AGREEMENT TO ADMINISTER THE REDONDO BEACH TRAVEL & TOURISM
DISTRICT BETWEEN THE CITY OF REDONDO BEACH AND
REDONDO BEACH TRAVEL & TOURISM
This Agreement, dated January 8, 2019, is by and between the City of Redondo Beach, a chartered municipal corporation (" City"), and Redondo Beach Travel & Tourism, a California nonprofit corporation ("Contractor"), collectively referred to as the "Parties".
RECITALS
A. On June 19, 2018, in accordance with California Streets and Highways Code Section 36600 et seq., the City Council of the City of Redondo Beach ( hereinafter City Council") adopted Resolution No. CC- 1806- 031 declaring its intent to establish the Redondo Beach Tourism Marketing District ("RBTMD"), a benefit assessment district for the purpose of funding activities that benefit the payors through the levy of a special assessment on lodging businesses, comprised of twenty (20) rooms or more, within the RBTMD, as set forth in the Management District Plan.
B. On August 21, 2018, the City Council adopted Resolution No. CC- 1808-053 establishing the RBTMD.
C. Pursuant to California Streets and Highways Code Section 36612, the City Council designated Contractor as the Owners' Association for the RBTMD to administer and implement the services described in the Management District Plan.
D. California Streets and Highways Code Section 36651 requires the City to contract with the Owners' Association for provision of RBTMD services.
E. The City and Contractor desire to enter into this Agreement to set forth the parties' respective roles and responsibilities in administering and implementing the RBTMD, on the terms and conditions below.
AGREEMENT
NOW, THEREFORE, the parties agree as follows:
1. Engagement. City hereby retains Contractor to provide the services described in Exhibit "A". Contractor accepts such engagement.
2. Term. The term of this Agreement shall be in accordance with Exhibit "B".
3. Exhibits. This Agreement consists of this Agreement, all attached exhibits, and any other documents specifically incorporated into this Agreement. 1 Ir;
a. Exhibit "A": Project Description/Scope of Services
b. Exhibit "B": Schedule for Completion
c. Exhibit "C": Compensation
d. Exhibit "D": Insurance Requirements for Contractors
e. Exhibit" E": Agreement to Comply with California Labor Law Requirements
4. Independent Contractor. No relationship of employer and employee is created by this Agreement; it being understood and agreed that Contractor is an Independent Contractor. Contractor is not the agent or employee of the City in any capacity whatsoever, and the City shall not be liable for any acts or omissions by Contractor nor for any obligations or liabilities incurred by Contractor.
a. Contractor shall have no claim under this Agreement or otherwise, for seniority, vacation time, vacation pay, sick leave, personal time off, overtime, health insurance, medical care, hospital care, retirement benefits, social security, disability, Workers' Compensation, unemployment insurance benefits, civil service protection, or employee benefits of any kind.
b. Contractor shall be solely liable for and obligated to pay directly all applicable payroll taxes (including federal and state income taxes) or contributions for unemployment insurance or old age pensions or annuities which are imposed by any governmental entity in connection with labor used or which are measured by wages, salaries or other remuneration paid to its officers, agents or employees and agrees to indemnify and hold City harmless from any and all liability which City may incur because of Contractor's failure to pay such amounts.
c. In carrying out the work contemplated herein, Contractor shall comply with all applicable federal and state Workers' Compensation and liability laws and regulations with respect to the officers, agents and/or employees conducting and participating in the work; and agrees that such officers, agents, and/ or employees will be considered Independent Contractors and shall not be treated or considered in any way as officers, agents and/ or employees of City.
d. Contractor agrees to perform its work and functions at all times in strict accordance with all applicable federal, state, county and city laws, resolutions, regulations, titles, departmental procedures and currently approved methods and practices in the field; and that the sole interest of City is to ensure that said service shall be performed and rendered in a competent, efficient, timely and satisfactory manner and in accordance with standards required by the City.
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e. Notwithstanding the foregoing, if the City determines that pursuant to state and federal law Contractor is an employee for purposes of income tax withholding, City may upon two ( 2) week's written notice to Contractor, withhold from payments to Contractor hereunder federal and state income taxes and pay said sums to the federal and state governments.
5. Indemnification. To the maximum extent permitted by law, Contractor hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collectively "Indemnitees") from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of Contractor's performance or work hereunder (including any of its officers, agents, employees, Subcontractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Contractor or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
a. Nonwaiver of Rights. Indemnitees do not and shall not waive any rights that they may possess against Contractor because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
b. Waiver of Right of Subrogation. Contractor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
6. Insurance. Contractor shall comply with the requirements set forth in Exhibit D". Insurance requirements that are waived by the City's Risk Manager do not require amendments or revisions to this Agreement. Contractor affirms that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of the Code and Contractor further assures that it will comply with such provisions before commencing the performance of work under this Agreement.
Contractor shall furnish to City certificate(s) of insurance evidencing Worker's Compensation Insurance coverage to cover its employees, and Contractor 3 O*
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shall require all subcontractors similarly to provide Workers' Compensation Insurance as required by the Labor Code of the State of California for all of Contractor's and subcontractors' employees. Contractor shall provide Workers' Compensation insurance, as applicable, at Contractor's own cost and expense. Neither Contractor nor its carrier shall be entitled to recover from City any costs, settlements, or expenses of Workers' Compensation claims arising out of this Agreement.
7. Conformity with Law.
a. In performing services under this Agreement, Contractor shall observe and comply with all applicable laws, resolutions, codes and regulations of governmental agencies, including federal, state, municipal, and local governing bodies, having jurisdiction over the scope of services, including all applicable provisions of the California Occupational Safety and Health Act. Contractor shall indemnify and hold City harmless from any and all liability, fines, penalties and consequences from any of Contractor's failures to comply with such laws, resolutions, codes and regulations. b. If a death, serious personal injury or substantial property damage occurs in connection with Contractor's performance of this Agreement, Contractor shall immediately notify the City. Contractor shall promptly submit to City a written report, in such form as may be required by City of all accidents, which occur in connection with this Agreement. This report must include the following information:
1) Name and address of the injured or deceased person(s); 2) Name and address of Contractor's sub-contractor, if any; 3) Name and address of Contractor's
liability insurance carrier; and
4) A detailed description of the accident and whether any of City's equipment, tools, material, or staff were involved.
c. Contractor further agrees to take all reasonable steps topreserve all physical evidence and information, which may be relevant to the circumstances surrounding a potential claim, while maintaining public safety, and to grant to the City the opportunity to review and inspect such evidence, including the scene of the accident.
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8. Payment. Payment shall be in accordance with Exhibit "C" of this Agreement.
9. Taxes. Payment of all applicable federal, state and local taxes shall be Contractor's sole responsibility.
10. Ownership of Documents.
a. Contractor hereby agrees to provide to a private nonprofit successor all proposals, plans, specifications, designs, drawings, sketches, renderings, models, reports and related documents (including computerized or electronic copied) upon the dissolution of the corporation. Contractor further agrees to assign the City and its assignees all copyright and other use rights in any and all proposals, plans, specifications, designs, drawings, sketches, renderings, models, reports and related documents including computerized or electronic copies) respecting in any way the subject matter of this Agreement, whether prepared by the City, the Contractor, the Contractor's subcontractors or third parties at the request of the Contractor (collectively, "Documents and Materials"). This explicitly includes electronic copies of all above stated documentation. b. Contractor warrants and represents that it has secured all necessary licenses, consents or approvals necessary to the production of the Documents and Materials.
c. Contractor shall be permitted to retain copies, including reproducible copies and computerized copies of Documents and Materials. Contractor agrees to take such further steps as may be reasonably requested by City to implement any assignment. Contractor further hereby grants the City and any assignee of the City an express royalty, a free license to retain and use said Documents and Materials and reproduce the Documents and Materials for any purpose. The City's rights under this paragraph shall apply regardless of the degree of completion of the Documents and Materials and whether or not Contractor's services set forth in Exhibit "A" of this Agreement have been fully performed or paid. d. Contractor shall pay all royalties and license fees which may be due for any patented or copyrighted materials, methods or systems selected by Contractor and incorporated into the work as set forth in Exhibit "A", and shall defend, indemnify and hold the City harmless from any claims for infringement of patent or copyright arising out of such selection. e. In the event the use of any of the Documents and Materials or other deliverables hereunder by the City is held to constitute an infringement and the use of any of the same is enjoined, Contractor, at its expense, shall:
a) secure for the City the right to continue using the Documents and 5 offaoa
Materials and other deliverables by suspension of any injunction, or by procuring a license or licenses for the City; or (b) modify the Documents and Materials and other deliverables so that they become non- infringing while remaining in compliance with the requirements of this Agreement.
