HomeMy WebLinkAboutC-2370 - Loan Agreement for Balboa Yacht Basin Reconstructionbe>� c*L , aVAq3
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THIRD AMENDMENT TO CONTRACT
Balboa Marina Loan
This amendment is entered into on April 13, 1993 between the
California Department of Boating and Waterways (DEPARTMENT) and the
City of Newport Beach (BORROWER).
DEPARTMENT and BORROWER agree to amend their contract of November
1, 1982 (Contract No. 82-21-82) as follows:
1. Section 2(b) shall read:
"The loan will bear compound interest at the rate of FOUR
AND ONE-HALF PERCENT (4.5%) per annum on the unpaid
balance commencing December 1, 1992."
Save as herein or previously amended, the contract of November 1,
1982 shall remain in full force and effect.
CITY OF NEWPORT BEACH
I -
y By . ....
Title: 'Director
STATE OF CALIFORNIA
DEPARTMENT OF
BOATING AND WATERWAYS
2-,P - 93
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Date Signed
Date Signed
,i' r' G-n^ml Services
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SECOND AMENDMENT TO CONTRACT
Balboa Marina $3,300,000 Loan
This amendment is entered into on April 1, 1988, between the
California Department of Boating and Waterways (DEPARTMENT) and
the City of Newport Beach (BORROWER).
DEPARTMENT and BORROWER agree to amend their contract of
November 1, 1982, (Contract No. 82-21-82) as follows:
1. Paragraph 2(b) shall read:
"The loan will bear interest at the rate of SEVEN AND
NINE -TENTHS PERCENT (7.9%) per annum until August 1,
1987, and SIX PERCENT PERCENT (6.0%) thereafter. All
interest shall be compounded annually on the unpaid
balance and commence with the date of each transfer of
loan funds by the DEPARTMENT."
Save as herein or previously amended, the contract of
November 1, 1982 shall remain in full force and effect.
BI
CITY OF NEWPORT BEACH
.bate Signed
STATE OF CALIFORNIA
DEPARTMENT OF
BOATING AND WATERWAYS
By
Director
Date Signed
I hereby certify that all conditions for exemption set forth in
State Administrative Manual,Section 1209 have been complied with
and this document is exempt from review by the Department of
Finance.
ATTEST:
City Clerk
Dir ctor
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COURT PAPER
STATF. OF CALIFORNIA
SID. 113 (REV. B-721
OSP
First Amendment to Contract
Balboa Marina $800,000 Incremental Loan
This amendment is entered into on July 23, 1984, between the California
Department of Boating and Waterways (DEPARTMENT) and the City of Newport Beach
(APPLICANT). The DEPARTMENT and the APPLICANT agree to amend their Contract
of November 1, 1982, (Contract No. 82-21-82) as follows:
1. Paragraph 2 shall read:
"The DEPARTMENT will make a construction loan in the amount of THREE.
MILLION THREE HUNDRED THOUSAND DOLLARS ($3,300,000) to the APPLICANT
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in accordance with EXHIBIT A."
2. Paragraph 3(b) shall read:
"(b) Repayment of the first $2,500,000 of the loan shall begin on
August 1, 1987, and repayment of the remaining $800,000 of the loan
shall begin on August 1, 1988.11
3. Paragraph 4 shall read:
(a) The APPLICANT certifies that the obligation created by this contract
�I
(will not create an indebtedness or liability contrary to the provisions of
Section 18 of Article XVI of the Constitution of the State of California.
(b) If for any reason whatsoever the APPLICANT does not substantially
complete the PROJECT (as defined by EXHIBIT A), then all loan moneys expended
by the APPLICANT prior to such date are, to the extent permitted by law, a
general obligation of the APPLICANT and shall be due and payable ONE HUNDRED
EIGHTY (180) days after the close of fiscal year 1987-88.
(c) The APPLICANT shall establish a berthing rate for the PROJECT
sufficient to cover the requirements of Section 71.8(e) of the Harbors and
Navigation Code; however, the rates for the rental of berths at the PROJECT
shall not average (average calculated by dividing total berth revenues by
1 total linear feet of berths) less than $7.50 per foot of boat or berth length
2 (whichever is longer) per month beginning with July 1, 1986. The APPLICANT
3 shall adjust such rate or rates as necessary to keep them at a level which
4 meets the aforestated requirements; however, such adjustments shall be made
5 Ino less than once each year and shall not be less than the equivalent percentage
6 change (over the preceding year) in the United States Bureau of Labor Statis-
7 tics' Consumer Price Index for the United States, or such other index as
8 selected by the DEPARTMENT.
