AVALON CITY COUNCIL MEETING
TUESDAY, JULY 1, 2025 - 5:00 PM
410 AVALON CANYON ROAD
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
For the public's convenience, but not participation, the meeting can be viewed:
On local cable: Catalina Broadband Solutions channel 3
Streaming on YouTube: https://www.youtube.com/CityofAvalonCA
CALL TO ORDER / PLEDGE OF ALLEGIANCE / INVOCATION / ROLL CALL
ANNOUNCEMENTS / WRITTEN COMMUNICATIONS
DEPARTMENT HEAD REPORTS
CITY MANAGER REPORT / CITY ATTORNEY REPORT
COUNCILMEMBER REPORTS/REQUESTS / 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.
CONSENT CALENDAR
City Council Minutes
Although the live recording is the official record of public meetings, minutes are prepared for the City Council's approval.
Recommended Action
Approve minutes from June 17, 2025 regular City Council Meeting.
Warrants
Expenditures Submitted for Approval:
• US Bank General Account Warrants totaling $ 1,337,145.43. • One payroll totaling $ 278,633.07.
• Three electronic fund transfers totaling $ 150,862.73.
Recommended Action
Approve total expenditures for June 9, 2025 through June 20, 2025 totaling $1,766,641.23.
CITY COUNCIL AGENDA
JULY 1, 2025
PAGE 2
Request for Proposal - Cost of Service Study for Sewer, Saltwater, and Solid Waste Enterprise Funds
The City adopted its current Comprehensive Sewer, Saltwater, and Solid Waste Rate Study in June 2021, which covers five fiscal years through the current Fiscal Year ending June 30, 2026. Since the adoption of the study, costs to provide these services have continued to increase, with contract escalators tied to the Consumer Price Index, increases in other operating costs, as well as significant capital outlays.
Recommended Action
Authorize staff to issue a Request for Proposal (RFP) to conduct Sewer, Saltwater, and Solid Waste rate studies to establish cost-based and proportional utility rates, for a five year period, to provide adequate and sustainable funding for each utility's operational and capital needs.
4. Law Enforcement Services Agreement with Los Angeles County Annually the City adopts a resolution approving the annual fee for Los Angeles County to provide law enforcement services.
Recommended Action
Adopt a resolution notifying the Los Angeles County Board of Supervisors of the City's desire to receive specified law enforcement services from the Los Angeles County Sheriff's (LASD) office, authorizing the expenditure of COPS Grant Funds and authorize the City Manager to execute the Service Level Authorization Form (SH-AD 575) for FY 25-26.
5. Wrigley Road Traffic Safety Improvements
Wrigley Road, the steep "high road" linking Clemente Avenue to Pebbly Beach Road, is comprised of four curves in the City's jurisdiction - Catalina Pet Cemetery, 333 Wrigley Road, Buena Vista Point. These four roadway curves do not include any striping or supplementary warning signage to notify drivers of the curving inclined condition.
Recommended Action
Approve the revised plan as presented for modifications and striping along Wrigley Road including four curves between the Pet Cemetery and Buena Vista Point.
GENERAL BUSINESS
6. Contract Assignment for Semi-Exclusive Shore Boat Franchise, Shore Boat Services Provider Agreement and End Float Lease Agreement Amendment On June 17, 2025, the City Manager received a request from Scott Gorelczenko to assign the remaining term of the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement to Eric Mahan. Gorelczenko will maintain the lease for the End Float with Catalina Jet Ski Corporation.
Recommended Action
1. Approve the request to assign the remaining term of the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement with Avalon Shoreboat Service
CITY COUNCIL AGENDA
JULY 1, 2025
PAGE 3
Corporation to Eric Mahan. 2. Authorize Catalina Jet Ski Corporation to sublease the End Float to Avalon Shoreboat Service Corporation. 3. Authorize the City Manager to execute an amendment to the End Float Lease agreement with Catalina Jet Ski Corporation modifying the intended use as well as mandating space be provided to the holder of the City of Avalon Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement.
ADJOURN
NOTICE OF POSTING
1, Devin Elise Hart, declare that the City Council Agenda for Tuesday, July 1, 2025 was posted on Thursday, June 26, 2025 on the City's website, www.cityofavalon. gov/agendacenter, and at City Hall, 410 Avalon Canyon Road.
Clive Hout
Devin Elise Hart, Senior Management Analyst
CITY OF AVALON CITY COUNCIL
MEETING DATE: July 1, 2025 AGENDA ITEM: 1
ORIGINATING DEP: City Clerk CITY MANAGER: Daul
PREPARED BY: Gabrielle Morones, City Clerk
SUBJECT: City Council Minutes
Counci Metings ACTIONS): Approve minutes from the June 17, 2025 regular City 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:
• June 17, 2025 regular City Council Meeting Minutes
AVALON CITY COUNCIL MEETING
TUESDAY, JUNE 17, 2025
MINUTES
CALL TO ORDER-5:00 p.m.
ROLL CALL-Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce, and Yesenia De La Rosa. Also present: City Manager David Maistros, City Attorney Scott Campbell and City Clerk Gabrielle Morones. Absent- Councilmember Mary Schickling.
WRITTEN COMMUNICATIONS-None.
CONSENT CALENDAR-There were 6 Items on the Consent Calendar. Motion to approve Items #1-#6 made by Michael Ponce, seconded by Lisa Lavelle. (4 Ayes-Marshall, De La Rosa, Ponce and Lavelle; 1 Absent-Councilmember Schickling).
City Council Minutes
Approved minutes from June 3, 2025 regular City Council Meeting.
2. Warrants
Approved US Bank General Account Warrants totaling $ 483,050.97, one payroll totaling $256,719.95, three electronic fund transfers totaling $ 52,027.32 for a total expenditure of $791,798.24 for May 26, 2025 through June 6, 2025.
Gann Appropriations Limit for Fiscal Year 2025-2026
Adopted Resolution No. 25-15 of the City of Avalon Establishing an Appropriations Limit for Fiscal Year 2025/2026 Pursuant to Article XIII B of the California Constitution.
Declare Surplus Equipment
Adopted Resolution No. 25-16 of the City Council of the City of Avalon Declaring Specified Equipment to be Surplus and Authorizing the Sale or Disposal Thereof.
Resolution Approving Application for TDA Article 8 Funds Adopted Resolution No. 25-17 of the City Council of the City of Avalon, California, Approving the Application for Transit Funds Authorized Under Article 8 of the Transportation Development Act.
6. Authorization to Negotiate and Execute a Small Government Cloud-Based Enterprise Agreement with ESRI
Authorized the City Manager to negotiate and execute a three-year Small Government Cloud-Based Enterprise Agreement contract for ArcGIS with Environmental Systems Research Institute, Inc. (ESRI), not-to-exceed $61,800.
CITY COUNCIL MINUTES
JUNE 17, 2025
PAGE 2
PUBLIC HEARING
Public Hearing and Submittal of Property Related Fees to Los Angeles County for FY25- 26 Property Tax Roll - Sewer, Saltwater, and Solid Waste Fees
1. Mayor Marshall opened the public hearing on whether to collect the annual trash collection service fees, grease collection service fees, sewer user fees, and saltwater charges, on the property tax roll by the County of Los Angeles.
2. No comments were heard and it was determined that there was not a majority of property owners who submitted formal written protest to the proposed Sewer, Saltwater, Solid Waste, and Grease rate increases. Mayor Marshall closed the public hearing.
Adopted four resolutions adopting reports of the annual sewer user fees (Resolution No. 25-18), saltwater charges (Resolution No. 25-19), solid waste service fees (Resolution No. 25-20), and grease collection service fees (Resolution No. 25-21).
3. City Council directed the City Clerk to request Los Angeles County to place the fees on the FY 2025-26 Property Tax Roll.
Motion to approve made by Lisa Lavelle, seconded by Michael Ponce. (4 Ayes-Marshall, De La Rosa, Ponce and Lavelle; 1 Absent-Councilmember Schickling)
GENERAL BUSINESS
Burma Trail Retaining Wall Contract Amendment
1. Ratified prior action and made the affirmative finding to dispense with competitive bidding due to economic efficiency as outlined in Avalon Municipal Code Section 3-4.111 (c). 2. Authorized the City Manager to execute an amendment to the Short Form Construction Contract Agreement with Arizona Drilling and Blasting, a division of Fischer Sand & Gravel Co. for a new total contract sum of $63,550.16.
Motion to approve made by Michael Ponce, seconded by Yesenia De La Rosa. (4 Ayes-Marshall, De La Rosa, Ponce and Lavelle; 1 Absent-Councilmember Schickling)
9. Authorize the Purchase of a Replacement Pump for the Catherine Saltwater Booster
1. Authorized the City Manager, or their designee, to purchase a Weinman pump from California Electric Motor Source (CEMS) to be used for the Catherine Saltwater Booster Station. 2. Allocated funds from Saltwater Fund 11325-6552 for the procurement in the amount of not-to-exceed $34,000.
Motion to approve made by Lisa Lavelle, seconded by Yesenia De La Rosa. (4 Ayes-Marshall, De La Rosa, Ponce and Lavelle; 1 Absent-Councilmember Schickling)
CITY COUNCIL MINUTES
JUNE 17, 2025
PAGE 3
Proposed Fiscal Year 2025-26 Budget
City Council continued discussing the proposed Fiscal Year 2025-26 Budget Consensus was met, City Council adopted Resolution No. 25-22 of the City Council of the City of Avalon Adopting the Budget for Fiscal Year 2025-26.
Motion to approve made by Michael Ponce, seconded by Anni Marshall. (4 Ayes-Marshall, De La Rosa, Ponce and Lavelle; 1 Absent-Councilmember Schickling) CLOSED SESSION 6:14 p.m.-6:49 p.m.
Following the appropriate announcement of the Closed Session item the City Council went into Closed Session to discuss the following:
1. CONFERENCE WITH LABOR NEGOTIATORS (54957.6)
Agency Designated Representative: David Maistros, City Manager Employee Organizations:
1. International Association of Fire Fighters LOCAL 2295
2. SEIU 721 Avalon Harbor Unit
3. SEIU 721 Avalon Municipal
4. Unrepresented/Confidential Employees
5. Management
Following Closed Session Mayor Marshall announced that there was no reportable action.
Mayor Marshall adjourned the meeting at 6:49 p.m.
I, Gabrielle Morones, City Clerk, do hereby certify that the DVD videotape of the regular City Council Meeting on June 17, 2025, is the official record of the Council Meeting and is on file and maintained in City Hall
Gabrielle Morones, City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: July 1, 2025 AGENDA ITEM: 2
ORIGINATING DEP: Finance CITY MANAGER: Dwel
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve total expenditures for June 9, 2025 through June 20, 2025 totaling $1,766,641.23.
REPORT SUMMARY: These disbursements through June 20th are comprised of warrants from the US Bank General Account totaling $1,337,145.43, one payroll totaling $278,633.07, and other electronic fund transfers totaling $150,862.73.
ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 40183-40189 464,070.32 06/11/25 GF US BANK WARRANTS CK# 873,075.11 06/20/25
278,633.07 06/13/25
EFT - CALPERS MEDICAL 99,187.32 06/09/25
EFT - CALPERS RETIREMENT 46,045.97 06/09/25
EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 5,629.44 06/20/25 TOTAL DISBURSEMENTS $1,766,641.23
GOAL ALIGNMENT: Ongoing meeting of City obligations.
FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY24-25 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 Lists, US Bank Credit Card Detail
CITY OF AVALON
JUNE 9, 2025 - JUNE 20, 2025 DISBURSEMENTS
July 1, 2025
ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 40183-40189 464,070.32 06/11/25 GF US BANK WARRANTS CK# 873,075.11 06/20/25
PAYROLL 278,633.07 06/13/25
EFT - CALPERS MEDICAL 99,187.32 06/09/25
EFT - CALPERS RETIREMENT 46,045.97 06/09/25
LEFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 5,629.44 06/20/25 TOTAL DISBURSEMENTS S 1,766,641.23
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
1ST DAY OF JULY 2025 I CERTIFY UNDER PENALTY OF PERJURY
THAT THE FOREGOING IS TRUE AND
CORRECT.