The Contractor's covenants under this section shall survive the expiration or termination of this Agreement.
f. Contractor shall comply with the California Public Records Act, Government Code Section 6250 et seq. with respect to the disclosure of the Documents and Materials.
g. Contractor shall defend, indemnify and hold the City, and its elected officials, officers, employees, servants, attorneys, designated volunteers and agents serving as independent contractors, harmless from any loss, claim or liability in any way related to a claim that the City' s use of any of the Documents and Materials is violating federal, state or local laws, or any contractual provisions, or any rights or laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting intellectual property rights or interests in products, ideas or inventions.
Contractor shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the Documents and Materials produced under this Agreement.
11. Conflicts of Interest. Contractor covenants that it presently has no interest, and shall not have any interest, direct or indirect, which would conflict in any manner with performance of services required under this Agreement.
12. Notices. All notices, requests, demands, or other communications under this Agreement shall be in writing. Notices shall be given for all purposes as follows:
a. Personal delivery. When personally delivered to the recipient, notices are effective on delivery.
b. First Class Mail. When mailed first class to the last address of the recipient known to the party giving notice, notice is effective three (3) mail delivery days after deposit in a United States Postal Service office or mailbox.
c. Certified Mail: When mailed certified mail, return receipt requested, notice is effective on receipt, if delivery is confirmed by a return receipt. 6 O
ns.,
d. Overnight Delivery. When delivered by overnight delivery with charges prepaid or charged to the sender's account, notice is effective on delivery, if delivery is confirmed by the delivery service. e. Addresses for purpose of giving notice are as follows:
Contractor: Redondo Beach Travel & Tourism
260 Portofino Way
Redondo Beach, CA 90277
Attn: Rebecca Elder, Chairperson of the Board
City: City of Redondo Beach
Waterfront and Economic Development Department
415 Diamond Street
Redondo Beach, CA 90277
Attn: Laurie Koike, Manager, Waterfront and
Economic Development
Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified shall be deemed effective as of the first date that said notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger, or overnight delivery service.
Any party may change its address by giving the other party notice of the change in any manner permitted by this Agreement.
13. Use of City Property. Contractor shall not use City property, including equipment, instruments and supplies, or personnel for any purpose other than in the performance of its obligations under this Agreement.
14. Equal Employment Opportunity Practices Provisions. Contractor certifies that it is in compliance with the Equal Employment Opportunity Requirement of Executive Order 11246, as amended by Executive Order 11375 and supplemented I 45CFR, Part 60, Title VII of the Civil Rights Act and any other federal or state laws pertaining to equal employment opportunity and that it shall not discriminate on the basis of any non-merit factor, including without limitation, race, color, religion, age, sex, sexual orientation, national origin, ancestry, marital status, political affiliation, disability or physical or mental condition, in matters pertaining to recruitment, hiring, training, upgrading, transfer, compensation or termination.
a. In all solicitations or advertisements for applicants for employment placed as a result of this Agreement, Contractor shall state that it is an " Equal 7 R,
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Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, creed, color, disability, sex, sexual orientation, national origin, age, religion, Vietnam era Veteran' s status, political affiliation, or any other non- merit factor, in accordance with requirements of local, state, and federal law. b. Contractor shall certify that in the performance of this Agreement, it has not discriminated against applicants or employees because of their race, creed, color, disability, sex, sexual orientation, national origin, age, religion, Vietnam era Veteran' s status, political affiliation, or any other non-merit factor, in accordance with requirements of local, state, and federal law. c. In accordance with applicable state and federal law, Contractor shall allow duly authorized county, state, and federal representatives access to its employment records during regular business hours in order to verify compliance with the nondiscrimination provisions of this section, except to the extent such records or portions of such records are confidential or privileged under state or federal law.
d. Nothing contained in this Agreement shall be construed in any manner to require or permit any act, which is prohibited by law.
e. Contractor shall include the provisions set forth in this Section in each of its subcontracts.
15. Compliance with Licensing Requirements. Contractor shall comply with all necessary licensing requirements and shall obtain appropriate licenses and display the same in a location that is reasonably conspicuous, and file copies of the same with the City.
16. Business License. Contractor shall obtain a Redondo Beach Business License before performing any services required under this Agreement. The failure to obtain such license shall be a material breach of this Agreement and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual circumstances without necessitating any modification of this Agreement to reflect such waiver. 8 17. Audits and Records Access.
a. Contractor shall make available to the City, its authorized agents, officers, or employees, for examination any and all ledgers, books of accounts, invoices, vouchers, cancelled checks, and other records or documents evidencing or relating to the expenditures and disbursement of RBTMD assessment funds, and shall furnish to the City, within sixty (60) days after examination, its authorized agents, officers or employees such other evidence or information as the City may require with regard to any such expenditure or disbursement charged by Contractor.
b. Contractor shall maintain full and adequate records in accordance with City requirements to show the actual costs incurred by the Contractor in the performance of this Agreement. If such books and records are not kept and maintained by Contractor within the City, Contractor shall, upon request of the City, make such books and records available to the City for inspection at a location within the City or Contractor shall pay to the City the reasonable and necessary costs incurred by the City in inspecting Contractor's books and records, including, but not limited to, travel, lodging and subsistence costs. Contractor shall provide such assistance as may be reasonably required in the course of such inspection. The City further reserves the right to examine and re-examine said books, records and data during the four (4) year period following termination of this Agreement or completion of all work hereunder, as evidenced in writing by the City, and Contractor shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any manner whatsoever for four (4) years after the City makes the final or last payment or within four (4) years after any pending issues between the City and Contractor with respect to this Agreement are closed, whichever is later.
c. Contractor shall conduct an annual audit and provide the audit results to the City.
18. Documents and Materials. Contractor shall maintain and make available to City for its inspection and use during the term of this Agreement, all documents, contracts, subcontracts, receipts, invoices, plans, collateral, advertisements and other paper or electronic writings and other materials used for the provision of services under this Agreement (collectively "Instruments"). Contractor's obligations shall continue for four (4) years following termination or expiration of this Agreement, and Contractor shall in no event dispose of, destroy, alter or cow
mutilate said Instruments, for four (4) years following the City's last payment to Contractor under this Agreement.
19. Time of Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.
20. Termination. City may terminate this Agreement as follows. a. City shall also have the right to suspend this Agreement immediately with written notice to the Contractor in the event City disestablishes the RBTMD after finding there has been misappropriation of funds, malfeasance, or other violations of law have occurred in connection with the management of the RBTMD. City retains the right to immediately commence disestablishment proceedings in accordance with Streets and Highways Code Section 36670, which provides in pertinent part that "[ a] ny district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the City Council. To adopt the resolution, ( 1) the City Council must find there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district and a noticed hearing on disestablishment is held, or (2) in the thirty ( 30) day period following the anniversary of the RBTMD's formation, businesses owners paying fifty percent (50%) or more of the assessment file a written protest with the City and a hearing on disestablishment is held.
b. In the event City terminates this Agreement as provided in this section, City may procure upon such terms and in such manner as City may deem appropriate, services similar in scope and level of effort to those terminated, and Contractor shall be liable to City for all its costs and damages, including, but not limited to, any excess costs for such services. c. In the event the RBTMD is disestablished, expires, or otherwise terminates, or the Contractor ceases to be a nonprofit corporation, all remaining revenue, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, shall be refunded in the manner described in California Streets and Highways Code Section 36671.
