HomeMy WebLinkAbout06 - Slip Rental Agreement at the Balboa Yacht Basin, Located at 829 Harbor Island DriveQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
April 11, 2023
Agenda Item No. 6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator,
Iwooding@newportbeachca.gov
PHONE: 949-644-3236
TITLE: Slip Rental Agreement with Sailing Fascination to Berth at the Balboa
Yacht Basin, Located at 829 Harbor Island Drive
ABSTRACT:
Sailing Fascination has operated its nonprofit sailing program for disabled individuals from
a boat slip in the marina at the City of Newport Beach (City) owned Balboa Yacht Basin
since 1996. The most recent slip rental agreement with Sailing Fascination is set to expire
on May 1, 2023. For the City Council's consideration is a new 5-year Slip Rental
Agreement (Agreement), under similar terms and conditions to the existing agreement,
including a request to waive City Council Policy F-7 for less than fair market value rent of
$1.00 per year.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Authorize the City Manager and City Clerk to execute a 5-year Slip Rental Agreement
by and between Sailing Fascination and the City of Newport Beach for use of slip B-1
at the Balboa Yacht Basin, in a form substantially similar to the agreement prepared
by the City Attorney; and
c) Approve a waiver of City Council Policy F-7 — Income and Other Property based on
the findings contained in this staff report and the Agreement, that charging less than
fair market rent promotes the City's goals to provide essential or unique services to
the community, that cannot otherwise be provided if full market rates were charged,
and based on the unique services provided by tenant, its board members are
appointed through a process that ensures board members maintain the requisite
experience and contributions to the tenant's operations.
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Slip Rental Agreement with Sailing Fascination to Berth at the Balboa Yacht Basin,
Located at 829 Harbor Island Drive
April 11, 2023
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DISCUSSION:
The Balboa Yacht Basin (BYB), located at 829 Harbor Island Drive, was built in Newport
Harbor in 1950 on City -owned uplands and State of California (State) owned filled tide
and submerged lands. The tidelands are subject to the trust statues and managed by the
City on the State's behalf under the terms of the Beacon Bay Bill. The BYB includes
several commercial office and retail uses, a boatyard, residential apartments, storage
garages, and a 172-slip public marina.
The BYB marina accommodates vessels from 20 to 75 feet in length, including the
37-foot slip B-1, which has a wide dock finger, is located a short distance from the
gangway ramp and parking lot, and is more accessible to wheelchairs, walkers, and those
needing physical support to get aboard a vessel. Slip B-1 is and has been occupied by
Sailing Fascination's owned vessel, a J-24 sailboat named Fascination2, since 1996.
Tenant Background
Sailing Fascination is a 501(c)3 non-profit organization that provides free boating safety
and sailing lessons to students with disabilities. Founded in 1996, by Tom Tolbert and
Jack Hester, Sailing Fascination's program was modeled after other non-profit groups in
the United States and around the world which promote that individuals with disabilities
have the capability to learn to sail, and should have access to programs that make sailing
accessible. In 2013, Sailing Fascination's program expanded to include war veterans
struggling with the effects of post -traumatic stress disorder.
The program has graduated more than 1,000 students since its launch in 1996 and sailed
with more than 36 students in 2022. In 2023, the program is scheduled to offer sailing
lessons three times per week and is expected to serve approximately 40 students. Each
student typically sails on four consecutive weekly outings, and then another student is
rotated into the program, which is provided free of charge to qualified candidates. Most
attendees are identified through the program's partnerships with the Orange County
Special Olympics teams, school districts' special education programs, Wounded
Warriors, Brain Treatment Center, United Cerebral Palsy of Orange County, and other
community organizations.
Staffed completely by volunteers, Sailing Fascination formed a relationship with OASIS
Sailing Club in 2007, which continues to provide a majority of the 25 volunteer skippers.
The volunteers also include veterans who have themselves graduated from the program,
ensuring its continued success. All of the crew skippers are evaluated and qualified before
they are assigned a sailing, based on the training elements and criteria of the OASIS
Sailing Club's Mate and Skipper's Manual.
Annual financial contributions from local businesses and foundations fund the program,
which has annual operating expenses typically less than $7,500, and are limited to boat
cleaning, repair and maintenance, insurance, and safety equipment. All maintenance of
the vessel is the responsibility of Sailing Fascination.
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Slip Rental Agreement with Sailing Fascination to Berth at the Balboa Yacht Basin,
Located at 829 Harbor Island Drive
April 11, 2023
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Sailing Fascination has occupied a slip at BYB since August of 1996, and a waiver of fees
has been granted by the City since May 1997 under a variety of slip use agreements. The
current agreement was approved by the City Council on April 9, 2013, and expires on
May 1, 2023. Sailing Fascination has met the objectives and requirements of the existing
slip rental agreement, including providing annual reports to the City, providing proper
insurance and indemnity, and operating in accordance with the terms of the agreement.
BYB Slip Rates
At the current slip rental rate of $41.67 per linear foot per month, a 37-foot slip such as
slip B-1, would rent for $1,541.79 per month, and produce annual revenue of $18,501.48.
Adjustments to the slip rental rates are due every year on July 1, pursuant to Resolution
No. 2010-134, adopted by City Council on December 6, 2010. With Sailing Fascination's
limited annual income and minimal operating expenses focused on vessel maintenance,
the tenant cannot afford to pay the current slip rental rates and requests to continue to
receive a fee waiver in exchange for providing free boating safety and sailing lessons to
disabled individuals and veterans.
City Council Policy F-7, Income and Other Property
Pursuant to City Council Policy F-7 - Income and Other Property (Policy) (Attachment C),
when less than fair market value rent is received, or the tenant is unable to comply with
Section F-7 of the Policy and a waiver is requested, staff believes the following findings
can be made:
1. Charging less than fair market rent by approving an annual rent of $1.00 per year,
which is below fair market value, promotes the City's goals to provide essential or
unique services to the community, that cannot otherwise be provided if full market
rates were charged. Specifically, the reduced rental rate promotes public
recreation facilities and marine services to the physically and intellectually disabled
public; and
2. The tenant's by-laws and charter documents do not provide for the election of
directors that allows members to vote, however, based on the unique services
provided by tenant, its board members are appointed through a process that
ensures board members maintain the requisite experience and contributions to
Sailing Fascination.
Summary of Terms
The proposed terms of the Agreement are summarized below:
The initial term is five (5) years, with one (1) five-year extension option, unless
terminated earlier as provided by the Agreement;
2. Rent shall be set at $1.00 per year, and in lieu of the payment of full fair market
rent, Sailing Fascination shall provide the program free of charge to a minimum of
forty (40) students per year;
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Slip Rental Agreement with Sailing Fascination to Berth at the Balboa Yacht Basin,
Located at 829 Harbor Island Drive
April 11, 2023
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3. Sailing Fascination shall provide certificates of insurance to the satisfaction of the
City's Risk Manager, naming the City as additional insured;
4. An annual report of the program income and expenses, an annual forecast, and
quarterly reports of the program participants must be maintained by Sailing
Fascination and submitted to the City.
5. Sailing Fascination must comply with the Balboa Yacht Basin Rules and
Regulations.
The Agreement has been reviewed by the City Attorney's Office and has been approved
as to form. Sailing Fascination has reviewed and approved the terms and executed the
Agreement.
FISCAL IMPACT:
The adopted budget reflects $1 per year rental revenue from Sailing Fascination for Slip
B-1 at the Balboa Yacht Basin. Should City Council approve the new Agreement at the
proposed rental rate of $1 per year, the revenue will be split between the General Fund
and Tidelands Fund in the Community Development Department, 01050505-551050 and
10050505-551050.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Slip Rental Agreement
Attachment B — Existing Slip Rental Agreement, dated April 9, 2013
Attachment C — City Council Policy F-7 — Income and Other Property
Attachment A
Slip Rental Agreement
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BALBOA YACHT BASIN
829 Harbor Island Drive
Newport Beach, CA 92660
949-673-0360
SLIP RENTAL AGREEMENT
THIS SLIP RENTAL AGREEMENT ("Agreement") is made as of this day of _,
2023 by and between the CITY OF NEWPORT BEACH, a California municipal
corporation and charter city ("City") and Sailing Fascination, a California nonprofit
corporation ("Tenant"); if more than one (1) person or entity, each shall be jointly and
severally liable and all are collectively referred to as "Tenant" herein.
City is the owner of certain property located at the BALBOA YACHT BASIN ("Basin"),
including several slips for mooring vessels, and several garage structures for storing
certain property as permitted by City. Such slips and garages hereinafter are referred to
as the "Slip," or "Garage," or if collectively, the "Premises."
City hereby grants permission to Tenant to rent the Premises as described below under
Section 2, which Premises may be revised from time to time pursuant to Section 7 of this
Agreement and Tenant hereby agrees to accept the Premises on a limited, non-exclusive
basis for the term specified, subject to all of the terms, covenants and provisions set forth
in this Agreement. Any revision to the Premises pursuant to Section 7 of this Agreement
shall be made in writing by the City's Property Manager, as defined herein.
This Agreement shall be administered by the Community Development Department. The
City's designee, Bellport Group, Inc., or any successor property management group as
appointed in writing by City, at City's sole and absolute discretion, shall be the duly
authorized property manager of the Basin ("Balboa Yacht Basin Manager"), and shall
have the authority to act for City under this Agreement. The Balboa Yacht Basin Manager
shall represent City in all matters pertaining to the management of all Tenant agreements
for any and all Premises, and to perform all the rights and obligations on behalf of City as
expressly set forth under this Agreement.
1. TENANT
L7 Tenant is Renting a Slip
(Check all that apply)
Name(s): Sailing Fascination
❑ Tenant is Renting a Garage
If Tenant is a corporation or other
entity, Tom Tolbert
Name of Registered Agent in
California:
Residence 6338 Residencia, Newport Beach, CA 92660
Address:
W.
Business 6338 Residencia, Newport Beach, CA 92660
Address:
Billing Address: 6338 Residencia, Newport Beach, CA 92660
Telephone: (949) 640- Business (949) 640- Cell #: (949) 402-6215
Home #: 1678 #. 1678
E-mail Address: tomornina(a.cox.net
Social
Driver's License State: CA Number: P0592412 Security/EIN 33-
Info: 0703660
Emergency Contact Nina Stanson Emergency (949) 640-1678
Name: Phone #:
2. DEFINITIONS AND TERMS
(a) SLIP.
Slip No. BB=1
Annual Slip Rent: $ 1.00 ("Slip Rent")
(Slip Rent is based on the longer of the slip length OR the actual measured length overall
("LOA") of the Vessel, as defined herein.)
First Month Prorated Slip Rent (if applicable): $ N/A
Security Deposit: $N/A (a sum equivalent to first and last month's Rent)
Key Deposit: $ N/A # of Keys: N/A Total Key Deposit: N/A
(b) GARAGE.
Garage No.: None
Monthly Garage Rent:$ N/A ("Garage Rent")
First Month Prorated Slip Rent (if applicable): $ N/A
Security Deposit: $ N/A (a sum equivalent to first and last month's Rent)
Key Deposit: $ N/A # of Keys: N/A Total Key Deposit: $ N/A
Tenant agrees to give City written notice of any change to any of the information in
this Section 2 within five (5) calendar days after the occurrence of any such change.
(c) CITY OFFICE: Notices to the City shall be sent by mail or in person to:
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City of Newport Beach
Attn: Real Property Administratorl00 Civic Center Drive P.O. Box: 1768
Newport Beach, CA 92660
Or at any such other place as may be designated by City in writing from
time to time.
3. VESSEL DESCRIPTION
Tenant must be the legal owner of the Vessel, or such owner's registered agent,
proof of which must be provided to City prior to execution of this Agreement.
Vessel Fascination2
Name:
Type
(Power/Sail):
Reg. CF/Doc. No.: 9463 SP
("Vessel") Please provide a copy of current
Documentation/Registration for file.
Sail Builder: J (Jacobson — J24)
Total Length: 24 feet Beam: 8 feet Draft: 4 feet
(including bowsprit, boom, boomkin, pulpit, swim step, boarding step outboard(s), outdrive(s),
davits/dinghy in davits, etc.)
Port/State
Registration:
of Newport Beach, CA
Legal Owner of Sailing Fascination
Vessel:
Bank, Lienholder, or other name appearing on evidence of title
Insurance Travelers
Carrier:
Insurance Agent: Starkweather & Shepley
Phone #: 800 854-4625 Insurance Policy 14R28413 Expiration
#: Date:
*In accordance with Exhibit 2, please provide a copy of current insurance certificate for file.
Tenant agrees to give City written notice of any change in any of the above information
within five (5) calendar days after the occurrence of any such change.
Tenant agrees to produce evidence of licensing, registration and insurance coverage for
the Vessel and provide copies of such certificates for the City's files when such coverage
or registration are changed or renewed or at the City's request. A photocopy of the current
year's registration is to be received by the City no later than March 31st of each year.
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4. TERM
This Agreement shall be for an initial term of five (5) years ("Initial Term"), commencing on
the 1 st day of May, 2023 ("Commencement Date"), and ending on the 1 st day of May, 2028.
Provided Vessel Owner is not then in default, and upon approval by the City, Vessel Owner
may extend the term of this Agreement for an additional five (5) years ("Option Term"),
commencing on expiration of the Initial Term, on the same terms and conditions as
contained in this Agreement. Vessel Owner must exercise the option by giving the City
written notice of its intention to do so at least three (3) months prior to the expiration of the
Initial Term.
Upon expiration of the Initial Term, or if extended, the Option Term, this Agreement shall
continue on a month -to -month basis until a new agreement can be reached, unless sooner
terminated. City may terminate this Agreement without cause at any time and in City's sole
and absolute discretion, by providing thirty (30) days prior written notice to the Vessel
Owner.
5. RENT, DEPOSITS AND FEES
The Slip Rent charged under this Agreement is for less than fair market value. In
exchange for less than fair market value, Tenant agrees to provide boating safety and
sailing instructions to a minimum of forty (40) physically and/or intellectually disabled
individuals per year. This instruction shall be provided free of charge and shall conform
to the curriculum outline set forth in the Scope of Services, attached hereto as Exhibit 3
and incorporated herein by this reference.
The City Council finds that charging less than fair market value Slip Rent for this use
promotes public recreation facilities and marine services to the physically and
intellectually disabled public and furthers the policies and objectives of the Tidelands
Grant. The City Council finds that charging less than fair market value Slip Rent for these
uses furthers the City's goals under the Tidelands Grant because such use benefits the
citizens of the State of California by allowing for continued operation and improved
accessibility to the physically and intellectually disabled public. Additionally, pursuant to
City Council Policy F-7(E)(5), the City Council further finds that charging less than fair
market value Slip Rent provides a benefit to the citizens of the City by providing an
essential or unique service to the community that might not otherwise be provided were
full market value of the property required.
(a) Rent. Tenant agrees to pay the Slip Rent and/or Garage Rent (hereinafter
"Rent") in annual installments, as applicable, payable in advance and due
on the first (1st) day of the annual term, in the amount as set forth above, or
as adjusted in accordance with the terms of this Section of the Agreement.
(i) Payment shall be paid in lawful money of the United States of
America. All Rent due and payable under this Agreement shall be
delivered to City by mail or in person to the City's Cashier's Office at
100 Civic Center Drive, Newport Beach, California 92660, or at any
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such other place as may be designated by City in writing from time
to time.
(ii) If Rent is received later than the fifth (51h) day of the month, there
shall be a delinquency charge equal to ten percent (10%) of the Rent
due. City and Tenant agree that this delinquency charge represents
a reasonable estimate of such costs and expenses and is fair
compensation to City for its loss suffered by Tenant's late payment.
(iii) Each installment shall bear interest if not promptly paid on or before
the date it becomes delinquent at the rate of ten percent (10%) per
annum from the date it becomes delinquent until it is paid by Tenant
to City. This interest charge shall be in addition to the delinquency
charge set forth in Section 5(a)(1)(ii).
(iv) Any other additional sum due to the City under this Agreement
(except the Security Deposit as set forth under Section 5(c) below)
that is not paid within the time period prescribed shall be subject to
a ten percent (10%) delinquency charge plus a ten percent interest
fee as set forth above under Sections 5(a)(1)(ii) and 5(a)(1)(iii).