AUDIT COMMITTEE -MICHAEL PONCE EXECUTED THIS 1ST DAY OF JULY 2025
AUDIT COMMITTEE - MARY SCHICKLING FINANCE DIRECTOR - MATTHEW BAKER
CITY OF AVALON
WARRANT DISBURSEMENTS
July 1, 2025
CHECK DATE
NUMBER ISSUED
40183 6/11/2025 28,798.00 ALLIANT INSURANCE SERVICES INSURANCE POLICY FY 2026 40184 6/11/2025 26,701.00 ALLIANT INSURANCE SERVICES INSURANCE POLICY FY 2026 40185 6/11/2025 24,191.00 ALLIANT INSURANCE SERVICES INSURANCE POLICY FY 2026 40186 6/11/2025 30,786.00 ALLIANT INSURANCE SERVICES INSURANCE POLICY FY 2026 40187 6/11/2025 0,754.07 CO. OF LOS ANGELES SHERIFF'S DE WATERFRONT PATROL: 03/2025 & 04/2025 40188 6/11/2025 49,645.25 COUNTY OF LOS ANGELES FIRE DEI QUARTLEY PAYMENTS: PARAMEDICS 40189 6/11/2025 93,195.00 SLATER WATERPROOFING, INC. SERVICE: CIP 205011 464,070.32
CITY OF AVALON
WARRANT DISBURSEMENTS
July 1, 2025
CHECK DATE
NUMBER ISSUED AMOUNT NAME DESCRIPTION
40190 6/20/2025 $ 17,572.50 4LEAF, INC. SERVICE: PLANNING 40191 6/20/2025 $ 2,084.01 AAA OIL, INC FUEL: ALL DEPTS 40192 6/20/2025 2,106.10 ACTION SALES & METAL CO. SUPPLIES:HARBOR MAINTENANCE 40193 6/20/2025 271.70 AIR SOURCE INDUSTRIES SUPPLIES: FIRE 40194 6/20/2025 6.05 ALBERTSON COMPANIES SUPPLIES: RECREATION 40195 6/20/2025 $ 1,399.38 ALEGRIA, VALENTE RETIREE INS: 01-06/2025 40196 6/20/2025 AMAZON CAPITAL SERVICES, INC. VOID: MULTI STUB CHECK 40197 6/20/2025 8,256.32 AMAZON CAPITAL SERVICES, INC SUPPLIES: ALL DEPTS 40198 6/20/2025 200.00 AMERGENT TECHS, INC SERVICE: HARBOR 40199 6/20/2025 200.00 ARELLANO. MARTHA REFUND: TREMONT 40200 6/20/2025 1,230.09 AT & T COMMUNICATIONS: ALL
40201 6/20/2025 $ 181,499.86 CR&R INCORPORATED CONTRACT SVCS:05/25 40201 6/20/2025 5,934.46 CR&R INCORPORATED SWEEPER: 05/25 40202 6/20/2025 $ 4,041.41 AVALON FREIGHT SERVICES, LLC FREIGHT: ALL DEPTS 40203 6/20/2025 $ 2,576.89 AVALON MOORING & DIVING SERVICE: HARBOR 40204 6/20/2025 24,083.33 AVALON SHOREBOAT SERVICE CORP. CONTRACT SVCS:07/20 40205 6/20/2025 12,408.92 BEST, BEST & KRIEGER, LLP LEGAL FEES: 02/2025 40205 6/20/2025 $ 26,586.99 BEST, BEST & KRIEGER, LLP LEGAL FEES: 04/2025 40206 6/20/2025 $ 157.39 BOUND TREE MEDICAL SUPPLIES: FIRE 40207 6/20/2025 500.00 BRAVO, TANIA REFUND: JMF DEPOSIT 40208 6/20/2025 4,428.30 BRAY, BRIAN RETIREE INS:01-06/2025 40209 6/20/2025 613.15 CARSTARPHEN, ORNE RETIREE INS: 06/2025 40210 6/20/2025 1,341.51 CART MART, INC. SUPPLIES:VEHICLE MAINTENANCE 40211 6/20/2025 6,712.08 CATALINA BEVERAGE CO SUPPLIES: ALL DEPTS 40212 6/20/2025 49.95 CATALINA BROADBAND SOLUTIONS SERVICE:PUBLIC WORKS 40213 6/20/2025 137,500.00 CATALINA CHAMBER OF COMMERCE TOT: 07/2025 40214 6/20/2025 368.00 CATALINA EXPRESS TRAVEL:PUBLIC WORKS 40215 6/20/2025 1,218.00 CATALINA ISLANDER ADVERTISING: ALL DEPTS 40216 6/20/2025 8,168.69 CIRA WORKERS COMP 01-03/2025
40216 6/20/2025 764.50 CIRA WORKERS COMP 07-09/2025
40217 6/20/2025 5,188.92 CLINE, KEN RETIREE INS: 01-06/2025 40218 6/20/2025 99.46 COLONIAL LIFE EE DED: PPE 06/10/2025 40219 6/20/2025 400.00 COUNTY OF LOS ANGELES C/O LA RICS SERVICE: FIRE 05/2025 40220 6/20/2025 838.50 DAPEER, ROSENBLIT & LITVAK, LLP SERVICE: VEHICLES 40221 6/20/2025 2,094.00 DAWES, BRIAN RETIREE INS: 01-06/2025 40222 6/20/2025 7,106.11 DELTA DENTAL DENTAL: 06/2025
40223 6/20/2025 32.00 DEPARTMENT OF JUSTICE SERVICE: ADMIN 40224 6/20/2025 1,126.00 DEWEY PEST CONTROL SERVICE: ALL DEPTS 40225 6/20/2025 1,524.01 DION & SONS MARINE FUELS INC FUEL: HARBOR 40226 6/20/2025 17.00 EDISON UTILITIES: ALL DEPT
40227 6/20/2025 FIDELITY SECURITY LIFE INSURANCE VOID: MULTI STUB CHECK 40228 6/20/2025 1,123.30 FIDELITY SECURITY LIFE INSURANCE VISION 04/2025 40228 6/20/2025 1,123.30 FIDELITY SECURITY LIFE INSURANCE VISION: 06/2025 40229 6/20/2025 4,872.00 FLICKINGER, WILLIAM RETIREE INS: 01-06/2025 40230 6/20/2025 $ 828.00 GEO-LOGIC ASSOCIATES, LLC. PBL EXPANSION CIP 40231 6/20/2025 384.36 GONZALES, ALIANA REIMB O/P COSTS 40232 6/20/2025 979.36 GRAINGER SUPPLIES:PUBLIC WORKS
40233 6/20/2025 567.18 HAYNOSCH, DEMPSEY REIMB O/P COSTS 40234 6/20/2025 2,560.20 HERNANDEZ, OLGA RETIREE INS: 01-06/2025 40235 6/20/2025 2,088.18 HERNANDEZ, RICHARD RETIREE INS: 01-06/2025 40236 6/20/2025 4,626.30 HOEFS, STEVEN RETIREE INS:01-06/2025 40237 6/20/2025 2,560.20 HOHOWSKI, JANET MAY RETIREE INS:01-06/2025 40238 6/20/2025 32,998.88 HUNTINGTON BEACH MOTOR SPORTS, INC VEHICLE:FIRECIP2345 40239 6/20/2025 640.00 LUPO, KARLA SERVICE: RECREATION
40240 6/20/2025 746.87 JORDAHL CONSTRUCTION SERVICE:PUBLIC WORK 40241 6/20/2025 2,759.64 KRUG, MICHAEL RETIREE INS:01-06/2025 40242 6/20/2025 325.52 LAVELLE, LISA REIMB O/P COSTS
40243 6/20/2025 192.95 LAWSON PRODUCTS SUPPLIES: HARBOR 40244 6/20/2025 892.50 LEAGUE OF CALIFORNIA CITIES DUES FY26 40245 6/20/2025 344.69 LOCAL 2295 AVALON FIREFIGHTERS UNIO UNION DUES:PPE12102 40246 6/20/2025 4,260.90 LOPEZ, LEONARD RETIREE INS:01-06/2025 40247 6/20/2025 2,560.20 LOPEZ, PASTOR RETIREE INS:01-06/2025 40248 6/20/2025 524.00 LOS ANGELES COUNTY FIRE DEPARTMENT PERMIT FEE:AR001012 40249 6/20/2025 2,759.64 MCBRIDE, MATTHEW RETIREE INS:01-06/2025 40250| 6/20/2025 $ 710.15 MCDONALD, AUDRA RETIREE INS: 07/2025 40251 6/20/2025 102.29 MCMASTER-CARR SUPPLIES:PUBLIC WORKS 40252 6/20/2025 $ 5,023.00 MONTROSE ENVIRONMENTAL SOLUTIONS SERVICE: CIP 180003
CITY OF AVALON
WARRANT DISBURSEMENTS
July 1, 2025
CHECK DATE
NUMBER ISSUED AMOUNT NAME DESCRIPTION
40253 6/20/2025 $ 103.24 NAPA AUTO PARTS SUPPLIES: GARAGE 40254 6/20/2025 $ 595.00 OLYNS INC. SERVICE: ADMIN
40255 6/20/2025 $ 200.00 PEDROZA, VERONICA REFUND: TREMONT DEPOSIT 40256 6/20/2025 $ 126,484.13 PERC WATER CONTRACT SVCS:05/2025 40256 6/20/2025 $ 66,236.50 PERC WATER MONTHLY MAINT: 05/2025 40257 6/20/2025 $ 110.00 SANCHEZ, TIMOTHY EMPLOYEE SCREENING 40258 6/20/2025 $ 766.56 POINDEXTER, JAMES RETIREE INS:05-06/2 40259 6/20/2025 $ 3,550.05 POLYDYNE, INC. SUPPLIES: WWTP 40260 6/20/2025 433.91 QUILL CORP SUPPLIES: ALL DEPTS
40261 6/20/2025 2,299.68 RADDE, DENISE RETIREE INS: 01-06/2025 40262 6/20/2025 1,767.56 RICOH USA, INC COPIER LEASE: PLANNING 40263 6/20/2025 1,399.38 ROMO, JOHN RETIREE INS: 01-06/2025 40264 6/20/2025 $ 381.25 RSG, INC SERVICE: S/A
40265 6/20/2025 $ 9,357.91 SIRIA'S CLEANING SERVICE 2ND HALF 06/2025 40266 6/20/2025 13,188.82 SOUTH COAST BOBCAT INC SERVICE: GARAGE 40267 6/20/2025 $ 1,205.89 STANDARD INSURANCE COMPANY LIFE INS: 06/2025 40268 6/20/2025 12,950.00 STAY GREEN, INC. SERVICE:PUBLIC WORK 40269 6/20/2025 $ 776.00 VERONICA BRAVO MOW: 02-04/25 BALANCE 40270 6/20/2025 $ 5,826.34 THE HILLER COMPANIES, LLC SERVICE: ALL DEPTS 40271 6/20/2025 $ 28.50 UNDERGROUND SERVICE ALERT/SC SERVICE:PUBLIC WORK 40272 6/20/2025 $ 18,440.21 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL 40273 6/20/2025 $ 18,750.00 VEGA, EDMUNDO CONTRACT SVCS: 06/2025 40274 6/20/2025 $ 1,618.29 VERIZON WIRELESS COMMUNICATIONS: ALL 40275 6/20/2025 $ 13,697.26 WESTRIDGE ENVIRONMENTAL GROUP SUPPLIES: WWTP 40276 6/20/2025 $ AVALON MOORING & DIVING VOID: KEY ERROR 40277 6/20/2025 $ DION & SONS MARINE FUELS INC VOID: KEY ERROR 40278 6/20/2025: 25,210.05 BEST, BEST & KRIEGER, LLP LEGAL FEES: 05/2025 40279 6/20/2025 : 439.39 PETTY CASH PETTY CASH: FINANCE 873,075.11
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID JUNE 20, 2025
July 1, 2025
LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT M. BAKER 6/4/2025 S 304.47 ZOOM.COM OPERATION COSTS: IT FINANCE M. DAILY 5/16/2025 $ 95.00 CATALINAINFO OPERATION COSTS: IT ADMINISTRATION M. DAILY 5/26/2025 $ 44.09 CHETS HARDWARE OPERATION COSTS: I7 ADMINISTRATION M. DAILY 5/29/2025 $ 120.00 DUO.COM OPERATION COSTS: IT ADMINISTRATION M. DAILY 6/2/2025 $ 1,830.27 DMI DELL HIGHER EDUC OPERATION COSTS: IT ADMINISTRATION M. DAILY 6/2/2025 $ 13.98 GETJOAN.COM OPERATION COSTS: IT ADMINISTRATION M. DAILY 6/3/2025 $ 201.00 DOMOTZ INC OPERATION COSTS: IT ADMINISTRATION M. DAILY 6/13/2025 $ 1,134.90 UI.COM OPERATION COSTS: IT ADMINISTRATION M. DAILY 6/16/2025 $ 25.00 CLOUDFLARE OPERATION COSTS: IT ADMINISTRATION D.E. HART 6/3/2025 $ 82.96 CYBERLINK NETWORK OPERATION COSTS: IT ADMINISTRATION D.E. HART 6/3/2025 S 14.95 DOODLE.COM OPERATION COSTS: IT ADMINISTRATION D.E. HART 6/6/2025 $ 565.00 CANVA OPERATION COSTS: IT ADMINISTRATION D.E. HART 6/11/2025 S 268.00 PAPER RECYCLING AND SHRED OPERATION COSTS: ADMIN ADMINISTRATION D.E. HART 6/16/2025 $ 15.00 QUICKESIGN OPERATION COSTS: IT ADMINISTRATION FRANCIS 5/16/2025 S 82.95 ADOBE OPERATION COSTS: IT ADMINISTRATION FRANCIS 5/20/2025 S 10.00 RENAISSANCE HOTELS TRAINING: CONFERENCE ADMINISTRATION FRANCIS 5/21/2025 $ 881.45 VONS OPERATING COSTS: CODE ENFORCEMENT ADMINISTRATION FRANCIS 5/21/2025 $ 915.48 RENAISSANCE HOTELS TRAINING: CONFERENCE ADMINISTRATION FRANCIS 5/21/2025 S 564.22 RENAISSANCE HOTELS TRAINING: CONFERENCE ADMINISTRATION FRANCIS 5/28/2025 $ 155.95 CATALINA CANYON INN LODGING: PROFESSIONAL SERVICES IT ADMINISTRATION FRANCIS 6/5/2025 $ 675.00 LEAGUE OF CA CITIES TRAINING & TRAVEL ADMINISTRATION FRANCIS 6/5/2025 S 675.00 LEAGUE OF CA CITIES TRAINING & TRAVEL ADMINISTRATION FRANCIS 6/5/2025 $ 675.00 LEAGUE OF CA CITIES TRAINING & TRAVEL FRANCIS 6/9/2025 $ 322.75 SMARTSIGN LOVER.COM SUPPLIES: TRAFFIC SAFETY ADMINISTRATION FRANCIS 6/9/2025 $ 45.93 UPS POSTAGE ADMINISTRATION
FRANCIS 6/10/2025 $ 75.00 LEAGUE OF CA CITIES TRAINING: CONFERENCE ADMINISTRATION A. GONZALEZ 6/2/2025 S 15.00 CATALINA EXPRES TRAINING & TRAVEL ADMINISTRATIOR A. GONZALEZ 6/2/2025 $ 19.82 TARGET TRAINING & TRAVEL ADMINISTRATION A. GONZALEZ 6/3/2025 $ 40.24 TRADER JOES TRAINING & TRAVEL ADMINISTRATION A. GONZALEZ 6/4/2025 $ 5.99 TOWN & COUNTR TRAINING & TRAVEL ADMINISTRATION A. GONZALEZ 6/6/2025 $ 7.00 CATALINA EXPRES TRAINING & TRAVEL ADMINISTRATION A. GONZALEZ 6/9/2025 $ 973.58 TOWN & COUNTRY TRAINING & TRAVEL MINISTRATI MAISTROS 6/6/2025 $ 1,020.38 HYATT CENTRIC PIKE LONG BEACH TRAVEL - CITY MANAGER MINISTRATI MIALEGRIA 5/19/2025 $ 250.00 STARLINK INTERNET SERVICE: MEMBERSHIP AND DUES FIRE 5/19/2025 $ 10.00 CATALINA ISLAND CHAMBER SERVICE: MEMBERSHIP AND DUES FIRE 6/2/2025 $ 5,400.00 TEEX PRE-PAID EXPENSE: TRAINING FIRE MALEGRIA 6/9/2025 S 189.86 VONS SUPPLIES: FIRE FIRE
S. CAMPBELL 6/12/2025 S 14.99 CANVA OPERATION COSTS: IT ADMINISTRATION $ 18,440.21 CHECK NUMBER 40272
CITY OF AVALON CITY COUNCIL
MEETING DATE: July 1, 2025 AGENDA ITEM: 3
ORIGINATING DEP: Finance CITY MANAGER:
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Request for Proposal - Cost of Service Study for Sewer, Saltwater, and Solid Waste Enterprise Funds
proportional utility rates, for a five year period, to provide adequate and sustainable funding for each utility's operational and capital needs.
REPORT SUMMARY: The City provides Sewer, Saltwater, and Solid Waste services to approximately 1,400 residential and commercial parcels within the city limits. These utilities operate as Enterprise Funds, where rates and fees within each fund are set to cover the costs of providing the respective services to customers.
The City adopted its current Comprehensive Sewer, Saltwater, and Solid Waste Rate Study in June 2021, which covers five fiscal years through the current Fiscal Year ending June 30, 2026. The previously adopted study increased sewer rates by 25.7%, saltwater rates by
13.2%, and solid waste rates by 65.9% over five fiscal years. Since the adoption of the study, costs to provide these services have continued to increase, with contract escalators tied to the Consumer Price Index (CPI), increases in other operating costs, as well as significant capital outlays not included in the prior study.
The rate study should address the adequacy and equity of a utility's rates through an analysis of revenue requirements, cost of service, and rate design. As part of the study, revenues will be compared to expenses for each utility to determine the overall revenue adjustment required.
Customer classes will then be assessed to ensure required revenues are equitably allocated and proportionally distributed for the amount of services received. Lastly, the rate structure will be assessed to ensure the collection of revenues at the targeted levels.
The City currently anticipates issuing the RFP by Thursday, July 3, 2025 with proposals due by Wednesday, August 20, 2025 at 4:00 PM. City Staff will evaluate the proposals beginning Monday, August 25, 2025 and present its recommendation to Council at the September 2, 2025 City Council Meeting.
GOAL ALIGNMENT: Fiscal responsibility
FISCAL IMPACTS: Cost of study included in FY25-26 Budget CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Sewer, Saltwater, and Solid Waste revenues will not cover the costs for these services requiring draws on fund balance and/or transfers from the General Fund to support these operations.
FOLLOW UP ACTION: Proceed with the Notice of Request for Proposals; develop a review panel and bring the results of the solicitation to the September 2, 2025, City Council meeting for consideration.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS: RFP for Cost of Service Study
CITY OF AVALON
REQUEST FOR PROPOSALS
AND
CONTRACT DOCUMENTS
FOR
SEWER, SALTWATER, AND SOLID WASTE COST OF SERVICE STUDY 410 Avalon Canyon Road
P.O. Box 707
Avalon, California 90704
(310) 510-0220
www.cityofavalon.gov
Key Information
Submit Written Questions By: Friday, August 1, 2025 at 4:00 PM Proposals Due: Wednesday, August 20, 2025 at 4:00 PM
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CITY OF AVALON
NOTICE INVITING PROPOSALS
SEWER, SALTWATER, AND SOLID WASTE COST OF SERVICE STUDY PUBLIC NOTICE IS HEREBY GIVEN that proposals will be received by the City of Avalon ("City") in the office of the City Clerk, 410 Avalon Canyon Road, P.O. Box 707, Avalon, CA 90704 until 4:00 PM, Wednesday, August 20, 2025. Proposals received after this date will be returned to the proposers unopened. Faxed or electronically submitted proposals will not be accepted The City is requesting proposals to develop cost-based and equitable sewer, saltwater, and solid waste rates, including grease collection, supported by a cost of service study. The ultimate goal of the study is to provide adequate and sustainable funding for each utility's operation and maintenance ("O&M") and capital needs, with rates that are stable, equitable, cost-based, and defendable. Respondents to this RFP should have extensive experience conducting cost of service studies for municipal enterprise funds.
The award of this contract is subject to available budget adequate to carry out the provisions of the proposed agreement including the identified scope of services. The City reserves the right to reject any or all proposals determined not to be in the best interest of the City.
Interested proposers may download copies of the Contract Documents by visiting the City's web site www.citvofavalon.gov/rfp. Firms that anticipate submitting a proposal are requested to send an email to the City contract acknowledging receipt of the Contract Documents so that the City can add the firm to its notification list. Please include the contact person, the name of the firm, address, phone number, and e-mail address. Addenda will be published on the City's website.
For more information, please contact:
Matthew Baker
Finance Director
PO Box 707
Avalon, CA 90704
(310) 510-0220 extension 170
[email protected]
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CITY OF AVALON
REQUEST FOR PROPOSALS
SEWER, SALTWATER, AND SOLID WASTE COST OF SERVICE STUDY I. BACKGROUND AND INTRODUCTION
The City of Avalon ("City") is requesting proposals from qualified firms' ("Proposers") for Consulting Services ("Services"), which shall be provided under the general direction of the City Manager or his or her designee.
City of Avalon ("City") is requesting proposals for consulting services to develop cost-based and equitable sewer, saltwater, and solid waste rates, including grease collection, supported by a cost of service study. The ultimate goal of the study is to provide adequate and sustainable funding for each utility's operation and maintenance ("O&M") and capital needs, with rates that are stable, equitable, cost-based, and defendable.
The City of Avalon is located on Santa Catalina Island in the Channel Islands, approximately twenty-two miles off the coast of Southern California. The City is situated on the leeward side of the island around Avalon Bay and its jurisdictional boundaries occupy just under three square miles. The City serves a population of approximately 3,300 residents and welcomes over one million visitors each year through its picturesque harbor.