9 (d) The APPLICANT shall each year conduct a survey of berthing charges
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10 which prevail in the same market area as the PROJECT and shall transmit the
11 results of the survey to the DEPARTMENT by the Ist of April of each year.
12 The APPLICANT shall establish berthing charges which are reasonable and not
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13 exorbitant.
14 (e) Notices required between the parties shall be deemed to have been
15 given when mailed to the respective addresses below, first-class postage
16 prepaid thereon.
17. to DEPARTMENT: Department of Boating and Waterways
1629 S Street
18 Sacramento, California 95814-7291
19 to BORROIER: City of Newport Beach
3300 Newport Boulevard
201 Newport Beach, California 92663
21 Save and except as herein amended, the Contract of November 1, 1982, shall
22 remain in full force and effect.
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COURT PAPER
STATE OF CAMFORNIA
STD. 113 (REV. 6.721 �) -2-
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1 CITY OF NEWPORT BEACH STATE OF CALIFORNIA
DEPARTMENT OF BOATING AND WATERWAYS
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COURT PAPER
STATE OF CALIFORNIA
ST o. 113 (REV. a-721
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BY By
i le: yor Dir .e r
4"
Dg, e Signed Date Signed
I hereby certify that all conditions for exemption set forth in State
Administrative Manual Section 1209 have been complied with and this document
is exempt from review by the Department of Finance.
aSkJ�gI ��e'rn .�C,- k01 -SIU( )
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Direc or
Icy
SEP 13 1984
E
ELIZABETH YOST
Chief. Deputy Director
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COURT PAPER
STATE OF CALIFORNIA
STD. 113 (.REV. 8.72)
OSP
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First Amendment to Contract
i
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j Balboa Marina $800,000 Incremental Loan
This amendment is entered into on July 23, 1984, between the California
Department of Boating and Waterways (DEPARTMENT) and the City of Newport Beach
(APPLICANT). The DEPARTMENT and the APPLICANT agree to amend their Contract
of November 1, 1982, (Contract No. 82-21-82) as follows:
1. Paragraph 2 shall read:
"The DEPARTMENT will make a construction loan in the amount of THREE
MILLION THREE HUNDRED THOUSAND DOLLARS ($3,300,000) to the APPLICANT
in accordance with EXHIBIT A."
2. Paragraph 3(b) shall read:
"(b) Repayment of the first $2,500,000 of the loan shall. begin on
August 1, 1987, and repayment of the remaining $800,000 of the loart
shall begin on August 1, 1988."
3. Paragraph 4 shall react:
(a) The APPLICANT certifies that the obligation created by this contract
will not create an indebtedness or liability contrary to the provisions of
Section 18 of Article XVI of the Constitution of the State of California.
(b) If for any reason whatsoever the APPLICANT does not substantially
complete the PROJECT (as defined by EXHIBIT A), then all loan moneys expended
by the APPLICANT prior to such date are, to the extent permitted by law, a
general obligation of the APPLICANT and shall be due and payable ONE HUNDRED
EIGHTY (180) days after the close of fiscal year 1987-88.
(c) The APPLICANT shall establish a berthing rate for the PROJECT
sufficient to cover the requirements of Section 71.8(e) of the Harbors and,
Navigation Code; however, the rates for the rental of berths at the PROJECT
shall not average (average calculated by dividing total berth revenues by
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COURT PAPER
STATF OF CALIFORNIA
STD. 113 (REV. 8.721
OSP
total linear feet of berths) less than $7.50 per foot of boat or berth length
1 (whichever is longer) per month beginning with July 1, 1986. The APPLICANT
Ishall adjust such rate or rates as necessary to keep them at a level which
meets the aforestated requirements; however, such adjustments shall be made
no less than once each year and shall not be less than the equivalent percentage
change (over the preceding year) in the United States Bureau of Labor Statis-
tics' Consumer Price Index for the United States, or such other index as
selected by the DEPARTMENT.
(d) The APPLICANT shall each year conduct a survey of berthing charges
which prevail in the same market area as the PROJECT and shall transmit the
results of the survey to the DEPARTMENT by the 1st of April of each year.
The APPLICANT shall establish berthing charges which are reasonable and not
exorbitant.
