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HomeMy WebLinkAboutC-855 - Franchise to Operate Ferry• i BALBOA ISLAND FERRY LEASE AGREEMENT This Lease Agreement ("Agreement") is entered into this IS+ day of July 2007, by and between the City of Newport Beach ("Lessor"), a municipal corporation, and the Balboa Island Ferry, Inc., a California corporation, whose address is 410 South Bay Front, Newport Beach, California 92662 ("Lessee"). Lessee and Lessor are each a "Party" and together the "Parties" to this Agreement. RECITALS A. Lessor is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City; B. The State of California became the owner of tidelands on admission to the union in 1850. Lessor manages those tidelands pursuant to various legislative grants from the State. The State Lands Commission, which administers tidelands, generally requires a trustee to negotiate leases on the basis of the current market value of the parcel. Failure of a trustee to receive consideration approximating the fair market value of leased tidelands could, under certain circumstances, be considered a violation of Section 6 of Article XVI of the State Constitution (the prohibition of gifts of public funds to private entities); C. Lessor has, since 1938, leased a small portion of these tidelands to Lessee for the construction and maintenance of slips, docks, ways and other appurtenances, all to be used in conjunction with the operation of 2 to 5 ferryboats which transport persons, vehicles and freight between terminals located near Agate Avenue on Balboa Island and Palm Street on Balboa Peninsula (the "Ferry"); D. The unique nature of Lessee's business operations, as well as Lessee's long history with the operations of the Ferry, are declared by the Lessor to be so unique as to allow Lessor to enter into a new lease agreement with Lessee on a sole -source basis; E. Lessee and Lessor are currently parties to a lease agreement dated October 25, 1988, which expires on September 30, 2013 ("1988 Lease"), and Lessee is also a franchisee pursuant to Ordinance No. 88-33 ("1988 Franchise"); F. Lessee and Lessor now intend to terminate the 1988 Lease and the 1988 Franchise, and enter into this Agreement and a new franchise, which shall extend the term of the lease agreement to July 31, 2032, require Lessee to rebuild and repair the ramps, docks and appurtenant improvements on the 1 premises, and update certain lease provisions. The premises are depicted on Exhibit "A" North and Exhibit "A" South, which are attached hereto and incorporated in full by this reference (hereinafter referred to as the "Premises"); G. The new franchise, approved by the City Council pursuant to Ordinance No. 2007-11 and entered into concurrently herewith, shall grant Lessee the right to operate the Ferry across Lower Newport Bay and to charge a toll to patrons for use of the Ferry (hereinafter the "Franchise"); H. In consideration for the extension of the lease term and the renewal of the Franchise, Lessee has agreed to rebuild and repair the steel structures on the ramps and appurtenant dock and make other improvements to the Premises in the amount of $200,000.00 ("Capital Improvements"). In addition, at the request of the State Lands Commission, Lessee has agreed to surrender possession of a portion of the property that had been included in the 1988 Lease, which is depicted in Exhibit B attached hereto and incorporated in full by this reference; I. The operation of the Ferry is consistent with the trust imposed upon these tidelands which require they be used for commerce, fishing, and navigation; J. It is not feasible to build a bridge, tunnel, combination thereof, or other normal highway structure in lieu of the use of the Ferry; K. The operation of the Ferry is on a route classified as a public road within the State and has not been designated as a route on the Interstate System; L. The Ferry terminal facility is publicly owned, and the Ferry and Ferry terminal facility provides substantial public benefits; M. The Ferry does not operate in international waters; N. The City Council has the authority to enter into a lease of tidelands or beachfront property when, as is the case here, the property was under lease as of the effective date of the Charter; and O. This Agreement is consistent with provisions of the Land Use Plan of the Local Coastal Program, the Circulation Element of the General Plan, and other documents utilized by Lessor to evaluate the traffic impacts of impacting land uses and proposed projects. In consideration of the mutual promises and obligations contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, Lessee and Lessor hereby terminate the 1988 Lease and enter into this Agreement on the following terms and conditions: 2 • • NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Leased Premises Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises depicted on Exhibit "A" North and Exhibit "A" South. The rights granted herein are subject to the terms, covenants and conditions hereinafter set forth, and Lessee covenants, as a material part of the consideration for this Agreement, to keep and perform each and every term, covenant and condition of this Agreement. 2. Term The term ("Term") of this Agreement shall commence on July 1, 2007 ("Commencement Date"), and continue for a period of twenty-five (25) years, to expire on July 31, 2032, unless terminated earlier as set forth herein. 3. Rent Payments A. (i) Base Rent. Base Rent shall be established at Seventy Thousand and no/100 Dollars ($70,000.00) per year, and shall be adjusted annually, as provided below. (ii) Base Rent Adjustment. Upon each anniversary of the Commencement Date, Base Rent shall be adjusted in proportion to changes in the Consumer Price Index. Such adjustment shall be made by multiplying the original Base Rent by a fraction, the numerator of which is the value of the Consumer Price Index for the calendar month three (3) months preceding the calendar month for which such adjustment is to be made and the denominator of which is the value of the Consumer Price Index for the same calendar month immediately prior to the Commencement Date. For example, if the adjustment is to occur effective March 1, 2008, the index to be used for the numerator is the index for the month of December, 2007, and the index to be used for the denominator is the index for the month of December preceding the Commencement Date. The "Consumer Price Index" to be used in such calculation is the Consumer Price Index, All Urban Consumers (All Items), for Los Angeles - Riverside — Orange County, CA, published by the United States Department of Labor, Bureau of Labor Statistics (1982-84 = 100). If both an official index and one or more unofficial indices are published, the official index shall be used. If said Consumer Price Index is no longer published at the adjustment date, it shall be constructed by conversion tables included in such new index. In no event shall the amount payable under this Agreement be reduced below the Base Rent in effect immediately preceding such adjustment. 3 • • (iii) Base Rent Adjustment — 15 nears. Notwithstanding subdivision (ii), on the 15th anniversary of the Commencement Date, Base Rent shall be adjusted by adding the total rent paid (the higher of percentage rent or base rent, whichever is applicable) for each of the previous three years and dividing by three. The resultant amount shall be the new Base Rent for the remainder of the Lease Temi, as adjusted by the CPI per Subdivision (ii). However, in the event that the amount of Base Rent derived from this calculation is less than the initial Base Rent as adjusted by Subdivision (ii), the initial Base Rent as adjusted by Subdivision (ii) shall be the Base Rent for the remainder of the Lease Term, adjusted by Subdivision (ii). B. Percentage Rent. For the authorized use and occupancy of the Premises, Lessee shall pay Lessor five percent (5%) of the annual "Gross Receipts", defined below, as Percentage Rent. C. Percentage Rent Accounting and Payment. Within forty-five (45) days after the end of each calendar quarter of the Term, Lessee shall furnish to Lessor a statement in writing, certified by Lessee and a Certified Public Accountant to be correct, showing the total Gross Receipts made in, upon, or from and/or otherwise attributable to the Premises for Ferry operations during the preceding calendar quarter, and shall accompany each such statement with the Percentage Rent payment for that calendar quarter. D. Definition of Gross Receipts. "Gross Receipts" shall mean: all money, cash receipts, assets, property or other things of value, including but not limited to gross charges, Ferry tolls, sales, fees and commissions made or earned by Lessee and/or all the assignees, sub -licensees, licensees, or permittees of Lessee, collected from Ferry operations, without, except as expressly provided below, deduction from gross receipts for any overhead or cost or expense of operations, such as, but without limitation to salaries, wages, interest, debt amortization, credit, collection costs, discount from credit card operations, insurance and taxes. Each installment or credit sale shall be treated as a sale for the full price in the month during which such sale is made, irrespective of whether or when Lessee receives payment therefor. Gross Receipts shall not include, or if included there shall be deducted (but only to the extent they have been included), the following: Sales and use taxes, so-called luxury taxes, consumers' excise taxes, gross receipts taxes, and other similar taxes now or in the future imposed on the sale of services, but only if such taxes are added to the selling price and collected from customers; ii. Cash refunds made to customers in the ordinary course of business; and 4 • • iii. Amounts paid to charge card or credit card issuers. Gross Receipts shall be reported on the cash method. Notwithstanding the foregoing, Lessee agrees to allow only that use authorized in Section 7, and that any unauthorized use shall constitute a breach of this Agreement and shall, at the option of Lessor, terminate this Lease. In the event the Premises are used for uses other than that specifically authorized in Section 7, then in addition to all other remedies allowed by law or authorized elsewhere in this Agreement, Lessor shall be entitled to receive from Lessee and Lessee shall be required to pay to Lessor additional Percentage Rent calculated as One Hundred Percent (100%) of the gross receipts accountable to such unauthorized use, whether for cash or credit, or otherwise, and including the value of all consideration other than money received for that use. This amount shall be retroactive to the commencement of such unauthorized use and shall continue until the unauthorized use is abated. This additional rent payment shall be subject to the due date for the next Percentage Rent payment and the provisions for delinquent payments. The parties agree and understand that the collection and acceptance by Lessor of this additional rent payment, shall not, in any way be deemed a waiver nor estoppel of Lessor's right to require abatement of the unauthorized use or at Lessor's option to pursue any other remedies available at law or equity. E. Annual Statements of Gross Receipts and Rent Reconciliation. Within forty-five (45) days after the end of each calendar year during the Term, as it may be extended, Lessee shall furnish a written statement to Lessor, certified by Lessee and a Certified Public Accountant to be correct, showing the total Gross Receipts made in, upon, or from and/or otherwise attributable to the Premises during the preceding calendar year (or fractional year at the beginning of the Term if the Commencement Date is other than the first day of the year), the Percentage Rent due and the Percentage Rent paid. If Lessee has paid Lessor more Percentage Rent than the Base Rent, Lessor shall retain any amount of the Percentage Rent in excess of the Base Rent. If Lessee has paid Lessor less Percentage Rent than the Base Rent, Lessee shall include, with its annual statement, a payment to the Lessor equal to the difference between the Base Rent and Percentage Rent. F. Late Charge. A ten percent (10%) late charge shall be added to any payment required under this Agreement if not received by Lessor within thirty (30) days following the due date. In addition, all unpaid fees shall accrue interest at the rate of one and a half percent (11/2%) per month or any portion of a month until paid in full. 5 • • G. Rent Payments Exclusive of Other Fees. Rent payments shall be in addition to any other fee or fees required to be paid by Lessee; provided, however, that any future franchise fees imposed may be deducted from the rental payments owed under this Agreement. H. Payment Procedure. All rent payments and others sums payable pursuant to this Agreement shall be sent to: City of Newport Beach Cashiering Division 3300 Newport Blvd. PO Box 1768 Newport Beach, CA 92658 or at such other place as Lessor may hereafter designate in writing. 4. Production of Statement. Records and Audit Lessee shall keep within the County of Orange (and shall require any permitted subtenant to keep within the County of Orange) full, complete and proper books, records and accounts of its daily Gross Receipts, both for cash and on credit. Lessee agrees to make available for inspection by Lessor at the Premises, a complete and accurate set of books and records of all sales of goods, wares, and merchandise and revenue derived from the conduct of business or activity in, at or from the Premises from which Gross Receipts can be determined. Lessee shall also make available, upon Lessor's request, all supporting records. Lessee shall retain and preserve for at least three (3) years all records, books, bankbooks or duplicate deposit books and other evidence of Gross Receipts. Lessor shall have the right, upon reasonable notice, during the Term and within one hundred eighty (180) days after expiration or termination of this Agreement to inspect and audit Lessee's books and records and to make transcripts to verify the rent payments due to the Lessor. The audit may be conducted at any reasonable time during normal business hours. Lessee shall cooperate with Lessor in makingthe inspection and conducting the audit. Lessor shall also be entitled, once during each calendar year, and once within one hundred eighty (180) days after expiration or termination of this Agreement, to an independent audit of Lessee's books of account, records, cash receipts, and other pertinent data to determine Lessee's Gross Receipts. The audit shall be conducted at Lessor's sole cost and expense by a certified public accountant designated by Lessor. The audit shall be limited to the determination of Gross Receipts and shall be conducted during usual business hours in a manner that minimizes any interference with the conduct of Lessee's regular business operations. If the audit concludes that there is a deficiency in the payment of any rent payment, the deficiency shall become due and payable within twenty (20) days and if there is an overpayment, Lessor shall refund the amount of the overpayment within twenty (20) days. Lessor shall bear its costs of the audit unless the audit shows 6 • • that Lessee understated Gross Receipts by more than five percent (5%), in which case Lessee shall pay all Lessee's reasonable costs of the audit. Lessor shall keep any information gained from such statements, inspections or audits confidential to the maximum extent permitted by law. Lessor shall not disclose financial information received in confidence and pursuant to this Agreement except to carry out the purposes of this Agreement unless disclosure is required (rather than permitted) by law. However, Lessor may disclose the results of any audit in connection with any financing arrangements, the sale or transfer of Lessor's interest in the Premises, pursuant to order of a court or administrative tribunal, or to collect any outstanding rent payment. In the event of any audit by Lessor in accordance with this Agreement, Lessee may contest the results of Lessor's audit by performing a confirming audit within thirty (30) days of receipt of Lessor's audit results and supporting evidence, using an independent Certified Public Accountant reasonably acceptable to Lessor. If Lessee's audit discloses that Lessor's audit was incorrect by more than twenty percent (20%), then Lessor shall pay the cost of Lessee's contesting audit. The acceptance by Lessor of any money paid to Lessor by Lessee as a rent payment for the Premises, as shown by any statement furnished by Lessee, shall not be construed as an admission of the accuracy of said statement, or of the sufficiency of the amount of the rent payment. 5. Services for City City employees in City vehicles in the course of duties related to City business shall be permitted to use the Ferry without charge to City. 6. Utilities, Taxes and Assessments Lessee shall pay, and discharge prior to delinquency, any and all charges for water, gas, electricity, telephone, garbage disposal and other public services furnished to the Premises, or occupants thereof. Lessee shall pay, prior to delinquency, any and all possessory interest taxes, property taxes, all taxes assessed against and levied upon fixtures, furnishings, equipment, or improvements, such as piers, floats and ways, and all other personal property of Lessee located on the Premises, real property taxes, and fees and assessments which may at any time be imposed or levied by any public entity and attributable to Lessee's use of the Premises. Lessor hereby gives notice to Lessee, pursuant to Revenue and Tax Code Section 107.6 that this Agreement may create a possessory interest which is the subject of property taxes levied on such interest, the payment of which taxes shall be the sole obligation of Lessee. Lessee shall hold Lessor harmless from any and all loss, damage, or liability that • • may result from the failure of Lessee to comply with the provisions of this Section. 7. Use of the Premises Lessee shall use the Premises solely for the continued operation of the Ferry between Balboa Island and the Balboa Peninsula, as authorized in the Franchise. Lessee shall construct, maintain and operate piers, docks, landings, slips, ramps gangways floats, piles and other facilities necessary for the operation of the Ferry. Lessee shall be entitled to tie up a ferryboat on each side of the ferry slip on Balboa Island for storage and maintenance purposes. Sufficient clearance from other docks shall be maintained to allow ferryboats to be safely maneuvered into position to tie up on the sides of the slip. In addition, Lessee shall remove the ways as shown in Exhibit "B" within a reasonable period of time. Lessee shall not install decorations, or install any signs, lettering or advertising of any type, or any other type of visual displays, on or about the Premises without the prior written consent of Lessor, other than those existing at the commencement of this Agreement. Lessor shall maintain the existing restrooms at the Agate Street terminal for the use of Ferry patrons and members of the general public. Lessee is granted rights to perform minor maintenance of restrooms and/or restocking of restroom supplies at Lessee's expense when Lessee believes that good customer service demands rapid maintenance or restocking. Lessee is encouraged to contact Lessor's General Services Department whenever the restroom is not in good order. 8. Permits and Licenses Lessee, at its sole expense, shall obtain and maintain during the Term of this Agreement, all appropriate permits, licenses and certificates that may be required by any governmental agency in connection with the operation of its business. 9. Acceptance of Condition of Premises Lessee shall accept the Premises in "as is" condition, with no warranty, express or implied from the Lessor as to any latent, patent, foreseeable and unforeseeable condition of the Premises. a • • 10. Alterations or Construction of Improvements Subject to Lessor's written approval as set forth below in this Section, and as a material consideration for the extension of the term of this Lease Agreement and renewal of the Franchise, Lessee shall rebuild and repair the steel structures which connect the floating docks to the bulkheads on the Premises and agrees to complete such Capital Improvements within five (5) years of the Commencement Date of this Agreement. Lessee shall not alter existing improvements, nor construct new improvements, on the Premises, unless: A. Lessor has reviewed and approved all plans and specifications for the work to be performed and issued all appropriate permits that are preconditions to construction, including, but not limited to, any permits required by the City's Public Works Department; B. Lessee has obtained all other permits required by law to be obtained prior to construction, including, without limitation, permits or approvals required of the Coastal Commission, State Lands Commission and/or Army Corps of Engineers; and C. The proposed alteration and/or construction is consistent with the limitations on use of the property imposed by this Agreement, as well as any franchise, permit, license or other approval related to the use of the Premises or operation of the Ferry. Prior to the commencement of any work pursuant to this Section, Lessee shall obtain insurance to be approved as to form and sufficiency by Lessor's Risk Manager, and shall add Lessor to such insurance as an additional insured. 11. Reconstruction Notwithstanding the provisions of Section 10, Lessee shall be entitled to reconstruct improvements on the Premises that are damaged by fire, storm, wind, wave or similar perils. Lessee shall commence reconstruction within sixty (60) days from the date of the damage, and diligently pursue same to completion. Lessee shall not be entitled to any abatement in rent or other form of compensation from Lessor for loss of use of the Premises or the improvements in the event of damage or destruction of improvements unless the damage is caused by the wrongful conduct of Lessor or its employees, officers or agents. 12. Maintenance and Repair Lessee shall be responsible for maintenance of the Premises, including piers, docks, landings, slips, ramps, gangways, floats and piles. Lessee shall at all 9 • • times during the Term keep the Premises and all improvements located thereon in good order, condition and repair. Lessee shall also be responsible for dredging within the Premises on an as -needed basis, or as directed by Lessor. Lessee shall not be responsible for maintaining ways which are outside the scope of the Premises. Unless otherwise required by federal, state or local laws, Lessee shall not be required to obtain permits for maintenance work. 13. Liens Lessee shall not permit to be enforced against the Premises, any portion thereof or any structure or improvement thereon, any mechanics, materialmens, contractors or other liens arising from, or any claims for damages growing out of, any work or repair, construction or alteration of improvements on the Premises. Lessee shall give Lessor at least thirty (30) days prior written notice before commencing construction of any kind on the Premises so that Lessor may post appropriate notice of non -responsibility. 14. Lessor Paving Claim Should Lessee fail to pay and discharge, when due and payable, any tax or assessment, or any premium or other charge in connection with any insurance policy which Lessee is obligated to provide, or any lien or claim for labor or material employed or used in the repair, alteration, construction, or maintenance of improvements on the Premises, then Lessor may, after ten (10) days written notice to Lessee and at its option, pay any such tax, assessment, lien, claim, premium or charge, or settle or discharge any action, or satisfy and judgment thereon. All costs and expenses incurred or paid by Lessor pursuant to this paragraph, together with interest at the rate of ten percent (1 O%) per annum from the date of payment, shall be deemed to be considered as additional rent and shall be paid by Lessee within ten (10) days after written notice that such payments are due. 15. Standard of Care Lessee agrees to perform all services required hereunder in a manner commensurate with community professional standards. 16. Inspection Lessor shall be entitled to inspect the Premises for compliance with the terms of this Agreement, and for compliance with all applicable Federal, State and local (including those of the City) govemment laws, statutes, ordinances, rules and regulations. Lessor may exercise these inspection rights at any time without notice. 10 • • 17. Assignment/Transfers Lessee shall not transfer or assign this Agreement, or any right or interest created hereunder, or sublet the Premises or any portion thereof, unless and until Lessee has obtained the prior written consent of Lessor. Lessor shall not unreasonably withhold such consent, but Lessor reserves the right to condition approval of any assignment, transfer or subletting, upon Lessor's determination that the assignee, transferee or sublessee is as financially responsible as Lessee, has the experience and ability to operate the Ferry as well as Lessee, will agree to the terms and conditions of the franchise and other documents pertaining to the operation of the Ferry, and will provide the same level of public service as has been provided by Lessee. Should Lessee attempt to transfer, assign or sublet Lessee's interest in this Agreement or the Premises, except as provided in this Section, or should any of Lessee's rights under this Agreement be sold or otherwise transferred, or should Lessee be adjudged insolvent or bankrupt, then Lessor may, at its option, terminate this Agreement by giving thirty (30) days written notice. Should Lessor consent to any transfer, assignment, or subletting attempted without prior approval, that consent shall not constitute a waiver of any of the restrictions in this Section and the same shall apply to each subsequent attempt to transfer, assign or sublet this Agreement or the Premises. 18. Bankruptcy Lessee agrees that in the event all, or substantially all, of Lessee's assets are placed in the hands of a receiver or trustee and remain so for a period of thirty (30) days, or should Lessee make an assignment for the benefit of creditors or be adjudicated bankrupt, or should Lessee institute any proceedings under the Bankruptcy Act or similar law wherein Lessee seeks to be adjudicated bankrupt or to be discharged of its debts, or seeks to effect a plan of liquidation or reorganization, or should any involuntary proceedings be filed against Lessee and not dismissed or stayed within sixty (60) days, then this Agreement or any interest in and to the Premises shall not become an asset in any such proceeding and, to the extent permitted by law, Lessor may declare this Agreement terminated and take possession of the Premises and improvements. 19. Termination Lessor may terminate this Agreement immediately, or take any action authorized by law, in the event of a material breach and default as defined in Section 20. Either Lessor or Lessee may terminate this Agreement upon thirty (30) days notice to the other party if operation of the Ferry is rendered impossible or not feasible due to a natural disaster, requirements imposed by a regulatory agency, global warming or other Force Majeure event. 11 • • 20. Defaults The occurrence of any one or more of the following events shall constitute a material default and breach of this Agreement by Lessee: A. Vacation or abandonment of the Premises by Lessee; B. The failure of Lessee to make any payment required by this Agreement when such failure continues for a period of ten (10) days after written notice that payment is due; or C. The failure of Lessee to observe or perform any of the covenants, conditions, or provisions of this Agreement, except for the default specified in Section 20(B) above, where such failure continues for a period of twenty (20) days after written notice of the noncompliance, provided, however, that if the nature of Lessee's default is such that more than twenty (20) days are reasonably required for its cure, then Lessee shall not be in default if Lessee commenced the cure within twenty (20) days after written notice and thereafter diligently pursues cure to completion. 21. Removal Upon expiration of the Term of this Agreement, or earlier termination as provided in Section 19, Lessee shall surrender possession of the Premises to Lessor in good condition and repair. Before surrendering possession, Lessee may, without expense to Lessor, remove from the Premises all signs, furnishings and personal property located on the Premises. If Lessee fails to remove any item of personal property, Lessor may deem such items to be abandoned and the sole property of Lessor, or remove and dispose of the items in which event the expense of removal and disposition shall be borne by Lessee and become immediately due and payable. 22. Indemnification To the fullest extent permitted by law, Lessee hereby agrees to defend, indemnify, and hold Lessor harmless from and against any and all liability, claims damages, suits, penalties, actions, demands, judgments, losses, or expenses of any kind or nature, including damage to any property and injury (including death) to any person (collectively, "Claims"), arising out of or resulting in any way, in whole or in part, from Lessee's use, maintenance, repair or occupation of the Premises, or any acts or omissions, intentional or negligent, of Lessee or its officers, agents or employees in the performance of their duties and obligations under this Agreement, except to the extent such claims are caused by the sole negligence or willful misconduct of Lessor, its officers, agents and employees. 12 • • 23. Insurance Without limiting Lessee's indemnification of Lessor, Lessee shall obtain, provide and maintain at its own expense during the Term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to Lessor. A. Certificates of Insurance. Lessee shall provide certificates of insurance with original endorsements to Lessor as evidence of the insurance coverage required herein. Insurance certificates must be approved by Lessor's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with Lessor at all times during the Term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by Lessor's Risk Manager. D. Coverage Requirements. Workers' Compensation Coverage. Lessee shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for its employees in accordance with the laws of the State of California. In addition, Lessee shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of Califomia for all of the subcontractor's employees. Any notice of cancellation or non -renewal of all Workers' Compensation policies must be received by Lessor at least thirty (30) calendar days (10 calendar days written notice of non-payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against Lessor, its officers, agents, employees and volunteers for losses arising from work performed by Lessee for Lessor. ii. Commercial General Liability Coverage. Lessee shall maintain commercial general liability insurance in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence for bodily injury, personal injury, and property damage. If commercial general 13 liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. ill. Protection and Indemnity insurance. Lessee shall maintain Protection and Indemnity insurance in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence for bodily injury, personal injury, and property damage for all activities of Lessee arising out of or in connection with this Lease or the Franchise. iv. Automobile Liability Coverage. Lessee shall maintain automobile insurance covering bodily injury and property damage for all activities of the Lessee arising out of or in connection with the services to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than Two Million Dollars and 00/100 Dollars ($2,000,000.00) combined single limit for each occurrence. v. Fire and Extended Coverage. Lessee shall maintain fire and extended coverage insurance, together with insurance against vandalism, theft and malicious mischief, on the improvements and fixtures, alterations, trade fixtures, signs, equipment, personal property and inventory on or upon the Premises from loss or damage to the extent of their full replacement value. E. Endorsements. Each liability insurance policy shall be endorsed with the following specific language: Lessor, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of Lessee. ii. This policy shall be considered primary insurance as respects to Lessor, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from Lessee's operations. Any insurance maintained by Lessor, including any self -insured retention Lessor may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 14 iv. The insurer waives all rights of subrogation against Lessor, its elected or appointed officers, officials, employees, agents and volunteers. v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to Lessor, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non-payment of premium) written notice has been received by Lessor. F. Timely Notice of Claims. Lessee shall give Lessor prompt and timely notice of any claim made or suit instituted arising out of or resulting from Lessee's performance under this Agreement. G. Additional Requirements. i. All insurance shall be written on an occurrence -made form. A claims -made form of insurance is prohibited under this Agreement; and ii. In the event Lessor's Risk Manager determines that (i) the Lessee's activities in the Premises creates an increased or decreased risk of loss to the Lessor, (ii) greater insurance coverage is required due to the passage of time, or (iii) changes in the industry require different coverages be obtained, Lessee agrees that the minimum limits of any insurance policy required to be obtained by Lessee may be changed accordingly upon receipt of written notice from the Risk Manager,; provided that Lessee shall have the right to appeal a determination of increased coverage by the Risk Manager to the City Council within ten (10) days of receipt of notice from the Risk Manager. Not more frequently than once every year, Lessee may increase the insurance coverage as reasonably required by Lessor so that at all times, the amount of liability and Premises damage insurance coverage maintained by Lessee reasonably and fully protects Lessor. 24. Hazardous Substances A. From the date of execution of this Agreement and throughout the Term, Lessee shall not use, store, manufacture or maintain any Hazardous Substances on the Premises, except in the ordinary course of operating 15 and maintaining its ferry boats, docks and landings in accordance with applicable law and regulations. B. For purposes of this Agreement, the term "Hazardous Substance" means: (i) any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. ("CERCLA"); the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resource Conversation and Recovery Act, 42 U.S.C. Section 6901 et seq. ("RCRA"); the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Clean Water Act, 33 U.S.C. Section 1251 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the California Hazardous Substance Account Act, Health and Safety Code Sections 25330 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Sections 25249.5 et seq.; California Health and Safety Code Sections 25280 et seq. (Underground Storage of Hazardous Substances); the California Hazardous Waste Management Act, Health and Safety Code Sections 25170.1 et seq.; California Health and Safety Code Sections 25501 et seq. (Hazardous Materials Response Plans and Inventory); or the Porter -Cologne Water Quality Control Act, Water Code Sections 13000 et seq., all as they, from time -to -time may be amended, (the above -cited statutes are here collectively referred to as "the Hazardous Substances Laws") or any other Federal, State or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect; (ii) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory, including but not limited to negligence, trespass, intentional tort, nuisance, waste or strict liability or under any reported decisions of a state or federal court; (iii) petroleum or crude oil; and (iv) asbestos. C. Notwithstanding any contrary provision of this Agreement, and in addition to the indemnification duties of Lessee set forth in Section 22 in this Agreement, Lessee agrees to indemnify, defend with counsel reasonably acceptable to Lessor, protect, and hold harmless Lessor, its officials, officers, employees, agents, and assigns from and against any and all losses, fines, penalties, claims, damages, judgments, or liabilities, including, but not limited to, any repair, cleanup, detoxification, or preparation and implementation of any remedial, response, closure or other plan of any kind or nature which the Lessor, its officials, officers, employees, agents, or assigns may sustain or incur or which may be imposed upon them in connection with the use of the Premises provided 16 under this Agreement, arising from or attributable to the storage or deposit of Hazardous Substances. This Section is intended to operate as an agreement pursuant to Section 107(e) of CERCLA, 42 USC Section 9607(e), and Califomia Health and Safety Code Section 25364, to insure, protect, hold harmless, and indemnify Lessor for any claim pursuant to the Hazardous Substance Laws or the common law. D. Lessor agrees that Lessor will not, and will not authorize any third party to use, generate, store, or dispose of any Hazardous Substances on, under, about or within the Premises in violation of any law or regulation. Lessor and Lessee each agree to defend, indemnify and hold harmless the other and the other's partners, affiliates, agents and employees against any and all losses, liabilities, claims and/or costs (including reasonable attorneys' fees and costs) arising from any breach of any representation, warranty or agreement contained in this Section. This Section shall survive the termination of this Agreement. Upon expiration or earlier termination of this Agreement, Lessee shall surrender and vacate the Premises and deliver possession thereof to Lessor on or before the termination date free of any Hazardous Substances released into the environment at, on or under the Premises that are directly attributable to Lessee. 25. Compliance with Laws Lessee, at its sole cost, shall observe, perform, and comply with all laws, statutes, ordinances, rules, and regulations promulgated by any governmental agency, including all applicable zoning ordinances, building codes and environmental laws. Lessee shall not occupy or use the Premises, or permit any portion of the Premises to be occupied or used for any use or purpose that is unlawful in part or in whole, or deemed by Lessor to be disreputable in any manner or extra hazardous in any way. 26. Not Agent of Lessor Neither anything in this Agreement nor any acts of Lessee shall authorize Lessee or any of its employees, agents or contractors to act as agent, contractor, joint venturer or employee of Lessor for any purpose. 27. No Third Party -Beneficiaries Lessor and Lessee do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party. 17 28. Notices All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: To Lessor: Administrative Services Department Revenue Division Attention: Income Contract Administrator City of Newport Beach PO Box 1768 3300 Newport Boulevard Newport Beach, CA, 92658 949-644-3153 To Lessee: Mr. Seymour Beek Balboa Island Ferry, Inc. 410 South Bay Front Newport Beach, CA 92662 949-673-1070 29. Entire Agreement/Amendments A. The terms and conditions of this Agreement, all exhibits attached hereto, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. B. This written Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between Lessee and Lessor. C. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. D. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by Lessee and Lessor. E. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 18 F. Any obligation of the parties relating to monies owed, as well as those provisions relating to limitations on liability and actions, shall survive termination or expiration of this Agreement. 30. Waivers The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance or regulation. 31. Costs and Attorneys' Fees The prevailing party in any action brought to enforce the terms and conditions of this Agreement, or arising out of the performance of this Agreement, shall not be entitled to recover its attorneys' fees or costs. 32. City Business License Lessee shall obtain and maintain during the duration of this Agreement, a City business license as required by the Newport Beach Municipal Code. 33. Applicable Law This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 34. Interpretation The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 35. Time is of the Essence Time is of the essence with respect to all provisions of this Agreement. 