The City is a general-law City that operates under a Council-Manager form of government, with a five-member City Council comprised of four Council Members elected at large with overlapping four year terms and a Mayor elected at large for a term of two years. The City Council appoints the City Manager and City Attorney. The City is divided into departments that provide a full range of municipal services, including fire, public works, planning, recreation and law enforcement contracted through the Los Angeles County Sheriff's Department. In addition to these governmental services, the City operates several enterprise funds providing harbor, sewer, saltwater, solid waste, and transit services. Additional information regarding the City, including its current Operating and Capital Budgets, Annual Financial Reports, and the most recent Cost of Service Study for Sewer, Salt Water and Solid Waste can be found in the Finance section on the City website at www.cityofavalon.gov/162/Finance.
II. CITY CONTACT
The principal contact for the City will be Matthew Baker, Director of Finance, (310)-510- 0220 ext. 170, [email protected] or a designated representative, who will coordinate the assistance to be provided by the City to the Proposer.
III. REQUEST FOR PROPOSALS
A. l Scope of Services
The Services sought under this Request for Proposals ("RFP") are set forth in more detail in Exhibit "A," attached hereto and incorporated herein by this reference. Notwithstanding the 'Use of the term "firm" throughout this document shall mean individual proprietorship, partnership, Limited Liability Company. corporation or joint venture.
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inclusion of such Services in Exhibit "A" the final scope of Services negotiated between City and the successful Proposer shall be set forth in the Agreement ("Agreement") executed by and between City and the successful Proposer. A copy of the sample Agreement is attached hereto as Exhibit "B" and incorporated herein by this reference.
Pre-Proposal Meeting
Each Proposer is requested to attend a non-mandatory pre-proposal meeting to be held on Friday, July 11, 2025, from 10 am to 11 am at City Hall, 410 Avalon Canyon Road, Avalon, CA 90704 and online at https://us06web.zoom.us/j/88955603040. Failure to attend this meeting will not preclude a firm from submitting a proposal. Attendance at the pre-proposal meeting will ensure the Proposer understands the full scope of the Services requested.
C. Content and Format of Proposal
Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organized, tabbed, and numbered in the order presented below.
Proposals must include page numbers for all pages in the proposal. The proposal shall be signed by an individual, partner, officer or officers authorized to execute legal documents on behalf of the Proposer
Proposals shall be in the following order and shall include:
1. Executive Summary: (limit: 2 pages) Summarize the content of your proposal in a clear and concise manner.
Table of Contents: (limit: 1 page)
3. Identification of Proposer: (limit: 1 pages)
a. Legal name and address of the company.
b. Legal form of company (partnership, corporation).
C. If company is a wholly owned subsidiary of a "parent company." identify the "parent company."
d. Name, title, address and telephone number of the proposed representative to contact concerning the Proposal Submittal. e. City Business License Number
4. Staffing Resources: (limit: 4 pages)
a. Firm Staffing and Key Personnel
(i) Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as well (BB&K 2022) 3 SEWER, SALTWATER, AND SOLID
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as your firm's capacity to provide additional personnel as needed.
(ii) Identify three (3) persons that will be principally responsible for working with the City. Indicate the role and responsibility of each individual. Interviews are tentatively scheduled for the week of August 25, 2025. If the Proposer is chosen as a finalist, these principal individuals should attend the interview and online presentation.
(iii) Describe proposed team organization, including
identification and responsibilities of key personnel. Please include one-page resumes.
(iv) Provide brief biographies of individuals that will be working directly with the City.
b. Subcontractors
(i) The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor that is
anticipated to perform each function, if known at this time.
Fiscal Stability: (limit: 10 pages- not including supporting documentation) The Proposer should provide evidence of corporate stability including:
(i) A current report from any commercial credit rating service such as Dunn and Bradstreet or Experian; or
(ii) A letter from a financial institution stating a current line of credit; and
(iii)) Latest audited financial statement and/or annual report that has been certified by a CPA. This information will remain confidential and is not subject to public disclosure.
Experience and Technical Competence: (limit: 10 pages)
a. Experience
(i) The Proposer shall provide a description of how the Proposer's experience, technical and professional skills will meet the goals and fulfill the general functions identified in this RFP.
(ii) Describe the past experience of the staff to be assigned to perform the Services in performing similar services.
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(iii) The Proposer shall state the number of years the firm has conducted business. Proposer must have at least four (4) years' experience in providing the required scope of
Services for public clients.
(iv) Provide five (5) references regarding the Proposer's experience and performance performing similar services.
Include the following information: (1) Organization/City, contact name, phone number, e-mail address; and (2)
project size and description, if applicable, and description of services.
(v) Describe the Proposer's local experience and knowledge of City.
b. Project Specific Experience
The Proposer shall provide a description of the three (3) most relevant service contracts held within the last five years, one page per project, to include:
(a) Role of the firm
(b) Dollar value of the services
(c) Dollar value of the fee
(d) Description of services
(e) Staffing
(f) Duration of providing services
(g) Relationship to client
(h)
Contact namu post and ental are, for bane
project.
(ii)) If any of the following has occurred, please describe in detail:
(a) Failure to enter into a contract or professional
services agreement once selected
(b) Withdrawal of a proposal as a result of an error.
(c) Termination or failure to complete a contract.
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(d) Debarment by any municipal, county, state, federal
or local agency.
(e) Involvement in litigation, arbitration or mediation.
Conviction of the firm or its principals for violating a state or federal antitrust law by bid or proposal
rigging, collusion, or restrictive competition between
bidders or proposers, or conviction of violating any
other federal or state law related to bidding or
professional services performance. Knowing
concealment of any deficiency in the performance of
a prior contract.
(f) Falsification of information or submission of
deceptive or fraudulent statements in connection
with a contract.
(g) Willful disregard for applicable rules, laws or
regulations.
Information regarding any of the above may, at the
sole discretion of the City, be deemed to indicate an
unsatisfactory record of performance.
C. Technical Competence
(i) Description of in-house resources (i.e., computer
capabilities, software applications, modem protocol,
modeling programs, etc.)
(ii) Ability to draw upon multi-disciplinary staff to address the Services requested in this RFP.
Proposed Method to Accomplish the Work: (limit: 10 pages) Describe the technical and management approach to providing the Services to the City. Proposer should take into account the scope of the Services, goals of the City, and general functions required. Include a draft schedule of tasks, milestones, and deliverables that will provide for timely provision of the Services. In reviewing the scope of Services and goals described in Exhibit "A," the Proposer may identify additional necessary tasks and is invited to bring these to the City's attention within the discussion of its proposed method to accomplish the work.
Fee Proposal: (limit: 2 pages) Please provide a lump-sum, not-to-exceed fee proposal for the scope of Services. The fee proposal shall include hourly rates for all personnel for "Additional Work" (as such term is defined in the sample Agreement.
Insurance: (limit: 10 page - not including supporting documentation) See the Agreement, attached hereto as Exhibit "B," for a description of the insurance requirements.
Litigation: (limit: 10 pages) Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5) years. (BB&K 2022) SEWER, SALTWATER, AND SOLID
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11. Other Information: (limit: 10 pages) This section shall contain all other pertinent information regarding the following:
a. Demonstration of record of staffing tasks efficiently and completing projects on time and within the allocated budget.
Description of community involvement.
c. Description of any previous involvement with the City. d. A statement that the Proposer has no conflicts of interest in connection with providing the Services.
12. Certification of Proposal: This section shall state:
"The undersigned hereby submits its proposal and, by doing so, agrees to furnish services to the City in accordance with the Request for Proposal (RFP), and to be bound by the terms and conditions of the RFP."
13. Appendices: (limit: 10 pages)
D. No Deviations from the RFP
In submitting a proposal in response to this RFP, Proposer is certifying that it takes no exceptions to this RFP including, but not limited to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted in the proposal and may be reason for rejection of the proposal. As such, Proposer is directed to carefully review the sample Agreement and, in particular, the insurance and indemnification provisions therein.
E. Selection Process
1. The City will evaluate proposals based on the following criteria:
a. The firm has no conflict of interest with regard to any other work performed by the firm for the City.
b. Clarity and conformance of proposal to RFP.
C. Content of the proposal.
d. Proposer's experience and performance.
e. Team members' experience and performance.
f. Fee proposal.
Reference's comments.
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During the evaluation process, the City reserves the right, where it may serve the City's best interest, to request additional information or clarifications from Proposers, or to allow corrections of errors or omissions.
It is the City's intent to select a Proposer to perform the Services based on the above criteria. The City reserves the right to reject all proposals, select by proposal review only or interview as needed. Certain Proposers may be selected to make a brief presentation and oral interview after which a final selection will be made. The successful Proposer will be selected on the basis of information provided in the RFP, in-person presentations, and the results of the City's research and investigation. Upon selection of a Proposer, the City will endeavor to negotiate a mutually agreeable Agreement with the selected Proposer. In the event that the City is unable to reach agreement, the City will proceed, at its sole discretion, to negotiate with the next Proposer selected by the City. The City reserves the right to contract for services in the manner that most benefits the City including awarding more than one contract if desired After negotiating a proposed Agreement that is fair and reasonable, City staff will make the final recommendation to the City Council concerning the proposed Agreement The City Council has the final authority to approve or reject the Agreement F. Protests
Protest Procedures: Submitted proposals will be made available for review in accordance with the California Public Records Act and after a submission of a Public Records Act Request to the City Clerk's Office.
Proposers may file a protest with the City Clerk. In order for a Proposer's protest to be considered valid, the protest must:
a. Be filed in writing not later than 5:00 p.m. (local time) on the fifth business day after the City issues a Notice of Intent to Award for the subject project, based on one of the following criteria:
The Proposer's disagreement with the determination or
recommendation by the City regarding the Proposer's
proposal;
(ii)) Non-compliance with RFP;
(iii) Non-compliance with City policy; or
(iv) Non-compliance with state or federal law.
Clearly identify the specific irregularity or basis for the protest; c. Specify, in detail, the factual and legal grounds for the protest; d. Include all relevant supporting documentation with the protest at time of filing.
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City Review: The City will review and evaluate the basis of the protest provided the protest is filed in strict conformity with the foregoing. The City shall provide the Proposer submitting the protest with a written statement concurring with or denying the protest Action by the City relative to the protest will be final and not subject to appeal or reconsideration.
The procedure and time limits set forth in this Section are mandatory and are the Proposer's sole and exclusive remedy in the event of protest. Failure to comply with these procedures will constitute a waiver of any right to further pursue the protest, including filing a Government Code claim or legal proceedings.
All protests filed with the City Clerk shall be delivered to the following address:
City Clerk
City of Avalon
410 Avalon Canyon Road
P.O. Box 707
Avalon, California 90704
G. Proposal Schedule
The tentative schedule is as follows:
ACTION DATE
Release of Request for Proposal Thursday, July 3, 2025
Recommended Pre-Proposal Meeting Location: Friday, July 11, 2025 Avalon City Hall
410 Avalon Canyon Road
Avalon CA 90704
https://us06web.zoom.us/j/88955603040
Last Day to Submit Questions for Clarification Friday, August 1, 2025 received by the City on or before 4pm
Clarifications Issued by City on or before 4 pm Friday August 8, 2025 Deadline for Receipt of Proposals Wednesday, August 20, 2025 submitted on or before 4 pm
Notification of Finalists) Monday, August 25, 2025
Interview of Finalists) - Tentative Week of August 25, 2025 Notification of Intent to Award Friday, August 29, 2025 Authorization to Negotiate Contract Wednesday, September 3, 2025 (BB&K 2022) 9 SEWER, SALTWATER, AND SOLID
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The above scheduled dates are tentative and City retains the sole discretion to adjust the above schedule. Nothing set forth herein shall be deemed to bind City to award a contract for the Services and City retains the sole discretion to cancel or modify any part of or all of this RFP at any time.
H. Submittal Requirements
General: It is strongly recommended that the Proposer submit proposals in the format identified in this RFP to allow the City to fully evaluate and compare the proposal All requirements and questions in the RFP should be addressed and all requested data shall be supplied. The City reserves the right to request additional information which, in the City's opinion, is necessary to assure that the Proposer's competence, number of qualified employees, business organization and financial resources are adequate to perform according to the Agreement.
Preparation: Proposals should be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP.
Responses should emphasize the Proposer's demonstrated capability to perform the Services Expensive bindings and promotional materials, etc., are not necessary or desired. However, technical literature that supports the approach to providing the Services and work plan should be forwarded as part of the proposal. Emphasis should be concentrated on completeness, approach to the work and clarity of proposal.
3 Site Examination: Proposers may visit City and its physical facilities to determine the local conditions which may in any way affect the performance of the work; familiarize themselves with all federal, state and local laws, ordinances, rules, regulations, and codes affecting the performance of the Services; make such investigations, as it may deem necessary for performance of the work at its proposal price within the terms of the Agreement; and correlate its observations, investigations, and determinations with the requirements of the Agreement.
Confidentiality of Proposal: Proposals submitted in response to this RFP shall be held confidential by City and shall not be subject to disclosure under the California Public Records Act (Cal. Government Code section 6250 et seq.) until after either City and the successful Proposer have completed negotiations and entered into an Agreement or City has rejected all proposals. All correspondence with the City including responses to this RFP will become the exclusive property of the City and will become public records under the California Public Records Act. The City will have no liability to the Proposer or other party as a result of any public disclosure of any proposal or the Agreement.
If a Proposer desires to exclude a portion of its proposal from disclosure under the California Public Records Act, the Proposer must mark it as such and state the specific provision in the California Public Records Act which provides the exemption as well as the factual basis for claiming the exemption. For example, if a Proposer submits trade secret information, the Proposer must plainly mark the information as "Trade Secret" and refer to the appropriate section of the California Public Records Act which provides the exemption as well as the factual basis for claiming the exemption. If a request is made for information marked "Confidential", "Trade Secret" or "Proprietary" ("Proprietary Information" the City will provide Proposers who submitted the information with reasonable notice to seek protection from disclosure by a court of competent jurisdiction. Proposer shall have five (5) working days after receipt of such notice to give City written notice of Proposer's objection to the City's release of Proprietary Information. Proposer (BB&K 2022) 10 SEWER, SALTWATER, AND SOLID
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shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney's fees) arising out of a legal action brought to compel the release of Proprietary Information Proposals which indiscriminately identify all or most of the proposal as exempt from disclosure without justification may be deemed unresponsive and disqualified from further participation in this RFP.
5. Submittal Instructions.
The proposal must be received no later than 4pm local time, on or before Wednesday, August 20, 2025 at the office of the:
City Clerk
City of Avalon
410 Avalon Canyon Road
P.O. Box 707
Avalon, California 90704
The envelope should clearly indicate "Proposal for (Project Name" and Proposer's name and address shall appear in the upper left hand corner of the envelope. If more than one envelope is required, each envelope shall be legibly numbered below the name of the Proposer, e.g.
Envelope 1 of 3, as required
The City will not be responsible for proposals that are delinquent, lost, incorrectly marked, or sent to an address other than that given herein, or sent by mail or courier service and not signed for by the City.
1. Miscellaneous
Amendments to RFP: The City reserves the right to amend the RFP or issue to all Proposers addenda to answer questions for clarification.
Non-Responsive Proposals: A proposal may be considered non- responsive if conditional, incomplete, or if it contains alterations of form, additions not called for, or other irregularities that may constitute a material change to the proposal.
3. Amendments to Proposals: Unless specifically requested by the City, no amendment, addendum or modification will be accepted after a proposal has been submitted to City. If a change to a proposal that has been submitted is desired, the submitted proposal must be withdrawn and the replacement proposal submitted to City prior to the deadline stated herein for receiving proposals.
Costs for Preparing: The City will not compensate any Proposer for the cost of preparing any proposal, and all materials submitted with a proposal shall become the property of the City. The City will retain all proposals submitted and may use any idea in a proposal regardless of whether that proposal is selected
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Cancellation of RFP: City reserves the right to cancel this RFP at any time prior to contract award without obligation in any manner for proposal preparation, interview, fee negotiation or other marketing costs associated with this RFP.
6. Price Validity: Prices provided by Proposers in response to this RFP are valid for 30 days from the proposal due date. The City intends to award the contract within this time but may request an extension from the Proposers to hold pricing, until negotiations are complete and the contract is awarded.
No Commitment to Award: Issuance of this RFP and receipt of proposals does not commit the City to award a contract. City expressly reserves the right to postpone the proposal for its own convenience, to accept or reject any or all proposals received in response to this RFP, to negotiate with more than one Proposer concurrently, or to cancel all or part of this RFP.
Requests for Clarification All questions, requests for interpretations or clarifications, either administrative or technical must be requested in writing and directed to the City Contact, identified above. All written questions, if answered, will be answered in writing, conveyed to all interested firms, and posted on the City's website. Oral statements by any persons should be considered unverified information unless confirmed in writing. To ensure a response, questions must be received in writing by 2:00 p.m. local time on the date identified in the Key Information.
