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terminate this Lease, will be applied in the manner specified in Section 9.04 toward the replacement of such improvements with equivalent new improvements on the remaining portions of the Premises.
(4) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of the Premises taken by eminent domain where this Lease is terminated because of the taking by eminent domain, whether all or only a portion of the Premises is taken by eminent domain, will be allocated between CITY and TENANT as follows:
(a) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking, not expired will belong to and be the sole property of TENANT. (b) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking, expired will belong to and be the sole property of CITY. (c) The term "time of taking," as used in this Section, means 12:01 a.m. of the date the agency or entity exercising the eminent domain power, takes title to or the date it takes physical possession of the portion of the Premises, whichever first occurs. (5) Any severance damages awarded or payable because only a portion of the Premises is taken by eminent domain will be the sole and separate property of CITY.
Section 9.03 Termination for Partial Taking.
If, during the term of this Lease, title and possession of only a portion of the Premises is taken for any public or quasi-public use under any statute, or by right of eminent domain, then TENANT may, at TENANT'S option, terminate this Lease by serving written notice of termination on CITY within 90 days after TENANT has been deprived of actual physical possession of the portion of the Premises taken for such public use. This Lease will terminate on the first day of the calendar month following the calendar month in which the notice of termination described in this section is served on CITY. On termination of this Lease, pursuant to this Article, all subleases and subtenancies in or on the Premises or any portion of the Premises created by TENANT under this Lease will also terminate and the Premises must be delivered to CITY free and clear of all such subleases and subtenancies; provided, however, that CITY may, at CITY'S option, by mailing written notice to a subtenant allow any subtenant to attorn to CITY and continue such subtenant's occupancy on the Premises as a TENANT of CITY. On termination of this Lease pursuant to this section, however, both CITY and TENANT
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will be released from all obligations under this Lease, except those specified in Section 9.02 of this Lease.
Section 9.04 Rent Abatement for Partial Taking.
If, during the term of this Lease, title and possession of only a portion of the Premises is taken under the power of eminent domain by any public or quasi-public agency or entity and TENANT does not terminate this Lease, then this Lease will terminate as to the portion of the Premises taken under eminent domain on the date actual physical possession of the portion taken by eminent domain is taken by the agency or entity exercising the eminent domain power.
Furthermore, the Rent payable under this Lease will, as of that time be reduced in the same proportion of the Premises taken by eminent domain bears to the full value of the Premises at that time; provided however, that TENANT will make a good faith effort to replace any improvements or facilities with equivalent new facilities on the remaining portion of the Premises and do all other acts at TENANT'S own cost and expense required by the eminent domain taking to make the remaining portion of the Premises fit for the use specified in this Lease.
Section 9.05 Conveyance in Lieu of Eminent Domain.
A voluntary conveyance by CITY, with the consent of TENANT, of title to all or a portion of the Premises to a public or quasi-public agency or entity in lieu of and under threat by such agency or entity to take the same by eminent domain proceedings will be considered a taking of title to all or such portion of the Premises under the power of eminent domain subject to the provisions of this Article.
Section 9.06 Temporary Taking.
If the possession of the Premises or any portion thereof are taken under the power of eminent domain by any public or quasi-public agency or entity for a limited period not extending beyond the term of this Lease, then this Lease will not terminate (except as provided in this Section 9.06) and TENANT must continue to perform all its obligations hereunder, except only to the extent TENANT is prevented from performing such obligations by reason of such taking.
TENANT will be entitled to receive the entire amount of compensation or damages awarded because of such temporary taking. If a temporary taking extends for more than 36 months, then TENANT will have the right to terminate this Lease, and TENANT will be entitled to receive, out of the compensation or damages awarded because of such temporary taking, the amount that
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is attributable to the period of time up until the effective date of TENANT'S termination of this Lease.
Article 10 ASSIGNMENT AND SUBLEASING
Section 10.01 No Assignment Without CITY'S Consent.
Except as provided in this Article 10, TENANT must not assign or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Premises or any of the improvements that may now or hereafter be constructed or installed on the Premises without the express written consent of CITY first had and obtained. Any assignment or transfer by TENANT without the prior written consent of CITY, as evidenced by a resolution of the City Council, whether it be voluntary or involuntary, by operation of law or otherwise, is void and may, at the option of CITY, terminate this Lease. A consent by CITY to one assignment will not be deemed to be a consent to any subsequent assignment of this Lease by TENANT. CITY will not unreasonably nor arbitrarily withhold its approval to the assignment or transfer of this Lease to an assignee who is financially reliable and qualified to conduct the business for which this Lease was granted. It is mutually agreed TENANT'S qualifications are a part of the consideration for granting of this Lease and said party does hereby agree to maintain active control and supervision of the operation conducted on the Premises.
Section 10.02 Change of Ownership as Assignment.
For purposes of this Article 10, the following transactions will be deemed to be assignments or transfers:
(1) If TENANT is a partnership or limited liability company:
(a) A change in ownership effected voluntarily, involuntarily, or by operation of law, within a 12-month period, of 25 percent or more of the partners or members or 25 percent or more of the partnership or membership interests; or
(b) The dissolution of the partnership or limited liability company without its immediate reconstitution.
(2) If TENANT is a closely held corporation (i.e., one whose stock is not publicly held and not traded through an exchange or over the counter):
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(a) The sale or other transfer, within a 12-month period, of more than an aggregate of 25 percent of the voting shares of TENANT (other than to immediate family members by reason of gift or death); or
(b) The dissolution, merger, consolidation, or other reorganization of TENANT.
Section 10.03 Application for Assignment.
A condition of an assignment is TENANT must file with CITY an application to assign its leasehold interest prepared by the prospective assignee. Concurrently with filing the application, TENANT must pay a reasonable fee associated with the cost of processing said application, in cash or certified or cashier's check to enable CITY adequately to investigate the proposed assignee's qualifications, financial reliability and suitability as a permitted assignee.
CITY is not be required to account for the use of the sum paid. If the proposed assignee's net worth, financial reliability and qualifications on the date of assignment are not sufficient to reasonably guarantee successful operation of the Premises in compliance with all applicable CITY, County, State and federal requirements, then CITY may withhold approval of the assignment or condition it upon TENANT'S guarantee of such assignee's obligations hereunder for such period as CITY deems advisable. Net worth means the amount by which the total of all assets exceed the total of all liabilities as determined in accordance with general accepted accounting principles as approved by CITY'S auditor, or other authorized representative or agent.
Section 10.04 Probate Transfer of Assignment.
If TENANT is an individual, nothing herein contained will prevent the transfer of this Lease by trust, will, or by operation of law under the intestacy provisions of the California Probate Code as it may be amended from time to time. Probate sale of the leasehold interest will not be permitted without the consent of the CITY, evidenced by a City Council resolution, first had and obtained.
Section 10.05 No Sublease Without CITY'S Consent.
TENANT must not sublease the whole nor any part of the Premises, or license, permit, or otherwise allow any other person (the employees of TENANT excepted) to occupy or use the Premises, or any portion thereof, without the prior written consent of CITY’s Harbor Director, or any future successor to the duties of the City’s Harbor Director. The process for obtaining that consent will not begin until TENANT has filed an application to sublease and paid a reasonable fee, as determined by CITY, associated with the cost of processing the application. A consent to
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one subletting, occupation, licensing or use will not be deemed to be a consent to any subsequent subletting, occupation, licensing or use by another person. Any sublease or license without CITY'S written consent is void, and may, at CITY'S option, terminate this Lease. CITY will not unreasonably nor arbitrarily withhold its consent to sublet to one who is qualified and financially reliable. CITY'S consent to any occupation, use, or licensing will be in CITY'S sole and absolute discretion. Notwithstanding any provisions herein to the contrary, the terms "assignment," "subletting," "occupation," or "use," are not to be construed or interpreted to mean or include the temporary, short-term renting or leasing of boat slips, motel, hotel, or apartment accommodations, if any, on the Premises.
Section 10.06 Subtenant Subject to Lease Terms.
Any and all subleases must be expressly made subject to all the terms, covenants, and conditions of this Lease. In no event will the term of any sublease extend beyond the term of this Lease. Subject to Section 10.09, termination of this Lease prior to the expiration of this Lease term also terminates any and all subleases. A breach of the terms of this Lease by a subtenant constitutes a breach on the part of TENANT and subjects both the subtenant and TENANT to all the remedies provided to CITY herein and by law. Failure by any subtenant to report Gross Sales or to pay Percentage Rent due from subtenant constitutes a breach of this Lease. TENANT hereby agrees to and does guarantee payment of such Percentage Rent due by a subtenant under the terms of this lease.
Section 10.07 Consent to Sublease Agreement.
Prior to any consent by CITY to any sublease hereof, TENANT, CITY and any subtenant must have executed the CITY’S Consent to Sublease Agreement making CITY a third party beneficiary, whereby the subtenant agrees to be bound by all of the terms, covenants and conditions of this Lease. Further, it is agreed by TENANT any default by the subtenant of any of the terms, covenants and conditions of this Lease will be a violations by TENANT of this Lease and all remedies of CITY for such violation, including termination of this Lease, may immediately be enforceable by CITY against TENANT. TENANT must apply any and all monies received from any subtenant first to the payment of obligations of the subtenant to CITY.
Section 10.08 TENANT and Guarantor Remain Liable.
Prior to approval by CITY to any sublease hereof, TENANT must agree to be primarily and jointly and severally liable to CITY for all obligations due CITY by any subtenant, including the payment of rents; and TENANT must agree CITY may proceed directly against TENANT
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for any obligation owed to CITY by the subtenant. If this Lease is guaranteed, then neither the sublease nor CITY'S approval thereof will release the guarantor from its obligations pursuant to the guaranty.
Section 10.09 Nondisturbance.
On the terms set forth below, CITY may enter into agreements with subtenants establishing, in the event of any termination of this Lease prior to the expiration date, CITY will not terminate or otherwise disturb the rights of the subtenant under such sublease, but will instead honor such sublease as if that sublease had been entered into directly between CITY and such subtenant, conditioned upon such subtenant's agreement to attorn to CITY and full performance of all obligations under the sublease in question ("Non-Disturbance Agreement").
CITY agrees to execute a Non-Disturbance Agreement in connection with a particular sublease; provided, that Tenant provides CITY with a copy of the sublease, and the Non-Disturbance Agreement is customary in form and substance and otherwise reasonably acceptable to CITY.
Article 11 DEFAULT AND TERMINATION
Section 11.01 Abandonment by TENANT.
If TENANT breaches this Lease and abandon all or any part of the Premises prior to the scheduled expiration of the term of this Lease, then CITY may continue this Lease in effect by not terminating TENANT'S right to possession of the Premises, in which event CITY may, at its option, enforce all CITY'S rights and remedies under this Lease including the right to recover the Rent specified in this Lease as it becomes due under this Lease.
Section 11.02 Termination for Breach by TENANT.
All covenants and agreements contained in this Lease are declared to be conditions to this Lease and to the term hereby demised to TENANT. If TENANT fails to perform any covenant, condition, or agreement contained in this Lease, except for payment of any Rent or other monetary amount due, and such failure is not cured within 30 days after written notice thereof is served on TENANT, then CITY may terminate this Lease immediately, and in the event of such termination, TENANT will have no further rights hereunder and TENANT must thereupon forthwith remove from the Premises and will have no further right or claim thereto and CITY will immediately thereupon have the right to re-enter and take possession of the Premises, subject only to appropriate legal process.
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Section 11.03 Termination for Failure to Pay Rent.
If any payment of Rent is not made as herein provided and such failure to pay is not cured within three days after written notice thereof is served on the TENANT, then CITY will have the option to immediately terminate this Lease; and in the event of such termination, TENANT will have no further right or claim thereto and CITY will immediately thereupon have the right to re-enter and take possession of the Premises, subject only to appropriate legal process.
Section 11.04 Lender May Cure Default.
CITY hereby affords the lender under any Leasehold Encumbrance of record with CITY the right to cure any default by TENANT of the covenants, conditions, or agreements hereof, as provided in Article 5 of this Lease.
Section 11.05 Damages for Breach.
If TENANT defaults in the performance of any covenant, condition or agreement contained in this Lease and the default be incurable or not be cured within the time period set forth hereinabove, then CITY may terminate this Lease and:
(1) Bring an action to recover from TENANT:
(a) The worth at the time of award of the unpaid Rent which had been earned at the time of termination of the Lease;
(b) The worth at the time of award of the amount by which the unpaid Rent, which would have been earned after termination of the Lease until the time of award exceeds the amount of rental loss that TENANT proves could have been reasonably avoided; (c) The worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of rental loss that TENANT proves could be reasonably avoided; and
(d) Any other amount necessary to compensate CITY for all detriment proximately caused by TENANT'S failure to perform its obligations under this Lease; and (2) Bring an action, in addition to or in lieu of the action described in subparagraph (1) of this Section, to re-enter and regain possession of the Premises in the manner provided by the laws of unlawful detainer of the State of California then in effect.
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Section 11.06 Cumulative Remedies.
The remedies available to CITY in this Article are not exclusive, but are cumulative with and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this Lease.
Section 11.07 Waiver of Breach.
The waiver by CITY of any breach by TENANT of any of the provisions of this Lease does not constitute a continuing waiver or a waiver of any subsequent breach by TENANT either of the same or a different provision of this Lease.
Section 11.08 Surrender of Premises.
On expiration or sooner termination of this Lease, TENANT must surrender the Premises, and, subject to Section 4.04, all improvements in or on the Premises, and all facilities in any way appertaining to the Premises, to CITY in good, safe, and clean condition, reasonable wear and tear excepted.
Article 12 MISCELLANEOUS
Section 12.01 Notices.
Any and all notice or demands by or from CITY to TENANT, or TENANT to CITY, must be in writing. They must be served either personally, or by registered or certified mail.
Any notice or demand to CITY must be given to:
Harbor Director
1275 Embarcadero
Morro Bay, CA 93442
with a copy to:
City Manager of the City of Morro Bay
City Hall
595 Harbor Street
Morro Bay, CA 93442
Any notice or demand to TENANT must be given at:
[insert tenant information here]
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Such addresses may be changed by written notice by either Party to the other Party.
Section 12.02 Governing Law and Jurisdiction.
This Lease, and all matters relating to this Lease, are governed by the laws of the State of California in force at the time any need for interpretation of this Lease or any decision concerning this Lease arises. CITY and TENANT consent to exclusive personal and subject matter jurisdiction in the Superior Court of the State of California in and for the county where the Premises are located, and each Party waives any claim such court is not a convenient forum.
Each Party hereby specifically waives the provisions of California Code of Civil Procedure Section 394, and any successor statute thereto.
Section 12.03 Binding on Successors.
Subject to the provisions herein relating to assignment and subletting, each and all of the terms, conditions, and agreements herein contained will be binding upon and inure to the benefit of the successors and assigns of any and all of the Parties; and all of the Parties hereto are jointly and severally liable hereunder.
Section 12.04 Partial Invalidity.
If any provision of this Lease is held by a court of competent jurisdiction to be either invalid, void, or unenforceable, then the remaining provisions of this Lease will remain in full force and effect unimpaired by the holding.
Section 12.05 Sole and Only Agreement.
Subject to the provisions of the second paragraph of Section 1.04 (used only if second paragraph of that section is used), (i) this Lease, including all exhibits incorporated by reference, constitutes the sole and only agreement between CITY and TENANT respecting the Premises and the leasing of the Premises to TENANT and (ii) any other agreements or representations respecting the Premises and their leasing to TENANT by CITY, which are not expressly set forth in this Lease, are null and void. The lease terms herein specified correctly set forth the obligations of CITY and TENANT as of the date of this Lease.[NOTE: See 12.07] Section 12.06 Modification.
This Lease can only be modified, amended or altered pursuant to a written amendment executed by the Mayor and attested to by City Clerk, pursuant to prior City Council approval.
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Notwithstanding City Council approval, no amendment will become effective until it is in fact executed by the Mayor and attested to by City Clerk and approved as to form by the City Attorney (or designee). TENANT understands this Lease cannot be modified, amended or altered by oral statements by any person representing CITY, including the Mayor and City Clerk.
TENANT specifically agrees not to rely on oral statements, purported oral waivers, or purported oral modifications and agrees not to rely upon purported written modifications unless they meet the requirements of this Section. If the title of any person authorized to act for CITY under this Lease is changed during the term of this Lease, then the person who succeeds to substantially the same responsibilities with respect to CITY will have the authority to act for CITY under this Lease.
Section 12.07 Time of Essence.
Time is expressly declared to be the essence of this Lease.
Section 12.08 Memorandum of Lease for Recording.
CITY and TENANT agree, at the request of either at any time during the term of this Lease, to execute a Memorandum of Lease or "short form" of this Lease, which shall describe the Parties, set forth a description of the Premises, specify the term of this Lease, and incorporate this Lease by reference.
Section 12.09 Force Majeure.
If either Party hereto is delayed or hindered in or prevented from the performance of any act required hereunder by reason of a strike, lock-out, labor trouble, inability to procure materials, failure of power, governmental moratorium, riot, insurrection, war, pandemic or other reason of a like nature not the fault of the Party delaying in performing work or doing any act required under the terms of this Lease, then performance and doing of such act will be excused for the period of such delay. The Parties understand and agree, the foregoing will not extend any period of time for the payment of Rent or other sums payable by either Party or any period of time for the written exercise of an option or right by either Party.
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Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to this Lease site only:
Section 13.01 [reserved]
EXECUTED on ________________, 20___, at________________________ County, California.