19 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate on the date and year first written above. City of Newport Beach A Municipal Corporation APP . VED AS TO FORM: A. on C. Harp, Assistant City Attorney 20 Balboa Island Ferry, Inc. a California corporation By: Name: 5raitA M CSEEh, P2eeu, Name: BARTeAt'6-F a of / Lease Area (Parcel 1) , " i BulkheadlPierhead Lines Exhibit "A" South 0 10 20 40 Feet / I Lease Line Buikhead/Pierheaa Unes • • Exhibit "A" North 0 10 20 40 Fag{ A4_ /V Improvements to be Removed Balboa Island Ferry Exhibit "B" 0 7.5 15 30 Feet as • Fireman's Fund® YACHT INSURANCE RENEWAL DECLARATION NAME AND ADDRESS OF AGENCY CLARKE GARVEY INS. SERVICES 3188-B AIRWAY AVE. COSTA MESA CA 92626 714 444-2679 AGENCY CODE 04209983 FIREMAN'S FUND INSURANCE COMPANIES COVERAGE IS PROVIDED IN THE FOLLOWING COMPANY, A STOCK COMPANY FIREMAN'S FUND INSURANCE COMPANY MARINE DEPARTMENT P.O. BOX 19500 IRVINE CA 92623-9500 (800) 428-1576 NAME AND MAIUNG ADDRESS OF INSURED BALBOA ISLAND FERRY ESTATE OF CARROLL BEEK 410 S. BAYFRONT BALBOA ISLAND CA 92622 POLICY NUMBER F-Y-98415742 PREVIOUS POLICY NUMBER F-Y-98411157 POLICY PERIOD (INCEPTION) (EXPIRATION) 02/01/2001 To 02/01/2002 (12D1 AM. STANDARD TIME AT PLACE OF INSURED) THE YACHT COVERED BY THIS POLICY YACHT NAME: VAMOS BUILDER: TYPE: H.PIFUEL: MCGLASSEN POWER 240/DIESEL REGISTRATION NO: YEAR BUILT: LENGTH: HULL: 288 455 1862 56' WOOD COVERAGES YACHT AND EQUIPMENT PERSONAL EFFECTS LIABILITY LONGSHOREMEN'S & HARBOR WORKERS' COMPENSATION ACT COVERAGE AS REQUIRED MEDICAL PAYMENTS ENDT #A Uninsd Boat DEDUCTIBLE COVERAGE PREMIUM $2,500 $50,000 $1,620 $100 NIL NIL NIL NIL $1,000 INCLUDED $1,000,000 • $350 INCLUDED $5,000 INCLUDED $25,000 INCLUDED TOTAL PREMIUM $1,970 CRUISING AREA AND ATTACHMENTS YOU AGREE TO USE THE YACHT ONLY IN THE FOLLOWING AREA: PACIFIC COASTAL WATERS NOT NORTH OF POINT CONCEPTION, CA. NOR SOUTH OF RIO SANTO TOMAS, MEX., AND NOT MORE THAN 200 MILES OFFSHORE. YACHT ATTACNMENrs: ENDT #A Uninsd Boat ENDT #B Addtl Insd Marina ENDT #C Mach Dam 12/01/2000 COPY. SIGNATURE OF AUTHORIZED REPRESENTATIVE a Fireman's Fund" NAME AND ADDRESS OF AGENCY CJ.ARKE GARVEY INS. SERVICES 3188-B AIRWAY AVE. COSTA MESA CA 92626 714 444-2679 AGENCY CODE 04209983 FIREMAN'S FUND INSURANCE COMPANIES COVERAGE IS PROVIDED IN THE FOLLOWING COMPANY, A STOCK COMPANY FIREMAN'S FUND INSURANCE COMPANY MARINE DEPARTMENT P.O. BOX 19500 IRVINE CA 92623-9500 (800) 428-1576 NAME AND MAILING ADDRESS OF INSURED BALBOA ISLAND FERRY ESTATE OF CARROLL BEEK 410 S . BAYFRONT BALBOA ISLAND CA 92622 POLICY NUMBER F-Y-98415742 PREVIOUS POLICY NUMBER F-Y-98411157 POLICY PERIOD (INCEPTION) (EXPIRATION) 02/01/2001 TO 02/01/2002 EFFECTIVE DATE: ENDT #A UNINSURED BOATER COVERAGE ENDORSEMENT LOSSES COVERED WE WILL PAY FOR THE DAMAGES WHICH BECAUSE OF BODILY INJURY RECEIVED ABOARD YOUR YACHT, YOU ARE LEGALLY ENTITLED TO RECOVER FROM THE UNINSURED OWNER OR OPERATOR OF ANOTHER YACHT. "UNISURED BOATER" AND "UNINSURED OWNER OR OPERATOR" MEAN AN OWNER OR OPERATOR OF A YACHT OTHER THAN THE YACHT NAMED IN THIS POLICY WHO IS LEGALLY RESPONSIBLE FOR THE ACCIDENT AND: 1. TO WHOM NO LIABILITY POLICY APPLIES; OR 2. WHO CANNOT BE IDENTIFIED (SUCH AS A HIT AND RUN OPERATOR). LOSSES NOT COVERED WE DO NOT PROVIDE UNINSURED BOATER COVERAGE: 1. FOR CLAIMS SETTLED WITHOUT OUR WRITTEN CONSENT; 2. IF THE UNINSURED YACHT IS OWNED BY A GOVERNMENTAL AGENCY OR UNIT; 3. FOR YACHTS OWNED BY OR FURNISHED FOR THE REGULAR USE OF YOU, A MEMBER OF YOUR IMMEDIATE FAMILY, OR ANY PERSON INSURED BY THIS POLICY; 4. FOR AN INSURED USING A YACHT WITHOUT PERMISSION; OR 5. WHEN THE YACHT NAMED IN THIS POLICY IS BEING CHARTERED; 6. WHERE NO EVIDENCE OF PHYSICAL CONTACT EXISTS BETWEEN YOUR YACHT AND AN UNIDENTIFIED YACHT OR WHERE NO EVIDENCE OF PHYSICAL CONTACT EXISTS BETWEEN YOUR YACHT AND AN UNINSURED YACHT. THIS COVERAGE WILL NOT APPLY DIRECTLY OR INDIRECTLY TO THE BENEFIT OF ANY INSURER UNDER ANY STATE OR FEDERAL COMPENSATION LAW OR ACT. LIMITS OF PAYMENT THE LIMIT SHOWN ON THIS ENDORSEMENT IS THE MOST WE WILL PAY REGARDLESS OF THE NUMBER OF INSURED PERSONS, CLAIMS MADE OR YACHTS INVOLVED IN ANY ONE ACCIDENT OR SERIES OF ACCIDENTS ARISING OUT OF THE SAME EVENT. PAYMENT FOR THIS COVERAGE SHALL BE REDUCED BY: 1. ALL SUMS PAID BY OR ON BEHALF OF THOSE LEGALLY RESPONSIBLE AND/OR 2. ALL SUMS PAID BY ANY STATE OR FEDERAL COMPENSATION LAW OR ACT AND/OR 3. ALL SUMS PAID UNDER THE LIABILITY COVERAGE OF THIS POLICY PAYMENTS MADE FOR THIS COVERAGE TO OR FOR AN INSURED PERSON WILL REDUCE THE AMOUNT THAT A PERSON MAY RECOVER FROM THE LIABILITY COVERAGE OF THIS POLICY. UNINSURED BOATER LIMIT: $25,000 12/01/2000 SIGNATURE OF AUTHORIZED REPRESENTATIVE COPY Fireman's Fund' NAME AND ADDRESS OF AGENCY CLARKE GARVEY INS. SERVICES 3188-B AIRWAY AVE. COSTA MESA CA 92626 714 444-2679 AGENCY CODE 04209983 FIREMAN'S FUND INSURANCE COMPANIES COVERAGE IS PROVIDED IN THE FOLLOWING COMPANY, A STOCK COMPANY FIREMAN'S FUND INSURANCE COMPANY MARINE DEPARTMENT P.O. BOX 19500 IRVINE CA 92623-9500 (800) 428-1576 NAME AND MAILING ADDRESS OF INSURED BALBOA ISLAND FERRY ESTATE OF CARROLL BEEK 410 S . BAYFRONT BALBOA ISLAND CA 92622 POLICY NUMBER F-Y-98415742 PREVIOUS POLICY NUMBER F-Y-98411157 POLICY PERIOD (INCEPTION) (EXPIRATION) 02/01/2001 TO 02/01/2002 EFFECTIVE DATE: ENDT #B ADDITIONAL INSURED MARINA ENDORSEMENT IN CONSIDERATION OF A PREMIUM OF $INCLUDED, IT IS UNDERSTOOD AND AGREED: CITY OF NEWPORT BEACH POST OFFICE BOX 1868 NEWPORT BEACH, CA 92658 IS AN ADDITIONAL 'INSURED' UNDER SECTION C LIABILITY COVERAGE, BUT ONLY WITH RESPECT TO LIABILITY ARISING OUT OF YOUR OWNERSHIP, MAINTENANCE OR USE OF THE INSURED YACHT. THE INJURY OR DAMAGE WHICH GIVES RISE TO THE LIABILITY MUST OCCUR WHILE THE POLICY IS IN EFFECT. WE DO NOT WAIVE RIGHTS OF RECOVERY WHICH MAY BE AVAILABLE AGAINST THE ADDITIONAL 'INSURED', INCLUDING OTHER INSURANCE. WE WILL NOT COVER ANY LIABILITY IMPOSED UPON OR ASSUMED BY THE ADDITIONAL 'INSURED' UNDER ANY WORKERS COMPENSATION LAW OR EMPLOYERS LIABILITY ACT OF ANY STATE OR NATION, OR BY ANY REASON OF THE LIABILITY OF THE ADDITIONAL 'INSURED' TO EMPLOYEES WHICH IS BASED ON THE RELATIONSHIP OF MASTER AND SERVANT. SHOULD THE POLICY BE CANCELLED BEFORE THE EXPIRATION DATE, WE WILL ENDEAVOR TO MAIL THIRTY (30) DAYS WRITTEN NOTICE TO THE ADDITIONAL 'INSURED', BUT FAILURE TO DO 50 SHALL IMPOSE NO OBLIGATION OF LIABILITY OF ANY KIND UPON US. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. 12/01/2000 COPY SIGNATURE OF AUTHORIZED REPRESENTATIVE a, Fireman's Fund' NAME AND ADDRESS OF AGENCY CLARKE GARVEY INS. SERVICES 3188-B AIRWAY AVE. COSTA MESA CA 92626 714 444-2679 AGENCY CODE 04209983 FIREMAN'S FUND INSURANCE COMPANIES COVERAGE 15 PROVIDED IN THE FOLLOWING COMPANY, A STOCK COMPANY FIREMAN'S FUND INSURANCE COMPANY MARINE DEPARTMENT P.O. BOX 19500 IRVINE CA 92623-9500 (800) 428-1576 NAME AND MAILING ADDRESS OF INSURED BALBOA ISLAND FERRY ESTATE OF CARROLL BEEK 410 S . BAYFRONT BALBOA ISLAND CA 92622 POLICY NUMBER F-Y-98415742 PREVIOUS POLICY NUMBER F-Y- 98411157 POLICY PERIOD (INCEPTION) (EXPIRATION) 02/01/2001 TO 02/01/2002 EFFECTIVE DATE: ENDT #C AMENDED MACHINERY DAMAGE COVERAGE ENDORSEMENT IT IS UNDERSTOOD AND AGREED THAT NOTWITHSTANDING ANYTHING CONTAINED WITHIN THE POLICY TO THE CONTRARY, THE MAIN ENGINE(S), SHAFT(S) AND ENGINE GEARBOX(S) ARE COVERED FOR THE FOLLOWING PERILS ONLY: FIRE STRANDING SINKING COLLISION THEFT OF THE ENTIRE VESSEL DAMAGE MUST BE CAUSED BY OR DIRECTLY RESULTING THEREFROM. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. 12/01/2000 COPY SIGNATURE OF AUTHORIZED REPRESENTATIVE AGUIU L INSURANCAINDER ISSUE DATE (MM/DD/YY) 4/7/92 THIS BINDER IS A TEMPORARY INSURANCE CONTRACT, SUBJECT TO THE CONDITIONS SHOWN ON THE REVERSE SIDE OF THIS FORM PRODUCER COMPANY BINDER NO. Summit/Smith Western Insurance P.O. BOX 255097 Sacramento, CA 95865 CODE SUB -CODE INSURED Century National Ins. Co. EFFECTIVE DATE 4/4/92 12:01 TIME X AM PM 299 EXPIRATION DATE . TIME X 12:01 AM 6/4/92 THIS BINDER IS ISSUED TO EXTEND COVERAGE IN THE ABOVE NAMED COMPANY PER EXPIRING POLICY NO: BAP 40647 DESCRIPTION OF OPERATIONSNEHICLES/PROPERTY (Including Location) 1982 Ford Truck, #2893 Balboa Island Ferry, Inc. 410 South Bay Front Balboa Island, CA 92662 NOON COVERAGES TYPE OF INSURANCE PROPERTY CAUSES OF LOSS BASIC BROAD SPEC. GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CLAIMS MADE OCCUR OWNER'S B CONTRACTOR'S PROT. AUTOMOBILE X LIABILITY X NON/OWNED X HIRED GARAGE COVERAGE/FORMS RETRO DATE FOR CLAIMS MADE: ALL VEHICLES x SCHEDULED VEHICLES Nonownership Liability Limits- $100,000 Maximum; $5,000 Deductible AUTO PHYSICAL DAMAGE ALL VEHICLES X SCHEDULED VEHICLES X COI..LISION DED. 1,000 X OTC DED_ 1 `GOO -_...- EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM RETRO DATE FOR CLAIMS MADE: WORKER'S COMPENSATION AND EMPLOYER'S LIABILITY SPECIAL CONDITIONS/RESTRICTIONS/OTHER COVERAGES NAME 8 ADDRESS City of Newport Beach c/o Kenneth Delino P.O. BOX 1768 Newport Beach, CA 92659 ACORD 75.5 (2B8) RECENED H V f). DEP() 0 7992AI. CIIy N. fWPQ@ NAu"fR h..' OAS PAYEE SGpI CORN ORTGAGEE AUTHORIZEDR ALL LIABILITY LIMt9 IN tHOUtANDS AMOUNT DEDUCTIBLE COINSUR. GENERAL AGGREGATE 1 PROD. — COMP/OPS AGGREGATE $ PERSONAL & ADVISNG. INJURY EACH OCCURRENCE 1 1 FIRE DAMAGE (Any one (Ire) 1 MED. EXPENSE (Any one person) $ cSL $ 600,000 ** BI PERS/ACCID 1 PD 1 MED. PAY PIP 1 $ 1,000 UM_.l�... --- E X ACV STATED AMOUNT 1 OTFIER EACH AGGREGATE SELF.INSURED OCCURRENCE RETENTION STATUTORY 1 1 1 (EACH ACCIDENT) (DISEASE -POLICY LIMIT) (DISEASE -EACH EMPLOYEE) X ADDITIONAL INSURED O ACORD CORPORATION 1988 CERTIFICATE OF INSURANCE • 06/28/91 PRODUCER Smith Western Insurance 57 S. Victoria Ave., #203 P.O. Box 3332 Ventura, CA 93006 PHONE805-654-8224 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE INSURED Balboa Island Ferry Co. Seymour Beek 410 So. Bayfront Balboa Island, CA 92662 > COVERAGES c CORPANY LETTER A London/Underwriters COMPANY LETTER B Century National Insurance Co. COMPANY LETTER C COMPANY LETTER D COMPANY LETTER E THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL TERMS, EXCLUSIONS,.AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFF DATE POLICY EXP DATE ALL LIMITS IN THOUSANDS A GENERAL LIABILITY K] COMMERCIAL GEN LIABILITY [ ] [ ] CLAIMS MADE tX OCC. [ ] OWNER'S & CONTRACTORS PROTECTIVE I [1 SI2583 SI 2583 01/31/91 01/31/91 01/31/92 01/31/92 GENERAL AGGREGATE 1000 PRODS-COMP/OPS AGG. 1000 PERS. & ADVG. INJURY 1000 EACH OCCURRENCE 1000 FIRE DAMAGE (ANY ONE FIRE) 50 MEDICAL EXPENSE (ANY ONE PERSON) 5 B AUTOMOBILE LIAB [ ] ANY AUTO [ ] ALL OWNED AUTOS X] SCHEDULED AUTOS MO HIRED AUTOS K NON -OWNED AUTOS [ ] GARAGE LIABILITY [] BAP40657 04/04/91 04/04/92 CSL 1000 BODILY INJURY (PER PERSON) BODILY INJURY (PER ACCIDENT) PROPERTY A EXCESS LIABILITY X UMBRELLA FORM [ 3 OTHER THAN IMBRELLA FORM SI2497 09/01/90 09/01/91 EACH OCC AGGREGATE 4000 WORKERS' COMP AND EMPLOYERS' LIAB OTRRR DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS Certificate holder is also additional insured. > CERTIFICATE HOLDER < City of Newport Beach Kenneth Delano P.O. Box 1768 Newport Beach, CA 92659 ACORD 25-S (3/88) STATUTORY 1111 EACH ACC DISEASE -POLICY LIMIT DISEASE -EACH EMPLOYEE It Q I VAN1c1"1‘ ________________> CANCELLATION < _A EG =� POLICIES BE CANCELLED BEFORE THE EX - COMPANY WILL ENDEAVOR TO MAIL 30 TE HOLDER ED TO THE LEFT, BUT MPOSE NO IGATION IGATION OR I4 JLJTY OF TS OR R .J' SENTATWES. = SHOULD ANY OF THE ABOVE DESCRIBED = PIRATION DATE THEREOF, THE ISSUING = DAYS WRITTEN NOTICE TO THE CERTIF = FAILURE TO MAIL SUCH NOTICE SHA = ANY KIND UPON THE COMPANY, ITS = AUTHORIZED REPRESENTATIVE .JUN-20--91 FRI 9111111. $MI TH-WESTERW 11N$uRcmiCE P. el P . 0 2 CERTIFICATF_OF INSURANCE WA Western Insurance E..o.S. Boos 33332t2a Ave., #203 VoxItura, CA 93005 PHONE-Os-654-8224 Q TWIT RTIFTCATE is ISs EAS`MA TER OF INFORMATION ONLY RS NO RIGHTS UPON THE CERTIFICATE BOLDER. THIS CERTIFICATE ODES Hat AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW_ COMPANIESAFFORDING COVERAGE INSURED Balboa l annd Ferry Co. ymour410 So. Bayf ont BBaalbbooa 2 Island, CA COMPANY LETTER A UnderWtiters CCf.PANY LETTERS Century National Insurance Co. COMPANY LETTER C COMPANY LETTER D COMPANY LETTER E COVERAGES a zsakp•4•••nwnGC6 •a•caeti==t-i=r-'+adz======L-7eO.ticmeC¢CG•••aisamat•SCaSPIsca•ahainearas� -dflysx[kfRnssr -G� THIS IS TO CERTIFY TWIT POLICIES Of INSURANCE LISTED BELOW NAVE BEEN ISSUED TO THE INSURED NAKED ABOVE MR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REWIRENENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT NITR RESPECT TO WHICH TNts CERTIFICATE NAY BE ISSUED OR HAY PERTAIN, THE INSURANCE AFFORDED SY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL TERNS, EXCLUSIONS. AND Ca4DtYtONS OF SUCH POLICIES, LIMITS SKGU$ MAY HAVE BEER REDUCED BY PAID CLAIMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFf POLICY EXP PATE DATE A GENERAL LIABILITY on COMMERCIAL GEN LIABILITY I ; I ) CLAIMS MADE iX OCC. I I OWNER'S £ CONTRACTORS PROTECT IVF. I II 012583 SI 2583 AUTOMOBILE LIAR t ) AO AUTO [) ALL OWNED WftOS Q0) SCHEDULED AUTOS WI HIRED AUTOS DCI NON•CJAEO AUTDs C I GARAGE I/AGILITY I) SAP40S57 A EXCESS LIABILITY E3 tMSRELLA FORM ( 1 OTHER THAN want* FORM S12497 ALL LINEN IN INAUSANDS 01/31/91 01/31/9 01/31/92 01/31/92 GENERA. AGGREGATE 11000 PRDDs-COMP/OPB AGE- 1000 PERS. S AOVG.. INJURY 1000 EACH OCCURRENCE 1000 FIRE DAMAGE (ANY ONE FIRE) 50 MEDICAL EXPENSE (ANY ONE PERSON) 04/04/91 04/04/92 CSL BODILY INJURY (PER PERSON) BODILY INJURY (PER ACCIDENT) 5 1000 PROPERTY 09/01/90 WORKERS' COMP AND EMPLOYERS' LIAS OTHER .. DESCRIPTION Of OPERATtaNS/LOCATIONS/VENICLt$/SPECIAL ITEMS Certificate holder is also additional insured. • CERTIFICATE HOLDER etrsasencascacYeCSSSeeaaaaaa_y CANCELLATION tat • SHWLD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX• • PIRATION PATE THEREOF, TKE ISSUING COMPANY WILL ENDEAVOR TO NAIL 30 • DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO TEE LEFT, BUT • FAILURE TO MAIL SUCH NOTICE $K 4EINPOs! NO LIGATION LIABILITY OE +' ANY KIND UPON TKE COMPANY, 11 NTS OR ESENTATIVES in 09/01/91 EACH OCC I. AGGREGATE 14000 STATUTORY EACH A:It Dt5EASI POLICr LIMIT ; \ DISEASEEACH SYPLOYEE RECI IVED MURK CLIP OF NEWFORT BEACH 'City of Newport Beach :KennethDe1tA0 .O. Box 1760 Newport Seacb, CA .CORD 25-S (3/R81 us=smseauma =SOMU=1:4nRr-ntlsamx;Wu=Mac cn7Lc • AUTHORISED REPRESENTATIVE G� • YJ CITY OF NEWPORT BEACH Office of City Crowley Towing & Transportation Co. Crowley Maritime Corp. 101 California Street San Francisco, CA 94111 Dear Sirs: The City of Newport Beach charges a franchise fee and leases bayfront property to a ferry operator. To insure fairness in these rates, the City desires to know what other such operators are charged. I would appreciate your completing the following questions and returning this in the attached envelope. Thank you for your cooperation. W'.tnrfrnnt TCIA . ) feu. sg No Yes Payments: $ Paid to: \ENNETH 'i {{ ' DELINO EXECUTIVE ASSISTANT V ry tr y( soups, Percentage of Gross: C,.r1 6F Lvwa 6e4c-L per PflPch4 cia Fco? teo.Ga6ie. No Yes Paid Payments: $ Percentage of Gross: to : C.147eF LoS ItDD1QS per 'O City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 • SEW of �� �,@� CITY OF NEWPORT BEACH u per_ p. �! FO ANC California Cruisin' Inc. 1302 Kettner Boulevard San Diego, CA 92101 Dear Sirs: Office of City (714) 644-3002 Manag 5r988 J The City of Newport Beach charges a. franchise fee and leases bayfront property to a ferry operator. To insure fairness in these rates, the City'desires to know what other such operators are charged. I would appreciate your completing the following questions and returning this in the attached envelope. Thank you for your cooperation. Waterfront Lease? No _ Yes i Payments: $ Percentage of Gross: Paid to: Very truly y ur�g, \E LINO EXECUTIVE tSSISTANT PS& CY Sc t31 , Franchise Fee? Nth No Yes Paymen s: $ Paid to: Percentage of Gross: per - Ferr-y eeu-2 ueAil tint r_e.o.eIrk ve City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 • CITY OF NEWPORT BEACH San Pedro Marine, Inc. P.O. Box 670 San Pedro, CA 90733 Dear Sirs: The City of Newport Beach charges a franchise fee and leases bayfront property to a ferry operator. To insure fairness in these rates, the City desires to know what other such operators are charged. I would appreciate your completing the following questions and returning this in the attached envelope. Thank you for your cooperation. Waterfront Lease?j at least No Yes Payments: $ 3.142.00 Paid to: Percentage of Gross: V ry trul KENNETH . 'DELINO EXECUTIVE ASSISTANT per month Franchi. Fee? No _ Yes Payments: $ per Percentage of Gross: Paid to: City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 • CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 Catalina Passe geT'Service 400 Main Street Balboa, CA 92661 Dear Sirs: The City of Newport Beach charges a franchise fee and leases bayfront property to a ferry operator. To insure fairness in these rates, the City desires to know what other such operators are charged. I would appreciate your completing the following questions and returning this in the attached envelope. Thank you for your cooperation. Very truly yours DELINO SSISTANT Waterfront Lease? No ' Yes X Payments: $ per Percentage of Gross: /S ro ,7O'Io Paid to: .L QLBOA 44✓itiov CAD. Franchise Fee? No )( Yes Payments: $ per Percentage of Gross: Paid to: City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 • CITY OF NEWPORT BEACH Office of City Man (714) 644-3002 Milton S. McDonogh Tiburon -Angel Island Tours P.O. Box 901 Tiburon, CA 94920 Dear Mr. McDonogh: S 9 RECEIVED JAN 131988 ) Ecct Asslspm Cr) a::::gers Ooze et:e! zput Ouch /) The City of Newport Beach charges a franchise fee and leases bayfront property to a ferry operator. To insure fairness in these rates, the City desires to know what other such operators are charged. I would appreciate your completing the following questions and returning this in the attached envelope. Thank you for your cooperation. Waterfront Lease? No Yes _ Payments: $ Paid to: Very trul Ii NETH J. LINO EXECUTIVE AS ISTANT Percentage of Gross: per Franchise Fee? No _ Yes _ Payments: $ per Percentage of Gross: 0 ,�J Paid to: /7' , 2EtM'p — 7/by saw. /e.g./HoT ,/ //Y / n'Hs iv,62 yGir- jiu,�.srcx f//G5 /g r,r,e enew e- Di T•Ya ,c.'ea f eon ai.Y,cm //� /P o ,Sea,,v 5 j /yt -a -a. ' /6 S✓C- sr Or/ Cerir4CT /4R/' s oevaa 14e/!rs oQ , "nte- /74112 04+0 Fester" 494r// oft' /7ti ?,3 HoscO „g6Sr /esa-,d/evs City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 • CITY OF NEWPORT BEACH Office of City (714) 644-3.0 rt Pacific Towboat & Salvage Co. P.O. Box 1940 Long Beach, CA 90801 Dear Sirs: The City of Newport Beach charges a.franchise fee and leases bayfront property to 'a ferry operator. To insure fairness in these rates, the City desires to know what other such operators are charged. I would appreciate your completing the following questions and returning this in the attached envelope. Thank you for your cooperation. ery truly NNETDELINO EXECUTIVE SISTANT �� Waterfront Lease? �?/[ �tFva /DO000 4 Gr� �' /i io %` e'er'""` `- No _ Yes L Payments: $ per Percentage of Gross: NO L 6 /10-2_ / 01— Paid to: Franchise Fee? No Yes Paid to: Payments: $ per Percentage of Gross: 71Prit, City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 PROPOSED LEASE Premises: 2750 sq. ft. of tidelands abutting Palm Street 11,550 sq. ft. of tidelands abutting Agate Street Term: } years Use: piers, docks, landings, slips, waiting & restrooms for ferry Maintenance: All by lessor except janitorial services of restrooms by lessee. Termination: Lessor upon material breach or default. Removal: Improvements vest to lessor upon expiration unless removed by lessee. Rental: of gross income payable quarterly. Insurance: Hold City harmless. Maintain $5,000,000 injury and $500,000 property damage. PROPOSED FRANCHISE To operate a toll ferry between Agate and Palm Streets. Grantee must maintain adequate facilities. 0 Term: 2'S Years 3 Fee: 2 of gross income payable quarterly Termination: By grantor if grantee fails to comply with terms and conditions Insurance: Hold City harmless. Maintain $5,000,000 injury and $500,000 property damage. Hours of Operation: City Council may regulate by Resolution No charge for City vehicles EXISTING LEASE Premises: 2750 sq. ft. of tidelands abutting Palm Street 11,550 sq. ft.of tidelands abutting Agate Street Term: July 8, 1963 - July 7, 1988 Use: piers, docks, landings, slips, waiting& restrooms for ferry Maintenance: All by lessor except janitorial services of restrooms by Lessee. Termination: By "lessor if lessee ceases to operate ferry Removal: Improvements vest to lessor upon expiration unless removed by lessee. Rental: 1% of 1st $100,000 of gross income 13/4% of excess payable annually Insurance: $100,000 one person $500,000 all persons $100,000 property damage EXISTING FRANCHISES To operate a toll ferry between Palm Street and Agate Street. Grantee must maintain adequate facilities Term: 7/8/63 - 7/7/88 Fee: 2% of gross income payable annually Termination: By grantor if grantee fails to comply with terms and conditions. WWC:mec • 7/2/63 LEASE THIS LEASE, made and entered into this 8th day of July, 1963, by and between the CITY OF NEWPORT BEACH, a municipal cor- poration in the County of Orange, State of California, hereinafter referred to as "Lessor", and BALBOA ISLAND FERRY, a California corporation, hereinafter referred to as "Lessee"; WITNESSETH: WHEREAS, lessor has heretofore leased the real property hereinafter described to J. A. Beek under a lease with an expira- tion date of May 31, 1963; and WHEREAS, said lease was continued on a month -to -month. basis by City Council Resolution No. 5782; and " WHEREAS, said J. A. Beek as lessee used said real prop- erty .for the construction and maintenance of docks, ways, boat landings, ferry slips, waiting rooms, and appurtenances in connec- tion with the operation of the Balboa Island ferry; and WHEREAS, the Balboa Island ferry is now operated by Balboa Island Ferry, a California corporation; and WHEREAS, the use of said real property is necessary for the operation of said ferry; and , WHEREAS, said use is necessary and convenient for the promotion and accommodation of commerce and navigation in the City of Newport Beach; and WHEREAS, said use is not inconsistent with any trust or_ trusts under which title to said real property is held by the City of Newport Beach; NOW, THEREFORE, the parties agrees L. Lessor hereby leases to lessee all that certain real property in the City of Newport Beach, County of Orange, State of California; particularly described as follows: Parcel 1: Beginning at a point on the Southeasterly line of Palm Street, Northeasterly 131.43 feet (measured along the Southeasterly line of Palm Street) from the most Easterly corner of the intersection of Bay Avenue and Palm Street (formerly known as Main Street) as shown on the "Map of Bayside", recorded in book 3, page 38 of Miscellaneous Maps in the office of the county recorder of said county; thence Northeasterly along the Northeasterly prolongation of said Southeasterly line to the Pierhead Line, said Pierhead Line being Northeasterly 100 feet from and parallel with the Bulkhead Line extending from U. S. Bulkhead Sta. No, 112 to U, S. Bulkhead Sta. No. 113 as shown on a map titled "Harbor Lines, Newport Bay Harbor, Calif.", approved by the Secretary of the Army on February 15, 1951, on file in the Office of Chief of Engineers, Department of the Army, Washing- ton, D.C.; thence Northwesterly along said Pierhead Line to the Northeasterly prolongation of the North- westerly line of palm Street; thence Southwesterly along said Northeasterly prolongation to a point Northeasterly 135 feet (measured along the Northwest- erly line of Palm Street) from the most Northerly corner of the intersection of Palm Street and Bay Avenue; thence Southeasterly in a direct line to the point of beginning. Parcel 2: Beginning at the intersection of the Southwesterly prolongation of the Northwesterly line of Agate Ave- nue as shown on the "Map of Resubdivision of Sect. One of Balboa Island" recorded in'Book 6, page 30 of Miscellaneous Maps, in the office of the county re- corder of said county, with the Bulkhead Line extending from U. S. Bulkhead Sta. No. 256 to U. S. Bulkhead Sta. No. 258 as shown on a map titled "Harbor Lines, Newport Bay Harbor., California", approved by the Secretary of the Army on February 15, 1951, on file in the Office of Chief of Engineers, Department of the Army, Washington, D. Co* thence N. 43° 52' W., 81.90 feet along said Bulkhead Line; thence S. 35° 58' W., 45.50 feet; thence Se 43° 528 E., 16.60 feet; thence S. 35° 58° W., 5.15 feet more or less; thence S. 43° 52° E., 112.86 feet more or less; thence Ni 46° 08° E., 50.00 feet to said Bulkhead Line; thence North 43° 52° West 5A.63 feet along said Bulkhead Line to the point of beginning. 2. The term of this lease shall begin on the date hereof -and end on July 7, 1988. 3. Lessee shall use said property for the purpose of the construction, maintenance, and operation of piers, docks, ways, boat landings, ferry slips, waiting rooms, restrooms, and appurtenances necessary for the operation of a ferry service and shall use the same for no other purpose without the prior written approval of the City Council of the City of Newport Beach; pro- vided, however, that any boat ways constructed, maintained and operated on the premises by lessee may be used as convenient to 2. WWC°mec 7/9/63 lessee for the purpose of removing fe yboats and other boats which are owned by lessee or by any officer or director of lessee, a California corporation, from the water so long.as such use com- plies with all applicable regulations. Said piers, docks, ways, boat landings, ferry slips, waiting rooms, restrooms, and appurte- nances shall be maintained by lessee in good condition and repair during the entire term of this lease. 4. This lease is subject to termination by lessor if lessee ceases to operate a ferry between Balboa Island and Balboa Peninsula for a continuous period of thirty (30) days at any time during the term hereof; provided, however, that lessor may not terminate if such cessation in excess of a period of thirty (30) days results from war, catastrophe, act of God, or other cause beyond the control of lessee. 5. Upon expiration of this lease, or upon earlier termination for any reason, lessor shall have the option of taking over the ferry slips, landings and ramps used in conjunction with the operation of the ferry without the payment of any compensation therefor to lessee. Upon such expiration or termination lessee may remove all other improvements on the leasehold and shall upon such removal restore the premises to a smooth condition free of all remnants or debris from the improvements so removed. If, within thirty (30) days after the expiration or termination, les- see has not removed the improvements it is authorized to remove hereunder, title to the same shall vest in lessor and lessee shall have no further interest therein. 6. As rental for the use of the property hereby leased, lessee shall annually, within thirty (30) days after the close of the calendar year or lessee's fiscal year, pay lessor one (1) per cent of the first $100,000 of gross receipts and one and one-half (1-1/2) per cent of the gross receipts in excess of $100,000 from the operation of the Balboa Island ferry or any other ferry using either Parcel 1 or Parcel 2 as a landing during the preceding calendar or fiscal year or portion of such year during the term. 30 WWC:mec 7/9/63 ft r It is mutually understoodthat the rental herein provided is rental for the use of the premises for the purposes herein permitted only and that lessor may require additional rental to be agreed upon by the parties for any other use now or hereafter authorized to be placed upon the premises. 7. Lessee agrees to maintain the existing comfort station located on Parcel'2 in good'and serviceable condition and to repair or replace the same as such repair or replacement may become neces- sary during the term hereof. Lessor shall furnish janitor service in said comfort station during the term hereof without cost to lessee. 8. This lease is not assignable by voluntary or involun- tary act of lessee or by operation of law or otherwise without the prior written approval of lessor. Any such assignment of the lease or any interest therein without such approval shall cause a termina- tion thereof and thereupon the premises shall revert to City. 9. Lessee agrees to save and hold lessor harmless and 'indemnify lessor against any and all claims,demands, losses, or liability on account of any injury, loss or damage to persons or property claimed, suffered or sustained in or around the premises or elsewhere by reason of the operations of lessee or the use or occupancy of the premises or any part thereof. Lessee shall maintain throughout the term of this lease public liability insur- ance with coverage of not less than the following amounts: Bodily injury to one person,. $100,000; bodily injury in the aggregate, $500,000; property damage, $100,000. Such insurance shall name lessor as an additional insured and shall provide that it will not be cancelled, permitted to lapse, or reduced in the amount of coverage without thirty (30) days' written notice first having been given to lessor. Lessee shall furnish a certificate of in- surance to lessor, subject to approval of the City Attorney as to form, evidencing the insurance herein required. IN WITNESS WHEREOF, the parties hereto have executed this 4. lease as of the day and year first above written. CITY OF NEWPORT BEACH By Approved as to forma. July 8, 1963 Walter W. Charamza City Attorney Attest: Mavo BALBOA ISLAND FERRY By Attest: City Clerk LESSOR President 50 Secretary LESSEE WWC:mec. 7/1/63. ORDINANCE NO. ( o 9 > AN ORDINANCE OF THE CITY OF NEWPORT BEACH GRANTING A FRANCHISE TO OPERATE A TOLL FERRY' WHEREAS, Balboa Island Ferry, a California corporation, has made application for a franchise to operate a toll ferry across Newport Bay between Palm Street, Balboa, and Agate Avenue, Balboa Island, all within the City of Newport Beach, for the trans- portation of passengers,,vehicles, and freight; and WHEREAS, the City Council adopted a resolution declaring its intention to grant a franchise to said applicant and setting out the terms and conditions upon which such franchise was proposed to be granted and fixing the time and place when and where persons having an interest therein or any objection thereto could appear before the City Council and be heard thereon; and WHEREAS, said resolution was duly and regularly published within 15 days after the adoption thereof and at least 10 days prior to the date of hearing; and WHEREAS, a hearing on the granting of said franchise has been regularly held by the City Council and a decision made thereon; NOW, THEREFORE, the City Council of the City of Newport. Beach does ordain as follows: SECTION 1. There is hereby granted to Balboa Island Ferry, a California corporation, for a term of twenty-five (25) years from the date of passage of this ordinance, a franchise to construct, maintain and operate a toll ferry for the transporta- _tion of passengers, vehicles, and freight across Newport Bay between the northerly end of Palm Street, Balboa, and the south- erly end of Agate Avenue, Balboa Island, all within the City of Newport Beach, California. SECTION 2. The grantee of this franchise; at all times during the existence thereof, shall keep and maintain sufficient, safe and adequate landings for the operation of a feLtyboat or boats and shall keep, maintain, and operate safe and adequate r ferryboats to provide all the reasonable and necessary transpor- tation of passengers, vehicles and freight from Balboa to Balboa Island. SECTION 3. Thegrant of this franchise shall not in any way or to any extent impair or affect the right of the City to acquire the property of grantee either by purchase or through the exercise of eminent domain and, in the event of such acquisition by either means, this franchise shall have no monetary value. SECTION 4. The grantee shall during the existence of this franchise pay to the City of Newport Beach two per cent (2%) of the annual gross receipts of. grantee from its operations under this franchise. Grantee within three (3) months after the close of each calendar year, or the close of grantee's fiscal year if different than the calendar year, a portion of which falls within the term of this franchise, shall file with the Director of Finance of the City of Newport Beach a verified statement showing in detail the total gross receipts of grantee during such calendar year or fiscal year or portion thereof arising from its operations under this franchise. Said statement. shall be accompanied by full payment to the City of the amount due under this franchise for such year or such portion. SECTION 5. The grantee shall not adopt or enforce any rates, charges or regulations which discriminate in favor of one patron against another patron or any rates, charges or regulations contrary to or not authorized by applicable regulations. SECTION 6. This franchise is subject to all of the terms and conditions herein expressed and is also subject to all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. SECTION 7. This franchise shall not become effective unless, within ten (10) days after the adoption of this ordinance, written acceptance thereof is filed with the City Clerk by the grantee and upon filing such acceptance grantee thereby agrees to 2. be bound by all the terms and conditions herein expressed and by all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. SECTION 8. Inthe event grantee fails, refuses or neglects to comply with all the terms and conditions hereof and of Article XIIi of said Charter, then the City Council of the City of Newport Beach shall declare a forfeiture of the franchise and thereupon shall exclude grantee and all persons from the use, enjoyment and possession -thereof. SECTION 9. Emergency Ordinance Effective Immediately. This ordinance is declared by the City Council to be necessary as an emergency measure for preserving the public peace, health, and safety and shall take effect and be in force upon its adoption. The reasons for the urgency of this ordinance are: The continuous operation of the ferry service between Balboa and Balboa Island is necessary to provide adequate police and fire protection to both Balboa and Balboa Island and to provide an essential transportation service to the people of the City. It .is necessary to make this ordinance effective immediately in order to grant the authority to and impose the duty upon the above -named grantee to provide such continuous service. SECTION 10. This ordinance shall be published once in the official newspaper of the City. This ordinance was introduced and adopted as an emergency ordinance at a regular meeting of the City Council of the City of Newport Beach held on the S' ' day of July, 1963, by thefollowing vote, to wit: AYES,ff//COUNCILMEN: /`r�.-4 {J >h -'Z% v✓ NOES, COUNCILME* ATTEST: ABSENT COUNCILMEN: City Clerk 3. Gs'r�l�stn�� rt t..•�.GC•> (Kid L-rr.•! Mayor MEMORANDUM OF AGREEMENT EXTENSION OF LEASE AND FRANCHISE This Agreement entered this — day of , 1988 between the City of Newport Beach, a municipal corporation (hereinafter "City") and the Balboa Island. Ferry. Company (hereinafter "Ferry Co."), a California corporation, is made with reference to the following: RECITALS: WHEREAS, the City on July 8, 1963 entered a lease with and granted -a franchise to Ferry Co. for the purposes of operating a toll ferry between Balboa Island and the Balboa Peninsula; and WHEREAS, said lease and franchise are due to expire July 8, 1988, and the Ferry Co. has applied for a renewal thereof; and WHEREAS, the City wishes to conduct a 90 day investigation of the merits and alternatives regarding such renewal; and WHEREAS, the City and the Ferry Co. desire to extend the termination dates of the lease and franchise pending completion of the investigation. NOW, THEREFORE, the parties hereby agree as follows: 1. The termination dates contained in the lease and franchise both dated July 8, 1963 are extended from July 8, 1988 to September 30, 1988. 2. The City and Ferry Co. shall abide by all terms and conditions contained in the original lease and franchise throughout the extended term. APPROVED AS TO FORM: City Attorney City Clerk • Mayor • BALBOA ISLAND FERRY COMPANY By -2- RESULTS OF BALBOA ISLAND FERRY SURVEY TAKEN IN 1987 PART I 400 questionnaires were mailed to random samples of Balboa Island and Balboa Peninsula (east of 15th street) residents. 200 were sent to Balboa Island, 200 to Balboa Peninsula. 246 questionnaires (61.5%) were returned. The questions asked, and the results are shown below. Each percentage shown is the percentage of those responding to the particular question. Whether or not you use the ferry, please give your impression by marking the statement in each category which best expresses your feelings about the ferry and its service: EMPLOYEE ATTITUDE: Nearly always pleasant 73% Usually all right 24% Not too good 2% Generally unpleasant 1% No opinion 0 VIEW AND ATMOSPHERE: FARES: Pleasant ride, nice surroundings 98% O.K. once in awhile 1% Don't particularly enjoy it 0 Dislike atmosphere 0 No opinion 0 Very cheap 17% Reasonable 65% A little high 15% Costs too much 3% No opinion 1% TIME CONSUMED: Often saves time to use ferry 35% Sometimes saves a little time 38% Usually takes longer than driving 14% Almost always takes longer than driving 8% No. Opinion 5% SAFETY FOR CARS: Compared to driving, nothing to worry 63% Worries me less than driving 25% Worries me more than driving 2% Worries me a lot compared to driving 0 No opinion 11% •• ONE WAY TRIP ON BICYCLE OR FOOT(PER YEAR): None 16% 1-10 20% 11-20 24% 21-50 21% 51-100 12% 101-500 7% over 500 0 REASON FOR MOST RECENT TRIP ON FERRY: To or from work 8% Business travel 6% School transportation 1% Shopping or eating out 42% Sports, recreation or social 30% Taking a drive 4% Other 8% WHY DID YOU USE THE FERRY: Save time 36% Save money 1% Avoid driving 22% Just for the ride 29% Other 10% AGE OF PASSENGER: COMMENTS: Under 20 20-25 26-35 36-45 46-55 56-65 66 + Positive Constructive Negative Indifferent HOURS OF OPERATION (Number of respondents-3): 1% 9% 20% 17% 10% 17% 27% 69% 2%14% -24% Z " la 5% Run less hours 1 Run more hours 2 •• PART II 200 questionnaires were distributed to drivers of automobiles and 200 to foot passengers and bicycle riders on a schedule designed to approximate the profile of ferry traffic density according to both day of the week and time of day. 215 questionnaires (53.8%) were returned. The questions asked and the results are shown below. Each percentage shown is the percentage of those responding to the particular question. We are trying to find out more about our passengers. You could help us by answering these questions and mailing this card. PLEASE INDICATE THE MAIN REASON FOR THE TRIP DURING WHICH YOU RECEIVED THIS QUESTIONNAIRE: Sports, recreational or social 27% Shopping or eating out 24% Taking a ride 17% To or from work 15% Business travel 9% School transportation 1% Other 8% WHAT WAS THE MOST IMPORTANT REASON FOR USING THE FERRY INSTEAD OF AN ALTERNATE ROUTE: Save time 35% Just for the ride 35% Avoid driving 19% Save money 3% Other 8% WHERE IS YOUR HOME (CITY)? Balboa Peninsula 17% Balboa Island 12% NEWPORT BEACH Corona del Mar 7% Other Newport Beach 13% 49% Outside Newport Beach 51% PLEASE ESTIMATE THE NUMBER OF ONE-WAY TRIPS YOU HAVE MADE IN THE LAST 12 MONTHS: AT THE WHEEL OF A CAR ON FOOT OR BICYCLE NONE 1% NONE 16% 1-10 47% 1-10 20% 11-20 22% 11-20 24% 21-50 16% 21-50 21% 51-100 5% 51-100 12% 101-500 7% 101-500 7% OVER 500 1% OVER 500 0 Clarence J. Turner July 25,1988 Mr. Ken Delano Executive Assistant City of Newport Beach 3300 Newport Blvd. Newport Beach, California Re: Balboa Ferry Lease Negotiations Dear Ken: I feel that there is an additional item that we should include in lease negotiations with the Balboa Ferry people. The City should require stop and go lights on either end of the ferry entrance way. Last night my wife and I dined at the Parkers' Seafood Grill and were alarmed to see the chaos which ensued each time the ferry docked and up to five cars sped forward, only to discover that there were only three spaces. The Ferry presently has an inoperable red light. There were a number of near misses as cars backed up off the ferry and narrowly missed hitting heavy pedestrian traffic crossing their path. I spoke to a Newport Beach policeman who was observing the scene and he too felt something should be done immediately to remedy the situation. In addition to addressing this issue we should have a clause in the lease enabling the city to impose reasonable standards of operation to insure public safety. cc: Maurer ,Strauss 1507 ANTIGUA WAY • NEWPORT BEACH, CA 92660 OFFICE PHONE: 751-4420 MESSAGE PHONE: 631-3947 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER July 12, 1988 TO: - Councilmen Strauss, Turner & Maurer FROM: Executive Assistant SUBJECT: Balboa Island Ferry Lease/Franchise Per your instructionsat the. Balboa Island Ferry.Ad hoc •Committee meeting of July 7, 1988 (Mr. Strauss absent), I communicated to Seymour Beek your recommendations to raise each of the lease and franchise fees from 2% to 3% and to cut the term from 25 years to 10 years. His initial reaction to the fee increase was that it would be passed through to passengers, and his reaction to the shorter term was that he had some "serious problems". He and I agreed that when he has formulated a response, the committee will meet with him to discuss his viewpoints. I will contact you after Mr. Beek responds to set up another meeting of the Ad hoc Committee. ILA Kenneth J. elino KJD:mb cc: City Manager • t- u ,» - =1 CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 July 12, 1988 Mr. Seymour Beek Balboa Island Ferry 410 S. Bayfront Balboa Island, CA 92662 Subject: Lease/Franchise Renewal Dear Mr. Beek: As I communicated to you on the telephone, the City Council Balboa Island Ferry Ad hot Committee met on July 7, 1988, and recommended that the lease and franchise previously submitted to you be changed to provide for a 3% lease fee, a 3% franchise fee, and a ten-year term. Also, as we discussed, you will formulate your response to these recommendations and I will schedule another meeting of the committee to discuss with you your viewpoints on these changes. The committee needs to report back to the City Council, so your earliest response would be appreciated. Sir4cerely, Kenneth 3: elino Executive A sistant KJD:mb City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 t H. S. BEEK PRESIDENT IP II BALBOA ISLAND FERRY 410 SOUTH BAT FRONT BALBOA ISLAND. CALIFORNIA 92682 October 13, 1987 City of Newport Beach 3300 Newport Boulevard. Newport Beach, California 92658-8915 Attention: Mr. Kenneth Delino Executive Assistant. City Manager's Office Dear Mr. Delino: As requested by Mr. Beek, enclosed to you under cover of this letter are the two Operating Statements for the Balboa Island Ferry, Inc. . They cover the periods of December 1986 and August 1987.