(e) Notices required between the parties shall be deemed to have been
given when mailed to the respective addresses below, first-class postage
prepaid thereon.
to DEPARTMENT: Department of Boating and Waterways
1629 S Street
Sacramento, California 95814-7291
to BORROIVER: City of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92663
Save and except as herein amended, the Contract of November 1, 1982, shall
remain in full force and effect.
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!CITY OF NEWPORT BEACH
By
Title: - Mayor
D ie Signed -7-`
STATE OF CALIFORNIA
DEPARTMENT OF BOATING AND WATERWAYS
By -4'� 'Y��`i
Di ectb
Date Signe
II hereby certify that all conditions for exemption set forth in State
Administrative Manual Section 1209 have been complied with and this document
�is exempt from review by the Department of Finance.
'': l�kl�� rt,1 3L�0 (0l-S147 05-a)
17 C , �—
Direct
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SEP 131984
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COURT PAPER
S.rATG OF CALIFORNIA
STD. 113 (REV. 8-72)
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COURT PAPER
SiTATE OP CALIFORNIA
$Tn. 113 (REV. 8.72)1
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C - X3,710
SMALL CRAFT HARBOR
LOAN AND OPERATION CONTRACT
This CONTRACT is entered into on November 1, 1982, between the California
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(Department of Boating and Waterways (DEPARTMENT) and the City of Newport Beach
(APPLICANT).
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The DEPARTMENT and the APPLICANT agree as follows:
1, CONTRAC
This contract incorporates EXHIBIT A, Small Craft Harbor Construction
Loan and Operation Contract Standard Terms and Conditions, and EXHIBIT B,
Balboa Marina Basin Feasibility Report.
2. LM
(a) The DEPARTMENT will make a construction loan in the amount of TWO
MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) to the APPLICANT in
accordance with EXHIBIT A.
(b) The loan will bear compound interest at the rate of SEVEN AND
NINE -TENTHS PERCENT (7.90) per annum on the unpaid balance commencing with
the date of each transfer of loan funds by the DEPARTMENT.
3. LON REPAYMENT
(a) Repayment of the loan shall be made from gross revenues originating
from fees and rentals charged and received by the APPLICANT for services,
facilities and leaseholds provided or located within the project area defined
by EXHIBIT B; such gross revenues shall constitute sole security for loan
repayment.
(b) Repayment to the loan shall begin on August 1, 1985.
4. SPECIAL PROVISIONS
(a) The APPLICANT certifies that the obligation created by this
contract will not create an indebtedness or liability contrary to the
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COURT PAPER
STATE OF CALIFORNIA
ST D. 113 (REV. 8.72)
OSP
provisions of Section 18 of Article XVI of the Constitution of the State of
California.
(b) If the APPLICANT elects not to substantially complete the project
(defined by this contract, then all moneys expended by the APPLICANT prior
to the date of such election shall be due and payable by the APPLICANT to
the DEPARTMENT no later than ONE HUNDRED EIGHTY (180) days following the
close of the fiscal year in which the election has been made.
(c) The APPLICANT shall review berthing charges of public and privately
owned boating facilities in the general area of Newport Bay, serving the
same boating public, and shall then set rates at comparable levels for com-
parable facilities and services; however, the rates for the rental of berths
at the harbor shall not be less than $7.50 per foot'of boat or berth length
(whichever is longer) per month on July 1 of the year preceding the commence-
ment of loan repayment. The APPLICANT shall adjust such rates as necessary
to keep them at comparable levels with other public and privately owned
boating facilities in the general area; however, such adjustments shall be
made on less than once each year and shall not be less than the equivalent
percentage change (over the preceding year) in the United States Bureau of
Labor Statistics' Consumer Price Index for the United States, or such other
index as selected by the DEPARTMENT.
(d) Notices required between the parties shall be deemed to have been
given when mailed to the respective addresses below, first-class postage
prepaid thereon.
To DEPARTMENT: Department of Boating and Waterways
1629 S Street
Sacramento, California 95814
To APPLICANT: City of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92663
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I STATE OF CALIFORNIA
21 DEPARTMENT OF BOATING AND WATERWAYS CITY OF NEWPORT REACH
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Date Signed Date Signed
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8 I hereby certify that all conditions for exemption set forth in State
9) Administrative Manual Section 1209 have been compiled with and this
10 document is exempt from review by the Department of Finance.
131 � I'
DIRECTOR
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20Origina1 Signed by
21 PAY Diane L Kirkh&M
Deputy Direder
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DEPARTMENT OF BOATING AND WATERWAYS
CONTRACT # 82-21-82 with City of Newport Beach
Cid 326/82, Item 3680-101-516 (b-1)
APPROPRIATION DATA F.Y. 87-8-
HARBORS AND WATERCRAFT REVOLVING FM
FUND
Line Item Allotment Loan - Balboa Basin Auriga.