(v) If Tenant's account is processed for collections or liens due to late
payments, an additional amount of thirty percent (30%) of the amount
due will be incurred by Tenant and due and owing to City.
(vi) At any time and for any reason, City may, at City's sole discretion,
require Tenant to enroll in City's Automatic Payment Processing
("APP") program, or other such automated payment programs
utilized by the City to ensure Tenant's timely payment. If Tenant
refuses to enroll in City's APP program, City may, at City's sole
discretion, terminate this Agreement.
(b) Returned Checks. Tenant shall be liable for a Twenty -Five Dollar and
00/100 ($25.00) service charge for the first (1st) returned check related to
any payment made by Tenant hereunder. Tenant shall be liable for result
in a Thirty -Five Dollar and 00/100 ($35.00) service charge for any additional
returned checks in the same calendar year (collectively, "Returned Check
Service Charges"). Returned Check Service Charges as described
hereunder are subject to the allowable amounts set forth under California
Civil Code Section 1719(a)(1) or its successor.
(c) Security Deposit. No Security Deposit shall be required
(d) Key Deposit. In addition to the Security Deposit, Tenant shall also deliver
to City, upon execution hereof, a key deposit ("Key Deposit") for the Slip
and, as applicable, the Garage, in the initial amount(s) set forth in Section
2 above, which shall be held by City as security for the key/access card to
the Basin, Slip, and Garage provided to Tenant. The Key Deposit shall be
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refundable to Tenant when such access device is returned to City upon
termination of this Agreement. The Key Deposit shall be permanently
retained by City in the event the access device is lost or damaged by
Tenant, in which event Tenant shall be required to deliver to City an
additional key deposit in the amount then -currently in effect for a
replacement access device.
(e) Adjustments. Upon at least sixty (60) calendar days' written notice to
Tenant, City may alter the amounts owed for late payments, returned
checks, key deposits, and any security deposit payable under this
Agreement.
6. CONDITIONS OF USE
(a) Slip Use.
(i) Tenant Compliance. Tenant shall perform and abide by each and
every condition of use contained in this Agreement and the attached
Rules and Regulations. At all times, Tenant shall comply with all
laws, rules and regulations of federal, state, and local entities,
including, but not limited to, municipal codes, environmental laws
and regulations and all regulations of the U.S. Coast Guard. Tenant
shall not cause or allow the Slip to be used for any purpose other
than the mooring or berthing of the specific Vessel described in
Section 3 above, and for other uses consistent with this Agreement.
(ii) Live Aboards. No person, including Tenant, shall live aboard the
Vessel while the Vessel is moored at the Basin or Slip. A person
shall be deemed to be living aboard the Vessel if such person
occupies the Vessel while moored at the Basin or Slip for more than
seventy-two (72) hours in any thirty (30) consecutive day period
during which this Agreement is in effect. Living aboard the Vessel
and/or providing false information with regard to live aboard status
shall be grounds for immediate termination of this Agreement and all
privileges at the Basin.
(iii) Sanitary Sewer System and City's Right to Inspect Vessel Prior to
Use of Slip. If the Vessel is equipped with a toilet, a marine head, or
any other permanent or temporary receptacle for human body
wastes, then the Vessel must comply with the provisions of Chapter
17.45 of the Newport Beach Municipal Code including, but not limited
to, being equipped with a holding tank designed to retain all contents
deposited in the receptacle until such time as the contents can be
discharged into a sanitary sewer system or discharged otherwise in
accordance with law. All sewage systems on Vessel must meet U.S.
Coast Guard guidelines and must be locked "shut" while Vessel is
berthed at the Basin. Tenant hereby agrees to permit City to board
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the Vessel and deposit dye tablets into and to inspect such holding
tanks from time to time upon demand by City.
(iv) Signs. Display of signs on the Vessel, any Basin property, or the dock
shall comply with the sign requirements found in the Newport Beach
Municipal Code, as amended from time to time or any successor
statutes thereto.
(v) Overhangs. No part of the Vessel shall at any time extend over any
portion of any dock at the Basin. No Vessel or part of the Vessel
may extend more than ten percent (10%) of the length of the Slip
beyond the end of the Slip. Additionally, the beam (width) of the
Vessel may not exceed, in any area of the Vessel, more than ninety
percent (90%) of the width of the Slip and must allow for installation
of adequate bumpers and appropriate other dock/vessel protection
as determined by the City in its discretion.
(vi) Securing Vessel. At all times during which the Vessel is berthed at
the Slip, Tenant shall cause it to be safely and properly secured to
its berth in a manner acceptable to City. In case of an emergency,
City is authorized to do whatever City deems appropriate, including
boarding the Vessel, moving the Vessel, utilizing auxiliary pumps or
taking any other action. If City deems it necessary to re -secure the
Vessel for any reason, Tenant agrees to pay City a reasonable
service amount for doing so plus the cost of all materials used
therefor. However, City assumes no responsibility for the safety of
the Vessel and Tenant agrees to release City, its City Council,
boards and commissions, officers, agents, and employees, and hold
City, its City Council, boards and commissions, officers, agents, and
employees harmless, from any liability for damage to the Vessel, its
equipment, and/or any property in or on the Vessel, by reason of
City's efforts to re -secure said Vessel or City's decision not to re -
secure Vessel.
(vii) Condition of Slip. Tenant hereby acknowledges that Tenant has
inspected the Slip and those portions of the Basin associated with
the Slip, including, without limitation, the floats, walks, gangways,
ramps and utilities, and knows the condition of the same, hereby
accepts the same in their existing condition "As Is" and agrees that
no statement, representation or warranty as to their condition has
been made by the City. City does not warrant that the utility services
will be compatible with the utility service requirements of the Vessel,
including electrical interconnection and polarity or the effect of
electrolytic action on the Vessel. It is understood that, from time to
time, in order to maintain, replace, and/or improve the docks, ramps
and other components of the Basin, it will be necessary to interrupt
power and other utility services provided to slips. Tenant therefore
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represents and warrants the Vessel does not leak and is otherwise
seaworthy in all respects, and that all Vessel batteries used to power
the Vessel's bilge pump(s) or other dewatering equipment shall be
maintained in a fully charged condition, sufficient that the Vessel can
be unplugged from dockside electricity for a minimum of ten (10)
calendar days, with sufficient battery power to drive bilge pump(s)
and any other dewatering equipment aboard the Vessel. Owner also
understands it is possible refrigeration systems might be temporarily
inoperable during periods of construction or renovation, and that
Tenant's responsibility to remove perishable food items from
refrigerators/freezers during such periods. If the City deems it
necessary or prudent to interrupt power for emergency or urgent
repairs, it may do so without prior notice to Tenant. In addition to the
other indemnification provisions herein, Tenant shall hold City, its
City Council, boards and commissions, officers, agents, and
employees harmless from and against liability arising or potentially
arising as a result of damage to the Vessel caused or occasioned by
power interruptions, unless occasioned by the City's gross
negligence or willful misconduct, which must be affirmatively
established and which may not be presumed.
(viii) Tenant's Care of Slip. Tenants shall not store or install any lockers
or boxes, small boats, dinghies, skiffs, bait tanks, boat gear, racks,
power lines, water hoses or other personal property whatsoever at
the Slip (other than aboard the Vessel), or on the docks or gangways
adjacent to the Slip. Tenant shall keep the Slip, docks and gangways
in a neat, clean and orderly condition, free and clear of all such items
other than approved power lines and water hoses in use connected
to proper receptacles at the Slip. No wheels, fenders, rubbing strips
or other cushioning devices may be attached to a dock for the
purpose of protecting hulls, without the prior written approval of City.
No alterations may be made to the docks by the Tenant. No
flammable, combustible or otherwise hazardous materials shall be
stored or left on the docks, including in approved dock boxes and
lockers, in the Basin. Tenant agrees to promptly make a written
report to City of any conditions existing on or about the Basin which
Tenant believes to be a dangerous condition, or which might develop
into a dangerous condition.
(ix) Commercial Enterprise. Tenant will not conduct or allow the Vessel
to be used for any commercial enterprise, including, but not limited
to, the chartering of Vessel, during the existence of this Agreement
without the prior written approval of City.
(x) Guests. Tenant shall be responsible for the conduct and control of
all guests, agents, contractors, employees, hired personnel and
other invitees (collectively, "Guests") while at the Basin. City
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reserves the right to regulate and prohibit entry into the Basin by
yacht brokers, contractors and yacht service personnel, and City may
require written authorization from Tenant. City may take reasonable
steps to ascertain that persons aboard the Vessel are authorized by
Tenant to be aboard. City may require any such Guests to sign -in at
the Basin office. Any Guest working on or otherwise providing
services for the benefit of a vessel located at the Basin may be
required to execute a Premises Access Agreement allowing for
Guests to enter the Basin. Tenant shall not loiter, nor permit its
Guests to loiter, on the Basin.
(xi) Use of Space by City. Tenant shall notify City, in writing, when
Tenant expects the Vessel to be away from the Slip for periods in
excess of thirty (30) consecutive days. Such notification shall include
the date the Vessel will leave the Slip and the date the Vessel will
return. City shall have the right to allow use of the Slip by another
vessel on a temporary basis without liability, credit or compensation
to Tenant during such periods. If Tenant returns prior to the
scheduled return date, City shall have the right to supply a substitute
slip to Tenant. In the event the Vessel is absent from the assigned
Slip for a period exceeding thirty (30) consecutive calendar days and
no written notification has been given to City as required herein, the
City may elect to terminate this Agreement without advance notice,
and assign the Slip to another vessel. In such event of non -
notification, Tenant shall remain liable, in addition to other amounts
then owing, to tender a sum equal to thirty (30) calendar days'
wharfage rent and to pay any costs incurred by City to remove and/or
salvage the Vessel.
(xii) Extended Vessel Absence.
(1) Vacancy without Notice: Continuous vacancy of the Slip for
more than thirty (30) consecutive calendar days is
conclusively presumed to constitute both an abandonment of
the Slip by Tenant and an immediate termination of this
Agreement, unless Tenant notifies City of its intent to
temporarily remove the Vessel from the Slip pursuant to
Section 6(b)(xi) above, and of Tenant's intention to maintain
this Agreement in full force and effect.
(2) Continuous Vacancy: This Agreement shall automatically
terminate without notice to Tenant if the Vessel does not
occupy the Slip for three (3) consecutive months and the
Tenant has not given notice as required pursuant to Section
6(b)(xi) above.
(xiii) Balboa Yacht Basin Rules and Regulations. Tenant agrees to use
the Premises and the Basin in accordance with the current version
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of City's Rules and Regulations for the Basin and any amendments
thereto, which are attached hereto as Exhibit 1 and incorporated
herein by reference, as an integral part of this Agreement. In the
event of a conflict between said Rules and Regulations and this
Agreement, the terms of this Agreement shall apply. City reserves
the right to modify its Rules and Regulations from time to time and
Tenant agrees to comply with all such modified Rules and
Regulations as of seven (7) calendar days after any such
modifications are posted at the City's Office at the Basin or as of ten
(10) calendar days after any such modifications are deposited in the
U.S. mail, postage prepaid, and addressed to Tenant at Tenant's last
known address on file with the City. Tenant further agrees to comply
with all laws, ordinances, rules, regulations and orders of any
government authority with respect to the Slip, Garage and the Basin.
Should any fine be imposed against Tenant and/or City due to any
failure by Tenant or its Guests to comply with the provisions of this
Section, Tenant shall be solely responsible therefor and shall pay
same within five (5) calendar days following demand or other
timeframe prescribed by law.
(b) Property Stored. Tenant shall not cause or allow the Premises to be used
for any purpose other than the storage of property wholly owned by, and
under the exclusive control of Tenant. Such property shall not include
collectibles, heirlooms, works of art or any property having special or
sentimental value to Tenant. Tenant waives any claim for emotional or
sentimental attachment to the stored property. Property is stored under the
sole supervision and control of Tenant. Tenant understands and expressly
agrees the Premises or Basin are not appropriate for storage of
irreplaceable property such as books, writings, objects which have an
unknown immediate resale market value, or objects which have a special
or emotional value to Tenant. Tenant further expressly agrees not to store
such types of property at the Premises or Basin. Tenant agrees, at Tenant's
sole expense, to maintain insurance on all property stored on the Premises
with actual cash value coverage against all perils, without exception.
Tenant's failure to maintain such insurance shall be a default under this
Agreement, and Tenant shall assume all risk of loss or damage that would
have been covered by such insurance. City does not exercise care, custody
or control over Tenant's stored property. Tenant agrees not to store
property with a total value in excess of Two Thousand Five Hundred Dollars
($2,500.00) and that in any event, the total value of Tenant's property shall
be deemed to not exceed Two Thousand Five Hundred Dollars ($2,500.00).
The provisions of this section do not constitute an admission that Tenant's
stored property has any value whatsoever.
(c) Assignment and Subletting. This Agreement grants to Tenant a limited
personal right, without any possessory interest, to berth the Vessel and use
the Garage. Accordingly, Tenant shall have no right or power to assign this
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Agreement or sublet the Slip, Garage, or any part thereof to any other
person or party whatsoever for use by any other vessel whatsoever. Tenant
is not permitted to represent or imply to any prospective buyer of the Vessel
that the sale of the Vessel includes a right to occupy a slip or garage at the
Basin. In the event Tenant elects to sell or otherwise transfer the Vessel,
Tenant agrees to inform all prospective buyers, transferees, and involved
brokers that this Agreement terminates automatically upon the transfer of
any ownership interest in the Vessel (or corporation, if the Vessel is
corporate -owned), and that the Vessel must (except as otherwise herein
provided) vacate the Slip prior to or simultaneous with the new owner
assuming ownership rights of the Vessel. In the event any new owner
wishes to maintain the Vessel at the Slip, City may, but is not required to,
consider permitting the Vessel to occupy the Slip, pursuant to the terms and
conditions as the City in its discretion mandate, including payment of a slip
transfer amount and execution of a separate Slip Rental Agreement. Before
City will consider permitting the Vessel to continue occupying the Slip
following transfer of ownership, the prospective new owner will be required
to complete an application for review and approval, which approval the City
shall be free to withhold for any reason or no reason. No attempted transfer
or assignment, whether voluntary or involuntary, by operation of law, under
legal process or proceedings, by receivership, in bankruptcy, or otherwise,
and no attempted subletting, shall be valid or effective, but shall
automatically terminate this Agreement. If any vessel other than the Vessel
described in Section 3 is moored at the Slip at any time, unless such vessel
is moored pursuant to a Temporary Slip Agreement with the City during that
period of time in Tenant's notification pursuant to Section 19(a)(i) below, it
shall constitute an immediate breach of this Agreement, and City may, at its
option, without waiving any other remedies it may have, immediately
terminate this Agreement upon written notice to Tenant. Similarly, Tenant
shall have no right or power to assign this Agreement or sublet the Garage
or any part thereof to any other person or party whatsoever.
(d) Electricity. Tenant shall be responsible for Tenant's pro rata share of all
electricity furnished to or used by Tenant on the Premises. Should City
submeter electricity services in the future, Tenant shall be responsible for
payment of all electricity furnished to or used on the Premises exclusively
by Tenant.
Electricity shall be supplied to the Slip and shall be billed to Tenant on a
monthly basis. Tenant shall bear the cost of all other utility services of
whatever nature that may be provided to the Slip or Garage.
7. CHANGE OF SLIP
City reserves the right to move or to require a Tenant to move the Vessel from the Slip to
another slip within the Basin and/or to secure the Vessel to another vessel which may be
in a less desirable location, either temporarily or permanently, at any time for any reason
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whatsoever, including, without limitation, for construction, emergency, safety,
maintenance, replacement, improvements, or other operational reasons. Tenant hereby
grants City permission to board the Vessel for said purpose. Tenant agrees to release
the City, its elected and appointed officials, boards and commissions, officers, agents,
employees and volunteers from any liability for loss or damage resulting or alleged to
result from any such movement of the Vessel or from any failure to move the Vessel.