- Please do not hesitate to phone should you have any question or comment. ab Enclosures Sincerely, BALBOA ISLAND FERRY, INC. Adrienne Burton, Secretary PHONE • 17141673-10?0 ACCOUNT: BALBOA ISLAND FERRY, INC. Statement of Income & Expenses - AUGUST 31, 1987 AUGUST YEAR TO DATE REVENUE: Ferry Revenue Charter Revenue TOTAL REVENUE $84,231.73 0.00 $494,767.28 450.00 $84,231.73 $495,217.28 EXPENSES: Salaries -Officers $ 0.00 $24,705.00 Salaries -Ferry . 27,824.53 229,736.51 ,Independent Contract LabQr . 153.00 888.60 Advertising 0.00 50.00 Profit Sharing Plan Accruals 3,088.59 24,779.48 Depreciation 379.49 3,035.92 Fees & Commissions 2,732.61 7,420.37 Franchise & Lease Costs 2,948.10 . 17,316.02 Fuel 1,623.82 10,377.11 Insurance 4,291.51 35,734.44 Insurance Group Health . 988.40 7,732.31 Legal & Accounting 0.00 . 6,818.13 Licenses 0.00 0.00 Maintenance-Ferrys 1,448.84 21,571.93 Maintenance -Docks 288.27 6,162.73 Maintenance -Shop 371.76 6,692.84 Miscellaneous 0.00 431.73 Office Expense 152.64 2,293.13. Repairs to Office Equipment 90.00 90.00 Rent 2,500.00 20,000.00 Taxes -Federal & State paid 0.00 3,822.00 Taxes -Personal Property 1,614.73 5,125.71 Taxes -Payroll 1,989.29 21,624.68 Telephone 32.75 334.67 Sales Taxes Paid 0.00 187.13 Utilities 233.46 1,807.92 Donations 0.00 175.00 TOTAL EXPENSES $52,751.79 $458,913.36 NET OPERATING PROFIT ( LOSS) $31,479.94 $36,303.92 ACCOUNT: REVENUE: Ferry Revenue Charter Total Revenue BALBOA ISLAND FERRY, INC. INCOME & EXPENSE STATEMENT - DECEMBER 31, 1986 DECEMBER YEAR TO DATE $49,333.72 450.00 $49,783.72 EXPENSES: Officer Salaries $ 0.00 Ferry Salaries 33,163.22 Independent Contract/Labor 855.73 Advertising 0.00 Profit Sharing Plan 4,267.00 Depreciation 488.84 . Fees & Commissions 0.00 Franchise & Lease 1,726.68 !:Fuel 1,032.93 Accid/Not/Cov./Ins. 0.00 Insurance 3,998.06 Insurance -Group Health 979.48 Legal & Accounting 0.00 Licenses 75.00 Maintenance-EaberecWigs 3,891.26 Maintenance -Docks 227.13 Maintenance -Shop 678.50 Miscellaneous 56.94 Office Expense . 542.49 Repairs to Office Equip. 0.00 Rent 2,500.00 •Taxes -Fed. & State 0.00 Taxes -Personal Property 3,510.98 Levy & Garnishments (108.60) Payroll Taxes 2,371.29 Telephone 21.87 Sales Taxes Paid 0.00 Utilities 204.75 Donations 75.00 TOTAL EXPENSES $60,558.55 NET OPERATING PROFIT ( LOSS) ($10,774.83) $697,568.81 900.00 $698,468.81 $ 12,352.50 326,513.93 10,816.27 287.44 30,614.03 5,866.08 10,862.87 23,903.92 16,758.42 1,680.34 39,586.05 9,432.22 6,595.35 330.75 23,082.19 7,965.37 10,929.69 500.16 2,628.47 298.49 30,000.00 10,393.00 8,516.13 54.30 28,640.50 750.23 235.28 2,347.61 6,225.00 $628,166.59 $70,302.22 MARINE SUPPLIES . ENGINES ANo PAINTS ISLAND BOAT HOUSE J. A. BEEK, BOLE OWNER AGATE AVE. AND SOUTH BAY BALBOA, CALIFORNIA April 26, 1966 City Council City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, California 92660 Gentlemen: OPERATING BALBOA ISLAND FERRY LINE PHONE HARBOR 62-W The waiting room at the Balboa Terminal of the Balboa Island Ferry is in bad repair and it needs to be replaced. A plan which I had an architect prepare for. replacement of this little structure is now in possession of the Public Works Board. Since this structure is situated on property leased to the Balboa Island Ferry, the Public Works Board recommends that we apply to your body for permission to replace the same. Accordingly, on the part of the Balboa Island Ferry, I am requesting permission to remove the old structure and replace it by a new one. Very truly yours, Balboa Island Ferry By J. A. Beek President 2 a O C r� 9® s �O U"HEN EC 0,tasa S et, ^ N .ono003C0 CONC Are re S EA Wq cL AA • e N E ICY P O R T T • ,O.A? 0.1 c 7 G /N= s-yiER,UEAp G /NE' 1. U s: ere-gp Stds IN Sef crosPa r B A Y a a PROPOSED CONCQS re 1 IN ry Sep' cross es i'"Y 7L m f) t IV in 0 oQ 0 0 �W+ � y e25 V as' B.aB 4 Z.4 B : • C„'oJsps anvsiloa / jrL oed o 4 NOTE: SET IRON PIPE AND BRASS DISK STAMPED "L. S.2S12'• AT POINTS SHOWN THUS 0 POUND IRON PIPE AT POINTS SHOWN THUS • 3 a A VE. SKETCH SHOWING LOCATION or PROPOSED SEAWALLS AT FERRY GOAT LANDINGS ON BALBOA ISLAND AND BALSOA PENINSuI_A NEWPDINT BEACH I CA Li JACK S. RAUB 136 ROCHESTER STREET LAND SURVEYOR LICENSE No. 2312 P. O. Sox 117 S 4 COSTA MESA, GAL/F. DATe Dec. 22, 1955 (SCALE I' SOI • PIELD BOOK CALL. BOOK JOB No.4%a.-t OIfTERICH-ro0T CLIARPRINT 100011 (1) Additional Map in Vault file. 4111 CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 (714) 644-3005 TO: FINANCE DIRECTOR FROM: CITY CLERK DATE: October 28, 1988 SUBJECT: Contract No. C-856 C,n t A„ C2 /C-2/-le g- (. (24'eW Description of Contract Lease with Balboa Island Ferry, Inc. Effective date of Contract October 25, 1988 Authorized by Minute Action, approved on September 26, 1988 7/3 0///? o Contract with Address Balboa Island Ferry, Inc. 410 South Bay Front (O 7 3 — /d 7 (� Balboa Island, CA 92660/ Amount of Contract Wanda E. Reggio City Clerk WER:pm Attachment (See Agreement) e 3300 Newport Boulevard, Newport Beach • City Council Meeting Agenda Item No. (q?) BY THE CITY COUNCIL CITY OF NEWPORT BEAD'. S E P 2 6 1988 ef- 3.3 TO: FROM: SUBJECT: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER SEPTEMBER 12, 1988 MAYOR & CITY COUNCIL EXECUTIVE ASSISTANT BALBOA ISLAND FERRY BY THE CITY COUNCIL CITY OF NEWPORT BEACI /i- S E P 1 2 1988 .74Js Zia 114'4,.g is e1-2-d� ACTION: Open Hearing, Close Hearing and If desired, introduce Ordinance No. 88- granting a franchise to the Balboa Island Ferry, Inc. AND Approve, and authorize Mayor and City Clerk to execute a lease with the Balboa Island Ferry, Inc. AND Approve, and authorize Mayor and City Clerk to execute Memorandum of Agreement extending term of current franchise to October 31, 1988. BACKGROUND: Previous staff reports explaining these items are attached. Additionally, because the franchise is granted by Ordinance, the necessary adoption and 30-day waiting period exceed the current expiration date of the franchise. Accordingly, the franchise must be extended another 30 days via the attached Memorandum of Agreement. The lease, however, will take effect October 1, 1988 and both the lease and franchise have the same termination date. Akin KENNETH JV DELINO • Wty Council Meeting enda Item No. CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER AUGUST 22, 1988 TO: MAYOR & CITY COUNCIL FROM: EXECUTIVE ASSISTANT SUBJECT: BALBOA ISLAND FERRY ACTION: Review lease and franchise provisions; AND If desired, adopt Resolution No. 88- declaring intent to grant a franchise. BACKGROUND: The City Council reviewed this item on May 23, 1988 (previous Staff Report attached) and referred it to a newly created Balboa Island Ferry Ad Hoc Committee composed of Council Members Strauss, Turner and Maurer. The Committee met twice, once alone and once with representatives of the Ferry. Committee discussion focused on three items; 1) term of lease, 2) lease and franchise fees, and 3) safety precautions. After initially considering a ten (10) year term, the Committee recommeded a 25-year term after discussing financing and investment concerns with the operators. The Committee recommends that both lease and franchise fees be 3% each rather than 2% as previously recommended by Staff. The Committee discussed, with the operators, the traffic control problems of loading and un- loading. The Committee reviewed provisions in both the lease and franchise, enabling the City to adopt regulations, if necessary, to regulate traffic problems. At the Committee meeting, the operator agreed to work with Staff and the Traffic Affairs Committee to solve existing problems. RECOMMENDATION: The City Council Ad Hoc Balboa Island Ferry Committee recommends that the City Council grant the franchise and approve the lease (attached) which provide for: a.) ,25 year term. b.) Three (3%) percent lease and franchise fees. c.) Increased insurance ($5,000,000). Page 2 RECOMMENDATION (continued) d.) Regulation, by City, of hours of operation. e.) Free use by City employees on City business. KENNETH J. DELINO 3 Council Meeting Age:ua Item No. F-2(b) CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 23, 1988 TO: MAYOR AND CITY COUNCIL FROM: EXECUTIVE ASSISTANT SUBJECT: BALBOA ISLAND FERRY ACTION: Review lease and franchise provisions; AND If desired, adopt Resolution No. 88- declaring intent to grant a franchise. BACKGROUND: The Balboa Ferry has been operating since 1928 from the ends of Agate Street on Balboa Island and Palm Street on the Balboa Peninsula. In 1963, the City granted a 25-year lease and franchise to the ferry company for the use of tidelands abut- ting the public right of way and for the right to operate the ferry. The lease and franchise expire July 8, 1988. A franchise must be granted by ordinance after passage of a re- solution of intent and a public hearing. Both the ordinance and lease will be returned to the council at the time of the public hearing. The ferry provides an important transportation link for emergency vehicles, pedestrians, bicyclists, and motorists. In 1987, the ferry carried approximately 690,000 vehicles, 21,000 motorcycles, 198,000 bicycles, and 2,300,000 persons. According to survey data, approximately 50% of passengers were Newport Beach resi- dents. The current lease and franchise are relatively simple. The lease permits the use of tidelands for terminals and related appur- tenances, and the franchise bestows the privilege to operate the ferry. The current franchise fee is 2% of gross receipts, and the lease fee is 1% of the first $100,000 and 1-1/2% of receipts in excess of $100,000. (Fares are set by the California Public Utilities Commission). Since the last fare increase in 1983, lease and franchise payments to the City have totalled as fol- lows: 1983 1984 1985 1984 1987 $20,272 $21,388 $21,428 $23,915 $23,952 ANALYSIS: Several options become available upon expiration of the current lease and franchise. The City could choose: (a) not to renew and close the operation; (b) to take over the operation; (c) to advertise for bids, or (d) to renew the exist- ing agreements. Option (a) was eliminated because the obvious impor- tance of the ferry to the transportation system; option (b) was eliminated because of the City's lack of experience and the pri- vate sector's demonstrated competence in operating the ferries; and option (c) was eliminated after review by the City Attorney of applicable statutes and after determination that no bona fide competition exists and that competitive bidding would only result in delay and complications. The City Council, however, may elect any of these other options. To develop new agreements, the current lease and fran- chise were reviewed and modified as follows: (a) Insurance and indemnification provisions were updated to reflect re- cent developments. Liability limits were raised from $500,000 to $5,000,000. (b) A provision was added to the fran- chise enabling the City Council to restrict the hours of operations. (c) A provision was added to the franchise enabling City vehicles and employees on City business to ride free. (d) Lease payments were increased to a flat 2% of gross receipts to raise total payments (including franchise fees) from the current 3.4% to 4% of gross receipts. The 4% rate derived primarily from a survey of similar operations throughout the State. All vessel common carriers regulated by the Public Utilities Commission were sent a ques- tionnaire requesting lease and franchise rates. Also port and harbor operators were contacted by telephone. It was determined that no comparable or similar sized ferry operation existed any- -2- where in the State. However, the following rates provide a basis of comparison: Location Port of Los Angeles Port of Los Angeles Port of Los Angeles San Diego Port District San Diego Port District San Francisco Port District Port of Long Beach City of Long Beach Franchisee BALA Excursion Boats Water taxis San Pedro Marine California Cruisin• Star & Crescent Ferry Red & White Ferry (includes uplands lease) Water taxi/cruise boats - 5% Crowley Towing & Transport 5% 5% 2.5% 1.5% 5% 6% 7% AVERAGE: 4.6% Considering the convenience and necessity of the Balboa Ferry and the lack of any City services provided to the opera- tion, the below average 4% rate is justified. • RECOMMENDATION: Approve resolution setting public hearing and declaring intent to grant a franchise. Consideration of the lease renewal will be considered at the same public hearing. A resolution setting forth the provisions of the franchise is at- tached, as is a copy of the proposed lease. KENNETH J. DELINO -3- • CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 October 25, 1988 Mr. Seymour Beek Balboa Island Ferry 415 South Bay Front Balboa Island, CA 92662 Dear Mr. Beek: Enclosed please find an executed copy of the lease between the City of Newport Beach and the Balboa Island Ferry. A copy of Ordinance No. 88-33 granting a franchise to operate a toll ferry is also enclosed, along with a copy of the original Ordinance No. 1045 for your files. Please sign the franchise acceptance form and return to this office. Thank you. KJD:mb Enclosures Ve y truly y_rs, i KENNETH J. ELINO EXECUTIVE A SISTANT \ t9^' t ,j 1A� City Hall • 3300 Newport Boulevard • P.O. Box 1768 • Newport Beach, California 92658-8915 i • City Council City of Newport Beach Newport Beach, California Re: Ordinance No. 88-33 Gentlemen: Balboa Island Ferry hereby accepts the franchise to operate a toll ferry according to the terms and conditions set forth in Ordinance No. 88-33 granting such franchise, adopted September 26, 1988. EFFECTIVE: October 26, 1988. BALBOA ISLAND FERRY BY /11;12:47 President WCMM INSURANCE SERVICES 444 MARKET ST. • STE 700 • SAN FRANCISCO, CA 94111 ENDORSEMENT NO. 1 ENDORSEMENT to be attached to and made part of Policy No. 88L1949/41 of the subscribing companies (per attached) managed by WCMM Insurance Services. ISSUED TO: BALBOA ISLAND FERRY It is understood and agreed that in the event of cancellation or material alteration, 30 days written notice shall be given to the City of Newport Beach. It is also understood and agreed that this insurance waives subrogation against the City of Newport Beach and shall not be contributory with any other insurance carried by the City. All other terms, clauses and conditions remain unchanged. Dated this 4th day of November 1988. WC WCMM INSURANCE SERVICES Bas 400 SOUTH HOPE STREET LOS ANGELES. CALIFORNIA 90071-2899 TELEPHONE (213) 889-6000 TELEX 574122 • FACSIMILE 42I31 669-6407 I1300 CENTURY PARK EAST LOS ANGELES, CALIFORNIA 900E7-1589 TELEPHONE 12131 553-6700 TELEX 874097 • FACSIMILE (213) 552-3090 555 131H STREET, N.W. WASHINGTON, O. C. 200041109 TELEPHONE (2021 383-5300 TELEX 89622 • FACSIMILE 1202) 383-5414 WRITER'S DIRECT OIAL NUMBER (714) 669-6902 O'MELVENY & MYERS SUITE 1700 610 NEWPORT CENTER DRIVE NEWPORT BEACH, CALIFORNIA 92660-64E9 TELEPHONE 1714) 760-9600 • (2131 669-6000 TELEX 47220B9 • FACSIMILE 1714) 669-6994 October 18th 1 9 8 8 Mr. Kenneth J. Delino Executive Assistant City of Newport Beach 3300 Newport Boulevard P. O. Box 1768 Newport Beach, California 92658-8915 Re: Balboa Island Ferry Lease Dear Mr. Delino: CITICORP CENTER 153 EAST 530K STREET NEW YORK, NEW YORK IO022-4611 TELEPHONE 12121 326-2000 TELEX 129165 • FACSIMILE (2121 326-2061 10 FINSBURY SQUARE LONDON EC2A ILA TELEPHONE 01-256 8451 TELEX 91138E9 • FACSIMILE O1-63B 8205 AKASAKA TWIN TOWER, EAST 16191 FLOOR 2-17-22 AKASAKA, MINATO-KU TOKYO 107, JAPAN TELEPHONE (03I 567-2800 TELEX J23775 OMMTOKYO • FACSIMILE 103) SB7-9738 OUR FILE NUMBER 060,200-999 Enclosed, pursuant to your letter of October 10, 1988, are three signed copies of the Lease between the City of Newport Beach and the Balboa Island Ferry Company. We will expect to receive a fully executed copy of the Lease once it has been signed by the Mayor and City Clerk. Very truly ours, arton Beek /kk Enclosures w • C-1s6 LEASE This Lease, made this � lay of ' , 1988, by and between the CITY OF NEWPORT BEACH, a municipal corporation and charter city (Lessor) and THE BALBOA ISLAND FERRY, INC., a California corporation (Lessee) is made with reference to the following: A. The State of California has granted to Lessor certain tide and submerged lands located in Lower Newport Bay. B. Lessor has, since 1938, leased a small portion of these tidelands to Lessee for the construction and maintenance of slips, docks, ways and other appurtenances, all to be used in conjunction with the operation of a ferry which transports persons and vehicles between terminals located near Agate Avenue on Balboa Island and Palm Avenue on Balboa Peninsula. C. The operation of the Ferry is consistent with the trust imposed upon these tidelands which requires they be used for commerce, fishing, and navigation. D. The City Council has the authority to enter into a lease of tidelands or beachfront property when, as is the case here, the property was under lease as of the effective date of the Charter. E. This Lease is consistent with provisions of the Land Use Plan of the Local Coastal Program, the Circulation Element of the General Plan, and other documents utilized by the City of 1 Newport Beach to evaluate the traffic impacts of existing land uses and proposed projects. NOW, THEREFORE, the parties agree as follows: 1. Leased Premises. In consideration of the rent to be paid by Lessee, and the covenants and conditions to be performed and observed by Lessee, Lessor leases to Lessee the property, and related improvements, described in Exhibit A. 2. Term. This Lease shall commence October 1, 1988, and expire September 30, 2013 unless earlier terminated as provided herein. 3. Lease Payments. A. For the use and occupancy of the leased premises, Lessee shall pay Lessor three (3%) percent of the annual gross receipts as that term is defined in subparagraph C. B. forty-five (45) C. Lease payments shall be made quarterly within days after the end of each calendar quarter. The term "gross receipts" shall mean the aggregate amount of all fees and charges for services rendered, whether for cash, charge or credit, regardless of whether money for the services is collected or not, and without deduction or allowance for costs, charges, or expenses for the purchase, sale, transportation or delivery of any merchandise, labor or material used in connection with the performance of services. The term "gross receipts" shall also include any subrentals received from 2 subtenants carrying on, or conducting, a business on any part or portion of the leased premises, or any payment made to Lessee for the use of any portion of the leased premises. Gross receipts shall be reported on the accrual method of accounting and not the cash method. D. The lease payments required to be paid pursuant to this paragraph shall be in addition to any other fee or fees required to be paid by Lessee, including, but not limited to, franchise fees and business license fees. 4. Books of Account. Lessee shall maintain and keep a full, accurate and correct account of all of its business carried on and conducted at, in, or about the leased premises. These books and records shall include all documents that would normally be required for examination by an independent accountant in accordance with generally accepted auditing practices. The books and records shall be preserved for at least three (3) years after expiration of the fiscal year to which the books and records apply. Authorized employees or agents of Lessor shall have the right to inspect, upon demand, during reasonable business hours, the books and records required to be kept pursuant to this section. 5. Utilities Taxes and Assessments. Lessee shall pay, and discharge prior to delinquency, any and all charges for water, gas, electricity, telephone, rubbish, electricity, telephone, garbage disposal and other public services furnished to the leased premises, or occupants thereof, 3 and shall hold Lessor harmless from any and all loss, damage or liability by reason of the failure of Lessee to comply with the provisions of this paragraph. 6. Taxes. Lessee shall pay, prior to delinquency, any and all taxes assessed against Lessee's possessory interest under this Lease, all taxes assessed against and levied upon fixtures, furnishings, equipment, or improvements, such as piers, floats and ways, and all other personal property of Lessee located on the leased premises. Lessee shall hold Lessor harmless from any and all loss, damage, or liability that may result from the failure of Lessee to comply with the provisions of this paragraph. Lessee hereby acknowledges that Lessor has given Lessee notice that Lessee's possessory interest in the premises may be taxed. 7. Use of Property. A. Lessee shall use the leased premises solely for the operation of a Ferry between Balboa Island and the Balboa Peninsula. Lessee shall construct, maintain and operate piers, docks, ways, landings, slips and other facilities necessary for the operation of the ferry service. Lessor shall continue to operate and maintain existing restrooms at the Agate Street terminal for the use of ferry patrons and members of the general public. Lessor shall provide janitorial services for restrooms. B. Lessee shall, at its sole cost and expense, comply with all applicable governmental rules, regulations, ordinances, statutes and laws now in force, or which may 4 subsequently be enacted. C. Occupancy of the leased premises after the date on which this Lease commences shall constitute acknowledgement by Lessee that the premises are in good order, condition and repair. 8. Alteration or Construction of Improvements. Lessee shall not alter existing improvements, nor construct new improvements, on the leased premises unless: A. Lessor has reviewed and approved all plans and specifications for the work to be performed and issued all appropriate permits that are preconditions to construction; B. Lessee has obtained all other permits required by law to be obtained prior to construction, including, without limitation, permits or approvals required of the Coastal Commission, State Lands Commission and/or Army Corps of Engineers; and C. The proposed alteration and/or construction is consistent with the limitations on use of the property imposed by this Lease, as well as any franchise, permit license or other approval related to the use of the premises or operation of the ferry. 9. Reconstruction. Notwithstanding the provisions of paragraph 8, Lessee shall be entitled to reconstruct improvements on the leased premises that are damaged by fire, storm, wind, wave or similar perils. Lessee shall commence reconstruction within sixty (60) days from the date of the damage, and diligently pursue same to 5 i • completion. Lessee shall not be entitled to any abatement in rent or other form of compensation from Lessor for loss of use of the premises or improvements in the event of damage or destruction of improvements unless the damage is caused by the wrongful conduct of Lessor or its employees, officers or agents. 10. Repairs. Lessee shall, at its sole cost and expense, keep and maintain the leased premises, including piers, slips, floats, ramps, ways, and other appurtenances, in good order, condition and repair. 11. Insurance. A. Lessee, prior to the commencement date of this Lease, shall furnish Lessor with certificates demonstrating that Lessee has procured the following insurance coverage: 1. Liability Insurance. General liability insurance by the terms of which Lessor and Lessee are named as insureds and are indemnified against liability for damage to property or injury to person (including death) arising out of, or in any way related, to the use and occupancy of the leased premises or the operation of a Ferry. The policy or policies shall provide coverage of at least $500,000 for damage to property, and $5,000,000 for bodily injury to, or death of, one person. The policy or policies shall be primary and noncontributing with any insurance which may be carried by Lessor. 6 • • 2. Property Insurance. Lessee shall maintain a policy or policies of insurance covering loss or damage to improvements on the leased premises to the extent of at least 80% of the full replacement value of those improvements and against all perils including fire, storm, wind, vandalism and malicious mischief. The policies shall conform to those required in subsection A. 3. Each policy of insurance shall contain substantially the following statement: "The insurance coverage evidenced by this certificate shall not be cancelled or materially altered except upon thirty (30) days' written notice given to the City of Newport Beach." 4. Each insurance policy shall be secured from good and responsible companies, acceptable to Lessor, and authorized to do, and doing, business in the State of California. 5. Lessee waives any and all rights of recovery against Lessor or against the employees, agents, and representatives of Lessor, for damage to improvements on the leased premises, or the property of others under its control, when such loss or damage is covered by insurance, whether or not required by this Lease. 12. Failure to Secure Insurance. if Lessee fails to secure or maintain the insurance required by this Lease, Lessor shall, after two (2) days' written notice to Lessee, be permitted to obtain such insurance in 7 Lessee's name and Lessor shall be reimbursed by Lessee for the premiums paid, and the cost and expense incurred in obtaining insurance, as well as interest on paid premiums at the maximum rate permitted by law computed from the date on which the premiums were paid. 13. Assignment/Transfer. Lessee shall not transfer or assign this Lease, or any right or interest it conveys in, or sublet the leased premises or any portion thereof, unless and until Lessee has obtained the prior written consent and approval of Lessor. Lessor shall not unreasonably withhold such consent, but Lessor reserves the right to condition approval of any assignment, transfer or subletting, upon Lessor's determination that the assignee, transferee or sublessee is as financially responsible as Lessee, has the experience and ability to operate the Ferry as well as Lessee, will agree to the terms and conditions of the franchise and other documents pertaining to the operation of the Ferry, and will provide the same level of public service as has been provided by Lessee. Should Lessee attempt to transfer, assign or sublet Lessee's interest in this Lease or the leased premises, except as provided in this paragraph, or should any of Lessee's rights under this Lease be sold or otherwise transferred, or should Lessee be adjudged insolvent or bankrupt, then Lessor may, at its option, terminate this Lease by giving thirty (30) days' written notice. Should Lessor consent to any transfer, assignment, or subletting attempted without prior approval, that consent shall not 8 constitute a waiver of any of the restrictions in this paragraph and the same shall apply to each subsequent attempt to transfer, assign or sublet this Lease or the leased premises. 14. Bankruptcy. Lessee agrees that in the event all, or substantially all, of Lessee's assets are placed in the hands of a receiver or trustee and remain so for a period of thirty (30) days, or should Lessee make an assignment for the benefit of creditors or be adjudicated bankrupt, or should Lessee institute any proceedings under the Bankruptcy Act or similar law wherein Lessee seeks to be adjudicated bankrupt or to be discharged of its debts, or seeks to effect a plan of liquidation or reorganization, or should any involuntary proceedings be filed against Lessee, then this Lease or any interest in and to the premises shall not become an asset in any such proceeding and, to the extent permitted by law, Lessor may declare this Lease terminated and take possession of the leased premises and improvements. 15. Hold Harmless/Indemnification. Lessee shall indemnify, defend, and hold harmless Lessor, and its officers, employees, agents, servants and representatives from and against any and all damages, losses, causes of action, obligations, claims, liabilities and demands regardless of the merit or outcome of the claim or suit, which arise out of, or are in any manner related to, the use or possession of the leased premises by Lessee, provided, however, the obligation of Lessee pursuant to this paragraph shall not 9 extend to losses, damages, causes of action or claims caused by the sole negligence, fraud, or wilful misconduct of the City, or its officers, employees, agents, and representatives. The provision of the insurance policies required by paragraph 11 shall not satisfy the obligations of Lessee pursuant to this paragraph. 16. Liens. Lessee shall not permit to be enforced against the leased premises, any portion thereof or any structure or improvement thereon, any mechanics', materialmen's, contractor's or other liens arising from, or any claims for damages growing out of, any work of repair, construction or alteration of improvements on the leased premises. Lessee shall give Lessor at least thirty (30) days prior written notice before commencing construction of any kind on the leased premises so that Lessor may post appropriate notices of non -responsibility. 17. Lessor Paying Claims. Should Lessee fail to pay and discharge, when due and payable, any tax or assessment, or any premium or other charge in connection with any insurance policy which Lessee is obligated to provide, or any lien or claim for labor or material employed or used in the repair, alteration, construction, or maintenance of improvements on the leased premises, then Lessor may, after ten (10) days' written notice to Lessee and at its option, pay any such tax, assessment, lien, claim, premium or charge, or settle or discharge any action, or satisfy any judgment thereon. All costs and expenses incurred or paid by Lessor pursuant to this 10 paragraph, together with interest at the rate of 10% per annum from the date of payment, shall be deemed to be considered as additional rent and shall be paid by Lessee within ten (10) days after written notice that such payments are due. 18. Termination. Lessor may terminate this lease immediately, or take any action authorized by law, in the event of a material breach and default as defined in paragraph 19. 19. Defaults. The occurrence of any one or more of the following events shall constitute a material default and breach of this Lease by Lessee: A. Vacation or abandonment of the premises by Lessee; B. The failure of Lessee to make any payment required by this Lease when such failure continues for a period of ten (10) days after written notice that payment is due; C. The failure of Lessee to observe or perform any of the covenants, conditions, or provisions of this Lease, except for the default specified in subparagraph B, where such failure continues for a period of twenty (20) days after written notice of the noncompliance, provided, however, that if the nature of Lessee's default is such that more than twenty (20) days are reasonably required for its cure, then Lessee shall not be in default if Lessee commenced the cure within twenty (20) days after written notice and thereafter diligently pursues cure to 11 • • completion. 20. Attornev's Fees. Lessee shall pay all reasonable attorney's fees incurred by Lessor in connection with Lessee's breach or default under this Lease. In the event an action is instituted by either party to enforce any provision of this Lease, the party in whose favor judgment is rendered shall be entitled to recover from the other all costs, including reasonable attorney's fees, incurred by the prevailing party. 21. Removal. Upon expiration of the term of this Lease, or earlier termination as provided in paragraph 18, Lessee shall surrender possession of the leased premises to Lessor in good condition and repair. Before surrendering possession, Lessee may, without expense to Lessor, remove from the premises all signs, furnishings and personal property located on the leased premises. If Lessee fails to remove any item of personal property, Lessor may deem such items to be abandoned and the sole property of Lessor, or remove and dispose of the items in which event the expense of removal and disposition shall be borne by Lessee and become immediately due and payable. 22. Payments and Notices. A. Payments. All rent and other sums payable pursuant to this Lease shall be directed to: 12 a CITY OF NEWPORT BEACH FINANCE DEPARTMENT 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 or at such other place as Lessor may hereafter designate in writing. B. Notices. Any notice required pursuant to this Lease shall be deemed given when personally delivered to an officer of Lessor or Lessee or when deposited in the United States mail, first class, postage prepaid, and addressed as follows: LESSOR: CITY OF NEWPORT BEACH CITY MANAGER 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 LESSEE: BALBOA ISLAND FERRY, INC. 410 South Bay Front Balboa Island, CA 92660 23. Only Agreement. This instrument constitutes the sole and only agreement between Lessor and Lessee regarding the leased premises and directly sets forth the obligations of each party to the other as of its date. 24. Amendment of Lease. No amendment of this Lease shall be effective unless set forth in a writing signed by an officer or authorized agent of Lessee and the Mayor or other authorized agent of Lessor. 13 IN WITNESS WHEREOF, each of the parties has caused this Lease to be executed, Lessor by two of its officers, duly authorized and its corporate seal to be affi _d, the day and year first above written. ATTEST: WANDA RAGGIO City Clerk BALBOA ISLAND FERRY, INC. By: And: 14 Doll'- S I OC.J T Sac raerA2y EXHIBIT ''A" Parcel 1: Beginning at a point on the Southeasterly line of Palm Street, Northeasterly 131.43 feet (measured along the Southeasterly line of Palm Street) from•. the most'Easterly corner of the intersection of Bay Avenue and Palm Street (formerly known as Main Street) as shown on the "Map of Bayside", recorded in book 3, page 38 of Miscellaneous Maps in the office of the county recorder of said county; thence Northeasterly along the Northeasterly prolongation of said Southeasterly line to the Pierhead Line, said Pierhead Line being Northeasterly 80.00 feet from and parallel with the Bulkhead Line extending from U. S. Bulkhead Sta. No. 112 to U. S. Bulkhead Sta. No. 113 as shown on a map titled "Harbor Lines, Newport Bay Harbor, Calif.", approved by the Secretary of the Army on February 15, 1951, on file in the Office of Chief of Engineers, Department of the Army, Washington, D.C.; thence Northwesterly along said Pierhead Line to the Northeasterly prolongation of the Northwesterly line of Palm Street; thence Southwesterly along said Northeasterly prolongation to a point Northeasterly 135 feet (measured along the Northwesterly line of Palm Street) from the most Northerly corner of the inter- section of Palm Street and Bay Avenue; thence Southeasterly in a direct line to the point of beginning. Parcel 2: Beginning at the intersection of the Southwesterly prolongation of the Northwesterly line of Agate Avenue as shown on the "Map of Resubdivision of Sect. One of Balboa Island" recorded in Book 6, page 30 of Miscellaneous Maps, in the office of the county recorder of said county, with the Bulkhead Line extending from U. S. Bulkhead Sta. No. 256 to U. S. Bulkhead Sta. No. 258 as shown on a map titled "Harbor Lines, Newport Bay Harbor, Cali- fornia", approved by the Secretary of the Army on February 15, 1951, on file in the Office of Chief of Engineers, Department of the Army, Washington, D.C.; thence N. 43' 52' W., 81.90 feet along said Bulkhead Line; thence S. 35° 58' W., 45.50 feet; thence S. 43° 52' E., 16.60 feet; thence S. 35° 58' W., 5.15 feet more or less; thence S. 43° 52' E., 112.86 feet more or less; thence N. 46° 08' E., 50.00 feet to said Bulkhead Line; thence North 43° 52' West 55.63 feet along said Bulkhead Line to the point of beginning. „a6 Sheet 1 50r SAY • .• JVEbc/P'RD U5. PIER/la-AD LINE u5.STA. NO. IS. as. $ULICAtEAD LINE BAY N �0 CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT [t S. STA. NO. I/2 AYE. DRAWN "Mkt DATE 77/521 • APPROVED PARCEL / PROPERTY UNDER LEASE TO ti.A.SEEK FOR PERRY LAND/NG NEXT TO FL/N ZONE PUBLIC WORKS DIRECTOR R E NO DRAWING NO. e..4v8/r"A" SNL 7 2 '4 • ,- e_r 1 ON 9 AD W GI o_ _ 30 0 g5' �r . \ D> W, 01 C`l. ty e Z 31 W O 86 % ut to p 1 0 0 y, 7 is 10.16 0- 66.3E' cs • '� to 30.46' 30.48' 4 30.48' i 30.4o \ `t{i 1t Z In tx, �� C `,0 �. �' �'0. el Nm�tSj u.: LT.; 2 W- 3 4l 4 �\ g 6 7 \ 2 Z `��� , �i �1 1 • • r) t 1 1 1 30.4$' 3a4A' 1 3a39' i30.48' \ 40.63' 30.4B' Z9 U.S. BULKHEAD LINE N 43° 5Z W Pb2GE L Z .y tto.GO S 43'6LE nj If SAS' �' S 3S' S8 W ttZ.B[o + • v 55.63 P.O.B. 1 0 T Z PIER HEAD _ LINE • ____._,___ __._ NEWPo2T BAY REY. 7460/88 C C— J. l -1- G 3 CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT US. NO. 256 DRAWN _an- DATE 5 -26-61 PROPERTY UNDER LEASE TO .1A BEEK FOR FERRY LANCING. BAL'o.1 ISLAND APPROVE ASS c`t. 0 PUBLIC WORKS CIRECTOR R.E. NO. DRAWING NO. EX //8/T'A°SNEEr 3 • • MEMORANDUM OF AGREEMENT EXTENSION OF FRANCHISE This Agreement entered this 29th day of September 1988 between the City of Newport Beach, a municipal corporation (hereinafter "City") and the Balboa Island Ferry Company (hereinafter "Ferry Co."), a California corporation, is made with reference to the following: RECITALS: WHEREAS, the City on July 8, 1963 granted a franchise to Ferry Co. for the purpose of operating a toll ferry between Balboa Island and the Balboa Peninsula; and WHEREAS, said franchise was due to expire on July 8, 1988, and the Ferry Co. applied for a renewal thereof; and WHEREAS, the City and Ferry Co., on 27 June 1988, agreed to an extension of such franchise pending an investigation of the merits and alternatives regarding such renewal; and WHEREAS, the City and Ferry Co desire to further extend the termination date of the franchise pending adoption of an ordinance granting a new franchise. NOW, THEREFORE, the parties agree as follows: 1. The termination date contained in the franchise dated July 8, 1963 is extended from July 8, 1988 to October 31, 1988. 