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HomeMy WebLinkAbout05 - Coin-Operated Viewers AgreementITEM 5 TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager SUBJECT: Agreement for Coin - Operated Viewers on City Property RECOMMENDED Authorize the Mayor to execute a License Agreement with Tower Optical ACTION: Company, Inc. for the operation of coin operated binocular viewers at various locations within the City of Newport Beach. BACKGROUND: For at least 50 years, the City has had coin- operated telescopes on the Newport Pier, Balboa Pier and in Corona Del Mar for public viewing purposes. Carden Coin Telescopes has provided this service for the City since 1948 and has been on a month-to -month contract. During the most recent renovations of the Balboa and Newport Piers, we removed the telescopes there. One telescope remains at Inspiration Point on Ocean Avenue in Corona Del Mar. Because Carden had held this lease for so long, I asked Tony Melum, Director of Harbor Resources, to seek new proposals for this type of operation As a reminder, portions of Council Policy F -17 directs us as follows: D. In all negotiations regarding the lease, management contract, concession, sale or similar action regarding a non - residential income property, the City shall seek revenue equivalent to the open market value of the highest and best use; and, whenever possible the City shall conduct an open bid or proposal process to insure the highest financial return. F. Generally, lengths of leases, management contracts, concessions or similar agreements will be limited to the minimum necessary to meet market standards and will contain appropriate reappraisal and inflation protection provisions. Also, all agreements shall contain provisions to assure complete audits periodically through their terms. G. All negotiations regarding the lease, management contract, concession, sale or similar action regarding income properly/ shall be conducted by the City Manager or his designee under the direction of any appropriate City committees prior to consideration by the City Council. Vendors Reviewed Harbor Resources received proposals from the following vendors: Carden s Coin Telescopes Seascopes;and Tower Optical. We reviewed the proposals and visited at least one site maintained by each company. Generally, on our site visits we found the following: Tower Optical. Tower is the current vendor at Oceanside Pier. The devices: • Allowed for a person to view their target with both eyes, a system that generally reduces eyestrain; • Were well maintained; • Were comparably easy to use; • Allowed a viewer to quickly and effectively focus and access the device; • Allowed for a full 2- minute viewing time per quarter; • Were fully functioning on the day we visited the Oceanside Pier. Carden. This is current vendor at CDM (Inspiration Point) and continuing vendor at the Newport Pier and the Balboa Pier. Carden also has telescopes at the Huntington Beach pier. Some or all of the devices: • Allowed only for single -eye viewing; • Were more difficult to use than the Tower two -eye scopes — looking into the Carden scopes took time and "angling" to get anything other than a black, closed effect • Were not fully functioning (up to 1 /3rd of the telescopes) on the day we visited. • Contained cracked or scratched lenses (on the day after the Council heard this item on July 9, we visited the HB Pier again — of the five telescopes there, three had deep scratches on the lens that partially obscured the view. The CDM scope's lens was cracked as well. • Allowed for a 1.5 minute viewing time per quarter; • Were recently painted to cover over graffiti (some of which was still visible under the paint). June 10, 2002 Photos of Carden Telescopes at HB Pier �w r z i Lens at CDWnspiration Point- June 10, 2002 Seascoues. We visited the Seascope devices placed on the Seal Beach Pier. Seascopes has three devices there — two telescopes with one binocular device. The exteriors of each appeared fairly new, but the binoculars could not be easily focused. As such, they were effectively unusable. The use time for a $ 0.25 payment was less than two minutes. Each lessor with whom we spoke spoke highly of their lessee. Vendor Recommendation Based on the proposal and site review, we recommend using Tower Optical Company, Inc. as our licensed operator. Although their proposal suggested a revenue sharing of 40% to the City and 60% to the operator, versus 50/50 with the other two proposers, our recommendation is based mainly on the results of the site review. We found Tower Optical equipment to be more user - friendly, better maintained and all viewers were operable, which was not the case with the other applicants. A Note About Revenue If every one of the telescopes were performing optimally, the difference in revenue to the City is $700 more with Carden or Seascope. But given the track record of downtime we witnessed (albeit anecdotally), there may actually be a greater financial benefit to the City and greater convenience and use benefit to users in having a 60-40 split when all telescopes are consistently working and consistently user - friendly. • Final Note — Health Concerns • fairly extensive Internet -based search shows no known studies on any linkage between air -bome viruses or bacteria acquired from a dual -eye use telescope like Tower uses versus one with a single -eye use telescope like Carden uses. However, we note that almost all science guidelines recommend that a viewer always keep both eyes open when using a microscope or telescope, because doing so reduces eyestrain. The Tower style of telescope promotes this practice by its very nature — the Carden style 2 does not. Nor do the Carden scopes have any guidance about keeping both eyes open in print on or near the telescope. Attached is a copy of the proposed Licensee Agreement Basic terms and conditions are as follows: 1. Six viewers will be operated and located at the Newport Pier (3), the Balboa Pier (2) and in Corona Del Mar at Inspiration Point (1). 