, then Sublessee, at its own expense, shall make whatever changes are necessary to comply with the requirements of the insurance underwriters and any appropriate governmental authority. (13193/000000/01781257-7}
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7.5 Sublessor's Insurance; Reimbursement of Insurance Premiums by Sublessee. (a) Sublessor shall maintain in effect during the Term a policy or policies of cause of loss- special form property insurance covering the Premises, excluding the items required to be insured by Sublessee under Paragraph 7.1(f), for the full replacement cost thereof (exclusive of the cost of excavations, foundations, pilings and footings), providing protection against any peril generally included in the classification "Fire and Extended Coverage," and such other additional insurance as was formerly covered in an "all risks" standard insurance policy, with earthquake coverage insurance and damage from ocean action insurance if deemed necessary by Sublessor in Sublessor's sole judgment or if required by Sublessor's mortgagee(s) or beneficiary(ies) or by any federal, state, county, city, or local authority. Sublessor's obligation to carry this insurance may be brought within the coverage of any so called blanket policy or policies of insurance carried and maintained by Sublessor.

If required by Paragraph J of the Basic Sublease Provisions, Sublessee shall reimburse Sublessor for the cost of the insurance required by Paragraph 7.5(a), which Sublessor determines, in its reasonable discretion, is allocable to the Premises, Sublessee's use of the Common Areas, and Yard. The cost of insurance for any partial year of the Term will be prorated. Sublessee shall pay the reimbursement amount to Sublessor within twenty (20) days of receipt of Sublessor's invoice. No failure to bill or delay in billing Sublessee for its share of insurance costs shall be a waiver of Sublessor's right to collect same.

Indemnity. "Sublessor," for the purposes of this Paragraph 7.6, means and includes Sublessor and Sublessor's parent and sister companies and their respective directors, officers, shareholders, members, agents, and employees. To the fullest extent permitted by law, Sublessee covenants with Sublessor that Sublessor will not be liable for any damage or liability of any kind or for any injury to or death of persons or damage to property of Sublessee or any other person occurring from the date Sublessee is given access to the Premises to commence Sublessee's Work from any cause whatsoever related to the use, occupancy, or enjoyment of the Premises by Sublessee or any contractor or invitee of Sublessee or person holding under Sublessee or such person's invitees including damages resulting from any labor dispute. Sublessee shall pay for, defend (with an attorney approved by Sublessor or with insurance company panel counsel), indemnify, and hold Sublessor harmless against and from any real or alleged damage or injury and from all claims, demands, actions, proceedings, judgments, liabilities, losses, costs, and expenses, including attorney fees and costs, arising out of or connected with Sublessee's use of the Premises, Common Area(s), Project or Yard or any repairs, Alterations, or improvements (including original improvements and fixtures) that Sublessee may make or cause to be made on the Premises, any "Breach" of this Sublease by Sublessee, as defined below, and any loss or interruption of business or loss of rental income resulting from any of the foregoing; provided that (and though Sublessee shall in all cases accept any tender of defense of any action or proceeding in which Sublessor is named or made a party and shall, despite any allegations of negligence or misconduct on the part of Sublessor, defend Sublessor as provided in this Paragraph 7.6). Sublessee will not be liable for such damage or injury to the extent, and in the proportion, that the same is ultimately determined to be attributable to the sole negligence, gross negligence or willful misconduct of Sublessor. This obligation to indemnify shall include all of Sublessor's attorney fees, litigation costs, investigation costs, and court costs and all other costs, expenses, and liabilities incurred by Sublessor or its counsel from the first notice that any claim or demand is to be made or may be made. Sublessee's obligations under this Paragraph 7.6 will survive the expiration or earlier termination of this Sublease. Nothing in this Paragraph 7.6 is intended or shall be construed to diminish the rights of Sublessor as additional insureds under Sublessee's insurance.

7.7 Waiver of Subrogation. Except to the extent that insurance required to be maintained by Sublessee under this Paragraph 7 covers loss to Sublessor, and except as provided in Paragraph 7.2 with respect to Sublessee's liability for deductible amounts, Sublessor and Sublessee each waives any rights each may have against the other on account of any loss or damage occasioned to Sublessor or Sublessee, as the case may be, their respective property, the Premises, Project or Yard or their contents, arising from any liability, loss, damage, or injury caused by fire or other casualty for which property insurance is carried or required to be carried under this Sublease.

The insurance policies obtained by Sublessor and Sublessee under this Sublease shall contain endorsements waiving any right of subrogation that the insurer may otherwise have against the noninsuring party. If Sublessor has contracted with a third party for the management of the Premises, the waiver of subrogation by Sublessee in this Paragraph 7.7 shall also run in favor of such third party. (13193/000000/01781257-7}
13 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C Failure by Sublessee to Maintain Insurance. If Sublessee refuses or neglects to secure and maintain insurance policies complying with the provisions of this Paragraph 7, Sublessor may, in addition to al other rights and remedies, secure the appropriate insurance policies and Sublessee shall pay, on demand, the cost of same to Sublessor as additional rent.

Sufficiency of Coverage. Neither Sublessor nor any of Sublessor's agents makes any representation that the types of insurance and limits specified to be carried by Sublessee under this Sublease are adequate to protect Sublessee. If Sublessee believes that any such insurance coverage is insufficient, Sublessee will provide, at its own expense, such additional insurance as Sublessee deems adequate. Sublessee acknowledges that • the property insurance to be maintained by Sublessor will not insure Sublessee's removable trade fixtures, furniture, equipment, inventory or other personal property. Nothing contained in this Paragraph 7.9 will limit Sublessee's liability under this Sublease.

8. Damage or Destruction.

8.1 Definitions.
"Premises Partial Damage" shall mean damage or destruction to the Premises, other than Sublessee-Owned Alterations and Utility Installations, the repair cost of which damage or destruction is less than fifty percent (50%) of the then Replacement Cost of the Premises (excluding Sublessee's Alterations and Utility Installations and Trade Fixtures) immediately prior to such damage or destruction. (b) "Premises Total Destruction" shall mean damage or destruction to the Premises, other than Sublessee's Alterations and Utility Installations, the repair cost of which damage or destruction is fifty percent (50%) or more of the then Replacement Cost of the Premises (excluding Sublessee's Alterations and Utility Installations and Trade Fixtures) immediately prior to such damage or destruction. In addition, if the Premises are located in a multi-tenant building, damage or destruction to the building, other than to Alterations and Utility Installations and Trade Fixtures of any lessees of the building, the cost of which damage or destruction is fifty percent (50%) or more of the then Replacement Cost (excluding Alterations and Utility Installations and Trade Fixtures of any lessees of the building) of the building shall, at the option of Sublessor, be deemed to be Premises Total Destruction.
"Insured Loss" shall mean damage or destruction to the Premises, other than Sublessee's Alterations and Utility Installations and Trade Fixtures, which was caused by an event covered by property insurance maintained by Sublessor irrespective of any deductible amounts or coverage limits involved. (d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Sublessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of applicable building codes, ordinances or laws, and without deduction for depreciation.
"Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 4.3, in, on, or under the Premises.
{13193/000000/01781257-7}
14 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C Premises Partial Damage - Insured Loss. If Premises Partial Damage that is an Insured Loss occurs, then Sublessor shall, at Sublessor's expense, repair such damage (but not Sublessee's Trade Fixtures or Sublessee-Owned Alterations and Utility Installations) as soon as reasonably possible and this Sublease shall continue in full force and effect. In the event, however, that there is a shortage of insurance proceeds and such shortage is due to the fact that, by reason of the unique nature of the improvements in the Premises, full replacement cost insurance coverage was not commercially reasonable and available, Sublessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Sublessee provides Sublessor with the funds to cover same, or satisfactory assurance thereof, within ten (10) days following receipt of written notice of such shortage and request therefore. If Sublessor receives said funds or satisfactory assurance thereof within said ten (10) day period, Sublessor shall complete them as soon as reasonably possible and this Sublease shall remain in full force and effect. If Sublessor does not receive such funds or assurance within said period, Sublessor may nevertheless elect by written notice to Sublessee within ten (10) days thereafter to make such restoration and repair as is commercially reasonable with Sublessor paying any shortage in proceeds, in which case (60) days following the occurrence of the damage or destruction. Unless otherwise agreed, Sublessee shall in no event have any right to reimbursement from Sublessor for any funds contributed by Sublessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 8.3 rather than Paragraph 8.2, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.

Partial Damage - Uninsured Loss. If Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Sublessee (in which event Sublessee shall make the repairs at Sublessee's expense and this Sublease shall continue in full force and effect), Sublessor may, at Sublessor's option, either (i) repair such damage as soon as reasonably possible at Sublessor's expense, in which event this Sublease shall continue in full force and effect, or (ii) give written notice to Sublessee within thirty (30) days after receipt by Sublessor of knowledge of the occurrence of such damage of Sublessor's desire to terminate this Sublease as of the date sixty (60) days following the date of such notice. In the event Sublessor elects to give such notice of Sublessor's intention to terminate this Sublease, Sublessee shall have the right within ten (10) days after the receipt of such notice to give written notice to Sublessor of Sublessee's commitment to pay for the repair of such damage totally at Sublessee's expense and without reimbursement from Sublessor. Sublessee shall provide Sublessor with the required funds or satisfactory assurance thereof within thirty (30) days following such commitment from Sublessee. In such event this Sublease shall continue in full force and effect, and Sublessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Sublessee does not give such notice and provide the funds or assurance thereof within the times specified above, this Sublease shall terminate as of the date specified in Sublessor's notice of termination.

Total Destruction. Notwithstanding any other provision hereof, if Premises Total Destruction occurs (including any destruction required by any authorized public authority, this Sublease shall terminate sixty (60) days following the date of such Premises Total Destruction, whether or not the damage or destruction is an Insured Loss or was caused by a negligent or willful act of Sublessee. In the event, however, that the damage or destruction was caused by Sublessee, Sublessor shall have the right to recover Sublessor's damages from Sublessee.

Damage Near End of Term. The foregoing provisions notwithstanding, if at any time during the last six (6) months of the Term of this Sublease there is damage for which the cost to repair exceeds one month's Base Rent, whether or not an Insured Loss, this Sublease shall terminate effective thirty (30) days following the date of occurrence of such damage unless otherwise agreed in writing by the Parties. If this Sublease is not terminated, the Parties' agreement shall govern the repair obligation.

8.6 Abatement of Rent; Sublessee's Remedies. In the event of (i) Premises Partial Damage or (ii) a Hazardous Substance Condition not caused by Sublessee, its employees, agents or invitees, the Base Rent and CAM Charges payable by Sublessee hereunder for the period during which such damage or condition, its repair, remediation or restoration continue, shall be abated in proportion to the degree to which Sublessee's use of the Premises is impaired but only to the extent of the proceeds of the Rental Value Insurance required to be maintained by Sublessee under Paragraph 7.1(d) received by Sublessor. Except for abatement of Base Rent and CAM Charges, as aforesaid, all other obligations of Sublessee hereunder shall be performed by Sublessee, and Sublessee shall have {13193/000000/01781257-7 }
15 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C no claim against Sublessor for any damage suffered by reason of any such damage, destruction, repair, remediation or restoration.

Hazardous Substance Conditions. If a Hazardous Substance Condition occurs, unless caused by Sublessee, its employees, agents or invitees (in which case Sublessee shall make the investigation and remediation thereof required by Applicable Requirements and this Sublease shall continue in full force and effect, but subject to Sublessor's rights under Paragraph 4.3 and Paragraph 11), Sublessor may, at Sublessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Sublessor's expense, in which event this Sublease shall continue in full force and effect, or (i) if the estimated cost to investigate and remediate such condition exceeds six (6) times the then monthly Base Rent or $25,000, whichever is less, give written notice to Sublessee within thirty (30) days after receipt by Sublessor of knowledge of the occurrence of such Hazardous Substance Condition of Sublessor's desire to terminate this Sublease as of the date sixty (60) days following the date of such notice. In the event Sublessor elects to give such notice of Sublessor's intention to terminate this Sublease, Sublessee shall have the right within ten (10) days after the receipt of such notice to give written notice to Sublessor of Sublessee's commitment to pay for the excess costs of (a) investigation and remediation of such Hazardous Substance Condition to the extent required by Applicable Requirements, over (b) an amount equal to six (6) times the then monthly Base Rent or $25,000, whichever is less. Sublessee shall provide Sublessor with the funds required of Sublessee or satisfactory assurance thereof within thirty (30) days following said commitment by Sublessee. In such event this Sublease shall continue in full force and effect, and Sublessor shall proceed to make such investigation and remediation as soon as reasonably possible after the required funds are available. If Sublessee does not give such notice and provide the required funds or assurance thereof within the time period specified above, this Sublease shall terminate as of the date specified in Sublessor's notice of Termination - Advance Payments. Upon termination of this Sublease pursuant to this Paragraph 8, Sublessor shall return to Sublessee any advance payment made by Sublessee to Sublessor and so much of Sublessee's Security Deposit as has not been, or is not then required to be, used by Sublessor under the terms of Waiver of Statutes. Sublessor and Sublessee agree that the terms of this Sublease shall govern the effect of any damage to or destruction of the Premises and the Project with respect to the termination of this Sublease and hereby waive the provisions of any present or future statute to the extent it is inconsistent herewith.

Utilities. Sublessee shall pay for all water, gas, salt water, heat, light, power, telephone, trash disposal, sewer service, fire protection and other utilities and services supplied to the Premises, by any utility or service provider, including without limitation, the City of Avalon, together with any taxes thereon. If any such services are not separately metered or charged to Sublessee, Sublessee shall pay a proportion (which may be more or less than Sublessee's Share set forth in Paragraph N of the Basic Sublease Provisions), to be determined by Sublessor, of all charges jointly metered or charged to Sublessor. Sublessor's reasonable and good faith determination of Sublessee's portion shall be conclusive and binding.

10. Assignment and Subletting.

10.1 Sublessor's Consent Required.

Sublessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "assign" or "assignment") or sublet or permit anyone other than Sublessee and its employees to use or occupy (collectively, "sublet or sublease") all or any part of Sublessee's interest in this Sublease or in the Premises without Sublessor's prior written consent. (b) A change in the control of Sublessee shall constitute an assignment requiring consent.

The transfer, on a cumulative basis, of twenty-five percent (25%) or more of the outstanding voting interests of Sublessee shall constitute a change in control for this purpose.

An assignment or sublease without consent shall, at Sublessor's option, be a Default curable after notice per Paragraph 11.1(d), or a noncurable Breach without the necessity of any notice and grace (13193/000000/01781257-7)
16 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C period. If Sublessor elects to treat such unapproved assignment or sublease as a noncurable Breach, Sublessor may either: (i) terminate this Sublease, or (ii) upon thirty (30) days written notice, increase the monthly Base Rent to one hundred ten percent (110%) of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, all fixed and non-fixed rental adjustments scheduled during the remainder of the Term shall be increased to one hundred ten percent (110%) of the scheduled adjusted rent. (d) Sublessee's remedy for any breach of this Paragraph 10.1 by Sublessor shall be limited to injunctive relief.

Each request for Sublessor's consent to an assignment or sublease shall be in writing, shall contain full information concerning the identity, business background, and financial condition (including current financial statements) of the proposed assignee or sublessee, shall contain all of the financial terms and conditions of the proposed assignment or sublease, shall describe the use to be made by the proposed assignee or sublessee and shall be accompanied by an administrative fee of $2,500 to compensate Sublessor for the costs incurred in reviewing the request. Sublessee shall also provide to Sublessor such information concerning the proposed assignment or sublease as Sublessor requests. Sublessor's receipt of the administrative fee and Sublessor's receipt and review of the information concerning the proposed assignment or sublease implies no obligation on the part of Sublessor to grant its consent to the proposed assignment or sublease. Without limiting Sublessor's absolute discretion to withhold consent to a proposed assignment or sublease, Sublessor may condition its consent, upon as determined by Sublessor, increasing the security deposit, and/or modifying other terms and conditions of the Sublease which Sublessor deems to be appropriate with respect to the use of the proposed assignee or sublessee.

10.2 Terms and Conditions Applicable to Assignment and Subletting. (a) Regardless of Sublessor's consent, any assignment or sublease shall not (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Sublessee under this Sublease, (ii) release Sublessee of any obligations hereunder, nor (iii) alter the primary liability of Sublessee for the payment of Base Rent and other sums due Sublessor hereunder or for the performance of any other obligations to be performed by Sublessee under this Sublease.

Sublessor may accept any rent or performance of Sublessee's obligations from any person other than Sublessee pending approval or disapproval of an assignment. Neither a delay in the approval nor disapproval of such assignment nor the acceptance of any rent for performance shall constitute a waiver or estoppel of Sublessor's right to exercise its remedies for the Default or Breach by Sublessee of any of the terms, covenants or conditions of this Sublease.
(c) The consent of Sublessor to any assignment or sublease shall not constitute a consent to any subsequent assignment or sublease by Sublessee or to any subsequent or successive assignment or sublease by the assignee or sublessee. However, Sublessor may consent to subsequent subleases and assignments of the sublease or any amendments or modifications thereto without notifying Sublessee or anyone else liable under this Sublease or the sublease and without obtaining their consent, and such action shall not relieve such persons from liability under this Sublease or the sublease. |
In the event of any Default or Breach of Sublessee's obligations under this Sublease, Sublessor may proceed directly against Sublessee, any Guarantor or anyone else responsible for the performance of the Sublessee's obligations under this Sublease, including any assignee or sublessee, without first exhausting Sublessor's remedies against any other person or entity responsible therefor to Sublessor, or any security held by Any assignee of, or sublessee under, this Sublease shall, by reason of accepting such assignment or entering into such sublease, be deemed, for the benefit of Sublessor, to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Sublessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Sublessor has specifically consented in {13193/000000/01781257-7}
17 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C (f) Notwithstanding anything to the contrary in this Sublease, in connection with a request for Sublessor's consent to an assignment or a "material sublease", as defined below, Sublessor shall have the right to elect to enter into a direct sublease with a proposed assignee or sublessee on terms and conditions satisfactory to Sublessor and to terminate this Sublease in toto (in the case of a proposed assignment or a sublease of more than fifty percent (50%) of the floor area of the Premises) or with respect to the part of the Premises proposed to sublet (in case of a proposed sublease of fifty percent (50%) or less of the floor area of the Premises). Such election shall be made by written notice to Sublessee and the Sublease termination or partial Sublease termination shall be effective as of the date stated in the notice. In the event of a partial Sublease termination, Base Rent and Sublessee's Share under this Sublease shall be reduced proportionately to the floor area of the remainder of the Premises. A "material sublease" is a sublease (i) which together with any other subleases comprises ten percent (10%) or more of the floor area of the Premises regardless of the term or (ii) for a term equal to all or substantially all of the remaining term of this Sublease at the time the sublease is made regardless of the size of sublet space. For the avoidance of doubt, a sublease which is not a 'material sublease' nevertheless requires the consent of Sublessor.

Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Sublessee of all or any part of the Premises and shall be deemed included in all subleases under this Sublease whether or not expressly incorporated therein:

Sublessee hereby assigns and transfers to Sublessor all of Sublessee's interest in all rentals and income arising from any sublease of all or a portion of the Premises heretofore or hereafter made by Sublessee, and Sublessor may collect such rent and income and apply same toward Sublessee's obligations under this Sublease; provided, however, that until a Breach (as defined in Paragraph 11.1) shall occur in the performance of Sublessee's obligations under this Sublease, Sublessee may, except as otherwise provided in this Sublease, receive, collect and enjoy the rents accruing under such sublease. Sublessor shall not, by reason of the foregoing provision or any other assignment of such sublease to Sublessor, nor by reason of the collection of the rents from a sublessee, be deemed liable to the sublessee for any failure of Sublessee to perform and comply with any of Sublessee's obligations to such sublessee under such sublease. Sublessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Sublessor stating that a Breach exists in the performance of Sublessee's obligations under this Sublease, to pay to Sublessor the rents and other charges due and to become due under the sublease. Sublessee shall rely upon any such statement and request from Sublessor and shall pay such rents and other charges to Sublessor without any obligation or right to inquire as to whether such Breach exists and notwithstanding any notice from or claim from Sublessee to the contrary. Sublessee shall have no right or claim against such sublessee, or, until the Breach has been cured, against Sublessor, for any such rents and other charges so paid by said sublessee to Sublessor.

In the event of a Breach by Sublessee in the performance of its obligations under this Sublease, Sublessor, at its option and without any obligation to do so, may require any sublessee to attorn to Sublessor, in which event Sublessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Sublessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any other prior defaults or breaches of such sublessor under such sublease.

Any matter or thing requiring the consent of the sublessor under a sublease shall also require the consent of Sublessor herein.
(d) No sublessee under a sublease approved by Sublessor shall further assign or sublet all or any part of the Premises without Sublessor's prior written consent.

Sublessor shall deliver a copy of any notice of Default or Breach by Sublessee to the sublessee, who shall have the right to cure the Default of Sublessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Sublessee for any such Defaults cured by the sublessee.
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18 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

11. Default; Breach; Remedies.

11.1 Default; Breach. Sublessor and Sublessee agree that if an attorney is consulted by Sublessor in connection with a Sublessee Default or Breach (as hereinatter defined), $500 is a reasonable minimum sum per such occurrence for legal services and costs in the preparation and service of a notice of Default, and that Sublessor may include the cost of such services and costs in said notice as rent due and payable to cure said default. A "Default" by Sublessee is defined as a failure by Sublessee to observe, comply with or perform any of the terms, covenants, conditions or rules applicable to Sublessee under this Sublease. A "Breach" by Sublessee is defined as the occurrence of any one or more of the following Defaults, and, where a grace period for cure after notice is specified herein, the failure by Sublessee to cure such Default prior to the expiration of the applicable grace period, and shall entitle Sublessor to pursue the remedies set forth in Paragraphs 11.2 and/or 11.3:
(a) The vacating of the Premises without the intention to reoccupy same, or the abandonment of the Premises.

Except as expressly otherwise provided in this Sublease, the failure by Sublessee to make any payment of Base Rent, Percentage Rent (if applicable), Security Deposit, or any other monetary payment required to be made by Sublessee hereunder, whether to Sublessor or a third party, as and when due, the failure by Sublessee to provide Sublessor with reasonable evidence of insurance or surety bond required under this Sublease, or the failure of Sublessee to fulfill any obligation under this Sublease which endangers or threatens life or property, where such failure continues for a period of three (3) days following written notice thereof by or on behalf of Sublessor to Sublessee. THE ACCEPTANCE BY SUBLESSOR OF A PARTIAL PAYMENT OF RENT OR

SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF SUBLESSOR'S RIGHTS, INCLUDING SUBLESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES. (c) Except as expressly otherwise provided in this Sublease, the failure by Sublessee to provide Sublessor with reasonable written evidence (in duly executed original form, if applicable) of (i) compliance with Applicable Requirements per Paragraph 4.4, (i) the service contract required under Paragraph 6.1(b), (iii) the rescission of an unauthorized assignment or subletting per Paragraph 10.1, (iv) an Offset Statement per Paragraph 44.1, (v) the subordination or non-subordination of this Sublease per Paragraph 26, (vi) the execution of any document requested under Paragraph 37, or (vii) any other documentation or information which Sublessor may reasonably require of Sublessee under the terms of this Sublease, where any such failure continues for a period of ten (10) days following written notice to Sublessee.
(d)
commission of waste, act or acts constituting public or private nuisance, and/or an illegal activity on the Premises by Sublessee, where such actions continue for a period of three (3) business days following written notice to Sublessee.

In the event that Sublessee commits waste, a nuisance or an illegal activity a second time, then Sublessor may elect to treat such conduct as a non-curable Breach rather than a Default. (e) A Default by Sublessee as to the terms, covenants, conditions or provisions of this Sublease, or of the rules adopted under Paragraph 35 hereof that are to be observed, complied with or performed by Sublessee, other than those described in Paragraphs 11.1(a), (b) or (c), above, where such Default continues for a period of ten (10) days after written notice thereof by or on behalf of Sublessor to Sublessee; provided, however, that if the nature of Sublessee's default is such that more than ten (10) days are reasonably required for its cure, then it shall not be deemed to be a Breach of this Sublease by Sublessee if Sublessee commences such cure within said ten (10) day period and thereafter diligently prosecutes such cure to completion.

The occurrence of any of the following events: (i) the making by Sublessee of any general arrangement or assignment for the benefit of creditors; (ii) Sublessee's becoming a "debtor" as defined in 11 U.S. Code $101 or any successor statute thereto (unless, in the case of a petition filed against Sublessee, the same is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Sublessee's assets located at the Premises or of Sublessee's interest in this Sublease, where possession is not restored to Sublessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Sublessee's assets located at the Premises or of Sublessee's interest in this Sublease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this (13193/000000/01781257-7}
19 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C Subparagraph 11.1(f) is contrary to any applicable law, such provision shall be of no force or effect, and shall not affect the validity of the remaining provisions.
(g) The discovery by Sublessor that any financial statement of Sublessee, given to Sublessor by Sublessee, was materially false.
(h) Breach by a Guarantor of any guaranty of Sublessee's obligations under this Sublease or the death of a Guarantor unless another Guarantor reasonably acceptable to Sublessor is substituted in place of the deceased Guarantor within sixty (60) days after the death of the deceased Guarantor. (i) The occurrence of a default or breach on the part of Sublessee under any other lease, sublease, license, sublicense or any other material agreement between Sublessor or any of its parent or subsidiary entities and Sublessee (collectively "other agreement"), after giving effect to any applicable notice and cure provisions in such other agreement. Such default or breach under such other agreement shall constitute a non- curable Breach of this Sublease."
The notices permitted to be given by Sublessor under this Paragraph 11.1 shall constitute, and shall not be in addition to, the notices required by California Code of Civil Procedure $1161.

11.2 Remedies. If Sublessee fails to perform any affirmative duty or obligation of Sublessee under this Sublease, within ten (10) days after written notice to Sublessee (or in case of an emergency, without notice), Sublessor may at its option (but without obligation to do so), perform such duty or obligation on Sublessee's behalf, including, but not limited to, the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Sublessor shall be due and payable by Sublessee to Sublessor upon invoice therefor. If any check given to Sublessor by Sublessee shall not be honored by the bank upon which it is drawn, Sublessor, at its own option, may require all future payments to be made under this Sublease by Sublessee to be made only by cashier's check. In the event of a Breach of this Sublease by Sublessee (as defined in Paragraph 11.1), with or without further notice or demand, and without limiting Sublessor in the exercise of any right or remedy which Sublessor may have by reason of such Breach, Sublessor may:

Terminate Sublessee's right to possession of the Premises by any lawful means, in which case this Sublease and the Term hereof shall terminate and Sublessee shall immediately surrender possession of the Premises to Sublessor. In such event Sublessor shall be entitled to recover from Sublessee: (i) the worth at the time of the award of the unpaid rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Sublessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of such rental loss that the Sublessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Sublessor for all the detriment proximately caused by the Sublessee's failure to perform its obligations under this Sublease or which in the ordinary course of things would be likely to result therefrom, including, but not limited to, the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Sublessor in connection with this Sublease applicable to the unexpired Term of this Sublease. The worth at the time of award of the amount referred to in provision (iv) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank District in which the Premises are located at the time of award plus one percent (1%). Efforts by Sublessor to mitigate damages caused by Sublessee's Default or Breach of this Sublease shall not waive Sublessor's right to recover damages under this Paragraph 11.2. If termination of this Sublease is obtained through the provisional remedy of unlawful detainer, Sublessor shall have the right to recover in such proceeding the unpaid rent and damages as are recoverable therein, or Sublessor may reserve the right to recover all or any part thereof in a separate suit for such rent and/or damages.

Continue the Sublease and Sublessee's right to possession in effect (under California Civil Code §1951.4) after Sublessee's Breach and recover the rent as it becomes due. If Sublessor elects this remedy, Sublessee shall have the right to assign this Sublease or sublet the Premises with Sublessor's prior written (13193/000000/01781257-7)
20 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C consent, not to be withheld unreasonably, notwithstanding any other provision of this Sublease to the contrary.

Sublessor and Sublessee agree that the limitations on assignment and subletting in this Sublease are reasonable.

Acts of maintenance or preservation, efforts to relet the Premises, or the appointment of a receiver to protect the Sublessor's interest under this Sublease, shall not constitute a termination of the Sublessee's right to possession.

Pursue any other remedy now or hereafter available to Sublessor under the laws or judicial decisions of the state wherein the Premises are located. (d) The expiration or termination of this Sublease and/or the termination of Sublessee's right to possession shall not relieve Sublessee from liability under any indemnity provisions of this Sublease as to matters occurring or accruing during the Term hereof or by reason of Sublessee's occupancy of the Premises.

11.3 Inducement Recapture in Event of Breach. Any agreement by Sublessor for free or abated rent or other charges applicable to the Premises, or for the giving or paying by Sublessor to or for Sublessee of any cash or other bonus, inducement or consideration for Sublessee's entering into this Sublease, all of which concessions are hereinafter referred to as "Inducement Provisions" shall be deemed conditioned upon Sublessee's full and faithful performance of all of the terms, covenants and conditions of this Sublease to be performed or observed by Sublessee during the Term hereof as the same may be extended. Upon the occurrence of a Breach (as defined in Paragraph 11.1) of this Sublease by Sublessee, any such Inducement Provision shall automatically be deemed deleted from this Sublease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Sublessor under such an Inducement Provision shall be immediately due and payable by Sublessee to Sublessor, and recoverable by Sublessor, as additional rent due under this Sublease, notwithstanding any subsequent cure of said Breach by Sublessee. The acceptance by Sublessor of rent or the cure of the Breach which initiated the operation of this Paragraph 11.3 shall not be deemed a waiver by Sublessor of the provisions of this Paragraph 11.3 unless specifically so stated in writing by Sublessor at the time of

11.4 Breach by Sublessor. Sublessor shall not be deemed in breach of this Sublease unless Sublessor fails within a reasonable time to perform an obligation required to be performed by Sublessor. For purposes of this Paragraph 11.4, a reasonable time shall in no event be less than thirty (30) days after receipt by Sublessor, and by any Lender(s) whose name and address shall have been furnished to Sublessee in writing for such purpose, of written notice specifying wherein such obligation of Sublessor has not been performed; provided, however, that if the nature of Sublessor's obligation is such that more than thirty (30) days after such notice are reasonably required for its performance, then Sublessor shall not be in breach of this Sublease if performance is commenced within such thirty (30) day period and thereafter diligently pursued to completion.

12. Compliance with Master Lease

12.1 Compliance with Master Lease by Sublessee. Sublessee shall not do or permit anything to be done by its agents, employees or invitees which would constitute a breach of the covenants or obligations of Sublessor under the Master Lease, provided that Sublessee shall not be in breach of this Sublease unless Sublessor shall have previously provided Sublessee with a copy of the Master Lease or other written notice of the Master Lease provision and Sublessee shall have thereafter breached, or failed to cure its noncompliance with, such provisions.

Compliance with Master Lease by Sublessor. Sublessor shall observe and perform all of the provisions of the Master Lease to be observed or performed in its part and shall not default under the Master Lease beyond any applicable cure period. Sublessor shall also take all action reasonably necessary to enforce the provisions of the Master Lease against the Master Lessor whenever the rights or interests of Sublessee under this Sublease are affected.

12.3 Termination of Master Lease. Upon a termination of the Master Lease, Sublessee shall attorn to the Master Lessor and Sublessee's occupancy of the Premises shall continue on all terms and conditions set forth in this Sublease.
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21 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (all of which are herein called "condemnation"'), this Sublease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than ten percent (10%) of the floor area of the Premises is taken by condemnation, Sublessor or Sublessee may, at its option, (to be exercised in writing within ten (10) days after the condemning authority shall have taken possession) terminate this Sublease as of the date the condemning authority takes such possession. If Sublessor or Sublessee does not terminate this Sublease in accordance with the foregoing, this Sublease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in the same proportion as the rentable floor area of the Premises taken bears to the total rentable floor area of the Premises.

Any award for the taking of all or any part of the Premises under the powers of eminent domain or any payment made under threat of the exercise of such power shall be the property of Sublessor, whether such award shall be made as compensation for diminution of value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Sublessee shall be entitled to any compensation separately awarded to Sublessee for Sublessee's relocation expenses and/or loss of Sublessee's Trade Fixtures or goodwill. In the event that this Sublease is not terminated by reason of such condemnation, Sublessor shall repair any damage to the Premises caused by such condemnation. A taking of any part of the Premises under the power of eminent domain on a temporary basis of less than one (1) year will not constitute a condemnation. During such temporary taking, all of the provisions of this Sublease will remain in full force and effect as though the temporary taking had not occurred, except that (i) Base Rent and Cam Charges (but not Percentage Rent) will be abated in the proportion that Sublessee's ability to use the Premises has been materially impaired and (il) Sublessee's performance of other obligations under this Agreement is excused to the extent prevented by the terms of the temporary taking. During the temporary taking, Percentage Rent will be due to the extent Sublessee's Gross Sales exceed the reduced Base Rent. All compensation payable by the condemning authority will be the sole property of Sublessor, whether paid as rent, fees, damages or otherwise, except for any award expressly made for the interruption of Sublessee's business, loss of goodwill, or the taking or use of Sublessee's personal property. If the temporary taking continues for more than one (1) year, it will constitute a condemnation under the provisions of this Paragraph 13.

Sublessor's Liability. The term "Sublessor" as used herein shall mean the owner or owners at the time in question of the leasehold estate under the Master Lease. In the event of a transfer of Sublessor's title or interest in the Premises or in this Sublease, Sublessor shall deliver to the transferee (in cash or by credit) any unused Security Deposit held by Sublessor, whereupon the prior Sublessor shall be relieved of all liability with respect to the obligations and/or covenants under this Sublease thereafter to be performed by the Sublessor. Subject to the foregoing, the obligations and/or covenants in this Sublease to be performed by the Sublessor shall be binding only upon the Sublessor as hereinabove defined.

Severability. The invalidity of any provision of this Sublease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof.

16. Interest on Past-Due Obligations. Any monetary payment due Sublessor hereunder, other than late charges, not received by Sublessor within ten (10) days following the date on which it was due, shall bear interest from the date due at the "prime rate" of interest as published in The Wall Street Journal on the date the payment became due or, if not published on that date, on the next publication date, plus four percent (4%) per annum, but not exceeding the maximum rate allowed by law, in addition to the late charge provided for in Paragraph 3.4.

Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Sublease.

Rent Defined. All monetary obligations of Sublessee to Sublessor under the terms of this Sublease except obligations regarding the Security Deposit are deemed to be, and are referred to collectively in the Sublease as, "rent."
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22 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

19. Notices.

Notice Requirements. All notices required or permitted by this Sublease shall be in writing and may be delivered in person (by hand or by messenger or courier service) or may be sent by certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 19.1. The addresses noted adjacent to a Party's signature on this Sublease shall be that Party's address for delivery or mailing of notice purposes. Either Party may by written notice to the other specify a different address for notice purposes, except that upon Sublessee's taking possession of the Premises, the Premises shall constitute Sublessee's address for the purpose of mailing or delivering notices to Sublessee. A copy of all notices required or permitted to be given to Sublessor hereunder shall be concurrently transmitted to such party or parties at such addresses as Sublessor may from time to time hereafter designate by written notice to Sublessee.

Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given twenty-four (24) hours after delivery of the same to the United States Postal Service or courier. If notice is received on a Saturday or a Sunday or a legal holiday, it shall be deemed received on the next business day.

Waivers. No waiver by Sublessor of the Default or Breach of any term, covenant or condition hereof by Sublessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Sublessee of the same or any other term, covenant or condition hereof. Sublessor's consent to, or approval of, any such act shall not be deemed to render unnecessary the obtaining of Sublessor's consent to, or approval of, any subsequent or similar act by Sublessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Sublease requiring such consent. Regardless of Sublessor's knowledge of a Default or Breach at the time of accepting rent, the acceptance of rent by Sublessor shall not be a waiver of any Default or Breach by Sublessee of any provision hereof. Any payment given Sublessor by Sublessee may be accepted by Sublessor on account of monies or damages due Sublessor, notwithstanding any qualifying statements or conditions made by Sublessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Sublessor at or before the time of deposit of such payment.

21. Non-Recording. Neither this Sublease nor any memorandum hereof shall be recorded.

Holdover. Sublessee has no right to hold over after the end of the Term of this Sublease. Any holdover shall not operate as a renewal of this Sublease, but shall, if Sublessor consents to the holdover, create a month-to- the Term of this Sublease shall be paid in advance on the first day of each month. Any holdover without Sublessor's written consent shall, at Sublessor's election, constitute a tenancy at sufferance.

23. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

Covenants and Conditions; Construction of Agreement. All provisions of this Sublease to be observed or performed by Sublessee are both covenants and conditions. In construing this Sublease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Sublease. Whenever required by the context, the singular shall include the plural and vice versa. This Sublease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it.