Amount of this estimate $ 2,500,000.00
Unencumbered Balance after posting this estimate $
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COURT PAPER
STATE OF CALIFORNIA
STD. 113 (REV. 8.72)
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EXHIBIT A
SMALL CRAFT HARBOR
CONSTRUCTION LOAN AND OPERATION
CONTRACT
STANDARD TERMS AND CONDITIONS
ARTICLE I - DEFINITIONS
A. CONTRACT means the contract to which these standard terms and
conditions are appended.
B. PROJECT means the small craft harbor project as described by and
constructed pursuant to this CONTRACT.
C. PROJECT AREA means the area delineated in EXHIBIT B, within which
the PROJECT will be undertaken. ti
D. PROJECT COSTS mean those management, design, material, labor or
construction costs which are necessarily incurred by the APPLICANT
for the purpose of completing the PROJECT; however, such PROJECT
COSTS shall not include indirect or overhead charges claimed by
the APPLICANT and shall not include any expenses incurred prior
to the effective date of this CONTRACT.
E. LOAN means a loan provided pursuant to Harbors and Navigation Code
Section 71.4 to finance all or part of the PROJECT COSTS; the LOAN
shall be made for a period of THIRTY (30) years commencing with the
issuance of the first LOAN warrant by the DEPARTMENT.
F. ACCOUNT means the account to be established by the APPLICANT for
the deposit of LOAN funds; such account to be designated the
CAL BOATING LOAN - Marina Development Account.
G. FUND BALANCE means those revenues received by the APPLICANT from
any source within the PROJECT AREA less the APPLICANT's expenses
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COURT PAPER
STATV OF CALIFORNIA
STD. 113 (REV. 8.72)
OSP
for (1) LOAN repayment, and (2) operation and maintenance of the
PROJECT.
ARTICLE II TERM OF CONTRACT
A. The term of this CONTRACT shall begin on the effective date of the
CONTRACT and continue until the LOAN, including all principal and
interest, is repaid in full.
B. This CONTRACT may be extended, amended or cancelled upon agreement
of all parties.
ARTICLE III - DISBURSEMENT OF LOA``
A. Conditions Precedent - The DEPARTMENT shall have no obligation to
disburse money under this CONTRACT unless and until:
1 ..
The APPLICANT demonstrates to the satisfaction of the DEPARTMENT
it has title to, or adequate interests in, the real property
comprising the PROJECT AREA, including but not limited to the
following:
a) land access to the PROJECT AREA by a maintained public way,
and
b) a right of passage,over a waterway, open to the public,
between the PROJECT and navigable waters, and
c) easements or other rights of way outside the PROJECT AREA
to provide utilities and services to the PROJECT.
2. The APPLICANT demonstrates that it has acquired permits necessary
to construct and operate the PROJECT.
B. LOAN payments to cover PROJECT COSTS may be made either (1) through
LOAN advances or (2) in arrears.
1. LOAN advances shall be subject to the following conditions:
a) The APPLICANT may request a LOAN advance from the DEPARTMENT
EPA:
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to cover those PROJECT COSTS expected to occur in the
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succeeding THIRTY (30) day period.
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b)
Requests for LOAN advances may not be made more than once
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every THIRTY (30) days.
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c)
All advanced LOAN funds shall be deposited in the ACCOUNT
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which shall reflect all receipts and expenditures of LOAN
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funds.
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d)
All expenditures of advanced LOAN funds shall be made only
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after receiving the written approval of the DEPARTMENT;
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requests for such approval must be accompanied by invoices
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or other evidence of PROJECT COSTS and may be made only
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once every THIRTY (30) days.
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e)
The APPLICANT shall request DEPARTMENT approval of the
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c
final expenditure of advanced LOAN funds no later than
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THIRTY (30) days following the DEPARTMENT approval of
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PROJECT acceptance.
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f)
The DEPARTMENT may withhold from LOAN advances an amount
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equal to TEN PERCENT (100) of approved PROJECT COSTS until
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the DEPARTMENT has approved the acceptance of the PROJECT
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per ARTICLE IV-B-4.
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g)
All LOAN funds advanced by the DEPARTMENT to the APPLICANT
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shall remain the property of the DEPARTMENT until such funds
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are approved for expenditure by the DEPARTMENT.