Right to Negotiate and/or Reject Proposals: City reserves the right to negotiate any price or provision, task order or service, accept any part or all of any proposals, waive any irregularities, and to reject any and all, or parts of any and all proposals, whenever, in the sole opinion of City, such action shall serve its best interests and those of the tax-paying public. The Proposers are encouraged to submit their best prices in their proposals, and City intends to negotiate only with the Proposers) whose proposal most closely meets City's requirements at the lowest estimated cost. The Agreement, if any is awarded, will go to the Proposer whose proposal best meets City's requirements.
Non-Discrimination: The City does not discriminate on the basis of race, color, national origin, religion, age, ancestry, medical condition, disability or gender in consideration for an award of contract.
Publication Date of RFP: Thursday, July 3, 2025
(BB&K 2022) 12 SEWER, SALTWATER, AND SOLID
WASTE COST OF SERVICE STUDY
INSTRUCTIONS TO PROPOSERS
65059.00000\35036555.2
EXHIBIT "A"
PROPOSED SCOPE OF SERVICES
Consultant will prepare a cost of service study to support Sewer, Saltwater, Solid Waste and Grease Collection rates designed to generate sufficient revenues to cover costs of service without draws on fund balances or transfers from the General Fund. The rates should be designed in a manner consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities. The proposal should address your methodology for completing the following tasks:
• Manage the overall cost of service study in accordance with the schedule, budget, and quality expectations established; work and meet with staff to refine the project scope, purpose, use, and goals of the City's cost of service plan to ensure the study is accurate and reflective of the City's needs; review project schedule and answer any questions related to the development of the study.
• Develop a sewer, saltwater, and solid waste revenue requirement analysis using a generally-accepted rate setting methodology for each service that reflects the City's historical and projected operating needs for a five-year period calculating the full 100% cost of providing the aforementioned city services.
• Develop a sewer, saltwater, and solid waste cost of service analysis to equitably allocate the revenue requirements to the customers served by each utility or, alternatively, validate the sufficiency of the existing methodology based on the most recent study performed in 2021; Cost recovery strategies should align with best practices in establishing user fees.
• Develop sewer, saltwater, and solid waste rate design options utilizing cost information developed as part of the previous tasks and recommend rates for a five year period (Fiscal Years 2026-27 through Fiscal Years 2030-31);
• Provide a computer-based spreadsheet module in Microsoft Excel using an electronic copy of the final comprehensive study, including related schedules and cost documentation, in a format that can be edited by the City • Provide written documentation to summarize the findings, conclusions and recommendations of the sewer, saltwater, and solid waste cost of service study; and • Present the findings, results, and recommendations from the cost of service study to the City Council and the public, making adjustments as necessary, to ensure compliance with Proposition 218 and other applicable statutory requirements It is the City's goal to have a well-documented and legally defensible cost of service plan and to develop user fees that comply with Proposition 218 and other applicable statutory requirements completed before June 30, 2026.
(BB&K 2022) Ex. A - 1
65059.00000\35036555.2
EXHIBIT "B"
CITY OF AVALON
[***INSERT TYPE OF AGREEMENT***]
[INSERT MOST RECENT MODEL AGREEMENT
(BB&K 2022) Ex. C - 1
65059.00000\35036555.2
CITY OF AVALON CITY COUNCIL
AGENDA ITEM: 4
MEETING DATE: July 1, 2025
ORIGINATING DEP: Administration CITY MANAGER: AMA
PREPARED BY: David Maistros, City Manager
SUBJECT: Law Enforcement Services Agreement with Los Angeles County RECOMMENDED ACTION(S): Adopt a resolution notifying the Los Angeles County Board of Supervisors of the City's desire to receive specified law enforcement services from the Los Angeles County Sheriff's (LASD) office, authorizing the expenditure of COPS Grant Funds and authorize the City Manager to execute the Service Level Authorization Form (SH-AD 575) for FY 25-26.
REPORT SUMMARY: The attached authorization form establishes the annual fee for Los Angeles County to provide law enforcement services to the City of Avalon for FY 25-26. The estimated cost of services in FY 25-26 totals $2, 132,714.54.
On July 16, 2024 the City Council authorized the City Manager to execute a five-year Municipal Law Enforcement Services Agreement (MLESA) contracting the Los Angeles County Sheriff's Department through June 30, 2029.
According to California Government Code Section 51350, the County must charge the contracting city for all costs incurred under the agreement. This excludes any indirect overhead charges or costs attributed to services provided countywide or are general county government operational overheads. Thus, the County's Auditor/Controller established a complex formula to set the price of each contract service unit, and the Liability Trust Fund Claims Board' determined the recommended funding level for the liability component based on an actuarial study.
Together, these two components form the total cost per service unit assessed to the contract cities for each service unit procured.
The attached agreement (Attachment A) establishes the annual fee for Los Angeles County to provide law enforcement services to the City for FY25-26 to be $1,887,358.00 plus liability at 13% (a one percent increase from 2024-25) or $245,356.54 for a total annual cost of $2,132,714.54 for FY 25-26. This is a $60,762.10 increase over the FY 24-25 fee.
FISCAL IMPACTS: Contract amount of $2, 132,714.54 is budgeted in the FY25-26 Budget, in the General Fund account 10240-5110.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will not have an executed contract with the Los Angeles Sheriff's Department.
FOLLOW UP ACTION: Execute Agreement and send to Contract City Law Enforcement Services.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENT: Resolution, Service Level Authorization Form (SH-AD 575).
RESOLUTION NO. _
A RESOLUTION OF THE CITY OF AVALON NOTIFIYING THE LOS
ANGELES COUNTY BOARD OF SUPERVISORS OF ITS DESIRE TO
RECEIVE SPECIFIED LAW ENFORCEMNT SERVICES FROM THE
LOS ANGELES COUNTY SHERIFF'S OFFICE, AUTHORIZING THE
EXPENDITURE OF COPS GRANT FUNDS AND AUTHORIZING THE
CITY MANAGER TO EXECUTE THE CITY-COUNTY MUNICIPAL
SERVICE LEVEL AUTHORIZATION FORM (SH-AD 575) FOR
FISCAL YEAR 2025-2026
The City Council of the City of Avalon does determine, find, resolves as follows:
The City of Avalon hereby declares its desire to obtain certain law enforcement services, as specified in Section 2, below, for Fiscal Year 2025-2026 from the Los Angeles County Sheriff's Office and has confirmed that the Los Angeles County Sherriff's Office is willing to provide such services. The City Council hereby authorizes the Mayor of the City of Avalon to execute, on behalf of the City of Avalon, the City-County Municipal Law Enforcement Services Agreement (Attachment A). The City Manager is directed to forward a certified copy of this Resolution to the Los Angeles County Board of Supervisors.
Section 2. The service units which the City of Avalon wishes to obtain through the City-County Municipal Law Enforcement Services Agreement are as follows:
Catalina Resident Deputies 5.500
Section 3. In addition to the services listed above, the City Council wishes to obtain two deputies for waterfront patrol, whose services will be provided during the period between Memorial Day and Labor Day. The exact work schedule shall be as determined by and at the discretion of the City Manager and the Avalon Station Commander. The City Council hereby authorizes use of COPS grant funds to pay the County of Los Angeles for such services.
PASSED, APPROVED AND ADOPTED at the regular meeting of the City Council of the City of Avalon on this 1 day of July, 2025.
Ayes:
Noes:
Absent:
Abstain:
Ann H. Marshall, Mayor
ATTEST:
Gabrielle Morones, City Clerk
LOS ANGELES COUNTY SHERIFF'S DEPARTMENT Attachment A
CONTRACT LAW ENFORCEMENT SERVICES
SERVICE LEVEL AUTHORIZATION (SH-AD 575)
CITY: Avalon FISCAL YEAR: 2025-2026 EFFECTIVE DATE: 7/1/2025
SERVICE ESTIMATED TOTAL LIABILITY TOTAL ANNUAL COST ANNUAL HOURS ANNUAL HOURS ANNUAL MINUTES PERSONNEL RANK, RELIEF FACTOR NEW PREV. CHNG. ANNUAL RATE 13% W/LIABILITY
CODE ANNUAL COST PERSERVICE UNIT SCHEDULED SCHEDULED REQUIRED
DEPUTY SHERIFF SERVICE UNIT
Catalina Deputy, Non-Relief 324 5.50 5.50 0.00 1 s 343,156.00 1,887,358.00 $ 245,356.54 2,132,714.54 1,789 9,840 590,370 5.50
DEPUTY SHERIFF SERVICE UNIT (BONUS)
GROWTH DEPUTY UNIT
GRANT DEPUTY UNIT
SUPPLEMENTAL POSITIONS
Estimated Cost for Service Units: $ 1,887,358.00 Total Liability (13%): $ 245,356.54 Estimated Subtotal: $ 2,132,714.54 Public Safety Equipment Cost (See page 3): $
Estimated Total Annual Cost: 2,132,714,54
The terms of this Service Level Authorization (SH-AD 575) will remain in effect until a subsequent SH-AD 575 is signed and received by LASD.
Notwithstanding, annuct rates shall be revised annually per Sections 8.2 and 113 of the MLESA LASD Approval By: Report Prepared By:
Mina Cho 5/27/2025
UNIT COMMANDER NAME SIGNATURE DATE SERGEANT DATE
City Approval By:
"I certify that I am authorized to make this commitment on behalf of the City." Processed at CLEB By:
CITY OFFICIAL NAME SIGNATURE DATE SERGEANT DATE
Avalon 575 FY 2025-2026
Generated: 6/24/2025 4:51:54 PM
CITY OF AVALON CITY COUNCIL
MEETING DATE: July 1, 2025 AGENDA ITEM: 5
ORIGINATING DEP: Public Works CITY MANAGER: DMU
PREPARED BY: Robert Greenlaw, CIP Project Manager
SUBJECT: Wrigley Road Traffic Safety Improvements
RECOMMENDED ACTION(S): Approve the revised plan as presented for modifications and striping along Wrigley Road including four curves between the Pet Cemetery and Buena Vista Point.
REPORT SUMMARY: Wrigley Road, the steep "high road" linking Clemente Avenue to Pebbly Beach Road, is comprised of four curves in the City's jurisdiction - Catalina Pet Cemetery, 333 Wrigley Road, Buena Vista Point. These four roadway curves do not include any striping or supplementary warning signage to notify drivers of the curving inclined condition.
Wrigley Road is frequently used by visitors and is the only alternative road that connects town to the industrial area when Pebbly Beach Road is closed.
Working cooperatively with W-Trans, California Traffic Engineering Consultants, City Staff developed recommendations based on direction from the California Manual on Uniform Traffic Control Devices (MUTCD) as well as engineering judgement, to make recommendations to enhance the safety of the road.
City Council previously approved the original plan in April 2024. Public Works staff laid out the plan on the pavement in preparation for the marking and signage installation. After review, some minor modifications were requested on the plan. The traffic engineer was consulted and modified the plan. To preserve a design immunity defense, staff is seeking approval of the revised plan by City Council before the installation of the improvements. This is one of the requirements of a design immunity defense.
The original and revised plan are attached for a comparative review. The most significant changes include:
1. The roadway centerline has been changed from a double yellow stripe with reflectors to a single solid yellow stripe. The existing roadway is not wide enough to accommodate the double yellow and the single yellow meets the design intent to provide lane control guidance and curve perception.
2. At location #2, the centerline striping has been extended to amplify the progression of multiple curves as well as adding an additional curve warning sign.
3. At location #3, similar to location #2, the centerline striping has been extended.
Additionally, a roadside object marker sign has been added at the outside of the curve to identify existing encroachments into the right of way.
For clarification, location #5 is represented on the plan but is actually in the private roadway section of Wrigley Road. City staff will share the design with the private road owner for information. It is not part of the City's improvements.
GOAL ALIGNMENT: Traffic safety.
FISCAL IMPACTS: Undetermined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: No safety improvements will be made to Wrigley Road.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENT: Original and revised plans.
CONSTRUCTION NOTES (THIS SHEET):
RS REMOVE AND SALVACE EXISTING SIGN AND POST
ROADSIDE SIGNS
MIDDLE TERRACE RD SIGN SIGN
EXISTING RED STRIPING LETTER CO DESIGNATION PANEL SIZE
TO REMAIN .001
22 135 LF (22 265 LF 10° % 18
W1-11L 10- x 10-
STRIPINC, SIG REO [W13-IP (10 MPH) |
STRIPING, 50
[VARIES]
REMOVE EXISTING RED (27B) 100 LF = 0-z (1'-
STRIPING, 25 LF
WRIGLEY RD DRAN Y
Original
LOCATION #1 LOCATION #2
CATALINA PET CEMETERY WRIGLEY ROAD/MIDDLE TERRACE ROAD COGIS OESENEO CHESU "I ghslentgr
100 LF C222
100 LF C22
WRIGLEY RD WRIGLEY RD
WRIGLEY ROAD AVALON, CA SIGNING & STRIPING PLAN
(22) 100 LF WRIGLEY RD R2-1 (15) 5 100°
(SIGN ONLY RS)-
(27B) 70 LF
Dote 5*%S NOTED
ОATE/15/24
LOCATION #3 LOCATION #4 LOCATION #5 J0а NO
333 WRIGLEY ROAD BUENA VISTA POINT SCENIC OVERLOOK 1:40 3 PALMS SCENIC OVERLOOK DRAMAG AVER 1 o 1
AA\LAX (AVA\AVA0029 Wrigley RoadS&zs Plons CAD\AVA002_Wrigley-B.dwg - o
CONSTRUCTION NOTES (THIS SHEET):
RS REMOVE AND SALVAGE EXISTING SIGN AND POST (707) 342-9500 Fax (707) 542-9590 Vhitlock & Weinberge ransportation, Inc 490 Mendecino Avenue. Suito 20 Santa Rosa CA 93401
ROADSIDE SIGNS
MIDDLE TERRACE RD. .00L SIGN SIGN
EXISTING RED STRIPING .001 LETTER DESIGNATION PANEL SIZE TO REMAIN 50 UF C WI-11R 10-1 00- -Trans
•D 152 LF W13-1P (10 MPH)
2406 LF
W13-1P (10 MPH) 100100
EXISTING STOP BAR
TO REMAIN
(VARIES))
0 =z R2-1 (15) RS)
EXISTING RED STRIPING (273) 100 LF
IU KEMA 1-17) BY
WRIGLEY
Revised
LOCATION #1 LOCATION #2
CATALINA PET CEMETERY 1:40 WRIGLEY ROAD/MIDDLE TERRACE ROAD DESIONE CHECKED SY episentyr HOANON I VENEONLD RCE1
(27B 125 LF 100 LF (2D)
ADD NO PARKING RED 100 LF 2D
STRIPING (SIMILAR DETAIL
TO NEARBY LOCATIONS) (10*)
CRDEXISTING
POST WRIGLEY RD
WRIGLEY RD WRIGLEY ROAD AVALON, CA SIGNING & STRIPING PLAN (2 195 LF 100*
WRIGLEY RD R2-1 (15) 25
INSTALL OBJECT
MARKER (TYPE AT (Rs) W1-2
DISCRETION OF (SIGN ONLY)
CITY ENGINEER)
S4S NOTED
DATE/20/25
LOCATION #3 LOCATION #4 LOCATION #5 J0в NO.
333 WRIGLEY ROAD BUENA VISTA POINT SCENIC OVERLOOK 1: 40 AVA002 3 PALMS SCENIC OVERLOOK ORAMING
00219 Wrigley Road (sds
CITY OF AVALON CITY COUNCIL
MEETING DATE: July 1, 2025 AGENDA ITEM: 6
ORIGINATING DEP: Administration CITY MANAGER:_
PREPARED BY: David Maistros, City Manager
Devin Hart, Senior Management Analyst
SUBJECT: Contract Assignment for Semi-Exclusive Shore Boat Franchise, Shore Boat Services Provider Agreement and End Float Lease Agreement Amendment
RECOMMENDED ACTION(S): 1. Approve the request to assign the remaining term of the Semi- Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement with Avalon Shoreboat Service Corporation to Eric Mahan. 2. Authorize Catalina Jet Ski Corporation to sublease the End Float to Avalon Shoreboat Service Corporation. 3. Authorize the City Manager to execute an amendment to the End Float Lease agreement with Catalina Jet Ski Corporation modifying the intended use as well as mandating space be provided to the holder of the City of Avalon Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement.
REPORT SUMMARY: On March 5, 2024, the City Council approved contract assignments of the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement and the End Float Lease Agreement from Catalina Coastal Tours, LLC to two new corporations. Per the City Council's approval, the Semi-Exclusive Shore Boat Franchise Agreement was assigned to Avalon Shoreboat Service Corporation and the End Float Lease was assigned to Catalina Jet Ski Corporation with the condition that Scott Gorelczenko maintains ownership/control of both new corporations.
On June 17, 2025, the City Manager received a request from Scott Gorelczenko to assign the remaining term of the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement to Eric Mahan. Gorelczenko will maintain the lease for the End Float with Catalina Jet Ski Corporation.