Binding Effect; Choice of Law. This Sublease shall be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws of the State of California. Any litigation between the Parties hereto concerning this Sublease shall be initiated in Los Angeles County. (13193/000000/01781251-7}
23 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C

26. Subordination; Attornment.

26.1 Subordination. This Sublease shall, at the option of a mortgagee of Sublessor's interest in the Premises ("Lender"), be subject and subordinate to the Master Lease, any mortgage, deed of trust, or other hypothecation or security device (collectively, "Security Device"), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof.

Sublessee agrees that the Lenders holding any such Security Device shall have no duty, liability or obligation to perform any of the obligations of Sublessor under this Sublease, but that in the event of Sublessor's default with respect to any such obligation, Sublessee will give any Lender whose name and address have been furnished Sublessee in writing for such purpose notice of Sublessor's default pursuant to Paragraph 11.4. If any Lender shall elect to have this Sublease superior to the lien of its Security Device and shall give written notice thereof to Sublessee, this Sublease shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.

26.2 Attornment. Sublessee agrees to attorn to a Lender who acquires ownership of the Premises by reason of a foreclosure or termination of a Security Device at the option of such Lender or other party, in which case with respect to events occurring prior to acquisition of ownership, (ii) be subject to any offsets or defenses which Sublessee might have against any prior Sublessor, or (iii) be bound by prepayment of more than one (1) month's rent.

26.3 Self-Executing. The agreements contained in this Paragraph 26 shall be effective without the execution of any further documents; provided, however, that upon written request from Sublessor or a Lender in connection with a sale, financing or refinancing of Premises, Sublessee and Sublessor shall execute such further writings as may be reasonably required to separately document any such subordination or non-subordination, or attornment as is provided for herein.

27. Attorneys' Fees. If any Party brings an action or proceeding to enforce the terms hereof or declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term "Prevailing Party" shall include, without limitation, a Party who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party of its claim or defense. The attorneys' fee award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys' fees reasonably incurred. Sublessor shall be entitled to attorneys' fees, costs and expenses incurred in preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach.

Sublessor's Access; Showing Premises; Repairs. Sublessor and Sublessor's agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times for the purpose of showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Premises or to the Project, as Sublessor may reasonably deem necessary. Sublessor may, at any time, place on or about the Premises or Project any ordinary "For Sale" signs and Sublessor may at any time during the last one hundred eighty (180) days of the Term hereof place on or about the Premises any ordinary "For Lease" signs. All such activities of Sublessor shall be without abatement of rent or liability to Sublessee.

Auctions. Sublessee shall not conduct, nor permit to be conducted, either voluntarily or involuntarily, any auction upon the Premises without first having obtained Sublessor's prior written consent.

30. Signs. Sublessee shall not place any sign upon the exterior of the Premises or the Project, except that Sublessee may, with Sublessor's prior written consent, install (but not on the roof) such signs as are reasonably required to advertise Sublessee's own business so long as such signs are in a location designated by Sublessor, comply with Applicable Requirements and are satisfactory to Sublessor in terms of quality, style, size and materials.

The installation of any sign on the Premises by or for Sublessee shall be subject to the provisions of Paragraph 6 (Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations). Unless otherwise expressly agreed (13193/000000/01781257-7}
24 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C herein, Sublessor reserves all rights to the use of the roof of the Project, and the right to install advertising signs on the Project, including the roof, which do not unreasonably interfere with the conduct of Sublessee's business; Sublessor shall be entitled to all revenues from such advertising signs.

Termination; Merger. Unless specifically stated otherwise in writing by Sublessor, the voluntary or other surrender of this Sublease by Sublessee, the mutual termination or cancellation hereof, or a termination hereof by Sublessor for Breach by Sublessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, Sublessor shall, in the event of any such surrender, termination or cancellation, have the option to continue any one or all of any existing subtenancies. Sublessor's failure within ten (10) days following any such event to make a written election to the contrary by written notice to the holder of any such lesser interest, shall constitute Sublessor's election to have such event constitute the termination of such interest.

32. Consents.

Unless expressly provided otherwise herein, wherever in this Sublease the consent of Sublessor is required, Sublessor's satisfaction is required, or Sublessor's judgment or discretion are to be exercised, such matter shall be within Sublessor's sole and absolute discretion. Sublessor's actual reasonable costs and expenses (including, but not limited to, architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by Sublessee for any Sublessor consent pertaining to this Sublease or the Premises, including, but not limited to, consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Sublessee to Sublessor upon receipt of an invoice and supporting documentation therefor. Sublessor may, as a condition to considering any such request by Sublessee, require that Sublessee deposit with Sublessor an amount of money reasonably calculated by Sublessor to represent the cost Sublessor will incur in considering and responding to Sublessee's request. Any unused portion of said deposit shall be refunded to Sublessee without interest. The administrative fee required by Paragraph 10.1(e) is not subject to this Paragraph 32(a). Sublessor's consent to any act, assignment of this Sublease or subletting of the Premises by Sublessee shall not constitute an acknowledgment that no Default or Breach by Sublessee of this Sublease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Sublessor at the time of such consent.

All conditions to Sublessor's consent authorized by this Sublease are acknowledged by Sublessee as being reasonable. The failure to specify herein any particular condition to Sublessor's consent shall not preclude the imposition by Sublessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given.

33. Quiet Possession. Upon payment by Sublessee of the rent for the Premises and the performance of all of the covenants, conditions and provisions on Sublessee's part to be observed and performed under this Sublease, Sublessee shall have quiet possession of the Premises for the entire Term hereof subject to all of the provisions of this Sublease.

34. Days. As used herein the word "days" means calendar days unless "Business Days" is specified. "Business Days" means days on which the New York Stock Exchange or successor exchange is open for trading.

Rules and Regulations. Sublessee agrees that it will abide by, and keep and observe all reasonable rules and regulations ("Rules and Regulations") which Sublessor may make from time to time for the management, safety, care, and cleanliness of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other occupants or lessees of the Project and their invitees.

Security Measures. Sublessee hereby acknowledges that the rental payable to Sublessor hereunder does not include the cost of guard service or other security measures, and that Sublessor shall have no obligation whatsoever to provide same. Sublessee assumes all responsibility for the protection of the Premises, Sublessee, its agents and invitees and their property from the acts of third parties.

Reservations. Sublessor reserves the right, from time to time, to grant, without the consent or joinder of Sublessee, such easements, rights of way, utility raceways, maps, restrictions and dedications that Sublessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights of way, (13193/000000/01781257-73
25 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C utility raceways, maps, restrictions and dedications do not unreasonably interfere with the use of the Premises by Sublessee. Sublessee agrees to sign any documents reasonably requested by Sublessor to effectuate any such easements, rights of way, utility raceways, maps, restrictions and dedications. Sublessor also reserves (i) the right of ingress and egress through the Premises to other parts of the Project, (i) the exclusive use of all exterior walls and roof of the Project, (iii) the rights to install, maintain, replace and use pipes, ducts, conduits, and wires through the Premises, and (iv) space for shaft ways, hallways, stairs and the like substantially as presently located.

Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment "under protest" and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay under the provisions of this Sublease.

Authority. If Sublessee is a corporation, trust, general or limited partnership, limited liability company or other form of business entity:
each individual executing this Sublease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Sublease on its behalf; and Sublessee shall, within thirty (30) days after request by Sublessor, deliver to Sublessor evidence satisfactory to Sublessor of such authority.

Conflict. Any conflict between the printed provisions of this Sublease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions.

Offer. Preparation of this Sublease by either Sublessor or Sublessee or Sublessor's agent or Sublessee's agent and submission of same to Sublessee or Sublessor shall not be deemed an offer to lease. This Sublease is not intended to be binding until executed and delivered by all Parties hereto.

42. Amendments. This Sublease may be modified only in writing, signed by the Parties in interest at the time of the modification. The Parties shall amend this Sublease from time to time to reflect any adjustments that are made to the Base Rent or other rent payable under this Sublease. As long as they do not materially change Sublessee's obligations hereunder, Sublessee agrees to make such reasonable non-monetary modifications to this Sublease as may be reasonably required by an institutional insurance company or pension plan Lender in connection with the obtaining of normal financing or refinancing of the property of which the Premises are a part.

43. Multiple Parties. Except as otherwise expressly provided herein, if more than one person or entity is named herein as Sublessee, the obligations of such multiple parties shall be the joint and several responsibility of all persons or entities named herein as such Sublessee, and each named Sublessee irrevocably constitutes and appoints each other named Sublessee as his attorney-in-fact and agent for all purposes related to this Sublease, including

44. Miscellaneous.

44.1 Offset Statement.

Sublessee shall at any time and from time to time upon not less than ten (10) days' prior written notice from Sublessor execute, acknowledge and return to Sublessor a written statement in form as requested by Sublessor:

Certifying that this Sublease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Sublease, as so modified, is in full force and effect) and the dates to which the Base Rent and other charges are paid, if any. {13193/000000/01781257-7}
26 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C (ii) Acknowledging that there are not, to Sublessee's knowledge, any uncured defaults on the part of Sublessor hereunder, or specifying such defaults if any are claimed. (iii) Stating the amount of any security deposit or last month's rent deposit; and (iv) Containing such other information concerning the Sublease as Sublessor may request.

Any such statement may be relied upon by any prospective purchaser or encumbrancer of the Premises or of all or any portion of the real property of which the Premises are a part. (b) Sublessee's failure to deliver such statement within such time shall be conclusive upon Sublessee:
(1) That this Sublease is in full force and effect, without modification except as may be represented by Sublessor;
(ii) That there are no uncured defaults in Sublessor's performance; (iii) That not more than one month's Base Rent has been paid in advance; and (iv) That all other statements contained in the certificate requested by Sublessor are true and correct.

44.2 Health and Safety. Sublessee covenants at all times during the Term of this Sublease to comply with the requirements of the Occupational Safety and Health Act of 1970, 29 U.S.C. §651 et seq., and any analogous legislation in California (collectively, the "Act"), to the extent that the Act applies to the Premises and any activities thereon. Without limiting the generality of the foregoing, Sublessee covenants to maintain all working areas, all machinery, structures, electrical facilities and the like upon the Premises in a condition that fully complies with the requirements of the Act, including such requirements as would be applicable with respect to agents, employees or contractors of Sublessor who may from time to time be present upon the Premises, and Sublessee agrees to indemnify and hold harmless Sublessor from any liability, claim or damages arising as a result of a Breach of the foregoing covenant and from all costs, expenses and charges arising therefrom including, without limitation, attorneys' fees and court costs incurred by Sublessor in connection therewith, which indemnity shall survive the expiration or termination of this Sublease.

44.3 Water Allocations. All water and other utility allocations available with respect to Sublessee's use and occupancy of the Premises are, and upon termination of this Sublease shall remain, Sublessor's sole and exclusive property, Sublessee hereby irrevocably assigning to Sublessor all of lessee's rights and interest in and to such allocations.

44.4 No Easements for Light or Air. Any diminution or shutting off of light, air or view by any improvement made on lands adjacent to the Premises, whether or not owned by Sublessor, shall in no way affect this Sublease or impose any liability on Sublessor.

44.5 Access. Disclosure pursuant to California Civil Code Section 1938(e): "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises." If Sublessee requests a CASp inspection of the Premises, Sublessee shall, at its cost, retain a CASp approved by Sublessor (provided that Sublessor may designate the CASp, at Sublessor's option) to perform the inspection of the Premises at a time agreed upon by the parties. Sublessee shall provide Sublessor with a copy of any report or (13193/000000/01781257-7}
27 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C certificate issued by the CASp (the "CASp Report") and Sublessee shall, at its cost, promptly complete any modifications necessary to correct violations of construction related accessibility standards identified in the CASp Report, notwithstanding anything to the contrary in this Lease. Sublessee agrees to keep the information in the CASp Report confidential except as necessary for the Sublessee to complete such modifications.

Covenant of Continuous Operation. Whether or not Percentage Rent is payable under this Sublease, Sublessee shall continuously operate and use the Premises for the uses specified in this Sublease. If Percentage Rent is payable, Sublessee shall continuously merchandise the Premises as specified in Exhibit B attached hereto.

Notwithstanding the foregoing the Sublessee may, with the prior written approval of Sublessor, cease operations for a period of not more than seven (7) consecutive days or in the aggregate not more than fourteen (14) days during any consecutive twelve (12) month period during the Term of this Sublease. The failure of the Sublessee to strictly comply with this covenant shall constitute a material default under this Sublease and, if such default is not cured within a period of three (3) days after written notice thereof from Sublessor to Sublessee, Sublessor may exercise any of the rights or remedies under Paragraph 11.2 above. Any such subsequent default within one (1) year shall be deemed a non-curable Breach of this Sublease.

46. Additional Termination Rights.

Development. This Sublease shall be terminable upon not less than one hundred eighty (180) days' written notice to Sublessee if Sublessor has commenced a development project with respect to any part of the land constituting the Premises or on which the Premises or Project, are located. For purposes of this paragraph, a development project shall not be deemed to have commenced until the first to occur of the following: (i) Sublessor's execution of a ground lease, joint venture agreement, financing agreement, letter of intent, or other agreement with a third party which contemplates the development of said land, whether or not such lease, agreement or letter of intent is legally binding or is subject to future conditions, or (ii) the submission to a governmental agency or authority of any plan or proposal (including, without limitation, a tentative subdivision or parcel map) regarding the development of said land. As used in this paragraph, the terms "development project" and "development" include without limitation, each of the following: (i) a change in the use of said land; (i) a substantial renovation or demolition of the existing improvements located on the land; and (il) the construction of additional or replacement improvements on the land, whether or not the development project is to be undertaken by Sublessor. Sublessor shall have complete and absolute discretion in electing to commence a development project and to terminate this Sublease, regardless of the economic viability of the development project, the potential for successfully completing the development project, or any other considerations involving the commercial reasonableness of the development project, or other objective criteria. Sublessor may exercise that discretion in a fully subjective and arbitrary manner and shall not be subject to any standard of objectivity or reasonableness in the exercise of that discretion. The notice of termination may be given at any time after the development project commences and prior to the abandonment of the development project. The abandonment of the development project after a notice of termination of this Sublease has been given pursuant to this paragraph shall not affect the validity of the termination. Sublessee acknowledges and agrees (i) that Sublessor has no obligation to apprise Sublessee at any time as to Sublessee's intentions with respect to the land or the Premises or Project, (ii) that Sublessee cannot rely upon Sublessor's renewing or extending the Term of this Sublease, and (iii) that under no circumstances will Sublessee be entitled to compensation of any kind or nature, including, without limitation, the payment of relocation expenses or the furnishing of other premises, in connection with Sublessor's exercise of the foregoing termination right or in connection with an election by Sublessor not to renew or extend the Term of this Sublease for any reason.

Notwithstanding the foregoing, Sublessor agrees that if, at the time Sublessee submits to Sublessor plans for remodeling the Premises and notifies Sublessor at the time of submission that such remodeling will entail an expenditure by Sublessee of $100,000 or more, Sublessor has in fact determined to commence a development project before the expiration date of the stated Term of this Sublease, or any renewal or extension thereof, Sublessor will apprise Sublessee of such fact at such time, if any, as Sublessor grants its written consent to the remodeling.

46.2 Sublessee's Financial Condition.
(a) Financial Information. Within one hundred twenty (120) days after the end of each fiscal year of Sublessee during the Term of this Sublease, Sublessee shall furnish to Sublessor a balance sheet, income statement and statement of changes in financial position for the business conducted on the Premises as of and for the {13193/000000/01781257-7 }
28 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C fiscal year then ended ("financial statements"). The financial statements shall be true and correct in all material respects and shall fairly present the financial condition of Sublessee's business at year end. The financial statements shall be prepared in conformance with generally accepted accounting principles consistently applied except as may be noted in the report of the accountant accompanying the financial statements. If Sublessee has audited financial statements, the financial statements furnished to Sublessor shall be audited; otherwise the financial statements shall be prepared on a compilation or review basis by a public accountant or certified public accountant. Sublessee also shall furnish to Sublessor such other financial information concerning Sublessee and Sublessee's business as Sublessor may from time to time request, said information to be furnished within thirty (30) days of Sublessor's request. Without limiting the generality of the preceding sentence, Sublessor may request quarterly or other periodic balance sheets or income statements.
(b) Change in Sublessee's Financial Condition. If at any time during the Term of this Sublease, Sublessor determines that a material adverse change in the financial condition of Sublessee or Sublessee's business has occurred or is likely to occur, and if in Sublessor's reasonable judgment such change (i) could result in a decrease of more than twenty percent (20%) in the annualized Base Rent and/or Percentage Rent, if any, due Sublessor under this Sublease for the current lease year or for the next succeeding lease year (in either case to be compared to the last completed lease year before the occurrence of the change) or (ii) otherwise could adversely affect Sublessee's ability to perform its obligations under this Sublease, Sublessor shall have the right, at Sublessor's option upon written notice to Sublessee, either to terminate this Sublease forthwith or to convert the Term of this • Sublease to a month to month tenancy, terminable upon thirty (30) days' notice by either party, on and subject to all of the other terms and conditions of this Sublease.

Limitation on Recourse; Waiver of Jury Trial. As a material part of the consideration to Sublessor under this Sublease:

Sublessee agrees to look solely to Sublessor's interest in the Premises and the real property of which the Premises are a part for the recovery of any monetary judgments against Sublessor and further agrees that neither Sublessor nor any of Sublessor's past, present or future shareholders, directors, officers, agents or employees (collectively called "Sublessor affiliates) shall have any personal liability to Sublessee with respect to matters arising from or in any way related to this Sublease, the Sublessor Sublessee relationship between the parties or to Sublessee's use or occupancy of the Premises or the real property of which the Premises are a part. Sublessee further agrees that no Sublessor affiliate shall be named as a party defendant in any action brought by or on behalf of Sublessee; and
Sublessor and Sublessee each hereby waives all rights to a trial by jury of any action, proceeding or cross complaint arising from or in any way related to this lease, the landlord-tenant relationship between the parties or to Sublessee's use or occupancy of the Premises or the real property of which the Premises are a part.

SUBLESSOR AND SUBLESSEE HAVE CAREFULLY READ AND REVIEWED THIS SUBLEASE AND

EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS SUBLEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE

THAT, AT THE TIME THIS SUBLEASE IS EXECUTED, THE TERMS OF THIS SUBLEASE ARE

COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF SUBLESSOR AND SUBLESSEE WITH RESPECT TO THE PREMISES.

48. Force Majeure. Any prevention, delay, or stoppage due to strikes; lockouts; labor disputes; acts of God; inability to obtain labor or materials or reasonable substitutes therefor; governmental restrictions, regulations, or controls; judicial orders; enemy or hostile governmental action; terrorism; civil commotion; pandemic or epidemic; fire or other casualty; and other causes (except financial) beyond the reasonable control of the party obligated to perform ("Force Majeure") will excuse the performance by that party for a period equal to the prevention, delay, or stoppage, except the obligations imposed with regard to rent to be paid by Sublessee under this Sublease, provided the party whose performance is to be excused has given the other party written notice of the occurrence of the Force Majeure event within twenty (20) days after it occurs.