CITY OF MORRO BAY TENANT
_________________________________
, MAYOR
By: ________________________________
By: ________________________________
ATTEST:
_________________________________
, CITY CLERK
APPROVED AS TO FORM:
_______________________________________
, CITY ATTORNEY
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EXHIBIT A
COPY OF PARCEL MAP
26 | P a g e
G. Forms
I. Sublease Approval Application
II. Consent to Sublease Agreement
III. Assignment and Assumption Approval Application
IV. Consent to Encumber Application
V. Lease Amendment Application
VI. Master Lease Agreement Application
VII. Insurance Requirements
(immediately following this page)
Exhibit G
City of Morro Bay
Harbor Department
1275 Embarcadero
Morro Bay, CA 93442
Phone: 805-772-6254
Fax: 805-772-6258
Fee:
Check #:
Date:
A P P L I C A T I O N
FOR SUBLEASE APPROVAL TO A LEASE SITE.
To be completed and returned to the Harbor Office for processing. Please print or type.
Lease Site Number Physical Address with Sublease Suite # Proposed Sublease Date Current Master Tenant Name Subtenant Name
Business/Corporation Name Business/Corporation Name
Mailing Address Mailing Address
City, State Zip City, State Zip
Telephone / Email Address Telephone / Email Address
Current Master Tenant Name Subtenant Name
Business/Corporation Name Business/Corporation Name
Mailing Address Mailing Address
City, State Zip City, State Zip
Telephone / Email Address Telephone / Email Address
Master Tenant/Representative Signature Date
Master Tenant/Representative Signature Date
Subtenant’s Signature Date
Subtenant’s Signature Date
SEE REVERSE
CHECKLIST FOR SUBMITTAL REQUIREMENTS
(Attach applicable documents to this application)
Consent to sublease application fee (see current fee schedule) - Administrative approval Copy of executed lease between Tenant and Subtenant.
City’s consent to sublease agreement signed by Tenant and Subtenant.
Subtenant’s statement of qualifications, experience and proposed operation for lease site.
Subtenant’s proof of business license.
Subtenant’s proof of general liability insurance with endorsement, effective date of consent.
Tenant in good standing.
For Department Use Only – City Department Review and Approval Finance Director:
By: _
City Attorney:
By: _
Harbor Director:
By: _
Date:
Date:
Date:
Approved Denied
Approved Denied
Approved Denied
City Council Schedule Date: City Council Approved Date:
Comments/Notes:
01181.0024/226930.1
CONSENT TO SUBLEASE AGREEMENT
THIS CONSENT TO SUBLEASE AGREEMENT is entered into this _______day of _________________, by and between , hereinafter
referred to as TENANT, and ,
dba, hereinafter referred to as SUBTENANT and
approved by the City of Morro Bay, California, hereinafter referred to as CITY.
RECITALS
WHEREAS, a Master Lease was executed on for the
premises known as Lease Site and;
WHEREAS, TENANT desires to sublease a portion of the premises to SUBTENANT, and:
WHEREAS, the Master Lease requires CITY consent of any sublease in the following form of agreement.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. TENANT and SUBTENANT jointly and severally guaranty TENANT will pay to City all of the sums required of TENANT and any sums due by reason of SUBTENANT's activities under the terms of the Master Lease dated hereinafter known as "Master Lease". In the event TENANT fails to make such payment, SUBTENANT agrees to promptly make such payment to CITY for TENANT. Failure to pay the rent shall constitute a violation of the Master Lease and CITY shall, after three (3) days written notice to TENANT, have the following options:
(a) CITY may elect to pursue all legal remedies against TENANT alone or against both TENANT and SUBTENANT or against SUBTENANT alone. CITY'S election to pursue one instead of both of the parties shall not preclude a later action against the other party to recover any amounts not paid and both TENANT and SUBTENANT agree that they are to be jointly and severally liable for any breach by the SUBTENANT. (b) CITY shall have all other legal remedies provided for in the lease and allowed by law, including the right to bring an action for unlawful detainer against SUBTENANT, TENANT or both for non-payment of rent by TENANT of SUBTENANT'S portion of rent due to CITY.
2. SUBTENANT acknowledges receipt of a complete copy of the Master Lease and all amendments thereto and specifically agrees to comply with each and all of the terms and conditions of the Master Lease. TENANT guarantees SUBTENANT's compliance with each and all of the terms and conditions of the Master Lease, as each pertains to the portion of the Lease Site subject to the subject sublease (attached as Exhibit A hereto) (the “Sublease”), and all of the parties agree a violation by SUBTENANT of the terms of the Master Lease, as each pertains to the portion of the Lease Site subject to the sublease, shall constitute a violation of the Master Lease by TENANT. TENANT agrees to take whatever action is required to secure SUBTENANT's compliance with each and all of the terms of the Master Lease, and agrees to indemnify CITY, as Landlord, from any and all claims, loss, cost or expense resulting from SUBTENANT's failure to comply with the terms of the Master Lease.
3. The initial term of the Sublease shall be ___________ years, commencing upon execution of the Sublease; provided, that TENANT may extend the term of the Sublease with the SUBTENANT without obtaining a new Consent to Sublease Agreement from CITY’s City Council under the following conditions: (1) Tenant receives prior written authorization from the Harbor Director to extend the term of the Sublease, (2) the extended term of the Sublease does not exceed the term of the Master Lease, (3) the extended Sublease shall not modify any other terms of the Master lease or the Sublease, except its term, (4) TENANT provides CITY with a fully executed copy of the extended Sublease within five business days after the extended Sublease has been fully executed. The extended Sublease shall be added to Exhibit “A” of this Consent to Sublease Agreement. The Harbor Director’s authorization of any extension in the term of the Sublease does not serve to waive any rights of CITY set forth in the Master Lease or in this Consent to Sublease Agreement, including any claims for breach of the Master Lease or of this Consent to Sublease Agreement. The Sublease shall, in all events, terminate upon termination of the Master Lease for any reason, including, but not limited to, a termination which occurs as a result of court judgment.
4. Pursuant to the provision in the Master Lease requiring TENANT to pay rental based on percentage of gross sales, SUBTENANT agrees to and shall keep full, complete, and accurate records, and books of account in accordance with accepted accounting practices as showing the total amount of gross sales, as defined in the Master Lease, made each calendar month in, on or from the subleased premises. SUBTENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Said records, books of account and all cash register tapes, including any sales tax reports that SUBTENANT may be required to furnish any government or governmental agency, including but not limited to those items listed in Exhibit B attached hereto and incorporated herein, shall at all reasonable times be open to the inspection of TENANT, CITY, CITY'S auditor, or other authorized representative or agent of TENANT or CITY.
5. The proposed use by SUBTENANT is as follows:
Percentage of Gross Rental Applicable to Permitted Use: _____________________________ Said designated use shall not be changed without the prior written consent of CITY.
SUBTENANT acknowledges that the percentage of gross payment required for the proposed use under the terms of the Master Lease is as set forth hereinabove. SUBTENANT agrees that any use by SUBTENANT of the subleased premises for a purpose other than that specified in this paragraph, whether or not permitted under the terms of the Master Lease, shall constitute an unauthorized use subject to those penalties set forth in the Master Lease. The location and size of the proposed use shall not be altered without the prior written consent of the CITY.
Specifically, and in addition to any other terms and provisions of the lease, all parties agree that if SUBTENANT makes a use of the subleased premises which is not included within or permitted under the terms of the Master Lease, TENANT shall be liable for and shall pay to CITY, 10% of the gross revenue from such unpermitted use.
6. SUBTENANT shall not alter or improve the premises or any part thereof without first obtaining the prior written consent of CITY.
7. SUBTENANT agrees to submit a statement of previous business experience and agrees to submit current personal and business financial statements upon request and further agrees too submit such documents as part of the CITY's consideration of the consent to Sublease Agreement. SUBTENANT shall not assign, mortgage, or encumber the subleased premises in whole or in part without the prior written consent of CITY.
01181.0024/226930.1
8. Unless SUBTENANT is included as an additional insured under the terms of TENANT's liability insurance, SUBTENANT agrees to maintain adequate liability insurance in the manner and form required under the Master Lease in an amount of not less than $1,000,000 per occurrence and agrees to name the CITY OF MORRO BAY as an additional primary insured without offset against the CITY's insurance. SUBTENANT agrees to provide the certificates of insurance and copies of the actual insurance policies to the CITY as required under the Master Lease and otherwise comply with the insurance requirements set forth in the Master Lease. CITY reserves the right to require reasonable increases in the liability insurance coverage from time to time.
9. SUBTENANT and TENANT agree to indemnify and save CITY free and harmless from and against any and all claims, including reasonable attorney's fees and court costs arising from SUBTENANT's failure to comply with any of the terms of this Consent and Sublease Agreement.
10. This Agreement cannot be modified except by a written document mutually approved by the parties hereto. A waiver of any of the conditions or terms of this Consent or of the Master Lease shall not constitute a waiver of any future breach of any terms or conditions of this Consent or the Master Lease.
11. To the extent that the terms of the proposed Sublease are inconsistent with the terms of this Agreement or Master Lease with the CITY OF MORRO BAY, this Agreement or Master Lease shall supersede and be the controlling document. To the extent that this Consent to Sublease Agreement is inconsistent with the terms of the Master Lease, the Master Lease shall supersede and be the controlling document.
IN WITNESS WHEREOF, the parties hereto have executed this Consent to Sublease Agreement as of the day and year first above written at Morro Bay, California.
TENANT: SUBTENANT:
CITY OF MORRO BAY:
Eric Endersby, Harbor Director
EXHIBIT "B"
CONSENT TO SUBLEASE AGREEMENT
At a minimum, certain books and records shall be kept by TENANT and SUBTENANT such as:
1. Pre-numbered and dated guest checks;
2. Pre-numbered sales invoices or daily cash register tapes;
3. Bank Statements;
4. Sales Tax Returns;
5. Sales Journals;
6. Cash Disbursement Journals; and
7. General Ledger
Exhibit G
SEE REVERSE
City of Morro Bay
Harbor Department
1275 Embarcadero
Morro Bay, CA 93442
Phone: 805-772-6254
Fax: 805-772-6258
Fee:
Check #:
Date:
A P P L I C A T I O N
FOR ASSIGNMENT OF A CITY MASTER LEASE AGREEMENT
To be completed and returned to the Harbor Office for processing. Please print or type.
Lease Site Number Physical Address Proposed Assignment Date Current Master Tenant Name Assignee Name
Business/Corporation Name Business/Corporation Name
Mailing Address Mailing Address
City, State Zip City, State Zip
Telephone / Email Address Telephone / Email Address
Current Master Tenant Name Assignee Name
Business/Corporation Name Business/Corporation Name
Mailing Address Mailing Address
City, State Zip City, State Zip
Telephone / Email Address Telephone / Email Address
Master Tenant/Representative Signature Date
Master Tenant/Representative Signature Date
Assignee’s Signature Date
Assignee’s Signature Date
CHECKLIST FOR SUBMITTAL REQUIREMENTS
(Attach applicable documents to this application)
Assignment application fee. (see current fee schedule)
Assignee’s statement of qualifications, experience and proposed operation for lease site.
Assignee’s current credit report with credit score rating, and; financial report.
Assignee’s proof of business license.
Assignee’s proof of general liability insurance with endorsement, effective date of assignment.
Master Tenant in good standing.
For Department Use Only – City Department Review and Approval Finance Director:
By: ___________________________________ Date: __________ Approved Denied City Attorney:
By: ___________________________________ Date: __________ Approved Denied Harbor Director:
By: ___________________________________ Date: __________ Approved Denied City Council Schedule Date: City Council Approved Date:
Comments/Notes:
Exhibit G
SEE REVERSE
City of Morro Bay
Harbor Department
1275 Embarcadero
Morro Bay, CA 93442
Phone: 805-772-6254
Fax: 805-772-6258
Fee:
Check #:
Date:
A P P L I C A T I O N
FOR CONSENT TO ENCUMBER OF A CITY MASTER LEASE AGREEMENT To be completed and returned to the Harbor Office for processing. Please print or type.
Lease Site Number Physical Address Proposed Amendment Date Current Master Tenant Name
Business/Corporation Name
Mailing Address
City, State Zip
Telephone / Email Address
Lender
Business/Corporation Name
Mailing Address
City, State Zip
Telephone / Email Address
Loan Amount
Master Tenant/Representative Signature Date
CHECKLIST FOR SUBMITTAL REQUIREMENTS
(Attach applicable documents to this application)
Consent to Encumber application fee. (See current fee schedule) Tenant’s statement of proposed Encumbrance for lease agreement.
Lender’s Deed of Trust.
Master Tenant in good standing.
For Department Use Only – City Department Review and Approval Finance Director:
By: ___________________________________ Date: __________ Approved Denied City Attorney:
By: ___________________________________ Date: __________ Approved Denied Harbor Director:
By: ___________________________________ Date: __________ Approved Denied City Council Schedule Date: City Council Approved Date:
Comments/Notes:
Exhibit G
SEE REVERSE
City of Morro Bay
Harbor Department
1275 Embarcadero
Morro Bay, CA 93442
Phone: 805-772-6254
Fax: 805-772-6258
Fee:
Check #:
Date:
A P P L I C A T I O N
FOR ADMENDMENT OF A CITY MASTER LEASE AGREEMENT
To be completed and returned to the Harbor Office for processing. Please print or type.
Lease Site Number Physical Address Proposed Amendment Date Current Master Tenant Name
Business/Corporation Name
Mailing Address
City, State Zip
Telephone / Email Address
Current Master Tenant Name
Business/Corporation Name
Mailing Address
City, State Zip
Telephone / Email Address
Master Tenant/Representative Signature Date
Master Tenant/Representative Signature Date
CHECKLIST FOR SUBMITTAL REQUIREMENTS
(Attach applicable documents to this application)
Amendment application fee. (See current fee schedule)
Tenant’s statement of proposed amendment for lease agreement.
Master Tenant in good standing.
For Department Use Only – City Department Review and Approval Finance Director:
By: ___________________________________ Date: __________ Approved Denied City Attorney:
By: ___________________________________ Date: __________ Approved Denied Harbor Director:
By: ___________________________________ Date: __________ Approved Denied City Council Schedule Date: City Council Approved Date:
Comments/Notes:
Exhibit G
SEE REVERSE
City of Morro Bay
Harbor Department
1275 Embarcadero
Morro Bay, CA 93442
Phone: 805-772-6254
Fax: 805-772-6258
Fee:
Check #:
Date:
A P P L I C A T I O N
FOR A CITY MASTER LEASE AGREEMENT
To be completed and returned to the Harbor Office for processing. Please print or type.
Lease Site Number Physical Address Proposed Lease Date
Master Tenant Name
Business/Corporation Name
Mailing Address
City, State Zip
Telephone / Email Address
Master Tenant Name
Business/Corporation Name
Mailing Address
City, State Zip
Telephone / Email Address
Master Tenant/Representative Signature Date
Master Tenant/Representative Signature Date
CHECKLIST FOR SUBMITTAL REQUIREMENTS
(Attach applicable documents to this application)
Master lease application fee. (See current fee schedule) Tenant’s proposed lease agreement.
Tenant’s statement of qualifications, experience and proposed operation for lease site.
Tenant’s current credit report with credit score rating, and; financial report.
Tenant’s proof of business license.
Tenant’s proof of general liability insurance with endorsement, effective date of lease.
Master Tenant in compliance with all terms of existing lease agreement.
For Department Use Only – City Department Review and Approval Finance Director:
By: ___________________________________ Date: __________ Approved Denied City Attorney:
By: ___________________________________ Date: __________ Approved Denied Harbor Director:
By: ___________________________________ Date: __________ Approved Denied City Council Schedule Date: City Council Approved Date:
Comments/Notes:
City of Morro Bay
Insurance Requirements for Lessees
Updated: 1/6/17
Spec C 1
CITY OF MORRO BAY
595 Harbor St.
Morro Bay, CA 93442
(805) 772-6200
FAX (805) 772-7329
INSURANCE REQUIREMENTS FOR LESSEES
Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee’s operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance (for lessees with employees).
3. Property insurance against all risks of loss to any tenant improvements or betterments.
4. Insurance Services Office Form Number C A 0001 covering Automobile Liability, code 1 (any auto).
Minimum Limits of Insurance
Lessee shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial
General Liability Insurance or other form with a
general aggregate limit is used, either the general
aggregate limit shall apply separately to this
project/location or the general aggregate limit shall be twice the required occurrence limit.
2. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
3. Property Insurance: Full replacement cost with no coinsurance penalty provision.
Deductibles and Self-Insured Retentions
Exhibit G
City of Morro Bay
Insurance Requirements for Lessees
Updated: 1/6/17
Spec C 2
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability policy is to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of ownership, maintenance or use of that part of the premises leased to the Lessee.
2. The Lessee’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Lessee’s insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City.
4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of section 2782 of the Civil Code.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII.
Verification of Coverage
Lessee shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City’s forms, provided those endorsements or policies conform to the requirements.
All certificates and endorsements are to be received and approved by the City before use of City premises. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
Sub-lessee
Lessee shall include all sub-lessees as insureds under its policies or shall furnish separate certificates and endorsements for each sub-lessee. All coverages for sub-lessees shall be subject to all the requirements stated herein.
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H. Lease Site Inspection Checklists
(immediately following this page and end of document)
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Exhibit H
PAGE 1 OF 2
LEASE SITE INSPECTION CHECKLISTS
Annual
Building and Site Exteriors
General building condition, cleanliness.
Condition and cleanliness of walkways, curbs, hardscaping, features.
Landscaping trimmed, cleaned and weeded.
Walkways clear with no obstructions, including trip, slip and fall hazards.
Trash, storage areas neat, clean and secured.
Informational and warning signage in-place, current and legible.