In the event it becomes necessary to move the Vessel as described herein, except in an
emergency situation, City will provide Tenant with at least five (5) calendar days' advance
notice. In an emergency situation, City is not required to provide Tenant with any advance
notice. City shall have the right to reasonably determine what constitutes an "emergency
situation" pursuant to this Section. Within three (3) calendar days following Tenant's
receipt of such non -emergency notice, which will be presumed to be three (3) calendar
days after mailing, Tenant shall either: (1) within the period specified in the notice move
the Vessel to the space designated in the Basin; or (2) permit the City or its agent to move
the Vessel to the designated space, with actual costs to be borne by Tenant. Whether
Tenant moves the Vessel or the City or its agent does so, Tenant shall indemnify, protect,
defend, and hold City, its City Council, boards and commissions, officers, agents, and
employees harmless from and against any and all actual or potential liability that might
arise in connection with such movements. If Tenant elects not to move the Vessel or fails
to do so within the time period prescribed in the notice, City and/or its designated agent
shall be permitted to do so, without further notice to Tenant. Tenant understands that in
order to best accommodate the many Tenants with vessels at the Basin, it will be
necessary during the course of such work to temporarily locate the Vessel to another
place within the Basin, and that during such period the Vessel might be side -tied to a
wharf or rafted together with another vessel or vessels, and that as a result the Vessel
might not be readily accessible during the temporary period of relocation. Tenant agrees
to indemnify, protect, and defend City, its City Council, boards and commissions, officers,
agents, and employees from and against all actual or potential liability arising or
potentially arising as a result of the relocation, side -tying or rafting of the Vessel with other
vessels. Tenant further agrees that, in the event the Vessel is not readily accessible,
Tenant shall contact the City at least twenty-four (24) hours in advance of intended use
to obtain assistance in gaining access.
Tenant further understands that during periods of construction, renovation, or other
construction it will be difficult or impossible to accurately predict how long such work will
take, or how long the Vessel will be located in temporary accommodations, and therefore
Tenant agrees City; its City Council, boards and commissions, officers, agents, and
employees shall be held harmless from and against any liability actually or potentially
arising from such temporary displacement, including but not limited to liability for loss of
use. The City reserves the right, following completion of such work, to assign the Vessel
to any slip or space it deems suitable.
Any change in the Slip pursuant to this Section shall be approved in writing by the Balboa
Yacht Basin Manager, and Tenant shall comply with all the terms and provisions under
this Agreement as if the relocated Slip were first described under Section 2 of this
Agreement.
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8. HAZARDOUS MATERIALS
(a) Discharge of Waste/Hazardous Waste. City has a "no tolerance" policy with
respect to unpermitted discharges of waste into the waters of the Basin,
which are prohibited by law, this Agreement, and the City's Rules and
Regulations for the Basin. No hazardous material, explosives, corrosives,
flammable liquids, solvents, gasoline, paint, varnish, chemicals,
combustibles, illegal substances, or food items, may be stored in, at, or
about the Garage or the Basin. No substance or material of any kind,
including without limitation, waste matter from sinks, toilets, marine heads,
holding tanks, bilges, or any other receptacles shall be discharged into the
waters of the Basin. Tenant shall not release or permit to be released into
the water or upon the docks or land, by action or inaction, any waste or
environmentally objectionable substances including, but not limited to, oil,
paint or gasoline. Tenant shall immediately report any release to all
appropriate government agencies and to the Balboa Yacht Basin Manager,
and shall immediately implement necessary clean up and disposal of any
waste. Tenant shall be responsible for the prompt payment of all costs
associated with clean up and disposal including costs of absorbent pads
and booms, oversight by government agencies and Harbor Resources
personnel, fines, penalties and legal fees. If City is not satisfied, at City's
sole discretion, with Tenant's actions in violating the terms of this paragraph
or in reporting and cleaning up a release, City may take any and all action
it deems appropriate including but not limited to ordering the Vessel
removed from the Basin, prohibiting the Vessel and Tenant from re-entry
into the Basin for a period of up to six (6) months, and immediate termination
of this Agreement. Tenant shall be liable for all costs and expenses
associated with the City's actions which shall be payable to the City
immediately upon receipt of an invoice from the City.
(b) Environmental Law. Tenant shall not engage in any activity at or about the
Basin that violates any Environmental Law (as defined below), and shall
promptly, at Tenant's sole cost and expense, take all investigatory and/or
remedial action required or ordered by any governmental agency or
Environmental Law for cleanup and removal of any contamination involving
any Hazardous Material created or caused directly or indirectly by Tenant.
The term "Environmental Law" shall mean any federal, state or local law,
statute, ordinance or regulation pertaining to health, industrial hygiene or
the environmental conditions on, under or about the Basin, including,
without limitation, (i) the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. Sections
9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976
("RCRA"), 42 U.S.C. Sections 6901 et seq.; (iii) California Health and Safety
Code Sections 25100 et seq.; (iv) the Safe Drinking Water and Toxic
Enforcement Act of 1986, California Health and Safety Code Section
25249.5 et seq.; (v) California Health and Safety Code Section 25359.7; (vi)
California Health and Safety Code Section 25915; (vii) the Federal Water
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Pollution Control Act, 33 U.S.C. Sections 1251 et seq.; (viii) California Water
Code Section 1300 et seq.; and (ix) California Civil Code Section 3479 et
seq., as such laws are amended and the regulations and administrative
codes applicable thereto. The term "Hazardous Material" includes, without
limitation, any material or substance which is (i) defined or listed as a
"hazardous waste", "extremely hazardous waste", "restrictive hazardous
waste" or "hazardous substance" or considered a waste, condition of
pollution or nuisance under the Environmental Laws; (ii) petroleum or a
petroleum product or fraction thereof; (iii) asbestos; and/or (iv) substances
known by the State of California to cause cancer and/or reproductive
toxicity. It is the intent of the parties hereto to construe the terms
"Hazardous Materials" and "Environmental Laws" in their broadest sense.
Tenant shall provide prompt written notice to City of the existence of
Hazardous Materials maintained by Tenant at the Basin and all notices of
violation of the Environmental Laws received by Tenant.
(c) City Inspection. City reserves the right to inspect and approve the condition
of the Vessel before Vessel Owner is permitted to locate the Vessel at the
Slip, and to immediately terminate (or decline to execute) this Agreement:
(1) if the Vessel is not in a condition that is, in the City's sole opinion,
satisfactory or (2) if the Vessel is not generally suitable to be located at the
Slip. City also reserves the right to require Vessel Owner to provide a copy
of a marine survey of Vessel detailing the condition of the Vessel, prepared
by an accredited marine surveyor within three hundred sixty five (365) days
preceding the City's request. City shall also be permitted upon the arrival
of the Vessel and from time to time thereafter, as the City may in its sole
discretion determine is necessary for purposes of health and/or safety, to
inspect the Vessel to evaluate overall condition. A failure to permit such
inspections will be regarded as a fundamental breach of the Agreement and
such failure will automatically terminate the City's obligation under the
Agreement.
9. TAXES, LICENSES AND OTHER OBLIGATIONS
(a) Payment of Obligations. Tenant shall promptly pay, when due, any and all
bills, debts, liabilities and obligations incurred by or charged to Tenant in
connection with Tenant's occupation and use of the Premises. However,
the provisions of this subsection shall not prevent Tenant from contesting
the validity of any lien, claim or demand, provided that in such event, Tenant
shall, at its expense, defend itself and City against the same and shall pay
and satisfy any adverse judgment that may be rendered before enforcement
against City or the Premises.
(b) Permits and Licenses. Tenant shall, at its sole expense, 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 under the terms and conditions of this Agreement.
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(c) Payment of Taxes. Tenant acknowledges that this Agreement may create
a possessory interest subject to taxation. Tenant shall pay, before
delinquency, all taxes, assessments, license fees and other charges
("Taxes") that are levied or assessed Tenant's interest in this Agreement or
any fixture, improvement, equipment and other property in and around the
Premises. Tenant shall pay directly to the appropriate taxing authorities all
Taxes at least ten (10) calendar days before delinquency and before any
fine, interest or penalty is due or imposed by operation of law. At City's
request, Tenant shall provide City with proof of payment of Taxes. Tenant
shall not be required to pay any Taxes based on City's ownership interest
in the Slips.
(d) Challenge to Taxes. Tenant shall have the right in good faith, at its sole
cost and expense, to contest the amount or legality of any Taxes including
the right to apply for reduction. If Tenant contests payment of Taxes,
Tenant's failure to pay the Taxes shall not constitute a default as long as
Tenant complies with the provisions of this Section. City shall not be
required to join in any proceeding or contest brought by Tenant unless the
Law requires joinder of the City and in that case City shall join in the
proceeding, permit it to be brought in City's name and shall execute any
necessary or appropriate document necessary so long as City is not
required to bear any cost or liability for payment of Taxes. Tenant shall, on
final determination of the proceeding or contest, immediately pay such
disputed tax and also discharge any decision or judgment rendered,
together with all related costs, charges, interest and penalties and provide
City with proof of Tenant's payment. Tenant shall Indemnify and hold
harmless the City, its City Council, boards and commissions, officers,
agents, and employees from and against any liability, claim, demand,
penalty, cost or expense arising out of or in connection with any contest or
proceeding prosecuted by Tenant pursuant to this Section.
(e) Security. The City may, but is not required to, provide security protection at
the Basin. If City elects to do so, it is understood that such protection is for
City's benefit alone and that City assumes no responsibility whatsoever for
the personal safety of Owner or any Guests, or for the protection of vessels
or anything aboard them. If the City elects to do so, it is understood such
security is solely for the protection of City's property. Tenant agrees to be
solely responsible for providing locks or other protection to the Vessel and
Garage as Tenant desires for securing access to the Vessel and Garage.
(f) Boat Shows and Similar Events. In addition to the other provisions of this
Agreement, in the event the City elects to participate in a boat show or
similar event which requires the use of slips at the Basin, Tenant agrees to
temporarily relocate the Vessel to another slip designated by the City,
without compensation. If the City is unable to accommodate the Vessel at
the Basin during a boat show or similar event, Tenant agrees to relocate the
Vessel to another marina or wharf designated by the City; in such event the
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City agrees to pay the wharfage rents at the marina or wharf to which the
Vessel is relocated. If the City wishes to use the Slip for a boat show or
similar event, it agrees to provide Tenant with written notice at least thirty
(30) calendar days in advance of the date when the boat show or similar
event is scheduled to begin.
(g) Right of Entry. City may, at City's option, enter upon the Premises (a) in the
event of an emergency, (b) to ensure compliance with the terms of this
Agreement, or (c) at any other reasonable time to examine and/or make
such repairs or perform such maintenance as City may deem necessary or
desirable, and to show the Basin to prospective purchasers, lenders or
lessees. Except in an emergency situation and as otherwise provided
herein, the City will give Tenant five (5) calendar days prior notice before
entry under this paragraph.
10. INSURANCE
Without limiting Tenant's indemnification of City, its elected or appointed officers, boards
and commissions, officials, agents, employees and volunteers, Tenant will obtain, provide
and maintain at its own expense during the Term of this Agreement, a policy or policies
of insurance of the type, amounts and form acceptable to City. The policy or policies shall
provide, at a minimum, those items described in Exhibit 2, attached hereto and
incorporated herein by reference.
11. INDEMNIFICATION
To the fullest extent permitted by law, Tenant shall indemnify, defend and hold harmless
City, its City Council, boards and commissions, officers, agents and employees
(collectively, the "Indemnified Parties") from and against any and all claims (including,
without limitation, claims for bodily injury, death or damage to property), demands,
obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties,
liabilities, costs and expenses (including, without limitation, attorney's fees,
disbursements and court costs) of every kind and nature whatsoever (individually, a
Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or
indirectly) to this Agreement; the damage or destruction to the Slip, Garage, Basin, or any
part thereof or any vessel in the Basin; any use of the Garage or any operation or
movement of Vessel; Tenant (or Tenant's principals, officers, agents, employees,
vendors, suppliers, consultants, subcontractors, Guests, anyone employed directly or
indirectly by any of them, or any person on the Vessel, the Garage, the Slip or Basin
claiming to be present through or under the permission or authority of Tenant or for whose
acts they may be liable) breach of any term of this Agreement, negligence, willful acts,
failure to comply with any law, rule and/or regulation of a federal, state, and/or local entity,
failure to comply with any of the attached Rules and Regulations, and/or other acts or
omissions including, but not limited to, Claims related to improperly connecting electrical
service from the common outlet to the Vessel, failure to turn off electrical, water or other
utility appliances or lights when not in use, theft, fire, collision, chafing, dock maintenance
or faulty repair, and/or littering of the Garage, Slip or adjoining water or common areas.
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Notwithstanding the foregoing, nothing herein shall be construed to require Tenant to
indemnify the Indemnified Parties from any Claim arising from the sole active negligence
or willful misconduct of the Indemnified Parties, which shall not be presumed and must
be affirmatively established. Nothing in this indemnity shall be construed as authorizing
any award of attorney's fees in any action on or to enforce the terms of this Agreement.
This indemnity shall apply to all claims and liability regardless of whether any insurance
policies are applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by the Tenant.
12. DAMAGE AND DESTRUCTION
(a) Tenant's Obligation. Tenant hereby agrees to pay on demand all
reasonable costs of repair or restoration resulting from any damage or
destruction to the Garage, Slip, Basin and any part thereof, or any vessels
in the Basin resulting from any use of the Garage, any operation or
movement of the Vessel or any other act or omission of Tenant and or any
person on the Vessel, Garage, or the Slip claiming to be present through or
under the permission or authority of Tenant, including without limitation,
damage or destruction resulting from improperly connecting electrical
service from the common outlet to the Vessel, failure to turn off electrical,
water, or other utility appliances or lights when not in use, and littering of
the Garage, Slip or adjoining water and common areas. City shall not be
responsible for any damage to Tenant's personal property caused by, but
not limited to, fire, flood, mildew, dust, water, or heat. Tenant shall promptly
notify City of any defective or dangerous conditions Tenant becomes aware
of.
(b) Effect of Damage or Destruction. In the event of damage to or destruction
of the Basin, Garage, or the Slip by fire, wind, flood, storm movement of
water, accumulation of silt, earthquake, tidal wave or any other cause or
causes that were not caused or related to Tenant or Tenant's principals,
officers, agents, employees, vendors, suppliers, consultants,
subcontractors, or Guests negligence or failure to act whether immediate
or over a period of time, City shall have the option to:
(i) Treat this Agreement as continuing and repair or restore the Basin,
Garage, or Slip to its condition before such damage or destruction
occurred within thirty (30) calendar days of the occurrence of the
same or, if insured, within thirty (30) calendar days after City received
permission from the insurer to proceed with repair or restoration; or
(ii) Terminate this Agreement and all further obligations hereunder of
either party by written notice to Tenant.
After the occurrence of such damage or destruction, the Tenant's obligation
to pay Rent hereunder may be abated in an amount which City, in its sole
discretion, shall determine to be proportionate to the area of the Premises
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rendered unfit for use by Tenant during the period of repair or restoration.
All repairs or restoration must be completed within thirty (30) calendar days
of the damage or destruction, must be approved by the City and must be
completed in a manner acceptable to the City. Under no circumstances
shall the City be held liable for any personal injury or property loss
occasioned by fire, wind, flood, storm movement of water, accumulation of
silt, earthquake, tidal wave or any other cause or causes of any kind
whatsoever that caused by or related to Tenant or Tenant's principals,
officers, agents, employees, vendors, suppliers, consultants,
subcontractors, or guests negligence or failure to act whether immediate or
over a period of time.
13. WASTE, QUIET ENJOYMENT
Tenant shall not commit or permit any waste upon the Slip or Garage or any nuisance or
other act or thing which may disturb the quiet enjoyment of any other Tenant or person in or
about the Basin. Violation of this provision shall be grounds for immediate termination of
this Agreement at the option of City. Tenant shall not use in any wasteful, unreasonable or
hazardous manner, any of the utilities furnished by the City.