Confidentiality. Sublessee agrees that the terms of this Sublease are confidential and constitute proprietary information of Sublessor. Disclosure of the terms of this Sublease could adversely affect the ability of Sublessor to (13193/000000/01781257-7}
29 DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C negotiate with Sublessees of Sublessor's other Avalon properties. Sublessee agrees that neither it nor its members, shareholders, partners, officers, directors, employees, agents, or attorneys, shall disclose the terms and conditions of this Sublease to any other person without the prior written consent of Sublessor or except under a court order of competent jurisdiction; provided that Sublessee may disclose the terms of this Sublease to its attorneys, to its independent accountants who review its respective financial statements or prepare its tax returns, to any prospective transferee of all or any portion of Sublessee's interests under this Sublease (including a prospective sublessee or assignee of Sublessee) provided such prospective transferee enters into a confidentiality agreement reasonably satisfactory to Sublessor, to any governmental entity, agency, or person to whom disclosure is required by applicable law, regulation, or duty of diligent inquiry, and in connection with any action brought to enforce the terms of this Sublease, on account of the Breach or alleged Breach of this Sublease or to seek a judicial determination of the rights or obligations of the parties under this Sublease. This confidentiality covenant will survive the expiration or earlier termination of this Sublease.

Survival. In addition to the provisions of this Sublease which are expressly stated to survive the expiration or earlier termination of this Sublease, all other provisions which must survive in order to give them their intended effect shall so survive.

51. Exhibits. All Exhibits hereto are incorporated by reference herein and are part of this Sublease.

Counterparts; Signatures. This Sublease may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. The words "execution," "signed," "signature," and words of like import in this Sublease or in any other certificate, agreement or document related to this Amendment shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, "pdf," "tif" or "jpg") and other electronic signatures (including without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based recordkeeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transaction Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.

The Parties hereto have executed this Sublease at the place and on the dates specified above their respective signatures.

Dated:_ _ 20. Dated: _, 20.
on: on:

SUBLESSOR: SUBLESSEE:

Catalina Island Company., a California corporation City of Avalon, a municipal corporation By:_ By:_
Name Printed:_ Gina Long Name Printed:_ David Maistros
Title: Sr. VP Administration Title:_ City Manager
Address: 150 Metropole Avenue Address: P.O. Box 707
P.O. Box 737 Avalon, CA 90704
Avalon, California 90704
Tel: 310-510-0220
Tel: (310) 510-2000 Fax:

Fax: (310) 510-2300
{13193/000000/01781257-7)
DocuSign Envelope ID: 55E2459A-8236-471A-9A98-5C9DE8CA060C CRy of Avatos
Bat Water Reconcur
Bodega
Road
Road
sodaga
City of Avalon
Warehouse
Avalon High School
Baseball Field

EXHIBIT 'A'
RFI Date:

Scale: 1"= 100-0" Falls Cnyn. City of Avalon
1 SANTA CATALINA ISLAND COMPANY
Drawn:

P.O. Box 737 Avalon, California 807
Of 1 Sheets Job: (310) 510-2000 10) 510-1618 F

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 8
ORIGINATING DEPT: Harbor CITY MANAGER: aMM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: 2023 Waterside Permit Renewals
RECOMMENDED ACTION(S): Authorize the Harbor Master to renew the attached list of Waterside Permits for 2023.

REPORT SUMMARY: Prior to December each year, the Harbor Master reviews all existing Waterside Permits. Waterside Permits expire annually on December 31. Most Waterside Permits are recommended for approval and the list those recommended for approval is attached. if the Harbor Master determines that, because of changed circumstances, a permit should not be renewed, or should be renewed on different terms and conditions, he shall forward his recommendation thereon to the City Council for action, together with a list of all permits that he recommends should be renewed for another term without change.

All permit renewals are subject to verification by the Finance Department to make sure the permit holder is in good standing with respect to harbor use fees, rents, admission taxes and insurance requirements. With respect to fees, rents and admission taxes, good standing includes execution of and compliance with a payment plan.
2022 Waterside Permits Not Renewing in 2023
• Canby Mechanical has relinquished the Waterside Permit • Stephen's Island Lee Delivery has relinquished the Waterside Permit Do not renew the following:
• Island Enterprises dba Catalina Glass Bottom Boat Waterside Permit has not been renewed since 2017 due to fees owed to the City.
• San Diego Sailing Tours is not in good standing with respect to harbor use fees and other applicable requirements.
• Sherrill's Marine Services' Waterside Permit has not been renewed since it expired in mid-2022.

Section 3 of Resolution 04-30 states that all permit renewals are subject to verification by the Finance Department to make sure the permit holder is in good standing with respect to harbor use tees, rents and admission taxes and insurance requirements. With respect to fees, rents and admission taxes, good standing includes execution of and compliance with a payment plan.

It is the opinion of the Harbor Department that the eight (8) conditions set forth in the Municipal Code for waterside permit approvals are met by these applicants and that the waterside permit should be renewed for 2023.

GOAL ALIGNMENT: Renew waterside permits.

FISCAL IMPACTS: N/A
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: 2022 waterside permits in good standing will not be renewed for 2023.

FOLLOW-UP ACTION: Notify all waterside permit holders of renewal status.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. List of 2022 Waterside Permit Holders to be renewed for 2023.

NO. RENTALS

WITHOUT
NO. OF NO. OF OPERATOR
BUSINESS NAME BOATS SKIFFS VESSELS (114 max.)
AFISHINADO CHARTERS 1 1
AVALON BOAT STAND 3 94
AVALON MOORING & DIVING SERVICE 2

AVALON OCEAN CHARTERS

AVALON SPORT FISHING

BLUE WATER ADVENTURES

CANBY MARINE SERVICE
CANBY MECHANICAL 1
CAT TOW, INC. 1
SAIL SO GOOD, LLC, dba CATALINA

ADVENTURE SAILING

CATALINA CLASSIC CRUISES

CATALINA COASTAL TOURS

CATALINA CUSTOM CHARTERS

CATALINA ISLAND COMPANY
CATALINA JET SKI RENTAL CORP. 0

CATALINA SCUBA DBA CATALINA
0 INSTRUCTION & GUIDES
CATALINA SNORKEL & SCUBA 0

CORSARIO OCEAN ADVENTURES

DESCANSO BEACH OCEAN SPORTS
M.O. DION & SONS INC., DBA AVALON

HARBOR FUEL DOCK

DISCOUNT DIVE AND MARINE

DIVE CATALINA LLC

FISHIN' FUNACTICS

HARBOR BREEZE

HEADPUMPERS
ISLAND CHARTERS, INC.

ISLAND ENTERPRISES ***

ISLAND WATER CHARTERS

MEMORY MAKER FISHING CHARTERS

MOUNTAIN & SEA EDUCATIONAL

ADVENTURES

PARASAIL CATALINA

SAN DIEGO SAILING TOURS

SCUBA CAT, INC

SHERRILL'S MARINE
SKIPPER'S SEA B&B, dba CATALINA
ADVENTURE SAILING 1 0
STEPHEN'S ISLAND LEE DELIVERY 1
TAYLORED CATALINA CHARTERS 1

WEST COAST BOAT CHARTERS LLC
WETSPOT RENTALS 1 1
TOTALS 114
* Catalina Classic Cruises vessels are permanently docked on the mainland and they only utilize 4 vessels at a time.
** Harbor Breeze vessels are permanently docked on the
mainland.
***Island Enterprises is operating without a permit, minimum of 2 boats, 1 of which is in Avalon part time.

CITY OF AVALON CITY COUNCIL
January 17, 2023 AGENDA ITEM: 9
MEETING DATE:

ORIGINATING DEP: Harbor CITY MANAGER: DAM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Avalon Anglers
RECOMMENDED ACTION(S): Make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant a Waterside Permit to Avalon Anglers, with the following conditions:

1. All operations to load and unload charter passengers will take place on Cabrillo Mole floats except on cruise ship days when all loading and unloading will be from the floats on the Green Pier.

2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application to offer Fishing Charters and tours.

Avalon Anglers proposes the use of a 24: Sea Pro to conduct Fishing charters and Tours.

Avalon Anglers proposes to operate 7 days a week as scheduled by client from January 1, to December 31, and between the hours of 8:00 a.m. to 9:00 p.m. The vessel will obtain a mooring from Avalon Harbor Patrol as needed.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and /or goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

The Municipal Code also provides that the "City Council may deny the permit where the impacts listed in paragraphs (1) through (8) above are cumulatively significant, even though the individual impacts are limited. The City Council may approve a project where mitigation measures eliminating significant impacts are incorporated into the project, and the approval shall be conditioned upon the implementation of such mitigation measures. The failure to comply and maintain any mitigation measures shall be a basis for suspension or revocation of a waterside permit." It is the opinion of the Harbor Department that the eight (8) conditions set forth in the Municipal Code can be met by this applicant and that the waterside permit should be issued with the conditions set forth above.

GOAL ALIGNMENT: Enhance recreational activities in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential revenue via Harbor Use Fees.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Visitors will be able to use the current operators offering the same services.

FOLLOW UP ACTION: Notify Avalon Anglers of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application

CITY OF AVALON

WATERSIDE PERMIT APPLICATION
An application fee of $275.00 is due at the time the application is submitted to the Harbor Department. Applications should be sent to the Avalon Harbor Department, P.O. Box 1085, Avalon, CA 90704, or delivered to the Harbor Master's office, #22 Pleasure Pier, Avalon, CA.

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.

Name of Applicant: Martin Kausie

2. Name of Business/Project: Avalan Anglers
Mailing Address: P.c, Box B. 78 City Avalen Zip CA
Phone (Home) 7/5-305-7452 (Avalon business)
Email Address: [email protected]
Physical Avalon Location of Operations: 342 MeTropole Aue init B

7. Project/Business Description: Eishing Shorters, tours;

8. On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

Duration:

Hours of Operation 6 am = 10pm
Days of Operation> days a week
Months of Operation Fed 1y2023 - year caand JAN it - Dec 315T

10. Does this activity include overnight accommodations on boat • or shore O? No

11. Describe the number, length, and types of watercraft which will be added to the City waters?
MOJO
Number_ Trips per day_ TB D. Type TBD • 24 SEA FRO
ScheduleTBD - BY APPOINTMENT

12. For scheduled services, including shore boats, where will queuing be and for what duration?
65059.0000018282917.1 Revised 2/10/17

13. How will people be transported to the facility? Pick up at Green Peic of Mole How often? TBD - TY AlfriMenT
Number of passengers per trip? No most Than l TAX

14. What berthing/mooring will be required? mooring - Avalan

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based? 1

17. Communications:

VHF Channels: 10, 12, i var Phone: 715-305-7482
If answering machine, hours of operation: Cell Shone

19. Please attach all permits and certifications required to legally perform the activity being applied for in this application.
65059.0000018282917.1 Revised 2/10/17
Applicant Acknowledgement
Applicant agrees that if this Waterside Permit is granted, he/she will conduct his/her business in accordance with all federal, state, and local laws, including the City's planning and zoning laws.

Applicant also agrees to abide by the terms of this Permit and all rules, regulations, and/or restrictions placed upon it by the City Council. Applicant must follow all regulations regarding the use of City facilities. This Permit may be revoked, suspended, or further conditioned at any time by the City Council for violations of the foregoing, or immediately in the City Manager's discretion if the public's health, safety, or well-being is threatened by the actions or inactions of the Applicant. Failure to pay use fees shall also be a violation of the terms of this Permit. Any decision made by the City Council regarding this Permit is final and conclusive. Decisions of the City Manager may be appealed to the City Council if the City is notified within 10 days of the City Manager's decision, but the City's Manager's decision shall remain in effect until the next regular meeting of the City Council at which an appeal may be heard.

Applicant Name: Martin Kause
Business/Activity Name: Avalor Anglers
Applicant Signature: Date: 12-14•22
Application Presented at the City Council Meeting on:

Application Approved:

Application Denied:

Application Approved with Attached Conditions:

City Manager Date
65059.0000018282917.1 Revised 2/10/17
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65059.0000018282917.1 Revised 2/10/17

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 10
ORIGINATING DEP: Harbor CITY MANAGER: DMM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Catalina Charter Boat Inc.

RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Project Application to Catalina Charter Boat Inc. with the following conditions:

1. All operations to conduct mechanical repair or commercial dive services do not negatively impact the safe operation of Avalon Harbor.

2. All qualifying mechanical certificates and insurance required for commercial dive services be current and on file with Avalon Harbor Department.

3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application to offer Mechanical services and Commercial Dive services.

Catalina Charter Boat Inc proposes to use of a 30' Commercial Lobster fishing boat to conduct Mechanical services and Commercial Dive services to the public. West Coast Boat Charters proposes to operate 7 days a week, as scheduled by client from January 1 to December 31, and between the hours of 6:00 a.m. to 10:00 p.m. The vessel has a leased mooring in the Avalon Harbor. The operator will not impact the flow of vessel traffic or need the use of City floats for repair of boats. The operational plan includes side-tying the repair boat to the boat needing repair or dive services.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (i) Will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) Will not result in substantial alterations of present patterns of circulation or movement of people and for goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance Mechanical and Commercial Dive services in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential revenue via Harbor Use Fees.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Boaters will be able to use the current mechanics and commercial dive services offering the same services.

FOLLOW UP ACTION: Notify Catalina Charter Boat Inc of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application

MECHANIC /DIVER

CITY OF AVALON

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.
an iel A. mello
Name of Applicant:

2. Name of Business/Project: CATALINA CHARTER BOAT INC
Mailing Address: P.0. Box 1947 city AVALoN Zip 90701

3. 4. Phone (Home) 3104376447 _ (Avalon business)

5. Email Address: [email protected]

6. Physical Avalon Location of Operations: ON - LINE/ 314 WHETTELEY AVE

7. Project/Business Description: CHARTER IN AND AROUND CATALINA

8. On the map provided, sketch the project/business activities, showing the proposed WHER locations of all waterborne traffic and activity.

LOBSTER SALES ONLA IN AVALON HER tural its
Hours of Operation G Am - 10 Pm meitt Repair
Days of Operation_ M - SuN
Months of Operation 12 MoN JAN-DeC

10. Does this activity include overnight accommodations on boat • or shore D? If o

11. Describe the number, length, and types of watercraft which will be added to the City waters?
Number_ Trips per day Z-3 Type 30 mitcHellecal
12+ FILL DAY CHARTERS 6-1200 + 1300€
Schedule
1900

12. For scheduled services, including shore boats, where will queuing be and for wha turation? PIER /SREEN PLEASURg
65059.0000018282917.1 Revised 2/10/17

13.. How wil people be transported to the facility? N/ iA How often? N /14
Number of passengers per trip? _ 6 PAX

14. What berthing/mooring will be required? MR 26l Lease mR

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based? D-2

17. Communications:

VHF Channels: 10 Phone: 3104876467
If answering machine, hours of operation:

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.

19. Please attach all permits and certifications required to legally perform the activity being applied for in this application.

VIA EMAIL
65059.0000018282917.1 Revised 2/10/17
Applicant Acknowledgement
Applicant agrees that if this Waterside Permit is granted, he/she will conduct his/her business in accordance with all federal, state, and local laws, including the City's planning and zoning laws.

Danel A. melb
Applicant Name:

Business/Activity Name: (ATALINA CHARTER BOAT INC
Applicant Signature: spymbler Date: 10/26/22
Application Presented at the City Council Meeting on:

Application Approved:

Application Denied:

Application Approved with Attached Conditions:

City Manager Date
65059.00000\8282917.1 Revised 2/10/17
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65059.0000018282917.1 Revised 2/10/17
Cheryl Allison
From: Scott Campbell <[email protected]>
Sent: Wednesday, October 26, 2022 11:22 AM
To: Cheryl Allison
Cc: Orne Carstarphen; Kevin Schmidt; David Maistros
Subject: RE: Waterside Permit question
This can be done as one permit or 4 separate permits. If we combine the activities into one permit, the city council must make the required findings of each activity and the permit should contain a provision that each activity may be discontinued for violation of the terms and conditions of the permit, either separately or together. That way we have flexibility if one of the activities proves problematic. Let me know if you have any questions.

Scott Campbell
IBBK Partner
[email protected]
т: (213) 617-7489 C: (213) 948-1338

REST BEST & KEIRCEBE
ATTORNEYS AT 1W www.BBKlaw.com in 90
From: [email protected] <[email protected]> Sent: Wednesday, October 26, 2022 10:29 AM
To: Scott Campbell <[email protected]>
Cc: Orne Carstarphen < [email protected]>; Kevin Schmidt <[email protected]>; David Maistros <[email protected]>
Subject: Waterside Permit question
CAUTION - EXTERNAL SENDER.

Scott,
I have a gentleman who has filled out a Waterside Permit Application with the following Project/Business Description:
• On-Call Boat Charters
• Lobster sales (food handling requirements???)
Commercial Diver
Boat Mechanic Repair
My question is, would this all be allowed under one Waterside Permit, or would this require two or more Waterside Permit Applications?
sincerely,
Cheryl Nilison
Avalon Tarbor Administrative Assistant
Phone: 310-510-0535 / Fax: 310-510-2640
1 • Reply all |~ I Delete Junk!"
RE: Dan Mello waterside use permit
Matthew Baker • Reply all | v
Wed 12/8/2021, 1.41 PM
Cheryl Allison; Orne Carstarphen; Aliana Gorizales
Inbox
You replied on 12/8/2021 2:34 PM.

Hi Orne,
I wanted to send one final email to clarify the situation before responding to Dan Mello. • Mello applied for a waterside permit and was approved in January 2019. • Mello paid for a business license in April 2019.
• Mello paid for the first installment ($500) of the waterside permit deposit in April 2019. • Finance does not have record of payment for the second installment. • Mello paid for his 2019 harbor use fees in November 2019 and was charged penalties and interest for the first nine months of 2019 for being late.
• Waterside permit was renewed in December 2019 on the condition of being in good standing with Finance for 2019.
• It is my understanding that the permit holder is included for renewal automatically if they are in good standing and are not contacted to confirm whether they wish to renew the permit. • He should not have been considered to be in good standing considering the missing deposit. • Finance Department issued an invoice to renew Mello's business license for 2020.

Mello did not pay for a business license in 2020.
• Mello subsequently has represented that he did not operate in 2020 and paid no harbor use fees for the year.
• Mello contacted the Harbor Department in January 2021 advising that he did not intend to renew his permit for 2021.

