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HomeMy WebLinkAboutC-2650 - License Agreement for the Use of the 29th Street Dockp i� AMENDMENT NO. FOUR TO LICENSE AGREEEMENT U BETWEEN THE CITY OF NEWPORT BEACH AND SCHOCK BOATS FOR THE USE OF THE 29TH STREET DOCK THIS AMENDMENT NO. FOUR TO LICENSE AGREEMENT ("Amendment No. Four") is made and entered into as of this 30th day of June, 2019 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and SAILS BY SCHOCK, INC, a California corporation ("Schock"), whose address is 2900 Lafayette Avenue, Newport Beach, California, 92663, and is made with reference to the following: RECITALS A. On December 6, 2007, City and Schock entered into a License Agreement ("Agreement') to allow Schock the continued use of the 29th Street Dock ("Premises") on a non-exclusive basis. B. On May 3, 2017, City and Schock entered into Amendment No. One to the Agreement to extend the term of the Agreement six (6) months. C. On November 13, 2017, City and Schock entered into Amendment No. Two to the Agreement to extend the term of the Agreement an additional six (6) months. D. On June 30, 2018, City and Schock entered into Amendment No. Three to the Agreement to extend the term of the Agreement an additional twelve (12) months. E. The parties desire to enter into this Amendment No. Four to extend the term of the Agreement an additional twelve (12) months NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 4 of the Agreement is amended in its entirety and replaced with the following: "Term: The term of the non-exclusive license granted hereunder (`Term") shall commence retroactively on July 1, 2007 (the "Commencement Date") and shall terminate on July 1, 2020, unless terminated earlier as set forth herein." 2. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] SAILS BY SCHOCK, INC Page 1 IN WITNESS WHEREOF, the parties have caused this Amendment No. Four to be executed on the dates written below. APPROVED AS TO FORM: CITY ATT RN Y'S OFFICE Date: 5 2E3 go 19 By: I,. LL r.6, City Attorney p ATTEST: !`02� Date: f By: ALOU- obm= Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: fns By: Grace K. Leung City Manager SCHOCK: SAILS BY SCHOCK, INC, a California corporation Date: G BY: Steven Schock Chief Executive Officer `a�W PpRT Date: 7 —� BYR th ScIfock 0qC/FOR�`P Secretary [END OF SIGNATURES] SAILS BY SCHOCK, INC Page 2 O V) 9 N cJ AMENDMENT NO. THREE TO LICENSE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND SCHOCK BOATS FOR THE USE OF THE 29TH STREET DOCK THIS AMENDMENT NO. THREE TO LICENSE AGREEMENT ("Amendment No. Three") is made and entered into as of this 30th day of June, 2018 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and SAILS BY SCHOCK, INC., a California corporation ("Schock"), whose address is 2900 Lafayette Avenue, Newport Beach, California 92663, and is made with reference to the following: RECITALS A. On December 6, 2007, City and Schock entered into a License Agreement ("Agreement') to allow Schock the continued use of the 29th Street Dock ("Premises") on a non-exclusive basis. B. On May 3, 2017, City and Schock entered into Amendment No. One to the Agreement to extend the term of the Agreement six (6) months. C. On November 13, 2017, City and Schock entered into Amendment No. Two to the Agreement to extend the term of the Agreement for an additional six (6) months. D. The parties desire to enter into this Amendment No. Three to extend the term of the Agreement an additional twelve (12) months. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 4 of the Agreement is amended in its entirety and replaced with the following: "Term: The term of the non-exclusive license granted hereunder ("Term") shall commence retroactively on July 1, 2007 (the "Commencement Date") and shall terminate on July 1, 2019, unless terminated earlier as set forth herein." 2. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Sails by Schock, Inc. Page 1 IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTO�RNEEY' � OFFICE Date: ��, - - " -, 0 Aaron C. Harp c)(0 IR -19 City Attorney Qtml� ATTEST - Date: Date: : hhg� �Ullnlll 1. UIVVVII City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: 'iT3 By: i? e"— Dave'I ff City Manager SCHOCK: SAILS BY SCHOCK, INC., a California corporation Date: ( - ;Z9 -� 8 BY��G��Z(/� Steven Schock Chief Executive Officer Date: C, 'g /7 By: Rdtfi Schock Secretary [END OF SIGNATURES] Sails by Schock, Inc. Page 2 CERTIFICATE OF INSURANCE CHECKLIST City of Newport Beach This checklist is comprised of requirements as outlined by the City of Newport Beach. " Date Received: Il/l/17 Dept./Contact Received From: Melissa Date Completed: 12/15/17 Sent to: Melissa By: Jan Company/Person required to have certificate: Sails by Schock Inc dba: Schock Boats Type of contract: I. GENERAL LIABILITY ® N/A EFFECTIVE/EXPIRATION DATE: 10/1/17 —10/1/18 ❑ No A. INSURANCE COMPANY: National Casualty Company ❑ Yes B. AM BEST RATING (A-: VII or greater): A+/ XV ❑ N/A C. ADMITTED Company (Must be California Admitted): Is Company admitted in California? ® Yes ❑ No D. LIMITS (Must be $1M or greater): What is limit provided? $1M/$2M+$4M Umb E. ADDITIONAL INSURED ENDORSEMENT — please attach ❑ Yes ❑ No F. PRODUCTS AND COMPLETED OPERATIONS (Must include): Is it included? (completed Operations status does not apply to Waste Haulers or Recreation) ❑ Yes ❑ No G. ADDITIONAL INSURED FOR PRODUCTS AND COMPLETED OPERATIONS ENDORSEMENT (completed Operations status does not apply to Waste Haulers) ❑ Yes ❑ No H. ADDITIONAL INSURED WORDING TO INCLUDE (The City its officers, officials, employees and volunteers): Is it included? ® Yes ❑ No I. PRIMARY & NON-CONTRIBUTORY WORDING (Must be included): Is it included? M Yes ❑ No J. CAUTION! (Confirm that loss or liability of the named insured is not limited solely by their negligence) Does endorsement include "solely by negligence' wording? ❑ Yes ® No K. ELECTED SCMAF COVERAGE (RECREATION ONLY): Z N/A ❑ Yes ❑ No L. NOTICE OF CANCELLATION: ❑ N/A ® Yes ❑ No II. AUTOMOBILE LIABILITY EFFECTIVE/EXPIRATION DATE: Not Required A. INSURANCE COMPANY: B. AM