Address and building identification clear.
Lighting operation.
Condition and presence of cover plates, grates, mechanical protection.
Condition of stairs, railings and handrails.
Proper implementation of needed pest control measures.
Access to electrical panels, service centers.
Condition of under-wharf/pier plumbing and electrical.
Building Interiors
Suites/Units clearly identified.
Condition of tenant finish items, walls, floors, ceilings.
Pathways clear with no obstructions, including trip, slip and fall hazards.
Restrooms clean and stocked.
Lighting operation.
Adequate housekeeping and trash removal.
Presence of fire extinguishers, current inspection tags.
Exit signs in place.
Access to circuit breaker and electrical panels.
Elevators and lifts serviceable, currently inspected.
Slips/Docks/Piers/Wharves
General condition of gangways, head floats, fingers, decking.
Docks clear with no obstructions and minimally-stored items.
No hazardous materials present.
No open flame devices allowed on slips, docks, piers or wharves at any time.
Power pedestals and shore power cords adequate and legal.
Cleats, pile rings, dock hardware adequate and serviceable.
Vessel tie-up lines adequate and serviceable.
Lighting operation.
Administrative
Site/Operation in compliance with applicable Conditional Use, Minor Use, Temporary Use and Coastal Development permits.
Site in compliance with applicable sign permit.
Exhibit H
PAGE 2 OF 2
Every Five Years
Building and Site Exteriors
Annual inspection items, in addition to:
Evidence of termites, rain leakage.
Check roof and rain gutters.
Operation and integrity of irrigation systems.
Condition, integrity of roof vents, appurtenances.
Building Interiors
Annual inspection items, in addition to:
Check attic, basement areas.
Inspect circuit breaker and electrical panels for condition, issues.
Condition, operation of HVAC systems, filter replacement.
Water heater and exposed plumbing for condition, leakage.
Janitor, electrical and service closets clean and free of clutter.
Operation of exit/emergency signs and lighting.
Slips/Docks/Piers/Wharves
Annual inspection items, in addition to:
Operation, integrity and code-compliance of electrical systems Administrative
Annual inspection items, in addition to:
Current Health Department certificate for food service establishments.
Current ABC licenses for alcohol-serving establishments.
Evidence of periodic grease trap servicing.
Evidence of structural inspection, evaluation or survey of seawalls, revetments, piers, pilings, slips, docks, wharves, structures and other water lease improvements
HAB & CFAC AD-HOC
REVIEW OF
EMBARCADERO MASTER
LEASE TERMS &
CONDITIONS
January 3, 2024
ABSTRACT
The Harbor Advisory Board and Citizen Finance
Advisory Committee Ad-Hoc to review Embarcadero
Master Lease Terms & Conditions
Lease Review Ad Hoc Harbor Committee
Cal Myers, Stephen Peck, Mary Witkowski, Michael
Erin Woody
SCOPE OF WORK
At the August 22nd, 2023 Morro Bay City Council meeting, agenda item A-6 was approved to form a joint AdHoc committee from both the Harbor Advisory Board (HAB) and Citizen Finance Advisory Committee to review the current Leasing policy. The objective is to. conducted an investigation and analysis in order to provide recommendations for potential improvements to the Tidelands Trust waterfront leases. These recommendations could be used for upcoming lease negotiations in early 2024 and beyond.
The copy of the staff report from the City Council agenda is provided below. It was approved as part of the consent agenda as was not discussed during that council meeting. The items that were to be addressed by the Ad Hoc committee that were identified in the staff report included: 1) Review of the current lease management policy; 2) review of the current approved master lease agreements; 3) review of the current lease negotiation process; 4) identification of specific area that could improve the financial benefit to the City, including, but not limited to market rates; and, 5) quantification of potential improvements to annual rent earned; and, specific options for Council consideration.
RECOMMENDATIONS
These recommendations cover a “global” recommendation on the leasing approach, and the three items identified by the city staff as of immediate concern. As stated in later sections of this document, there were other topics the Ad-Hoc Committee believes should be explored in order to fully “stand by” any recommendation but that would take considerable additional time. The Ad Hoc Committee believes that all of the issues identified by Council should be evaluated so that Council can have a thorough and complete assessment of its options to effectively manage and may be outside the area of expertise of the committee.
Based on the work done to date the following recommendations are being put forward in the context of upcoming lease negotiations over the next 24 months.
Since these leases are multi decades long, any changes will take considerable time to implement for all lease holders, but there may be some opportunities to allow existing lease holders to convert to the newer approach, if accepted by the Harbor Department and City Council.
The overall recommendations are put forward with these goals:
1. Make the leasing process more transparent and reduce compliance costs
2. Long term improvement the economic vitality of the entire Embarcadero Economic Zone
3. Improve the predictability of the revenue stream from the Embarcadero leases Simplify the Rent Terms
The Ad-Hoc has a “global” recommendation to simplify the lease provisions by just having a simple to understand base rent as the preferred lease model. The base rent should be calculated at the beginning of the lease agreement, tied to an annual adjustment such as the Consumer Price Index (CPI). The appraisal would be completed at marketing and solicitation stage, and the basis for the rent established. The common approach for other properties is tied to a percentage of the assessed land value. The lease factor should be set to 12% of the appraised value. This compares to the 9% lease factor used by the State Land Commission, and the 9.71% lease factor from existing Minimum Rents on City leases (lease factor is 14.8% when percentage rents are added to the total). Re-appraisals would only under very specific/rare conditioins and rent increases would be subject to a CPI increased with an annual cap on such increases. By comparison, the lease factor/return on a high-quality commercial ground lease is approximately 6%.
This approach will greatly simplify rent collection and lease negotiations. City staff have expressed that there isn’t the staff or financial capacity to perform the recurring appraisals, and to monitor and enforce the lease terms. The City’s percentage rent lease provisions are the most complex of any surveyed on the California Coast. Also, fewer than half of the City’s lease properties generate adequate business activity to create percentage rents, so the other half are performing at the 8% return rate specified in lease documents. The
re-appraisal should only occur if there is any reason to believe that the value of the property has significantly changed, such as pulling building permits for a renovation, change of lease holder or other external event that would materially impact the value of the property.
The “percent rent” concept that is currently used is beneficial to the City in good years and beneficial to the leaseholders in bad years, but it also leads to ups and downs in actual revenue to the Harbor Department and the City. The current approach also results in adjacent properties paying substantially different rents even though the location of the ground that each is leasing is essentially identical. Percentage rents may be appropriate for selected large users, but not as the preferred leasing format. Percentage rents are also problematic for a government entity. In general, the city enjoys businesses that do well in that they collect various taxes and fees via the economic activity that the business produces. Also, the ability to accurately calculate the percent rent creates a significant compliance cost for the city and the businesses. The City’s existing percentage rent categories are not mutually exclusive and are overlapping. They also do not correspond to standard business report on business activity (SBE sales tax reporting; TOT payments).
Further, there is no public report (sales tax report, income tax report, TOT report) that enables the City to quickly and efficiently verify reported sales volumes in each percentage rent category. The base vs percent rent allows a business to fall back on a smaller rent amount and “share the wealth” when/once/if they are successful. If the city wants to provide relief to individual lease holders that are in economic distress, they can do that publicly when such set of circumstances warrant it. For this project to work, there would probably need to be a stepped phase-in to the full 12% payment over the initial lease-up of the project and during construction.
Update the Appraisal Process
Since the base rent will be solely determined by the appraised value this process will be much more important for all the parties involved. As of November 2023, the Harbor Department is looking to obtain a new appraiser as the past one has retired and is no longer in business.
Since the properties are somewhat unique in the state a “fair market value” is hard to come by. There is no property along the waterfront that has sold in the past 20 years (although there are few), and current and previous appraisals have relied on the value of properties mostly outside of the waterfront area that of questionable comparability.
The current few appraisals that were made available to the Ad Hoc Committee use “comps” that do not have the locational attributes of the waterfront properties. Typically, “comps” (comparable sales) are used to determine the value of a property, for example home or commercial properties. It is recommended that any new appraiser look at both the income approach (“revenue generating capacity”) of the land to determine its base rent as well as comparable sales (with adjustments). This is the same approach that the State Lands
Commission uses for its appraisals of the properties that it manages. This approach should consider any constraints on the property such as “Measure D”, “historic buildings” or other characteristics put on revenue generation capability the property, as well as unique locational attributes such as visibility, approved buildable area, approved seating capacity, and structural improvements that are part of the lease.
Convert Existing Leases
If possible, all current lease holders should be provided with an opportunity to convert their existing lease to this newer approach. As this newer approach there will be winners and losers and it is expected that lease holders that have low base rent and minimal revenue generation capability, they will be least likely to convert. Some lease holders that pay more in percent rent may want to convert as it could reduce their overall rent amount. As such any changes will always incur some short-term cost.
City Short Term Questions
The City has posed several questions to assist in its current lease negotiation efforts. The following are the Ad Hoc Committee’s responses to those questions given the above:
What are the optimum percentage rent categories, classifications, and rates? The Committee recommends that the City not use the current percentage rent structure except in unique circumstances. These circumstances may include the size and scale of the project (multi-site development), phasing needs, etc.
The Ad Hoc Committee is not aware of the revenue from the various categories of percentage rent and cannot opine on the optimum percentages in each of the current categories. Given that the City does not have the capacity to monitor or enforce the level of detail specified in the City’s current lease policy, this question is somewhat academic and moot. In the case where a percentage rent provision is used, there should be one percentage for all commercial activity and tied to an existing report. For example, the percentage rent for all retail, restaurant, etc. would be “5% of all taxable retail sales” and/or “5% of all reported income subject to the City’s transient occupancy tax”. In the case of water facility revenue, this would be “10% of all slip fees, ticket sales, dock fees, and other rentals”.
Should the lease terms be nailed down during the negotiations on the interim lease (I.e., no items to be “negotiated later”)? Yes.
Is 8% the right lease factor to use? No. The State Lands Commission currently uses a 9% as its “all-in” lease rate (no percentage rent on top of it). The Ad Hoc Committee recommends a 12% “all-in” lease factor and the elimination of percentage leases except in special circumstances. This rate is believed to be comparable
to what an average, fully stabilized waterfront lease will generate under the current Minimum + Percentage Rent approach. It is possible that gross rent in certain years will be lower, but there will no longer be a need for staff inspections, analysis, enforcement and the 10 appraisals each year (50 lease sites and re-appraised every 5 years).
METHODOLOGY
The members of the Ad-Hoc were selected via the Harbor Director working directly with the chairperson for each committee. The Ad-Hoc met with the Harbor Director to confirm scope and provide initial background information. The Ad-Hoc then met to determine what information would be needed to deliver the goals requested goals of the committee.
During the initial literature review, the committee identified several additional references it believed were necessary to review and identify opportunities for improvement. These included:
Adequacy of the Harbor Department’s capital budget to maintain the harbor infrastructure. What items should the Harbor enterprise fund (aka the Harbor Budget) actually “pays for”, such as Capital Expense vs Operating Expenses.
The complexity of standard provisions of the master lease, and the capacity of staff and the costs to implement the negotiated terms and conditions for such things as re-appraisals, percentage rent, appropriate categorization of revenues, and other factors. Existing leases and terms, and appraisals to adequately determine longer term revenue projection from the existing leases, and what kinds of leases and uses have been and will generate better returns for the City.
Appropriateness of lease terms, lease factors and percentage rent categories used by other agencies.
Need to have lease negotiation be conducted via closed session city council meetings, and to market the leasing opportunities in a more effective way.
The committee believes that all these topics are essential to address the topics that were identified in the staff report. However, staff indicated that there were several focused topics that it would prefer to be addressed first, because of current and pending lease negotiations. Addressing all of the topics would take much longer to research. The topics identified by the staff and which are specifically addressed in this report include: 1) what are the optimum percentage rent categories, classifications, and rates; 2) should the lease terms be nailed down during the negotiations on the interim lease (I.e., no items to be “negotiated later”); and, 3) is 8% the right lease factor to use, and should there be re-appraisals every five years? Ideally the City Council will revisit the balance of the items and put them forward to investigate further.
The following public information and data was provided to the Ad-Hoc Committee for its deliberations :
Current lease policy and template lease contract
Minimum rent for each lease site and rolled up percent rent revenue numbers for FY2023 Assessed value for each l leased property as of FY2023 Copies of the majority of lease documents
Since the Embarcadero Master Lease holders are mostly local and long-time citizens of Morro Bay, the AdHoc committee spoke informally to several lease holders to get their insight to their perspective of the current lease policy along with their own perspective. The Ad-Hoc also reached out the California State Land Commission and several other local government entities that manage and lease waterfront properties similar to Morro Bay. The Ad-Hoc also worked directly with the Morro Bay Harbor Department to find out what their pain points are for managing the lease properties.
REVENUE ANALYSIS
Based on the information provided to the Ad-hoc the Tidelands Trust has 40 active waterfront leases that contributed $2.3M of revenue in FY22/23 and are projected to generate $2.4M in FY 23/24. This revenue accounts for approximately 3% of The City of Morro Bay’s total $70M in revenue.
Of the $2.3M approximately $1.4M comes from Base Rent another $0.7M from Percent rent with the remainder from miscellaneous revenue.
Base Rent
Base rent is current calculated as 8% of the land value, which does not include any of the buildings. The city hires an independent appraiser who provides this information to both the lease holder and the Harbor Department. This base rent is collected monthly throughout the year.
The base rent is currently adjusted annually based on the CPI index. Based on the current lease policy an updated appraisal can be obtained to reset the base rent every 5 years. The policy also contains language that attempts to move the base rent closer to percent rent amount (see percent rent section below) in order to minimize the amount of the variance between the two amounts. Other then the CPI index adjustment the other two adjustments are not widely applied, based on the information provide to the Ad-Hoc.
Based the limited amount of information provided the appraised value of the land appears to vary widely, with some properties to be significantly undervalued. Since the ad-hoc considered this out of scope for this study, it took the values provided as accurate at the time of the appraisal. As noted elsewhere in this report the Harbor Departing is looking for anew provider for this service.
Percent Rents
It is noteworthy that nearly 30% of the Tidelands Trust revenue is variable each year. This percent rent is due on an annual basis in July of each year, where the leaseholders “square up”. The leaseholder will pay the greater of the base rent or percent rent based on type of sales and negotiated percentages. Based on the 2020 lease policy the following percent amounts are based on the type of businesses, but each lease will have their own rates. The table below is the update from the 2020 update and the suggested percentages have been updated over time and can be a topic of negotiation.
Sales % Gross
Food Service: Restaurant 5
Snack Bar, Delicatessen 7
Fast Food / Convenience Food 7
Bar / Lounge, Beer & Wine Sales 10
Retail Sales Tenant 7
Sublease 7
Fish & Seafood Retail Sales 5
Wholesale Sales 0.5
Mooring, Ties & Slips Pier / Fixed Piles 20
Pier / Floating 20
Boat Repair & Sales Boat & Marine Repair 5
New & Used Boat Sales 2
Fuel Gasoline $0.02/gal.
Deisel $0.015/gal.
Hotel/Motel 10
RV Park 25
All Other Uses 10
Percentage Rent is to be based on the gross amount received from any and all sources of income derived from the lease site.
Revenue distribution
The percent rent by leaseholder was not provided as it is considered business confidential by the individual lease holders. The ad-hoc did do some analysis based on lease terms and their local knowledge of the businesses in each of the lease sites and have speculated that approximately 30% of the lease holders produce enough revenue to generate enough sales to pay beyond their base rent amount.
Since the concept of Minium + Percent rent is that the minimum or base rent is only during times of distress, this would imply that nearly 2/3 of the lease holders have marginal businesses. The Ad-Hoc doesn’t necessarily believe this to be wholly correct, but leases that have very low appraisal values and only pay the minimum rent should be a candidate for more scrutiny.
FINAL THOUGHTS
As the community sees the Morro Bay Harbor as the crown jewels of Morro Bay this Ad-Hoc wants to ensure they have adequate funding to continue to operate and maintain the harbor. The Embarcadero Lease Holder are the primary funding source for the Harbor Department. Any opportunity to improve the revenue from the Tideland Trust has to balanced against all the stakeholders. Obviously, the lease holders will be impacted, but also the entire community. The Embarcadero is a significant part of the tourism industry revenue that the entire city depends on. The City Council needs to provide a vision for what the Embarcadero should evolve into overtime with input from the community. Current and future Embarcadero Lease Holder can then be empowered to build out that vision and continue to contribute to the community.
The City needs to continue to invest to maintain and improve the infrastructure that supports the harbor, including piers, docks, boat ramp, sea walls, revetments, etc.
The changes recommended in this document focused on simplifying the rent calculations. Although the lease current policy is common in the commercial world, but in the opinion of the Ad-Hoc it hasn’t served the city well. The environment and incentives in the commercial world are very different than what exists in Morro Bay. Any opportunity to simplify doing business with Morro Bay should be welcomed.
Lastly the changes if implemented do not address the long-term capital needs of the Morro Bay Harbor. As there has been a chronic under investment in that infrastructure it cannot be financed only via the lease holders.
Memorandum
TO: Ted Schiafone
FROM: Embarcadero Master Leaseholders, LLC
DATE: April 16th, 2024
RE: Recommendations from Lease Policy Ad Hoc Committee
Thank you for taking the time to meet with members of the Embarcadero Master Leaseholders, LLC for discussion on recommendations to the City Council on changes to the City’s Lease Policy.