14. LIMITATIONS ON CITY'S LIABILITY
(a) Iniury, Loss or Damage. Tenant agrees that City, its elected or appointed
officers, boards and commissions, officials, agents, and employees and
volunteers shall not be liable for any injury, including death, to Tenant or
any person, caused by any use of the Slip, the Garage, or the Basin, or
arising from any accident, fire or casualty thereon or from any other cause
or causes of any kind whatsoever; nor shall City, its City Council, its elected
or appointed officers, boards and commissions, officials, agents, employees
and volunteers be liable for any loss of, or any damage to, any property or
article belonging to Tenant.
(b) Other Limitations. Tenant also agrees that City, its elected or appointed
officers, boards and commissions, officials, agents, employees and
volunteers shall not be liable for, and this Agreement shall not be terminated
by, any interruption or interference with services or accommodations
caused by strike, riot, orders or acts of public authorities, national, state, or
local declarations of emergency, acts of other Tenants, accident, the
making of necessary repairs to the Premises or the Basin, or any other
cause beyond City's control.
15. DEFAULT
The occurrence of any one or more of the following events shall constitute a material
default and breach of this Agreement by Tenant:
(a) The vacating or abandonment of the Premises by Tenant for more than
thirty (30) consecutive days;
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(b) Failure of Tenant to make any payment of Rent, or any other payment
required to be made by Tenant hereunder as and when due where such
failure shall continue for a period of three (3) calendar days after written
notice thereof from City to Tenant.
(c) Failure by Tenant to observe or perform any of the covenants, conditions
and terms of this Agreement to be observed or performed by Tenant other
than described in (b) immediately above, where such failure continue for a
period of seven (7) calendar days after written notice thereof from City to
Tenant.
(d) Failure by Tenant to observe or perform any of the covenants, conditions
and terms of this Agreement to be observed or performed by Tenant other
than described in (b) and (c) that constitutes a threat to the safety of the
surrounding area, where such failure continues for a period beyond the time
prescribed by written notice thereof from City to Tenant.
16. REMEDIES FOR DEFAULT
(a) Possessory Lien. By execution of this Agreement, Tenant acknowledges
that pursuant to Harbors and Navigation Code Sections 491, 501 and/or the
Federal Maritime Lien Act (46 U.S.C. Sections 31301 of seq.) and by the
terms of this Agreement, City shall have a lien on the Vessel for money,
which may become due under this Agreement. Pursuant to said statutory
lien and the terms of this Agreement, City has the right to take possession
and control of the Vessel, secure the Vessel to the Slip, remove the Vessel
from the Slip, and/or store the Vessel at a location of the City's choosing.
So long as City continues to hold the Vessel, Tenant shall be deemed to be
responsible for all continuing charges and expenses.
(b) Other Remedies
If Tenant fails to pay Rent within the specified time due, cost of repair or
restoration or other amounts to be borne by Tenant or, in the event of any
other default of this Agreement by Tenant, City may, at its option, regard
this Agreement as continuing in force and recover from Tenant damages
caused by the Tenant's breach, including, without limitations, the right to
recover Rent due under this Agreement as the same shall accrue, and/or
terminate Tenant's right to use the Premises.
If Tenant fails to perform any of the terms, conditions and promises as set
forth in this Agreement that cannot otherwise be remedied within seven (7)
calendar days' after receiving written notice of such failure from City, City
may, at its option, without waiving any other remedies it may have,
immediately terminate this Agreement upon written notice to Tenant and
order that Tenant remove the Vessel from the Basin and all property from
the Garage. If the Vessel is not so removed or all such property is not
removed from the Garage, the Vessel will be regarded as a trespasser and
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wharfage rents will be due and owing at the then current daily/transient
vessel rates.
In the event of Tenant's default or termination of this Agreement is made
without removal of the Vessel, the City may suspend the right of the Tenant
to obtain access to the Basin, the Slip and the Vessel without the necessity
of the initiation of any legal proceedings.
In the event of Tenant's default or termination of this Agreement without
removal of property from the Garage, the City may proceed with lien
enforcement on Tenant's stored property. Tenant agrees that, because
actual damages for such lien enforcement are difficult to ascertain, Tenant
agrees to pay, as liquidated damages, and as additional rent, Twenty -Five
Dollars ($25.00) plus actual costs for each lien or preliminary lien notice
against Tenant. In the event Tenant fails to clear the lien on the stored
property in the manner and within the time limits allowed by California
Business and Professions Code Section 21700 et seq. and the Garage
reaches auction status, Tenant agrees to pay a standardized minimum
charge of One Hundred Dollars ($100.00) to cover costs of inventory,
advertising, and auctioning the liened goods.
The remedies herein above provided are not exclusive and City may pursue
any one or more of such remedies or any other remedies provided by law.
(c) No Waiver. The exercise or failure to exercise any remedy provided herein
or by law, for any breach of this Agreement shall not be deemed as a waiver
of City's rights, a continuing waiver, or a waiver of any other provision or
condition of this Agreement or the City's Rules and Regulations. Failure by
City to exercise any of its rights under this Agreement or City's acceptance
of money payment after default shall not be considered or construed to
waive any right of City or to affect any notice or legal proceedings given or
commenced. Nothing herein shall constitute a waiver of the rights of the
City to a maritime lien under state law or under the Federal Maritime Lien
Act.
17. TERMINATION
(a) In addition to the other rights of termination set forth herein, the parties
agree that this Agreement may be terminated at any time by either party
upon thirty (30) calendar days written notice to the other party.
(b) This Agreement shall, at the sole option of City, automatically and
immediately terminate at such time as Tenant sells, leases, charters or
otherwise transfers any or all of its interest in the Vessel to any other party,
whether or not such transfer is voluntary or involuntary by operation of law,
under legal process or proceedings, by receivership, in bankruptcy or
otherwise.
Page 20 of 36
6-25
Upon termination of this Agreement, Tenant shall remove the Vessel from the Slip,
remove all other of its personal property, if any, from the Garage and the Basin,
and surrender to the City the Slip, the Garage, and all keys to the City.
18. POST TERMINATION
At the expiration or earlier termination of this Agreement, Tenant shall surrender, at no
cost, to City the possession of the Premises. Tenant shall leave the surrendered
Premises, equipment and fixtures, in good and broom -clean condition, reasonable wear
and tear excepted. All property that Tenant is not required to surrender, but that Tenant
does abandon shall, at City's election, become City's property at expiration or termination.
City shall owe no compensation to Tenant for any personal property, equipment or fixtures
left at the Premises by Tenant more than fifteen (15) calendar days after the expiration or
termination of this Agreement.
If Tenant is not in breach of any term of this Agreement at the time of such termination or
expiration, City shall furnish Tenant with an itemized written statement of the basis for and
the amount of any amounts applied in accordance with this Agreement, including but not
limited to cleaning or repairs that were not otherwise reasonable wear and tear, and City
shall return any remaining portion of such Security Deposit, without interest, to the Vessel
Owner within sixty (60) calendar days after the Vessel has been permanently removed from
the Slip and/or any of Tenant's property has been removed from the Garage, and all keys
to the Basin have been returned to the City. Should Tenant fail to return deposit fees
pursuant to Section 5 of this Agreement, City shall only be required to refund the prorated
portion of the total Security Deposit at the time of termination or expiration of this Agreement.
The Key Deposit shall be permanently retained by City in the event the access device is
lost, damaged or not returned to City by Tenant within thirty (30) days after termination of
this Agreement.
19. NOTICES, DEMANDS, REQUESTS AND SERVICES OF PROCESS
(a) Notices, Demands and Requests. All notices, demands and requests which
may be, or are required to be, given pursuant to the provisions of this
Agreement may be delivered in person, by reputable courier, by overnight
delivery service, or by depositing in the U.S. Mail, first class postage
prepaid, and addressed as follows:
(i) If to City, at its address designated in this Agreement or to such other
person or to such other address as City may hereafter designate by
written notice.
(ii) If to Tenant, to Tenant at the residence, billing address and/or other
address designated in this Agreement or to such other address as
Tenant may hereafter designate by written notice. Notwithstanding,
it is Tenant's sole responsibility to notify City in writing of any change
of Tenant's address, and Tenant agrees that notice sent to the most
recent address for Tenant on file with City shall be conclusively
deemed as legally effective.
Page 21 of 36
6-26
(b) Service of Process on City. All other legal notices, demands and services
of process to be given to City may be served as provided by law upon the
authorized agent of City at the designated address or upon such other
person or at such other address as City may hereafter designate by written
notice.
20. MISCELLANEOUS PROVISIONS
(a) Waiver: A waiver by either party 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 difference character.
(b) Integrated Agreement: This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the City and
Tenant, and all preliminary negotiations and other agreements of any kind
or nature are merged herein. No verbal agreement or implied covenant
shall be held to vary the provisions herein. There are no promises,
representations, agreements, warranties or inducements except such as
are made herein and fully set forth. It is agreed that all of the rights,
remedies and benefits provided by the Agreement shall be cumulative, and
shall not be exclusive of any other of said rights, remedies, and benefits, or
of any other rights, remedies, and benefits allowed by law.
(c) Conflicts: In the event there are any conflicts or inconsistencies between
this Agreement and any attachments, the terms of this Agreement shall
govern.
(d) Modification & Amendment: This Agreement may be modified or amended
only by a written document executed by both Tenant and City and approved
as to form by the City Attorney.
(e) Severability: If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions of this Agreement shall continue in full force and effect.
(f) Controlling Law and Venue: The laws of the State of California, and
applicable Federal law, shall govern this Agreement and all matters relating
to it and any action brought relating to this Agreement shall be adjudicated
in a court of competent jurisdiction in the County of Orange, California_
In the event a claim arises under or pertaining in any way to this Agreement
that is not resolved by negotiation, the parties hereto agree that they shall
first submit such dispute for non -binding mediation, to occur in the County
of Orange, California, prior to commencing litigation. Given maritime law is
implicated in this Agreement, the parties agree to attempt to secure the
services of a retired Federal District Court Judge or a retired Federal District
Court magistrate for purposes of the mediation. If such meditator does not
Page 22 of 36
6-27
exist or is not available within forty-five (45) calendar days of being
requested to serve, the parties shall select a mutually acceptable individual
who has prior experience serving as a mediator or arbitrator. The obligation
to mediate does not apply to any claims that City has against the Vessel (as
contrasted by Tenant) for Vessel's debts or torts. Nothing in this Agreement
shall be construed to limit in any way the City's right to seek recovery directly
against the Vessel in an in rem action for liens based on the debts and/or
torts of the Vessel, unless the City agrees to do so in writing, such claims
against the Vessel are not restricted by or subject to the mediation
provisions herein. The intention of this paragraph is to require mediation
only of claims the Tenant may have against the City or claims the City may
have against Tenant, and not claims the City may have against the Vessel.
(g) 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.
(h) Standard of Care: Tenant 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 contractual
relationship with the City.
(i) Independent Parties: City and Tenant intend that the relation between them
created by this Agreement is that of employer -independent contractor and
Tenant is not an agent or employee of City. The manner and means of
conducting any work required herein are under the control of Tenant, except
to the extent they are limited by statute, rule or regulation and the expressed
terms of this Agreement. No civil service status or other right of employment
shall accrue to Tenant or its employees. Nothing in this Agreement shall be
deemed to constitute approval for Tenant or any of Tenant's employees or
agents, to be the agents or employees of City. Tenant shall have the
responsibility for and control over the means of performing the work,
provided that Tenant is in compliance with the terms of this Agreement.
Anything in this Agreement that may appear to give City the right to direct
Tenant as to the details of the performance of the work or to exercise a
measure of control over Tenant shall mean only that Tenant shall follow the
desires of City with respect to the results of the services.
Q) Vessel's Owner's Liability: If more than one Tenant is a party to this
Agreement, the obligation of all such Tenants shall be and is joint and
several.
21. RECORDS
Tenant shall maintain complete and accurate records with respect to such information as
may be required by City to be kept, and additionally, with respect to the performance of
services required by this Agreement as set forth in Exhibit 3, Scope of Services. Tenant
Page 23 of 36
6-28
shall maintain adequate records on services provided in sufficient detail to permit an
evaluation of the services. All such records shall be clearly identified and readily
accessible. Tenant shall provide free access to the representatives of the City or its
designees at all reasonable times to such books and records, and gives the City the right
to examine and audit same, and to make transcripts therefrom as necessary, and to allow
inspection of all work, data, documents, proceedings, and activities. Such records shall
be maintained for a period of at least three (3) years.
22. CITY DISCLAIMERS
(a) CITY DOES NOT HEREBY ASSUME CUSTODY OR POSSESSION OF
THE VESSEL OR ANY RESPONSIBILITY WHATSOEVER FOR THE CARE
OR PROTECTION OF SAME, AND TENANT HEREBY ASSUMES ALL
RISKS ASSOCIATED WITH THE USE AND OCCUPANCY OF THE SLIP
AND THE GARAGE
(b) TENANT AGREES AND UNDERSTANDS THAT THE CITY AND THE
BASIN SHALL NOT BE CONSIDERED AN INSURER OF THE VESSEL,
GARAGE, OR ANY PROPERTY OF THE TENANT AND OTHERS
CONTAINED ON THE VESSEL, IN THE GARAGE, OR AT THE SLIP OR
BASIN.
23. TENTANT'S REPRESENTATIONS
(a) TENANT REPRESENTS AND WARRANTS THAT ALL STATEMENTS
HEREIN ARE FULL, TRUE AND CORRECT. TENANT ACKNOWLEDGES
THAT THE CITY HAS FULLY RELIED UPON THESE STATEMENTS IN
EXECUTING THIS AGREEMENT.
(b) TENANT, AND THE PERSONS EXECUTING THIS AGREEMENT,
REPRESENT AND WARRANT THAT THE PERSONS EXECUTING THIS
AGREEMENT ARE DULY AUTHORIZED BY TENTANT TO DO SO ON
BEHALF OF TENANT, AND THAT IN SO DOING TENANT IS BOUND
THEREBY.
[SIGNATURES ON NEXT PAGE]
Page 24 of 36
6-29
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year here written.
I have received a copy of the Balboa Yacht Basin's Rules and Regulations, which
bear the revision date September 21, 2021,
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:./�/L�
By: ,�
Aar C. Harp 3. 1 • z3 WC,
City Attorney
ATTEST:
Date:
By:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By:
Grace K. Leung
City Manager
LESSEE: SAILING FASCINATION, a
California nonprofit corporation
Date:
By:_
Name
Title:
Date:
Tom Tolbert
Chief Executive Officer
By:
Name: Nina Stanson
Title: Secretary
[END OF SIGNATURES]
Attachments: Exhibit 1: City's Rules and Regulations for the Basin
Exhibit 2: Insurance Requirements
Exhibit 3: Scope of Services
Page 25 of 36
6-30
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year mere written.
l have received a copy of the Balboa Yacht Basin's Rules and Regulations, which
bear the revision date September 21, 2021.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:0:'-1�
By. J >>
Aar C. Harp 3 • 1.23 Wc.
e
City Attorney
ATTEST:
Date:
By..
Leilani 1. Brown
City Clerk
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By -
Grace K. Leung
City Manager
LESSEE: SAILING FASCINATION, a
California nonprofit corporation
Date:
Bv.
r�
Name: tom Tolbert
Title: Chief Executive Officer
Date:
B.
Name: Nina S anson
Title: Secretary
[END OF SIGNATURES]
Attachments: Exhibit 1
Exhibit 2
Exhibit 3
City's Rules and Regulations for the Basin
Insurance Requirements
Scone of Services
Fade 25 of 36
6-31
Exhibit 1
City's Rules and Regulations for the Basin
Page 26 of 36
6-32
BALBOA YACHT BASIN
829 Harbor Island Drive
Newport Beach, CA 92660
(949) 673-0360
Rules and Regulations
When a boat enters the Balboa Yacht Basin ("BYB"), it immediately comes under the jurisdiction
of BYB and shall be berthed only where ordered and maneuvered as directed. Vessels may be
relocated within BYB at City's discretion. The City ordinances, rules and regulations, summarized
herein and as amended from time to time, and all other regulations established by regulatory
bodies having jurisdiction at BYB, shall form a part of all Slip Rental Agreements as though printed
thereon.