2. The City and Ferry Co. shall abide by all terms and con- ditions contained in the original franchise throughout the extended term. APPROVED AS TO FORM: 2 BALBOA ISLAND FERRY COMPANY BY liSS-0 ORDINANCE NO. 88-33 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH GRANTING A FRANCHISE TO THE BALBOA ISLAND FERRY, INC. The City Council of the City of Newport Beach does hereby ordain as follows: Section 1. The City Council finds as follows: A. The Balboa Island Ferry, Inc., a California corporation, has made an application for a franchise to continue operating a toll ferry across Lower Newport Bay between Palm Street on the Balboa Peninsula and Agate Avenue on Balboa Island; and B. The Balboa Island Ferry has operated continuously for the past fifty (50) years and operated the last twenty-five years under a franchise last granted by the City Council in July, 1963; and C. The City Council has authority, pursuant to the provisions of Article XIII of the City Charter of the City of Newport Beach and Section 30900 of the Streets & Highways Code, to grant a franchise to any person authorizing operation of a toll ferry; and D. The proposed ferry would operate wholly within the boundaries of Newport Beach. The route of the ferry does not constitute a part of an extension of a state highway, and no part of the ferry route is within ten (10) miles of a toll bridge in operation, or under construction, over any body of water across which the ferry is to operate; and E. The proposed franchise is consistent with the various elements of the General Plan of the City of Newport Beach, the Land Use Plan of the Local Coastal Program, and other ordinances, policies, and regulations adopted by the City of Newport Beach; and F. The franchise service essentially identical to the preceding twenty-five (25) constitute "development" as that Act; and authorizes a level of public that offered by the ferry during years and, as such, does not term is defined in the Coastal G. The City Council has fully complied with the provisions of the Charter of the City of Newport Beach regarding the grant of franchises. IT IS HEREBY ORDAINED that pursuant to the provisions of Article XIII of the Charter of the City of Newport Beach and Section 30900 of the Streets & Highways Code of the State of California, the City Council hereby declares its intention to grant a franchise for the operation of a toll ferry to the Balboa Island Ferry Company, Inc. under the following terms and conditions: Section 2: Grant of Franchise. The City Council of the City of Newport Beach (City) grants to Balboa Island Ferry, Inc. (Grantee), a California corporation, a franchise to operate a toll ferry for the transportation of passengers, vehicles and freight across Lower Newport Bay between the northerly end of Palm Street on the 1 Balboa Peninsula and the southerly end of Agate Avenue on Balboa Island. Section 3: Term. The franchise shall commence at 12:00 A.M., November 1, 1988 and expire 11:59 P.M., September 30, 2013. Section 4: Scope of Operations. Grantee shall maintain adequate facilities for the operation of toll ferries and shall operate a sufficient number of toll ferries to provide reasonable and necessary transportation of passengers, vehicles and freight from terminal to terminal. Section 5: Consideration. Grantee shall pay three (3%) percent of the annual gross receipts from its operations pursuant to this franchise. Franchise payments shall be made quarterly within forty-five (45) days after the end of each calendar quarter, or portion thereof. Section 6: Gross Receipts Defined. The term "gross receipts" shall mean the aggregate amount of all fees and charges for services rendered, whether for cash, charge or credit, regardless of whether money for the services is collected or not, and without deduction or allowance for costs, charges or expenses for the purchase, sale, transportation or delivery of any merchandise, labor or material used in connection with the performance of services. The term "gross receipts" shall also include any subrentals received from subtenants carrying on, or conducting, a business on any part of portion of the property leased by City to Grantee, or any payment made to Grantee for the use of any portion of the leased premises. Gross receipts shall be reported on the accrual method of accounting and not the cash method. Section 7: Books of Account. Grantee shall maintain and keep a full, accurate and correct account of all of its business carried on and conducted pursuant to this franchise. These books and records shall include all documents that would normally be required for examination by an independent accountant in accordance with generally accepted auditing practices. The books and records shall be preserved for at least three (3) years after expiration of the fiscal year to which the books and records apply. Authorized employees or agents of City shall have the right to inspect, upon demand and during reasonable business hours, the books and records required to be kept pursuant to this section. Section 8: Liability Insurance. Grantee shall, prior to the commencement date of this franchise, furnish City with certificates demonstrating that Grantee has general liability insurance by the terms of which Grantee and City are named insureds and are indemnified against liability for damage to property or injury to person (including death) arising out of, or in any way related to, the grant of this franchise. The policy, or policies, of insurance shall provide coverage of at least $500,000 for damage to property and $5,000,000 for bodily injury to, or death of, one person. The policy or policies shall be primary and non-contributing with any insurance which may be carried by the City. Each policy shall contain a provision requiring thirty (30) days' written notice be given to City before the insurance coverage is cancelled or materially altered. All policies shall be secured from good and responsible companies, acceptable to City, and authorized and qualified to do business in the State of California. 2 Section 9: Indemnification. In addition to the obligation of Grantee to obtain insurance, Grantee shall also indemnify, defend and hold harmless City, and its officers, employees, agents and representatives, from and against any and all damage, loss, cause of actions, obligations, claims, liabilities and demands of whatever nature, regardless of the merit or outcome of same, that arise out of, or are in any manner related to, this grant of franchise, provided, however, the obligation of grantee pursuant to this paragraph shall not extend to losses, damages, or claims caused by the sole negligence, fraud or wilful misconduct of the City, or its officers, employees, agents and representatives. Section 10: Compliance with Law. Grantee shall comply with all lawful statutes, ordinances, rules and regulations adopted by the City Council of Newport Beach or any other agency having jurisdiction over the activities authorized by this franchise. Section 11: Damage to City Property. Grantee shall pay to City, on demand, the cost of any and all repairs to public property made necessary by any of the operations of franchisee pursuant to this franchise. Section 12: Removal and Relocation. Grantee shall remove and relocate, without expense to the City, any facilities installed, used, and maintained under this franchise and/or any related lease or agreement with the City if: A. Relocation is required because of any lawful change of grade, alignment or width of any public street, way, alley or place; B. Relocation is required because of the construction of any subway of viaduct; C. Relocation is required because of the repair, relocation, reconfiguration, or replacement of a bulkhead, public pier or other structure or facility within the harbor; or D. The public health, comfort, welfare, convenience, or safety so demands. Section 13: Hours of Operation. The City Council may, by resolution, prohibit or restrict the operation of toll ferries pursuant to this franchise when necessary or appropriate to protect the public welfare, peace, comfort and safety. Section 14: Right of Acquisition. The grant of this franchise shall not in any way, or to any extent, impair or affect the right of the City to acquire the property of grantee either by purchase or through the exercise of eminent domain and, in the event of acquisition by either means, this franchise shall have no monetary value. Section 15: Rates and Charges. Grantee shall not adopt or enforce any rates, charges, or regulations which discriminate in favor of one patron against another or which discriminate on the basis of any constitutionally impermissible criteria. Grantee shall not adopt any rates, charges or regulations which are contrary to, or not authorized 3 by, applicable ordinances, statutes, rules or regulations of any public entity or agency having jurisdiction over grantee's operations. Grantee shall not charge City vehicles or City employees on City business for use of the ferry. Section 16: Charter Compliance. This franchise is subject to all of the terms and conditions expressed herein and the terms and conditions specified in Article XIII of the Charter of the City of Newport Beach. Section 17: Breach/Default. The occurrence of any one or more of the following events shall constitute a material default and breach of this franchise: A. Failure to make any payment required by this franchise when this failure continues for a period of ten (10) days after written notice of non-compliance; B. Failure of grantee to observe or perform any of the covenants, conditions or provisions of this franchise where such failure continues for a period of twenty (20) days after written notice of non-compliance, provided, however, that if the nature of grantee's default is such that more than twenty (20) days are reasonably required for its cure, then grantee shall not be in default if cure is commenced within twenty (20) days after written notice and thereafter diligently pursued to completion. Section 18: Termination. City or grantee, at their option, may terminate this franchise immediately upon the occurrence of a material default or breach as defined in Section 17. Section 19: Payments and Notices. A. Payments. All rent and other sums payable pursuant to this franchise shall be directed to: CITY OF NEWPORT BEACH FINANCE DEPARTMENT 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 or at such other place as City may hereafter designate in writing. B. Notices. Any notice required pursuant to this franchise shall be deemed given when personally delivered to an officer of City or Grantee or when deposited in the United States mail, first class, postage prepaid, and addressed as follows: CITY: CITY OF NEWPORT BEACH CITY MANAGER 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 • GRANTEE: BALBOA ISLAND FERRY, INC. 410 South Bay Front Balboa Island, CA 92660 Section 20: The City Clerk shall cause the same to be published once in the official newspaper within fifteen (15) days after its adoption. Section 21: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 12th day of September, 1988, and adopted on the 26th day of September, 1988, by the following vote, to -wit: ATTEST: City Clerk AYES, Turner, Plummer, Hart, Cox, NOES, Strauss, Sansone, Maurer O4 4 It 1-D CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 September 15, 1988 Mr. Seymour Beek Balboa Island Ferry 410 S. Bayfront Balboa Island, CA 92662 Dear Mr. Beek: Enclosed are two copies. of Memorandum of Agreement/Extension of Franchise between the City of Newport Beach, and the Balboa Island Ferry Company. Please sign both the original and copy andreturn to my office as soon as possible. Thank you. Sincerely, KENNETH J. DELINO EXECTUIVE ASSISTANT KJD:mb • Encls. li I L:II ..r MTh:I, ," I.c,ijI1'v 1r(I, Nowport Beach, California 92663 Authorized 10 Pu0iiSn Advertisements of all kinCtudin9 public notices by Decree of the Superior Court of Orange County. Calulorma. Number A-6214. dated 29 September 1961 and A-24831 dated 11 June. 1963 - STATE OF CALIFORNIA - County of Orange v�d.c I.ol,u AO+•r1•11.1) CO.. •rhos.11 .$ •nt M 7 MIM I .1. 10 P.C. CO110rv1 ondin I am a Citizen of the United States and a resident of the County aforesaid. I am over the age of eighteen years. and not a party 10 or interested in the below entitled matter I am a principal clerk of the Orange Coast DAILY PILOT. with which is combined the NEWS -PRESS, a newspaper of general circulation. printed and published in the City of Costa Mesa, County of Orange. State of California. and that a Notice of Puh1 i c Hearing of which copy attached hereto is a true and complete copy. was printed and published in the Costa Mesa, Newport Beach. Huntington Beach. Fountain Valley, Irvine. the South Coast communities and Laguna Beach issues of said newspaper for on p r ; m� xC.ieb;fi,.Ye>442NAY to wit the issues) of August 25 , 198 y_ 198 198 . 198_— I declare, under penalty of perjury, that the foregoing Is true and correct. Executed on August 29 at Costa Mesa, C, ifornia. 1r , 198 tr1 Signature • PUBLIC NOTICE NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council' Of the City of Newport Beach will hold a public hearing Pursuant to Article XIII of the Newport Beach City Charter to consider granting a franchise to BALBOA ISLAND FERRY. INC. to op - Mete a toll ferry across Lower Newport Bay between' Palm Street on the Balboa Peninsula and Agate Avenue on Balboa Island. NOTICE IS HEREBY FURTHER GIVEN that said public hearing will be held on Use 12th day of September. 1988, at the hour of 730 p.m., In the City Han Council Chambers, 3300 Newport Boulevard, Newport Beach. CA 92663. at which time and place Interested persons may appear end be heard thereon WANDA E. RAGOIO, CITY CLERK Published Orange Coast Deily Pilot August 25, 1988 Th897 PROOF OF PUBLICATION NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Newport Beach will hold a public hearing pursuant to Article XIII of the Newport Beach City Charter to consider granting a franchise to BALBOA ISLAND FERRY, INC, to operate a toll ferry across Lower Newport Bay between Palm Street on the Balboa Peninsula and Agate Avenue on Balboa Island. NOTICE IS HEREBY FURTHER GIVEN that said public hearing will be held on the 12th day of September, 1988, at the hour of 7:30 p.m., in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, CA 92663, at which time and place interested persons may appear and be heard thereon. WANDA E. RAGGIO, C City Clerk Distribution: Legal Adv. ❑ file 0 Dept. Posting C7 ^ap%icattng 0 Oulletin Board 0 Notice sent to: BalboaIsland Ferry, Inc. 410 South Bay Front, BI 92662 Balboa Island Improvement Assn Dave Twitchell, Pres. P.O. Box 459 Balboa Island CA 92662 • .ty Council Meeting enda Item No. F-2(a) (41Z) TO: FROM: SUBJECT: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER AUGUST 22, 1988 MAYOR & CITY COUNCIL EXECUTIVE ASSISTANT BALBOA ISLAND FERRY ACTION: Review lease and franchise provisions; AND If desired, adopt Resolution No. 88- BY THE CITY COUNCIL CITY OF NEV SORT BEACI ,AUG 2 2 1988 at( /,1 x--J) declaring intent to grant a franchise. BACKGROUND: The City Council reviewed this item on May 23, 1988 (previous Staff Report attached) and referred it to a newly created Balboa Island Ferry Ad Hoc Committee composed of Council Members Strauss, Turner and Maurer. The Committee met twice, once alone and once with representatives of the Ferry. Committee discussion focused on three items; 1) term of lease, 2) lease and franchise fees, and 3) safety precautions. After initially considering a ten (10) year term, the Committee recommeded a 25-year term after discussing financing and investment concerns with the operators. The Committee recommends that both lease and franchise fees be 3% each rather than 2% as previously recommended by Staff. The Committee discussed, with the operators, the traffic control problems of loading and un- loading. The Committee reviewed provisions in both the lease and franchise, enabling the City to adopt regulations, if necessary, to regulate traffic problems. At the Committee meeting, the operator agreed to work with Staff and the Traffic Affairs Committee to solve existing problems. RECOMMENDATION: The City Council Ad Hoc Balboa Island Ferry Committee recommends that the City Council grant the franchise and approve the lease (attached) which provide for: a.) 25 year term. b.) Three (3%) percent lease and franchise fees. c.) Increased insurance ($5,000,000). • • Page 2 RECOMMENDATION (continued) d.)Regulation, by City, of hours of operation. e.) Free use by City employees on City business. 1 KENNETH J. DELINO Ci ouncil Meeting Age ud Item No. F-2(b) CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 23, 1988 TO: MAYOR AND CITY COUNCIL FROM: EXECUTIVE ASSISTANT SUBJECT: BALBOA ISLAND FERRY ACTION: Review lease and franchise provisions; AND If desired, adopt Resolution No. 88- declaring intent to grant a franchise. BACKGROUND: The Balboa Ferry has been operating since 1928 from the ends of Agate Street on Balboa Island and Palm Street on the Balboa Peninsula. In 1963, the City granted a 25-year lease and franchise to the ferry company for the use of tidelands abut- ting the public right of way and for the right to operate the ferry. The lease and franchise expire July 8, 1988. A franchise must be granted by ordinance after passage of a re- solution of intent and a public hearing: Both the ordinance and lease will be returned to the council at the time of the public hearing. The ferry provides an important transportation link for emergency vehicles, pedestrians, bicyclists, and motorists. In 1987, the ferry carried approximately 690,000 vehicles, 21,000 motorcycles, 198,000 bicycles, and 2,300,000 persons. According to survey data, approximately 50% of passengers were Newport Beach resi- dents. The current lease and franchise are relatively simple. The lease permits the use of tidelands for terminals and related appur- tenances, and the franchise bestows the privilege to operate the ferry. The current franchise fee is 2% of gross receipts, and the lease fee is 1% of the first $100,000 and 1-1/2% of receipts in excess of $100,000. (Fares are set by the California Public • •. C Utilities Commission). Since the last fare increase in 1983, lease and franchise payments to the City have totalled as fol- lows: 1983 1984 1985, 1986 1987 $20,272 $21,388 $21,428 $23,915 $23,952 ANALYSIS: Several options become available upon expiration of the current lease and franchise. The City could choose: (a) not to renew and close the operation; (b) to take over the operation; (c) to advertise for bids, or (d) to renew the exist- ing agreements. Option '(a) was eliminated because the obvious impor- tance of the ferry to the transportation system; option (b) was. eliminated because of the City's lack of experience and the pri- vate sector's demonstrated competence in operating the ferries; and option (c) was eliminated after review by the City Attorney of applicable statutes and after determination that no bona fide competition exists and that competitive bidding would only result in delay and complications. The City Council, however, may elect any of these other options. To develop new agreements, the current lease and fran- chise were reviewed and modified as follows: (a) Insurance and indemnification provisions were updated to reflect re- cent developments. Liability limits were raised from $500,000 to $5,000,000. (b) A provision was added to the fran- chise enabling the City Council to restrict the hours of operations. (c) A provision was added to the franchise enabling City vehicles and employees on City business to ride free. (d) Lease payments were increased to a flat 2% of gross receipts to raise total payments (including franchise fees) from the current 3.4% to 4% of gross receipts. The 4% rate derived primarily from a survey of similar operations throughout the State. All vessel common carriers regulated by the Public Utilities Commission were sent a ques- tionnaire requesting lease and franchise rates. Also port and harbor operators were contacted by telephone. It was determined that no comparable or similar sized ferry operation existed any- -2- where in the State. However, the following rates provide a basis of comparison: • Location Port of Los Angeles Port of Los Angeles Port of Los Angeles San Diego Port District San Diego Port District San Francisco Port District Port of Long Beach City of Long Beach Franchisee Rate Excursion Boats Water taxis San Pedro Marine California Cruisin• Star & Crescent Ferry Red & White Ferry (includes uplands lease) Water taxi/cruise boats 5% Crowley Towing & Transport 5% 5% 2.5% 1.5% 5% 6% 7% AVERAGE: 4.6% Considering the convenience and necessity of the Balboa Ferry and the lack of any City services provided to the opera- tion, the below average 4% rate is justified. RECOMMENDATION: Approve resolution setting public hearing and declaring intent to grant a franchise. Consideration of the lease renewal will be considered at the same public hearing. A resolution setting forth the provisions of the franchise is at- tached, as is a copy of the proposed lease. -3- KENNETH J. DELINO 5 RESOLUTION NO. 88-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO GRANT A FRANCHISE TO THE BALBOA ISLAND FERRY, INC. WHEREAS, the Balboa Island Ferry, Inc., a California corporation, has made an application for a franchise to continue operating a toll ferry across Lower Newport Bay between Palm Street on the Balboa Peninsula and Agate Avenue on Balboa Island; and WHEREAS, the Balboa Island Ferry has operated continuously for the past fifty (50) years and operated the last twenty-five years under a franchise last granted by the City Council in July, 1963; and WHEREAS, the City Council has authority; pursuant to the provisions of Article XIII of the City Charter of the City of Newport Beach and Section 30900 of the Streets & Highways Code to grant a franchise to any person authorizing operation of a toll ferry; and WHEREAS, the proposed ferry would operate wholly within the boundaries of Newport_Beaoh. The route of the ferry does not constitute a part of an extention of a state highway, no part of the ferry route is within ten (10) miles of a toll bridge in operation, or under construction, over any body of water across which the ferry is to operate; and WHEREAS, the proposed franchise is consistent with the various elements of the General Plan of the City of Newport Beach, the Land Use Plan of the Local Coastal Program, and other ordinances, policies, and regulations adopted by the City of Newport Beach; and public during WHEREAS, the proposed franchise would authorize a. level of service essentially identical to that offered by the ferry the constitute Act; and preceding twenty-five (25) years and, as such, does not "development" as that term is defined in the Coastal WHEREAS, the proposed franchise and related lease renewal relate to existing facilities and are "categorically exempt" pursuant to the provisions of the California Environmental Quality Act and the CEQA Guidelines; and WHEREAS, the Newport Beach City Charter requires the Council declare its intention to grant a franchise and to grant a franchise only after'conducting a public hearing, duly noticed, at which persons interested in, or objecting to, the proposed franchise may appear before the City Council and be heard. NOW, THEREFORE, BE IT RESOLVED that pursuant to the provisions of Article XIII of the Charter of the City of Newport Beach and Section 30900 of the Streets & Highways Code of the State of California, the City Council hereby declares its intention to grant a franchise for the operation of a toll ferry to the Balboa Island Ferry Company, Inc. under the following terms and conditions: Section 1: Grant of Franchise. The City Council of the City of Newport Beach (City) grants to Balboa Island Ferry, Inc. (Grantee), a California corporation, a franchise to operate a toll ferry for the transportation of passengers, vehicles and freight across Lower Newport Bay between the northerly end of Palm Street on the Balboa Peninsula and the southerly end of Agate Avenue on Balboa Island. 2 Section 2: Term: The franchise shall commence at 12:00 A.M., October 1, 1988 and expire 11:59 P.M., September 30, 2013. Section 3: Scope of Operations: Grantee shall maintain adequate facilities for the operation of toll ferries and shall operate a sufficient number of toll ferries to provide reasonable and necessary transportation of passengers, vehicles and freight from terminal to terminal. Section 4: Consideration: Grantee shall pay three (3%) percent of the annual gross receiptsfrom its operations pursuant to this franchise. Franchise payments shall be made quarterly within forty-five (45) days after the end of each calendar quarter, or portion thereof. Section 5: Gross Receipts Defined: The term "gross receipts" shall mean the aggregate amount of all fees and charges for services rendered, whether for cash, charge or credit, regardless of whether money for the services is collected or not, and without deduction or allowance for costs, charges or expenses for the purchase, sale, transportation or delivery of any merchandise, labor or material used in connection with the performance of services. The term "gross receipts" shall also include any subrentals received from subtenants carrying on, or conducting, a business on any part or portion of the property leased by City to Grantee, or any payment made to Grantee for the use of any portion of the leased premises. Gross receipts shall be reported on the accrual method of accounting and not the cash method. 3 Section 6: Books of Account: Grantee shall maintain and keep a full, accurate and correct account of all of its business carried on and conducted pursuant to this franchise. These books and records shall include all documents that would normally be required for examination by an independent accountant in accordance with generally accepted auditing practices. The books and records shall be preserved for at least three (3) years after expiration of the fiscal year to which the books and records apply. Authorized employees or agents of City shall have the right to inspect, upon demand and during reasonable business hours, the books and records required to be kept pursuant to this section. Section 7: Liability Insurance: Grantee shall, prior to the commencement date of this franchise, furnish City with certificates demonstrating that Grantee has general liability insurance by the terms of which Grantee and City are named insureds and are indemnified against liability for damage to property or injury to person (including death) arising out of, or in any way related to, the grant of this franchise. The policy, or policies, of insurance shall provide coverage of at least $500,000 for damage to property and $5,000,000 for bodily injury to, or death of, one person. The policy or policies shall be primary and non-contributing with any insurance which may be carried by the City. Each policy shall contain a provision requiring thirty (30) days' written notice be given to City before the insurance coverage is cancelled or materially altered. All policies shall be secured from good and responsible companies, acceptable to City, and authorized and qualified to do business in the State of California. Section 8: Indemnification: In addition to the obligation of Grantee to obtain insurance, Grantee shall also indemnify, defend and hold harmless Lessor, and its officers, employees, agents and representatives, 4 from and against any and all damage, loss, cause of action, obligations, claims, liabilities and demands of whatever nature, regardless of the merit or outcome of same, that arise out of, or are in any manner related to, this grant of franchise, provided, however, the obligation of grantee pursuant to this paragraph shall not extend to losses, damages, or claims caused by the sole negligence, fraud or wilful misconduct of the City, or its officers, employees, agents and representatives. Section 9: Compliance with Law: Grantee shall comply with all lawful statutes, ordinances, rules and regulations adopted by the City Council of Newport Beach or any other agency having jurisdiction over the activities authorized by this franchise. Section 10: Damage to City Property: Grantee shall pay to City, on demand, the cost of any and all repairs to public property made necessary by any of the operations of grantee pursuant to this franchise. Section 11: Removal and Relocation: Grantee shall remove and relocate, without expense to the City, any facilities installed, used, and maintained under this franchise and/or any related lease or agreement with the City if: A. Relocation is required because of any lawful change of grade, alignment or width of any public street, way, alley or place; B. Relocation is required because of the construction of any subway or viaduct; C. Relocation is required because of the repair, relocation, reconfiguration, or replacement of a bulkhead, public pier or other structure or facility within the harbor; or 5 D. The public health, comfort, welfare, convenience, or safety so demands. Section 12: Hours of Operation: The City Council may, by resolution, prohibit or restrict the operation of toll ferries pursuant to this franchise when necessary or appropriate to protect the public welfare, peace, comfort and safety. Section 13: Right of Acquisition: The grant of this franchise shall not in any way, or to any extent, impair or affect the right of the City to acquire the property of grantee either by purchase or through the exercise of eminent domain and, in the event of acquisition by either means, this franchise shall have no monetary value. Section 14: Rates and Charges: Grantee shall not adopt or enforce any rates, charges, or regulations which discriminate in favor of one patron against another or which discriminate on the basis of any constitutionally impermissible criteria. - Grantee shall not adopt any rates, s charges or regulations which are contrary to, or not authorized by, applicable ordinances, statutes, rules or regulations of any public entity or agency having jurisdiction over grantee's operations. Grantee shall not charge City vehicles or City employees on City business for use of the ferry. Section 15: Charter Compliance: This franchise is subject to all of the terms and conditions expressed herein and the terms and conditions specified in Article XIII of the Charter of the City of Newport Beach. 6 • ! Section 16: Breach/Default: The occurrence of any one or more of the following events shall constitute a material default and breach of this franchise: A. Failure to make any payment required by this franchise when this failure continues for a period of ten (10) days after written notice of non-compliance; B. Failure of grantee to observe or perform any of the covenants, conditions or provisions of this franchise where such failure continues for a period of twenty (20) days after written notice of non-compliance, provided, however, that if the nature of grantee's default is such that more than twenty (20) days are reasonably required for its cure, then grantee shall not be in default if cure is commenced within twenty (20) days after written notice and thereafter diligently pursued to completion. Section 17: Termination: City or grantee, at their option, may terminate this franchise immediately upon the occurrence of a material default or breach as defined in Section 16. Section 18: payments and Notices: A. Payments. All rent and other sums payable pursuant to this Lease shall be directed to: CITY OF NEWPORT BEACH FINANCE DEPARTMENT 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 or at such other place as City may hereafter designate in writing. B. Notices. Any notice required pursuant to this franchise shall be deemed given when personally delivered to an officer of 7 • • City or Grantee or when deposited in the United States mail, first class, postage prepaid, and addressed as follows: CITY: CITY OF NEWPORT BEACH CITY MANAGER 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 GRANTEE: BALBOA ISLAND FERRY, INC. 410 South Bay Front Balboa Island, CA 92660 BE IT FURTHER RESOLVED that September 12, 1988, at 7:30 P.M., in the City Council Chambers. of the City Hall at 3300' Newport Boulevard, Newport Beach, California, is .fixed as the date, hour and place when and where any person having any interest herein or any objection to the granting of this proposed franchise may appear before the City Council and be heard. BE IT FURTHER RESOLVED that the City Clerk is authorized and directed to publish this resolution in the official newspaper of the City on or before August 26, 1988. ADOPTED this 22nd day of August,,1988. A1"1'tST: City Council Agenda Item: F-2(n) /24) i RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ESTABLISHING THE CITY COUNCIL BALBOA ISLAND FERRY AD HOC COMMITTEE BY THE CITY COUNCIL • CRY OF NEWPORT BEACH JUN 13 1988 &t Ai n --r 7 WHEREAS, the City Council in 1963 granted to the Balboa Island Ferry Company, a lease and franchise to operate a toll ferry service across Newport Bay between Balboa Island and the Balboa Peninsula; and WHEREAS, such lease and franchise are due to expire July 8, 1988 and the operatorhas applied fora renewal thereof; and WHEREAS, the City Council desires to investigate the merits and alternatives associated with such renewal; and WHEREAS, the City Council desires to extend the current lease and franchise pending the outcome of such investigation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach, that the City Council Balboa Island Ferry Ad Hoc Committee is hereby created. BE IT FURTHER RESOLVED that the functions and duties of the Committee shall be as.follows: 1. The Committee shall consist of Councilmembers Strauss, Turner and Maurer with Councilmember Strauss as Chairman. • 2. The Committee shall review the terms and conditions of the lease and franchise for the toll ferry and make recommenda- tions to the City Council regarding renewal thereof. 3. The Committee shall report to the City Council on or before September 12, 1988. 4. The Committee shall sunset September 30, 1988 unless the term is extended by the City Council prior to that date. BE IT FURTHER RESOLVED that the Mayor and City Clerk are authorized to execute the Memorandum of Agreement attached hereto as Exhibit A extendiig the term of the lease and franchise from July 8, 1988 to September 30, 1988. ADOPTED this 13th day of June 1988. ATTEST: City Clerk Mayor -2- RESOLUTION NO. 88-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ESTABLISHING THE CITY COUNCIL BALBOA ISLAND FERRY AD HOC COMMITTEE WHEREAS, the City Council in 1963 granted to the Balboa Island Ferry Company, a lease and franchise to operate a toll ferry service across Newport Bay between Balboa Island and the Balboa Peninsula; and WHEREAS, such lease and franchise are due to expire July 8, 1988 and the operator has applied for a renewal thereof; and WHEREAS, the City Council desires to investigate the merits and alternatives associated with such renewal;. and. WHEREAS, the City Council desires to extend the current lease and franchise pending the outcome of such investigation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach, that the City Council Balboa Island Ferry Ad Hoc Committee is hereby created. BE IT FURTHER RESOLVED that the functions and duties of the Committee shall be as follows: 1. The Committee shall consist of Councilmembers Strauss, Turner and Maurer with Councilmember Strauss as Chairman. 2. The Committee shall review the terms and conditions of the lease and franchise for the toll ferry and make recommenda- tions to the City Council regarding renewal thereof. 3. The Committee shall report to the City Council on or before September 12, 1988, 4. The Committee shall sunset September 30, 1988 unless the term is extended by the City .Council prior to that date. BE I1 FURTHER RESOLVED that the Mayor and City Clerk are authorized tO'execute a'Memorandum of Agreement attached hereto as Exhibit A extending the:term of the .lease and franchise. from July 8, 1988 to September 30, 1988. .ADOPTED this 13th'day of June 1988.' ATTEST• aiV/74 City Clerk Mayor 2. • • MEMORANDUM OF AGREEMENT EXTENSION OF LEASE AND FRANCHISE This Agreement entered this o27d,.day of , 1988 between the City of Newport Beach, a municipal c poration (hereinafter "City") and the Balboa Island Ferry Company (hereinafter "Ferry Co."), a California corporation, is made with reference to the following: RECITALS: WHEREAS, the City on July 8, 1963 entered a lease with and granted a franchise to Ferry Co. for the purposes of operating a toll ferry between Balboa Island and the Balboa Peninsula; and WHEREAS, said lease and franchise are due to expire July 8, 1988, and the Ferry Co. has applied for a renewal thereof; and WHEREAS, the City wishes to conduct a 90 day investigation of the merits and alternatives regarding such renewal; and WHEREAS, the City and the Ferry Co. desire to extend the termination dates of the lease and franchise pending completion of the investigation. NOW, THEREFORE, the parties hereby agree as follows: 1. The termination dates contained in the lease and franchise both dated July 8, 1963 are extended from July 8, 1988 to September 30, 1988. 2. The City and Ferry Co. shall abide by all terms and conditions contained in the original lease and franchise throughout the extended term. APP "VED AS TO FORM: orney BALBOA ISLAND FERRY COMPANY By 2. • City Council Meeting Aglipp Item No. F-2(b) CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 23, 1988 TO: MAYOR AND CITY COUNCIL FROM: EXECUTIVE ASSISTANT SUBJECT: BALBOA ISLAND FERRY ACTION: BY THE CITY COUNCIL CITY OF NEWPORT BEACH MAY 2 3 1988 9 1474 au- 7nLna&es) Review lease and franchise provisions; AND If desired, adopt Resolution No. 88- declaring intent to grant a franchise. BACKGROUND: The Balboa Ferry has been operating since 1928 from the ends of Agate Street on Balboa Island and Palm Street on the Balboa Peninsula. In 1963, the City granted a 25-year lease and franchise to the ferry company for the use of tidelands abut- ting the public right of way and for the right to operate the ferry. The lease and franchise expire July 8, 1988. A franchise must be granted by ordinance after passage of a re- solution of intent and a public hearing. Both the ordinance and lease will be returned to the council at the time of the public hearing. The ferry provides an important transportation link for emergency vehicles, pedestrians, bicyclists, and motorists. In 1987, the ferry carried approximately 690,000 vehicles, 21,000 motorcycles, 198,000 bicycles, and 2,300,000 persons. According to survey data, approximately 50% of passengers were Newport Beach resi- dents. The current lease and franchise are relatively simple. The lease permits the use of tidelands for terminals and related appur- tenances, and the franchise bestows the privilege to operate the ferry. The current franchise fee is 2% of gross receipts, and the lease fee is 1% of the first $100,000 and 1-1/2% of receipts in excess of $100,000. (Fares are set by the California Public • • Utilities Commission). Since the last fare increase in 1983, lease and franchise payments to the City have totalled as fol- lows: 1983 1984 1985 1986 1987 $20,272 $21,388 $21,428 $23,915 $23,952 ANALYSIS: Several options become available upon expiration of the current lease and franchise. The City could choose: (a) not to renew and close the operation; (b) to take over the operation; (c) to advertise for bids, or (d) to renew the exist- ing agreements. Option (a) was eliminated because the obvious impor- tance of the ferry to the transportation system; option (b) was eliminated because of the City's lack of experience and the pri- vate sector's demonstrated competence in operating the ferries; and option (c) was eliminated after review by the City Attorney of applicable statutes and after determination that no bona fide competition exists and that competitive bidding would only result in delay and complications. The City Council, however, may elect any of these other options. To develop new agreements, the current lease and fran- chise were reviewed and modified as follows: (a) Insurance and indemnification provisions were updated to reflect re- cent developments. Liability limits were raised from $500,000 to $5,000,000. (b) A provision was added to the fran- chise enabling the City Council to restrict the hours of operations. (c) A provision was added to the franchise enabling City vehicles and employees on City business to ride free. (d) Lease payments were increased to a flat 2% of gross receipts to raise total payments (including franchise fees) from the current 3.4% to 4% of gross receipts. The 4% rate derived primarily from a survey of similar operations throughout the State. All vessel common carriers regulated by the Public Utilities Commission were sent a ques- tionnaire requesting lease and franchise rates. Also port and harbor operators were contacted by telephone. It was determined that no comparable or similar sized ferry operation existed any- -2- where in the State. However, the following rates provide a basis of comparison: • Location Port of Los Angeles Port of Los Angeles Port of Los Angeles San Diego Port District San Diego Port District San Francisco Port District Port of Long Beach City of Long Beach Franchisee Rate Excursion Boats Water taxis San Pedro Marine California Cruisin' Star & Crescent Ferry Red & White Ferry (includes uplands Water taxi/cruise boats Crowley Towing & Transport AVERAGE: 5% 2.5% 1.5% 5% 6% 7% lease) 5% 5% 4.6% Considering the convenience and necessity of the Balboa Ferry and the lack of any City services provided to the opera- tion, the below average 4% rate is justified. RECOMMENDATION: Approve resolution setting public hearing and declaring intent to grant a franchise. Consideration of the lease renewal will be considered at the same public hearing. A resolution setting forth the provisions of the franchise is at- tached, as is a copy of the proposed lease. KENNETH J. DELINO -3- • MEMORANDUM OF AGREEMENT (t77 EXTENSION OF FRANCHISE This Agreement entered this 29th day of September 1988 between the City of Newport Beach, a municipal corporation (hereinafter "City") and the Balboa Island Ferry Company (hereinafter "Ferry Co."), a California corporation, is made with reference to the following: RECITALS: WHEREAS, the City on July 8, 1963 granted a franchise to Ferry Co. for the purpose of operating a toll ferry between Balboa Island and the Balboa Peninsula; and WHEREAS, said franchise was due to expire on July 8, 1988, and the Ferry Co. applied for a renewal thereof; and WHEREAS, the City and. Ferry Co., on 27 June 1988, agreed to an extension of such franchise pending an investigation of the merits and alternatives regarding such renewal; and WHEREAS, the City and Ferry Co desire to further extend the termination date of the franchise pending adoption of an ordinance granting a new franchise. NOW, THEREFORE, the parties agree as follows: 1. The termination date contained in the franchise dated July 8, 1963 is extended from July 8, 1988 to October 31, 1988. 2. The City and Ferry Co. shall abide by all terms and con- ditions contained in the original franchise throughout the extended term. APPROVED AS TO FORM: ity At '•rney City -2i BALBOA ISLAND FERRY COMPANY By • i CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 October 25, 1988 Mr. Seymour Beek Balboa Island Ferry 415 South Bay Front Balboa Island, CA .92662 Dear Mr. Beek: Enclosed please find an executed copy of the lease between the City of'=•Ne'wport Beach and the Balboa Island Ferry. A copy of Ordinance No. 88-33 granting a franchise to operate a toll ferry is also enclosed, along with a copy of the original Ordinance No. 1045 for your files. Please sign the franchise acceptance form and return to this office. Thank you. Ve y truly yrs, KENNETH J. ELINO EXECUTIVE A SISTANT KJD:mb Enclosures City Hall • 3300 Newport Boulevard • P.O. Box 1768 • Newport Beach, California 926.' • • City Council City of Newport Beach Newport Beach, California Re: Ordinance No. 88-33 Gentlemen: Balboa Island Ferry hereby accepts the franchise to operate a toll ferry according to the terms and conditions set forth in Ordinance No. 88-33 granting such franchise, adopted September 26, 1988. EFFECTIVE: October 26, 1988. BALBOA ISLAND FERRY BY President Secretary • CITY OF NEWPORT BEACH . Office of City Manager (714) 644-3002 June 28, 1988 Mr. Seymour Beek Balboa Island Ferry 415 South .Bay Front Balboa Island, CA 92662 Dear Seymour: Enclosed is a fully executed copy of the Memorandum of Agreement, Extension of Lease and Franchise between the City of Newport Beach and the Balboa Island Ferry Company. cerely,, KENNETH J.DELINO EXECUTIVE ASSISTANT KJD: atf Enclosure City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 STATE* OF CALIFORNIA—BUSINESS AND TRANSPORTATION AGENCY GEORGE DEUKMEJIAN, Governor DEPARTMENT OF TRANSPORTATION ' DISTRICT 12, 1835 W. ORANGEWOOD AVENUE, SUITE Sr ORANGE, CA 92888 (714) 938-8800 June 29, 1988 Mr. Kenneth J. Delino Executive Assistant City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mr. Delino: 0 JULt.