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d. The rights and remedies of this Agreement are not exclusive and are in addition to any other rights or remedies provided by law or under this Agreement.
21. Choice of Law. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the County of Los Angeles, Southwest Judicial District.
22. Advertising or Publicity. Contractor shall not use, reproduce or copy the seal of the City and shall not represent the City in an official capacity as spokesperson or officer or agent or use the name City of Redondo Beach, or the names of the City' s officers, directors, employees or agents, in advertising or publicity releases or otherwise without securing the prior written consent of the City in each instance unless set forth in this Agreement. Nothing in this section prohibits Contractor from using the name Redondo Beach Tourism Marketing District or City of Redondo Beach for regional identification for promotion and marketing of the RBTMD.
23. Modification of Agreement. This Agreement may be supplemented, amended or modified only by mutual agreement of the parties; however, this Agreement shall be subject to any amendments to the RBTMD Management District Plan adopted by the City Council pursuant to California Streets and Highways Code Section 36600 et seq. No supplement, amendment or modification of this Agreement, except for a duly adopted amendment to the RBTMD Management District Plan, shall be binding, unless it is in writing and signed by authorized representatives of both parties.
24. Authority. City warrants and represents that upon City Council approval, the Mayor of the City of Redondo Beach is duly authorized to enter into and execute this Agreement on behalf of City. The party signing on behalf of Contractor warrants and represents that he or she is duly authorized to enter into and execute this Agreement on behalf of Contractor, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Agreement on behalf of Contractor.
25. Conflicting Provisions. In the event of a conflict between the terms and conditions of this Agreement and those of any exhibit or attachment hereto, this Agreement proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those 11 o".
prepared by the City shall prevail over those prepared by Contractor.
26. Integration. This Agreement supersedes and merges all previous understandings, and all other agreements, written or oral, between the parties and sets forth the entire understanding of the parties regarding the subject matter thereof. This Agreement may not be modified except by a written document signed by both parties.
27. Assurance of Performance. If at any time the City has good objective cause to believe Contractor may not be adequately performing its obligations under this Agreement or that Contractor may fail to complete services as required by this Agreement, City may request from Contractor prompt written assurances of performance and a written plan acceptable to City, to correct the observed deficiencies in Contractor's performance. Contractor shall provide such written assurances and written plan within thirty ( 30) calendar days of its receipt of City's request and shall thereafter diligently commence and fully perform such written plan.
28. Subcontracting/Assignment. Contractor shall not subcontract, assign or delegate any portion of this Agreement or any duties or obligations hereunder without the City's prior written approval.
a. Neither party shall contract on behalf of or in the name of the other party.
Any agreement that violates this Section shall confer no rights on any party and shall be null and void.
b. Contractor may use subcontractors to provide any portions of the service identified in Exhibit "A" without prior written consent of the City; provided, however, that the subcontractors shall be properly skilled professionals and technical personnel.
c. Contractor shall ensure compliance by its subcontractors with all the terms of this Agreement, regardless of the terms of any agreement between Contractor and its subcontractors.
d. An assignment shall constitute the sale, assignment, transfer or other disposition, on a cumulative basis, of twenty-five percent (25%) or more of the ownership interest in Contractor or twenty-five percent (25%) or more the voting control of Contractor (whether Contractor is a corporation, limited liability company, partnership, joint venture or otherwise). Further, 12 the involvement of Contractor or its assets in any transaction or series of transactions ( by way of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Agreement or Contractor's assets occurs, which reduces Contractor's assets or net worth by twenty-five percent (25%) or more shall also constitute an assignment for purposes of this Agreement.
29. Non-Exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Contractor hereunder shall be non-exclusive, and City reserves the right to employ other contractors in connection with the project.
However, City may not use any RBTMD assessment funds for said services.
30. Non- Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Agreement.
31. Survival. The obligations of this Agreement, which by their nature would continue beyond the termination or expiration of the Agreement, including without limitation obligations regarding indemnification, ownership of documents, and conflicts of interest, shall survive termination or expiration for two (2) years.
32. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, unenforceable, or invalid in whole or in part for any reason, the validity and enforceability of the remaining provisions, or portions of them, will not be affected, unless an essential purpose of this Agreement would be defeated by the loss of the illegal, unenforceable, or invalid provision.
33. Claims. Any claim by Contractor against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six (6) months after accrual of the cause of action.
34. Waiver. The waiver by the City of any breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach. 13 r
IN WITNESS WHEREOF, the parties have executed this Agreement in Redondo Beach, California, as this 8th day of January, 2019.
CITY OF REDONDO BEACH REDONDO BEACH TRAVEL & TOURISM
By:
William C. Brand, Mayor Name: 0,hala C-7( tere--
Title: 416 CIS TT
ATTEST: APPROVED:
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Eleanor Manzano, Cit lerk Jill Buc olz, • isk Manager
APPROVED AS TO FORM:
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Michael W. Webb, City Attorney
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14 EXHIBIT " A"
PROJECT DESCRIPTION / SCOPE OF SERVICES
A. CONTRACTOR'S DUTIES
Contractor shall render professional services in accordance with the RBTMD Management District Plan and shall provide work program coordination consisting of program development and implementation, program administration, and financial reports for the RBTMD. These services shall include the following duties.
1. Cooperate with City in the performance of all work hereunder.
2. Provide projects, programs and activities that benefit businesses within the RBTMD in accordance with the RBTMD Management District Plan attached hereto and incorporated by reference, and any subsequent amendments thereto.
3. Perform duties as provided in California Streets and Highways Code Section 36600 et seq., including but not limited to, the following. a. Prepare the Annual Report, which shall include the following items.
1. Any recommended changes to boundaries;
2. The improvements and activities to be provided for that fiscal year;
3. An estimate of cost for providing the improvements and activities;
4. The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his/ her business for that fiscal year;
5. The amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and
6. The amount of any contributions to be made from sources other than assessments.
b. Deliver the Annual Report within ninety (90) days following September 1st of each year of the RBTMD' s term.
c. Provide a full disclosure financial statement, including supporting documentation of all revenues and expenditures covering the period from September 1, 2018 to August 31, 2019.
4. Develop and maintain financial records related to receipt and/ or expenditure of all funds received from City.
15 5. Maintain its books and records in accordance with generally accepted accounting principles ( GAAP), and in such form as will facilitate accurate preparation of necessary fiscal reports and in such form as required by the City.
B. CITY'S DUTIES
1. Collect assessments, using reasonable efforts for the collection of delinquent assessments. Promptly disburse RBTMD assessment funds collected by the City to the Contractor.
2. Review the Contractor's work plan and end-of year-report. 16 2018- 2023
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REDONDO BEACH TOURISM MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
Preparedpursuant to the Property and Business Improvement District Law oo,„
of1994, Streets and Highways Code section 36600 et seq. h l l St 1 `, ? O
CONTENTS
I. OVERVIEW 2
II. BACKGROUND 4
III. BOUNDARY 5
IV. BUDGET AND SERVICES 6
A. Annual Service Plan 6
B. Annual Budget 7
C. California Constitutional Compliance 8
D. Assessment 10
E. Penalties and Interest 11
F. Time and Manner for Collecting Assessments 12
V. GOVERNANCE 13
A. Owners' Association 13
B. Brown Act and California Public Records Act Compliance 13 C. Annual Report 13
APPENDIX 1 — LAW 14
APPENDIX 2— ASSESSED BUSINESSES 25
Prepared by
Civitas
CIVITAS PARTNERSHIPS PROGRESS PROSPERITY
800) 999- 7781
www.civitasadvisors.com
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I. OVERVIEW
Developed by Redondo Beach lodging businesses and the City ofRedondo Beach, the Redondo Beach Tourism Marketing District (RBTMD) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors.