BEST RATING (A-: VII or greater) C. ADMITTED COMPANY (Must be California Admitted): Is Company admitted in California? D. LIMITS - If Employees (Must be $1M min. BI & PD and $500,000 UM, $2M min for Waste Haulers): What is limits provided? E LIMITS Waiver of Auto Insurance / Proof of coverage (if individual) (What is limits provided?) F. PRIMARY & NON-CONTRIBUTORY WORDING (For Waste N/A ❑ Yes ❑ No Haulers only): ® N/A ❑ Yes ❑ No G. HIRED AND NON -OWNED AUTO ONLY: ❑ N/A ❑ Yes ® No H. NOTICE OF CANCELLATION: ❑ N/A 0 Yes 0 No III. WORKERS' COMPENSATION EFFECTIVE/EXPIRATION DATE: 10/1/16 —10/1/17 A. INSURANCE COMPANY: Scottsdale Indemnity Company B. AM BEST RATING (A-: VII or greater): A+/ XV C. ADMITTED Company (Must be California Admitted): ® Yes ❑ No D. WORKERS' COMPENSATION LIMIT: Statutory ® Yes ❑ No E. EMPLOYERS' LIABILITY LIMIT (Must be $1 M or greater) $1,000,000 F. WAIVER OF SUBROGATION (To include): Is it included? ® Yes ❑ No G. SIGNED WORKERS' COMPENSATION EXEMPTION FORM: ® N/A ❑ Yes ❑ No H. NOTICE OF CANCELLATION: ❑ N/A ❑ Yes ❑ No ADDITIONAL COVERAGE'S THAT MAYBE REQUIRED IV. PROFESSIONAL LIABILITY ® N/A ❑ Yes ❑ No V POLLUTION LIABILITY 4/30/174/30/18 ROCKHILL INS CO AM Best Rate: A- / XII Non -Admitted $1,000,000 ❑ N/A ® Yes ❑ No V BUILDERS RISK HAVE ALL ABOVE REQUIREMENTS BEEN MET? IF NO, WHICH ITEMS NEED TO BE COMPLETED? ® N/A ❑ Yes ❑ No ® Yes ❑ No Agent of Alliant Insurance Services Date Broker of record for the City of Newport Beach RISK MANAGEMENT APPROVAL REQUIRED (Non -admitted carrier rated less than _ Self Insured Retention or Deductible greater than $ ) ❑ N/A ❑ Yes ❑ No Reason for Risk Management approval/exception/waiver: Approved: Risk Management * Subject to the terms of the contract. Date AMENDMENT NO. TWO TO LICENSE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND SCHOCK BOATS FOR THE USE OF THE 29TH STREET DOCK THIS AMENDMENT NO. TWO TO LICENSE AGREEMENT ("Amendment No. Two") is made and entered into as of this 13th day of November, 2017 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and SAILS BY SCHOCK, INC., a California corporation ("Schock"), whose address is 2900 Lafayette Avenue, Newport Beach, California 92663, and is made with reference to the following: RECITALS A. On October 6, 2007, City and Schock entered into a License Agreement ("Agreement') to allow Schock the continued use of the 29th Street Dock ("Premises") on a non-exclusive basis. B. On May 3, 2017, City and Schock entered into Amendment No. One to the Agreement to extend the term of the Agreement six (6) months. C. The parties desire to enter into this Amendment No. Two to extend the term of the Agreement an additional six (6) months. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 4 of the Agreement is amended in its entirety and replaced with the following: "Term: The term of the non-exclusive license granted hereunder ('Term") shall commence retroactively on July 1, 2007 (the "Commencement Date") and shall terminate on July 1, 2018, unless terminated earlier as set forth herein." 2. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: t1 f r4 M City Attorney ATTEST: Date: Zvi By: dr A� Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: 1 a1 'l �%;)-v4 By: Da iff City Manager SCHOCK: SAILS BY SCHOCK, INC., a California corporation Date: 1/ 1-7 - / % B y: Steven Schock Chief Executive Officer Date: l% By: � K R Sch ck Secretary [END OF SIGNATURES] Sails by Schock, Inc. Page 2 O V) 5 AMENDMENT NO. ONE TO LICENSE AGREEMENT i BETWEEN THE CITY OF NEWPORT BEACH AND SCHOCK BOATS v FOR THE USE OF THE 29TH STREET DOCK THIS AMENDMENT NO. ONE TO LICENSE AGREEMENT ("Amendment No. One") is made and entered into as of this 3rd day of May, 2017 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and SAILS BY SCHOCK, INC., a California corporation ("Schock"), whose address is 2900 Lafayette Avenue, Newport Beach, California 92663, and is made with reference to the following: RECITALS A. On October 6, 2007, City and Schock entered into a License Agreement ("Agreement") to allow Schock the continued use of the 29th Street Dock ("Premises") on a non-exclusive basis. B. The parties desire to enter into this Amendment No. One to extend the term of the current Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 4 of the Agreement is amended in its entirety and replaced with the following: "Term: The term of the license granted hereunder ("Term") shall commence retroactively on July 1, 2007 (the "Commencement Date") and continue for a period of five (5) years, unless terminated earlier as set forth herein. This Agreement shall automatically be extended, on the same terms and conditions as set forth in this Agreement, for one (1) term of five (5) years ("Renewal Term") unless at least thirty (30) days prior to the expiration of the Term, Schock notifies City in writing of Schock's intention not to extend this Agreement and by the end of the Term, Schock also complies with the surrender conditions of Section 20 below. Notwithstanding the above, this Agreement shall not be automatically extended if Schock has defaulted in the performance of any term or condition of the Agreement and has failed to cure such default after notice as provided in this Agreement. Notwithstanding the above in this Section 4, at the end of the Renewal Term, this Agreement shall automatically be extended, on the same terms and conditions as set forth in this Agreement, for one (1) additional term of six (6) months ("Additional Term"), subject to the termination provisions in Section 16 hereof." 2. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Sails by Schock, Inc. Page 2 IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTOR _ EY' OFFICE Date: a By: Aaron C. Harp cAM o�lziII City Attorney ATTEST: Date: �• c By: -64 — Leilani I. -Brown City Clerk RN%P' A p CITY OF NEWPORT BEACH, a California municipal corporation Date: 1; y-31 -1 1 Dave Kiff City Manager SCHOCK: SAILS BY SCHOCK, INC., a California corporation Date: By• Steven Schoc Chief Executive Officer Date: !J'- 30 -/ 7 By: s;e�zrl R th Schock Secretary [END OF SIGNATURES] Sails by Schock, Inc. Page 3 Final, 12-5-07 0119140 &1 11 This License Agreement ("Agreement") is entered into this day of , 2007 by and between the City of Newport Beach ("City"), a municipal corporation, and Sails by Schock, Inc., a California corporation , whose address is 2900 Lafayette Avenue, Newport Beach, California 92663 ("Schock"). Schock and City are each a "Party" and together the "Parties" to this Agreement. IVx]11r_1A-j A. City 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. City 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. City is the owner of approximately sixty-six linear feet (66') of dock, located on tidelands, with floats and access ramps located at the end of 29th Street, as shown on Exhibit "A," attached hereto and incorporated in full by this reference (the "29th Street Dock" or the "Premises") ; D. Schock conducts a boat sales and repair business at 2900 Lafayette Avenue and uses the 29th Street Dock to dock its boats; E. City has hired an appraiser to study the fair market value of the use of its tidelands, including the use contemplated in this Agreement. The appraiser has determined that the fair market value for Schock's use is Twenty and no/100 Dollars ($20.00) per lineal foot per month; F. City and Schock previously entered into an agreement dated May 29, 1987 (the "1987 Agreement"), for Schock's use of the 29th Street Dock in connection with its boat sales and repair business. The 1987 Agreement expired on April 30, 1997. Between May 1, 1997 and April 30, 1998, Schock continued to use the th •Street Dock underof - 1987 Agreement. On December••: City and Schock entered into another agreement f• • of 29th StreetDock,agreement expired - 30, /16 SchockG. paid Three Thousand and 00/100 Do($3,000.00) for of 29th StreetDock from• •` December, 116and Three Thousand and 00/100 Do($3,000.00) of •th Street Dock from• • H. City and Schock desire to enter into this Agreement to allow Schock the continued use of the Premises on a non-exclusive basis, subject to the covenants and conditions set forth in this Agreement. In consideration of the mutual promises and obligations contained in this Agreement, the receipt and sufficiency of which is hereby acknowledged, City hereby grants to Schock the revocable right to temporarily occupy and use the Premises, and Schock accepts the same on the following terms and conditions: NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS: License: City grants a non-exclusive license ("License") to Schock for the term of this Agreement for Schock's boat sales and repair business. The License granted herein is subject to the terms, covenants and conditions hereinafter set forth, and Schock covenants, as a material part of the consideration for this License, to keep and perform each and every term, covenant and condition of this Agreement. 2. Use of the Premises: Schock's use of the 29th Street Dock shall be limited to the retail sale of boats and the repair of boats, subject to the terms of this Agreement. Except as provided under this Agreement, Schock shall not make or permit to be made any alterations, additions or improvements to the 29th Street Dock, nor shall it paint, install decorations, or install any signs, lettering or advertising of any type, or any other type of visual displays, on or about the 29th Street Dock without the prior written consent of City. 3. Permits And Licenses: Schock, 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. 51 61 Term: The term of the license granted hereunder ("Term") shall commence retroactively on 11 - "Commencement ! and continue for a period of terminatedyears, unless earlier as set forth This Agreement shall automatically be extended, on the same terms and conditions as set forth in this Agreement, for one (1) term of five (5) years ("Renewal Term") unless at least thirty (30) days prior to the expiration of the Term, Schock notifies City in writing of Schock's intention not to extend this Agreement and by the end of the Term, Schock also complies with the surrender conditions of Section 20 below. Notwithstanding the above, this Agreement shall not be automatically extended if Schock has defaulted in the performance of any term or condition of the Agreement and has failed to cure such default after notice as provided in this Agreement. License Fee: a. Commencing July 1, 2007, and on the first (1S) of each month thereafter during the Term and Renewal Term, Schock shall pay the "License Fee", as defined below, to City. b. The monthly License Fee shall be: July 1, 2007 — June 30, 2008: $660.00 July 1, 2008 — June 30, 2009: $11320.00 C. Upon the third (3nd) anniversary of the Commencement Date and upon each anniversary of the Commencement Date thereafter, the License Fee shall be adjusted in proportion to changes in the Consumer Price Index. Such adjustment shall be made by multiplying the original License Fee 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 Commencement Date. For example, if the adjustment was to occur effective July 1, 2009, the index to be used for the numerator is the index for the month of April 2009 and the index to be used for the denominator is the index for the month of April 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 the Los Angeles Anaheim Riverside Metropolitan Area, 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 I.. .: • in such _ index. no event, _ • _ _ shall the amount payable under this Agreement be reduced below the License Fee in effect immediately preceding such adjustment. . A ten percent (10%) penalty shall be added to the License Fee if not received by City 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 (1 Y2%) per month or any portion of a month until paid in full. 6. Maintenance Schock shall be responsible for maintenance of the Premises, including pier, gangway, float and pile. Schock's obligation to maintain the Premises shall include a regular preventative maintenance program, together with routine repairs caused by normal wear and tear, to be provided by a licensed service company acceptable to City. Schock shall obtain all required Building permits necessary for such repair. City shall be entitled, with a Schock representative, to inspect the 29th Street Dock for compliance with the terms of this Agreement, and with all applicable Federal, State and local (including those of the City) government regulations. 