2. The agreement is on a year -to -year basis, with a 30 -day termination clause. 3. The Licensee will pay the City 40% of all gross receipts derived from operation of the telescopes, to be set at 2- minute time periods. 4. Should it be necessary to transport the telescopes for refurbishing or maintenance, the City would assume 40% of the transport charges. (Could amount to $376.36 if all six needed transport). For the City Council's information, the most recent revenue figures indicate that the six sites would generate $7,767.00 annual gross. ATTACHMENTS Photos of Tower Optical Telescopes OR EXHIBITS: Proposed License Agreement M Tower Optical Coin- Operated Telescopes LICENSE AGREEMENT COIN OPERATED TELESCOPES THIS AGREEMENT is entered into this day of by and between THE CITY OF NEWPORT BEACH, a Municipal Corporation, hereinafter referred to as "City' and Tower Optical Company, Inc., hereinafter referred to as "Licensee ". WITNESSETH WHEREAS, Licensee, is a manufacturer and operator of binocular viewing machines, and; WHEREAS, the parties hereto desire to enter into an agreement, and; WHEREAS, Licensee proposes to install and maintain six (6) binocular viewers at the following locations; Locations No. of Viewers Newport Pier 3 Balboa Pier 2 Goldenrod at Ocean Blvd. 1 Corona Del Mar NOW, THEREFORE, in consideration of these premises, the parties hereto agree as follows: 1. City hereby grants to Licensee permission to maintain six (6) coin - operated binoculars viewers at the locations specified above; 2. Licensee shall pay City forty percent (40 %) of the gross monthly receipts from the operation of all said telescopes; 3. City shall pay forty percent (40 %) of any and all freight charges associated with the delivery and return of the viewers herein described; 4. Pursuant to Section 5.08.020 of the Newport Beach Municipal Code, Licensee shall, at all times, maintain a business license for said telescopes; 5. INSURANCE. A. General Conditions. All insurance required to be carried pursuant to this Section shall be obtained from reputable carriers licensed to conduct business in the State of California. Each policy required to be carried pursuant to this Section _ shall name Lessee and Lessor as additional named insureds, and shall provide that the policy may not be surrendered, cancelled or terminated, or coverage reduced, without not less than twenty (20) days prior written notice to Lessor. B. Liability Insurance. Lessee shall, at Lessee's sole cost and expense, procure and maintain during the term of this Lease, a broad form comprehensive coverage policy of public liability insurance which insures Lessee and Lessor against any loss or liability caused by, or in any way related to, the condition, for Lessee's use and occupation, of the premises in amounts not less than: (1) $1,00,000 per occurrence for injury to, or death of, one person; C. Workers Compensation. Lessee shall provide Worker's Compensation insurance covering all employees of Lessee, per the laws of the State of California. 6. The City Manager of the City of Newport Beach may approve future relocation, addition or reduction in the number of coin - operated binocular viewers; 7. Licensee shall provide City with a verified yearly statement of all revenues received by Licensee from the operation of said telescopes; 8. This agreement shall remain in full force and effect on an on -going year -to- year basis unless earlier terminated by either party, who may, after serving the other party with at least 30 days' written notice of such intention to terminate, terminate this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above - written. CITY OF NEWPORT BEACH ( "City "), a Municipal Corporation A ATTEST: LaVonne Harkless City Clerk Tod Ridgeway, Mayor TOWER OPTICAL COMPANY, INC. ( "Licensee ") 0 APPROVED AS TO FORM: Robin L. Clauson Assistant City Attorney Its: 0 ITEM 6 TO: Members of the Newport Beach City Council FROM: Tony Melum, Division of Harbor Resources 5 SUBJECT: Libensee Agreement with Tower Optical Company, Inc. RECOMMENDED ACTION: Authorize the Mayor to execute a License Agreement with Tower Optical Company, Inc. for the operation of coin operated binocular viewers at various locations within the City of Newport Beach. BACKGROUND: . For at least 50 years, the City has had coin - operated telescopes on the Newport Pier, Balboa Pier and in Corona Del Mar for public viewing purposes. During the most recent renovations of the Balboa and Newport Piers, the telescopes were removed. It