Location: The proposed RBTMD includes all licensed lodging businesses comprised of twentyfiY 20) rooms or more located within the boundaries of the City of Redondo Beach, as shown on the map in Section III.
Services: The RBTMD is designed to provide specific benefits directly toors a byincreasing ncreasng
room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.
Budget: The total RBTMD annual budget for the initial year of its five ( 5) Year operation p is
anticipated to be approximately $ 785,000. This budget is expected to fluctuate as room sales and the assessment rate do. The estimated budget for each year of the RBTMD' s five (5) year term is provided in Section IV(B).
Cost: The annual assessment rate is one percent ( l%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any Federal or State officer when on official business; stays by any officer, employee or consultant/ contractor of the City when on official business; stays by any officer or employee of a foreign government who is exempt by reason of express provisions ofFederal law or international treaty; and that portion of gross short-term room rental revenue allocable to food and beverage products ofevery kind provided by the lodging business for consumption by transients and invitees of transients. Long term contract renters shall receive a partial exemption from the assessment as described in Section IV(D). During the five ( 5) year term, the assessment rate may be increased by the Redondo Beach Travel & Tourism Board to a maximum of two percent (2%) of gross short-term room rental revenue as described in Section IV(D).
Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business, comprised of twenty (20) rooms or more, located in the boundaries of the RBTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business, comprised of twenty (20) rooms or more.
Duration: The proposed RBTMD will have a five ( 5) year life, beginning September 1, 2018 through August 31, 2023. Once per year, beginning on the anniversary of RBTMD formation, there is a
thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on RBTMD termination.
RBTMD Management District Plan 2
August 15,20180*wo•
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Management: Redondo Beach Travel & Tourism ( RBTT) will serve as the RBTMD' s Owners' Association. The Owners' Association is charged with managing funds and implementing programs in accordance with this Plan and must provide annual reports to the City Council.
RBTMD Management District Plan 3
August 15, 2018
a M,
II. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over ninety California destinations have followed suit. In recent years, other states have begun adopting the California model—Montana, South Dakota, Washington, Colorado, Texas, and Louisiana have adopted TMD laws. Several other states are in the process ofadopting their own legislation. The cities ofWichita, Kansas and Newark, NewJersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.
100 - Number of Districts Operating in California95 99 101 California' s TMDs collectively 88 raise over $ 267 million
80 75 annually for local destination
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Lc) lD O O O O O O O O O O O O O O O O O CD 00 CDO O CD CD CD O O CD CD CD N I—, I- A I-, CO ui o N W 1 V ° o CD O W . TMDs utilize the efficiencies of private sector operation in
the market-based promotion of tourism districts. TMDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TMD pay an assessment and those funds are used to provide services that increase room night sales.
In California, TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is thatfunds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TMDs:
Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
Funds cannot be diverted to general government programs; They are customized to fit the needs of payors in each destination; They allow for a wide range of services;
They are designed, created andgoverned by those who willpay the assessment; and They provide a stable, long-term funding source for tourism promotion.
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August 15, 2018
III. BOUNDARY
The RBTMD will include all licensed lodging businesses comprised of twenty ( 20) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City ofRedondo Beach.
Lodging business means: any structure, or any portion ofany structure, which is occupied or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes and shall include any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure, or portion thereof.
The boundary, as shown in the map below, currently includes fifteen ( 15) lodging businesses, comprised of twenty ( 20) rooms or more. A complete listing of lodging businesses, comprised of twenty (20) rooms or more, within the proposed RBTMD can be found in Appendix 2.
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RBTMD Management District Plan 5
August 15, 2018
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IV. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and servicesprovided with the RBTMD funds are sales and marketing programs available only to assessed businesses.
A service plan budget has been developed to deliver services that benefit the assessed businesses. A detailed annual budget will be developed and approved by RBTT. The table below illustrates the initial annual budget allocations. The total initial budget is $ 785,000.
Initial Annual Budget - $785,000
Contingency/
Reserve, $ 23,550,
Administration, 3%
78, 500, 10%
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Sales& Marketing,
682, 950, 87%
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the RBTT Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent( 15%) of the total budget year.
A description of the proposed improvements and activities for the initial year of operation is below.
The same activities are proposed for subsequent years. In the event of a legal challenge against the RBTMD, any and all assessment funds may be used for the costs ofdefending the RBTMD.
Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures ( GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.
The costs of an individual staffmember may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the RBTT on an as- needed basis.
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August 15, 2018
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Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Redondo Beach as a desirable place for overnight visits. The RBTT may contract with third parties to administer and implement the programs. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; Print ads in magazines and newspapers, television ads, and radio ads targeted atpotential visitors to drive overnight visitation and room sales to assessed businesses; Attendance of trade shows to promote assessed businesses; Sales blitzes for assessed businesses;
Familiarization tours of assessed businesses;
Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses;
Attendance of professional industry conferences and affiliation events to promote assessed businesses;
Lead generation activities designed to attract tourists and group events to assessed businesses; Promotion of special events designed to drive overnight visitation and room sales to assessed businesses;
Development and implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to increase overnight visitation at assessed businesses;
Development and maintenance of a website designed to promote assessed businesses; Development of a marketing plan to ensure RBTMD funds are strategically spent to market Redondo Beach assessed lodging businesses; and
Development of Return on Investment ( ROI) analysis on effectiveness of district funds to improvement effectiveness and increase overnight visitation at assessed businesses.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees.
Contingency/ Reserve
The budget includes a
contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the RBTT Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure ofmonies from the reserve fund shall be set by the RB'F1' Board. Contingency/ reserve funds may be spent on RBTMD programs or administrative and renewal costs in such proportions as determined by the RB'1' 1' Board. The reserve fund may be used for the costs ofrenewing the RBTMD.
B. Annual Budget
The total five ( 5) year improvement and service plan budget is projected at approximately $785,000 annually, or approximately $ 7, 133, 197 through 2023 if the maximum assessment rate increases are adopted. The annual budget is expected to fluctuate as room sales change, as businesses open and close, and if the assessment rate is increased. If the maximum annual assessment rate increases are RBTMD Management District Plan 7
August 15, 2018
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adopted by the RBTT Board, the annual budget will increase as estimated in the table below. The assessment rate may or may not increase starting in fiscal year 2019- 20, the increases may be implemented beginning in fiscal year 2019- 20 or in later years at the discretion of the RBTT Board.
The budget may also increase as new hotel inventory is added. The table below demonstrates the estimated maximum budget with the assumption that the assessment rate will be increased at the earliest opportunity as it is a required disclosure, it is not the anticipated course ofaction. Additionally, Y a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result ofRBTMD efforts.
Estimated Annual Budget if Maximum Assessment Rates Are Adopted Fiscal Year
Sales&
Administra i
Contingency/ Assessment
Marketing
ton
Reserve
Total
Rate
87% 10% 3% 100%
2018-19 682,950.00 $ 78,500.00 $ 23, 550.00 $ 785,000.00 1. 0% 2019-20 $ 1, 055, 157. 75 $ 121,282. 50 $ 36,384.75 $ 1, 212, 825. 00 1. 5% 2020-21 $ 1,445,460.60 $ 166, 144.90 $ 49,843. 47 $ 1, 661,448.97 2. 0% 2021-22 $ 1, 488,824.42 $ 171, 129. 24 $ 51,338.77 $ 1, 711, 292.44 2. 0% 2022-23 $ 1, 533,489. 15 $ 176,263. 12 $ 52, 878.94 $ 1, 762, 631. 21 2. 0% Total 6, 205,881.92 $ 713,319.76 $ 213,995. 93 $ 7, 133, 197. 61 The table below demonstrates the estimated maximum budget with the assumption that the assessment rate will not be increased during the RBTMD' s five ( 5) year term. A three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result ofRBTMD efforts.
