HomeMy WebLinkAbout06 - Tower Optical Company, Inc. AgreementITEM 6
TO: Members of the Newport Beach City Council
FROM: Tony Melum, Division of Harbor Resources
SUBJECT: Licensee 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.
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 - Optical Telescopes
Photos of locations for telescope placement
License Agreement
Tower Optical Coin - Operated Telescopes
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Balboa Pier Telescope Site
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Newport Pier Telescope Site
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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.
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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.
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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
ATTEST:
LaVonne Harkless
City Clerk
Tod Ridgeway, Mayor
TOWER OPTICAL COMPANY, INC.
( "Licensee ")
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APPROVED AS TO FORM:
Robin L. Clauson
Assistant City Attorney
Its:
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