The Balboa Yacht Basin is owned by the City of Newport Beach ("City") and managed by Bellport
Group, Inc., located onsite at 829 Harbor Island Drive.
There is no warranty of any kind as to the condition of the floats, walks, gangways, ramps or
mooring gear, nor shall City be responsible therefore, or for injuries to persons or property
occurring thereon or for any other reason, whether herein specifically stated or not.
I . No Vessel may be moored at the BYB unless a current Slip Rental Agreement or Temporary
Slip Rental Agreement (collectively, the "Agreements") is in effect between Vessel Owner
and City. All defined terms herein shall have the same meaning as in the Agreements.
2. Only the Vessel described in the Agreements and registered to Vessel Owner may occupy
the assigned Slip. Only one boat is permitted to occupy a slip at any one time, unless
otherwise approved by the Marina Manager.
3. Use of boats moored at BYB for unauthorized commercial purposes is prohibited.
4. No major repairs or complete overhauls shall be made on boats in BYB. Extent of the
permitted repairs shall be at the discretion of the City. Disc sanding and spray painting are
strictly forbidden.
5. Supplies, materials, accessories or gear of all kinds shall not be stored within BYB except
in approved lockers. No additional locker boxes shall be placed on the docks by Vessel
Owner. Maximum weight in lockers shall not exceed 70 pounds.
6. City reserves the right to inspect all boats to determine if they are properly identified and
equipped for safe operation in accordance with Coast Guard and other applicable
regulations.
Page 27 of 36
6-33
7. No Vessel Owner shall throw, discharge, pump or deposit from any boat or float any refuse,
oil, spirits, flammable liquid, or other polluting matter into BYB. All such matter shall be
deposited in appropriately marked containers within BYB.
8. Use of boat toilets not equipped with storage devices approved by the state or local health
departments is not permitted within BYB. City reserves the right to inspect all boats for
installation and proper operation of such devices and holding tanks.
9. Unnecessary operation of engines in berths is not permitted. No excessive noise is allowed.
Halyards should be tied away from masts.
10. Except for entering or leaving slips, marine engines, power generating equipment or other
noise making machinery shall not be operated between the hours of 5:00 P.M. and 9:00
A.M. Engines may not be operated in gear while boats are secured to dock.
11. Water or power lines shall not cross main walks.
12. All boats shall be moored by Vessel Owner in a safe manner, on cleats, with strong and
adequate lines.
13. The speed limit within BYB shall be dead slow, or wakeless speed, whichever is slower.
14. Fishing from the slips is not allowed. No cleaning of fish is permitted in BYB.
15. There shall be no laundering or drying of wearing apparel on the docks or on the dock or
rigging of a boat in BYB.
16. Restrooms will remain locked at all times. All keys must be returned to the Marina Manager
office upon termination of the Agreement. If not returned, the Key Deposit will be retained
by the City. Keys must not be duplicated.
17. Vessel Owner shall notify the Marina Manager when they expect Vessel to be away from
the Slip for any period in excess of thirty (30) calendar days. Vessel Owner shall not sublet
or otherwise grant others the use of the Slip. During any absence of the Vessel, City may
use the Slip for any purpose without credit or compensation to Vessel Owner.
18. For security reasons, no dinghy, sabot, float or other similar boat shall be permitted to cruise
up and down the fairways. All such boats must be kept on Vessel. The use of another slip
at any time, for ANY non -emergency reason is not permitted.
19. The maximum distance by which any boat (including all projections such as transom
platforms, booms, gait tanks, bowsprits, etc.) may extend beyond the end of the berth may
not be more than ten percent (10%) of the length of the Slip beyond the end of the Slip. No
part of the Vessel shall at any time extend over any portion of any dock at BYB. No part of
any boat shall extend over the main walkway.
20. All equipment and electrical connections made by Vessel Owner must be approved by the
Marina Manager.
21. No fueling or transferring of fuel from docks shall be permitted at any time.
Page 28 of 36
6-34
22. Vessel Owner shall be responsible for any oil, paint, or other materials spilled, dripped or
otherwise applied to the concrete fingers or walks adjacent to the boat slip.
23. Boat boarding steps shall be a maximum of one-half (1/2) the width of the finger and shall
be of lightweight, open construction. No storage will be allowed under the boarding steps.
24. No dinghies, masts, bicycles, hibachis, etc. shall be stored on the docks. Items left or stored
on the docks will be confiscated.
25. Trash containers are provided. Vessel Owners shall not place their own trash containers
on the docks.
26. No cleats, dock wheels or other accessories shall be installed by Vessel Owner. The
dockmaster should be contacted if additional accessories are necessary.
27. Any paint, varnish, etc. spilled on the docks or lockers shall be cleaned up immediately. If
the spill cannot be removed by Vessel Owner, he should contact the Marina Manager for
assistance.
28. Vessel Owner is encouraged to inform the Marina Manager of any leaks or other
malfunctions with water or electricity, etc., so that they may be corrected as soon as
possible.
29. ANIMALS SHALL BE LEASHED AT ALL TIMES. Should the size or temperament of a pet
disturb others or should the pet commit any nuisance on the property of BYB, such animal
shall be removed from BYB by Vessel Owner.
30. Children under twelve (12) years of age are not permitted on docks without the immediate
presence of a parent or other responsible adult.
31. Disorderly or discourteous conduct by Vessel Owner or guests that might injure a person,
cause damage to property or harm the reputation of BYB shall be cause for termination of
the Vessel Owner's Agreement.
32. Vessel Owner shall park vehicles in areas designated for Basin parking. Parking areas shall
not be used for storage of trailers without City's consent.
33. Vessel Owners are advised that it will be unlawful for any unauthorized person to solicit
business or to offer goods, wares, merchandise or services for sale on the premises of BYB
without the consent of the City.
34. "For Sale" or other unauthorized advertising signs are prohibited in BYB.
35. City is not responsible for any losses or damage to boats at BYB. Each Vessel Owner is
responsible for damage which he and/or his boat may cause to other boats or improvements
in BYB.
36. No swimming is permitted in BYB waters.
37. The City will not provide space for the storage of dinghies or miscellaneous Vessel Owner
equipment on Basin property.
Page 29 of 36
6-35
38. Hydro -lift hoists will not be allowed in BYB.
39. The Marina Manager may ascertain that strangers aboard yachts are authorized by Vessel
Owner to be aboard.
40. Riding of skateboards, bicycles or motorcycles on the docks is not permitted.
Slip Fees specified in the Agreement are determined by the size of the slip space or vessel size
and permitted overhang. Rent is due in advance, payable by the first of the month. Electricity is
charged for the previous month's use. Vessel is subject to impound if the account is delinquent.
Vessel Owner will be liable for any cost of impounding and collection of account.
These rules and regulations are subject to change upon five (5) calendar day's notice.
Ralph Grippo
Balboa Yacht Basin Manager
Bellport Group, Inc.
949-723-7788
rgrippo(cDbellwetherfi nancialgroup.com
Kelly Rinderknecht
Balboa Yacht Basin Office Manager
Bellport Group, Inc.
949-569-0723
krinderknecht themarinaatdana oint.com
Revised September 21, 2021
Page 30 of 36
6-36
Exhibit 2
Insurance Requirements
Without limiting Tenant's indemnification of City, Tenant shall obtain, provide, and
maintain at its own expense during the Term of this Agreement, a policy or policies of
insurance of the type, amounts, and form acceptable to City. The policy or policies shall
provide, at a minimum, those items described below.
Provision of Insurance. Without limiting Tenant's indemnification of City, Tenani
shall provide City, or City's designated representative, with copies of the
certificates of insurance with original endorsements evidencing coverage prior tc
the commencement of this Agreement, which evidence shall be a precondition to
Tenant's use of the Slip. A person authorized by the insurer to bind coverage on
its behalf shall sign certification of all required policies. Tenant shall deliver new
certificates evidencing the required coverage prior to the expiration or termination
of any policy, or upon any request by City or its designated representative for such
certificates.
2. 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.
3. Coverage Requirements.
a. General Liability. $2,000,000.00 combined single limit for bodily injury
and property damage.
b. Marine Coverage. Tenant agrees to obtain and maintain during the term of
this Agreement a policy of complete Marine Insurance including Protection
and Indemnity Liability with limits not less than Five Hundred Thousand
Dollars and 00/100 ($500,000.00) per occurrence. Tenant shall also
maintain Hull and General Vessel Protection policy covering at least one
hundred percent 100% of the actual cash value of the Vessel with
endorsements for extended perils, damage by fire, electrocution, and/or
stray current, corrosion, vandalism, theft and burglary, in accordance with
the following:
c. Fire and Extended Coverage. Tenant 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.
Page 31 of 36
6-37
d. Loss of Rent. Tenant shall maintain loss of rent insurance insuring that the
Rent will be paid to City for a period up to six (6) months if the Premises are
destroyed or rendered unusable or inaccessible for commercial purposes
by a risk insured under a special form property coverage policy including
vandalism and malicious mischief endorsements.
e. Pollution Liability Insurance. Tenant shall require that Tenant's construction
contractors and subcontractors maintain a policy providing contractor's
pollution liability ("CPL") coverage with a total limit of liability of no less than
one million dollars and 00/100 ($1,000,000) per loss and in the aggregate
per policy period dedicated to this project. The CPL shall be obtained on
an occurrence basis for a policy term inclusive of the entire period of
construction. If all or any portion of CPL coverage is available only on a
claims -made basis, then a 10-year extended reporting period shall also be
purchased. The CPL policy shall include coverage for cleanup costs, third -
party bodily injury and property damage, including loss of use of damaged
property or of property that has not been physically injured or destroyed,
resulting from pollution conditions caused by contracting operations.
Coverage as required in this paragraph shall apply to sudden and non -
sudden pollution conditions resulting from the escape or release of smoke,
vapors, fumes, acids, alkalis, toxic chemicals, liquids, or gases, waste
materials, or other irritants, contaminants, or pollutants. The CPL shall also
provide coverage for transportation and off -site disposal of materials. The
policy shall not contain any provision or exclusion (including any so-called
"insured versus insured" exclusion or "cross -liability" exclusion) the effect of
which would be to prevent, bar, or otherwise preclude any insured or
additional insured under the policy from making a claim which would
otherwise be covered by such policy on the grounds that the claim is
brought by an insured or additional insured against an insured or additional
insured under the policy.
4. All insurance policies shall be endorsed to contain the following provisions:
a. Additional Insured Status. The City, its elected or appointed officers, boards
and commissions, officials, agents employees and volunteers are to be
covered as additional insureds.
b. Primary and Non -Contributory. This policy shall be considered primary
insurance with respect to the City, its elected or appointed officers, boards
and commissions, officials, employees and volunteers with respect to all
claims, losses, or liability arising directly or indirectly from the Agreement.
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.
Page 32 of 36
6-38
c. Liability Insurance. 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.
d. Waiver of Subrogation. The insurer waives all rights of subrogation against
City, its elected or appointed officers, boards and commissions, officials,
agents, employees and volunteers.
e. Reporting Provisions. Any failure to comply with reporting provisions of the
policies shall not affect coverage provided to City, its elected or appointed
officers, boards and commissions, officials, agents, employees and
volunteers.
f. Notice of Cancellation. The insurance provided by this policy shall not be
suspended, voided, canceled, or reduced in coverage or in limits, except
after thirty (30) calendar days written notice has been received by City.
5. Additional Requirements.
a. City shall have no obligation to pay assessments, premiums or other
charges in connection with any insurance.
b. Tenant shall give City prompt and timely notice of claim made or suit
instituted arising out of or resulting from this Agreement.
c. Tenant shall also procure and maintain, at its own cost and expense, any
additional kinds of insurance, which in its own judgment may be necessary
for Tenant's protection.
d. Tenant shall also be responsible to ensure that all contractors employed by
Tenant comply with all Basin Rules and Regulations, properly register with
Harbor Resources prior to beginning any work, and provide proof of
adequate general liability insurance coverage with a limit of not less than
One Million Dollars and 00/100 ($1,000,000.00) per occurrence, naming the
City as an "additional insured" in a form approved by the City's Risk
Manager. All such contractors shall have a City business license and shall
provide workers compensation insurance for employees. Tenant shall
verify the existence of such insurance prior to allowing such contractors to
perform any work aboard or to the Vessel. The City reserves the right to
refuse access to such contractors with or without cause for any purpose that
is not legally recognized as unlawfully discriminatory. The City may require
any contractor complete a "Premises Access Agreement" or similar
agreement prior to entrance into the Basin.
Page 33 of 36
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Exhibit 3
Scope of Services
A. Background
Our Mission: At Sailing Fascination, we want each of our students to believe that
their disability is only as limiting as their desires by providing free sailing lessons
to students with all ranges of disabilities. Having a disability does not have to keep
any person from enjoying time on the water aboard a sailboat!
Our Goal: Is to increase the quality of life and bring hope and joy into the lives
of everyone who comes aboard with disabilities.
Who Is It For?
• All types of physical disabilities.
• PTSD and other Trauma
• Developmental Disabilities
• No sailing experience necessary!
About Us: Our non-profit foundation was built on the principle that having a
disability does not have to keep any person from enjoying time on the water aboard
a sail boat!
Manned by a crew of two 30-year sailing veterans, including the Captain who is
handicapped himself, Sailing Fascination's desire is to increase the quality of life
and bring hope and joy into the lives of those with disabilities.
"I can teach anyone with a disability to sail. Don't worry about a missing arm, an
inability to stand or walk, or a lack of vision. In sailing, you only need the wind at
your back and a spirit of the sea," claims Tom Tolbert, President of Sailing
Fascination.
At Sailing Fascination, we want each of our students to believe that their disability
is only as limiting as their desires.
Our Story: Since 1996, Sailing Fascination, a 501(c) 3 nonprofit organization,
has provided free sailing lessons to over 1000 students with a range of disabilities.
Anyone with spinal -cord injuries, cerebral palsy, multiple sclerosis, post -polio
conditions, quadriplegia and other physical conditions, as well as anyone with
developmental disabilities are welcome to come weekly for classes.
In 2013 Sailing Fascination expanded their reach to include war veterans
struggling with the effects of PTSD. All our students need is an enthusiasm for
learning and the desire for an increased quality of life.
Page 34 of 36
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With no prior experience needed, the Foundation teaches students everything from
boat safety, sailing terminology and concepts, steering, tacking, running down-
wind, crewing and perhaps most importantly, confidence -building.
"The idea is that students are experienced boat drivers by the time they leave us,
the program is really about them spending time at the tiller, not just being a
passenger." -Tom Tolbert, President of Sailing Fascination explains.
B. Duties to be Performed by Sailing Fascination
Maintain non-profit status.
2. Provide boating safety and sailing instruction to disabled individuals.
3. Provide sailing instruction, provided there is demand for that instruction,
with lessons generally scheduled for two hours per day on three days per
week, and running for four (4) consecutive weeks.
4. Provide City with quarterly report listing name of students and organizations
who have participated in the sailing program.
5. Provide City with curriculum, if and as amended.
6. Provide evidence of Instructor Proficiency Training for each
instructor/volunteer employed or utilized by Sailing Fascination.
7. Require that personal flotation devices (PFDs) approved by the U.S. Coast
Guard be worn by all participants and available to crew while on the docks
or underway.
8. Provide annual cash flow statement itemizing revenues and expenditures
for fiscal year within ninety (90) days of last day of Sailing Fascination's
fiscal year.
9. Prepare and submit annual budget indicating the expectations and financial
needs and revenue sources for the current/upcoming fiscal year within
ninety (90) days of first day of Sailing Fascination's fiscal year. Report shall
specify in reasonable detail: (i) balance in all funds and accounts maintained
by Sailing Fascination; (ii) all projected revenues and sources of funds for
the fiscal year; (iii) the expenditures proposed to be made by Sailing
Fascination in fulfilling its obligations pursuant to this Agreement; and (iv)
all other proposed expenditures of Sailing Fascination.
Page 35 of 36
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C. Curriculum Outline: Sailing Handbook for the Disabled, copyright 1996
1.
Water Safe Test
2.
Pre -Boat Training
3.
Theory of Sailing
4.
Sailing Terms
5.
Rig Profile
6.