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h)
The APPLICANT may invest any advanced LOAN funds that are
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not required to meet immediate contractual obligations; any
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interest accrued from such investments shall be deposited in
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the ACCOUNT and shall be used to help pay the PROJECT COSTS.
COURT PAPER
STATE OF CALIF07NIA
STD. 113 IREV. 0-721
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i) The APPLICANT shall return to the DEPARTMENT any LOAN funds
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remaining in the ACCOUNT after all PROJECT COSTS have been
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paid; such LOAN funds shall be
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(1) returned to the DEPARTMENT no later than SIXTY (60)
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days following date of acceptance of the PROJECT by
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the APPLICANT, and
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(2) applied to the reduction of the LOAN.
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2.
LOAN payments made in arrears shall be made as follows:
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a) The APPLICANT may request a LOAN payment in arrears not
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more than once every THIRTY (30) days; such requests must
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be accompanied by invoices or other evidence of PROJECT
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COSTS.
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b) The APPLICANT shall record such payments in the ACCOUNT.
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c) The DEPARTMENT may withhold from LOAN payments an amount
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equal to TEN PERCENT (100) of approved PROJECT COSTS until
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DEPARTMENT approval of PROJECT acceptance.
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d) The APPLICANT shall request the final LOAN payment no later
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than THIRTY (30) days following DEPARTMENT approval of
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PROJECT acceptance.
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C. The
DEPARTMENT may withhold any LOAN payment if the APPLICANT
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fails to comply with any of the provisions of this CONTRACT.
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ARTICLE IV
- CONSTRUCTION OF PROJECT
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A. The
APPLICANT shall accept construction of the PROJECT no later
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than May 1, M(n
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B. The
APPLICANT shall obtain from the DEPARTMENT advance written
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approval of the following:
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1.
All bid documents prior to advertisement,
COURT PAPER
STATE OF CALIFORNIAA
STD. 113 (REV. 8721
OSP
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All contracts prior to award.
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3.
All construction change orders, and
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Acceptance of the PROJECT by the APPLICANT.
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C. Plans and specifications for the construction of the PROJECT shall:
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Be prepared by persons licensed by the State of California to
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undertake the type of design required by the PROJECT (engineer's/
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architect's certificate number to appear on construction contract
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design documents),
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2.
provide for all PROJECT facilities set forth in EXHIBIT B, and
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3.
provide for shoreside facilities for removing waste from vessel
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holding tanks in accordance with Section 654.1 of the Harbors
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and Navigation Code and Section 5200 of the California Adminis-
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trative Code, Title 14.
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D. All
contracts for construction of the PROJECT shall:
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1.
Be awarded in accordance with all applicable laws and regulations.
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2.
Contain the following clause: "Representatives of the Department
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of Boating and Waterways shall be allowed access to all parts
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of the construction work."
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3.
Contain a clause that there shall be no discrimination against
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any employee who is employed in the work covered by such contracts
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or against any applicant for such employment because of sex, race,
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religion, color, age, national origin, or physical handicap, and
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that such provisions shall include, but not be limited to:
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employment, upgrading, promotion or transfer, recruitment, or
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recruitment advertising, layoff or termination, rates of pay
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or other forms of compensation, and selection for training
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including apprenticeship.
COURT PAPER
STATE OF CALIFORNIA
5 TO. 113 (REV. 8-721
OSP
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4. Contain a clause that the contractor shall comply with all air
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pollution and environmental control rules, regulations, ordinances
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and statutes which apply to the PROJECT and any work performed
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pursuant to the contract.
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E.
Prior to the commencement of the construction_ of the PROJECT, the
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APPLICANT shall cause the contractor and a corporate surety acceptable
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to the DEPARTMENT to furnish in favor of the APPLICANT and the
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DEPARTMENT, as their interests may appear, bonds in the minimum
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amounts indicated below:
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1. Faithful performance - ONE HUNDRED PERCENT (100%) of the total
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contract bid price.
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2. Labor and materials - ONE HUNDRED PERCENT (100%) of the total
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contract bid price.
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F.
The APPLICANT's personnel and construction of the PROJECT shall be
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under the supervision of qualified inspectors. Inspection reports
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and related inspection data shall at all reasonable times be access -
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ible to the DEPARTMENT personnel, and on request copies of such
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reports and data shall be provided to the DEPARTMENT by the
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APPLICANT.
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ARTICLE
V - LAND CONTROL
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A.