7. Services to be Performed by Schock In addition to the payment of the License Fee, Schock shall also: a. Maintain the 29th Street Dock in a safe and working condition; b. Maintain vehicle access on surrounding public streets by complying with City of Newport Beach Municipal Code parking regulations; and C. Prohibit all vessels (owned and under the care of Schock) from being moored overnight at the 29th Street Dock without prior written permission from City. Schock further agrees and understands that the 29th Street Dock is and continues to be public property and that the public shall not be denied access to and use of the 29th Street Dock. 8. Standard of Care: Schock agrees to perform all services required hereunder in a manner commensurate with community professional standards. 9. Acceptance of Condition of Premises: Schock shall accept the 29th Street Dock in "as is" condition, with no warranty, 4 express • • from the City I to any latent, patent, foreseeable I •. unforeseeable condition of the 2 9th Street Dock. Nothing herein shall be deemed to create a leasehold interest, easement or any property right, or to grant any possessory or other interest in the 29th Street Dock, other than a revocable license to use and access the 29th Street Dock for the term set forth in this Agreement. 11. Reservation of Rights: Schock understands, acknowledges and agrees that any and all authorizations granted to Schock under this Agreement are non-exclusive and shall remain subject to all prior and continuing regulatory and proprietary rights and powers of City to regulate, govern and use City property, as well as any existing encumbrances, deeds, covenants, restrictions, easements, dedications and other claims of title that may affect City property. 12. Inspection: City shall be entitled to inspect the 29th Street Dock for compliance with the terms of this Agreement, and for compliance with all applicable Federal, State and local (including those of the City) government laws, statutes, ordinances, rules and regulations. City may exercise these inspection rights at any time without notice. 13. City Retention Rights: Schock's right to use the 29th Street Dock during the Term of this Agreement shall be subordinate and junior to the rights of City to use and occupy the 29th Street Dock for any purpose that does not interfere with Schock's use. 14. Prohibition Against Transfers: Schock shall not assign, sublease, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise. Any attempt to do so without the prior written consent of City shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest under this Agreement of such attempted assignment, hypothecation or transfer. Schock is also prohibited against leasing, renting, transferring or assigning any space located at the 29th Street Dock to any other person or entity for any reason whatsoever. The sale, assignment, transfer or other disposition of any of the issued or outstanding capital stock of Schock, or of the interest of any general partner or joint venture or syndicate member or cotenant if Schock is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Schock, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power of the corporation. 15. Taxes: Schock shall pay all possessory interest taxes, property taxes, real property taxes, fees and assessments which may at any time be imposed or levied by any public entity and attributable to Schock's use of the 29th Street Dock. City hereby gives notice to Schock, 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 Schock. 16. Termination: a. In the event Schock fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Schock shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of five (5) days after Schock receives written notice of default, specifying the nature of such default and the steps necessary to cure such default, City may terminate the Agreement by giving written notice to Schock thereof. b. Notwithstanding Section 16(a) above, either party shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving thirty (30) days' prior written notice to the other party as provided herein. Upon termination of this Agreement, Schock shall pay to City that pro -rated portion of fees specified in this Agreement that is unpaid prior to the effective date of termination. 17. Independent Parties: City and Schock intend that the relationship between them created by this Agreement is that of Licensor -Licensee. The parties intend and agree that at all times during the term of this Agreement, Schock shall have sole legal responsibility to remit all federal and state income and social security taxes, to provide for workers compensation and unemployment insurance, and to provide liability insurance in amounts as required by City. 18. Indemnification: To the fullest extent permitted by law, Schock hereby agrees to defend, indemnify, and hold City 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 its use, maintenance, repair or occupation of the Premises, or any acts or omissions, intentional or negligent, of Schock 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 City, its officers, agents and employees. 19. Insurance: Without limiting Schock's indemnification of City, Schock 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 City. A. Certificates of Insurance. Schock shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City 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 the City's Risk Manager. D. Coverage Requirements. i. Workers' Compensation Coverage. Schock 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, Schock shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non -renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agre'... .L to waive all rights of subrogation against City, its officers, agent employees and volunteers for losses arising from work performe by Schock for City. General Liability Coverage. Schock shall maintain commercial general liability insurance in an amount not less than One Million Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. E. Endorsements. Each general liability insurance policy shall be endorsed with the following specific language: The City, 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 Schock. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from Schock' s operations. Any insurance maintained by City, including any self-insured retention City 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. iv. The insurer waives all rights of subrogation against City, 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 City, 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 City. TimelZ Notice of Claims. Schock shall give City prompt and timely notice of any claim made or suit instituted arising out of or resulting from Schock's performance under this Agreement. G. Additional Requirements. If the insurance is written on a Claims Made Form, then, following termination of this Agreement, said insurance coverage shall survive for a period of not less than five (5) years; ii. The insurance policies shall provide for a retroactive date of placement coinciding with the effective date of this Agreement; iii. The insurance shall be approved as to form and sufficiency by the City's Risk Manager and the City Attorney. 20. Hazardous Substances: a. From the date of execution of this Agreement and throughout the Term, Schock shall not use, store, manufacture or maintain on the 29th Street Dock any Hazardous Substances. 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. ("CERLCA"); 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 Schock set forth in Section 18 in this Agreement, Schock agrees to indemnify, defend with counsel reasonably acceptable to City, protect, and hold harmless the City, 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 City, 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 29th Street Dock provided 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 California Health and Safety Code Section 25364, to insure, protect, hold harmless, and indemnify City for any claim pursuant to the Hazardous Substance Laws or the common law. d. City agrees that City 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 29th Street Dock in violation of any law or regulation. City and Schock 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, Schock shall surrender and vacate the 29th Street Dock and deliver possession thereof to City on or before the termination date free of any Hazardous Substances released into the environment at, on or under the 29th Street Dock that are directly attributable to Schock. 21. Compliance with Laws: Schock, 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. Schock shall not occupy or use the 29th Street Dock, or permit any portion of the 2 9th Street Dock to be occupied or used for any use or purpose that is unlawful in part or in whole, or deemed by City to be disreputable in any manner or extra hazardous in any way. 22. Not Agent of City: Neither anything in this Agreement nor any acts of Schock shall authorize Schock or any of its employees, agents or contractors to act as agent, contractor, joint venturer or employee of City for any purpose. 23. No Third Party -Beneficiaries: City and Schock 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. 24. 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 City: Administrative Services Department Revenue Division Attention: Income Contract Administrator City of Newport Beach PO Box 1768 3300 Newport Boulevard Newport Beach, CA, 92658 To Schock: Sails by Schock Marie Schock 2900 Lafayette Avenue Newport Beach, CA 92663 25. Entire Agreement/Amendments: a. The terms and conditions of this Agreement, all exhibits attached hereto, and all documents expressly incorporated by reference, represent the 11 M 27. entire Agreement of the parties with respect to the subject matter of this Agreement. • This written Agreement• •' any and all prior agreements,oral or written, regarding the subject matter between Schock and the City. 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. . The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by Schock and City. 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. 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. 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. 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. City Business License: Schock shall obtain and maintain during the duration of this Agreement, a City business license as required by the Newport Beach Municipal Code. 12 9MINIV Me IT OF PI 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 • Orange. 30. 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. 31. Time is of the Essence: Time is of the essence for this Agreement. [signature page follows] 13 go IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate on the date and year first written herein. City of Newport Beach A Municipal Corporation we7-�,e- omer Bludau, City Manager Assistant City Attorney 14 Sails by Schock, Inc. a California coraarAtion M Name: fees l &a �t'►r� Title: /a --1Y- ai Date: By: Name: Title: Date: C -also LICENSE AGREEMENT This AGREEMENT, entered into this I L02' day of 1998, by and between the CITY OF NEWPORT BEACH, a municipal corporation (hereinafter referred to as `City "), and SCHOCK BOATS, a California Corporation (hereinafter referred to as "Schock ") whose address is 2900 Lafayette Avenue, Newport Beach, California, 92663, and is made with reference to the following: RECITALS A. City 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. City is owner of approximately 57' of dock with floats and access ramps located at the end of 29`h Street. City dock, floats and access ramps are shown on Exhibit "A" ("29' St. Dock "). C. Schock conducts a boat sales and repair business at 2900 Lafayette Avenue. D. City and Schock entered into an Agreement dated May 29, 1987 for use of the 29th St. Dock, which Agreement expired on April 30, 1997. Between May 1, 1998 and April 30, 1998, Schock continued to use the 29th St. Dock under the terms of the 1987 Agreement. E. City and Schock desire to enter into an Agreement to allow Schock the use of the 29th St. Dock effective May 1, 1998. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERMS The term of this License Agreement shall be effective as of the 18' day of May 1998 and shall terminate on the 30th day of June 2006, unless terminated earlier as set forth herein. 2. LICENSE GRANT City grants to Schock a license to the use of the 29"' St. Dock for Schock's boat sales and repair business upon terms and conditions of this Agreement. 1 0 0 3. SERVICES TO BE PERFORMED BY SCHOCK Schock shall: a. Maintain the 29" St. Dock in a safe and working condition. b. Pay to City fees in the amount of six thousand dollars ($6,000) per year to be used by City to repair and replace boats and materials for the City sailing program. Payment shall be made biannually with first payment of $3,000. due within ten (10) days of City Council approval of this Agreement, the second payment of $3,000.00 due on January 1, 1999, and $3,000.00 each July 1st and January 1st thereafter. Commencing on July 1, 2001, Schock agrees to pay increased fees adjusted to the fair market value established for rental rate per lineal foot of comparable facilities. In addition, Schock agrees to pay an additional $1,000. for May and June of 1998, at the same time first payment is due. C. Maintain vehicle access on surrounding public streets by complying with City of Newport Beach Municipal Code (NBMC) parking regulations. d. Prohibit all vessels from being moored overnight at the 29'" Street Dock without prior permission from City. Schock further agrees and understands that the 29" Street Dock is and continues to be public property and that the public shall not be denied access to and use of the 291" Street Dock. 4. STANDARD OF CARE 5. Schock agrees to perform or pay for all services, materials hereunder in a manner commensurate with the community professional standards and agrees that all services will be performed by qualified and experienced personnel or companies who are not employed by City nor have any contractual relationship with City. City and Schock intend that the relationship between them created by this Agreement is that of Licensor - Licensee. The parties intend and agree that al all times during the performance of services pursuant to this agreement, Schock shall have sole legal responsibility to remit all federal and state income and social F 0 • security taxes, to provide for workers compensation and unemployment insurance, and to provide liability insurance in amounts as required by City. 6. INDEMNIFICATION AND INSURANCE Schock shall indemnify and hold harmless City, its City Council, boards and commissions, officers and employees from and against any and all loss, damage, liability, claims, suites, costs and expenses whatsoever, including reasonable attorneys' fees, regardless of the merit of any such claim or suit arising from or in any manner connected to Schock's use, maintenance and repair of 29th St. Dock pursuant to this Agreement. City shall indemnify and hold harmless Schock, its officers and employees from and against any and all loss, damage, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees, regardless of the merit of any such claim or suit arising from or in any manner connected to City's negligent performance of services or work conducted or performed pursuant to this Agreement. Schock shall furnish to City with certificates showing current insurance coverage of a minimum of one million dollars ($1,000,000) in general commercial liability and Workers' Compensation (as required by State Law). The commercial liability policy shall be issued by an insurance company licensed to sell insurance in the State of California and shall carry a special endorsement naming City as additional insured. All insurance shall be maintained for the term of the Agreement. 7. PROHIBITION AGAINST TRANSFERS Schock shall not assign, sublease, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. Schock understands and agrees that this Prohibition Against Transfers includes, but is not limited to, the Prohibition against leasing, renting, transferring or assigning any space located at the 29'" Street Dock to any other person or entity for any reason whatsoever. 3 The sale, assignment, transfer or other disposition of any of the issued or outstanding capital stock of Schock, or of the interest of any general partner or joint venture or syndicate member or cotenant if Schock is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Schock, shall be construed as an assignment of this Agreement. Control means fifty percent (50 %) or more of the voting power of the corporation. 8. PERMITS AND LICENSES Schock, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, licenses and certificates that may be required in connection with the performance of services hereunder. 9. RECORDS Schock shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Schock shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. 10. NOTICES All notices, demands, request or approvals to be given under this Agreement, shall be given in writing and conclusively shall be deem served when delivered personal or on the second day after the deposit thereof in the Unites States mail postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals from Schock to City shall be addressed to City at: Newport Beach City Hall 3300 Newport Blvd. P.O. Box 1768 Newport Beach, CA, 92658 -8915 Attention : Community Services Department Ell 0 All notices, demands, requests, or approvals from City to Schock shall be addressed to Schock at: Schock Boats 2900 Lafayette Avenue Newport Beach, CA, 92663 11. TERMINATION (a) In the event Schock hereto fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Schock shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of five (5) days after Schock receives written notice of default, specifying the nature of such default and the steps necessary to cure such default, City may terminate the Agreement forthwith by giving to Schock written notice thereof. (b) Notwithstanding section 11(a), above, either party shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving thirty (30) days' written notice to the other party as provided herein. Upon termination of this Agreement, Schock shall pay to the City that pro -rated portion of fees specified in this Agreement that is unpaid prior to the effective date of termination. 