Estimated Annual Budget if Maximum Assessment Rates Are Not Adopted Fiscal Year
Sales&
Administration Contingency/ Assessment
Marketing Reserve
Total
Rate
87% 10% 3% 100%
2018-19 682,950.00 $ 78, 500.00 $ 23, 550.00 $ 785,000.00 1. 0% 2019-20 703,438.50 $ 80,855.00 $ 24, 256.50 $ 808,550.00 1. 0% 2020-21 724,541. 66 $ 83, 280.65 24,984.20 $ 832,806.50 1. 0% 2021-22 746,277.90 $ 85, 779.07 25, 733. 72 $ 857,790.70 1. 0% 2022-23 768,666.24 $ 88,352.44 26,505.73 $ 883, 524.42 1. 0% Total 3, 625,874.30 $ 416,767. 16 $ 125,030. 15 $ 4, 167, 671. 61 C. California Constitutional Compliance
The RBTMD assessment is not a
property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term `assessments' to levies on real property.
1 Rather, the RBTMD assessment is a business- based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.
Two of these exceptions apply to the RBTMD, a " specific benefit" and a " specific government service." Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.
Jarvis v. the City ofSan Diego 72 Cal App. 4th 230
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1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, " a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."
2 The services in this Plan are designed to provide targeted g benefits directlyto assessed
businesses, and are intended only to provide benefits and services directly to those businessesapYing the assessment. These services are tailored not to serve the general public, businesses in general, or parcels ofland, but rather to serve the specific lodging businesses, comprised of twenty( 20) rooms or more, within the RBTMD. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses, comprised of twenty (20) rooms or more, within the boundaries of the RBTMD, and are narrowly tailored. RBTMD funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in RBTMD programs, or to directly generate sales for non.assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.
The assessment imposed by this RBTMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses, comprised of twenty ( 20) rooms or more, paying the district assessment, with marketing and sales programs promoting lodging businesses paying the RBTMD assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses, comprised of twenty (20) rooms or more. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, comprised of twenty ( 20) rooms or more, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses, comprised of twenty (20) rooms or more.
Although the RBTMD, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, "A specific benefit is not excluded from classification as a ` specific benefit' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence ofproviding the specific benefit to the payor." 3 2. Specific Government Service
The assessment may also be utilized to provide, " a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.' The legislature has recognized that marketing and promotions services like those to be provided by the RBTMD are government services within the meaning ofProposition 26'. Further, the legislature has determined that " a specific government service is not excluded from classification as a ` specific government service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence ofproviding the specific government service to the payor." 6 2
Cal. Const. art XIII C § 1( e)( 1)
3 Government Code§ 53758( a)
Cal. Const. art XIII C § 1( e)( 2)
5 Government Code § 53758( b)
6 Government Code§ 53758( b)
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3. Reasonable Cost
RBTMD services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the RBTT, and reports submitted on an annual basis to the City. Only assessed lodging businesses, comprised of twenty (20) rooms or more, will be featured in marketing materials, receive sales leads generated from RBTMD-funded activities, be featured in advertising campaigns, g and benefit from other RBTMD-funded services. Non-assessed lodging businesses will not receive these, nor any other, RBTMD-funded services and benefits.
The RBTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion orramro p g generating those room nights shall be paid with non-RBTMD funds. RBTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion ofany program which directly generates incidental room nights for non-assessed businesses.
D. Assessment
The annual assessment rate is one percent ( 1%) of gross short term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any Federal or State officer when on official business; stays by any officer, emp Y to ee or
consultant/ contractor of the City when on official business; stays by any officer or emp Y to ee of a
foreign government who is exempt by reason of express provisions of Federal law or international treaty; and that portion of gross short-term room rental revenue allocable to food and beverage products of every kind provided by the lodging business for consumption by transients and invitees of transients.
Long term contract renters shall receive a partial exemption from the RBTMD assessment as detailed below. A "long term contract renter" means a person that has entered into a contract with a lodging g
business to rent a block of nine ( 9) or more rooms for a continuous period of at least twelve ( 12) months. " LTC room night rental" means the rent charged for a room for one night in accordance with the provisions of a
long term contract. Lodging businesses shall receive a base partial exemption from the RBTMD assessment for LTC room night rentals pursuant to the following four ( 4) categories:
Lodging businesses that rent 500 or less LTC room night rentals in a single month shall receive an eighty percent ( 80%) exemption from the amount of the RBTMD assessment owed therefor;
Lodging businesses that rent 501 to 1, 500 LTC room night rentals in a single month shall receive a
seventy percent( 70%) exemption from the amount ofthe RBTMD assessment owed therefor for each LTC room night greater than 500 and less than 1, 501; Lodging businesses that rent 1, 501 to 2,000 LTC room night rentals in a single month shall receive a
fifty-five percent ( 55%) exemption from the amount of the RBTMD assessment owed therefor for each LTC room night greater than 1, 500 and less than 2,001; and Lodging businesses that rent 2, 000 or more LTC room night rentals in a single month shall receive a fifteen percent ( 15%) percent exemption from the amount of RBTMD assessment owed therefor for each LTC room night over 2,000.
During the five( 5) year term, the assessment rate may be increased by the RBTT Board to a maximum of two percent (2%) of gross short-term room rental revenue. If the assessment rate is increased, it may subsequently be decreased but shall not decreased below a minimum of one percent ( l%) of RBTMD Management District Plan 10
August 15, 2018
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004.0
gross short-term room rental revenue. The maximum increase or decrease in any year shall be onehalf ofone percent( 0.5%). Any proposed assessment rate increase or decrease approved by the RBTT Board shall be included in the annual report and shall not be effective until approved by the City Council.
The term " gross room rental revenue" as used herein means: the consideration charged, whether or not received, for the occupancy of space in a
lodging business valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, property, and services ofany kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business, comprised of twenty( 20) rooms or more. However, the assessed lodging business, comprised of twenty( 20) rooms or more, may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt forpaYment from the business. The RBTMD assessment shall be disclosed as the " RBTMD Assessment." As an alternative, the disclosure may include the amount of the RBTMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the " Tourism Assessment." The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business, comprised of twenty (20) rooms or more, even ifit is passed on to transients. The assessment shall not be considered revenue for anyppur ose, including calculation of transient occupancy taxes.
Bonds shall not be issued.
E. Penalties and Interest
The RBTMD shall reimburse the City of Redondo Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent RBTMD assessment are sought to be recovered in the same collection action by the City, the RBTMD shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business that shall fail to remit any assessment imposed within the time required shall pay a
penalty in the amount of ten percent ( 10%) of the
assessment in addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business that shall fail to remit any delinquent remittance on or before a period of thirty ( 30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty in the amount of ten percent( 10%) of the assessment in addition to the amount of the assessment and the ten percent ( 10%) percent penalty first imposed.
3. Fraud: If the City shall determine that the nonpayment ofany remittance due is due to fraud, a
penalty in the amount of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties set forth in subparagraphs 1 and 2 of this Section E.
4. Interest: In addition to the penalties imposed, any lodging business that shall fail to remit any assessment imposed shall pay interest at the rate of one-half of one percent( 0.5%), or fraction thereof, on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
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5. Penalties Merged with Assessment. Every penalty imposed, and such interest as accrues shall become a part of the assessment required to be paid.