was felt that this was an appropriate time to seek new proposals for this type of operation. The City received proposals from Carden's Coin Telescopes (current lessee with the City since 1948), Seascopes and Tower Optical. City staff reviewed the proposals and visited at least one site maintained by each company. Based on the proposal and site review, staff is recommending Tower Optical Company, Inc. be designated as licensed operator. Although their proposal suggested a revenue sharing of 40% to the City and 60% to the operator, versus 50/50 with the other two proposers, our recommendation is based mainly on the results of site review. We found Tower Optical equipment to be more user - friendly, better maintained and all viewers were operable, which was not the case with the other applicants. Attached is a copy of the proposed Licensee Agreement. Basic terms and conditions are as follows: 1. Total of six viewers will be operated and located at the Newport Pier (3), the Balboa Pier (2) and in Corona Del Mar at Goldenrod and Ocean Blvd. (1). 2. The agreement is on a year -to -year basis, with a 30 -day termination clause. 3. The Licensee will pay the City 40% of all gross receipts derived from operation of the telescopes. 0 4. Should it be necessary to transport the telescopes for refurbishing or maintenance, the . City would assume 40% of the transport charges. (Could amount to $376.36 if all six needed transport). For the City Council's information, the most recent revenue figures indicate that the six sites generate $7,767.00 annual gross. ATTACHMENTS OR EXHIBITS: Photos of Tower -Dptical Telescopes Photos of locations for telescope placement License Agreement Tower Optical Coin - Operated Telescopes • 0 A .:�., 4+Fw,c:r. �� —. F.' .. ._ _�„� .. ,,. •- _ - � , ,`` f' V -�` _ } __� r �,.._.� - .� :,�! �� g��„�ti....�. crr ...� ' v-- _ �.:_ .,V I:�.. ��,,:.I ... ``..,.` - uy4`i.�� r ` <<� .. Newport Pier Telescope Site I 1] 0 0 1 r1.R7i were .f 11 1 `�1"�'Y'a ;� 'T• �.e. '!Y ;L ilkla�(.Y � \�h��Y � WO a+ 0 LICENSE AGREEMENT COIN OPERATED TELESCOPES THIS AGREEMENT is entered into this day of by and between THE CITY OF NEWPORT BEACH, a Municipal Corporation, hereinafter referred to as "City" and Tower Optical Company, Inc., hereinafter referred to as "Licensee ". WITNESSETH WHEREAS, Licensee, is a manufacturer and operator of binocular viewing machines, and; WHEREAS, the parties hereto desire to enter into an agreement, and; WHEREAS, Licensee proposes to install and maintain six (6) binocular viewers at the following locations; Locations No. of Viewers Newport Pier 3 Balboa Pier 2 Goldenrod at Ocean Blvd. 1 Corona Del Mar NOW, THEREFORE, in consideration of these premises, the parties hereto agree as follows: 9 I . 1. City hereby grants to Licensee permission to maintain six (6) coin - operated binoculars viewers at the locations specified above; 2. Licensee shall pay City forty percent (40 %) of the gross monthly receipts from the operation of all said telescopes; 3. City shall pay forty percent (40 %) of any and all freight charges associated with the delivery and return of the viewers herein described; 4. Pursuant to Section 5.08.020 of the Newport Beach Municipal Code, Licensee shall, at all times, maintain a business license for said telescopes; 5. INSURANCE. A. General Conditions. All insurance required to be carried pursuant to this Section _ shall be obtained from reputable carriers licensed to conduct is business in the State of California. Each policy required to be carried pursuant to this Section _ shall name Lessee and Lessor as additional named insureds, and shall provide that the policy may not be surrendered, cancelled or terminated, or coverage reduced, without not less than twenty (20) days prior written notice to Lessor. B. Liability Insurance. Lessee shall, at Lessee's sole cost and expense, procure and maintain during the term of this Lease, a broad form comprehensive coverage policy of public liability insurance which insures Lessee and Lessor against any loss or liability caused by, or in any way related to, the condition, for Lessee's use and occupation, of the premises in amounts not less than: (1) $1,00,000 per occurrence for injury to, or death of, one person; C. Workers Compensation. Lessee shall provide Worker's Compensation insurance covering all employees of Lessee, per the laws of the State of California. 7 6. The City Manager of the City of Newport Beach may approve future relocation, addition or reduction in the number of coin - operated binocular viewers; 7. Licensee shall provide City with a verified yearly statement of all revenues received by Licensee from the operation of said telescopes; 8. This agreement shall remain in full force and effect on an on -going year -to- year basis unless earlier terminated by either party, who may, after serving the other party with at least 30 days' written notice of such intention to terminate, terminate this Agreement. 0 i • I A 0 IE IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above - written. ATTEST: LaVonne Harkless City Clerk APPROVED AS TO FORM: Robin L. Clauson Assistant City Attorney CITY OF NEWPORT BEACH ( "City "), a Municipal Corporation :n Tod Ridgeway, Mayor TOWER OPTICAL COMPANY, INC. ( "Licensee ") In Its: ■