One comment that you made stands out as a very important element of the Lease Policy that we believe needs to be emphasized to the City Council and the City staff. A key purpose of the Lease Policy is to assure potential investors, as well as lenders to those investors, of the City’s commitment to stable management policies in their negotiations and management of the Tidelands leaseholds. The investment needed to develop and redevelop the City’s assets comes from private investment sources and from those investor’s ability to secure financing from private institutional banks and other private investment sources. Both the investor and the finance institutions need assurance in the stability of the management of: A. the particular property that they are investing in, and B. the stability of the rest of the City’s assets among which their property will operate and compete.
You asked that the EML comment on the following issues:
a. Appraiser. You mentioned that the appraiser historically used by the City has retired, and that you have selected a new appraiser. You mentioned you would like the new appraiser to use comparable (waterfront) properties that are more ‘like for like’ - as compared to Morro Bay and other inland commercial properties. We expressed our belief that this will require going out of the area of Morro Bay to find qualified comparables. Further, It seems to the EML that out of area comparables should be adjusted as necessary for the particular cases of Morro Bay waterfront (and other) land. For instance, as we know from the study on hotels and motel rates in Morro Bay compared to other beach communities (done as a part of the General Plan process), Morro Bay’s motel and hotel rates are substantially below those of other communities with waterfront lands. The value of commercial property in Morro Bay is also commensurately lower than those other communities. Consideration of these differences need to be a part of the appraisal process. Perhaps when the first appraisal is completed by the new appraiser it would be prudent to have it peer reviewed by another appraiser, as well as sharing it with us for our review. b. You mentioned that a third of the master leaseholds do not pay percentage rent because they don’t generate enough income to exceed their base rent. Or, we presume, because they are not subject to the newer lease format that requires percentage rent. We believe this issue needs to be evaluated on a case-by-case basis. This is where well considered and expert management of Morro Bay’s Tidelands leases is vital. There are a number of leaseholds where renegotiation or
redevelopment has stalled for years, decades even, because redevelopment has been hampered by political interference (the Aquarium, the Libertine, etc.) - as well because of changing desires by the City Council or staff relative to the kind or style of development of particular properties or, in the case of the Centennial Parkway scheme, consolidation of leaseholds. Parse all those stalled developments out and do the math.
We believe you’ll find that those alone can be the reason for the flat line of income to the Harbor Enterprise Fund over the past decade plus. The solution is strong management and advocacy within the City, particularly on the part of City staff in the management of the leaseholds, and the redevelopment of not just the Tidelands properties but also the other properties held by the City for redevelopment. Our recommendation is to hire a City Attorney or other position with comparable authority and expertise and provide him or her with staff to replace the Harbor Director and to take on the negotiations and redevelopment of the City’s assets - both in the Tidelands and other City owned property. This staff position should be subordinate only to the City Manager in terms of authority and in terms of an advocacy to the City Council, and would provide a peer to the City Manager, providing an additional resource that isn’t being supplied by the outsourced City attorney function. That position would also provide continuity in the development process as Councils and Mayors change from time to time. Continuity in development is an essential element in attracting the capital, financing, and needed investment from the private sector to keep up with future changes to the visitor serving sector that underpins the economic vitality of Morro Bay.
City revenue depends upon it.
c. During our meeting, the adoption of a single percentage rent rate across the board was discussed. We were told the reason would be to simplify reporting and auditing.
EML’s consensus was that the reporting was really not complicated. Almost all businesses use a POS system and can separate different sales categories easily.
Then it’s a simple matter to apply the appropriate percentage rate to the sales category. Further, the economics of different sales categories necessitate different rates. Some services have a higher profitability compared to others. If a single rate is applied, you will find you are discouraging some categories while over-encouraging others. When the Lease Policy Committee of four years ago looked at this issue, it found that Morro Bay’s percentage rent rates for the various categories pretty much aligned with the other jurisdictions in California.
d. An additional factor relative to a fixed rent approach – or any rent approach - is that it must be considered through the lens of what is most beneficial to the Harbor Enterprise Fund. Some businesses are not suited to pay percentage but are still desirable waterfront tenants. The Yacht Club and other non-profit users may be in in this category. The City negotiator should have the ability to recommend a higher fixed base rent in these cases, but the net effect on the Harbor Enterprise Fund should be the yardstick used to determine an appropriate alternative rental. e. Use 9% instead of 8% of the appraised value to determine base rent. This makes little difference to leaseholders who are regularly exceeding their base rent and paying percentage rents. Exceeding base rent by the leaseholders should be a basic goal of the management of the Tidelands Trust, and both a criteria and a metric as to the effectiveness of the City’s management.
f. In negotiations for new development or redevelopment of leaseholds it is imperative that all of the terms and conditions of the lease be known to the
parties up front. A process or method for this needs to be developed and identified.
Recently there have been discussion and changes to the Consent To Sublease process that we thought had addressed this issues. If additional discussion with our members would help in identifying and solidifying the process or method, the EML is willing and eager to participate.
Other Input from EML members:
a. The current lease format defines the base rent and percentage rents. Those are items that should need little or no negotiation. What remains is the length of the lease term versus the amount of investment made by the investor. The EML recommends that a formula be derived to become a guideline for the City’s negotiator in determining what lease term is appropriate for a given level of investment. It is difficult to arrive at a universal formula given the differences in the size and utility of the leaseholds, but as it stands now there is little guidance for the City’s negotiator. We have attached an addendum to this memo describing an approach that the City negotiator may consider as a guideline in the negotiation process.
b. Defining maintenance vs leasehold improvements is also essential. It would be in the City’s best interest to encourage improvements to existing leaseholds that may be approaching expiration. The City’s currency to encourage improvements over simple maintenance is adding years to leases based on the value of the improvement(s).
The marine environment is very harsh on the buildings and improvements on the waterfront. The difference from one side of the street to the other (let alone from one side of the building to the other) is significant. Additionally, the cost of building on the waterfront is significantly higher than other locations due to rebuilding revetments and construction on less than stable soils. Consideration of those factors should be included in the appraisal and cost analyses when determining base rents and lease terms.
Overall, the reaction of our members to your suggested changes to the Lease Policy - as opposed to the changes suggested by the Ad Hoc committee - was positive, with the preceding comments taken into account. We will be most interested in your final report submitted to Council, and hope you will take our thoughts and comments into account. We would like to be supportive of your efforts, and would appreciate receiving your staff report in advance so that we can provide our support and/or comments prior to its presentation to Council.
Prepared By: __YK______ City Attorney Review: __
City Manager Review: YK
Staff Report
TO: Honorable Mayor and City Council DATE: May 8, 2024
FROM: Yvonne Kimball, City Manager
SUBJECT: Review and possible Approval of a One-Year Lease Agreement for 695 Harbor Street property as Chamber office space and the Scope of Work for Fiscal Year (FY) 24-25 Economic Development Services Contract with the Morro Bay Chamber of Commerce
RECOMMENDED ACTION
1. Review and approve a one-year Lease Agreement for office space at 695 Harbor Street and Scope of Work for a one-year Economic Development Services Contract with the Morro Bay Chamber of Commerce for FY 24/25.
2. Review, approve and/or revise the proposed scope of services for a new economic development agreement with the Chamber and authorize the City Manager to execute an agreement, subject to approval as to form by the City Attorney, with Chamber to provide such services approved by Council.
ALTERNATIVES
1. Enter into modified agreements.
2. Do not enter into agreements (not recommended).
FISCAL IMPACT
The proposed service contract cost $50,500 for FY 24-25 plus any additional qualifying expenses.
The space lease agreement continues at $2,400 per year.
DISCUSSION
The City has a long standing partnership with Morro Bay Chamber of Commerce (“Chamber”) for economic development efforts. Since Economic Vitality is a defined Council goal, and the City does not have dedicated staff performing this role, the partnership with the Chamber has been valuable.
The parties are currently under a 3-year contract that expires June 30, 2024, for the Chamber to provide economic development services on behalf of the City at $90,000 a year. The Chamber is interested in entering into another multi-year service contract with the City.
The Chamber Interim CEO, Chamber Board members and several members of City’s Executive Team met a few times to discuss Chamber’s proposal and scope of work. The discussions considered previous years’ tasks, the City’s evolving needs and the changing leadership in both agencies. Despite uncertainties, it appears there is value in continued partnerships so that City can leverage the Chamber’s expertise, networks, and resources in a changing time when City capacity AGENDA NO: 9.e
MEETING DATE: May 14, 2024
2 is very limited.
Having recognized uncertainties in leadership next year, this suggested scope represents a reduced amount from previous contracts and a limited term of one year. We believe this will allow both parties to gain traction with their new staff members and look into other approaches to help each other. When successfully implemented, this scope can help the City’s operational needs and augment the City’s capacity to participate in various regional economic development discussions.
Examples of some of the proposed scope include:
Assisting the new Community Development Director and his/her staff with development relationships
Hosting up to three information meetings for specific business sectors to meet with Council Members and Community Development staff
Implementing the “New Day in Morro Bay” program including identification of a new housing project site and a new anchor business project site.
Additionally, the Chamber office lease agreement is for consideration. The Chamber occupies a small office space in a City-owned building located at 695 Harbor Street that is shared with Visit Morro Bay, the Rock radio station and the City’s Community Resource Connections program. Staff recommends entering into a one-year lease with the Chamber.
CONCLUSION
Staff believes that the services provided under the past contracts have been helpful to the City staff, the Chamber, and the business community. It is recommended to continue a service agreement with the Chamber in a reduced scope for a one-year term.
Staff would like to hear public or City Council thoughts or suggestions prior to finalizing the Scope.
Staff also request Council authorization for the City Manager to execute the service contract and the one year lease agreement once the scope and the term are finalized.
ATTACHMENT(S)
1. Proposed Economic Development Scope of Work for FY 2024-25
2. Current Economic Development service contract ending June 30, 2024.
3. Proposed one-year lease agreement for office space at 695 Harbor St.
AGREEMENT BY AND BETWEEN THE MORRO BAY CHAMBER OF COMMERCE
AND THE CITY OF MORRO BAY FOR ECONOMIC DEVELOPMENT SERVICES FISCAL YEARS 2024/25, 2025/26
SCOPE OF SERVICES
With this scope of services, the Morro Bay Chamber of Commerce supports the City of Morro Bay’s 2023-2025 Goals and Short-Term Action Items; Goal 2: Economic Vitality and Goal 4: Community Engagement.
1. Business and City Liaison (Regular Chamber ongoing services.) a) Assist the City Council, City Manager, Community Development Director, Public Works Director, Finance Director, and other staff with establishing relationships with the business community.
b) Facilitate annual Morro Bay Summit and State of the City in first quarter of the year. c) Cross promote City and Visit Morro Bay events.
d) Host monthly Council Corner at the Government Affairs Committee.
2. Business and Workforce Training (Regular Chamber ongoing services.) a) Provide business and entrepreneurship training events (virtual and/or in person) that are available to the general business community on demand-driven topics. Collaborate with San Luis Obispo County Workforce Development Board, Center for Innovation and Entrepreneurship, and Small Business Administration-funded business resource agencies in the region to deliver this content.
3. Business Attraction and Retention (Regular Chamber ongoing services.) a) Provide direct assistance to new and existing businesses using the Chamber’s “Roadmap to Success” program and other strategies that expand their marketing channels and equip them with the tools necessary to plan for key challenges that new and existing businesses in Morro Bay may encounter.
b) Assist the Harbor Department (as requested) with tenant relations. c) Meet regularly with property owners and managers to stay current with property availability city-wide and serve as conduit to connect perspective businesses with available properties.
d) Provide site selection assistance and serve as a resource to developers or businesses wishing to locate or expand business in Morro Bay.
ITEM DELIVERABLES KEY PERFORMANCE INDICATORS
(KPI)
CITY GOAL VALUE
Business
Attraction
Inventory of city
vacancies that are
zoned for business
purposes.
Database that is
updated monthly of
listed vacancies,
address, zoning and
square footage.
Updated database that is
used as a business attraction
tool to provide site selection
for new or expanding
businesses.
Economic
Vitality
$15k
Business
Retention
Conduct an annual
survey of Morro
Bay business
license holders'
health, online,
through direct
mail, and by
phone samples.
Survey questions to
be compiled with
input from the City
and Chamber to
determine which
businesses have
plans to grow
locally or downsize,
relocate or close.
This survey would
also include
information on key
supply chain
businesses and
employment data.
Adequate response level to
the survey. Survey results
analyzed for business
retention purposes. Provide a
data-informed report of
growing businesses and their
needs, declining or retiring
businesses, and sustaining
businesses.
Economic
Vitality
$7.5k
Business Liaison Serve as the City of
Morro Bay’s
designee for
Economic
Development
activities by
attending regularly
scheduled
meetings of the
REACH Economic
Development
Practitioners
Network, serving
on working
subcommittees of
the Network,
attend Chamber
Workforce
Development
Attendance and summary of
meetings reported monthly
to City Manager and
Community Development
Director. City made aware of
any grant opportunities or
action items from regional
meetings. Total of __
meetings budgeted.
Additional meetings billed
under additional services
item below.
Economic
Vitality.
Community
Engagement.
$15k$8-
Board regional
meetings, and
attending quarterly
meetings of the Cal
Poly Local
Economic
Development
Council.
Business Liaison Work with the City
Manager/
Community
Development
Director to hold
regular team
meetings for
Economic
Development,
including, as
needed, Harbor,
Community
Development,
Finance, and Public
Works
Departments.
Facilitate industry
sector meetings
with businesses and
City staff and
Council.
By regular communication
between Chamber and City
departments related to
business matters business
and city relationships are
improved. City staff is
informed of economic
development efforts and
issues related to the business
community. Facilitate up to
three industry specific
meetings with City staff and
Council.
Economic
Vitality.
Community
Engagement.
$10k$5K
Business Liaison Assist with business
licensing issues.
Work with the finance
department and HDL to
resolve issues in a timely
manner. Hold an informative
webinar for the business
community to educate
businesses on the process,
timeline, and how to get
questions answered.
Remove as a designated
function.
Economic
Vitality.
Community
Engagement.
$15k
New Day in Morro
Bay Business
Attraction
CampaignProgram
Launch “New Day
in Morro Bay”
Campaign to solicit
business and
housing
development.
Meet with commercial and
housing developers to
explore opportunities in
Morro Bay. A minimum of
one new anchor business
Economic
Vitality.
3) Streamline
permit
process for
residential
$15k
identifies and considers a
location in Morro Bay. One
housing development site
identified in Morro Bay and
proforma conducted by
housing developer. This will
also help to connect the new
CDD and the CM with
developers.
and
commercial
development.
Community
Outreach.
City Event
Assistance
Provide staff time
and materials to
assist with City
events.
Events to be mutually
identified by City and
Chamber. Scope and
maximum fee are to be
determined and approved by
CM prior to commencement.
Community
Engagement.
Hourly
Staff
Time
$75-
$150
Grant Assistance
(Optional Item)
Chamber will
research economic
development grant
opportunities and
apply.
Chamber applies to three
grants in 2024/25 fiscal year
and complies with grant
reporting as required.
Economic
Vitality.
Optional
and not
to
exceed
$5,500
Additional Items
as Requested
Chamber to provide
assistance as
requested by the
City on items as
needed.
Additional assistance to be
mutually agreed upon by City
and Chamber. Scope and
maximum fee to be
determined by CM prior to
commencement.
TBD Hourly
Staff
Time
$75-
$150
Reporting Quarterly reporting
to City Council on
scope of services.
Quarterly report to include
key performance indicators
and other measurable results.
RESTATED AND AMENDED AGREEMENT
BY AND BETWEEN THE CITY OF MORRO BAY
AND THE MORRO BAY CHAMBER OF COMMERCE FOR
ECONOMIC DEVELOPMENT SERVICES FOR
FISCAL YEARS 2021/2022, 2022/2023 and 2023/2024
This AGREEMENT is made and entered into by and between the City of Morro Bay, a municipal corporation (hereinafter called "City"), and the Morro Bay Chamber of Commerce, a California non-profit corporation (hereinafter called "Chamber"), collectively, "parties." WHEREAS, City and Chamber will benefit from viable and vibrant business retention, expansion and development within City's jurisdictional boundaries; and WHEREAS, Chamber and City have worked together for several years to attempt to achieve that viable and vibrant business community; and
WHEREAS, Chamber and City desire to continue and enhance those efforts through renewed focused efforts and City funding; and,
WHEREAS, Chamber and City entered into an agreement dated July 10, 2019 for the purpose of securing the services of Chamber to achieve a vibrant and viable business community (the "Previous Agreement"; and WHEREAS, since the declaration of emergency by the State, County and City for the COVID19 crisis ("the Crisis") required an expansion of the duties assigned to Chamber contemplated under the Previous Agreement; and both parties desired to continue to have Chamber perform those services, and, further, those services were added as part of the 2020/2021 fiscal year; and WHEREAS, the City and Chamber desire to for the Chamber to continue providing the same services and enhanced COVID-19 related services and expand into placemaking services to preserve and enhance Morro Bay's small town and charming character, those services are to be added as part of the 2021/2022 fiscal year, and thereafter as provided herein; and NOW, THEREFORE, the parties agree as follows:
Section 1. Intent and Term
A. Intent. City and Chamber recognize the strength and successes of collaboration and cooperation.
It is the intent of this Agreement to reflect a formalized cooperative agreement between the two parties to assist local business in achieving relief from the Crisis, adjusting to reduced demand, assisting with phased re-opening for the local economy, and improving the business climate in City's jurisdiction in an effective and efficient manner. City and Chamber intend to work collaboratively to achieve this goal. This Agreement describes the expected Scope of Services Chamber will provide with funding provided by City during City's 2021/2022, 2022/2023 and 2023/2024 Fiscal Years (FY). (A Previous Agreement, as referenced in recitals above, was entered into between City and Chamber and that Previous Agreement covered in pait this term.) Both parties recognize and agree, while certain services are set forth herein, many of the actual tasks and services will evolve over time as new Federal, State and County directives are issued, and this Agreement is not intended to limit the services to be provided by Chamber to achieve the intent stated in this SecPage 395 of 451 UUll L 1"\.:S Ult; 11c;c;u:s Ul lllC LUY i:tllU l,;UllllllUHUY c;vu1vc;, Ult; pctlUC:S ctg1c;c; LU i:t:S:SC:S:S lllC 11c;c;uc;u Scope of Services and memorialize any changes through administrative addenda. It is also the intent of the pmties for sufficient funding to be provided under this Agreement so the Chamber's Chief Executive Officer, Erica Crawford, and other Chamber employees or contractors, may commit the time necessary to provide the services hereunder, with the understanding of the parties the City cannot legally commit to ensure that funding will be provided over the amounts set forth herein. Neither the Chamber nor its CEO shall be required to devote all of its time to the scope of work herein. However, Chamber shall devote such time and energy as may be necessmy. In addition, Chamber shall contribute its best efforts to perform all of the duties delegated to it pursuant to this Agreement.