Deck Plan
7.
Adaptive Equipment
8.
Cockpit Layout
9.
Propulsion (Sails)
10.
Points of Sail
11.
Sail Plan
12.
Basic Sail Trimming
13.
Trimming Downwind
14.
Rules of the Road
D. 4-Week Lessons - Weekly Schedule
How it works
Aboard the J-24 Fascination 2 berthed in Newport Harbor, students join the volunteer
crew of two other sailors to head out to Newport Harbor for their 2-hour lesson. Capable
students can go alone, or, with a caregiver if preferred. Because the lessons are limited
to one student per lesson, training occurs at their pace and at their comfort level. "The
experience students get by being in control of a boat is amazing," Tom says. "It's a special
treat. To look over and see a student smile while behind the tiller is an absolute thrill. I
don't think you can actually teach all of them everything about sailing, but their ability to
problem -solve is dramatically enhanced. For once in their lives, or perhaps once again,
these folks are in charge."
Lessons Run 4 Consecutive Weeks, January — October:
Tuesdays or Thursdays Saturdays
12pm to 2pm 12pm to 2:00pm or 2:15pm to 4:15pm
All Students Welcome Reserved for Special Appointments
Page 36 of 36
6-42
Attachment B
Existing Slip Rental Agreement, Dated April 9, 2013
6-43
rrcl)�,
�zxFOR�iI
BALBOA YACHT BASIN
829 Harbor Island Drive
Newport Beach, CA 92660
949-673-0360
SLIP RENTAL AGREEMENT
THIS SLIP RENTAL AGREEMENT ("Agreement") is made as of this April � , 2013 by and between the
CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City") and
Sailing Fascination, a California non-profit corporation ("Vessel Owner"); if more than one (1), each shall be
jointly and severally liable and all are collectively referred to as "Vessel Owner' herein. Vessel Owner must be
the legal owner of the Vessel, or such owner's registered agent.
City hereby grants Vessel Owner a limited license and permission to moor its vessel at THE BALBOA YACHT
BASIN ("Basin") in Slip No. B-1 and Vessel Owner hereby agrees to accept the Slip, defined herein, for the term
specified, subject to all of the terms and provisions set forth below:
OWNER
Name(s): Sailing Fascination
If Vessel Owner is a corporation or other entity,
Name of Registered Agent in California:
Residence Address:
Business Address: 9224 Residencia, Newport Beach, CA 92660
Billing Address: 9224 Residencia, Newport Beach, CA 92660
Telephone: Home #: (949) 640-1678 Business #: (949) 640-1678 Cell #: (949) 413-7379
E-mail Address: tomorninapcox.net
Social
Driver's License Info: State: CA Number: P0592412 Security/EIN 33-0703660
Emergency Contact Name: Tom Tolbert Emergency Phone #: (949) 640-1678 _
Legal Owner of Vessel:
Bank, Lienholder, or other name appearing on evidence of title Sailing Fascination
2. VESSEL DESCRIPTION
Vessel Name: Fascination2
("Vessel")
Type (Power/Sail):
Sailboat
Reg. CFIDoc. No.: CF 9463SP
Please provide a copy of current Documentation/Registration for file.
Builder: J (Jacobson — J24
Total Length: 24 feet Beam: Approx. 8 feet Draft: Approx. 4 feet
(including bowsprit, boom, boomkin, pulpit, svifim step, boarding step outboard(s), outdhve(s), davits/dinghy in davits, etc.)
Page 1 of 17
6-44
Port/State of Registration: l'
Insurance Carrier: Travelers
Beach. California
Insurance Agent: Starkweather & Shipley Insurance, Inc.
Phone #: (401) 596-2212 Insurance Policy #. ZOH14R2841312ND Expiration Date: 05/07/2013
'Please provide a copy of current insurance certificate for file.
3
Vessel Owner agrees to give City written notice of any change in any of the above information within five
(5) days after the occurrence of any such change.
Vessel Owner agrees to produce evidence of licensing, registration and insurance coverage for the
Vessel and provide copies of such certificates for the City's files when such coverage or registration are
changed or renewed or at the City's request. A photocopy of the current year's registration is to be
received by the City no later than March 315` of each year.
DEFINITION AND TERMS
Slip No.:
B-1
("Slip")
Term: Five (5) years, commencing on the
ending on the day of , 2018.
Annual Slip Fee: $1.00 ("Slip Fee")
Key Deposit: NIA # of Keys:
4. CITY
Notices to the City shall be sent to:
',
City of Newport Beach
Lauren Wooding, Real Property Administrator
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658
TERM
Slip Length: 37 feet
day of , 2013 ("Commencement Date") and
NIA
Total Key Deposit:
NIA
This Agreement shall be for a term of five (5) years ("Initial Term"), plus any partial month if the
Commencement Date is on a date other than the first day of a calendar month.
Provided Vessel Owner is not then in default, and upon approval by the City, Vessel Owner may
extend the term of this Agreement for an additional five (5) years ("Option Term") commencing on
expiration of the Initial Term, on the same terms and conditions as contained in this Agreement.
Vessel Owner must exercise the option by giving the City written notice of its intention to do so at least
three (3) months prior to the expiration of the Initial Term.
Upon expiration of the Term, if and as extended, the Agreement shall continue on a month -to -month
basis until a new agreement can be reached, unless sooner terminated. City may terminate. this
Agreement without cause and in City's absolute discretion, by providing thirty (30) days prior written
notice to the Vessel Owner.
Page 2 of 17
6-45
6. PAYMENT OF FEES�y
(a) In lieu of fair market value slip fees for the Term of tOv
r ment, Vessel Owner agrees to pay
the Slip Fee of One Dollar and 00/100 ($1.00) perand shall provide boating safety and
sailing instructions to a minimum of forty (40) physicd/or intellectually disabled individuals
per year. This instruction will be provided free of charge and shall conform to the curriculum
outline attached hereto as Exhibit 1 and incorporated herein by this reference.
(b) The Slip Fee charged under this Agreement is for less than fair market value. The City Council
specifically finds that the charging of less than fair market value Slip Fees for this use promotes
public recreation facilities and marine services to the physically and intellectually disabled public
and furthers the policies and objectives of the Tidelands Grant. Charging less than fair market
value slip fees for these uses allows for continued operation and improved accessibility to the
physically and intellectually disabled public. Thus, the charging of less than fair market value Slip
Fees for these uses of the Tidelands is a matter of state-wide concern that benefits the citizens
of the State of California. Pursuant to City Council Policy F-7(E)(5), the City Council further finds
that the charging of less than fair market value Slip Fees promotes the goals of the City to
provide an essential or unique service to the community that might not otherwise be provided
were full market value of the property required.
(c) Payments shall be mailed to or made in person at the City's Finance Office at 100 Civic Center
Drive, P.O. Box 1768, Newport Beach, CA, 92658 or at any such other place as may from time to
time be designated by City in writing. The Slip Fee for the first full or partial calendar month of
the Term shall be paid to City by Vessel Owner concurrently with the execution of this
Agreement. All Slip Fees are payable in advance and all fees and charges are due by the first
(1st) of the month and delinquent on the fifteenth (15th) of the month. Upon not less than sixty
(60) days' prior written notice to Vessel Owner, City may alter, at any time, the amount of Slip
Fees, Late Fee, Returned Check Fees, andlor Key Deposit payable under this Agreement.
7. LATE PAYMENTS
Any Slip Fee or other sum due under this Agreement that is not paid to City when due shall be
charged ten percent (10%) interest per month as a late fee, from the date due until fully paid ("Late
Fee"). In addition, Vessel Owner acknowledges that such late payment will cause City to incur costs
not contemplated by this Agreement, the exact amount of which will be extremely difficult and
impracticable to ascertain. If an account is processed for collection or lien due to late payments, an
additional charge of thirty percent (30%) of the amount due will be assessed against Vessel Owner. If
Vessel Owner does not pay the Slip Fee when due two (2) or more times during the term of this
Agreement, City may, at City's sole discretion, require Vessel Owner to enroll in City's Automatic
Payment Processing ("APP") program to ensure Vessel Owner's timely payment. If Vessel Owner
refuses to enroll in City's APP program, City may, at City's sole discretion, immediately terminate this
Agreement.
8. RETURNED CHECKS
A Twenty -Five Dollar and 00/100 ($25.00) fee will be assessed against Vessel Owner for the first (15)
returned check. Any additional returned checks in the same calendar year shall be assessed a Thirty -
Five Dollar and 00/100 ($35.00) fee (collectively, "Returned Check Fees").
9. KEY DEPOSIT
In addition to the Security Deposit, Vessel Owner shall also deliver to City, upon execution hereof, a Key
Deposit in the initial amount set forth in Section 3 above, which shall be held by City as security for the
keylaccess card to the Basin provided to Vessel Owner. The Key Deposit shall be refundable to Vessel
Owner when such access device is returned to City upon termination of this Agreement. The Key
Deposit shall be permanently retained by City in the event the access device is lost or damaged by
Page 3 of 17
• 1 •
Vessel Owner, in which event Vessel Owner shall he required to deliver to City an additional key deposit
in the amount then -currently charged by City for a replacement access device.
10. CONDITIONS OF USE
Vessel Owner shall perform and abide by each and every condition of use contained in this Agreement
and the attached Rules and Regulations. At all times, Vessel Owner shall comply with all laws, rules and
regulations of federal, state, and local entities, including, but not limited to, municipal codes,
environmental laws and regulations and all regulations of the U.S. Coast Guard. Vessel Owner shall not
cause or allow the Slip to be used for any purpose other than the mooring or berthing of the specific
Vessel described in Section 2 above, and for other uses consistent with this Agreement.
(a) Liveaboards. No person, including Vessel Owner, shall live aboard the Vessel while the Vessel is
moored at the Basin. A person shall be deemed to be living aboard the Vessel if such person
occupies the Vessel for more than seventy-two (72) hours per month. Living aboard the Vessel
and/or providing false information with regard to live -aboard status shall be grounds for
immediate termination of this Agreement and all privileges at the Basin.
(b) Discharge of Waste/Hazardous Waste.
(i) No substance or material of any kind, including without limitation, waste matter from
sinks, toilets, marine heads, holding tanks, bilges, or any other receptacles shall be
discharged into the waters of the Basin. If the Vessel is equipped with a toilet, a marine
head, or any other permanent or temporary receptacle for human body wastes, then the
Vessel must be equipped with a holding tank designed to retain all contents deposited in
the receptacle until such time as the contents can be discharged into a sanitary sewer
system or discharged otherwise in accordance with law. All sewage systems on Vessel
must meet U.S. Coast Guard guidelines and must be locked "shut" while Vessel is
berthed at the Basin. Vessel Owner hereby agrees to permit City to deposit dye tablets
into and to inspect such holding tanks from time to time upon demand by City. Vessel
Owner shall not release or permit to be released into the water or upon the docks or land,
by action or inaction, any waste or environmentally objectionable substances including,
but not limited to, oil, paint or gasoline. Vessel Owner shall immediately report any
release to all appropriate government agencies and to the Basin Manager, and shall
immediately implement necessary clean up and disposal of any waste. Vessel Owner
shall be responsible for the prompt payment of all costs associated with clean up and
disposal including costs of absorbent pads and booms, oversight by government
agencies and Harbor Resources personnel, fines, penalties and legal fees. If City is not
satisfied, at City's sole discretion, with Vessel Owner's actions in reporting and cleaning
up a release, City may take any and all action it deems appropriate. Vessel Owner shall
be liable for all costs and expenses associated with the City's actions which shall be
payable to the City immediately upon receipt of an invoice from the City.
(ii) Vessel Owner shall not engage in any activity at or about the Basin that violates any
Environmental Law (as defined below), and shall promptly, at Vessel Owner's sole cost
and expense, take all investigatory and/or remedial action required or ordered by any
governmental agency or Environmental Law for clean up and removal of any
contamination involving any Hazardous Material created or caused directly or indirectly by
Vessel Owner. The term "Environmental Law" shall mean any federal, state or local law,
statute, ordinance or regulation pertaining to health, industrial hygiene or the
environmental conditions on, under or about the Basin, including, without limitation, (i) the
Comprehensive Environmental Response, Compensation and Liability Act of 1980
("CERCLA"), 42 U.S.C. Sections 9601 et seq.; (ii) the Resource Conservation and
Recovery Act of 1976 ("RCRA"), 42 U.S.C. Sections 6901 et seq.; (iii) California Health
and Safety Code Sections 25100 et seq.; (iv) the Safe Drinking Water and Toxic
Enforcement Act of 1986, California Health and Safety Code Section 25249.5 et seq.; (v)
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6-4 7
California Health and Safety Code Section 25359.7; (vi) California Health and Safety
Code Section 25915; (vii) the Federal Water Pollution Control Act, 33 U.S.C. Sections
1317 et seq.; (viii) California Water Code Section 1300 et seq.; and (ix) California Civil
Code Section 3479 et seq., as such laws are amended and the regulations and
administrative codes applicable thereto. The term "Hazardous Material" includes, without
limitation, any material or substance which is (i) defined or listed as a "hazardous waste",
"extremely hazardous waste", "restrictive hazardous waste" or "hazardous substance" or
considered a waste, condition of pollution or nuisance under the Environmental Laws; (ii)
petroleum or a petroleum product or fraction thereof; (iii) asbestos; and/or (iv) substances
known by the State of California to cause cancer and/or reproductive toxicity. It is the
intent of the parties hereto to construe the terms "Hazardous Materials" and
"Environmental Laws" in their broadest sense. Vessel Owner shall provide prompt written
notice to City of the existence of Hazardous Materials maintained by Vessel Owner at the
Basin and all notices of violation of the Environmental Laws received by Vessel Owner.
(c) Signs. No signs for the purpose of advertising or display, including but not limited to "For Sale"
and brokerage signs, shall be placed on the Vessel or the dock.
(d) Overhangs. No part of the Vessel shall at any time extend over any portion of any dock at
Balboa Yacht Basin. No Vessel or part of the Vessel may extend more than ten percent (10%) of
the length of the Slip beyond the end of the Slip. Additionally, the beam (width) of the Vessel
may not exceed, in any area of the Vessel, more than ninety percent (90%) of the width of the
Slip and must allow for installation of adequate bumpers and appropriate other dock/vessel
protection.
(e) Securing Vessel. At all times during which the Vessel is berthed at the Slip, Vessel Owner shall
cause it to be safely and properly secured to its berth in a manner acceptable to City. In case of
an emergency, City is authorized to do whatever City deems appropriate, including boarding the
Vessel, moving the Vessel, utilizing auxiliary pumps or taking any other action. If City deems it
necessary to re -secure the Vessel for any reason, Vessel Owner agrees to pay City a reasonable
service charge for doing so plus the cost of all materials used therefor. However, City assumes
no responsibility for the safety of the Vessel and Vessel Owner agrees to release City, and hold
City harmless, from any liability for damage to the Vessel, its equipment, and/or any property in
or on the Vessel, by reason of City's efforts to re -secure said Vessel or City's decision not to re -
secure Vessel.
(f) Condition of Slip. Vessel Owner hereby acknowledges that Vessel Owner has inspected the Slip
and those portions of the Basin associated with the Slip, including, without limitation, the floats,
walks, gangways, ramps and utilities, and knows the condition of the same, hereby accepts the
same in their existing condition "As Is" and agrees that no statement, representation or warranty
as to their condition. has been made by the City. City does not warrant that the utility services will
be compatible with the utility service requirements of the Vessel, including electrical
interconnection and polarity or the effect of electrolytic action on the Vessel.
(g} Vessel Owner's Care of Mooring and Docks. Vessel Owners shall not store or install any lockers
or boxes, small boats, dinghies, skiffs, bait tanks, boat gear, racks, power lines, water hoses or
other personal property whatsoever at the Slip (other than aboard the Vessel), or on the docks or
gangways adjacent to the Slip. Vessel Owner shall keep the Slip, docks and gangways in a neat,
clean and orderly condition, free and clear of all such items other than approved power lines and
water hoses in use connected to proper receptacles at the Slip. No wheels, fenders, rubbing
strips or other cushioning devices may be attached to a dock for the purpose of protecting hulls,
without the prior written approval of City. No alterations may be made to the docks by the Vessel
Owner. No flammable, combustible or otherwise hazardous materials shall be stored or left on
the docks, including in approved dock boxes and lockers, in the Basin. Vessel Owner agrees to
promptly make a written report to City of any conditions existing on or about the Basin which
Page 5 of 17
6-48
Vessel Owner believes to be a dangerous condition or which might develop into a dangerous
condition.