12. COMPLIANCES Schock shall comply with all laws, State or Federal and all ordinances, rules and regulations enacted or issued by City. 13. WAIVER A waiver by City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein whether of the same or a different character. 14. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto and all preliminary negotiations and agreements of whatsoever kind or 5 9 0 nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effective only by written execution signed by both City and Schock. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first above written. CITY OF NEWPORT BEACH, a Municipal rporation By: Mayor APPROVED S TO FORM: By:_� Robin L. Clauson, Assistant City Attorney SCHOCK BOATS a California Corporation a,f'y.IV ATTEST: By: �� AAI� r i / . lVW &' LaVonne Harkless, City Clerk F:\ cat\ da \ks\Shared\Ag \Schock \071399.doc 11 • • c - ?k�-o AGREEMENT THIS AGREEMENT, entered into this -294L day of May, 1987, by and between the CITY OF NEWPORT BEACH, a municipal corporation (hereinafter referred to as "City "), SAILS BY SCHOCK, a California Corporation doing business as SCHOCK BOATS, whose address is 2900 Lafayette Avenue, Newport Beach, California, 92663 (hereinafter referred to as "Schock "), is made with reference to the following: RECITALS: A. The City 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 the City. B. Schock conducts a boat sales and repair business and has offered to give boats to the City for use in the intructional sailing program conducted by the Parks, Beaches and Recreation Department. C. The City desires to enter into an Agreement for the provision of instructional boats. D. Schock desires to enter into an Agreement for use of the public street end at 29th Street and adjacent floats and access ramps. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: -1- 0 0 I . TERM The term of this Agreement shall commence on the 1st day of May, 1987, and shall terminate on the 30th day of April, 1997, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED BY SCHOCH Schock shall perform the following services: a. Maintain in a safe and working condition all floats and access ramps constructed as public property at the end of 29th Street (hereinafter 1129th Street Ramp "). b. Annually provide to the Parks, Beaches and Recreation Department a total of five (5) Sabots and four (4) Lido 14's for the first year of this Agreement for use in the instructional sailing program. The number of Lido 14's will be reserved to two (2) for the remainder of the term of this Agreement. c. Provide maintenance and repair of sailboats. Schock's cost for the maintenance and repair shall not to exceed five - hundred dollars ($500.00) per year. d. Maintain vehicle access on surrounding public streets by parking all vehicles and trailers in a manner which will comply with City Municipal Code parking regulations. e. Prohibit all vessels from being moored over night at the 29th Street Ramp without prior permission from the City of Newport Beach. Schock further agrees and understands that the 29th Street Ramp is and continues to be public property and that the public shall not be denied access to the 29th Street Ramp. -2- 3 0 0 3. SERVICES TO BE PERFORMED BY CITY City shall perform the following services: a. Provide Schock with use of the floats and access ramps constructed at the end of 29th Street for the purpose of conducting business related to sales and repair services. b. Return to Schock a total of five (5) Sabots annually. Commencing in 1989, returning a total of two (2) Lido 14's for the remainder of the term of this Agreement. 4. STANDARD OF CARE Schock agrees to perform all services hereunder in a manner commensurate with the community professional standards and agrees that all services will be performed by qualified and experienced personnel who are not employed by the City nor have any contractural relationship with the City. 5. INDEPENDENT PARTIES City and Schock intend that the relationship between them created by this Agreement is that of independent contractor. The manner and means of conducting the work are under the control of Schock, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of Schock's services. None of the benefits provided by City to its employees, including but not limited to unemployment insurance, worker's compensation plans, vacation and sick leave are available from City to Schock, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other -3- 0 0 purposes normally associated with an employer - employee relationship. Payments of the above items, if required, are the responsibility of Schock. 6. HOLD HARMLESS Schock shall indemnify and hold harmless City, its City Council, boards and commissions, officers and employees from and against any and all loss, damage, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees, regardless of the merit of any such claim or suit arising from or in any manner connected to Schock's negligent performance of services or work conducted or performed pursuant to this Agreement. City shall indemnify and hold harmless Schock, its officers and employees from and against any and all loss, damage, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees, regardless of the merit of any such claim or suit arising from or in any manner connected to City's negligent performance of services or work conducted or performed pursuant to this Agreement. 