„ RECEIVED I1989 ) 1G fre+,clite Attend 0 C111 ilar.agn OC,�q As you requested in your letter dated May 4, 1988, regarding the Balboa Island Ferry, we at Caltrans have reviewed the City of Newport Beach's request and find no conflict. Attached is an executed "Findings Pursuant to Chapter 658, Statutes of 1963'. Sincerely, en,/ KEITE E. MC KEAN //// District Director District 12 Attachment • FINDINGS PURSUANT TO CHAPTER 658 STATUTES OF 1963 WHEREAS, the City Council of the City of Newport Beach is considering granting a franchise for the continued operation of a toll ferry from Balboa Peninsula to Balboa Island in the City of Newport Beach; and WHEREAS, Section 30090 of the Streets and Highways Code, empowers a city to grant a franchise for a toll ferry provided among other things, that the Director of Transportation finds that no toll bridge is planned or contemplated in a location with which the proposed ferry would compete; and WHEREAS, appropriate State officials and employees have reviewed the request of the City of Newport Beach and reported to the Director of Transportation that there is not planned or contemplated construction of any toll bridge between Balboa Peninsula and Balboa Island in the City of Newport Beach that would in any way compete with the proposed ferry operation; NOW, THEREFORE, I, Robert K. Best, the Director of Transportation, hereby find and determine that the ferry which the City of Newport Beach proposes to enfranchise would not be competitive with any toll bridge contemplated or planned for construction by the Department of Transportation. DATED THIS a Qli`day of , 1988 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION MEMORANDUM OFFICE OF THE CITY ATTORNEY fucutlre Atfi;yat C+x VwageS Mae City a ana;,e ecr:a April 27, 1988 TO: File FROM: Robert H. Burnham, City. Attorney RE: Balboa Ferry Lease On April 27, 1988, I spoke with Nancy Smith, our representative with the State Lands Commission. Smith confirmed the Balboa Ferry Lease need not be approved by State Lands Commission. Will check with coastal staff to see if reapproval of lease/franchise requires Coastal Commission approval Rbert H. Burnham ity Attorney RHB/jc cc: Ken Delino • • MEMORANDUM OFFICE OF THE CITY ATTORNEY April 15, 1988 TO: Ken Delino, Executive Assistant FROM: Robert H. Burnham, City Attorney RE: Balboa Ferry Lease You alleged submitting to this office relative to the Balboa Ferry lease. However, you have produced no copy of the Memo to support your claim. I have taken it upon myself to review all of the material in the City Clerk's files and all applicable statutory and decisional law on issues that may be of interest to you. 1. Is a franchise required: The Balboa Island Ferry may operate only pursuant to a franchise license or privilege issued by the appropriate governmental agency. Prior to 1963, the State Department of Transportation had exclusive jurisdiction over toll ferry franchises. In 1963, the City of Newport Beach was successful in sponsoring legislation which gave cities the authority to grant "franchises, privileges or licenses for the construction, maintenance, and operation of toll ferries under circumstances satisfied by the Balboa Island Ferry." (See Section 30900, Streets & Highways Code). 2. Is competitive bidding required: The Broughton Act (Section 6001, et seq. of the Public Utilities Code - "Act") establishes certain prerequisites, including competitive bidding, before any public entity may grant a franchise authorizing use of public streets or public property. In 1963, City Attorney Walter Charamza (now Judge) concluded the Broughton Act was not applicable to the ferry franchise because it is a municipal affair controlled by provisions of our Charter. Mr. Charamza's conclusion that competitive bidding is not required may be correct but his reasoning was not. If the grant of the ferry franchise was authorized and controlled by the City Charter, we would not have needed the 1963 legislation giving us the right to grant ferry franchises under limited circumstances. We needed the legislation because the state had preempted our right to issue franchises for toll bridges, ferries and roads. The ferry franchise was granted pursuant to state law, not the City Charter, and the Broughton Act could not be made inapplicable by virtue of charter provisions which did not form the basis for grant of the franchise. The Broughton Act may be inapplicable for three (3) reasons. First, the 1963 toll ferry legislation post dates the Broughton Act. The legislation does not reference the Broughton Act and, unlike the Act, does not require the payment of an annual fee based upon 2% of gross receipts. The inconsistencies between the Broughton Act and the 1963 legislation lent support to the argument the legislature intended toll ferry franchises to be exempt from Broughton Act requirements. Second, tideland leases have been held to be exempt from the Broughton Act. While the toll ferry franchise is not technically a lease of tidelands, but we might be able to convince a court the Broughton Act does not apply to waterways and trust property. Finally, the Broughton Act does not apply if there is no bona fide competition. To insure continuous service, a bidder must be able to establish the ability to commence operation at the conclusion of this lease, and the capital investment necessary to acquire the equipment may make that infeasible. In conclusion, the Broughton Act may or may not be applicable to the Balboa Ferry franchise. If competitive bidding would result only in delay and complications, we are justified in proceeding as we did in 1963. The Council may wish to proceed through competitive bidding if it believes that course is desirable. 3. State Lands Commission Approval: The City has not previously obtained State Lands Commission approval of the tidelands lease. Since these are granted tidelands, City approval of the tideland lease may be sufficient pursuant to Section 6305 PRC. That section provides that: "The powers granted by this chapter to the Commission as to leasing or granting of rights or privileges with relation to such lands owned by the State are hereby conferred upon the counties and cities to which such lands have been granted." However, the State Lands Commission regulations require an appraisal of property prior to leasing and I am checking with State Lands to see if we need approval of this lease. 4. Recommendations: Based upon my review of all documents and applicable law, I recommend we do the following: A. Prepare a letter to the Director of Cal -Trans advising of our intention to grant a franchise and tidelands lease for the Balboa Ferry, with the letter to contain the information required by Section 30900 of the Streets & Highways Codes (copy attached); B. Obtain confirmation from the State Lands Commission that their approval is not required (being done); C. Revise certain provisions of the tidelands lease (being done); and D. Make a determination whether to issue a franchise consistent with what has previously been done, or in the alternative, grant a license, (this to avoid argument the Broughton Act applies). Please call if you have any questions ert H. Burnham City Attorney RHB/jc 1'. Ch. 3 TOLL FERRIES IN CITIES § 30900 Article 4 :. TOLL FERRIES IN CITIES see. 30900. Authority to grant franchise or license; requirements. 30901. Annual fee. 30902. Certificate of public convenience and necessity. Article 4 was nddpd by Stats.1963, c. 658, p.1647, § 1. § 30900. Authority to grant franchise or license;. requirements Notwithstanding any other provision of this code, the legislative body of a city may grant upon such terms, (imitations, conditions, and restrictions and under such supervision as in its judgment are necessary and proper, franchises, privileges, or licenses for the con- struction, maintenance, and operation of toll ferries and for the tak- ing and keeping of tolls from such ferries when the following condi- tions exist: (a) The toll ferry is operated wholly within the boundaries of such city. (b) None of the route or routes of such toll ferry constitute a part or an extension of a state highway or a state highway route. (c) No part of the route or routes of the toll ferry for which a franchise, privilege or license is being processed is within 10 miles of a toll bridge in operation or under construction over any body of wa- ter across which said toll ferry is to operate:: (d) The director finds that no toll bridge is planned or contem- plated in a location where such ferry would compete with it. Failure of the director to make a finding and advise the legislative body of the city of such finding in writing within 30 days after being advised in writing by the legislative body of a city that it is considering granting a franchise, privilege, or license to operate a toll ferry that such a toll bridge is planned or contemplated shall be deemed a find- ing that no such toll bridge is planned or contemplated. (Added by Stats.1963, c. 658, p. 1647, § 1; eff. May 28, 1963.) Cross References Jurisdiction and power of department, see § 30300. Library References Ferries eza11, 30. C.J.B. Ferries §§ 7, 24. 457 ,i” et ; . i :I it Of • • • CITY OF NEWPORT BEACH mac,FOR',-r: : Mr. Robert O. Kupper 113 Pearl Avenue Balboa Island, CA 92662 Dear Mr. Kupper: Office of City Manager (714) 644-3002 April 11, 1988 Thank you for your letter of March 21, 1988 regarding the Balboa Ferry. As you noted, the lease/franchise for the ferry is being renegotiated and hours of operation will be reviewed. I will keep the Balboa Island Improvement Association abreast of the progress of the negotiations. Sincerely, Kenneth J. elino Executive Assistant KJD: atf City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 March 21, 1988 Mr. Kenneth Delino Executive Assistant to the City Manager 3300 Newport Blvd. Newport Beach, CA 92663 Re: Balboa Island Ferry, Hours of Operation Dear Mr. Delino: 1 am writing to you at the suggestion of Mr. Robert Burnham, City Attorney. 7t has been sugges3ed by Mr. Burnham that the Balboa to Balboa island Ferry is regulated by the City of Newport Beach. Further, that the ferry charter, which regulates such things as its hours of operation, is currently being reviewed for renewal in June of this year. As a resident of Balboa Island, and a member of the Balboa Island Homeowners Association, i would like to inform you of a situation that is causing much concern to the residents of the island. I'm sure you are aware, the Peninsula is an inviting location for restaurants and bars. Specifically at the Balboa Pier location, there are a number of establishments that do business until 2:00 a.m., when they are required to dose. With the proximity of Balboa island, just a ferry ride away, the Island has become a convenient parking location, not only for daytime traffic but also for the evening and late night bar users. The frequency of disturbances by individuals and groups of people "noisily" goinghome from the bars and restaurants is only increasing with eau? year. This has caused the residents of Balboa Island to look for positive solutions that could decrease these unwanted disturbances and vandalism. Much of the evaluation of the problem seems to center around the ferry and the late night (after midnight) use of the Island for parking. It has been noted that even though there is traffic and disturbance of the residential neighborhoods on Balboa Island prior to midnight, the residents have grown to accept this as a reality. The true problem, we feel, comes in the summer months when the ferry extends its hours of operation to 24 hours a day. This occurrence makes Balboa Island and its residents a target for late night disturbances (after midnight to about 2:30 a.m.). • • Mr. Kenneth Delino March 21, 1988 Page 11 We fee! the problem can be curtailed with the adjustment of the operating hours of the ferry. This would, in fact, cause people who were planning to frequent the Peninsula bars, to park there on the Peninsula instead of the residential neighborhoods of Balboa Island. Aside from reducing the late night disturbances, it would also help with a parking shortage for the residents on Balboa Island around the location of the ferry. i am hoping this letter has informed you of our problem and also of a potential solution worthy of evaluation. Again, I have been informed that the charter for operation of the ferry is currently being studied. ! would like your input into the possibility of restricting the operation of the ferry from 6:00 am. to midnight for the summer months, which would be consistent with its operation the rest of the year. If there are reasons that this is not feasible, I would appreciate learning of them. if there are other solutions to the problem, I would like very much to hear them. I trust the timing of this letter is appropriate for the evaluation of the new charter. It is our intention to bring this problem to the attention of the appropriate agencies within the City, and would ask that you direct us to any other departments or person that could be of assistance in this matter. The residents of Balboa Island are committed to working with the City of Newport Beach on this problem until it is resolved. Thank you in advance for your involvement. Sin.-rel Rod -rt 0 Kupper 11 Pearl Ave. Balboa Is and, California 92662 ROK:mr cc Robert Burnham, City Attorney Balboa Island Improvement Association TO: FROM: SUBJECT: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER October 8, 1987 CITY ATTORNEY EXECUTIVE ASSISTANT LEASE AND FRANCHISE-BALBOA ISLAND FERRY co nECEI'JEO cl MUMMY 'r OCT081987a CITY op \� NEWPORT BEACH. �� CAUF v9 Both subject items expire July, 1988. The lease involves tideland bayward of the Right -of -Ways for Agate and Palm Streets for which the City receives a percentage of the gross as a lease fee. The franchise is for a "toll ferry" and the City again receives a percentage of the gross as a franchise fee. In anticipation of their renewal, these items are being re- viewed and several questions have arisen which will require your opinion. 1. Is the lease of the tidelands advisable considering the City's liability exposure? 2. Must the franchise be let out for bid? 3. Alternately, is it advisable to handle this as a concession rather than as both a lease and franchise? Opinions of one of your predecessors regarding these matters are attached. Because of the many developments in these subject areas during the intervening 24 years, an up -dated opinion is requested. :KJD:ets Attachment f KENNETH .i. DELINO CITY OF NEWPORT BEACH CITY ATTORNEY DEPARTMENT June 14, To: The Honorable Mayor and City Council From: City Attorney Subject: Procedure for granting a franchise to operate the ferry ccctyr,/ t<teL 13;11)(12°2 The City Council has requested that the procedure be outlined for the granting of a franchise to operate a toll ferry between Balboa and Balboa Island. A. B. 1609 has been signed by the Governor and is now law. This bill adds Article 4 to Chapter 3 of Division 17 of the Streets and Highways Code and delegates the power to grant a franchise for a toll ferry to the legislative body of the city when certain con- ditions exist. The conditions set out in the bill do exist in Newport Beach and the Council is, therefore, authorized to grant a franchise. This bill requires a finding by the Director of Public Works of the State that no toll bridge is planned or con- templated in a location where the proposed ferry would compete with it. I have written a letter to the Director requesting that such a finding be made. Article XIII of the Newport Beach Charter sets out the procedure under which the City Council may grant a franchise. A resolution of intention must be adopted by the City Council declaring its intention to grant a franchise and must set out the day, hour and place when and where persons having an interest in or any objec- tion to the granting of the franchise may appear and be heard. The resolution must be published at least once and at least ten days prior to the date of the hearing. The resolution must set out the terms and conditions upon which the Council proposes to grant the franchise. After the hearing, the City Council may grant the franchise by ordinance. The terms and conditions under which it is granted must be the same as those set out in the resolution. If changes are made, a new resolution of intention must be adopted and similar proceedings taken. The Charter sets out some additional conditions which apply to any franchise granted and provides that the grantee by the acceptance of the franchise agrees to perform and be bound by the terms and condi- tions of the grant and by the provisions set out in the Charter. The Charter requires acceptance of the franchise by the grantee • • To: The Honorable Mayor and City Council -2- June 14, 1963 and that such acceptance be filed within ten days after the adop- tion of the ordinance granting the franchise. However, this time may be extended by the City Council. The possible timing on the franchise for the ferry would be: 1. On June 24, 1963, the City Council adopts the resolution of intention setting thedate of hearing on July 8, 1963. 2. The resolution of intention is published on June 27. 3. The hearing is held on July 8, 1963, and the Council then determines whether the franchise should be granted. It would seem to be appropriate to adopt such an ordinance as an urgency measure and make the same effective immediately inasmuch as the interruption of the service may affect the public peace, health or safety. If adopted as an urgency measure, the Council would have to declare the reasons for the urgency in the ordinance. The question has been raised as to whether or not it is necessary to call for bids in granting a franchise for the operation of a toll ferry. It is my conclusion that such bidding is not necessary. The basis for the conclusion is as follows: Newport Beach is a charter city and the Charter sets out the procedure for granting a franchise. The courts have concluded that such procedure is a municipal affair and, where a charter sets out the procedure for the city council to act upon a franchise, the general law does not apply. In City of San Diego v. Kerckhoff (1920), 49 Cal. App. 473, 480, the court observed that the municipal charter of San Diego covered the subject of granting franchises for street railroads at the time the grant was made. The court then stated that street railroads being a municipal affair the charter provisions con- trolled over the Broughton Act. In City of San Diego v. Southern, etc., Telephone Corp. (1954), 42 Cal. 2d 110, the court observed that the charter of the City of San Diego did not provide a pro- cedure for the granting of a franchise to a telephone company and the court concluded that the Broughton Act was, therefore, appli- cable. The Broughton Act is a state law appearing in Sections 6001, et seq., of the Public Utilities Code. It sets out an elaborate procedure for granting franchises by the legislative body of counties and cities. It requires competitive bidding, extensive advertising requirements, and a deposit with an appli- cation for a franchise, and authorizes the requirement for a bond to guarantee performance. This Act would be applicable if Newport Beach were not a charter city or if the Charter did not provide a procedure for granting franchises. Toe The Honorable Mayor and City Council -3- A recent case, Mann v, City of Bakersfield 2d 424, observes that the authority of the chartered city to grant.a franchise to lay tracks upon its streets is measured by the June 14, 1963 (1961), 192 Cal. Appe city council of a and maintain railroad charter. It should be pointed out that the Newport Beach Charter also au- thorizes the City Council to adopt a procedural ordinance setting out additional terms and conditions for the granting of franchises. We do not have such an ordinance and it does not appear to be presently necessary inasmuch as the Charter itself contains a comprehensive procedure to follow. If the City Council felt it necessary to call for bids in grant- ing a franchise for the ferry, it would be possible to revise the proposed procedure and do so. Enclosed is a draft of a proposed resolution which could be adopted on June 24, 1963. This draft was prepared in anticipation of Balboa Island Ferry's making an application for a franchise. It may develop that some revision of the resolution will be necessary before the 24th. This memo and the draft of the resolution are being transmitted to the City Council on Friday, June 14, in order that the members of the Council will have an opportunity to review it prior to the meeting on June 17 and direct any changes that appear necessary. WWCsmec Enc. cc - City Manager City Clerk Walter W. Charamz City Attorney H. S. BEEK PRESIDENT BALBOA ISLAND FERRY 410 SOUTH BAY FRONT BALBOA ISLAND. CALIFORNIA 92662 October 13, 1987 City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92658-8915 Attention: Mr. Kenneth Delino Executive Assistant City Manager's Office Dear Mr. Delino: As requested by Mr. Beek, enclosed to you under cover of this letter are the two Operating Statements for the Balboa Island Ferry, Inc. . They cover the periods of December 1986 and August 1987. Please do not hesitate to phone should you have any question or comment. ab Enclosures Sincerely, BALBOA ISLAND FERRY, INC. Adrienne Burton, Secretary PHONE (7141 673-1070 ACCOUNT: BALBOA ISLAND FERRY, INC. INCOME & EXPENSE STATEMENT - DECEMBER 31, 1986 DECEMBER YEAR TO DATE REVENUE: Ferry Revenue $49,333.72 $697,568.81 Charter 450.00 900.00 Total Revenue $49,783.72 $698,468.81 EXPENSES: Officer Salaries $ 0.00 Ferry Salaries 33,163.22 Independent Contract/Labor 855.73 Advertising 0.00 Profit Sharing Plan 4,267.00 Depreciation 488.84 Fees & Commissions 0.00 Franchise & Lease 1,726.68 Fuel 1,032.93 Accid/Not/Cov./Ins. 0.00 Insurance 3,998.06 Insurance -Group Health 979.48 Legal & Accounting 0.00 Licenses 75.00 Maintenance Laborer 3,891.26 Maintenance -Docks 227.13 Maintenance -Shop 678.50 Miscellaneous 56.94 Office Expense 542.49 Repairs to Office Equip. 0.00 Rent 2,500.00 Taxes -Fed. & State 0.00 Taxes -Personal Property 3,510.98 Levy & Garnishments (108.60) Payroll Taxes 2,371.29 Telephone 21.87 Sales Taxes Paid 0.00 Utilities 204.75 Donations 75.00 TOTAL EXPENSES $60,558.55 NET OPERATING PROFIT ( LOSS) ($10,774.83) $ 12,352.50 326,513.93 10,816.27 287.44 30,614.03 5,866.08 10,862.87 23,903.92 16,758.42 1,680.34 39,586.05 9,432.22 6,595.35 330.75 23,082.19 7,965.37 10,929.69 500.16 2,628.47 298.49 30,000.00 10,393.00 8,516.13 54.30 28,640.50 750.23 235.28 2,347.61 6,225.00 $628,166.59 $70,302.22 • ACCOUNT: BALBOA ISLAND FERRY, INC. Statement of Income & Expenses - AUGUST 31, 1987 AUGUST REVENUE: Ferry Revenue Charter Revenue TOTAL REVENUE $84,231.73 0.00 $84,231.73 YEAR TO DATE $494,767.28 450.00 $495,217.28 EXPENSES: Salaries -Officers $ 0.00 $24,705.00 Salaries -Ferry . 27,824.53 229,736.51 Independent Contract Labor 153.00 888.60 Advertising 0.00 50.00 Profit Sharing Plan Accruals 3,088.59 24,779.48 Depreciation 379.49 3,035.92 Fees & Commissions 2,732.61 7,420.37 Franchise & Lease Costs 2,948.10 17,316.02 Fuel 1,623.82 10,377.11 Insurance 4,291.51 35,734.44 Insurance Group Health 988.40 7,732.31 Legal & Accounting 0.00 6,818.13 Licenses 0.00 0.00 Maintenance-Ferrys 1,448.84 21,571.93 Maintenance -Docks 288.27 6,162.73 Maintenance -Shop 371.76 6,692.84 Miscellaneous 0.00 431.73 Office Expense 152.64 2,293.13 Repairs to Office Equipment 90.00 90.00 Rent 2,500.00 20,000.00 Taxes -Federal & State paid 0.00 3,822.00 Taxes -Personal Property 1,614.73 5,125.71 Taxes -Payroll 1,989.29 21,624.68 Telephone 32.75 334.67 Sales Taxes Paid 0.00 187.13 Utilities 233.46 1,807.92 Donations 0.00 175.00 TOTAL EXPENSES $52,751.79 $458,913.36 NET OPERATING PROFIT ( LOSS) $31,479.94 $36,303.92 • SEW ART CITY OF NEWPORT BEACH Office of the City Manager (714) 644-3002 May 4, 1988 CalTrans 1835 West Orangewood Room 310 Orange, CA 92668 Re: Findings Required by Chapter 658, Statutes of 1963; Balboa Island Ferry Gentlemen: The City Council of the City of Newport Beach will soon consider granting a franchise to permit the continued operation of the Balboa Island Ferry. The Ferry has been in operation since 1938 and provides a significant service to the general public. State law authorizes the City of Newport Beach to grant a franchise for the Ferry when certain conditions exist, and one of those conditions requires action by the Director of CalTrans. Specifically, the Director must find that "no toll bridge is planned or contemplated in a location where such ferry would compete with it." (Section 30900 Streets & Highways Code) The statute cited above provides that failure of the Director to make such a finding and advise the City Council in writing, shall be deemed a finding that no such toll bridge is planned or contemplated. The City of Newport Beach is aware of no planned or contemplated toll bridge within its jurisdiction, and none is shown on the Circulation Element of our General Plan. We would appreciate it if you would review this matter and make the required findings. .For your convenience, I have drafted proposed findings and you will find them enclosed with this letter. truly yo Kenneth J. Delino Executiv Assistant KJD/jc Enclosures City Hall • 3390 Newport Boulevard, Newport Beach, California 92663 . • FINDINGS PURSUANT TO CHAPTER 658 STATUTES OF 1963 WHEREAS, the City Council of the City of Newport Beach is considering granting a franchise for the continued operation of a toll ferry from Balboa Peninsula to Balboa Island in the City of Newport Beach; and • WHEREAS, Section 30090 of the Streets and Highways Code, empowers a city to grant a franchise for a toll ferry assuming, among other things, that the Director of Public Works finds that no toll bridge is planned or contemplated in a location with which the proposed ferry would compete; and WHEREAS, appropriate State officials and employees have reviewed the request of the City of Newport Beach and reported to the Director of CalTrans that there is not planned or contemplated construction of any highway facility between Balboa Peninsula and Balboa Island in the City of Newport Beach that would in any way compete with the proposed ferry operation; NOW, THEREFORE, the Director of CalTrans hereby finds and determines that the ferry which the City of Newport Beach proposes to enfranchise would not be competitive with any toll bridge contemplated or planned for construction by the Department of Public Works. • DATED this day of , 1988 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORATION Director KJD:ets CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER October 5, 1987 TO: CITY MANAGER FROM: EXECUTIVE ASSISTANT SUBJECT: BALBOA ISLAND FERRY Per the telephone conversation with Seymour Beek, both the ground lease and the franchise for the Ferry expires July, 1988. The file reveals the following: The original. Ferry Terminal's Lease commenced May 16, 1938 and expired May 31, 1963. The land involved included street Right -of -Way at Agate Avenue and Palm Street. The rental fee was $15.00 per year. In 1963, a new lease and a franchise to operate a toll ferry were approved by the City Council. Apparently, a Lease Committee comprised of Council Members was involved in the negotiations and recommendation of the lease terms. The current ground lease has a fee of 1% of the first $100,000 of gross income and 11% of the remainder of gross income. The franchise has a flat fee of 2% of the gross income. During the past five years, gross income and fees paid to the City have been as follows: Gross Income City Fee 1982 1983 1984 1985 1986 $498,170 $593,476 $625,362 $626,527 $697,568 $ 16,936 $ 20,272 $ 21,388 $ 21,428 $ 23,915 Renegotiation of these two instruments can take many forms. The current documents could be simply re -written and updated with sub- stantially the same fees and rates. An audit and/or an appraisal could be conducted. Staff could do this alone or with the advise of a Lease Committee. Also, this item may be suitable for discussion at a Study Session. Please advise on how you would like to have t led. 1 KENNETH r. DELINO BArBOA ISLAND A,RRY (3j H. S. BEEK President BY THE CITY COUNCIL CITY Of NEWPORT BEACH MAY 0 91963 410 SOUTH BAY FRONT BALBOA ISLAND, CALIF'ORNIA 92662 A)\-\-\ Pt1,0 Public Utilities Commission State of California State Building, Civic Center San Francisco, California 94102 Gentlemen: Re: Decision 83- 04-045 Application 82-12-20 Your Communication Dated 4/6/83 April 18, 1983 T In accordance with your instructions in your communication April 6, 1983 we intend to post public notice on April 19, 1983 and to iiiIMIlairtareili accordingly on April 24, 1983. PHONE (714) 673-1070 _L-7:4,--->„ _tk-v•s\ 0400.r \‹, PR 2l 1g51s ,I`; of We are posting our notice in our terminals and on each of our Ferry Boats. A copy of the notice which we are posting is enclosed. If you have any questions please contact the undersigned, at (714) 673 1070. Very truly yours, BALBOA ISLAND FERRY, INC. *5.4 H. S. BEEK, President HSB:ab cc: City Clerk, City of Newport Beach Date Or( CIO gEs SENT TO: ':fl nciimen Manager ❑ Attorney ❑ Stt g. Dir. ❑ CenScry Dir. ❑ PD & R Dir. ❑ Planning Dir. ❑ Pclice Chief ❑ P.W. Dir ❑ Other • NOTICE TO THE PUBLIC BALBOA ISLAND FERRY RATE ADJUSTMENT Decision 83-04-045 of the Public Utilities Commission of the State of California (Application 82-12-20) permits certain rate adjustments to be made in the fares of Balboa Island Ferry. The rates which will be in effect starting April 24, 1983, are printed below. The effect of this rate adjustment is to raise the price of an adult passenger from 15c to 20C, and the price for a car and driver from 45c to 55C. The price for a 30-Trip Ticket for car and driver is increased from $10.50 to $12.00, or from 35C to 40C per trip. ISSUED: April 19, 1983 One Way Fares EFFECTIVE: April 24, 1983 Prior to Effective April 24, 1983 April 24, 1983 Adult - 12 or over 15C• 20c (pedestrian or vehicle occupant) Child - 5 years and under 12 years 5p 10C Child under 5 years accompanied by Free Free passenger paying adult fare Bicycle 5c l0c Motor Cycle 10Q 15c Passenger Automobile or Truck under 1 ton capacity Regular fare 30c 35c Commuter fare • 20C 20c Trucks over 1 ton capacity 35c 354 and not exceeding 21 tons rated capacity Vehicles not otherwise specified 60c 60c (#evrre- 4., iv CITY OF NEWPORT BEACH r4r. MEMORANDUM: From ASSISTANT TO THE CITY MANAGER City Manager t' - TO January 14 is 83 1/2 ' SUBJECT: APPLICATION FOR A FARE INCREASE/BALBOA ISLAND FERRY The City Council on January la, 1983 referred the attached P.U.C. appli- cation packet to staff for review: The.only impact upon the City-, will'be an approximately 15% increase in the flat amount paid.monthlyl1. to the Ferry company for transport of City vehicles/employees. Currently.W, the.City pays $225 per Month: The increase, if approved, would result. in $258 per month charge. The City!s fees have not been increased:' iT!: since 1976; hence it is believed that the adjustment is fair and equitable Ce.Y /jmbd. "1dr XC: City Clerk t Attachment kttt . - ' Reply wanted „ i40 as, - 4-• + 1," ‘t Reply mot nedary •:)? • • • f , • .„;.; ' C1-1;;;( 57 ••Y , • • , • € • . • • .• By. :?..'eY.V • /tr.. GE Tclityj ' • i,t44,,Zet:47:7 , ; • • • 4 , • • • • . t ' r • • Tip St fr ALiAP4,3 JAN 19 1 9 s By the Gift COUNCIL CITY OF N}1Nf'ORT MACH JAMES H. LYONS ATTORNEY AT LAW SUITE 1216 PACIFIC MUTUAL BUILDING 523 WEST SIXTH STREET LOS ANGELES.CALIFORNIA 90014 December 6, 1982 City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92660 Gentlemen: • C,-$Sty (KO 6.,,r0,311 Enclosed herewith is a copy of an Application which has been filed with the California Public Utilities Commission for authority to adjust the rates on the Balboa Island Ferry. If you have any questions at all, please contact the undersigned. JHL/1 Enc. Yours very truly, 7 tedA JAMES H. LYONS Date /, — 9- 42- CO SENT TO: ayor • CsR4men L t ailag r Id31i jt'.f ❑ 1? itot ney Q Bldg. Dir. ❑ CenSery Dir. ❑ PBS R Dir. D Planning Dir. ❑ Po;ice Chief ❑ P.W. Dir O Other BEFORE THE PUBLIC UTILITIES COMISSION OF THE STATES ' C' LIFORNIA Application of BALBOA ISLAND ) FERRY, A California Corpora- ) tion, to adjust rates. } APPLICATION oe o 404, The application of Balboa Island Ferry respectfully shows: 1. The exact name of the applicant is Balboa Island Ferry, a•California corporation, which has its principal place of Luiness at 410 South Bay Front, Balboa Island, California 92662. A certified copy of its Articles of Incorporation was filed with Application 40683 on December 16, 1958. 2. Communications, notices, papers and documents in regard to this application are to be served upon: Jaynes A. Lyons, Esq. 523 West Sixth Street, Suite 1216 Los Angeles, California 90014 Telephone: (213) 626-6451 3. This application is filed pursuant to Section 454 of the California Public utilities Code. 4. Applicant is a common carrier ferry service and operates for the transportation of persons and motor vehicles across Balboa Bay between Balboa and Balboa Island in the City of Newport Beach pursuant to the authority of Decision 57647 dated January 13, 1959, in Application 40633. The business has been carried on by the applicant or its predecessors since 1930 pursuant to authority granted in Decision 22747 in Application 16668. 5. The rates presently charged by applicant were established by Decision 90681, dated August 14, 1979. 6. Since the establishment of the present fares in 1979, applicant has experienced very substantial increases labor costs and other costs of operation. The operation of the applicant for the rate year of January 1, 1983 through December 1, 1983, will result in a substantial loss. A fare adjustment is necessary if the applicant is to continue its operation for the benefit of the public. 7. The balance sheet of the applicant dated September, 1982, is attached hereto, made part hereof and marked Exhibit A. The profit and loss statement for the period of January 1, 1982 through September, 1982, is attached hereto, made part hereof and marked Exhibit B. 8. Applicant's present and proposed fares are as follows: One -Way Fares: Present Proposed Adult.- 12 or over (pedes- trian or auto passenger) 15 cents 20 cents Child - 5 years and under 12 years 5 it10 " Child under 5 years accom- panied by passenger paying adult fare Free Free Bicycle 5 cents 10 cents Motor Cycle 10 H15 " Passenger automobile)Regular fare 30 n35 " or Truck under 1-ton) capacity )Commuter fare 20 " 20 " Trucks over 1-ton rated capacity and not exceeding 2 1/2 tons rated capacity 35 " 35 " Vehicles not otherwise specified 60 11 60 A 30-trip ticket for car driver is currently available at $10.50 (.35 per trip). It is proposed that this ticket continue to be available at $12.00 (.40 per trip). All increments of charges in the tariff of the applicant are in nickels. Fares are collected and change is made while the ferry is sailing. The crossing takes less than five minutes, so it is essential that the increments in the tariff be kept in nickels so that change can be readily made. 2. 9. An estimate of the projected income for the rate year commencing January 1, 1983, through December 31, 1983, under present and proposed fares, is attached hereto, made part hereof and marked Exhibit C. The results of operations under present and proposed fares for the rate year are attached hereto, made part hereof and marked Exhibit D The number of passengers for the rate year, i.e., the calendar year of 1983, was calculated by averaging the number of passengers for the years 1980, 1981 and the first nine months of 1982. The number of passengers vary slightly from year to year and in the opinion of manage- ment, this is the most accurate method of predicting the passen- ger level for the rate year. 10. The additional gross revenue resulting from the proposedadjustment of fares based on 1981 annual traffic would be $157,170, and the percentage increase is 31%. Without the fare adjustment applicant will have an operating loss of $47,200 after taxes. "Other income" will reduce this loss, but applicant will still suffer a loss during 1983 without the re- quested fare adjustment. 11. A description of applicant's property and equipment, cost and depreciation schedule is contained in its annual report. 12. There are no other carriers which would in any way be interested in the within application. The only municipality involved is the City of Newport Beach. A certificate of service on the City Clerk of Newport. Beach is attached hereto, and made part hereof and marked Exhibit E. WHEREFORE, applicant prays: 1. That the Commission grant its order since the need for financial relief is imminent; 2. That the applicant be authorized to rates as herein proposed on five days' notice and to the public; 3. For such other relief as may be the circumstances. ex parte adjust the to the Commission justified under 3. DATED . _ 324 S_,IND, California, this 34(11)__ day of November, 1982. r7AMES H . LYY NS/ Attorney f pplicant / VERIFICATION BALBOA ISLAND FERRY a corporation By H. S. BEEK, President I am the president of Balboa Island Ferry, a corporation, applicant herein; I have the'foregoing application and know the contents thereof, and the same is true of my own knowledge except for matters stated therein on information or belief, and as to those matters I believe it to be true. I declare under penalty of perjury that the foregoing is true and correct. EXECUTED at 5400 California, this 3 0 aay of November, 1982. H. S. BEEK re - CURRENT ASSETS: Cash on Hand Cash in Checking Cate in ALL Savings Cash in ?!LP= S TOTAL CASH Material Supplies Prepaid Insurance Prepaid Franchise Tax Prepaid Corporate Tax Accounts Receivable Loan Receivable TOTAL PREPAIDS INVESTMENTS: Stocks Balboa Inn Madonna Road Plaza TOTAL INVESTMENTS FIXED ASSETS: 04fice Furniture Shop Equipment • Boats Wharves, docks, etc.. TOTAL'FIXED ASSETS Less Depreciation TOTAL ASSETS CUR?_... LIABILITIES. SDI Payable FICA Payable FED. ,,..T Payable ST. WHT. Payable City of Newport Beach Profit Sharing Plan TOTAL PAYABLES r+D T T_T.- Stock Issued Retained Earnings Profit ( LOSS) YTD TOTAL CAPITAL BALBOA ISLAND FERRY, INC. Balance Sheet SEPTENBER 1982 ASSETS $ 1,526.37 325.07 177,587.33 89,058.39 $268,497.16 $ 826.48 2,670.39 12,292.00 6,664.00 17,212.35 9,200.00 $ 48,865.22 $143,836.73 (5,491.00) 40,832.00 $179,177.73 $ 7,056.34 5,402.96 127,709.46 40,829.00 $180,997.76 (100,040.04) S 80,957.72 LIABILITIES $ 188.73 (2.10) 1.29 380.30 Payable 13,095.68 15,787.44 $ 83,215.93 417,909.32 46,921.24 $ 29,451.34 $548,046.49 $577,497.83 TOTAL LIABILITIES EXHIBIT A . $5771497.83 OI'Et;TIc REVENUE: Ferry Revenue Ch ter ':revenue .i'J;A1_ REVEV E BALBOA ISLAND FERRY, INC. Incon.e Statement SEPT NBER 1982 $41,498.15 0.00 $41,498.15 SEPTEMBEP. YEAR TO DATE $388,440.88 0,00 $386,440.88 EXPENSES: Saleries-Officers $ 0.00 $ 9,150.00 Salaries -Ferry 22,648.55 201,807.64 Contract Labor 91.40 5,790.49 Ad:ert=sing 0.00 388.00 P- =4- Sharing Flan ,690.32 15,787.44 Depreciation 329.00 2,961.00 Fees c: Commissions 19.00 196.00 Franchise & Lease Costs 1,452.43 13,095.68 Fuel 1,577.05 -14,927.65 Insurance 10,759.95 21,566.09 Insurance Health 791.69 6,865.24 Employee Injury Claim 0.00 788.40 Legal & Accounting 0.00 3,862.17 Licenses 0.00 0.00 Maintenance -Ferry 1,541.72 29,073.78 Maintenance -Docks, ramps, etc. 0.00 2,991.59 Maintenance -Shop 853.28 7,632.35 Miscellaneous 277.75 1,363.64 Office Expanse 195.61 2,171.02 Rent 2,000.00 18,000.00 Taxes -Franchise 0.00 0.00 Taxes -Personal Property 0.00 2,096.56 -...,as-Payroll 1,317.46 18,039.50 Telephone 58.83 608.53 Utilities 87.54 892.13 Donations 0.00 - 225.00 TOT'- EXPENSES $45,891.58 PE OFIT ( LOSS ) Ord.Y :COME: M'____1_nevus S D i' ij etvJ s Interest on Sa rocs D4.stril:u_ions fr.Partnerships T3PAL OTHER INCC:!E LOSS 122.21 1,103.00 4,996.32 0.00 ($4,393.43) $ 6,221.53 $ 1,628.10 $ 3,203.18 10,764.24 20,108.33 4,685.51 $380,280-90 $ 8,159.98 $ 38,761.26 $ 46,921.24 EXHIBIT B 3 LIIILED:a Projected Present Projected Proposed Projected ANNUAL QUANITY REVENUE TOTAL REVENUE Revenue TOTAL REVENUE ITEM (Thousands) Per Item. Per Item Per Item Per Item Current Rates Proposed Rate (Thousands) (Thousands)1 1 ADULT ( over 12 years ) 2126.1 .15 318.9 .20 425.2 CHILD ( 5 thru 11 years ) 365.3 .05 18.2 .10 36.5 BICYCLE 165,3 .05 8.2 .10 16.4110 MOTORCYCLE 41.2 .10 4.1 .15 6.2 PASSENGER AUTO or TRUCK under 1-Ton Capacity TRUCKS 1-21/2 Ton Capacity REGULAR FARE COMMUTER FARE VEHICLES NOT OTHERWISE SPECIFIED TOTALS 446,7 .30 134.0 .35 156.3 49.6 .20 9.9 .20 9.9 nil .35 nil .35 nil nil .60 nil .60 nil 493.3 650.6. A 30-trip ticket for car and driver is currently available at $10.50 ( .35 per trip). It is proposed that this ticket continue to be available at $12.00 (.40 per trip). } • FINANCIAL SUMMARY. • (All Figures in Thousands) 1982 (a) Rate Year 1983 (b) Present Fares Proposed Fares :Rove uue-Ferry 496.3 493.3 650.6 Revenue -Charter .1 ..4 .4 Misc. Income 4.5 1.7 1.7 TOTAL INCOME 500.9 495.4 652.7 Salaries -Officers 18.3 24.7 24.7 Salaries -Ferry and Contract Labor 281.6 308.2 308.2 Adae.rtising .6 .4 .4 Ret-.:ement Plan 22.4 23.7 23.7 Depreciation 3.8 4.7 4.7 Fees .2 .3 .3 City Franchise & Lease 16.8 16.8 22.3 Fuel 19.8 19.8 19.8 Insurance 25.9 25.9 25.9 Employee Health Ins. 8.9 9.9 9.9 Employee Injury Claims .8 .3 .3 Legal & Accounting 3.8 3.3 3.3 Licenses .1 .1 .1 Maintenance -Ferry, Docks, Shop 43.2 36.2 36.2 Miscellaneous 1.4 1.4 1.4 Office Expense 3.0 2.4 2.4 Rent 26.0 32.8 32.8 Taxes-Pers.Property 2.1 2.1 2.1 Taxes -Payroll 24.4 27.9 27.9 Telephone .8 .6 .6 Utilities 1.0 1.1 1.1 TOTAL OPERATING EXP. 504.9 542.6 548.1 (Before Tax 0per.Prof.) (4.0) (47.2) 104.6 State Income Tax (Operating Income) 0 0 10.1 Federal Income Tax (C crating Income) 0 0 26.0 After Tax Operating Profit (4.0) (47.2) 68.5 Operating Ratio 100.79 109.5 89.5. Other Income 31.7 38.8 38. 