Though the End Float Lease and Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider agreements are separate contracts, it was the City's intent to link the agreements. Per the March 19, 2019 Staff Report in which the End Float Lease Agreement was recommended to be awarded to Catalina Island Coastal Tours & Fishing, the Harbor Master wrote:
The main criteria for evaluation and the impetus for the solicitation of the End Float was to alleviate congestion within the harbor, which Staff believes will be accomplished if the lease is awarded to Catalina Island Coastal Tours & Fishing. They currently hold the Semi-exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement with the City. They propose to operate both the Shore Boat operations and their fishing charters off of this End Float, opening up the existing docks experiencing congestion currently.
Per the End Float Lease Agreement, subletting is prohibited unless approved by the City. In order to recommend that the City Council authorize the assignment of the remaining term of the semi-exclusive shore boat franchise agreement to Eric Mahan, Staff recommends the City Council concurrently amend the End Float Lease to allow for the semi-exclusive shore boat franchisee to operate from the End Float and moor overnight.
In addition to authorizing the assignment, City Staff recommends amending the End Float Lease agreement to:
1. Modify the approved use to include operations conducted by the lessee,
2. Mandate the continued operations of the semi-exclusive shore boat franchisee from the End Float, including mooring overnight on the End Float, and
3. Require the agreement for any approved subletting, and any subsequent amendments, be approved by the City Manager.
If the assignment is approved without the concurrent lease amendment, the impacts to the Harbor may be detrimental to overall operations - creating congestion and other negative impacts to commercial and recreational activities.
GOAL ALIGNMENT: Not aligned.
FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Potential negative impacts to commercial and recreational activities in the Harbor.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. March 19, 2019 Staff Report re: Award Contract - End Float RFP
2. Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
3. First Amendment to the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
4. End Float Lease Agreement
5. March 5, 2024 Staff Report re: Assignment of the Semi-Exclusive Shore Boat Franchise and Shore Boat Servies Provider Agreement and End Float Lease Agreement
CITY OF AVALON CITY COUNCIL
MEETING DATE: March 19, 2019 ADENDA ITEM: 3
CITY MANAGER: AR
ORIGINATING DEP: Harbor Department
PREPARED BY: Harbor Master
SUBJECT: Award Contract - End Float RFP
RECOMMENDED ACTION(S): Waive any irregularities and award the Pleasure Pier End- Float Project RFP contract to Catalina Island Coastal Tours & Fishing for the building and operating an End Float on the Green Pleasure Pier.
REPORT SUMMARY: Authorization was granted at the December 4, 2018 City Council Meeting for Staff to solicit proposals for the building and operating a float at the end of the Green Pleasure Pier. Staff developed the Request for Proposals (RFP) scope and drafted the RFP documents, the terms of which align with other City RFPs and was approved by the City Attorney's office.
The RFP was issued to the public on December 5, 2018. City Staff conducted a mandatory Job Walk to review the scope and terms stipulated in the RFP on January 4, 2019.
Representatives from two businesses were in attendance, Catalina Island Coastal Tours & Fishing and Catalina Classic Cruises. After advertising the RFP for five weeks & 2 days, the RFP closed on January 18, 2019 and the City received one proposal from Catalina Coastal Tours & Fishing.
The proposal has been thoroughly reviewed by City Staff; staff considered the respondent's proposal based on completeness of their proposal to meet City requirements and expectations as defined in the RFP. The respondent was required to include in their Proposal the following information:
A. Nature of Waterside Business: Describe Respondent's interest and commitment in performing this service. An officer of the Respondent who is authorized to contractually bind the firm and to negotiate an agreement with the City shall sign the letter. Provide name, title, address, email, and telephone number of this officer.
B. Synopsis. Proposal shall include a synopsis covering the relevant features of Respondent's proposal.
C. Business Plan and Approach and Equipment: Equipment needs for occupying and utilizing the property will require the use and possible building a Float on which the contracted business will base its operations. The float will have to meet the specifics size dimensions listed in the contract.
D. Experience and Reputation: The qualifications and experience of Contractor's personnel who will be overseeing services and managing operations.
E. Benefits to City: Any other matters that show that the Respondent will be in the best interest of the city.
The main criteria for evaluation and the impetus for the solicitation of the End Float was to alleviate congestion within the harbor, which Staff believes would be accomplished if the lease is awarded to Catalina Island Coastal Tours & Fishing. They currently hold the Semi-exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement with the City. They propose to operate both the Shore Boat operations and their fishing charters off of this End Float, opening up the existing docks experiencing congestion currently.
Based on the completeness of their application and ability to relieve congestion, Staff recommends City Council waive any irregularities and award the contract to Catalina Coastal Tours & Fishing (CCTF). Staff is requesting City Council provide direction on the term negotiations as detailed in CCTF's proposal:
1. Effective start date May 2020 through October 2040. The contract term stated in the RFP is for Ten (10) years, with two additional Five (5) year options. The respondent is requesting a twenty (20) year term, presumably making the prospect of construction of a new float more economically feasible.
2. End Float 80' mooring provided at "No Charge" for the first 7 years.
3. On year 8 mooring will be charged "Going Leased Mooring Rate" for the applicable space. The current annual lease mooring rate for an 60' vessel or greater is $3262, thus they are requesting a $22,834.00 waiver for this term. Staff is agreeable to this request.
4. Approval to moor up to 4 Company vessels on the End Float overnight, then move to City moorings in the off season. Three of the four vessels CCTF currently owns are subject to the Shoreboat Franshise Agreement which provides 3 leased moorings annually. Company is requesting that a fourth vessel, not covered by the Franchise Agreement, pay the prorated annual leased mooring fee for 6 months while the End Float is in place, then nightly mooring fees for the 6 months the End Float is not in place. Staff requests that the End Float agreement state that these four vessels (and not other vessels) tie overnight at the End Float during the six months the End Float is in place. During that time, if weather precludes the four vessels from being tied to the End Float, the three shoreboats be moved to moorings at no additional charge and that the fourth vessel be moved to a mooring and pay the nightly mooring fee.
5. A float will be constructed at CCTF expense as required in the RFP in time for FY2020.
Staff is agreeable for the reasons stated above, provided the float and operations are in place prior to May 15, 2020 (subject to weather).
6. If the City exercises 60 Day Termination in the first 5 years a "Early Cancellation" fee of $30,000.00 will be paid to CCTF. Staff is not agreeable to this term and recommends Council not authorize this request as it provides little coverage on the City's end in the event the lessee is not performing according to the City's expectations. Staff recommends moving forward with the standard lease terms.
Staff is requesting authorization to enter into a contract with the terms as stated in the RFP (attached) and additionally prescribed above. The Contractor or City may terminate the agreement with sixty (60) days' written notice to either party.
FISCAL IMPACTS: Unknown.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will not have a contractor in place for the summer of 2020 to collect the increase harbor use fees anticipated.
FOLLOW UP ACTION: Implement City Council direction. Execute a contract agreement with Catalina Costal Tours & Fishing.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda.
ATTACHMENTS:
1. City of Avalon Request for Proposal- End Float Project
2. Catalina Costal Tours & Fishing Contract Proposal
•
ORIGINAL.
CITY OF AVALON
SEMI-EXCLUSIVE SHORE BOAT FRANCHISE AND
SHORE BOAT SERVICES PROVIDER AGREEMENT
PARTIES AND DATE.
This Agreement is made and entered into this /5%4 day of MARCH ("Effective Date) by and between the City of Avalon, a municipal organization organized under the laws of the State of California with its principal place of business at 410 Avalon Canyon Road, Avalon, California 90704 ("City") and Catalina Coastal Tours, LLC, a California limited liability company, d/b/a Catalina Coastal Tours & Fishing with its principal place of business at 105 Pebbly Beach Road, Avalon, California 90704 ("Contractor"). City and Contractor are sometimes individually referred to herein as "Party" and collectively as "Parties."
2. RECITALS.
Background.
Avalon Bay on Santa Catalina Island ("Harbor") and the City facilities serve as a primary point of ingress and egress for large numbers of people. The relatively small size of the Harbor and the City's facilities make it necessary to control and coordinate businesses operating in the Harbor to avoid undue congestion, to assure against hazard, excessive noise and traffic, and to prevent confusion and injury. It is necessary and vital to the safe and efficient movement of people that the number, nature and scope of businesses on the City's facilities in the Harbor be regulated to protect the public health, safety and welfare. A semi-exclusive franchise for shore boat services is vital and necessary to the public safety and welfare and the proliferation of such services within the limited area available would cause excessive traffic, congestion and confusion.
Shore boat service is an integral part of Avalon Harbor and a vital necessity for City residents and persons visiting City, and supports City attractions, hotels and restaurants.
Contractor.
Contractor desires to perform and assume responsibility for the provision of certain shore boat services required by City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing passenger carrying services to public clients and is familiar with the plans of City.
Project.
City desires to engage Contractor to render such shore boat services for City ("Project"), also referred to as "Services" as set forth in this Agreement.
Semi-exclusive Franchise.
Contractor shall be granted, under this Agreement, a semi-exclusive franchise to operate shore boat services in City waters.
65059.00003129601680.2
Annual Subsidy.
Provided that Contractor is operating in accordance with the terms of this Agreement, City shall provide a subsidy to Contractor during the Initial Term (defined below) in the amount of Two Hundred Thirty Nine Thousand Dollars ($239,000) annually.
2.5 Definitions.
3. TERMS.
3.1 Scope of Services and Term; Grant of Exclusive Franchise; Annual Subsidy
3.1.1 General Scope of Services: Contractor promises and agrees to furnish to City all labor, materials, tools, equipment, services, vessels, and incidental and customary work necessary to fully and adequately supply the shore boat services necessary for the Project, herein referred to as "Services". All vessels operated by Contractor as part of the Services shall be driven only by properly licensed operators.
Said operators shall be either (1) employees of Contractor, or (2) under contact to Contractor as lessee-operators, or (3) under contract to Contractor as owner-operators.
The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. Exhibit "A" also details the number, type and age of the vessels for operation of the Services to be provided and maintained, in good operating service and repair, by Contractor throughout the term of this Agreement.
Contractor shall replace, as necessary, any such vessels in order to provide the Services as required herein. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term: The term of this Agreement shall be as follows:
The term of this Agreement shall be five (5) years commencing as of the Effective Date (the "initial Term"). The term may be extended, pursuant to a written amendment to this Agreement, for an additional five (5) years, in the discretion of Contractor. After the first five (5) year extension, the term may be extended, pursuant to a written amendment to this Agreement, for an additional five (5) years in the discretion of either Party.
3.1.3 Semi-Exclusive Franchise:
Except for shore boat/water-taxi services furnished by cruise ships or such services by other providers specifically requested by cruise ships, which shall be subject to City's reasonable approval, City hereby grants Contractor for the term of this Agreement the exclusive authority, right and privilege to operate and maintain a shore 65059.00003129601680.2
boat/water-taxi service and to transport passengers and personal baggage and goods for hire over and upon City waters for services that originate in and end in City waters. City waters shall mean waters within the City limits or within the boundaries of the tidelands and submerged lands granted to, or under lease to, City.
Notwithstanding the foregoing, City fully retains and reserves all rights, privileges and immunities that it now has under the law to fully patrol and police its waters, and to provide for shore boat services during any period that Contractor is in breach of this Agreement. The granting of this Agreement shall in no way interfere with the right of City to fully use said waters for any public purpose. Operations of Contractor shall in no way interfere with the exercise of the police power of City or with the improvement or maintenance of any of said waters or waterways.
3.1.4 Annual Subsidy:
in order to assist in the provision of the Services for the benefit of City residents and visitors, City shall provide a subsidy to Contractor during the Initial Term of Two Hundred Thirty Nine Thousand Dollars ($239,000) annually ("Annual Subsidy"). The Services not commence on the Anticipated Start Date, the Annual Subsidy for the first year of the Initial Term shall be reduced in the amount of Six Hundred Fifty Four Dollars ($654) a day from the Anticipated Start Date until the date the Services are actually commenced. Any such reduction shall be made to the first payment to Contractor of one quarter of the Annual Subsidy amount, as detailed below.
The purpose of the Annual Subsidy is to assist Contractor with its operational requirements for the Services as shown in Exhibit "C" , attached nereto and incorporated herein by reference, which sets forth Contractor's justification for the Annual Subsidy. One quarter of the Annual Subsidy amount (reduced as provided above) shall be paid within fourteen days after the Effective Date; and thereafter, beginning with the fourth month of the Initial Term, one twelfth of the Annual Subsidy amount shall be paid to Contractor on a monthly basis, by the fifteenth (15th) day of each month, in equal monthly installments. City shall have the right to withhold payment of the Annual Subsidy, or any portion thereof, if Contractor is not performing the Services in accordance with the terms of this Agreement. In addition, City may deduct from the Annual Subsidy any amounts owed by Contractor to City under this Agreement and not timely paid by Contractor. Unless otherwise approved pursuant to an amendment to this Agreement, no subsidy shall be provided for any extension term of this Agreement.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor: The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel 65059.00003\29601680.2
performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.2.2 Schedule of Services: Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the schedule attached to this Agreement as Exhibit "B" and incorporated herein by reference (Schedule"), and any other schedules agreed upon by the Parties. Contractor represents that it has the professional and technical personnel and the required number of vessels to perform the Services in conformance with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to Contractor's submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements: All Services of Contractor shall be subject to the approval of City.
3.2.4 City's Representative: City hereby designates the Harbor Master, or his or her designee, to act as its representative for the performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of City for all purposes under this Agreement. • Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee.
3.2.5 Contractor's Representative: Contractor will designate a designee to act as its representative for the performance of this Agreement ("Contractor's Representative"). Contractor's Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Agreement. Contractor's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services: Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, City consultants and other staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees: Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and 65059.00003\29601680.2
subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from City, any services necessary to correct errors or omissions which are caused by Contractor's failure to comply with the standard of care provided for herein. Any emplovee of Contractor or its subcontractors who is determined by City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to City, shall be promptly removed from the Project by Contractor and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.8 Laws and Regulations: Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services including, but not limited to, all rules and regulations of the U.S. Coast Guard, all ordinances, resolutions and laws of City, and all Cal/OSHA requirements, and shall give all notices required by law.
Contractor shall be liable for all violations of such laws and regulations in connection with Services. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.9 Insurance: Contractor shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "D" attached to and incorporated herein by reference.
3.2.10 Safety: Contactor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees and passengers appropriate to the nature of the Services and the conditions under which the Services are to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all passengers, employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.3 Contractor Fees and Payments; Rates of Fare.
3.3.1 Harbor Use Fee: Contractor shall pay to City a harbor use fee of 7% 6505900003129601680.2
gross revenues generated in operating the Services ("Harbor Use Fee"). The Harbor Use Fee shall be reported and paid utilizing the "Harbor Use form" provided by City, unless otherwise specified by the City Finance Department. Payment of the Harbor Use Fee shall be made in such frequency as required by the City Finance Department, and in accordance with all other requirements of the City Finance Department.
3.3.2 Mooring Lease Fee: Contractor shall pay to City an annual lease mooring fee of One Thousand, Three Hundred Nine Dollars ($1,309.00) each, for up to (3) three 30' moorings for the shore boat operation. The Mooring Lease Fee is adjustable, and may be increased by City upon prior notice to Contractor. Payment of the Mooring Lease Fee shall be made within thirty (30) days of receipt of an invoice for such fee by Contractor from City.
3.3.3 Rates of fare. The rates of fare for the transportation of persons and baggage and personal goods for the Services authorized by this Agreement are as set forth in Exhibit "A". Fare amounts set forth in Exhibit "A" include the total price to be charged to passengers, inclusive of the Harbor Use Fee and any other City taxes/fees.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection: Contractor shall maintain complete and accurate records with respect to all fares collected under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all such records for a period of three (3) years from the termination date of this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Termination for Convenience: Following the Initial Term, City may terminate the whole or any part of this Agreement without cause by giving Contractor six (6) months' prior written notice which clearly expresses City's intent to terminate the Agreement, and specifies the effective date of such termination.
3.5.1.2 Termination For Cause: City may, by written notice to Contractor, terminate the whole or any part of this Agreement for cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination.
Effect of Termination; Additional Services: Termination of this Agreement for any or no reason, in accordance with the provisions above, shall be without liability to City. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 65059.00003 29601680.2
3.5.2 Delivery of Notices. All notices permitted or required under this greement shall be given to the respective parties at the following address, or at suc ther address as the respective parties may provide in writing for this purpose CONTRACTOR:
Catalina Coastal Tours & Fishing
PO Box 1812
Avalon, CA 90704
Attn: Scott Gorelczenko
Phone: (310) 513-3566
CITY:
City of Avaion
P.O. Box 707
410 Avalon Canyon Road
Avalon, CA 90704
Attn: Harbor Master
Phone: 310 510-0535
Fax: 310 510-2640
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.5.3 Confidentiality: All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without the prior written consent of City, be used by Contractor for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Contractor which is otherwise known to Contractor or is generally known, or has become known, to the related industry shall be deemed confidential. Contractor shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.5.4 Cooperation; Further Acts: The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees: If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 65059.00003\29601680.2
3.5.6 Indemnification: To the fullest extent permitted by law, Contractor shall defend, indemnify and hold City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or relating to any alleged acts, errors, or omissions of Contractor, its officials, officers, employees, agents, and Contractors arising out of or in connection with the performance of the Services, including without limitation the payment of all consequential damages, expert witness fees, and attorneys' fees and other related costs and expenses. Contractor shall defend, at Contractor's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents, or volunteers. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Contractor shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.
Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by City, its directors, official's officers, employees, agents, or volunteers.
3.5.7 Entire Agreement: This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
3.5.8 Governing Law: This Agreement shall be governed by the laws of the State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence: Time is of the essence for each and every provision of this Agreement.
3.5.10 Successors and Assigns: This Agreement shall be binding on the successors and assigns of the parties.
3.5.11 Assignment or Transfer: Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.5.12 Construction; References; Captions: Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, 65059.00003129601680.2
employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.5.13 Amendment; Modification: No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.14 Waiver: No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
3.5.15 No. Third Party Beneficiaries: There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.5.16 Invalidity; Severability: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.5.17 Prohibited Interests: Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
handicap, ancestry, sex, sexual orientation or identity or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
Contractor shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.5.19 Labor Certification: By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 650S9.00003\29601680.2
3.5.20 Authority to Enter Agreement: Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.5.21 Counterparts: This Agreement may be signed in counterparts, each of which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required: Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision naking them subject to all provisions stipulated in this Agreement [Signatures on following page]
65059.00003129601680.2
SIGNATURE PAGE
TO
EXCLUSIVE SHORE BOAT FRANCHISE AND
SHORE BOAT SERVICES PROVIDER AGREEMENT
CITY OF AVALON CATALINA COASTAL TOURS,
LLC D/BIA/ CATALINA COASTAL
TOURS & FISHING
03-15-17 ourself 3/15117
City turger
Name: Sharon Gorelezenko
Attest:
Title: owner
Merel loote 02/1517
cityClerk
[If Corporation, TWO
SIGNATURES, President OR Vice
President AND Secretary AND
CORPORATE SEAL OF CONTRACTOR
REQUIRED]
Approved as to Form:
3/10/17 Name: Scott u. Gorelezento
Date
Title: Geena! Hanayen
65059.00003129601680.2
•
EXHIBIT "А"
SCOPE OF SERVICES, VESSEL DETAILS, RATES OF FARE
AND OTHER REQUIREMENTS
1. Services.
a. General. Shore boat services, as used in this Agreement, shall mean vessels provisions applicable to certificate of public convenience and necessity regarding water taxis, and shall obtain such certificate as may be legally required. b. Place of Business. Contractor shall maintain a place of business in the City so that Contractor may be contacted by telephone at all times. Mechanical means of answering may be provided, but messages must be checked at frequent intervals. All shore boats must be equipped with VHF capabilities.
Contractor currently maintains a location of business at 105 Pebbly Beach Road. This location is staffed seven (7) days a week from 0900-1700 with an office manager, and is considered Contractor's home base for operations. This location is equipped with a VHF radio and phone system to maintain communication with captains and vessels.
After normal operating hours, the phone system is forwarded to Captain Scott Gorelczenko for 24 hour 7 day a week coverage. Contractor shall notify City of any changes to the identified Captain, or to the location of Contractor's business.
Staffing. Contractor has a current staff of three captains, and anticipates adding an additional three captains to its full time staff. Contractor shall maintain a staff level sufficient to provide the Services in accordance with the Schedule, and all other requirements contained in this Agreement.
d. Ticketing. Contractor shall also provide a ticketing location for purchasing a "convenience card" or "locals discount card" allowing purchase of bulk rides using credit, debit or cash as set forth in the fees section of this Agreement. e. Call Box Stations. Contractor shall install and maintain a "call box" station on the Green Pier, and may install and maintain a "call box" station on the Cabrillo Mole, to allow passengers to contact Contractor for Services during all times of operation. Calls made via the "call box" shall be forwarded to Contractor's cell phone and shall be answered during operating hours of the Services as set forth in Exhibit "B". f. Dock Space. City will make dock space available for a shore boat operation. 65059.00003\29601680.2
2. Vessels.
a. New Vessels. Contractor shall provide two (2) 2017 24' WingCat Shore Boats (the "New Vessels"), as depicted below, which are designed to carry as many as twenty one (21) passengers, and are manufactured in San Diego, California. Contractor shall obtain from the United States Coast Guard ("USCG"), a certificate of inspection ("COl) upon completion, which COl shall dictate the final number of passengers. If the number is less than 18, another New Vessel shall be provided by Contractor. These vessels have a single Evenrude out-board gas engine, and shall be outfitted with VHF radios and all required safety equipment per the USCG. Contractor shall make its best efforts to ensure that the New Vessels are in operation and being used to provide the Services by June 15, 2017.
MULTI-PURPOSE VESSEL WINGCAT-24-US
3D*12 ARE SONG
MACARES MANDARE
COLERAL NOTES: MONI: 7x - CEO CONCE
*:2/5/201:-.m MORALRE C5 WIN TOE: 02
65059.00003129601680.2
b. Interim Use and Backup Vessels. The Parties agree that until the New Vessels have been delivered to Contractor, Contractor shall utilize its current fleet of three (3) Uninspected Passenger Vehicles ("UPV"), sometimes referred to as the "Back-up Vessels". The Back-up Vessels are all gas powered, and were built in 2005, 2006 and 2008. Two of these vessels, "Mojo" and "C-Star", have single out-board motors and "Diversity" has a single in-board engine. The Back-up Vessels have engines that are between six (6) to thirteen (13) months old. These vessels shall be operated as six (6) passenger vessels, and shall be available to assist during peak demand in the summer months if the New Vessels are insufficient to meet demand. Contractor has represented to City that the Back-up Vessels are not required by the USCG to possess a COl provided that they are operated with no more than six (6) passengers, and one (1) crew, aboard. Notwithstanding the foregoing, it shall be Contractor's obligation to comply with all legal requirements related to use and operation of the Back-up Vessels.
Until the New Vessels are delivered to Contractor, Contractor may moor the Back-up Vessels at the two (2) 30' moorings leased by Contractor for the New Vessels pursuant to Section 3.3.2 of the Agreement.
c. California Public Utilities Commission ("PUC") Vessel Common Carrier Certificate.
Contractor acknowledges the requirement to meet the PUC requirements for a Vessel Common Carrier certificate/permit ("Certificate"), if applicable. Contractor has represented to City that the vessels to be used in performance of the Services are not required to carry a Certificate. Notwithstanding the foregoing, it shall be Contractor's obligation to comply with the PUC requirements for a Certificate, and to obtain such Certificate if legally required. Contractor shail timely obtain and furnish to City a ruling from the PUC with a determination as to whether or not Contractor is required to obtain a Certificate to operate the Services in City.
d. Maintenance and Repair of Vessels. Contractor shall, at all times, maintain the vessels used in performance of the Services in attractive condition, and in good and safe operating service and repair.
[Exhibit "A" continued on following page]
65059.00003129601680.2
3. Fee Schedule.
Unless otherwise approved by the Harbor Master, in writing, Contractor shall charge the following fees (rates of fare) for shore boat use.
Fee Schedule
Type Price Description
In Harbor $4.00 Per Passenger
Outside Harbor $5.00 Per Passenger
* Resident Commuter Card $36.00 10 Trips inside Harbor
* Resident Commuter Card $45.00 10 Trips outside Harbor Convenience Card $40.00 10 Trips Inside Harbor
Convenience Card $50.00 10 Trips outside Harbor
65059.00003\2960J680.2
EXHIBIT "B"
SCHEDULE OF SERVICES
Unless otherwise approved in writing by the Harbor Master, Contractor shall provide the Services in accordance with the following schedule ("Schedule").
The times set forth below represent the first and last time on each day of the week specified that the shore boat leaves the dock.
Shoreboat Schedule
Month Sun-Thursday Friday-Saturday # of Boats
*January 0800-2200 0800-2400 1
*February 0800-2200 0800-2400 1
** March 0800-2200 0800-2400
** April 0800-2200 0800-2400 2
**May 0800-2200 0700-0200
** June 0700-2400 0700-0200 2
**July 0700-2400 0700-0200 2
**August 0700-2400 0700-0200 2
September 0700-2400 0700-0200 2
*October 0700-2400 0700-0200 1
*November 0800-2200 0800-2400 1
*December 0800-2200 0800-2400 1
* Slower months 1 boat per shift
** 2 boats Scheduled 1000-1800
Additional 3rd and 4th vessels avall on as needed basis Notwithstanding the number of boats identified in the Schedule, Contractor shall provide a sufficient number of vessels to ensure that no passenger will be required to wait longer than ten minutes for Services. Contractor shall provide the number of boats specified in the above Schedule using the New Vessels and, as needed, using its Back- up Vessels to meet additional demand.
The Service area shall include any and all mooring areas controlled by City and anchorage area within the vicinity of City.
65059.00003129601680.2
EXHIBIT "C"
BASIS FOR SUBSIDY
Subsidy Requirement $239,000
Shoreboat Revenue $ 200,000.00 Based on 50,000 riders
City Subsidy $ 239,000.00
Gross Revenue Total $ 439,000.00
Costs
Boat Financing $ 70,000.00 36 month term
Labor $ 221,500.00 (7500 Hours Annually includes taxes) Fuel $ 18,000.00
Maint 12,510.00
Insurance 17,000.00
Mooring
Bottom Service
Rent 3,000.00
Harbor Tax 7% 14,000.00
Motor Replacement 9,000.00 3 year replacement program
Taxes 28,000.00
Booking CC Fees 3,000.00
Miscl Exp Accounting/ Banking / Marketing
Total Exp. $ 410,308.00
Net Profit $ 28,692.00
Note: All figures based on annual totals
65059.00003129601680.2
EXHIBIT "D"
INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, , Contractor will maintain insurance in conformance with the requirements set forth below. Contractor will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Contractor agrees to amend upplement or endorse the existing coverage to do so. Contractor acknowledges tha le insurance coverage and policy limits set forth in this section constitute the minimur amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City.
Contractor shall provide the following types and amounts of insurance:
Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $5,000,000 per occurrence. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit.
Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Contractor owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. City will waive the foregoing business auto coverage requirement for non-owned automobiles if Contractor will not be utilizing automobiles in the performance of this Agreement. If Contractor or Contractor's employees will use personal autos in any way on this project, Contractor shall provide evidence of personal auto liability coverage for each such person.
Vessel Protection and Indemnity (P&I) with liability limits of at least $5,000,000 per occurrence. The P&l policy must include, at a minimum, general, legal, and pollution liability coverage, and shall be written on a form acceptable to City.
Pollution liability coverage limits under the P&l policy shall be, at minimum, as follows:
(a) $500,000 per claim covering Contractor's activities under this Agreement for liability arising out of a sudden, accidental and gradual pollution if 65059.00003129601680.2
vessels with outboard fuel tanks are utilized, and $1,000,000 per claim if vessels with in- board fuel tanks are utilized.
(b) Pollution legal liability, of no less than $1 million, applicable to bodily injury; property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed; cleanup costs; and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims; all in connection with any loss arising from Contractor's activities under this Agreement.
Contractor may satisfy the requirements of this section through the purchase of multiple policies as necessary.
3. If the P&l policy contains a general aggregate limit, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limits specified above.
Contactor shall maintain, during the term of this Agreement, Workers' Compensation insurance for all of employees as required by Labor Code section 3700 of the State of California, Employers Liability with limits of $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy. The insurer shall agree to waive all rights of subrogation against City, its officers, officials, and employees for losses arising from work falling within the terms of this Agreement.
For clarification, pursuant to California law, all of Contractor's employees performing under this Agreement must be covered under Worker's Compensation insurance.
Contractor's employees that are captain and crew are subject to the Jones Act. Any Contractor employees involved in land based operation in and around water (dock) and/or involved in the maintenance and repair of boats must be covered under USL&H.
Insurance procured pursuant to these requirements shall be written by insurers that are licensed carriers in the state of California and with an A.M. Bests rating of A- or better and a minimum financial size VII.
General conditions pertaining to provision of insurance coverage by Contractor.
Contractor and City agree to the following with respect to insurance provided by Contractor:
1. Contractor agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Contractor also agrees to require all contractors, and subcontractors to do likewise.
65059.00003429601680.2
against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. provided by Contractor and available or
applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage.
4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
6. All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Contractor shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent.
of insurance evidencing all of the coverages required and an additional insured or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Contractor or deducted from sums due Contractor, at City option.
8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any suspension, voidance, cancellation, or reduced in coverage or in limits.
Contractor agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of suspension, cancellation, voidance or reduction in coverage imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate.
9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Contractor or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City.
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10. Contractor agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage required of Contractor.
Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.
11. Contractor agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contractor's existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to City. At that time City shall review options with Contractor, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.
12. City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to Contractor, City will negotiate additional compensation proportional to the increased benefit to City.
13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.
14. Contractor acknowledges and agrees that any actual or alleged failure on the art of City to inform Contractor of non-compliance with any insurance equirement in no way imposes any additional obligations on City nor does i waive any rights hereunder in this or any other regard.
15. Contractor will renew the required coverage annually as long as City, or its yes or agents face an exposure from operations of any type pursuant is agreement. This oblication applies whether or not the agreement is cancele or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.
16. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter 65059.00003\29601680,2
from Contractor's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages.
17. The provisions of any workers' compensation or similar act will not limit the obligations of Contractor under this agreement. Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.
18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all- inclusive.
19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.
20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section.
21. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Contractor for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.
22. All insurance shall be written on an occurrence-made form, except the pollution liability policy which is on a claims-made form of insurance requiring Contracto to provide proof of coverage (extending reporting) for a minimum of three (3) years following termination of this Agreement.
Contractor agrees to provide immediate notice to City of any claim or loss against Contractor arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 65059.00003129601680.2
ORIGINA
FIRST AMENDMENT TO CONTRACT AGREEMENT FOR
CITY OF AVALON SEMI-EXCLUSIVE SHORF BOAT FRANCHISE AND
SHORE BOAT SERVICES PROVIDER AGREEMENT
This HRS: Arendments nade elect Mart B. 2022 to the centract Agreement Cy ana petheon the city of Avalont city and catalind Coast Tou's, DA Confornia firsted babiey company, dola Catatta CoastalTour & Fohing /"Contrace:) deedthe 15° day of March 2017
the termsland conditions ofthe Agreement areamended as foils ?.5 Annual Sutsicy
Provided that the Contractor ti operating in accordance with the terms of the Agreement. Ciry shall provide a subsidy to Contractor during the Renewal Term (defined below) in the amount of Two Hündred Eighty Nine Thousand Doflers (S239,000) annually
3.12 Terma
The torme of tus first Amendment shali be tve (5) yoars commencing Marc 15, 2022 and ending on March 15. 2027. After this Renewal Turm, the termay be extended, pursuant to a watten amend men:
i this Agreemeni, tor an additonal five (5) years if notice is provided by either party no earlier than March 15, 2026 and no fater than September 15, 2026 and upon terers agreed to by the parties, ExhibitA. Poo sidele
Unies otherwise approved by be depor kisser, in woung, Contrector shall electe the followng toes Irates offamifer hore boot noo
Type Price Description
In Hardon $3.00 Per Passenger
Outside of tarpon $7.00 Fe: Passenger
Resident Commotor carr 545.00 10 taps inside Harbor
Resident Commuter Card $53.00 i0 inps outside Harbor
Convenience Card 550.00 10 Trips aside Harbo:
Convenience Card $70.00 10 Trips outside Harbor
Except as medied above, all terms and conditions of the Apresent shail remain in eftect.
CITY OF AVALON
Denis GRadde
By:
Denise A. Radde
City Manager and Cry Clerk
CATALINA COASTAL TOURS, LLC D/B/A CATALINA COASTAL TOURS & FISHING Ahuan Mans
Sharer Cavelore
Name (Printi Name (Print)
URIGINAL
LEASE AGREEMENT
This Lease Agreement ("Lease"), effective February 1, 2020 ("Effective Date"), is entered into between the CITY OF AVALON, a municipal corporation ("Lessor"), and Catalina Coastal Tours, LLC, a California limited liability company, d/b/a Catalina Coastal Tours & Fishing with its principal place of business at 114 Catalina Avenue, Avalon, California 90704 ("Lessee"), (each individually a "Party" and collectively the "Parties").
RECITALS
Lessor is the owner of certain real property, including the improvements thereon, located in the City of Avalon referred to as the Pleasure Pier, and that is described in detail in Exhibit 1 (the "Property").
B. Lessee desires to lease from Lessor, and Lessor desires to lease to Lessee, a portion of the Property as described in more detail in the Lease on the terms and conditions set forth herein.
This Lease is based on a standard lease form that is used by the Lessor for all leases entered into by the Lessor. To the extent that Lessee believes that certain of the standard provisions of this Lease were not intended to apply to the Property because of the specific nature, intended use, or location of the Property, Lessee should notify the City of Avalon Lease Department. This Recital C in no way relieves Lessee of any of its obligations under this Lease.