F. Time and Manner for Collecting Assessments
The RBTMD assessment will be implemented beginning September 1, 2018 and will continue for five 5) years through August 31, 2023. The City will be responsible for collecting the assessment on a monthly basis ( including any delinquencies, penalties and interest) from each lodging business, comprised of twenty ( 20) rooms or more. The City shall take all reasonable efforts to collect the assessments from each lodging business, comprised of twenty ( 20) rooms or more. The City shall forward the assessments collected to the Owners' Association.
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V. GOVERNANCE
A. Owners' Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners' Association of the RBTMD as defined in Streets and Highways Code 36612. The City Council has determined that the to-be- formed Redondo Beach Travel& Tourism RBTT) nonprofit corporation will serve as the Owners' Association for the RBTMD. At least twothirds (2/ 3s) of the directors of the RBTT Board shall be lodging business owners or representatives paying the RBTMD assessment. The RBTT Board will have the ability to determine how funds are spent, within the designated programs.
B. Brown Act and California Public Records Act Compliance An Owners' Association is a private entity and may not be considered a public entity for anyppur ose, nor may its board members or staff be considered to be public officials for any purpose. The Owners' Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners' Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the RBTT board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners' Association is also subject to the record keeping and disclosure requirements ofthe California Public Records Act. Accordingly, the Owners' Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
C. Annual Report
The RBTT shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 ( see Appendix 1). The annual report shall include:
Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification ofbusinesses within the district.
The improvements and activities to be provided for that fiscal year.
An estimate of the cost ofproviding the improvements and the activities for that fiscal year.
The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1- LAW
THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT*** aLL 2017 LEGISLATION)
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the" Property and Business Improvement District Law of 1994." 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all ofthe following:
a) Businesses located and operating within business districts in some of this state' s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion ofthe business districts. c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even ifproperty, businesses, or persons not assessed receive incidental or collateral effects that benefit them. e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
1) Crime reduction. A study by the Rand Corporation has confirmed a 12- percent reduction in the incidence of robbery and an 8- percent reduction in the total incidence of violent crimes within the 30 districts studied.
2) Job creation.
3) Business attraction.
4) Business retention.
5) Economic growth.
6) New investments.
f)With the dissolution ofredevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. h) The act amending this section is intended to provide the Legislature' s guidance with regard to this act, its interaction with the provisions ofArticle XIII D ofthe Constitution, and the determination of special benefits in property- based districts.
1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. 2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.
Therefore, for special benefits to exist as a separate and distinct category from general benefits, the RBTMD Management District Plan 14
August 15, 2018
o
incidental or collateral effects of those special benefits are inherently part of those special benefits.
The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.
Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose ofthis part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ( Division 4( commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision ofthis part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606." Activities"
Activities" means, but is not limited to, all ofthe following that benefit businesses or real property in the district:
a) Promotion ofpublic events.
b) Furnishing of music in any public place.
c) Promotion of tourism within the district.
d) Marketing and economic development, including retail retention and recruitment. e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5." Assessment"
Assessment" means a
levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607." Business"
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1 Business" means all types of businesses and includes financial institutions and professions. 36608." City"
City" means a
city, county, city and county, or an agency or entity created pursuant to Article 1 ( commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a
city and county, or the State of California.
36609." City council"
City council" means the city council of a
city or the board of supervisors of a
county, or the agency, commission, or
board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4." Clerk"
Clerk" means the clerk ofthe legislative body.
36609.5." General benefit"
General benefit" means, for purposes ofa property-based district, any benefit that is not a" special benefit" as defined in Section 36615. 5.
36610." Improvement"
Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
a) Parking facilities.
b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. c) Trash receptacles and public restrooms.
d) Lighting and heating facilities.
e) Decorations.
f)Parks.
g) Fountains.
h) Planting areas.
i) Closing, opening, widening, or narrowing of existing streets. j) Facilities or equipment, or both, to enhance security ofpersons and property within the district. k) Ramps, sidewalks, plazas, and pedestrian malls.
1) Rehabilitation or removal of existing structures.
36611." Management district plan"; " Plan"
Management district plan" or" plan" means a proposal as defined in Section 36622. 36612." Owners' association"
Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act Chapter 9( commencing with Section 54950) ofPart 1 ofDivision 2 ofTitle 5 ofthe Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act( Chapter 3. 5( commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. " Property"
Property" means real property situated within a district.
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0 36614.5." Property and business improvement district";" District" Property and business improvement district," or " district," means a property and business improvement district established pursuant to this part.
36614.6." Property-based assessment"
Property- based assessment" means any assessment made pursuant to this part upon real property. 36614. 7." Property-based district"
Property- based district" means any district in which a city levies a property- based assessment. 36615." Property owner"; " Business owner";" Owner"
Property owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council." Business owner" means any person recognized by the city as the owner ofthe business." Owner" means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent ofthe business owner shall be sufficient. 36615.5." Special benefit"
Special benefit" means, for purposes of a property- based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property- based districts even ifthose incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616." Tenant"
Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions ofthis part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989( Part 6( commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent ofthe board RBTMD Management District Plan 17
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of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council ofthe other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.
The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent ofthe total amount of assessments proposed to be levied. b) The petition of property or business owners required under subdivision ( a) shall include a summary of the management district plan. That summary shall include all ofthe following:
1) A map showing the boundaries ofthe district.
2) Information specifying where the complete management district plan can be obtained. 3) Information specifying that the complete management district plan shall be furnished upon request.
c) The resolution of intention described in subdivision( a) shall contain all ofthe following:
1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries ofthe proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient ifthey enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent ofthe proposed district. 2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all ofthe following:
a) Ifthe assessment will be levied on property, a map ofthe district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. Ifthe assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map ofthe district in sufficient detail to locate each parcel ofproperty and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
b) The name ofthe proposed district.
c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions oflaw, including, but not limited to, the Parking and Business Improvement Area Law of 1989( Part 6( commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. d) The improvements, maintenance, and activities proposed for each year ofoperation ofthe district and the maximum cost thereof. Ifthe improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year' s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
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e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. Ifthe total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
f)The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
g) The time and manner of collecting the assessments.
h) The specific number ofyears in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation ofthe district. i) The proposed time for implementation and completion of the management district plan. j) Any proposed rules and regulations to be applicable to the district. k) ( 1) A list ofthe properties or businesses to be assessed, including the assessor' s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. 2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost ofthe proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property- based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value ofany incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property- based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. 1) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
m) In a property-based district, the total amount ofgeneral benefits, if any. n) In a property-based district, a detailed engineer' s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
a) If a
city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. b) If a
city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records ofthe city as the owner ofthe business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay RBTMD Management District Plan 19
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50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. c) If a
city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision( a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion ofthe assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion ofthe public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all ofthem. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution offormation that shall include, but is not limited to, all ofthe following:
1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description ofthe exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient ifthey enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent ofthe proposed district. 2) The number, date of adoption, and title ofthe resolution of intention. 3) The time and place where the public hearing was held concerning the establishment of the district.
4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. 6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. 7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property- based district, that property within the district will receive a special benefit.