8 State Income Tax (TOTAL) 2.6 0 13.8 Federal Income Tax (TOTAL) 3.9 0 35.6 Total After -Tax Income 21.4 (8.4) 94.0 (a) October 1, 1981 through September 30, 1982 actual figures (b) Rate Year is calendar year of 1983 EXHIBIT D Page 1 of 2 v BASIS OF 1933 PROJECTION • • The revenue -ferry, revenue -charter and miscellaneous income was projected upon the average of the years 1980, 1981 and the first nine months of 1982. The salaries of the officers are already established for the year 1983. Salaries of the ferry and contract labor were projected on the basis on a 6% annual increase. Advertising was based upon a five-year average for the past five years. The retirement plan was based upon the 6% annual increase of the salaries for the ferry employees. City franchise and lease costs are the applicant's best estimate. Fuel, insurance, employees' health insurance are the same as 1982. Employee injury claims, legal and accounting and licenses are based upon a five-year average. Maintenance -ferry, docks and shop is estimated at.a 9.6% increasewhich is the average annual increase, excluding .$15,000 extraordinary expense in 1982. Miscellaneous and office expense is based upon a three- year average. Rent is as presently established. Tax rates (other than income taxes) were based upon the 1982 tax rate. Telephone is based upon a five-year average, utilities are calculated to be the same as 1982. EXHIBIT D Page 2 of 2 • • PROOF OF SERVICE BY MAIL I am a citizen of the United States, over the age of 18 years and a resident of the county of Los Angeles. My business address is 523 West Sixth Street, Suite 1216, Los Angeles, California. On the 6th day of December, 1982, I served the within Application upon the following named person by depositing a copy of the same, enclosed in a sealed envelope, with postage thereon fully prepaid, in the United States mail at Los Angeles, California, addressed as follows: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92660 and there is regular daily communication by mail between said place of mailing and the place so addressed. I declare under penalty of perjury that the fore- going is true and correct. EXECUTED at Los Angeles, California, this 6th day of December, 1982. CARMEN L. JONES EXHIBIT E CIOF NEWPORT BCH MEMORANDUM: From CITY ATTORNEY TO CITY CLERK Ian 311_, Re: Balboa Island Ferry - Liability Insurance We are transmitting herewith. a copy of the Certificate of Insurance issued to Balboa Island Ferry for the automobile ferry operation. The certificate should be maintained by the City Clerk. Reply wanted ❑ Reply not necessary ❑ N1.7D By. • • • • '-vtificate of Insurancr' =O THIS CERTFICATE IS ISSUEL•.s„ .RATTER OF INFORMATION ONLY AND CONFERS No JTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES LISTED BELOW. NAM{ ANn Anrypr <;¢ rr arjrrl{'v MARCO P. ANICH CO. 901 DOVE STREET, SUITE 240 NEWPORT BEACH, CA 92660 NAME. AND ADDRESS OF INSURE T BALBOA ISLAND FERRY, INC. ESTATE OF JOSEPH A. BEEK 410 SOUTH BAY FRONT BALBOA ISLAND, CA COMPANIES AFFORDING COVERAGES COMPANY A LETTER A INSURANCE COMPANY OF NORTH AMERICA COMPANY B LETTER 1 COMPANY C LETTER COMPANY D LETTER COMPANY LETTER This is to certify that policies of insurance listed below have been issued to the insured named above and are in force at this time. COMP 7YPE OF INSURANCE POLICY NUMBrI+ _ EXPIRATIONYDATE Limits of Liability in Thousands (000) EACH OCCURRENCE AGGREGATE. GLP GO 02 59 14 7 01-01-81 t, BODILY RLA)ITY PROPERTY DAMAGE s 500, $ 100, s _ A In n ■ II ❑ ❑ ■ III GENERAL LIABILITY COMPREHENSIVE FORM PREMISES —OPERATIONS EXPLOSION AND COLLAPSE HAZARD UNDERGROUND HAZARD PROOUCTS•'COMPL(TED OPERATIONS HAZARD CONTRACTUAL INSURANCE BROAD FORM PROPERTY DAMAGE INDEPENDENT CONTRACTORS PERSONAL INJURY BODILY INJURY AND PROPERTY DAMAGE COMBINED S S T, ..--....s.f.v:r1 Y. • PERSONAL INJURY AUTOMOBILE ❑ • ❑ ❑ LIABILITY COMPREHENSIVE FORM OWNED town NONOWNED C. s ''' °. 1 s► ` t1 �'A "lJ Ji'� ,q f.. 1 B BOZO* f �, w�`S.tT. Y• �' `. 1 BooILYI1JURY (EACH PERSON) BODILY IFUURY (EACH ACCIDENT) s S S PROPERLY DAMAGE BODILY INJURY AND PROPERTY DAMAGE 0 $ EXCESS LIABILITY ❑ UMEIREI.LA rORM ❑ OTHER r HANUMHR} 1t A FIRM '' F • BODILY I1.1URY AND PROPERTY DAMAGE cOFAwINru t S A / WORKERS' COMPENSATION and EMPLOYERS' LIABILITY STATUTORY = iLICHA[CIDEh1I OTHER DESCRIPTION OF OPERATIO#Gn CA vetsivEHICLES AUTO FERRY Tors cmifioile er verification eI in•urt eel nol an disarms Oak" and don MI wend rte+9 ✓ !Mlr C,e raceme ef!srded b! ITN Oekto lid'd Web Iielntldmtlins any nL W!M.,M? CCAdox1 o: cry cortraG a ether davewerl *to revel to rn,ell III cutdlgM c, rr,hC.eRam of wsurAte nay be =led d roar pram itw msw,noe atsordel br the M AE oevnt>ad *coca n whoa to an tents mamas and condom of sac" polkas, Cancellation: Should any of the above described policies be cancelled before the expiration date thereof. the issuing com- pany will endeavor to mall_ days written notice to the below named certificate holder. but failure to mail such notice shall impose no obligation or liability of any kind upon the company. NAME AND A.OI 1Rf SS Of cr 1>T I! p.'. A T r rinl fa R CITY OF NEWPORT BEACH C/O CITY ATTORNEY'S OFFICE 3300 NEWPORT BLVD. NEWPORT BEACH, CA 92663 DATE ISSUED 11-27-79 lk ACORD 25 I£d I I MAY b4r THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA CIry kr illillOF CITY COUNQL Ata- pplication of BALBOA ISLAND ) FERRY, a California corpora- ) APPLICATION NO. tion, to adjust rates. ) APPLICATION 14- pet) The application of Balboa Island Ferry respectfully shows: 1. The exact name of the applicant is Balboa Island Ferry, a California corporation, which has its principal place of business at 410 South Bay Front, Balboa Island, California 92662. A certified copy of its Articles of Incorporation was filed with Application 40683 on December 16, 1958. 2. Communications, notices, papers and documents in regard to this application are to be served upon: James H. Lyons,"Esq. 523 West Sixth Street, Suite 1216 Los Angeles, California 90014 Telephone: (213) 626-6451. 3. This application is filed pursuant to Section 454 of the California Public Utilities Code. 4. Applicant is a common carrier ferry service and operates for the transportation of persons and motor vehicles across Balboa Bay between Balboa and Balboa Island in the City of Newport Beach pursuant to the authority of Decision 57847 dated January 13, 1959, in Application 40683. The business has been carried on by the applicant or its predecessors since 1930 pursuant to authority granted in Decision 22747 in Application 16668. 5. The rates presently charged by applica established by Decision 86107 in Application 56404 Datee.i�_2 13, 1976. Coumtmen 4111 6. Since the establishment of the present fares in 1976, applicant has experienced very substantial increases in labor costs and other costs of operation. The operation of the applicant for the rate year of July 1, 1979 through June 30, 1980, will result in a substantial loss. A fare adjustment is necessary if the applicant is to continue its operation for the benefit of the public. 7. The balance sheet of the applicant dated December 31, 1978, is attached hereto, made part hereof and marked Exhbit A. The profit and loss statement for the year 1978 is attached hereto, made part hereof and marked Exhibit B. 8. Applicant's present and proposed fares are as follows: One-way. fares: Present Proposed Adult - 12 or over (pedes- trian or auto passenger) 100 . 150 Child - 5 years and under 12 years 50 50 Child under 5 years accompanied by passenger paying adult fare Free Free Bicycle 50 50 Motor Cycle 100 100 Passenger automobile 300 300 Passenger automobile -Commuter fare 250 200R Panel trucks and trucks under 1-ton rated capacity 30¢_. 300 Trucks over 1-ton rated capacity and not exceeding 2 1/2 tons rated. capacity 350 350 Vehicles not otherwise specified 600 600 By this application the applicant proposes only an increase in one-way adult fares. All increments of charges in the tariff of the applicant are in nickels. Fares are collected and 2 change is made while the ferry is sailing. The crossing takes less than five minutes, so it is essential that the increments in the tariff be kept in nickels so that change can be readily made. Applicant proposes a reduction for the price of an automobile on the coincuter fare from 250 to 200. The result of this change would maintain the present fare for a commuter car with one adult passenger. Since the differential, how- ever, will be 100 where under the present fares it is 50, it is anticipated that there will be a greater use of the commuter fare. At the present time, of all the automobiles carried in 1978, only 3.3% made use of the commuter fare. It is anticipated that this use will rise to 10%. Revenues projected for the rate year were estimated on this basis. 9. An estimate of the projected income for the rate year commencing July 1, 1979, through June 30, 1980, under pres- ent and proposed fares, is attached hereto, made part hereof and marked Exhibit C. The results of operations under present and proposed fares for the rate year are attached hereto, made part hereof and marked Exhibit D. 10. The additional gross revenue resulting from the proposed adjustment of fares based on 1978 annual traffic would be $95,648, and the percentage increase is 26%. Operating profit for the rate year after taxes is only $48,378. Without the. fare adjustment applicant will lose $25,456 during the rate year. 11. A description of applicant's property and equipment, cost and depreciation schedule is contained in its annual report. 12. There are no other carriers which would in any way be interested in the within application. The only municipality involved is the City of Newport Beach. A certificate of service on the City Clerk of Newport Beach is attached hereto, made part hereof and marked Exhibit E. 3 WHEREFORE, applicant prays: 1. That the Commission grant its order ex parte since the need for financial relief is imminent; 2. That the applicant be authorized to adjust the rates as herein proposed on five days' notice to the Commission and to the public; 3. For such other relief as may be justified under the circumstances. DATED at Balboa Island , California, this 23 day of April , 1979. BALBOA ISLAND FERRY a corporation By H. S. BEEK, President JAMES H. LYONS Attorney for Applicant VERIFICATION I am the president of Balboa Island Ferry, a corporation, applicant herein; I have read the foregoing application and know the contents thereof, and the same is true of my own knowledge except for matters stated therein on information or belief, and as to those matters I believe it to be true. I declare under penalty of perjury that the foregoing is true and correct. EXECUTED at Balboa Island , California, this 23 day of April , 1979. H. S. BEEK 4 BALBOA ISLAND FERRY STATEMENT OF FINANCIAL CONDITION December 31, 1978 , ASSETS Current Assets Cash on Hand Change Fund Cash in Bank - Checking Deposit in Transit Cash in Bank - Savings Material Supplies Prepaid Insurance Prepaid Franchise Tax Frepaid Federal Corporation Tax A/C Receivable - Vamos A/C Receivable - Bateman,Eichler,Hill,Richards A/C Receivable - Sutro & Co, Total Current Assets Investments. Stocks & Bonds Investment -Balboa Inn, a Ltd. Cruiser - Vamos Total Investments Fixed Assets Office Furniture Shop Equipment Trucks Boats Wharves, Docks, Terminals Net Fixed Assets TOTAL ASSETS LIABILITIES & CAPITAL Current Liabilities SDI Taxes Payable FICA Taxes Payable State W/H Taxes Payable City of Newport Beach Payable Total Current Liabilities Capital Capital Stock Issued Retained Earnings Net Income or (Loss) 1/1/78 to Less: Federal Income Tax Total Capital Partnership Cost $ 1,192.00 4,850.00 2,326.00 74,739.00 40,829.00 12/31/78 Accum.Depr, $ 1,059.00 2,342.00 2,204.00 48,017.00 33,630.00 $ 4,359.21 100.00 11,897.62 352.00 86,822.25 826.48 208.38 5,852.00 8,448.00 8,395.76 328.00 328.00 $127,917.70 $145,849.48 (4,991.00) 51,088.56 191,947.04 Net $ 133.00 2,508.00 122.00 26,722.00 7,199.00 $ • 243.43 2.48 337.10 12,321.58 36,684.00 $356,548.74 $ 12,904.59 $ 83,215.93 220,157,67 42,562.55 (2,292_00) 343,644.15 TOTAL LIABILITIES & CAPITAL $356,548.74 EXHIBIT A 110 BALBOA ISLAND FERRY STATEMENT OF INCOME AND EXPENSE January 1, 1978 to December 31, 1978 INCOME Revenue - Ferry $366,330.95 Revenue from Charter 410.00 Miscellaneous Income 304.51 Total Income $367,045.46 EXPENSES Salaries.- Officers Salaries - Ferry Contract Labor Advertising Retirement Plan Depreciation $ 18,300.00 177,916.6o 11,034.5o 1:45. D0 15,940.43 3,922.00 Fees 400.00 City of Newport Beach Franchise & Lease Cost 12,321.58 Fuel 8,812.36 Insurance 20,511.98 insurance - Group 5,717.09 Employee Injury Claims 161.00 Legal &Accounting 3,610.00 Licenses 28.00 Maintenance - Ferry 12,000.90. Maintenance -.Dock, etc. 5,326.55 Maintenance - Shop 6,596.16 Miscellaneous 1,722.61. Office Expesne 646.01 Rent 18,524.94 Franchise Tax 5,849.00 Taxes - Personal Property 1,065.15 Taxes - Payroll 16,791.88 Telephone 465.26 Utilities 591.30 Total Expenses 348,400.30 Operating Income $ 18,645.16 INCOME Other Income Dividends. Interest Partnership Capital Gain Partnership Ordinary Income Total Other Income $ 10,126.49 4,166.90 9,237.00 387.00 23.917.39 NET INCOME OR (LOSS) Before Taxes $ 42,562.55 EXHIBIT B Adult Child Bicycle Motorcycle Auto - Regular Commute Panel Truck and Truck under 1 ton Truck over 1 ton Vehicles (other) BALBOA ISLAND FERRY PRESENT AND PROPOSED REVENUES FOR THE RATE YEAR Projected Annual Present Quantity Fares 1,990,368 341,949 154,713 38,562 449,065(3) 15,540(3) 0 0 . 0 100 50, 50 100 300 250 300 35¢ 600 Projected Annual Revenue at Present Fares 199,037 17,097 7,736 3,856 134,720 3,885 0 0 0 366,331 Projected Annual Quantity 1,990,368 341,944 154,713 3,856 100 418,145(3) 300 Proposed Fares Projected Annual Revenue at Proposed Fares 150 298,555 50 17,097 50 7,736 3,856 125,443 46,460(3) 200(2) 9,292 0 0 0 30¢ 350 600 0 0 0 461,979 (1) Only increase proposed in this Application. (2) Auto commute fare reduced from 250 to 200. This will permit the fare for an automobile and driver to remain at 350 as it is under present fares. (3) The present use of the automobile commute fare is. only 3.3% of all autos. The present differential between auto with driver and auto commute with driver. is only 50 (400 - 350). Under proposed fares the differential will be 100 (450 - 350). It is anticipated this differential will result in a greater use of the auto commuter fare. It is estimated the use will increase from 3.3% to 10%. (1) EXHIBIT C BALBOA ISLAND FERRY PRESENT AND PROPOSED REVENUES AND EXPENSES 1978 Actual INCOME Rate Year 7/1/79 - 6/30/80 Present Rates Rate Year 7/1/79 - 6/30/80 Proposed Rates Revenue - Ferry 366,331 366,331 461,979 Revenue - Charter 410 500 500 Miscellaneous Income 305 300 300 TOTAL INCOME 367,046 367,131 462,779 EXPENSES Salaries - Officers 18,300 21,000 21,000 Salaries & Wages - Ferry 177,917 198,433 198,433 Labor - Contract 11,034 15,631 15,631 Retirement Plan 15,940 17,779 17,779 Employee Injury Claims 161 175 175 Maintenance - Ferry 12,001 13,800 13,800 Maintenance - Docks, etc. 5,327 6,126 6,126 Maintenance - Shop 6,596 7,585. 7,585 Fuel 8,812 11,076 11,076 Misc.•operating Costs 1,723 1,981 1,981 Depreciation 5,004 5,004 5,004 Advertising 145 300 300 Rent 18,525 26,235 26,235 Telephone 465 535 535 Utilities - Other 591 680 680 Miscellaneous Office. Exp. 646 742 742 Insurance 20,512 21,322 21,322 Insurance - Group 5,717 .6,350 6,350 Newport Beach Franchise and Lease 12,322 12,350 15,822 Fees - Miscellaneous 400 450 450 Licenses (Coast Guard) 28 36 36 Legal and Accounting 3,610 5,000 5,000 Taxes - Pers. Prop. 1,065 1,065 1,065 Taxes - Payroll 16,792 18,732 18,732 Total Operating Expense 343,633 392,387 Operating Profit (Loss) 23,413 (25,256) 395,859 66,920 Taxes - State 2,107 200 6,023 Taxes - Federal 4,261 6,368 200 12,519 18,542 Net Operating Profit (Loss) 17,045 (25,456) 48,378 Operating Ratio 95.3% 1.069% 89.5% EXHIBIT D PROOF OF SERVICE BY MAIL I am a citizen of the United States, over the age of 18 years and a resident of the County of Los Angeles. My business address is 523 West Sixth Street, Suite 1216, Los Angeles, California. On the 27th day of April, 1979, I served the within Application upon the following named person by depositing a copy of the same, enclosed in a sealed envelope, with postage thereon fully prepaid, in the United States mail at Los Angeles, California, addressed as follows: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92660 and there is regular daily communication by mail between said place of mailing and the place so addressed. I declare under penalty of perjury that the foregoing is true and correct. EXECUTED at Los Angeles, California, this 27th day of April, 1979. CARMEN L. JONES EXHIBIT E 1 CERTIFICAB' INSURANCE ISSUED BEHALF OF _.- INSURANCE COMPANY rtrtCO P. ANICH COMPANY - 'NSURANCE BROKERS 901 Dove Street • Suite 240 Newport Beach, California Telephone: (714) 833.1656 Name of insured and address: Balboa Island Ferry Co. 410 S. Bay Front Balboa, California Name and address for whom Certificate of insurance is issued. City of Newport Beach 3300 Newport Newport Beach, California This is to certify that the Company designated above has issued to the Insured named herein the policies listed below and such policies apply with respect to the hazards and for the coverages and limits of habil• ity indicated by specific entry herein. subject to all the terms, condit ons and exclusions in such policies. TYPE OF INSURANCE POLICY NUMBER EFFECTIVE GATE EXPIRATION DATE COVERAGES AND LIMITS OF LIABILITY Bodily Iniury Liability Property Damage Liability Each Occurrence C.f. Occurrence Aggregate General Liability — Promises Operations GAL342757 11 II 1/1/76 II II 1/1/79, II II 500 ,000 s 50 ,000 s 50,000 $ ,000 Escalators $ ,000 S ,000 Independent Contractors $ 500 ,000 S 50 ,000 S 50.000 Products —Completed Operations $ 4_00 r000 50 $ ,000 50 $ ,000 $ ,000Aggreg. Contractual —as described below S ,000 S ,000 $ ,000 Automobile Liability — Owned Automobiles ' Each Person Each Occ. Each Oct. Ago. $ ,000 $ .000 $ ,000 XXXX Hired Automobiles $ ,000 $ ,000 S e000 XXXX Non -Owned Automobiles $ ,000 $ ,000 $ ,000 XXXX Automobile Physical Damage - Comprehensive Fire, Theft Collision or Upset S S Actual Value Less S Deductible Loss Payable to: Workmen's Compensation and Employers Liability Compensation—Stat utory Y 1_ Description and Location of Operations, Automobiles Covered, Contracts Additional Insured, Additional Coverages, s0\\:\ e tl CI"C1,_i.t.t\ iLB.. cT Na"M Date-. The Company agrees to give days written notice to the holder of this Certificate of Insurance in the event of cancellation of any policy or coverage listed above. 2/20/76 Authorized Representative No. GF 202-A 1-73 Recommended C A 1 A •IBA C Form qQ0 Ak eujuly t 9e scala:ry MOWICA. CAlrro•M•A By *s CiT( COUNCIL CITY OF tSWIQ$%7 W1SCI1ORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of BALBOA ISLAND ) FERRY, a California corpora- ) tion, to adjust rates. APPLICATION APPLICATION NO. The application of Balboa Island Ferry respect- fully shows: 1. This application is filed pursuant to Section 454 of the California Public Utilities Code. 2. The exact name of the applicant is Balboa Island Ferry, a California corporation, which has its principal place of business at 410 South Bay Front, Balboa Island, California 92662. A certified copy of its Articles of Incorporation was filed with Application 40683 on Decem- ber 16, 1958. 3. Communications, notices, papers and documents in regard to this application are to be served upon: James H. Lyons, Esq. 523 West Sixth Street, Suite 1216 Los Angeles, California 90014 Telephone: (213) 626-6451. 4. Applicant is a common carrier ferry service and operates for the transportation of persons and motor vehicles across Balboa Bay between Balboa and Balboa Island in the City of Newport Beach pursuant to the authority of cision 57847 dated January 13, 1959, in Application 3. The business has been carried on by the applicant s predecessors since 1930 pursuant to authority granted in Decision 22747 in Application 16668. 5. The rates presently charged by applicant were established by Decision 60253 in Application 52179 dated June 14, 1960. Applicant has had no adjustments in fares in the last sixteen years. 6. Since the establishment of the present fares in 1960, applicant has experienced very substantial increases in labor costs and other costs of operation. The operation of the applicant is at present marginal, and a fare adjust- ment is necessary if the applicant is to continue its opera- tion for the benefit of the public. 7. The balance sheet of the applicant dated Decem- ber 31, 1975, and the profit and loss statement for the year 1975 are attached hereto, made part hereof and marked Exhibit A. The balance sheet as of February 29, 1976, and the income statement for the months of January and February, 1976, are attached hereto and marked Exhibit B. 8. Applicant's present and proposed fares are as follows: One-way fares: Present Proposed Adult - 12 or over (pedestrian, auto driver or passenger) 10¢ 10¢ Child - 5 years and under 12 years 50 , 50 Child under 5 years accompanied Free Free by passenger paying adult fare Bicycle* 50 50 Motor Cycle* 100 100 Passenger automobile* 200 300 Panel trucks and trucks under 1-ton rated capacity* 200 300 Trucks over 1-ton rated capacity and not exceeding 2 1/2 tons rated capacity* 25¢ 35¢ Vehicles not otherwise specified* 50¢ 600 *Fares are for vehicle only. Drivers and passengers are extra as above set forth. By this application applicant proposes only an increase in passenger automobiles and trucks as above speci- fied. The maintenance and improvements to both the boats and the piers are primarily due to the wear and tear caused by vehicular traffic; therefore, applicant feels that the increased rates in vehicular traffic alone are justified. Applicant further proposes a 30-ride book of tickets for $10.50 for vehicles under 1-ton rated capacity. The ticket would be for the passage of the vehicle and its driver, thus reducing the vehicular rate from 300 to 250. 9. An estimate of the projected income for the rate year commencing July 1, 1976, through June 30, 1977, under present and proposed fares, is attached hereto, made part hereof and marked Exhibit C. The results of operations under present and proposed fares for the rate year are attached hereto, made part hereof and marked Exhibit D. 10. There are no other carriers which would in any way be interested in the within application. The only muni- cipality involved is the City of Newport Beach. A certificate of service on the City Clerk of Newport Beach is attached hereto, made part hereof and marked Exhibit E. WHEREFORE, applicant prays that the Commission grant its order ex parte since the need for financial relief is immi- nent, and that the applicant be authorized to increase the rates as herein proposed effective on five days' notice to the Commission and to the public. DATED at Los Angeles, California, this 9th day of April, 1976. BALBOA ISLAND FERRY, a corporation By H. S. BEEK, President JAMES H. LYONS Attorney for Applicant • • VERIFICATION The undersigned states: I am President of applicant corporation; I have read the foregoing applica- tion and know the contents thereof, and the same is true of my own knowledge except as to matters therein stated on information or belief, and as to those matters I believe it to be true. I declare under penalty of perjury that the foregoing is true and correct. EXECUTED at Los Angeles, California, this 9th day of April, 1976. H. S. BEEK 4 BALBOA ISLAND FERRY BALANCE SHEET December 31, 1975 ASSETS Current Assets Cash on Hand Change Fund Cash in Bank - Newport National Bank Cash in Savings Material Supplies Prepaid Insurance Prepaid Franchise Tax Prepaid Federal Corporation Tax Total Current Assets Investments Stocks & Bonds. Investment Balboa inn, a Ltd. Partnership Cruiser - Vamos Total Investments $ 848,53 100.00 1,700.30 29,689.06 826.48 386.00 1,401.52 2,148.00 $ 37,099.89 79,257.49 7,016.00 51,088.56 137,362.05 Accum. Fixed Assets - At Cost Cost Depr. Net Office Furniture 1,191.72 1,005.29 186.43 Shop Equipment 2,374.34 962.00 1,412.34 Trucks 2,326.00 2,204.00 122.00 Boats 73,673.96 37,658.00 36,015.96 Wharves, Docks, Terminals 37,722.09 30,235.00 7,487.09 Net Fixed Assets 45,223.82 TOTAL ASSETS $219,685.76 LIABILITIES AND CAPITAL Current Liabilities SDI Taxes Payable FICA Taxes Payable State W/H Taxes Payable Federal Income Tax Payable City of Newport Beach Payable Total Current Liabilities Capital Capital Stock Issued Retained Earnings Net Profit or (Loss) 1/1/75 to 12/31/75 Total Capital TOTAL LIABILITIES & CAPITAL 192.85 345.63 228.40 643.10 7,335.39 83,215.93 113,232.19 14,492.27 8,745.37 210,940.39 $219.685. 26 EXHIBIT A Page 1 of 2 INCOME Revenue - Ferry Revenue from Charter Miscellaneous Income Total Income BALBOA ISLAND FERRY STATEMENT OF NET INCOME January 1, 1975 to December 31, 1975 $281,245.97 262.50 193.15 $281,701.62 EXPENSES Salaries - Officers 16,200.00 Salaries - Ferry 144,033.55 Contract Labor 10,693.96 Advertising 168.50 Retirement Plan 11,590.89 Depreciation 5,522.00 Fees 120.00 City of Newport Beach Franchise & Lease Cost 9,343.61 Fuel 8,395.43 Insurance 17,354.54 Insurance - Group 2,543.55 Employee Injury Claims 77.25 Legal & Accounting 3,150.00 Licenses 132.00 Maintenance - Ferry 6,703.38 Maintenance - Dock, etc. 4,288.31 Maintenance - Shop 5,000.85 Miscellaneous 1,009.69 Office Expense 533.11 Rent 10,514.58 Franchise Tax 1,379.00 Taxes - Personal Property 1,417.78 Taxes - Payroll 12,597.19 Telephone 428.89 Utilities 454.07 Donations 190.00 Total Expenses Operating Income Other Income Dividends Interest Capital Gains Loss on Partnership Total Other Income NET PROFIT OR (LOSS) ( 6,034.45 1,186.40 1,547.93 2,142.00) 273,836.13 7,865.49 6,626.78 $ 14,492.27 EXHIBIT A Page 2 of 2 BALBOA ISLAND FERRY, INC. Balance Sheet 29 February, 1976 CURRENT ASSETS: Cash on Hand Cash in Checking Cash in Savings Total Cash Material Supplies Prepaid Insurance Prepaid Corp. Tax Total Prepaid INVESTMENTS: Stocks & Bonds Lmt. Partnership II. I. Total Investments FIXED ASSETS: Office Furniture Shop Equipment Truck Boats Wharves, Docks.Etc. Total Foxed Assets Less Depreciation Net Fixed Assets OTHER ASSETS: Cruiser-Vamoe TOTAL ASSETS: ASSETS $ 3567.27 4395.43 23,689.06 826.48 287.50 2,148.00 78,329.73 7,016.00 1,191.72 2,374.34 2,326.00 73,673.96 37,722.09 117,288. 1 73.134.29 LIABILITIES CURRENT LIABILITIES: City of fNewport Beach 1,222.55 Retirement -Accrued 1,454.34 Insurance -Accrued 2,865.64 Total Current Liabil. CAPITAL: Stock Issued 83,215.93 Retained Earnings 127,724.46 Net Profit (Loss) YTD (981.07) Total Capital TOTAL LIABILITIES $31,651.76 3,261.98 85,345.73 44,153.82 51,088.56 5,542.53 209.959.32 $215,501.85 $215,501.85 EXHIBIT B Page 1 of 2 OPERATING REVENUE: Ferry OPERATING EXPENSE: Salaries Contract Labor Advertising Retirement Plan Depreciation Fees & Commissions City of Newport Beach Fuel Insurance Insurance -Group License Maintenance -Ferry Maintenance -Docks Maintenance -Shop Miscellaneous Office Expense Rent Taxes -Franchise Taxes -Payroll Telephone Utilities Total Expense Net Operating Profit OTHER INCOME: Miscellaneous Income Dividends -• Total Other Income BALBOA ISLAND FERRY, INC. Income Statement $10,125.96 1,080.00 -0- 943.29 535.00 -0- 575.67 841.71 1,482.07 279.23 -0- 680.42 624.99 499.53 18.00 37.00 550.00 -0- 592.40 37.83 69.74 VAMOS EXPENSE: Fuel Maintenance Labor - Taxes & License Total Samos Expense NET PROFIT (LOSS) 11.81 439.63 184.07 1,042.38 -00 -00 FEBRUARY $19,188.90 18,962.84 226.06 451.44 77.50 1,226.45 (548.95) $20,523.18 2,217.00 15.00 1,681.34 1,070.00 4.00 1,222.55 1,407.06 2,964.14 491.52 21.00 1,691.86 956.22 962.86 155.75 164.95 1,100.00 1,401.52 2,502.30 78.13 86.29 18.07 580.26 184.07 1,396.09 30.00 4.00 YEAR TO DATE $40,751.43 40 716.67 34.76 598.33 633.09 1 614.16 (981.07) EXHIBIT B Page 2 of 2' Item Autos Motorcycles Bicycles Adults (over 12) Children (5-12) BALBOA ISLAND FERRY PRESENT AND PROPOSED REVENUES 1 2 3 Projected Annual Projected Present Revenue Annual Revenue Present Quantity Per Item Fares 573,308 .20 17,199 .10 164,539 .05 1,749,737 110,684 .05 114,662 1,720 8,227 4 Projected Annual Quantity (Same as Col. 1) 458,647 114,662 5 6 Projected [1] Annual Proposed Revenue Revenue Proposed Per Item Fares .30 .25[2] 17,199 .10 164,539 .05 .10 174,974 1,749,737 .10 5,532 110,684 '.05 137,594 28,666 1,720 8,227 174,974 5,532 [1] Proposed fare adjustment is as follows: 1 Passenger auto 2 Panel trucks and trucks under 1-ton rated capacity 3 Trucks over 1-ton but not exceeding 2 1/2-ton rated capacity 4 Vehicles not otherwise specified 305,115 Present Fare 200 200 250 500 Almost all vehicles carried are in the first two groups. class 3 or 4 are negligible. 356,713 Proposed Fare 300 300 350 600 The number of vehicles in [2] Applicant proposes a 30-ride book of tickets for $10.50 for vehicles in 1 and 2, including driver, thus reducing vehicle rate anticipated approximately 20% of the vehicular rate book. • All other fares will remain the same. from 300 to 250. traffic will use the class It is reduced EXHIBIT C BALBOA 'ISLAND FERRY PRESENT AND PROPOSED REVENUES AND EXPENSES INCOME Revenue - Ferry Revenue from Charter Miscellaneous Income TOTAL INCOME EXPENSES Salaries - Officers Salaries - Ferry Labor - Contract Retirement Plan Employee Injury Claims Maintenance - Ferry Maintenance - Dock, etc. Maintenance.- Shop Fuel Misc. Operating Costs Depreciation Advertising Rent Telephone utilities - Other Miscellaneous Office Insurance Insurance - Group Newport Beach Franchise and Lease Fees - Miscellaneous Licenses (Coast Guard) Legal and Accounting Taxes - Pers. Prop. Taxes - Payroll Total Operating Expense Operating Profit Taxes - State Franchise Federal Income Tax Net Operating Profit Operating Ratio Other Income Dividends Interest Capital Gains Loss on Partnership State Franchise Tax Net Other Income 1975 Actual 281,245 262 193 16,200 144,034 10,694 11,591 78 6,703 4,288 5,001 8,395 1,010 5,522 358 10,515 429 454 Exp. • 533 17,355 2,544 9,344 120 132 3,150 1,412 12,597 281,701 272,459 9,249 832 [1] 832 6,034 1,186 1,548 [2,142] 8,417 97% 6,626 596[2] 596 6,030 Rate Year Present Rates . 305,115[3) 262 193 18,000 158,148 11,742 12,800 250 8,295 5,306 6,189 10,000 1,010 6,000 400 10,515 450 500 550 20,200 2,700 10,200 120 150 5,000 1,412 13,900 200 307 630 305,570 303,837 1,733 507 1,226 99.6% 7,000 630 6,370 Rate Year Proposed Rates 356,713[3] 262 193 357,168 18,000 158,148 11,742 12,800 250 8,295 5,306 6,189 10,000 1,010 6,000 400 10,515 450 500 550 20,200 2,700 12,000[4) 120 150 5,000 1,412 13,900 4,637 9,817. 305,637 51,531 14,454 37,077, 89.6% 7,000 630 630 6,370 EXHIBIT D [ ] See Page 2 for notes. Page 1 of 2 BALBOA ISLAND FERRY PRESENT AND PROPOSED REVENUES AND EXPENSES (Continued) NOTES [1] No federal income tax was due and paayble for 1975 due to investment tax credit. . [2] Revenue other than operating revenue creates essentially no federal tax liability since the sources of such revenue are corporate dividends subject to the 85% tax exclusion. [3] See Exhibit C. [4] The City of Newport Beach Franchise and Lease cost is based upon a percentage of revenue. EXHIBIT D Page 2 of 2 • • PROOF OF SERVICE BY MAIL The undersigned states: I am a citizen of the United States, over the age of 18 years and a resident of the County of Los Angeles. My business address is 523 West Sixth Street, Suite 1216, Los Angeles, California 90014. On the 13th day of April, 1976, I served the within application upon the following named municipality by depositing a copy of the same, enclosed in a sealed envelope, with postage thereon fully prepaid, in the United States mail at Los Angeles, California, addressed as follows: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, California and there is regular daily communication by mail between said place of mailing and the place so addressed. I declare under penalty of perjury that the fore- going is true and correct. EXECUTED at Los Angeles, California, this 13th day of April, 1976. CARMEN L. JONES EXHIBIT E CERTIFICATSINSURANCE ISSUED BY_ BEHALF OF INA INSURANCE COMPANY ActillimER CO P. ANKH C INSURA ' BROK 3848 Campus Dr! • Su 0/1 9 1g73 Newport Beach, I . lifomia 91 a. Telephone j.6 lrt of N�pa FR 'J )\ C aF artCH Name of Insured and address: Island Ferry--�io e ' 0 S.S. Bay Front Balboa, California Name and address far whom Certificate eimam City of Newport Beach 3300 Newport Newport Beach, California imam AIIF N This is to certify that the Company designated above has issu d to the Insured named herein the policies listed below and such policies apply with respect to the hazards and for the coverages and limits of liabil. Ity Indicated by specific entry herein, subject to all the terms, conditions and exclusions In such policies. TYPE OF INSURANCE POLICY NUMBER EFFECTIVE DATE EXPIRATION DATE COVERAGES AND LIMITS OF LIABILITY Bodily lnlu y Liability Property Damage Liability each person each accident each accident aggregate General Liability — Premises —Operations GAL 217 624 1-1-73 1-1-74 4500 ,000 $ 500,0m $ 50000 $ 50,000 Elevators $ ,000 $ ,000 $ ,000 $ XXXX Independent Contractors II LI II $ 500 p00 $ 500.000 $ 500oo $ 5500000 Products — Completed Operations 11 II 11 $ 500 ,000 $ 500.000 $ 550W° $ 50.000 Aggregate: $ ,000 ) OXX XXXX Contractual — as described below $ ,000 $ ,000 $ ,000 $ ,000 Automobile Liability — Owned Automobiles $ ,000 - $ ,000 $ ,000 XXXX Hired Automobiles $ ,DOD $ ,000 $ ,000 XXXX Non -Owned Automobiles $ ,000 $ ,000 $ ,000 XXXX Automobile Physical Damage — Comprehensive Fire,Lightning & Transportation Theft Collision or Upset $ $ $ Actual Value Less $ Deductible Loss Payable to: Workmen's Compensation and Employers Liability Compensation —Statutory Description and Location of Operations. Automobiles Covered. Contracts. Additional Insureds, etc: Umbrella Policy # XBC 90718 lmillion in excess primary limits. The Company agrees to give flays written notice to the holder of this Certificate of Insurance in the event of cancellation of any policy or coverage listed above. INA Date 1-17-73 No. GE 202-2-A 5-64 Recommended C AI A. 15 A C Form By Insuranceampa� Authorized Representative NOONAN PUBLISHING COMPANY —Affiliated with The Merritt Company — SANTA MONICA CALIFORNIA Alir FIREMAN'S FUND AMERICAN INSURANCE COMPANIES TO P L_ ❑ F. N'S FUND INSURANCE COMPANY ❑ T ERICAN INSURANCE COMPANY ❑ NAT NAL SURETY CORPORATION ❑ ASSOCIATED INDEMNITY CORPORATION ❑ AMERICAN AUTOMOBILE INSURANCE COMPANY CITY OF NEWPORT BEACH NEWPORT BEACH, CA. 1 DATE 1/1/71 CERTIFICATE OF INSURANCE THIS IS TO CERTIFY THAT THE COMPANY OR COMPANIES CHECKED ABOVE HAVE IN FORCE AS OF THE DATE HEREOF TH eraNtb JAN111971'> MANAGZR CITY OF NEWPCRL BEACH, CAUi. FALLOWING POLICY OR POLI NAME AND ADDRESS OFJNSIJRED OR EM.PI nv.r».. BALBOA ISLAND FERRY 410 SOUTH BAY FRONT BALBOA ISLAND, CALIFORNIA LOCATION OF PROPERTY, DESCRIPTION OF 0FIgRIyTTQNS. BUSINESS CO KIND OF INSURANCE POLICY NUMBER EXPIRATION LIMITS OF LIABILITY WORKMEN'S COMPENSATION STATUTORY EMPLOYERS' LIABILITY THOUSAND DOLLARS. EACH PERSON THOUSAND COLLARS. EACH ACCIDENT BODILY INJURY LIABILITY OTHER THAN AUTOMOOILE' LC-176 47 86 1/1/7E4 _,000, 1,000, 500 THOUSAND DOLLARS. EACH PERSON THOUSAND DOLLARS. EACH OCCURRENCE THCUSAND DOLLARS. AGGREGATE PRODUCTS PROPERTY DAMAGE LIABILITY OTHER THAN AUTOMOBILE' II II 100 THOUSAND DOLLARS. EACH OCCURRENCE 100 THOUSAND DOLLARS. AGGREGATE OPERATIONS NIL THOUSAND DOLLARS, AGGREGATE PROTECTIVE NIL THOUSAND DOLLARS. AGGREGATE PRODUCTS NIL THOUSAND DOLLARS. AGGREGATE CONTRACTUAL AUTOMOBILE: BODILY INJURY LIABILITY' THOUSAND DOLLARS. EACH PERSON THOUSAND DOLLARS, EACH OCCURRENCE PROPERTY DAMAGE LIABILITY' THOUSAND DOLLARS. EACH OCCURRENCE MEDICAL PAYMENTS $ EACH PERSON COMPREHENSIVE —LOSS OF OR DAMAGE TO THE AUTOMOBILE. EXCEPT BY COLLISION OR UPSET BUT INCLUDING FIRE. THEFT AND WINDSTORM ACTUAL CASH VALUE UNLESS OTHERWISE STATED HEREIN $ COLLISION OR UPSET ACTUAL CASH VALUE LEss $ DEDUCTIBLE DESCRIPTION AND LOCATION OF OPERATIONS APPrOVED /D+>'.z /-/a-77 AND AUTOMOBILES AS TO SUFFICIENCt AS:.. (ANT CITY COVERED . MANAGER "IF COMPREHENSIVE. 50 STATE. IF NOT COMPREHENSIVE. FOR "OTHER THAN AUTO", LIST FORM SUCH AS OLT. ELEV.. ETC. THIS CERTIFICATE OF INSURANCE NEITHER AFFIRMATIVELY NOR NEGATIVELY AMENDS, EXTENDS OR ALTERS THE COVERAGE AFFORDED BY THE POLICY OR POLICIES SHOWN ABOVE. IN EVENT OF ANY MATERIAL CHANGE IN OR CANCELLATION OF THE POLICY OR ' POLICIES, THE COMPANY WILL MAKE EVERY EFFORT TO NOTIFY THE ADDRESSEE BUT UNDERTAKES NO RESPONSIBILITY BY REASON OF FAILURE TO DO 50. 385054-2-68 6y ITY I- JACK BARNETT EXECUTIVE MANAGER CLAC I • lit NEWPORT HARBOR CHAMBER OF COMMERCE 2166 E. COAST HIGHWAY • NEWPORT BEACH, CALIFORNIA 92660 • 17141 675-6300 June 2, 1970 Honorable City Council City of Newport Beach 3300 Newport Blvd. Newport Beach, Calif. Gentlemen: At a regular meeting of the Newport Beach Historical Society held Monday, June 1, 1970, it was motioned that this year's Historical Plaque would be dedicated to the Balboa — Balboa Island Ferry. This presentation will be made at our Annual Dinner Meeting, sched— uled for mid September, 1970. We are again asking the City of Newport Beach to finance the cost of this bronze plaque in the amount, of approximately $130.00. Our two previous presentations were made to the Balboa Pavilion and the Dorey Fishing Fleet. Your cooperation in this matter would be appreciated. Kind st Personal Regards, Jack Barnett Board Member Newport Beach Historical Society JB:d G THE CITY OF NEWPORT BEACH IS COMPOSED OF THE FOI LOWING AREAS BALBOA • BALBOA ISLAND • CORONA DEL MAR • LIDO ISLE • MARINER'S MILE • NEWPORT CENTER • UNIVERSITY PLAZA AIRPARK • WEST NEWPORT - WFSTCLIFF • t CITY OF NEWPORT BEACH April 22, 1969 TO: ALL DEPARTMENT HEADS FROM: Assistant City Manager SUBJECT: CITY EMPLOYEE USE OF AUTO FERRY We have recently negotiated a new arrangement for the use of the Balboa Island Ferry by City employees that should be brought to the atten- tion of all personnel in your department. Effective May 1, 1969, employees will no longer use the green ferry slips for City business travel aboard the ferry. Instead, the official City identification card held by each employee. will be used. This will apply to both the use of City -owned vehicles and personal vehicles while used on work -days during regular hours for City busi- ness purposes. The principal advantage in discontinuing the use of the green -ferry slips is the elimination of a very costly, cumbersome and time-consuming pro- cess in accounting for these slips which will result in a simplification of the accounting process and save both the City and the Balboa Island Ferry operation considerable time and expense. While this new procedure will be a distinct advantage to the City and its employees, it will only continue to exist as long as there is no abuse of this new privilege by City employees using City identification cards for ferry travel in conjunction with personal business. Please caution your employees accordingly to confine their use of the identification card for ferry access for City business purposes only. JAMES P. DE CHAINE JPD:ep TO: FTNANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. 856 Description of Contract DATE Apr41 71. 19R0 Balboa island PSarry (Flat rate for City Employees) Authorized by liggpsiggissagthoCity Manager lesingkeli on April 14, 1969 Effective date of Contract May 1, 1969 Contract with Balboa Teland Ferry Address 410 S. Bay Front Balboa Island, Calif. Amount of Contract $600 per yr ih Att: Cpy of Ltr Agreement t e_ gsc CITY OF NEWPORT BEACH CALIFORNIA van City Han 3300 Newport Blvd. (714) 673-2110 April 2, 1969 Mr. Seymour Beek, President Balboa Island Ferry 410 South Bay Front Balboa Island, California Dear Mr. Beek: Pursuant to our recent conversations, it would be to the distinct advantage of both the City of Newport Beach and the Balboa Island Ferry to eliminate the costly, cumbersome and time-consuming process of using said accounting for the green automobile ferry slips now being used by City employees in conjunction with ferry travel between Balboa Island and the Peninsula. As discussed.; it would greatly simplify the accounting process and save both organizations unnecessary time and expense if the City could reimburse the Balboa Island Ferry for services rendered on the basis of a flat rate fee schedule, the rate to be predicated urn known usage of the automobile ferry by City employees. As a result of the doted experience of ferry travel by City employees tilt, last five years, the current flat rate which would be paid by tCity for this service amounts to $600.00 tier year, which could be pay- able monthly at $50.00 per month. Following this new procedure, once the individual slip processing method is discontinued, City employees would be required to use standard personalized City identification cards which clearly identify them as being employees of the City. It is understood that use of employee identification cards for ferry travel will be restrict- ed to City -erased vehicles with the exception of personal vehicles used on work days during regular business hours for City business. The ferry operators are welcome to conduct periodic spot checks to deter- mine if ferry usage has changed significantly as a result of this new pro- cedure. The fee schedule *111 be subject to change as may be. mute lily agreed to by both the City Manager and the President bf Balboa Island Perry. A request for Change in fee schedule shall be processed in writing Mr. Seymour Beek Page 2 April 2, 1969 at least two weeks in advance of the effective date of any new schedule deemed appropriate by the parties referred to above. This new procedure will became effective upon the first day of the month following the execution of this Letter of Agreement. My signature below shill constitute acceptance of the above Agreement on behalf of the City of Newport Beach. APPROVED. AND ACCEPTED: BALBOA ISLAND FERRY BY: President Dated: Aprril14. 