Generally speaking, businesses don/t proactively inform the City / Finance Department of their intent to close / not renew their license. If a license is unpaid and Finance is not aware of any active operations, we will close the license in the system. If the closed business resumes operation in a future year, Finance may inquire if they were operating during the unpaid year but would not charge them a license for a year that they were closed. However, Finance would likely require them to reapply for a business license if closed for a year or more.

In this case, I do not think it makes sense to charge Mello for a 2020 business license if he did not conduct any business in 2020. Harbor use fees ultimately fall under the Harbor Master's jurisdiction but I don't think they would apply considering he did not have a business license to operate at any point in 2020. When we initially informed Mello that he needed to pay the 2020 license and use fees, it was for the purpose of becoming in good-standing to renew his permit for 2021. In hindsight, we should have informed Mello last January that he was not eligible for renewal considering he was not in good standing for 2020.

If Mello wants a waterside permit in 2022, I think he should have to reapply for the waterside permit and reapply for a new business license with Finance. If awarded the permit, he would need to pay the deposit again for the new business (in addition to any application fees / business license fees / etc.). I think it would be reasonable to consider * Reply all i* i Delete Junk|" ...

Waterside Permit request
Cheryl Allison • Reply all | v
Yesterday 3:19 PM
'Scott Campbell' <[email protected]>; Orne Carstarphen; David Maistre V Inbox
Catalina Custom Charte...
25 KB
· Show all 1 attachments (25 KB) Download
: Action Items
Scott,
We have a request from an existing Waterside Permit Holder for which we need your input.

Attached is a copy of the Waterside Permit held by Catalina Custom Charters to carry on the business of FISHING CHARTERS / COASTAL TOURS, using the vessel Bad Attitude.

We have some legal questions to ask prior to giving the requesting party an response.

The owner Catalina Custom Charters would like to change the permit from fishing charters/coastal tours to parasail tours using a different vessel than the Bad Attitude. It is likely they will also be changing the business name. The fishing charter/coastal tours is an on-call business, while the parasail business will be running scheduled tours. We have two questions:

1. Can this be done without the applicant being required to apply for a brand new Waterside Permit?

2. If it can be done, can it be done administratively or would the request require City Council approval? In addition, the owner of Catalina Custom Charters has advised the Harbor Master that he will be renting office space from Catalina Coastal Tours (CCT) and utilizing the CCT end float to stage its business and store its boat overnight, during the months that the float is in the water.

In reviewing the Lease Agreement between the City of Avalon and Catalina Coastal Tours for its End Float. Currently CCT runs the shoreboat business, the fishing charter/coastal tour business and the Jet Ski business off of its end float.

We need your input on the following conditions within the Lease Agreement:

1. Paragraph 3(c) Vessels Moored to End-Float. "The Respondent shall only allow those vessels that are registered to, and engaged in, the waterside permit business to moor to the End-Float."

2. Paragraph 4(a) Use. "Lessee shall occupy and use the Property only for Catalina Coastal Tours & Fishing business, retail, ticketing, information and passenger loading and unloading only, and for no other purpose whatsoever."

14. Assignment and Subletting, (a) "Except as otherwise provided below, Lessee shall not convey, assign, transfer, mortgage, pledge, sublet or encumber ... nor allow any other person ... to occupy or use the Property, or any portion thereof, without Lessor's prior written consent, which may be refused in Lessor's sole discretion."
City of Avalon
Receipt
Avalon Harbor
Receipt #: 15833-CC-2301
Date: 11/8/2022 12:23:36 PM
Daily Cash: Miscellaneous
Desc: Waterside Permit Application for Charter Boat
Amount: $275.00 Signature
© NetMooring - Milton & Wanda Stone
Tuesday, 8 November, 2022 12:24 pm

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: _
ORIGINATING DEP: Harbor CITY MANAGER: AMM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Catalina Charter Boat Inc.

RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set orth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalir harter boat Inc, with the following conditions

1. All operations to conduct retail sales of lobster do not negatively impact Avalon Harbor.

2. All bait, fish, traps, or other materials do not cause foul odor or attract birds.

3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application to offer retail sales of lobster from his vessel in Avalon Harbor.

Catalina Charter Boat In proposes to use of a 30' Commercial Lobster fishing boat to conduct retail sales of lobster. Catalina Charter Boat Inc proposes to operate 7 days a week, as scheduled by client from January 1 to December 31, and between the hours of 6:00 a.m. to 10:00 p.m. The vessel has a lease mooring in the Avalon Harbor.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and for goods; (v) Will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance Mechanical and Commercial Dive services in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential Harbor Use Fees.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Boaters will be able to purchase Lobster from a fish market or other retail operation offering the same services.

FOLLOW UP ACTION: Notify Catalina Charter Boat Inc of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application

CITY OF AVALON

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.

Name of Applicant: sanel A mello
mell LOBSTER FISHINE Name of Business/Project: LOBSTER Sales in HARBOR

3. Mailing Address 3/4 WHITLEY cily AVAloN _zip 90704
Phone (Home) 3104376467 (Avalon business)

5. Email Adress: @ CapTmello [email protected]

6. Physical Avalon Location of Operations: 314 WHITEY VE Project/Business Description: _
On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

Duration:

Hours of Operation 6Am - 10 pm
Days of Operation l Matt Sin
Months of Operation OCT - MAR

10. Does this activity include overnight accommodations on boat • or shore •?

11. Describe the number, length, and types of watercraft which will be added to the City waters?
Number Trips per day_ Type SO'pickele care
schedule AROUS PER ReqUeST

12. For scheduled services, including shore boats, where will queuing be and for what duration? Non
65059.0000018282917.1 Revised 2/10/17

13. How will people be transported to the facility?
How often?
W/A
Number of passengers per trip? _ =

14. What berthing/mooring will be required?

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based?

17. Communications:

VHF Channels: 16 Phone: 3104376467
If answering machine, hours of operation: M-SuN , 7 DAYS /24 HIS

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.

Danel it. mello
Applicant Name:

Mello LoBSTER FISHIN 3/22
Applicant Signature:

Application Presented at the City Council Meeting on:

Application Approved: _
Application Denied:

Application Approved with Attached Conditions:

City Manager Date
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65059.0000018282917.1 Revised 2/10/17
City of Avalon
Receipt
Avalon Harbor
Receipt #: 15831-CC-2301
Date: 11/8/2022 12:21:38 PM
Daily Cash: Miscellaneous
Desc: Waterside Permit Application for Mechanic
Amount: $275.00 Signature
© NetMooring - Milton & Wanda Stone
• Tuesday, 8 November, 2022 12:27 pm

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM:

ORIGINATING DEP: Harbor CITY MANAGER: DAM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Catalina Charter Boat Inc.

RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalina Charter Boat Inc., with the following conditions:

1. All operations to load and unload charter passengers will take place on Cabrillo Mole floats except on cruise ship days when all loading and unloading will be from the floats on the Green Pier.

2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application to offer Fishing Charters.

Catalina Charter Boat Inc. proposes the use of a 30' Commercial Lobster boat to conduct Fishing charters. Catalina Charter Boat Inc. proposes to operate 7 days a week as scheduled by client from January 1 to December 31, and between the hours of 6:00 a.m. to 10:00 p.m.

The vessel has a lease mooring in the Avalon Harbor.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (ili) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and /or goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance recreational activities in the Avalon Harbor.

FISCAL IMPACTS: Undermined. Potential revenue via Harbor Use Fees.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Visitors will be able to use the current operators offering the same services.

FOLLOW UP ACTION: Notify Catalina Charter Boat Inc. of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application
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CITY OF AVALON

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.

1. Name of Applicant: Sand it. Mello

3. 4. Phone (Home) 310437 6467 (Avalon business) _
nail Adress: [email protected]

5. Email Address:

6. Physical Avalon Location of Operations: 314 WHETLEY AVE

7. Project/Business Description: CHARTER BOAT OPERATIONE On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

9. Duration:

Days of Operation M- SuN
Months of Operation 12 MONTHS JAN-DeC

10. Does this activity include overnight accommodations on boat O or shore ?

11. Describe the number, length, and types of watercraft which will be added to the City waters?
Number Trips per day. 1-3 Type 30 ' mittell Gue
Schedule M- SUN

12. For scheduled services, including shore boats, where will queuing be and for what duration? Hone pier/ mole
65059.0000018282917.1 Revised 2/10/17

13. How will people be transported to the facility?
How often?
Number of passengers per trip?

14. What berthing/mooring will be required? MR 26l Lense

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based? _ Q-1

17. Communications:

VHF Channels: 16e 3104876467
Phone:

If answering machine, hours of operation: _ 2.4 HRS /7 DAKS

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.

19. Please attach all permits and certifications required to legally perform the activity being applied for in this application.
65059.00000\8282917.1 Revised 2/10/17
Applicant Acknowledgement
Applicant agrees that if this Waterside Permit is granted, he/she will conduct his/her business in accordance with all federal, state, and local laws, including the City's planning and zoning laws.

Daniel A. mello
Applicant Name:

CATALINA HARTER, BOAT CO
Business/Activity Name:

Applicant Signature: _ 11/8/22
Application Presented at the City Council Meeting on:

Application Approved: _
Application Denied:

Application Approved with Attached Conditions:

City Manager Date
65059.00000\8282917.1 Revised 2/10/17
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65059.0000018282917.1 Revised 2/10/17
City of Avalon
Receipt
Avalon Harbor
Receipt #: 15832-CC-2301
Date: 11/8/2022 12:22:58 PM
Daily Cash: Miscellaneous
Desc: Waterside Permit for Lobster Sales
Amount: $275.00 Signature
© NetMooring - Milton & Wanda Stone
Tuesday, 8 November, 2022 12:28 pm

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 13
ORIGINATING DEP: Harbor CITY MANAGER: AMM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Vintage Vessel Voyages RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Lively Schooner Inc DBA Vintage Vessel Voyages, with the following conditions:

1. Any direct loading or unloading of passengers on the Green Pleasure Pier shall be prior to 10:00 AM or after 5:00 PM daily and for a period of time not to exceed 10 minutes.

Arrangements for docking along the Green Pleasure Pier for the purpose of loading and unloading between the hours of 10:00 AM and 5:00 PM may be requested by contacting the Harbor Master on VHF Ch. 12. Request for dock space will be considered on case by case basis and may be declined for any reason where the Harbor Master has determined that landing is not advised. Use of public or private shore boat to load and unload charter passengers between the hours from : 10:00 AM to 5:00 PM is recommended.

2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Project Application proposing vintage vessel day charters using a 40' Topsail Ketch sailing boat offering day and evening charters originating from Avalon Harbor. The applicant will secure a mooring with Avalon Harbor Patrol as needed.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and /or goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance recreational activities in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential Harbor Use Fees and Transient Occupancy Tax.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Visitors will be able to use service currently available shore side.

FOLLOW UP ACTION: Notify Lively Schooner Inc DBA Vintage Vessel Voyages of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application

CITY OF AVALON

WATERSIDE PERMIT APPLICATION
270-01
An application fee of $262.00 is due at the time the application is submitted to the Harbo Department. Applications should be sent to the Avalon Harbor Department, P.O. Box 1085, Avalon, CA 90704, or delivered to the Harbor Master's office, #22 Pleasure Pier, Avalon, CA.

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.

Name of Applicant: Andrew Mayhugh
Name of Business/Project:_Lively Schooner Inc dba Vintage Vessel Voyages

3. Mailing Address: 1630 Highland Dr City Newport Beach Zip 92660 Phone (Home) (949) 274-6302 (Avalon business) (949) 274-6302

5. Email Address: [email protected]

6. Physical Avalon Location of Operations: Mooring W2 Descanso Bay

7. Project/Business Description: Traditional Sailing Charters On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

Duration:

Hours of Operation Visy based on sunset time
Days of Operation on call
Months of Operation

10. Does this activity include overnight accommodations on boat • or shore •?

11. Describe the number, length, and types of watercraft which will be added to the City waters?
Number 1 Trips per day 1-3 Type_Captained Sailboat
Schedule _Varies by Season

12. For scheduled services, including shore boats, where will queuing be and for what duration? Green Pier, 15 Mins Max (6 passenger Max
65059.0000018282917.1 Revised 2/10/17

13. How will people be transported to the facility?
How often?
Number of passengers per trip? 1-6

14. What berthing/mooring will be required?_ W2
If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based? 1-2

17. Communications:

VHF Channels: 12414 Phone: (949) 274-6302
If answering machine, hours of operation:

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.
• 19. Please attach all permits and certifications required to legally perform the activity being applied for in this application.
65059.00000\8282917.1 Revised 2/10/17
Applicant Acknowledgement
Applicant agrees that if this Waterside Permit is granted, he/she will conduct his/her business in accordance with all federal, state, and local laws, including the City's planning and zoning laws.

Applicant Name: Andrew Mayhugh
Business/Activity Name:_Lively Schooner Inc dba Vintage Vessel Voyages Applicant Signature: Dao: 10/04/2038
Application Presented at the City Council Meeting on:

Application Approved:

Application Denied:

Application Approved with Attached Conditions:

City Manager Date
65059.0000018282917.1 Revised 2/10/17
TO:

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From-Christy
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Business Mailing /aces.

City: Newport Beach State: CA Zip Code: 92660
Business Phonc Number: (949)274-6302
Business Fax Number: na
Email Address: [email protected]
B. Owner Name: Andrew Mayhugh
Oner Social Security Number: 610-64-4937
Owner Mailing Address: 1630 Highland Dr
City: Newport Beach State: CA Zip Code: 92660
Owner Phone Number: (949)274-6302
C. Type of Business: Sailing Charters - Marine Passenger Transportation Ownership Typc: Sole Proprietorship
Corporation LLC
Partnership Non-Profit
State I.D. Number: 3959932
Federal I.ID. Number: 81-4435148
State Sales Tax Number:

PLEASE ATTACH A COPY OEVALID STATE CONTRACTORS LICENSE
State Contractor's License Number:

Class: Expriation Date:

License Description:

Local address where work will be pertormed:

TO BE COMPLETED IF VEHICLES WILL BE ASSOCIATED WITH BUSINESS E. Number of Power Vehicles under 20:

Number of Power Vehicles over 20:

Number of Non-Power vehicles under 6:

Number of Non-Power vehicles over 6:

TO BE COMPLETED IF FOOD AND ALCOHOLIC BEVERAGES ARE SERVED F. Separate Bar:

Dancing Allowed:

Outside Service:

Entertainment Provided:

Take-Out Restaurant:

Outside Service after 11PM:

Scating more the 100 scats:

Seating less than 100 seats:

TO BE COMPLETED FOR TRANSIENT OR YEAR-ROUND RENTALS
G. Total Number of Units:

Will the property be rented transiently?
Does rental of the unit include use of a vehicle?
Do you have off street parking for the vehicle?
Does the property have an active Conditional ('se Permit? Will a Management Company be representign the property? Management Company:

Mailing Address:

City: State: Zip Code:

Phone Number: Fax Number:

Email Address:

H. Is your business conducted on leased or rented property? no Do you have permission from the property owner?
Property Owner's Name:

Mailing Address:

City: State: Zip Code: _
Phone Number: Fax Number:

Email Address:

TO BE COMPLETED IF BUSINESS HAS VENDING OR AMUSEMENT MACHINES I. Number of Amusement Machines:

Number of Vending Machines: __.

LT. PLEASE GIVE A BREIF DESCRIPTION OF THE BUSINESS:

Half Day, Full Day and Sunset Sails along the coast, beginning and ending in Avalon Potential to expand to overnight charters
APPLICANT NAME (PRINT): Andrew Mayhugh

APPLICANT SIGNATURE ME
DATE: 10/05/2027

FINANCE DEPARTMENT USE ONLY
License Number: Amount Paid:

Receipt Number: Date Paid:

Status of Contractor's License: Date License was Checked:

Reason license is inactive (il any):

City of Avalon
Receipt
Avalon Harbor
Receipt #: 15834-Check-1054
Date: 11/8/2022 12:59:21 PM
Daily Cash: Miscellaneous
Desc: Waterside Permit Application fee for Lively Schoon Amount: $275.00 Signature
© NetMooring - Milton & Wanda Stone
Tuesday, 8 November, 2022 12:59 pm

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 14
ORIGINATING DEP: Harbor CITY MANAGER: AMM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Project Application - Fishin Funatic's (Adding Sailboat) RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Fishin Funatic's, with the following conditions:

1. Any direct loading or unloading of passengers on the Green Pleasure Pier shall be prior to 10:00 AM or after 5:00 PM daily and for a period of time not to exceed 10 minutes.

2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Project Application to add a second vessel to its current Waterside Permit. Fishin Funatic's is proposing the addition of a second vessel described as a 33' Sloop sailing boat to allow for day and evening charters originating from Avalon Harbor.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:

The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and for goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance recreational activities in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential Harbor Use Fees and Transient Occupancy Tax.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Visitors will be able to use service currently available from hotels or other short term accommodation. Visitors will be able to use other charter services available.

FOLLOW UP ACTION: Notify Catalina Fishin Funatic's of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application
Waterside Permit Application
01/04/20234:20 PM (PST)
Passics
Waterside Permit Application
Deadline for new application is December 15th of each year.

Please complete this application in full detail.

Name of Applicant Clint Palmer
Email [email protected]
Name of Business/Project Fishin' Funatics (adding sailboat for charters) Contact Information
Physical Avalon Location of Mooring #75
Operation
Project/Business Description Sailboat charters to be added to existing Fishin Funatics fishing charters.

On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

ON HEARIO RAY ANCHORAGE AREA
*****
Months of Operation March-October
For scheduled services, including Green pier
shore boats, where will queuing
be and for what duration?
If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

How many employees would be 1
Avalon-based?
Phone (310)882-9253
If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.

Please attach all permits and certifications required to legally perform the activity being applied for in this application.

Application Acknowledgement
Applicant agrees that if this Waterside Permit is granted, he/she will conduct his/her business in accordance with all federal, state, and local laws, including the City's planning and zoning laws. Applicant also agrees to abide by the terms of this Permit and all rules, regulations, and/or restrictions placed upon it by the City Council. Applicant must follow all regulations regarding the use of City facilities. This Permit may be revoked, suspended, or further conditioned at any time by the City Council for violations of the foregoing, or immediately in the City Manager's discretion if the public's health, safety, or well-being is threatened by the actions or inactions of the Applicant.

Failure to pay use fees shall also be a violation of the terms of this Permit. Any decision made by the City Council regarding this Permit is final and conclusive. Decisions of the City Manager may be appealed to the City Council if the City is notified within 10 days of the City Manager's decision, but the City's Manager's decision shall remain in effect until the next regular meeting of the City Council at which an appeal may be heard.