The APPLICANT shall retain ownership of all land within the PROJECT
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AREA and shall not sell, exchange, transfer, mortgage, or hypothecate
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in any manner all or any portion of the real property within the
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PROJECT AREA, or required in connection therewith, without advance
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written approval of the DEPARTMENT.
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B.
The APPLICANT warrants that there shall be no encumbrance, lien,
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easement, license, title, cloud or other interest which may interfere
COURT PAPER
STATE OF CAL(FORNIA
STD. 113 (REV. 8.721
OSP
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with the PROJECT or use thereof by the public. Certification by
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the
DEPARTMENT that the APPLICANT has satisfied the conditions
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precedent to disbursement of LOAN funds shall not affect this
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warranty.
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ARTICLE
VI
— OPERATIO'd OF PROJECT
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A.
The
APPLICANT shall operate the PROJECT as or in conjunction with
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a small craft harbor.
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B.
The
APPLICANT shall:
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Continuously operate in an efficient and economical manner all
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PROJECT facilities acquired, constructed, improved, maintained,
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and completed in full or in part, as a result of the LOAN.
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2.
Make all repairs, renewals and replacements necessary to keep
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the PROJECT in good repair at all times.
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3.
Operate, maintain and control the PROJECT with its own employees;
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provided, however, that APPLICANT may lease portions of the
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PROJECT AREA, or let concessions for the operation of the
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PROJECT or parts thereof, provided such leases and/or concessions
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are made in accordance with Harbors and Navigation Code Sections
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72 and/or 72.2; and provided, further, that no lease or con-
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cession agreement shall be made without prior written approval
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of the DEPARTMENT.
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4.
Make the PROJECT facilities available to all on equal and
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reasonable terms.
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5.
Make all books, papers, records and accounts relative to the
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PROJECT open and available for inspection and audit by the
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DEPARTMENT or any authorized representative of the DEPARTMENT
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at any and all reasonable times.
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STATE OF CALIFORNIA
STD. 1 13 (REV. 0-72)
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6. Periodically fix, prescribe, and collect fees, rentals, or
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other charges for services and use of facilities within the
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PROJECT AREA sufficient to produce gross income adequate for
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payment of the following in the order set forth:
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a. All installments of principal and interest on money owed
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to the DEPARTMENT as they come due.
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b. All expenses of operation, maintenance, and repair of said
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facilities.
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ARTICLE
VII - FUND BALWICE
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A.
The APPLICANT shall retain and invest the FUND BALANCE in reasonably
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liquid assets.
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B.
Until the LOAN is paid in full, the APPLICANT shall make no
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expenditure of the FUND BALANCE other than for the advance repayment
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of the LOAN or the following: the APPLICANT may make FUND BALANCE
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expenditures for such purposes as enumerated by Section 71.9 of the
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Harbors and Navigation Code if before such an expenditure the
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APPLICANT obtains the written approval of the DEPARTMENT and if
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the FUND BALANCE remaining after the expenditure will equal one
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and one-half (1.5) times the amount of the APPLICANT's annual LOAN
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payments to the DEPARTMENT.
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C.
The APPLICANT shall record the FUND BALANCE in a separate account
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designated the "Cal Boating Loan Repayment Account"; such account
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shall reflect all receipts by the APPLICANT of revenues originating
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within the PROJECT AREA.
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ARTICLE
VIII - LUAU! REPAYMENT
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A.
Payments of principal and interest on the LOAN shall:
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1. be made in equal annual installments as determined by the
COURT PAPER
STATE OF CALIFORNIA
STo. 113 (Rev. 6-72)
OSP
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STATC OF CALIFORNIA
STO. 113 I REV. 8-72)
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DEPARTMENT, and
2. be due and payable on the first day of August of each year.
B. The DEPARTMENT may make adjustments in the schedule of annual LOAN
payments to reflect unscheduled payments of principal or interest
that may be made.
C. APPLICANT at its option may at any time make advance payment of all
or part of the principal on the LOAN remaining unpaid.
ARTICLE IX - LIABILITY AND FIRE -INSURANCE
A. The APPLICANT agrees to insure the PROJECT through any of the
following alternatives:
ALTERNATIVE I
The APPLICANT shall maintain in full._force and effect during the
term of this CONTRACT the following insurance in the minimum amounts
specified:
Bodily Injury or Death .......... $300,000 each person
..........$1,000,000 each occurrence
Property and Product Damage ..... $500,000 each occurrence
.....$1,000,000 aggregate
Fire Insurance..................900 of the full insurable value of
all insurable components of PROJECT
ALTERNATIVE II
1. The APPLICANT agrees that all contracts between it and the
designer (or designers) responsible for design and preparation
of plans and specifications of the PROJECT shall contain a
clause requiring said designer(s) to obtain Architect's
Professional Liability (errors and omissions) Insurance in
the amount of $250,000.