1969 Sincerely, CITY OP NEWPORT BEACH By: y L. nmol` City Manager APPROVED AS TO Itally City Attorney with the understanding, as per our conviersetion, that this entire agreement say be voided by either party upon two weeks written notice. }WJPD: ep CERTIFICATE • OF INSURANCE TO: .CITY,OF NEWPORT BEACH Newport Beach, California • • • This is to certify that the Company or Companies checked above FIREMA , ❑ FIREMAN'S FUND INSURANCE COMPANY FUN THE AMERICAN INSURANCE COMPANY NATIONAL SURETY CORPORATION e AMERICAN o ASSOCIATED INDEMNITY CORPORATION INSURANCE COMPANIES❑ AMERICAN AUTOMOBILE INSURANCE COMPANY DATE December 9, 1965 . have in force os of the date hereof the following policy or policies: NAME AND ADDRESS OF INSURED OR EMPLOYER JOSEPH A. BEEK AND CARROLL Be BEEK AHD/OR BALBOA ISLAND FERRY 410 South Bay Front Balboa Island, California LOCATION OF PROPERTY, DESCRIPTION OF OPERATIONS, BUSINESS CONDUCTED KIND OF INSURANCE POLICY NUMBER EXPIRATION UMITS OF LIABIUTY WORKMEN'S COMPENSATION Statutory EMPLOYERS' LIABILITY thousand dollars, each person thousand dollars, each accident BODILY INJURY LIABILITY Other Than Automobile' Comprehensive PC1-333642 t 1447 500 thousand dollars, each person 1 000 thousand dollars, each occident 1 s000 thousand dollars, aggregate products PROPERTY DAMAGE Liability other than Automobile' Comprehensive II II 100 thousand dollars, each occident 100 thousand dollars, aggregate operations 100 thousand dollars, aggregate protective 100 thovsond dollars, aggregate products 100 thousand dollars, aggregate contractual AUTOMOBILE: Bodily Injury Liability' It II 500 thousand dollars, each person 1,000 thousand dollars, each occident Properly Damage Liability' It tl 5 thousand dollars, each accident Medical Payments it it $ 2,000.00 each person Comprehensive — Loss of or Damage to the Automobile, Except by Collision or Upset but including Fire, Theft and Windstorm Actual Cosh Value Unless Otherwise Stated Mersin S Collision or Upset Actual Cash Yalu* Tess f: deductible DESCRIPTION AND LOCATION OF OPERATIONS AND AUTOMOBILES COVERED •If Comprehensive, so state. If not Comprehensive, for "other than Auto", list form such as OLT, ELEV., etc. Anderson & Anich Ins. Agcy. In event of any material change in or cancellation of the policy or policies, the Company will make every effort to notify the addressee but undertakes no responsibility by reason of failure to do so. 385020 3 65 eml Autherlsed Reser.s.ntot;.e Additional Premium ENDORSEMENT ADDITIONAL INSURED (Designated Premises Only) aFIREMAN'S FUND AMERICAN INSURANCE COMPANIES Return Premium It is agreed that such insurance as is afforded by the policy for Bodily Injury Liability and for Property Damage Liability applies subject to the following provisions: 1. The unqualified word "insured" wherever used in the policy also includes the person or organization named below, but only with respect to the ownership, maintenance or use of the premises designated below and operations necessary or incidental thereto. 2. The insurance with respect to said person or organization does not apply to bodily injury to or sickness, disease or death of any employee of said person or organization while engaged in the employment thereof. NAME OF PERSON OR ORGANIZATION sr4 trail, WKenla LOCATION OF PREMISES W Owe a i.IBM. WMa IR:w4, aitaa . sgk SIGNATURE OF AUTHORIZED AGENT -- THE FOLLOWING SPACES ARE TO BE COMPLETED ONLY IF THIS ENDORSEMENT IS NOT ATTACHED TO THE POLICY WHEN ISSUED. M L502Tcv NO. EFFECTIVE DATE 1 WEDDED RI•it.• 4 CERTIFICATE OF INSURANCE •REISSUE TO: City of Newport Beach Newport Beach, California AFU1 VrD (j;rrr•wm`&�•ywnus NO.:. • ..-t OP..... This is to certify that the Company or Companies checked above hove in fc. NAME AND ADDRESS OF INSURED OR EMPLOYER JOSEPH A. BEEK AND CARROLL B. BEEK AND/OR BALBOA ISLAND FERRY 410 South Bay Front Balboa Island, California LOCATIO DATE gD HOME FIRE & MARINE INS. COMPANY f FIREMAN'S FUND INSURANCE COMPANY 0 NATIONAL SURETY CORPORATION 1/13/65 NIF"' INSURANCE BROKERS ANDERSON and ANICR 337 BAYSIDE DRIVE NEWPORT BEACH • CALIFORNIA ORiole 5.0350 1E_ KIND OF INSURANCE POLICY NUMBER EXPIRATION LIMITS OF LIABILITY BURGLARY $ $ $ GLASS Replacement WORKMEN'S COMPENSATION Statutory EMPLOYERS' LIABILITY thousand dollars, each person thousand dollars, each occident BODILY INJURY LIABILITY Other Than Automobile' Comprehensive Liabi li t!.' TT )00 thousand dollars, each person 1 000 PC 1-31763' , thousand dollars, each occident 1,000 thousand dollars, aggregate products PROPERTY DAMAGE Liobilityother than Automobile' Comprehensive Liabi li t I t j100 100 thousand dollars, each accident thousand dollars, aggregate operations 100 thousond dollars, aggregate protective 100 thousond dollars, aggregate products 1,00 thousond dollars, aggregate contractual AUTOMOBILE: Buddy Inlury bobility • _ _ Property Damage Liability • 't I, .1500 thousond dollars, each person 1,000 thousand dollars, each accident " rt 5 thousond dollars, each accident $ 2,000 each person o ' " '' Medical Payments Actual Cash Value Unless Otherwise Stored Herein $ Comprehensive —Loss of or Damage to the Automobile, Except by Collision or Upset but including Fire, Theft and Windstorm Actuol Cosh Value less $ deductible Collision or Upset Ac Cosh Value Unless Otherwise Stated Herein ''f�rCJlJI Fire, Lightning and Transportation $ Theft (Brood Form)-- _ Year Trade Name C. T'' f Body Type _ Serial or Motor Number Schedule Additional Automobiles on Reverse Side. LILY Al I LYANc I ..--- By �.� 4.*;_ mot. Special Conditions or Coverages It is agreed that this policy shall not be canCe i ieu nor the coverage thereof reduced until thirty (30) days notice of such cancellation or reduction in coverage shall have been sent in writing to: CITY OF NEWPORT BEACH, NEWPORT BEACH, CALIF IA •1f Comprehensive, so state. I: not Comprehensive, for ' other thon Auto", list form such us OLT, ELEV., etc. In event of any material change in or cancellation of the policy or policies, the Company will make every effort to notify the addressee but undertokes no responsibility by reason of failure to do so. MS 120A 2-56 MDERSON, & CH tz,612,6 Authorized Representotive 0- Additional Premium ENDORSEMENT ADDITIONAL INSURED (Designated Premises Only) mans ' :Fund ��;d INSURANCE #:H>COMPANIES Return Premium It is agreed that such insurance as is afforded by the policy for Bodily Injury Liability and for Property Damage Liability applies subject to the following provisions: 1. The unqualified word "insured" wherever used in the policy, also includes the person or organization named below, but only with respect to the ownership, maintenance or use of the premises designated below and operations necessary or incidental thereto. 2. The insurance with respect to said person or organization does not apply to bodily injury to or sickness, disease or death of any employee of said person or organization while engaged in the employment thereof. NANE OP PERSON ORORGANIZATION cagey of Parpor4 soak s..pee an*. dltl..ssa LOCATION 0P PREMISES 41* sow Pay Pe.a >l.A.. Zak ad, Calit aala V.ERSO^; & ANI , . SIGNATURE OF AUTHORIZED AGENT THE FOLLOWING SPACES ARE TO BE COMPLETED ONLY IF THIS ENDORSEMENT IS NOT ATTACHED TO THE POLICY WHEN ISSUED. PC1-317633 1/1/65 Balboa Island Ferry M L502� id.04 • MEMO TO: •nderson and Anich INSURANCE BROKERS 337 BAYSIDE DR., NEWPORT BEACH. CALIF TELEPHONE ORIOLE 5-0350 Mr. Don Means City of Newport Beach, California SUBJECT: Joseph A. Beek etal DBA Balboa Island Ferry Policy No. PC 1 283246 Fireman's Fund Insurance Company 10/8/63 Dear Mr. Means: DATE We enclose Certificate of Insurance for the captioned policy, showing 30 day notice as requested by City Attorney's Office. We are also returning Endorsements 13 and 14 for your records. ANDERSON AND ANICH CERTIFICAT OF INSURANCE TO: 41/❑ HOMEFIRE &MARINEINS. COMPANY. L FIREMAN'S FUND INSURANCFCOMPANY ❑ NATIONAL SURETY CORPORATION City of Newport Beach DATE August 24, 1963 Newport Beach StEtiaporUaB lch;aCalifornia • This is to certify that the Company or Companies checked above hove in force as of the date hereof the following policy or policies: NAME AND ADDRESS OF INSURED OR EMPLOYER JOSEPH A. BEEK AND CARROLL B. BEEK and/or BALBOA ISLAND FERRY 410 South Bay Front $plhgg Tglanrl C lifnrnia LOCATION OF PROPERTY, DESCRIPTION OF OPERATIONS, BUSINESS CONDUCTED KIND OF INSURANCE POLICY NUMBER EXPIRATION LIMITS OF LIABILITY BURGLARY $ $ $ GLASS Replacement WORKMEN'S COMPENSATION Statutory EMPLOYERS' LIABILITY thousand dollars, each person thousond dollars, each occident BODILY INJURY LIABILITY Other Than Automobile* PC1 283246 1 / 1 / 64 thousand dollars, each person each accident aggregate products 500 1, 000 thousand dollars, 11000 thousond dollars, PROPERTY DAMAGE LiabilityotherthanAutamoblle' -! p /�.i •APPROVED 4 bated: /0� — 7 W r FORM TO FORM / / V l i ' t.MZA 1 100 thousand dollars, each accident 100 thousand dollars, aggregate operations 100 thousand dollars, aggregate protective 100 thousand dollars, aggregate products l f)p thousand dollars, aggregate contracture! AUTOMOBILE: Bodily Injury Liability • CIL SW Chy An '7�� _,!�!,. By ............ ...-----• ,_ y • ', OUR 500thousand dollars, each person 1 thousand dollars, each accident Property Damage Liability * I V Shwa thy Avow QQn 5� 'thousand dollars, eoch occident Medical Payments $ 2 000 00 each person Comprehensive —Loss of or Damage to the Automobile, Except by Collision or Upset but including Fire, Theft and Windstorm Actual Cash Value Unless Otherwise Stated Herein $ Collision or Upset $ Actual Cash Value less deductible Fire, Lightning and Transportation Actual Cash Value Unless Otherwise Stated Herein $ Theft (Broad Form) $ Year Trade Name Body Type Serial or Motor Number Schedule Additional Automobiles on Reverse Side. Special Condi ions or Coverages It is underatad and agreed that this insurance will not be cancelled, permitted to lapse, or reduced in the amount of coverage without 30 days' written notice first having been given to lessor as required by paragraph 9 of the lease. •If Comprehensive, so state. If not Comprehensive, for "other than Auto", list form such as OLT, ELEV., etc. In event of any material change in or cancellation of the policy or policies, the Company will make every effort to notify the addressee but undertakes no responsibility by reason of failure to do so. MS 12OA 2.56 Authorized Representative • • INSURANCE BROKERS ANDERSON and ANICH 337 BAYSIDE DRIVE NEWPORT BEACH • CALIFORNIA ORiole S•0330 Additional Premium ENDORSEMENT AMENDMENT OF LIMITS OF LIABILITY ibreman's INSURANCE S sFund COWP,NIES Return Premium In consideration of an additional premium of $ on audit it is agreed that Item 3 of the Policy Declarations is amended to read as COVERAGES A Bodily Injury Liability - Automobile B Bodily Injury Liability - Except Automobile C Property Damage - Automobile D Property Damage Liabiity- Except Automobile All other terms and conditions remain unchanged. LIMITS OF 500 ,000 1,000,000 500 ,000 1,000,000 1,000,000 LIABILITY each person each accident follows: each person each occurrence aggregate products 5- ,000 each accident 100 ,000 each accident 100 ,000 aggregate operations 100 ,000 aggregate protective 100 ,000 aggregate products 100 ,000 aggregate contractual APPROVED AS TO FORM Dated: lo4�Gj WALTER W. CHARAMZA City Attorney By 1 71-s� TULL . SEYMar Assistant City Attorney SIGNATURE OF AUTHORIZED AGENT THE FOLLOWING SPACES MUST BE COMPLETED ONLY IF THIS ENDORSEMENT IS NOT ATTACHED TO THE POLICY WHEN ISSUED. PC1 283246 8/12/63 JOSEPH A. BEEK eta T.#13 anacnva DATEIN.uR¢o M L5033 $ on audit Additional Premium ENDORSEMENT ADDITIONAL INSURED (Designated Premises Only) man's INSURANCE S . Fund. !COMPANIES rumeomuumcacomrwr semi rinc• mown,. comv.un. Return Premium It is agreed that such insurance as is afforded by the policy for Bodily Injury Liability and for Property Damage Liability applies subject to the following provisions: 1. The unqualified word "insured" wherever used in the policy, also includes the person or organization named below, but only with respect to the ownership, maintenance or use of the premises designated below and operations necessary or incidental thereto. 2. The insurance with respect to said person or organization does not apply to bodily injury to or sickness, disease or death of any employee of said person or organization while engaged in the employment thereof. NAME OF PERSON OR ORGANIZATION LOCATION OF PREMISES City of Newport Beach Newport Beach rate 10% of code # 372s annual Bodily Injury 431.70 annual Property Damage 42.00 .389 additional premium 184.72 Balboa, California APPROVED AS TO FORA Dated: /o/iles WALTER W. CHARAMZA City Attorney By--...S TULL H. SEY UR Assistant City Attorney SIGNATURE Of AUTHORIZED AGENT TE FOLLOWNG SPAES ARE TO BE COMETD ONLY IF THS ENDOSEMENT S NOT ATACHED TO THE POLICY WHEN ISSUED. PC�2D2kCPA'MULL. -B {uet8]. wia M L502� • • _z, INSURANCE BROKERS ANDERSON and ANICH 337 BAYSIDE DRIVE NEWPORT BEACH • CALIFORNIA ORioh 5.03S0 CITY OF NEWPORT BEACH CITY ATTORNEY DEPARTMENT September 6, 1963 To: Purchasing Agent From: City Attorney Subject: Certificate of insurance in connection with Balboa Island Ferry lease The contract file on this matter is being returned herewith. The attached certificates do not provide that the insurance will not be cancelled, permitted to lapse, or reduced in the amount of coverage without 30 days' written notice first having been given to lessor as required by paragraph 9 of the lease. Also please note' that endorsement #13 does not have the signature of the authorized agent affixed. THS:mec Encs. Walter W. Charamza City Attorney Assist nt City torney CITY OF NEWPORT BEACH CITY ATTORNEY DEPARTMENT July 31, 1963 To: Purchasing Agent From: City Attorney Subject: Certificate of insurance in connection with Balboa Island Ferry lease The insurance certificate submitted to us fails to comply with Paragraph 9 of the lease between the City and Balboa Island Ferry company in the following respects: 1. The City is not named as an additional insured. 2. The property damage liability coverage does not seem to meet the $100,000 minimum requirement. 3. The certificate does not contain a clause stating that "the insurance coverage provided shall not be cancelled, permit- ted to lapse, or reduced in the amount of coverage without thirty (30) days' written notice first having been given to the City of Newport Beach". 4. It is uncertain from the certificate whether the policy com- plies with the requirement in the first sentence of said paragraph. It is suggested that the insurance broker be requested to look at the requirements contained in the lease before submitting a new certificate. It would also be desirable for the City to be fur- nished with a copy of thepolicy to which it applies. We are withholding approval of the certificate until these defects have been remedied. The contract file on this matter is being returned herewith. Walter W. Charamza City Attorney By THS:mec Enc. inn Tu lx/m. Sfeym r Assistant Cit Attorney • Date y'udy E;. 19a3 TO: Finance Director FROM: City Clerk SUBJECT: Contract Contract No. C 334 Authorized by Resolution No. 3309 adopted on July S. 1963 Date Mayor and City Clerk executed Contract Effective. date of Contract July d, 1963 July le. 1943 Contract with Balboa. Island Fnry Address Brief description of Contract Lease for operation of Balboa kind nary Amount of Contract July 22. 1963 Mark.Soden ' R 3- g o g o Attorney, at Law 3355 Via Lido Newport Beach, California Dear Mr. Soden: Enclosed please find an executed copy of the lease between the City of Newport Beach and the Balboa Island Ferry. A copy of Resolution No. 5809, author- ising the execution of said lease, is also enclosed. I am also attaching three copies of the lease and three copies of Ordinance No. 1045. .One copy of Ordinance No. 1045 is a certified copy. Very truly yours, Margery Schrouder City Clerk City of Newport Beach MS:mv Encs. Thermofax copy: City Attorney CITY OF NEWPORT BEACH CITY ATTORNEY DEPARTMENT July 18, 1963 To: City Clerk From: City Attorney Subject: Balboa Island Ferry lease Transmitted are two executed copies of the lease between the City and Balboa Island Ferry. It is suggested that these be executed by the City and that one copy be transmitted to Mark Soden. It is also requested that three additional copies of the lease be transmitted to Mr. Soden and three copies of Ordinance No. 1045 be transmitted. At least one copy of the ordinance should be a certified copy. WWC:mec Encs. alter W. Charamza City Attorney 1. July 9, 1963 Mr. Hark Soden Attorney at Law 3333 Via Lido Newport Beach, California Bear Marks Enclosed axe two copies of the lease between the City of Newport Beach and Balboa Island Ferry,. a California corporation, as approved by the City► Council and.Hr. Beek at the City Council jesting of July 8, 1963. It is requested that both copies be executed and the corporate.seal affixed by the lessee and returned to the City Clerk's office for execution by the City. An executed copy can then bereturned to the lessee for its files. •It is also suggested that the lessee, as grantee of the. franchise under Ordinance No. • 1045,fits written acceptance of the franchise with .the City Clerk on or before July 18. Very truly yours, WWCtuec Enos. Walter W. Charaasa City Attorney cc - P. Hobert Coop, City Menages Margery Schrouder, City Clerk ✓ •--- • 77;,j;.-!:.::....--.7,-;:;•.'"Pi ' - • ..':/•::. ..: '.:-.-0#:: .,T-.: ,....-.4,1.,.::.,m.5'n-''''''7117C""? ., • - .. . . . . . .. .. _ . .111: • v.. TIC liEA- c55:,=.;,.7 loTop.14 ••;.i.„•:?40-42 eli n AL c: 4;4. !:•)•J • i:41 4 : ,1 7.-4..irs. • • • -• .!4 & ' ,..40143 :64.r f' . • . . .7, 4; .4 I; •: :•4, • c.4 Ceib tbraiis -sird,Ae-AJ' • • ,—... ' Lti: JS» 8i. 'it' • . ..• 4..jaArcA•1"...farli: . '• (7 kin x • • . t • 3.; '4".. • • 't)9m: z..144 • • • • • . • . cloro sost4d4A :4 ge. "33,.• 3. R • CITY OF NEWPORT BEACH CITY ATTORNEY DEPARTMENT July 11, 1963 To: City Clerk From: City Attorney Subject: Finding of the Director of Public Works of the State of California Transmitted herewith is the original of a finding by the Director of Public Works of the State of California in which he finds and determines that there is no toll bridge con- templated or planned for construction in a location where the Balboa Island Ferry would compete with the bridge. It is suggested that this finding be incorporated into your file on the ferry franchise and permanently retained. WWC:mec Enc. Li I Wafter Charamza City Attorney COUNCIL: egieffese—si D13 ITION; �/ _ Fur G y dDD , ;a?, , VV- e FINDINGS PURSUANT TO CHAPTER 658 STATUTES OF 1963 WHEREAS, the City Council of the City of Newport Beach is considering granting a franchise for operation of a toll ferry from Balboa Peninsula to Balboa Island in the City of Newport Beach; and WHEREAS, Chapter 658, Statutes of 1963, added a new Article 4 to Chapter 3, Division 17, of the Streets and Highways Code, pursuant to which article such a fran- chise may be granted by a city provided that the Director of Public Works finds that no toll bridge is planned or contemplated in a location with which such proposed ferry would compete; and WHEREAS, the City of Newport Beach has requested that the Director of Public Works make a finding in com- 'pliance with the provisions of said Article 4; and WHEREAS, the State Highway Engineer has reviewed the request of the City of Newport Beach and has reported to the Director of Public Works that the Division of Highways does not plan or contemplate the construction of any highway facility between Balboa Peninsula and Balboa Island in the City of Newport Beach that would in any way compete with the proposed ferry operation; a • • NOW, THEREFORE, the Director of Public Works hereby finds and determines that the ferry which the City of Newport Beach proposes to franchise would not be competitive with any toll bridge contemplated or planned for construction by the Department of Public Works. DATED this ereday of +✓d A Y , 1963. State of California Department of Public Works JOHN Direct() put CA of Public ement) FINDINGS PURSUANT TO CHAPTER 658 . STATUTES OF 1963 WHEREAS, the City Council of the City of Newport Beach is considering granting a franchise for operation of a toll ferry from Balboa Peninsula to Balboa Island in the City of Newport Beach; and WHEREAS, Chapter 658, Statutes of 1963, added a new Article 4 to Chapter 3, Division 17, of the Streets and Highways Code, pursuant to which article such a fran- chise may be granted by a city provided that the Director of Public Works finds that no toll bridge is planned or contemplated in a location with which such proposed ferry would compete; and WHEREAS, the City of Newport Beach has requested that the Director of Public Works make a finding in com- -pliance with the provisions of said Article 4; and WHEREAS, the State Highway Engineer has reviewed the request of the City of Newport Beach and has reported to the Director of Public Works that the Division of Highways does not plan or contemplate the construction of any highway facility between Balboa Peninsula and Balboa Island in the City of Newport Beach that would in any way compete with the proposed ferry operation; • NOW, THEREFORE, the Director of Public Works hereby finds and determines that the ferry which the City of Newport Beach proposes to franchise would not be competitive with any toll bridge contemplated or planned for construction by the Department of Public Works. DATED this 7 day of \/ d H y , 1963. State of California Department of Public Works • 1 FINDINGS PURSUANT TO CHAPTER 658 . STATUTES OF 1963 WHEREAS, the City Council of the City of Newport Beach is considering granting a franchise for operation of a toll ferry from Balboa Peninsula to Balboa Island in the City of Newport Beach; and WHEREAS, Chapter 658, Statutes of 1963, added a new Article 4 to Chapter 3, Division 17, of the Streets and Highways Code, pursuant to which article such a fran- chise may be granted by a city provided that the Director of Public Works finds that no toll bridge is planned or contemplated in a location -with which such proposed ferry would compete; and WHEREAS, the City of Newport Beach has requested that the Director of Public Works make a finding in com- •pliance with the provisions of said Article 4; and WHEREAS, the State Highway Engineer has reviewed the request of the City of Newport Beach and has reported to the Director of Public Works that the Division of Highways does not plan or contemplate the construction of any highway facility between Balboa Peninsula and Balboa Island in the City of Newport Beach that would in any way compete with the proposed ferry operation; • NOW, THEREFORE, the Director of Public Works hereby finds and determines that the ferry which the City of Newport Beach proposes to franchise would not be competitive with any toll bridge contemplated or planned for construction by the Department of Public Works. DATED this 7 day of \/ d <, y , 1963. State of California Department of Public Works JOHN '•• CA Directo of Public 7YW: Policy No. GAL 21 76 24 Name Insured BALBOA ISLAND FERRY CO. City of Newport Beach CERTIFICATE OF INSURANCE FOR LEASE OF CITY PROPERTY This is to certify that the INSURANCE COMPANY OF NORTH AMERICA (Name of Company or Organization) of 400 CENTRAL TOWER BLDG., ORANGE, CALIFORNIA 92668 (Address of Company or Organization) has issued to THE BALBOA ISLAND FERRY CO. , INC. (Name of Insured) 410 SOUTH BAY FRONT, BALBOA ISLAND, CALIFORNIA 92660 (Address of Insured) The policy of Liability Insurance described herein, which by accordance with the terms of the Endorsement. Coverages and BODILY INJURY $ 100,000 each person $300,000 each occurrence the attachment of the City Property Endorsement has been changed in limits of liability under the policy are not less than: PROPERTY DAMAGE $ 50,000 each person $50,000 each occurrence CITY PROPERTY ENDORSEMENT This endorsement is attached to the policy described herein to assure compliance by the named insured with the terms and provisions of the lease, rental or other agreement entered into between the insured as Lessee and the City of Newport Beach as Lessor. The Company or Organization amends the policy described herein as follows: 1. If the policy is cancelled or changed so as to affect the coverages, at least fifteen (15) days prior written notice of such cancellation or change will be sent to the Lessor, City of Newport Beach, c/o City Manager, 3300 Newport Boulevard, Newport Beach, California 92660. 2. The Lessor City of Newport Beach, its officers, and employees are hereby declared to be additional insureds in the policy described insofar as they may be held liable for injuries, deaths, or damage to property occuring in or about the leased premises including negligence of the city and the company waives any right of contribution which it may have against any other insurance carrier by the additional insureds. INSURANCEREOUIREMENT Lessee shall, at his own expense, take out and keep in force during the within tenancy, public liability insurance, in a company or cbmpanies to be approved by the Lessor, to protect the City of Newport Beach, its officers and employees against any liability, including negligence of the City, to any person incident to the use of, or resulting from injury to, or death of, any person occuring in, or about the demised premises, in the amount of not less than $100,000.00 to insure against the claim of one person; in the amount of not less than $300,000.00 against the claims of two or more persons resulting from any one accident; and $50,000.00 for damage to property. Said policies shall obligate the insurance carriers to notify the Newport Beach City Manager in writing, not less than fifteen (15) days prior to the cancellation thereof, or any other changes affecting the coverage of the policies. Lessee shall furnish as proof of public liability insurance, a fully executed copy of City form, "Certificate of Insurance for Lease of City Property" and "City Property Endorsement." Lessee agrees that, if Lessee does not keep such insurance in full force and effect, Lessor may take out insurance and pay the premiums thereon, and the repayment thereof shall be deemed to be additional rental. This endorsement countersigned by an authorized representative of the Company or Organization becomes applicable endorsement number 14 Effective Date of Policy Expiration Expiration Date of Policy 1-1-76 Dated: 2-5-73 1973 at NEWPORT BEACH, CALIFORNIA (City) (State) Name of Agent or Broker MARCO P. ANICH COMPANY Address of Agent or Broker• 1303 AVOCADOf�[ ITE 17 Countersigned By WPORT BEACH, CALIFORNIA (Authorized Representative) IMPORTANT — THIS FORM 15 THE ONLY CERTIFICATE OF INSURANCE ACCEPTABLE TO THE CITY OF NEWPORT BEACH OFFICE OF THE MANAGER August 1972 7/ 6633c(12) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 RESOLUTION NO. ___ i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF A LEASE WITH BALBOA ISLAND FERRY WHEREAS, the City leased certain property to J. A. Beek for ferry landings on Balboa Island and on Balboa Peninsula by lease dated May 16, 1938, which lease expired on May 31, 1963; and WHEREAS, said lease was extended on a month -to -month basis by City Council Resolution No. 5782 for a period not exceed- ing six months or until such time as a new lease on said ferry landings is executed; and WHEREAS, a new lease dated the 8th day of July, 1963, has been presented to the City Council under which the City would Lease certain property for ferry landings to Balboa Island Ferry, a California corporation, the successor to J. A. Beek in the opera- tion of the Balboa Island ferry; and WHEREAS, the City Council has considered the terms and conditions of said lease and found the same to be reasonable and equitable; NOW, THEREFORE, BE IT RESOLVED that said lease be approved and the Mayor and City Clerk are hereby authorized and directed to. execute the same on behalf of the City of Newport Beach. ADOPTED this '1 - day of July, 1963. ATTEST: f City ci*i fi Mayor 3 Yr Index OW OF NEWPORT BEA. Volume.17 - Page 3 Minutes of REGULAR MEETING OF THE CITY COUNCIL Date of Meeting: July 8, 1963 Time of Meeting: 7:30 P. M. DRAFT MINUTES COUNCILMEN . J. aa\.c vl 1V1GG1.1116. VULLLLli11 ♦,alatuuCr Sf Roll Call: Councilman Lorenz joined the meeting within.a minute. At the request of Mayor Hart, the City Clerk read proposed Resolution No. 5808, being a Resolution of Commendation of the City Council of the City of Newport Beach commending The Reverend Edward C. Smith of Christ Church by the Sea Community Methodist. Resolution No. 5808 was unanimously adopted. Councilman Marshall made a motion to approve the Minutes of the Regular Meeting of June 24, 1963, the Regular Ad- journed Meeting of June 25, 1963 and the Regular Adjourned Meeting of July 1, 1963. Councilman Cook stated that he felt that the Minutes. of July 1, 1963 as written, were not correct, that he had not ab- stained from voting on Resolution No. 5804, establishing ,a classification plan and salary ranges and rates, adopted on July 1. Councilman Marshall deleted the approval of the Minutes of the Adjourned Meeting of July 1, 1963, and Mayor Hart suggested that Councilman Cook listen to the record with the City Clerk. The reading of the Minutes of the Regular Meeting of June 24, 1963 and the Regular Adjourned Meeting of June 25,. 1963 was waived, the Minutes were approved as writtenand or- dered filed. HEARINGS: Present Absent Motion Roll Call: Ayes Motion All Ayes x xxx x x x xxxx xxxx x 1. Mayor Hart opened the public hearing in accordance with Resolution No. 5798, a Resolution of the City Council of the City of Newport Beach declaring its,intention to grant a franchise. Mayor Hart inquired if anyone in the audi- 3- ence desired to be heard in the matter. No one responded. peeanti The hearing was closed. Motion All Ayes x ?vvt.c Consideration was given to a proposed lease between the City of Newport Beach, as Lessor, and the Balboa Island Ferry, as Lessee, for the use of the tidelands for the ferry landings. Attorney Mark Soden, representing Mr. and Mrs. J. A. Beek, Barton Beek, and the Balboa Island Ferry, spoke from the audience. He stated that his clients would prefer to have a revocable license and not a lease, that the franchise would be sufficient to govern the toll ferry and that the rental proposed in the lease was too high. Councilman Gruber, Chairman of the Balboa Island Ferry Lease Committee, stated that the rental in the proposed lease of the City property at 1. 1/2% of the Page 3 1IPTY OF NEWPORT BEA. Volume 17 - Page 4 COUNCILMEN Index L LLLL.LV 0. 1`l0J gross. receipts, from the operation of the Balboa Island Ferry, had beenconsidered carefully and seemed to be fair. Mr. Joseph Beek spoke from the audience and stated it would be difficult to make a profit if the rental were in the amount suggested. The City Attorney stated that he and the Committee felt that the leasehold is an essential partof the ferry operation on.both .ends of the ferry route. He stated that he felt that the operatorof the ferry should have possessory interest in the land in order to maintain the ferry landings on it and to exclude other people from it, otherwise the City would be exposed to additional possible liability. Councilman Cook asked whether or not the Beeks would be agreeable to paying a rental of 1% on the first $100, 000 of the grossreceipts and 1 1/2% on all over $100, 000 of gross receipts. After discussion, Mr. Joseph Beek agreed to this rental. Attor- ney Barton Beek spoke from the audience. Councilman Gruber made a motion to approve the leaseas drawn, which provides that 1 1/2% of gross revenue per annum be paid as rental. A further discussion was had. Coun- cilman Gruber withdrew his motion. Mr. Beek reiterated that he would sign the lease if the rent as previously pro- posed by Councilman Cook were incorporated in it. The lease with the Balboa Island Ferry was authorized on a rental base of 1% of the gross income of the first Motion All Ayes x $100, 000 and 1 1/2% on all gross receipts over $100, 000. Emergency Ordinance No. 1045, being AN ORDINANCE OF THE CITY OF NEWPORT BEACH GRANTING A FRANCHISE TO OPERATE A TOLL FERRY was read by the City Clerk in full and adopted, effective immediately. Motion Roll Call: x Ayes xxx.xxxx Resolution No. 5809, authorizing the Mayor and City Clerk to execute a lease with the Balboa Island Ferry, as stipulated ina previous motion, was adopted. Motion Roll Call: x Ayes .xxx xxxx 2. Mayor Hart opened the public hearing regarding Ordinance No. 1040, being AN ORDINANCE OF THE CITY OF NEWPORT BEACH REZONING PROPERTY AND AMENDING DISTRICT MAP NO. 17, rezoning a portion of Block D, Corona del Mar, from an R-2 to an R-3 District (located at 201-203-205 Carnation Page 4 CITY OF NEWPORT BEACH CITY ATTORNEY DEPARTMENT July 5, 1963 To: City Clerk From: City Attorney Subject: Balboa Island Ferry lease Transmitted herewith are copies of a new page 3 of the pro- posed lease on the ferry landings. This page has been revised to make it clear that it is intended for the rent to be paid annually. It is suggested that the page be substituted in the copies of the lease you have. If the packages to the City Council have been prepared when you receive this page, it is not necessary to substitute the page in the copies of the lease transmitted to the City Council. WWC:mec Encs. cc - City Manager Finance Director Public Works Director ice, >l arterial' a`Iler W. Char City Attorney • • July 5, 1963 To: Members of the City Council From: Councilman Gruber, Chairman, Balboa Island Ferry Lease Committee Subject: Balboa Island Ferry lease 6 In a memorandum of June 28, 1963, a report was made to the City Council on the proposed lease on the ferry landings and a copy of the proposed lease was transmitted with the memorandum. Upon further review of the proposed lease by Mr. Beek on behalf of Balboa Island Ferry, he has indicated some reluctance to execute the lease in its present form. He feels the 1-1/2% rental may be too high and that the limited use of the property authorized by the lease may be too restrictive. In addition, there may be other factors he will want to discuss with the City Council, It can, therefore, be anticipated that Balboa Island Ferry will be represented at the City Council meeting of.July 8 and that the representatives will wish to discuss the merits of the above and additional points that may be raised, cult Gruber, Chairman Balboa Island Ferry Lease cc - City Manager Committee City Clerk Finance Director 3 • • CITY OF NEWPORT BEACH CITY ATTORNEY DEPARTMENT July 3, 1963 To: City Clerk From: City Attorney Subject: Balboa Island Ferry Transmitted are the following: 1. A proposed ordinance which, if enacted, will grant a franchise to Balboa Island Ferry, a California corpora- tion, for the operation of the ferry between Balboa and Balboa Island. 2. A proposed lease which, if executed by the City and Balboa Island Ferry, a California corporation, will lease the ferry landings to Balboa Island Ferry for the term of the franchise. 3. A resolution which, if adopted by the City Council, will authorize the execution of the lease on behalf of the City. 4. Public Works Department drawing No. L-2352 dated 5/26/61, revised 7/1/63, showing the area to be leased adjoining the bulkhead line on Balboa Island for the Island landing. Two copies of the lease have been delivered to the lessee. It is expected that the lessee will be represented at the City Council meeting for the purpose of reviewing the lease with the City Council. It is suggested that the City Council take the matters up in the following order: 1. Hold the hearing on the franchise. 2. Consider the lease and reach an agreement with the proposed lessee. 3. If the Council determines after the hearing that the franchise should be granted to Balboa Island Ferry and agreement has • • To: City Clerk -2- July 3, 1963 been reached on the lease, the ordinance granting the franchise and the resolution authorizing the execution of the lease may be adopted in any order. WWC:mec Encs. cc - City Manager Finance Director Public Works Director il Walter W. Charamza City Attorney • WWC:mec 7/2/63 • LEASE y 1/4Y" THIS LEASE, made and entered into this 8th day of July, 1963, by and between the CITY OF NEWPORT BEACH, a municipal cor- poration in the County of Orange, State of California, hereinafter referred to as "Lessor", and BALBOA ISLAND FERRY, a California corporation, hereinafter referred to as "Lessee"; WITNESSETH: WHEREAS, lessor has heretofore leased the real property hereinafter described to J. A. Beek under a lease with an expira- tion date of May 31, 1963; and WHEREAS, said lease was continued on a month -to -month basis by City Council Resolution No. 5782; and WHEREAS, said J. A. Beek as lessee used said real prop- erty for the construction and maintenance of docks, ways, boat landings, ferry slips, waiting rooms, and appurtenances in connec- tion with the operation of the Balboa Island ferry; and WHEREAS, the Balboa Island ferry is now operated by Balboa Island Ferry, a California corporation; and WHEREAS, the use of said real property is necessary for the operation of said ferry; and WHEREAS, said use is necessary and convenient for the promotion and accommodation of commerce and navigation in the City of Newport Beach; and WHEREAS, said use is not inconsistent with any trust or trusts under which title to said real property is held by the City of Newport Beach; NOW, THEREFORE, the parties agrees to Lessor hereby leases to lessee all that certain real property in the City of Newport Beach, County of Orange, State of California, particularly described as follows: Parcel 1: Beginning at a point on the Southeasterly line of Palm Street, Northeasterly 131.43 feet (measured along the Southeasterly line of Palm Street) from the most Easterly corner of the intersection of • Bay Avenue and Palm Street (formerly known as Main Street) as shown on the "Map of Bayside", recorded in book 3, page 38 of Miscellaneous Maps in the office of the county recorder of said county; thence Northeasterly along the Northeasterly prolongation of said Southeasterly line to the Pierhead Line, said Pierhead Line being Northeasterly 100 feet from and parallel with the Bulkhead Line extending from U. So Bulkhead Sta. No. 112 to U. So Bulkhead Sta. No. 113 as shown on a map titled "Harbor Lines, Newport Bay Harbor, Calif.", approved by the Secretary of the Army on February 15, 1951, on file in the Office of Chief of Engineers, Department of the Army, Washing- ton, D.C.; thence Northwesterly along said Pierhead Line to the Northeasterly prolongation of the North- westerly line of Palm Street; thence Southwesterly along said Northeasterly prolongation to a point Northeasterly 135 feet (measured along the Northwest- erly line of,Palm Street) from the most Northerly corner of the intersection of Palm Street and Bay Avenue; thence Southeasterly in a direct line to the point of beginning. Parcel 2: Beginning at the intersection of the Southwesterly prolongation of the Northwesterly line of Agate Ave- nue as shown on the "Map of Resubdivision of Sect. One of Balboa Island" recorded in Book 6, page 30 of Miscellaneous Maps, in the office of the county re- corder of said county, with the Bulkhead Line extending from U. S. Bulkhead Sta. No. 256 to U. So Bulkhead Sta. No. 258 as shown on a map titled "Harbor Lines, Newport Bay Harbor, California", approved by the Secretary of the Army on February 15, 1951, on file in the Office of Chief of Engineers, Department of the Army, Washington, Do Co; thence No 43° 52' W., 81.90 feet along said Bulkhead Line; thence So 35° 58° W., 45.50 feet; thence So 43° 52° E., 16e60 feet; thence Se 35° 58° W., 5015 feet more or less; thence So 43° 52' E., 112.86 feet more or less; thence N. 46° 08° E., 50,00 feet to said Bulkhead Line; thence North 43° 52° West 55.63 feet along said Bulkhead Line to the point of beginning. 2. The term of this lease shall begin on the date hereof and end on July 7, 1988, 3. Lessee shall use said property for the purpose of the construction, maintenance, and operation of piers, docks, ways, boat landings, ferry slips, waiting rooms, restrooms, and appurtenances necessary for the operation of a ferry service and shall use the same for no other purpose without the prior written approval of the City Council of the City of Newport Beach; pro- vided, however, that any boat ways constructed, maintained and operated on the premises by lessee may be used as convenient to 2, WWC:mec 7/9/63 • • lessee for the purpose of removing fetryboats and other boats which are owned by lessee or by any officer or director of lessee, a California corporation, from the water so long as such use com- plies with all applicable regulations. Said piers, docks, ways, boat landings, ferry slips, waiting rooms, restrooms, and appurte- nances shall be maintained by lessee in good condition and repair during the entire term of this lease. 