8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property- based district.
b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
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36626. Resolution establishing district
Ifthe city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all ofthe information specified in Section 36625. 36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision ofDivision 4. 5 ( commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. Ifthe assessment is to be levied on businesses, the city council may also define categories ofbusinesses based upon the degree ofbenefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination ofthe two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph( 2) of subdivision( k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions ofthis part applicable to the establishment, modification, or disestablishment ofa property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category ofbusiness, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision( h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may RBTMD Management District Plan 21
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classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
b) Assessments levied on businesses pursuant to this part shall be levied on the basis ofthe estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry ofj udgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners' association may, at any time, request that the city council modify the management district plan. Any modification ofthe management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention a) Upon the written request ofthe owners' association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. Ifthe modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both ofthe following:
1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
2) A complete copy ofthe resolution ofintention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption ofthe resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4. 5 ( commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
CHAPTER 3. 5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all ofthe proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance ofbonds, under the Improvement Bond Act of 1915( Division 10( commencing with Section 8500)) RBTMD Management District Plan 22
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or in conjunction with Marks- Roos Local Bond Pooling Act of 1985 ( Article 4 ( commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance ofbonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
b) The resolution adopted pursuant to subdivision( a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number ofannual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount ofrevenue estimated to be raised from assessments over 30 years.
c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement ofthe debt.
CHAPTER 4. Governance
36650. Report by owners' association; Approval or modification by city council a) The owners' association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners' association' s first report shall be due after the first year of operation ofthe district. The report may propose changes, including, but not limited to, the boundaries ofthe property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
1) Any proposed changes in the boundaries ofthe property and business improvement district or in any benefit zones or classification of property or businesses within the district. 2) The improvements, maintenance, and activities to be provided for that fiscal year. 3) An estimate ofthe cost ofproviding the improvements, maintenance, and activities for that fiscal year.
4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
c) The city council may approve the report as filed by the owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners' association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements, maintenance, and activities described in the management district plan. Ifthe management district plan designates an owners' association, the city shall contract with the designated nonprofit corporation to provide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit RBTMD Management District Plan 23
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a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. Ifthe renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners ofthese parcels or businesses. c) Upon renewal, a district shall have a term not to exceed 10 years, or, ifthe district is authorized to issue bonds, until the maximum maturity ofthose bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure a) Any district established or extended pursuant to the provisions ofthis part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any ofthe purposes of the district, may be disestablished by resolution by the city council in either ofthe following circumstances:
1) Ifthe city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management ofthe district, it shall notice a hearing on disestablishment. 2) During the operation ofthe district, there shall be a 30- day period each year in which assessees may request disestablishment ofthe district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30- day period shall begin two years after the date ofthe establishment ofthe district. Each successive year of operation ofthe district shall have such a 30- day period. Upon the written petition ofthe owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more ofthe assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place ofthe public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption ofthe resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners ofthe property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. b) Ifthe disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2- ASSESSED BUSINESSES
Lodging Business Address
Best Western Redondo Beach Inn 1850 S. Pacific Coast Hwy Best Western/ Galleria Inn 2740 Artesia Blvd
Crowne Plaza Hotel 300 N Harbor Dr
Hilton Garden Inn 2410 Marine Ave
Homewood Suites by Hilton 2430 Marine Avenue
Moonlite Inn 625 S Pacific Coast Hwy
Portofino Hotel Yacht Club 260 Portofino Way
Ramada Limited 435 S. Pacific Coast Hwy
Redondo Beach Hotel (Sunrise) 400 N Harbor Dr
Redondo Inn & Suites 711 S. Pacific Coast Hwy
Redondo Pier Inn 206 S. Pacific Coast Hwy
Residence Inn by Marriott 2420 Marine Ave
Seaside Motel 1935 Artesia Blvd
Shade Hotel 655 North Harbor Drive
Starlite/ Pacific Coast Inn 425 S. Pacific Coast Hwy
RBTMD Management District Plan 25
August 15, 2018
EXHIBIT " B"
SCHEDULE FOR COMPLETION
TERM. The term of this Agreement shall commence January 8, 2019 and expire December 31, 2023 ("Term"), unless otherwise terminated as provided herein. 17 EXHIBIT " C"
COMPENSATION
Provided Contractor is not in default under this Agreement, Contractor shall be compensated as provided below.
A. AMOUNT. Contractor shall only be compensated for work performed under this Agreement out of available RBTMD assessment funds; provided, that no payment shall exceed the amount shown in the Annual Report for the related operational program, project or service. Contractor agrees that all funds received from the City shall only be expended for the RBTMD programs or administrative and renewal costs in such proportions as determined by the Contractor.
B. METHOD OF PAYMENT. Contractor will render a full and accurate accounting for all expenditures annually in accordance with this Agreement. Contractor may be required to provide back-up material upon request.
C. SCHEDULE FOR PAYMENT. Following the execution of this Agreement, City will disburse any District assessment funds currently held, including the amount of the first fees collected after the establishment of the RBTMD. Thereafter, City will make the Net Disbursements on a quarterly basis following receipt of each quarter's collected RBTMD assessments. Generally, disbursement dates will be on or about December 1st, March 1st, June 1st, and September 1st 18 EXHIBIT " D"
INSURANCE REQUIREMENTS FOR CONTRACTOR
Without limiting Contractor's indemnification obligations under this Agreement, Contractor 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 performance of the work hereunder by the Contractor, its agents, representatives, or employees.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
Insurance Services Office form number CA 0001 ( Ed. 1/ 87) covering Automobile Liability, code 1 ( any auto).
Workers' Compensation insurance as required by the State of California.
Employer's Liability Insurance.
Minimum Limits of Insurance
Contractor shall maintain limits no less than:
General Liability: $ 1, 000,000 per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to this project/location.
Automobile Liability: $ 1, 000,000 per accident for bodily injury and property damage.
Employer's Liability: $ 1, 000,000 per accident for bodily injury or disease.
Directors and Officers Liability: $ 1, 000,000 per occurrence.
Employee Theft: $1, 000,000 per occurrence.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers or (2) the Contractor shall provide a financial guarantee s
19 I'.
satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Endorsement:
General Liability: The City, its officers, elected and appointed officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of work performed by or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance, or as a separate owner's policy.
Automobile Liability: The City, its officers, elected and appointed officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor.
For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, elected and appointed officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.
Each insurance policy shall be endorsed to state that the inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as though separate policies had been issued to each insured.
Each insurance policy shall be in effect prior to awarding the contract and each insurance policy or a successor policy shall be in effect for the duration of the project.
The maintenance of proper insurance coverage is a material element of the contract and failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract on the Contractor's part. 20 tay
4s
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII and which are authorized to transact insurance business in the State of California by the Department of Insurance.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on the City authorized forms provided with the contract specifications. Standard ISO forms which shall be subject to City approval and amended to conform to the City's requirements may be acceptable in lieu of City authorized forms. All certificates and endorsements are to be received and approved by the City before the contract is awarded. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.
Subcontractors
Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
Risk Management
Contractor acknowledges that insurance underwriting standards and practices are subject to change, and the City reserves the right to make changes to these provisions in the reasonable discretion of its Risk Manager.
21 c` .
41111,-
r'
EXHIBIT " E"
AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS
1. Contractor acknowledges that the project as defined in this Agreement between Contractor and the City, to which this Agreement to Comply with California Labor Law Requirements is attached and incorporated by reference, is a " public work" as defined in Division 2, Part 7, Chapter 1 ( commencing with Section 1720) of the California Labor Code ("Chapter 1"), and that this Agreement is subject to ( a) Chapter 1, including without limitation Labor Code Section 1771 and ( b) the rules and regulations established by the Director of Industrial Relations (" DIR") implementing such statutes. Contractor shall perform all work on the project as a public work. Contractor shall comply with and be bound by all the terms, rules and regulations described in 1( a) and 1( b) as though set forth in full herein.
2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above.
3. Pursuant to Labor Code Section 1771. 4, Contractor shall post job site notices, as prescribed by regulation.
4. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request. Contractor acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Contractor shall post such rates at each job site covered by this Agreement.
5. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the City, forfeit the maximum amount allowable by law for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor.
6. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to ( 1) keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the City of the location of the records.
7. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Administrative Code title 8, section 200 et seq. concerning the employment of apprentices on public works projects.
Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty ( 60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement.
8. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810.
Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($ 25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight 8) hours in any one ( 1) calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code.
Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of 8 hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1 and 1/ 2 times the basic rate of pay.
9. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows:
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract."
10. For every subcontractor who will perform work on the project, Contractor shall be responsible for such subcontractor's compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Contractor shall include in the written contract between it and each subcontractor a copy of those statutory provisions and a requirement that each subcontractor shall comply with those statutory provisions. Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a periodic review of the certified payroll records of the subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages.
Contractor shall diligently take corrective action to halt or rectify any failure.
11. To the maximum extent permitted by law, Contractor shall indemnify, hold harmless and defend ( at Contractor's expense with counsel acceptable to the City) the City, its officials, officers, employees, agents, independent contractors, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity ( including Contractor, its subcontractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys' fees, and other related costs and expenses. All duties of Contractor under this Section shall survive termination of the Agreement. 23 ofd.
DATE( MMIDD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 1/ 3/ 2019 THIS CERTIFICATE IS 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 IS 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
Bichlmeier Insurance Services
730 S. Pacific Coast Hwy Suite# 201 LA/
NAME:
C,No EXt1
Chanel/
310-376-
J
8852 1_ IA/C, NoJ 310-540-2215
Redondo Beach CA 90277 E- MAIL
ADDRESs_ Chanel) @bisins.com
INSURER(S) AFFORDING COVERAGE NAIC#
INSURER A: UNITED STATES LIABILITY 25895
INSURED REDO- 22
Redondo Beach Travel and Tourism INSURER B
260 Portofino Way INSURER C:
Redondo Beach CA 90277 INSURER D:
INSURER E:
INSURER F:
COVERAGES CERTIFICATE NUMBER: 108683081 REVISION NUMBER:
THIS INDICATED. IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD 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 ADDL SUBR- ----
LTR TYPE OF POLICY EFF POLICY EXP--- - INSURANCE INSD WVD POLICY NUMBER MM/DD/YYYY) ( MM/DD/YYYY) LIMITS A COMMERCIAL GENERAL LIABILITY Y NBP1557532 12/ 13/2018 12/ 13/2019 EACH OCCURRENCE $ 1, 000,000
CLAIMS- MADE X , OCCUR DAMAGE TO RENTED
PREMISES( Ea occurrence) - $ 100,000
X Business Owners
MED EXP( Any one person) $ 5, 000
PERSONAL& ADV INJURY $
GE ' L AGGREGATE LIMIT APPLIES PER:
GENERAL AGGREGATE $ 2,000 000
X POLICY
PROJECT LOC
j PRODUCTS- COMP/OP AGG $
OTHER:
A AUTOMOBILE LIABILITY NBP1557532 12/ 13/2018 12/ 13/2019 gaMpcnEeD4INGLE LIMIT $ 1, 000,000
ANY AUTO
BODILY INJURY( Per person) j $
OWNED SCHEDULED
AUTOS ONLY AUTOS BODILY INJURY( Per accident) $
X
HIRED NON- OWNED
AUTOS ONLY X
AUTOS ONLY PROPERTY DAMAGE
Per accident
UMBRELLA LIAB OCCUR EACH OCCURRENCE
EXCESS LIAB CLAIMS-MADE AGGREGATE
DED RETENTION$
WORKERS COMPENSATION PER l OTHAND EMPLOYERS' LIABILITY Y/ N STATUTE L ER —_
ANYPROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER E. L. EACH ACCIDENT EXCLUDED? N/ A
Mandatory in NH)
E. L. DISEASE- EA EMPLOYEE_ $ If yes, describe under
DESCRIPTION OF OPERATIONS below E. L. DISEASE- POLICY LIMIT $ A Directors& Officers
Employmt Practices
NBP1557532 12/ 13/201812/13/2019 Each Claim 1, 000,000
Aggregate 1, 000,000
Retention each claim 5, 000
DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES ( ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Travel and Tourism marketing for the City of Redondo Beach Directors and Officers has zero retention each claim. Employment Practices Liability has$ 5000 retention each claim. 30 day notice of cancellation applies except for non- payment which is 10 day notice.
Certificate holder per BP- 145 NPP 06/ 10 endorsement is named additional insured.
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Redondo Beach, its officers, elected and appointed ACCORDANCE WITH THE POLICY PROVISIONS. officials, employees and volunteers
415 Diamond Street AUTHORIZED REPRESENTATIVE
Redondo Beach CA 9027744,;ide
k
1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25( 2016/03) The ACORD name and logo are registered marks of ACORD
UNITED STATES LIABILITY INSURANCE GROUP
WAYNE, PENNSYLVANIA
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
BLANKET ADDITIONAL INSURED ENDORSEMENT
Section II -- LIABILITY, C., Who Is An Insured is amended to include as an insured any person, entity or organization that is:
1. A franchisor under a franchise agreement with the Named Insured as franchisee relating to " your work"; or
2. A licensor under a license agreement with the Named Insured as licensee relating to your work"; or
3. A co-owner with the Named Insured in premises used for" your work"; or
4. A majority owner with a
controlling interest in the Named Insured but only with respect to liability arising out of such owner' s ( i) financial or operational control of the Named Insured; or ( ii) ownership, maintenance or use of premises leased or occupied by the Named Insured for purposes of" your work"; or
5. A mortgagee, assignee or receiver of the Named Insured relating to " your work"; or
6. A lessor, or an agent of a lessor, under a lease agreement with the Named Insured as lessee relating to " your work"; or
7. A grantor of a permit to the Named Insured as permitee relating to " your work".
However, ifthe grantor of a permit is a federal, state or local government or political subdivision, there is coverage under this endorsement only for liability arising from:
a. The existence, maintenance, repair, construction, erection or removal ofadvertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners or decorations and similar exposures; or
b. The construction, erection or removal of elevators; or c. The ownership, maintenance or use of any elevators covered by this insurance; or
8. A lessor of equipment leased to the Named Insured relating to " your work"; or
9. A contributor, benefactor, or supporter who provides financial assistance to the Named Insured in connection with " your work".
but only to the extent the Named Insured is required to add such person, entity or organization as an additional insured to this policy under a written contract, written permit or written agreement relating to " your work".
Such person, entity or organization is an insured only with respect to liability for " bodily injury", " property damage" or " personal and advertising injury" that is caused, in whole or in part by your acts or omissions or the acts or omissions of those acting on your behalf in connection with " your work" while such written contract, written permit or written BP 145 NPP (06- 10) Page 1 of2
agreement is in effect.
EXCLUSIONS
There is no coverage under this endorsement for loss or expense, including but not limited to the cost of defense for " bodily injury", " property damage" or " personal and advertising injury":
1. That occurs after all of" your work", including materials, parts or equipment furnished in connection with " your work" and performed under a written contract, written permit or written agreement has ended; or
When that portion of" your work" out ofwhich the " bodilyi 'ur " " property damage" n y , p operty or personal and advertising injury" arises anderformed P under a written contract, o ract, written permit or written agreement has been put to its intended use by any person( s) or organization( s);
whichever occurs first.
2. Arising directly or indirectly from construction or demolition operations of any kindnd performed by you.
3. Caused or alleged to be caused by the sole negligence of an additional insured under this endorsement.
4. Arising out of" your work" performed for a federal, state or localov g ernment or political political subdivision under a written permit; or
5. Included within the " products- completed operations hazard".
CONDITIONS
Coverageprovided g bythis endorsementinsurance will be excess over any iavailable to any additional insured under this endorsement unless a written contract, writtenPermit or written agreement specifically requires that coverage under this endorsement is primary.
All other terms and conditions ofthis policy remain unchanged. This endorsement is apart of. your policy and takes effect on the effective date of your policy unless another effective date is shown.
BP 145 NPP ( 0b- 10) Page 2 of2