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
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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:
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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.
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(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
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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.
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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
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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
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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.
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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
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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.
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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.
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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.
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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
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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
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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.
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PUBLIC WORKS DEPARTMENT
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DRAWN "Mkt DATE 77/521 •
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PUBLIC WORKS DIRECTOR
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NEWPo2T BAY
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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
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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 ✓
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3.; '4".. • • 't)9m: z..144
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. • .
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
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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....).
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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
. , . •
- • _
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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