B. Tenn. The term of this amended and restated agreement shall be deemed to have commenced on July 1, 2021 and continue through June 30, 2024; provided; that City or Chamber may terminate this Agreement with 90-days' prior written notice.
Section 2. Funding and Use of Funding.
For the 2021/2022, 2022/2023 and 2023/2024 Fiscal Years City shall compensate Chamber at a rate of Ninety Thousand Dollars ($90,000.00) (the "Funding") per year for each year of the Agreement to Chamber from City's General Fund with a monthly payment of Seven Thousand Five Hundred Dollars in exchange for the services set forth in Attachment 1, or as may be amended from time to time by mutual agreement of the parties (the "Scope of Services"). Chamber shall also be reimbursed, in addition to the Funding, for any direct expenses to perform the Scope of Services, including but not limited to speaker fees, venue rental and reception expense, relocation guide production expense, and travel expenses to and from regional economic development meetings. Reimburseable expenses shall not to exceed $10,000 per Fiscal Year, and shall be subject to prior written approval of the City Manager or City Finance Director.
Section 3. Other Activities; Prohibited Activities; Additional Requirements A. Chamber shall also do the following:
1. Ensure no funding provided by City shall be used to support activities that generally serve and benefit only Chamber membership or programs not directly related to the economic development program described in this Agreement. Notwithstanding this prohibition against serving only Chamber members, the Chamber may provide preferential pricing and access for educational sessions, and other additional services to its members;
2. Focus the activities funded under this agreement on businesses in the City of Mono Bay, for the promotion of business, industry, and trade within the City of Morro Bay;
3. Make its books and financial records, concerning the funds expended under this Agreement, available to City for inspections, review and audit upon reasonable notice; and
4. Establish and maintain an accounting system in accordance with generally accepted accounting principles and standards. The system shall detail all costs chargeable to City under this Restated and Amended Economic Service Agreement
for Fiscal Years 2021/2022, 2022/2023 and 2023/2024
fig11;;1;;1111;a1t auu :suau :suu:sta11tiaL1;; au :sul:11 l:UM:s, auu l:U111p1y w1t11 auy app11l:au11;; ~Lalt; auu Federal standards.
B. Chamber shall not use City funding for any of the following:
1. Lobbying or attempting to influence legislation, other than legislative advocacy to accomplish the purposes and intent identified herein;
2. Directly advocating for the approval or disapproval of a specific development project on a particular piece of property. However, Chamber may advocate for policies and procedures which serve the basic purposes and intent of this agreement. Chamber shall also disclose to City any policy position that may have the effect of disproportionately benefitting any member of the Chambers Board of Directors, or its advisory committees. Chamber shall require all of its board members and advisory body members sign and adhere to the Chamber's Code of Ethics, Public Civility Policy, and its Conflict oflnterest policies.
3. Organizing or engaging in protests, petitions, boycotts, or strikes;
4. Assisting, promoting or deterring union organizing;
5. Impairing existing contracts for services or collective bargaining agreements;
6. Engaging in partisan political activities or other activities designed to influence the outcome of an election to any public office;
7. Participating in, or endorsing, events or activities that are likely to include advocacy for or against political parties, political platforms, political candidates, proposed legislation ( except for those activities identified in B 1 above), or elected officials. This prohibition shall not prohibit Chamber from participating in professional associations that may advocate for specific planning and economic development policies;
8. Engaging in religious instruction; conducting worship services, providing instruction as part of a program that includes mandatory religious instruction or worship, constructing or operating facilities devoted to religious instruction or worship, maintaining facilities primarily or inherently devoted to religious instruction or worship, or engaging in any form of religious proselytization; or
9. Any other activity prohibited by any law, rule or regulation or that City cannot legally perform or participate in.
C. City shall provide office space in accordance with the lease agreement dated May_, 2020 (the "Lease Agreement").
Section 4. Payments.
Restated and Amended Economic Service Agreement
for Fiscal Years 2021/2022, 2022/2023 and 2023/2024
\.ALJ :slli:Ui pi:tJ \..,lli:llliUta Hi i:ll,;l,;UiUi:tH\;C WHll .::)Cl,;UUll ,:,,,, llClt:111. VU Ult: 111:sl Ui:tJ Vi Ci:ll,;ll l,;i:liCHUi:ti HiUHLH, beginning July 1, 2021, Chamber shall submit a written invoice each month with a detailed itemization of the staff services and reimburseable expenses provided in the prior month. City shall review such invoices within 10 days after submittal and notify Chamber in writing of any discrepancies. City shall pay the uncontested portion of the invoice within 15 days after the 10-day review period.
Section 5. Reports.
Chamber shall present quarterly updates (September/December/March/June) to the City Council at a regularly scheduled City Council meeting on the status of the Key Deliverables identified in Section 2 of this agreement.
Section 6. Ownership of Work Product.
Unless otherwise agreed upon in writing, all reports, documents, or other written or visual material or any other material in any media, including any images, taglines, logos, or other media created or developed by Chamber or any third party contracted by Chamber, in the performance of this Agreement, if paid in whole by the funding provided by this Agreement ("Work Product") is, shall be and shall remain the property of Chamber. This section 6 shall survive termination of this Agreement.
Section 7. Assignment. This Agreement shall not be assigned by Chamber without the written consent of City.
Section 8, Independent Contractor.
At all times during the term of this Agreement, Chamber shall be independent contractors and Chamber, their officers, employees and agents shall not be employees of City. Chamber shall retain all authority to staff the delivery of services under this Agreement. City shall have no authority to direct which Chamber employees or contractors may perform services under this Agreement, nor the manner or means of performance.
Section 9. Personnel.
Chamber represents it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. Chamber shall be solely responsible for the work performed by third party contractors, including timely performance and payment.
Section 10. Term.
This Agreement shall be deemed to be in full force and effect from July 1, 2021, through June 30, 2024, unless terminated earlier as provided in Section 11 of this Agreement.
Section 11. Termination of Agreement.
City or Chamber may terminate this Agreement at any time, with or without cause, upon ninetydays' written notice to the other party. In the event of such termination, City shall pay Chamber Restated and Amended Economic Service Agreement
for Fiscal Years 2021/2022, 2022/2023 and 2023/2024
lUl au l,;U:St:S l:lllU uuugauuu:s 1t:a:suuau1y llll,;Ullt:U uy \..,lll:llllUt:1 111 :Sl:ltl:Sll:ll,;lUIHY pt:11u1111111g ll:S :St;Ivices under this Agreement prior to the date of termination, and such payment shall be in full satisfaction of City's obligations hereunder. Chamber shall have no further obligation to provide services and City shall not be obligated to pay additional funds after the date of termination specified in the ninety-day notice.
Section 12. Notice.
Whenever it shall be necessary for any party to serve notice on another respecting this Agreement, such notice shall be served by certified mail, postage prepaid, to the addresses below, unless and until a different address may be furnished in writing by any party:
To City:
To:
City Clerk
City of Morro Bay 595 Harbor Street
Morro Bay, CA 93442
Chamber CEO
Chamber: Morro Bay Chamber of Commerce 695 Harbor Street Morro Bay, CA 93442
Chamber Legal Counsel: Jane Heath, Attorney at Law
1052 Main Street, Suite A
Morro Bay, CA 93442
Such notices shall be deemed to have been served within seventy-two hours after the same has been deposited in the United States Post Office by certified mail. This shall be valid and sufficient service of notice for all purposes.
Section 13. Insurance.
A. Chamber shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance written on a per occurrence basis with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Chamber.
B. Chamber agrees to maintain in force at all times during the performance of work under this Agreement workers' compensation and employer's liability insurance as required by law.
C. Chamber agrees to maintain Business Auto Coverage on ISO Business Auto Coverage from 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 Chamber owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above.
Restated and Amended Economic Service Agreement
for Fiscal Years 2021/2022, 2022/2023 and 2023/2024
H \Ali:tll!Uta Ul \..,lli:tll!Ut:1 :S t:llll-HUyt:t::S W 111 U:St: pt:l:SUlli:tl i:IUtU:S 111 ct11y wcty tu jJt:HUUll Ult: ~l,;UJJt: Ul Services, then Chamber shall provide evidence of personal auto liability coverage for each such person.
D. Chamber shall require each of its sub-consultants or sub-contractors to maintain insurance coverage, which meets all of the requirements of this Agreement unless otherwise dete1mined by the City's Risk Manager.
E. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide.
F. If Chamber fails to keep the aforesaid insurance in full force and effect, then City shall notify Chamber it is a breach of this Agreement and Chamber has three days to cure such breach. If such breach is not cured by Chamber as required in this paragraph, then City may terminate this Agreement or, if insurance is available at a reasonable cost, then City may take out the necessary insurance and pay, at Chamber's expense, the premium thereon. Chamber is under a continuing obligation to maintain the aforesaid insurance in-espective of whether City provides such notification to Chamber.
G. At all times during the term of this Agreement, Chamber shall maintain on file with City's Risk Manger a certificate or certificates of insurance on the form required by City, showing the aforesaid policies are in effect in the required amounts. Chamber shall, prior to commencement of work under this Agreement, file with the Risk Manager such certificate or certificates. The policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees and agents as an additional insured. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thi,rty-days' prior written notice to City, and specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement.
H. The insurance provided by Chamber shall be primary to any coverage available to City. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation.
I. Any deductibles or self-insured retentions must be declared to and approved by City prior to commencing work under this Agreement.
Section 14. Indemnification.
Chamber shall defend, indemnify, and hold harmless City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of City officials ( collectively "Indemnitees") from any and all claims, demands, causes of action, costs, including reasonable attorney's fees and court costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, ("Damages") in any manner arising out of or incident to any act or omission of Chamber or any of its employees or its agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and reasonable attorney's fees and other related costs and expenses, except for such loss or damage arising from the sole negligence Restated and Amended Economic Service Agreement
for Fiscal Years 2021/2022, 2022/2023 and 2023/2024
Ul WUUUl lUUSl,;UUUUl.;L Ul c1uy Ul LUI; 1uu1;111uu1;1;:s, p1uv1u1;u, Uli:lL LUI; uuugc1uuu LU UlUl;UlllllY i:lUU UUlU harmless is only to the extent Chamber or its officers, employees or agents cause the Damages. All duties of Chamber under this Section shall survive termination of this Agreement as to any actions taken or services provided prior to termination of the Agreement.
Section 15. Extent of Agreement.
This Agreement, including the Previous Agreement and the addenda referred to in Subdivision 1. A and not including the Lease Agreement. represents the entire and integrated Agreement between the parties on the matters included herein and supersedes any and all prior negotiations, representations or agreements, instrument signed by all parties to this Agreement This Agreement may be amended at any time by the ·mutual consent of the parties by an instrument in writing.
Section 16. Severability.
Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect.
Section 17. Waiver.
No delay or omission in the exercise of any right or remedy by non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
Section 18. Interpretation.
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
Section 19. Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
Section 20. Non-liability of City Officers and Employees.
No officer or employee of the City shall be personally liable to the Chamber, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to the Chamber or to its successor, or for breach of any obligation of the terms of this Agreement.
Restated and Amended Economic Service Agreement
for Fiscal Years 2021/2022, 2022/2023 and 2023/2024
Section 21. California Law.
This Agreement shall be interpreted, constrned and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Luis Obispo, State of California. [Signatures on the following page.]
Restated and Amended Economic Service Agreement
for Fiscal Years 2021/2022, 2022/2023 and 2023/2024
IN WI~SS WHEREOF, the p,uties hereto lrnve e_xecuted this Agreement this¼ day of ---u--1,0,•""14,._ • .,,.k::'.'.::...__, 2021, at Morro Bay, Cahforma
CITY OF MORRO BAY MORRO BAY CHAMBER OF COMMERCE
. By: _ _ (G____, 1..__ __ _ City anager
By:
Erica Crawford, Chief Executive Officer
By ~ ~ectors
Approved As To Form:
Cftr, s J/le(,(,mtJP'--'''-:l l-f-6, CHRIS F. NEUMEYE U City Attorney
0l /8/.0001/723790.l -------------- Restated and Amended Economic Service Agreement for Fiscal Years 2021/2022, 2022/2023 and 2023/2024 .
ATTACHMENT 1
TO
RESTATED AND AMENDED AGREEMENT
BY AND BETWEEN THE CITY OF MORRO BAY
AND THE MORRO BAY CHAMBER OF COMMERCE FOR
ECONOMIC DEVELOPMENT SERVICES FOR
FISCAL YEARS 2021/2022, 2022/2023, and 2023/2024
SCOPE OF SERVICES
1. Designated Proactive Representation
a. Attend regularly scheduled meetings with the City Manager, Community Development Director and relevant City Departments to coordinate economic development activities in the community and region.
b. Attend Development Review Team meetings as needed and monitor permitting progress for the purpose of expediting commercial projects. c. Serve as the City of Morro Bay’s designee for Economic Development activities by attending regularly scheduled meetings of the REACH Economic Development Practitioners Network, serving on working subcommittees of the Network, and attending quarterly meetings of the Cal Poly Local Economic Development Council. d. Collaborate, through virtual meetings, telephonic calls and meetings with regional Economic Development entities such as the County of San Luis Obispo, Cal Poly Small Business Development Center, Cal Poly Center for Economic Innovation and Entrepreneurship, REACH, and the Cal Poly Local Economic Development Council to align Morro Bay’s economic recovery, reinvention and resiliency efforts with those of the region.
2. Tactical Execution of Economic Development Strategy
a. Lead the effort to rebrand Morro Bay as a place to conduct business with the tagline “New Day in Morro Bay,” to promote Morro Bay to the region and beyond as a desirable place to do business.
i. Contact and meet with owners of opportunity sites that are identified in the Economic Development Strategic Plan.
ii. Connect with commercial brokers and developers in the region. iii. Monitor and engage in implementation and results of Permit Process Improvement Study (2020) recommendations to enhance business/commercial development.
b. Convene developer and commercial broker roundtables to share opportunities and assess Morro Bay’s competitive position.
c. Chamber host an Economic Development page content to include “Talking to the City” and “Starting your Business,” developed in collaboration with City staff when appropriate.
d. Create and host a link to a public-access relocation guide on the Chamber website. e. Provide direct assistance to new businesses using the Chamber’s “Roadmap to Success” program, and other strategies, that expands their marketing channels and equips them with the tools necessary to plan for key challenges that new businesses in Morro Bay may encounter.
f. Provide business and entrepreneurship training events (virtual and/or in person) that are available to the general business community on demand-driven topics. Collaborate with SBA funded business resource agencies in the region to deliver this content, as needed.
g. Collaborate with Morro Bay Tourism Business Improvement District (MBTBID) to align local and regional economic development efforts with Morro Bay’s Tourism industry.
3. Preserve and Materially Enhance Morro Bay’s Small-Town Character a. Execute creative placemaking initiatives to benefit economic centers citywide. Initiatives to include a flagpole banner program in the Downtown Waterfront Strategic Plan area and future projects as identified. External cost
b. Monitor and assist with completion of city-wide wayfinding signage. c. Assess need and feasibility of the formation of a Business Improvement District in the Downtown Waterfront Strategic Plan area. Serve as project manager to oversee stakeholder engagement and production of a Feasibility Study with a professional consultancy firm. External cost $10,000 to be addressed by further written agreement between City and Chamber.