4. This lease is subject to termination by lessor if lessee ceases to operate a ferry between Balboa Island and Balboa Peninsula for a continuous period of thirty (30) days at any time during the term hereof; provided, however, that lessor may not terminate if such cessation in excess of a period of thirty (30) days results from war, catastrophe', act of God, or other cause beyond the control of lessee. 5. Upon expiration of this lease, or upon earlier termination for any reason, lessor shall have the option of taking over the ferry slips, landings and ramps used in conjunction with the operation.of the ferry without the payment of any compensation therefor to lessee. Upon such expiration or termination lessee may remove all other improvements on the leasehold and shall upon such removal restore the premises to a smooth condition free of all remnants or debris from the improvements so removed. If, within thirty (30) days after the expiration or termination, les- see has not removed the improvements it is authorized to remove hereunder, title to the same shall vest in lessor and lessee shall have no further interest therein. 6. As rental for the use of the property hereby leased, lessee shall annually, within thirty (30) days after the close of the calendar year or lessee's fiscal year, pay lessor one (1) per cent of the first $100,000 of gross receipts and one and one-half (1-1/2) per cent of the gross receipts in excess of $100,000 from the operation of the Balboa Island ferry or any other ferry using either Parcel 1 or Parcel 2 as a landing during the preceding calendar or fiscal year or portion of such year during the term. 3. WWC:mec 7(9/63 It is mutually understood that the rental herein provided is rental for the use of the premises for the purposes herein permitted only and that lessor may require additional rental to be agreed upon by the parties for any other use now or hereafter authorized to be placed upon the premises. 7. Lessee agrees to maintain the existing comfort station located on Parcel"2 in good'and serviceable condition and to repair or replace the same as such repair or replacement may become neces- sary during the term hereof. Lessor shall furnish janitor service in said comfort station during the term hereof without cost to lessee. 8. This lease is not assignable by voluntary or involun- tary act of lessee or by operation of law or otherwise without the prior written approval of lessor. Any such assignment of the lease or any interest therein without such approval shall cause a termina- tion thereof and thereupon the premises shall revert to City. 9. Lessee agrees to save and hold lessor harmless and 'indemnify lessor against any and all claims, demands, losses, or liability on account of any injury, loss or damage to persons or property claimed, suffered or sustained in or around the premises or elsewhere by reason of the operations of lessee or the useor occupancy of the premises or any part thereof. Lessee shall maintain throughout the term of this lease public liability insur- ance with coverage of not less than the following amounts; Bodily injury to one person, $100,000; bodily injury in the aggregate, $500,000; property damage, $100,000. Such insurance shall name lessor as an additional insured and shall provide that it will not be cancelled, permitted to lapse, or reduced in the amount of coverage without thirty (30) days' written notice first having been given to lessor. Lessee shall furnish a certificate of in- surance to lessor, subject to approval of the City Attorney as to form, evidencing the insurance herein required. IN WITNESS WHEREOF, the parties hereto have executed this 4. lease as of the day and year first above written. CITY OF NEWPORT BEACH By Approved as to form: July 8, 1963 Walter W. Charamza City Attorney Attest: Mayor BALBOA ISLAND FERRY By Attest: City Clerk LESSOR President Secretary LESSEE :met /63 (12) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 RESOLUTION NO. 5809 A RESOLUTION OF TIN CITY COUNCIL OF THE CITY Or NEWPORT it ial AUTHORIZING TEE EXECUTION Or A LEASE WITH MLBOA ISLAND FART iill8REAS, the City leased certain property to J. A. Beek for ferry landings on Balboa Island and on Balboa Peninsula by lease dated May 16, 1936, which lease expired on ?fay 31, 1963; and BUENAS, said lease was extended on a month-to-scnth basis by City Commit Resolution No. 57$2 for a period not exceed ia$ six months or until such time as a new lease on said ferry landings is executed; and W EEMS, * new lease dated the 8th day of July, 1963, has been presented to the City Council under w .eh the City would Lease certain property for farry landings to Balboa Island Ferry, a California corporation, the successor to J. A. Beek in the opera- tion of the Balboa island ferry; and WMERSAS„ the City Council has considered the tears and conditions of said lease and found the sane to be reasonable and equitable; NON, T'iERRFORR, BE IT RESOLVE that said lease be approved sad the Mayer end City Clark srs hereby authorized and directed to execute the sane on behalf of the City of Newport Beach. ADOPTED this 8th day of July, 1963. ATTEST: City mayor N. WWC:mec 7/1/63 • ORDINANCE N0. S o c( AN ORDINANCE OF THE CITY OF NEWPORT BEACH GRANTING A FRANCHISE TO OPERATE A TOLL FERRY WHEREAS, Balboa Island Ferry, a California corporation, has made application for a franchise to operate a toll ferry across Newport Bay between Palm Street, Balboa, and Agate Avenue, Balboa Island, all within the City of Newport Beach, for the trans- portation of passengers, vehicles, and freight; and WHEREAS, the City Council adopted a resolution declaring its intention to grant a franchise to said applicant and setting out the terms and conditions upon which such franchise was proposed to be granted and fixing the time and place when and where persons having an interest therein or any objection thereto could appear before the City Council and be heard thereon; and WHEREAS, said resolution was duly and regularly published` within 15 days after the adoption thereof and at least 10 days prior to the date of hearing; and WHEREAS, a hearing on the granting of said franchise has been regularly held by the City Council and a decision made thereon; NOW, THEREFORE, the City Council of the City of Newport Beach does ordain as follows: SECTION 1. There is hereby granted to Balboa Island Ferry, a California corporation, for a term of twenty-five (25) years from the date of passage of this ordinance, a franchise to construct, maintain and operate a toll ferry for the transporta- tion of passengers, vehicles, and freight across Newport Bay between the northerly end of Palm Street, Balboa, and the south- erly end of Agate Avenue, Balboa Island, all within the City of Newport Beach, California. SECTION 2. The grantee of this franchise, at all times during the existence thereof, shall keep and maintain sufficient, safe and adequate landings for the operation of a ferryboat or boats and shall keep, maintain, and operate safe and adequate • • ferryboats to provide all the reasonable and necessary transpor- tation of passengers, vehicles and freight from Balboa to Balboa Island. SECTION 3. The grant of this franchise shall not in any way or to any extent impair or affect the right of the City to acquire the property of grantee either by purchase or through the exercise of eminent domain and, in the event of such acquisition by either means; this franchise shall have no monetary value. SECTION 4. The grantee shall during the existence of this franchise pay to the City of Newport Beach two per cent (2%) of the annual gross receipts of grantee from its operations under this franchise. Grantee within three (3) months after the close of each calendar year, or the close of grantee's fiscal year if different than the calendar year, a portion of which falls within the term of this franchise, shall file with the Director of Finance of the City of Newport Beach a verified statement showing in detail the total gross receipts of grantee during such calendar year or fiscal year or portion thereof arising from its operations under this franchise. Said statement shall be accompanied by full payment to the City of the amount due under this franchise for such year or such portion. SECTION 5. The grantee shall not adopt or enforce any_ rates, charges or regulations which discriminate in favor of one patron against another patron or any rates, charges or regulations contrary to or not authorized by applicable regulations. SECTION 6. This -franchise is subject to all of the terms and conditions herein expressed and is also subject to all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. SECTION 7. This franchise shall not become effective unless, within ten (10) days after the adoption of this ordinance, written acceptance thereof is filed with the City Clerk by the grantee and upon filing such acceptance grantee thereby agrees to 2. be bound by all the terms and conditions herein expressed and by all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. SECTION 8. In the event grantee fails, refuses or neglects to comply with all the terms and conditions hereof and of Article XIII of said Charter, then the City Council of the City of Newport Beach shall declare a forfeiture of the franchise and thereupon shall exclude grantee and all persons from the use, enjoyment and possession thereof. SECTION 9. Emergency Ordinance Effective Immediately. This ordinance is declared by the City Council to be necessary as an emergency measure for preserving the public peace, health, and safety and shall take effect and be in force upon its adoption. The reasons for the urgency of this ordinance are: The continuous operation of the ferry service between Balboa and Balboa Island is necessary to provide adequate police and fire protection to both Balboa and Balboa Island and to provide an essential transportation service to the people of the City. It is necessary to make this ordinance effective immediately in order to grant the authority to and impose the duty upon the above -named grantee to provide such continuous service. SECTION 10. This ordinance shall be published once in the official newspaper of the City. This ordinance was introduced and adopted as an emergency ordinance at a regular meeting of the City Council of the City of Newport Beach held on the day of July, 1963, by the following vote, to wit: AYES, COUNCILMEN: NOES, COUNC ILMEIQ: ATTEST: ABSENT COUNCILMEN: o_n_1 City Clerk 3. /S Mayor • • • STATE OF CALIFORNIA . ) COUNTY OF ORANGE CITY OF NEWPORT BEACH) I, MARGERY SCHROUDER, City Clerk of the City of Newport Beach, California, do hereby certify that according to the records of the City of Newport Beachfiled and maintained in my office, the foregoing Ordinance No. 1045 was duly and regularly adopted, passed, and approved by the City Council of the City of Newport Beach, California, at a regular meeting of said City Council held at the regular meeting.place thereof, on -the 8th day of July 19 63 , by the following vote, to wit: AYES, COUNCILMEN: NOES, COUNCILMEN: ABSENT, COUNCILMEN: • Stoddard, Gruber. Cook. Hart. Lorenz. Marshall. Elder None None Dated this 16th day of July ,: 19 63 City Clerk .and lEx. Officio Clerk .of .the City Council, City of Newport Beach, State of California. ORDINANCE NO. INS AN ORDINANCE OF THE CITY OP NEWPORT BEACH GRANTING A FRANCHISE TO OPERATE A TOLL FERRY WHEREAS, Balboa Island Ferry. a California corporation, has made spat« mhos for a franchise to overtire a foal ferry across Newport Bay between Pain Street, Balboa, and Agate Avenue, Bat. boa Island, all within the CIty of New- Dort Beach, for the transportation of Passengers, vehicles, and Height; and WHEREAS, the City Council adopted • resolution declaring Its Intention to grant a franchise to said aispilcant and setting out the terms and cdndliiotls upon which such franchise Wee pcoPOSed te be granted and fixing the time and place when and where p.rsens having an Interest therein or any oblection therei, could appear before the City Council end be heard thereon: anal WHEREAS, said resolution was duly e nd regularly published within i! deys after the adoption thereof and st least 10 Say_ prior 1e the date of hearing arld WHEREAS, a Merino en the Scathing of said franchise has been regularly ?NM by the CRY Council end a detisl0n made thereon; NOW, THEREFORE. the t lty C.tuncil o f the City Of Newport Beach does ordain en follows: SECTION 1. There le hereby granted to Baku Island • Ferry. a California corporation, for a term of twenty-five (2S) years kern the date of passage of :his ordinance, a franchise to con• elrvct, maintain and operate a I.:II ferry for the transportation of passengers, ve- hicles. and freight across Newport Bey between the northerly end of Palm Street. Balboa, and for southerly end of Agate Avenue. Balboa Island. all within the City o1 Newport Beach. Californie. SECTION 2. The (rantea of this trap• this., at ell times during the existence thereof. shall keep and maintain suffi- cient t-Irn and adequate landings for the operation of a ferryboat or boats and shall keeo, maintain, and overate Salt and ed.quale ferryboats to provide all Me reasonable and necessary trans - variation of passengers, vehicles and freight from Balboa to Balboa Island. SECTION 3. The grant of this fran- chise shall n01 In any way or fo any extent impair or affect the right of the City to acquire One orooerty of grantee either by purchase or through the exer- cise 01 eminent domain and. in Inc avant or such acquisition by either means. this arenchise shale have no monetary value. SECTION 4. The granite shell Curing' the existence of this franchise pay to the City o1 Newport Beach two per cent (rir) or the annual grass receipts of grantee from Its operations under this franchise. Grantee within three (3) Months atter the close of each calendar Mfr. or the close of grantee's fiscal Year it different than Ire ...,lender year, • Portion of which falls within :he term Of this franchise, shalt life with the Director of Finance of the City of New - Pert Beech a verified statement ttl0wiM in detail ire total gross re:elots of grantee during such calendar year or fiscal year or pinion tllwreof arlsino from its operations under this franchise. Sate statement shall be eCComoanied by lull payment t0 the City of the amount due under this franchise for such year or such portion. SECTION SThe grantee shall not adopt or enforce any ratet, charges Or reputations which discriminate in favor 01 des patron agalnsl another patron or any , charges 0r regulations ContrAry to nr not authorized by 00. eliabit regulations. SECTION 6. T1ls franchise is subject to all of the terns and conditions herein expressed and is also sublect to ail of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. SECTION 7. This franchise shall not become effective unless, within fen (10) N.ys etle, Il.s adoption of this alai• Hanoi. written ecceplrncs thereof is fired with the City Clerk by the grantee end upon filing such ecceplence grantee thereby agrees to be bound by all the terms and conditions herein expressed e nd by all of the terms and conditions of Article XIII of the Cherter of the Citv of Newport Beech. SECTION a. In the event firearm lens. Whole Or Peelecls• to amply with •^ the gran end conditions hereof and of Article XIII of said Charter. Men the City Council of the City of Newport Reath shall *Ware • forfeiture of the lranchlee and Mereuoon Shell exchude granny and ail persons from the use. enjoyment and Possession thereof. SECTION 9. Emergency Ordinance Ef- fective immediately. This ordinance Is declared by the City Council ter be necessary as an emergency measure for preserving the public paate, health, and safety and shall take effect and be in force upon its adootl0n. The reasons for the urgency of this ordinance are: The CWt1Erktous operation of the ferry service between Balboa and Bate* island Is necessary t0 provide adequate police and fire protection to both Balboa and Bel boa Island and to provide an essential' transportation service to the people of the City. it is necessary to make this ordinance effective Immediately in Or. gar h) grant thr authority an and im• pose the duty upon the above -mimed grantee t0 proVlde such Continuous ser- vice. SECTION 10. This ordinance shall be published once In the official newspaper of the City. This ordinance was introduced end adopted as an emergency ordinance at a Meurer meeting of the CIty Council of the City of Newport Beach held on the bite day et July. 19%3, by the follow. Ing vote to wit: AYES. COUNCILMEN: Stoddard. Gruber. Cook. Hart. Lorenz. Marshall, Elder. NOES, COUNCILMEN: None ASSENT COUNCILMEN: None Charles E. Hart, Maya ATTEST: Margery Schrduder City Clark Published Orange Coast OallY Pilot, Costa Mese California July 11 leaf. a22Aa • City Council City of Newport Beach Newport Beach, California Re: Ordinance No. 1045 Gentlemen: Balboa Island Ferry hereby franchise to operate a toll ferry the terms and conditions set forth No. 1045, granting such franchise. DATED: July 17 , 1963. IECEIVED OD 'CURE NEWPGAL CALIF. COUNCIL: DISPOSITION: FILE: accepts the according to in Ordinance BALBOA ISLAND FERRY BY President (-7 1` SLam. t � `mil ecretary June To: Members of the City Council From: Councilman Gruber, Chairman, Balboa Island Ferry Lease Committee Subject: Balboa Island Ferry lease '� The lease committee, consisting of the undersigned and Councilmen. Cook and Elder, have met with Mr. Beek, his attorney, and the City Attorney on two occasions and have prepared the attached lease for consideration by the City Council. The lease is to Balboa Island Ferry, a California corporation, which now operates the Balboa Island ferry and to which the City Council is considering granting a franchise for the continued oper- ation of the ferry. The area being leased is the same as that leased under the lease that expired on May 31, 1963, and was con- tinued on a month -to -month basis by Resolution No. 5782 on May 27, 1962, except the description of the parcel at the end of Agate Avenue on Balboa Island is being revised to omit the area of that parcel which is used in connection with the Shell 0i1 marine service station. The purpose of omitting the area used in connection with the Shell Oil marine service station was to give the City Council an oppor- tunity to consider that operation separately at such time as the Council may wish to examine it and similar operations in the Bay. The term of the lease is for twenty-five years and is intended to terminate on the same date the franchise will terminate if it is granted to the Balboa Island Ferry. The lease permits the use of the area only for uses in connection with the ferry operation except it does permit the use of the ways to take boats out of the water that belong to the corporation or to any officer or di- rector of the corporation. The lease also provides that upon expiration or earlier termination the lessor may take over the ferry slips, landings and ramps used in connection with the operation of the ferry without compensation to lessee. Other improvements may be removed by lessee and, if not, shall be deemed abandoned. The lease requires the lessee to maintain and repair and replace the comfort station on the parcel fronting on Balboa Island. The City is required to furnish janitor service at said station as is now being done. The lease is not assignable. It also requires lessee to indemnify the City against claim for injury to persons or property and requires lessee to carry insurance and name the City as an additional insured. To: Members of the City Council -2- June 28, 1963 The lease fixes the rental at 1-1/2% of the gross receipts from the operation of the Balboa Island ferry or any other ferry using either parcel 1 or parcel 2 as a landing. The committee con- sidered fixing a flat rental and making it subject to renegotia- tion periodically through the term of the lease. However, it was felt that, if a percentage figure could be agreed upon, it would be more practicable than periodic renegotiation. With the per- centage rental, any inflation during the term would be automati- cally taken care of and, in addition, any increase in business by lessee which has been the general pattern over the past fifteen years would be reflected in additional rental to the City. The committee feels that the 1-1/2% is a reasonable figure because the lessee is limited to using the property for purposes connected to the operation of the ferry except for the incidental hauling of boats belonging to the corporation or officers or directors of the corporation. The City is also enjoying a revenue under the fran- chise of 2% of the gross receipts. If the legislation sponsored by the City had not been enacted, the Balboa Island Ferry would have paid the State not less than $10 a month nor more than $100 a month for the franchise to operate the ferry. It will pay the City $200 a month or more if the volume of the operations continues as it has in the past. The 1-1/2% should amount to about $1,800 a year under the present volume, which should make a total revenue to the City of about $4,200 a year from the ferry operation. In addition, the Balboa Island Ferry is a public utility and its rates are fixed by the Public Utilities Commission of the State. Therefore, the lessee is limited in its ability to produce revenue by the control of the Public Utilities Commission. The operation of the ferry is a necessary public service and, if it were not operated by the lessee or some other private entity, it would probably be necessary for the City to make provision for the operation of a ferry or other transportation system to get persons, vehicles, and freight from Balboa to Balboa Island. For the foregoing reasons, the committee felt that the rental of 1-1/2% of the gross receipts from the lease is fair and reasonable. This memorandum and copy of the lease is being distributed to the members of the City Council at this time in order that you will have an opportunity to review it before the meeting of July 8, 1963, at which time the City Council may act on both the lease and ferry franchise. Paul J. ruber, Chairman Enc. Balboa sland Ferry Lease cc - City Manager Committee City Clerk Finance Director :m ' �'4v't�'.', WC:mec 6/21/63 (6) LEASE THIS LEASE, made and entered into this 8th y of July, 1963, by and between the C'TY OF NEWPORT BEACH,'a m nicipal cor- poration in the County of ange, State of Califor ia, hereinafter referred to as "Lessor", an BALBOA ISLAND FERRY, a California .corporation, hereinafter referred to as "Lessee" WYTNE'SETHI WHEREAS, lessor has eretofore leas=• the real property hereinafter described to J. eek.under a ease with an expiration date of May 31, 1963; .. : d WHEREAS, by City Council REs-:::.... ..:.. a..d WHE2.Y -y.id ._ . ... Bee, as essee used said real property for the consi and maintenan•e.of docks, ways boat landings, ontin d on a month -to -month basis ferry slips, ing rooms, end api. tenances in ‘-action with the operat c- , ,f th :slan-� . erry; and Balboa Is .• 3. ...:e Balbce I rry, a Califor `.REAS, the use c_ the operation of said ferry; WHEREAS, said us =cessa,y and.cc4venient f:r the promotion and accommoda-.', ,:amerce and navigation s.: the City of Newport Beac;... WHEREAS. .Lid ,is is not incons:sc .._h any trust or trusts under G7h..:` cit e to sai0 -eat prop-xt: -aid by .the City' of Newport Bec r:.: THERE ORE, the 'ai es agree: . Lesser hereby leases to lessee '11 tat“ .e real ; :•.; -cy in t y of *ie,,Yport Beaca, .Cou: ty Sta'-e alifornf -ticularly,described as follows, e• ferry is, now -operated by oration; and 1 property is rt: essary for .. description, Parcels 1 and 2) 2. The term of this;lease shall begin on the date hereof and end on July 7, 1988.. 3. Lessee shall use said property for the rpose of the construction, main enance, and operation of piers docks, ways, boat landings, fe ry slips, waiting rooms, re roams, and ' appurtenances necessary or the operation of a fer y service and shall use the same for no other purpose without e prior written approval of the City Counc'l of the City of N. ort Beach; provided, however, that any boat ways constructed, mains.:. .ned and operated on the premises lessee nab• be usc::: conven' ,zt cc lessee for the purpose ofremoving ferryboats nd other bo..ts wh c! re owned by lessee or b, Etny officer or direc or of 1=ssee, a Ca'.fornia corporat_•.._., from the c:..... lon_•as s'ch use complies with all applicah._:. regulation:. ,.lid piers, d•'ks, ways, boat ..andings, ferry slips, waiting rooms, restrooms; and appurtenances shall be maintaira.: by lessee in good condition 'nd repair during the entire term of this lease. 4. This lease is sub'-ct to •-rmination by lessor if. lessee ceas:: operate a .:..:rl between lboa Island an. BL..'ea Peninsula a, • . continuo., pe:c od of shirt (30) days at any time during th4 .,.rm hereof; pro- ded; however, that lessor may not terminate if such cessation n e.c ...:ss of a p-riod of thirty (30) days results from war, catstrophe, act of G••, or other cause beyond the control of les-ee. 5. Upon. ,. ,tion this lease, o . upon earlier termination for a'..' Ye'-C'i"., lessc_ shall have the option of taking over the ferry .,?:�s, Landings and ramps used in • .ction with the operation; the terry without the payment of any compensation therefor to 1.:ssee. Upon such expiration or terminatio: lessee may remove all oc:ser imp ovements on the leasehold and shall upon such removal restore the ;.remises to a smooth condition free of all 2. • • remnants or debris from the improvements so removed. If, within thirty (30) days after the expiration or termination, lessee has not removed the improvements it is authorized to r-.love hereunder, title to the same shall vest .n lessor and lessee shall have no further interest therein. 6. As rental for th use of the pr••er.ty hereby leased, lessee shall pay lessor one and .ne-half (1-1 2) per cent of the gross receipts from the. ...;tio of the Ba •oa Island ferry or any other ferry using 7-2Lcei 1 or Parc 2 as a landing: It is mutually un'.- .._t the re tal -rein provided is rental for the use of c_ae pta.:ses for the p poses herein permi'Led only and that lessor may require additio =1 rental:to be agreed upon by the parties for any other use now or ereafter authorized to be placed upon . .. premises. Lessee agrees o mainta the existing comfort station located on Parcel " in good and serviceable condition and to repair or replace the :ame as such re air or replacement may become necessary during the term hereof. Lessor shall -furnish janitor service in sa'. comfort station du ing the term hereof without cost to less e. 8. Thi- lease not assignable by voluntary or involuntary act o lessee or ':y op ~. of law or othe ise without the prior written: approval of les3a;.: Any such assignm-nt of the lease or any i<erest th rein without such approval sha 1 cause a termina- tic._ thereof a d there:e _ton the premises shall .-vext tc City. 9. Lessee :.-... to save - :. .uld 1=ssor r;t;cmless and .m•_. :'y lessor agai::. and all claims, dsi.-nds, s:es, or 3. liability on account of any injury loss or dame •: to persons or property claimed, suffered or sustai ed in or a;o6nd the premises or elsewhere by reason of the operati.ns of le ..ee or the use or occupancy of the premises or any part hereof. Lessee shall maintain throughout the term of this le se pu lie liability insurance with coverage of not less than the following amounts: Bodily injury.to one person, $100,000; b.di y injury in the aggregate, $500,000; property damage, $106 000. Such insurance shall name lessor as an additional insured d.shall provide that it. will not be cancelled, pe._-:-::ted t' '-pse, or reduced in the amount of covers.:. :. ;.t t .i _ _ �0 days' written notice first having b-::' �4'en ...essor. Le.a: shalfurnish a certificate i surance to lessor, subj-ct to a royal of the City Attcrn; as to form, evidencing th ins:=rs>.ce erein required. t 1 4, • WWC:mec 6/14/63 • • RESOLUTION NO, 5798 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO GRANT A FRANCHISE WHEREAS, Balboa Island Ferry, a California corporation, has made application for a franchise to operate a toll ferry across Newport Bay between Palm Street, Balboa, and Agate Avenue, Balboa Island, all within the City of Newport Beach, for the trans- portation of passengers, vehicles, and freight; and WHEREAS, said Balboa Island Ferry has a Certificate of Public Convenience and Necessity issued by the Public Utilities Commission of the State of California as required by Article 1 of Chapter 5 of Part 1 of Division 1 of the Public Utilities Code of the State of California for the transportation of persons and property. by vessel; and WHEREAS, said Balboa Island Ferry owns the equipment and facilities necessary to provide public ferry service between said points in the City and it is necessary and in the public interest that such service be maintained; NOW, THEREFORE, BE IT RESOLVED that pursuant to the authority vested in the City Council by Article 4, Chapter 3, of Division 17 of the Streets and Highways Code of the State of California and Article XIII of the Charter of the City of Newport Beach, the City Council hereby declares its intention to grant a franchise to Balboa Island Ferry under the terms and conditions and in the form hereinafter set out: SECTION 1. There is hereby granted to Balboa Island Ferry, a California corporation, for a term of twenty-five (25) years from the date of passage of this ordinance, a franchise to construct, maintain and operate a toll ferry for the transporta- tion of passengers, vehicles, and freight across Newport Bay between the northerly end of Palm Street, Balboa, and the south- erly end of Agate Avenue, Balboa Island, all within the City of Newport Beach, California. • • SECTION 20 The grantee of this franchise, at all times during the existencethereof, shall keep and maintain sufficient, safe and adequate landings for the operation of a ferryboat or boats and shall keep, maintain, and operate safe and adequate ferryboats to provide all the reasonable and necessary transpor- tation of passengers, vehicles and freight from Balboa to Balboa Island. SECTION 3. The grant of this franchise shall not in any way or to any extent impair or affect the right of the City to acquire the property of grantee either by purchase or through the exercise of eminent domain and, in the event of such acquisition by either means, this franchise shall have no monetary value. SECTION 4e The grantee shall during the existence of this franchise pay to the City of Newport Beach two per cent (2%) of the annual gross receipts of grantee from its operations under this franchise. Grantee within three (3) months after the close of each calendar year, or the close of grantee's fiscal year if different than the calendar year, a portion of which falls within the term of this franchise, shall file with the Director of Finance of the City of Newport Beach a verified statement showing in detail the total gross receipts of grantee during such calendar year or fiscal year or portion thereof arising from its operations under this franchisee Said statement shall be accompanied by full payment to the City of the amount due under this franchise for such year or such portions SECTION 5. The grantee shall not adopt or enforce any rates, charges or regulations which discriminate in favor of one patron against another patron or any' rates, charges or regulations contrary to or not authorized by applicable regulations. SECTION 6< This franchise is subject to all of the terms and conditions herein expressed and is also subject to all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. 2. 0 SECTION 7. This franchise shall not become effective unless, within ten (10) days after the adoption of this ordinance, written acceptance thereof is filed with the City Clerk by the grantee and upon filing such acceptance grantee thereby agrees to be bound by all the terms and conditions herein expressed and by all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. SECTION 8. In the event grantee fails, refuses or neglects to comply with all the terms and conditions hereof and of Article XIII of said Charter, then the City Council of the City of Newport Beach shall declare a forfeiture of the franchise and thereupon shall exclude grantee and all persons from the use, enjoyment and possession thereof. BE IT FURTHER RESOLVED that July 8, 1963, at 7:30 P. M., in the City Council Chamber of the City Hall at 3300 Newport Boulevard, Newport Beach, California, is fixed as the date, hour and place when and where any persons having an interest herein or any objection to the granting of this proposed franchise may appear before the City Council and be heard. BE IT FURTHER RESOLVED that the City Clerk is authorized and directed to publish this resolution in the official newspaper of the City on June 27, 1963. ADOPTED this 24th day of June, 1963. aG - Sc City Clerk 3. Mayor i RESOLUTION NO. 5798 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO GRANT A FRANCHISE WHEREAS,Balboa Island Ferry, a California corporation, has made application for a franchise to operate a toll ferry across Newport Bay between Palm Street, Balboa,and Agate Aven- ue, Balboa Island, all within the City of Newport Beach, for the transportation of passengers , vehicles, and freight; and WHEREAS, said Balboa Island Ferry has a Certificate of Public Convenience and Necessity is- sued by the Public Utilities Comtnission of the State ofCali- fornia as required by Article I of Chapter 5 of Part I of Division I of the Public Utilities Code of the State of California for the transportation of persons and property by vessel; and WHEREAS, said Balboa Island Ferry owns the equipment and facilities necessary to provide public ferry service between said points in the City and it is necessary and in the public in- terest that such service be main- tained; NOW, THEREFORE, BE IT RE- SOLVED that pursuant to the authority vested in the City Council by Article 4, Chapter 3, of Division 17 of the Streets and HighwaysCode of the State of California and Article XIII of the Charter of the City of Newport Beach, the CityCoun- cil hereby declares its intention to grant a franchise to Balboa Island Ferry under the terms and conditions and in the form here- inafter set out: SECTION 1. There is hereby granted to Balboa Island Ferry, a California corporation, for a term of twenty-five (25) years from the date of passage of this ordinance, a franchise to con- struct, maintain and operate a toll ferry for the transportation of passengers, vehicles, and freight across Newport Bay be- tween the northerly end of Palm Street, Balboa, and the south- erlyend of Agate Avenue. Bal- boa Island, all within the City of Newport Beach, California. SECTION 2. The grantee of this franchise, at all times dur- ing the existence thereof, shall keep and maintain sufficient, safe and adequate landings for the operation of a ferryboat or boats and shall keep, maintain, and operate safe and adequate ferryboats to provide all the easonable and necessary trans - nation of passengers , vehicles nd freight from Balboa to Bal- oa Island. SECTION 3. The grant of this franchise shall not in any way or to any extent impair or affect the right of the City to acquire the property of grantee either by purchase or through the exer- cise of eminent domain and, in the event of such acquisition by either means, this franchise shall have no monetary value. SECTION 4. The grantee shall during the existence of this franchise pay to the City of Newport Beach two per cent (2%) of the annual gross receipts of grantee from its operations under this franchise. Grantee within three (3) months after 1' v\ y 1, L1LjJ the close of each calendar year. or the close of grantee's fiscal year if different than the cal- endar year, a portion of which falls within the term of this franchise, shall file with the Director of Finance of the City of Newport Beach a verified statement showing in detail the total gross receipts of grantee during such calendar year or fiscal year or portion thereof arising from its operations un- der this franchise. Said state- ment shall be accompanied by full payment to the City of the amount due under this franchise for such year or such portion. SECTION 5. The grantee shall not adopt or enforce any rates charges or regulations whichdis- criminate in favor of one patron against another patron or any rates, charges or regulations contrarytoor not authorized by applicable regulations. SECTION6. This franchise is subject to all of the terms and conditions herein expressed and is also subject to all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach, SECTION 7. This franchise shall not become effective un- less, within ten (10) days after the adoption of this ordinance, written acceptance thereof is filed with the City Clerk by the grantee and upon filing such acceptance grantee thereby a- grees to be bound by all the terms and conditions herein ex- pressed and by all of the terms and conditions of Article XIII of the Charter of the City of Newport Beach. SECTION 8. In the event grantee fails, refuses or neglects to comply with all the terms and conditions hereof and of Article XIII of said Charter, then the City Council of the City of Newport Beach shall de- clare a forfeiture of the fran- chise and thereupon shall ex- clude grantee and all persons from the use, enjoyment and possession thereof. BE IT FURTHER RESOLVED that July 8, 1963, at7:30 P.M., intheCity Council Chamber of the City Hall at 3300 Newport Boulevard , Newport Beach ,Cali- fornia, is fixed as the date, hour and place when and where any persons having an interest herein or any objection to the granting of this proposed franchise may appear before the City Council and be heard. BE IT FURTHER RESOLVED that the City Clerk is authorized and directed to publish this re- solution In the official newspaper of the City on June 27, 1963. ADOPTED this 24th day of June, 1963. CHARLES E. HART Mayor ATTEST: Margery Schrouder City Clerk ADDITIONAL INSURED �. INA (Owners Br Lessees) Named Insured BALBOA ISLAND FERRY* INCH AND CARROLL B. BEELC . Effective 01 01-80 Policy Number GLP GO 02 59 14. 7 Issued By (Name of Insurance Company) INSURANCE COMPANY OF NORTH AMERICA The above is required to be completed only when this endorsement is issued subsequent to the preparation of the policy. . It is agreed that: 1. The "Persons out of operations 2. The applicable policy shall be , - ENnoRSEMpt 5d1/ORANGE is -(06-27-80) MARCO • . arising a part of this • X .4 _ u► 9 CNi �.. . This endorsement modifies such insurance as is afforded by the provisions of the policy relating to the following: COMPREHENSIVE GENERAL LIABILITY INSURANCE MANUFACTURERS' ANO CONTRACTORS' LIABILITY INSURANCE Insured" provision is amended to include as an Insured the person or organization named below but only with respect to liability performed for such Insured by or on behalf of the Named Insured. limit of the Company's liability for the insurance afforded under the Contractual Liability Insurance Coverage Part forming reduced by any amount paid as damages under this endorsement in behalf of the person or organization named below. Name of Person or Organization (Additional Insured) CITY OF NEWPORT C/O CITY ATTORNEY'S 3300 NEWPORT NEWPORT BEACH, #2 P. ANKH CO. BEACH OFFICE BLVD• - CA• 92663 0, '� d . are Ct JUL • f ///�J� %G""' --• Authorized Agent GL-137 (ISOL115) 40M Ilw (21C7 ( A.-CW .Cet6t: LICCL-C j Jame 28, 1963 To: Members of the City Council From: Councilman Gruber, Chairmen, Balboa Island Ferry Leese Committee Subject: Whoa Island Ferry Lease There ere also submitted the following documents for your confidential information: 1. A statement of net totems of the Whoa Wad Ferry betimes April 1, 1962, sod March 31, 1963. 2. A copy of infermatime showing the met income of tbs ferry each year from 1934 through 1963. 3. A stateliest of the revenue to the City from 1944 through 1962. This consists of 2% of -the IMONIS regal to which vas the fres:hiss fee under ths exist - ins ISachia. Paul Gruber„ Chairmen *alba Wend Ferry Leans tncs. Committee Crr !It INCOME Revalue. • EXPMES- Officer's Salary Office Salary Other Wages • BALBOA ISLAND FERRY (a corporatien). 410 So. 113y Front . Balboa Islancis.Californie STATELTET OF NET INCOME April 1, 1962 tpliarch 31, 1563 (Prepared vitllout Audit) $4,000.00, >-.,--t 5,600.00 --'-4-' .67,2013..42 ±E.17:.• ..._ - Advertising . 233.92 Depreciation 5,715.63 Dues and 1.1bacriptione . 214.25 Fuel • : 2,942.12 Insurance • •• 7,302:89 • . Legal and:Accounting • 720.00 Miscellaneous- - 95:22: OfficedEapcdi7-4 • Payroll T -• ' 4,003.69 .Rent . 5,400.00. Repair and 'il.;:aintenance • 7.767.98 lazes acid Licenses . 2,628.20. Telephone -and Utilities .465.71 Total Expense M4 INCOME ,z4v 4 S12,4236.14 • .: • LE AND IF ••••••••••••••• •••••--7- • •• • • • .•-• • . CRNGSWT . FIER PUBLIC ; ti:1147,ANTS 41.. Smarr • . ' • .1011....). A.. Ts) tr. I • bo.eu_Is &aid Fen Pee ci, . .Nes* 1,.-riscssinwe 1 ,42; . Gross -17/..1t: (35-,..• • Lis, . .... I ' • I 55 :S s 1‘t- J. • • - 7L, 61 1 • i ..• • .;„ 51.1J 3.s _ -70.. 04- a) 6 21 .A) : 51. ';o) 2) 1,L.S, 62 (2 515,32)(seextge0 :16 6,514 , 12.4•4 ra t( nteca.S12- . 1-1 0 -13(7•7 4•F I RvvLue.da9tv ewt_p OLtd_L; y : E tcr vkiocksNec:UI . , . • - • _ ..c a CITY OF NEWPORT BEACH • REVENUES RECEIVED FRCM BALBOA FERRY OPERATION FOR T}E FOLLOWING YEARS. 1944 1945 1946 1947 148 1949 1950 1951 1952 1956 1957 1958 1959 156: 196_. 1962 $1,321.85 1,183.01 1,208.23 1,440.84 1,337.17 1,391.63 1,31.5.83 1,4/9.17 1,453.36 1,703.76 1,752.38 1,843.91 1,v70.62 2,,C+3.04 2,CS6.99 2,16.25 O,30 2,410.87 o6/9z'C° FINANCE DEPT. 4/5/63