7. INSURANCE On or before the commencement of the term of this Agreement, Schock shall furnish City with certificates showing the type, amount, class or operations covered, effective dates and dates of expiration of insurance coverage. Such certificates, which do not limit Schock's indemnification, shall also contain substantially the following statement: "The Insurance covered by this certificate will not be cancelled by -4- i 0 0 the insurer except after ten (10) days' written notice has been received by the City of Newport Beach. It is agreed that Schock shall maintain in force at all times during the performance of this Agreement all coverage of insurance required by this Agreement with an insurance company that is acceptable to the City of Newport Beach and licensed to do insurance business in the State of California. Schock shall maintain the following insurance coverage: A. WORKER'S COMPENSATION Statutory coverage as required by the State of California. limits: B. LIABILITY Comprehensive general coverage in the following minimum Bodily Injury: $250,000 each person $500,000 each occurrence $500,000 aggregate Property Damage: $100,000 each occurrence $250,000 aggregate A combined single limit policy with aggregate limits in the amount of $1,000,000 will be considered equivalent to the required minimum limits shown above. C. SUBROGATION WAIVER Schock agrees that in the event of loss due to any of the perils for which it has agreed to provide comprehensive general liability insurance, that Schock shall look solely to its insurance for recovery. Schock hereby grants to City, on behalf of any insurer providing comprehensive general liability -5- 0 0 insurance to either Schock or City with respect to the services of Schock herein, a waiver of any right of subrogation which any such insurer of Schock may acquire against City by virtue of the payment of any loss under such insurance. D. FAILURE TO SECURE If Schock at any time during the term hereof should fail to secure or maintain the foregoing insurance, City shall be permitted to obtain such insurance in Schock's name or as an agent of Schock and shall be compensated by Schock for the costs of the insurance premiums at the maximum rate permitted by law computed from the date written notice is received that the premiums have been paid. E. ADDITIONAL INSURED City, its City Council, boards and commissions, officers, and employees shall be named as an additional insured under all insurance coverages, except any professional liability insurance, required by this Agreement. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured; and an additional insured named herein shall not be held liable for any premium deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provided by this policy. -6- 7 • • F. LIMITATION OF INSURANCE City and Schock agree that the insurance provided under this Section shall not apply to any loss or damage to the boats provided under this Agreement. 8. PROHIBITION AGAINST TRANSFERS Schock shall not assign, sublease, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. Schock understands and agrees that this Prohibition Against Transfers includes, but is not limited to, the Prohibition against leasing, renting, transferring or assigning any space located at the 29th Street Ramp to any other person or entity for any reason whatsoever. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Schock, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Schock is a partnership or joint venture or syndicate or contenancy, which shall result in changing the control of Schock, shall be construed as an assignment of this Agreement. Control means fifty percent (50 %) or more of the voting power of the corporation. -7- 0 0 9. PERMITS AND LICENSES Schock, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, licenses and certificates that may be required in connection with the performance of services hereunder. 10. RECORDS Schock shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Schock shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. 11. NOTICES All notices, demands, requests or approvals to be given under this Agreement, shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals from Schock to City shall be addressed to City at: Newport Beach City Hall 3300 Newport Boulevard - P.O. Box 1768 Newport Beach, CA 92658 -8915 Attention: Parks, Beaches and Recreation Director -8- E • All notices, demands, requests, or approvals from City to Schock shall be addressed to Schock at: Schock Boats 2900 Lafayette Avenue Newport Beach, CA 92663 12. TERMINATION In the event Schock hereto fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Schock shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) days after receipt by Schock from City of written notice of default, specifying the nature of such default and the steps necessary to cure such default, City may terminate the Agreement forthwith by giving to Schock written notice thereof. Either party shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving thirty (30) days' written notice to the other party as provided herein. Upon termination of this Agreement, each party shall pay to the other party that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. 13. COST OF LITIGATION If any legal action is necessary to enforce any provision hereof or for damages by reason for an alleged breach of any provisions of this Agreement, the prevailing party shall -9- r be entitled to receive from the losing party all costs and expenses in such amount as the court may adjudge to be reasonable attorneys' fees. 15. COMPLIANCES Schock shall comply with all laws, state or federal and all ordinances, rules and regulations enacted or issued by the City. 16. WAIVER A waiver by the City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein whether of the same or a different character. 17. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions -lo- hereof. Any modification of this Agreement will be effective only by written execution signed by both City and Schock. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first above written. APPROVED AS TO FORM: cico I ni. r'oa a ko City Attorney ATTEST: City Clerk Z CITY OF NEWPORT BEACH, SAILS BY SCHOCK a Califorhia Cq�rporation doing b sines Schock Boats 2 -11-