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COURT PAPER
STATE OF CALIFORNIA
STD. 113 (REV. 8.72)
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2. The APPLICANT agrees that all contracts between it and the
contractor (or contractors) responsible for construction of
the PROJECT shall contain a clause which requires the con-
tractor(s)
on-tractors) to obtain insurance in the minimum amounts specified
in Alternative I above.
3. The APPLICANT prior to acceptance and operation of the PROJECT
shall procure and maintain in full force and effect during
remainder of the term of this CONTRACT insurance in the amounts
specified in Alternative I.
ALTERNATIVE III
The insurance requirements specified in the preceding
Alternative I may be satisfied to the extent that the APPLICANT
can provide comparable protection for the APPLICANT and the
DEPARTMENT by virtue of the APPLICANT's participation in any "risk
management" plan, self insurance program, insurance pooling
arrangement, or any combination of these, provided that the
protection plan employed has been reviewed and approved by the
DEPARTMENT.
B. Copies of any policy or policies, including any new or renewal
policy, shall be in a form satisfactory to the DEPARTMENT. Copies
of such policy or policies shall be submitted to the DEPARTMENT at
least TWENTY (20) days prior to the effective date or dates thereof.
C. Such policy or policies shall contain the following endorsement:
The State of California, its officers, employees and agents are
hereby declared to be additional insureds under the terms 6f this
policy, as to activities of both APPLICANT and the DEPARTMENT in
respect to. PROJECT, and this policy shall not be cancelled without
THIRTY (30) days prior written notice to the DEPARTMENT.
D. Loss under any fire insurance policy shall be payable to the
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COURT PAPER
STATE OF CALIFORNIA
STD. 1 13 (REV. 8721
OSP
DEPARTMENT for deposit in an appropriate trust fund with the State
of California. If the DEPARTMENT deems it in the interest of the
State of California, the proceeds may be paid to the APPLICANT
upon the APPLICANT's application for the reconstruction of the
destroyed facilities.
E. The DEPARTMENT shall not be held liable for the payment of any
premiums or assessments on such insurance policy or policies.
ARTICLE X - INSTALLATION OF OTHER FACILITIES
A. The APPLICANT may at its own expense place or cause to be placed
within the PROJECT AREA any structure or structures, alterations,
and improvements in addition to those set forth and described
herein, provided that such facilities:
1. be constructed, maintained and operated for the use, enjoyment,
protection and service of the public;
2. do not directly or indirectly reduce the service capabilities
for the boating public called for in EXHIBIT B including the
sanitary and parking facilities; and
3. have the prior written,approval of the DEPARTMENT.
B. The DEPARTMENT shall not be obligated to make or cause to be made
any alterations, improvements, or repairs to any facilities within
the PROJECT AREA in addition to the original construction of the
PROJECT as provided for herein.
ARTICLE XI - SIGN REFERRING TO DEPARTMENT NANCING
The APPLICANT shall cause a permanent sign to be installed within the PROJECT
AREA which shall include a statement that the PROJECT was financed by the
DEPARTMENT. The sign may contain additional statements which recognize the
participation of other government agencies in the PROJECT. The sign shall
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COURT PAPER
STATE OF CALIFORNIA
STD. 113 (REV. 8-72)
OSP
be installed before the PROJECT is made available to the PUBLIC. The location
and makeup of the sign, including the dimensions, materials and lettering,
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shall be as approved by the DEPARTMENT.
ARTICLE XII - DIIRECTIOINAL SIGNS
The APPLICANT shall at the direction of the DEPARTMENT cause permanent
directional signs to be installed so as to provide adequate directions to
the public for reaching the PROJECT AREA. The signs shall be installed on
major roads in the area and in as close proximity as possible to freeway exits.
The locations and the makeup of the signs, including the dimensions, materials,
and lettering, shall be as approved by the DEPARTMENT.