ACORD® CERTIFICATE OF LIABILITY INSURANCE I DATE (MM/DDIYYYY) ~, 07/04/2021
THIS CERTIFICATE 15 ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION 15 WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
PRODUCER , CONTACT Julie Garcia, CLCS Engle & Associates Insurance Brokers NAME:
;_JjgN;o Extl: (805)544-8929 I r..e~ Nol: (805)781-6339 1236 Higuera St E-MAIL [email protected] San Luis Obispo, CA 93401 ADDRESS:
License#: 0D21178 INSURER(S) AFFORDING COVERAGE NAIC#
INSURER A: Great American Insurance Comoanv
INSURED INSURERS: Emnlovers Preferred Insurance Comnanv 10346 Morro Bay Chamber of Commerce, Inc INSURERC:
695 Harbor St INSURERD:
Morro Bay, CA 93442-1905 INSURERE:
INSURERF:
COVERAGES CERTIFICATE NUMBER: 00104348-506031 REVISION NUMBER: 2
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP
LTR lh!On W\tn POLICY NUMBER LIMITS IMM/DDIYYYYl IMM/DD/YYYYl A _x COMMERCIAL GENERAL LIABILITY y 257184403 06/01/2021 06/01/2022 EACH OCCURRENCE $ 1 000 000 D CLAIMS-MADE [x] OCCUR DAMAGE TO RENTED PREMISES IEa occurrence\ $ 100 000
f-- MED EXP (Any one person) $ 5 000
PERSONAL & ADV INJURY $ 1000000 -
GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2 000 000 ~POLICY ff& Loe PRODUCTS - COMP/OP AGG $ 2 000 000
OTHER: $
A AUTOMOBILE LIABILITY 257184403 06/01/2021 06/01/2022 COMBINED SINGLE LIMIT (Ea accident} $ 1 000 000 - ANY AUTO BODILY INJURY (Per person) $ - OWNED - SCHEDULED BODILY INJURY (Per accident) $ - AUTOS ONLY - AUTOS _x HIRED X NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY /Per accidentl $
A _x UMBRELLA LIAS ~ OCCUR 261802403 06/01/2021 06/01/2022 EACH OCCURRENCE $ 1,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $
DED I I RETENTION $ $
B WORKERS COMPENSATION EIG264809003 07/01/2021 07/01/2022 XI ~ffTuTE I I OTHAND EMPLOYERS' LIABILITY ER Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE □ NIA E.L EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? (Mandatory In NH) E.L. DISEASE - EA EMPLOYEE $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS/ LOCATIONS /VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) The City of Morro Bay, its officers, employees and agents are named Additional Insured as respects their interest in General Liability per attached form
#CG8970 11-14
CERTIFICATE HOLDER
The City of Morro Bay
595 Harbor Street
Morro Bay, CA 93442
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
AUlliORIZED REPRESENTATIVE
~ JAG
© 1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD Printed by JAG on July 04, 2021 at 12:47PM
* S 1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/B* 465764361 253657
CG 8 9 7 0 (Ed. 11 / 1 4)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
SIGNATURE GENERAL LIABILITY BROADENING ENDORSEMENT
This Endorsement modifies and is subject to the insurance provided under the following form:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
The following extension only applies in the event that no other specific coverage for the indicated loss exposure is provided under this Policy. If other specific coverage applies, the terms, conditions and limits of that Coverage are the exclusive coverage applicable under this Policy, unless otherwise noted in this Endorsement. This is a summary of the various additional coverages and coverage modifications provided by this Endorsement. For complete details on specific coverages, consult the actual policy wording.
Coverage Description Limit of Insurance Page
Non-Owned Aircraft Included 2
Non-Owned Watercraft Included 2
Bodily Injury - Mental Injury, Mental Anguish, Humiliation or Shock Included 3 Medical Payments $ 20,000 3
Damage to Premises Rented to You $ 1,000,000 3
Supplementary Payments - Bail Bonds $ 3,000 4
Supplementary Payments - Loss of Earnings $ 1,000 per day 4 Newly Formed or Acquired Organizations Included 4
Unintentional Failure to Disclose Hazards Included 5
Knowledge of Occurrence, Claim or Suit Included 5
Property Damage Liability - Elevators Included 5
Property Damage Liability - Borrowed Equipment Included 5 Liberalization Clause Included 6
Amendment of Pollution Exclusion (Premises) Included 6
Limited Property Damage to Property of Others $ 5,000 6 Additional Insured - Manager or Lessor of Premises Included 7 CG 8 9 7 0 (Ed. 11 / 1 4) (Page 1 of 12) Page 407 of 451 * S1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/B* 465764361 253657
Coverage Description Limit of Insurance
Additional Insured - Funding Sources Included
Additional Insured - By Contract Included
Primary and Non-Contributory Additional Insured Extension Included Additional Insureds - Protection of Your Limits .:; Included Blanket Waiver of Transfer of Rights of Recovery Against Others" Included to Us (Subrogation)
Property Damage Extension With Voluntary Payments $ 1,000/$ 5,000 Who Is An Insured - Fellow Employee Extension - Management I Included Page
7 8
10 10
11 11
Employees 1 2
Broadened Personal and Advertising Injury Included 12
A. Non-Owned Aircraft
Under paragraph 2. Exclusions of SECTION I - COVERAGE A - Bodily Injury and Property Damage Liability, exclusion g. Aircraft, Auto or Watercraft does not apply to an aircraft provided:
1. it is not owned by any insured;
2. it is hired, chartered or loaned with a trained paid crew;
3. the pilot in command holds a currently effective certificate, issued by the duly constituted authority of the United States of America or Canada, designating him or her a commercial or airline pilot; and
4. it is not being used to carry persons or property f2r a charge.
However, the insurance afforded by this provision does not apply if there is available to the Insured other valid and collectible insurance, whether primary, excess (other than insurance written to apply specifically in excess of this Policy), contingent or on any other basis, that would also apply to the loss covered under this provision.
B. Non-Owned Watercraft
Under paragraph 2. Exclusions of SECTION I - COVERAGE A - Bodily Injury and Property Damage Liability, subparagraph (2) of exclusion g. Aircraft, Auto or Watercraft is replaced by the following:
This exclusion does not apply to:
(2) A watercraft you do not own that is:
(a) less than 60 feet long; and
CG 8 9 7 0 (Ed. 11 / 1 4) Page 408 of 451 (Page 2 of 12) * S 1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/8* 465764361 253657
(b) not being used to carry persons or property for a charge.
C. Bodily Injury • Mental Injury, Mental Anguish, Humiliation or Shock Under SECTION V · DEFINITIONS, Definition 3. is replaced by the following:
3. "Bodily Injury" means physical injury, sickness, or disease, including death of a person. "Bodily Injury" also means mental injury, mental anguish, humiliation, or shock if directly resulting from physical injury, sickness, or disease to that person.
D. Medical Payments
If Coverage C Medical Payments is not otherwise excluded, the Medical Payments provided by this Policy are amended as follows:
The Medical Expense Limit in paragraph 7. of SECTION Ill • LIMITS OF INSURANCE is replaced by the following Medical expense Limit:
The Medical Expense Limit provided by this Policy shall be the greater of:
a. $20,000; or
b. the amount shown in the Declarations for Medical Expense Limit This provision 7. is subject to all the terms of SECTION Ill - LIMITS OF INSURANCE.
E. Damage to Premises Rented to You
If Damage to Premises Rented to You is not otherwise excluded from this Coverage Part:
1. Under paragraph 2. Exclusions of SECTION I - COVERAGE A - Bodily Injury and Property Damage Liability:
3. The last paragraph of paragraph 2. Exclusions is deleted in its entirety and replaced by the following:
Exclusions c. through n. do not apply to damage by fire, lightning, explosion, smoke, leakage from an automatic fire protection system or water to premises while rented to you or temporarily occupied by you with permission of the owner. A separate Limit of Insurance applies to this coverage as described in SECTION Ill · LIMITS OF INSURANCE.
However, this insurance does not apply to damage to premises while rented to you, or temporarily occupied by you with the permission of the owner, caused by:
i. rupture, bursting, or operation of pressure relief devices; ii. rupture or bursting due to expansion or swelling of the contents of any building or structure, caused by or resulting from water;
iii. explosion of steam boilers, steam pipes, steam engines, or steam turbines; or iv. flood
2. Paragraph 6. Under SECTION Ill • LIMITS OF INSURANCE is deleted in its entirety and replaced with the following:
CG 89 70 (Ed. 11/14) (Page 3 of 12) Page 409 of 451
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6. Subject to paragraph 5. above, the most we will pay under Coverage A for damages because of "property damage" to any one premises, while rented to you, or in the case of damage caused by fire, lightning, explosion, smoke, leakage from automatic fire protection system or water while rented to you or temporarily occupied by you with the permission of the owner, for all such damage caused by fire, lightning, explosion, smoke, leakage from automatic fire protection systems or water proximately caused by the same event, whether such damage results from fire, lightning, explosion, smoke, leakage from automatic fire protection systems or water or any combination of the six, is the higher of $ 1,000,000 or the amount shown in the Declarations for the Damage to Premises Rented to You Limit.
3. Under SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS, subsection 4. Other Insurance, paragraph b. Excess Insurance where the words "Fire insurance" appear they are changed to "insurance for fire, lightning, explosion, smoke, leakage from an automatic fire protection system or water."
4. As regards coverage provided by this provIsIon I. Damage to Premises Rented to You - paragraph 9.a. of Definitions is replaced with the following:
9. a. a contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning, explosion, smoke, leakage from automatic fire protection systems or water to premises while rented to you or temporarily occupied by you with the permission of the owner is not an "insured contract";
F. Supplementary Payments
1. In the Supplementary Payments - Coverages A and B provision, paragraph 1.b. is replaced with:
b. Up to $ 3,000 for the cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds.
2. Paragraph 1.d. is replaced by the following:
d. All reasonable expenses incurred by the Insured at our request to assist us in the investigation or defense of the claim or "suit," including actual loss of earnings up to $ 1,000 a day because of time off work.
G. Newly Formed or Acquired Organizations
Paragraph 3. of SECTION II - WHO IS AN INSURED is replaced by the following:
3. Any organization you newly acquire or form and over which you maintain ownership or majority interest, will qualify as a named insured if there is no other similar insurance available to that organization. However:
a. coverage under this provIsIon is afforded only until the expiration of the policy period in which the entity was acquired or formed by you;
b. coverage A does not apply to "bodily injury" or property damage that occurred before you acquired or formed the organization; and
c. coverage B does not apply to "personal and advertising injury" arising out of an offense committed before you acquired or formed the organization.
CG 89 70 (Ed. 11/14) Page 410 of 451 (Page 4 of 12)
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d. records and descriptions of operations must be maintained by the first named insured.
No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a named insured in the Declarations or qualifies as an insured under this provision.
H. Unintentional Failure to Disclose Hazards
Under SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS, the following is added to Condition 6. Representations:
Failure of the Insured to disclose all hazards existing as of the inception date of this Policy shall not prejudice the insurance with respect to the coverage afforded by this Policy, provided such failure or omission is not intentional on the part of the Insured.
I. Knowledge of Occurrence, Claim or Suit
Under SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS, the following is added to Condition 2. Duties in the Event of Occurrence, Offense, Claim or Suit:
Knowledge of any occurrence, claim, or suit by any agent, servant or employee of the Named Insured does not in itself constitute knowledge by the Insured unless notice of such injury, claim or suit shall have been received by:
a. you, if you are an individual;
b. a partner, if you are a partnership
c. an executive officer or insurance manager, if you are a corporation.
J. Property Damage Liability - Elevators
1. Under paragraph 2. Exclusions of SECTION I - COVERAGE A - Bodily Injury and Property Damage Liability, subparagraphs (3), (4) and (6) of exclusion j. Damage to Property do not apply if such property damage results from the use of elevators.
2. The following is added to SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS, Condition 4. Other Insurance, paragraph b. Excess Insurance:
The insurance afforded by this provision of this Endorsement is excess over any property insurance, whether primary, excess, contingent or on any other basis.
K. Property Damage Liability - Borrowed Equipment
1. Under paragraph 2. Exclusions of SECTION I - COVERAGE A - Bodily Injury and Property Damage Liability, subparagraph (4) of exclusion j. Damage to Property does not apply to "property damage" to borrowed equipment while not being used to perform operations at a job site.
2. The following is added to SECTION IV - COMMERCIAL GENERAL LIABILITY Conditions, Condition 4. Other Insurance, paragraph b. Excess Insurance:
The insurance afforded by this provision of this Endorsement is excess over any property insurance, whether primary, excess, contingent or on any other basis.
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L. Liberalization Clause
If we revise this Signature General Liability Broadening Endorsement to provide more coverage without additional premium charge, your policy will automatically provide the coverage as of the date the revision is effective in your state.
M. Amendment of Pollution Exclusion (Premises)
1. The following is added to paragraph (1)(a) of Exclusion f. of SECTION I • COVERAGE A • Bodily Injury and Property Damage Liability:
(iv) "Bodily injury" or "property damage" arising out of the actual discharge, dispersal, seepage, migration, release or escape of "pollutants."
As used in this Endorsement, the actual discharge, dispersal, seepage, migration, release or escape of pollutants must:
(aa) commence on a clearly identifiable day during the policy period; and (bb) end, in its entirety, within seventy-two (72) hours of the commencement of the discharge, dispersal, seepage, migration, release or escape of "pollutants"; and (cc) be discovered and reported to us within fifteen (15) days of the clearly identifiable day that the discharge, dispersal, seepage, migration, release or escape of "pollutants" commences; and
(dd) be neither expected nor intended from the standpoint of any insured; and (ee) be unrelated to any previous discharge, dispersal, seepage, migration, release or escape; and
(ff) not originate at or from a storage tank or other container, duct or piping which:
a. is below the surface of the ground or water; or
b. at any time has been buried under the surface of the ground or water and then is subsequently exposed.
2. For the purposes of this coverage, the following is added to the definition of "property damage" of SECTION V - DEFINITIONS and applies only as respects this coverage:
Land or water, whether below ground level or not, is not tangible property.
3. Coverage provided hereunder does not apply to any discharge, dispersal, seepage, migration, release or escape that is merely threatened or alleged rather than shown to have actually occurred.
N. Limited Property Damage to Property of Others
The following is added under SECTION I - SUPPLEMENTARY PAYMENTS - COVERAGES A and B:
3. We will pay up to $5,000 for loss to personal property of others while in the temporary care, custody or control of an insured caused by any person participating in your organized activities.
For the purpose of this supplementary payment, loss shall mean damage or destruction but does not include mysterious disappearance or loss of use. In the event of a theft, a police report must be filed. This supplementary payment does not apply if:
a. coverage is otherwise provided by the Property Coverage part (if any) of this Policy; or CG 8 9 7 0 (Ed. 11 / 14) Page 412 of 451 (Page 6 of 12) * S1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/B* 465764361 253657
b. the loss is covered by any other insurance you have or by any insurance of such person who causes such loss.
These payments will not reduce the Limits of Insurance.
0. Additional Insured - Manager or Lessor of Premises
1. SECTION II - WHO IS AN INSURED is amended to include as an additional insured any person or organization from whom you lease or rent property and which requires you to add such person or organization as an additional insured on this Policy under:
(a) a written contract; or
(b) an oral agreement or contract where a Certificate of Insurance showing that person or organization as an additional insured has been issued;
but the written or oral contract or agreement must be an "insured contract," and, (i) currently in effect or become effective during the term of this Policy; and (ii) executed prior to the "bodily injury," "property damage," "personal and advertising injury."
2. With respect to the insurance afforded to the Additional Insured identified in paragraph 1. above, the following additional provisions apply:
(a) This insurance applies only with respect to the liability arising out of the ownership, maintenance or use of that part of the premises leased to you. (b) The Limits of Insurance applicable to the Additional Insured are the lesser of those specified in the written contract or agreement or in the Declarations for this Policy and subject to all the terms, conditions and exclusions for this Policy. The Limits of Insurance applicable to the Additional Insured are inclusive of and not in addition to the Limits of Insurance shown in the Declarations.
(c) In no event shall the coverages or Limits of Insurance in this Coverage Form be increased by such contract.
(d) Coverage provided herein is excess over any other valid and collectible insurance available to the Additional Insured whether the other insurance is primary, excess, contingent or on any other basis unless a written contractual arrangement specifically requires this insurance to be primary.
(e) This insurance applies only to the extent permitted by law.
3. This insurance does not apply to:
(a) Any "occurrence" or offense which takes place after you cease to be a tenant in that premises.
(b) Structural alterations, new construction or demolition operations performed by or on behalf of the Additional Insured.
P. Additional Insured - Funding Sources
1. SECTION II • WHO IS AN INSURED is amended to include as an additional insured any Funding Source which requires you in a written contract to name the Funding Source as an additional insured but only with respect to liability arising out of:
CG 8 9 7 0 (Ed. 11 / 1 4) (Page 7 of 12) Page 413 of 451 * S1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/B* 465764361 253657
a. your premises; or
b. "your work" for such additional insured; or
c. acts or omissions of such additional insured in connection with the general supervision of "your work"
and only to the extent set forth as follows:
a. The Limits of Insurance applicable to the Additional Insured are the lesser of those specified in the written contract or agreement or in the Declarations for this Policy and subject to all the terms, conditions and exclusions for this Policy. The Limits of Insurance applicable to the Additional Insured are inclusive of and not in addition to the Limits of Insurance shown in the Declarations.
b. The insurance afforded to the Additional Insured only applies to the extent permitted by law c. If coverage provided to the Additional Insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. d. In no event shall the coverages or Limits of Insurance in this Coverage Form be increased by such contract.
Q. Additional Insureds - By Contract
1. SECTION II • WHO IS AN INSURED is amended to include as an insured any person or organization whom you have agreed to add as an additional insured in a written contract, written agreement or permit. Such person or organization is an additional insured but only with respect to liability for "bodily injury," "property damage" or "personal and advertising injury" arising out of:
a. your acts or omissions, or the acts or omIssIons of those acting on your behalf, in the performance of your ongoing operations for the Additional Insured that are subject of the written contract or written agreement provided that the "bodily injury" or "property damage occurs, or the "personal and advertising injury" is committed, subsequent to the signing of such written contract or written agreement; or
b. the maintenance, operation or use by you of equipment rented or leased to you by such person or organization; or
c. the Additional Insureds financial control of you; or d. operations performed by you or on your behalf for which the state or political subdivision has issued a permit
However:
1. the insurance afforded to such additional insured only applies to the extent permitted by law; and
2. if coverage provided to the Additional Insured is required by contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide such additional insured.
With respect to paragraph 1.a. above, a person's or organization's status as an additional insured under this Endorsement ends when:
CG 8 9 7 0 (Ed. 11 / 1 4) Page 414 of 451 (Page 8 of 12) * S 1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/8* 465764361 253657
(1) all work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed for or on behalf of the Additional lnsured(s) at the location of the covered operations has been completed; or
(2) that portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.