Applicant Name Clint Palmer
Business/Activity Name Fishin' Funatics
Date 01/04/2023
Standard List of Conditions Relating to Waterside Project Applications

1. Section 1-6.01 Public Liability Insurance
Sec. 1-6.01 Public Liability Insurance. Applicants for permits or franchises and parties to leases and contracts with the City of Avalon may be required by the Avalon Municipal Code or the City Manager to maintain a policy of public liability insurance.

Such policy shall:
(a) Contain broad form commercial general liability insurance, or in the case of marine operations, the substantial equivalent, with respect to the Premises, as applicable and the permittee, franchisee, contractor or lessees' activities with a combined single limit of not less than $1,000,000 per occurrence and aggregate. Such insurance shall be produced by an insurer authorized to do business in California with a then current Best's Insurance Guide Rating of not less than A-Vll., shall name the City of Avalon, its officers, agents and employees as additional insureds, and shall contain a provision that prohibits cancellation, modification or; and
(b) Name the City as additional insured and contain a waiver of subrogation against the named insured or respective officers, employees, agents; and
(c) Provide that it may not be canceled without at least thirty (30) days prior written notice to the City; and (d) Provide primary and not excess coverage Insurance coverage shall be subject to the approval of the City.

The applicant shall provide evidence of such insurance coverage by providing the City with a copy of the policy and/or a copy of a fully explanatory certificate of insurance, as determined by the City.

2. Section 10-2.402 Use of Harbor Related Facilities: Use Fees Wharfage, dockage, landing and use fees for the use of or impact upon any harbor or harbor-related facility owned or controlled by the City of Avalon shall be as follows:
(a) Except as otherwise specifically provided in this article, for all boats, ships, vessels, airplanes or other transportation facilities carrying passengers for hire or charter, whether operating under the authority of the California Public Utilities Commission or not, which land, discharge, load, or embark passengers on, to, or from such City harbor facilities Two Dollars and Fifty Cents ($2.50) per passenger so landed, discharged, loaded or embarked. Commencing on March 1, 2019, and ending on February 28, 2021, the fee shall be increased as follows:
(1) Three ($3.00) Dollars for each passenger so landed, discharged, loaded, or embarked. (c) For businesses engaged in the operation of excursion boats using such facilities for landing, discharging, loading or embarking passengers on, to, or from such facilities, seven (7%) percent of the gross receipts of such business derived from such use. For the purpose of this section, "excursion boats" shall mean vessels operating from points in the City and returning
thereto for sightseeing scenic tours or as pleasure cruises, and carrying passengers for hire, but not providing facilities for overnight stays.
(d) For businesses engaged in the operation of "shore boats," as defined herein, and using such facilities for landing, discharging, loading or embarking passengers on, to, or from such facilities, seven (7%) percent of the gross receipts of such business derived from such use, excepting therefrom receipts for transportation of passengers to and from "cruise ships," as defined in subsection (b) herein, or as otherwise provided in an applicable franchise agreement issued pursuant to Section 10-

2.410. For the purpose of this section, "shore boats" shall mean vessels carrying passengers or freight for hire to and from boats moored within or without City waters to the shore in Avalon, between such boats in City waters or between points on the shore in Avalon.
(e) Operators of fishing tournaments whose participants use City harbor facilities during the course of such tournaments shall comply with the provisions of Title 3, Chapter 3 regarding admissions taxes as applied to entry fees charged for participation in such toumament.
(f) For all other businesses not otherwise expressly provided for in this Section 10-2.402 carrying passengers for hire by vessel from points in the City and returning thereto, or from one point in the City to another point therein, or engaged in the renting, leasing, or chartering of boats, paddle boards, rafts, or other floating watercraft for hire and using City harbor facilities, or whose patrons regularly use such facilities for launching, landing, boarding, unloading, embarking or disembarking, docking. or other similar uses, or whose business activities involve the use of such facilities, seven (7%) percent of the gross receipts derived from such use.
(g) The fees for the use of such facilities by those not falling within the classifications set forth in subsections (a) through (d) of this section shall be determined initially by a schedule adopted by the Council or shall be incorporated into the flat rental of any contract, permit, lease, franchise or other agreement entered into for use of the facilities.

3. Section 10-2.410 Permits: Franchises to Conduct Business a. All businesses operating in the harbor, except those enumerated in paragraph (b) of this section, shall maintain a shore base of operations or an office in Santa Catalina Island. Such office shall have a business telephone, which is covered twenty four (24) hours a day. An answering service or mechanical means of answering may be used provided messages are checked no less than three (3) times per day.

4. In addition to the provisions of Section 10-2.402, all businesses operating within the harbor, except those operating pursuant to a franchise issued by the City shall:
(il.) In the case of waterside permit holders other than cross-channel carriers, pay to the City a non-refundable use fee deposit of One Thousand ($1000.00) Dollars, payable in two (2) installments of Five Hundred ($500.00) Dollars each, the first installment on the inception of operations within the Avalon Harbor and the second on August 1. The use fee deposit may be applied against use fees due and
owing under Section 10-2.402 at such time that the permittee has made timely payment of use fees for thirteen (13) consecutive months.
(iii.) In all cases where the business operates seven (7) or more months during any twelve (12) month period, pay to the City use fees under Section 10-2.402 no fewer than seven (7) months of any twelve (12) month period, and in no event less than the sum of twenty five ($25.00) Dollars per month for each month the business is operating and reports sales receipts. (iv.) In all cases where the business operates fewer than seven (7) months during any twelve (12) month period, pay to the City a use fee of Two Hundred ($200.00) Dollars for each month the business is closed or does not report any sales receipts.

6. All vessels over sixteen (16) feet in length operated for hire or used to conduct work in the harbor shall be equipped with a marine radio which shall be monitored at all times that the vessel is in operation.

7. All businesses operating in the harbor shall maintain all equipment, materials, facilities, machinery and vessels utilized in the operation of the licensed business in a good working condition, and such businesses shall only employ workers who are qualified to conduct the duties appropriate to the licensed business.

4. Resolution 96-36 Mandatory Activation Dates for Waterside Permits Section 4. All newly permitted businesses must have proof of insurance, other required permits and/or leases, and all required deposits in place prior to commencing business operations in Avalon Harbor. All new permits issued before January 31 will expire on April 1 of the year of issuance unless the business is operating as of that date. All new permits issued after January 31 will expire sixty (60) days after issuance unless the business is operating as of that time. The Harbor Master shall have the authority to grant one extension of thirty (30) days of the time within which a business must be operating, upon showing a good cause.

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 15
ORIGINATING DEP: Harbor CITY MANAGER: DMA
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Catalina Adventure Sailing RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Skippers Sea B&B LLC DBA Catalina Adventure Sailing, with the following conditions:

1. Report to the finance office on a monthly basis the number of night's rented, total gross receipts, and applicable taxes due.

2. Any direct loading or unloading of passengers on the Green Pleasure Pier shall be prior to 1000 AM or after 5:00 PM daily and for a period of time not to exceed 10 minutes.

3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application to add a second vessel to its current Waterside Permit. Catalina Adventure Sailing is proposing the addition of a second low admissions 42' hybrid sailing boat to allow for overnight short term guest occupancy while offering day and evening charters originating from Avalon Harbor.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) Will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and for goods; (V) Will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; 3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance recreational activities in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential revenue via Harbor Use Fees and Transient Occupancy Tax.

FOLLOW UP ACTION: Notify Catalina Adventure Sailing of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application

CITY OF AVALON

WATERSIDE PERMIT APPLICATION
275.00
An application fee of $262.00 is due at the time the application is submitted to the Harbor Department. Applications should be sent to the Avalon Harbor Department, P.O. Box 1085, Avalon, CA 90704, or delivered to the Harbor Master's office, #22 Pleasure Pier, Avalon, CA.

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.

Name of Applicant: Raphael Middleman
Name of Business/Project: Skipper's Sea B&B LLC D/B/A Catalina Adventure Sailing Mailing Address: 333 Washington Blvd #108 City Marina Del Rey. Zip 90292 Phone (Home) 347-204-3343 (Avalon business) 310-569-9843 Email Address: [email protected]
Green Pleasure Pier, Rented mooring in Avalon Harbor or Physical Avalon Location of Operations: Descanso Bay or Hamilton Cove Project/Business Description:_ Captained Zero-Emissions Sailing Charter On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

Duration:

Hours of Operation 24 hours
Days of Operation Monday-Sunday
Months of Operation Year-round

10. Does this activity include overnight accommodations on boat [X or shore ?

11. Describe the number, length, and types of watercraft which will be added to the City waters?
42' monohull sailboat
Number 1 additional Trips per day up to 3 Type with electric inboard Schedule _7:30 AM- 7:30 PM, 3PM- 7:30PM, 5PM-7:30PM

12. For scheduled services, including shore boats, where will queuing be and for what duration? Green Pleasure Pier, 10 minutes for boarding/disembarking 65059.0000018282917.1 Revised 2/10/17

13. How will people be transported to the facility? Pick up at the Green Pleasure Pier or by shoreboat How often? up to 3 times daily
Number of passengers per trip? up to 6 maximum

14. What berthing/mooring will be required? Rented mooring in Avalon Harbor/Descanso Bay/ Hamilton Cove

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based?_ 2

17. Communications:

VHF Channels: Phone: 310-569-9843
If answering machine, hours of operation: Monday-Sunday 8AM-6PM

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.

Applicant Name: Raphael Middleman
Business/Activity Name: Skipper's Sea B&B LLC D/B/A Catalina Adventure Sailing Applicant Signature: Date: 11/22/2022
Application Presented at the City Council Meeting on:

Application Approved:

Application Denied:

Application Approved with Attached Conditions:

City Manager Date
65059.00000\8282917.1 Revised 2/10/17
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65059 00000\8282917.1 Revised 2/10/17
City of Avalon
Receipt
Avalon Harbor
Receipt #: 15854-CC-3262
Date: 11/23/2022 9:56:24 AM
Däily Cash: Miscellaneous
Desc: WP Application Fee
Amount: $275.00 Signature
© NetMooring - Milton & Wanda Stone
Add additional
vessel to exasting
permit
Application fee pacd 111/23/2022
CA
Wednesday, 23 November, 202 9:57 am

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 10
ORIGINATING DEP: Harbor CITY MANAGER: AMM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Catalina Coastal Tours & Fishing, RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalina Coastal Tours & Fishing LLC, with the following conditions:

1. All operations to load and unload charter passengers will take place on Catalina Coastal Tours End Float during seasonal operation, except during off season from October to April when the End Float is not available and no longer installed, at which time all loading and unloading will be from the floats on the Green Pleasure Pier and shall not exceed 10 minutes.

2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

3. Applicant pays mooring fees as set by Avalon Municipal code while moored in Avalon harbor or affixed to End Float owned and operated by Catalina Coastal Tours & Fishing, LLC.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application to revise its current Waterside Permit to allow for Parasailing. Catalina Coastal Tours & Fishing LLC is proposing to remove 1 of the 3 vessels they have on their current Waterside Permit that is used for scheduled Eco Tours, and replace this boat with a Parasail boat with similar schedule.

Catalina Coastal Tours & Fishing LLC is aware of concerns regarding congestion during peak summer season. Catalina Coastal Tours & Fishing LLC have mitigated these impacts by essentially trading one scheduled tour for another. The previously scheduled Eco Tour that operated from the Catalina Coastal Tours private End Float would be replaced by a scheduled Parasailing boat to run from the same float. During off season operations when the Catalina Coastal Tours private end float is not available office operations would move to their 103 Sumner Catalina Coastal Tours office and Parasailing operations would run off docks located on the Green Pleasure Pier. The Applicant shall pay mooring fees as set by Avalon Municipal code while moored in Avalon harbor or affixed to Catalina Coastal Tours End Float.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and /or goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance recreational activities in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential Harbor Use Fees.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Visitors will be able to use the current operators offering the same services.

FOLLOW UP ACTION: Notify Catalina Charter Boat Inc of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application

CITY OF AVALON

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.

Name of Applicant: Scott il. Gorelozenko
Name of Business Project: Catalince Coastal TouRs + Fishug UC

3. Mailing Address: Fo Box 1512 City Avalon _Zip 90704

4. Phone (Home) (310) 513-3566_(Avalon business 526-290-2588 Email Address: [email protected]

6. Physical Avalon Location of Operations: 103 Sumuen Ave Project/Business Description: Remoue C-star and Kold Parasal Boat

8. On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

Duration:

Hours of Operation M-5 9 4m. 6 Pm
Days of Operation iousy Hush Sundan 7 Days.

Months of Operation Jicuzny - December

10. Does this activity include overnight accommodations on boat • or shore 0? No

11. Describe the number, length, and types of watercraft which will be added to the City waters?
* DOC# 11880z
Number 1 Boat Trips per day. Type PaRasail
Schedule PAm - is fm Mandan- Simdry /Hour tRips

12. For scheduled services, including shore boats, where will queuing be and for what duration? ¿inten Montlus Sworn Pier Summer Eud Float:
65059.00000\8282917.1 Revised 2/10/17
Summer @ Emil Flort

13. How will people be transported to the facility? Winten @103 Summer Ave How often? Every hour after Song wains, stay @fadfrat Sumnen Number of passengers per trip? 12

14. What berthing/mooring will be required? En 2 Float durin umnien pay usly Rate

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based? pione (Existry Stath-Resents

17. Communications:

VHF Channels: 10 si. 9 Phone: (626) 270-2855
If answering machine, hours of operation: Calls aRe Senance 24) 7 to Personal

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval. None

19. Please attach all permits and certifications required to legally perform the activity being applied for in this application.
* Please Note Existing Catalinis Coastal Tours Fishing
Permit Has 3 vessels I am Remoors C-star Cahich
was a scheduled Dolphin tour Boat with Sarre Schedule)
and Replacing with i Panasail Boat. Permit will be Mojo, Rectin, Paris The winten operations will Have Customen; Check.
in at our ios Serven Ave Ketail Stone and we will walk.

Custorevis to thie Gueen Pien, Fon Pickup.

The Summen months customers will Check in at our
End Float, Stin waiin and Stage an ouk Back Seats to
Load on vessel at fud float with wo inpact on Harkon Pier *Note: City to benefiet Shem Wisht mooni, fee of vessel on fuelflat androman Harbon ase tax in comparison to the Remountin.

Applicant Acknowledgement
Applicant agrees that if this Waterside Permit is granted, he/she will conduct his/her business in accordance with all federal, state, and local laws, including the City's planning and zoning laws.

Applicant Name: Scott W. Gorekzenter)
Business/Activity Name: Catalice Coastal Toures + Sishig Lic Date: _ 12/15/2022
Application Presented at the City Council Meeting on:

Application Approved:

Application Denied:

Application Approved with Attached Conditions:

City Manager Date
65059.0000018282917.1 Revised 2/10/17
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====
65059.0000018282917.1 Revised 2/10/17
Date: December 15, 2022
From: Scott M. Gorelczenko
Catalina Coastal Tours & Fishing LLC
103 Sumner Ave.

Avalon, Ca. 90704
To: Avalon Harbor Department
Orne Carstarphen
PO Box 707
Avalon, Ca. 90704
Subject: Harbor Permit Revision
Mr. Carstarphen,
The purpose of this letter is to provide additional information in regards to my existing Waterside permit revision request.

As a long standing Waterside Permit holder under Catalina Coastal Tours & Fishing LLC we have forged a beneficial relationship with the City of Avalon providing Charters and public services. Our reputation and good standing with the City sets a president for other Waterside permit holders and applicants.

As we move into the 2023 season our business focus is to provide more activities for visitors while increasing the revenue to both our organization and the City of Avalon. We are seeking approval to remove 1 of the 3 vessels on our current waterside permit that offers scheduled Eco Tours and replace with a Parasail boat with a similar schedule.

We understand the Harbors objective is to authorize businesses that do not impact the congestion of the Harbor and Green pier. In keeping with that objective we want to affirm that this change will have no impact because we will operate this activity from our private End Float during the summer months.

This was a recommendation discussed last year with you when we were looking to implement this activity.

Additionally, the financial benefits to the City in regards to the daily mooring fees and increased Harbor use Tax will be revenue that the City did not receive from our other activity.

It is our request that you provide the City Council your recommendation to approve this change with no conditions so we can move forward with purchasing equipment for a launch in 2023.

If you have any questions please let me know.

Thank you.

Catalina Coastal Tours & Fishing LLC

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 17
ORIGINATING DEP: Harbor CITY MANAGER: AMM
PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Catalina Island Mermaids RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Catalina Island Mermaids, with the following conditions:

1. Use of Step Beach be limited to Mermaid swimming classes as so that no classes may be allowed from June 16 to September 14 during peak summer season. From September 15 to October 14 and from Palm Sunday to June 15 weekend use of Step Beach will not be allowed however weekday use may be approved upon request to the Harbor Master. From October 15 to Palm Sunday of each year (off season) use of Step Beach may be approved upon request to the Harbor Master.

2. Middle Beach area behind the Wrigley Stage may be used for Mermaid swimming classes as long as the instructor led classes do not block public access to the beach or access to swim area.

3. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application proposing Catalina Island Mermaids use of Middle Beach area behind the Wrigley Stage and use of Step Beach for PADI approved Mermaid Swimming Classes. These instructor led classes shall not exceed 4 students per instructor led course that specializes in use of a mono-fin or mermaid fin. Instructor will insure that students have a background in swimming and are reasonably comfortable in the water prior to taking classes.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
(2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (i) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and /or goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance recreational activities in the Avalon Harbor.

FISCAL IMPACTS: Undetermined. Potential Harbor Use Fees and Transient Occupancy Tax.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Visitors will be able to use service currently available shore side.

FOLLOW UP ACTION: Notify Catalina Island Mermaids of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application

CITY OF AVALON

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.
(THOMAS)
Name of Applicant: ELAINA GARCIA
Name of Business/Project: CATALINA ISIAND MERMAIDS
Mailing Address: PoB $21 _ City AVALON Zip 90704

4. Phone (Home) 601-699-9411 (Avalon business)
ini Email Address: CATALINA ISLAND MERMAIDS @GMAIL.IOM

6. Physical Avalon Location of Operations: FREELANCE

7. Project/Business Description: PADI CLASSES INCLUDING MERMAID AND SCUBA CLASSES.

On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.