ARTICLE XIII - RIGHT OF THE DEPARTMENT TO TAKE POSSESSION OF HE
PROJECT
IECT
A. The Director of the DEPARTMENT may, at his or her option, take
possession of the PROJECT if after NINETY (90) days written notice
the APPLICANT remains in breach of any of the provisions of this
CONTRACT. The Director of the DEPARTMENT shall, after the exercise
of such option, construct, operate or maintain the PROJECT for the
account of the APPLICANT until the LOAN is repaid in full; the
income received from the PROJECT during such time shall be applied
to the reduction of (1) the interest, and (2) the principal of the
LOAN.
B. The APPLICANT does hereby consent to the Director of the DEPARTMENT
taking possession of the PROJECT for the purposes enumerated by
this article; and further, pursuant to the provisions of this
article, the APPLICANT grants to the Director of the DEPARTMENT
the right of ingress and egress over all property owned or controlled
by the APPLICANT that is reasonably necessary for such purposes.
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1 ARTICLE XIV - WAIVER OF RIGHTS
2 It is the intention of the parties to this CONTRACT that from time to time
3 either party may waive certain rights under the CONTRACT. Any waiver at this
4 time by either party hereto of its rights with respect to a default or any
5 other matter arising in connection with this CONTRACT shall not be deemed to
6 be a waiver with respect to any other default or matter.
7 ARTICLE XV - REMEDIES NOT EXCLUSIVE
8 The use by either the DEPARTMENT or the APPLICANT of any remedy specified in
9 this CONTRACT for the enforcement of the CONTRACT is not exclusive and shall
10 not deprive the party using such remedy of, or limit the application of, any
11 other remedy provided by law.
12 ARTICLE XVI - OPINIONS AND DETERMINATIONS
1.3 Where the terms of this CONTRACT provide for action to be based upon the
14 opinion, judgment, approval, review, or determination of either the DEPARTMENT
15 or APPLICANT, such terms are not intended to be and shall never be construed
16 as permitting such opinion, judgment, approval, review, or determination to
17 be arbitrary, capricious, or unreasonable.
18 ARTICLE XVII - SUCCESSORS AND ASSIGNS OBLIGATED
19 This .CONTRACT and all of its provisions shall apply to and bind the successors
20 and assigns of the parties hereto.
21 ARTICLE XVIII - ASSIGNMENT
22 No assignment or transfer of this CONTRACT or any part hereof, rights hereunder,
23 or interest herein by APPLICANT shall be valid unless and until it is approved
24 by the DEPARTMENT and made subject to such reasonable terms and conditions as
25 the DEPARTMENT may impose.
26 ARTICLE XIX - RIGHT OF ENTRY BY THE DEPARTMENT
27 The DEPARTMENT and its agents may, at any and all reasonable times during the
COURT PAPER
STATE OF CALIFORNIA
STD. 113 (REV. 8-72) - -13-
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1 TERM OF CONTRACT, enter the PROJECT AREA for purposes of inspecting the PROJECT.
2 ARTICLE XX -LIABILITY.
3 1. APPLICANT waives all claims and recourse against the DEPARTMENT
4 including the right to contribution for any loss or damage arising
5 from, growing out of., or any way connected with or incident to this
6 CONTRACT except claims arising from the concurrent or sole negligence
7 of the DEPARTMENT, its officers, agents and employees.
8 2. The APPLICANT shall indemnify, hold harmless, and defend the
9 DEPARTMENT, its officers, agents and employees against any and all
10 claims, demands, damages, costs, expenses or liability arising out
11 of the acquisition, design, construction, operation, maintenance,
12 existence or failure of the PROJECT.
13 3. If the DEPARTMENT is named as a co-defendant pursuant to Government
14 Code Sections 895, et seq. the APPLICANT shall notify the DEPARTMENT
15 and represent it unless the DEPARTMENT elects to represent itself.
16 If the DEPARTMENT undertakes its own defense, it shall bear its own
17 litigation costs, expenses and attorney's fees.
18 ARTICLE XXI - PRIOR IERMINATIM-
19 The CONTRACT shall terminate on the date specified in Article IV-A if by
20 such date (1) the APPLICANT has not met all conditions precedent to disburse-
21 ment under this CONTRACT, or (2) if no disbursement by the DEPARTMENT of LOAN
22 funds occurs.
23 ARTICLE XXII - SUBJECT TO AUDIT
24 All contracts entered into by the APPLICANT involving an expenditureof LOAN
25 funds shall contain a provision which indicates that the contracting parties
26 shall be subject to the examination and audit of the California Auditor General)
27 for a period of three (3) years after final payment under the CONTRACT.
COURT PAPER
.STATE or —14--
STD. 1 : _ -...