With respect to paragraph 1.b. above, this insurance does not apply to any "occurrence" which takes place after the equipment rental or lease agreement has expired or you have returned such equipment to the lessor.
The insurance provided by this Endorsement applies only if the written contract or written agreement is signed prior to the "bodily injury" or "property damage." We have no duty to defend an additional insured under this Endorsement until we receive written notice of a "suit" by the Additional Insured as required in paragraph b. of Condition 2.
Duties in the Event of Occurrence, Offense, Claim or Suit under SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITION.
2. With respect to the insurance provided by this Endorsement, the following are added to paragraph 2. Exclusions under SECTION I - COVERAGE A - Bodily Injury and Property Damage Liability:
This insurance does not apply to:
a. "Bodily injury" or "property damage" that occurs prior to your commencing operations at the location where such "bodily injury" or "property damage" occurs. b. "Bodily injury," "property damage" or "personal and advertising injury" ansmg out of the rendering of, or failure to render, any professional architectural, engineering or surveying services, including:
(1) the preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or
(2) supervisory, inspection, architectural or engineering activities.
This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that Insured, if the "occurrence" which caused the "bodily injury" or "property damage," or the offense which caused the "personal and advertising injury," involved the rendering of, or failure to render, any professional architectural, engineering or surveying services. c. "Bodily injury" or "property damage" occurring after:
(1) all work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed for or on behalf of the Additional lnsured(s) at the location of the covered operations has been completed; or
(2) that portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.
CG 89 70 (Ed. 11/14) (Page 9 of 12) Page 415 of 451
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d. Any person or organization specifically designated as an additional insured for ongoing operations by a separate additional insured endorsement issued by us and made part of this Policy.
3. With respect to the insurance afforded to these Additional Insureds, the following is added to SECTION Ill - LIMITS OF INSURANCE:
If coverage provided to the Additional Insured is required by a contract or agreement, the most we will pay on behalf of the Additional Insured is the amount of insurance:
a. required by the contract or agreement; or
b. available under the applicable Limits of Insurance shown in the Declarations; whichever is less.
This Endorsement shall not increase the applicable Limits of Insurance shown in the Declarations.
R. Primary and Non-Contributory Additional Insured Extension This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this Policy.
Condition 4. Other Insurance of SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS is amended as follows:
a. The following is added to paragraph a. Primary Insurance:
This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that:
(1) the Additional Insured is a named insured under such other insurance; and (2) you have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the Additional Insured.
b. The following is added to paragraph b. Excess Insurance:
When a written contract or written agreement, other than a premises lease, facilities rental contract or agreement, an equipment rental or lease contract or agreement or permit issued by a state or political subdivision between you and an additional insured does not require this insurance to be primary or primary and non-contributory, this insurance is excess over any other insurance for which the Additional Insured is designated as a named insured.
Regardless of the written agreement between you and an additional insured, this insurance is excess over any other insurance whether primary, excess, contingent or on any other basis for which the Additional Insured has been added as an additional insured on other policies.
S. Additional Insureds - Protection of Your Limits
This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this Policy.
1. The following is added to Condition 2. Duties in the Event of Occurrence, Offense, Claim or Suit:
An additional insured under this Endorsement will as soon as practicable:
CG 8 9 7 0 (Ed. 11 / 14) Page 416 of 451 (Page 1 0 of 12) * S 1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/B* 465764361 253657
a. give written notice of an "occurrence" or an offense that may result in a claim or "suit" under this insurance to us;
b. tender the defense and indemnity of any claim or "suit" to all insurers whom also have insurance available to the Additional Insured; and
c. agree to make available any other insurance which the Additional Insured has for a loss we cover under this Coverage Part.
d. we have no duty to defend or indemnify an additional insured under this Endorsement until we receive written notice of a "suit" by the Additional Insured.
2. The Limits of Insurance applicable to the Additional Insured are those specified in a written contract or written agreement or the Limits of Insurance stated in the Declarations of this Policy and defined in SECTION Ill • LIMITS OF INSURANCE of this Policy, whichever are less. These limits are inclusive of and not in addition to the Limits of Insurance available under this Policy.
T. Blanket Waiver of Transfer of Rights of Recovery Against Others to Us (Subrogation) Under SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS, the following is added to Condition 8. Transfer of Rights of Recovery Against Others to Us:
If required by a written contract or written agreement, we waive any right of recovery we may have against a person or organization because of payment we make for injury or damage arising out of your ongoing operations or "your work" done under a contract for that person or organization and included in the "products-completed operations hazard" provided that the injury or damage occurs subsequent to the execution of the written contract or written agreement.
U. Property Damage Extension with Voluntary Payments
1. The following is added to paragraph 1. Insuring Agreement of SECTION I - COVERAGE A - Bodily Injury and Property Damage Liability:
At your request we will pay for "loss" to property of others caused by your business operations for which this Policy provides liability insurance. Such payment will be made without regard to your legal obligation to do so. The "loss" must occur during the policy period and must take place in the "coverage territory."
2. With respect to the coverage afforded under paragraph 1. above, paragraph 2. Exclusions of SECTION I - COVERAGES A - Bodily Injury and Property Damage Liability is amended as follows:
Exclusions j.(3), j.(4), j.(5) and j.(6) are deleted.
3. As respects coverage afforded by this coverage, SECTION Ill - LIMITS OF INSURANCE is replaced by the following:
Regardless of the number of insureds, claims made or "suits" brought or persons or organizations making claims or bring "suits":
1. Subject to 2. Below, the most we will pay for one or more "loss" arising out of any one "occurrence" is$ 1,000.
2. The aggregate amount we will pay for the sum of all "loss" in an annual period is $ 5,000.
This aggregate amount is part of and not in addition to the General Aggregate Limit described in paragraph 2. of SECTION Ill - LIMITS OF INSURANCE.
CG 89 70 (Ed. 11/14) (Page 1 1 of 1 2) Page 417 of 451
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V. Who Is an Insured - Fellow Employee Extension - Management Employees
1. The following is added to paragraph 2.a.(1) of SECTION II • WHO IS AN INSURED:
Paragraph (a) and (b) above do not apply to "bodily injury" or "personal and advertising injury" caused by an "employee" who is acting in a supervisory capacity for you. Supervisory capacity as used herein means the "employee's" job responsibilities assigned by you, including the direct supervision of other "employee" of yours. However, none of these "employees" are insureds for "bodily injury" or "personal and advertising injury" arising out of their willful conduct, which is defined as the purposeful or willful intent to cause "bodily injury" or "personal and advertising injury," caused in whole or in part by their intoxication by liquor or controlled substances.
This coverage is excess over any other valid and collectable insurance available to your "employee."
W. Broadened Personal and Advertising Injury
1. Unless "Personal and Advertising Injury" is excluded from this Policy, the following is added to SECTION V · DEFINITIONS Item 14.:
h. mental injury, mental anguish, humiliation, or shock, if directly resulting from Items 14.a. through 14.e.
CG 8 9 7 0 (Ed. 11 / 1 4) (Page 12 of 12) Page 418 of 451 * S1 * 04/28/2021 * PAC 2571844 03 GREAT AMERICAN ASSURANCE COMPANY *D/B* 465764361 253657
CA 80 03 (Ed. 10 13)
Policy: PAC 2571844 03
ITEM ONE
Named Insured:
Form of Business:
BUSINESS AUTO COVERAGE FORM
DECLARATION PAGE
THE MORRO BAY CHAMBER OF
COMMERCE, INC.
CORPORATION
Policy Period:
06/01/2021 to 06/01/2022
·1TEMTWO SCHEDULE OF COVERAGES AND COVERED AUTOS
This Policy provides only those coverages where a charge is shown in the premium column below. Each of these coverages will apply only to those "autos" shown as covered "autos." "Autos" are shown as covered "autos" for a particular coverage by the entry of one or more of the symbols from the Covered Autos Section of the Business Auto Coverage Form next to the name of the coverage.
Coverages
lcovERED AUTOS LIABILITY
SUPPLEMENTAL SPOUSAL
LIABILITY (New York only)
PERSONAL INJURY
PROTECTION
(Or Equivalent No-Fault
Coverage)
ADDED PERSONAL INJURY
PROTECTION
(Or Equivalent Added
No-Fault Coverage)
AGGREGATE NO-FAULT
BENEFITS AVAILABLE
(New York Only)
MAXIMUM MONTHLY WORK
LOSS (New York Only)
OTHER NECESSARY
EXPENCES (PER DAY)
(New York Only)
IDEATH BENEFIT
(New York Only)
Covered Autos Limit
8,9 $1,000,000
Premium
$ 388.00
$
.·
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Coverages Covered Autos Limit
PROPERTY PROTECTION
INSURANCE
(Michigan only)
jAUTO MEDICAL PAYMENTS
MEDICAL EXPENSE AND
INCOME LOSS BENEFITS
(Virginia only)
!UNINSURED MOTORISTS
UNDERINSURED MOTORISTS
(When Not Included In
Uninsured Motorists Coverage)
PHYSICAL DAMAGE
COMPREHENSIVE COVERAGE
PHYSICAL DAMAGE SPECIFIED
CAUSE OF LOSS COVERAGE
$
$
$
$
$
Actual Cash Value Or Cost$
Of Repair, Whichever Is
Less, MINUS The Deductible
Stated In ITEM THREE -
Schedule Of Covered Autos
But No Deductible Applies
To Loss Caused By Fire Or
Lightning. (In New York a,
Deductible Will Apply To
Loss Cost Caused By Fire
Or Lightning) .See ITEM
FOUR For Hired Or
Borrowed "Autos"
Actual Cash Value Or Cost$
Of Repair, Whichever Is
Less, MINUS The
Deductible Stated In ITEM
THREE - Schedule of
Covered Auto For Loss
Caused By Mischief Or
Vandalism. See ITEM FOUR
For Hired Or Borrowed
"Autos".
Includes copyrighted material of ISO Properties, Inc., with its permission.
CA 80 03 (Ed. 10/13) (Page 2 of 6)
Premium
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Coverages Covered Autos Limit
PHYSICAL DAMAGE COLLISION
COVERAGE
PHYSICAL DAMAGE
TOWING AND LABOR
loTHER covERAGES
Actual Cash Value Or Cost$
Of Repair, Whichever Is
Less, MINUS The Deductible
Stated In ITEM THREE -
Schedule Of Covered Autos
See ITEM FOUR For Hired Or
Borrowed "Autos".
See ITEM THREE - Schedule$
Of Covered Autos For Limit
For Each Disablement Of
Private Passenger Autos.
Estimated Total Premium
*This Policy May Be Subject To Final Audit
$
Premium
388.00
FORMS AND ENDORSEMENTS applicable to this Coverage Part and made part of the Policy at time of issue are listed on the attached Forms and Endorsements Schedule, CA 88 01 Ed. 01/87 .
ITEM THREE SCHEDULE OF COVERED AUTOS YOU OWN (Parts. A, B, C & D) DESCRIPTION, TERRITORY, CLASSIFICATION, and COVERAGES ON AUTOS YOU OWN.
Including additions, changes and deletions
For Limits of Liability or deductibles applicable to each coverage ("COVERAGES") not shown on this Schedule, see ITEM TWO or attached endorsement(s).
DATE OF THIS SCHEDULE: 06/01/2021
Except For Towing, All Physical Damage Loss Is Payable To You And The Loss Payee Named Below According To Their Interests In the Auto At The Time Of The Loss .
. ITEM FOUR SCHEDULE OF HIRED OR BORROWED COVERED
AUTO COVERAGE AND PREMIUMS
Includes copyrighted material of ISO Properties, Inc., with its permission.
CA 80 03 (Ed. 10/13) (Page 3 of 6)
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COVERED AUTOS LIABILITY COVERAGE - COST OF HIRE RATING BASIS FOR IN YOUR MOTOR CARRIER OPERATIONS(Other Than Mobile or Farm Equipment) STATE Estimated Annual
Cost of Hire For Each States PREMIUM
Primary Coverage
Excess Coverage CA If any
LIABILITY COVERAGE - RATING BASIS, NUMBER OF DAYS -
(FOR MOBILE OR FARM EQUIPMENT - RENTAL PERIOD BASIS)
Estimated Number
of Days Equipment
$ 170
STATE will be Rented Base Premium Factor PREMIUM
Total Hired Auto Premium
$
$
Cost of hire means the total amount you incur for the hire of "autos" you don't own (not including "autos" you borrow or rent from your partners or employees or their family members). Cost of hire does not include charges for services performed by motor carriers of property or passengers.
PHYSICAL DAMAGE COVERAGE
170
COVERAGES STATE Limit of Insurance
Estimated
Annual
Cost of
Hire Premium
Comprehensive
Specified
Causes of
Loss
Collision
Actual cash value or cost of
repairs MINUS$
ded.for each Covered Auto,bu
t no ded applies to loss cau
sed by fire or lighting. (In
NY,a Ded will apply To Loss
Cost Caused By Fire Or Lightning)
Actual cash value or cost of
repairs MINUS $
deductible for each Covered
Auto for loss caused by
mischief or vandalism.
Actual cash value or cost of
repairs MINUS$
deductible for each Covered
Auto.
Total Hired Auto Premium$
Includes copyrighted material of ISO Properties, Inc., with its permission.
CA 80 03 (Ed. 10/13) (Page 4 of 6)
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ltTEM FIVE SCHEDULE. FOR NON.-OWNERSHIP COVERED AUTOS LIABILITY Named Insured's Business Rating Basis Number Premium
Other than Garage Service
Operations and Other Than
Social Service Agencies
Number of Employees
Number of Partners
(Active and Inactive)
Garage Service Operations Number of Employees Whose
Principal Duty Involves
the Operation of Autos
Number of Partners
(Active and Inactive)
Social Service Agencies Number of Employees 25
jtTEMSIX
Loe Estimated
No. Yearly
) Gross Receipts
)Mileage
Total Premiums
Minimum Premiums
Loe. Number
Number of Volunteers Who
Regularly Use Autos To
(
(
Transport Clients
Number of Partners
(Active and Inactive)
SCHEDULE FOR GROSS RECEIPTS OR MILEAGE BASIS
Rates
)Per $100 of Gross Receipt
)Per Mile
Liability
Personal Injury Protection
Added Personal Injury Protection
Property Protection Insurance(Michigan Only)
Auto Medical Payments
Medical Expenses and Income Loss Benefits
(Virginia Only)
Comprehensive
Specified Causes of Loss
Collision
Towing and Labor
Address
When used as a premium basis:
For Public Autos
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 218
$
$
Premiums
Includes copyrighted material of ISO Properties, Inc., with its permission.
CA 80 03 (Ed. 10/13) (Page 5 of 6)
ATTACHMENT 1
TO
RESTATED AND AMENDED AGREEMENT
BY AND BETWEEN THE CITY OF MORRO BAY
AND THE MORRO BAY CHAMBER OF COMMERCE FOR
ECONOMIC DEVELOPMENT SERVICES FOR
FISCAL YEARS 2021/2022, 2022/2023, and 2023/2024
SCOPE OF SERVICES
This scope supports City staff work in Economic Vitality and Community Engagement from the City of Morro Bay 2023-2025 Goals and Short Term Actions.
1. Designated Proactive Representation
a. Serve as the City of Morro Bay’s designee for Economic Development activities by attending regularly scheduled meetings of the REACH Economic Development Practitioners Network, serving on working subcommittees of the Network, and attending quarterly meetings of the Cal Poly Local Economic Development Council. b. Work with the City Manager to plan and hold monthly team meetings for Economic Development, including, as needed, Harbor, Community Development, Finance, and Public Works Departments.
c. Attend Downtown Design District meetings as needed.
d. Assist the new city manager with establishing relationships with the business community, to include hosting meet-and-greet tours with key groups or individuals. e. Meet regularly with property owners and managers to stay current with property availability city-wide and serve as conduit to connect perspective businesses with available properties.
f. Investigate a public-private partnership for the City to enter into with a Downtown business that provides public restrooms.
2. Tactical Execution of ED Strategy
a. Chamber host an Economic Development page content to include “Talking to the City” and “Starting your Business,” developed in collaboration with City staff when appropriate. b. Provide business and entrepreneurship training events (virtual and/or in person) that are available to the general business community on demand-driven topics. Collaborate with SBA funded business resource agencies in the region to deliver this content, as needed. c. Produce Economic development community education engagement opportunities, including the Resilience Roadmaps (Certified Economic Development Strategy) and Offshore Wind.
d. Assist with the establishment of the City’s communications program and create content for the City’s forthcoming communications contractor.
e. Assist the Harbor Department (as requested) with tenant relations, advertising lease opportunities, events and promotions, place-making initiatives, and parking strategies.
f. Provide assistance with City property disposition strategy for properties identified as catalyst, opportunity, and watch sites in the Economic Development Strategic Plan.
3. Business and Applicant Assistance
a. Provide direct assistance to new and existing businesses using the Chamber’s “Roadmap to Success” program and other strategies that expand their marketing channels and equip them with the tools necessary to plan for key challenges that new and existing businesses in Morro Bay may encounter.
b. Provide site selection assistance, and serve as a resource to developers or businesses wishing to locate or expand business in Morro Bay.
01181.0001/799474.1
Lease Agreement
Morro Bay Chamber of Commerce
May 14, 2024
01181.0001/817102.1
Lease Agreement
AGREEMENT
This lease agreement ("Lease") is made and entered by and between the CITY OF MORRO BAY, a California municipal corporation, and hereinafter referred to as "LESSOR" and/or "City," and THE MORRO BAY CHAMBER OF COMMERCE, a California non-profit corporation, hereinafter referred to as "LESSEE" and/or "Chamber."