(h) Commercial Enterprise. Vessel Owner will not conduct or allow the Vessel to be used for any
commercial enterprise, including, but not limited to, the chartering of Vessel, during the existence
of this Agreement without the prior written approval of City.
(i} Guests. Vessel Owner shall be responsible for the conduct and control of all guests, agents,
contractors, employees, hired personnel and other invitees (collectively, "Guests") while at the
Basin. City reserves the right to regulate entry into the Basin by yacht brokers, contractors and
yacht service personnel, and City may require written authorization from Vessel Owner. City may
take reasonable steps to ascertain that persons aboard the Vessel are authorized by Vessel
Owner to be aboard.
(j) Change of Slip. City reserves the right to move or to require a Vessel Owner to move the Vessel
from the Slip to another slip within the Basin, either temporarily or permanently, at any time for
any reason whatsoever, including, without limitation, for construction, emergency, safety or other
operational reasons. Vessel Owner hereby grants City permission to board the Vessel for said
purpose. Vessel Owner agrees to release the City and its officers, agents or employees from
any liability for loss or damage resulting or alleged to result from any such movement of the
Vessel or from any failure to move the Vessel.
(k) Assignment and Subletting. This Agreement grants to Vessel Owner a limited personal right,
without any possessory interest, to berth the Vessel. Accordingly, Vessel Owner shall have no
right or power to assign this Agreement or sublet the Slip or any part thereof to any other person
or party whatsoever for use by any other vessel whatsoever. No attempted transfer or
assignment, whether voluntary or involuntary, by operation of law, under legal process or
proceedings, by receivership, in bankruptcy, or otherwise, and no attempted subletting, shall be
valid or effective, but shall automatically terminate this Agreement. If any vessel other than the
Vessel described in Section 2 is moored at the Slip at any time, unless such vessel is moored
pursuant to a Temporary Slip Agreement with the City during that period of time in Vessel
Owner's notification pursuant to Section 10(I) below, it shall constitute an immediate breach of
this Agreement, and City may, at its option, without waiving any other remedies it may have,
immediately terminate this Agreement upon written notice to Vessel Owner.
(1) Use of Space by City. Vessel Owner shall notify City, in writing, when Vessel Owner expects the
Vessel to be away from the Slip for periods in excess of thirty (30) days. Such notification shall
include the date the Vessel will leave the Slip and the date the Vessel will return. City shall have
the right to allow use of the Slip by another vessel on a temporary basis without liability, credit or
compensation to Vessel Owner during such periods. If Vessel Owner returns prior to the
scheduled return date, City shall have the right to supply a substitute slip to Vessel Owner.
(m) Extended Vessel Absence.
(i) Vacancy without Notice: Continuous vacancy of the Slip for more than thirty (30) days is
conclusively presumed to constitute both an abandonment of the Slip by Vessel Owner
and an immediate termination of this Agreement, unless Vessel Owner notifies City of its
intent to temporarily remove the Vessel from the Slip pursuant to Section 10(I) above, and
of Vessel Owner's intention to maintain this Agreement in full force and effect.
(ii) Continuous Vacancv: This Agreement shall automatically terminate without notice to
Vessel Owner if the Vessel does not occupy the Slip for six (6) consecutive months.
(n) Balboa Yacht Basin Rules and Regulations. Vessel Owner agrees to use the Slip and the Basin
in accordance with City's Rules and Regulations, which, by this reference, is made a part hereof.
In the event of a conflict between said Rules and Regulations and this Agreement, the terms of
Page 6of17
6-49
this Agreement shall apply. City reserves the right to modify its Rules and Regulations from time
to time and Vessel Owner agrees to comply with all such modified Rules and Regulations.
Vessel Owner further agrees to comply with all laws, ordinances, rules, regulations and orders of
any government authority with respect to the Slip and the Basin. Should any fine be assessed
against Vessel Owner and/or City due to any failure by Vessel Owner or its Guests to comply
with the provisions of this Section, Vessel Owner shall be solely responsible therefor and shall
pay same within five (5) days following demand.
(o) Electricity. Electricity shall be supplied to the Slip and shall be billed to Vessel Owner on a
monthly basis.
(p) Taxes, Licenses and Other Obligations.
(i) Payment of Taxes. Vessel Owner acknowledges that this Agreement may create a
possessory interest subject to taxation. Vessel Owner shall pay, before delinquency, all
taxes, assessments, license fees and other charges ("Taxes") that are levied or assessed
Vessel Owner's interest in this Agreement or any fixture, improvement, equipment and
other property in and around the Slip. Vessel Owner shall pay directly to the appropriate
taxing authorities all Taxes at least ten (10) days before delinquency and before any fine,
interest or penalty is due or imposed by operation of law. At City's request, Vessel Owner
shall provide City with proof of payment of Taxes. Vessel Owner shall not be required to
pay any Taxes based on City's ownership interest in the Slips.
(ii) Payment of Obligations. Vessel Owner shall promptly pay, when due, any and all bills,
debts, liabilities and obligations incurred by or charged to Vessel Owner in connection
with Vessel Owner's occupation and use of the Slip. However, the provisions of this
subsection shall not prevent Vessel Owner from contesting the validity of any lien, claim
or demand, provided that in such event, Vessel Owner shall, at its expense, defend itself
and City against the same and shall pay and satisfy any adverse judgment that may be
rendered before enforcement against City or the Slip.
(iii) Challenge to Taxes. Vessel Owner shall have the right in good faith, at its sole cost and
expense, to contest the amount or legality of any Taxes including the right to apply for
reduction. If Vessel Owner contests payment of Taxes, Vessel Owner's failure to pay the
Taxes shall not constitute a default as long as Vessel Owner complies with the provisions
of this Section. City shall not be required to join in any proceeding or contest brought by
Vessel Owner unless the Law requires joinder of the City and in that case City shall join in
the proceeding, permit it to be brought in City's name and shall execute any necessary or
appropriate document necessary so long as City is not required to bear any cost or
liability for payment of Taxes. Vessel Owner shall, on final determination of the
proceeding or contest, immediately pay such disputed tax and also discharge any
decision or judgment rendered, together with all related costs, charges, interest and
penalties and provide City with proof of Vessel Owner's payment. Vessel Owner shall
Indemnify and hold harmless the City and its officers and employees from and against
any liability, claim, demand, penalty, cost or expense arising out of or in connection with
any contest or proceeding prosecuted by Vessel Owner pursuant to this Section.
11. INSURANCE
Without limiting Vessel Owner's indemnification of City, Vessel Owner will obtain, provide and
maintain at its own expense during the Term of this Agreement, a policy or policies of insurance of the
type, amounts and form acceptable to City. The policy or policies shall provide, at a minimum, those
items described in Exhibit 2, attached hereto and incorporated herein by reference.
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12. INDEMNIFICATION
To the fullest extent permitted by law, Vessel Owner shall indemnify, defend and hold harmless City,
its City Council, boards and commissions, officers, agents and employees (collectively, the
"Indemnified Parties") from and against any and all claims (including, without limitation, claims for
bodily injury, death or damage to property), demands, obligations, damages, actions, causes of
action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without
limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or
indirectly) to this Agreement; the damage or destruction to the Slip, Basin, or any part thereof or any
vessel in the Basin resulting from any operation or movement of Vessel; and/or Vessel Owner's (or its
principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, Guests,
anyone employed directly or indirectly by any of them, or any person on the Vessel, the Slip or Basin
claiming to be present through or under the permission or authority of Vessel Owner or for whose acts
they may be liable or any or all of them) breach of any term of this Agreement, negligence, willful acts,
failure to comply with any law, rule and/or regulation of a federal, state, and/or local entity, failure to
comply with any of the attached Rules and Regulations, and/or other acts or omissions including, but
not limited to, Claims related to improperly connecting electrical service from the common outlet to the
Vessel, failure to turn off electrical, water or other utility appliances or lights when not in use, and/or
littering of the Slip or adjoining water or common areas.
Notwithstanding the foregoing, nothing herein shall be construed to require Vessel Owner to indemnify
the Indemnified Parties from any Claim arising from the active negligence or willful misconduct of the
Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's
fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims
and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a
limitation upon the amount of indemnification to be provided by the Vessel Owner.
13. DAMAGE AND DESTRUCTION
(a) Vessel Owner's Obligation. Vessel Owner hereby agrees to pay on demand all reasonable costs
of repair or restoration resulting from any damage or destruction to the Slip, Basin and any part
thereof, or any vessels in the Basin resulting from any operation or movement of the Vessel or
any other act or omission of Vessel Owner and or any person on the Vessel or the Slip claiming
to be present through or under the permission or authority of Vessel Owner, including without
limitation, damage or destruction resulting from improperly connecting electrical service from the
common outlet to the Vessel, failure to turn off electrical, water, or other utility appliances or lights
when not in use, and littering of the Slip or adjoining water and common areas.
(b) Effect of Damage or Destruction. In the event of damage to or destruction of the Basin or the
Slip by fire, wind, flood, storm movement of water, accumulation of silt, earthquake, tidal wave or
any other cause or causes, whether immediate or over a period of time, City shall have the option
to:
(i) Treat this Agreement as continuing and repair or restore the Basin or Slip to its condition
before such damage or destruction occurred within thirty (30) days of the occurrence of
the same or, if insured, within thirty (30) days after City received permission from the
insurer to proceed with repair or restoration; or
(ii) Terminate this Agreement and all further obligations hereunder of either party by written
notice to Vessel Owner.
After the occurrence of such damage or destruction, the Vessel Owner's obligation to pay Slip
Fees hereunder may be abated in an amount which City, in its sole discretion, shall determine to
be proportionate to the area of the Slip rendered unfit for use by Vessel Owner during the period
of repair or restoration. All repairs or restoration must be completed within thirty (30) days of the
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damage or destruction, must be approved by the City and must be completed in a manner
acceptable to the City.
14. WASTE,. QUIET ENJOYMENT
Vessel Owner shall not commit or permit any waste upon the Slip or any nuisance or other act or thing
which may disturb the quiet enjoyment of any other vessel owner or person in or about the Basin.
Violation of this provision shall be grounds for immediate termination of this Agreement at the option
of City. Vessel Owner shall not use in any wasteful, unreasonable or hazardous manner, any of the
utilities furnished by the City.
15. LIMITATIONS ON CITY'S LIABILITY
(a) Injury, Loss or Damage. Vessel Owner agrees that City, its City Council, boards, commissions,
directors, officers, officials, employees, volunteers and agents shall not be liable for any injury,
including death, to Vessel Owner or any person, caused by any use of the Slip or the Basin, or
arising from any accident, fire or casualty thereon or from any other cause whatsoever; nor shall
City, its City Council, boards, commissions, directors, officers, employees, volunteers and agents
be liable for any loss of, or any damage to, any property or article belonging to Vessel Owner.
(b) Other Limitations. Vessel Owner also agrees that City shall not be liable for, and this Agreement
shall not be terminated by, any interruption or interference with services or accommodations due
Vessel Owner caused by strike, riot, orders or acts of public authorities, acts of other vessel
owners, accident, the making of necessary repairs to the Basin, or any other cause beyond City's
control.
16. DEFAULT
The occurrence of any one or more of the following events shall constitute a material default and
breach of this Agreement by Vessel Owner:
(a) The vacating or abandonment of the Slip by Vessel Owner;
(b) Failure of Vessel Owner to make any payment of Slip Fees or any other payment required to be
made by Vessel Owner hereunder as and when due where such.failure shall continue for a
period of three (3) days after written notice thereof from City to Vessel Owner.
(c) Failure by Vessel Owner to observe or perform any of the covenants, conditions and terms of this
Agreement to be observed or performed by Vessel Owner other than described in (b)
immediately above, where such failure shall continue for a period of seven (7) days after written
notice thereof from City to Vessel Owner.
17. REMEDIES FOR DEFAULT
(a) Possessory Lien. By execution of this Agreement, Vessel Owner acknowledges that pursuant to
Harbors and Navigation Code Sections 491, 501 and/or the Federal Maritime Lien Act (46 U.S.C.
Sections 31301 of seq.) and by the terms of this Agreement, City shall have a lien on the Vessel
for money, which may become due under this Agreement. Pursuant to said statutory lien and the
terms of this Agreement, City has the right to take possession and control of the Vessel, secure
the Vessel to the Slip, remove the Vessel from the Slip, and/or store the Vessel at a location of
the City's choosing. So long as City continues to hold the Vessel, Vessel Owner shall be
deemed to be responsible for all continuing charges and expenses.
(b) Other Remedies. If Vessel Owner fails to pay Slip Fees, cost of repair or restoration or other
charges to be borne by Vessel Owner or, in the event of any other default of this Agreement by
Vessel Owner, City may, at its option, regard this Agreement as continuing in force and recover
Page 9 of 17 6-52
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19
from Vessel Owner damages caused by the Vessel Owner's breach, including, without
limitations, the right to recover the Slip Fees due under this Agreement as the same shall accrue,
and/or terminate Vessel Owner's right to use the Slip. The remedies herein above provided are
not exclusive and City may pursue any one or more of such remedies or any other remedies
provided by law.
If Vessel Owner fails to perform any of the terms, conditions and promises as set forth in this
Agreement, City may, at its option, without waiving any other remedies it may have, immediately
terminate this Agreement upon written notice to Vessel Owner.
In the event of Vessel Owner's default or termination of this Agreement without removal of the
Vessel, the City may suspend the right of the Vessel Owner to obtain access to the Basin, the
Slip and the Vessel without the necessity of the initiation of any legal proceedings.
(c) No Waiver. The exercise or failure to exercise any remedy provided herein or by law, for any
breach of this Agreement shall not be deemed as a waiver of City's rights. Failure by City to
exercise any of its rights under this Agreement or City's acceptance of money payment after
default shall not be considered or construed to waive any right of City or to affect any notice or
legal proceedings given or commenced. Nothing herein shall constitute a waiver of the rights of
the City to a maritime lien under state law or under the Federal Maritime Lien Act.
TERMINATION
(a) In addition to the other rights of termination set forth herein, the parties agree that this Agreement
may be terminated at any time by either party upon thirty (30) days written notice.
(b) This Agreement shall, at the sole option of City, automatically and immediately terminate at such
time as Vessel Owner sells, leases, charters or otherwise transfers any or all of its interest in the
Vessel to any other party, whether or not such transfer is voluntary or involuntary by operation of
law, under legal process or proceedings, by receivership, in bankruptcy or otherwise.
Upon termination of this Agreement, Vessel Owner shall remove the Vessel from the Slip, remove all
other of its personal property, if any, from the Basin, and surrender to the City the Slip and all keys to the
Basin.
NOTICES, DEMANDS, REQUESTS AND SERVICES OF PROCESS
(a) Notices, Demands and Requests. All notices, demands and requests which may be, or are
required to be, given pursuant to the provisions of this Agreement may be delivered in person, by
reputable courier, by overnight delivery service, or by depositing in the U.S. Mail, first class
postage prepaid, and addressed as follows:
(i) If to City, at its address designated in this Agreement or to such other person or to such
other address as City may hereafter designate by written notice.
(ii) If to Vessel Owner, to Vessel Owner at 1
address designated in this Agreement or to
hereafter designate by written notice.
ie residence, billing address and/or other
such other address as Vessel Owner may
(b) Service of Process on Owner. All other legal notices, demands and services of process to be
given to City may be served as provided by law upon the authorized agent of City at the
designated address or upon such other person or at such other address as City may hereafter
designate by written notice.
Page 10 of 17
6-53
20. RECORDS
Vessel Owner shall maintain complete and accurate records with respect to such information required by
City that relates to the performance of services under this Agreement and as specified in Exhibit 3,
attached hereto and incorporated herein by reference.