Duration:

Hours of Operation 8AM - 5PM
Days of Operation MONDAY - SUNDAY
Months of Operation VANVARY - DECEMBER

10. Does this activity include overnight accommodations on boat • or shore O? No

11. Describe the number, length, and types of watercraft which will be added to the City waters?
Number_ 0 Trips per day. Type
Schedule

12. For scheduled services, including shore boats, where will queuing be and for what duration? NA
65059.00000\8282917.1 Revised 2/10/17

13. How will people be transported to the facility?
How often?
Number of passengers per trip?

14. What berthing/mooring will be required?_ NONE

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based?_N/A

17. Communications:

VHF Channels: Phone: 801-699-9411
If answering machine, hours of operation:

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.

Application Approved:

Application Denied:

Application Approved with Attached Conditions:

City Manager Date
65059.00000\8282917.1 Revised 2/10/17
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AVALON BOAT

AREA STAND
==:::
65059.00000\8282917.1 Revised 2/10/17
City of Avalon
Receipt
Avalon Harbor
Receipt #: 15955-Check-153
Date: 12/13/2022 2:38:05 PM
Daily Cash: Miscellaneous
Desc: Waterside Permit Application fee
Amount: $275.00 Signature
© NetMooring - Milton & Wanda Stone
Tuesday, 13 December, 2022 2:38 pm

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 18
ORIGINATING DEP: Harbor CITY MANAGER:

PREPARED BY: Orne Carstarphen, Harbor Master
SUBJECT: Waterside Permit Application - Trace Marine Environment Inc.

RECOMMENDED ACTION(S): City Council make the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and grant the Waterside Permit to Trace Marine Environment Inc. with the following conditions

1. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.

REPORT SUMMARY: The applicant has submitted a Waterside Permit Application to offer mobile pump out services in Avalon Harbor between the months of May to October. The Waterside Permit application was received seven days after the deadline of December 15, 2022.

Trace Marine Environment Inc. proposes the use of a 26' pump out boat to conduct mobile pump out services as well as oil discharge control to boaters in Avalon Harbor. Trace Marine Environment Inc. proposes to operate 7 days a week as scheduled by client from May through October, and between the hours of 8:00 a.m. to 5:00 p.m. The vessel will obtain a mooring in the Avalon Harbor.

Section 10-2.416 of the Municipal Code provides that a waterside permit may only be granted where the City Council is able to make the following affirmative findings:
(1) The project will not result in a substantial alteration of the City's present or planned waterside uses of the Avalon Harbor;
2) With regard to transportation and circulation, the project (i) will not generate substantial additional boat trips, including shoreboat trips, or other movement within Avalon Harbor; (ii) will not have a substantial negative impact upon existing mooring, docking, or other anchorage facilities; (iii) will not have a substantial impact on other modes and systems of transportation; (iv) will not result in substantial alterations of present patterns of circulation or movement of people and for goods; (v) will not increase traffic hazards to swimmers, boaters, or other existing activities; and (vi) will not restrict or alter existing coastal access; (3) The project will not have a substantial impact upon, and will not result in, a need for new or altered governmental services, including but not limited to fire, police, maintenance of facilities, and harbor department services;
(4) The project will not result in the use of substantial amounts of fuel or other forms of energy or substantially increase the demand upon existing energy or require the development of new sources of energy;
(5) The project will not result in the need for new utility systems or a substantial alteration of existing sources or systems for power, natural gas, communications, water, sewage disposal or solid waste;
(6) The project will not obstruct any scenic vista or view open to the public, and will not result in the creation of an aesthetically offensive site which is open to public view; (7) The project will not result in a substantial negative impact upon the quality and quantity of existing recreational opportunities or result in alterations or restrictions to coastal access;
(8) The applicant is fit to be entrusted with the privileges of a permit, in that he has not engaged in prior violations of the City's harbor regulations, including the provisions of this article, has timely paid any harbor-related fees and has not presented checks returned for insufficient funds.

GOAL ALIGNMENT: Enhance pump out services offerings. If application is approved Public would choose between two companies offering Black Water Pump out Services.

FISCAL IMPACTS: Undetermined. Potential Harbor Use Fees.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Boaters will be able to use the existing mobile pump out services.

FOLLOW UP ACTION: Notify Trace Marine Environment Inc. of the City Council's decision.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Waterside Permit Application
rice 4t 12/22/22€4

CITY OF AVALON

WATERSIDE PERMIT APPLICATION
An application fee of $275.00 is due at the time the application is submitted to the Harbor Department. Applications should be sent to the Avalon Harbor Department, P.O.

Box 1085, Avalon, CA 90704, or delivered to the Harbor Master's office, #22 Pleasure Pier, Avalon, CA.

Deadline for new applications is December 15th of each year.

Please complete this application in full detail. Questions that require further details should be answered on an attached sheet.

Richard Brister
Name of Applicant:

2. Name of Business/Project: Trace Marine Environment Inc. 360 Central Ave. Suite 800 City St. Petersburg Zip 33701 Mailing Address:
949-533-6764 (Avalon business) pump out service
Phone (Home)
[email protected]

5. Email Address:

6. Physical Avalon Location of Operations: Avalon, Descanso & Istmas Harbor Provide pump out services & oil discharge response

7. Project/Business Description:

8. On the map provided, sketch the project/business activities, showing the proposed locations of all waterborne traffic and activity.
oi Duration:
8am - 5pm
Hours of Operation
7 Days of Operation
May - October & as necessary
Months of Operation

10. Does this activity include overnight accommodations on boat Lor shore

11. Describe the number, length, and types of watercraft which will be added to the City waters?
Number 2 Trips per day n/a Type 26 ft pump out boat
Monday - Sunday, 8am - 5pm
Schedule

12. For scheduled services, including shore boats, where will queuing be and for what duration? At mooring locations in the harbor
65059 0000018282917.1 Revised 2/10/17

13. How will people be transported to the facility? n/a How often? n/a
Number of passengers per trip? n/a

14. What berthing/mooring will be required? 1

15. If the proposed business/activity requires a new structure or modification to harbor facilities or the harbor itself, including the moles and pier, attach the proposed plans.

16. How many new employees would be Avalon-based Possibly 2 or may commute from the mainland

17. Communications:

VHF Channels: 68 Phone: 949-533-6764
If answering machine, hours of operation: 8am - 5pm

18. If a sign will be required, list the size and submit a drawing. Please note that a Sign Permit Application must be obtained from and submitted to the Planning Department for approval.

Applicant also agrees to abide by the terms of this Permit and all rules, regulations, and/or restrictions placed upon it by the City Council. Applicant must follow all regulations regarding the use of City facilities. This Permit may be revoked, suspended, or further conditioned at any time by the City Council for violations of the foregoing, or immediately in the City Manager's discretion if the public's health, safety, or well-being is threatened by the actions or inactions of the Applicant. Failure to pay use fees shall also be a violation of the terms of this Permit. Any decision made by the City Council regarding this Permit is final and conclusive. Decisions of the City Manager may be appealed to the City Council it the City is notitied within 10 days of the City Manager's decision, but the City's Manager's decision shall remain in effect until the next regular meeting of the City Council at which an appeal may be heard.

Richard Brister
Applicant Name:

Trace Marine Environment Inc.

Business/Activity Name:

Applicant Signature: Bied W. Bute Date: 12/8/22
Application Presented at the City Council Meeting on:

Application Approved:

Application Denied:

Application Approved with Attached Conditions:

City Manager Date
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65059.0000018282917.1 Revised 2/10/17
Secretary of State
Certificate of Qualification / Registration
1, SHIRLEY N. WEBER, PH.D., California Secretary of State, hereby certify:

Entity Name: Trace Marine Environment Inc.

Entity No.: 5185280
Registration Date: 08/03/2022
Filing Type: Stock Corporation - Out of State - Stock
Formed In: DELAWARE
The above referenced entity complied with the requirements of California law in effect on the Registration Date for the purpose of qualifying to transact intrastate business in the State of California, and that as of the Registration Date, said entity became and now is duly registered, qualified and authorized to transact intrastate business in the State of California, subject however, to any licensing requirements otherwise imposed by the laws of this State and that the entity shall transact all intrastate business within California under the Entity Name as set forth above.

No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity.

OF IN WITNESS WHEREOF, I execute this certificate and affix SEAL
ty the Great Seal of the State of California this day of August SURE
08, 2022.
413
SHIRLEY N. WEBER, PH.D.

FORNIA Secretary of State
Certificate No.: 035452432
To verify the issuance of this Certificate, use the Certificate No. above with the Secretary of State Certification Verification Search available at bizfileOnline.sos.ca.gov.

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 19
ORIGINATING DEPT: Public Works CITY MANAGER: QMM
PREPARED BY: Robert Greenlaw, Public Works Director
SUBJECT: Rehabilitation of Floats 5 and 5a
RECOMMENDED ACTION(S): Authorize the City Manager to negotiate and execute contracts) for rehabilitation of Floats 5 and 5a for a not-to-exceed amount of $75,000.

REPORT SUMMARY: During the December 20, 2022 City Council Meeting, the City Council made the determination that a competitive market does not exist for the maintenance of City- owned floats. The City Council authorized the City Manager to dispense with the competitive purchasing process and designated Catalina Boatyard Inc. and Diversified Composites Inc. as vendors meeting the Economic Efficiency standard as outlined in the Avalon Municipal Code section 3-4.111 (C).

Per the terms of the procurement policy, the contract award must be brought to City Council for approval.

City Staff have reached out to Catalina Boatyard Inc. and Diversified Composites Inc. for proposals to rehabilitate Floats 5 and 5a. An initial proposal has been provided by Catalina Boatyard, Inc. A proposal from Diversified Composites Inc. has not yet been received.

Mole Floats 5 & 5A are integral to the Cabrillo Mole Transportation Terminal and part of a necessary dock system that allows for the loading and unloading of passengers and freight to Avalon Harbor. The floats are overdue for repair and refurbishment.

To expedite the rehabilitation process and facilitate the floats being completed by March 31, 2023, Staff are seeking authorization to enter into negotiations to determine the vendor with the best value and availability to fulfill the outlined scope of work by the intended deadline for a not- to-exceed amount of $75,000.

FISCAL IMPACTS: Not-to-exceed amount of $75,000 to repair and refurbish floats 5 & 5A is included in the float maintenance budget for Fiscal Year 22/23.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Maintenance of City- owned floats will not be expedited efficiently.

FOLLOW-UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: None.

CITY OF AVALON CITY COUNCIL
MEETING DATE: January 17, 2023 AGENDA ITEM: 20
ORIGINATING DEP: Public Works CITY MANAGER: JIM
PREPARED BY: Robert Greenlaw, Director of Public Works
SUBJECT: Avalon Wastewater Treatment Plant Aeration Basin Diffuser Replacement Equipment Procurement
RECOMMENDED ACTION(S): Authorize the procurement of supplies, equipment and services for the replacement of the Avalon WWTP aeration basin diffuser system for a not to exceed cost of $41,700.00.

REPORT SUMMARY: The City's wastewater treatment plant operator, Montrose Environmental (Montrose) is completing planned major maintenance on one of the three aeration basins at the plant. The remaining two basins are planned to be completed one at a time over the next two years.

The work scope requires the basin to be taken out of operation during the non-peak season, cleaning of the basin, removal of the existing aeration infrastructure and installing a replacement system. This work in addition to the previously authorized upgrade of the processed air system will yield a much more efficient biological process at the plant. The biological system requires a minimum air flow for normal operations. Without sufficient air the biological process breaks down, which causes an upset at the plant, which could lead to a process failure.

Montrose requested a proposal for replacement equipment from Environmental Dynamics International (EDI) - as their firm is the original equipment manufacturer of the FlexAir® Aeration/Mixing System currently in service at wastewater treatment plant. They supplied confirmation that there firm is the sole manufacturer of the FlexAir® Aeration/Mixing System.

Specific to the proposed maintenance activities in the aeration basin, neither the original nor replacement membranes are commodity products. As such, the City's procurement policy provides for a sole source acquisition under AMC Section 3-4111 - Exceptions from Bidding and Other Competitive Procedures, (b) Sole Source Vendors:

When there is only one source that provides the necessary public project, services, goods and equipment to ensure compatibility with existing City public projects, services, goods or equipment, or the public project, services, goods or equipment are proprietary in nature, the City may procure the public project, goods or services from the sole source.

EDI's proposal was for $35,700 which includes equipment, system design and drawings, and operation and maintenance manuals. The total procurement cost is $41,770 with Montrose contractual markups and contingencies. Montrose will complete the installation under their current operations once the equipment is procured.

GOAL ALIGNMENT: Infrastructure reliability and safety.

FISCAL IMPACTS: Capital Project #205012 was approved by City Council in the 2021-22 budget and sufficient funding remains to implement the project CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The WWTP aeration basin system will eventually fail.

FOLLOW UP ACTION: Direct Montrose Environmental to procure the supplies, equipment and services; and implement the project.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS: Montrose Environmental ASA, EDI proposal and sole source justification.

Additional Services Request Form
Acct No. Project Name Additional Services Project Number Emerpency Quote Date 029RC1-2072 Budeet Fund jum Of Proicet Coss
Aeration Basin 2120 No 9-16-22 107 Sewer Fund
$ 41,770.00
Task Description Position Position Position Position
Position Extended Price
Aeration Basin Diffuser Replacement Project O&M Specialist Fleld Tech 2 Field Tech 1 Manager Plant Manager
Total Hours
Hourty Rasa 110.00 85.00 75.00 65.00
Edmated MEG Libor Cost 0.00

0.00 0.00 0.00 0.00
•Part Quanity Materials
Unit Cost
Diffuser replacement for 1 Aeration Basin at WWT see attached proposal 35,700.00 35,700.00
Freight
Sales Tax
Contingency Reserve for unforseen or unknown expenses for this ASA 2,500.00 2,500.00 Subtotal 35,700.00
105 Markup 3,570.00
Total Materials 41,770.00
Terms and Conditions: Subtoralis
Please note that shipping, handling charges and Sales Tax are not included in this quote and will be charged accordindly as invoiced to Es. 1055 Markup All Contingency fees are placeholders for City Approval purposes only and will oniy be billed at actual cost as invoiced to ES from the vendor. Total Sub Contractor cost
$ 7000
PROJECT TOTAL •
Ascertance: Mystine, wo essent this ayotacon and the terms A sondhiom.

Environmental Dynamics International
5601 Paris Rd • Columbia, MO 65202
P: (573) 474-9456 [email protected]
F: (573) 474-6988 www.wastewater.com
November 2, 2022
TO: Avalon, CA WWTP
RE: Aeration Diffusers- EDI Sole Source
Dear Mr. Castro,
Environmental Dynamics International (EDI) is the original equipment manufacturer of the FlexAir® Aeration/Mixing System currently in service at wastewater treatment plant. Your system was engineered, designed and manufactured at our headquarters located in Columbia MO. EDI is the sole manufacturer of the FlexAir® Aeration/Mixing System.

Specific to the proposed maintenance activities in the aeration basin, neither the original nor replacement membranes are commodity products. Membrane manufacturing employs proprietary membrane compounds, membrane extrusion processes, perforation processes, and quality control programs. EDI is the sole manufacturer of the EDI EPDM replacement membranes for the FlexAir disc® diffusers employed in your Aeration/Mixing System.

Please do not hesitate to contact EDI with questions or if you require any further clarification.

Sincerely,
Scott V. Hentges
Aftermarket Account Manager
Environmental Dynamics International, Inc.

Environmental

DYNAMICS INTERNATIONAL
A ReXOM BRAND

AVALON CA
Proposal for Design, Supply
and Installation Inspection
ofthe Wastewater
Treatment System Upgraded
with
FlexAir™M Aeration
Proposal cd 11207.02
September 16, 2022
5601 Paris Rd, Columbia, MO 65202
aeration for life™ +1 573 474 9456 | www.wastewater.com Table of Contents
Project Overview
System Design Parameters
Diffuser Selection.....

Aeration System Equipment.

Pricing..

Questions or Comments?
Ters and Conditions... .....8
Project Overview
EDI is pleased to offer aeration equipment for a single aeration basin at the Avalon, CA facility.

INCLUDED IN OVERALL SCOPE OF SUPPLY
Aeration system design submittal and shop drawings
1-year warranty from startup (or 18 months from shipment, whichever comes first) Operation & Maintenance Manuals
AVALON, CA 2 of 12
A Mexom BRAND CD11207.02
System Design Parameters
EDI understands that the existing aeration basins require upgraded diffused aeration. EDI has used the following information provided by the engineer to put together this aeration system proposal for one basin:

Aeration Basin
# Dimension of each Basin (ft) 40 × 40 × 13 SWD
Design SOR (Ib/day) per Basin 4,104
*Based on 0.98 safety factor
Based on these assumptions, quantity of diffusers is presented in the following table:

Aeration Basin
Diffuser Model/Size Standard 9" Disc
# of Diffusers Required 200
Table below summarizes the airflow, and standard oxygen transfer efficiency for each condition.

Aeration Basin
Design Airflow (scfm) 685
Design SOTE (%Ift) 1.99
VALON, C 3 of 12
A Nexom BRAND :D11207.0:

Diffuser Selection
FlexAir™M g" ISM Disdiffuser
The 9" disc diffuser has a glass-fiber reinforced polypropylene body for maximum chemical, temperature, and UV resistance. This diffuser offers a triple check valve design which minimizes entry of liquid/solids into piping. Integral Saddle Mount provides ease of installation and maintenance with maximum mechanical strength.

Patented EZ-Seal™ for quick membrane installation.

AVALON, CA 4 of 12
A WeKom BRAND CD11207.02
Aeration System Equipment
Design and Supply of all in-tank FlexAir™ aeration equipment required to make a fully functioning system including all in-water components after the horizontal flange and including all in-water components including but not limited to:

AERATION BASIN (ONE LISTED BELOW)
1 6" Schedule 10 316L Stainless Steel Drop Pipe. Drop pipe provided with flanged top connection and plain end bottom. The drop pipe is to be supported by the contractor such that no downward force is transmitted to the aeration piping system. 1 6" 316 Schedule 10 Stainless Steel Coupling. Coupling joins plain ends of SS drop and PVC manifold.
1 6" Schedule 40 PVC Air Distribution Manifold Assembly. Assembly provided factory assembled and shipped in sub-assemblies. Assembly includes flanged connections at all field joints, flanged header connections and stainless-steel flange fasteners. 10 3" SDR 26 PVC Lateral Assembly. Assembly provided factory assembled and shipped in sub-assemblies. Assembly includes flanged connections at all field joints, diffuser outlet ports, end cap and stainless-steel flange fasteners.

Lot 316 Stainless Steel Pipe Support for air manifolds. Anchor bolts included.

Lot GFPP Super Strut Pipe Support for lateral piping. Anchor bolts included 200 FlexAir Disc Diffuser Assembly. Diffuser assembly provided factory assembled.