D. The Lessor and Lessee freely negotiated the terms and conditions of this lease agreement and had the opportunity to consult legal counsel LEASE
NOW THEREFORE, the Parties agree as follows:
1. Property. Lessor leases to Lessee, and Lessee leases from Lessor the Property, consisting of no more than 1,680 square feet of interior and/or exterior space, which is described in Exhibit 1 attached hereto and incorporated herein by reference Lessor and Lessee agree that if Lessor makes additional space available to Lessee and Lessee accepts such space, that space shall automatically be included in the Property and the terms of this Lease shall automatically apply thereto, unless otherwise agreed by the Parties.
2. Term.
Initial Term. This Lease shall be effective and binding from and after the Effective Date and will continue, unless sooner terminated in accordance with the provisions of this Lease, for ten (10) years following installation of the End Float as defined in Section 8(h) below ("Initial Term"). Within ten (10) days following installation of the End Float, as defined in Section 7(h), Lessor and Lessee shall confirm the exact dates of the Initial Term in writing.
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Renewal Terms. Lessor shall have two successive options to renew this Lease for five (5) year periods (each period a "Renewal Term") on the same terms and conditions as the Initial Term (except for any exercised Renewal Terms), provided Lessor gives Lessee written notice of intent to renew the Lease at least sixty (60) days but no more than one hundred eighty (180) days prior to the end of the Initial Term or first Renewal Term, as applicable. Lessor's failure to exercise the first Renewal Term shall waive its right to exercise the second Renewal Term. The Initial Term and Renewal Terms are referred to collectively herein as the "Term." (C) Termination. Lessee may terminate the Lease on sixty (60) days' written notice to the Lessor.
3. Rent
(a) The City will waive the rent for the Lessee's first seven (7) years of operation - until October 2027.
(b) Beginning on May 1, 2028, the Lessee shall pay an annual lease mooring fee for the End-Float based on the float's total length, in accordance to the City's current mooring fee size schedule.
(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. All vessels allowed to moor will also be at the discretion of the Harbor Master. Any and all vessels, with the exception of shore boat vessels, moored to the End-Float overnight shall pay a nightly mooring fee based on the vessel's total length, in accordance to the City's current mooring fee size schedule (d) Harbor Use Fee. The Respondent shall pay to the City, for the right to operate the waterside service, a harbor use fee of 7% of the respondent's gross revenue generated from such operations.
(e) Merchandise Sales Fee. The Respondent shall pay to the City a merchandise sales fee of 8% for any and all merchandise sold from the business' float.
4. Use.
(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. The Property shall be open for business from May 1 to October 15 each year the service is under contract. Seasonal weather patterns prohibit the sate operation of the service at other times of year. (b) Compliance with Law. Lessee shall, at all times and at Lessee's expense, comply with all applicable federal, state and local laws, rules, regulations, and orders, and all covenants and restrictions of record regulating the Property and Lessee's use of the Property. Lessee shall not use nor permit the use of the Property in any manner that will violate the same or disturb other property owners or tenants in the areas surrounding the Property or Property.
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(C) Condition of Property. Lessee has examined the Property and agrees to take possession in an "as is" condition. Lessee acknowledges and agrees that Lessor has made no representations, guarantees or warranties regarding the Property, or its fitness for any particular purpose, or regarding any common areas or improvements thereon, nor has Lessor made representations, guarantees or warranties regarding whether the Property and common areas and improvements thereon comply with applicable laws, rules, regulations, orders, or any covenants or restrictions of record in affect at the Effective Date of this Lease. Lessee assumes all responsibility regarding the California Occupational Safety Health Act, the legal use and adaptability of the Property and compliance with all applicable laws, rules, regulations, orders and covenants or record in effect during the Term of this Lease relating to the Property except as otherwise specifically stated in this Lease.
5. Hazardous Waste and Trash Disposal. Lessee shall not use, generate, store or dispose of any Hazardous Materials on the Property or permit the contamination of the Property by Hazardous Materials. For the purpose of this section, Hazardous Materials shall include, without limitation, substances defined as "hazardous substances, "hazardous materials, " "toxic substances," hazardous wastes," "extremely hazardous wastes" or "restricted hazardous wastes" or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. sections 9601, et seq; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. sections 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq.; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any substances so defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time.
Notwithstanding any other provision of this Lease, Lessee agrees to comply promptly, and at Lessee's sole cost, with all applicable federal, state and local laws, rules regulations, permits and orders governing the use, management, storage, handling, cleanup, removal, disposal and shipping of Hazardous Materials. Lessee shall dispose of all trash and waste generated at the Property in a trash container at a location designated by Lessor.
Lessee's Repair and Maintenance Obligations.
Lessee takes on the responsibility to acquire, repair and maintain, annually store the Pleasure Pier End-Float from which the business will operate. All aspects of the float design and construction or acquisition must be approved by the City of Avalon City Council. If a building is constructed, the layout and contents of the building as well as what type of merchandise is displayed or sold must be approved by the City of Avalon City Council. The Respondent also must work with Avalon Mooring Service for weights, chain, installation and removal of the float. The Lessee will install/remove the End-Float infrastructure at their own expense and with their own anchoring equipment (as approved by the City, and will be required to operate their vessels solely from the End- Float. Lessee shall keep in good order, condition and repair, and shall replace, if necessary, the Property and every part thereof, structural and nonstructural occupied or used by Lessee, whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements, or the age of such portion of the Property. This includes, but is not limited to, glazing, plumbing, heating, air conditioning, ventilation, electrical and
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lighting fixtures and facilities, all equipment within the Property, fixtures, walls (interior and exterior), ceilings, roofing, floors, windows, doors, plate glass, skylights, landscaping tree-trimming, and all fences and signs located on the Property.
7. Construction or Purchase of End Float.
(a) General. Lessee shall have the right, at Lessee's sole cost and expense, to construct or otherwise acquire the End Float and related improvements on the Property in accordance with the provisions of this Section 7. (b) Approvals. Lessee shall construct or otherwise acquire the End Float in conformity with the permits and approvals issued by City of Avalon. Lessee shall use reasonable efforts to apply for and obtain any additional final and unappealable licenses, permits, authorizations, consents, certificates, waivers and approvals required by (i) applicable government and private agencies or boards having jurisdiction, and (ii) any utility provider (each individually, an "Approval Authority"), as may be necessary for the development, construction and operation of the End Float on the Property, including, but not limited to, environmental licenses, permits, authorizations, consents, certificates, waivers and approvals, land development approvals, site plan approvals, zoning permits, use permits, building permits, occupancy permits, zoning changes, zoning relief (such as variances and special exceptions), any modifications or amendments to existing agreements or approvals with any Approval Authority as may be necessary for the development, construction and operation of the End Float, and any easements (that do not burden the Property, unless approved by Lessor, which approval shall not be unreasonably withheld, conditioned or delayed) necessary in connection with such development, construction and operation of the End Float (collectively, the "Approvals").
Lessor's Review of Plans. Prior to commencing any construction or acquisition, Lessee shall comply with the following:
i. Lessee shall submit to Lessor schematic drawings depicting in concept the new construction or depicting the layout of the float to be purchased. Lessor shall not unreasonably withhold its approval in concept. Any disapproval shall be in writing and shall specify the reasons therefor, and failure to so disapprove within twenty (20) business days after delivery of such schematics to Lessor shall constitute approval.
Lessee shall submit to Lessor for Lessor's approval a copy of Lessee's complete final construction plans and specifications, a copy of Lessee's contract with the general contractor, evidence of the general contractor's financial condition and satisfactory evidence that Lessee has obtained all necessary governmental permits and approvals necessary for the construction of the improvements in accordance with Lessee's complete final construction plans and specifications. If purchasing rather than constructing, Lessee shall submit actual layout of improvements.
Final working plans and specifications shall
substantially conform to the schematic plans previously approved by Lessor. Changes from the schematic plans shall be considered to be within the scope of the schematic plans and shall not require Lessor's approval if they are not substantial or if they are made
65059 00003 8509617.1
to comply with suggestions, requests or requirements of a governmental agency or official in connection with the application for a permit or approval.
Lessor and Lessee shall execute, enter into and deliver to each other, originals of an assignment of plans and specifications which shall give Lessor the right but not the obligation to acquire Lessee's rights and to assume Lessee's obligations with respect thereto should Lessee default. Lessee shall deliver to Lessor an original of an architect's consent and certification duly executed and entered into by Lessee's architect.
(iii) The contract shall give Lessor the right but not the obligation to acquire Lessee's rights and to assume Lessee's obligations under that contract should Lessee default. Lessor and Lessee shall execute, enter into and deliver to each other, originals of an Assignment of Construction Contract as to each contract to which Lessee is a party, and Lessee shall deliver to Lessor an original of a Contractor's Consent and Certification as to each party who contracts with Tenant, duly executed and entered into by such party.
(iv) The plans and specifications and construction contract shall bear evidence of having been approved by Lessee's construction lender, if any.
If Lessor does disapprove any item submitted for its
approval, it shall state the specific reasons therefor in writing, and the failure to so disapprove within twenty (20) business days after delivery to Lessor shall constitute approval.
Notice of Nonresponsibilty. No work of any kind shall be commenced on and no bullding or other materials shall be delivered for any improvements, nor shall any other building or land development work be commenced or building materials be delivered to the Property until at least ten (10) days after written notice has been given by Lessee to Lessor of the anticipated commencement of such work or the anticipated delivery of such materials. Lessor shall, at any and all times during the term of his Lease, have the right to enter the Property and to post and maintain on the Property and to record as required by law any notice or notices of non- responsibility provided for by the mechanics' lien laws of the State of California. The work prohibited by this section until ten (10) days' written notice thereof has been given to Lessor includes actual construction work, any site preparation work, installation of utilities, street construction or improvement work, or any grading or filling of the Property.
Compliance. All work done pursuant to this Section 7 shall be done in full compliance with all applicable statutes, regulations, ordinances, orders, rules, conditions, codes and other laws pertaining to such work. Lessee specifically acknowledges that construction on the Property will be subject to the Americans with Disabilities Act (the "ADA") and all regulations issued pursuant thereto. All work performed on the Property shall be done in good workmanlike manner and only with materials of good quality and high standard.
(f) Clean Up. Lessee shall at all times keep the Property free from unreasonable or hazardous accumulations of waste materials and/or rubbish caused by
65059.00003 8509617.1
any work on the Property. Immediately after full and final completion of the work, Lessee shall remove from and about the Property all waste materials and rubbish and all tools, construction equipment, construction machinery and surplus materials. All work required by this Section shall be done at Lessee's sole cost.
Notice. Should any claims of lien be filed against the Property or the improvements located thereon, or any action affecting the title to such property be commenced, the party receiving notice of such lien or action shall forthwith give the other party written notice thereof.
Completion. Lessee shall diligently pursue completion of the construction or acquisition of all improvements, additions and alterations. Lessee shall complete construction or acquisition to comply with a May 1, 2020 installation; provided, however, that the time for completion shall be extended for as long as Lessee shall be prevented from completing the construction by Lessor Delay or Force Majeure. However, regardless of cause, failure to complete all construction within one (1) year following commencement of construction shall at Lessor's election terminate this Lease. For the purposes of this Lease, construction shall be deemed to have been completed when a valid certificate of occupancy has been issued for such improvements and Lessee's architect shall have furnished Lessor with a written certification that the improvements were completed substantially in accordance with the approved final plans and specifications.
i. Lessor Delay. "Lessor Delay" shall mean any delays caused in whole or in part by or through Lessor and/or Lessor's employees, representatives or agents, including, without limitation, Lessor's failure to reasonably cooperate with Lessee representatives and/or agents with any obligations to be performed on the part of Lessee.
In the event Lessee notifies Lessor of circumstances that could result in a potential delay in the construction of the End Float, Lessor and Lessee shall at all times act reasonably and cooperate with each other to mitigate such delay.
il. Force Majeure. "Force Majeure" shall mean an act of God, an act of the public enemy, strike, lockout, boycott, picketing, riot, insurrection, fire, or any governmental law, order, rule, regulation or ordinance, or any other occurrence not within the reasonable control of the party claiming Force Majeure, excluding financial inability to pay debts. Any prevention, delay, nonperformance or stoppage due to Force Majeure shall excuse nonperformance for a period equal to any such prevention, delay. nonperformance or stoppage, except the obligations imposed by this Lease for the payment of rent, taxes, insurance or other monetary obligations, provided the party claiming such excuse notifies the other party of the force majeure event allowing the excuse within ten (10) business days of the first day of the event. (i) As-Built Plans. Within ninety (90) days after completion of construction or acquisition, Lessee shall furnish Lessor, at Lessee's expense, with one set of Mylar or Cronoflex "As-Built" plans, according to scale, showing such improvements as constructed in detail, including the location of utility lines.
65059.0000318509617.1
Indemnity. Lessee shall, to the maximum extent permitted by law, indemnify, defend and hold Lessor harmless from any and all claims, demands, liens, damages, losses, actions, liabilities, injuries and/or expenses (including, without limitation, reasonable attorneys' fees), in any manner related to, arising out of and/or resulting from, the performance or nonperformance of any work done pursuant to this Lease by or on behalf of Tenant, or the payment or nonpayment therefor. Lessor's indemnity rights under this paragraph shall also inure to the benefit of any and all of Lessor's employees, agents, beneficiaries, trusts, successors, assigns, transferees and representatives, and to the benefit of any and all persons and/or legal entities who are, could be, or are alleged to be, liable for the obligations of Lessor and all of Lessor's employees, agents, trustees, heirs, beneficiaries, trusts, successors, assigns, transferees and representatives. The rights and obligations of indemnity provided in this paragraph shall not be exclusive and shall be in addition to such other rights and obligations as otherwise exist independent of the provisions of this section. The rights and obligations created by this paragraph shall survive the completion of the construction or acquisition and installation work, the payment therefor, and the acceptance thereof.
Alterations. Lessee shall make no alterations to the completed improvements without the prior written consent of Lessor which approval shall not be unreasonably withheld. Notwithstanding the foregoing, Lessee shall be entitled to make alterations which are neither structural nor visible from the exterior or which cost less than TEN THOUSAND DOLLARS ($10,000) without Lessor's consent, so long as Lessee gives Lessor at least ten (10) days advance written notice of its intention to make such alterations.
(1) Mechanics' Liens. At all times during the term of this Lease, Lessee shall keep the Property and all building and improvements now or hereafter located on the Property free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Property.
Should Lessee fail to pay and discharge or cause the Property to be released from any such lien or claim within twenty (20) days after service on Lessee of written request from Lessor to do so, Lessor may pay, adjust, compromise, and discharge any such lien or claim of lien on such terms and manner as Lessor may deem appropriate. In such event, Lessee shall, on or before the first day of the next calendar month following any such payment by Lessor, reimburse Lessor for the full amount paid by Lessor in paying, adjusting, compromising, and discharging such lien or claim of lien, including any attorney's fees or other costs expended by Lessor, together with interest at the rate of ten percent (10%) per annum from the date of payment by Lessor to the date of repayment by Tenant.
save Lessor harmless against liability, loss, damages, costs, attorneys' fees and all other expenses on account of claims of lien of laborers or materialmen or others for work performed or materials or supplies furnished for Lessee or persons claiming under it and from any other matter arising out of or in connection with the design or construction of any improvements under this Lease; provided, however, that nothing in this paragraph shall be construed as a provision, clause, covenant or agreement which, under the provisions of Civil Code Section 2782 would be against public policy and void and unenforceable.
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All indemnity rights and duties shall survive the expiration or termination (for any cause) of the term of this Lease.
ill. In the event any lien is recorded, Lessee shall, within thirty (30) days after receipt of notice thereof, furnish the bond described in California Civil Code Section 3143 or any successor statute, which results in the removal of such lien from the Property.
Damage to Property. In the event that repairs are necessary to alleviate structural hazards because the Property is damaged by circumstances not caused by the negligence or willful misconduct of Lessee, its employees, contractors, agents, invitees or guests, Lessee shall inform Lessor in writing of such necessity. Lessor shall then have the option, in its sole discretion, to either immediately terminate this Lease or to provide for the necessary repairs. In the event Lessor elects to terminate this Lease, no rent shall accrue or be payable to the Lessor after the date Lessor terminates the Lease. Lessee expressly waives the benefit of any statute now or hereinafter in effect which would otherwise afford Lessee the right to make repairs at Lessor's expense or to terminate this Lease because of Lessor's failure to keep the Property in good order, condition and repair.
9. Alterations and Additions. Lessee shall not make any alterations, improvements, additions, Utility Installations exceeding $5,000 (Five Thousand Dollars) in value, hang or paint any signs visible from the exterior of the Property, or make any change to the exterior of the Property, without Lessor's prior written consent. The term "Utility Installation" shall mean installation of carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing, and structural changes. If Lessor authorizes any alterations, improvements, additions, or Utility Installations, all such improvements shall be Lessee's sole responsibility and shall be installed and removed at Lessee's sole cost and expense.