Vessel Owner shall maintain adequate records on services provided in sufficient detail to permit an
evaluation of services. All such records shall be clearly identified and readily accessible. Vessel Owner
shall provide free access to the representatives of the City or its designees at all proper times to such
books and records, and gives the City the right to examine and audit same, and to make transcripts
therefrom as necessary, and to allow inspection of all work, data, documents, proceedings, and activities
related to this Agreement.
Such records, together with supporting documents, shall be kept separate from other documents and
records and shall be maintained for a period of three (3) years after the conclusion of services.
21. MISCELLANEOUS PROVISIONS
(a) Waiver: A waiver by either party 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 difference character.
(b) Integrated Agreement: This Agreement represents the full and complete understanding of every
kind or nature whatsoever between the City and Vessel Owner, and all preliminary negotiations
and other agreements of any kind or nature are merged herein. No verbal agreement or implied
covenant shall be held to vary the provisions herein.
(c) Conflicts: In the event there are any conflicts or inconsistencies between this Agreement and
any attachments, the terms of this Agreement shall govern.
(d) Modification & Amendment: This Agreement may be modified or amended only by a written
document executed by both Vessel Owner and City and approved as to form by the City
Attorney.
(e) Severa_bility: If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement
shall continue in full force and effect.
(f) Controlling Law and Venue,: The laws of the State of California, and applicable Federal law, shall
govern this Agreement and all matters relating to it and any action brought relating to this
Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange.
(g) 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.
(h) Standard of Care: Vessel Owner 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 contractual relationship with the City.
(i) Independent Parties: City and Vessel Owner intend that the relation between them created by
this Agreement is that of employer -independent contractor and Vessel Owner is not an agent or
employee of City. The manner and means of conducting the work are under the control of
Vessel Owner, except to the extent they are limited by statute, rule or regulation and the
expressed terms of this Agreement. No civil service status or other right of employment shall
Page 11 of 17
6-54
accrue to Vessel Owner or its employees. Nothing in this Agreement shall be deemed to
constitute approval for Vessel Owner or any of Vessel Owner's employees or agents, to be the
agents or employees of City. Vessel Owner shall have the responsibility for and control over the
means of performing the work, provided that Vessel Owner is in compliance with the terms of this
Agreement. Anything in this Agreement that may appear to give City the right to direct Vessel
Owner as to the details of the performance of the work or to exercise a measure of control over
Vessel Owner shall mean only that Vessel Owner shall follow the desires of City with respect to
the results of the services.
(j) Permits and Licenses: Vessel Owner, 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 under the terms and conditions of this Agreement.
EXCEPT AS EXPRESSLY PROVIDED IN SECTIONS 10(e) AND 17(a) ABOVE, CITY DOES NOT HEREBY
ASSUME CUSTODY OR POSSESSION OF THE VESSEL OR ANY RESPONSIBILITY WHATSOEVER FOR
THE CARE OR PROTECTION OF SAME, AND VESSEL OWNER HEREBY ASSUMES ALL RISKS
ASSOCIATED WITH THE USE AND OCCUPANCY OF THE SLIP.
VESSEL OWNER AGREES AND UNDERSTANDS THAT THE CITY AND THE BASIN SHALL NOT BE
CONSIDERED AN INSURER OF THE VESSEL OR ANY PROPERTY OF THE OWNER AND OTHERS
CONTAINED ON THE VESSEL OR AT THE BASIN.
VESSEL OWNER REPRESENTS AND WARRANTS THAT ALL STATEMENTS HEREIN ARE FULL, TRUE
AND CORRECT. VESSEL OWNER ACKNOWLEDGES THAT THE CITY HAS FULLY RELIED UPON THESE
STATEMENTS IN EXECUTING THIS AGREEMENT.
THIS AGREEMENT SHALL SUPERSEDE AND REPLACE ANY PRIOR AGREEMENT BETWEEN CITY AND
VESSEL OWNER WITH REGARD TO THE SLIP. ALL SUCH PRIOR AGREEMENTS ARE HEREBY
TERMINATED AND SHALL HAVE NO FURTHER FORCE OR EFFECT.
Page 12 of 17
6-55
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year here written.
have received a copy of the Balboa Yacht Basin's Rules and Regulations, which bear the revision date February
4, 2013. Initial(s)
APPROVED AS TO FORM:
CITY A T R IEY'S OFFICE
Date: l�
By: or
Aaron C. r
City Attorney
ATTEST: , f
Date: `j [J
By: " )- S P L,
Leilani I. Brown
City Clerk
c
Attachments: Exhibit 1:
Exhibit 2:
Exhibit 3:
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
David—Kiff
City Manager
VESSEL OWNER:
SAILING FASCOIATION
Date: eLo ,`13
By: j r
Name: Tom Ibert
Title: President
Date:
By: /
Name: John Byerlein
Title: Vice President
[END OF SIGNATURES]
Curriculum Outline
Insurance Requirements
Duties to be Performed
Page 13 of 17
6-56
Exhibit I
Curriculum Outline
(Sailing Handbook for the Disabled, copyright 1996)
1. Water Safe Test
2. Pre -Boat Training
3. Theory of Sailing
4. Sailing Terms
5. Rig Profile
6. Deck Plan
7. Adaptive Equipment
8. Cockpit Layout
9. Propulsion (Sails)
16. Points of Sail
11. Sail Plan
12. Basic Sail Trimming
13. Trimming Downwind
14. Rules of the Road
Page 14 of 17
6-57
Exhibit 2
Insurance Requirements
Vessel Owner agrees to obtain and maintain during the term of this Agreement a policy of complete
Marine Insurance including Protection and Indemnity Liability with limits not less than Five Hundred
Thousand Dollars and 001100 ($500,000.00) per occurrence. Vessel Owner shall also maintain Hull and
General Vessel Protection policy covering at least one hundred percent 100% of the actual cash value of
the Vessel with endorsements for extended perils, damage by fire, electrocution, and/or stray current,
corrosion, vandalism, theft and burglary, in accordance with the following:
The insurance shall be in form and substance satisfactory to the City and shall be placed with
responsible underwriters, which have an assigned policyholder's rating of A (or higher) and Financial
Size Category Class VIl (or larger) in accordance with the latest edition of the Best's Key Rating Guide,
and which are currently authorized by the Insurance Commissioner to transact business in the State of
California.
The Vessel Owner shall provide City with copies of the certificates of insurance with original
endorsements evidencing coverage prior to the commencement of this Agreement, which evidence shall
be a precondition to Vessel Owner's use of the Slip. A person authorized by the insurer to bind
coverage on its behalf shall sign certification of all required policies. Vessel Owner shall deliver new
certificates evidencing the required coverage prior to the expiration or termination of any policy, or upon
City's request for such certificates.
All insurance policies shall be endorsed with the following specific language:
(a) The City, its elected or appointed officers, officials, employees, agents and volunteers are to be
covered as additional insureds.
(b) This policy shall be considered primary insurance with respect to the City, its elected or
appointed officers, officials, employees, agents and volunteers with respect to all claims, losses, or
liability arising directly or indirectly from the Agreement. 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.
(c) 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.
(d) The insurer waives all rights of subrogation against City, its elected or appointed officers,
officials, employees, agents and volunteers.
(e) 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.
(f) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in
coverage or in limits, except after thirty (30) days written notice has been received by City.
(g) City shall have no obligation to pay assessments, premiums or other charges in connection with
any insurance.
Vessel Owner shall give City prompt and timely notice of claim made or suit instituted arising out of or
resulting from this Agreement.
Page 15 of 17
6-58
Vessel Owner shall also procure and maintain, at its own cost and expense, any additional kinds of
insurance, which in its own judgment may be necessary for Vessel Owner's protection.
Vessel Owner shall also be responsible to ensure that all contractors employed by Vessel Owner comply
with all Basin Rules and Regulations, properly register with Harbor Resources prior to beginning any
work, and provide proof of adequate general liability insurance coverage with a limit of not less than One
Million Dollars and 00/100 ($1,000,000.00) per occurrence, naming the City as an "additional insured" in
a form approved by the City's Risk Manager.
Page 16 of 17
6-59
Exhibit 3
Duties to be Performed by Sailing Fascination
1. Maintain non-profit status.
2. Provide boating safety and sailing instruction to disabled individuals.
3. Provide sailing instruction, provided there is demand for that instruction, with lessons generally
scheduled for two hours per day on three days per week, and running for four (4) consecutive weeks.
4. Provide City with quarterly report listing name of students and organizations who have participated in the
sailing program.
5. Provide City with curriculum, if and as amended.
6. Provide evidence of Instructor Proficiency Training for each instructor/volunteer employed or utilized by
Sailing Fascination.
7. Require that personal flotation devices (PFDs) approved by the U.S. Coast Guard be worn by all
participants and available to crew while on the docks or underway.
S. Provide annual cash flow statement itemizing revenues and expenditures for fiscal year within ninety (90)
days of last day of Sailing Fascination's fiscal year.
9. Prepare and submit annual budget indicating the expectations and financial needs and revenue sources
for the current/upcoming fiscal year within ninety (90) days of first day of Sailing Fascination's fiscal year.
Report shall specify in reasonable detail: (i) balance in all funds and accounts maintained by Sailing
Fascination; (ii) all projected revenues and sources of funds for the fiscal year; (iii) the expenditures
proposed to be made by Sailing Fascination in fulfilling its obligations pursuant to this Agreement; and
(iv) all other proposed expenditures of Sailing Fascination.
Page 17 of 17
6-60
Attachment C
City Council Policy F-7 — Income and Other Property
6-61
F-7
INCOME AND OTHER PROPERTY
The City owns and manages an extensive and valuable assortment of property including
streets, parks, beaches, public buildings and service facilities. The City also owns or
ground leases and/or operates a yacht basin, resort hotel and apartment property, a
luxury residential development and various other income -producing properties. Much
of the income property is tidelands, filled tidelands or waterfront. Unencumbered fee
value of income property is substantial.
As owner/manager of property, the City is the steward of a public trust, and state law
requires the City to maximize its returns on state -managed property or be subject to a
charge of making a gift of public funds. Nevertheless, the City Council recognizes the
importance of this property not only as a revenue generator, but also as a means to
provide otherwise financially less feasible uses and facilities that benefit the community.
In managing its property, the City will continually evaluate the potential of all City
owned property to produce revenue. This may include leasing or licensing unused land,
renting vacant space, and establishing concessions in recreation areas or other similar
techniques. The City Council will evaluate the appropriateness of establishing new
income generating opportunities on City controlled areas using sound business
principles and after receiving input from neighbors, users and the public.
The policy of the City Council is that income and other property be held and managed in
accordance with the following:
A. Whenever a lease, license, management contract, concession or similar action
regarding income property is considered by the City, an analysis shall be
conducted to determine the maximum or open market value of the property. This
analysis shall be conducted using appraisals or other techniques to determine the
highest and best use of the property and the highest income generating use of the
property.
B. All negotiations regarding the lease, license, management contract, concession, or
similar action regarding income property shall include review of an appraisal or
analysis of the use being considered for the property conducted by a reputable and
independent professional appraiser, real estate consultant, or business consultant.
C. The City shall seek, whenever practical and financially advantageous, both in the
short and long term, to operate or manage all property and facilities directly with
City staff or contractors, provided staff have the expertise needed to competently
do so, or to oversee the work of contractors.
11
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F-7
D. In most negotiations regarding the lease, license, management contract,
concession, or similar action regarding an income or other property, the City shall
seek revenue equivalent to the open market value of the highest and best use; and,
whenever practicable the City shall conduct an open bid or proposal process to
ensure the highest financial return.
E. However, in some circumstances the City may determine that use of a property by
the public for recreational, charitable or other nonprofit purpose is preferred and
has considerable public support, in which case the City may determine that non-
financial benefits justify not maximizing revenue from such property. In such
circumstances, the City has a vested interest in ensuring that the lessee of such
property operates the activities conducted on or from the property in the manner
that has been represented to the City throughout the duration of any lease or
contract with the City.
F. Whenever less than the open market or appraised value is received or when an
open bid process is not conducted, the City shall make specific findings setting
forth the reasons thereof.
Such findings may include but need not be limited to the following:
1. The City is prevented by tideland grants, Coastal Commission guidelines
or other restrictions from converting the property to another use.
2. Redevelopment of the property would require excessive time, resources,
expertise and costs, which would outweigh other financial benefits.
3. Converting the property to another use or changing the operator, manager,
concessionaire, licensee, or lessee of the property would result in excessive
vacancy, relocation or severance costs, real estate commissions, tenant
improvement allowances, expenses or rent concessions which would
outweigh other financial benefits.
4. Converting residential property to another use or opening residential leases
to competitive bid would create recompensable liabilities and other
inequities for long-term residents.
5. The property provides an essential or unique service to the community or
a clearly preferred use that enjoys substantial support in the community
that might not otherwise be provided were full market value of the
property be required.
2
6-63
F-7
6. The property serves to promote other goals of the City such as affordable
housing, preservation of open space, uses available to the public or marine
related services.
7. If the lessee is not (a) a statewide or national nonprofit organization, or (b)
a public entity or subdivision thereof, then the City finds that the By -Laws
and charter documents of such lessee (i) establishes a procedure wherein
the election of directors of such lessee is accomplished by an open,
democratic and transparent process that allows members to vote, (ii) has a
governance and operational structure that is consistent with best practices
for non-profit public benefit corporations as determined by the City
Council, and (iii) cannot be amended to affect subparts (i) or (ii) without the
prior written consent of the City as lessor.
G. Generally, lengths of licenses, leases, management contracts, concessions, or
similar agreements will be limited to the minimum necessary to meet market
standards or encourage high quality improvements and will contain appropriate
reappraisal and inflation protection provisions. Also, all agreements shall contain
provisions to assure complete audits periodically through their terms.
H. All negotiations regarding the license, lease, management contract, concession or
similar action regarding income property shall be conducted by the City Manager
or his/her designee under the direction of any appropriate City committees.
I. To provide an accurate accounting of actual net revenues generated by the City's
income property, all costs directly attributable or allocable to the management of
a specific income property shall be charged against the gross revenues collected
on that property in the fiscal year the costs are incurred. Costs so chargeable
include, but are not limited to, property repairs and maintenance, property
appraisals, and consultant fees, as authorized by the City Council, City Manager,
or by this Income Property Policy.
J. The City Manager or his/her designee is authorized to sign a license, lease,
management contract, concession, or similar agreement or any amendment
thereto, on behalf of the City. Notwithstanding the foregoing, the City Manager
or his/her designee, or a City Council member, may refer any license, lease,
management contract, concession or similar agreement or any amendment
thereto, to the City Council for its consideration and/or action.
K. The City's portfolio of quality income producing properties adds an element of
diversification to a portfolio otherwise invested primarily in financial assets.
Certain of those income properties are restricted from sale by their terms of grant,
state agency regulations or rules, other federal and state guidelines, private
3
F-7
covenant or agreement or otherwise. For those properties not so restricted from
sale, an analysis shall be prepared to determine the following prior to such
income producing property being offered for sale:
1. The maximum open market value of the City's interest in the property in
its as is condition.
2. If the property is in an important location, a determination of the possible
future consequences of the City no longer controlling that property.
3. If the current rent is contractually low and significant rent increases are
likely within a finite period.
4. The likelihood of significant increases in the ability of the property to
generate income after the expiration of any current lease of the property.
5. The likelihood of a lease extension being requested by the tenant and the
ability to substantially increase rents or require significant improvements
to enhance the utility and the value of the property as consideration for
granting such an extension.
6. The value of the revenue stream from (i) lease income over the life of an
existing lease and/or (ii) likely lease revenue if an existing lease were to be
renewed or the property re -let to a different tenant; and/or (iii) lease
income from the property if it were to be converted to its highest and best
use, compared with the financial benefits of the use of the proceeds of a sale
and if, considering the totality of the circumstances, such use of the
proceeds of a sale is preferable to retaining the property in question.
Adopted - July 27,1992
Amended - January 24,1994
Amended - February 27,1995
Amended - February 24,1997
Amended - May 26,1998
Amended - August 11, 2009
Amended - May 14, 2013
Amended - February 12, 2019
Formerly F-24
0
6-65