Assembly includes disc holder, membrane, and retainer ring.

Lot Purge system.

Field service for one tank, Start-up, commissioning, and initial training combined with other supplied equipment as per specifications (allowance of 1 trip with a total of 1 day on site)
Proposal Notes:
complete installation of the system. Surplus components are furnished as an extra service by EDI to minimize installation delays associated with normal jobsite losses. Surplus items are supplied at no extra cost.

3. This proposal is subject to standard EDI terms and conditions attached.

4. Only hardware is offered by EDI. Unless specifically quoted, installation and labor by others.

AVALON, CA 5 of 12
A Alexor BRAND CD11207.02

5. EDI offers patented equipment and systems. Equipment offered by EDI in this proposal may be covered by one or more patents.

6. This proposal has not been published and is the sole property of Environmental Dynamics International. It is lent to the borrower for his/her confidential use only. In consideration of this loan, the borrower promises to return it upon request and agrees that it shall not be reproduced, copied, shared, lent, or otherwise disposed of, directly or indirectly, nor used for any purpose other than that for which it is specifically furnished.

Items SpecificallNot Included:

Shipping
Material offloading and secure on-site storage
• Installation of all supplied equipment, including labor and materials Pricing
Price for the design and supply of the following as described in the scope of work above included in bid items:
$35,700 USD, Taxes not included (Ex Works: Columbia MO)

QUOTE VALIDITY
The quote being provided will be in effect only for a period of 30 days. Should the company be awarded a purchase order during that 30-day period, it is understood that shipment of the product will be allowied within a period of 180 days from the date of the purchase order. Should the goods not be required to be delivered until after that time horizon, the company reserves the right to adjust pricing to reflect inflationary changes incurred and expected until the shipment date is reached.

LEAD TIME / DELIVERY
6-8 weeks after confirmation of order
• shop drawings / submitals:

Delivery of equipment: 12-14 weeks after submittals approval AVALON, CA 6 of 12
A Plexom BRAND CD11207.02
Questions or
Comments?
Any questions or comments can be directed to:

Greg Roppelt
Regional Sales Manager
[email protected]
239-565-8873
Scott Hentges
Account Manager
[email protected]
573-507-5170
Environmental Dynamics International, A Nexom Brand
[email protected]
+1-573-474-9456
5601 Paris Rd. • Columbia MO • 65202
www.wastewater.com
AVALON, CA 7 of 12
A Nexom BRAND CD11207.02
Environmental

DYNAMICS INTERNATIONAL
A ReXOm BRAND
Manufacturers Limited Mechanical Warranty Statement
The warranty provided by Environmental Dynamics International Inc., (EDI) is limited to the terms set forth in this Warranty Statement. All other warranties, expressed or implied are excluded and disclaimed in their entirety.

EDI gives no other warranty of any kind, nature or description, expressed or implied, other than the limited warranties set forth herein, and this warranty exclusion includes but is not limited to warranties of merchantability and warranties of fitness for a particular purpose, both of which are excluded and disclaimed in their entirety.

Equipment manufactured by EDI is warranted to be free from defects in materials and workmanship as applicable; (a) Standard twelve (12) months from start up of the equipment or eighteen (18) months from shipment, whichever occurs first
Defective parts) shall be remedied by repair or replacement of the defective parts) only shipped freight included, FOB original shipping point?. Costs incurred by EDI (on or off site) shall be reimbursed by the Purchaser / Owner should EDI find a deficiency to not be due to equipment covered by this warranty.

The following are excluded from this warranty, but shall not be considered to be limiting to other exclusions:
cleaning and de-watering, labor, equipment manufactured by others 5, process and performance related to system design or biological process performance, decomposition, abnormal wear and/or damage caused by site conditions; chemical action, chemical precipitate, physical abrasion points or abrasive materials, water velocities greater than 2ft/sec or as approved by EDI, blunt trauma forces, faulty or substandard structural components, faulty or inadequate maintenance/operation®, equipment and services provided under a contract which is in a current state of default due to non-payment. EDI exclusively assumes no responsibility of expense or liability for (a) equipment repairs made or contracted by Purchaser or Owner without EDI's written consent; (b) modifications to any of EDI's equipment made by others which are not approved in advance and in writing by EDI; (c) failure of the Owner to promptly notify EDI of observed defects and or deficiencies which occur during the warranty period (d) work by others®, (e) field modifications to allow for removal or replacement of EDI components.

FOB original shipping point; indicates the point of which risk of loss passes 2 Cost incurred include shall not be limited to; travel, housing, labor and materials; that have been expended to research and repair such deficiency.

Responsible party for the equipment at the time of the warranty claim; generally dictated by project status, pre (Purchaser) or post (Owner) project hand over.

Accessing/uninstalling/replacing/reinstalling any parts.

SEDI does not warranty equipment manufactured by others. "By others" Includes butis not limited to: bowers, DO probes, electrical panels, engines, motors, any electrical apparatus, etc. Such equipment bears warranties of the respective manufacturers. Labor costs associated with warranty repairs of equipment manufactured by others shall be borne by others. ® Please refer to your EDI 10&M manual for maintenance and operation instructions.

Default due to non-payment shall not include EDI approved holdbacks. ® Work by Others shall include but not be limited to; materials furnished, or labor provided by any contractor, subcontractor or material supplier not working directly for or directly under EDI.

AVALON, CA 8 of 12
A ReXOm BRAND CD11207.02
Environmental

DYNAMICS INTERNATIONAL
A NexOm BRAND

STANDARD TERMS AND CONDITIONS OF SALE FOR EQUIPMENT &

INSTALLATION SERVICES
22022
Posted to the l west end ap and propost rade sup real el l and can any be upe re te in s acknowledgement of acceptance of the most recent EDI terms and conditions of sale. No order for EDI's products or services shall be binding upon EDI until accepted in writing by an authorized official of EDI or by shipment or other performance of such order. Any order shall be subject to these terms and conditions, which in concert with any supply contract shall constitute the entire agreement between the parties, and acceptance shall be expressly conditioned on assent to such terms and conditions by Purchaser, which assent shall be deemed given unless Purchaser shall expressly notify EDI to the contrary within five (5) days after receipt of any acknowledgment of order. No understandings or agreements which differ from, modify or add to these terms and conditions and no additions, deletions or modifications proposed by Purchaser in its printed forms or otherwise shall bind EDI regardless of whether nor not such understandings, agreements, additions, deletions or modifications would materially alter the terms hereof, unless made in writing and signed by both parties. All purchase orders or contracts must be approved and accepted by EDI. Stenographic and clerical errors are subject to correction.

2. CANCELLATION. No accepted offer may be cancelled or altered by Purchaser except upon terms and conditions accepted by EDI in writing, and no changes to this document will be binding unless set forth in writing and manually signed by EDI. This offer may be revoked by EDI at any time before it is accepted by Purchaser and will automatically expire 30 calendar days after its date if Purchaser has not accepted it before then. Neither Purchaser of this offer nor any conduct by EDI (including but not limited to shipment of goods) will oblige EDIto sell to Purchaser any quantity of goods in excess of the quantity that Purchaser has committed to purchase from EDI at the time of such acceptance or conduct.

3. PRICES; INVOICING. All prices are EXW, EDI facility and stated in USD unless otherwise noted in the proposal. The Company may make partlal billings of the contract price as various components of the equipment are shipped. If production or shipment of completed goods, or other Company performance, Is delayed by Purchaser, Company may immediately invoice, and Purchaser will pay, the percentage of the purchase price corresponding to the percentage of completion. For International Orders: When the Company manufactures equipment to meet schedules established by the Purchaser, the Company reserves the right to invoice the Purchaser for the goods when ready for shipment.

4. PAYMENT TERMS. Unless otherwise specified herein, payment terms are cash net 30 days from date of invoice. Amounts past due are subject to a service charge of 1.5% per month, 18% per annum, on the unpaid balance. Company reserves the right, among other remedies, to delay or suspend further shipments or require full or partial cash payment in advance until all sums due have been paid.

Purchaser shall be liable for all costs and expenses incurred by Company in collecting any overdue amounts, including without limitation reasonable attorneys' fees. Any pro-rata payments required hereunder shall be made as shipments are made.

CREDIT APPROVAL. All payment terms set forth in this document are subject to Company's approval of Purchaser's credit, in Company's discretion; if such approval is withheld, payment will be due in advance of Company's performande. Performance of any contract by the Company is contingent upon Purchaser credit approval. Credit may be waived in lieu of a project materials payment bond. A materials payment bond supplied to the project Owner or Engineer by the Purchaser Is acceptable. EDI reserves the right to hold shipment on delinquent accounts.

6. DELIVERY; STORAGE. Unless otherwise agreed to by Company in writing, all shipments are EXW Company's warehouse.

Regardless of shipping terms or freight payment, Purchaser will bear all risk of loss or damage in transit. Company reserves the right to make delivery in installments, unless otherwise expressly stipulated herein; all such installments to be separately invoiced and paid for when due per invoice, without regard to subsequent deliveries. Delay in delivery of any installment will not relieve Purchaser of its oblipations to accept remaining deliveries.
eco
AVALON, CA 9 of 12
A ReXOr BRAND CD11207.02
Shipping dates are estimates only and are subject to Company's lead time policy. Company shall make all reasonable efforts to have Goods delivered to Purchaser on or about the date or within the time frame of the Order, but Company shall not be liable for any failure or delay in delivery for any reason. Statements as to expected date of hardware shipment represent the Company's best judgment, but shipment on those dates is not guaranteed. The Company will endeavor to meet the scheduled date(s) but cannot be held responsible for its failure to do so for causes beyond its reasonable control and in no event shall it be liable for any loss or damage resulting from its fallure to deliver within the time specified herein. ThePurchaser hereby waives all claims to damages caused by delay in shipment or delivery of hardware. Great care is taken in packing Company's Product. Company cannot be held responsible for damage after having received "in good order" receipts from the transportation company. All claims for loss and damage must be made by Purchaser to the carrier.

Purchase orders issued by Purchaser and placed with Company are irrevocable and Purchaser is contractually obliged to take delivery and pay for all Goods ordered and supplied or made available by Company pursuant to such purchase order. If the Company does not receive forwarding instructions sufficient to enable it to dispatch Goods within fourteen (14) days after notice to Purchaser that such Goods are ready, Purchaser shall be deemed to have taken delivery from such dates and Company will store all items at Purchaser's risk and expense, and will invoice Purchaser for any remaining unbilled contract price plus one-half percent (%) of the total contract price for each month the shipment is delayed and a fee of One Hundred Dollars ($100.00) per day for storage and maintenance. Unless otherwise agreed upon by the parties in writing, if Purchaser does not accept delivery or collect goods from Company when made available at the agreed delivery point in accordance with the Contract, Purchaser aiso will reimburse Company for any demurrage, transport or futile delivery costs incurred by Company.

7. TAXES. Prices do not include any state or local sales, use, excise, or other taxes or assessments or import or export duties imposed on the goods provided in the proposal unless explicitly stated to be included in the proposal. The Purchaser is responsible to pay and/or report all of the above referenced taxes.

8. LIMITED WARRANTY. Contracts for purchase of equipment and services accepted by EDI exclude any process or performance warranties related to system design. Company warrants title and that the Goods provided in the proposal shall conform to the Company's standard sales specifications in effect at the time of manufacture or the specifications agreed by the parties in writing and contained or referenced in the Purchase Order. Additionally, no biological or process performance warranties are expressed or may be Implied by the participation of EDI in this contract - specifically, to the maximum extent permitted by law, Company makes no other representation or warranty of any kind, and hereby expressly disclaims all other representations or warranties, express, implied, statutory or arising from a course of dealing, usage of the trade, including without limitation any representation or warranty as to merchantability, fitness for a particular purpose, or any other matter with respect to the goods, whether used alone or in combination with any other goods, processes, or materials or services. Company's sole liability and Purchaser's sole remedy for breach of warranty are specifically limited to the repair of the goods (or re-performance of services when applicable) or the cost thereof where Company fails to perform such repair necessitated by a breach of warranty, and such liability and remedy are exclusive of all other liabilities and remedies. Should these remedies be found Inadequate or to have failed of their essential purpose for any reason whatsoever, Purchaser agrees that the return of the amount paid by Purchaser to Company for the purchase of the goods which fail to conform with the warranties shall be considered a fair and adequate remedy and prevent the remedies from failing of their essential purpose. Biological or process performance warranty for systems supplied by the Company shall be specifically and independently detailed and signed as a separate contract by an authorized Officer of the Company.

9. LIMITATION OF LIABILITY. To the extent permitted by law and not withstanding any provision to the contrary in the contract, in no event shall Company be liable and Purchaser waives all claims against Company for consequential, incidentai, indirect, exemplary, punitive or special damages, whether or not based upon Company's negligence or breach of warranty or strict liability in tort or any other cause of action arising, directly or indirectly, in respect to the product or services covered hereunder, or the use or failure thereof, including, but not limited to, damages for loss of production, loss of profits, loss of business revenues, loss of capital, failure to realize expected profits or savings, overhead costs, loss by reason of service interruption or increased expense of operation, loss of goodwill, loss of reputation, loss of value in any intellectual property, damages or liquidated sums payable pursuant to other agreements or to other third parties, other exclusive remedy shall fail of its essential purpose.

10. GOVERNING LAW. Any proposal for equipment supply made by the Company as well as any contract between the Company and the Purchaser are deemed to be executed at Columbia, Missouri, USA, subject to correction for typographical or mathematical errors and governed by Missouri law.

11. ARBITRATION. Any controversy or claim arising out of or relating to this contract/order or breach thereof will be finally settled by arbitration in accordance with the Rules of Commercial Arbitration of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction over the controversy or clalm in the State of Missourl. Arbitration proceedings shall occur in the county of residence of Company in the State of Missouri.

AVALON, CA 10 of 12
A Rexom BRAND CD11207.02

12. FORCE MAJEURE. Shipments or deliveries may be totally or partially suspended or delayed by Company during any period in which the Company may be prevented or hindered from manufacture, delivery or supply through any circumstances outside Company's control of Company. Company shall not incur
any liability to Purchaser in respect of such suspension or delays. Purchaser shall bear any costs incidental to Purchaser's delay or failure in acceptance of Product or any other performance.

13. SPECIAL HAZARDS. Unusual conditions such as rock, poor foundation soils, excess water or other unusual site or safety conditions are not covered by this standard Company proposal. Extra costs emanating from unusual site or safety conditions shall be negotiated with written agreements developed at or subsequent to the time of discovery and prior to further work being completed by EDI.

14. INSPECTION; ACCEPTANCE. Purchaser shall promptly examine the Goods for any damage or shortage or failure of the Goods to comply with the Company's standard sales specifications or the specifications contained in or referenced in the Contract. Claims will not be allowed unless written notice specifying the nature and extent of the defect, damage or shortage is received in the Company's office within fourteen (14) days from unloading - unless the defect, damage or shortage is of such a nature that it would not be reasonably discovered until the material is assembled and/or erected as a finished product, then the fourteen 14) days will begin from the date of commencement of assembly and/or erection. All claims for damage in shipment, or shortage of Goods received, shall be deemed waived unless made in writing and received by Company. Returned goods shall not be accepted by Company unless Purchaser obtains prior written approval and transportation instructions from Purchaser. All Goods returned to Company must be in full containers or cases, unopened and in the same conditions as when delivered.

15. INSURANCE. The Purchaser agrees to provide and maintain for the benefit of the Company adequate insurance for the equipment herein specified from the time of its shipment from EDI until paid for in full and the Purchaser agrees to assume all loss over and above that compensated for by such insurance. The Purchaser shall procure and pay for all public liability insurance during the installation of any EDI provided equipment.

16. ATTORNEY FEES. For any suits brought or retainage paid to attorneys to collect any part of the purchase price or to enforce any provision herein, the Purchaser will pay EDI attorney fees and related expenses including an administrative fee equal to the attorney fees.

17. BANKRUPTCY, RECEIVERSHIP OR INSOLVENCY PROCEEDINGS. Should bankruptcy, receivership or insolvency proceedings be instituted by or against the Purchaser or should the Purchaser make an assignment in favor of creditors, the unpaid balance of the purchase price shall immediately become due and payable at the option of the Company. Notwithstanding other arrangements to the contrary, the Company shall be free to enter premises where equipment for which the Company has not been fully paid may be located and remove said equipment as its property without prejudice to any further claims on amounts of damage which the Company may suffer from any cause.

18. PROMISSORY NOTE. Acceptance of a promissory note or other evidence of debt for any part of price shall not be construed as payment.

PATENT INFRINGEMENT. Any Interference with Purchaser's use of equipment supplied by the Company on the grounds that such use constitutes an infringement of any patent shall impose no liability on the Company.

SPARE OR POTENTIAL WARRANTY PARTS. If spare parts or potential warranty parts are required immediately, EDI may ship those parts subject to the following limitations: a) Purchaser agrees to pay for additional components or spare components including special freight charges. Reimbursement will be issued as a credit to the Purchasers account in the event potential warranty parts are verified as actual warranty defects and b) Contract price adjustments or price adjustments on additional or spare components are subject to EDI approval and original contact terms.

21. INDEMNIFICATION. Purchaser will indemnify and hold harmless Company from and against any and all losses, liabilities, damages and expenses including but not limited to Attorney's Fees and other costs of defense) that Company may incur as a result of any claim, other than a claim for the remedies provided for in the EDI standard warranty, by Purchaser or Purchaser's customers or by any third party arising out of or relating to the goods or services sold hereunder, including but not limited to any such claim based upon the negligence of company in designing, manufacturing, performing and/or selling such goods or services, unless such losses, liabilities, damages or expenses are ultimately determined to be attributable solely to the willful misconduct of seller.

AVALON, CA 11 of 12
A ReXOm BRAND CD11207.02

22. WAIVER. No failure to exercise or any delay or omission in exercising any right, power or remedy by Company operates as or constitutes a waiver. A single or partial exercise by Company of any right, power or remedy does not preclude any other or further exercise by it of that or any other right, power or remedy. A waiver is not valid or binding on Company unless made in writing.

23. SEVERANCE. If any provision of these Terms and Conditions or its application to any person or circumstances is or becomes invalid, illegal, or unenforceable, the provision shall so far as possible be read down to such extent as may be necessary to ensure that it is not Invalid, illegal or unenforceable. If any provision or part of it cannot be so read down, the provision or part of It shall be deemed void and severable and the remaining provisions of these Terms and Conditions shall not in any way be affected or impaired.

24. MECHANICAL WARRANTY and/or SERVICES WARRANTY. See attached.

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Avalon City CouncilJanuary 17, 2023

Avalon City Council
January 17, 2023