Upon the removal of any improvement, alteration, addition or Utility Installation, Lessee shall restore the Property to its prior condition. Lessor may require Lessee to provide Lessor, at Lessee's sole cost and expense, a lien and completion bond in an amount equal to one and one half times the estimated cost of such improvements. Should Lessee make any alternations, improvements, additions or Utility Installations without the prior approval of Lessor, Lessor may require that Lessee immediately remove any or all of the
10. Release of Claim For Relocation Benefits. Lessee hereby acknowledges and agrees that Lessee has no claim or right to relocation benefits or compensation of any kind or nature upon termination of this Lease for any reason, even if such termination was made by the unilateral election of Lessor in its sole discretion. Lessee expressly waives any and all claims or rights to receive relocation benefits or compensation of any kind or nature. Lessee acknowledges that Lessor would not enter into this Lease but for this acknowledgment and waiver by Lessee. During any period of repair or reconstruction by Lessor during the Term of this Lease that requires Lessee to vacate the Property.
Lessor shall be under no obligation to provide alternative space to Lessee, but Lessee shall be relieved of the obligation to pay rent during such time that Lessee is unable to utilize the Property. Lessee shall vacate the Property within sixty (60) days' written notice
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to vacate for such purpose and shall be solely responsible for all costs of vacating from and relocating to reconstructed or newly constructed space, if any is available.
11. Insurance. The Lessee shall provide the Lessor with a copy of insurance upon execution of the Lease and upon renewal of insurance as follows:
(a) Workers Compensation Insurance. The Lessee is required to provide evidence of workers' compensation coverage as follows:
i. Workers' Compensation insurance with statutory limits as required by the Labor Code of the State of California
ii. Employers Liability with limits of 1,000,000 per Accident; 1,000,000 Disease per employee; 1,000,000 Disease per
policy.
ili. The policy must include a written waiver of the insurer's right to subrogate against the City of Avalon.
Liability Insurance. For the Term of the Lease, Lessee shall maintain and keep in full force Commercial General Liability Insurance no less broad than ISO form CG 00 01 against any liability arising out of the ownership, use occupancy, or maintenance of the Property, and operation of Lessee's business at the Property and all appurtenant thereto when used by Lessee. Such insurance be no less than the following:
i. Minimum Limits: 1,000,000 per Occurrence; 2,000,000
General Aggregate; the General Aggregate shall apply
separately to each location.
ii. Prior written consent is required if the insurance has a deductible or self-insured retention in excess of $25,000 ili. The City of Avalon must be an additional insured for liability arsing out the ownership, maintenance or use of that part of the premises leased to the Tenant/Lessee/Concessionaire (ISO form CG 20 11 or equivalent).
iV. The insurance provided to the City of Avalon as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by the City of Avalon
The policy must cover inter-insured suits and include a "separation of Insureds" or "severability" clause which treats each insured separately.
(C) Property Insurance.
i. Prior to Lessee's entry upon the Property and for the Term of the Lease, Lessee shall obtain and keep in full force and effect
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a policy of insurance covering loss or damage to the Property, Derisolute the ll replacement valet real
, extender
overage, vandalism, malicious mischiet, commoniy known a broadform coverage." Lessee shall provide Lessor a copy o this insurance policy upon execution of this Lease.
ii. Lessee shall also insure its fixtures, equipment and tenant improvements on the Property at its sole cost and expense. iii. The limits of said insurance shall not, however, limit the liability of Lessee hereunder.
(d) Restrictions; Endorsements.
i. Lessee shall not do or permit to be done anything which shall All policies of insurance shali be endorsed to: (1) name Lesso (and at Lessor's option, any additional parties designated by Lessor) as an additional insured; (2) provide that such v of Lessor, which shall not bi
called ce is priary any alic of enorwhich shall t
policy shall not be cancelled, terminated or modified without prior written notice to Lessor.
ii. All insurance policies must be issued by an insurer with an A.M. Best rating of at least A:VII. Lessee shall provide immediate written notice if (1) any of the required insurance olicies are terminated; (2) the limits of any of the require olicies are reduced: or (3) the deductible or self-insure reténtion is increased
12. Indemnification and Release.
(a) Indemnification. Lessee shall indemnify, defend, reimburse and hold harmless Lessor from and against any and all demands, claims, losses, damages or liabilities of any kind or nature, including claims for damage to property or persons, including wrongful death ("Claim"), arising from or in connection with any act or omission of Lessee, including Lessee's active and passive negligence or Lessee's use of the Property or Property under this Lease, including, without limitation, any activity, work or things done, permitted or suffered by Lessee in or about the Property or elsewhere on the Property and any breach or default by Lessee of this Lease. If any action or proceeding is brought against Lessor by reason of any such Claim, Lessee's obligation to defend the same shall be done with counsel approved in advance by Lessor. (b) Release. Lessee hereby agrees that Lessor shall not be liable for, and hereby waives and releases Lessor from, any injury to Lessee's business or any loss of income therefrom or for damage to the goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, agents, invitees, guests, or any other person
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on the Property, nor shall Lessor be liable for injury to the person of Lessee, Lessee's employees, agents, contractors, guests or invitees caused by any reason whatsoever, including without limitation, by fire, steam, electricity, gas, water, rain, the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures on the Property or Property, or from any other cause or condition arising upon the Property or upon other portions of the Property which the Property are a part, or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Lessee except to the extent such injury or loss is caused by Lessor's sole gross negligence or willful misconduct. Lessor shall not be liable for any damages arising from any act or neglect of any other lessees or possessors, if any, of the Property.
13. Utilities. Lessee shall arrange and timely pay for all gas, heat, light, disposal, power, water and any other utilities and services needed or supplied to the Property, together with any taxes thereon.
14. Assignment and Subletting.
Except as otherwise provided below, Lessee shall not convey. assign, transfer, mortgage, pledge, sublet or encumber any interest in the Property during the Term of this Lease, nor allow any other person (the employees, agents, servants and invitees of Lessee excepted) 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.
Any attempted conveyance, assignment, transfer, mortgage, pledge, sublet, or encumbrance shall be void where such consent has not been obtained, and the original Lessee shall remain responsible for any unpaid rents, fines, fees, or other liabilities arising from or related to the Property.
Any subletting approved by Lessor shall not relieve Lessee of any of its obligations or liabilities under this Lease, and both Lessee and any subsequent lessor(s) will be deemed to be bound by this Lease.
(d) Any dissolution, merger, consolidation, or other reorganization of Lessee or sale which results in a change of controlling persons shall be deemed an assignment of this Lease. Any such assignment or subletting without advance written consent of Lessor shall be void, and shall, at the option of the Lessor, constitute a default under the terms of this Lease.
Lessee may transfer this Lease upon the sale or other transfer of substantially all of the assets of Lessee, provided Lessee first obtains Lessor's written consent, which shall not be unreasonably withheld and provided Lessee pays to Lessor a lease transfer fee equal to three percent (3%) of the sale price with a cap of $30,000 of Lessee's business ("Transfer Fee"). The Transfer Fee shall not apply to a transfer of this Lease upon the transfer of a controlling interest in Lessee's business to a member of the immediate family of such controlling person , or to a transfer of the controlling interest to an inter vivos trust in which such controlling person is the trustee of the trust. In the event Lessee's business has multiple locations and Lessee assigns, sublets, or transfers the Lease for one location without assigning or transferring the business as a whole, the
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Transfer Fee shall be a flat $5,000 or a lower amount at the discretion of the City Manager.
15. Defaults and Remedies.
Defaults. In addition to those items already designated to be a breach or default of this Lease elsewhere in the Lease, the occurrence of any of the following events shall be a material breach of this Lease and shall constitute an event of default:
Abandonment, vacation, or surrender of the Property by
Lessee without Lessor's prior written consent (failure to occupy and/or operate the Property for ten (10) consecutive days shall be deemed an abandonment and vacation, unless at least ten (10) days before failing to occupy or operate the Property Lessee gives Lessor written notice that Lessee intends to continue using the Property and will continue maintaining the Property while it is vacant, or the dispossession of Lessee from the Property (other than by Lessor by process of law or otherwise). ii. The failure by Lessee to make any payment of rent or any reimbursement or payment required to be made by Lessee, including applicable Harbor Use Fees, Admission Taxes, or other fees and taxes to the City Associated with the operation of the business or use of the leased facilities hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof from Lessor to Lessee.
The failure by Lessee to observe or perform any of the
covenants, conditions or provisions of this Lease to be observed or performed by Lessee, if the failure has continued for a period of ten (10) days after Lessor demands in writing that Lessee cure the failure, provided however, that if the nature of Lessee's default is such that more than ten (10) days are reasonably required for its cure, in Lessor's sole discretion, Lessee shall not be deemed to be in default if Lessee commenced such cure within said 10-day period and thereafter diligently prosecutes such cure to completion to the satisfaction of Lessor.
The making by Lessee of any general arrangement or
assignment for the benefit of any creditor, Lessee becoming a "debtor" as defined in 11 U.S.C. 101; the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Property or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Property or of Lessee's interest in this Lease, where such seizure is not discharged within thirty (30) days.
(b) Remedies. In the event of any such material breach or default by Lessee, Lessor may at any time thereafter, with or without notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default or breach, do any of the following:
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Terminate the Lease on sixty (60) days' written notice
Lessee, in which case Lessee shall immediately surrender possession of the Property to Lessor on the termination date specified by Lessor. In such event, Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default including, but not limited to, the cost of recovering possession of the Property, including all attorneys' fees and court costs incurred, if any; expenses of reletting, including necessary renovation and alteration of the Property, reasonable attorneys' fees, and any real estate commission actually paid in connection with such reletting; the value of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessor proves could not reasonably be avoided; and that portion of the leasing commission, if any, paid by Lessor for the unexpired Term of this Lease.
II. Maintain Lessee's right to possession in which case this Lease shall continue in effect whether or not Lessee shall have abandoned or vacated the Property. In such event, Lessor shall be entitled to enforce all of Lessor's rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder.
ili. Pursue any other remedy available to Lessor at law or in equity.
Possessory Interest Tax. Lessee hereby recognizes that this Lease may create a possessory interest subject to property taxation, and that Lessee may be subject to the payment of property taxes levied on such interest.
17. Late Charges. Lessee acknowledges that late payment of rent or any sums due under this Lease will cause Lessor to incur costs not contemplated herein, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any sum due from Lessee is not received by the day it is due, then without requirement for notice to Lessee, Lessee shall pay a late charge of ten percent (10%) per month, plus interest at the rate of ½ of 1% (.005%) per month or portion thereof, from the date the rent becomes due. The Parties agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of late payment. Acceptance of such late charge shall in no event constitute a waiver of Lessee's default, nor prevent Lessor from exercising any of the other rights and remedies granted in this Lease. In the event that a late charge is payable for three (3) consecutive installments of rent, then the minimum monthly rent shall automatically become due and payable quarterly in advance, rather than monthly.
The quarterly advance payments of rent will continue until Lessor notifies Lessee in writing
Severability If any portion of this Lease is ruled by a court of competent jurisdiction to be invalid, the remaining portions shall remain in full force and effect.
Entire Agreement; Amendments. This Lease contains all agreements of the Parties with respect to the Property. No prior agreement or understanding pertaining to any such matter shall be effective, whether oral or in writing. This Lease may only be modified in writing, signed by the Parties.
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20. Notices. Any notice required or permitted to be given under this Lease shall be in writing and given by personal delivery or by first class mail to the address and person below. Either Party may, by notice to the other, specify a different address for notice purposes. Notice given by personal delivery shal be deemed received upon personal delivery. Notice given by mail shall be deemed received three (3) days after deposit in the U.S. Mail.
Lessor: City of Avalon
P.O. Box 707
Avalon, California 90704
Tele: (310) 510-0220
Fax: (310) 510-2478
Attention: Administration-Leases
Lessee: Catalina Coastal Tours & Fishing
PO Box 1812
Avalon, California 90704
Tele: 310.513.3566
Attn: Scott Gorelczenko
Waivers. The waiver or failure to enforce any provision of this Lease by Lessor shall not be deemed to be a waiver of any future breach of that same provision or of any other provision of this Lease. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to or approval of any subsequent act by Lessee. The acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any provision of this Lease, other than the failure of Lessee to pay the particular rent so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent.
22. Holding Over. Lessee has no right to retain possession of the Property or any part thereof beyond the expiration or termination of this Lease. If Lessee, with Lessor's consent, remains in possession of the Property or any part of the Property after the expiration or termination of the Term of this Lease, such occupancy shall be a tenancy from month to month subject to all the provisions of this Lease.
Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies available at law or in equity.
Binding Effect; Choice of Law. This Lease shall be binding upon and inure to the benefit of the Parties, their personal representatives, heirs, successors and assigns. This Lease shall be governed by and construed in accordance with the laws of the State of California. Venue shall be in Los Angeles County.
Attorneys' Fees and Costs. If either Party brings an action to enforce the Terms of this Lease or declare the rights of the Parties under this Lease, the prevailing
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Party shall be entitled to recover all costs and expenses incurred in such action, including reasonable attorneys' fees as fixed by the court or arbitrators.
Right to Enter Property. Lessor and Lessor's agents shall have the right to enter the Property, at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Property or Property as Lessor may deem necessary or desirable. Lessor may, at any time, place on or about the Property any "For Sale" signs and Lessor may, at any time, during the last 120 days of the Term of this Lease place on or about the Property any "For Lease" signs.
Records, Audit. Lessee shall keep records, reports and books of account substantially in accordance with general accepted accounting principles to reflect accurately the gross receipts, expenditures and net income of Lessee concerned with and related to its operations and activities under this Lease. Lessor shall have the right to inspect and audit Lessee's financial accounts, books and records to ensure Lessee's compliance with this Lease, at any time during the Term of this Lease. Lessor will provide a minimum written notice of the request to audit forty-eight (48) hours in advance of the audit.
28. Nondiscrimination. Lessee covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the requirement that there shall be no occupancy, tenure, or enjoyment of the Property, nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of employees, contractors or vendors in the Property
29. Quiet Possession. Upon Lessee's payment of the rent for the Property and observing and performing all of the covenants, conditions and provisions to be observed and performed under this Lease, Lessee shall be entitled to have quiet possession of the Property for the Term of this Lease subject to all of the provisions of this Lease.
Compliance with Lessor's Rules for Use of Property. Lessee agrees that it will abide by, keep and observe all reasonable rules and regulations which Lessor may make from time to time for the management of the Property, including, without limitation, the delivery of supplies, the parking of vehicles and the preservation of the good order.
The violations of any such rules and regulations shall be deemed a material breach of this Lease.
31. Third-Party Beneficiaries. There are no intended or incidental third-party beneficiaries of this Agreement.
Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument and a fully executed Lease.
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Compliance with California Civil Code Section 1938. Pursuant to and in compliance with California Civil Code section 1938, Lessee is notified that the Property has not undergone inspection by a Certified Access Specialist Authority to Execute. The individuals executing this Lease on behalf of each Party represent and warrant that they are fully authorized and legally capable of executing this Lease on behalf of that respective Party, and binding that Party thereto. [Signatures to Lease Agreement on Next Page]
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Signature Page to Lease Agreement
The Parties hereto have executed this lease on the date stated below:
Lessec
Dated:
Its: _ 1.815/
Sum: icon
By ALLieto
Its: Qubar
City of Avalon
Dated: 06/03/20 Done A Rade.
City Manager
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CITY OF AVALON CITY COUNCIL
MEETING DATE: March 5, 2024 AGENDA ITEM:
ORIGINATING DEP: Administration CITY MANAGER: AMA!
PREPARED BY: David Maistros, City Manager
Devin Hart, Management Analyst
SUBJECT: Contract Assignment for Semi-Exclusive Shore Boat Franchise, Shore Boat Services Provider Agreement and End Float Lease Agreement
RECOMMENDED ACTION(S): 1. Approve the request to assign the remaining term of the semi- exclusive shore boat franchise agreement with Catalina Coastal Tours, LLC to Avalon Shoreboat Service Corporation. 2. Approve the request to assign the remaining term of the end float lease agreement with Catalina Coastal Tours, LLC to Catalina Jet Ski Corporation.
REPORT SUMMARY: On January 15, 2024, the City Manager received a request from Scott Gorelczenko, owner/operator of Catalina Coastal Tours, LLC, to reassign the remaining term of the Semi-Exclusive Shore Boat Franchise Agreement and End Float Lease Agreement to two new companies under his ownership/control.
Catalina Coastal Tours, LLC is being dissolved and Gorelczenko requested the remaining term of the semi-exclusive shore boat franchise agreement (3 years, expiring March 15, 2027) be assigned to Avalon Shoreboat Services Corporation.
Gorelczenko requested the remaining term of the end float lease agreement (approximately 6 years, expiring May 1, 2030) be assigned to Catalina Jet Ski Rental Corporation.
It is City Staff's understanding that Gorelczenko will continue to be the principle in charge of both new corporations
Per both existing agreements with Catalina Coastal Tours, LLC, the Lessee/Contractor is required to have prior written consent before any lease assignment or subletting - "which may be refused in the Lessor's (City's) sole discretion."
City Staff recommend approval of the proposed assignments with the condition that Scott Gorelczenko maintains ownership/control of the new corporations.
GOAL ALIGNMENT: Not aligned.
FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The contractor/lessee of End Float Lease Agreement and Semi-Exclusive Shoreboat Franchise Agreement will be unclear as Catalina Coastal Tours, LLC is no longer an active business.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
2. First Amendment to the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
3. End Float Lease Agreement