RECITALS
WHEREAS, LESSOR is the owner of a 2,400-squarefoot office building located at 695 Harbor Street, Morro Bay, CA (the "Premises"); and
WHEREAS, LESSEE is organized to encourage a strong local economy and quality of life by promoting commerce, sound government, and an informed membership and community; and WHEREAS, LESSEE has special knowledge and experience to promote economic and business development, including business attraction and retention programs, for the benefit of LESSOR; and
WHEREAS, LESSOR and LESSEE have mutual interests in enhancing the economic growth and vitality of the community and have entered into agreements for the provisions of economic development services for Fiscal Years 2020/2021, 2021/2022, 2022/2023, 2024/2025 and has or is anticipated to do so for Fiscal Years 2024/25; and
WHEREAS, LESSOR and LESSEE previously entered into a lease agreement for LESSEE to lease the Leased Premises (as defined below) from LESSOR, and that prior lease agreement by its terms has continued on a month-to-month holdover per Section 3 of the FY 2022-23 Lease Agreement since June 30, 2023; and
WHEREAS, LESSOR and LESSEE desire to enter into a new lease agreement for Suites A and B of Premises comprising a combined area of 275 square feet, equal to 11.5 percent of the gross leasable area of the Premises (the “Leased Premises”).
NOW, THERFORE, IT IS AGREED AS FOLLOWS:
1. LEASE: LESSOR hereby leases to LESSEE and LESSEE agrees to accept from LESSOR the lease of the portions of the Leased Premises as described in Section 4., below.
2. RENT: During the term on this Lease, LESSEE agrees to pay the total sum of $2,400.00 for the entirety of the one year lease term, with $200.00 due and payable on the first day of each month for each of the months in Fiscal Year 2024/25, commencing with July 1, 2024 under this agreement (the “Rent”) for the use of the Leased Premises and the Additional Access Areas, defined below. The Rent has been determined to be the fair market value of the Leased
01181.0001/799474.1
Lease Agreement
Morro Bay Chamber of Commerce
May 14, 2024
01181.0001/817102.1
Premises considering the fair market rent for the Leased Premises, the direct economic benefits of LESSEE’s services to City, and LESSEE’s agreement to provide services to the business community in general without regard to such business’s Chamber membership status; provided, however, that Chamber reserves the right to provide preferential and varying tiers of additional service to Chamber members in accordance with its adopted membership program. LESSEE and LESSOR agree the Rent and terms and conditions specified herein are and continue to be material considerations in establishing the terms and conditions of the agreement for economic development services and the LESSOR’s agreement to provide services to the general business community.
3. TERM: The term of this Lease shall commence on July 1, 2024 and terminate without no- tice on June 30, 2025, unless sooner terminated as a herein provided. Any holdover of pos- session of the Leased Premises by LESSEE beyond this Term shall constitute a month-to- month tenancy on the same terms and conditions of this Lease and LESSEE agrees to vacate the Leased Premises upon thirty-days’ prior written notice from LESSOR; provided, that the Rent shall be $200.00 per calendar month due and payable on the first day of each month, commencing with July 1, 2024.
4. LEASED PREMISES: The Leased Premises for purpose of this Lease shall include Suite A and Suite B of Premises that, combined, total approximately 275 square feet. LESSEE shall have access to and use of, but not control of, common areas of the Premises, including both bathrooms, the foyer, the conference room, hallways, entranceways, and the kitchen (the “Additional Access Areas”).
5. USE OF LEASED PREMISES AND THE ADDITIONAL ACCESS AREAS: LESSEE shall use the Leased Premises and the Additional Access Areas solely for the purpose of operation of Chamber business, including, but not limited to, (i) promoting all businesses and services in the City and (ii) providing services described under the Amended and Re-stated Agreement for Economic Development Services, and under other agreements with a similar purpose which City and Chamber may enter into from time to time.
6. FIXTURES AND ALTERATIONS: LESSEE shall not make, or cause to be made, any alterations, additions or improvements, of a substantial nature, or make any structural changes in the building (the "Improvements") without first notifying LESSOR and obtaining prior written approval from LESSOR for the Improvements. In the event the Improvements include any structural change, LESSEE shall supply to LESSOR plans and specifications for such work, and obtain prior written approval. LESSEE shall be responsible for all costs associated with any of the Improvements. All permits necessary for the Improvements, shall be at LESSEE'S expense and obtained prior to any work on any of the Improvements.
7. ITEMS INSTALLED BY LESSEE: All decorations and additions and any of the Improvements in the Lease Premises, except for structural changes, made by LESSEE shall remain the property of LESSEE for the term of this Lease or any extension or renewal thereof.
Upon expiration of this Lease, or any renewal term thereof, LESSEE shall remove all decorations and additions and those portions of the Improvements that are LESSEE property, and
01181.0001/799474.1
Lease Agreement
Morro Bay Chamber of Commerce
May 14, 2024
01181.0001/817102.1
restore the Leased Premises, ordinary wear and tear excepted, to its condition at the time of original occupancy, unless written approval is obtained by LESSOR to allow such decorations, additions or the Improvements to remain.
8. SECURITY: LESSOR agrees to provide locks on doors of the Premises and the Leased Premises, the latter of which isto be used exclusively by LESSEE for the uses described herein, and to provide keys for access to Premises and Leased Premises. LESSOR shall also provide access to the Premises at the rear entrance for others to access the Premises without access to Leased Premises.
9. MAINTENANCE: LESSOR shall be responsible for the overall interior and exterior maintenance of the Premises and Leased Premises, and for the maintenance and repair of major building systems, including HVAC, mechanical, plumbing, and electrical systems and access to telephone, cable, and internet services. LESSOR shall have no duty, obligation, or liability whatever to rebuild and portion of the Premises or surrounding grounds, if any or all of them are destroyed, except at its sole discretion. LESSEE shall be responsible for routine janitorial and maintenance of the Leased Premises and Additional Access Areas and for cable, phone and internet service to the Leased Premises.
10. SURRENDER OF LEASED PREMISES AND ADDITIONAL ACCESS AREAS: At the expiration of the tenancy hereby created, LESSEE shall surrender the Leased Premises and Additional Access Areas in the same condition as the Leased Premises and Additional Access Areas were upon delivery of possession thereto under this Lease, reasonable wear and tear excepted, and damage by unavoidable casualty not within the reasonable control of LESSEE excepted, and shall surrender all keys for the Premises and Leased Premises to LESSOR.
LESSEE shall thereupon remove all its fixtures, and any alterations or improvements as provided above before surrendering the Leased Premises and shall repair any damage to the Leased Premises and Additional Access Areas caused thereby. LESSEE's obligation to observe or perform this covenant shall survive the expiration or other termination of the term of this Lease.
11. INSURANCE: LESSEE shall, during the full term of this Lease, keep in full force and effect an appropriate policy of liability and property damage insurance with respect to the Leased Premises and Additional Access Areas in the minimum amounts of $1,000,000 each. The policies shall name LESSOR and its officers, employees and representatives as additional insureds and shall contain a clause the insurer will not cancel or change the insurance without first giving LESSOR 10-days' prior written notice. LESSEE shall exhibit to LESSOR, at any time upon demand, a certificate of insurance, or other evidence of insurance, and shall keep such policies in effect during the full term of this Lease or any ex- tensions thereof.
12. FIRE, EXTENDED COVERAGE: LESSEE agrees to purchase and maintain, during the full term of this Lease or any extensions thereof, a policy of fire, extended coverage, insurance, which policy shall not be less than 100% of the replacement value of the Leased Premises.
The cost of such insurance shall be at the sole cost of LESSEE.
13. INDEMNIFICATION: LESSEE agrees to indemnify, defend and hold harmless LESSOR, its
01181.0001/799474.1
Lease Agreement
Morro Bay Chamber of Commerce
May 14, 2024
01181.0001/817102.1
offices, directors and agents, from and against any and all claims, actions, damages, liability, expenses, costs and reasonable attorney's fees resulting or related to any loss of life, personal injury or damage to property, or any other liability, arising out of any occurrence related to the Leased Premises, the Additional Access Areas or the occupancy or use by LESSEE of the Leased Premises, the Additional Access Areas or any part thereof, occasioned wholly or in part by any act or omission of LESSEE, its agents, contractors, employees, servants, lessees or concessionaires, or for any act or omission by LESSOR in furtherance of the interests of LESSEE for any reason in connection with this Lease.
14.UTILITIES, COMMON AREA MAINTENANCE & TAXES: LESSEE shall be responsible for their proportion of all charges for heat, water, gas, electricity or any other utility used or consumed on the Premises, including any deposits demanded by any utility. LESSEE agrees to pay, at its sole cost and expense, any possessory interest tax that may be assessed as a result of this Lease.
15. ASSIGNMENT AND SUB-LETTING: LESSEE will not assign this Lease, in whole or in part, nor sub-let all or any part of the Leased Premises.
16. GOVERNMENTAL REGULATIONS: LESSEE shall at LESSEE's sole cost and expense, comply with all of the requirements of all county, municipal, state, federal and other applicable government authorities, now in force, or which may hereafter be in force, pertaining to the Leased Premises, and shall faithfully observe in the use of the Leased Premises all municipal and county ordinances, and all state and federal statutes now, or which may hereafter be, in force, except that LESSEE shall not be required by this provision to meet ADA accessibility standards.
17. DESTRUCTION OF LEASED PREMISES: If the Leased Premises shall be damaged or destroyed by fire, the elements, unavoidable accidents, or other casualty, then all insurance proceeds payable by reason thereof shall be applied to the repair, reconstruction, and renovation of Leased Premises.
18. CONDEMNTATION: In the event any or all of the Premises are taken, in whole or in part, through the exercise of any power of eminent domain exercised by any state, federal or local agency (including LESSOR) having the power thereof, any sums paid by such condemning authority shall be paid to LESSOR. LESSEE hereby waives any and all of its rights and benefits payable under applicable federal or state relocation assistance laws if the City is the condemning authority.
19. DEFAULT: In the event of any failure of LESSEE to perform any of the terms, conditions or covenants of this Lease to be observed or performed by LESSEE for more than 30 days after written notice of such default shall have been given to LESSEE, or if LESSEE shall abandon the Leased Premises and the Additional Access Areas, then LESSOR, be- sides other rights or remedies it may have, shall have the immediate right of reentry and may remove all persons and properties from the Leased Premises and the Additional Access Areas without being deemed guilty of trespass or becoming liable for any loss or dam- age which may be occasioned
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Lease Agreement
Morro Bay Chamber of Commerce
May 14, 2024
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thereby.
20. ENTIRE AGREEMENT: This Lease, and any exhibits attached hereto and forming a part hereof set forth all the covenants, promises, agreements, conditions and understanding between the parties concerning the Leased Premises, and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between them, other than as herein set forth. Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this Lease shall be binding upon either party unless reduced to writing and signed by both.
21. NOTICE: Any notice, demand, request or other instrument which may be required to be given under this Lease shall be deemed delivered when sent by ordinary United States Mail, postage prepaid, addressed to LESSOR care of its City Manager, or LESSEE care of its then acting President.
22. PARTIAL INVALIDITY/SEVERABILITY: If any term, covenant or condition of this Lease, or the application thereof to any person or circumstance shall, to any extent, be in- valid or unenforceable, then the remainder of this Lease, or the application of such term, covenant or condition to persons or circumstances other than those to which it is held invalid, or unenforceable, shall not be affected thereby; and each term, covenant or condition of this Lease shall be valid and be enforced to the fullest extent permitted by law. If the length, term or duration or this Lease, in any way is in violation of any statute, law or Constitution or is invalid for any reason whatsoever, then this Lease shall be deemed a Lease from year to year, and all other provisions hereunder shall remain the same.
23.CALIFORNIA LAW: This Lease shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim or matter arising out of or in relation to this Lease shall be instituted in the Superior Court of the County of San Luis Obispo, State of California.
In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, or such other federal court having jurisdiction in the County of San Luis Obispo, State of California.
24. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES: No officer or employee of the City shall be personally liable to the LESSEE, or any successor in interest, in the event of any default or breach by the LESSOR or for any amount, which may become due to the LESSEE or to its successor, or for breach of any obligation of the terms of this Lease.
25. INTERPRETATION: The terms of this Lease shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Lease or any other rule of construction which might otherwise apply.
26. COUNTERPARTS: This Lease may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
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Lease Agreement
Morro Bay Chamber of Commerce
May 14, 2024
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A facsimile or electronic copy shall be valid for all purposes as though it was an original document.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement this day of May 2024, at Morro Bay, California
CITY OF MORRO BAY MORRO BAY CHAMBER OF COMMERCE
By:
Yvonne Kimball,
City Manager
Attest:
_________________
Dana Swanson,
City Clerk
Approved As To Form:
By:
By:
Jocelyn Brennen, Chief Executive Officer
Chairman, Chamber Board of Directors
Approved As To Form:
Chris F. Neumeyer
City Attorney
Jane Heath, Chamber Counsel
Building Business.
Building Community.
Economic Development
May 14, 2024
Who We Are
501(c)6 of the Internal Revenue Code, a nonprofit entity, a “business league” having a common business interest, purpose is to promote the common business interest through activities directed to the improvement of business conditions.
● Independent non-profit corporation
● 12 member Board of Directors
● 3 Full time Staff
● 13 member Governmental Affairs Committee
● 8 member Ambassador Committee
● 84% of all chamber staff, board, and committee members live and vote in Morro Bay
307 Members | Approx 2,800 Jobs
Question 19:
Size of Member Company
62%
10% 15% 9% 5%
0%
20%
40%
60%
80%
Morro Bay
5 or Fewer 6-10 11-20 21-49 50+
How many employees does your company have?
Facebook 6,600+ followers
Reach since Jan 1, 2023 - 50,878 (organic) 12,421 (paid) Top Age ranges
1. 55-64
2. 65+
3. 45-54
4. 35-44
5. 25-34
6. 18-24
Instagram 2,800+ followers
Reach since Jan 1, 2023 - 14,078
Top Age ranges
1. 35-44
2. 45-54
3. 25-34
4. 55-64
5. 65+
6. 18-24
70% Women, 30% Men – both platforms
We Share Information
Top cities
1. Morro Bay, CA
2. San Luis Obispo, CA
3. Bakersfield, CA
4. Fresno, CA
5. Atascadero, CA
Top cities
1. Morro Bay, CA
2. San Luis Obispo, CA
3. Los Osos, CA
4. Atascadero, CA
5. Paso Robles, CA
Website
Pageviews since Jan 2023 - 32k
Users since Jan 2023 - 16k
How people find our website:
Organic Search 54%
Direct 25%
Organic Social 13%
Newsletter
Goes out to 1175 contacts
on Wednesdays
Morro Bay Life
Based on your experience how valuable are the following services/programs offered by the Chamber to you and your business? (4 is the highest score) Question 3:
Value of Services/Programs
2.39 2.46
2.7 2.71
2.76 2.81
2.83 3.07
3.09 3.11
3.15 3.27
3.29 Ambassadors Committee & Mentor Program
Ribbon Cuttings
Offseason/Midweek Promotional Event
Listening Tours & Report-Outs
Annual Gala with Community/Business…
Breakfast on the Bay Series
Membership Mixers
Weekly Newsletters/Eblast
Member Promotion
Business to Business Referral…
Governmental Affairs & Advocacy
Economic Development Services for City of…
Legislative & Advocacy Events
Cal Poly Local Economic Development
Council (LEDC)
Small Business Development Center
Workforce Development Board
Center for Innovation and
Entrepenuership
Visit Morro Bay
Local and Regional Partners
Economic Development Practitioners
Network (PN)
Economic Development Strategic Plans
CA GoBiz and EDA funding opportunities
Downtown Revitalization projects
SCORE
The Womens Business Center
2023
Listening
Tour
“Collaboration between
the public and private
sectors is positive.”
● Inclusive report outs
● One Morro Bay
● Direct contact with
City Department
Heads and City
Council
● Accurate and timely
response and action
taken collaboratively
How We Shared & Processed
Findings
Business
Attraction
Inventory of city vacancies that are
zoned for business purposes.
Database that is updated monthly
of listed vacancies, address,
zoning and square footage.
Updated database that is used as
a business attraction tool to
provide site selection for new or
expanding business.
Business
Retention
Conduct an annual survey of Morro Bay
business license holders' health, online, through
direct mail, and by phone samples. Survey
questions to be compiled with input from the
City and Chamber to determine which
businesses have plans to grow locally or
downsize, relocate or close. This survey would
also include information on key supply chain
businesses and employment data. Adequate
response level to the survey. Survey results
analyzed for business retention purposes.
Provide a data-informed report of growing
businesses and their needs, declining or retiring
businesses, and sustaining businesses.
Business
Liaison
Serve as the City of Morro Bay’s designee for
Economic Development activities by attending
regularly scheduled meetings of the Economic
Development Practitioners Network, serving on
working subcommittees of the Network, attend
Chamber Workforce Development. Attendance
and summary of meetings reported monthly to
City Manager and Community Development
Director. City made aware of any grant
opportunities or action items from regional
meetings. Total of 12 meetings budgeted.
Additional meetings billed under additional
services item below.
Business
Liaison
Work with the City Manager/ Community
Development Director to hold regular team
meetings for Economic Development, including,
as needed, Harbor, Community Development,
Finance, and Public Works Departments.
Facilitate industry sector meetings with
businesses and City staff and Council. By
regular communication between Chamber and
City departments related to business matters
business and city relationships are improved.
City staff is informed of economic development
efforts and issues related to the business
community. Facilitate up to two industry specific
meetings with City staff and Council.
Thank You!
[email protected]